UBS(UBS)2025-04-30 10:20Financial Performance - Total revenues for Q1 2025 were USD 12,557 million, a decrease of 1.4% compared to USD 12,739 million in Q1 2024[16] - Net profit attributable to shareholders for Q1 2025 was USD 1,692 million, down 3.6% from USD 1,755 million in Q1 2024[16] - The total comprehensive income for the quarter was USD 3,345 million, a significant recovery from a loss of USD 1,878 million in the previous quarter[34] - Profit before tax increased by USD 257 million, or 23%, to USD 1,359 million, driven by higher total revenues[90] - Total revenues rose by USD 279 million, or 5%, to USD 6,422 million, primarily due to higher recurring net fee income and transaction-based income[91] - Total revenues increased by USD 279m, or 5%, to USD 6,422m compared to the previous year[99] - Operating profit before tax reached USD 1,359m, reflecting an increase of USD 257m from the prior year[99] Cost Management - UBS Group achieved cumulative gross cost savings of USD 8.4 billion by the end of Q1 2025, representing approximately 65% of the target of USD 13 billion in annualized exit rate gross cost savings by the end of 2026[19] - Integration-related expenses for the quarter totaled USD 894 million, a decrease from USD 1,233 million in the previous quarter[36] - Total operating expenses increased by USD 67 million, or 1%, to USD 10,324 million, primarily due to an USD 83 million increase in personnel expenses[40][57] - Operating expenses increased by USD 13 million to USD 5,057 million, mainly due to higher financial advisor compensation[96] Asset Management - Total assets as of March 31, 2025, were USD 1,543,363 million, a decrease from USD 1,606,798 million in Q1 2024[16] - Risk-weighted assets (RWA) decreased by USD 15.3bn to USD 483.3bn in Q1 2025, driven by asset size reductions and Basel III implementation[78] - The CET1 capital ratio remained stable at 14.3% despite a decrease in CET1 capital[79] - Invested assets increased by USD 36 billion to USD 4,218 billion, driven by positive foreign currency effects and net new asset inflows of USD 31.5 billion[97] Capital and Liquidity - The liquidity coverage ratio as of March 31, 2025, was 181.0%, down from 220.2% in Q1 2024[16] - UBS's CET1 capital ratio target is around 14%, which will guide its share repurchase strategy[32] - Common equity tier 1 (CET1) capital decreased to USD 69.152 billion from USD 71.367 billion, primarily due to a net share repurchase effect of USD 3.0 billion[187] - Total going concern capital as of March 31, 2025, is USD 87.837 billion, an increase from USD 87.739 billion as of December 31, 2024[185] Strategic Initiatives - UBS is on track to complete the integration of Credit Suisse by the end of 2026, focusing on client account migrations and infrastructure decommissioning[17] - The company entered into a strategic collaboration with 360 ONE WAM Ltd, acquiring a 4.95% interest and transferring its onshore wealth management business in India[33] - UBS plans to repurchase USD 1 billion of shares in the first half of 2025, with USD 0.5 billion completed in Q1 and an additional USD 0.5 billion planned for Q2[32] Tax and Regulatory - In Q1 2025, the net income tax expense was USD 430m, with an effective tax rate of 20.2%, down from USD 612m and 25.8% in Q1 2024[61] - The company anticipates an effective tax rate of around zero in Q2 2025 due to tax planning measures related to integration[84] - The amendments to the Capital Adequacy Ordinance incorporating final Basel III standards entered into force on January 1, 2025[178] Market and Economic Conditions - Inflation has abated in major Western economies, but concerns regarding future developments remain[166] - The company continues to monitor geopolitical developments and their potential impacts on financial stability[164]