UBS has reported a net profit of $1.70bn, or $0.49 per diluted share, for the fourth quarter of 2020, a 137% increase compared to $722m, or $0.19 per diluted share, for the same period of 2019.
The company reported a net profit of $6.62bn, or $1.79 per diluted share, for the year ending 31 December 2020, a 53% rise compared to $4.30bn, or $1.14 per diluted share, for the year ending 31 December 2019.
UBS earned profit before tax (PBT) of $2.05bn for the Q4 2020, which increased by 122% from the $928m for the Q4 2019, and includes the company’s net credit loss expenses of $66m.
The company’s CET1 capital ratio was 13.8%, and its return on CET1 capital was 17.5%, while the cost/income ratio was 73.0% for the year ending 31 December 2020.
UBS attributed the gain in profits to the group’s strength and resilience that facilitated deploying resources during the time of pandemic.
UBS CEO Ralph Hamers said: “Our strong 2020 results clearly demonstrate the true strength of our franchise and the commitment of our employees. It was a challenging year for our clients, for our colleagues, and for our communities alike, which makes these results even more gratifying.
“We stood for stability, maintained connectivity, and provided the advice and solutions our clients needed. And, in turn, they entrusted us with their business – with over a hundred billion dollars in net new money.
“Additionally, invested assets across asset and wealth management reached record levels, now at 4.1 trillion dollars, Group revenues were up 12%, and we generated a strong return on CET1 capital at 17.6%.”
UBS’ Global Wealth Management (GWM) business has reported a PBT of $936m for the Q4 2020, which increased by 22% from the $766m for the corresponding quarter in 2019.
The Personal and Corporate Banking business has reported a PBT of CHF318m ($358m) for the Q4 2020, a 4% rise compared to CHF306m ($345m) for the same period in 2019.
The company’s Asset Management (AM) business has reported a PBT of $401m for the Q4 2020, which raised by 123% from the $180m for the Q4 2019.
UBS’ Investment Bank business has rereported a PBT of $529m for the Q4 2020, compared to $22m in the same quarter in 2019.
Hamers added: As significant to me, though, is that every single business division and region played a role in this success. Global Wealth Management and Asset Management recorded a double-digit profit before tax growth, while the Investment Bank achieved a 20% return on attributed equity.
“Regionally, profit before tax in the Americas and Asia Pacific increased by over 1 billion each. Our universal bank in Switzerland benefited from a resilient economy, supported by effective government-backed lending programs in partnership with the banks.
“It is this broad-based strength that has allowed us to stand by our clients, our team and those in need throughout the pandemic. We worked across the firm to deliver the best of UBS to our clients and grow our leadership in specific areas like sustainability.”
