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Key highlights (Graphic: UBS Group
AG)
UBS (NYSE:UBS) (SWX:UBSN):
Key highlights
- 3Q24 PBT of USD 1.9bn and underlying1 PBT of USD 2.4bn
demonstrating the strength of our client franchises, diversified
business model and global scale; net profit of USD 1.4bn,
RoCET1 of 7.6% and underlying RoCET1 of 9.4%
- Continued client momentum with USD 25bn of net new
assets in Global Wealth Management, on track to deliver on our
ambition of USD ~100bn in NNA for 2024; Group invested assets of
USD 6.2trn, up 15% YoY; granted or renewed CHF ~35bn in loans in
Switzerland in the quarter
- Strong transactional activity across Global Wealth
Management and the Investment Bank, underlying GWM
transaction-based income up 19% YoY, Global Markets revenues up 31%
YoY
- Non-core and Legacy RWA reductions remain ahead of plan;
with USD 5bn in 3Q24 and USD 41bn since 2Q23
- Delivering on cost-reduction ambitions with additional
USD 0.8bn in gross cost savings realized in 3Q24 and USD ~7.5bn
expected for full-year 2024
- Successful completion of first wave of client account
migrations with transfers in Luxembourg and Hong Kong in
October; Singapore and Japan expected by year-end and Switzerland
in 2025, positioning us well to enhance the client experience and
to unlock next phase of significant cost saves toward the end of
2025 and in 2026
- Strong capital position allowed us to voluntarily
accelerate the phase-out of the remaining transitional capital
adjustments agreed with our regulator, bringing the CET1 capital
ratio in line with our guidance; we remain committed to our
dividend and buyback ambitions for 2025 and 2026
- Positioning for long-term growth with investments in our
people, products and capabilities, including technology with roll
out of 50,000 Microsoft 365 Copilot licenses to our employees by
March 2025, the largest deployment within the global financial
services industry to date
“Our performance in the third quarter demonstrates the power of
our unique client franchises, global scale and diversified business
model. Against a market backdrop that, while constructive, still
exhibited periods of high volatility and dislocation, our
businesses delivered impressive revenue growth as we maintained
strong client momentum, particularly in the Americas and APAC. We
continue to significantly mitigate execution risk as we progress on
the integration of Credit Suisse while remaining disciplined in
driving our cost and efficiency targets. At the same time, we are
investing in our people, products and capabilities, including
technology, to enhance client experience, improve productivity and
achieve sustainably profitable growth.” Sergio P. Ermotti, Group
CEO
Selected financials for
3Q24
Profit before tax
1.9
USD bn
Cost/income ratio
83.4
%
RoCET1 capital
7.6
%
Net profit
1.4
USD bn
CET1 capital ratio
14.3
%
Underlying1 profit before tax
2.4
USD bn
Underlying1 cost/income ratio
78.5
%
Underlying1 RoCET1 capital
9.4
%
Diluted EPS
0.43
USD
CET1 leverage ratio
4.6
%
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 third quarter of 2024 for
a reconciliation of underlying to reported results and definitions
of the APMs.
Group summary
Strong financial performance
In 3Q24, we reported PBT of USD 1,929m and underlying PBT of USD
2,386m. Net profit attributable to shareholders was USD 1,425m and
return on CET1 capital was 7.6%, or 9.4% on an underlying
basis.
Reported revenues were USD 12,334m, up 5% YoY. On an underlying
basis, revenues increased by 9% YoY to USD 11,672m, as strong
transactional activity and recurring fee income driven by higher
average invested assets more than offset the expected net interest
income headwinds. Reported Group operating expenses decreased by
12% YoY to USD 10,283m. On an underlying basis, operating expenses
decreased by 4% YoY to USD 9,165m as we continued to execute on our
integration and efficiency plans.
Continued franchise strength and client momentum
During the third quarter, we remained close to our clients,
guiding them through a market environment that while constructive,
also showed signs of dislocation and volatility. Clients continue
to value the investment opportunities we provide across our advice
platform, as demonstrated by USD 25bn in net new assets in GWM. We
remain on track to deliver on our ambition of USD ~100bn in NNA in
2024. We also generated USD 15bn of net new fee generating assets
in the quarter, reflecting strong discretionary mandate sales in
all regions with disciplined pricing. Group invested assets
increased by 15% YoY to USD 6.2trn.
As a leading provider of credit to Swiss companies and the
economy, we are also delivering on our commitments to our home
market. In the quarter, we granted or renewed CHF ~35bn of loans in
Switzerland.
Transactional activity was strong during the quarter across both
private and institutional clients. In GWM, underlying
transaction-based income increased by 19% YoY with strong momentum
across all regions, led by the Americas and APAC. In the IB, Global
Markets delivered revenues of USD 1.9bn, up 31% YoY, mainly driven
by higher client activity and the strength of our expanded
franchise, with gains across all regions, particularly in the
Americas.
In Global Banking, underlying revenues increased 21% YoY with
strong M&A performance in Asia and the US.
Ahead of plan on financial and operational integration
priorities
We continue to execute on our integration plans, de-risking our
balance sheet, and delivering on our cost reduction ambitions.
