UBS beats profit expectations on market volatility
UBS First-Quarter 2026 Financial Performance
Record Trading Revenue Amid Market Turbulence
ZURICH, April 29 (Reuters) - Swiss bank UBS posted better-than-expected first-quarter net profit on Wednesday, helped by record trading revenue amid market turbulence triggered by the war in the Middle East.
Switzerland's biggest bank reported net profit attributable to shareholders of $3.0 billion in the first quarter of 2026, up 80% year-on-year and beating an average estimate of $2.3 billion in a company-provided poll of analysts.
Investment Banking and Wealth Management Highlights
In its investment banking division, revenue jumped 27% year-on-year, boosted by an all-time high in the trading arm, while underlying transaction-based income in global wealth management rose 17%.
Global wealth management attracted net new assets of $37 billion, with inflows of $5.3 billion in the Americas, a turnaround after wealth outflows in this key growth market clouded a profit jump in the previous quarter.
Market Outlook and Risks
Markets have remained broadly resilient so far in the second quarter, reflecting expectations that a durable diplomatic solution to the Middle East conflict is achievable, UBS said in a statement accompanying its results.
However, risks are elevated and conditions could change quickly, which may affect client sentiment, the bank added.
Share Repurchase Plans and Regulatory Developments
Share Buyback Program
UBS reasserted its intention to repurchase at least $3 billion of shares in 2026, saying it was on track to do so by the end of July and aimed to do more by year-end, depending on visibility of parliamentary deliberations on capital rules.
Swiss Banking Bill and Credit Suisse Integration
A stricter Swiss banking bill aims to prevent a repeat of the traumatic collapse of Credit Suisse, which UBS acquired in a state-engineered emergency takeover in 2023.
The Swiss government last week granted UBS concessions on planned new capital rules but stuck to its key demand that the bank fully capitalise its foreign units, an item on which parliament is the final arbiter.
UBS Response and Future Outlook
UBS will continue to engage constructively on Swiss capital rules, CEO Sergio Ermotti said. "These developments do not, and will not, change who we are as a firm."
The bank is on track to complete integration of Credit Suisse by year-end, unlocking potential for further growth and efficiency gains, UBS said.
Cost Reductions and Staffing
Integration-related expenses dropped in the first quarter and an additional $800 million in cost reductions brought total cumulative savings to $11.5 billion, the bank added. UBS cut staffing levels by about 1,500 full-time employees in the first quarter.
(Reporting by Ariane Luthi; Editing by Jacqueline Wong)
