UBS Group AG (SWX:UBSG) today posted its financial report for the final quarter of 2020.
The Global Markets division saw revenues increase by USD 248 million, or 21%, to USD 1,433 million. The rise was primarily driven by higher client activity levels, particularly across equity derivatives, cash equities and credit product lines.
Execution & Platform revenues increased by USD 85 million, or 25%, to USD 428 million,thanks to higher client activity levels in cash equities products.
Derivatives & Solutions revenues increased by USD 188 million, or 40%, to USD 660 million, reflecting higher client activity levels and a constructive market environment across equity derivatives and credit.
Let’s note that Equities revenues increased by USD 230 million, or 28%, to USD 1,065 million, mainly reflecting increased client activity levels in equity derivatives and cash equities products. Foreign Exchange, Rates and Credit revenues increased by USD 18 million, or 5%, to USD 368 million, primarily supported by Credit, reflecting a constructive market environment.
Across all business segments, total comprehensive income attributable to shareholders was USD 1,773 million, compared with negative USD 1,577 million a year earlier.
Net profit attributable to shareholders was USD 1,708m (up 137% YoY), with diluted earnings per share of USD 0.46. Return on CET1 capital was 17.5%.
Profit before tax increased by USD 1,129 million, or 122%, to USD 2,057 million, mainly reflecting higher operating income.
All financial targets were met or exceeded in 2020: Return on CET1 capital2 was 17.6% (target: 12–15%) and return on tangible equity was 12.9%, with the lowest cost/income ratio since 2006 (73.0% vs. target 75–78%). Every region and business division contributed over USD 1billion in profits, as we benefited from our business and geographical diversification.
UBS intends to propose a 2020 ordinary dividend of USD 0.37 per share. The Group repurchased USD 0.4 billion of shares in 2020 and reserved USD 2.0 billion of capital for potential future share repurchases. UBS plans to repurchase up to USD 1.1 billion of shares in the first quarter of 2021.