Yahoo Finance

Reported revenues were USD 12,557m, down 1% YoY. On an underlying basis, revenues decreased slightly to USD 11,904m. Compared to 1Q24, underlying revenues from our core businesses increased 6%, reflecting the strength, scale and geographic diversification of our franchises, while we saw a 72% decline in revenues in the much-reduced Non-core and Legacy division.

Reported Group operating expenses increased by 1% YoY to USD 10,324m. On an underlying basis, operating expenses decreased slightly to USD 9,218m as we continued to execute on our integration and efficiency plans at pace.

Maintained robust client momentum

During the first quarter, we remained close to our clients as they relied on us as a source of stability amid uncertain market conditions. We continued to provide them with expert advice, solutions, and funding across franchises, driving strong momentum and capturing growth across our platform.

In GWM, the USD 32bn in net new assets and USD 27bn in net new fee generating assets demonstrate the trust our clients continue to place in our CIO-led advisory and mandate solutions. Group invested assets increased by 5% YoY to USD 6.2trn. In the turbulent first weeks of April, we have increased our engagement, reaching around 1.3m clients with a series of market alerts, reports, and live streams that helped them to manage volatility and re-position portfolios.

As a leading provider of credit to Swiss households and corporates, we continue to deliver on our commitments to our home market. In the first quarter, we granted or renewed CHF 40bn of loans in Switzerland, including CHF 30bn in Personal & Corporate Banking.

Transactional activity was very strong across both private and institutional clients during the quarter. In GWM, underlying transaction-based income increased by 15% YoY with strong momentum across all regions, led by Americas and APAC. In the Investment Bank, Global Markets delivered a record quarter with revenues of USD 2.5bn, up 32% YoY, mainly driven by higher client activity in equities and FX with gains across all regions, showcasing the strength of our expanded franchise. Our performance was supported by the record-high market share in Cash Equities.

Continued to execute on integration

We have made further progress on our integration plans in the first quarter, actively preparing for the main client account migration waves in Switzerland, reducing the size of Non-core and Legacy, and delivering on our gross cost saves plans.

For the first main wave of client account migrations scheduled for 2Q25, we have performed robust and extensive technology testing and rehearsals, as well as focused on preparing our client-facing areas for migration, e.g. by further increasing support capacity in our branches and contact centers.

We have also completed the consolidation of our branch network in Switzerland. Since the acquisition we have merged 95 former Credit Suisse branches with existing UBS branches and now provide clients with access to a comprehensive network of 195 branches across Switzerland.

Non-core and Legacy progressed well on its cost-reduction work. It has decommissioned almost 10% of its applications, for a total of 48% since its inception in 2Q23. NCL also continued to exit positions, having now closed 74% of its books since its inception and reduced RWA to USD 34bn at the end of 1Q25.

In the first quarter, we delivered an additional USD 0.9bn in exit-rate gross cost saves across the Group, for a total of USD 8.4bn from the 2022 baseline. This amounts to 65% of our total cumulative gross cost saves ambition.

Balance sheet for all seasons with strong capital position

Our balance sheet for all seasons, underpinned by high-quality credit book and a strong capital position, remains the key pillar of our strategy and source of our competitive advantage.

Our resilience is underscored by a quarter-end loan-to-deposit ratio of 80%. 57% of our prudently-managed loan book consists of mortgages, which are predominantly secured by real estate in Switzerland, with average loan-to-value of around 50%. Overall, 93% of loans and advances to customers on our balance sheet is collateralized.

In the quarter, we maintained a strong capital position with a CET1 capital ratio of 14.3% and a CET1 leverage ratio of 4.4%. Both are in excess of our guidance of ~14% and >4.0%, respectively, and provide a solid capital buffer to requirements during the integration and increased market volatility, while enabling us to self-fund growth and return capital to shareholders.

