UBS Group Q2 Earnings Call Highlights

UBS Group NYSE: UBS reported second-quarter 2026 net profit of CHF 2.8 billion and earnings per share of CHF 0.87, as growth in wealth management and the investment bank helped lift underlying pre-tax profit by 45% from a year earlier to CHF 3.9 billion.

Group Chief Executive Officer Sergio Ermotti said the results showed the benefits of the firm’s Credit Suisse integration, which is nearing completion. UBS achieved a return on CET1 capital of about 17% in the first half and said it was close to restoring the profitability level it had before the Credit Suisse acquisition.

“The second quarter provided further evidence of the power of our globally diversified franchise and our potential,” Ermotti said. Group invested assets reached a record CHF 7.3 trillion, supported by inflows into Global Wealth Management and Asset Management.

Revenue growth and cost savings

Chief Financial Officer Todd Tuckner said quarterly revenue increased 16% to CHF 13.3 billion, including 14% growth across UBS’s core franchises. Operating expenses rose 7% amid stronger revenue performance, but declined 7% when excluding variable compensation, litigation and currency effects.

The bank reported eight percentage points of positive operating leverage and a 70% cost-income ratio. On a reported basis, pre-tax profit was CHF 3.6 billion and included CHF 352 million of revenue adjustments and CHF 645 million of integration expenses.

UBS expects about CHF 750 million of additional integration-related expenses in the second half, split roughly evenly between the third and fourth quarters, as it completes the remaining integration work by year-end.

The company generated CHF 1.1 billion of further gross cost reductions during the quarter, bringing cumulative savings since the end of 2022 to CHF 12.6 billion. UBS said it has realized more than 90% of the CHF 13.5 billion in cost synergies it expects from the Credit Suisse acquisition by the end of 2026.

Headcount totaled 112,000 at the end of June, down 4% sequentially and approximately 28% below the 2022 baseline. Ermotti said more than 90% of legacy business applications are no longer in use, enabling the company to accelerate decommissioning and simplify operations.

Wealth management posts broad-based gains

Global Wealth Management generated CHF 2 billion of pre-tax profit, up 38% year over year, as revenue increased 14%. The division attracted CHF 36 billion in net new assets, equal to 3% annualized growth, and CHF 13 billion of net new fee-generating assets.

UBS said client demand for its CIO-led investment solutions remained strong, while mandate penetration reached record levels. Assets in the firm’s MyWay discretionary solution exceeded CHF 40 billion, up 75% from a year earlier.

• Asia Pacific pre-tax profit rose 48%, with a 45% pre-tax margin.
• Americas pre-tax profit increased 47% to a record quarterly revenue level. The region recorded CHF 1 billion in net new assets despite roughly CHF 10 billion of seasonal tax-related outflows.
• EMEA pre-tax profit rose 28%, while net new assets totaled CHF 12 billion.
• Switzerland increased pre-tax profit by 25% and attracted CHF 14 billion of net new assets.

Transaction-based income in wealth management climbed 23% to CHF 1.5 billion, marking the 12th consecutive quarter of double-digit year-over-year growth. UBS said transaction fees in Asia Pacific and the Americas each increased about 30%, aided by activity in structured products and cash equities.

Wealth management net interest income increased 12% to CHF 1.8 billion. UBS expects modest further growth in the third quarter and now expects full-year 2026 wealth management net interest income to rise about 10% from 2025, citing loan growth, higher-than-previously-assumed U.S. dollar rates and an improved deposit mix.

Responding to analyst questions about advisor departures in the U.S., Tuckner said UBS still expects the effects of earlier financial-advisor moves to taper over the course of 2026. He said the firm is recruiting and investing in teams aligned with its profitability targets and continues to expect its Americas wealth business to be a positive contributor to net new assets for the full year.

Investment bank revenue reaches record second-quarter level

The Investment Bank produced record second-quarter revenue of $3.7 billion, up 31% year over year, and pre-tax profit of $1.2 billion, more than double the prior-year quarter. Its pre-tax return on equity exceeded 23%.

Global Banking revenue increased 33% to $693 million. Capital Markets revenue rose 55%, including more than a doubling in leveraged capital markets revenue, while advisory revenue declined 5% as the mergers-and-acquisitions market was skewed toward a limited number of very large transactions, UBS said.

Global Markets revenue rose 31% to just over $3 billion. Equities revenue increased 53%, driven by client activity, elevated cash-equity volumes and strong momentum in Asia Pacific. Fixed income, currencies and rates revenue declined 21%, which UBS attributed to a less favorable environment for its business mix and a selective shift of balance-sheet capacity toward equities.

Tuckner told analysts that the investment bank’s outperformance was driven in part by equity intermediation and disciplined allocation of resources. He said UBS was able to expand revenue without materially increasing its balance sheet, and cited the company’s global diversification and prime brokerage financing franchise as differentiators.

Capital returns and outlook

UBS ended June with a CET1 capital ratio of 14.4% and a CET1 leverage ratio of 4.4%. The company’s tangible book value per share declined 2% sequentially to CHF 26.89, as CHF 3.4 billion of shareholder distributions related to the 2025 dividend and quarterly share repurchases exceeded total comprehensive income.

The bank completed its latest repurchase program and announced another CHF 3 billion program, which it intends to complete no later than the end of the second quarter of 2027. UBS plans to repurchase at least CHF 1 billion of shares over the next three months, subject to financial performance, market conditions, maintaining a CET1 ratio of around 14%, and developments in Swiss parliamentary deliberations on foreign-subsidiary capitalization.

Ermotti said conditions entering the third quarter remained broadly constructive, with healthy client engagement and elevated equity dispersion. However, he cited geopolitical developments, volatile energy prices and uncertainty surrounding inflation and interest rates as potential sources of market volatility. UBS said it is positioned to outperform its 2026 exit-rate return target and achieve its exit-rate cost-income ratio target, while continuing to focus on completing the Credit Suisse integration and investing in growth initiatives.

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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