UBS Unveils 2024 Annual Report
UBS Group AG (NYSE: UBS) (SWX: UBSN) has officially released its Annual Report for the fiscal year ending 31 December 2024. This thoroughly audited document offers an in-depth look at the bank’s performance over the past year, including the monumental integration of Credit Suisse into UBS’s operations. The report spans across multiple key areas including strategic initiatives, financial outcomes, corporate governance, compensation policies, risk management, treasury and capital management, as well as insights into the regulatory landscape throughout 2024. Additionally, UBS has separately published its Annual Sustainability Report, focusing on the institution’s ongoing commitment to sustainability and positive global impact.
Key Financial Highlights for 2024
According to the audited financial results contained within the report, UBS recorded a net profit attributable to shareholders amounting to USD 5,085 million for the year 2024. The bank’s diluted earnings per share stood at USD 1.52. UBS’s Common Equity Tier 1 (CET1) capital ratio—a key measure of a bank’s financial strength—remained robust at 14.3%. It is important to note that these figures are consistent with the unaudited results previously published on 4 February 2025, confirming their accuracy and stability.
Chairman’s Commentary on 2024 Performance and Integration Progress
Colm Kelleher, Chairman of the Board of Directors of UBS, expressed his pride in the progress made by the organization over the past year. In his statement, Kelleher highlighted the bank’s successful strides in integrating Credit Suisse, further solidifying UBS’s standing as the world’s premier global wealth manager. He also emphasized UBS’s role as a key driver of economic prosperity, particularly in its home market of Switzerland.
Kelleher remarked:
“I am very proud of the progress we made in 2024, as our teams substantially advanced the business integration, strengthened UBS’s position as the world’s truly global wealth manager, and affirmed the bank’s role as an engine for prosperity in our Swiss home market. Management compensation for 2024 continues to reflect our disciplined pay-for-performance approach over business cycles. The vast majority of the variable compensation for Senior Management is deferred for several years. This ensures that reward reflects performance, appropriate risk-taking and aligns employees’ interests with those of our stakeholders. Having laid strong foundations for future growth, can be confident about continuing to build a stronger, safer bank for clients and for Switzerland.”
Credit Suisse Integration: Strategy and Execution
The integration of Credit Suisse into UBS was a monumental task, involving the seamless alignment of operations, personnel, and systems from two of the world’s largest banking institutions. The Annual Report details UBS’s clear strategy for absorbing Credit Suisse’s operations while preserving stability and enhancing efficiency. The integration process focused not only on minimizing client and operational disruptions but also on unlocking synergies and new growth opportunities.
Key integration milestones achieved in 2024 included:
- Harmonizing Credit Suisse’s legacy business units with UBS’s global wealth management, investment banking, asset management, and personal & corporate banking divisions.
- Streamlining overlapping operations to create a more efficient, customer-focused structure.
- Unifying risk management and compliance frameworks to ensure adherence to stringent standards and regulatory requirements.
- Retaining key talent from both organizations while fostering a cohesive corporate culture.
Governance, Risk, and Compensation Policies
The report also provides detailed insights into UBS’s corporate governance structure, risk management strategies, and compensation philosophy. UBS reaffirmed its commitment to strong governance practices designed to uphold transparency, accountability, and sustainable long-term performance.
Risk management remained a core focus, particularly in light of the Credit Suisse acquisition, and the report elaborates on UBS’s comprehensive risk frameworks, covering credit, market, operational, and liquidity risks.
Regarding compensation, UBS underscored its disciplined “pay-for-performance” approach. The compensation structure is designed to balance rewarding performance while ensuring alignment with shareholders’ and stakeholders’ interests. For 2024, the majority of the variable compensation awarded to senior management is deferred over several years, ensuring it reflects long-term value creation and appropriate risk-taking behavior.
Capital and Treasury Management
The Annual Report outlines prudent capital and liquidity management practices throughout 2024. Maintaining a CET1 capital ratio of 14.3% underscores the bank’s strong capital position, which provides a solid foundation for growth, supports client needs, and ensures compliance with regulatory capital requirements.
Treasury operations focused on optimizing the balance sheet, managing liquidity buffers, and supporting business needs during the integration period robust capital position also enabled the bank to pursue strategic investments while continuing to deliver value to shareholders.
Regulatory Environment Overview
UBS’s report delves into the evolving regulatory environment faced by global financial institutions in 2024. The integration of Credit Suisse required close cooperation with regulators worldwide to ensure a smooth transition, compliance with capital adequacy, liquidity, and risk management requirements. maintained proactive engagement with regulatory authorities, helping to facilitate approvals and secure a compliant operational structure post-merger.
Sustainability and Impact Strategy
In tandem with the financial report, UBS also released its Annual Sustainability Report, highlighting its commitment to responsible banking and sustainable finance. The report sheds light on sustainability and impact strategy, detailing how the institution is supporting clients’ evolving needs in sustainable finance, environmental responsibility, and societal impact.
A significant portion of the report is dedicated to continued efforts in aligning its operations and sustainability frameworks following the integration of Credit Suisse. These efforts include embedding considerations of climate-related risks and opportunities into business decisions and risk assessments across all business divisions.
Some key highlights from the Sustainability Report include:
- UBS’s revised target to achieve net-zero greenhouse gas emissions across its own operations by 2035.
- Initiatives to manage and reduce financed emissions, focusing on aligning key sectors such as energy, real estate, and transportation with global decarbonization pathways.
- Enhanced client offerings in sustainable finance and impact investing, helping clients transition to a low-carbon economy while pursuing long-term value creation.
- Strengthened governance structures around sustainability, including improved disclosure and transparency practices.
The report also outlines UBS’s participation in global sustainability initiatives and partnerships, reaffirming its commitment to contributing positively to the broader financial ecosystem and society.
