UBS Operating Profit Before Tax Rises 27% to $3.587 Billion
Key Facts
UBS lifted operating profit before tax to $3.587 billion in the third quarter of 2026, up 27% from $2.828 billion in the same period a year earlier. Total revenue was $13.350 billion, compared with $12.760 billion a year earlier. Net profit attributable to shareholders rose 8% to $2.690 billion, from $2.481 billion. The results show a divergence between growth in pre-tax profit and net profit, which grew more slowly as tax expenses increased. Those expenses were $887 million, compared with $341 million in the third quarter of 2025, while the effective tax rate was 24.7%.
Pre-tax profit under the adjusted measure used by the bank was $4.077 billion, up 14% year on year, compared with reported profit of $3.587 billion. Return on common equity Tier 1 capital was 14.8%, and 16.7% on an adjusted basis. Chief Executive Sergio Ermotti said strong performance demonstrated the benefits of a diversified global business model and disciplined execution. He added that the results were achieved in an increasingly complex market environment. These indicators reflect performance across more than one measure, as the bank distinguishes between reported and adjusted profit and between the two capital-related returns.
Global wealth management was among the main sources of growth, attracting $55.1 billion in net new assets during the quarter. UBS said this inflow equated to an annualized growth rate of 4.5%, with positive contributions from all regions. The strongest contributions came from Asia Pacific and the Americas. Wealth management revenue rose 8% year on year, while investment bank revenue increased 17%. In its unified global alternatives initiative, the bank recorded a record $12.5 billion in new commitments, with assets under management reaching $371 billion.
Across the bank’s Americas business, pre-tax profit rose 28% year on year, and the profit margin improved by more than 2 percentage points to 16%. Net interest income also climbed 22% during the quarter, with UBS saying the increase benefited from higher interest rates globally. The results combine revenue growth in wealth management and investment banking with higher interest income. In Switzerland, the bank granted or renewed about 40 billion Swiss francs in loans to companies and households during the quarter. It said it continues to finance companies and households in its domestic market alongside its global businesses.
The quarter’s performance coincided with the ongoing integration of Credit Suisse, which UBS said remained on track for completion by the end of 2026. It added that about 90% of legacy applications covered by the integration plan had been fully decommissioned. The bank delivered a further $600 million in gross cost savings during the quarter, bringing cumulative savings to $13.2 billion. It now expects to achieve about $13.7 billion in savings by the end of 2026, compared with a previous ambition of about $13.5 billion. The quarter’s results also included a net loss of $346 million from the repurchase of legacy Credit Suisse debt instruments.
Across the European banking sector, Reuters reported that bank shares had fallen about 10% in the month before the market opened on October 28, amid concerns about lenders’ exposure to euro zone government debt and weak economic prospects. UBS shares closed at $46.79 on October 27, according to EL7 data. The bank said it expects a more typical seasonal sequential slowdown in trading volumes across its businesses in the fourth quarter. By contrast, it expects sequential growth in global banking revenue and a low single-digit increase in net interest income. It also intends to complete a $3 billion share buyback program by the announcement of its fourth-quarter 2026 results.