UBS registers growth in Global Markets revenues in Q4 2021
UBS today reported its financial results for the final quarter of 2021.
Global Markets revenues increased by USD 90 million, or 6%, to USD 1,523 million, primarily driven by higher revenues from Forex, capital market financing, prime brokerage and cash equities products. Execution Services revenues increased by USD 24 million, or 6%, to USD 452 million, driven by higher revenues from Forex products that are traded over electronic platforms and cash equities. Derivatives & Solutions revenues decreased by USD 38 million, or 6%, to USD 622 million, compared with strong revenues in the fourth quarter of 2020.
Revenue increases in Foreign Exchange were more than offset by decreases from other products.
Financing revenues increased by USD 102 million, or 30%, to USD 448 million, driven by capital market financing and prime brokerage products.
Global Markets Equities revenues increased by USD 42 million, or 4%, to USD 1,107 million, mainly driven by higher Financing revenues, partly offset by lower revenues in Equity Derivatives, which had a strong fourth quarter of 2020. Global Markets Foreign Exchange, Rates and Credit revenues increased by USD 47 million, or 13%, to USD 415 million, driven by FX products, which benefited from increased volatility and client activity levels, partly offset by decreases in Rates and Credit revenues.
Across all segments, profit before tax decreased by USD 256 million, or 13%, to USD 1,729 million, reflecting higher operating expenses, partly offset by higher operating income. Operating expenses increased by USD 871 million, or 14%, to USD 7,003 million, mainly reflecting a USD 697 million increase in general and administrative expenses, largely driven by an increase in litigation provisions for the French cross-border matter, and USD 227 million higher personnel expenses.
Operating income increased by USD 615 million, or 8%, to USD 8,732 million, mainly reflecting USD 445 million higher net fee and commission income. Net credit loss releases were USD 27 million, compared with net credit loss expenses of USD 66 million in the prior-year quarter.