ZURICH: UBS Group AG delivered a robust set of second-quarter results on Tuesday, posting a net profit of $2.8 billion and showcasing the strength of its integrated franchise nearly three years after the historic acquisition of Credit Suisse.
The Swiss banking giant reported a profit before tax (PBT) of $3.6 billion for the quarter, surging 64% year-over-year. On an underlying basis, PBT was even stronger at $3.9 billion, underscoring the momentum across its core businesses. For the first half of 2026, UBS recorded a net profit of $5.8 billion on total revenues of $27.9 billion, a statement said.
“We are well positioned to outperform our 2026 exit-rate return target,” said CEO Sergio P. Ermotti in a statement. “The journey was not a straight line. It required a lot of hard work from my colleagues and painful decisions. Now these efforts are paying off and the extraordinary patience and support of our shareholders is starting to be rewarded.”
Client Momentum and Record Assets
The results were driven by strong client activity across all divisions. Global Wealth Management (GWM) reported net new assets of $36 billion in the quarter and $73 billion in the first half, fueled by robust inflows in Switzerland, EMEA, and APAC. Asset Management also saw net new money of $6 billion in Q2.
This strong demand pushed the group’s total invested assets to a record $7.3 trillion.
The Investment Bank also delivered a standout performance, with record second-quarter revenues. Global Markets saw a 31% year-over-year increase in underlying revenues, while Global Banking revenues jumped 33%, driven by a notable performance in Capital Markets.
Integration on Track and Cost Synergies
UBS confirmed that the integration of Credit Suisse is on track for substantial completion by the end of 2026. The firm delivered an additional $1.1 billion in gross cost savings during the quarter, bringing the cumulative savings since the end of 2022 to $12.6 billion.
The decommissioning of legacy IT systems is advancing well, with more than 90% of legacy applications no longer in use and ~70% already fully decommissioned. “We are on track to deliver our ~$13.5 billion ambition by the end of 2026,” the bank stated.
Capital Returns and Outlook
UBS continues to strengthen its balance sheet, reporting a Common Equity Tier 1 (CET1) capital ratio of 14.4% and a leverage ratio of 4.4%, both above the bank’s stated guidance.
Building on this strength, UBS is returning more capital to shareholders. The company completed its latest share repurchase program in July and has initiated a new $3 billion program, which is expected to run until the end of the second quarter of 2027. The bank also confirmed it is accruing for a mid-teens percentage growth in its dividend.
“We plan to repurchase at least $1 billion of shares over the next three months,” the firm noted, while acknowledging that the pace remains subject to maintaining a CET1 ratio of around 14% and visibility on regulatory discussions.
Investing for the Future
Looking ahead, UBS is investing heavily in technology, particularly in artificial intelligence. The bank currently has 560 live AI use cases in production—a 92% increase year-over-year—with 920 more in development.
The firm also highlighted its role in the Swiss economy, granting or renewing approximately CHF 40 billion of loans to Swiss businesses and households in the second quarter.
Outlook
As the bank enters the third quarter, it notes that market conditions remain broadly constructive, though geopolitical developments and volatile energy prices present a level of uncertainty. The bank expects GWM net interest income to increase modestly in Q3, while Personal & Corporate Banking net interest income is projected to be flat to slightly higher.
