REG-UBS AG UBS reports 2Q25 net profit of USD 2.4bn and USD 4.1bn for 1H25 with integration remaining on track; invested assets reach USD 6.6trn (Ad hoc announcement pursuant to Article 53 of the SIX Exchange Regulation Listing Rules)
Wed 07:00
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UBS reports 2Q25 net profit of USD 2.4bn and USD 4.1bn for 1H25 with
integration remaining on track; invested assets reach USD 6.6trn (Ad hoc
announcement pursuant to Article 53 of the SIX Exchange Regulation Listing
Rules)
UBS (NYSE:UBS) (SWX:UBSN):
“We sustained robust momentum during a quarter that started with extreme
volatility by staying close to our clients and executing on our integration
plans. We also maintained a balance sheet for all seasons while delivering on
our capital return plans. We are positioning for long term success by further
enhancing our global capabilities, investing in our future infrastructure and
AI, while actively engaging in the debate on future regulation in Switzerland.
This allows us to fulfill our commitment to support all the communities where
we live and work.”
Sergio P. Ermotti, Group CEO
2Q25 PBT of USD 2.2bn and underlying(1) PBT of USD 2.7bn, net profit of USD
2.4bn, RoCET1 of 13.5% and underlying RoCET1 of 15.3%. Core businesses(2)
increased combined underlying PBT by 25% YoY
1H25 PBT of USD 4.3bn and underlying PBT of USD 5.3bn, net profit of USD
4.1bn, RoCET1 of 11.6% and underlying RoCET1 of 13.3%
Continued client momentum in a volatile environment supporting growth in Group
invested assets, with Global Wealth Management 1H25 net new assets of USD
54.8bn. GWM 2Q25 transaction-based income +12% YoY and best second quarter in
Global Markets with revenues up 25% YoY supported by record balances and
revenues in Prime Brokerage
Integration remains on track with one-third of client accounts booked in
Switzerland migrated. Delivered further USD 0.7bn in exit rate gross cost
saves bringing cumulative cost reductions to USD 9.1bn, or 70% of the USD
~13bn in expected gross saves
Continued progress in Non-core and Legacy wind-down and legal entity structure
simplification; NCL risk- weighted assets down by USD 1.5bn sequentially to
USD 32.7bn
Maintained strong capital position with 14.4% CET1 capital ratio and 4.4% CET1
leverage ratio. Our ability to generate capital is funding strategic
investments and sustainable shareholder returns
Delivering on our capital return plans for 2025, completed USD 0.5bn in share
buybacks and plan to complete repurchase of up to USD 2.0bn in the second half
of the year. Continued accruing for a double-digit growth in dividend
Reliable partner for the Swiss economy, staying close to private clients and
businesses with our balance sheet for all seasons and leading credit offering.
Granted or renewed around CHF 40bn of loans during the quarter
Positioning for long-term success by strengthening global capabilities and
investing into future-ready infrastructure and tools, including Gen AI and
cloud to enable secure, scalable delivery and boosting productivity.
Meanwhile, actively engaging in debate on future regulatory requirements in
Switzerland
USD 2.2bn 80.5% 13.5% USD 2.4bn 14.4%
Profit before tax
Cost/income ratio
RoCET1 capital
Net profit
CET1 capital ratio
USD 2.7bn 75.4% 15.3% USD 0.72 4.4%
Underlying(1
Underlying(1
Underlying(1
Diluted EPS
CET1 leverage ratio
)profit before tax
)cost/income ratio
)RoCET1 capital
Information in this news release is presented for UBS Group AG on a
consolidated basis unless otherwise specified. 1 Underlying results exclude
items of profit or loss that management believes are not representative of the
underlying performance. Underlying results are a non-GAAP financial measure
and alternative performance measure (APM). Refer to “Group Performance”
and “Appendix-Alternative Performance Measures” in the financial report
for the second quarter of 2025 for a reconciliation of underlying to reported
results and definitions of the APMs. 2 Includes Global Wealth Management,
Personal & Corporate Banking, Asset Management, the Investment Bank, and
Group Items.
Group summary
Strong financial performance
In 2Q25, we reported PBT of USD 2,193m and underlying PBT of USD 2,683m, up
49% and 30% YoY, respectively, driven by growth in our core businesses, which
increased their combined underlying pre-tax profits by 25% YoY. Net profit
attributable to shareholders was USD 2,395m, up 111% YoY and included a net
release of provisions and contingent liabilities of USD 427m related to the
resolution of a legacy Credit Suisse cross-border matter and a net deferred
tax benefit of USD 577m. Return on CET1 capital was 13.5%, or 15.3% on an
underlying basis.
