UBS Group AG

The stable outlook indicates our expectation that UBS will successfully complete the integration and restructuring of the Credit Suisse group over the next two years. Although we regard management's targets as ambitious, we anticipate that profitability will gradually improve, aligning UBS with its peers. We could revise down the 'a' stand-alone credit profile (SACP) and lower our rating if we considered that the merger had weakened UBS' financial profile. The main downside triggers would be the group's failure to improve profitability to a level in line with the peer average, and the crystallization of the potential tail risks associated with winding down the noncore and legacy unit. If we were to revise down the SACP, we would also lower our

...The 2024 results indicate that UBS Group AG (UBS; the group) has made material progress in restructuring Credit Suisse's operations. The group reported a US$5.1 billion net profit in 2024 (6.5% return on tangible equity). This is still below preacquisition levels and the peer average, but indicates a material improvement in core profitability and highlights the management team's strong execution of the restructuring plan. Underlying return on tangible equity more than doubled in 2024, to 8.5%; the year-on-year comparison is somewhat diluted by the fact that Credit Suisse was only included in the consolidated results from June 2023. The development mainly related to the decrease in expenses linked to noncore and legacy assets, combined with improved performance in investment banking and the global wealth management division....

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