UBS Group AG Registered Ordinary Shares
UBS · NYSE
Next quarter
Expected to report Feb 3, 2027 — estimated from last year’s reporting date.
Consensus is $0.90 EPS for Dec 2026 across 1 estimates, ranging $0.90 to $0.90.
UBS Sep 2026
- 6.59%
- $0.91
- $0.85
- —
- —
Highlights
- Earnings: UBS reported third-quarter net profit of $2.7 billion and EPS of $0.85, 6.6% below the $0.91 consensus; underlying pre-tax profit rose 14% year over year to $4.1 billion.
- Revenue and efficiency: Underlying revenue increased 10%, ahead of expense growth; the underlying cost-income ratio was 68.7% and return on CET1 capital was 16.7%.
- Wealth inflows: Global Wealth Management attracted $55 billion of net new assets, a 4.5% growth rate, and $13 billion of net new fee-generating assets; year-to-date net new assets reached $128 billion.
- Integration savings: UBS had delivered $13.2 billion of gross cost reductions by quarter-end and expects about $13.7 billion by year-end, above its $13.5 billion ambition; 90% of legacy applications were decommissioned.
- Investment Bank: Global Markets revenue rose 17% to a third-quarter record of $2.5 billion, including 22% growth in equities; divisional pre-tax profit increased 9% to $854 million.
- Swiss banking: Personal & Corporate Banking posted its strongest quarter since the acquisition, with pre-tax profit up 22% to CHF 813 million and nine percentage points of positive operating leverage.
- Capital returns and capital: UBS repurchased $4.8 billion of shares and accrued $2.8 billion for dividends year to date; it expects a year-end CET1 ratio at or very close to 14%, versus 14.7% at September-end.
- Swiss regulation: Management warned that proposals under parliamentary discussion could excessively tighten capital requirements and harm competitiveness, but declined to discuss contingency actions before rules are finalized.
Analysis
UBS delivered solid underlying growth in the third quarter, but reported EPS of $0.85 missed the $0.91 consensus by 6.6%. Reported net profit was $2.7 billion. Underlying pre-tax profit rose 14% year over year to $4.1 billion as revenue grew 10%, outpacing expense growth; return on CET1 capital was 16.7% and the cost-income ratio 68.7%. The reported result included $452 million of integration costs and a $346 million charge tied to repurchasing about $10 billion of high-cost Credit Suisse liabilities. The release did not provide a group-level prior-quarter profit comparison, though loans and deposits each fell 1% sequentially, mainly because of foreign-exchange translation.
The quarter was defined by strong client flows, continued integration savings and strength in markets trading. Wealth Management gathered $55 billion of net new assets, while the Investment Bank’s Global Markets revenue reached a third-quarter record of $2.5 billion. UBS has delivered $13.2 billion of gross cost reductions and expects to exceed its integration savings ambition, reaching about $13.7 billion by year-end as the program concludes. Capital remained robust at a 14.7% CET1 ratio; management expects it to be close to 14% at year-end, including intended capital returns. At the same time, the unresolved Swiss capital-regulation debate remains a strategic uncertainty, with management arguing that proposed requirements could undermine the group’s competitiveness.
Earnings and efficiency
Underlying pre-tax profit increased 14% year over year to $4.1 billion as revenues grew 10% and disciplined costs produced positive operating leverage. Across core franchises, excluding litigation, revenue was up 3% and costs were lower, yielding four percentage points of positive operating leverage. The reported result was affected by integration spending and the liability-management transaction; the effective tax rate was 24.7%, with no expected tax benefit on legal provisions recorded in Non-core and Legacy.
- Reported result: Net profit was $2.7 billion and EPS was $0.85, versus consensus EPS of $0.91; integration costs were $452 million and the debt repurchase charge was $346 million.
- Underlying returns: Return on CET1 capital was 16.7% and the cost-income ratio was 68.7%. For the first nine months, management cited a 17% return on CET1 capital and a 70% cost-income ratio.
- Credit and funding: Credit-loss expense was $114 million, equivalent to an annualized cost of risk of 7 basis points, unchanged from the prior quarter. The liquidity coverage ratio was 179%, the net stable funding ratio 115%, and total loss-absorbing capacity $187 billion.
Integration and cost savings
The Credit Suisse integration is in its final stages, with completion expected by year-end. Gross cost reductions reached $13.2 billion, including $0.6 billion in the quarter, and UBS expects another $0.5 billion in the fourth quarter to bring the total to about $13.7 billion—above its $13.5 billion ambition. Capturing additional synergies will require about $0.5 billion of integration-related expense in Q4; the final cost-to-achieve multiple is expected to be around 1.1 times.
- Operating footprint: Quarter-end headcount was 110,000, down 2% sequentially and 30% from the 2022 baseline. Operating expenses, excluding litigation, variable compensation and currency effects, were almost 30% below that baseline.