Reported revenues were USD 12,112m, up 2% YoY. On an underlying basis,
revenues increased by 4% to USD 11,546m. Underlying revenues from our core
businesses increased 8%, reflecting the strength, scale and geographic
diversification of our franchises and our ability to drive synergies across
the Group. Underlying revenues in Non-core and Legacy division declined by USD
484m from 2Q24, mainly reflecting lower net gains on position exits as we
significantly reduced NCL’s portfolio through successful de-risking actions
over the last year.
Reported Group operating expenses decreased by 6% YoY to USD 9,756m. On an
underlying basis, operating expenses decreased by 3% to USD 8,701m as we
continued to execute on our integration and efficiency plans at pace.
For the first half of 2025, we reported PBT of USD 4,325m and underlying PBT
of USD 5,269m, driven by a 2% increase in underlying revenues and a 2% decline
in underlying expenses. Net profit increased to USD 4,087m, with RoCET1 of
11.6% and underlying RoCET1 of 13.3%.
Continued client momentum
During the second quarter, clients continued to rely on UBS, valuing the
breadth of our advice and global capabilities amid a challenging and
unpredictable geopolitical and market environment.
Group invested assets reached USD 6.6trn, up 8% QoQ driven by increases across
Global Wealth Management, Asset Management and Personal & Corporate
Banking. In GWM net new assets reached USD 23bn with strong generation in
APAC, EMEA and Switzerland and robust performance in the Americas, where high
inflows from existing clients mostly offset outflows from seasonal tax-related
payments.
Transactional activity during the quarter remained robust despite more muted
sentiment among private clients, while institutional clients remained very
active. In GWM, transaction-based income increased by 12% YoY with positive
momentum across all regions. In the Investment Bank, Global Markets delivered
a record second quarter with revenues of USD 2.3bn, up 25% YoY, tracking the
exceptional levels of volatility early in the quarter. Higher revenues in
Equities and FX once again reflect our ability to serve clients in a dynamic
market environment, capturing growth opportunities in the areas of our
strategic focus.
Reliable partner for the Swiss economy
Businesses and households in Switzerland benefit from our global reach, advice
and expertise. Our balance sheet for all seasons gives them the stability they
need while allowing us to remain a leading provider of credit to the economy.
We have granted or renewed around CHF 40bn of loans during the quarter.
Our conservative approach to risk and highly robust business model is
reflected in the Group’s loan-to-deposit ratio of 81% and cost of risk of
only 10bps.
Integration on track with strong progress on client account migrations in
Switzerland
We progressed our integration plans at pace during the quarter. We have 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 targeted
client accounts. We remain on track to complete the Swiss booking center
migrations by the end of the first quarter of 2026.
Additionally, we have made substantial progress on the simplification of our
legal entity structure in the US and Europe in the quarter.
Delivering on cost savings plans
Through disciplined execution of our cost-reduction work we delivered an
additional USD 0.7bn in gross cost saves in the quarter by further downsizing
Non-core and Legacy’s expense base and realizing cost synergies in the core
businesses. To date we have decommissioned around 700 applications, or 56% of
NCL’s initial stack.
We have already achieved 70% of our plan and are well on track to deliver
around USD 13bn in Group-wide annualized exit rate gross cost savings by
end-2026.
As in previous quarters, we continued to exit positions in NCL leading to a
USD 1.5bn RWA reduction in 2Q25 and bringing RWA to USD 32.7bn at the end of
June. With 83% of its initial books closed, NCL remains on track to achieve
its ambition to close over 95% of them by end-2026 and reduce RWA below USD
22bn.
Maintained strong capital position
In the second quarter, we maintained a strong capital position with a CET1
capital ratio of 14.4% and a CET1 leverage ratio of 4.4%. Both are in excess
of our guidance of ~14% and >4.0%, respectively, and provide a solid
capital buffer to requirements during the integration, while allowing us to
self-fund strategic investments and return capital to shareholders.
Commitment to capital returns
In the second quarter, we continued to accrue for a double-digit increase in
the ordinary dividend per share, to be paid out in 2026 and completed USD
0.5bn in share repurchases. In the first half of 2025 we have completed USD
1bn in share repurchases and plan to complete repurchase of up to USD 2bn in
the second half of 2025. This plan continues to be subject to UBS maintaining
a CET1 capital ratio target of around 14% and achieving its financial targets
and is consistent with UBS’s previously communicated plans and conservative
approach.
We will communicate on our 2026 capital returns ambitions with our fourth
quarter and full-year financial results for 2025.
