UBS Group AG's stock plunged 5.07% in the pre-market trading session on Tuesday, as the Swiss banking giant warned of a decline in net interest income and higher integration costs in the first quarter of 2025.
In its financial update, UBS forecasted a low-to-mid single digit percentage sequential decline in net interest income (NII) for its Global Wealth Management business and around a 10% sequential decline in Personal & Corporate Banking's NII, measured in Swiss francs. Additionally, the company expects integration-related expenses of around USD 1.1 billion and a contribution of around USD 0.5 billion from the accretion of PPA effects to the Group's total revenues.
Despite the expected decline in NII and higher integration costs, UBS plans to repurchase $1 billion worth of shares in the first half of 2025 and up to an additional $2 billion in the second half, after reporting a swing to earnings of $0.23 per diluted share in Q4 2024, compared to a loss of $0.09 a year earlier.