ZURICH (Reuters) – UBS announced more ambitious profitability goals and a continued plan to pare back costs on Tuesday, while also reporting a 18% slide in fourth-quarter earnings.
In its first major strategic review since Chief Executive Ralph Hamers took the helm in November 2020, Switzerland’s biggest bank said it wants to use technology to help it increase revenues and reach more customers in the years ahead, while also continuing to streamline its setup to bring costs down.
“UBS is in better shape than ever,” Hamers said in a statement. “We’re adapting our coverage models to deliver more digital and scalable advice as well as bespoke solutions.”
Net profit or income attributable to shareholders for the quarter tumbled to $1.348 billion after the lender took a $740 million litigation provision for a French tax case. Bumper trading volumes led to a surge in earnings for the last three months of 2020.
That compares with a median estimate of $863 million in a poll of 23 analysts compiled by the bank.
UBS’s full-year net profit of $7.457 billion outpaced the consensus expectation of $6.976 billion.
(Reporting by Brenna Hughes Neghaiwi; Editing by Michael Shields)