Commitment to capital returns

It is now our intention to execute on the entirety of our 2025 capital return ambitions announced in February. We are accruing for an increase of around 10% in the ordinary dividend per share. We have completed USD 0.5bn in share buybacks in the first quarter and reserved USD 2.5bn for further share repurchases, as we plan to buy back an additional USD 0.5bn of shares in the second quarter of 2025 and USD 2bn of shares in the second half of the year. For 2026 we are maintaining our ambition for share repurchases to exceed full year 2022 levels of USD 5.6bn. Our share repurchase levels will be subject to maintaining our CET1 capital ratio target of ~14%, achieving our financial targets and the absence of material and immediate changes to the current capital regime in Switzerland.

Continuing to invest in growth

We continue to build out our GenAI capabilities, as we progress towards becoming an AI-first institution where our clients, people, and shareholders benefit from the latest AI technologies. We have completed the rollout of 50,000 Microsoft Copilot licenses and continued the rollout of our proprietary AI assistant Red, which now provides more than 40,000 employees with AI-powered access to UBS products, insights, research and CIO reports. In the quarter we saw a rapid increase in usage among employees with 6m prompts across all of our tools, a three-fold increase from the fourth quarter of 2024. We also further increased adoption of best-in-class cloud infrastructure, having reached ~75% private and public cloud adoption.

In April, we entered into an exclusive strategic collaboration with 360 ONE, one of India's largest independent wealth and asset management firms. As part of the collaboration, subject to regulatory requirements and approvals, clients from both institutions will have access to onshore and offshore wealth management solutions. In addition, UBS will transfer its onshore wealth management business in India to 360 ONE, while 360 ONE clients booked in Singapore will be served by UBS, subject to the required approvals. UBS will acquire warrants for a 4.95% stake in 360 ONE, demonstrating UBS’s commitment to the fast-growing ultra and high-net-worth Indian market.

Outlook

Rapid and significant changes to trade tariffs, heightened risk of escalation and significantly increased macroeconomic uncertainty led to major market volatility in the first weeks of April. We actively engaged with institutional and private clients, helping them navigate the uncertain environment with advice on how to protect their assets and by facilitating their trading activity across asset classes.

With a wide range of possible outcomes, the economic path forward is particularly unpredictable. The prospect of higher tariffs on global trade presents a material risk to global growth and inflation, clouding the interest rate outlook. Markets are likely to remain sensitive to new developments, both positive and negative, which are likely to lead to further spikes in volatility. Prolonged uncertainty would affect sentiment and cause businesses and investors to delay important decisions on strategy, capital allocation and investments.

In the second quarter we expect net interest income (NII) in Global Wealth Management to decline sequentially by a low-single-digit percentage, and we see a similar decline in Personal & Corporate Banking’s NII in Swiss francs. In US dollar terms, Personal & Corporate Banking’s NII is expected to increase sequentially by a mid-single-digit percentage, based on current foreign exchange rates. Continued market uncertainty could affect the timing of execution of our Global Banking pipeline. As a consequence of tax planning measures related to the integration, we expect our effective tax rate in the second quarter to be around zero. Pull-to-par revenues³ are expected to reach USD 0.6bn, partially mitigating the expected USD 1.1bn in integration-related expenses.

Despite this uncertain environment we are confident in our ability to deliver on our financial targets, leveraging the power of our diversified business model. We remain focused on serving our clients, executing on integration and acting as an engine of economic growth in the communities we serve.

First quarter 2025 performance overview – Group

Group PBT USD 2,132m, underlying PBT USD 2,586m

PBT of USD 2,132m included PPA effects and other integration items of USD 574m, a gain related to an investment in an associate of USD 14m, USD 64m in revenues related to the Swisscard transactions, integration-related expenses and PPA effects of USD 927m, and an expense related to the Swisscard transactions of USD 180m. Underlying PBT was USD 2,586m, including net credit loss expenses of USD 100m. The cost/income ratio was 82.2%, and 77.4% on an underlying basis. Net profit attributable to shareholders was USD 1,692m, with diluted earnings per share of USD 0.51. Return on CET1 capital was 9.6%, and 11.3% on an underlying basis.

