UBS Group AG (UBS) reported a first-quarter 2024 net profit attributable to shareholders of $1.75 billion, which surged 70.6% from the year-ago quarter.Results benefited from a rise in total revenues, driven in part by the acquisition of Credit Suisse. However, an increase in operating expenses, along with a significant rise in credit loss expenses, is a near-term concern.The performance of the Asset Management, Personal & Corporate Banking and Investment Bank divisions was impressive. However, Global Wealt ...

UBS Group AG (NYSE:UBS) Q1 2024 Results Conference Call May 7, 2024 3:00 AM ET Company Participants Sarah Mackey - Head, Investor Relations Sergio Ermotti - Group Chief Executive Officer Todd Tuckner - Group Chief Financial Officer Conference Call Participants Alastair Ryan - Bank of America Chris Hallam - Goldman Sachs Kian Abouhossein - JPMorgan Giulia Miotto - Morgan Stanley Jeremy Sigee - BNP Paribas Exane Andy Coombs - Citigroup Anke Reingen - RBC Ben Goy - Deutsche Bank Piers Brown - HSBC Tom Hallett ...

UBS Group AG, the Swiss multinational investment bank and financial services firm, released its quarterly earnings report for Q1 of FY24 on 7 May 2024.Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.The company reported a net profit of $1.8 billion and an underlying PBT of $2.6 billion, with 15% growth Q1 in underlying revenues, and a 5% quarter-on-quarter reduction in underlying operating expenses, resulting in significant positive operating leverage ...

UBS Group AG (UBS) , following its acquisition of Credit Suisse, plans to cut jobs in five separate waves, starting this June. In August 2023, UBS announced its plan to lay off around one in 12 employees in Switzerland to reduce costs by more than $10 billion by 2026. In total, 50-60% of former Credit Suisse employees are likely to be made redundant. The news was reported by Reuters, which cited the SonntagsZeitung newspaper.UBS' plan to reduce costs will mainly result from cutting its workforce. According ...

UBS Group AG (UBS) is considering attaining the complete ownership of its operations in China. In order to do so, UBS will swap its holding in Credit Suisse’s (“CS”) onshore securities business with a Beijing government investment fund. This news was reported by Bloomberg, citing people familiar with the matter.Particularly, UBS Group will acquire 33% stake held in its joint venture with Beijing State-Owned Assets Management Co., UBS Securities Co. In return, UBS is willing to sell part of or its entire 51% ...

UBS logo is seen at the office building in Krakow, Poland on February 22, 2024. (Photo by Jakub ... [+] Porzycki/NurPhoto via Getty Images)NurPhoto via Getty ImagesUBS’ stock (NYSE: UBS) has gained 1% YTD, whereas S&P500 has increased 9% over the same period. Further, at the current price of $31 per share, it is trading at par with its fair value – Trefis’ estimate for UBS’s valuation. Amid the current financial backdrop, UBS stock has seen extremely strong gains of 100% from levels of $15 in early January ...

UBS Group AG (UBS) has announced that its joint venture (JV) with SuMi TRUST Wealth Management Co, (“SuMi”) is set to acquire Credit Suisse's (“CS”) wealth management business in Japan, per Reuters.Per the deal, after the addition of CS’ client assets, UBS Group and SuMi will realign their investments to continue the initial ownership arrangement with UBS retaining 51% and SuMi maintaining 49% ownership in the venture. This JV between UBS and SuMi was launched in August 2021.CS’ advisors and the wealth mana ...

UBS Group AG (UBS) has announced a new share repurchase program. Under the plan, starting from Apr 3, the company is authorized to buy back up to $2 billion worth of common stock. The program will expire on Apr 2, 2026. This year, UBS is expected to buy back up to $1 billion worth of shares under the new plan. This will start following the completion of the merger between UBS AG and Credit Suisse AG, which is expected to take place in the second quarter of 2024. The merger deal was announced on Mar 19, 2023 ...

Key TakeawaysUBS Group announced Tuesday that it would be repurchasing up to $2 billion of its shares over the next two years.The Swiss financial firm said the first billion of the buybacks would occur following the completion of its merger with rival Credit Suisse, which it expects by the end of this quarter.UBS said its goal is for share repurchases to exceed their pre-acquisition level by 2026. UBS Group AG (UBS) said Tuesday it is launching a new $2 billion stock buyback program over the next two years. ...