In 3Q24, we further reduced NCL RWA by USD 5bn, primarily
through active unwinds across the loan and securitized products
portfolios, bringing the total RWA reduction in NCL to USD 41bn
since 2Q23. Similarly, NCL LRD decreased by 69% since 2Q23,
including USD 11bn in the third quarter. Since last June, we have
closed 52% of active books, around a year ahead of our original
schedule.
In the quarter, we maintained our cost optimization momentum
across the Group, delivering an additional USD 0.8bn in gross cost
saves. By the end of 2024 we expect to achieve USD ~7.5bn of gross
cost savings, or ~58% of our total cumulative gross cost save
ambition.
Since June, we have also significantly advanced our work on
migrating wealth management client accounts and data to UBS
platforms. In October, we successfully achieved another milestone,
moving all client accounts serviced out of Luxembourg and Hong
Kong, a key booking hub in APAC. We are on track to complete the
ongoing account transitions in Singapore and Japan by the end of
this year, and will be in position to commence the next phase of
transfers in Switzerland in the second quarter of 2025.
With this we are well positioned to enhance the client
experience and to unlock further cost reductions toward the end of
2025 and into 2026, as we deliver on our ambition of USD ~13bn in
gross cost saves by the end of 2026.
Maintaining strong capital position; expecting to operate at
~14% CET1 capital ratio; remain committed to capital returns
ambitions
In the third quarter of 2024, reflecting our strong capital
position, completion of legal entity mergers, overall progress on
the integration and the winding down of NCL, we voluntarily
accelerated the amortization of the remaining transitional purchase
price allocation (PPA) adjustments for common equity tier 1 (CET1)
capital purposes. This resulted in a USD 3.4bn decrease in CET1
capital and a CET1 capital ratio of 14.3%. Excluding this
adjustment, the CET1 capital ratio would have been 14.9%.
In connection with the acquisition of the Credit Suisse Group in
2023, the Swiss Financial Market Supervisory Authority (FINMA) had
approved neutralizing a CET1 capital effect of USD 5.0bn (net of
tax) of interest-rate and own-credit-driven fair value adjustments
for UBS Group AG that are expected to fully reverse into income and
be accretive to CET1 capital over time. The transitional treatment
was subject to linear amortization at the rate of USD 0.3bn per
quarter through 30 June 2027. This quarterly amortization was
eliminated upon fully amortizing the transitional treatment in the
third quarter of 2024.
As these transitional adjustments only applied to UBS Group AG,
the regulatory capital position of UBS AG was not impacted by the
decision to fully amortize them. On a standalone basis as of 30
September 2024, UBS AG’s fully applied CET1 capital ratio is
expected to be around 13.3%.
We expect that the adoption of the final Basel III standards in
January 2025 will lead to a low single-digit percentage increase in
the UBS Group’s RWA, reducing the CET1 capital ratio by around 30
basis points. This estimate is based on our current understanding
of the relevant standards as we are in an active dialogue with
FINMA regarding various aspects of the final rules. We continue to
expect to operate with a CET1 capital ratio of around 14% after the
implementation of the final Basel III standards.
We expect to complete our planned USD 1bn of share repurchases
in the fourth quarter of 2024. Our ambition to continue share
repurchases in 2025 and for our capital returns in 2026 to exceed
pre-acquisition levels is unchanged. Our ambitions beyond 2025 are
subject to our assessment of any proposed requirements from
Switzerland’s ongoing review of its capital regime.
Investing for long-term growth in our people, products and
capabilities
In addition to meeting the current needs of our clients,
executing the integration, and delivering on short term plans, we
remain focused on positioning UBS for long-term growth. We continue
to self-fund our investments in our people, products and
capabilities to further develop our client offerings across all of
our businesses, including our growth regions, Americas and
APAC.
This includes building on our long-standing AI expertise and
industry-leading cloud position to accelerate development and
adoption of GenAI solutions that benefit clients and employees.
With the rollout of 50,000 Copilot licenses between now and the
end of March 2025, UBS is currently implementing the largest
Microsoft 365 Copilot deployment within the global financial
services industry to date. Another example is Red, a proprietary
new AI assistant that will provide 20,000 employees in Switzerland,
Hong Kong, and Singapore with easy access to UBS product
information and investment research. In the Investment Bank, we are
piloting a proprietary AI algorithm that researches and compiles
potential merger and acquisition buy-side targets.
In these, and the many other AI deployments that are underway
across the entire firm, we are focused on responsible AI. For
example, all employees Group-wide are currently completing a
‘Responsible use of Generative AI’ training.
Outlook
In the third quarter of 2024 we saw strong client activity
against a market backdrop that, while constructive, still exhibited
periods of high volatility and dislocation.
Entering the fourth quarter, we see a continuation of these
market conditions sustained by the prospects of a soft landing in
the US economy. However, the macroeconomic outlook in the rest of
the world remains clouded. In addition to seasonality, the ongoing
geopolitical conflicts and the upcoming US elections are creating
uncertainties that are likely to affect investor behavior.