Global Wealth Management (GWM) PBT USD 1,359m, underlying PBT USD 1,545m

Total revenues increased by USD 279m, or 5%, to USD 6,422m, largely driven by higher recurring net fee income and transaction-based income, partly offset by lower net interest income, and included a USD 69m decrease in PPA effects and other integration items. Excluding USD 165m of PPA effects and other integration items and a USD 4m gain related to an investment in an associate, underlying total revenues were USD 6,253m, an increase of 6%. Net credit loss expenses were USD 6m, compared with net credit loss releases of USD 3m in the first quarter of 2024. Operating expenses increased by USD 13m to USD 5,057m, mainly driven by an increase in financial advisor compensation as a result of higher compensable revenues, almost entirely offset by lower technology expenses, risk management costs and real estate costs, and included a USD 49m decrease in integration-related expenses. Excluding USD 355m of integration-related expenses and PPA effects, underlying operating expenses were USD 4,702m, an increase of 1%. The cost/income ratio was 78.8%, and 75.2% on an underlying basis. Invested assets increased sequentially by USD 36bn to USD 4,218bn. Net new assets were USD 32bn.

Personal & Corporate Banking (P&C) PBT CHF 545m, underlying PBT CHF 597m

Total revenues decreased by CHF 150m, or 7%, to CHF 1,989m, mainly due to lower net interest income, partly offset by higher other income, and included a CHF 10m decrease in PPA effects and other integration items. Total revenues in the first quarter of 2025 also included a gain of CHF 58m related to the Swisscard transactions and a gain of CHF 9m related to an investment in an associate. Excluding CHF 216m of PPA effects and other integration items and the aforementioned gains, underlying total revenues were CHF 1,705m, a decrease of 11%. Net credit loss expenses were CHF 48m and mainly reflected net expenses on credit-impaired positions, primarily in the legacy Credit Suisse corporate loan book. Net credit loss expenses in the prior-year quarter were CHF 39m. Operating expenses increased by CHF 155m, or 12%, to CHF 1,396m, largely due to a CHF 164m expense related to the Swisscard transactions, and included a CHF 30m increase in integration-related expenses. Excluding CHF 172m of integration-related expenses and PPA effects and the aforementioned expense of CHF 164m, underlying operating expenses were CHF 1,060m, a decrease of 4%, mainly driven by lower personnel expenses, including lower variable compensation. The cost/income ratio was 70.2%, and 62.2% on an underlying basis.

Asset Management (AM) PBT USD 135m, underlying PBT USD 208m

Total revenues decreased by USD 35m, or 4%, to USD 741m, primarily reflecting a decrease in net management fees. Operating expenses decreased by USD 59m, or 9%, to USD 606m, reflecting decreases across non-personnel and personnel expenses, and included a USD 2m increase in integration-related expenses. Excluding integration-related expenses of USD 73m, underlying operating expenses were USD 533m, a decrease of 10%, mainly due to decreases in personnel, consulting and legal expenses and the release of a provision for fund-administration-related expenses, as well as decreases across a number of other expense lines. The cost/income ratio was 81.7%, and 71.9% on an underlying basis. Invested assets increased sequentially by USD 23bn to USD 1,796bn. Net new money was USD 7bn, and USD 5bn excluding money market flows and associates.

