UBS reports 2Q24 net profit of USD 1.1bn with continued client momentum and integration progress (Ad hoc announcement pursuant to Article 53 of the SIX Exchange Regulation Listing Rules)
UBS reported a net profit of USD 1.1bn for 2Q24, with a profit before tax (PBT) of USD 1.5bn and an underlying PBT of USD 2.1bn. The first half of 2024 saw a net profit of USD 2.9bn and net new assets of USD 27bn in Global Wealth Management. The company achieved USD 0.9bn in gross cost savings, reducing non-core and legacy risk-weighted assets by 42% year-over-year. UBS maintained a strong balance sheet with a CET1 capital ratio of 14.9% and commenced share repurchases worth USD 467m as of 9 August 2024. UBS was named "World's Best Bank" and "Switzerland’s Best Bank" at the Euromoney Awards for Excellence 2024. Despite economic uncertainties, UBS expects continued momentum in client and transactional activity into the third quarter, along with integration-related expenses and moderate net interest income headwinds.
UBS ha riportato un utile netto di USD 1,1 miliardi per il secondo trimestre del 2024, con un utile prima delle imposte (PBT) di USD 1,5 miliardi e un PBT sottostante di USD 2,1 miliardi. Nel primo semestre del 2024, l'utile netto è stato di USD 2,9 miliardi e sono stati acquisiti nuovi asset netti per USD 27 miliardi nella gestione patrimoniale globale. L'azienda ha ottenuto USD 0,9 miliardi in risparmi sui costi lordi, riducendo gli attivi ponderati per il rischio non core e legacy del 42% rispetto all'anno precedente. UBS ha mantenuto un solido bilancio con un rapporto di capitale CET1 del 14,9% e ha avviato riacquisti di azioni per un valore di USD 467 milioni a partire dal 9 agosto 2024. UBS è stata nominata
UBS reportó una ganancia neta de USD 1.1 mil millones para el segundo trimestre de 2024, con una ganancia antes de impuestos (PBT) de USD 1.5 mil millones y un PBT subyacente de USD 2.1 mil millones. La primera mitad de 2024 vio una ganancia neta de USD 2.9 mil millones y nuevos activos netos por USD 27 mil millones en Gestión Global de Patrimonios. La compañía logró USD 0.9 mil millones en ahorros de costos brutos, reduciendo los activos ponderados por riesgo no centrales y legacy en un 42% en comparación con el año anterior. UBS mantuvo un balance sólido con un ratio de capital CET1 del 14.9% y comenzó recompra de acciones por un valor de USD 467 millones a partir del 9 de agosto de 2024. UBS fue nombrado
UBS는 2024년 2분기에 USD 11억의 순이익을 보고하였으며, 세전 이익(PBT)은 USD 15억, 기초 PBT는 USD 21억입니다. 2024년 상반기에는 순이익 USD 29억 및 글로벌 자산 관리 부문에서 USD 270억의 새로운 순자산이 발생했습니다. 회사는 USD 9억의 총 비용 절감을 달성하였고, 비핵심 및 과거 자산의 위험가중자산을 전년 대비 42% 감소시켰습니다. UBS는 CET1 자본 비율 14.9%를 유지하며, 2024년 8월 9일 기준으로 USD 4억 67백만의 자사주 매입을 시작했습니다. UBS는 2024년 Euromoney Awards for Excellence에서
UBS a annoncé un bénéfice net de USD 1,1 milliard pour le 2e trimestre 2024, avec un bénéfice avant impôts (PBT) de USD 1,5 milliard et un PBT sous-jacent de USD 2,1 milliards. La première moitié de 2024 a vu un bénéfice net de USD 2,9 milliards et de nouveaux actifs nets de USD 27 milliards dans la gestion de patrimoine mondiale. L'entreprise a réalisé des économies brutes de coûts de USD 0,9 milliard, réduisant les actifs pondérés en fonction des risques non-core et legacy de 42 % par rapport à l'année précédente. UBS a maintenu un bilan solide avec un ratio de capital CET1 de 14,9% et a commencé des rachats d'actions d'une valeur de USD 467 millions à partir du 9 août 2024. UBS a été nommée
UBS berichtete im 2. Quartal 2024 von einem Nettogewinn von USD 1,1 Milliarden, mit einem Gewinn vor Steuern (PBT) von USD 1,5 Milliarden und einem zugrunde liegenden PBT von USD 2,1 Milliarden. In der ersten Hälfte 2024 erzielte das Unternehmen einen Nettogewinn von USD 2,9 Milliarden und neue Nettomittel in Höhe von USD 27 Milliarden im Bereich Global Wealth Management. Das Unternehmen erzielte USD 0,9 Milliarden an Bruttokosteneinsparungen und reduzierte nicht-zentrale sowie legacy risikogewichtete Aktiva um 42% im Vergleich zum Vorjahr. UBS wies eine starke Bilanz mit einer CET1-Kapitalquote von 14,9% auf und begann am 9. August 2024 mit dem Rückkauf von Aktien im Wert von USD 467 Millionen. UBS wurde bei den Euromoney Awards for Excellence 2024 als „
- Reported net profit of USD 1.1bn for 2Q24.
