UBS delivered a robust second-quarter performance, posting a net profit of $2.8 billion that comfortably exceeded the $2.4 billion average analyst forecast. The Swiss banking giant generated total revenue of $13.7 billion, up 13% year-on-year, and an underlying profit before tax of $3.9 billion. Diluted earnings per share came in at $0.87, while the return on common equity tier-one capital reached 15.4%.
Global Wealth Management remained the core driver, attracting $36 billion in net new assets during the quarter – pushing first-half inflows to $73 billion. Underlying revenue in the division rose 14% to nearly $7 billion, powered by a 23% jump in transaction-based income. Meanwhile, the Investment Bank saw underlying revenue leap 31%, with record second-quarter results in Global Markets and a 33% revenue increase in Global Banking.
Group invested assets hit an all-time high of $7.3 trillion, underscoring the franchise’s expanding scale. The Credit Suisse integration continued to deliver cost savings, adding another $1.1 billion in gross savings to reach $12.6 billion cumulatively since 2022. UBS remains on track for approximately $13.5 billion in savings by end-2026, with over 90% of legacy applications decommissioned.
UBS completed its previous buyback program and launched a fresh $3 billion share repurchase plan, pledging to buy back at least $1 billion within the next three months. The bank ended the quarter with a CET1 capital ratio of 14.4%, comfortably above its ~14% target, giving management room to continue accruing for mid-teens percentage dividend growth.
Despite the strong operational momentum, the shares still face an overhang from Swiss parliamentary decisions on foreign-subsidiary capital treatment. CEO Sergio Ermotti noted that the integration and shareholder patience are starting to yield visible returns, but the political uncertainty may limit valuation uplift in the near term.
