UBS(US:UBS)2025-10-29 09:00Financial Data and Key Metrics Changes - The company reported a net profit of $2.5 billion, up 74% year-over-year, with earnings per share of $0.76 [11] - Underlying pre-tax profit was $3.6 billion, a 50% increase, driven by 5% revenue growth [11] - The return on CET1 capital was 16.3%, with a 12.7% return excluding litigation impacts [11][12] - Total assets decreased by $38 billion to $1.6 trillion, while loan balances remained stable at $666 billion [14][16] Business Line Data and Key Metrics Changes - Global Wealth Management (GWM) delivered a pre-tax profit of $1.8 billion, up 21% year-over-year, with significant growth in APAC [18][19] - Personal and Corporate Banking (PNC) reported a pre-tax profit of CHF 668 million, up 1%, despite challenging macro conditions [25] - Asset Management achieved a pre-tax profit of $282 million, up 19% year-over-year, with invested assets surpassing $2 trillion for the first time [27][28] - The Investment Bank's pre-tax profit was $787 million, more than double year-over-year, with revenues up 23% to $3 billion [29][31] Market Data and Key Metrics Changes - Invested assets in GWM increased by 4% sequentially to $4.7 trillion, with net new assets of $38 billion [20] - APAC showed exceptional inflows, contributing $38 billion, while the Americas experienced negative net new assets of $9 billion [20][21] - The company reported a stable credit impaired exposure at 90 basis points, with a cost of risk decreasing by 4 basis points [15] Company Strategy and Development Direction - The company is focused on completing the integration of Credit Suisse and enhancing its platform for sustainable growth [6][10] - A national bank charter application was filed in the U.S. to broaden banking capabilities and improve client offerings [7] - The company aims to strategically invest across its platform while maintaining a disciplined approach to cost management [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's capital strength and ability to execute capital return plans despite macroeconomic uncertainties [6][9] - The outlook for the fourth quarter indicates healthy deal pipelines, although macro uncertainties and a strong Swiss franc may impact capital market activities [9] - Management highlighted the importance of client engagement and the positive sentiment among UBS and former Credit Suisse employees [5][6] Other Important Information - The integration of Asset Management is substantially complete, allowing for a focus on driving efficient growth [5] - The company has made significant progress in decommissioning legacy systems, achieving $10 billion in gross run-rate cost savings ahead of schedule [13][14] - The company resolved significant legacy litigation matters, which positively impacted financial performance [6] Q&A Session Summary Question: Why wait for Q4 before upgrading guidance despite strong performance? - Management indicated that ongoing year-end planning will inform guidance updates, considering integration budgets and outlook for divisions [39] Question: Comments on the $500 million hit on asset management client assets? - Management clarified that UBS has no balance sheet exposure to First Brands and is taking steps to protect clients' interests [40] Question: Benefits of the national charter and net new asset outlook? - The national charter will enhance banking capabilities and support net interest income growth, with expectations of tapering advisor turnover [42][44] Question: Clarification on AT1 write-down and its relation to the Credit Suisse acquisition? - Management confirmed that the AT1 write-down was integral to the rescue transaction and that UBS had no outstanding AT1 instruments at the time of acquisition [46][62] Question: Integration of Swiss operations and system failures? - Management stated that any system issues are unrelated to client migration and emphasized the successful management of net interest income in a zero interest rate environment [68][70]