UBS Plans $3 Billion Buyback After Investment Bank, Wealth Units Lift Profit — 2nd Update

By Adria Calatayud

UBS Group said it plans to buy back $3 billion in its own stock by mid-2027, after buoyant markets helped traders and wealth managers lift the Swiss banking group's second-quarter earnings.

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

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 pace and amount of buybacks will be determined by the bank's performance supported by markets, its capital ratio and Swiss parliamentary discussions, UBS Chief Financial Officer Todd Tuckner told analysts on a conference call.

Shares in UBS were up 3% in European morning trading, approaching a multiyear high hit earlier this month. The stock rallied since Switzerland watered down some of its proposed new capital demands on UBS in April.

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 investment bank drove the group's performance in the second quarter.

Underlying pretax profit jumped 70% to $3.89 billion, beating consensus expectations of $3.47 billion. Analysts said UBS benefited from favorable markets and that the performance of the group's equities desks stood out.

Market conditions remain broadly constructive entering the third quarter, UBS said.

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.

The bank said quarterly revenue rose 13% to $13.7 billion, ahead of analysts' expectations of $13.23 billion.

Revenue jumped 26% at UBS's investment bank and climbed 13% at its wealth-management business, offsetting declines in its domestic bank and asset-management arm.

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

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

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July 29, 2026 05:07 ET (09:07 GMT)