UBS beats profit expectations on market volatility

ZURICH: Swiss bank UBS posted better-than-expected first-quarter net profit on Wednesday, helped by record ​trading revenue amid market turbulence triggered by the war in the Middle ‌East.

Switzerland’s biggest bank reported net profit attributable to shareholders of $3.0 billion in the first quarter of 2026, up 80% year-on-year and beating an average estimate of $2.3 billion in a company-provided poll of analysts.

In its investment banking ​division, revenue jumped 27% year-on-year, boosted by an all-time high in the trading ​arm, while underlying transaction-based income in global wealth management rose 17%.

Global wealth management ⁠attracted net new assets of $37 billion, with inflows of $5.3 billion in the Americas, a ​turnaround after wealth outflows in this key growth market clouded a profit jump in the previous quarter.

Markets ​have remained broadly resilient so far in the second quarter, reflecting expectations that a durable diplomatic solution to the Middle East conflict is achievable, UBS said in a statement accompanying its results.

However, risks are elevated and ​conditions could change quickly, which may affect client sentiment, the bank added.

UBS reasserted its intention ​to repurchase at least $3 billion of shares in 2026, saying it was on track to do so ‌by the ⁠end of July and aimed to do more by year-end, depending on visibility of parliamentary deliberations on capital rules.

A stricter Swiss banking bill aims to prevent a repeat of the traumatic collapse of Credit Suisse, which UBS acquired in a state-engineered emergency takeover in 2023.

The Swiss ​government last week granted UBS ​concessions on planned new ⁠capital rules but stuck to its key demand that the bank fully capitalise its foreign units, an item on which parliament is the ​final arbiter.

UBS will continue to engage constructively on Swiss capital rules, ​CEO Sergio Ermotti ⁠said. “These developments do not, and will not, change who we are as a firm.”

The bank is on track to complete integration of Credit Suisse by year-end, unlocking potential for further growth and ⁠efficiency ​gains, UBS said.

Integration-related expenses dropped in the first quarter and ​an additional $800 million in cost reductions brought total cumulative savings to $11.5 billion, the bank added. UBS cut staffing levels ​by about 1,500 full-time employees in the first quarter.