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UBS Group AG UBS Stock Quote

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Morningstar‘s Stock Analysis UBS

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Is it the right time to buy or sell?

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UBS Misses Consensus Estimates for the Quarter as Lower Valuations and Activity Levels Bite

Niklas Kammer, CFA Equity Analyst

Analyst Note

| Niklas Kammer, CFA |

Narrow-moat UBS reported second-quarter profits before tax of $2,615 million, missing the consensus estimate for the quarter of $3,049 million as collected by the bank itself. Compared with the same quarter a year ago, profits before tax increased by 1%. However, this was helped by a gain on a sale worth $848 million. Excluding this one-off, profits dropped about 32% year over year. Lower market valuations and lower client activities have been the culprits for this poor performance. Net fee and commission income dropped $783 million, or 14%, driven by lower activity in the investment bank, asset management, and global wealth management. We maintain our CHF 21.50 per-share fair value estimate despite this weaker-than-expected performance in the quarter. We don’t believe the risk aversion displayed by many of UBS’ clients over the last quarter will be the new normal. A recovery will take a couple of quarters, but we believe the underlying drivers behind UBS’ growth story remain intact.

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Key Statistics UBS

Company Profile UBS

Business Description

UBS is the world’s largest wealth manager and is the product of multiple mergers over the years. Apart from wealth and asset management, it operates a universal bank in Switzerland and a global investment bank.

Contact
Bahnhofstrasse 45
Zurich, CH-8001, Switzerland
T +41 442341111
Industry Banks - Diversified
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Stock Type
Employees 71,697

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