Analyst: UBS reported strong performance, but wealth management fund inflows may be disappointing.

Thomas Hallett and Andrew Stimpson of Keefe, Bruyette & Woods stated that UBS Group reported strong fourth-quarter performance, with capital return plans in line with expectations, but net inflows in the wealth management division may be disappointing. KBW said in a research report that the Swiss bank's revenue exceeded expectations. However, these analysts noted that the global wealth management division's net new assets of $8.5 billion were below KBW's forecast of $33 billion, due to weak US business. "The plan to repurchase $30 billion in shares and the goal to repurchase more shares should not be surprising, but the strong growth in the parent company's Tier 1 common equity capital is indeed unexpected and bodes well for future dividend prospects," the analysts said.