UBS Group AG Earnings - Q1 2025 Analysis
Positives
- Recurring net fee income increased by 3%, driven by record volumes of investment products and personal banking, supported by strong sales momentum, including a 12% annualized growth rate in net new investment flows in Q1.
- The company saw increases across all regions, with the Americas, APAC, and Switzerland each delivering their best quarterly performance on record.
- The company is pleased with its strong performance in Q1 and continues to operate from a position of strength.
- The company is gaining traction in delivering differentiated and higher margin products, including in its credit investments group and in UGA, which saw strong net new commitments in Q1 and invested asset growth of 13% compared to a year ago.
- The company's strong results in Q1 demonstrate its ability to deliver for stakeholders in different market conditions.
Q&A Highlights - Q1 2025
Analyst asked about how wealth management clients in different regions are reacting in April post the tariffs in the US.
The company saw a huge spike in client activity and volatility in the first couple of weeks in April, achieving a 30% increase compared to the peak of COVID times. However, the last 10 days or so have seen a fatigue coming in, with markets stabilizing around current levels and a more normalized environment emerging.
Analyst asked about the clarity of the report.
The company doesn't expect clarity, but hopes for it.
