UBS First-Quarter Net Profit Jumps 80% to $3 Billion as Return on Capital Reaches 16.8%

UBS Group has reported first-quarter net profit of $3.0 billion, an 80% increase on the same period a year earlier, with a return on CET1 capital of 16.8%. On an underlying basis, the Swiss group posted a return on CET1 capital of 17.0%, above its target of around 15% for 2026.

In prepared remarks on the results call, chief executive Sergio Ermotti told analysts that UBS had delivered a 17% return on CET1 capital, and said the bank had delivered excellent financial results. Ermotti said UBS remained on track to deliver on its financial objectives for 2026.

INTEGRATION KEEPS DELIVERING

UBS said it delivered a further $0.8 billion of gross cost reductions in the quarter, bringing cumulative gross cost savings to $11.5 billion, and that it had transferred all client accounts in Switzerland. Mr Ermotti said UBS was confident of substantially completing the integration by year-end.

The reported return on CET1 capital of 16.8%, and the underlying figure of 17.0%, are above UBS's 2026 target. UBS has set a 2026 target of around 15% and an ambition of about 18% for 2028.

Net profit compared with $1.7 billion in the first quarter of 2025.

ERMOTTI STRIKES CONFIDENT TONE

Mr Ermotti said UBS had continued helping clients navigate a volatile and unpredictable geopolitical and market environment, leveraging the strength and breadth of its global, diversified franchise.

Mr Ermotti said UBS was fully committed to protecting its shareholders while mitigating, if possible, the impact of the proposed increases in Swiss capital requirements on its clients, employees and communities.

UBS said it had repurchased $0.9 billion of shares in the first quarter and planned to complete $3 billion of buybacks before reporting its second-quarter results, with further repurchases possible later in the year.