- Achieved USD 0.9bn in additional gross cost savings.
- Reduced non-core and legacy risk-weighted assets by 42% year-over-year.
- Maintained a strong CET1 capital ratio of 14.9%.
- Commenced share repurchases worth USD 467m.
- Named "World's Best Bank" and "Switzerland’s Best Bank" at Euromoney Awards for Excellence 2024.
- Reported moderate net interest income headwinds.
- Expected to incur around USD 1.1bn of integration-related expenses in 3Q24.
- Non-core and legacy expected to record an underlying pre-tax loss of around USD 1bn in the second half of 2024.
Insights
UBS's Q2 2024 results show resilience amid integration challenges. The bank reported a
- Strong client inflows with
$27 billion net new assets in Global Wealth Management - Record Q2 revenues in Global Markets
- Cost savings progress, achieving
45% of total target - Maintained strong capital position with
14.9% CET1 ratio
However, challenges remain with a high
UBS's Q2 results reflect a mixed market environment with both opportunities and challenges. The bank capitalized on strong capital markets activity, particularly in Global Banking and Global Markets. However, net interest income headwinds persist, especially in wealth management and Swiss retail banking.
Looking ahead, UBS expects higher market volatility due to geopolitical tensions and the upcoming US elections. This could benefit trading revenues but may impact client risk appetite. The bank's outlook suggests continued momentum in client activity but also warns of moderate NII headwinds.
Investors should watch for:
- Progress on integration milestones and cost savings
- Asset gathering trends in wealth management
- Performance of the non-core legacy portfolio
- Impact of Swiss interest rate environment
From a legal perspective, UBS's Q2 report highlights several key points:
- Litigation-related releases of
$150 million , indicating some positive resolutions of legal matters - Completion of critical legal entity mergers, including UBS AG and Credit Suisse AG and the Swiss banking subsidiaries
- Transition to a single US intermediate holding company, aligning with regulatory requirements
These legal milestones are important for realizing integration benefits and streamlining operations. However, the report also notes a high expected tax rate of
Investors should monitor potential legal and regulatory risks associated with the integration process, especially as client migrations begin. The bank's ability to navigate these challenges while maintaining compliance will be critical for long-term success and avoiding future legal issues.
Key highlights (Graphic: UBS Group AG)
UBS (NYSE:UBS) (SWX:UBSN):
Key highlights
-
2Q24 PBT of
USD 1.5bn and underlying1 PBT ofUSD 2.1bn reflecting client franchise strength and disciplined execution of our strategy and integration plans; net profit ofUSD 1.1bn -
1H24 PBT of
USD 3.8bn and underlying1 PBT ofUSD 4.7bn ; net profit ofUSD 2.9bn , RoCET17.5% and underlying RoCET1 of9.2% -
Continued client momentum with net new assets of
USD 27bn in Global Wealth Management and strong transactional activity in the Investment Bank; best second quarter Global Markets revenues on record2 and underlying Global Banking revenues up55% YoY, significantly outperforming the fee pools across all products -
Non-core and Legacy RWA reduced
42% since 2Q23, includingUSD 8bn decline QoQ mainly from active unwinds; underlying operating expenses excluding litigation declined17% QoQ; revenues ofUSD 0.4bn -
Achieved
USD 0.9bn of additional gross cost savings, reaching ~45% of our total cumulative annualized gross cost save ambition - Completed key legal entity mergers in line with plan, enabling execution of the next critical phase of client migrations to unlock further cost, capital, funding and tax benefits
-
Maintained a balance sheet for all seasons with a strong CET1 capital ratio of
14.9% and CET1 leverage ratio of4.9% , supporting the execution of our 2024 capital return targets; commenced share repurchases in June withUSD 467m of shares repurchased as of 9 August 2024; total loss absorbing capacity ofUSD 198bn - Named "World's Best Bank" and “Switzerland’s Best Bank” at Euromoney Awards for Excellence 2024, a testament to the effectiveness of our global strategy, reach and capabilities in serving our clients domestically and around the world
“Our first-half results reflect the significant progress we have made since the closing of the acquisition as we deliver on all of our commitments to stakeholders. We are well positioned to meet our financial targets and return to the levels of profitability we delivered before being asked to step in and stabilize Credit Suisse. We are now entering the next phase of our integration, which will be critical to realize further substantial cost, capital, funding and tax benefits. As we execute on our plans, we will continue to invest to position UBS for sustainable growth while staying close to clients, providing even better outcomes for them and the communities where we live and work.” Sergio P. Ermotti, Group CEO
Selected financials for 2Q24
Profit before tax 1.5 USD bn |
Cost/income ratio 86.9 % |
RoCET1 capital 5.9 % |
Net profit 1.1 USD bn |
CET1 capital ratio 14.9 % |
Underlying1
2.1 USD bn |
Underlying1
80.6 % |
Underlying1
8.4 % |
Diluted
0.34 USD |
CET1
4.9 % |
Information in this news release is presented for UBS Group AG on a consolidated basis unless otherwise specified.