In the fourth quarter, we anticipate a mid-single digit decline
in net interest income in Global Wealth Management and a low
single-digit decline in Personal & Corporate Banking. Non-core
and Legacy is expected to generate a quarterly pre-tax loss in line
with our earlier guidance.
The Group’s non-personnel costs are expected to show a seasonal
sequential uptick. The Group’s quarterly tax rate is expected to be
around 35%. Integration-related expenses are expected to be around
USD 1.2bn and accretion of PPA effects to contribute around USD
0.5bn to the Group’s total revenues.
As we stay close to clients, helping them navigate this
environment, and execute on our priorities, we will continue to
invest to drive sustainable long-term value for our stakeholders
while maintaining a balance sheet for all seasons.
Third quarter 2024 performance overview
– Group
Group PBT USD 1,929m, underlying PBT USD 2,386m
PBT of USD 1,929m included PPA effects and other integration
items of USD 662m and integration-related expenses and PPA effects
of USD 1,119m. Underlying PBT was USD 2,386m, including net credit
loss expenses of USD 121m. The cost/income ratio was 83.4%, and
78.5% on an underlying basis. Net profit attributable to
shareholders was USD 1,425m, with diluted earnings per share of USD
0.43. Return on CET1 capital was 7.6%, and 9.4% on an underlying
basis.
Global Wealth Management (GWM) PBT USD 1,085m, underlying PBT
USD 1,280m
Total revenues increased by 4% to USD 6,199m, largely driven by
higher recurring net fee and transaction-based income, partly
offset by lower net interest income. Excluding PPA effects and
other integration items of USD 224m, underlying total revenues were
USD 5,975m, an increase of 7%. Net credit loss expenses were USD
2m, compared with net expenses of USD 10m in the third quarter of
2023. Operating expenses increased by 2% to USD 5,112m, largely due
to an increase in personnel expenses, which resulted from higher
financial advisor compensation reflecting an increase in
compensable revenues. Excluding integration-related expenses and
PPA effects of USD 419m, underlying operating expenses were USD
4,693m, an increase of 3%. The cost/income ratio was 82.5%, and
78.5% on an underlying basis. Invested assets increased by USD
221bn sequentially to USD 4,259bn. Net new assets were USD
24.7bn.
Personal & Corporate Banking (P&C) PBT CHF 728m,
underlying PBT CHF 659m
Total revenues decreased by 8% to CHF 2,056m, largely reflecting
lower net interest income. Excluding PPA effects and other
integration items of CHF 239m, underlying total revenues were CHF
1,818m. Net credit loss expenses were CHF 71m, compared with net
expenses of CHF 147m in the third quarter of 2023. Operating
expenses increased by 1% to CHF 1,258m. Excluding
integration-related expenses and PPA effects of CHF 170m,
underlying operating expenses were CHF 1,088m. The cost/income
ratio was 61.2%, and 59.9% on an underlying basis.
Asset Management (AM) PBT USD 151m, underlying PBT USD
237m
Total revenues increased by 13% to USD 873m, mainly reflecting a
USD 72m net gain from both the closing of the remaining portion of
the sale of our Brazilian real estate fund management business and
the sale of our shareholding in Credit Suisse Insurance Linked
Strategies Ltd. Operating expenses decreased by 2% to USD 722m.
Excluding integration-related expenses of USD 86m, underlying
operating expenses were USD 636m, an increase of 4% driven by
higher personnel expenses, reflecting higher revenues, and higher
expenses for litigation, regulatory and similar matters. The
cost/income ratio was 82.7%, and 72.8% on an underlying basis.
Invested assets increased by USD 96bn sequentially to USD 1,797bn.
Net new money was USD 2.0bn, and USD (4.8bn) excluding money market
flows and associates.
Investment Bank (IB) PBT USD 405m, underlying PBT USD
377m
Total revenues increased by 22% to USD 2,645m, due to higher
Global Markets and Global Banking revenues. Excluding PPA effects
of USD 185m, underlying total revenues were USD 2,461m, an increase
of 29%. Net credit loss expenses were USD 9m, compared with net
expenses of USD 4m in the third quarter of 2023. Operating expenses
decreased by 7% to USD 2,231m, largely due to a decrease in
integration-related expenses. Excluding integration-related
expenses of USD 156m, underlying operating expenses were USD
2,076m, an increase of 2%. The cost/income ratio was 84.4% on both
a reported and an underlying basis. Return on attributed equity was
9.5%, and 8.8% on an underlying basis.
Non-core and Legacy (NCL) PBT USD (603m), underlying PBT USD
(333m)
Total revenues decreased by 29% to USD 262m, mainly due to lower
net interest income and trading revenues as a result of portfolio
reductions, and included a USD 67m gain from the sale of our
investment in an associate. Net credit loss expenses were USD 28m,
compared with net expenses of USD 59m in the third quarter of 2023.
Operating expenses decreased by 60% to USD 837m, mainly due to
decreases in integration-related expenses, professional fees,
outsourcing expenses and personnel expenses, and included releases
of USD 84m of IFRS 3 acquisition-related contingent liabilities
following settlements reached in the third quarter of 2024.
