UBS Group AG

Reported net profit was $2.8 billion and EPS was $0.87. On an underlying basis, pretax profit was $3.9 billion, up 45% year over year; revenues were $13.3 billion, up 16%; return on CET1 capital was 16.4%; and the cost/income ratio was 70%. On a reported basis, pretax profit was $3.6 billion, including $352 million of revenue adjustments and $645 million of integration expenses. Cost reductions reached $1.1 billion in the quarter, bringing cumulative savings since end-2022 to $12.6 billion, and UBS said it remains on track for $13.5 billion of synergies by year-end. The CET1 capital ratio ended at 14.4%, with CET1 leverage ratio at 4.4%; tangible book value per share was $26.89. For guidance, UBS expects 2H integration-related expenses of about $750 million and a full-year tax rate of 23%. GWM NII is expected to rise modestly in 3Q and around 10% for full-year 2026 versus 2025. P&C NII is expected to be flat to slightly higher in 3Q, and P&C full-year credit loss expense is now expected to come in below the prior estimate of around CHF 300 million. NCL exit-rate operating expenses, excluding litigation, are expected to be around $400 million.

Sergio Ermotti framed the quarter as evidence that the Credit Suisse acquisition is now paying off, saying UBS is close to matching pre-deal profitability and has built a stronger, more scalable franchise. He emphasized broad market resilience, strong client sentiment, and the benefits of the firm’s One Bank model, especially in wealth management, the investment bank, and the APAC and Americas regions. He sounded constructive but cautious, noting geopolitical uncertainty and energy-price volatility, while saying UBS is well positioned to outperform its 2026 exit-rate return target and cost/income target.

Todd Tuckner highlighted broad-based earnings strength, with underlying pretax profit of $3.9 billion, revenue of $13.3 billion, and 16.4% return on CET1 capital. He said operating expenses were down 7% excluding variable compensation, litigation, and currency effects, and that UBS achieved 8 points of positive operating leverage. He also pointed to $1.1 billion of quarterly gross cost reductions, $12.6 billion of cumulative savings, CET1 capital ratio of 14.4%, total assets of $1.7 trillion, TLAC of $194 billion, NSFR of 115%, and LCR of 177%. On capital returns, he explained the new $3 billion buyback program, the $1 billion minimum planned in the next 3 months, and the flexibility around timing depending on performance, capital levels, and Swiss parliamentary discussions.

Analysts focused on why the Investment Bank was able to grow revenue without materially expanding balance sheet usage; management said the quarter reflected disciplined resource allocation, stronger equities intermediation, greater use of prime brokerage financing balances, and shifting capital toward areas with better opportunity. Questions on the U.S. wealth adviser exits led management to say the drag should taper through 2026, though there is a lag in reported headcount, and that the Americas wealth franchise is still expected to contribute positively to full-year net new assets. Analysts also pressed on Asia, including China’s ODI rules and Hong Kong affluent-market opportunities; UBS said ODI changes were not a material constraint or immediate flow impact, and that it is selectively investing in adviser capacity and digital scalability while not depending on any single driver like IPO lockups.