Investing for long-term growth
We remain focused on strengthening our global capabilities by investing into
our businesses and technology to capture long-term growth opportunities.
We are also well underway on our technology integration journey in 2025,
reducing complexity and costs through infrastructure and application
decommissioning. With 1,154 apps decommissioned to date, or ~40% of total in
scope, we have surpassed the 1,000 business applications decommissioned
milestone. We have also turned off over half of the servers in scope (60,000)
and worked through 28PB of data.
We are unlocking the transformational potential of Gen AI. In the second
quarter, we have further rolled out AI-powered tools to employees, including
coding tools for our developers to enable faster, more secure and scalable
delivery of solutions with a targeted 15% efficiency gain. After finishing the
implementation of 55,000 M365 Copilot licenses earlier this year we are
planning to roll-out additional licenses to ensure all of our employees across
the firm have access to the tool.
Additionally, our in-house AI assistant, Red, which gives users intelligent
access to UBS products, research, and CIO reports, is currently rolled out to
52,000 employees with general availability planned for the first half of 2026.
Our investments in this space continue to translate into increased usage of
Gen AI tools across the organization with 8m prompts across all our tools in
the quarter, a four-fold increase since year-end 2024.
We are also progressing on the execution of our large-scale, transformational
AI initiatives designed to have firm-wide impact and strengthen our
foundations, enhancing client service and increasing productivity across the
Group. In addition, we are continually assessing and building further
opportunities with over 280 AI use cases now live, up ~10% from 1Q25.
To support in the adoption of our AI capabilities and foster a culture of
continuous learning across the organization, we are building a strong
ecosystem across the firm including over 500 AI Champions and 100 AI
Ambassadors.
Later this year around 250 of our senior leaders, including the Group
Executive Board, will participate in an AI Senior Leadership Journey at the
Saïd Business School, University of Oxford. The program will focus on
building an AI-enabled organization, driving transformation, and ensuring
ethical governance. This initiative is designed to equip our leaders with the
strategic insights needed to further embed AI across the firm and lead the
development of an AI-enabled workforce.
Outlook
The third quarter started with strong market performance in risk assets,
particularly international equities, combined with a weak US dollar. Investor
sentiment remains broadly constructive, tempered by persistent macroeconomic
and geopolitical uncertainties. Against this backdrop, 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.
For the third quarter, we expect Global Wealth Management’s net interest
income (NII) and Personal & Corporate Banking’s NII in Swiss francs to
be broadly stable. In US dollar terms, this translates to a sequential low
single-digit percentage increase.
We also expect trading and transactional activity to reflect more normalized
seasonal patterns and activity levels compared to the same quarter a year ago,
particularly in Global Wealth Management’s transaction-based revenues and
the Investment Bank’s Global Markets performance. Pull-to-par revenues(3)
are expected to be around USD 0.4bn, partly mitigating the expected USD 1.1bn
in integration-related expenses.
We remain focused on actively engaging with our clients, helping them to
navigate a complex environment while executing on our growth and integration
plans. We are confident in our ability to deliver on our 2025 and 2026
financial targets, leveraging the power of our diversified business model.
3 Pull-to-par revenues are revenues recognized when fair value reductions
taken on financial instruments acquired as part of the Credit Suisse
transaction through the required purchase price allocation (PPA) unwind as the
instruments approach their maturity.
Second quarter 2025 performance overview – Group
Group PBT USD 2,193m, underlying PBT USD 2,683m
PBT of USD 2,193m included PPA effects and other integration items of USD
596m, a loss related to an investment in an associate of USD 31m, and
integration-related expenses and PPA effects of USD 1,055m. Underlying PBT was
USD 2,683m, including net credit loss expenses of USD 163m. The cost/income
ratio was 80.5%, and 75.4% on an underlying basis. Net profit attributable to
shareholders was USD 2,395m, with diluted earnings per share of USD 0.72.
Return on CET1 capital was 13.5%, and 15.3% on an underlying basis.
Global Wealth Management (GWM) PBT USD 1,204m, underlying PBT USD 1,443m
Total revenues increased by USD 247m, or 4%, to USD 6,300m, largely driven by
higher recurring net fee income and transaction-based income, partly offset by
lower net interest income, and included a USD 80m decrease in PPA effects and
other integration items. Excluding USD 153m of PPA effects and other
integration items and a USD 8m loss related to an investment in an associate,
underlying total revenues were USD 6,156m, an increase of 6%. Net credit loss
expenses were USD 3m, compared with net credit loss releases of USD 1m in the
second quarter of 2024. Operating expenses decreased by USD 90m, or 2%, to USD
5,093m and included a USD 140m decrease in integration-related expenses.
