Swiss bank UBS Group AG UBS has announced impressive financial results for the third quarter of 2024. Following the earnings report, the stock rose 2.07% during the pre-market on Wednesday after closing at $32.82 on Tuesday.
What Happened: UBS reported $12.3 billion in revenues, beating the Wall Street estimates of $10.7 billion while its earnings-per-share (EPS) was reported to be 0.43, beating the estimates by 53.57%.
The bank made a net profit of $1.4 billion for the quarter, with a return on CET1 capital (RoCET1) of 7.6% and an underlying RoCET1 of 9.4%.
It experienced strong client momentum, with $25 billion in net new assets in Global Wealth Management, aligning with its target of $100 billion in net new assets for 2024.
Transactional activity was robust, with Global Wealth Management transaction-based income rising by 19% year-over-year, and Global Markets revenues increasing by 31% year-over-year.
UBS also made significant reductions in non-core and legacy risk-weighted assets, cutting $5 billion in the third quarter of 2024 and $41 billion in the second quarter of 2023.
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Why It Matters: The strong performance follows a successful second quarter, where UBS reported a 25% year-over-year increase in sales, with Global Wealth Management’s net new assets reaching $26.9 billion. This consistent growth underscores UBS’s strategic focus on wealth management and cost savings.
Recently, UBS has been streamlining its operations, including the sale of its 50% stake in Swisscard to American Express. This move aligns with UBS’s strategy to focus on core operations following its acquisition of Credit Suisse.
Additionally, UBS has been actively managing its legacy assets, as evidenced by the liquidation of a $2 billion Credit Suisse real estate fund amid a market slump. These strategic decisions highlight UBS’s commitment to optimizing its business model and enhancing shareholder value.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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