UBS Group Q1 Earnings Call Highlights

Key Points

• UBS has completed the migration of former Credit Suisse clients onto UBS platforms, with retention rates well above expectations and a goal to substantially finish integration by year-end while continuing workforce reductions and legacy decommissioning.
• The bank reported strong Q1 results—reported net profit of CHF 3 billion (underlying pre-tax profit CHF 4 billion), revenues of CHF 13.6 billion and a 14.7% CET1 ratio—and said it expects to complete its $3 billion share repurchase by July.
• Management warned that proposed Swiss capital rules could require UBS to hold about CHF 22 billion in additional CET1 capital (on top of CHF 15 billion already required), which it says would be trapped, unproductive capital that could hurt competitiveness and returns.

UBS Group NYSE: UBS reported strong first-quarter 2026 results and said it has completed the migration of former Credit Suisse clients onto UBS platforms, a key milestone in the bank’s ongoing integration. Management also reiterated its commitment to capital returns, while warning that proposed Swiss capital rules could require the firm to hold what it described as a significant amount of additional, “trapped” capital.

First-quarter performance and outlook

Group CEO Sergio Ermotti said UBS delivered “excellent first quarter results” despite what he described as an increasingly complex macro backdrop. He cited a 17% return on CET1 capital and a 70% cost-income ratio, saying the bank remains on track to meet its 2026 financial objectives.

Ermotti described a quarter that began with steady growth and easing inflation but shifted to higher market volatility amid “rising uncertainty driven by concerns over AI-driven disruption and the conflict in the Middle East.” He said client engagement increased as investors sought to protect assets and find opportunities, adding that markets remained “broadly resilient” early in the second quarter, though “risks are still elevated, and conditions could shift rapidly.”

Integration milestone and efficiency efforts

Ermotti said UBS completed the March migration of Swiss book clients and that “the migration of former Credit Suisse clients onto UBS platforms is now complete.” He said client activation and feedback have been positive and that retention rates “have far exceeded our expectations.”

He added that UBS is now focused on “substantially completing the integration by year-end” and restoring profitability levels seen before the acquisition. He also said the bank will continue workforce reductions “in line with our previously communicated plans” and highlighted that decommissioning legacy infrastructure is expected to support further efficiencies and enable greater focus on growth.

Chief Financial Officer Todd Tuckner said UBS delivered an additional CHF 800 million of gross cost reductions in the quarter, bringing cumulative savings since the end of 2022 to CHF 11.5 billion, which he said represents 85% of UBS’s CHF 13.5 billion gross cost-saving target by the end of 2026. Total headcount ended March at 117,000, down 2% sequentially and about 25% below the 2022 baseline, according to Tuckner.

Financial results, capital and buyback timing

Tuckner reported reported net profit of CHF 3 billion and earnings per share of CHF 0.94. On an underlying basis, UBS posted pre-tax profit of CHF 4 billion, up 54% year over year. He said revenues increased to CHF 13.6 billion, with an 18% increase across core franchises.

On a reported basis, Tuckner said pre-tax profit of CHF 3.8 billion included CHF 600 million of revenue adjustments and CHF 750 million of integration expenses. UBS expects integration costs of about CHF 700 million in the second quarter, with costs expected to “meaningfully taper throughout the rest of the year.”

The bank’s CET1 capital ratio was 14.7% at the end of March, while the CET1 leverage ratio was 4.4%, both higher sequentially, Tuckner said. He added that UBS expects to maintain a CET1 ratio “of around 14% at year-end,” and noted that capital return intentions will be calibrated based on performance, outlook, and the evolving regulatory debate.

Ermotti said UBS now expects to complete its current $3 billion share repurchase program by the time it reports second-quarter results in July. Asked what drove the change in buyback wording, management pointed to two factors: integration progress—particularly the completed client migration—and “very strong business performance,” which Ermotti said is supporting capital generation. He said it was “premature” to discuss the magnitude of potential buybacks in the second half.

Business division highlights

• Global Wealth Management: Tuckner said GWM delivered nearly CHF 2 billion of pre-tax profit, up 28% year over year, with a 72% cost-income ratio. Net new assets totaled CHF 37 billion and net new fee-generating assets were CHF 38 billion. Asia Pacific generated CHF 600 million of pre-tax profit, up 40%, and recorded CHF 19 billion of net new assets. In the Americas, net new assets were CHF 5 billion, with management expecting seasonal U.S. tax-related outflows in the second quarter “in the CHF low double-digit billions,” while still expecting full-year net new assets in the Americas to be positive.
• Personal & Corporate Banking: UBS reported CHF 710 million of pre-tax profit, up 19%, with net new deposits of CHF 3.5 billion and net new loans of CHF 2.4 billion. Net interest income declined 3% year over year, reflecting what management described as the impact of the Swiss “zero rate environment” since last June, while sequential NII was stable. UBS said it continues to expect credit loss expense to average around CHF 75 million per quarter, citing macro uncertainty.
• Asset Management: Pre-tax profit rose 21% to CHF 252 million. UBS posted CHF 14 billion of net new money, led by CHF 13 billion into ETFs and CHF 5 billion into U.S. SMA, according to management. Unified Global Alternatives ended the quarter with CHF 344 billion of invested assets and attracted CHF 12 billion of new commitments.
• Investment Bank: UBS said the Investment Bank delivered its most profitable first quarter on record, with CHF 1.2 billion of pre-tax profit, up 75%, and a 25% pre-tax ROE. Revenues climbed 31% to CHF 4 billion. Global Markets revenues were CHF 3.3 billion, which management said was the best quarterly performance on record, while Global Banking revenues rose 30% to CHF 733 million, including year-over-year ECM revenue growth that “more than doubled.”

Capital regulation debate and client behavior themes

Ermotti addressed Switzerland’s proposed bank capital regulation, saying UBS “strongly disagree[s]” with the package because it is “not proportionate or aligned with international standards” and “does not reflect the root causes” of the Credit Suisse crisis. He said there is “broad agreement” the measures would require UBS to hold around CHF 22 billion in additional CET1 capital, on top of CHF 15 billion already required due to the acquisition under existing rules. Ermotti said that if finalized as drafted, this capital would be “trapped and unproductive” and could hurt UBS’s competitiveness, investment capacity, and sustainable returns.

In Q&A, management said it would not make strategic decisions about footprint or focus areas before the parliamentary process provides a final outcome, though Ermotti acknowledged the ongoing uncertainty is “not ideal.” UBS also said it continues to invest heavily in cyber resilience, with Ermotti calling cyber risk “as important as credit and market risk nowadays.”

On client behavior, management said the Middle East conflict is reinforcing the importance of “safety and balance sheet trust” in wealth management. UBS said it is “very early” to see meaningful booking center shifts, but believes some clients may reassess options over time. On private credit, management said interest has become “more measured” amid a preference for liquidity and capital preservation, while noting continued demand for well-structured strategies and that client portfolio exposure to private credit remains “quite minor.”

About UBS Group NYSE: UBS

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.

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