After an intense weekend of negotiations in March 2023, Swiss banking giant UBS agreed to buy its embattled rival Credit Suisse.Despite the attractive purchase price of $3.2 billion, investors were concerned about whether UBS would manage to turn around Credit Suisse's investment banking business — an old source of problems. UBS had also become one the biggest banks in Europe, raising political and regulatory fears.At the time, investors were "very concerned" about the complexity of the deal and whether UBS ...

Group 1: UBS Asset Management Divestiture - UBS Asset Management has agreed to divest its Quantitative Investment Strategies (QIS) business to Manteio Partners LLC, with the transaction expected to close in Q4 2024, pending regulatory and shareholder approvals [1] - The QIS team currently manages approximately $1.5 billion in assets, which will be transferred to Manteio Partners, allowing Manteio to operate as an independent unit [1] Group 2: Financial Performance and Restructuring - In Q2 2024, UBS's asset management segment reported an operating profit before tax of $130 million, a 64.6% increase year over year, primarily due to the consolidation of Credit Suisse revenues [1] - UBS is streamlining operations post-Credit Suisse acquisition, aiming to wind down its Non-Core and Legacy portfolio, releasing over $6 billion of capital by the end of 2026, and targeting gross cost reductions of around $13 billion by 2026 compared to 2022 levels [2] - UBS achieved gross cost savings of $0.9 billion in Q2 2024, totaling a yearly exit rate gross cost savings of $6 billion compared to the combined cost base of Credit Suisse and UBS in 2022 [2] Group 3: Real Estate Fund Liquidation - UBS announced the liquidation of a flagship real estate fund acquired from Credit Suisse due to investor withdrawals from commercial real estate markets, with the fund primarily consisting of office assets [3] - The decision to close the fund was made to avoid selling assets at an unfavorable time, which would negatively impact current investors [3] Group 4: Wealth Management Realignment - UBS is realigning its wealth management business to enhance offerings for ultra-rich clients, establishing a new division named GWM Solutions to consolidate various products starting July 1 [4] - This initiative aims to strengthen UBS's financial position while focusing on core activities [4] Group 5: Market Performance - Over the past six months, UBS Group shares have returned 9.3% on the NYSE, compared to the industry's growth of 12.2% [4]

UBS Group AG (UBS) will liquidate a flagship real estate fund it acquired when it bought Credit Suisse. The move came as the latest indication of the turmoil brought on by investors withdrawing their money from slumping commercial real estate markets.The fund, which comprises offices for four-fifths of its assets, has redemption requests from investors. However, the bank stated that fulfilling those demands would need selling assets at an ‘inopportune time,’ which would affect current investors. UBS determi ...

Financial Data and Key Metrics Changes - The U.S. economy is expected to show resilience due to renewed fiscal efforts, reducing the likelihood of recession [4][22] - The initiation of interest rate cuts may serve as a turning point for interest rate trends [3][24] Business Line Data and Key Metrics Changes - Consumer spending in Europe is recovering slower than expected, with confidence needing more time to translate into actual spending [10][29] - The consumer sector is particularly weak, especially in durable goods related to the sluggish housing market [29] Market Data and Key Metrics Changes - U.S. inflation data for July presents mixed signals, with housing inflation rebounding while vehicle prices continue to deflate [14][16] - The divergence between PPI and core commodity year-on-year growth rates has widened, complicating the Federal Reserve's decision-making regarding interest rate cuts [17][22] Company Strategy and Development Direction and Industry Competition - The fiscal push is expected to create financing pressures, with projected bond issuance reaching $740 billion and $565 billion in the fourth quarter [25][27] - The demand for U.S. Treasury bonds remains strong, primarily driven by money market funds, despite a lack of long-term bond supply [26] Management's Comments on Operating Environment and Future Outlook - The management indicates that the current economic environment may lead to further weakening of CPI and other economic data, potentially pushing 10-year Treasury yields down to around 3.7% [23][24] - The management emphasizes that the expectation of inflation returning to the Federal Reserve's 2% target is unrealistic, highlighting the need for careful consideration of potential inflation rebounds post-rate cuts [31][32] Other Important Information - The overall housing inflation year-on-year decline is slowing, signaling a "no rate cut, gradual rate cut" message [30] - Despite low prices for used cars, U.S. auto sales remain relatively stable [30] Q&A Session Summary Question: What are the implications of the current inflation data for future interest rate decisions? - The inflation report is seen as lacking a clear direction, providing the Federal Reserve with greater flexibility in its policy choices [32] - The potential for inflation to rebound in the coming months is acknowledged, necessitating a robust rationale for any rate cuts [31]

UBS Group TodayUBSUBS Group$30.15 -0.74 (-2.40%) 52-Week Range$23.14▼$32.13Dividend Yield0.73%P/E Ratio3.28Add to WatchlistUBS Group NYSE: UBS is the 8th largest firm in the capital markets industry worldwide and the largest in Europe. The company has underperformed its sector this year, with a total return of 2%. The iShares MSCI Europe Financials ETF NASDAQ: EUFN has returned 12%.On Wednesday, Aug. 8, UBS pleased the market with its release of Q2 2024 earnings. Shares shot up nearly 6% on the day. Over a ...

UBS Group AG (UBS) reported a second-quarter 2024 net profit attributable to shareholders of $1.13 billion, which declined from $27.3 billion in the prior-year quarter. The prior-year quarter’s figure included a negative goodwill of $27.2 billion, resulting from the acquisition of Credit Suisse Group.Results were affected due to an increase in operating expenses. Nonetheless, a rise in total revenues, driven by the acquisition of Credit Suisse acted as a tailwind. The decrease in credit loss expenses was an ...

Key TakeawaysUBS shares rose Wednesday after the banking giant's second-quarter results beat estimates, with profits more than double analysts' expectations.The Swiss bank's merger with former rival Credit Suisse helped UBS cut costs and generate new business.UBS warned the second half of the year could be "clouded" with uncertainties like ongoing global conflict and the U.S. presidential election. UBS Group (UBS) shares rose Wednesday after the Swiss banking giant's second-quarter earnings beat estimates, ...

UBS Group AG (NYSE:UBS) Q2 2024 Earnings Conference Call August 14, 2024 3:00 AM ET Company Participants Sarah Mackey - Head of Investor Relations Sergio Ermotti - Group Chief Executive Officer Todd Tuckner - Group Chief Financial Officer Conference Call Participants Giulia Miotto - Morgan Stanley Andrew Coombs - Citi Jeremy Sigee - BNP Paribas Kian Abouhossein - JPMorgan Anke Reingen - RBC Chris Hallam - Goldman Sachs Amit Goel - Mediobanca Benjamin Goy - Deutsche Bank Tom Hallett - KBW Operator Ladies and ...

UBS (UBS) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $1.88 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 183.33%. A quarter ago, it was expected that this bank would post earnings of $0.23 per share when it actually produced earnings of $0.52, delivering a surprise of 126.09%.Over the last four quarters, the company has surpassed ...

ZURICH, Switzerland ꟷ UBS CEO Sergio Ermotti said Wednesday that market volatility could intensify in the second half of the year, but he does not believe the U.S. is heading into a recession.Global equities saw sharp sell-offs last week as investors digested weak economic data out of the U.S. which raised fears about an economic downturn in the world's largest economy. It also raised questions about whether the Federal Reserve needed to be less hawkish with its monetary policy stance. The central bank kept ...