UBS Reports Net Profit of $7.5 Billion in 2021

The Swiss multinational investment bank and financial services company, UBS published its financial results for the full-year 2021 today. The net profit of UBS came in at $7.5 billion. The full-year of 2021 profit before tax (PBT) was USD 9,484 million, which is 16% higher compared to the previous year.

UBS witnessed strong demand across its wealth management division as profit before tax reached $4.8 billion. The PBT was up by approximately 19% YoY. In terms of investment banking, UBS reported a profit before tax of $2.6 billion for the full year of 2021.

Despite the overall growth for 2021, UBS saw some challenges in the fourth quarter of last year. In Q4 of 2021, the financial services provider reported a dip in Group’s PBT including a sharp decline in its global wealth management division.

“Full-year 2021 PBT was USD 9,484m (up 16% YoY), including net credit loss releases of USD 148m, compared with net credit loss expenses of USD 694m in 2020. The cost/income ratio was 73.6%, an increase of 0.4 percentage points YoY. Operating income increased by 10% YoY, with operating expenses up by 8%, partly as a result of an increase in litigation provisions of USD 740m (EUR 650m) taken for the French cross-border matter. Net profit attributable to shareholders was USD 7,457m (up 14% YoY), with diluted earnings per share of USD 2.06,” UBS noted.

Investment Banking

Operating income related to investment banking jumped by 11% YoY. Global Markets revenue surged by almost 6%. During Q4 of 2021, investment bank-related profit before tax came in at $0.7 billion.

“Global Markets revenues increased by 6% or USD 90m, primarily driven by higher revenues in foreign exchange, capital market financing, prime brokerage and cash equities products. Global Banking revenues increased by 4%, or USD 27m, driven by Capital Markets, notably in Leveraged Capital Markets and Advisory revenues. Net credit loss releases were USD 16m, compared with net credit loss expenses of USD 91m in 4Q20,” the bank added.