Excluding integration-related expenses of USD 270m, underlying
operating expenses were USD 567m, a decrease of 51%.
Group Items PBT USD 45m, underlying PBT USD 60m
UBS’s sustainability
highlights
We are guided by our ambition to be a global leader in
sustainability. We remain committed to supporting our clients in
the transition to a low-carbon world, leading by example in our own
operations, and sharing our lessons learned along the way.
In September, MSCI reaffirmed our AA ESG rating and we increased
our S&P Global Corporate Sustainability Assessment score. These
are our first fully consolidated ESG ratings post the acquisition
of Credit Suisse.
To build on our strong foundation, we are evolving our
sustainability strategy, based on three pillars:
− Protect: manage our business aligned to our sustainable,
long-term strategy;
− Grow: continue to expand our sustainability and impact
offering for our clients to meet their evolving needs; and
− Attract: be the bank of choice for clients and employees.
We will communicate further details on our approach in our 2024
Sustainability Report, which will be published on 17 March
2025.
Selected financial information of the
business divisions and Group Items
For the quarter ended
30.9.24
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and Legacy
Group Items
Total
Total revenues as reported
6,199
2,394
873
2,645
262
(39)
12,334
of which: PPA effects and other
integration items1
224
278
185
(25)
662
Total revenues (underlying)
5,975
2,116
873
2,461
262
(14)
11,672
Credit loss expense / (release)
2
83
0
9
28
0
121
Operating expenses as reported
5,112
1,465
722
2,231
837
(84)
10,283
of which: integration-related expenses and
PPA effects2
419
198
86
156
270
(11)
1,119
Operating expenses (underlying)
4,693
1,267
636
2,076
567
(74)
9,165
Operating profit / (loss) before tax as
reported
1,085
846
151
405
(603)
45
1,929
Operating profit / (loss) before tax
(underlying)
1,280
766
237
377
(333)
60
2,386
For the quarter ended 30.6.24
USD m
Global Wealth Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and Legacy
Group Items
Total
Total revenues as reported
6,053
2,272
768
2,803
401
(392)
11,904
of which: PPA effects and other
integration items1
233
246
310
(8)
780
Total revenues (underlying)
5,820
2,026
768
2,493
401
(384)
11,124
Credit loss expense / (release)
(1)
103
0
(6)
(1)
0
95
Operating expenses as reported
5,183
1,396
638
2,332
807
(15)
10,340
of which: integration-related expenses and
PPA effects2
523
182
98
245
325
(2)
1,372
Operating expenses (underlying)
4,660
1,213
540
2,087
481
(13)
8,969
Operating profit / (loss) before tax as
reported
871
773
130
477
(405)
(377)
1,469
Operating profit / (loss) before tax
(underlying)
1,161
710
228
412
(80)
(371)
2,060
For the quarter ended
30.9.233
USD m
Global Wealth Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and Legacy
Group Items
Total
Total revenues as reported
5,953
2,517
775
2,162
366
(78)
11,695
of which: PPA effects and other
integration items1
388
333
251
(14)
958
Total revenues (underlying)
5,565
2,184
775
1,911
366
(64)
10,737
Credit loss expense / (release)
10
160
0
4
59
5
239
Operating expenses as reported
5,017
1,400
738
2,412
2,068
6
11,640
of which: integration-related expenses and
PPA effects2
448
174
126
368
920
(5)
2,031
of which: acquisition-related costs
26
26
Operating expenses (underlying)
4,569
1,226
612
2,043
1,149
(15)
9,583
Operating profit / (loss) before tax as
reported
926
957
37
(254)
(1,762)
(89)
(184)
Operating profit / (loss) before tax
(underlying)
986
798
163
(136)
(842)
(55)
914
1 Includes accretion of PPA adjustments on
financial instruments and other PPA effects, as well as temporary
and incremental items directly related to the integration. 2
Includes temporary, incremental operating expenses directly related
to the integration, as well as amortization of newly recognized
intangibles resulting from the acquisition of the Credit Suisse
Group. 3 Comparative-period information has been restated for
changes in business division perimeters, Group Treasury allocations
and Non-core and Legacy cost allocations. Refer to “Note 3 Segment
reporting” in the “Consolidated financial statements” section of
the UBS Group third quarter 2024 report, available under “Quarterly
reporting” at ubs.com/investors, for more information.
