UBS reported net profit attributable to shareholders of $2.8 billion for the second quarter of 2026, an increase of 17% from $2.4 billion a year earlier. Diluted earnings per share increased to $0.87 from $0.72, although profit declined 8% from the first quarter of 2026.
Total quarterly revenue increased 13% year over year to $13.7 billion. Operating profit before tax rose 64% to $3.59 billion, while operating expenses increased 2% to $9.99 billion.
UBS generated an underlying profit before tax of $3.89 billion after excluding $352 million of purchase price allocation effects and other integration items from revenue and $645 million of integration-related expenses and purchase price allocation effects from operating costs. Underlying profit before tax increased by approximately $1.2 billion from the previous year.
Purchase price allocation adjustments are accounting changes resulting from UBS’s acquisition of Credit Suisse. Underlying results remove those effects and temporary integration expenses to provide a clearer view of the combined bank’s ongoing operations.
The reported cost-to-income ratio improved to 72.9% from 80.5%, meaning UBS spent less to generate each dollar of revenue than it did a year earlier. The underlying ratio improved to 70% from 75.4%.
Net fee and commission income increased by $874 million to $7.58 billion. Fees from portfolio management, investment funds and related services benefited from higher average levels of client assets, positive market performance and inflows into investment mandates.
Brokerage fees also increased as trading volumes rose in the Investment Bank’s cash equities business, particularly in Asia-Pacific, and wealth management clients became more active across all regions.
Combined net interest income and other income from financial instruments increased by $721 million to $6.09 billion.
Credit loss expenses declined to $121 million from $163 million. The second-quarter provision consisted primarily of expenses involving a small number of impaired corporate counterparties within Personal & Corporate Banking and the Investment Bank.
For the first six months of 2026, UBS generated $27.94 billion in revenue and $5.84 billion in net profit attributable to shareholders. First-half profit increased 43% from $4.09 billion during the comparable period of 2025.
Global Wealth Management generated $7.11 billion in quarterly revenue, an increase of 13%, while profit before tax rose 56% to $1.88 billion.
Net interest income in the division increased 9% to $1.86 billion, supported by higher loan volumes, deposit repricing measures, wider deposit margins and a favorable mix of deposit products.
Recurring net fee income increased 11% to $3.71 billion, while transaction-based income increased 22% to $1.51 billion. UBS cited greater client activity and demand for structured products and cash equities.
Global Wealth Management attracted $35.5 billion in net new assets during the quarter, compared with $23.3 billion a year earlier. Net new fee-generating assets totaled $12.9 billion.
The division’s invested assets increased to $4.94 trillion from $4.67 trillion at the end of the first quarter. The increase was primarily driven by $260.4 billion of positive market performance and the $35.5 billion of net inflows, partly offset by currency movements and the effects of exiting certain markets or services.
UBS’s Investment Bank generated $3.73 billion in quarterly revenue, an increase of 26% from the previous year. Profit before tax more than doubled to $1.15 billion from $557 million.
Global Markets revenue increased 32% to $3.01 billion. Equities revenue rose 53% to $2.48 billion, supported by higher activity in execution services, derivatives and financing.
Financing revenue increased 40% to $936 million, while Global Banking revenue increased 6% to $720 million. Foreign exchange, rates and credit revenue declined 21% to $525 million.
Asset Management reported $756 million in revenue, down 2%, but profit before tax increased 39% to $214 million as operating expenses declined 12%.
The division attracted $6.3 billion in net new money during the quarter. Its invested assets increased by $164 billion to $2.23 trillion, primarily because of positive market performance, partly offset by foreign-exchange movements.
In Personal & Corporate Banking, profit before tax increased 19% to CHF 676 million. Revenue was broadly stable at CHF 1.9 billion, while operating expenses declined 7% to CHF 1.16 billion.
The division recorded CHF 61 million in credit loss expenses, primarily associated with a small number of corporate borrowers. Underlying operating expenses declined 4% as UBS realized additional integration cost savings.
UBS continued progressing through the final phase of its Credit Suisse integration after completing the migration of former Credit Suisse client accounts to UBS infrastructure in March 2026.
More than 90% of the legacy Credit Suisse technology applications scheduled to be removed were no longer in use as of June 30. Approximately 70% had been fully decommissioned.
UBS generated an additional $1.1 billion in gross cost savings during the second quarter, bringing cumulative savings to $12.6 billion compared with the companies’ combined 2022 cost base.
The bank remains on track to reach approximately $13.5 billion in annualized gross cost savings by the end of 2026. Cumulative integration expenses reached $14.2 billion and are expected to total approximately $15 billion by year-end.
UBS said it remains on schedule to substantially complete the integration by the end of 2026.
The bank employed approximately 112,388 internal and external personnel at the end of June, a decrease of 4,426 from the previous quarter and 11,138 from a year earlier. Internal employees totaled 99,085 full-time equivalents.
UBS ended the quarter with a common equity tier 1 capital ratio of 14.4%, down from 14.7% at the end of March but unchanged from a year earlier. The common equity tier 1 leverage ratio remained at 4.4%.
Total invested assets across UBS reached $7.33 trillion, compared with $6.62 trillion a year earlier.
UBS completed a $3 billion share repurchase program in July and has begun another program under which it intends to buy back $3 billion of shares by the end of the second quarter of 2027.
The bank plans to repurchase at least $1 billion over the following three months. The timing and total amount will depend on financial performance, maintaining a common equity tier 1 ratio of approximately 14% and developments involving proposed Swiss capital requirements for foreign subsidiaries.
UBS described market conditions entering the third quarter as broadly constructive, supported by healthy client activity and elevated differences in performance among individual stocks.
However, geopolitical developments and volatile energy prices continue to create uncertainty around inflation, interest rates and investor sentiment.
The bank expects Global Wealth Management net interest income to increase modestly from the second quarter. Personal & Corporate Banking net interest income is expected to remain flat or increase slightly on a sequential basis.
