Ermotti expresses satisfaction UBS reports profit of 5.1 billion US dollars
UBS reports a pre-tax profit of over one billion for the final quarter of 2024. The big bank has thus once again exceeded market expectations. It is also increasing the dividend more than recently announced.
04.02.2025, 07:21
04.02.2025, 08:27
SDA
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- UBS generated a profit of 770 million US dollars in the fourth quarter of 2024 and has already reduced the integration costs of Credit Suisse by 7.5 billion dollars.
- For the full year 2024, the bank reports a profit of 5.1 billion dollars.
- Despite positive market conditions following the US elections, assets under management fell to 6087 billion dollars.
On the bottom line, UBS Group reported a profit of 770 million US dollars in the fourth quarter of 2024, as announced on Tuesday. In the previous year, it had suffered a loss of 279 million in connection with the CS integration. Before taxes, the big bank earned 1.05 billion after a deficit of 751 million in the fourth quarter of 2023. Adjusted for integration costs etc., UBS expects a pre-tax profit of 1.77 billion for the period from October to December 2024.
The combined bank has already reduced costs by 7.5 billion by the end of the year compared to 2022, including 0.7 billion in the final quarter of 2024. By the end of 2026 or the end of the planned CS integration period, the figure is expected to be around 13 billion. At the same time, the integration costs will amount to 14 billion.
UBS CEO Sergio Ermotti was very satisfied overall: "We have reached all key milestones in 2024 and significantly reduced the integration risk, while maintaining a solid capital position," he was quoted as saying in the press release. The bank confirmed its medium and long-term targets.
Profit for the full year 5.1 bn
UBS is reporting a profit of 5.09 billion dollars for the full year 2024. In the previous year, it was a good 27 billion, although this was in connection with the takeover of Credit Suisse. The acquisition had led to high negative goodwill, as the purchase price was significantly below the book value of Switzerland's second-largest bank at the time.
UBS shareholders are to receive a 29 percent higher dividend of 0.90 dollars per share for 2024. For the new financial year, according to the management, it should then increase again by at least 10 percent.
In addition, share buybacks are to reach up to 3 billion in 2025. Repurchases of 1 billion are planned in the first half of the year. A further 2 billion is to follow in the second half of 2024. However, this is dependent on the capital requirements applicable in Switzerland "not changing directly and significantly", as UBS writes.
Declining assets
The bank attracted 18 billion dollars in net new assets in its core business of global wealth management in the fourth quarter. As a result, UBS managed Group-wide assets totaling 6087 billion at the end of December - compared to 6199 billion at the end of September.
"Investor sentiment remained positive in the fourth quarter of 2024," according to the statement. "Both institutional and private clients were very active in a market environment characterized by a higher risk appetite in the aftermath of the US presidential election." These positive market conditions have continued into the first quarter of 2025, supported by growing optimism about growth prospects in the US.
Nevertheless, the gloomy economic outlook outside the US, increasing uncertainty regarding global trade, inflation and central bank policy as well as geopolitical developments, including the upcoming elections in Germany, could dampen investor behavior.
