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UBS Group AG (CH:UBSG)
:UBSG
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UBS Group AG
(NYSE:UBSG)
Rating:73Outperform
Price Target:―
Positive Factors
Asset Growth
Global Wealth Management assets under management are forecasted to rise, supported by higher equity index levels.
Capital Markets Activity
Capital markets activity has bounced back driving global banking revenues up.
Global Wealth Management
Operating trends have been improving in Global Wealth Management on the back of positive net inflows and solid market performance.
Negative Factors
Capital Requirements
Uncertainty around capital requirements and mitigating actions is expected to continue affecting the share price negatively.
Currency Impact
The recent weakening of the USD is expected to drive an adverse impact on underlying operating expenses.
Earnings Trends
UBS has underperformed due to weaker underlying earnings trends compared to European banks.
UBS Group AG (UBSG) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
$102.90B
Dividend Yield2.27%
Average Volume (3M)6.82M
Price to Earnings (P/E)19.0
Beta (1Y)1.51
Revenue Growth-8.70%
EPS Growth747.86%
CountryCH
Employees106,789
SectorFinancial
Sector Strength73
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.58
Shares Outstanding3,341,581,800
10 Day Avg. Volume5,296,503
30 Day Avg. Volume6,819,395
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.13
Enterprise Value/Revenue3.71
Enterprise Value/Gross Profit4.87
Enterprise Value/Ebitda28.82
Forecast
1Y Price Target
$33.70Price Target Upside3.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
UBS Group AG Business Overview & Revenue Model
Company DescriptionUBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through four divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, and Investment Bank. The Global Wealth Management division offers investment advice and solutions, and lending solutions to ultra high net worth and high net worth clients. This segment also provides estate and wealth planning, investing, philanthropy, corporate and banking, and family advisory services, as well as mortgage, securities-based, and structured lending solutions. The Personal & Corporate Banking division provides personal banking products and services, such as deposits, cards, and online and mobile banking, as well as lending, investments, and retirement services; and corporate and institutional solutions, including equity and debt capital markets, syndicated and structured credit, private placements, leasing, traditional financing, trade and export finance, and global custody solutions, as well as transaction banking solutions for payment and cash management. The Asset Management division offers equities, fixed income, hedge funds, real estate and private markets, indexed and alternative beta strategies, asset allocation and currency investment strategies, customized multi-asset solutions, advisory and fiduciary services, and multi-manager hedge fund solutions and advisory services. The Investment Bank division advises clients on strategic business opportunities and helps them raise capital to fund their activities; enables its clients to buy, sell, and finance securities on capital markets and to manage their risks and liquidity; and offers clients differentiated content on major financial markets and securities. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is based in Zurich, Switzerland.
How the Company Makes MoneyUBS Group AG generates revenue through various key streams. The wealth management division is a significant contributor, earning fees from advisory services, portfolio management, and brokerage services. The investment banking division derives income from underwriting, advisory fees, trading, and capital markets activities. The asset management division earns fees from managing a wide range of investment products for institutional and individual clients. Retail banking services, primarily in Switzerland, provide additional revenue through traditional banking activities such as lending and deposit services. Strategic partnerships and collaborations with other financial institutions also enhance UBS's capabilities and revenue potential.
UBS Group AG Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in several areas, including significant profit growth in Global Wealth Management and record performance in the Investment Bank. However, the overall group profit declined slightly, with challenges in Personal and Corporate Banking due to interest rate impacts. The call also noted ongoing integration efforts and regulatory uncertainties. Despite these challenges, the company remains optimistic about its growth strategy and cost management successes.Q1-2025 Updates
Positive Updates
Strong First Quarter Net Profit
First quarter net profit reached $1.7 billion, with a return on CET1 capital of 11.3% and robust net new inflows including $32 billion in Global Wealth Management and $7 billion in asset management.
Investment Bank Performance
Global markets achieved its best quarter on record, with a 24% increase in revenues driven by equities and FX. The Investment Bank delivered a pretax profit of $696 million, up 72% year-over-year.
Cost Management and Savings
Achieved an additional $900 million in gross run rate cost saves, with overall costs down by 10% from the 2022 baseline and underlying expenses reduced by more than 20%.
Positive Developments in Global Wealth Management
Global Wealth Management's pretax profit was $1.5 billion, up 21% year-over-year with significant growth in the Americas and APAC regions.
Asset Management Growth
Asset Management showed a 15% increase in pretax profit, with strong net new commitments and a 13% growth in invested assets year-over-year.
Negative Updates
Overall Group Profit Decline
Group profit before tax was $2.6 billion, a decrease of 1% year-on-year, with group revenues broadly flat at $12 billion.
Interest Rate Impact on Personal and Corporate Banking
P&C's pretax profit declined by 23% due to lower interest rates, resulting in an 18% reduction in net interest income.
Integration and Regulatory Uncertainty
Challenges remain with the ongoing integration of Credit Suisse and potential impacts of regulatory changes that could affect capital returns.
High Operating Expenses in the Investment Bank
Investment Bank operating expenses increased by 14% mainly due to personnel expenses.
Market Volatility and Economic Uncertainty
Increased tariffs and economic uncertainty are expected to affect sentiment, leading to potential delays in business and investment decisions.
