Stock Market News

UBS beats on costs, misses on wealth

2024.08.14 02:58

UBS beats on costs, misses on wealth

Investing.com — UBS Group AG’s (SIX:) second quarter of 2024 showcased a mixed performance. While the Investment Banking division delivered record results, fueled by strong equity and fixed income trading, other segments presented challenges.

The non-core unit exceeded expectations with significant reductions in risk-weighted assets and expenses, demonstrating progress in the bank’s restructuring efforts.

However, the global wealth management division faced headwinds from higher advisor compensation costs, resulting in lower profits. Additionally, the Swiss banking unit’s net interest income fell short of expectations due to slower deposit rate adjustments.

Despite these challenges, UBS’s overall cost-cutting initiatives and asset management performance were well-received by analysts at Jefferies and RBC Capital Markets, who expressed optimism about the bank’s trajectory for the remainder of the year. The bank’s CET1 ratio remained strong, but Tangible Net Asset Value per share came in slightly below estimates.

“UBS is delivering faster on the factors it can control – cost savings and NCL run down – which should provide some buffer against regulatory headwinds and a potentially more challenging operating environment,” said analysts at RBC.

Looking ahead, UBS maintains a cautious outlook, citing potential headwinds from net interest income and ongoing restructuring costs. 

While the bank has increased its cost-saving target for the year, it also faces risks associated with the integration of Credit Suisse and potential economic uncertainties.

Ultimately, UBS’s valuation is a complex interplay of its strong Investment Banking performance, the ongoing challenges in other divisions, and the successful execution of its strategic initiatives.

 



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 98,290.33 0.57%
ethereum
Ethereum (ETH) $ 3,452.98 1.38%
tether
Tether (USDT) $ 0.999283 0.08%
xrp
XRP (XRP) $ 2.27 2.04%
bnb
BNB (BNB) $ 700.07 0.73%
solana
Solana (SOL) $ 197.61 0.55%
dogecoin
Dogecoin (DOGE) $ 0.328444 1.81%
usd-coin
USDC (USDC) $ 1.00 0.09%
staked-ether
Lido Staked Ether (STETH) $ 3,447.79 1.05%
cardano
Cardano (ADA) $ 0.908046 3.27%
tron
TRON (TRX) $ 0.255809 0.89%
avalanche-2
Avalanche (AVAX) $ 40.29 2.17%
chainlink
Chainlink (LINK) $ 24.44 0.32%
the-open-network
Toncoin (TON) $ 5.95 2.91%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,105.57 0.97%
shiba-inu
Shiba Inu (SHIB) $ 0.000023 2.10%
sui
Sui (SUI) $ 4.53 1.08%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,090.28 0.50%
hedera-hashgraph
Hedera (HBAR) $ 0.313191 3.06%
stellar
Stellar (XLM) $ 0.380843 5.91%
polkadot
Polkadot (DOT) $ 7.44 1.32%
weth
WETH (WETH) $ 3,452.34 1.44%
hyperliquid
Hyperliquid (HYPE) $ 27.80 6.59%
bitcoin-cash
Bitcoin Cash (BCH) $ 457.48 3.67%
leo-token
LEO Token (LEO) $ 9.55 0.63%
uniswap
Uniswap (UNI) $ 13.78 5.09%
litecoin
Litecoin (LTC) $ 107.62 1.66%
bitget-token
Bitget Token (BGB) $ 5.66 16.44%
pepe
Pepe (PEPE) $ 0.000018 4.78%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,647.57 0.90%
near
NEAR Protocol (NEAR) $ 5.42 2.92%
ethena-usde
Ethena USDe (USDE) $ 0.999267 0.05%
aave
Aave (AAVE) $ 369.00 2.00%
usds
USDS (USDS) $ 1.00 0.13%
internet-computer
Internet Computer (ICP) $ 11.17 0.28%
aptos
Aptos (APT) $ 9.55 2.09%
crypto-com-chain
Cronos (CRO) $ 0.157803 4.90%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.510205 3.59%
vechain
VeChain (VET) $ 0.051454 3.76%
mantle
Mantle (MNT) $ 1.23 0.80%
ethereum-classic
Ethereum Classic (ETC) $ 27.11 3.88%
render-token
Render (RENDER) $ 7.50 4.98%
bittensor
Bittensor (TAO) $ 506.18 1.38%
whitebit
WhiteBIT Coin (WBT) $ 24.94 0.51%
monero
Monero (XMR) $ 193.46 1.09%
mantra-dao
MANTRA (OM) $ 3.74 1.40%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.34 4.90%
dai
Dai (DAI) $ 1.00 0.11%
arbitrum
Arbitrum (ARB) $ 0.793652 3.55%
filecoin
Filecoin (FIL) $ 5.26 4.76%