The quarterly report of UBS Group AG resulted in a drop in shares
January 31, 2023 4:20 pm
Today, it was reported that UBS Group AG had a profit for the fourth quarter that was more than expected, yet the stock price fell. As rising interest rates helped offset a decline in fees and transaction revenue in its major asset management sector, the corporation announced it expects to repurchase shares worth more than $5 billion this year.
A 35 percent increase in interest revenue in its asset management division helped the Zurich-based bank achieve a net profit of $1.65 billion. The bank reported raising $23.3 billion in capital, and thus the profit was usually in line with forecasts. However, compared to the previous year, the investment division’s revenue fell by 24%.
Although UBS differs from its international rivals in its confidence that the widespread job cuts seen by Goldman Sachs Group Inc. and other businesses can be avoided, it is nonetheless dealing with the effects of sluggish customer demand and market volatility.
CEO Ralph Hamers stated on Tuesday that the results were “very good, especially against the backdrop of a challenging macroeconomic environment, steady inflation, the Russian-Ukrainian conflict, the impact of COVID on China, and other geopolitical difficulties.” Investment banking at UBS generated $1.68 billion in revenue in the fourth quarter, 24% less than it did a year earlier. Operating costs rose by 3% as a result of higher variable compensation.
It is important to note that UBS aims to increase its presence in the Middle East, with a focus on the area’s wealthy Indian population. The Swiss bank experienced substantial inflows into its Asian asset management division in the final three months of 2022 as wealthy clients fled from its main rival. Customers of Credit Suisse are switching to UBS as a wealth management option because they are worried about the instability the bank is going through.
Premarket
In the premarket, NXP Semiconductors NV shares dropped by more than 4% following a poor first-quarter outlook. Following disappointing earnings reports, shares of Exxon Mobil Corp., Caterpillar Inc., and Pfizer Inc. all fell. Positively, General Motors Co. increased more than 5% after reporting expectations that were better than expected by economists.
Shares of Swiss lender UBS Group AG dropped more than 3% after reporting a decline in revenue in its core asset management unit, one of the various moves in Europe. Shares of Italian lender Unicredit SpA increased after it reported a higher-than-expected profit.
The value of Samsung Electronics Co. shares dropped by about 3.5%. Profits fell as a result of weaker demand for memory cards, cellphones, and semiconductors.
Shares of Alibaba Group Holding Ltd. dropped by around 10% in Hong Kong on worries that China’s consumer demand rebound may fall short of high hopes.
Regarding the S&P 500’s technical picture, despite the correction, the odds are still in favor of buyers. The index may rise further, but this requires recovery to the level of $4,010. Controlling $4,038 will be no less of a priority for the bulls. We can therefore anticipate a more assured upward movement to support the trading instrument at $4,064 just after that. The level of $4,091 is a little higher and will be challenging to surpass. Buyers just need to declare themselves in the area of $3,980 in the event of a downward movement and lack of demand. When it breaks down, the trading instrument will move quickly to $3,960 and provide a path to $3,923.
The material has been provided by InstaForex Company – www.instaforex.com
Today, it was reported that UBS Group AG had a profit for the fourth quarter that was more than expected, yet the stock price fell. As rising interest rates helped offset a decline in fees and transaction revenue in its major asset management sector, the corporation announced it expects to repurchase shares worth more than $5 billion this year.
A 35 percent increase in interest revenue in its asset management division helped the Zurich-based bank achieve a net profit of $1.65 billion. The bank reported raising $23.3 billion in capital, and thus the profit was usually in line with forecasts. However, compared to the previous year, the investment division’s revenue fell by 24%.
Although UBS differs from its international rivals in its confidence that the widespread job cuts seen by Goldman Sachs Group Inc. and other businesses can be avoided, it is nonetheless dealing with the effects of sluggish customer demand and market volatility.
CEO Ralph Hamers stated on Tuesday that the results were “very good, especially against the backdrop of a challenging macroeconomic environment, steady inflation, the Russian-Ukrainian conflict, the impact of COVID on China, and other geopolitical difficulties.” Investment banking at UBS generated $1.68 billion in revenue in the fourth quarter, 24% less than it did a year earlier. Operating costs rose by 3% as a result of higher variable compensation.
It is important to note that UBS aims to increase its presence in the Middle East, with a focus on the area’s wealthy Indian population. The Swiss bank experienced substantial inflows into its Asian asset management division in the final three months of 2022 as wealthy clients fled from its main rival. Customers of Credit Suisse are switching to UBS as a wealth management option because they are worried about the instability the bank is going through.
Premarket
In the premarket, NXP Semiconductors NV shares dropped by more than 4% following a poor first-quarter outlook. Following disappointing earnings reports, shares of Exxon Mobil Corp., Caterpillar Inc., and Pfizer Inc. all fell. Positively, General Motors Co. increased more than 5% after reporting expectations that were better than expected by economists.
Shares of Swiss lender UBS Group AG dropped more than 3% after reporting a decline in revenue in its core asset management unit, one of the various moves in Europe. Shares of Italian lender Unicredit SpA increased after it reported a higher-than-expected profit.
The value of Samsung Electronics Co. shares dropped by about 3.5%. Profits fell as a result of weaker demand for memory cards, cellphones, and semiconductors.
Shares of Alibaba Group Holding Ltd. dropped by around 10% in Hong Kong on worries that China’s consumer demand rebound may fall short of high hopes.
Regarding the S&P 500’s technical picture, despite the correction, the odds are still in favor of buyers. The index may rise further, but this requires recovery to the level of $4,010. Controlling $4,038 will be no less of a priority for the bulls. We can therefore anticipate a more assured upward movement to support the trading instrument at $4,064 just after that. The level of $4,091 is a little higher and will be challenging to surpass. Buyers just need to declare themselves in the area of $3,980 in the event of a downward movement and lack of demand. When it breaks down, the trading instrument will move quickly to $3,960 and provide a path to $3,923.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: