UBS has reported its financial results for the first quarter of 2025, with a pre-tax profit (PBT) of USD 2.1 billion and an underlying PBT of USD 2.6 billion. The net profit stood at USD 1.7 billion, translating to a return on common equity tier 1 (RoCET1) of 9.6% and an underlying RoCET1 of 11.3%. The core businesses of UBS, which include Global Wealth Management, Personal and Corporate Banking, Asset Management, the Investment Bank, and Group Items, saw a combined increase in underlying PBT of 15%.
The strength of the franchise has been evident, with Global Wealth Management securing new assets amounting to USD 32 billion, while Asset Management attracted net new money of USD 7 billion. In Switzerland, CHF 40 billion of loans were granted or renewed. There was a 15% year-on-year increase in Global Wealth Management's underlying transaction-based income, while Global Markets reported record-high underlying revenues with a 32% year-on-year rise.
UBS continues to make progress on its integration plans, having achieved further USD 0.9 billion in gross cost savings. This brings the cumulative cost reductions to USD 8.4 billion, or 65% of the anticipated USD 13 billion. The consolidation of Swiss branches was completed ahead of the main waves of client account migrations, which are set to commence in the second quarter.
The bank reported significant advancements in the wind-down of Non-core and Legacy operations, with risk-weighted assets decreasing by USD 7 billion sequentially to USD 34 billion. UBS maintains a robust balance sheet, with mortgages comprising 57% of its loan book and 93% of lending positions being collateralized.
The bank's capital position remains strong, with a 14.3% CET1 capital ratio and a 4.4% CET1 leverage ratio. This positions UBS well to meet capital requirements during periods of integration and market volatility, while also enabling self-funded growth and capital returns to shareholders.
In terms of capital management, UBS completed USD 0.5 billion in share buybacks and has set aside USD 2.5 billion for planned repurchases throughout the year. The bank is also on track for approximately 10% year-on-year growth in dividends.
UBS continues to invest in technology and growth, focusing on generative artificial intelligence (GenAI) and cloud computing. It has rolled out 50,000 Microsoft Copilot licenses to employees and reported cloud usage at about 75%. Additionally, UBS entered into a strategic collaboration with 360 ONE to enhance wealth management services in India and international markets.
The information in the news release is presented on a consolidated basis for UBS Group AG unless specified otherwise. UBS uses non-GAAP financial measures, with underlying results excluding certain items that management believes do not reflect the bank's underlying performance. Details are available in the "Group Performance" and "Appendix-Alternative Performance Measures" sections of the financial report for Q1 2025.