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• Net Profit: $1.7 billion for the first quarter.

• Return on CET1 Capital: 11.3%.

• Net New Inflows: $32 billion in Global Wealth Management and $7 billion in Asset Management.

• Group Profit Before Tax: $2.6 billion, down 1% year-on-year.

• Group Revenues: $12 billion, broadly flat year-on-year.

• Operating Expenses: $9.2 billion.

• Earnings Per Share (EPS): $0.51.

• Cost/Income Ratio: 77.4%.

• CET1 Capital Ratio: 14.3%.

• Risk-Weighted Assets: Reduced by $15 billion sequentially.

• Global Wealth Management Pretax Profit: $1.5 billion, up 21% year-over-year.

• Investment Bank Pretax Profit: $696 million, up 72% year-over-year.

• Asset Management Pretax Profit: $208 million, up 15% year-on-year.

• Personal and Corporate Banking Pretax Profit: CHF 597 million, down 23% year-on-year.

• Noncore and Legacy Pretax Loss: $200 million.

• Loan-to-Deposit Ratio: 80%.

• Credit Loss Expenses: $100 million.

• Net Interest Income (GWM): $1.5 billion, down 4% year-over-year.

• Employee Count: 126,000, down 2% sequentially.

• Warning! GuruFocus has detected 1 Warning Sign with UBS.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• UBS Group AG (NYSE:UBS) reported a strong first-quarter net profit of $1.7 billion, with an underlying return on CET1 capital of 11.3%.

• The company saw robust net new inflows, including $32 billion in Global Wealth Management and $7 billion in asset management.

• UBS Group AG (NYSE:UBS) achieved double-digit pretax growth in global wealth management, asset management, and the investment bank.

• The integration of Credit Suisse is progressing well, with significant cost savings and operational efficiencies realized.

• The company's balance sheet remains strong, with a CET1 capital ratio of 14.3%, supporting its capital return objectives for 2025.

Negative Points

• Market volatility and uncertainty, particularly due to potential changes in US tariffs, pose risks to global growth and investor sentiment.

• The Personal and Corporate Banking division experienced a 23% decline in pretax profit due to lower interest rates.

• Net interest income in Global Wealth Management decreased by 4% year-over-year, impacted by declining rates in Swiss franc and euro.

• The company faces challenges in maintaining its cost/income ratio targets amid fluctuating interest rate environments.

• UBS Group AG (NYSE:UBS) is constrained by leverage rather than risk-weighted assets, limiting optimization opportunities.

Q & A Highlights

Q: The fact that you're accruing the whole of the 2025 share buyback suggests that you intend to do that almost regardless of what the draft rules look like when they're published in June. Is that a fair interpretation? Also, how are your wealth management clients reacting post the US tariffs? A: No, it's not a fair interpretation. Our language hasn't changed. We are accruing based on our strong performance and capital position, but this is subject to financial targets and any immediate regulatory changes. Regarding client activity, we saw a spike in early April, but recent days show a more normalized environment with a wait-and-see attitude.