1 Underlying results exclude items of profit or loss that management believes are not representative of the underlying performance. Underlying results are a non-GAAP financial measure and alternative performance measure (APM). Refer to “Group Performance” and “Appendix-Alternative Performance Measures” in the financial report for the second quarter of 2024 for a reconciliation of underlying to reported results and definitions of the APMs. 2 Since 2013. |
Group summary
Delivered strong performance in a complex market environment
In 2Q24, we reported PBT of
Reported revenues were
Demonstrating continued franchise strength
Clients continue to place trust and value in UBS’s strength, stability and advice as evidenced by
Transactional activity was strong in the quarter, especially among institutional clients. In GWM we delivered transaction-based revenues of more than
In July, UBS was awarded “World’s Best Bank” in the Euromoney Awards for Excellence 2024, affirming the effectiveness of our longstanding strategy centered around our truly global wealth management franchise and leading Swiss universal bank, which enabled the successful rescue and ongoing integration of Credit Suisse while we continue to deliver best-in-class services and advice to our clients. We were also proud to be named “Switzerland’s Best Bank” for the tenth time since 2012, reflecting our global reach and capabilities to support our Swiss clients and economy. Since the acquisition, clients have entrusted us with around
Steady progress on balance sheet and cost reductions with delivery of key integration milestones
We are executing our integration plan, and continue to deliver on all of our commitments.
We reduced Group RWA by
Group LRD decreased by
In 2Q24, we realized an additional
We completed the merger of UBS AG and Credit Suisse AG on 31 May 2024, the transition to a single US intermediate holding company on 7 June 2024, and the merger of UBS Switzerland AG and Credit Suisse (Schweiz) AG on 1 July 2024. These crucial milestones have begun to support a more normalized tax rate and will facilitate the migration of clients onto UBS platforms, beginning in
3 Loans to privates, corporates and public institutions in P&C and GWM Switzerland, from 1.6.23 to 30.6.24 |
Maintained capital strength and a balance sheet for all seasons
The CET1 capital ratio was
Following the merger of UBS AG and Credit Suisse AG, UBS AG’s standalone CET1 capital ratio as of 30 June 2024 is expected to be around
Outlook
The macroeconomic outlook continues to be clouded by ongoing conflicts, other geopolitical tensions and the upcoming US elections. We expect these uncertainties to persist for the foreseeable future, and they will likely lead to higher market volatility compared with the first half of the year.
Entering the third quarter, we are seeing positive investor sentiment and continued momentum in client and transactional activity. Also visible are moderate net interest income headwinds from ongoing mix shifts in Global Wealth Management and the effects of the second Swiss National Bank rate cut, not yet captured in our deposit pricing in Personal & Corporate Banking.
As we execute our integration plans, we expect to incur in the third quarter of 2024 around
For the second half of 2024, we estimate Non-core and Legacy will record an underlying pre-tax loss of around
Our diversified business model positions us well to deliver sustainable long-term value for shareholders across various market conditions. We remain focused on supporting our clients while positioning the Group for future growth.
Second quarter 2024 performance overview – Group
This discussion and analysis of results compares the second quarter of 2024, which covers three full months of post-acquisition results, with the second quarter of 2023, which included only one month of post-acquisition results.
