UBS stock lost the ground after lenders’ fourth quarter results and plans to buy up to $3 billion in stock repurchase plans.
Swiss biggest banks on Tuesday are nets attributable to shareholders compared to the company’s consensus estimates of $483 million and the average forecast of $886.4 million in Analyts’ LSEG polls. Profits have been reported.
Group revenues over the period reached $11.635 billion, compared to analysts’ expectations of $11.644 billion in LSEG analyst polls.
The bank also announced plans to buy back $1 billion in stock in the first half of 2025, adding up to $2 billion in stock later this year, which aims to ensure lenders have “meet financial goals and ” He warned that he is enduring achieving his financial goals. The lack of material changes and immediate changes to Switzerland’s current capital regime. ”
The group also proposed a dividend of $0.90 per share for fiscal year 2024, an increase of 29% year-on-year.
UBS stocks opened in positive territory, but fell 5.57% in London time at 9:54am.
Deutsche Bank analysts noted the “solid” fourth quarter results, but signaled that “the division mix could have improved” given the performance of individuals and corporate banking units. Other income was partially offset by a decline in net interest income, according to UBS.
“We’re balancing decent results, but perhaps not as good as it looks,” City analysts flagged the welcome cost and dividend beat, but the overall cost and cost income guidance for 2026 is Although unchanged, Net Interest Revenue (NII) “Drugs are set to continue.”
Includes other quarter highlights.
CET 1 capital ratio, a measure of bank solvency, remains the same since the third quarter, with tangible stock returns of 3.9% compared to 7.3% in the third quarter.
Investment banks shined over the fourth quarter, up 37% year-on-year amid “strong growth” in global banking and global market performance. The group’s Global Wealth Management division said “is driven primarily by increased net worth fee revenue, other negative declines, and increased transaction-based revenue,” with 10% of revenue over the fourth quarter The increase was recorded.
“At investment banks, it’s always been very important to us, and it’s about matching and getting closer to the best of the class in the areas we want to compete with,” UBS CEO Sergio Elmotti said on Tuesday that CNBC’s Caroline. -Telled to Ross. “Therefore, looking at stock effects, capital market activity, M&A and leveraged finance not only increase revenues as a function of constructive market conditions, but also gain market share.”
He added, working on the bank’s core wealth management operations, “When we looked at the returns of risk-related assets in the wealth management business, we have earned some points regarding the returns of risk-related assets.”
In its first quarter outlook, banks are reducing the NII low to mid-single-digit percentage decline in NII by 10% in the NIIs in the individual and corporate banking sectors.
Size matters
After weathering a storm of turbulent government-backed alliances with domestic rival Credit Issu, which fell in 2023, UBS is on track at its 2024 integration milestone, with another 700 million in the fourth quarter It led to a total cost reduction in the dollar. The group hoped to achieve $7.5 billion of a total cost savings of $13 billion by the end of last year. CEO Sergio Hermotti signaled that redundancy is “inevitable” as part of the process, in an interview with Bloomberg last month. This group aims to rely on voluntary departures.
UBS on Tuesday said it plans to achieve an additional $2.5 billion in total cost savings this year.
The tightening of the Swiss belt is added to the photographs of broader cost discipline and restructuring across the European banking sector, in order for lenders to end high interest rate periods and keep them in step with their colleagues. On Monday, Swiss Bank’s Julius Bear teammates revealed an additional target of 110 million ($120 million) for the Swiss franc in total savings, but last week, HSBC reported in Europe and the UK and said it is preparing to abolish M&A and stock capital market operations in the UK. US
Armed with a balance sheet that exceeded $1.7 trillion in 2023 – Switzerland’s expected economic output last year – nearly twice as many as Switzerland’s – UBS is fighting voice concerns at home . If it fails, Bern has a tag with a sudden nationalized price. Now there are still questions about whether UBS will face further capital requirements as a result.
The Swiss economy has already been brought back to an already fragile corner, an annual inflation that fell by just 0.6% in December and a fragile corner, the punishable Swiss franc. Safe Haven assets.
“Of course, as we can see in the current environment, the ongoing tariff debate creates uncertainty. The market is very sensitive to positive or negative developments,” warns Elmotti, with some of the volatility being He emphasized that it is priced on the market.
“Of course, tariff wars, which are tariff escalations, are likely to lead to economic impacts in terms of potential recession and inflationary pressures, so they have the central bank stop the easing path and potentially reverse it. Must be. It’s definitely from the market [has] There is no pricing, leading to higher volatility spikes.
