Q3 2024 UBS Group AG Earnings Call Transcript
Key Points
- UBS Group AG (UBS) reported a strong financial performance with a net profit of $1.4 billion and an underlying PBT of $2.4 billion for the third quarter.
- The company achieved a 9% year-on-year increase in underlying revenues, with significant growth in the Americas and APAC regions.
- Invested assets across the group increased by 15% year on year to $6.2 trillion, indicating strong client trust and engagement.
- UBS successfully integrated client accounts and data in Luxembourg and Hong Kong onto its platforms, marking a significant milestone in its integration process.
- The Investment Bank division showed robust performance, particularly in equities, and maintained momentum in advisory, outperforming global M&A fee pools for the third consecutive quarter.
- UBS faced expected headwinds on net interest income in Switzerland, impacting overall revenue growth.
- Operating expenses increased by 2% quarter-on-quarter, partly due to currency effects and higher variable compensation linked to revenues.
- The company anticipates a sequential mid-single-digit percentage drop in net interest income in the fourth quarter due to expected rate cuts.
- UBS's noncore and legacy division reported a pretax loss of $333 million, highlighting ongoing challenges in winding down legacy positions.
- The company is navigating uncertainties related to global macroeconomic developments, geopolitical conflicts, and upcoming US elections, which could affect investor behavior.
Ladies and gentlemen, good morning. Welcome to the UBS third-quarter 2024 results presentation. (Operator Instructions)
At this time, it's my pleasure to hand over to Sarah Mackey, UBS Investor Relations. Please go ahead.
Good morning and welcome, everyone. Before we start, I would like to draw your attention to our cautionary statement slide at the back of today's results presentation. Please also refer to the risk factors included in our annual report, together with additional disclosures in our SEC filings.
On slide 2, you can see our agenda for today. It's now my pleasure to hand over to Sergio Ermotti, Group CEO.
Thank you, Sarah, and good morning, everyone. Our strong financial performance in the quarter with a net profit of $1.4 billion and an underlying PBT of $2.4 billion, together with our year-to-date results demonstrates the power of our
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