{
}
UBS's auditors issued an "adverse opinion" on the bank's internal controls over financial reporting for 2024, citing unresolved misstatements from its acquisition of Credit Suisse. This rare rebuke indicates potential misrepresentation in UBS's financial statements, highlighting challenges in integrating the two banks. UBS acknowledged material weaknesses in its internal controls and is working on remediation efforts, but did not specify a timeline for resolution.
UBS's auditors issued an "adverse opinion" on the bank's financial reporting controls for 2024, citing unresolved misstatements inherited from Credit Suisse. The bank acknowledged a material weakness in its internal controls due to the complexities of the merger and ongoing remediation efforts. UBS is working to address these legacy issues, which have raised concerns about the accuracy of its financial statements.
UBS aims to reduce its U.S. wealth division's cost-to-income ratio to 85% by 2026 while reorganizing into four regional units and enhancing its technology offerings. Despite anticipated advisor attrition due to recent pay policy changes, the firm targets $5 trillion in invested assets by 2028, with a focus on both ultra-high net worth and mass affluent clients. In 2024, UBS reported $96.7 billion in net new assets, down from 2023, but saw a 7% increase in total invested assets to $4.18 trillion.
UBS executives anticipate a rise in broker attrition in the U.S. due to recent compensation changes, which may hinder net new assets in the short term. The firm is restructuring its compensation plan to align with industry standards, aiming to enhance profitability and better serve high net worth clients. Despite a 110% increase in wealth profit for the fourth quarter, UBS's U.S. business continues to face challenges with rising costs and lower margins compared to competitors.
UBS Group AG's Chief Financial Officer, Todd Tuckner, stated that new capital requirements from the Swiss government would necessitate higher profit retention by the bank. He noted that reforms to the Swiss Too-Big-to-Fail regulations could result in excessive capital at the group level.
UBS is set to present its annual figures, with analysts expecting a fourth-quarter operating income of CHF 11.411 billion and a net profit of CHF 536 million. The focus will be on the integration of Credit Suisse, anticipated to yield significant cost savings, while potential increases in capital requirements loom over future shareholder returns. Despite uncertainties, UBS plans to continue its share buyback program and is expected to raise its dividend to USD 0.80 per share for 2024.
UBS will present its fourth quarter and full year 2024 results on February 4, 2025, at 09:00 CET, led by CEO Sergio P. Ermotti and CFO Todd Tuckner. The presentation will be available via live webcast, followed by a media Q&A session. Documentation will be accessible from 06:45 CET on the same day.
UBS is set to cut hundreds of jobs in Switzerland as part of its ongoing redundancy plans, with a total of around 10,000 job reductions anticipated. CEO Sergio Ermotti confirmed the bank aims for annual gross cost savings of approximately $7.5 billion by year-end, while still hiring for 174 positions. The integration of Credit Suisse will also see 3,000 redundancies, although many employees are leaving voluntarily or retiring.
UBS is adjusting its compensation structure for brokers in 2025, reducing team bonuses and grid payouts to enhance profit margins in its U.S. wealth unit. The new plan shifts pay rates to depend on the highest producer's revenue, potentially impacting earnings for many brokers, while introducing a growth award to offset cuts. Additionally, UBS aims to increase net interest income and improve its cost-to-income ratio, which currently lags behind competitors like Morgan Stanley.
UBS is facing a credit loss expense of approximately 150 million Swiss francs ($170 million) due to sluggish growth in Europe, particularly affecting Swiss corporates with export-import businesses. CFO Todd Tuckner noted that the integration of Credit Suisse is ongoing, with a pre-tax loss of $700 million expected in the final quarter. He expressed optimism about the bank's performance in Asia-Pacific and highlighted uncertainty surrounding new capital requirements in Switzerland.
Todd Tuckner
People
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
ubs auditor issues adverse opinion on financial reporting controls after credit suisse merger
United States Dollar
Credit Suisse Strategic Income I
PwrCor, Inc.
CHE
David Mathers
Todd Tuckner
Dixit Joshi
Show more
13:03 17.03.2025
ubs auditors issue adverse opinion on financial reporting controls after credit suisse merger
United States Dollar
Ernst & Young AG
Credit Suisse Strategic Income I
PwrCor, Inc.
USA
CHE
David Mathers
Todd Tuckner
Dixit Joshi
Show more
12:52 17.03.2025
ubs targets five trillion in assets amid advisor pay changes and reorganization
21:52 04.02.2025
ubs warns of broker attrition amid compensation plan changes
United States Dollar
Bank of America Corporation
UBS Group AG
Morgan Stanley
USA
CAN
CHE
Todd Tuckner
Show more
17:42 04.02.2025
ubs warns of profit retention increase due to new capital rules
11:23 04.02.2025
UBS faces high expectations ahead of 2024 financial results and integration update
Swiss Franc
Euro
United States Dollar
Credit Suisse Lux Digital Healt
USA
FRA
CHE
Sergio Ermotti
Todd Tuckner
Show more
16:00 03.02.2025
ubs to present fourth quarter and full year 2024 results on february 4
09:10 28.01.2025
ubs announces significant job cuts amid ongoing cost-saving measures
08:07 28.01.2025
ubs adjusts broker compensation plan to enhance profit margins in us
20:33 21.11.2024
ubs reports sluggish european growth leading to significant credit loss expense
20:10 21.11.2024
Trending
Subcategory
Stock Market Updates
Corporate News
Industry Trends
Banking Regulations
Finance Mergers & Acquisitions
Global Financial Events
Retail and Consumer Goods
Central Bank Actions
CEO Changes
GDP Growth & Recession Forecasts
Global Trade Developments
Industry Mergers & Acquisitions
Financial Scams and Security
Inflation and Monetary Impact
Market Analysis and Predictions
Government Policies
Government Economic Policies
Supply Chain Management
Domestic Politics
Startups & Entrepreneurship
Countries:
Companies:
The Goldman Sachs Group, Inc.
JPMorgan Chase & Co.
Tesla, Inc.
Apple Inc.
Bank of America Corporation
Barclays PLC
Wells Fargo & Company
Citigroup Inc.
Deutsche Bank Money Market PP
Morgan Stanley
Huawei Technologies CO. Ltd.
Lloyds Banking Group plc
Credit Suisse Strategic Income I
AXA SA
Safran SA
Banco Santander, S.A.
Novartis AG
NVIDIA Corporation
Swiss Re AG
Beazley plc
Currencies:
United States Dollar
Euro
Chinese Yuan
British Pound Sterling
Swiss Franc
Japanese Yen
Indian Rupee
Russian Ruble
Canadian Dollar
Australian Dollar
United Arab Emirates Dirham
Indonesian Rupiah
Saudi Riyal
South Korean Won
Danish Krone
Offshore Chinese Yuan
Hong Kong Dollar
Mexican Peso
Malaysian Ringgit
Vietnamese Đồng
People: