UBS Group (NYSE:UBS) reported fourth-quarter 2025 results marked by higher underlying profitability, continued integration progress following the Credit Suisse acquisition, and updated cost and capital return plans. Group CFO Todd Tuckner and CEO Sergio Ermotti said the firm remains on track toward its post-integration profitability targets, while highlighting that the final phase of Swiss client migrations remains a key dependency for unlocking additional savings.
For the fourth quarter, UBS reported net profit of CHF 1.2 billion and earnings per share of CHF 0.37. Underlying pre-tax profit was CHF 2.9 billion, up 62% year over year, supported by what management described as revenue momentum in core franchises and cost discipline that generated “9 percentage points of positive jaws.” Total revenues rose 10% versus the prior year.
During the quarter, UBS delivered CHF 700 million in gross cost savings tied to technology decommissioning, function integration, and reduced third-party spend. Total operating expenses were 1% higher year over year, with synergy benefits largely offset by higher variable compensation accruals on stronger revenues. Excluding litigation, variable compensation, and currency effects, costs declined 7%.
Reported results included net negative adjustments of CHF 54 million, which management said primarily reflected a net loss of CHF 457 million tied to a November buyback of CHF 8.5 billion of legacy Credit Suisse debt issued at distressed spreads prior to the acquisition, partially offset by other merger-related purchase price accounting (PPA) adjustments. Tuckner said replacing the expensive legacy funding is expected to benefit net interest income in Global Wealth Management (GWM) and Personal & Corporate Banking (P&C) in coming years and reduce funding drag in Non-Core and Legacy (NCL). Integration-related expenses were CHF 1.1 billion in the quarter.
UBS ended the year with CHF 1.6 trillion in total assets, down CHF 15 billion from the third quarter, driven mainly by the liability management exercise and redemptions of other long-term debt. Credit-impaired exposures were stable at 90 basis points quarter over quarter, while annualized cost of risk was 9 basis points. Tangible book value per share grew 1% sequentially to $26.93, with net profit partly offset by share repurchases.
Management highlighted a “fortified” liquidity and funding profile, including total loss-absorbing capacity of CHF 187 billion, a net stable funding ratio of 116%, and a liquidity coverage ratio (LCR) of 183%. UBS expects the LCR to remain around current levels given Swiss liquidity rules that were fully phased in by the end of 2024.
The group’s CET1 capital ratio ended December at 14.4% and the CET1 leverage ratio at 4.4%, both lower sequentially and closer to targets of around 14% and above 4%, respectively. Tuckner attributed the sequential decline largely to CET1 capital reduction as strong operating performance was more than offset by CHF 4.1 billion of accruals for shareholder returns. That included CHF 3.0 billion related to intended share repurchases in 2026 and CHF 1.1 billion tied to the full-year 2025 ordinary dividend. UBS proposed an ordinary dividend of $1.10 per share, up 22% year over year.
On buybacks, management reiterated plans to repurchase $3 billion of shares in 2026 and said it aims to do more, depending on financial performance, maintaining a CET1 ratio of around 14%, and clarity on Switzerland’s future regulatory regime. Tuckner also said UBS may begin accruing later in 2026 for a portion of a 2027 buyback, depending on the same factors.
UBS also discussed capital upstreaming to UBS AG. In the fourth quarter, the parent bank’s standalone, fully applied CET1 ratio increased to 14.2% from 13.3% sequentially, reflecting CHF 9 billion of capital returned from subsidiaries. Management said around CHF 4 billion came from Credit Suisse International in the U.K., roughly CHF 3 billion from the U.S. intermediate holding company, and the remainder from other foreign subsidiaries. These distributions increased the parent bank’s equity by around CHF 2 billion, reduced investments in subsidiaries by around CHF 6.5 billion, and resulted in a CHF 26 billion reduction in parent-bank RWAs.
In Q&A, management said the pace of upstreaming has accelerated versus earlier expectations, though it had always planned to upstream that capital. Tuckner said FX-driven headwinds on leverage ratios require pacing intercompany dividends, and UBS now expects UBS AG to operate with a standalone CET1 ratio of around 14% “for the foreseeable future.”