Excluding USD 383m of integration-related expenses and PPA effects, underlying
operating expenses were USD 4,710m, an increase of 1%, mainly driven by
unfavorable foreign currency effects and higher financial advisor compensation
reflecting an increase in compensable revenues. The cost/income ratio was
80.8%, and 76.5% on an underlying basis. Invested assets increased
sequentially by USD 294bn to USD 4,512bn. Net new assets were USD 23bn.
Personal & Corporate Banking (P&C) PBT CHF 566m, underlying PBT CHF
557m
Total revenues decreased by CHF 161m, or 8%, to CHF 1,900m, mainly due to
lower net interest income and other income, and included a CHF 1m decrease in
PPA effects and other integration items. Total revenues in the second quarter
of 2025 also included a loss of CHF 18m related to an investment in an
associate. Excluding CHF 222m of PPA effects and other integration items and
the aforementioned loss, underlying total revenues were CHF 1,696m, a decrease
of 8%. Net credit loss expenses were CHF 91m and mainly reflected net expenses
on credit-impaired positions. Net credit loss expenses in the prior-year
quarter were CHF 92m. Operating expenses decreased by CHF 23m, or 2%, to CHF
1,243m and included a CHF 30m increase in integration-related expenses.
Excluding CHF 195m of integration-related expenses and PPA effects, underlying
operating expenses were CHF 1,048m, a decrease of 5%, mainly driven by lower
personnel expenses, including lower variable compensation. The cost/income
ratio was 65.4%, and 61.8% on an underlying basis.
Asset Management (AM) PBT USD 153m, underlying PBT USD 216m
Total revenues increased by USD 4m to USD 772m, reflecting increases in net
management fees and performance fees, largely offset by the second quarter of
2024 including USD 28m of net gains from disposals. Operating expenses
decreased by USD 20m, or 3%, to USD 618m and included a USD 35m decrease in
integration-related expenses. Excluding integration-related expenses of USD
63m, underlying operating expenses were USD 555m, an increase of 3%, mainly
due to unfavorable foreign currency effects. The cost/income ratio was 80.1%,
and 72.0% on an underlying basis. Invested assets increased sequentially by
USD 156bn to USD 1,952bn. Net new money was negative USD 2bn, and negative USD
5bn excluding money market flows and associates.
Investment Bank (IB) PBT USD 557m, underlying PBT USD 526m
Total revenues increased by USD 163m, or 6%, to USD 2,966m, due to higher
revenues in Global Markets, partly offset by lower revenues in Global Banking,
and included an overall USD 158m decrease in PPA effects. Excluding these
effects, underlying total revenues were USD 2,815m, an increase of 13%,
including positive foreign currency effects. Net credit loss expenses were USD
48m, compared with net credit loss releases of USD 6m in the second quarter of
2024. Operating expenses increased by USD 29m, or 1%, to USD 2,361m, and
included a USD 124m decrease in integration-related expenses. Excluding
integration-related expenses of USD 121m, underlying operating expenses were
USD 2,241m, an increase of 7%, mainly due to higher personnel expenses and
unfavorable foreign currency effects. The cost/income ratio was 79.6% on a
reported and underlying basis. Return on attributed equity was 12.2%, and
11.5% on an underlying basis.
Non-core and Legacy (NCL) PBT USD (250m), underlying PBT USD 1m
Total revenues were negative USD 82m, compared with total revenues of USD
401m, mainly reflecting lower net gains from position exits and lower net
interest income from securitized products and credit products, partly offset
by lower liquidity and funding costs, as a result of a smaller portfolio. Net
credit loss releases were USD 2m, compared with net credit loss releases of
USD 1m in the second quarter of 2024. Operating expenses were USD 170m, a
decrease of USD 637m, or 79%, mainly due to releases in provisions for
litigation, regulatory and similar matters, as well as lower personnel
expenses, risk management costs, technology costs and compliance and
regulatory costs, and included a USD 73m decrease in integration-related
expenses. Excluding integration-related expenses of USD 252m, underlying
operating expenses were negative USD 83m.
Group Items PBT USD (167m), underlying PBT USD (188m)
4 Also accounts for credit loss expenses/releases incurred in a given period.
UBS’s sustainability and impact highlights
We support our clients in the transition to a low-carbon world and consider
climate change risks and opportunities across our firm for the benefit of our
clients, our shareholders and all our stakeholders.
