On Wednesday, the major bank will present its half-year results. These are the factors investors will be watching.
The year 2024 started remarkably well for UBS. Recall that in the first quarter, the major bank significantly exceeded earnings expectations. The financial institution earned $2.4 billion before taxes.
This result more than doubled the consensus of analyst expectations: a profit of $0.24 per share was expected, but UBS actually earned $0.52 per share.
Spring Stock Surge
The positive surprise triggered a stock surge for UBS. The shares rose from around 24 Swiss francs ($28) at the end of April to over 28 francs in May.
Now, ahead of the half-year results release, the stock is back to where it was before the last quarterly results.
Lowered Expectations
Analysts do not expect UBS to match the billion-dollar profit from the first quarter in the second quarter.
According to the Analyst Consensus Report published by the bank on 17 July 2024, expectations for key figures are as follows:
| 1st Quarter (actual) | 2nd Quarter (Expectations) | |
| Revenue | $11,960 billion | $10,946 billion |
| Profit before taxes | $2,376 billion | $0,528 billion |
| Earnings by share | $0,52 | $0,15 |
These numbers will be closely watched by investors when UBS reports its second-quarter results on Wednesday. Also of interest to shareholders is whether UBS will signal the continuation of its share buyback program—even if the outlook for the full year 2024, as generally expected, becomes somewhat dimmer.
An interesting week lies ahead for UBS, its chairman Colm Kelleher, CEO Sergio Ermotti, and the Swiss financial market.
