UBS Group AG has reported strong financial results for the third quarter of 2024, with a net income of $1.4 billion and underlying earnings before taxes (EBT) of $2.4 billion. This performance is notable as the company continues to integrate Credit Suisse following its recent acquisition.
Year-to-date, UBS has achieved an EBIT of $7.1 billion, reflecting a return on CET1 capital of 9.2%. The firm's underlying revenues have increased by 9% year-on-year, with assets under management rising by 15% to reach $6.2 trillion. The CET1 capital ratio stands at 14.3%, supported by the phasing out of transitional capital adjustments.
UBS has successfully migrated client accounts in Luxembourg and Hong Kong and plans to do the same in Singapore, Japan, and Switzerland.
The company is investing in technology, including AI-driven solutions in partnership with Microsoft, to enhance operational efficiency and customer experience.
Employee satisfaction remains high, with 84% expressing pride in their association with UBS.
UBS's current dividend yield is 1.76%, and the stock trades at a high earnings multiple, with a P/E ratio of 42.49. However, when adjusted for recent earnings, the ratio drops to 14.06, suggesting a more reasonable valuation. UBS has maintained dividend payments for 13 consecutive years and has seen substantial revenue growth of 38.37% over the past twelve months.
The company's market capitalization is $100.45 billion, and it aims to exceed pre-acquisition returns on capital by 2026. UBS faces challenges such as lower cost savings, a projected decrease in the CET1 capital ratio, and a decline in pre-tax profit in the Retail and Corporate Banking segments. The company remains confident in its long-term growth objectives and is committed to delivering on its strategic goals.