UBS Plans $3 Billion Buyback After Investment Bank, Wealth Units Lift Profit — Update

By Adria Calatayud

UBS Group said it plans to buy back $3 billion in its own stock over the coming year, after its investment-banking and wealth-management units boosted second-quarter earnings.

The latest buyback plan from the Swiss banking group comes as lawmakers in its home country debate a package of reforms expected to introduce tougher capital requirements on the group's foreign subsidiaries. The reforms are part of an overhaul of Switzerland's banking rules following the meltdown of Credit Suisse three years ago that led to its rescue takeover by UBS.

Executives at UBS had previously signaled they aimed to top up stock buybacks of $3 billion carried out so far this year with new repurchases, but had held off on committing to a specific amount pending clarity on deliberations in the Swiss Parliament.

Strong second-quarter results and healthy capital generation bolstered UBS's balance sheet and allowed it to deliver on its capital-return ambitions, Chief Executive Sergio Ermotti said Wednesday.

UBS said it would launch a new stock-repurchase program of $3 billion due to end by the second quarter of 2027 at the latest. It plans buybacks of at least $1 billion over the next three months.

The bank disclosed its buyback plans as it reported a net profit for the second quarter of $2.8 billion, up from $2.395 billion for the same period last year. Analysts had forecast $2.39 billion, according to consensus estimates compiled by the bank.

UBS said its global wealth management arm and its investment bank drove the group's performance in the second quarter.

Market conditions remain broadly constructive heading into the third quarter, it added.

The bank generated quarterly revenue of $13.7 billion, up 13% on year, and beat analysts' expectations of $13.23 billion.

Revenue jumped 26% at UBS's investment bank, driven by its trading desks and dealmaking operations, and climbed 13% at its wealth-management business. This offset declines in its domestic bank and its asset-management arm.

The group's wealth-management unit attracted $36 billion in net new money in the quarter, after recording $37 billion in asset inflows the prior quarter.

UBS said it is on track to substantially complete the integration of Credit Suisse by the end of the year, as previously planned.

The bank said it is well positioned to exceed its target to end 2026 with return on CET1 capital--a measure of its profitability relative to core capital--of around 15%, and achieve its exit-rate target for a cost-income ratio--which tracks its efficiency--of below 70%.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

July 29, 2026 02:17 ET (06:17 GMT)