Investment Bank (IB) PBT USD 722m, underlying PBT USD 696m

Total revenues increased by USD 432m, or 16%, to USD 3,183m, due to higher revenues in Global Markets, partly offset by lower revenues in Global Banking, and included an overall USD 155m decrease in PPA effects. Excluding these effects, underlying total revenues were USD 3,045m, an increase of 24%. Net credit loss expenses were USD 35m, compared with net credit loss expenses of USD 32m in the first quarter of 2024. Operating expenses increased by USD 263m, or 12%, to USD 2,427m, mainly due to higher variable compensation, and included a USD 31m decrease in integration-related expenses. Excluding integration-related expenses of USD 112m, underlying operating expenses were USD 2,314m, an increase of 14%. The cost/income ratio was 76.2%, and 76.0% on an underlying basis. Return on attributed equity was 16.3%, and 15.8% on an underlying basis.

Non-core and Legacy (NCL) PBT USD (391m), underlying PBT USD (200m)

Total revenues were USD 284m, a decrease of USD 717m, mainly reflecting lower net gains from position exits, including a USD 45m loss from an exit from longevity positions, and lower net interest income from securitized products and credit products as a result of a smaller portfolio. Total revenues in the first quarter of 2025 included a gain of USD 97m from the sale of Select Portfolio Servicing, the US mortgage servicing business of Credit Suisse. Total revenues in the first quarter of 2024 included a net gain of USD 272m, after accounting for the purchase price allocation adjustments recorded at the closing of the acquisition of the Credit Suisse Group, from the sale of assets from the former Credit Suisse securitized products group to Apollo Management Holdings and certain other entities (collectively Apollo). Net credit loss expenses were USD 7m, almost entirely reflecting credit-impaired positions with a small number of corporate counterparties. These compared with net credit loss expenses of USD 36m in the first quarter of 2024. Operating expenses were USD 669m, a decrease of USD 342m, mainly due to lower personnel expenses, technology expenses, real estate costs and risk management costs, and included a USD 51m decrease in integration-related expenses. Excluding integration-related expenses of USD 191m, underlying operating expenses were USD 477m, a decrease of 38%.

Group Items PBT USD (299m), underlying PBT USD (326m)

UBS’s sustainability and impact highlights

In March 2025, we published our 2024 Sustainability Report providing an update on the progress in advancing our sustainability and culture agenda. We have done so both based on our commitment to further evolving UBS’s culture as well as our continued ambition to be a leader in sustainability.

We support our clients in the transition to a low-carbon world and consider climate change risks and opportunities across our bank for the benefit of our clients, shareholders and all our stakeholders.

At the Annual General Meeting in April 2025, UBS shareholders ratified our 2024 Sustainability Report in an advisory vote by 89.5%.

Emission focus

In 2024, following a review of our own operations, we decided to set a revised target to reduce scope 1 and 2 emissions to net zero by 2035, which reflects both the integrated organization and latest regulatory guidance. We made progress on these key components of our climate action plan, reducing our net greenhouse gas scope 1 and 2 emissions and energy consumption. For scope 3, we remain committed to our lending sector decarbonization targets to address our financed emissions in specified sectors and have progressed on these.

UBS offering recognized by clients

Clients remain at the heart of what we do. We therefore remain steadfast in our commitment to be their bank of choice and support them with offerings that meet their evolving needs. We continue to support our clients in their philanthropy activities through our advisory services and partner with our clients through the work of the UBS Optimus Foundation. We were honoured to be recognized as the Best Private Bank for Philanthropy by Asian Private Banker and by Euromoney for Asia’s best for philanthropic advisory.

In February 2025, we brought together clients and leading philanthropists at the UBS Collectives Summit as well as the UBS Social Impact Forum 2025, both hosted in Zurich, to discuss leading for impact and how to drive change through collaboration and partnership.

In March 2025, in collaboration with Impact Frontier, UBS Optimus Foundation published a study on our impact transparency and measurement tool which enhances decision-making at both program and portfolio levels at UBS Optimus Foundation.

Information about results materials and the earnings call

UBS’s first quarter 2025 report, news release and slide presentation are available from 06:45 CEST on Wednesday, 30 April 2025, at ubs.com/quarterlyreporting.