Selected financial information of the
business divisions and Group Items (continued)
Year-to-date 30.9.24
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and Legacy
Group Items
Total
Total revenues as reported
18,395
7,089
2,416
8,199
1,664
(786)
36,976
of which: PPA effects and other
integration items1
691
780
787
(37)
2,221
Total revenues (underlying)
17,705
6,308
2,416
7,412
1,664
(749)
34,755
Credit loss expense / (release)
(2)
229
0
34
63
(2)
322
Operating expenses as reported
15,340
4,265
2,025
6,728
2,655
(132)
30,880
of which: integration-related expenses and
PPA effects2
1,347
540
255
543
837
(12)
3,511
Operating expenses (underlying)
13,993
3,725
1,770
6,185
1,817
(120)
27,370
Operating profit / (loss) before tax as
reported
3,057
2,594
392
1,437
(1,054)
(652)
5,773
Operating profit / (loss) before tax
(underlying)
3,713
2,354
647
1,193
(216)
(627)
7,063
Year-to-date 30.9.233,4
USD m
Global Wealth Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and Legacy
Group Items
Negative goodwill
Total
Total revenues as reported
16,002
5,604
1,861
6,562
551
(602)
29,979
of which: PPA effects and other
integration items1
574
477
306
(20)
1,336
Total revenues (underlying)
15,428
5,128
1,861
6,257
551
(582)
28,643
Negative goodwill
27,264
27,264
Credit loss expense / (release)
174
398
1
142
178
7
901
Operating expenses as reported
12,663
2,996
1,649
6,302
3,304
422
27,336
of which: integration-related expenses and
PPA effects2
516
211
140
529
1,024
342
2,763
of which: acquisition-related costs
202
202
Operating expenses (underlying)
12,147
2,785
1,509
5,773
2,279
(122)
24,371
Operating profit / (loss) before tax as
reported
3,165
2,210
211
118
(2,930)
(1,031)
27,264
29,006
Operating profit / (loss) before tax
(underlying)
3,107
1,945
351
341
(1,906)
(467)
3,371
1 Includes accretion of PPA adjustments on
financial instruments and other PPA effects, as well as temporary
and incremental items directly related to the integration. 2
Includes temporary, incremental operating expenses directly related
to the integration, as well as amortization of newly recognized
intangibles resulting from the acquisition of the Credit Suisse
Group. 3 Comparative-period information has been restated for
changes in business division perimeters, Group Treasury allocations
and Non-core and Legacy cost allocations. Refer to “Note 3 Segment
reporting” in the “Consolidated financial statements” section of
the UBS Group third quarter 2024 report, available under “Quarterly
reporting” at ubs.com/investors, for more information. 4
Comparative-period information has been revised. Refer to “Note 2
Accounting for the acquisition of the Credit Suisse Group” in the
“Consolidated financial statements” section of the UBS Group third
quarter 2024 report, available under “Quarterly reporting” at
ubs.com/investors, for more information.
Our key figures
As of or for the quarter
ended
As of or year-to-date
USD m, except where indicated
30.9.24
30.6.24
31.12.231
30.9.231
30.9.24
30.9.231
Group results
Total revenues
12,334
11,904
10,855
11,695
36,976
29,979
Negative goodwill
27,264
Credit loss expense / (release)
121
95
136
239
322
901
Operating expenses
10,283
10,340
11,470
11,640
30,880
27,336
Operating profit / (loss) before tax
1,929
1,469
(751)
(184)
5,773
29,006
Net profit / (loss) attributable to
shareholders
1,425
1,136
(279)
(715)
4,315
27,645
Diluted earnings per share (USD)2
0.43
0.34
(0.09)
(0.22)
1.29
8.46
Profitability and growth3,4
Return on equity (%)
6.7
5.4
(1.3)
(3.4)
6.8
52.1
Return on tangible equity (%)
7.3
5.9
(1.4)
(3.7)
7.4
57.7
Underlying return on tangible equity
(%)5
9.0
8.4
4.8
1.5
9.1
3.8
Return on common equity tier 1 capital
(%)
7.6
5.9
(1.4)
(3.7)
7.5
60.0
Underlying return on common equity tier 1
capital (%)5
9.4
8.4
4.8
1.5
9.2
4.0
Return on leverage ratio denominator,
gross (%)
3.1
3.0
2.6
2.8
3.1
3.0
Cost / income ratio (%)6
83.4
86.9
105.7
99.5
83.5
91.2
Underlying cost / income ratio (%)5,6
78.5
80.6
93.0
89.3
78.8
85.1
Effective tax rate (%)
26.0
20.0
n.m.7
n.m.7
24.4
4.6
Net profit growth (%)
n.m.
(95.8)
n.m.
n.m.
