UBS Group Q3 Earnings & Revenues Increase Y/Y, Expenses Decline

UBS Group AG UBS reported a third-quarter 2024 net profit attributable to shareholders of $1.42 billion against a net loss of 715 million in the prior-year quarter. Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.Results were driven by the strong performances of the Global Wealth Management, Asset Management and Investment Bank divisions. The decrease in operating expenses was another positive. However, an increase in credit loss expenses was a headwind.UBS's Revenues & ExpensesThe company’s total revenues jumped 5% year over year to $12.3 billion.Operating expenses decreased 12% year over year to $10.3 billion.UBS Group reported total credit loss expenses of $121 million, which increased 27.4% from the year-ago quarter.UBS Business Divisions’ PerformanceIn June 2024, UBS announced that it would re-align its wealth management business to improve its offerings to ultra-rich clients. Starting July 1, 2024, it established a division known as GWM Solutions to consolidate different products for clients. This new unit has alternative products from its wealth and asset management businesses, including real estate and private market investments.Global Wealth Management’s (GWM) third-quarter operating profit before tax was $1.1 billion, up 17.2% year over year. This was driven by higher recurring net fees and transaction-based income.Asset Management’s operating profit before tax of $151 million surged from $37 million reported in the year-ago quarter. The rise was mainly driven by net gain from the closing of the remaining portion of the sale of the company’s Brazilian real estate fund management business and the sale of its shareholding in Credit Suisse Insurance Linked Strategies Ltd.Personal & Corporate Banking reported operating profit before tax of $846 million, down 11.6% year over year. The fall was due to lower revenues.The Investment Bank unit reported an operating profit before tax of $405 million against the operating loss of $254 million in the year-ago reported figure. The improvement was a result of higher total revenues and lower operating expenses.Non-Core & Legacy incurred an operating loss before tax of $603 million in the reported quarter compared with a loss of $1.17 billion in the year-ago quarter.Group Items reported operating profit before tax of $45 million against a loss of $89 million in the year-ago quarter.UBS's Capital PositionTotal assets increased 4% from the previous quarter’s end to $1.62 trillion. UBS’ return on Common Equity Tier 1 (CET1) capital was 7.6% as of Sept. 30, 2024, against negative 3.7% as of Sept. 30, 2023.The risk-weighted assets declined 4.9% year over year to $519.4 billion.The CET1 capital declined 3.5% year over year to $74.2 billion. As of Sept. 30, 2024, UBS's invested assets were $6.2 trillion, up 15% year over year.UBS Ahead of Credit Suisse Integration PlanThe company continues to execute its integration plans, de-risking the balance sheet and delivering on cost reduction ambitions. During the reported quarter, UBS maintained its cost optimization momentum, delivering an additional $0.8 billion in gross cost savings. By the end of 2024, the company expects to achieve $7.5 billion in gross cost savings.Since June 2024, the company has significantly advanced its work on migrating wealth management client accounts and data to UBS platforms. In October, it achieved a milestone, moving all Credit Suisse client accounts serviced out of Luxembourg and Hong Kong — a key booking hub in the Asia-Pacific region. UBS is on track to complete the ongoing account transitions in Singapore and Japan by the end of this year and will be in a position to commence the next phase of transfers in Switzerland in the second quarter of 2025. With this, the company is well positioned to enhance the client experience and unlock further cost reductions toward the end of 2025 and into 2026, as it delivers on its ambition of $13 billion in gross cost savings by the end of 2026.Our Take on UBSUBS Group’s inorganic growth efforts will support its top line. Further, the company’s restructuring of its wealth management segment will support its financials. A declining expense base is an added advantage. The company’s faster-than-expected Credit Suisse integration looks encouraging.Currently, UBS Group carries a Zacks Rank #4 (Sell).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Performances of Other Foreign BanksICICI Bank Ltd.’s IBN net income for the second quarter of fiscal 2025 (ended Sept. 30, 2024) was INR 117.5 billion ($1.4 billion), up 14.5% from the prior-year quarter.IBN’s results were driven by a rise in NII, non-interest income, and growth in loans and deposits. However, higher operating expenses and provisions were the undermining factors.Deutsche Bank DB reported third-quarter 2024 earnings attributable to its shareholders of €1.5 billion ($1.6 billion), up 41.7% year over year.Results were driven by solid growth in Investment Bank revenues and the partial release of Postbank-related litigation provisions. However, DB has increased its provision of credit loss forecast for 2024.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deutsche Bank Aktiengesellschaft (DB): Free Stock Analysis Report UBS Group AG (UBS): Free Stock Analysis Report ICICI Bank Limited (IBN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks