UBS reported a strong set of quarterly results on Wednesday, posting a 56% jump in net profit that exceeded market expectations. The Swiss bank was supported by solid performances in its wealth management and investment banking divisions and announced plans to step up share buybacks.
The world’s largest wealth manager said it plans to repurchase at least $3 billion worth of shares in 2026, matching the amount bought back last year, while signaling its intention to increase buybacks further. Any additional repurchases will depend on greater clarity around future banking regulations in Switzerland.
Swiss regulators have proposed tighter capital requirements for the country’s remaining major bank following UBS’s state-backed acquisition of Credit Suisse in 2023. While the final shape of the rules remains uncertain, UBS shares have climbed since early December after lawmakers suggested a compromise and reports indicated the government may soften some of the proposals.
Profit beats forecasts as long-term targets return
UBS posted net profit of $1.2 billion for the fourth quarter, comfortably ahead of the company’s consensus forecast of $919 million. The bank also reinstated its goal of achieving a return on Common Equity Tier 1 (CET1) capital of around 18% by 2028, a target it had previously shelved after new capital rules were proposed in June.
In addition, UBS now aims for a group cost-income ratio of about 67% by 2028, tightening its efficiency ambitions from its current target of below 70%.
The bank said it has made strong progress integrating Credit Suisse, with roughly 85% of Swiss-booked client accounts now migrated to UBS systems. Chief Executive Officer Sergio Ermotti said he remains confident that the remaining synergies will be captured by the end of the year, adding that UBS has expanded its cost-saving program by $500 million to a total of $13.5 billion.
Ermotti, who led the emergency takeover of Credit Suisse, is expected to step down by mid-2027, although the timeline has yet to be finalized. Several internal candidates have been mentioned as possible successors, while few external names have emerged.
Wealth management inflows stay strong despite U.S. outflows
During the quarter, UBS attracted $8.5 billion in net new assets to its global wealth management business. The bank recorded strong inflows from Asia, Europe, and the Middle East, partially offset by outflows in the United States linked to the loss of relationship managers.
Looking ahead, UBS expects global wealth management net interest income to decline by a low single-digit percentage in the first quarter of 2026. The bank said its outlook reflects steady global economic growth, easing inflation, and resilient capital markets activity, with a healthy pipeline of deal-making expected to continue.
