UBS Profit Climbs as Asia, Americas Growth Boosts Inflows — Update

By Michael Hennessey

UBS Group reported a rise in third-quarter net profit, boosted by higher inflows to its wealth-management platform from Asia and the Americas.

The Swiss banking group said net profit for the third quarter was $2.69 billion, up from $2.48 billion in the year-earlier period. The figure was lower than analysts' expectations of $2.71 billion, according to consensus estimates compiled by the bank.

UBS said its results were helped by the addition of $55.1 billion of net new assets in global wealth management, representing a 4.5% annualized growth rate. UBS noted particularly strong inflows in the Asia Pacific region and the Americas.

Revenue grew to $13.35 billion from $12.76 billion. This exceeded expectations of $13.10 billion, according to the same consensus.

The latest results come as the company is caught in a dispute with lawmakers in its home country over proposals 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 that led to its rescue takeover by UBS.

Under a bill now making its way through the Swiss parliament, UBS would have to add around $16 billion more in equity capital because of the adjustments.

UBS said Wednesday that it remains committed to its global and regional footprint, following reports that the bank could seek to exit Switzerland in response to the changes.

Chief Executive Sergio Ermotti said the bank would continue to engage constructively with parliament to seek a solution that supports the country's financial stability without imposing undue costs on its shareholders and hurting its long-term competitive position.

UBS said investor sentiment remains measured as the bank enters its fourth quarter. It cautioned for a "more typical sequential seasonal moderation" in transaction volumes across its businesses in the fourth quarter.

The bank expects fourth-quarter net interest income to increase by a low-single-digit percentage sequentially in global wealth management and increase slightly in personal and corporate banking.

UBS said the fourth-quarter performance in the global markets unit might seem weaker by comparison to last year's strong performance, while it expects a sequential rise in global banking revenue.

It expects to end 2026 with a CET1 capital ratio at or very close to its target of around 14%, including a possible accrual for the start of its planned 2027 share buyback program. The CET1 ratio was 14.7% at the end of September, compared with 14.8% a year ago.

Write to Michael Hennessey at michael.hennessey@wsj.com

(END) Dow Jones Newswires

October 28, 2026 02:55 ET (06:55 GMT)