(84.4)
362.5
Resources3
Total assets
1,623,941
1,560,976
1,716,924
1,643,684
1,623,941
1,643,684
Equity attributable to shareholders
87,025
83,683
85,624
83,265
87,025
83,265
Common equity tier 1 capital8
74,213
76,104
78,002
76,926
74,213
76,926
Risk-weighted assets8
519,363
511,376
546,505
546,491
519,363
546,491
Common equity tier 1 capital ratio
(%)8
14.3
14.9
14.3
14.1
14.3
14.1
Going concern capital ratio (%)8
17.5
18.0
16.8
16.4
17.5
16.4
Total loss-absorbing capacity ratio
(%)8
37.5
38.7
36.4
35.4
37.5
35.4
Leverage ratio denominator8
1,608,341
1,564,201
1,695,403
1,615,817
1,608,341
1,615,817
Common equity tier 1 leverage ratio
(%)8
4.6
4.9
4.6
4.8
4.6
4.8
Liquidity coverage ratio (%)9
199.2
212.0
215.7
196.5
199.2
196.5
Net stable funding ratio (%)
126.9
128.0
124.7
120.7
126.9
120.7
Other
Invested assets (USD bn)4,10
6,199
5,873
5,714
5,373
6,199
5,373
Personnel (full-time equivalents)
109,396
109,991
112,842
115,981
109,396
115,981
Market capitalization2,11
106,528
101,903
107,355
85,768
106,528
85,768
Total book value per share (USD)2
27.32
26.13
26.68
25.75
27.32
25.75
Tangible book value per share (USD)2
25.10
23.85
24.34
23.44
25.10
23.44
1 Comparative-period information has been
revised. Refer to “Note 2 Accounting for the acquisition of the
Credit Suisse Group” in the “Consolidated financial statements”
section of the UBS Group third quarter 2024 report, available under
“Quarterly reporting” at ubs.com/investors, for more information. 2
Refer to the “Share information and earnings per share” section of
the UBS Group third quarter 2024 report, available under “Quarterly
reporting” at ubs.com/investors, for more information. 3 Refer to
the “Targets, capital guidance and ambitions” section of the UBS
Group Annual Report 2023, available under “Annual reporting” at
ubs.com/investors, for more information about our performance
targets. 4 Refer to “Alternative performance measures” in the
appendix to the UBS Group third quarter 2024 report, available
under “Quarterly reporting” at ubs.com/investors, for the
definition and calculation method. 5 Refer to the “Group
performance” section of the UBS Group third quarter 2024 report,
available under “Quarterly reporting” at ubs.com/investors, for
more information about underlying results. 6 Negative goodwill is
not used in the calculation as it is presented in a separate
reporting line and is not part of total revenues. 7 The effective
tax rate for the fourth and third quarters of 2023 is not a
meaningful measure, due to the distortive effect of current
unbenefited tax losses at the former Credit Suisse entities. 8
Based on the Swiss systemically relevant bank framework as of 1
January 2020. Refer to the “Capital management” section of the UBS
Group third quarter 2024 report, available under “Quarterly
reporting” at ubs.com/investors, for more information. 9 The
disclosed ratios represent quarterly averages for the quarters
presented and are calculated based on an average of 65 data points
in the third quarter of 2024, 61 data points in the second quarter
of 2024, 63 data points in the fourth quarter of 2023 and 63 data
points in the third quarter of 2023. Refer to the “Liquidity and
funding management” section of the UBS Group third quarter 2024
report, available under “Quarterly reporting” at ubs.com/investors,
for more information. 10 Consists of invested assets for Global
Wealth Management, Asset Management (including invested assets from
associates) and Personal & Corporate Banking. Refer to “Note 32
Invested assets and net new money” in the “Consolidated financial
statements” section of the UBS Group Annual Report 2023, available
under “Annual reporting” at ubs.com/investors, for more
information. 11 The calculation of market capitalization reflects
total shares issued multiplied by the share price at the end of the
period.
Income statement
For the quarter ended
% change from
Year-to-date
USD m
30.9.24
30.6.24
30.9.231
2Q24
3Q23
30.9.24
30.9.231
Net interest income
1,794
1,535
2,107
17
(15)
5,270
5,202
Other net income from financial
instruments measured at fair value through profit or loss
3,681
3,684
3,226
0
14
11,547
8,425
Net fee and commission income
6,517
6,531
6,056
0
8
19,540
15,790
Other income
341
154
305
122
12
619
563
Total revenues
12,334
11,904
11,695
4
5
36,976
29,979
Negative goodwill
27,264
Credit loss expense / (release)
121
95
239
28
(49)
322
901
Personnel expenses
6,889
7,119
7,567
(3)
(9)
20,957
17,838
General and administrative expenses
2,389
2,318
3,124
3
(24)
7,120
7,157
Depreciation, amortization and impairment
of non-financial assets
1,006
903
950
11
6
2,804
2,341
Operating expenses
10,283
10,340
11,640
(1)
(12)
30,880
27,336
Operating profit / (loss) before
tax
1,929
1,469
(184)
31
5,773
29,006
Tax expense / (benefit)
502
293
526
71
(5)
1,407
1,346
Net profit / (loss)
1,428
1,175
(711)
21
4,366
27,660
Net profit / (loss) attributable to
non-controlling interests
3
40
4
(92)
(22)
51
15
Net profit / (loss) attributable to
shareholders
1,425
1,136
(715)
25
4,315
27,645
Comprehensive income
Total comprehensive income
3,910
1,614
(2,622)
142
5,279
25,679
Total comprehensive income attributable to
non-controlling interests
27
18
(8)
47
40
4
Total comprehensive income attributable
to shareholders
3,883
1,596
(2,614)
143
5,239
25,675
1 Comparative-period information has been
revised. Refer to “Note 2 Accounting for the acquisition of the
Credit Suisse Group” in the “Consolidated financial statements”
section of the UBS Group third quarter 2024 report, available under
“Quarterly reporting” at ubs.com/investors, for more
information.
Information about results materials and
the earnings call
UBS’s third quarter 2024 report, news release and slide
presentation are available from 06:45 CET on Wednesday, 30 October
2024, at ubs.com/quarterlyreporting.
