UBS Group AG, the prominent Swiss banking institution, announced on Tuesday a profitable performance for Q4, contrasting with the loss recorded in the same period last year. This improvement was driven by a rise in revenues.
For the fourth quarter, the bank reported a net profit attributable to shareholders of $770 million, or $0.23 per share, compared to the previous year's loss of $279 million, or $0.09 per share. Profit before tax stood at $1.0 billion, with an underlying profit before tax reaching $1.77 billion.
The quarterly revenue showed a 7% increase, amounting to $11.64 billion, up from $10.86 billion the previous year. On an underlying basis, revenues rose 6%, underscoring the robustness, scale, and diverse global reach of the bank's core operations.
However, net interest income saw a 12% decline from the previous year, totaling $1.84 billion.
Looking forward to the first quarter, UBS anticipates a sequential drop in net interest income within Global Wealth Management, estimated to be in the low-to-mid single digits, and approximately a 10% sequential decline in Personal & Corporate Banking.
Additionally, the Board of Directors plans to propose a dividend of $0.90 per share for the 2024 fiscal year, marking a 29% increase from the prior year. This proposal will be subject to approval at the Annual General Meeting on April 10, with the dividend scheduled for distribution on April 17 to shareholders recorded on April 16.
UBS also announced intentions to repurchase $1 billion worth of shares in the first half of 2025, with the aim to repurchase up to an additional $2 billion in the latter half of the year. Furthermore, UBS maintained its ambition for share repurchases in 2026 to exceed the levels seen in the full year of 2022.
The bank reiterated its financial targets and ambitions for the 2026 exit rate and 2028, indicating its strong positioning for delivering sustained growth and enhanced returns in the long term.
UBS is on track to achieve around $13 billion in gross cost reductions by the end of 2026, with approximately $2.5 billion expected in gross savings in 2025.
Sergio Ermotti, Group CEO, commented, “In 2025, we will persist in executing the next phase of the integration with discipline and achieving our priorities. We are confident in our capacity to largely complete the integration by the conclusion of 2026, meet our financial objectives, and advance our growth initiatives, setting UBS up for a prosperous future.”
