UBS more-than-doubles second-quarter net profit
By Josh White
Date: Wednesday 30 Jul 2025
(Sharecast News) - UBS more than doubled its second-quarter net profit to $2.4bn, it reported on Wednesday, beating market expectations as strong trading revenues and continued client inflows in its wealth management division offset weaker investment banking activity.
The Swiss banking giant reported profit before tax of $2.2bn, with underlying profit rising 30% year-on-year to $2.7bn.
Group revenues grew 2% to $12.1bn, supported by record performance in its markets division and solid gains in global wealth management.
Return on CET1 capital reached 13.5%, or 15.3% on an underlying basis, as UBS continued to execute on the integration of Credit Suisse.
Around one-third of Swiss client accounts had now migrated, and 70% of the planned $13bn in cost savings have been achieved.
CEO Sergio Ermotti said the bank had "sustained robust momentum during a quarter that started with extreme volatility," highlighting UBS's ability to "stay close to our clients and deliver on our capital return plans".
Wealth management attracted $23bn in net new assets in the quarter, bringing the first-half total to nearly $55bn.
Transaction-based income in the division rose 12% year-on-year, while the Global Markets unit within investment banking posted a record second quarter with revenues up 25% to $2.3bn, aided by volatility-driven demand in equities and foreign exchange.
Net interest income came in at $2bn, roughly flat from the prior quarter.
Despite soft performance in dealmaking and capital markets activity, UBS said it saw encouraging signs for the third quarter.
"Our client conversations and deal pipelines indicate a high level of readiness among investors and corporates to deploy capital, as conviction around the macro outlook strengthens," the bank noted.
UBS said it continued to benefit from technical tailwinds, including a $427m release in legal provisions tied to a legacy Credit Suisse matter, and a $577m deferred tax benefit.
The bank also made further progress in winding down the former Credit Suisse non-core and legacy portfolio, cutting risk-weighted assets by $1.5bn to $32.7bn.
Capital strength remained a key pillar, with a CET1 ratio of 14.4% and leverage ratio of 4.4%, both above target.
UBS returned $500m to shareholders via buybacks in the second quarter and said it planned to repurchase up to $2bn in the second half of the year.
It said it was also accruing for a double-digit increase in the annual dividend, payable in 2026.
Looking ahead, the bank said it expected a more typical seasonal pattern in client activity, with transaction volumes and market trading likely to normalise.
It forecast broadly stable net interest income in Swiss franc terms in its wealth and corporate banking arms.
However, UBS was continuing to face scrutiny over proposed Swiss capital reforms that could require the bank to hold up to $42bn in additional CET1 capital.
Ermotti reaffirmed UBS's opposition to what it called an "extreme" proposal, while engaging in discussions with Swiss authorities.
"We will consider appropriate actions to protect the interests of our shareholders," he said, suggesting the debate remains unresolved as the integration of Credit Suisse moves forward.
At 1157 EST (1057 BST), shares in UBS Group were up 1.5% in Zurich at CHF 31.07.
Reporting by Josh White for Sharecast.com.
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