UBS Reports 137% Net Profit Jump in Q4 2020

UBS, a multinational investment bank and financial services company, has announced its financial results for the three months and year ended 31 December 2020, showing an overall positive trend across most metrics.

In this quarter, the Swiss wealth manager reported $1.708 billion net profit, a 137% jump compared to the same period in 2019. Diluted EPS reached $0.46 in the last quarter and the return on CET1 capital was 17.5%.

According to the results, the Profit Before Tax (PBT) jumped 122% in Q4 of 2020 and reached $2.057 billion, including net credit loss expenses of $66 million. The cost/income ratio was 74.1%, a 12.7% improvement YoY, as income (before credit loss expense) increased by 16% and total operating expenses decreased by 1%.

For the year, the company achieved net profit of $6.629 billion, increasing 54% than the previous year. Diluted EPS reached $1.79 and the return on CET1 capital reached 17.6%. Further, PBT increased 47% from last year to $8.226 billion, including net credit loss expenses of $694 million.

Commenting on the recent financial results, Ralph Hamers, UBS’s CEO 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.”