UBS Group Q1 Earnings & Revenues Dip Y/Y, Credit Loss Expenses Slip

UBS Group AG UBS reported a first-quarter 2025 net profit attributable to shareholders of $1.69 billion compared with $1.76 billion in the prior-year quarter.

Results were driven by the strong performances of the Global Wealth Management, Asset Management and Investment Bank divisions. A decline in credit loss expenses was a headwind. However, the increase in operating expenses was a headwind.

UBS' Revenues & Expenses

The company’s first-quarter total revenues declined 1.4% year over year to $12.6 billion.

Operating expenses rose marginally year over year to $10.3 billion.

UBS Group reported total credit loss expenses of $100 million, which declined 5.6% from the year-ago quarter.

UBS Group Business Divisions’ Performance

Global Wealth Management’s operating profit before tax was $1.4 billion, up from $1.1 billion in the year-ago quarter.
Asset Management’s operating profit before tax was $135 million, up 21.6% from the year-ago quarter.

Personal & Corporate Banking reported operating profit before tax of $607 million, down 37.7% year over year.

The Investment Bank unit reported an operating profit before tax of $722 million, up 30.1% from the year-ago quarter.

Non-Core & Legacy incurred an operating loss before tax of $391 million in the reported quarter compared with a loss of $46 million in the year-ago quarter.

Group Items reported an operating loss before tax of $299 million compared with a loss of $320 million in the year-ago quarter.

UBS' Capital Position

Total assets fell 1.4% from the previous quarter’s end to $1.54 trillion.

UBS’ return on Common Equity Tier 1 (CET1) capital was 9.6% as of March 31, 2025, compared with 9% as of March 31, 2024.

The risk-weighted assets declined 8.2% year over year to $483.3 billion.

The CET1 capital declined 10.9% year over year to $69.1 billion. As of March 31, 2025, UBS' invested assets were $6.2 trillion, up 5.2% year over year.

UBS Group’s Capital Distribution Update

On April 10, 2025, shareholders approved a dividend of 90 cents per share at the annual general meeting. The dividend was paid out on April 17, 2025, to shareholders of record on April 16, 2025.

In the first quarter of 2025, UBS completed its planned $0.5-billion worth of share repurchases. The company plans to repurchase an additional $0.5 billion of shares in the second quarter of 2025 and aims to repurchase up to an additional $2 billion of shares in the second half of 2025.

UBS Progresses With Credit Suisse Integration Plan

The company is on track to substantially complete the integration of Credit Suisse by the end of 2026. 

In the first quarter of 2025, UBS completed the consolidation of its branch network in Switzerland and has merged 95 branches with existing branches since the merger of UBS Switzerland AG and Credit Suisse (Schweiz) AG in July 2024. The company has commenced its Swiss business migrations and is preparing for the first main wave, which is planned for the second quarter of 2025, and aims to complete the Swiss booking center migrations by the end of the first quarter of 2026. 

In the first quarter of 2025, UBS realized an additional $0.9 billion in gross cost savings. Cumulative gross cost savings at the end of the first quarter of 2025 amounted to $8.4 billion compared with the 2022 combined cost base of UBS and Credit Suisse. This represents around 65% of its ambition to deliver $13 billion in annualized exit rate gross cost savings by the end of 2026.

Our Take on UBS Group

UBS’s inorganic growth efforts will support its top line. The company continues to progress with the integration of Credit Suisse. UBS significantly reduced execution risks while its capital position remained robust.

UBS Group AG Price, Consensus and EPS Surprise

UBS Group AG price-consensus-eps-surprise-chart | UBS Group AG Quote

Currently, UBS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Foreign Banks

ICICI Bank Ltd.’s IBN net income for the fourth quarter of fiscal 2025 (ended March 31) was INR126.3 billion ($1.5 billion), up 18% from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

IBN’s results were driven by a rise in NII, non-interest income, and growth in loans and deposits. However, higher operating expenses and provisions were headwinds.

HSBC Holdings HSBC reported a first-quarter 2025 pre-tax profit of $9.48 billion, which declined 25% from the prior-year quarter.

HSBC’s results were affected by a fall in revenues, higher expected credit losses and other credit impairment charges, partially offset by a fall in expenses.

Only $1 to See All Zacks' Buys and Sells

We're not kidding.

Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.

Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research