Education
About Us
Working with TipRanks
Follow Us
Ubs Group (CH:UBSG)
:UBSG
Top Page
UBS Group AG
(NYSE:UBSG)
Rating:73Outperform
Price Target:―
Positive Factors
Earnings Growth
Global Wealth Management unit is expected to be a key driver of profit growth and return improvement, contributing significantly to group pre-tax earnings growth.
Investment Banking Performance
Investment banking revenues drive beat with IB revenues up 20% QoQ and well ahead of consensus.
Net Profit
UBS reported a 1Q net profit of $1,692m vs. $1,482m BofA estimate and $1,299m from consensus.
Negative Factors
Capital Requirements
The price target for UBS has been lowered due to changes in capital requirements and expected mitigating actions.
Price Target
The analyst's price target for UBS has been reduced from SFr 28.00 to SFr 26.00, indicating a less optimistic outlook.
Regulatory Uncertainty
Uncertainty around capital requirements and mitigating actions is expected to continue affecting the share price negatively.
UBS Group AG (UBSG) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF85.37B
Dividend Yield2.78%
Average Volume (3M)7.09M
Price to Earnings (P/E)19.1
Beta (1Y)1.47
Revenue Growth-6.01%
EPS GrowthN/A
CountryCH
Employees106,789
SectorFinancial
Sector Strength79
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.42
Shares Outstanding3,341,581,800
10 Day Avg. Volume8,012,113
30 Day Avg. Volume7,091,374
Financial Highlights & Ratios
PEG Ratio-1.01
Price to Book (P/B)0.85
Price to Sales (P/S)0.00
P/FCF Ratio2.55
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue0.64
Enterprise Value/Gross Profit2.55
Enterprise Value/Ebitda3.40
Forecast
1Y Price Target
CHF30.22Price Target Upside12.85% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
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:Apr 30, 2025
(Q1-2025)
| % Change Since: 7.25%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with robust profit and inflows countered by flat revenue, lower net interest income, and challenges related to global tariffs and the Personal and Corporate Banking sector. While there were significant achievements in integration and cost savings, uncertainties in the broader economic environment and specific underperforming sectors were notable.Q1-2025 Updates
Positive Updates
Strong First Quarter Profit
First quarter net profit reached $1.7 billion, and the return on CET1 capital was 11.3%, supported by positive operating leverage in core businesses.
Robust Net New Inflows
Net new inflows were strong, with $32 billion in Global Wealth Management and $7 billion in asset management.
Record Global Markets Performance
Global markets achieved its best quarter on record, with strong performance in equities and FX.
Progress in Credit Suisse Integration
Significant progress was made in integrating Credit Suisse, with over 1 million clients prepared to migrate to UBS platforms.
Capital Strength and Share Buyback
CET1 capital ratio stood at 14.3%, and a $3 billion share buyback plan was announced for 2025.
Cost Savings Achieved
An additional $900 million in gross run rate cost saves achieved, with a cumulative total of $8.4 billion since the end of 2022.
Negative Updates
Reduced Group Revenue
Group revenue was broadly flat at $12 billion, with a slight decrease in profit before tax by 1% year-on-year.
Lower Net Interest Income
Net interest income in Global Wealth Management decreased by 4% year-over-year and 7% quarter-over-quarter.
Challenges with Tariff Impact
The prospect of higher tariffs on global trade presents a material risk to global growth and inflation, causing uncertainty.
Pressure on Personal and Corporate Banking
The Personal and Corporate Banking division experienced a 23% decrease in pretax profit due to lower interest rates.
Non-Core and Legacy Unit Underperformance
Non-core and legacy unit reported a pretax loss of $200 million, with the expectation of further losses throughout the year.
Company Guidance
During the UBS First Quarter 2025 Results call, CEO Sergio Ermotti highlighted a robust net profit of $1.7 billion and an underlying return on CET1 capital of 11.3%. UBS saw $32 billion in net new assets in Global Wealth Management and $7 billion in Asset Management, reflecting strong asset gathering. The Investment Bank had a record quarter in global markets, while the CET1 ratio stood at 14.3%. UBS plans to continue its $3 billion share buyback, contingent on maintaining a CET1 capital ratio of around 14%. The group’s cost/income ratio was 77.4%, with a group profit before tax of $2.6 billion, despite a challenging market environment. Looking forward, UBS remains committed to executing its growth strategy while navigating ongoing market volatility.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 | 45.76B | 45.81B | 39.06B | 33.27B | 35.06B | 33.08B |
| Gross Profit | 45.76B | 45.81B | 39.06B | 33.27B | 35.06B | 33.08B |
| EBITDA | 6.79B | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 5.02B | 5.09B | 27.85B | 7.63B | 7.46B | 6.56B |
Balance Sheet | ||||||
| Total Assets | 1.54T | 1.57T | 1.72T | 1.10T | 1.12T | 1.13T |
| Cash, Cash Equivalents and Short-Term Investments | 237.04B | 225.52B | 329.38B | 171.68B | 203.64B | 166.49B |
| Total Debt | 336.14B | 332.42B | 366.11B | 193.28B | 218.64B | 200.47B |
| Total Liabilities | 1.46T | 1.48T | 1.63T | 1.05T | 1.06T | 1.07T |
| Stockholders Equity | 87.19B | 85.08B | 86.11B | 56.88B | 60.66B | 59.52B |
Cash Flow | ||||||
| Free Cash Flow | 4.96B | 1.27B | 84.38B | 13.00B | 29.58B | 35.10B |
| Operating Cash Flow | 7.11B | 3.28B | 86.07B | 14.65B | 31.43B | 36.96B |
| Investing Cash Flow | -7.77B | 709.00M | 103.23B | -12.45B | -2.12B | -6.79B |
| Financing Cash Flow | -46.30B | -84.17B | -58.26B | -9.09B | 10.35B | 12.43B |
UBS Group AG Technical Analysis
Positive
26.78
Price Trends
25.84
Positive
26.75
Positive
27.00
Negative
Market Momentum
-0.08
Negative
56.65
Neutral
85.76
Negative
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 26.78 is above the 20-day moving average (MA) of 26.21, above the 50-day MA of 25.84, and below the 200-day MA of 27.00, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 56.65 is Neutral, neither overbought nor oversold. The STOCH value of 85.76 is Negative, 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | CHF85.37B | 19.15 | 5.83% | 2.78% | -6.01% | ― | |
71 Outperform | CHF26.15B | 23.08 | 3.43% | 9.45% | 12.15% | ||
67 Neutral | $16.66B | 11.44 | 9.71% | 3.92% | 11.61% | -10.70% | |
66 Neutral | CHF10.61B | 10.82 | 4.90% | 7.69% | 126.15% | ||
| $5.53B | 15.84 | 13.89% | 3.77% | ― | ― | ||
| $4.39B | 14.43 | 12.22% | 4.63% | ― | ― | ||
| CHF6.54B | 22.42 | 1.09% | ― | ― |
* Financial Sector Average
Performance Comparison
CH:UBSG
UBS Group AG
26.78
0.65
2.47%
CH:PGHN
Partners Group Holding AG
1,030.00
-74.85
-6.77%
CH:BAER
Julius Baer Group Ltd
53.82
5.48
11.34%
EFGIF
EFG International AG
18.37
4.06
28.37%
VONHF
Vontobel Holding AG
80.01
23.04
40.44%
CH:SQN
Swissquote Group Holding Ltd.
441.60
159.84
56.73%
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.