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UBS Group AG (CH:UBSG)
:UBSG
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UBS Group AG
(NYSE:UBSG)
73Outperform
Positive Factors
Earnings
UBS reported a 1Q net profit of $1,692m, surpassing both the BofA estimate and the consensus.
Investment Banking
Investment banking revenues have surged 20% quarter-on-quarter, significantly outpacing consensus.
Negative Factors
Capital Requirements
UBS is expected to face a significant new capital need of approximately $20-25 billion, which could create an uneven playing field compared to its peers.
Operational Challenges
The integration of IT systems and near-zero interest rates present operational challenges for UBS.
Regulatory Framework
UBS has been downgraded to an Underperform rating due to uncertainty over the new regulatory framework.
UBS Group AG (UBSG) vs. S&P 500 (SPY)
Market Cap
$78.01B
Dividend Yield2.73%
Average Volume (3M)9.05M
Price to Earnings (P/E)18.1
Beta (1Y)1.37
Revenue Growth-6.01%
EPS GrowthN/A
CountryCH
Employees106,789
SectorFinancial
Sector Strength88
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.40
Shares Outstanding3,341,581,800
10 Day Avg. Volume5,576,339
30 Day Avg. Volume9,045,935
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.97
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.06
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$30.35Price Target Upside19.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
UBS Group AG Business Overview & Revenue Model
Company DescriptionUBS Group AG (UBSG) is a Swiss multinational investment bank and financial services company headquartered in Zurich and Basel. The company operates in several sectors, including wealth management, investment banking, asset management, and retail banking. UBS is known for its comprehensive financial services for private, corporate, and institutional clients worldwide, offering solutions such as investment advisory, portfolio management, and financial planning.
How the Company Makes MoneyUBS Group AG generates revenue through various key streams. The wealth management division is a significant contributor, earning fees from advisory services, portfolio management, and brokerage services. The investment banking division derives income from underwriting, advisory fees, trading, and capital markets activities. The asset management division earns fees from managing a wide range of investment products for institutional and individual clients. Retail banking services, primarily in Switzerland, provide additional revenue through traditional banking activities such as lending and deposit services. Strategic partnerships and collaborations with other financial institutions also enhance UBS's capabilities and revenue potential.
UBS Group AG Financial Statement Overview
Summary
UBS Group AG exhibits a strong financial position with stable profitability and effective cash flow management. Despite high leverage, the company is well-positioned in the diversified banking sector with opportunities for growth.Income Statement
UBS Group AG demonstrates strong profitability with a stable gross profit margin, despite a slight decrease in total revenue in TTM (Trailing-Twelve-Months). Notably, the net profit margin of 10.98% for TTM is commendable, indicating effective cost management. However, the revenue growth rate presents a minor concern with a slight decline compared to the previous year.85
Very Positive
Balance Sheet
The balance sheet reflects solid equity with a debt-to-equity ratio of 3.85, which is relatively high, suggesting significant leverage. However, the equity ratio of 5.65% indicates a stable capital structure. UBS maintains a strong cash position, crucial for liquidity management in a diversified bank.75
Positive
Cash Flow
The cash flow statement shows healthy free cash flow growth, supported by a robust operating cash flow to net income ratio of 1.42 for TTM. Despite a decrease in free cash flow in TTM, UBS's effective cash flow management ensures sufficient liquidity for operations and investments.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 45.81B | 39.06B | 33.27B | 35.06B | 33.08B | Gross Profit |
| 45.81B | 39.06B | 33.27B | 35.06B | 33.08B | EBIT |
| 0.00 | 0.00 | 16.14B | 9.46B | 8.21B | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 5.09B | 27.85B | 7.63B | 7.46B | 6.56B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 225.52B | 329.38B | 171.68B | 203.64B | 166.49B | Total Assets |
| 1.57T | 1.72T | 1.10T | 1.12T | 1.13T | Total Debt |
| 332.42B | 366.11B | 193.28B | 218.64B | 200.47B | Net Debt |
| 106.72B | 60.47B | 20.45B | 23.84B | 42.24B | Total Liabilities |
| 1.48T | 1.63T | 1.05T | 1.06T | 1.07T | Stockholders Equity |
| 85.08B | 86.11B | 56.88B | 60.66B | 59.52B |
| Cash Flow | Free Cash Flow | |||
| 1.27B | 84.38B | 13.00B | 29.58B | 35.10B | Operating Cash Flow |
| 3.28B | 86.07B | 14.65B | 31.43B | 36.96B | Investing Cash Flow |
| 709.00M | 103.23B | -12.45B | -2.12B | -6.79B | Financing Cash Flow |
| -84.17B | -58.26B | -9.09B | 10.35B | 12.43B |
UBS Group AG Technical Analysis
Neutral
25.29
Price Trends
26.40
Negative
27.55
Negative
26.72
Negative
Market Momentum
-0.35
Negative
54.30
Neutral
86.09
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:UBSG, the sentiment is Neutral. The current price of 25.29 is above the 20-day moving average (MA) of 23.53, below the 50-day MA of 26.40, and below the 200-day MA of 26.72, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 54.30 is Neutral, neither overbought nor oversold. The STOCH value of 86.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:UBSG.
