UBS Group Fro Q2 Expect A Low-To-Mid Single-Digit Decline In Net Interest Income In Global Wealth Management; Mid-To-High Single-Digit Decrease In Net Interest Income In Personal & Corporate Banking
Portfolio Pulse from Benzinga Newsdesk
UBS Group forecasts a decline in net interest income for Q2 2024, with a low-to-mid single-digit decrease in Global Wealth Management and a mid-to-high single-digit decrease in Personal & Corporate Banking, primarily due to lower interest rates in Switzerland and the impact of the Swiss central bank's rate cut. The bank also anticipates integration-related expenses of around USD 1.3bn and a return to higher tax rates, expecting an effective tax rate of around 40% by end of 2024.
May 07, 2024 | 6:56 am
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UBS Group anticipates a decrease in net interest income across key divisions for Q2 2024, alongside significant integration-related expenses and a high effective tax rate.
The anticipated decline in net interest income and the significant integration-related expenses are likely to pressure UBS Group's financial performance in the short term. Additionally, the expected high tax rate could further impact profitability, leading to a negative outlook for the stock in the near term.
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