Merger and Integration of UBS and Credit Suisse - UBS Group AG acquired Credit Suisse Group AG on 12 June 2023, integrating its assets and liabilities into UBS Group AG consolidated[9] - The merger of UBS AG and Credit Suisse AG is expected to be completed by the end of Q2 2024, pending regulatory approvals[10] - UBS Group AG expects to complete the transition to a single US intermediate holding company in Q2 2024 and the merger of UBS Switzerland AG and Credit Suisse (Schweiz) AG in Q3 2024[10] - The legal entity mergers are critical for unlocking cost, capital, and funding synergies expected in 2025 and 2026[10] - The acquisition of Credit Suisse Group impacts Basel III Pillar 3 disclosures, including specialized lending and securitization exposures[9] - UBS Group AG applied IFRS 3 measurement period adjustments for the acquisition of Credit Suisse Group in Q3 and Q4 2023[10] - The acquisition of Credit Suisse Group contributed to an increase in defaulted loans, debt securities, and off-balance sheet exposures by USD 3,298 million in the first half of 2023[52] - The acquisition of Credit Suisse Group contributed $92,486 million to RWA in Q2 2023[89] Regulatory Compliance and Basel III Framework - UBS Group AG is required to comply with Basel III framework regulations as a systemically relevant bank under Swiss banking law[8] - The Pillar 3 Report includes disclosures for UBS Group AG, UBS AG, Credit Suisse AG, and other significant regulated subsidiaries and sub-groups[8] - The Pillar 3 Report is prepared in accordance with FINMA and BCBS guidelines, including revised Pillar 3 disclosure requirements[8] - Revised Basel III framework expected to increase RWA by approximately USD 25bn, with USD 10bn in Non-core and Legacy[11] - UBS moved to Bucket 2 in FSB's G-SIB list, increasing CET1 capital surcharge requirement to 1.5% from 1.0% effective January 2025[11] - Swiss Federal Council adopts amendments to Capital Adequacy Ordinance, effective 1 January 2025[11] - Introduction of public liquidity backstop for SIBs in Switzerland, expected to come into force by January 2025[11] - FINMA communicated revised liquidity requirements effective 1 January 2024, with UBS Group entities compliant[13] - BCBS proposes adjustments to interest rate risk in banking book (IRRBB) standard, addressing issues with near-zero rates[14] - BCBS issues consultation on Pillar 3 disclosure framework for climate-related financial risks[14] Capital and Liquidity Management - UBS plans to repurchase up to USD 1bn of shares in 2024, aiming to exceed pre-acquisition repurchase levels by 2026[15] - UBS proposes a dividend of USD 0.70 per share for 2023, subject to approval at the Annual General Meeting on 24 April 2024[15] - UBS bought back USD 1.3bn of shares in 2023 before announcing Credit Suisse acquisition[15] - CET1 capital increased by USD 1.1 billion to USD 78.5 billion, driven by foreign currency translation and deferred tax assets[30] - Tier 1 capital increased by USD 2.0 billion to USD 92.4 billion, including a USD 0.9 billion increase in AT1 capital[30] - Available TLAC increased by USD 5.8 billion to USD 199.5 billion, supported by a USD 3.8 billion rise in TLAC-eligible senior unsecured debt[30] - RWA remained unchanged at USD 546.5 billion, with market risk RWA decreasing by USD 2.7 billion[30] - Leverage ratio denominator (LRD) increased by USD 79.6 billion to USD 1,695.4 billion, primarily due to currency effects[30] - Total high-quality liquid assets (HQLA) increased to USD 415,594 million, with a liquidity coverage ratio (LCR) of 215.66%[32] - Total loss-absorbing capacity (TLAC) available increased to USD 199,484 million, with TLAC as a percentage of RWA at 36.50%[32] - Net stable funding ratio (NSFR) improved to 124.66%, reflecting strong available stable funding[32] Credit Risk and Exposures - Credit risk exposures under the IRB approach are detailed by portfolio and PD range, with specific data provided on pages 29-38[19] - Counterparty credit risk (CCR) exposures are analyzed by approach, with qualitative statements on materiality and composition of collateral on pages 55-59[19] - Credit risk exposure is measured using Exposure at Default (EAD), which generally equals the IFRS Accounting Standards carrying amount as of the reporting date[27] - UBS applies two approaches to measure credit risk RWA: Advanced internal ratings-based (A-IRB) approach and Standardized approach (SA)[27] - Counterparty credit risk (CCR) exposure is primarily measured using internal models approved by FINMA, with EEPE and SEPE applied for OTC derivatives and ETDs[28] - Settlement risk exposure is measured based on the IFRS Accounting Standards carrying amount, with RWA calculated by applying prescribed regulatory risk weights[28] - Securitization exposures in the banking book are measured using the IFRS Accounting Standards carrying amount after eligible regulatory credit risk mitigation[28] - UBS