UBS Reports Strong Q3 Earnings with $1.43 Billion Profit

UBS Group AG reports a remarkable turnaround in Q3, achieving a net profit of $1.43 billion and EPS of $0.43, surpassing expectations. With significant revenue growth and reduced operating expenses, the bank positions itself favorably for future quarters, according to recent analysis.

Date: 30-10-2024

AI Rating: 8

UBS Group AG's third-quarter report reveals significant improvement over the previous year's performance. Notably, the net profit attributable to shareholders stands at $1.43 billion, a substantial recovery from last year's revised loss of $715 million. This demonstrates a significant shift in performance, thus positively impacting stock sentiment.

The earnings per share (EPS) also reflect this recovery, reported at $0.43, compared to a loss of $0.22 per share in the prior year. This surpasses analysts' expectations of $0.35 per share, indicating that the company is exceeding market forecasts, which generally boosts investor confidence.

Additionally, the operating profit before tax is at $1.93 billion, recovering from a loss of $184 million a year prior. The underlying profit before tax also shows impressive growth, reaching $2.39 billion compared to $914 million last year. This reflects robust operational performance and efficient cost management.

UBS reported total revenues for the quarter at $12.33 billion, a 5% growth from last year's $11.70 billion. The underlying revenue increase of 9% to $11.67 billion demonstrates strong transactional activity and recurring fee income. However, it should be noted that net interest income declined by 15% to $1.79 billion, which could pose some challenges going forward.

Looking to the future, UBS anticipates a mid-single-digit decline in net interest income for Global Wealth Management and a low single-digit decline in Personal & Corporate Banking in the fourth quarter. Despite these expected declines, UBS aims to achieve around $100 billion in net new assets (NNA) in 2024, indicating ongoing growth ambitions.

Stocks: UBS