SDG Outcomes Fund hits USD 100m target with anchor commitment from the EU
Earlier this month, the UBS Optimus Foundation and Bridges Outcomes
Partnerships announced the successful final closing of the SDG Outcomes Fund
at the 4th UN International Conference on Financing for Development (FFD4) in
Seville. Through the new anchor commitment from the European Union, the fund
reached its subscription target of USD 100m.
This Luxembourg-based SFDR Article 9 fund is a pioneering blended finance
initiative designed to accelerate progress toward the United Nations
Sustainable Development Goals (SDGs) by supporting outcomes-focused programs
in low- and middle-income countries, particularly in Africa and Asia.
Expanded UBS Optimus Foundation offering in the US
In June, we announced the expansion of the UBS Optimus Foundation offering in
the US. The Foundation, a client-facing giving platform that supports
clients’ philanthropic goals through flexible, tax-advantaged giving
solutions now provides access to an expanded portfolio of programs across the
US in addition to the full portfolio of existing global programs.
Clients can support a suite of national-scale programs, sourced and vetted by
a team of dedicated philanthropy experts, that advance solutions across
education, health, the environment, and emergency response and resilience. The
UBS Optimus Foundation continues to expand its US portfolio and now has 15
nonprofit partners on the front lines of the country’s most pressing
challenges. UBS covers all the administrative costs of the Foundation,
ensuring that 100% of each donation received supports the Foundation’s
programs and mission. UBS will also provide up to a 10% match on client and
employee donations to incentivize giving and magnify its impact (subject to
availability).
Employer of choice among Swiss business students
According to Universum’s 2025 survey published in June, UBS is the employer
of choice among business students in Switzerland. We were the top choice for
one in four business students – and for the first time ever, we came first
among female business students too.
Selected financial information of the business divisions and Group Items
For the quarter ended 30.6.25
USD m Global Personal & Asset Investment Non-core Group Total
Wealth
and Legacy
Items
Management
Corporate
Management
Bank
Banking
Total revenues as reported 6,300 2,336 772 2,966 (82) (180) 12,112
of which: PPA effects and other integration items(1) 153 274 152 1 17 596
of which: loss related to an investment in an associate (8) (23) (31)
Total revenues (underlying) 6,156 2,085 772 2,815 (83) (198) 11,546
Credit loss expense / (release) 3 114 0 48 (2) 0 163
Operating expenses as reported 5,093 1,528 618 2,361 170 (13) 9,756
of which: integration-related expenses and PPA effects(2) 383 240 63 121 252 (4) 1,055
Operating expenses (underlying) 4,710 1,288 555 2,241 (83) (10) 8,701
Operating profit / (loss) before tax as reported 1,204 695 153 557 (250) (167) 2,193
Operating profit / (loss) before tax (underlying) 1,443 684 216 526 1 (188) 2,683
For the quarter ended 31.3.25
USD m Global Personal & Asset Investment Non-core Group Total
Wealth
and Legacy
Items
Management
Corporate
Management
Bank
Banking
Total revenues as reported 6,422 2,211 741 3,183 284 (284) 12,557
of which: PPA effects and other integration items(1) 165 241 138 30 574
of which: gain related to an investment in an associate 4 11 14
of which: items related to the Swisscard transactions(3) 64 64
Total revenues (underlying) 6,253 1,895 741 3,045 284 (314) 11,904
Credit loss expense / (release) 6 53 0 35 7 (1) 100
Operating expenses as reported 5,057 1,551 606 2,427 669 15 10,324
of which: integration-related expenses and PPA effects(2) 355 192 73 112 191 3 927
of which: items related to the Swisscard transactions(4) 180 180
Operating expenses (underlying) 4,702 1,179 533 2,314 477 12 9,218
Operating profit / (loss) before tax as reported 1,359 607 135 722 (391) (299) 2,132
Operating profit / (loss) before tax (underlying) 1,545 663 208 696 (200) (326) 2,586
For the quarter ended 30.6.24
USD m Global Personal & Asset Investment Non-core Group Total
Wealth
and Legacy
Items
Management
Corporate
Management
Bank
Banking
Total revenues as reported 6,053 2,272 768 2,803 401 (392) 11,904
of which: PPA effects and other integration items(1) 233 246 310 (8) 780
Total revenues (underlying) 5,820 2,026 768 2,493 401 (384) 11,124
Credit loss expense / (release) (1) 103 0 (6) (1) 0 95
Operating expenses as reported 5,183 1,396 638 2,332 807 (15) 10,340
of which: integration-related expenses and PPA effects(2) 523 182 98 245 325 (2) 1,372
Operating expenses (underlying) 4,660 1,213 540 2,087 481 (13) 8,969
Operating profit / (loss) before tax as reported 871 773 130 477 (405) (377) 1,469
Operating profit / (loss) before tax (underlying) 1,161 710 228 412 (80) (371) 2,060
1 Includes accretion of PPA adjustments on financial instruments and other PPA
effects, as well as temporary and incremental items directly related to the
integration. 2 Includes temporary, incremental operating expenses directly
related to the integration, as well as amortization of intangibles resulting
from the acquisition of the Credit Suisse Group. 3 Represents the gain related
to UBS’s share of income recorded by Swisscard for the sale of the Credit
Suisse card portfolios to UBS. 4 Represents the expense related to the payment
to Swisscard for the sale of the Credit Suisse card portfolios to UBS.
