UBS Delivers Impressive 3Q24 Financial Results Amid Challenges
UBS Shows Strong Financial Performance in 3Q24
UBS continues to demonstrate robust financial resilience by announcing its significant financial results for the third quarter of 2024. With a net profit of USD 1.4 billion, this quarter reflects the company’s ability to deliver value to its clients while navigating unprecedented global challenges.
Key Financial Highlights
During 3Q24, UBS reported a profit before tax (PBT) of USD 1.9 billion. The stated underlying profit before tax reached USD 2.4 billion, clearly showcasing the strength of UBS's diversified business model and its well-established client franchises. Furthermore, the group’s return on CET1 capital (RoCET1) stood at 7.6%, with the underlying RoCET1 at a commendable 9.4%.
Growth in Invested Assets
UBS's invested assets reached an impressive USD 6.2 trillion, reflecting a year-on-year increase of 15%. This growth is attributed to continued client momentum and the effective management strategies in place within the Global Wealth Management division, which saw net new assets of approximately USD 25 billion. UBS is on track to achieve its ambitious target of around USD 100 billion in net new assets for the entirety of 2024.
Client Engagement and Transaction Activity
The third quarter also revealed strong transactional activities, particularly in Global Wealth Management and the Investment Bank sectors. Underlying transaction-based income in GWM surged by 19% year-on-year, while revenues from Global Markets surged by 31% in comparison with the continued expansion of client engagement across all regions, notably in the Americas and APAC.
Cost Management and Operational Efficiency
As part of its ongoing commitment to sustainable growth, UBS successfully realized an additional USD 0.8 billion in gross cost savings, with expectations to achieve approximately USD 7.5 billion in total for the full year of 2024. Initiatives to streamline operations and reduce costs exemplify the firm’s strategic emphasis on operational efficiency and disciplined financial management.
Technological Advancements for Future Growth
UBS is also making considerable investments in technology to improve client experiences and efficiency. This includes the rollout of 50,000 Microsoft 365 Copilot licenses, marking the largest deployment in the global financial services industry to date. Such innovations are positioned to enhance service levels and unlock substantial future revenues.
Integration of Credit Suisse: Progress and Outlook
UBS is advancing its integration plans following the acquisition of Credit Suisse. The first wave of client account migrations has been completed, with successful transitions in Luxembourg and Hong Kong. Future migrations are anticipated to take place in Singapore and Japan by the end of this year, with Switzerland planned for 2025.
Maintaining a Strong Capital Position
The firm’s strong capital base supports its strategy and growth ambitions, with CET1 capital ratio recorded at 14.3%. This solid financial grounding remains a critical element of UBS’s performance and strategic direction, as the firm continues to assess and adapt to market conditions.
Frequent Challenges in the Business Environment
The financial landscape remains volatile due to varying geopolitical tensions and market fluctuations. UBS demonstrates its commitment to effectively managing these challenges while focusing on long-term value creation for its stakeholders.
Commitment to Measurable Sustainability Goals
UBS’s ambitions extend beyond financial returns. The firm has reaffirmed its commitment to sustainability by engaging its clients in transitioning to a low-carbon economy and aligning internal operations with sustainable practices. This strategy includes refining operations to meet evolving environmental compliance and expectations.
Frequently Asked Questions
1. What were UBS's net profits in 3Q24?
UBS reported a net profit of USD 1.4 billion for the third quarter of 2024.
2. How much did UBS achieve in net new assets?
UBS achieved approximately USD 25 billion in net new assets within Global Wealth Management during the quarter.
3. What is the expected growth in invested assets for UBS?
UBS's invested assets increased to USD 6.2 trillion, demonstrating a 15% growth year-on-year.
4. How is UBS managing costs effectively?
UBS has realized USD 0.8 billion in cost savings during 3Q24, aiming for a total of approximately USD 7.5 billion for the year.
5. What technological advancements is UBS implementing?
UBS is rolling out 50,000 Microsoft 365 Copilot licenses, positioning itself as an industry leader in technology deployment within financial services.
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