UBS Group AG (NYSE:UBS) shares are trading lower on Wednesday. The Swiss bank reported first-quarter 2025 sales of $12.56 billion. This marked a 1% year-over-year decline and fell short of the $12.99 billion consensus estimate.
Underlying revenues declined slightly Y/Y to $11.9 billion. Underlying revenues from the core businesses rose 6% Y/Y, while revenues in the much-reduced Noncore and Legacy division declined 72% Y/Y.
Underlying operating profit before tax reached $2.59 billion, down 1% Y/Y in the quarter.
Global Wealth Management’s net new assets for the quarter were $32 billion, with revenues rising 5% Y/Y to $6.25 billion.
The group posted a net profit attributable to shareholders of $1.69 billion for the quarter vs. $1.76 billion a year ago quarter. EPS of 51 cents beat the consensus of 41 cents.
The CET1 capital ratio, a measure of bank liquidity, was 14.3%, compared to 14.8% in the year-ago quarter.
UBS CEO Sergio P. Ermotti stated, “The power and scale of our diversified global franchise, coupled with our continued focus on clients, drove strong business momentum in the quarter and net new inflows in our asset-gathering businesses.”
“With increased uncertainty in markets and the macroeconomic outlook, we continue to focus on supporting clients, delivering on our financial targets, and acting as an engine of economic growth in the communities we serve.”
Buyback: The bank completed share buybacks worth $0.5 billion and reserved $2.5 billion for planned share repurchases for the remainder of 2025.
Outlook: In the second quarter, UBS anticipates a low-single-digit percentage sequential decline in net interest income (NII) within Global Wealth Management and a similar decrease in Swiss franc terms for Personal & Corporate Banking’s NII.
Meanwhile, Personal & Corporate Banking’s NII is expected to increase sequentially by a mid-single-digit percentage in USD terms.
The bank noted that the continued market uncertainty could potentially delay the execution of their Global Banking pipeline.
Pull-to-par revenues are projected to reach $0.6 billion, which is anticipated to offset the expected $1.1 billion in integration-related expenses partly.
Investors can gain exposure to the stock via the Avantis International Equity ETF (NYSE:AVDE) and the Elevation Series Trust The Opal International Dividend Income ETF (BATS:IDVZ).
Price Action: UBS shares are down 1.57% at $30.03 at the last check Wednesday.
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