UBS Group AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $78.01B | 18.06 | 5.83% | 2.73% | -6.01% | ― | |
71 Outperform | CHF28.93B | 25.32 | 3.55% | 9.45% | 12.15% | ||
66 Neutral | CHF10.84B | 11.04 | 4.73% | 7.69% | 126.15% | ||
64 Neutral | CHF3.95B | 12.64 | 13.89% | 4.59% | 11.14% | 7.22% | |
64 Neutral | $12.64B | 9.74 | 8.05% | 17044.60% | 12.66% | -4.62% | |
63 Neutral | CHF3.38B | 12.66 | 12.22% | 4.72% | 9.24% | ― |
* Financial Sector Average
Performance Comparison
CH:UBSG
UBS Group AG
25.29
1.17
4.86%
CH:PGHN
Partners Group Holding AG
1,099.00
-79.33
-6.73%
CH:BAER
Julius Baer Group Ltd
54.94
5.20
10.45%
CH:EFGN
EFG International AG
12.42
1.37
12.35%
CH:VONN
Vontobel Holding AG
60.20
9.68
19.16%
UBS Group AG Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 1.28%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with robust profit and inflows countered by flat revenue, lower net interest income, and challenges related to global tariffs and the Personal and Corporate Banking sector. While there were significant achievements in integration and cost savings, uncertainties in the broader economic environment and specific underperforming sectors were notable.Q1-2025 Updates
Positive Updates
Strong First Quarter Profit
First quarter net profit reached $1.7 billion, and the return on CET1 capital was 11.3%, supported by positive operating leverage in core businesses.
Robust Net New Inflows
Net new inflows were strong, with $32 billion in Global Wealth Management and $7 billion in asset management.
Record Global Markets Performance
Global markets achieved its best quarter on record, with strong performance in equities and FX.
Progress in Credit Suisse Integration
Significant progress was made in integrating Credit Suisse, with over 1 million clients prepared to migrate to UBS platforms.
Capital Strength and Share Buyback
CET1 capital ratio stood at 14.3%, and a $3 billion share buyback plan was announced for 2025.
Cost Savings Achieved
An additional $900 million in gross run rate cost saves achieved, with a cumulative total of $8.4 billion since the end of 2022.
Negative Updates
Reduced Group Revenue
Group revenue was broadly flat at $12 billion, with a slight decrease in profit before tax by 1% year-on-year.
Lower Net Interest Income
Net interest income in Global Wealth Management decreased by 4% year-over-year and 7% quarter-over-quarter.
Challenges with Tariff Impact
The prospect of higher tariffs on global trade presents a material risk to global growth and inflation, causing uncertainty.
Pressure on Personal and Corporate Banking
The Personal and Corporate Banking division experienced a 23% decrease in pretax profit due to lower interest rates.
Non-Core and Legacy Unit Underperformance
Non-core and legacy unit reported a pretax loss of $200 million, with the expectation of further losses throughout the year.
Company Guidance
During the UBS First Quarter 2025 Results call, CEO Sergio Ermotti highlighted a robust net profit of $1.7 billion and an underlying return on CET1 capital of 11.3%. UBS saw $32 billion in net new assets in Global Wealth Management and $7 billion in Asset Management, reflecting strong asset gathering. The Investment Bank had a record quarter in global markets, while the CET1 ratio stood at 14.3%. UBS plans to continue its $3 billion share buyback, contingent on maintaining a CET1 capital ratio of around 14%. The group’s cost/income ratio was 77.4%, with a group profit before tax of $2.6 billion, despite a challenging market environment. Looking forward, UBS remains committed to executing its growth strategy while navigating ongoing market volatility.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.