UBS will hold a presentation of its first quarter 2025 results on Wednesday, 30 April 2025. The results will be presented by Sergio P. Ermotti (Group Chief Executive Officer), Todd Tuckner (Group Chief Financial Officer) and Sarah Mackey (Head of Investor Relations).

Time
09:00 CEST
08:00 BST
03:00 US EDT

Audio webcast
The presentation for analysts can be followed live on ubs.com/quarterlyreporting with a simultaneous slide show.

Webcast playback
An audio playback of the results presentation will be made available at ubs.com/investors later in the day.

Cautionary statement regarding forward-looking statements

This news release contains statements that constitute "forward-looking statements", including but not limited to management’s outlook for UBS’s financial performance, statements relating to the anticipated effect of transactions and strategic initiatives on UBS’s business and future development and goals or intentions to achieve climate, sustainability and other social objectives. While these forward-looking statements represent UBS’s judgments, expectations and objectives concerning the matters described, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from UBS’s expectations. In particular, the global economy may suffer significant adverse effects from increasing political tensions between world powers, changes to international trade policies, including those related to tariffs and trade barriers, and ongoing conflicts in the Middle East, as well as the continuing Russia–Ukraine war. UBS’s acquisition of the Credit Suisse Group has materially changed its outlook and strategic direction and introduced new operational challenges. The integration of the Credit Suisse entities into the UBS structure is expected to continue through 2026 and presents significant operational and execution risk, including the risks that UBS may be unable to achieve the cost reductions and business benefits contemplated by the transaction, that it may incur higher costs to execute the integration of Credit Suisse and that the acquired business may have greater risks or liabilities than expected. Following the failure of Credit Suisse, Switzerland is considering significant changes to its capital, resolution and regulatory regime, which, if proposed and adopted, may significantly increase our capital requirements or impose other costs on UBS. These factors create greater uncertainty about forward-looking statements. Other factors that may affect UBS’s performance and ability to achieve its plans, outlook and other objectives also include, but are not limited to: (i) the degree to which UBS is successful in the execution of its strategic plans, including its cost reduction and efficiency initiatives and its ability to manage its levels of risk-weighted assets (RWA) and leverage ratio denominator (LRD), liquidity coverage ratio and other financial resources, including changes in RWA assets and liabilities arising from higher market volatility and the size of the combined Group; (ii) the degree to which UBS is successful in implementing changes to its businesses to meet changing market, regulatory and other conditions; (iii) inflation and interest rate volatility in major markets; (iv) developments in the macroeconomic climate and in the markets in which UBS operates or to which it is exposed, including movements in securities prices or liquidity, credit spreads, currency exchange rates, residential and commercial real estate markets, general economic conditions, and changes to national trade policies on the financial position or creditworthiness of UBS’s clients and counterparties, as well as on client sentiment and levels of activity; (v) changes in the availability of capital and funding, including any adverse changes in UBS’s credit spreads and credit ratings of UBS, as well as availability and cost of funding to meet requirements for debt eligible for total loss-absorbing capacity (TLAC); (vi) changes in central bank policies or the implementation of financial legislation and regulation in Switzerland, the US, the UK, the EU and other financial centers that have imposed, or resulted in, or may do so in the future, more stringent or entity-specific capital, TLAC, leverage ratio, net stable funding ratio, liquidity and funding requirements, heightened operational resilience requirements, incremental tax requirements, additional levies, limitations on permitted activities, constraints on remuneration, constraints on transfers of capital and liquidity and sharing of operational costs across the Group or other measures, and the effect these will or would have on UBS’s business activities; (vii) UBS’s ability to successfully implement resolvability and related regulatory requirements and the potential need to make further changes to the legal structure or booking model of UBS in response to legal and regulatory requirements and any additional requirements due to its acquisition of the Credit Suisse Group, or other developments; (viii) UBS’s ability to maintain and improve its systems and controls for complying with sanctions in a timely manner and for the detection and prevention of money laundering to meet evolving regulatory requirements and expectations, in particular in the current geopolitical turmoil; (ix) the