applies a hierarchy of approaches for banking book securitizations to measure RWA, including SEC-IRBA, SEC-ERBA, and SEC-SA[28] - Non-counterparty-related risk (NCPA) exposure is measured using the IFRS Accounting Standards carrying amount, with RWA calculated by applying prescribed regulatory risk weights[27] - Equity positions in the banking book are measured using the IFRS Accounting Standards carrying amount, reflecting a net position, with RWA calculated by applying prescribed regulatory risk weights[27] - UBS applies an additional credit valuation adjustment (CVA) capital charge to hold capital against the risk of mark-to-market losses associated with counterparty credit quality deterioration[28] - Total credit risk exposures increased to USD 1,192,487 million in 2023, up from USD 725,107 million in 2022, driven by higher loan and off-balance sheet exposures[53] - Loan exposures in Switzerland grew to USD 513,171 million in 2023, compared to USD 292,134 million in 2022, representing a significant increase in the region[53] - Off-balance sheet exposures rose to USD 117,722 million in 2023, up from USD 59,413 million in 2022, reflecting expanded credit facilities and guarantees[53] - Past due exposures increased to USD 3,360 million in 2023, compared to USD 1,698 million in 2022, largely due to the acquisition of Credit Suisse Group[59] - Credit-impaired exposures, net of allowances, stood at USD 5,323 million in 2023, up from USD 1,892 million in 2022, with significant increases in financial services and private households[57] - Restructured exposures surged to USD 2,933 million in 2023, compared to USD 989 million in 2022, driven by the integration of Credit Suisse Group[62] - Unsecured loans increased by USD 42.2 billion to USD 398.3 billion in 2023, primarily due to higher balances at central banks and customer deposit inflows[64] - Partially or fully secured loans grew by USD 5.1 billion to USD 588.6 billion in 2023, influenced by currency effects in Personal & Corporate Banking[64] - Debt securities due within 1 year decreased to USD 26,862 million in 2023, down from USD 32,783 million in 2022, reflecting changes in high-quality liquid assets[56] - Credit risk exposures in the Americas totaled USD 331,712 million in 2023, up from USD 241,427 million in 2022, indicating significant regional growth[53] - Total credit risk exposure increased to USD 1,074,765 million as of 31 December 2023, up from USD 1,029,728 million in 30 June 2023 and USD 665,695 million in 31 December 2022[67] - Exposures in the Central governments and central banks asset class increased by USD 19.8 billion to USD 88.5 billion as of 31 December 2023[69] - Exposures in the Corporates asset class increased by USD 1.4 billion to USD 68.6 billion as of 31 December 2023[69] - Risk-weighted assets (RWA) in the Banks and securities dealers asset class decreased by USD 0.6 billion to USD 4.1 billion as of 31 December 2023[69] - Defaulted exposures increased to USD 4,832 million as of 31 December 2023, up from USD 4,757 million in 30 June 2023 and USD 1,686 million in 31 December 2022[67] - The secured portion of exposures increased to USD 533,337 million as of 31 December 2023, up from USD 524,879 million in 30 June 2023 and USD 358,946 million in 31 December 2022[67] - Exposures secured by financial guarantees increased to USD 10,766 million as of 31 December 2023, up from USD 7,181 million in 30 June 2023 and USD 3,047 million in 31 December 2022[67] - The company uses three FINMA-recognized external credit assessment institutions (ECAIs): S&P, Moody's, and Fitch Ratings for determining risk weights[66] - RWA density for the Corporates asset class was 73.9% as of 31 December 2023, up from 70.5% in 30 June 2023[70] - Exposures in the Public-sector entities and multi-lateral development banks asset class decreased by USD 1.9 billion to USD 17.2 billion as of 31 December 2023[69] - EAD increased by USD 22.6 billion to USD 1,057.8 billion, while RWA decreased by USD 5.4 billion to USD 206.9 billion across various asset classes[74] - Central governments and central banks asset class saw EAD increase by USD 28.1 billion to USD 281.4 billion, with RWA rising by USD 0.3 billion to USD 4.7 billion[74] - Banks and securities dealers asset class experienced a decrease in EAD by USD 3.3 billion to USD 16.5 billion, and RWA decreased by USD 1 billion to USD 6.9 billion[74] - Corporates: specialized lending asset class EAD increased by USD 1.7 billion to USD 63.0 billion, with RWA rising by USD 0.1 billion to USD 27.4 billion[74] - Retail: residential mortgages asset class EAD increased by USD 14.5 billion to USD 311.6 billion, and RWA increased by USD 4.5 billion to USD 64.6 billion[76] - Retail: qualifying revolving retail exposures (QRRE) asset class EAD increased by USD 1.8 billion to USD 7.5 billion, with RWA rising by USD 0.1 billion to USD 1.4 billion[76] - Retail: other retail asset