UBS Reports Q4 Profit with Revenue Growth and Share Buybacks

UBS Group AG turned a profit in Q4, reporting net earnings of $770 million. With a revenue growth of 7%, the company also announced plans for increased dividends and share buybacks, highlighting overall financial health.

Date: 04-02-2025

AI Rating: 7

Earnings Per Share (EPS): UBS Group AG reported an EPS of $0.23, contrasting last year's negative EPS of $0.09. This positive change indicates a strong recovery from prior losses, which could enhance investor sentiment towards the stock.

Revenue Growth: Total revenues saw a 7% increase, reaching $11.64 billion this quarter compared to $10.86 billion the previous year. Such growth highlights the company's operational strength and can attract potential investors.

Net Income: The reported net profit of $770 million signifies a notable turnaround from the previous year’s loss of $279 million. This recovery is crucial for maintaining investor confidence.

Profit Margins: Profit before tax was reported at $1.0 billion, with an underlying profit before tax of $1.77 billion. These figures reflect positively on the company’s profitability regardless of the decline in net interest income.

Future Outlook: UBS anticipates a low-to-mid single-digit sequential decline in net interest income in Global Wealth Management and a larger decline in Personal & Corporate Banking. This projection could foster caution among investors regarding short-term performance.

The announcement of a 29% increase in dividends to $0.90 per share, contingent upon approval, alongside planned share repurchases, suggests the company is focused on enhancing shareholder value. This move, coupled with the commitment to significant gross cost reductions, positions UBS favorably for long-term growth.

Stocks: UBS