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MarketScreener Homepage  >  Equities  >  Swiss Exchange  >  UBS Group AG    UBSG   CH0244767585

UBS GROUP AG

(UBSG)
  Report
Delayed Quote. Delayed Swiss Exchange - 12/01 11:30:56 am
13.005 CHF   +0.89%
03:59pItaly's UniCredit says board would never agree to harmful deal
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12:09pGlobal equity markets jump, bonds dip, on hopes of vaccine-led recovery
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09:24aWPP : UBS gives a Buy rating
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UBS Profit Doubles on Trading Surge -- 2nd Update

10/20/2020 | 04:32am EST

By Margot Patrick

UBS Group AG said its net profit nearly doubled in the third quarter on a surge in client trading and deal making, freeing up cash for dividends and share buybacks despite the coronavirus pandemic.

The Swiss banking giant said Tuesday net profit rose to nearly $2.1 billion from $1.05 billion a year earlier. Loan losses in the period were $89 million, lower than the $268 million and $272 million provisions taken in the first and second quarters, and well below the levels of many rivals.

UBS said it set aside $1.5 billion to repurchase shares next year and has accrued $1 billion in cash for 2020 dividends. A delayed dividend from 2019 will be paid next month, UBS said. It had conserved the cash earlier this year after Swiss regulators asked banks to do so.

The results highlight a growing divide between stronger and weaker banks in Europe as the pandemic hits some countries and business models harder than others. UBS's investment bank, like others, is benefiting from higher-than-usual customer activity while its wealth-management arm has gained net new money from clients to invest as global wealth rebounds from a spring rout.

UBS said the pandemic has been changing the way clients interact with the bank, bringing more of them online through mobile-banking applications and other platforms. Its wealthy customers have also been on an "intensified search for returns," UBS said in a presentation, with some increasing their investments in private markets, an area that includes buying stock and lending money to companies that aren't publicly traded.

UBS's investment bank revenue jumped to $2.49 billion from $1.75 billion a year earlier, while global wealth-management revenue rose to $4.28 billion from $4.14 billion.

Most of UBS's lending is to the world's rich and to Swiss households and businesses, areas that have held up relatively well in the pandemic. Many large U.S. and European rivals, in contrast, have taken hefty provisions on their consumer and corporate loans to reflect weaker economic outlooks than in Switzerland.

That relatively insulated position has put UBS among Europe's healthiest banks in terms of returns on equity and its capital base. It has considered combining with smaller rival Credit Suisse, according to people familiar with the matter, and analysts expect it to be part of a burgeoning wave of banking consolidation in the region.

From Nov. 1, former ING Groep NV Chief Executive Ralph Hamers will take over from UBS's CEO of nine years, Sergio Ermotti. Mr. Ermotti on Tuesday said UBS has "all the options open" for more success under Mr. Hamers.

Under Mr. Ermotti, UBS shrank its investment bank and refocused on wealth management. It was regarded as a largely successful reinvention of the bank and the model has been copied by others, including Credit Suisse.

Because of its rosier prospects, UBS's share price has outperformed rivals this year and the broader European banks index.

Write to Margot Patrick at margot.patrick@wsj.com

(END) Dow Jones Newswires

10-20-20 0431ET

Stocks mentioned in the article
ChangeLast1st jan.
CREDIT SUISSE GROUP AG 1.39% 11.64 Delayed Quote.-12.40%
ING GROEP N.V. 2.21% 8.356 Delayed Quote.-23.51%
UBS GROUP AG 0.89% 13.005 Delayed Quote.5.44%
All news about UBS GROUP AG
03:59pItaly's UniCredit says board would never agree to harmful deal
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12:09pGlobal equity markets jump, bonds dip, on hopes of vaccine-led recovery
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09:24aWPP : UBS gives a Buy rating
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09:23aUNICREDIT SPA : UBS reiterates its Neutral rating
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08:01aADLER GROUP : UBS maintains a Buy rating
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08:00aIAG : Receives a Buy rating from UBS
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07:59aAIR FRANCE-KLM : UBS reaffirms its Neutral rating
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07:54aEASYJET : Buy rating from UBS
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07:53aRYANAIR HLDGS : UBS reaffirms its Neutral rating
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07:51aLUFTHANSA AG : Receives a Sell rating from UBS
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More news
Financials
Sales 2020 29 132 M 32 352 M 32 352 M
Net income 2020 5 190 M 5 764 M 5 764 M
Net cash 2020 7 811 M 8 674 M 8 674 M
P/E ratio 2020 9,20x
Yield 2020 2,88%
Capitalization 46 661 M 51 488 M 51 819 M
EV / Sales 2020 1,33x
EV / Sales 2021 1,38x
Nbr of Employees 71 230
Free-Float 92,9%
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Technical analysis trends UBS GROUP AG
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 22
Average target price 13,65 CHF
Last Close Price 13,01 CHF
Spread / Highest target 30,1%
Spread / Average Target 4,95%
Spread / Lowest Target -15,4%
EPS Revisions
Managers
NameTitle
Ralph A. J. G. Hamers Group Chief Executive Officer
Axel A. Weber Chairman
Sabine Keller-Busse Group Chief Operating Officer
Kirt Gardner Group Chief Financial Officer
Mike Dargan Chief Information Officer
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