UBS Analyzes Swiss Economy's Response to U.S. Tariffs

UBS Group AG operates in four areas: wealth management, investment banking, retail and corporate banking, and asset management. The Swiss bank had USD 745.8 billion in current deposits and USD 580 billion in current loans at the end of 2024. The article does not provide information on the implications of U.S. tariffs for the Swiss economy.

UBS Group AG (UBS), a Swiss multinational investment bank and financial services company, has seen its stock touch a new 52-week high of $39.71 during last Friday's trading session, closing slightly lower at $39.54 [1]. Over the past three months, UBS shares have gained 21.7%, outperforming the industry average of 12.3%. The company's robust second-quarter 2025 performance has driven this rally, with net profit attributable to shareholders surging to $2.39 billion from $1.14 billion a year earlier, primarily due to gains in Global Wealth Management, Asset Management, and Investment Bank units [1].

UBS operates in four primary areas: wealth management (49.4% of revenues), investment banking (22.1%), retail and corporate banking (18.8%), and asset management (6.4%) [2]. At the end of 2024, the group held USD 745.8 billion in current deposits and USD 580 billion in current loans [2]. The company's strategic expansion and partnerships have significantly contributed to its growth. In April 2025, UBS partnered with 360 ONE WAM Ltd, India's leading wealth and asset manager, and in June 2023, it completed the acquisition of Credit Suisse, enhancing its wealth and asset management capabilities [1].

The successful integration of Credit Suisse is a key factor in UBS's momentum. By July 2024, UBS had merged UBS Switzerland AG with Credit Suisse (Schweiz) AG and integrated 95 branches in Switzerland by early 2025. The company plans to migrate more Swiss clients to its system in the upcoming quarter, aiming to complete the Swiss booking center migrations by the end of the first quarter of 2026 [1].

UBS's strong capital position is another driver of its growth. As of June 30, 2025, its CET1 capital ratio stood at 14.4%, above management guidance of around 14%, and the CET1 leverage ratio remained stable at 4.4%, exceeding the target of more than 4% [1]. UBS aims to achieve an underlying return on CET1 capital of approximately 15% by 2026-end and 18% by 2028-end.

The company's solid revenue growth is evident, with overall revenues registering a three-year (2021–2024) CAGR of 11%. Net interest income (NII) grew at a 4.9% CAGR, and fee income at an 8% CAGR. These dynamics reflect UBS's balanced revenue mix and are expected to continue fueling growth in the coming quarters [1].

However, UBS faces challenges such as rising expenses and concerns about the sustainability of its capital distribution strategy. Operating expenses have registered a 14.3% CAGR over the past four years, driven by integration costs and technology investments [1]. Despite these challenges, UBS's strong capital position, successful integration of Credit Suisse, and consistent growth in net interest income provide a solid foundation for future growth.

References:
[1] https://www.nasdaq.com/articles/ubs-group-touches-52-week-high-should-you-buy-stock-now
[2] https://www.marketscreener.com/quote/stock/UBS-GROUP-AG-18521336/