uncertainty arising from domestic stresses in certain major economies; (x) changes in UBS’s competitive position, including whether differences in regulatory capital and other requirements among the major financial centers adversely affect UBS’s ability to compete in certain lines of business; (xi) changes in the standards of conduct applicable to its businesses that may result from new regulations or new enforcement of existing standards, including measures to impose new and enhanced duties when interacting with customers and in the execution and handling of customer transactions; (xii) the liability to which UBS may be exposed, or possible constraints or sanctions that regulatory authorities might impose on UBS, due to litigation, contractual claims and regulatory investigations, including the potential for disqualification from certain businesses, potentially large fines or monetary penalties, or the loss of licenses or privileges as a result of regulatory or other governmental sanctions, as well as the effect that litigation, regulatory and similar matters have on the operational risk component of its RWA; (xiii) UBS’s ability to retain and attract the employees necessary to generate revenues and to manage, support and control its businesses, which may be affected by competitive factors; (xiv) changes in accounting or tax standards or policies, and determinations or interpretations affecting the recognition of gain or loss, the valuation of goodwill, the recognition of deferred tax assets and other matters; (xv) UBS’s ability to implement new technologies and business methods, including digital services, artificial intelligence and other technologies, and ability to successfully compete with both existing and new financial service providers, some of which may not be regulated to the same extent; (xvi) limitations on the effectiveness of UBS’s internal processes for risk management, risk control, measurement and modeling, and of financial models generally; (xvii) the occurrence of operational failures, such as fraud, misconduct, unauthorized trading, financial crime, cyberattacks, data leakage and systems failures, the risk of which is increased with persistently high levels of cyberattack threats; (xviii) restrictions on the ability of UBS Group AG, UBS AG and regulated subsidiaries of UBS AG to make payments or distributions, including due to restrictions on the ability of its subsidiaries to make loans or distributions, directly or indirectly, or, in the case of financial difficulties, due to the exercise by FINMA or the regulators of UBS’s operations in other countries of their broad statutory powers in relation to protective measures, restructuring and liquidation proceedings; (xix) the degree to which changes in regulation, capital or legal structure, financial results or other factors may affect UBS’s ability to maintain its stated capital return objective; (xx) uncertainty over the scope of actions that may be required by UBS, governments and others for UBS to achieve goals relating to climate, environmental and social matters, as well as the evolving nature of underlying science and industry and the possibility of conflict between different governmental standards and regulatory regimes; (xxi) the ability of UBS to access capital markets; (xxii) the ability of UBS to successfully recover from a disaster or other business continuity problem due to a hurricane, flood, earthquake, terrorist attack, war, conflict, pandemic, security breach, cyberattack, power loss, telecommunications failure or other natural or man-made event; and (xxiii) the effect that these or other factors or unanticipated events, including media reports and speculations, may have on its reputation and the additional consequences that this may have on its business and performance. The sequence in which the factors above are presented is not indicative of their likelihood of occurrence or the potential magnitude of their consequences. UBS’s business and financial performance could be affected by other factors identified in its past and future filings and reports, including those filed with the US Securities and Exchange Commission (the SEC). More detailed information about those factors is set forth in documents furnished by UBS and filings made by UBS with the SEC, including the UBS Group AG and UBS AG Annual Reports on Form 20-F for the year ended 31 December 2024. UBS is not under any obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

Rounding

Numbers presented throughout this news release may not add up precisely to the totals provided in the tables and text. Percentages and percent changes disclosed in text and tables are calculated on the basis of unrounded figures. Absolute changes between reporting periods disclosed in the text, which can be derived from numbers presented in related tables, are calculated on a rounded basis.

Tables

Within tables, blank fields generally indicate non-applicability or that presentation of any content would not be meaningful, or that information is not available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis. Values that are zero on a rounded basis can be either negative or positive on an actual basis.

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