UBS Group AG (UBSG.S) has reported a significant surge in net profit, driven by robust performance in its wealth management and investment banking divisions. The Swiss bank posted a 56% increase in net profit for the fourth quarter, exceeding forecasts with a total of $1.2 billion, compared to the consensus estimate of $919 million. UBS is the world’s largest wealth manager and a leading global financial services firm, providing a range of services to individuals, corporations, and institutions. The strong results have paved the way for renewed share buyback initiatives.
Building on its financial success, UBS intends to repurchase at least $3 billion worth of shares in 2026, matching its buyback amount from the previous year, with ambitions to potentially increase this figure. The extent of additional buybacks, however, is contingent on clarity surrounding the future regulatory framework for banking in Switzerland. Since acquiring Credit Suisse in a state-engineered emergency takeover in 2023, UBS has been subject to proposed stricter capital rules from Swiss authorities.
UBS has also reinstated its target of achieving a reported return on Common Equity Tier 1 (CET1) capital of approximately 18% by 2028, a goal that was temporarily shelved following the introduction of new capital rules in June. Furthermore, the bank is aiming for a group cost-income ratio of around 67% by 2028, surpassing its current target of below 70%. Integration efforts following the Credit Suisse acquisition are progressing well, with around 85% of Swiss-booked accounts migrated onto UBS systems.
CEO Sergio Ermotti expressed confidence in the bank’s ability to realise remaining synergies by the end of the year, noting an increase in the cost-saving program by $500 million to $13.5 billion. UBS saw $8.5 billion in net new assets added to its global wealth management division during the quarter, with strong inflows from Asia, Europe, and the Middle East. However, the bank experienced outflows in the U.S., attributed to the loss of relationship managers.