UBS will hold a presentation of its third quarter 2024 results
on Wednesday, 30 October 2024. The results will be presented by
Sergio P. Ermotti (Group Chief Executive Officer), Todd Tuckner
(Group Chief Financial Officer) and Sarah Mackey (Head of Investor
Relations).
Time
09:00 CET 08:00 GMT 04:00 US EDT
Audio webcast
The presentation for analysts can be followed live on
ubs.com/quarterlyreporting with a simultaneous slide show.
Webcast playback
An audio playback of the results presentation will be made
available at ubs.com/investors later in the day.
Cautionary statement regarding forward-looking
statements
This news release contains statements that constitute
“forward-looking statements”, including but not limited to
management’s outlook for UBS’s financial performance, statements
relating to the anticipated effect of transactions and strategic
initiatives on UBS’s business and future development and goals or
intentions to achieve climate, sustainability and other social
objectives. While these forward-looking statements represent UBS’s
judgments, expectations and objectives concerning the matters
described, a number of risks, uncertainties and other important
factors could cause actual developments and results to differ
materially from UBS’s expectations. In particular, the global
economy may be negatively affected by shifting political
circumstances, including as a result of elections, increased
tension between world powers, growing conflicts in the Middle East,
as well as the continuing Russia–Ukraine war. In addition, the
ongoing conflicts may continue to cause significant population
displacement, and lead to shortages of vital commodities, including
energy shortages and food insecurity outside the areas immediately
involved in armed conflict. Governmental responses to the armed
conflicts, including, with respect to the Russia–Ukraine war,
coordinated successive sets of sanctions on Russia and Belarus, and
Russian and Belarusian entities and nationals, and the uncertainty
as to whether the ongoing conflicts will further widen and
intensify, may continue to have significant adverse effects on the
market and macroeconomic conditions, including in ways that cannot
be anticipated. UBS’s acquisition of the Credit Suisse Group has
materially changed its outlook and strategic direction and
introduced new operational challenges. The integration of the
Credit Suisse entities into the UBS structure is expected to take
between three and five years and presents significant risks,
including the risks that UBS Group AG may be unable to achieve the
cost reductions and other benefits contemplated by the transaction.
This creates significantly greater uncertainty about
forward-looking statements. Other factors that may affect UBS’s
performance and ability to achieve its plans, outlook and other
objectives also include, but are not limited to: (i) the degree to
which UBS is successful in the execution of its strategic plans,
including its cost reduction and efficiency initiatives and its
ability to manage its levels of risk-weighted assets (RWA) and
leverage ratio denominator (LRD), liquidity coverage ratio and
other financial resources, including changes in RWA assets and
liabilities arising from higher market volatility and the size of
the combined Group; (ii) the degree to which UBS is successful in
implementing changes to its businesses to meet changing market,
regulatory and other conditions, including as a result of the
acquisition of the Credit Suisse Group; (iii) increased inflation
and interest rate volatility in major markets; (iv) developments in
the macroeconomic climate and in the markets in which UBS operates
or to which it is exposed, including movements in securities prices
or liquidity, credit spreads, currency exchange rates,
deterioration or slow recovery in residential and commercial real
estate markets, the effects of economic conditions, including
elevated inflationary pressures, market developments, increasing
geopolitical tensions, and changes to national trade policies on
the financial position or creditworthiness of UBS’s clients and
counterparties, as well as on client sentiment and levels of
activity; (v) changes in the availability of capital and funding,
including any adverse changes in UBS’s credit spreads and credit
ratings of UBS, Credit Suisse, sovereign issuers, structured credit
products or credit-related exposures, as well as availability and
cost of funding to meet requirements for debt eligible for total
loss-absorbing capacity (TLAC), in particular in light of the
acquisition of the Credit Suisse Group; (vi) changes in central
bank policies or the implementation of financial legislation and
regulation in Switzerland, the US, the UK, the EU and other
financial centers that have imposed, or resulted in, or may do so
in the future, more stringent or entity-specific capital, TLAC,
leverage ratio, net stable funding ratio, liquidity and funding
requirements, heightened operational resilience requirements,
incremental tax requirements, additional levies, limitations on
permitted activities, constraints on remuneration, constraints on
transfers of capital and liquidity and sharing of operational costs
across the Group or other measures, and the effect these will or
would have on UBS’s business activities; (vii) UBS’s ability to
successfully implement resolvability and related regulatory
requirements and the potential need to make further changes to the
legal structure or booking model of UBS in response to legal and
regulatory requirements and any additional requirements due to its
acquisition of the Credit Suisse Group, or other developments;
(viii) UBS’s ability to maintain and improve its systems and
controls for complying with sanctions in a timely manner and for
the detection and prevention of money laundering to meet evolving
regulatory requirements and expectations, in particular in current
geopolitical turmoil; (ix) the uncertainty arising from domestic
stresses in certain major economies; (x) changes in UBS’s
competitive position, including whether differences in regulatory
capital and other requirements among the major financial centers
adversely affect UBS’s ability to compete in certain lines of
business; (xi) changes in the standards of conduct applicable to
its businesses that may result from new regulations or new
enforcement of existing standards, including measures to impose new
and enhanced duties when interacting with customers and in the
