UBS: UBS reports 1Q25 net profit of USD 1.7bn with 6.2trn invested assets, demonstrating franchise strength and executing integration at pace (Ad hoc announcement pursuant to Article 53 of the SIX Exchange Regulation Listing Rules)

In This Article: Sergio P. Ermotti quote Key highlights Selected financials for 1Q25 Group PBT USD 2,132m, underlying PBT USD 2,586m Global Wealth Management (GWM) PBT USD 1,359m, underlying PBT USD 1,545m Personal & Corporate Banking (P&C) PBT CHF 545m, underlying PBT CHF 597m Asset Management (AM) PBT USD 135m, underlying PBT USD 208m Investment Bank (IB) PBT USD 722m, underlying PBT USD 696m Non-core and Legacy (NCL) PBT USD (391m), underlying PBT USD (200m) Group Items PBT USD (299m), underlying PBT USD (326m) ZURICH, April 30, 2025 --( BUSINESS WIRE )--Regulatory News: UBS (NYSE:UBS) (SWX:UBSN): "The power and scale of our diversified global franchise, coupled with our continued focus on clients, drove strong business momentum in the quarter and net new inflows in our asset-gathering businesses. As we start to execute on the next critical phase of integration, I remain pleased with the substantial progress we have made so far. With increased uncertainty in markets and the macroeconomic outlook, we continue to focus on supporting clients, delivering on our financial targets, and acting as an engine of economic growth in the communities we serve." Sergio P. Ermotti, Group CEO 1Q25 PBT of USD 2.1bn and underlying 1 PBT of USD 2.6bn, net profit of USD 1.7bn , RoCET1 of 9.6% and underlying RoCET1 of 11.3%. Core businesses 2 increased combined underlying PBT by 15% Franchise strength demonstrated by continued client momentum ; Global Wealth Management net new assets of USD 32bn; Asset Management net new money of USD 7bn, CHF 40bn of loans granted or renewed in Switzerland; GWM underlying transaction-based income up 15% YoY; record-high Global Markets underlying revenues, up 32% YoY Integration remained on track ; delivered further USD 0.9bn in exit rate gross cost saves bringing cumulative cost reductions to USD 8.4bn, or 65% of the expected USD 13bn. Swiss branch consolidation completed ahead of main waves of client account migrations, set to begin in the second quarter Continued strong progress in Non-core and Legacy wind-down ; risk weighted assets down by USD 7bn sequentially to USD 34bn Balance sheet for all seasons underpinned by high-quality credit book with 93% of lending positions being collateralized; mortgages comprise 57% of loan book Maintained a strong capital position with 14.3% CET1 capital ratio and 4.4% CET1 leverage ratio, providing a solid capital buffer to requirements during integration and given increased market volatility, while self-funding growth and returning capital to shareholders Completed USD 0.5bn in share buybacks and reserved USD 2.5bn for planned share repurchases for the remainder of 2025; accruing a ~10% year-on-year growth in dividend Continued to invest in technology and growth including GenAI and cloud, having completed the roll out of 50,000 Microsoft Copilot licenses to employees, as well as other tools, and increased cloud usage to ~75%; entered into an exclusive strategic collaboration with 360 ONE on wealth management in India and international markets USD 2.1bn Profit before tax 82.2% Cost/income ratio 9.6% RoCET1 capital USD 1.7bn Net profit 14.3% CET1 capital ratio USD 2.6 bn Underlying 1 profit before tax 77.4% Underlying 1 cost/income ratio 11.3% Underlying 1 RoCET1 capital USD 0.51 Diluted EPS 4.4% CET1 leverage ratio Information in this news release is presented for UBS Group AG on a consolidated basis unless otherwise specified. 1 Underlying results exclude items of profit or loss that management believes are not representative of the underlying performance. Underlying results are a non-GAAP financial measure and alternative performance measure (APM). Refer to "Group Performance" and "Appendix-Alternative Performance Measures" in the financial report for the first quarter of 2025 for a reconciliation of underlying to reported results and definitions of the APMs. 2 Includes Global Wealth Management, Personal and Corporate Banking, Asset Management, the Investment Bank, and Group Items. Group summary Strong financial performance In 1Q25, we reported PBT of USD 2,132m and underlying PBT of USD 2,586m, down 10% and 1% YoY, respectively. Meanwhile our core businesses delivered strong positive operating leverage increasing their combined underlying pre-tax profits by 15%. Net profit attributable to shareholders was USD 1,692m and return on CET1 capital was 9.6%, or 11.3% on an underlying basis. Sergio P. Ermotti quote Key highlights Selected financials for 1Q25 Group PBT USD 2,132m, underlying PBT USD 2,586m Global Wealth Management (GWM) PBT USD 1,359m, underlying PBT USD 1,545m Personal & Corporate Banking (P&C) PBT CHF 545m, underlying PBT CHF 597m Asset Management (AM) PBT USD 135m, underlying PBT USD 208m Investment Bank (IB) PBT USD 722m, underlying PBT USD 696m Non-core and Legacy (NCL) PBT USD (391m), underlying PBT USD (200m) Group Items