Wednesday, July 30, 2025, UBS Group AG headquarters in Zurich, Switzerland.
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major swiss banks UBS on Wednesday reported better-than-expected third-quarter net income due to strong performance in its investment banking business and the release of legal provisions.
Net income attributable to shareholders was $2.5 billion for the three-month period, an increase of 74% from $1.43 billion in the year-ago period. Analysts had expected third-quarter net income to be $1.85 billion, according to consensus compiled by LSEG.
Switzerland’s largest bank said the net gain included a release from litigation reserves of $668 million, primarily from the resolution of legal issues related to Credit Suisse’s mortgage-backed securities business and traditional cross-border activities in France.
UBS’s third-quarter revenue was $12.76 billion, slightly above analysts’ expectations of $12.68 billion.
UBS shares rose 2% shortly after the opening bell on Wednesday. The stock is up more than 13% since the beginning of the year.
“We are very pleased that the breadth and quality of our diversified business model has once again delivered very strong results,” UBS CEO Sergio Ermotti told CNBC’s Carolyn Ross.
Emmotti said investments in strategic areas were paying off and the bank reported that its complex integration with Credit Suisse was progressing well. The integration process of the domestic rivals is expected to be completed by the end of next year.
UBS announced that $10 billion of the $13 billion in projected cost savings had been reached significantly ahead of schedule, noting that more than two-thirds of customer accounts booked in Switzerland had been migrated.
UBS formally completed a legal takeover of a domestic rival in 2023 as part of a state-backed rescue package.
However, the bank now faces the possibility of a significant increase in mandatory capital requirements as the government seeks to learn from the Credit Suisse collapse and reduce risks to taxpayers and the economy.
Meanwhile, UBS said in June that it supports most of the proposed regulations outlined by the Swiss parliament, but “strongly opposes” any “drastic” increase in capital requirements.
Market sentiment ‘can change rapidly’
UBS announced that its wealth management business attracted $38 billion in net new assets in the third quarter.
Looking ahead, UBS said the bank is “likely to continue to see further modest gross revenue and net profit savings in the fourth quarter” as it continues to focus on the transition to its Swiss platform and seasonal labor cost increases.
The Swiss bank noted that market volatility has spiked recently and said investors appear increasingly focused on hedging downside risks.
Swiss bank UBS’s stock price performance since the beginning of the year
“Against this backdrop, trading activity and our deal pipeline remain healthy, but sentiment may change rapidly as confidence in the outlook is tested and seasonal effects emerge,” UBS said in a statement.
“Furthermore, macro uncertainties along with the appreciation of the Swiss franc and the US tariff hike are clouding the outlook for the Swiss economy, and a prolonged US government shutdown could slow down capital market activity.”
Earlier this month, the Swiss government cut its economic forecast for 2026, citing US President Donald Trump’s tariff policies. In August, the White House imposed a 39% tariff on Swiss goods sent to the United States after the Swiss delegation failed to reach an agreement with U.S. officials.
This represents one of the highest country-specific tariffs ever imposed by the Trump administration.