Company Guidance
In the first quarter of 2025, UBS delivered a strong financial performance with a net profit of $1.7 billion and an underlying return on CET1 capital of 11.3%, supported by positive operating leverage across core businesses. The group reported $32 billion in net new assets in Global Wealth Management and $7 billion in asset management. UBS's CET1 capital ratio stood at 14.3%, aligning with guidance, while the group maintained a cost/income ratio of 77.4%. Operating expenses were stable at $9.2 billion, and group revenues remained flat at $12 billion, with core franchises experiencing a 6% increase. UBS also achieved $900 million in gross run rate cost savings during the quarter, contributing to a cumulative total of $8.4 billion since the end of 2022. The investment bank reported its best quarter on record for global markets, while the group continued to integrate Credit Suisse, with substantial progress in client migrations and data integration. Despite market volatility and economic uncertainties, UBS remained focused on executing its growth strategy and enhancing client offerings across regions.UBS Group AG Financial Statement Overview
Summary
UBS Group AG exhibits a strong financial position with stable profitability and effective cash flow management. Despite high leverage, the company is well-positioned in the diversified banking sector with opportunities for growth.Income Statement
UBS Group AG demonstrates strong profitability with a stable gross profit margin, despite a slight decrease in total revenue in TTM (Trailing-Twelve-Months). Notably, the net profit margin of 10.98% for TTM is commendable, indicating effective cost management. However, the revenue growth rate presents a minor concern with a slight decline compared to the previous year.85
Very Positive
Balance Sheet
The balance sheet reflects solid equity with a debt-to-equity ratio of 3.85, which is relatively high, suggesting significant leverage. However, the equity ratio of 5.65% indicates a stable capital structure. UBS maintains a strong cash position, crucial for liquidity management in a diversified bank.75
Positive
Cash Flow
The cash flow statement shows healthy free cash flow growth, supported by a robust operating cash flow to net income ratio of 1.42 for TTM. Despite a decrease in free cash flow in TTM, UBS's effective cash flow management ensures sufficient liquidity for operations and investments.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 59.17B | 45.81B | 39.06B | 33.27B | 35.06B | 33.08B |
| Gross Profit | 45.14B | 45.81B | 39.06B | 33.27B | 35.06B | 33.08B |
| EBITDA | 7.62B | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 6.28B | 5.09B | 27.85B | 7.63B | 7.46B | 6.56B |
Balance Sheet | ||||||
| Total Assets | 1.67T | 1.57T | 1.72T | 1.10T | 1.12T | 1.13T |
| Cash, Cash Equivalents and Short-Term Investments | 245.66B | 227.90B | 329.38B | 171.68B | 203.64B | 166.49B |
| Total Debt | 368.72B | 353.05B | 366.11B | 193.28B | 218.64B | 200.47B |
| Total Liabilities | 1.58T | 1.48T | 1.63T | 1.05T | 1.06T | 1.07T |
| Stockholders Equity | 89.28B | 85.08B | 86.11B | 56.88B | 60.66B | 59.52B |
Cash Flow | ||||||
| Free Cash Flow | 10.11B | 1.27B | 84.38B | 13.00B | 29.58B | 35.10B |
| Operating Cash Flow | 12.31B | 3.28B | 86.07B | 14.65B | 31.43B | 36.96B |
| Investing Cash Flow | -15.99B | 709.00M | 103.23B | -12.45B | -2.12B | -6.79B |
| Financing Cash Flow | -35.02B | -84.17B | -58.26B | -9.09B | 10.35B | 12.43B |
UBS Group AG Technical Analysis
Positive
32.58
Price Trends
29.52
Positive
27.44
Positive
27.88
Positive
Market Momentum
0.79
Positive
74.27
Negative
74.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:UBSG, the sentiment is Positive. The current price of 32.58 is above the 20-day moving average (MA) of 31.74, above the 50-day MA of 29.52, and above the 200-day MA of 27.88, indicating a bullish trend. The MACD of 0.79 indicates Positive momentum. The RSI at 74.27 is Negative, neither overbought nor oversold. The STOCH value of 74.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:UBSG.
UBS Group AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $102.90B | 19.04 | 7.27% | 2.27% | -8.70% | 747.86% | |
72 Outperform | CHF28.68B | 25.51 | 3.77% | 9.45% | 12.15% | ||
68 Neutral | $17.84B | 12.03 | 10.32% | 3.73% | 9.70% | 0.76% | |
66 Neutral | CHF12.05B | 14.16 | 4.42% | 1.02% | 131.90% | ||
| ― | $5.85B | 14.27 | 19.05% | 3.51% | ― | ― | |
| ― | $102.55B | 17.97 | 23.97% | 4.56% | ― | ― | |
| ― | $49.11B | 14.31 | 17.22% | 4.07% | ― | ― |
* Financial Sector Average
Performance Comparison
CH:UBSG
UBS Group AG
32.58
7.33
29.02%
CH:PGHN
Partners Group Holding AG
1,115.00
-63.02
-5.35%
CH:BAER
Julius Baer Group Ltd
58.70
11.65
24.76%
EFGIF
EFG International AG
20.12
6.43
46.97%
ZFSVF
Zurich Insurance Group
737.70
191.40
35.04%
SSREF
Swiss Re AG
181.70
50.33
38.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.