Group PBT
PBT of
Global Wealth Management (GWM) PBT
Total revenues increased by
Personal & Corporate Banking (P&C) PBT
Total revenues increased by
Asset Management (AM) PBT
Total revenues increased by
Investment Bank (IB) PBT
Total revenues increased by
Non-core and Legacy (NCL) PBT
Total revenues were
Group Items PBT
UBS’s sustainability highlights
Support for Swiss communities affected by the recent storms
Earlier this summer the cantons of
UBS supported the dedicated Unwetter-Fond (severe weather fund) launched by the Schweizer Patenschaft für Berggemeinden which provides support and resources for clean-up and reconstruction as well as vital capital for preventive measures. Thanks to the generosity of clients and employees approximately
Developing the next generation of talent
Our commitment to attract, develop and retain top talents is a key component of our sustainable performance. Importantly, we have maintained our structured job entry training programs (e.g., apprenticeships, interns and graduates) at the same level as UBS and Credit Suisse combined before the integration. Across UBS, we have around 4,000 junior talents including around 2,300 in
UBS donates
We are proud of the work done by the UBS Optimus network of foundations and the difference they make to millions of lives every year. Over the past 25 years, the UBS Optimus Foundation has grown from a small grant-making organization to a network of foundations that drive transformative, scalable impact change for marginalized communities globally and locally. During this time, Optimus has raised over
To recognize this important milestone, UBS has donated
A growing focus on Nature Finance
Nature Finance is a topic of growing interest for our clients and we recently held our first Nature Finance Conference to share insights on the key trends and discuss how to drive much-needed action. The event brought together leaders from academia, NGOs and intergovernmental organizations, as well as UBS experts and clients, to discuss the critical role nature plays in our economy and how to unlock greater pools of capital to benefit the natural world.
UBS Asset Management and Planet Tracker launched a guide for investors aimed at maximizing investment in new energy solutions while minimizing their impacts on nature. The guide sets out strategies to support decision makers at every stage of planning, financing and implementation.
UBS Global Wealth Management has joined forces with Rockefeller Asset Management (RAM) to provide clients with exposure to multiyear growth prospects in areas such as wastewater treatment, waste management and plastic recycling, and sustainable aquaculture. The fund focuses on around 50 high conviction small- and mid-cap “improver” stocks, building on GWM’s award-winning CIO research and the ocean expertise of RAM.
Selected financial information of the business divisions and Group Items |
||||||||
|
For the quarter ended 30.6.24 |
|||||||
USD m |
Global Wealth Management |
Personal & Corporate Banking |
Asset Management |
Investment Bank |
Non-core and Legacy |
Group Items |
|
Total |
Total revenues as reported |
6,053 |
2,272 |
768 |
2,803 |
401 |
(392) |
|
11,904 |
of which: PPA effects and other integration items1 |
233 |
246 |
|
310 |
|
(8) |
|
780 |
Total revenues (underlying) |
5,820 |
2,026 |
768 |
2,493 |
401 |
(384) |
|
11,124 |
Credit loss expense / (release) |
(1) |
103 |
0 |
(6) |
(1) |
0 |
|
95 |
Operating expenses as reported |
5,183 |
1,396 |
638 |
2,332 |
807 |
(15) |
|
10,340 |
of which: integration-related expenses and PPA effects2 |
523 |
182 |
98 |
245 |
325 |
(2) |
|
1,372 |
Operating expenses (underlying) |
4,660 |
1,213 |
540 |
2,087 |
481 |
(13) |
|
8,969 |
Operating profit / (loss) before tax as reported |
871 |
773 |
130 |
477 |
(405) |
(377) |
|
1,469 |
Operating profit / (loss) before tax (underlying) |
1,161 |
710 |
228 |
412 |
(80) |
(371) |
|
2,060 |
|
||||||||
|
For the quarter ended 31.3.24 |
|||||||
USD m |
Global Wealth Management |
Personal & Corporate Banking |
Asset Management |
Investment Bank |
Non-core and Legacy |
Group Items |
|
Total |
Total revenues as reported |
6,143 |
2,423 |
776 |
2,751 |
1,001 |
(355) |
|
12,739 |
of which: PPA effects and other integration items1 |
234 |
256 |
|
293 |
|
(4) |
|
779 |
Total revenues (underlying) |
5,909 |
2,166 |
776 |
2,458 |
1,001 |
(351) |
|
11,960 |
Credit loss expense / (release) |
(3) |
44 |
0 |
32 |
36 |
(2) |
|
106 |
Operating expenses as reported |
5,044 |
1,404 |
665 |
2,164 |
1,011 |
(33) |
|
10,257 |
of which: integration-related expenses and PPA effects2 |
404 |
160 |
71 |
143 |
242 |
1 |
|
1,021 |
Operating expenses (underlying) |
4,640 |
1,245 |
594 |
2,022 |
769 |
(34) |
|
9,236 |
Operating profit / (loss) before tax as reported |
1,102 |
975 |
111 |
555 |
(46) |
(320) |
|
2,376 |
Operating profit / (loss) before tax (underlying) |
1,272 |
878 |
182 |
404 |
197 |
(315) |
|
2,617 |
|
||||||||
|
For the quarter ended 30.6.233 |
|||||||
USD m |
Global Wealth Management |
Personal & Corporate Banking |
Asset Management |
Investment Bank |
Non-core and Legacy |
Group Items |
Negative goodwill4 |
Total |
Total revenues as reported |
5,261 |
1,810 |
583 |
2,036 |
162 |