- Legacy systems: 90% of legacy applications had been fully decommissioned, with nearly all no longer in use.
- Non-core and Legacy: The division recorded $360 million of pre-tax profit, as legal settlements more than offset $275 million of litigation charges. Expenses excluding litigation fell 69% to $91 million, and UBS expects about $300 million of annualized such expenses at year-end.
Wealth Management growth
Global Wealth Management’s pre-tax profit rose 11% to $2.0 billion. Excluding nearly $200 million of litigation releases that benefited the year-ago quarter, profit increased 25%, with double-digit growth across regions. Net new assets were $55 billion, bringing year-to-date inflows to $128 billion; the gap between net new assets and fee-generating flows reflects liquidity events and assets that may be invested or moved into mandates over time.
- Flows and mandate growth: Net new fee-generating assets were $13 billion, while net new loans were $6 billion and net new deposits were $2 billion. Invested assets rose 1% sequentially as flows were partly offset by foreign-exchange translation.
- Regional results: Americas pre-tax profit increased 28%, with a 16% margin and $17 billion of net new assets. APAC profit rose 19%, with a 45% margin; recurring revenue increased 20% over the past 12 months. EMEA profit excluding litigation grew 39%, and Switzerland’s grew 34%; Swiss GWM attracted $12 billion of net new assets.
- Revenue outlook: GWM recurring net fee income rose 9% to $3.8 billion and transaction income grew 4% to $1.3 billion. Net interest income increased 8% year over year to $1.8 billion and was modestly higher sequentially; UBS expects a low-single-digit sequential increase in Q4.
Investment Bank strength
The Investment Bank generated $854 million of pre-tax profit, up 9%, with an 18% pre-tax return on equity. Global Markets revenues rose 17% to a third-quarter record, reflecting strength across equities and major regions. UBS attributed growth to client activity, market-share gains and higher balances, while emphasizing disciplined use of capital: risk-weighted assets and leverage exposure were broadly flat year over year despite business growth.
- Equities: Revenue increased 22%; prime brokerage client balances were up 33% year over year and related revenues rose 32%.
- Global banking: Revenue fell 21% to $670 million against a record prior-year quarter. Capital markets revenue declined 6%, as 44% growth in equity capital markets was outweighed by lower leveraged capital markets activity; advisory revenue fell 44% amid transaction timing and a record comparison.
- Near-term outlook: UBS expects more typical seasonal moderation in Q4 Global Markets transaction volumes. Assuming constructive markets, it expects sequential growth in global banking revenue.
Swiss banking and asset management
Personal & Corporate Banking delivered its strongest quarter since the acquisition, with pre-tax profit up 22% to CHF 813 million and an underlying pre-tax return on equity above 18%. Completed client migrations and legacy infrastructure retirements are beginning to translate into lower costs and more capacity for growth. Asset Management’s pre-tax profit rose 6% to $300 million, with a 62% cost-income ratio; flows were mixed as money-market outflows and institutional rebalancing outweighed some positive strategies.
- Personal & Corporate Banking: Revenue rose 4%, supported by 2% year-over-year and 3% sequential growth in net interest income despite the zero-rate environment. Expenses declined 5%, producing nine percentage points of positive operating leverage. Net credit-loss expense was CHF 27 million.
- Asset Management: Net new money was negative $5 billion, partly offset by inflows into ETFs, separately managed accounts and Unified Global Alternatives. UGA received a record $12.5 billion of quarterly commitments, bringing invested assets to $371 billion.
- Q4 expectations: UBS expects slightly higher Swiss-franc net interest income in P&C, with continued balance-sheet growth; it expects further model releases to partly offset seasonally higher Stage 3 credit charges if the Swiss credit outlook remains constructive.
Capital and Swiss regulation
UBS ended September with a 14.7% CET1 ratio and a 4.6% CET1 leverage ratio. Management expects the CET1 ratio to end 2026 at or very close to its target of around 14%, including a potential accrual for part of intended 2027 buybacks. The bank has repurchased $4.8 billion of shares and accrued $2.8 billion for dividends year to date, and plans to repurchase a further $1.2 billion over the next three months to complete its current program. It will set out 2027 capital-return plans with its fourth-quarter results.
- Capital position: CET1 capital increased $0.7 billion in the quarter, partly offset by dividend accruals, share-award hedge reserves and currency effects. Risk-weighted assets fell $8 billion sequentially.
- Regulatory debate: Management said the Swiss parliamentary proposals could impose excessive capital requirements and weaken the group’s long-term competitive position. It declined to comment on individual scenarios or contingency actions while the rules remain unsettled.
- Timing: Management said the ordinance is expected to affect capital from January 1, 2029, while rules affecting foreign subsidiaries could take effect from late 2027 or 2028 and be implemented over time.
