UBS Sees Uptick in Q4 Profit, But Falls Below Expectations
- This shortfall was largely thanks to its wealth management division and weaker investment bank earnings.
UBS has revealed an ever-so-slight yearly increase in its pre-tax profit for the fourth quarter of 2018 today. However, even though the multinational firm still managed to report a jump in profits, it still fell short of analyst estimates.
This shortfall was largely thanks to its wealth management division, which noted $8 billion in outflows during the fourth quarter. The company’s investment bank, which managed to buoy UBS during the second and third quarter, also saw weaker earnings during the period.
Sergio P. Ermotti
Source: UBS
Commenting on the fourth quarter results, Group Chief Executive Officer Sergio Ermotti said: “The strength of our strategic choices and diversified franchise once again came through in the fourth quarter, as we delivered a resilient performance despite historically tough market conditions.”
Specifically, during Q4 of 2018, UBS reported a profit before tax of $862 million, which represents a two percent increase when measured against the prior year period. Adjusted profit before tax for the fourth quarter was $860 million.
Taking a look at UBS’ investment bank, adjusted profit before tax was $26 million in Q4, an 84 percent increase year-on-year. From the unit, foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term), rates and credit increased by 14 percent on a yearly basis. According to the statement, forex results offset more subdued credit revenues.
UBS full-year results paint a brighter picture
For the full year of 2018, the results look a lot more optimistic. Profit before tax was $6.4 billion on an adjusted basis in 2018, which also represents an increase of two percent year-on-year.
Group profit before tax was also up by 19 percent for 2018 when measured against the prior year. This was driven by higher operating income and lower operating expenses. More notably, net profit for the whole of 2018 was $4.9 billion. This is an increase of 25 percent when compared with 2017.
For the full year, the investment bank unit achieved an adjusted profit before tax of $1.8 billion. This translates to a growth of 20 percent year-on-year.
UBS has revealed an ever-so-slight yearly increase in its pre-tax profit for the fourth quarter of 2018 today. However, even though the multinational firm still managed to report a jump in profits, it still fell short of analyst estimates.
This shortfall was largely thanks to its wealth management division, which noted $8 billion in outflows during the fourth quarter. The company’s investment bank, which managed to buoy UBS during the second and third quarter, also saw weaker earnings during the period.
Sergio P. Ermotti
Source: UBS
Commenting on the fourth quarter results, Group Chief Executive Officer Sergio Ermotti said: “The strength of our strategic choices and diversified franchise once again came through in the fourth quarter, as we delivered a resilient performance despite historically tough market conditions.”
Specifically, during Q4 of 2018, UBS reported a profit before tax of $862 million, which represents a two percent increase when measured against the prior year period. Adjusted profit before tax for the fourth quarter was $860 million.
Taking a look at UBS’ investment bank, adjusted profit before tax was $26 million in Q4, an 84 percent increase year-on-year. From the unit, foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term), rates and credit increased by 14 percent on a yearly basis. According to the statement, forex results offset more subdued credit revenues.
UBS full-year results paint a brighter picture
For the full year of 2018, the results look a lot more optimistic. Profit before tax was $6.4 billion on an adjusted basis in 2018, which also represents an increase of two percent year-on-year.
Group profit before tax was also up by 19 percent for 2018 when measured against the prior year. This was driven by higher operating income and lower operating expenses. More notably, net profit for the whole of 2018 was $4.9 billion. This is an increase of 25 percent when compared with 2017.
For the full year, the investment bank unit achieved an adjusted profit before tax of $1.8 billion. This translates to a growth of 20 percent year-on-year.