(313) |
|
9,540 |
of which: PPA effects and other integration items1 |
186 |
143 |
|
55 |
|
(6) |
|
378 |
Total revenues (underlying) |
5,075 |
1,667 |
583 |
1,981 |
162 |
(306) |
|
9,162 |
Negative goodwill |
|
|
|
|
|
|
27,264 |
27,264 |
Credit loss expense / (release) |
149 |
221 |
1 |
132 |
119 |
2 |
|
623 |
Operating expenses as reported |
4,085 |
933 |
503 |
2,025 |
536 |
403 |
|
8,486 |
of which: integration-related expenses and PPA effects2 |
68 |
37 |
14 |
161 |
105 |
348 |
|
732 |
of which: acquisition-related costs |
|
|
|
|
|
106 |
|
106 |
Operating expenses (underlying) |
4,017 |
896 |
489 |
1,864 |
432 |
(51) |
|
7,648 |
Operating profit / (loss) before tax as reported |
1,028 |
655 |
79 |
(121) |
(493) |
(717) |
27,264 |
27,695 |
Operating profit / (loss) before tax (underlying) |
909 |
549 |
93 |
(14) |
(388) |
(257) |
|
891 |
1 Includes accretion of PPA adjustments on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration. 2 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of newly recognized intangibles resulting from the acquisition of the Credit Suisse Group. 3 Comparative-period information has been restated for changes in business division perimeters, Group Treasury allocations and Non-core and Legacy cost allocations. Refer to “Note 3 Segment reporting” in the “Consolidated financial statements” section of the UBS Group second quarter 2024 report and to “Changes to segment reporting in 2024” in the “UBS business divisions and Group Items” section and the “Equity attribution” section of the UBS Group first quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information. 4 Comparative-period information has been revised. Refer to “Note 2 Accounting for the acquisition of the Credit Suisse Group” in the “Consolidated financial statements” section of the UBS Group second quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information.
|
Selected financial information of the business divisions and Group Items (continued) |
||||||||
|
Year-to-date 30.6.24 |
|||||||
USD m |
Global Wealth Management |
Personal & Corporate Banking |
Asset Management |
Investment Bank |
Non-core and Legacy |
Group Items |
|
Total |
Total revenues as reported |
12,196 |
4,695 |
1,543 |
5,554 |
1,402 |
(747) |
|
24,642 |
of which: PPA effects and other integration items1 |
467 |
502 |
|
603 |
|
(12) |
|
1,559 |
Total revenues (underlying) |
11,729 |
4,193 |
1,543 |
4,951 |
1,402 |
(735) |
|
23,083 |
Credit loss expense / (release) |
(4) |
146 |
0 |
26 |
35 |
(2) |
|
201 |
Operating expenses as reported |
10,228 |
2,800 |
1,303 |
4,496 |
1,818 |
(48) |
|
20,597 |
of which: integration-related expenses and PPA effects2 |
928 |
342 |
169 |
387 |
568 |
(1) |
|
2,392 |
Operating expenses (underlying) |
9,300 |
2,458 |
1,134 |
4,109 |
1,250 |
(47) |
|
18,205 |
Operating profit / (loss) before tax as reported |
1,972 |
1,748 |
241 |
1,032 |
(451) |
(698) |
|
3,844 |
Operating profit / (loss) before tax (underlying) |
2,433 |
1,588 |
410 |
816 |
117 |
(687) |
|
4,677 |
|
||||||||
|
Year-to-date 30.6.233 |
|||||||
USD m |
Global Wealth Management |
Personal & Corporate Banking |
Asset Management |
Investment Bank |
Non-core and Legacy |
Group Items |
Negative goodwill4 |
Total |
Total revenues as reported |
10,049 |
3,087 |
1,086 |
4,401 |
185 |
(524) |
|
18,284 |
of which: PPA effects and other integration items1 |
186 |
143 |
|
55 |
|
(6) |
|
378 |
Total revenues (underlying) |
9,863 |
2,943 |
1,086 |
4,346 |
185 |
(517) |
|
17,906 |
Negative goodwill |
|
|
|
|
|
|
27,264 |
27,264 |
Credit loss expense / (release) |
164 |
237 |
1 |
139 |
119 |
2 |
|
662 |
Operating expenses as reported |
7,646 |
1,597 |
911 |
3,891 |
1,235 |
416 |
|
15,696 |
of which: integration-related expenses and PPA effects2 |
68 |
37 |
14 |
161 |
105 |
348 |
|
732 |
of which: acquisition-related costs |
|
|
|
|
|
176 |
|
176 |
Operating expenses (underlying) |
7,578 |
1,560 |
897 |
3,730 |
1,130 |
(108) |
|
14,787 |
Operating profit / (loss) before tax as reported |
2,239 |
1,253 |
174 |
372 |
(1,169) |
(942) |
27,264 |
29,191 |
Operating profit / (loss) before tax (underlying) |
2,121 |
1,147 |
188 |
478 |
(1,064) |
(412) |
|
2,457 |
1 Includes accretion of PPA adjustments on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration. 2 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of newly recognized intangibles resulting from the acquisition of the Credit Suisse Group. 3 Comparative-period information has been restated for changes in business division perimeters, Group Treasury allocations and Non-core and Legacy cost allocations. Refer to “Note 3 Segment reporting” in the “Consolidated financial statements” section of the UBS Group second quarter 2024 report and to “Changes to segment reporting in 2024” in the “UBS business divisions and Group Items” section and the “Equity attribution” section of the UBS Group first quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information. 4 Comparative-period information has been revised. Refer to “Note 2 Accounting for the acquisition of the Credit Suisse Group” in the “Consolidated financial statements” section of the UBS Group second quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information.