Selected financial information of the business divisions and Group Items
(continued)
Year-to-date 30.6.25
USD m Global Personal & Asset Investment Non-core Group Total
Wealth
and Legacy
Items
Management
Corporate
Management
Bank
Banking
Total revenues as reported 12,722 4,547 1,513 6,149 202 (465) 24,668
of which: PPA effects and other integration items(1) 318 514 290 1 47 1,170
of which: gain / (loss) related to an investment in an associate (5) (12) (16)
of which: items related to the Swisscard transactions(2) 64 64
Total revenues (underlying) 12,408 3,980 1,513 5,860 201 (512) 23,450
Credit loss expense / (release) 9 167 0 83 6 (1) 263
Operating expenses as reported 10,150 3,078 1,224 4,788 838 2 20,080
of which: integration-related expenses and PPA effects(3) 739 432 135 233 444 (1) 1,982
of which: items related to the Swisscard transactions(4) 180 180
Operating expenses (underlying) 9,411 2,467 1,088 4,555 395 2 17,918
Operating profit / (loss) before tax as reported 2,563 1,302 289 1,279 (642) (465) 4,325
Operating profit / (loss) before tax (underlying) 2,988 1,347 424 1,222 (199) (513) 5,269
Year-to-date 30.6.24
USD m Global Personal & Asset Investment Non-core Group Total
Wealth
and Legacy
Items
Management
Corporate
Management
Bank
Banking
Total revenues as reported 12,196 4,695 1,543 5,554 1,402 (747) 24,642
of which: PPA effects and other integration items(1) 467 502 603 (12) 1,559
Total revenues (underlying) 11,729 4,193 1,543 4,951 1,402 (735) 23,083
Credit loss expense / (release) (4) 146 0 26 35 (2) 201
Operating expenses as reported 10,228 2,800 1,303 4,496 1,818 (48) 20,597
of which: integration-related expenses and PPA effects(3) 928 342 169 387 568 (1) 2,392
Operating expenses (underlying) 9,300 2,458 1,134 4,109 1,250 (47) 18,205
Operating profit / (loss) before tax as reported 1,972 1,748 241 1,032 (451) (698) 3,844
Operating profit / (loss) before tax (underlying) 2,433 1,588 410 816 117 (687) 4,677
1 Includes accretion of PPA adjustments on financial instruments and other PPA
effects, as well as temporary and incremental items directly related to the
integration. 2 Represents the gain related to UBS’s share of income recorded
by Swisscard for the sale of the Credit Suisse card portfolios to UBS. 3
Includes temporary, incremental operating expenses directly related to the
integration, as well as amortization of intangibles resulting from the
acquisition of the Credit Suisse Group. 4 Represents the expense related to
the payment to Swisscard for the sale of the Credit Suisse card portfolios to
UBS.
