UBS reports 3Q26 net profit of USD 2.7bn and 14.8% RoCET1, continued strong client momentum and disciplined execution across businesses (Ad hoc announcement pursuant to Article 53 of the SIX Exchange Regulation Listing Rules)

ZURICH--(BUSINESS WIRE)--Regulatory News: UBS (NYSE:UBS) (SWX:UBSN): “In an increasingly complex market environment, our strong third-quarter performance once again demonstrated the benefits of our diversified global business model and disciplined execution.“ “The breadth and depth of our global franchise and our unwavering commitment to serving our clients were reflected in robust client momentum, including USD 55 billion of net new assets in Global Wealth Management, with particularly strong inflows in APAC and the Americas. Against the current backdrop, we are staying close to clients to help them navigate the market conditions and capture opportunities.” “UBS remains strategically committed to its diversified business model and its global and regional footprint. As the political process on future regulatory requirements in Switzerland progresses, we will continue to engage constructively in the hope that Parliament will reach a solution that supports the country’s financial stability without imposing undue costs on UBS’s shareholders, clients and employees and without impacting its long-term competitive position.” Sergio P. Ermotti, UBS Group CEO Selected financials for 3Q26 USD 2.7bn Net profit 14.8% RoCET1 capital USD 3.6bn Profit before tax 72.3% Cost/income ratio 14.7% CET1 capital ratio USD 0.85 Diluted EPS 16.7% Underlying1 RoCET1 capital USD 4.1bn Underlying1 profit before tax 68.7% Underlying1 cost/income ratio 4.6% CET1 leverage ratio Highlights Strong financial performance with 3Q26 PBT of USD 3.6bn and underlying PBT of USD 4.1bn, net profit of USD 2.7bn, RoCET1 of 14.8% and underlying RoCET1 of 16.7% On track to exceed our 2026 underlying RoCET1 exit rate target and achieve our underlying cost/income ratio target; 9M26 underlying RoCET1 of 16.7% and underlying cost/income ratio of 69.6% Robust client momentum across our businesses; 3Q26 Global Wealth Management (GWM) net new assets of USD 55.1bn; record USD 12.5bn in client commitments in the quarter in UGA across GWM and Asset Management; Personal & Corporate Banking net new investment products growth rate of 7%; underlying Global Markets revenues up 17% YoY Integration on track for completion by year-end; decommissioning plans close to completion, with nearly all legacy applications in scope no longer in use and ~90% already fully decommissioned. Delivered an additional USD 0.6bn in gross cost savings in 3Q26; cumulative gross cost savings up to USD 13.2bn; now expect to reach a total of USD ~13.7bn in savings by end-2026, above our previous ambition of USD ~13.5bn A reliable partner for the Swiss economy; granted or renewed CHF ~40bn of loans to Swiss businesses and households in 3Q26 as we continue to support clients with our leading credit offering and unique global capabilities and footprint; Personal & Corporate Banking 3Q26 net new loans of CHF 3.3bn Strong capital position and balance sheet for all seasons; CET1 capital ratio of 14.7% and CET1 leverage ratio of 4.6%; continued to accrue for mid-teens percentage growth in dividend and execute on our USD 3bn share repurchase program. We intend to complete the buyback program by the time we report 4Q26 results2 Strategically committed to our diversified, global franchise and footprint, investing in technology, global capabilities and talent to drive long-term, sustainable growth and higher returns; contributing to fact-based deliberations on the Swiss capital framework Information in this news release is presented for UBS Group AG on a consolidated basis unless otherwise specified. 1 In this news release the term underlying refers to underlying results which exclude items of profit or loss that management believes are not representative of the underlying performance. Underlying results are a non-GAAP financial measure and alternative performance measure (APM). Refer to “Group Performance” and “Appendix-Alternative Performance Measures” in the UBS Group third quarter 2026 report for a reconciliation of underlying to reported results and definitions of the APMs; 2 The amount and pace of share repurchases will remain subject to our short-term financial performance and outlook, maintaining a CET1 capital ratio of around 14% and further visibility on the deliberations by the Swiss Parliament on the capitalization of foreign subsidiaries. Third quarter 2026 performance overview Strong financial performance driven by disciplined execution and commitment to serving clients In 3Q26, we reported a profit before tax (PBT) of USD 3,587m and USD 4,077m on an underlying basis, up 27% YoY and 14% YoY, respectively, driven by higher underlying PBT across each of our core business divisions. The Group delivered the sixth consecutive quarter of positive operating leverage. Our performance this quarter continues to highlight the benefits of our diversified global business model and disciplined execution for our clients. Reported revenues were USD 13,350m, up 5% YoY. On an underlying basis, revenues increased by 10% to USD 13,387m, with a 3% YoY increase in revenues in our core businesses. GWM underlying revenues increased 8% YoY to USD 6,898m, mainly driven by a 9% increase in recurring net fee income and 8% rise in net interest income. The Investment Bank delivered