UBS annual financial report for 2024

UBS Posts $1.8B Q1 Profit, Boosted by Cost Cuts and 'Non-Core' Business

May 7, 2024, 06:15 AM

UBS Group AG reported a significant first-quarter net profit of $1.8 billion, surpassing analysts' expectations of $602 million. This marks the bank's first profit since its acquisition of Credit Suisse, following two consecutive loss-making quarters. The profit was attributed to shareholders and was driven by cost-cutting measures, including $1 billion in gross cost savings achieved in the quarter, contributing to a total of approximately $5 billion in savings. UBS also reported a pre-tax profit of $2.38 billion against a consensus of $1.04 billion, and an underlying pre-tax profit of $2.6 billion. The bank's wealth management and investment banking divisions were key contributors to this performance, with additional boost from 'non-core' parts of the business. Additionally, UBS confirmed its commitment to continuing share buybacks over the next three years, despite potential increases in capital requirements proposed by the Swiss government.