UBS Group Q2 Earnings Call Highlights

UBS Group Q2 Earnings Call Highlights

UBS Group NYSE: UBS reported second-quarter 2026 net profit of CHF 2.8 billion and earnings per share of CHF 0.87, as growth in wealth management and the investment bank helped lift underlying pre-tax profit by 45% from a year earlier to CHF 3.9 billion.

Group Chief Executive Officer Sergio Ermotti said the results showed the benefits of the firm’s Credit Suisse integration, which is nearing completion. UBS achieved a return on CET1 capital of about 17% in the first half and said it was close to restoring the profitability level it had before the Credit Suisse acquisition. “The second quarter provided further evidence of the power of our globally diversified franchise and our potential,” Ermotti said. Group invested assets reached a record CHF 7.3 trillion, supported by inflows into Global Wealth Management and Asset Management.

Revenue growth and cost savings Chief Financial Officer Todd Tuckner said quarterly revenue increased 16% to CHF 13.3 billion, including 14% growth across UBS’s core franchises. Operating expenses rose 7% amid stronger revenue performance, but declined 7% when excluding variable compensation, litigation and currency effects. The bank reported eight percentage points of positive operating leverage and a 70% cost-income ratio. On a reported basis, pre-tax profit was CHF 3.6 billion and included CHF 352 million of revenue adjustments and CHF 645 million of integration expenses. UBS expects about CHF 750 million of additional integration-related expenses in the second half, split roughly evenly between the third and fourth quarters, as it completes the remaining integration work by year-end. The company generated CHF 1.1 billion of further gross cost reductions during the quarter, bringing cumulative savings since the end of 2022 to CHF 12.6 billion. UBS said it has realized more than 90% of the CHF 13.5 billion in cost synergies it expects from the Credit Suisse acquisition by the end of 2026. Headcount totaled 112,000 at the end of June, down 4% sequentially and approximately 28% below the 2022 baseline. Ermotti said more than 90% of legacy business applications are no longer in use, enabling the company to accelerate decommissioning and simplify operations.

Wealth management posts broad-based gains Global Wealth Management generated CHF 2 billion of pre-tax profit, up 38% year over year, as revenue increased 14%. The division attracted CHF 36 billion in net new assets, equal to 3% annualized growth, and CHF 13 billion of net new fee-generating assets. UBS said client demand for its CIO-led investment solutions remained strong, while mandate penetration reached record levels. Assets in the firm’s MyWay discretionary solution exceeded CHF 40 billion, up 75% from a year earlier. Asia Pacific pre-tax profit rose 48%, with a 45% pre-tax margin. Americas pre-tax profit increased 47% to a record quarterly revenue level. The region recorded CHF 1 billion in net new assets despite roughly CHF 10 billion of seasonal tax-related outflows. EMEA pre-tax profit rose 28%, while net new assets totaled CHF 12 billion. Switzerland increased pre-tax profit by 25% and attracted CHF 14 billion of net new assets. Transaction-based income in wealth management climbed 23% to CHF 1.5 billion, marking the 12th consecutive quarter of double-digit year-over-year growth. UBS said transaction fees in Asia Pacific and the Americas each increased about 30%, aided by activity in structured products and cash equities. Wealth management net interest income increased 12% to CHF 1.8 billion. UBS expects modest further growth in the third quarter and now expects full-year 2...