PBT USD (299m), underlying PBT USD (326m) Reported revenues were USD 12,557m, down 1% YoY. On an underlying basis, revenues decreased slightly to USD 11,904m. Compared to 1Q24, underlying revenues from our core businesses increased 6%, reflecting the strength, scale and geographic diversification of our franchises, while we saw a 72% decline in revenues in the much-reduced Non-core and Legacy division. Reported Group operating expenses increased by 1% YoY to USD 10,324m. On an underlying basis, operating expenses decreased slightly to USD 9,218m as we continued to execute on our integration and efficiency plans at pace. Maintained robust client momentum During the first quarter, we remained close to our clients as they relied on us as a source of stability amid uncertain market conditions. We continued to provide them with expert advice, solutions, and funding across franchises, driving strong momentum and capturing growth across our platform. In GWM, the USD 32bn in net new assets and USD 27bn in net new fee generating assets demonstrate the trust our clients continue to place in our CIO-led advisory and mandate solutions. Group invested assets increased by 5% YoY to USD 6.2trn. In the turbulent first weeks of April, we have increased our engagement, reaching around 1.3m clients with a series of market alerts, reports, and live streams that helped them to manage volatility and re-position portfolios. As a leading provider of credit to Swiss households and corporates, we continue to deliver on our commitments to our home market. In the first quarter, we granted or renewed CHF 40bn of loans in Switzerland, including CHF 30bn in Personal & Corporate Banking. Transactional activity was very strong across both private and institutional clients during the quarter. In GWM, underlying transaction-based income increased by 15% YoY with strong momentum across all regions, led by Americas and APAC. In the Investment Bank, Global Markets delivered a record quarter with revenues of USD 2.5bn, up 32% YoY, mainly driven by higher client activity in equities and FX with gains across all regions, showcasing the strength of our expanded franchise. Our performance was supported by the record-high market share in Cash Equities. Continued to execute on integration We have made further progress on our integration plans in the first quarter, actively preparing for the main client account migration waves in Switzerland, reducing the size of Non-core and Legacy, and delivering on our gross cost saves plans. For the first main wave of client account migrations scheduled for 2Q25, we have performed robust and extensive technology testing and rehearsals, as well as focused on preparing our client-facing areas for migration, e.g. by further increasing support capacity in our branches and contact centers. We have also completed the consolidation of our branch network in Switzerland. Since the acquisition we have merged 95 former Credit Suisse branches with existing UBS branches and now provide clients with access to a comprehensive network of 195 branches across Switzerland. Non-core and Legacy progressed well on its cost-reduction work. It has decommissioned almost 10% of its applications, for a total of 48% since its inception in 2Q23. NCL also continued to exit positions, having now closed 74% of its books since its inception and reduced RWA to USD 34bn at the end of 1Q25. In the first quarter, we delivered an additional USD 0.9bn in exit-rate gross cost saves across the Group, for a total of USD 8.4bn from the 2022 baseline. This amounts to 65% of our total cumulative gross cost saves ambition. Balance sheet for all seasons with strong capital position Our balance sheet for all seasons, underpinned by high-quality credit book and a strong capital position, remains the key pillar of our strategy and source of our competitive advantage. Our resilience is underscored by a quarter-end loan-to-deposit ratio of 80%. 57% of our prudently-managed loan book consists of mortgages, which are predominantly secured by real estate in Switzerland, with average loan-to-value of around 50%. Overall, 93% of loans and advances to customers on our balance sheet is collateralized. In the quarter, we maintained a strong capital position with a CET1 capital ratio of 14.3% and a CET1 leverage ratio of 4.4%. Both are in excess of our guidance of ~14% and >4.0%, respectively, and provide a solid capital buffer to requirements during the integration and increased market volatility, while enabling us to self-fund growth and return capital to shareholders. Commitment to capital returns It is now our intention to execute on the entirety of our 2025 capital return ambitions announced in February. We are accruing for an increase of around 10% in the ordinary dividend per share. We have completed USD 0.5bn in share buybacks in the first quarter and reserved USD 2.5bn for further share repurchases, as we plan to buy back an additional USD 0.5bn of shares in the second quarter of 2025 and USD 2bn of shares in the second half of the year. For 2026 we are maintaining our ambition fo