UBS posts fall in quarterly profit to $1.35 billion, sets ambitious new targets

cnbc.com:

LONDON — UBS on Tuesday reported a fall in quarterly profit, but beat analyst expectations and set ambitious new profitability targets as part of a strategic update.

The Swiss bank posted net profit attributable to shareholders of $1.35 billion for the fourth quarter. This was down from $1.64 billion a year earlier, and also lower than the $2.28 billion reported the previous quarter.

Analysts had forecast UBS to post net income attributable to shareholders of $863 million, according to the consensus published by the bank.

The figures take the bank's full-year profit to $7.46 billion, above a company-compiled consensus of $6.98 billion.

However, UBS' bottom line was hit by an increase of $740 million in litigation provisions for a French cross-border tax case. In late December, the bank filed an appeal with France's Supreme Court against a decision by a Paris appeals court to uphold a money laundering conviction.

Here are other highlights for the third quarter:

«We are aiming to create sustainable value through the cycle. Reflecting our improved operating performance over the last two years, we have updated our financial targets, while our capital guidance remains unchanged,» the bank said in a statement accompanying the results.

In its first major strategic update since CEO Ralph Hamers took the reins in Nov. 2020, UBS said it will aim for $6 trillion in invested assets across its global wealth management, asset management and personal and corporate banking divisions.

Meanwhile the bank set the target range for its return on CET1 capital at 15-18% and cost-to-income ratio at 70-73%. The bank will also aim for 10-15% growth in profit before tax at its wealth management business.

«Our new aspirations, targets and goals