UBS Sets New Goals After Strong Performance

Switzerland’s biggest bank posts its best results in 15 years and lays down new environment, social, and governance goals.

UBS reports net profit for the fourth quarter of $1.3 billion, up 17 percent from the same quarter in the previous year, the bank says in its earnings report Tuesday. Results were supported by favorable market conditions, enabling inflows of net new asset-generating fees within the bank’s global wealth management.

For the financial year, 2021 net profit came to $7.5 billion, up from $6.6 billion in the previous year. Operating profit also rose for the full year, up 16 percent to $9.5 billion. This was after it took a $740 million hit due to litigation costs with France.

Throughout the year the bank increased its sustainability efforts and impact investments to $251 billion from $141 billion. The bank will continue its focus on the environment, social, and governance (ESG) aspirations with a series of new goals.

These include cutting CO2 emissions within its own operations to net-zero by 2025 as well as investing $235 billion in net-zero aligned assets by 2030. Separately the bank will allocate $400 billion to sustainability-focused assets.

Philanthropy also features in its strategy with $1 billion of donations aimed at reaching 25 million beneficiaries by 2025.

After exceeding its CET1 capital ratio target in 2021, the bank raised its CET1 capital guidance to 15 to 18 percent from 13 percent previously.

The bank has proposed a dividend of $0.5 per share from $0.37 the year before. UBS’s share buybacks will also nearly double in 2022 from 2.6 billion in 2021.

UBS is in better shape than ever. For the second year in a row, we achieved our targets, remained disciplined in our costs and saw strong contributions from all regions and divisions, Ralph Hamers, UBS’ group CEO, said in the statement.