a record third quarter of underlying revenues, propelled by a 17% increase in Global Markets to USD 2,548m, led by a 22% increase in Equities, supported by higher client balances, market share gains and strong activity in Corporate Derivatives and Structured Products. Group invested assets were USD 7.3trn. GWM net new assets for the quarter totaled USD 55.1bn, representing a 4.5% annualized growth rate, with positive contributions across all regions and led by APAC and the Americas. In the Americas, we continued to execute our strategy with discipline, driving growth and delivering further improvements in profitability. PBT increased by 28% YoY, and the PBT margin improved by over 2 percentage points YoY to 16%. Our Unified Global Alternatives initiative across GWM and Asset Management saw a record USD 12.5bn in new commitments in the quarter with assets under management up to USD 371bn. We remain a reliable partner for the Swiss economy continuing to support businesses and households with our global reach, advice and expertise. We granted or renewed CHF ~40bn of loans to businesses and households in 3Q26, underscoring our position as the leading provider of credit to the economy. Client momentum in Personal & Corporate Banking remained strong, with the franchise adding net new clients and delivering CHF 3.3bn in net new loans and CHF 1.8bn in net new deposits. Integration firmly on track to be substantially completed by the end of this year We continue to execute on the final stages of the integration. With USD 13.2bn of gross cost reductions already delivered, including USD 0.6bn in the third quarter, we expect to deliver a total of USD 13.7bn in cumulative gross cost savings, above our previous ambition of approximately USD 13.5bn. As of 30 September 2026, nearly all of the legacy Credit Suisse IT applications in scope for decommissioning were no longer in use and around 90% of such applications had already been fully decommissioned. With nine-month underlying return on CET1 of 16.7% and underlying cost/income ratio of 69.6%, we are also well positioned to outperform our 2026 exit rate return on CET1 capital target of ~15% and achieve our 2026 exit rate cost/income ratio target of 4.0%, respectively. We expect to end 2026 with a CET1 capital ratio at or very close to our target of around 14%, including a potential accrual for the initial portion of intended 2027 share buybacks. Our performance allows us to continue deploying resources towards profitable growth opportunities, investing into our future, and delivering on our capital return ambitions. In the quarter we continued to accrue for mid-teens percentage growth in our dividend, and repurchased USD 1.8bn of shares. We plan to complete the USD 3bn program by the time we report our fourth quarter results. The amount and pace of share repurchases will remain subject to our short-term financial performance and outlook, maintaining a CET1 capital ratio of around 14% and further visibility on the deliberations by the Swiss Parliament on the capitalization of foreign subsidiaries. We will communicate our 2027 capital return ambitions with our fourth-quarter and full-year financial results in February 2027. Strategically investing in our franchise and footprint We remain focused on investing in technology, including AI, as well as our capabilities and talent, to position UBS for the future as we enhance our client experience, further strengthen our infrastructure and increase efficiency. We continue to progress our 9 large-scale, end-to-end transformational AI initiatives and build on our 608 live AI use cases in production (81% YoY increase, with another 1,090+ applications in development). We also continue to provide our employees with the AI tools necessary to successfully deliver tangible outcomes for our clients and our business on a daily basis. Our employees are running over 12,700 AI personal agents to support them in their daily activities. Over 18,000 of our software developers are leveraging AI tools in the software development cycles, leading to measurable productivity gains. And, our award-winning STAAT tool has year-to-date generated over 30 million insights to be distributed to the Financial Advisor teams to help them even better advise their clients. Our sustained commitment to building AI capabilities responsibly and at scale through our firm-wide investment in skills and tools was recognized externally – we’re the leading bank in Europe in the 2026 Evident AI Index for financial services and the only European bank in the global top 10. UBS was also recognized as the global leader in responsible AI and talent development. Of special significance is our first place globally for Talent Development, which recognizes the firm-wide engagement in our AI Learning Journeys and enablement initiatives such as AI Power Hour, and our academic partnerships with Oxford and Dalle Molle Institute for Artificial Intelligence (IDSIA). These activities, combined with our investment in AI tools for employees across the firm, are ensuring we can all play an active role in developing and using meaningful AI skills and capabilities. OutlookRead the full story here

UBS reports 3Q26 net profit of USD 2.7bn and 14.8% RoCET1, continued strong client momentum and disciplined execution across businesses (Ad hoc announcement pursuant to Article 53 of the SIX Exchange Regulation Listing Rules)

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