All eyes were on the results of Switzerland's largest bank and one of the largest players in global wealth management as it reported results. The bank is in a tussle with policymakers in the Alpine state about proposed new capital rules.

The Zurich-headquartered bank reported third-quarter pre-tax profit of $3.59 billion, ahead of analysts’ forecasts, as its global wealth management arm drew $55.1 billion of net new assets.

UBS posted profit before tax of $3.587 billion for the third quarter of 2026, up 27 per cent year-on-year. On an underlying basis, pre-tax profit rose 14 per cent to $4.077 billion, with every core division contributing to the increase.

The pre-tax figure beat analysts’ expectations of about $3.52 billion. Net profit attributable to shareholders was $2.69 billion, up 8 per cent but slightly below the $2.71 billion forecast in a company-compiled consensus, Reuters reported. Reported revenues rose 5 per cent to $13.35 billion, ahead of forecasts of about $12.93 billion. Underlying revenues rose 10 per cent.

UBS shares listed in Zurich traded at about SFr38.57 on 26 October, about 4 per cent above where they closed in 2025. The stock has given back much of a summer rally. US-listed UBS shares hit a record close on 31 August.

Global wealth management underlying revenues rose 8 per cent to $6.898 billion. Recurring net fee income rose 9 per cent and net interest income rose 8 per cent. Net new assets of $55.1 billion represented 4.5 per cent annualised growth. Every region contributed, led by Asia-Pacific and the Americas. Group invested assets stood at $7.3 trillion.

The investment banking side of UBS recorded its best third quarter for underlying revenues. Global markets revenues rose 17 per cent to $2.548 billion, with equities up 22 per cent on higher client balances, market share gains and activity in corporate derivatives and structured products.

UBS said the integration of Credit Suisse, acquired in 2023, will be substantially completed by the end of this year. It has delivered $13.2 billion of gross cost reductions, including $600 million in the quarter, and raised its cumulative savings target to $13.7 billion from about $13.5 billion. The common equity tier 1 (CET1) ratio stood at 14.7 per cent at the end of September. The nine-month underlying return on CET1 capital was 16.7 per cent and the underlying cost/income ratio 69.6 per cent.

Swiss capital controversy
The results come as Switzerland’s parliament weighs tougher capital rules for the bank. In September, the upper house backed a proposal requiring UBS to back its foreign subsidiaries with 90 per cent CET1 capital, which the bank estimates would add about $16 billion to its requirements. UBS did not address suggestions that the rules could force changes to its corporate structure. (This news service this week discussed the possibility that UBS might move its HQ outside Switzerland and/or make other changes.) As reported in April 2024, the Federal Council wants systemically important Swiss banks, such as UBS, to hold significantly more capital against their foreign units. Raiffeisen Group, Zürcher Kantonalbank and PostFinance are also deemed systemically important lenders.

“UBS remains strategically committed to its diversified business model and its global and regional footprint," CEO Sergio Ermotti (pictured below), said in a statement today. "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 Ermotti

Among US peers reporting earlier this month, Morgan Stanley’s wealth management division lifted net revenues 10 per cent to $9.1 billion and gathered $232 billion in net new assets, just over half linked to IPO-related flows. Goldman Sachs’ asset and wealth management net revenues rose 14 per cent to $5.05 billion.