DBT Bureau
Pune, 4 March 2025
UBS reports 4Q24 net profit of USD 0.8bn and FY24 net profit of USD 5.1bn; proposes USD 0.90 dividend per share and continuation of share repurchases; continuing to invest for long-term growth
4Q24 and FY24 highlights
- 4Q24 PBT of USD 1.0bn and underlying PBT of USD 1.8bn, up 198% YoY, net profit of USD 0.8bn, RoCET1 4.2% and underlying RoCET1 of 7.2%
- FY24 PBT of USD 6.8bn and net profit of USD 5.1bn; underlying PBT of USD 8.8bn and underlying RoCET1 of 8.7%
- Franchise strength continues to drive client momentum with USD 18bn of net new assets in Global Wealth Management for the quarter and USD 97bn for FY24, Asset Management net new money of USD 33bn in 4Q24 and USD 45bn in FY24; Group invested assets of USD 6.1trn, up 7% YoY; granted or renewed over CHF 70bn in loans in Switzerland throughout the year
- High client activity in the fourth quarter, underlying transaction-based income up double digits YoY in both GWM and P&C; Investment Bank underlying revenues up 37% YoY with strong growth in Global Banking and Global Markets leading to market share gains in areas of strategic investments
- Integration on track with all key 2024 milestones achieved significantly reducing the execution risk of Credit Suisse acquisition; consolidated key operating entities and successfully migrated wealth management client accounts across APAC and Europe in the fourth quarter; continuing to decommission legacy applications
- Delivered on cost-reduction ambitions with additional USD 0.7bn in gross cost savings realized in 4Q24 for a total of USD 3.4bn in FY24; USD 7.5bn saved compared to 2022 baseline and achieved almost 60% of planned cost saves
- Non-core wind-down well ahead of schedule, reduced risk-weighted assets by USD 3bn in 4Q24 to USD 41bn, down USD 33bn over the course of FY24
- Maintained a strong capital position, UBS Group finished the year with a 14.3% CET1 capital ratio and 4.7% CET1 leverage ratio, providing a solid capital buffer during integration, while self-funding growth and returning capital to shareholders
- Completed USD 1bn in share buybacks and proposed dividend payout of USD 0.90 per share, an increase of 29% YoY in line with our intention to calibrate the proportion of cash dividends and share repurchases
- Attractive capital returns to continue in 2025, accruing for around 10% growth in dividend per share; plan to repurchase USD 1bn of shares in the first half of 2025 and aim to repurchase up to an additional USD 2bn in the second half. Share repurchase levels will be consistent with maintaining our target CET1 ratio of ~14%
Investor update highlights
- Confirming financial targets and ambitions for 2026 exit rate and 2028, targeting underlying RoCET1 of ~15% and underlying cost/income ratio of <70% as of 2026 exit rate; well positioned to deliver long-term growth and higher returns with ~18% reported RoCET1 in 2028
- Increasingly confident in substantially completing integration by end-2026, the majority of client-account transfers in Switzerland and all the portfolio migrations in Asset Management are set to be completed in 2025; expect to materially complete NCL wind-down, as well as app and IT infrastructure decommissioning by end-2026, unlocking substantial cost reductions
- On track to deliver USD ~13bn gross cost reductions by end-2026 with cumulative integration expenses of USD ~14bn; USD ~2.5bn of gross cost saves expected in 2025
- Building on UBS Group’s attractive global business model and diversified footprint, including investments in GWM Americas, a key component of UBS business model, where UBS Group already started to make changes to help improve operating leverage, increase profitability and drive sustainable growth towards ~15% PBT margin in 2027
- Continuing to invest in technology to drive business outcomes, expanding cloud infrastructure and GenAI usage to transform how UBS operates in terms of client service, efficiency and security; on track with roll out of 50,000 Copilot licenses to UBS employees
- Ongoing financial resource discipline to create room for profitable growth with reductions in NCL footprint to create USD ~15bn capacity for profitable growth in core franchises, mainly GWM; Day 1 impact from Basel III finalization at USD 1bn
“Our strong full-year performance reflects our unwavering commitment to serving our clients, the strength of our diversified global franchise and the progress we have made on the integration. Throughout 2024, we maintained robust momentum as we captured growth in Global Wealth and Asset Management and gained market share in the Investment Bank in the areas where we have made strategic investments. With over 70 billion Swiss francs of loans granted or renewed, we continued to be a reliable partner for the Swiss economy.
We achieved all key integration milestones in 2024 and significantly reduced execution risk, while our capital position remained robust. In 2025, we will continue to execute the next phase of the integration with discipline and deliver on our priorities. We are confident in our ability to substantially complete the integration by the end of 2026, achieve our financial targets, and fulfill our growth initiatives as we position UBS for a successful future.” Sergio P. Ermotti, Group CEO
