UBS - UBS Group AG (UBS) Q1 2024 Earnings Call Transcript
2024-05-07 09:29:09 ET
UBS Group AG (UBS)
Q1 2024 Results Conference Call
May 07, 2024 03:00 AM ET
Company Participants
Sarah Mackey - Head, Investor Relations
Sergio Ermotti - Group Chief Executive Officer
Todd Tuckner - Group Chief Financial Officer
Conference Call Participants
Alastair Ryan - Bank of America
Chris Hallam - Goldman Sachs
Kian Abouhossein - JPMorgan
Giulia Miotto - Morgan Stanley
Jeremy Sigee - BNP Paribas Exane
Andy Coombs - Citigroup
Anke Reingen - RBC
Ben Goy - Deutsche Bank
Piers Brown - HSBC
Tom Hallett - KBW
Presentation
Operator
Ladies and gentlemen, good morning. Welcome to the UBS' First Quarter 2024 Results Presentation. The conference must not be recorded for publication or broadcast. [Operator Instructions]. At this time, it's my pleasure to hand over to Sarah Mackey, UBS Investor Relations. Please go ahead, madam.
Sarah Mackey
Good morning, and welcome, everyone. Before we start, I'd like to draw your attention to our cautionary statement slide at the back of today's results presentation. Please also refer to the risk factors filed with our group results today, together with additional disclosures in our SEC filings. On Slide 2, you can see our agenda for today.
It's now my pleasure to hand over to Sergio Ermotti, Group CEO.
Sergio Ermotti
Thank you, Sarah, and good morning, everyone. A little over a year ago, we were asked to play a critical role in stabilizing the Swiss and Global Financial Systems through the acquisition of Credit Suisse and we are delivering on our commitments. This quarter marks the return to reported net profit and capital accretion, a testament to the strength of our client franchises and significant progress on our integration plans.
Reported net profit was $1.8 billion with underlying PBT of $2.6 billion and an underlying return on CET1 capital of 9.6%. Our commitment to stay close to clients supported healthy revenue growth in our core businesses and flows across our asset gathering franchises. Meanwhile, we are executing on our restructuring plans at pace and actively winding down Noncore and Legacy assets. We also achieved another $1 billion annualized run rate gross cost savings during the quarter as we progress towards our $13 billion target.
As for the next significant integration milestones, we remain on track with our plans to simplify our legal entity structure. The merger of our parent banks is expected by the end of May and the transition to a single U.S. intermediate holding company is expected to occur shortly thereafter. The merger of our Swiss bank entities is set to take place before the end of the third quarter. All of this is subject to final regulatory approvals.
These critical milestones will facilitate the migration of clients onto UBS platforms beginning later this year and unlock the next phase of the cost, capital, funding and tax benefits from the second half of 2024 and more so by the end of 2025 and into 2026. Lastly, improvements in our CET1 capital ratio was supported by our optimization of risk-weighted assets. As a consequence, we remain well-positioned to deliver on our capital return targets for this year....
UBS Group AG (UBS) Q1 2024 Earnings Call Transcript