UBS Q2 2025 Earnings: Strong Profit Growth Amid Market Challenges

UBS Group AG reported a 30% increase in Q2 2025 profit before tax to $2.7 billion, with a 15.3% return on CET1 Capital. Global wealth management attracted $55 billion in net new assets, and the investment bank achieved a record Q2 in global markets. However, ongoing market uncertainties and proposed changes to the Swiss capital regime could impact UBS' financial performance.

UBS Group AG (UBS) reported a 30% increase in Q2 2025 profit before tax to $2.7 billion, with a 15.3% return on CET1 Capital. The company's Global Wealth Management division attracted $55 billion in net new assets, while the Investment Bank achieved a record Q2 in global markets. However, ongoing market uncertainties and proposed changes to the Swiss capital regime could impact UBS' financial performance.

UBS' second-quarter total revenues increased 1.7% year over year to $12.11 billion [2]. Operating expenses fell 5.6% year over year to $9.75 billion. The company reported total credit loss expenses of $163 million, which surged 71.6% from the year-ago quarter [2]. Despite these expenses, UBS' strategic focus on cost efficiency and integration of Credit Suisse has resulted in USD 0.7 billion in additional gross cost savings this quarter, contributing to a cumulative USD 9.1 billion in savings since 2022 [1].

Global Wealth Management's operating profit before tax was $1.2 billion, up from $871 million in the year-ago quarter. Asset Management's operating profit before tax was $153 million, up 17.7% from the year-ago quarter. Personal & Corporate Banking reported operating profit before tax of $695 million, down 10.1% year over year. The Investment Bank unit reported an operating profit before tax of $557 million, up 16.7% from the year-ago quarter [2].

UBS Group AG is on track to substantially complete the integration of Credit Suisse by the end of 2026. The company has now completed the migration of Credit Suisse client accounts booked outside of Switzerland to the UBS platform and executed the first main wave of migrations in Switzerland, having now transferred approximately one-third of the targeted client accounts [2].

However, UBS has expressed concerns over proposed changes to Switzerland’s capital regime, which could impact its capital strength and return on equity. The company remains committed to achieving its financial targets, including a return on common equity tier 1 capital of around 15% by the end of 2026 [1].

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/UBS/pressreleases/33800888/ubs-group-reports-strong-q2-2025-earnings-growth/
[2] https://www.nasdaq.com/articles/ubs-group-q2-earnings-revenues-rise-y-y-expenses-decline