Mixed Financial Performance

Despite these regulatory challenges, UBS delivered strong financial results in the fourth quarter of 2024, with a net profit of $770 million—marking its fourth consecutive profitable quarter as the bank continues to integrate Credit Suisse following its acquisition. The investment division performed particularly well, generating $486 million in pre-tax profit, significantly exceeding analyst expectations. This success was largely driven by increased trading volumes in stocks and foreign exchange markets. Total revenue for the bank rose by 7% in the last quarter, reaching $11.6 billion, with global markets revenue jumping an impressive 44% during the same period. Trump Effect Boosts Trading The remarkable growth in trading activity was fueled by increased risk appetite among institutional and private clients following Donald Trump's return to the U.S. presidency. This trend mirrors results reported by major Wall Street banks and European competitors like BNP Paribas, which saw investment division profits rise by over 15% in the same quarter. Wealth Management Disappoints In a surprising turn, UBS's traditionally strong wealth management division underperformed expectations, reporting lower-than-anticipated asset inflows for the quarter. This area has historically been a cornerstone of the bank's success strategy. Cautious Outlook for 2025 Looking ahead, UBS expects to benefit from "constructive market conditions" in the first quarter of 2025. However, the bank remains cautious, acknowledging that investor sentiment could be affected by macroeconomic uncertainties outside the United States and growing concerns about global economic and trade dynamics.