UBS Group (UBSG) Q4 2024 earnings summary

Executive summary

• Achieved strong full-year net profit of $5.1 billion for 2024, with underlying return on CET1 capital of 8.7%, driven by robust franchise performance, successful Credit Suisse integration, and major legal entity mergers and client account migrations.

• Group invested assets reached $6.1 trillion, up 7% year-over-year, with significant net new asset inflows in Global Wealth Management and Asset Management.

• Integration of Credit Suisse is ahead of schedule, with over 90% of client accounts outside Switzerland migrated, 52% reduction in Non-core and Legacy RWA since 2Q23, and nearly 60% of targeted $13 billion gross cost savings already captured.

• Maintained a CET1 capital ratio of 14.3% at year-end, with a proposed dividend of $0.90 (up 29% YoY), $1 billion in share buybacks executed, and plans for up to $3 billion in repurchases in 2025, subject to capital regime stability.

• Continued investment in technology, including cloud infrastructure and AI, to drive efficiency, innovation, and client service.

Financial highlights

• FY24 total revenues were $48.6 billion (+19% YoY), with Q4 revenues at $11.6 billion (+7% YoY); Q4 profit before tax tripled YoY to $1.8 billion, and net profit for Q4 was $0.8 billion at a 26% tax rate.

• Operating expenses declined 6% YoY to $9.1 billion in Q4, with staff count down 17% from 2022 baseline; FY24 cost/income ratio improved to 79.5%.

• Group invested assets $6.1 trillion (+7% YoY); GWM net new assets $97 billion, AM net new money $45 billion for 2024.

• Investment Bank delivered pre-tax profit of $452 million in Q4, with revenues up 37% YoY and record markets revenue.

• Asset Management saw net new money of $45 billion for 2024, with operating expenses down 15% YoY.

Outlook and guidance

• Underlying return on CET1 capital expected to rise to ~10% in 2025 and reach 15% by end-2026, driven by integration benefits and cost reductions.

• GWM net new asset ambition maintained at ~$100 billion for 2025, accelerating to $200 billion per annum by 2026.

• P&C NII expected to decline ~10% sequentially in Q1 2025 and more pronounced YoY, with trough in Q2 and plateau thereafter.

• Asset Management targets positive net new money growth and cost-to-income ratio above 30% by end-2026.

• Investment Bank aims to double banking revenues in 2026 vs. 2022 baseline and maintain pre-tax ROE ambition of 15%.