UBS Group, Switzerland’s largest bank, has posted a strong financial performance for the fourth quarter of 2024, beating forecasts.
Financial Performance
The bank reported net income of US$770 million for the fourth quarter, exceeding the average estimate of US$483 million in a company-provided poll of analysts.
Share Buyback Programme
UBS also announced a share buyback programme of up to US$3 billion for this year, higher than the US$2.2 billion analysts at Vontobel expected.
Capital Management
The lender plans to repurchase US$1 billion of shares in the first half of 2025 and up to US$2 billion in the second half while maintaining its target common equity tier 1 capital (CET1) ratio of around 14 per cent.
Integration of Credit Suisse
The results mark the fourth consecutive quarter of profit as UBS integrates Credit Suisse after acquiring its former rival in 2023.
Operational Highlights
Total revenues climbed 7 per cent to US$11.6 billion year on year, narrowly beating the company-provided consensus forecast of US$11.5 billion.
Wealth Management
Net new assets attracted in global wealth management during the quarter amounted to US$18 billion, missing the US$21 billion Zuercher Kantonalbank analysts had forecast.
Regulatory Developments
UBS is awaiting more clarity on plans to draw up stricter banking regulations in Switzerland following the collapse of Credit Suisse, which unravelled after a series of scandals.
The bank has warned the Swiss government that excessive demands could make the country’s financial sector less competitive.
Investor Confidence
Investors have warmed to the Credit Suisse takeover, with UBS’s shares rising by more than 80 per cent since then.
Conclusion
UBS’s strong financial performance and strategic initiatives have positioned the bank for continued growth and success in the future.
FAQs
Q: What is UBS’s net income for the fourth quarter of 2024?
A: US$770 million.
Q: What is UBS’s share buyback programme for this year?
A: Up to US$3 billion.
Q: How much capital will UBS hold to prevent a repeat of the Credit Suisse meltdown?
A: The bank has not yet specified the exact amount, but has warned the Swiss government that excessive demands could make the country’s financial sector less competitive.
