UBS profit rises 17% as bank sets $3bn buyback

UBS said on Wednesday that second-quarter net profit rose 17% to $2.8 billion, driven by investment banking, and announced a further $3 billion share repurchase programme to be completed by mid-2027.

The Swiss banking group’s profit was above the $2.38 billion average expected by analysts surveyed by Swiss agency AWP. Chief executive Sergio Ermotti said the results and capital generation had strengthened UBS’s balance sheet.

UBS said revenues from its investment bank rose 26%, helped by strong market volatility. The Zurich-based bank described the period as a record second quarter for its global markets business, with record results in equities, services and financing.

The bank said its wealth management division recorded a 13% increase in revenue, supported by fees from client transactions. New capital inflows into the division totalled $36 billion.

UBS said market conditions remained “broadly constructive” entering the third quarter, but said geopolitical developments and volatile energy prices were creating high levels of uncertainty. It said this could contribute to changes in macroeconomic conditions, periods of elevated volatility and more measured investor sentiment.

UBS also said the integration of Credit Suisse was on track to be substantially completed by the end of this year. The bank said it achieved another $1.1 billion in cost savings during the second quarter, taking cumulative savings since the start of the integration to $12.6 billion out of a $13.5 billion target for the end of 2026.

Credit Suisse collapsed in March 2023, prompting the Swiss government, the central bank and regulators to push UBS into a $3.25 billion takeover.

The collapse of Credit Suisse led Bern to seek tighter banking rules. Proposed reform measures are due to be debated in parliament in the coming months. UBS opposes proposals on capital reserves for foreign subsidiaries, saying tighter rules could put it at a disadvantage against foreign competitors. The government’s proposal would involve about $20 billion in additional reserves, according to its calculations, or $22 billion according to UBS.