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What's in Store for UBS Group (UBS) This Earnings Season?

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UBS Group AG (UBS - Free Report) is scheduled to report second-quarter 2018 results on Jul 24, before the market opens.

The Swiss banking giant’s first-quarter 2018 net profit attributable to common shareholders increased 19% year over year. Results primarily benefited from increase in net fees and commissions and net interest income. However, rise in expenses remained the main concern.

Looking at the price performance, UBS Group stock has lost 4.9% in three months’ time, compared with 7.1% decline of its industry.

Will the stock’s performance improve post second-quarter earnings release? This majorly depends on whether the firm is able to impress the market with its results.

Factors That Might Influence Q2 Results

Net Interest income Might Remain Stable: UBS Group’s top line is likely to benefit from the gradually rising U.S. interest rates. While the company’s net interest income might get a boost from this, continued negative interest rate environment in domestic economy might offset the benefit to some extent.

Fee Income Might Increase Slightly: The company is likely to have earned higher advisory and underwriting revenues due to an increase in overall global M&A activities and equity issuances during the quarter.

Expenses Likely to Rise: UBS Group continues to make investments in technology, which is likely to have kept costs up during the quarter.

UBS Group AG Price and Consensus

UBS Group currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other foreign banks, Royal Bank of Scotland Group and Barclays (BCS - Free Report) are scheduled to report results on Aug 3 and Aug 2, respectively, while Santander Consumer USA Holdings will report second-quarter earnings on Jul 25.

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