class EAD decreased by USD 9.1 billion to USD 240.4 billion, and RWA decreased by USD 0.8 billion to USD 25.2 billion[76] - Central governments and central banks' total exposures as of 31.12.23 were $281,262 million, with an average CCF of 47.9% and average PD of 0.1%[77] - The average LGD for central governments and central banks as of 31.12.23 was 30.0%[77] - The RWA density for central governments and central banks as of 31.12.23 was 1.7%[77] - Central governments and central banks' total exposures as of 30.6.23 were $259,560 million, with an average CCF of 47.4% and average PD of 0.1%[77] - The average LGD for central governments and central banks as of 30.6.23 was 30.1%[77] - The RWA density for central governments and central banks as of 30.6.23 was 1.8%[77] - Central governments and central banks' total exposures as of 31.12.22 were $216,093 million, with an average CCF of 36.4% and average PD of 0.0%[77] - The average LGD for central governments and central banks as of 31.12.22 was 32.4%[77] - The RWA density for central governments and central banks as of 31.12.22 was 1.6%[77] - Total credit risk exposure for banks and securities dealers as of 31.12.23 was $17.148 billion, with a subtotal of $13.384 billion on-balance sheet and $3.764 billion off-balance sheet[78] - The average probability of default (PD) for the 0.00 to <0.15 PD range was 0.1%, with a total exposure of $11.841 billion[78] - For the 0.15 to <0.25 PD range, the average PD was 0.2%, with a total exposure of $1.247 billion[78] - The 0.25 to <0.50 PD range had an average PD of 0.4%, with a total exposure of $1.018 billion[78] - In the 0.50 to <0.75 PD range, the average PD was 0.6%, with a total exposure of $301 million[78] - The 0.75 to <2.50 PD range had an average PD of 1.6%, with a total exposure of $1.112 billion[78] - For the 2.50 to <10.00 PD range, the average PD was 6.3%, with a total exposure of $1.413 billion[78] - The 10.00 to <100.00 PD range had an average PD of 23.8%, with a total exposure of $120 million[78] - The default category (100.00 PD) had a total exposure of $95 million[78] - The subtotal RWA (Risk-Weighted Assets) for banks and securities dealers as of 31.12.23 was $6.921 billion[78] - Total exposures pre-CCF for public sector entities and multilateral developmental banks increased to $11,608 million as of 31.12.23, up from $9,800 million as of 31.12.22[79] - Average CCF for public sector entities and multilateral developmental banks was 19.3% for the 0.15 to <0.25 PD range as of 31.12.23[79] - EAD post-CCF and post-CRM for public sector entities and multilateral developmental banks was $8,476 million as of 31.12.23, compared to $8,646 million as of 31.12.22[79] - Average PD for public sector entities and multilateral developmental banks in the 0.50 to <0.75 range was 0.7% as of 31.12.23[79] - RWA density for public sector entities and multilateral developmental banks was 9.7% as of 31.12.23, slightly down from 9.0% as of 31.12.22[79] - Number of obligors for public sector entities and multilateral developmental banks in the 0.00 to <0.15 PD range was 0.2 thousand as of 31.12.23[79] - Average LGD for public sector entities and multilateral developmental banks in the 0.75 to <2.50 PD range was 33.7% as of 31.12.23[79] - Average maturity for public sector entities and multilateral developmental banks in the 2.50 to <10.00 PD range was 3.9 years as of 31.12.23[79] - EL Provisions for public sector entities and multilateral developmental banks in the 0.00 to <0.15 PD range were $1 million as of 31.12.23[79] - Total RWA for public sector entities and multilateral developmental banks was $819 million as of 31.12.23, up from $779 million as of 31.12.22[79] - Total pre-CCF exposure for Corporates: specialized lending as of 31.12.23 was $76,172 million, with an average CCF EAD of 38.0%[80] - The RWA density for the 0.75 to <2.50 PD range was 63.5%, with RWA amounting to $11,856 million[80] - The number of obligors in the 0.00 to <0.15 PD range was 0.1 thousand, with an average LGD of 18.9%[80] - The 2.50 to <10.00 PD range had an RWA density of 113.5%, with RWA totaling $2,956 million[80] - The 100.00 (default) PD range had a post-CCF exposure of $215 million, with RWA at $228 million[80] - Subtotal pre-CCF exposure for Corporates: specialized lending as of 30.6.23 was $74,197 million, with an average CCF EAD of 37.5%[80] - The 0.50 to <0.75 PD range as of 30.6.23 had an RWA density of 48.9%, with RWA amounting to $4,692 million[80] - The 10.00 to <100.00 PD range as of 31.12.22 had an RWA density of 169.2%, with RWA totaling $1 million[80] - The 0.75 to <2.50 PD range as of 31.12.22 had an RWA density of 62.8%, with RWA amounting to $5,875 million[80] - Subtotal pre-CCF exposure for Corporates: specialized lending as of 31.12.22 was $35,602 million, with an average CCF EAD of 38.3%[80] - Total corporate lending exposures as of 31.12.23 amounted to $226.092 billion,