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Switzerland’s biggest lender UBS On Tuesday, a net profit booked with a fourth quarter against an estimate of a business consensus in the midst of investment banking, because it launched a share purchasing of a maximum of $ 3 billion in 2025.
The bank reported net profit to be attributed to shareholders of $ 770 million, compared to an estimate of $ 483 million in a consensus estimate provided by the company and with an average forecast of $ 886.4 million in an LSEG survey of analysts.
Group income during the period reached $ 11.635 billion, versus analyst expectations of $ 11.64 billion in an LSEG analyst’s survey.
The bank has also announced plans to buy back $ 1 billion in shares in the first half of 2025, along with a maximum of $ 2 billion extra in the second half of this year – but warned that this goal was subject to the lender who are “” Financial goals and its “financial goals and the absence of material and immediate changes in the current capital regime in Switzerland. “
The group also proposes a dividend of $ 0.90 per share for the 2024 financial year, an increase of 29% on an annual basis.
Other highlights of the fourth quarter were:
- The efficiency on tangible equity reached 3.9%, compared to 7.3% in the third quarter.
- CET 1 Capital Ratio, a measure of the bank’s solvency, was 14.3%, unchanged compared to the third quarter.
Investment banking shone in the fourth quarter, with an underlying turnover of 37% on an annual basis in the midst of “strong growth” in the worldwide performance of banking matters and global markets. The worldwide worldwide asset management of the group recorded an increase of 10% in the turnover over the part of the fourth quarter, “largely driven by higher recurring net reimbursement income, a decrease in negative other income and higher revenue-based transactions.”
“What is always very important to us in Investment Bank to match or get very close to the best in the classroom in those areas where we want to compete,” Sergio Ermotti from UBS CEO told Carolin Roth from CNBC on Tuesday. “So when I look at stock effects, activities of capital markets, you know, and also in mergers and acquisitions and lever financing, we certainly not only grow our income as a function of constructive market conditions, but we also win market share.”
He focused on the core activities of the bank of the bank, added: “If you look at Return on Risk -related assets for the asset management that companies have expanded, so we had a few points of the collection in terms of return on Risk -related assets. “
Size is important
After the storm of a bond -supported bond with fallen domestic rival credit Suisse supported by the government by turbulent in 2023, UBS said that it was on schedule with its 2024 integration milestones and an extra $ 700 million in gross cost savings in the fourth quarter . The group had hoped to reach $ 7.5 billion at a total of $ 13 billion in cost savings by the end of last year, with CEO Sergio Ermotti signaling last month in a Bloomberg interview that were dismissed “unavoidable“As part of the process – even if the group wants to rely on voluntary departure.
UBS said on Tuesday that it is planning to achieve another $ 2.5 billion in gross cost savings this year.
De Swiss Belt -Accepting contributes to a picture of broader cost discipline and restructuring in Europe’s bank sectors, because lenders leave a period of high interest rates and the profitability of De Klauw claws to keep pace with American colleagues. Monday, colleague Swiss Bank Julius Baer unveiled one Extra target of 110 million Swiss francs ($ 120 million) in gross savings, while HSBC Last week said it is preparing to close its M&A and stock capital markets in Europe, the UK and the US
Armed with a balance that covered $ 1.7 trillion in 2023 – approximately double Switzerland’s Expected economic output Last year – UBS fought at home against vocal worries that its scale has violated the comfort of the Swiss government, the lender of colleagues who can absorb it and Bern can absorb and with a steep price tag with nationalization, in the case of failure. Questions are now hanging on whether UBS will be confronted with further capital requirements.
The Swiss economy is already supported in a fragile angle by depressive annual inflation – of only 0.6% in December -And a punishing strong Swiss franc, which was only won on Monday as the global tumult as a result of American rates, the nervous residents pushed to the safe haven.
“Of course, the current tariff discussions create uncertainties, as you can see in the current environment, the market is very sensitive to positive or negative developments,” Ermotti warned, as I emphasized that part of the volatility has been priced by markets.
“Of course, an escalation of rates, the tariff wars, would probably translate into economic consequences into terms of potential recessions or inflationary pressure, which in turn would force central banks to stop the relaxation and possibly even that, would certainly be something that the market [has] Not prices and would lead to higher peaks in volatility.