Prime Highlights :
- UBS posts a 17% surge in second-quarter profit to $2.8 billion, beating forecasts of $2.39 billion.
- UBS unveils a new $3 billion share buyback plan over the coming months.
Key Facts :
- Global wealth management draws $36 billion in net new assets.
- Cost-income ratio improves to 72.9% from 80.5% a year earlier.
Background :
UBS reported a 17% rise in second-quarter net profit to $2.8 billion, ahead of analyst forecasts of $2.39 billion, driven by broad-based growth across wealth management and its investment bank.
The bank’s trading division delivered record second-quarter revenue, matching strong results from major Wall Street and European peers.
UBS said it plans to repurchase shares worth $3 billion by the middle of next year, with at least $1 billion of buybacks planned over the next three months. Chief Executive Sergio Ermotti said the results show UBS approaching the profitability levels it held before its acquisition of Credit Suisse, reflecting three years of integration progress.
Global wealth management attracted $36 billion in net new assets during the quarter, led by $14.3 billion in inflows from Switzerland.
The Americas division recorded a second consecutive quarter of positive inflows at $1 billion, with profit before tax there rising 47% year-on-year. UBS is also advancing nine large-scale artificial intelligence initiatives to strengthen its long-term capabilities.
The bank achieved $1.1 billion in additional cost savings during the quarter, bringing cumulative savings to $12.6 billion, while its cost-income ratio improved to 72.9% from 80.5% a year earlier.
UBS said its Credit Suisse integration remains on track for completion by the end of 2026, with discussions on new Swiss capital requirements continuing among lawmakers. Shares climbed 2.5% following the announcement.