UBS posts $2.8 billion Q2 profit, beats estimates and launches $3 billion buyback

Earnings beat

UBS reported a net profit of $2.80 billion for the second quarter of 2026, a 17% increase from the same period a year earlier. Pre-tax profit surged 64% to $3.59 billion, though the prior-year quarter had included a one-off positive tax effect that did not recur. On an adjusted basis, stripping out restructuring costs, pre-tax profit reached $3.89 billion, up 45%. Revenues climbed 13% to $13.70 billion, while operating expenses rose a modest 2.4% to $9.99 billion. The cost/income ratio stood at 72.9%, or 70.0% on an adjusted basis. The results exceeded analyst consensus forecasts.

Wealth management inflows

The global wealth management division attracted net new money of $35.5 billion during the quarter. Total invested assets across the group reached a record $7,326 billion at the end of June, up from $6,881 billion at the end of March. In the United States, a strategically important market where UBS had previously struggled with outflows and low profitability, net new money was $1 billion. The investment bank benefited from heightened market volatility and client trading activity, particularly in equities, aided by the mega-IPO of SpaceX.

Credit Suisse integration

UBS said the integration of Credit Suisse, acquired in 2023, is on track for substantial completion by the end of 2026. More than 90% of inherited applications are no longer in use, and around 70% have been fully decommissioned. The bank achieved additional cost savings of $1.1 billion in the second quarter, bringing the total expected run-rate savings from the integration to $13.5 billion by year-end.

From the start I made clear that the acquisition of Credit Suisse was not a gift to us, but rather a trophy we had to earn.

Capital returns and buybacks

UBS announced a new share buyback program of up to $3 billion, running until the end of the second quarter of 2027. In the next three months, the bank plans to repurchase at least $1 billion of its own shares. The pace of buybacks will depend on market conditions, the bank's CET1 capital ratio target of around 14%, and additional clarity on parliamentary discussions regarding capital requirements for foreign subsidiaries. At the end of June, the CET1 ratio was 14.4% and the CET1 leverage ratio was 4.4%. UBS also set aside provisions for a dividend increase in the mid-teens percentage range. The bank had already bought back about $2.3 billion of shares in 2026 up to July 17.

Outlook and uncertainties

UBS described the market environment at the start of the third quarter as "overall constructive," supported by solid client activity and broad-based market leadership. However, it cautioned that geopolitical developments and volatile energy prices are creating uncertainty about the future path of inflation and interest rates.

At the start of the third quarter, the market environment remains overall constructive, supported by solid client activity, increasingly broad-based market leadership, and historically high dispersion in equity markets.

The bank's shares have risen roughly 11% year-to-date, partly reflecting investor expectations that the dispute between Finance Minister Karin Keller-Sutter and UBS over capital requirements will end in a compromise.