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Julius Baer, UBS, and Vontobel have shown divergent performances following their annual results, with Julius Baer shares down 8% due to high costs despite strong investment banking earnings. In contrast, Vontobel reported a 24% profit increase, driven by private client growth, while UBS faces potential capital requirement challenges. The future remains uncertain as these banks navigate their respective hurdles.
UBS shares fell 3.1% to CHF 30.78 amid profit-taking following strong fourth-quarter results for 2024 that exceeded expectations. The bank announced a 29% increase in dividends and robust share buyback programs, while analysts noted the integration of Credit Suisse is progressing well, despite mixed performance across divisions.
Zürcher Kantonalbank's equity analysts have identified UBS, Partners Group, Swissquote, and St. Galler Kantonalbank as top picks for 2025, highlighting their diverse business models and favorable risk-opportunity profiles. UBS's integration of Credit Suisse is expected to yield long-term benefits, while Partners Group is poised for significant growth in private markets. Swissquote aims to triple its market share, and SGKB, despite challenges from interest rate trends, is well-positioned to navigate the evolving banking landscape.
Swiss banks are facing increased spreads in capital markets, with cantonal banks experiencing rises of 40-50 basis points. The implementation of Basel III Final in 2025 is expected to benefit certain banks like BCV, while UBS's capital adequacy discussions could impact the broader sector. Analysts favor UBS, Partners Group, Swissquote, and SGKB for their growth potential amid changing interest rates and regulatory landscapes.
UBS reported a strong third-quarter profit of $1.43 billion, exceeding analysts' expectations of $740 million, despite a 4% drop in share price due to equity concerns and potential capital requirements. All business divisions contributed to higher revenues, with significant client activity and $24.7 billion in new money inflows. The integration of Credit Suisse is ahead of schedule, achieving $800 million in cost savings, with a target of $13 billion by 2026.
UBS reported a surprising net profit of $1.43 billion for Q3, significantly up from a loss of $785 million a year prior, with total net profit for the first nine months reaching $4.32 billion. The bank benefited from $25 billion in net new money inflows and a 15% increase in assets under management, while reducing risky assets by $41 billion since spring 2023. Despite a 4.5% drop in share price, analysts noted strong revenue contributions across all divisions and acknowledged the challenges of integrating Credit Suisse's client accounts.
UBS reported a net income of $1.43 billion for Q3, significantly surpassing analyst expectations and recovering from a $785 million loss a year earlier. Operating income rose 5% to $12.33 billion, driven by strong contributions from global wealth management and investment banking. The bank also achieved $25 billion in net new money inflows and reduced risky assets by $5 billion, while its cost-cutting program lowered expenses by $800 million.
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 shares surged to a new multi-year high, trading at 29.06 francs after a 2.1% increase, following strong third-quarter results that exceeded analysts' expectations for the third consecutive time. Analysts praised the bank's cost-cutting measures and positive outlook, with cumulative gross cost reductions now projected at $7.5 billion by the end of 2024. Despite a lower-than-expected CET1 capital ratio, international experts noted the net profit was nearly double consensus forecasts, reflecting strong performance across all business areas.
UBS shares surged 2.2% to CHF 29.09, outperforming analysts' expectations for the third quarter. While the bank remains cautious about its outlook, it successfully navigated the initial phase of integrating Credit Suisse's client accounts. Analysts maintain a "buy" recommendation, with a price target of CHF 31.
Michael Klien
People
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
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