UBS Posts $2.8 Billion Quarterly Profit, Lifts Buyback Plans as Wealth Inflows Hit Record
Published on 07/30/2026 at 17:43 | Redaktion boerse-global.de
UBS delivered second-quarter results that cleared even the most bullish forecasts, sending shares higher as the bank unveiled a fresh $3 billion share repurchase program and disclosed record net new money flows of $35.5 billion.
The stock climbed 1.57 percent on Thursday to €45.90 in European trading, narrowing the gap to its 52-week high of €48.19 set in mid-July. Year-to-date, the shares have gained roughly 14 percent.
Earnings Beat Driven by Wealth Management and Investment Banking
Net profit attributable to shareholders reached $2.8 billion in the three months through June, a 17 percent increase from the same period last year. Pretax profit surged 64 percent on a reported basis to $3.6 billion, while total revenues rose 13 percent to $13.7 billion.
Costs remained broadly stable at just under $10 billion despite ongoing integration work, pushing the cost-income ratio down to 72.9 percent — a metric analysts flagged as evidence of improving operational efficiency.
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The Global Wealth Management division, UBS's core business, attracted $35.5 billion in net new money, lifting group assets under management to a record $7.3 trillion at the half-year mark. The investment banking unit also delivered, with adjusted revenues climbing 31 percent year-over-year, led by strength in equities.
CEO Sergio Ermotti told CNBC the bank was experiencing strong momentum, though he cautioned that geopolitical volatility could create temporary headwinds. On the recent correction in technology and AI stocks, Ermotti said the pullback was predictable given the speed and scale of market capitalization gains in prior months, and that UBS could benefit from the diversification opportunities such a shake-up presents.
Credit Suisse Integration Nears Finish Line
The merger with Credit Suisse is entering its final phase. By the end of June, UBS had realized cumulative cost savings of $12.6 billion, putting it within striking distance of the $13.5 billion target for year-end. More than 90 percent of legacy Credit Suisse systems have been decommissioned.
The bank added $1.1 billion in gross savings during the second quarter alone. Management expressed confidence that the integration would be substantially completed on schedule.
$3 Billion Buyback Program Announced
Alongside the results, UBS announced a new share repurchase program worth $3 billion, set to run through mid-2027. The bank plans to deploy at least $1 billion of that total in the current quarter alone, signaling confidence in its capital position.
The capital return plan comes as UBS maintains a CET1 ratio of 14.4 percent, a level the Swiss National Bank considers adequate for meeting future regulatory requirements. However, the Swiss Federal Council continues to push for full capital backing of foreign subsidiaries, leaving the regulatory debate unresolved.
Analyst Reactions and Outlook
DZ Bank raised its fair value estimate for UBS shares from 39 to 49 Swiss francs, reiterating a "Buy" rating. Analyst Philipp Häßler cited the strong investment banking performance and the announced buybacks as justification for upgrading his earnings forecasts for 2027 and 2028.
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RBC described the numbers as strong but noted they were not surprising given results from peers, while ZKB analysts highlighted the investment banking momentum.
Looking ahead to the third quarter, UBS struck a cautiously optimistic tone. Market conditions remain broadly constructive, supported by solid client activity and historically high dispersion in equity markets. Geopolitical developments and volatile energy prices continue to cloud the inflation and interest rate outlook, however.
The bank's ability to hit its $13.5 billion cost target by year-end and the pace of the new buyback program will be closely watched by investors in the months ahead.
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