Our key figures
As of or for the quarter ended As of or year-to-date
USD m, except where indicated 30.6.25 31.3.25 31.12.24 30.6.24 30.6.25 30.6.24
Group results
Total revenues 12,112 12,557 11,635 11,904 24,668 24,642
Credit loss expense / (release) 163 100 229 95 263 201
Operating expenses 9,756 10,324 10,359 10,340 20,080 20,597
Operating profit / (loss) before tax 2,193 2,132 1,047 1,469 4,325 3,844
Net profit / (loss) attributable to shareholders 2,395 1,692 770 1,136 4,087 2,890
Diluted earnings per share (USD)(1) 0.72 0.51 0.23 0.34 1.23 0.86
Profitability and growth(2,3)
Return on equity (%) 10.9 7.9 3.6 5.4 9.4 6.8
Return on tangible equity (%) 11.8 8.5 3.9 5.9 10.2 7.5
Underlying return on tangible equity (%)(4) 13.4 10.0 6.6 8.4 11.7 9.2
Return on common equity tier 1 capital (%) 13.5 9.6 4.2 5.9 11.6 7.5
Underlying return on common equity tier 1 capital (%)(4) 15.3 11.3 7.2 8.4 13.3 9.2
Revenues over leverage ratio denominator, gross (%) 3.0 3.3 3.0 3.0 3.1 3.1
Cost / income ratio (%) 80.5 82.2 89.0 86.9 81.4 83.6
Underlying cost / income ratio (%)(4) 75.4 77.4 81.9 80.6 76.4 78.9
Effective tax rate (%) (9.5) 20.2 25.6 20.0 5.1 23.6
Net profit growth (%) 110.9 (3.6) n.m. (95.8) 41.4 (89.8)
Resources(2)
Total assets 1,669,991 1,543,363 1,565,028 1,560,976 1,669,991 1,560,976
Equity attributable to shareholders 89,277 87,185 85,079 83,683 89,277 83,683
Common equity tier 1 capital(5) 72,709 69,152 71,367 76,104 72,709 76,104
Risk-weighted assets(5) 504,500 483,276 498,538 511,376 504,500 511,376
Common equity tier 1 capital ratio (%)(5) 14.4 14.3 14.3 14.9 14.4 14.9
Going concern capital ratio (%)(5) 18.2 18.2 17.6 18.0 18.2 18.0
Total loss-absorbing capacity ratio (%)(5) 37.9 38.7 37.2 38.7 37.9 38.7
Leverage ratio denominator(5) 1,658,089 1,561,583 1,519,477 1,564,201 1,658,089 1,564,201
Common equity tier 1 leverage ratio (%)(5) 4.4 4.4 4.7 4.9 4.4 4.9
Liquidity coverage ratio (%)(6) 182.3 181.0 188.4 212.0 182.3 212.0
Net stable funding ratio (%) 122.4 124.2 125.5 128.0 122.4 128.0
Other
Invested assets (USD bn)(3,7) 6,618 6,153 6,087 5,873 6,618 5,873
Personnel (full-time equivalents) 105,132 106,789 108,648 109,991 105,132 109,991
Market capitalization(1,8) 113,036 105,173 105,719 101,903 113,036 101,903
Total book value per share (USD)(1) 28.17 27.35 26.80 26.13 28.17 26.13
Tangible book value per share (USD)(1) 25.95 25.18 24.63 23.85 25.95 23.85
Credit-impaired lending assets as a percentage of total lending assets, gross 0.9 1.0 1.0 0.9 0.9 0.9
(%)(3)
Cost of credit risk (bps)(3) 10 7 15 6 8 6
1 Refer to the “Share information and earnings per share” section of the
UBS Group second quarter 2025 report, available under “Quarterly
reporting” at ubs.com/investors, for more information. 2 Refer to the
“Targets, capital guidance and ambitions” section of the UBS Group Annual
Report 2024, available under “Annual reporting” at ubs.com/investors, and
to the “Recent development” section of the UBS Group second quarter 2025
report, available under “Quarterly reporting” at ubs.com/investors, for
more information about our performance targets. 3 Refer to “Alternative
performance measures” in the appendix to the UBS Group second quarter 2025
report, available under “Quarterly reporting” at ubs.com/investors, for
the relevant definition(s) and calculation method(s). 4 Refer to the “Group
performance” section of the UBS Group second quarter 2025 report, available
under “Quarterly reporting” at ubs.com/investors, for more information
about underlying results. 5 Based on the Swiss systemically relevant bank
framework. Refer to the “Capital management” section of the UBS Group
second quarter 2025 report, available under “Quarterly reporting” at
ubs.com/investors, for more information. 6 The disclosed ratios represent
quarterly averages for the quarters presented and are calculated based on an
average of 61 data points in the second quarter of 2025, 62 data points in the
first quarter of 2025, 64 data points in the fourth quarter of 2024 and 61
data points in the second quarter of 2024. Refer to the “Liquidity and
funding management” section of the UBS Group second quarter 2025 report,
available under “Quarterly reporting” at ubs.com/investors, for more
information. 7 Consists of invested assets for Global Wealth Management, Asset
Management (including invested assets from associates) and Personal &
Corporate Banking. Refer to “Note 31 Invested assets and net new money” in
the “Consolidated financial statements” section of the UBS Group Annual
Report 2024, available under “Annual reporting” at ubs.com/investors, for
more information. 8 The calculation of market capitalization reflects total
shares issued multiplied by the share price at the end of the period.
