UBS reported a net profit of $1.4 billion, rebounding from a $715 million loss a year prior, aided by the integration of Credit Suisse. The bank has completed the first wave of client account migrations and aims for $7.5 billion in gross savings by year-end, despite facing increased scrutiny and potential capital requirements from Swiss regulators. UBS shares fell 4.5% amid concerns over becoming "too big to fail."
UBS Chairman Colm Kelleher announced plans for a future acquisition of a U.S. wealth management firm to enhance its presence in the market, following the integration of Credit Suisse. The bank, which has struggled to scale its independent broker model in the U.S., aims to improve its existing operations, particularly with Paine Webber, before pursuing further expansion. CEO Sergio Ermotti has emphasized the importance of growth in the U.S. economy, appointing Rob Karofsky to lead regional efforts.
UBS CEO Sergio Ermotti stated that the bank must enhance its U.S. profitability before considering acquisitions, deeming discussions on growth through purchases as "premature." The firm aims to improve its performance with a smaller advisor workforce, currently under 6,000, while targeting mid-teen profit margins by 2026. Despite a decrease in headcount, UBS reported a significant increase in net new assets and invested assets for its Americas wealth unit.
UBS plans to continue share buybacks in 2025 and return to pre-CS takeover levels by 2026, with a mid-teens percentage increase in dividends for the 2024 financial year. Despite a strong third-quarter profit of USD 1.43 billion, uncertainties loom due to economic outlooks and geopolitical tensions. CEO Sergio Ermotti aims to lead the integration of Credit Suisse until at least 2026, while the bank navigates ongoing capital requirement discussions.
UBS's global wealth management arm reported a pre-tax operating profit of $1.085 billion for Q3 2024, up from $926 million a year prior, driven by higher recurring fees and transaction income. The bank aims to acquire another US wealth management firm post-Integration of Credit Suisse, with ongoing client migrations expected to enhance cost savings by 2025-2026. Overall, UBS posted a total pre-tax profit of $1.929 billion, a significant recovery from a loss of $184 million a year earlier.
UBS reported a profit of USD 1.43 billion for Q3 2024, a significant recovery from a USD 715 million loss in the same quarter last year, driven by strong performance across its business segments and successful integration of Credit Suisse. The bank attracted nearly USD 25 billion in new money, managing total assets of USD 6,199 billion by the end of September. Despite a cautious outlook due to geopolitical uncertainties, UBS remains committed to its dividend and share buyback plans, with Chairman Colm Kelleher aiming to lead for another five years while seeking to expand in the U.S. asset management market post-integration.
UBS's global wealth management arm reported a pre-tax operating profit of $1.085 billion for Q3 2024, up from $926 million a year prior, driven by higher recurring net fees and transaction-based income. The bank is eyeing US acquisitions to expand its presence post-Credit Suisse integration, which is expected to unlock significant cost savings by 2025. Total pre-tax profit for the group reached $1.929 billion, a notable recovery from a loss of $184 million the previous year.
Colm Kelleher, Chairman of UBS, plans to extend his tenure for another five years, aiming for a total of eight years in leadership. He emphasizes the importance of finding a suitable successor for CEO Sergio Ermotti and allowing them time to acclimate before his departure in 2029. Kelleher also expressed interest in acquiring a U.S. asset manager post-Credit Suisse integration to enhance UBS's presence in the U.S. market.
Colm Kelleher, Chairman of UBS, is contemplating retirement after three years in office and is considering a US asset manager acquisition post Credit Suisse integration. He aims to enhance UBS's US business, which currently lags behind competitors, and seeks to replicate Morgan Stanley's success with Smith Barney. Kelleher, 67, plans to step down around age 72, ensuring a smooth transition for his successor.
UBS Group AG reported a third-quarter net income of $1.4 billion, significantly surpassing analyst expectations of $783.3 million, driven by strong lending income and cost reductions. However, the bank cautioned about potential challenges from the US elections and declining interest income, while also navigating the integration of Credit Suisse amid regulatory uncertainties that could increase capital requirements by up to $25 billion. UBS plans to continue share buybacks and is considering acquiring a US wealth management firm post-integration.
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