|
Our key figures |
|
|
|
|
|
|
|
|
|
|
As of or for the quarter ended |
|
As of or year-to-date |
||||
USD m, except where indicated |
|
30.6.24 |
31.3.241 |
31.12.231 |
30.6.231 |
|
30.6.24 |
30.6.231 |
Group results |
|
|
|
|
|
|
|
|
Total revenues |
|
11,904 |
12,739 |
10,855 |
9,540 |
|
24,642 |
18,284 |
Negative goodwill |
|
|
|
|
27,264 |
|
|
27,264 |
Credit loss expense / (release) |
|
95 |
106 |
136 |
623 |
|
201 |
662 |
Operating expenses |
|
10,340 |
10,257 |
11,470 |
8,486 |
|
20,597 |
15,696 |
Operating profit / (loss) before tax |
|
1,469 |
2,376 |
(751) |
27,695 |
|
3,844 |
29,191 |
Net profit / (loss) attributable to shareholders |
|
1,136 |
1,755 |
(279) |
27,331 |
|
2,890 |
28,360 |
Diluted earnings per share (USD)2 |
|
0.34 |
0.52 |
(0.09) |
8.51 |
|
0.86 |
8.82 |
Profitability and growth3,4,5 |
|
|
|
|
|
|
|
|
Return on equity (%) |
|
5.4 |
8.2 |
(1.3) |
153.8 |
|
6.8 |
88.7 |
Return on tangible equity (%) |
|
5.9 |
9.0 |
(1.4) |
170.3 |
|
7.5 |
98.9 |
Underlying return on tangible equity (%)6,7 |
|
8.4 |
9.9 |
4.8 |
2.8 |
|
9.2 |
5.4 |
Return on common equity tier 1 capital (%) |
|
5.9 |
9.0 |
(1.4) |
177.5 |
|
7.5 |
106.4 |
Underlying return on common equity tier 1 capital (%)6,7 |
|
8.4 |
9.9 |
4.8 |
2.9 |
|
9.2 |
5.8 |
Return on leverage ratio denominator, gross (%) |
|
3.0 |
3.1 |
2.6 |
2.8 |
|
3.1 |
3.1 |
Cost / income ratio (%)8 |
|
86.9 |
80.5 |
105.7 |
88.9 |
|
83.6 |
85.8 |
Underlying cost / income ratio (%)6,8 |
|
80.6 |
77.2 |
93.0 |
83.5 |
|
78.9 |
82.6 |
Effective tax rate (%) |
|
20.0 |
25.8 |
n.m.9 |
1.3 |
|
23.6 |
2.8 |
Net profit growth (%) |
|
(95.8) |
70.6 |
n.m. |
n.m. |
|
(89.8) |
568.2 |
Resources3 |
|
|
|
|
|
|
|
|
Total assets |
|
1,560,976 |
1,606,798 |
1,716,924 |
1,677,953 |
|
1,560,976 |
1,677,953 |
Equity attributable to shareholders |
|
83,683 |
84,777 |
85,624 |
85,455 |
|
83,683 |
85,455 |
Common equity tier 1 capital10 |
|
76,104 |
77,663 |
78,002 |
78,597 |
|
76,104 |
78,597 |
Risk-weighted assets10 |
|
511,376 |
526,437 |
546,505 |
556,603 |
|
511,376 |
556,603 |
Common equity tier 1 capital ratio (%)10 |
|
14.9 |
14.8 |
14.3 |
14.1 |
|
14.9 |
14.1 |
Going concern capital ratio (%)10 |
|
18.0 |
17.7 |
16.8 |
16.5 |
|
18.0 |
16.5 |
Total loss-absorbing capacity ratio (%)10 |
|
38.7 |
37.4 |
36.4 |
34.9 |
|
38.7 |
34.9 |
Leverage ratio denominator10 |
|
1,564,201 |
1,599,646 |
1,695,403 |
1,677,877 |
|
1,564,201 |
1,677,877 |
Common equity tier 1 leverage ratio (%)10 |
|
4.9 |
4.9 |
4.6 |
4.7 |
|
4.9 |
4.7 |
Liquidity coverage ratio (%)11 |
|
212.0 |
220.2 |
215.7 |
175.2 |
|
212.0 |
175.2 |
Net stable funding ratio (%) |
|
128.0 |
126.4 |
124.7 |
117.6 |
|
128.0 |
117.6 |
Other |
|
|
|
|
|
|
|
|
Invested assets (USD bn)4,12,13 |
|
5,873 |
5,848 |
5,714 |
5,530 |
|
5,873 |
5,530 |
Personnel (full-time equivalents) |
|
109,991 |
111,549 |
112,842 |
119,100 |
|
109,991 |
119,100 |
Market capitalization2,14 |
|
101,903 |
106,440 |
107,355 |
69,932 |
|
101,903 |
69,932 |
Total book value per share (USD)2 |
|
26.13 |
26.44 |
26.68 |
26.48 |
|
26.13 |
26.48 |
Tangible book value per share (USD)2 |
|
23.85 |
24.14 |
24.34 |
24.13 |
|
23.85 |
24.13 |
