The UBS Group AG headquarters in Zurich, Switzerland, on Wednesday, July 30, 2025.
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Swiss banking giant UBS on Wednesday reported stronger-than-expected third-quarter net profit, driven by solid investment banking performance and the release of legal provisions.
Net profit attributable to shareholders came in at $2.5 billion for the three-month period, up 74% from $1.43 billion in the same period of last year. Analysts had expected third-quarter net profit of $1.85 billion, according to an LSEG-compiled consensus.
Switzerland’s largest bank said its net profit included net litigation reserve releases of $668 million, primarily due to the resolution of legal matters related to Credit Suisse’s residential mortgage-backed securities business and its legacy cross-border activities in France.
UBS posted third-quarter revenues of $12.76 billion, slightly above analyst expectations of $12.68 billion.
“I’m very happy that the breadth and the quality of our diversified business model has once again delivered very strong results,” UBS CEO Sergio Ermotti told CNBC’s Carolin Roth.
Emotti said investments in strategic areas were paying off and the bank reported good progress on its complex integration of Credit Suisse. The integration process of its domestic rival is set to complete by the end of next year.
UBS said it had reached $10 billion of its expected $13 billion in cost savings, well ahead of schedule, noting that more than two-thirds of Swiss-booked client accounts have now been migrated.
UBS formally completed the legal takeover of its domestic rival as part of a state-backed rescue in 2023.
The bank now faces a potentially significant increase in its mandatory capital requirements, however, as the government seeks to learn from Credit Suisse’s collapse and reduce risks for taxpayers and the economy.
UBS, for its part, said in June that while it supports most of the regulatory proposals outlined by the Swiss Federal Council, it “strongly disagrees” with what it described as the “extreme” increase in capital requirements.
Market sentiment ‘can shift quickly’
UBS said wealth management pulled in $38 billion in net new assets over the third quarter.
Shares of UBS are up more than 11% so far this year.
Looking ahead, UBS said the bank is “likely to see more modest sequential gross and net saves in the fourth quarter,” citing its continued focus on the Swiss platform migration and a seasonal uptick in non-personnel costs.
The Swiss bank said investors appear to be increasingly focused on hedging downside risks, noting some recent spikes in market volatility.
Swiss bank UBS’ share performance year-to-date
“Against this backdrop, transactional activity and our deal pipelines remain healthy, though sentiment can shift quickly as confidence in the outlook is tested and seasonal effects come into play,” UBS said in a statement.
“Furthermore, macro uncertainties along with a strong Swiss franc and higher US tariffs are clouding the outlook for the Swiss economy, and a prolonged US government shutdown may delay capital market activities,” it added.
Earlier in the month, the Swiss government trimmed its 2026 economic forecast for the country, citing U.S. President Donald Trump’s tariff policy. In August, the White House imposed tariffs of 39% on Swiss goods sent to the U.S. after a Swiss delegation failed to secure a deal with U.S. officials.
It represents one of the highest country-specific tariff rates imposed by the Trump administration.