The major Swiss bank UBS once again earned significantly more than expected in the first quarter of 2026.
And with the integration of Credit Suisse (CS), it sees itself in the final spurt. The bank earned around three billion US dollars in the first three months of 2026, 80 percent more than in the previous year, as it announced on Wednesday. Analysts on average had only expected 2.4 billion. In the last few quarters, UBS had already earned more than the experts estimated.
Before taxes, the major bank also earned 80 percent more at 3.84 billion. Adjusted for integration costs, UBS reports a pre-tax profit of almost four billion dollars, 54 percent more than a year ago. The bank’s income rose 13 percent to $14.24 billion, while expenses remained more or less stable at $10.33 billion. The cost/income ratio, which is important for a bank, improved significantly to 70.2 percent on an adjusted basis.
High inflow of new money
In its core business – global asset management – the bank attracted $37 billion in net new money in the first quarter. Nevertheless, assets under management fell slightly to $6.9 trillion at the end of March. UBS justifies this with the weaker markets and exchange rate movements.
Meanwhile, CS integration continues to progress. Further cost savings of around 0.8 billion were achieved in the reporting quarter. The level of savings since the beginning of the Restructuring This stands at 11.5 billion. The aim is to reduce costs by 13.5 billion by the end of the year compared to 2022.
In the meantime, UBS wants to continue to be “constructively” involved in the issue of Swiss equity capital regulations and contribute to a “fact-based debate,” UBS boss Sergio Ermotti was quoted as saying in the statement. UBS expects additional capital of 22 billion will be required if the Federal Council’s proposals from last week get through parliament.
UBS satisfied with results
UBS boss Sergio Ermotti was very satisfied with the last quarter: “We achieved an excellent financial result and are still on track to achieve our financial goals for 2026.”
She is also reasonably confident about the future course of business. The markets will continue to be “largely resilient” in the second quarter, it says. This reflected expectations that a lasting diplomatic solution to the conflict in the Middle East could be achieved.
However, while customer activity remains “resilient”, risks remain elevated and circumstances could change rapidly, which could affect customer sentiment and activity.
UBS shares benefit
In SIX trading on Wednesday, UBS shares temporarily gained 4.03 percent to 34.62 euros. It is thus continuing the recovery movement since the decline from February to March.
UBS delivered strong results, benefiting from brisk client activity in various business areas, Canada’s RBC said. The slightly updated schedule for share buybacks also suggests that buybacks could be higher than previously expected.
At JPMorgan there was talk of “very strong” results. The US bank experts now expect an increase in consensus estimates for earnings per share in the low to mid-single digit range for the current year.
dpa AFX
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