2Q24 results were out for UBS in Switzerland just as our market was closing yesterday, and overall, they were stronger than expected, with shares trading 5.6% higher overnight. While profit for the quarter was about twice expectations, the focus was more on the integration of Credit Suisse, which is on track, resulting in faster cost savings and the sell-off of non-core assets, though, they implied regulatory processes were still taking time.
Operationally, their asset management business was the highlight, more than offsetting slight misses in Wealth Management and personal and corporate banking. They have guided to lower margins in Wealth Management for Q3; having to pay staff more one of the underlying reasons.
- A solid update from UBS, which remains a core holding in the International Equities Portfolio. We think they will eventually become the world’s No 1 Global Wealth Management business.
MM is long and bullish UBS US
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