TLDR
- UBS profit surges 56% as earnings beat expectations and outlook improves
- Bank confirms $3B buyback and lifts dividend 22% on capital strength
- Revenue stabilizes as integration synergies begin supporting margins
- CET1 ratio stays strong while assets climb past $7 trillion milestone
- UBS nears final Credit Suisse integration phase with cost cuts rising
UBS Group AG (UBS) shares closed at $47.67, down 0.19%, and the bank delivered results that pointed to firm momentum. The group posted a strong fourth quarter that exceeded market expectations and shifted attention toward new capital plans. The update highlighted improving profitability as integration efforts moved into their final stage.
Profit Growth Strengthens 2026 Outlook
UBS reported a 56% rise in quarterly net profit to $1.2 billion, and the figure beat market forecasts with ease. The increase contrasted with relatively stable revenue trends, and it reflected tighter execution across major divisions. The bank signaled stronger earnings visibility as integration work continued to shape operating performance.
Group revenue reached $12.1 billion, which met expectations and held firm against mixed quarterly trends. The figure declined from the prior quarter yet rose from the previous year, and it showed stabilizing business activity. UBS released a separate measure that placed revenue net of interest expense at $12.15 billion, slightly above projections.
The bank reported total quarterly revenue of $13.74 billion, and the number reinforced a steady performance backdrop. Full-year profit reached $7.77 billion, supported by revenue of $49.57 billion, and both metrics showed solid recovery after a demanding year. Moreover, the results reflected the early benefits of scale after the absorption of the former Credit Suisse business.
Capital Strength and Share Buyback Plans
UBS ended the quarter with a 14.4% CET1 ratio, and the level remained comfortably above regulatory thresholds. The slight dip from the previous quarter did not alter the bank’s overall capital stance, and management emphasized its balance-sheet flexibility. The group reported a 4.4% CET1 leverage ratio, which reinforced its resilience.
The bank confirmed plans to repurchase at least $3 billion of shares during 2026, and it signaled room for a larger amount. The program followed the completion of a similar $3 billion repurchase for 2025, and the strategy underscored confidence in sustained capital generation. UBS confirmed plans to propose a dividend of $1.10 per share, marking a 22% yearly increase.
Group-invested assets surpassed $7 trillion for the first time, and the milestone highlighted the growing scale of the integrated franchise. The rise reflected stronger engagement across wealth management and asset management, and it supported a more stable revenue mix. The bank expanded its activity across alternative investments and global banking solutions.
Integration Progress and Strategic Direction
UBS advanced its integration agenda, and it transferred about 85% of Swiss-booked accounts onto its systems. The bank made significant progress in personal and corporate banking migration, and it completed key steps in asset management integration. Cumulative cost reductions reached $10.7 billion as the group continued winding down the Non-core and Legacy unit.
Chief executive Sergio Ermotti remained on course to step down in April next year, and the transition aligned with the expected completion of integration work. The bank stated that it remained on track to achieve its 2026 exit-rate targets, and it focused on capturing identified synergies. UBS set 2028 aims that include an 18% return on CET1 capital and a 67% cost-income ratio.
The group strengthened collaboration across divisions through its One Bank model, and it continued investing in technology to support long-term efficiency. UBS expanded its use of AI-driven tools at scale, and it directed resources toward productivity gains across global operations. The bank positioned itself for further growth as it reshaped its post-merger structure.
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