$UBSG (+1.8%) Q3'24 Earnings Highlights

🔹 Pre-tax Profit (PBT): $1.93B (Est. $1.47B) 🟢

🔹 Net Income: $1.43B (Est. $783.3M) 🟢

🔹 Total Revenue: $12.33B (Est. $11.46B) 🟢; UP +5% YoY

Segment Performance:

Global Wealth Management:

🔹 PBT: $1.09B; Underlying PBT: $1.28B

🔹 Net New Assets: $25B

🔹 Transaction-based income UP +19% YoY, driven by Americas and APAC performance

Investment Bank:

🔹 PBT: $405M (Est. $174M) 🟢

🔹 Revenues UP +22% YoY to $2.65B

🔹 Global Markets Revenue UP +31% YoY; Higher client activity across regions

🔹 Strong performance in M&A, especially in the U.S. and Asia

Embedded Credit Suisse Legacy:

🔹 Pre-tax loss: $603M; Better than expected, with progress in reducing non-core legacy risks

🔹 Non-core Risk-weighted Assets (RWA) reduced by $5B this quarter

Asset Management:

🔹 PBT: $151M; Underlying PBT: $237M

🔹 Revenues UP +13% YoY, including gains from strategic sales

Operational Metrics:

🔹 CET1 Capital Ratio: 14.3% (vs. 14.9% expected)

🔹 Phased out regulatory benefit from Credit Suisse acquisition, impacting CET1 ratio

🔹 Underlying Operating Expenses: $9.17B; DOWN -4% YoY

🔹 Cost/Income Ratio: 83.4%; Underlying 78.5%

Strategic & Business Highlights:

🔸 UBS achieved $7.5B cumulative cost savings for FY24 ahead of schedule, raised cost-savings target to $13B by FY26.

🔸 Successful migration of Credit Suisse client accounts in Luxembourg and Hong Kong, with Singapore and Japan transfers planned by year-end and Swiss migration by 2025.

🔸 UBS reports $6.2T in invested assets, UP +15% YoY.

🔸 Announced $1B share buybacks planned for Q4'24.

Outlook:

🔸 UBS anticipates lower interest income in Q4'24, driven by central bank rate cuts.

🔸 Expects integration-related expenses of $1.2B in Q4.

🔸 Aims to maintain a CET1 capital ratio of ~14% post-Basel III implementation in 2025.

🔸 Ongoing market uncertainties due to geopolitical risks and U.S. elections may influence investor sentiment.