UBS Earnings: Robust Growth Is Unlikely to Continue

Narrow-moat UBS reported much better-than-expected results for the first quarter of 2024, yet we felt its management team struck a somewhat cautious tone during the earnings call. Potentially higher regulatory capital requirements will continue to weigh on the share price as UBS could not provide an update on the Swiss regulator's position. Net new money inflows in wealth management continue, which suggests limited client attrition. We will incorporate the results in our model and update our current fair value estimate of CHF 27.50/share shortly.