Can UBS sustain its earnings growth into Q1 2025?

UBS is well-positioned to sustain its earnings growth into Q1 2025, based on several key factors:

1. **Strong Financial Performance**: UBS reported a robust full-year net profit of $5.1 billion for 2024, reflecting strong financial performance. This sets a solid foundation for continued growth into the next quarter.
2. **Strategic Integration Progress**: UBS has made significant progress in integrating Credit Suisse, with key integration milestones completed. This strategic move is expected to enhance operational efficiency and contribute to future earnings growth.
3. **Cost Savings and Profitability**: UBS has achieved $7.5 billion in cumulative gross run rate cost saves by the end of 2024. These cost savings are a testament to UBS's ability to manage expenses effectively, which is crucial for sustaining earnings growth.
4. **Dividend Increase and Share Buybacks**: UBS proposed a 29% increase in its dividend to $0.90 per share for the financial year 2024. Additionally, the bank plans to repurchase up to $3 billion of its shares in 2025, which is a positive signal for investor confidence and suggests that UBS is generating sufficient cash to support shareholder returns while maintaining financial stability.
5. **Revenue Growth**: UBS's total revenues for Q4 2024 grew by 7% to $11.64 billion compared to the previous year. This growth in revenue, coupled with expectations of continued business momentum, supports the notion that UBS can sustain its earnings growth into Q1 2025.
6. **Capital Position and Regulatory Outlook**: UBS's CET1 capital ratio stands at 14.3%, indicating a strong capital position. Despite potential regulatory challenges in Switzerland that could impact capital requirements, UBS is confident in its ability to navigate these issues and maintain its financial stability.

In conclusion, UBS's strong financial performance, strategic integration efforts, cost savings, dividend increase, share buybacks, revenue growth, and solid capital position all point to a positive outlook for sustaining earnings growth into Q1 2025.