1 Comparative-period information has been revised. Refer to “Note 2 Accounting for the acquisition of the Credit Suisse Group” in the “Consolidated financial statements” section of the UBS Group second quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information. 2 Refer to the “Share information and earnings per share” section of the UBS Group second quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information. 3 Refer to the “Targets, capital guidance and ambitions” section of the UBS Group Annual Report 2023, available under “Annual reporting” at ubs.com/investors, for more information about our performance targets. 4 Refer to “Alternative performance measures” in the appendix to the UBS Group second quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for the definition and calculation method. 5 Profit or loss information for each of the second quarter of 2024, the first quarter of 2024 and the fourth quarter of 2023 is presented on a consolidated basis, including for each quarter Credit Suisse data for three months, and for the purpose of the calculation of return measures has been annualized multiplying such by four. Profit or loss information for the second quarter of 2023 is presented on a consolidated basis, including Credit Suisse data for one month (June 2023), and for the purpose of the calculation of return measures has been annualized multiplying such by four. Profit or loss information for the first six months of 2024 is presented on a consolidated basis, including Credit Suisse data for six months, and for the purpose of the calculation of return measures has been annualized by multiplying such by two. Profit or loss information for the first six months of 2023 is presented on a consolidated basis, including Credit Suisse data for one month, and for the purpose of the calculation of return measures has been annualized by multiplying such by two. 6 Refer to the “Group performance” section of the UBS Group second quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information about underlying results. 7 Comparative-period information for the first quarter of 2024 has been restated to reflect the updated underlying tax impact. 8 Negative goodwill is not used in the calculation as it is presented in a separate reporting line and is not part of total revenues. 9 The effective tax rate for the fourth quarter of 2023 is not a meaningful measure, due to the distortive effect of current unbenefited tax losses at the former Credit Suisse entities. 10 Based on the Swiss systemically relevant bank framework as of 1 January 2020. Refer to the “Capital management” section of the UBS Group second quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information. 11 The disclosed ratios represent quarterly averages for the quarters presented and are calculated based on an average of 61 data points in the second quarter of 2024, 61 data points in the first quarter of 2024, 63 data points in the fourth quarter of 2023 and 64 data points in the second quarter of 2023. Refer to the “Liquidity and funding management” section of the UBS Group second quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information. 12 Consists of invested assets for Global Wealth Management, Asset Management and Personal & Corporate Banking. Refer to “Note 32 Invested assets and net new money” in the “Consolidated financial statements” section of the UBS Group Annual Report 2023, available under “Annual reporting” at ubs.com/investors, for more information. 13 Include invested assets from associates in the Asset Management business division. 14 The calculation of market capitalization reflects total shares issued multiplied by the share price at the end of the period.
