Q2 2024 UBS Group AG Earnings Call Transcript
Key Points
- UBS Group AG (UBS) reported a strong first-half performance with a net profit of $2.9 billion and an underlying PBT of $4.7 billion.
- The company maintained a robust capital position with a CET1 capital ratio of 14.9% and total loss-absorbing capacity of around $200 billion.
- UBS Group AG (UBS) successfully captured nearly half of its targeted gross cost savings and made significant progress in addressing Credit Suisse's legacy legal issues.
- The investment bank saw the highest second quarter on record, with substantial market share gains in global banking.
- UBS Group AG (UBS) achieved $27 billion in net new assets in global wealth management, demonstrating strong client trust and engagement.
- The integration of Credit Suisse remains a complex and ongoing challenge, with a significant amount of work still required to restore profitability to pre-acquisition levels.
- Higher interest rates, increased regulatory and liquidity requirements, and a changing macroeconomic outlook are impacting the pricing of new credit.
- The company faces heightened market volatility due to ongoing geopolitical tensions and anticipation ahead of US elections.
- UBS Group AG (UBS) experienced a decline in net interest income and transactional activity in global wealth management.
- The non-core and legacy business reported a pretax loss of $80 million, with expectations of an underlying pretax loss of around $1 billion in the second half of the year.
Good morning and welcome, everyone. Before we start, I would like to draw your attention to our cautionary statement slide at the back of today's results presentation. Please also refer to the risk factors included in our annual report, together with additional disclosures in our SEC filing. On slide 2, you can see our agenda for today. It's now my pleasure to hand over to Sergio Ermotti, Group CEO.
Thank you, Sarah, and good morning, everyone. It has been a little over a year since the closing of the acquisition. We made significant progress and UBS continues to deliver on all of its commitments to stakeholders.
Putting the needs of clients first during a challenging market environment has allowed us to maintain solid momentum while we fulfill our objective of completing the integration by the end of 2026. As a consequence, not only we have dramatically reduced the execution risk of the integration, we
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