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UBS (UBS) Down 0.4% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for UBS (UBS - Free Report) . Shares have lost about 0.4% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is UBS due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

UBS Q4 Earnings Improve Y/Y, Revenues & Expenses Decline

UBS Group AG reported fourth-quarter 2022 net profit attributable to shareholders of $1.65 billion, up 22.6% from the prior-year quarter.

The company’s quarterly performance was aided by a decline in expenses. However, lower revenues acted as a headwind.

The performances of the Global Wealth Management and the Personal & Corporate Banking divisions were impressive. However, the Asset Management arm and the Investment Bank did not perform well.

Total Revenues & Expenses Decline

UBS’s total revenues decreased 7.8% from the prior-year quarter to $8.03 billion.

Operating expenses decreased 13.1% year over year to $6.09 billion.

UBS reported total credit loss expenses of $7 million in the quarter against a release of $27 million witnessed in the year-ago quarter.

Business Divisions’ Performance

Global Wealth Management’s fourth-quarter operating profit before tax was $1.06 billion, up 87.9% year over year. The rise was driven by an increase in net interest income and other income.

Asset Management’s operating profit declined 62.9% year over year to $124 million. The fall was mainly due to a decline in total revenues.

Personal & Corporate Banking reported an operating profit before tax of $529 million, up 44.9% year over year. The rise was driven by an increase in revenues and lower expenses.

The Investment Bank unit’s operating profit before tax was $112 million, down 84.3% from the prior-year quarter. The fall was due to a decline in total revenues in global banking, as well as the global markets business arm.

Group Functions reported an operating profit before tax of $114 million in the reported quarter against a loss of $246 million in the year-ago quarter.

Capital Position Decent

Total assets decreased marginally from the end of the previous quarter to $1.10 trillion.

CET1 capital increased marginally year over year to $45.46 billion. As of Dec 31, 2022, UBS's invested assets were $3.96 trillion, down 13.9% year over year.

UBS’s return on CET1 capital was 14.7% as of Dec 31, 2022, compared with 11.9% as of Dec 31, 2021.

The risk-weighted assets increased 5.7% year over year to $319.6 billion.

Share Repurchase Update

In 2022, the company repurchased $5.6 billion of common stock under its 2022 share repurchase program.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.


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