|
Income statement |
|
|
|
|
|
|
|
|
|
|
|
|
For the quarter ended |
|
% change from |
|
Year-to-date |
||||
USD m |
|
30.6.24 |
31.3.24 |
30.6.231 |
|
1Q24 |
2Q23 |
|
30.6.24 |
30.6.231 |
Net interest income |
|
1,535 |
1,940 |
1,707 |
|
(21) |
(10) |
|
3,475 |
3,095 |
Other net income from financial instruments measured at fair value through profit or loss |
|
3,684 |
4,182 |
2,517 |
|
(12) |
46 |
|
7,866 |
5,198 |
Net fee and commission income |
|
6,531 |
6,492 |
5,128 |
|
1 |
27 |
|
13,023 |
9,734 |
Other income |
|
154 |
124 |
188 |
|
24 |
(18) |
|
278 |
258 |
Total revenues |
|
11,904 |
12,739 |
9,540 |
|
(7) |
25 |
|
24,642 |
18,284 |
Negative goodwill |
|
|
|
27,264 |
|
|
(100) |
|
|
27,264 |
Credit loss expense / (release) |
|
95 |
106 |
623 |
|
(11) |
(85) |
|
201 |
662 |
|
|
|
|
|
|
|
|
|
|
|
Personnel expenses |
|
7,119 |
6,949 |
5,651 |
|
2 |
26 |
|
14,068 |
10,271 |
General and administrative expenses |
|
2,318 |
2,413 |
1,968 |
|
(4) |
18 |
|
4,731 |
4,033 |
Depreciation, amortization and impairment of non-financial assets |
|
903 |
895 |
866 |
|
1 |
4 |
|
1,798 |
1,391 |
Operating expenses |
|
10,340 |
10,257 |
8,486 |
|
1 |
22 |
|
20,597 |
15,696 |
Operating profit / (loss) before tax |
|
1,469 |
2,376 |
27,695 |
|
(38) |
(95) |
|
3,844 |
29,191 |
Tax expense / (benefit) |
|
293 |
612 |
361 |
|
(52) |
(19) |
|
905 |
820 |
Net profit / (loss) |
|
1,175 |
1,764 |
27,334 |
|
(33) |
(96) |
|
2,939 |
28,371 |
Net profit / (loss) attributable to non-controlling interests |
|
40 |
9 |
3 |
|
352 |
|
|
48 |
11 |
Net profit / (loss) attributable to shareholders |
|
1,136 |
1,755 |
27,331 |
|
(35) |
(96) |
|
2,890 |
28,360 |
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income |
|
|
|
|
|
|
|
|
|
|
Total comprehensive income |
|
1,614 |
(245) |
26,467 |
|
|
(94) |
|
1,369 |
28,300 |
Total comprehensive income attributable to non-controlling interests |
|
18 |
(5) |
(2) |
|
|
|
|
13 |
11 |
Total comprehensive income attributable to shareholders |
|
1,596 |
(240) |
26,469 |
|
|
(94) |
|
1,356 |
28,289 |
1 Comparative-period information has been revised. Refer to “Note 2 Accounting for the acquisition of the Credit Suisse Group” in the “Consolidated financial statements” section of the UBS Group second quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information. |
Information about results materials and the earnings call
UBS’s second quarter 2024 report, news release and slide presentation are available from 06:45 CEST on Wednesday, 14 August 2024, at ubs.com/quarterlyreporting.
UBS will hold a presentation of its second quarter 2024 results on Wednesday, 14 August 2024. The results will be presented by Sergio P. Ermotti (Group Chief Executive Officer), Todd Tuckner (Group Chief Financial Officer) and Sarah Mackey (Head of Investor Relations).
Time
09:00 CEST
08:00 BST
03:00 US EDT
Audio webcast
The presentation for analysts can be followed live on ubs.com/quarterlyreporting with a simultaneous slide show.
Webcast playback
An audio playback of the results presentation will be made available at ubs.com/investors later in the day.
Cautionary statement regarding forward-looking statements
This news release contains statements that constitute “forward-looking statements,” including but not limited to management’s outlook for UBS’s financial performance, statements relating to the anticipated effect of transactions and strategic initiatives on UBS’s business and future development and goals or intentions to achieve climate, sustainability and other social objectives. While these forward-looking statements represent UBS’s judgments, expectations and objectives concerning the matters described, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from UBS’s expectations. In particular, terrorist activity and conflicts in the
Rounding
Numbers presented throughout this news release may not add up precisely to the totals provided in the tables and text. Percentages and percent changes disclosed in text and tables are calculated on the basis of unrounded figures. Absolute changes between reporting periods disclosed in the text, which can be derived from numbers presented in related tables, are calculated on a rounded basis.
Tables
Within tables, blank fields generally indicate non-applicability or that presentation of any content would not be meaningful, or that information is not available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis. Values that are zero on a rounded basis can be either negative or positive on an actual basis.
Websites
In this news release, any website addresses are provided solely for information and are not intended to be active links. UBS is not incorporating the contents of any such websites into this report.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240813278456/en/
UBS Group AG
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Source: UBS
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