UBS Reports Strong Financials for 2024
In a significant announcement, UBS has revealed its financial performance for the fourth quarter and the entire fiscal year of 2024. The bank achieved a net profit of USD 0.8 billion for 4Q24, contributing to a full-year net profit of USD 5.1 billion. This robust performance reflects UBS's strategic maneuvers and a commitment to long-term growth.
Key Highlights from 4Q24
For the fourth quarter, UBS reported the following notable highlights:
- Profit Before Tax (PBT): USD 1.0 billion, with an underlying PBT of USD 1.8 billion, showcasing an impressive year-on-year growth of 198%.
- Underlying Return on Common Equity Tier 1 (RoCET1): 7.2% for the quarter.
- Client Momentum: Recorded USD 18 billion in net new assets for Global Wealth Management (GWM), contributing to a total of USD 97 billion throughout the financial year. In addition, the Asset Management division brought in USD 33 billion in net new money in 4Q24.
- Operational Efficiency: The bank saw a significant reduction in operating costs with gross savings of USD 0.7 billion realized in 4Q24 and a total of USD 3.4 billion saved throughout FY24.
Performance Overview for FY24
When we look at the entire fiscal year, UBS reported:
- Full-Year Profit Before Tax: USD 6.8 billion, with an underlying PBT of USD 8.8 billion.
- Overall Return on CET1 Capital: 6.7%, rising to 8.7% on an underlying basis.
- Strong Client Activity: The bank demonstrated high client engagement, with underlying transaction-based income rising significantly across its various divisions, fueled by market demand.
- Shareholder Returns: Proposals for dividends indicate a 29% year-on-year increase, bringing the proposed dividend to USD 0.90 per share.
Integration Progress and Future Outlook
UBS is on track with its strategic integration of Credit Suisse, having achieved all key milestones for 2024 and reducing execution risks significantly. The bank aims to finalize the integration process by 2026, with expectations to accrue around USD 13 billion in gross cost reductions by the end of this integration phase.
Additionally, UBS reaffirmed its commitment to maintaining a strong capital position, finishing 2024 with a CET1 ratio of 14.3%. This solid capital buffer allows the bank to continue self-funding growth and returning capital to shareholders effectively.
Investing in Technology
UBS continues to innovate by investing in technology, including expanding its cloud infrastructure and adopting advanced AI solutions. This drive towards modernization aims to enhance both operational efficiency and client service.
Focus on Sustainable Growth
As UBS moves forward, sustainability remains a core aspect of its growth strategy. The bank is committed to integrating environmental and social considerations into its business practices, reflecting its stance as a leader in sustainable finance.
Frequently Asked Questions
What are UBS's profits for FY24?
UBS reported a full-year net profit of USD 5.1 billion for the fiscal year 2024.
What is the proposed dividend per share for UBS?
UBS has proposed a dividend of USD 0.90 per share, a 29% increase compared to the previous year.
How much net new assets did UBS garner in 2024?
UBS secured USD 97 billion in net new assets across its Global Wealth Management sector for FY24.
What is UBS's CET1 capital ratio?
UBS maintained a CET1 capital ratio of 14.3% at the end of 2024.
When does UBS expect to complete the Credit Suisse integration?
UBS plans to substantially complete the integration of Credit Suisse by the end of 2026.
