By admin
UBS AG capped the year with a fourth-quarter performance that cleared market expectations and set the stage for fresh capital returns.
The Swiss lender reported a sharp rise in quarterly profit while confirming plans for a sizeable share buyback programme.
Management said the bank intends to repurchase at least $3 billion of shares in 2026 and left the door open for a higher amount, underlining confidence in balance-sheet strength after a year dominated by integration work.
The update came alongside results showing steady revenues and a solid capital buffer, as UBS continues to digest the former Credit Suisse business and reshape its earnings mix following the emergency takeover.
Profit jump contrasts with flat revenues
Net profit attributable to shareholders rose 56% year on year to $1.2 billion in the final three months of the year, comfortably ahead of analysts’ expectations of $919 million.
The earnings beat stood out against a more subdued revenue picture.
Group revenues totalled $12.1 billion for the quarter, matching analyst forecasts.
That figure slipped from $12.8 billion in the third quarter but increased from $11.6 billion a year earlier, pointing to stabilisation rather than rapid growth as the bank prioritises integration and risk control.
A separate earnings release showed revenue net of interest expense at $12.15 billion, also ahead of Street expectations, while total reported revenue for the period came in at $13.74 billion.
Capital ratios and balance-sheet signals
UBS ended the quarter with a common equity tier 1 capital ratio of 14.4%, a key measure of solvency and loss-absorbing capacity.
In the previous quarter, this figure was at 14.8%.
Despite the slight quarterly dip, the ratio remains comfortably above regulatory requirements, giving management room to pursue shareholder distributions.
For the full year, the bank reported a profit of $7.77 billion on revenue of $49.57 billion, reinforcing the view that capital generation is recovering after a turbulent period for the Swiss banking sector.
Management also highlighted that group-invested assets have now crossed $7 trillion for the first time, a milestone that underscores UBS’s scale following the absorption of its former rival.
Leadership transition and integration focus
Chief executive Sergio Ermotti, who returned in 2023 to oversee the government-backed rescue of Credit Suisse, is expected to step down in April next year once the integration is completed.
The latest results suggest the group is nearing the end of what it has described as one of the most complex banking integrations on record.
The buyback plan and improved profitability indicate a shift from crisis management to longer-term capital planning.
Analysts described the quarter as another solid showing, with the earnings beat reinforcing confidence that UBS can meet its medium-term targets as integration risks fade and cost synergies start to flow through.
The combination of steady revenues, strong profit growth, and renewed shareholder returns positions UBS as it enters the next phase of its post-merger strategy.
The post UBS signals capital return push as buyback plan follows earnings beat appeared first on Invezz