execution and handling of customer transactions; (xii) the
liability to which UBS may be exposed, or possible constraints or
sanctions that regulatory authorities might impose on UBS, due to
litigation, contractual claims and regulatory investigations,
including the potential for disqualification from certain
businesses, potentially large fines or monetary penalties, or the
loss of licenses or privileges as a result of regulatory or other
governmental sanctions, as well as the effect that litigation,
regulatory and similar matters have on the operational risk
component of its RWA, including as a result of its acquisition of
the Credit Suisse Group, as well as the amount of capital available
for return to shareholders; (xiii) the effects on UBS’s business,
in particular cross-border banking, of sanctions, tax or regulatory
developments and of possible changes in UBS’s policies and
practices; (xiv) UBS’s ability to retain and attract the employees
necessary to generate revenues and to manage, support and control
its businesses, which may be affected by competitive factors; (xv)
changes in accounting or tax standards or policies, and
determinations or interpretations affecting the recognition of gain
or loss, the valuation of goodwill, the recognition of deferred tax
assets and other matters; (xvi) UBS’s ability to implement new
technologies and business methods, including digital services and
technologies, and ability to successfully compete with both
existing and new financial service providers, some of which may not
be regulated to the same extent; (xvii) limitations on the
effectiveness of UBS’s internal processes for risk management, risk
control, measurement and modeling, and of financial models
generally; (xviii) the occurrence of operational failures, such as
fraud, misconduct, unauthorized trading, financial crime,
cyberattacks, data leakage and systems failures, the risk of which
is increased with cyberattack threats from both nation states and
non-nation-state actors targeting financial institutions; (xix)
restrictions on the ability of UBS Group AG and UBS AG to make
payments or distributions, including due to restrictions on the
ability of its subsidiaries to make loans or distributions,
directly or indirectly, or, in the case of financial difficulties,
due to the exercise by FINMA or the regulators of UBS’s operations
in other countries of their broad statutory powers in relation to
protective measures, restructuring and liquidation proceedings;
(xx) the degree to which changes in regulation, capital or legal
structure, financial results or other factors may affect UBS’s
ability to maintain its stated capital return objective; (xxi)
uncertainty over the scope of actions that may be required by UBS,
governments and others for UBS to achieve goals relating to
climate, environmental and social matters, as well as the evolving
nature of underlying science and industry and the possibility of
conflict between different governmental standards and regulatory
regimes; (xxii) the ability of UBS to access capital markets;
(xxiii) the ability of UBS to successfully recover from a disaster
or other business continuity problem due to a hurricane, flood,
earthquake, terrorist attack, war, conflict (e.g. the
Russia–Ukraine war), pandemic, security breach, cyberattack, power
loss, telecommunications failure or other natural or man-made
event, including the ability to function remotely during long-term
disruptions such as the COVID-19 (coronavirus) pandemic; (xxiv) the
level of success in the absorption of Credit Suisse, in the
integration of the two groups and their businesses, and in the
execution of the planned strategy regarding cost reduction and
divestment of any non-core assets, the existing assets and
liabilities of Credit Suisse, the level of resulting impairments
and write-downs, the effect of the consummation of the integration
on the operational results, share price and credit rating of UBS –
delays, difficulties, or failure in closing the transaction may
cause market disruption and challenges for UBS to maintain
business, contractual and operational relationships; and (xxv) the
effect that these or other factors or unanticipated events,
including media reports and speculations, may have on its
reputation and the additional consequences that this may have on
its business and performance. The sequence in which the factors
above are presented is not indicative of their likelihood of
occurrence or the potential magnitude of their consequences. UBS’s
business and financial performance could be affected by other
factors identified in its past and future filings and reports,
including those filed with the US Securities and Exchange
Commission (the SEC). More detailed information about those factors
is set forth in documents furnished by UBS and filings made by UBS
with the SEC, including the UBS Group AG and UBS AG Annual Reports
on Form 20- F for the year ended 31 December 2023. UBS is not under
any obligation to (and expressly disclaims any obligation to)
update or alter its forward-looking statements, whether as a result
of new information, future events, or otherwise.
Rounding
Numbers presented throughout this news release may not add up
precisely to the totals provided in the tables and text.
Percentages and percent changes disclosed in text and tables are
calculated on the basis of unrounded figures. Absolute changes
between reporting periods disclosed in the text, which can be
derived from numbers presented in related tables, are calculated on
a rounded basis.
Tables
Within tables, blank fields generally indicate non-applicability
or that presentation of any content would not be meaningful, or
that information is not available as of the relevant date or for
the relevant period. Zero values generally indicate that the
respective figure is zero on an actual or rounded basis. Values
that are zero on a rounded basis can be either negative or positive
on an actual basis.
Websites
In this news release, any website addresses are provided solely
for information and are not intended to be active links. UBS is not
incorporating the contents of any such websites into this news
release.
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UBS Group AG
Investor contact Switzerland: +41-44-234 41 00 Americas:
+1-212-882 57 34
Media contact Switzerland: +41-44-234 85 00 UK: +44-207-567 47
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