On Swiss regulatory reform, management said the timing, effective date, and phase-in of expected capital ordinance measures would need to be confirmed by the Swiss Federal Council when published later in the first half. UBS indicated it is maintaining flexibility in dividend upstreaming and buyback decisions while awaiting clearer rules.
Global Wealth Management posted fourth-quarter pre-tax profit of CHF 1.6 billion, up from CHF 1.1 billion a year earlier, as revenues increased 11% and invested assets reached CHF 4.8 trillion. Net new assets were CHF 8.5 billion in the quarter, with inflows across EMEA, APAC, and Switzerland partially offset by CHF 14 billion of outflows in the Americas, which UBS said largely reflected recruiting-related impacts. For full-year 2025, GWM reported net new assets of CHF 101 billion (2.4% growth) and pre-tax profit excluding litigation of CHF 6.1 billion, up 23%.
UBS said recurring net fee income rose 9% to CHF 3.6 billion, transaction-based revenues were up 20% to CHF 1.2 billion, and net interest income (NII) increased 3% year over year to CHF 1.7 billion. For the first quarter, UBS expects a low single-digit percentage decline in GWM NII, with positive loan volume and deposit mix effects more than offset by day count and deposit rates. For full-year 2026, management expects GWM NII to increase by low single digits year over year.
Personal & Corporate Banking reported fourth-quarter pre-tax profit of CHF 543 million, down 5%, primarily due to lower interest rates weighing on NII, which declined 10%. UBS said pricing measures helped mitigate headwinds from Switzerland’s zero-rate environment. Despite expecting Swiss franc rates to remain at current levels through 2026, management said P&C full-year NII is modeled to increase by a mid-single-digit percentage in U.S. dollars, supported by FX translation, the liability management exercise, and loan growth. UBS expects quarterly credit loss expense of around CHF 75 million on average given a mixed Swiss credit backdrop and a more challenging economic outlook.
Asset Management delivered pre-tax profit of CHF 268 million, up 20%, driven by higher revenues and lower costs. The quarter included a CHF 29 million loss related to the sale of the O’Connor business; excluding disposals, pre-tax profit was up 41%. Net new money was CHF 8 billion in the quarter, and invested assets were CHF 2.1 trillion. UBS cited CHF 9 billion of net new client commitments in Unified Global Alternatives, including CHF 8 billion from GWM clients.
Investment Bank pre-tax profit rose 56% to CHF 703 million as revenues increased 13%. UBS said 2025 was the investment bank’s strongest top-line year on record, with CHF 11.8 billion of revenue, up 18%, achieved with “essentially no incremental RWA.” Global Markets revenues rose 17% in the quarter to CHF 2.2 billion, with Equities up 9% and FRC up 46%, supported by FX and precious metals. Management said it would provide a more detailed FRC split between FX and precious metals after the call.
Non-Core and Legacy generated a pre-tax loss of CHF 224 million in the quarter. UBS said operating expenses in NCL were down nearly 60% year over year, RWAs ended at CHF 29 billion, and legacy risk-weighted assets and leverage ratio denominator (LRD) declined by CHF 6 billion, or 25%, to CHF 19 billion.
Looking ahead, management guided to an underlying return on CET1 capital of approximately 13% and a cost-income ratio of around 73% for full-year 2026, with savings weighted to the second half as decommissioning work ramps after Swiss booking center migrations are completed. UBS said it has delivered CHF 10.7 billion of cumulative gross run-rate cost saves to date and increased its gross cost savings ambition to CHF 13.5 billion, reflecting an additional CHF 500 million of identified synergies.
UBS Group AG is a Swiss multinational financial services firm that provides a broad range of banking and capital markets services to private, institutional and corporate clients. Headquartered in Zurich, UBS operates as a universal bank with a primary focus on wealth management, asset management, investment banking and retail and commercial banking in Switzerland. The firm serves high-net-worth and ultra-high-net-worth individuals, pension funds, corporations and institutional investors through a global network of offices.
Key business activities include global wealth management—offering financial planning, investment advisory, discretionary portfolio management and custody services—alongside asset management products for institutional and retail investors.
