UBS Earnings Top Estimates as Credit Suisse Merger Helps Boost Revenue

UBS Group (UBS) shares rose Wednesday after the Swiss banking giant’s second-quarter earnings beat estimates, thanks to growth in its wealth management divisions and savings created as it merges operations with Credit Suisse.

UBS generated more revenue than analysts expected with $11.9 billion for the quarter, while net interest income (NII) came in at $1.54 billion, below estimates compiled by Visible Alpha. UBS reported $1.18 billion in profits, more than double analysts’ expectations.

UBS Says It’s Well-Positioned To Meet Targets

“Our first-half results reflect the significant progress we have made since the closing of the acquisition as we deliver on all of our commitments to stakeholders,” UBS Group CEO Sergio Ermotti said. “We are well positioned to meet our financial targets and return to the levels of profitability we delivered before being asked to step in and stabilize Credit Suisse.”

However, UBS warned the macroeconomic outlook heading into the second half of the year could be “clouded by ongoing conflicts, other geopolitical tensions and the upcoming US elections.”

The bank said it created nearly $1 billion in gross cost savings in the second quarter, projecting to finish 2024 more than halfway towards its goal of creating $13 billion in savings by the end of 2026. As the bank continues its merger with Credit Suisse, it expects to take on about $1.1 billion in “integration-related expenses” in the third quarter.

UBS shares rose just over 3% to $30.18 in pre-market trading Wednesday following the release.