UBS Q1 2025: Net Profit Surges 80%, Far Exceeding Analyst Expectations
UBS reported a significant year-on-year increase in net profit for the first quarter of 2025, surpassing analyst expectations. The bank also provided details on its capital position, share buyback program, and outlook for the coming quarters.
Financial Results
For the first quarter of 2025, UBS reported a net profit attributable to shareholders of $3 billion. This represents an 80% increase compared to the same period in the previous year and exceeded the analyst consensus estimate of $2.8 billion.
The bank’s underlying profit before tax was $3.9 billion for the quarter, a 54% increase year-on-year, surpassing market expectations of $3.2 billion.
Capital Position and Share Buybacks
UBS’s Common Equity Tier 1 (CET1) capital ratio, a key measure of bank solvency, stood at 14.7% at the end of Q1 2025, an increase from 14.4% reported in the previous quarter.
During the first quarter, UBS repurchased $900 million in shares. The bank stated it remains on track to repurchase $3 billion in shares before its second-quarter earnings report and indicated plans for further buybacks by the end of the year.
Outlook and Guidance
UBS provided guidance for the second quarter of 2025, stating that net interest income in its global wealth management and personal and corporate banking divisions is expected to be "broadly flat."
The bank noted that while markets have shown resilience amid hopes for a resolution to geopolitical conflicts, risks remain elevated.
Background on Prior Quarter (Q4 2024)
In the preceding financial quarter (Q4 2024), UBS reported group revenues of $12.1 billion, a decrease from $12.8 billion in the prior quarter but an increase from $11.6 billion in the year-ago period.
Net profit attributable to shareholders for Q4 2024 was $1.2 billion, a 56% increase year-on-year and above analyst estimates of $919 million. The CET1 capital ratio for that quarter was 14.4%.
CEO Sergio Ermotti stated that group invested assets exceeded $7 trillion for the first time.
The bank also announced its intention to repurchase at least $3 billion of shares in 2026, with a possibility to exceed this amount. Ermotti, who is expected to step down in April after completing the Credit Suisse integration, commented on the bank's progress toward its 2026 targets.
Analyst Johann Scholtz of Morningstar described the Q4 2024 results as strong and noted UBS’s effective execution of the Credit Suisse integration, while also highlighting potential influence on the bank's share price from Swiss capital requirements rules.