UBS Tops Estimates with $1.2B Profit and Eyes a $3B Buyback

CNBC, the Wall Street Journal, Bloomberg, the Financial Times, Reuters contributed to this report.

UBS shrugged off shaky markets to post a stronger-than-expected fourth quarter, then told investors it plans to buy back at least $3 billion of stock in 2026 – with hints it wants to do even more.

Quick hits:

• Net profit (Q4): $1.2 billion, up 56% year-on-year and above analyst forecasts of about $919 million.
• Group revenue (Q4): $12.1 billion, roughly in line with expectations.
• UBS shares slipped about 2% on the news.

CEO Sergio Ermotti said the results show the bank’s engines are running – wealth management and investment banking both did well – but warned clients are playing it safe amid market volatility and daily geopolitical surprises.

“They are looking for protection,” Ermotti told CNBC, adding clients have been rotating away from tech and thinking harder about diversification.

The bank also flagged progress on the massive Credit Suisse integration, calling it one of the most complex deals in banking history and saying the integration is moving ahead well. UBS’s common equity tier 1 ratio eased slightly to 14.4%, and the firm said invested assets now top $7 trillion.

Management plans to pair the buyback with a bigger shareholder return program – an increased dividend plus repurchases – as UBS aims to hit its 2026 targets. Analysts hailed the quarter as another solid step post-integration, though some caution remains around Swiss capital rules that could keep a lid on the stock.

UBS beat the quarter and is handing money back to investors, but the message was mixed – good operational momentum, but clients are cautious and macro uncertainty is keeping everyone on edge.