Income statement
For the quarter ended % change from Year-to-date
USD m 30.6.25 31.3.25 30.6.24 1Q25 2Q24 30.6.25 30.6.24
Net interest income 1,965 1,629 1,535 21 28 3,595 3,475
Other net income from financial instruments measured at fair value through 3,408 3,937 3,684 (13) (7) 7,346 7,866
profit or loss
Net fee and commission income 6,708 6,777 6,531 (1) 3 13,485 13,023
Other income 30 213 154 (86) (80) 243 278
Total revenues 12,112 12,557 11,904 (4) 2 24,668 24,642
Credit loss expense / (release) 163 100 95 63 72 263 201
Personnel expenses 6,976 7,032 7,119 (1) (2) 14,008 14,068
General and administrative expenses 1,881 2,431 2,318 (23) (19) 4,312 4,731
Depreciation, amortization and impairment of non-financial assets 898 861 903 4 (1) 1,759 1,798
Operating expenses 9,756 10,324 10,340 (6) (6) 20,080 20,597
Operating profit / (loss) before tax 2,193 2,132 1,469 3 49 4,325 3,844
Tax expense / (benefit) (209) 430 293 221 905
Net profit / (loss) 2,402 1,702 1,175 41 104 4,105 2,939
Net profit / (loss) attributable to non-controlling interests 7 10 40 (30) (81) 18 48
Net profit / (loss) attributable to shareholders 2,395 1,692 1,136 42 111 4,087 2,890
Comprehensive income
Total comprehensive income 5,357 3,345 1,614 60 232 8,703 1,369
Total comprehensive income attributable to non-controlling interests 22 26 18 (15) 21 48 13
Total comprehensive income attributable to shareholders 5,335 3,319 1,596 61 234 8,655 1,356
Information about results materials and the earnings call
UBS’s second quarter 2025 report, news release and slide presentation are
available from 06:45 CEST on Wednesday, 30 July 2025, at
ubs.com/quarterlyreporting.
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.ubs.com%2Fquarterlyreporting&esheet=54299230&newsitemid=20250729353165&lan=en-US&anchor=ubs.com%2Fquarterlyreporting.&index=1&md5=fe9547a3da458c63a18a0586c7b160b6)
UBS will hold a presentation of its second quarter 2025 results on Wednesday,
30 July 2025. The results will be presented by Sergio P. Ermotti (Group Chief
Executive Officer), Todd Tuckner (Group Chief Financial Officer) and Sarah
Mackey (Head of Investor Relations).
Time
09:00 CEST
08:00 BST
03:00 US EDT
Audio webcast
The presentation for analysts can be followed live on
ubs.com/quarterlyreporting
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.ubs.com%2Fquarterlyreporting&esheet=54299230&newsitemid=20250729353165&lan=en-US&anchor=ubs.com%2Fquarterlyreporting&index=2&md5=5cfcf3e3db1c9aedcdeb3744eb66f73e)
with a simultaneous slide show.
Webcast playback
An audio playback of the results presentation will be made available at
ubs.com/investors
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.ubs.com%2Finvestors&esheet=54299230&newsitemid=20250729353165&lan=en-US&anchor=ubs.com%2Finvestors&index=3&md5=6a4b9f269aba6f6a6e71fbcad64d6aa5)
later in the day.
Cautionary statement regarding forward-looking statements
This news release contains statements that constitute “forward-looking
statements”, including but not limited to management’s outlook for UBS’s
financial performance, statements relating to the anticipated effect of
transactions and strategic initiatives on UBS’s business and future
development and goals or intentions to achieve climate, sustainability and
other social objectives. While these forward-looking statements represent
UBS’s judgments, expectations and objectives concerning the matters
described, a number of risks, uncertainties and other important factors could
cause actual developments and results to differ materially from UBS’s
expectations. In particular, the global economy may suffer significant adverse
effects from increasing political tensions between world powers, changes to
international trade policies, including those related to tariffs and trade
barriers, and ongoing conflicts in the Middle East, as well as the continuing
Russia–Ukraine war. UBS’s acquisition of the Credit Suisse Group has
materially changed its outlook and strategic direction and introduced new
operational challenges. The integration of the Credit Suisse entities into the
UBS structure is expected to continue through 2026 and presents significant
operational and execution risk, including the risks that UBS may be unable to
achieve the cost reductions and business benefits contemplated by the
transaction, that it may incur higher costs to execute the integration of
Credit Suisse and that the acquired business may have greater risks or
liabilities than expected. Following the failure of Credit Suisse, Switzerland
is considering significant changes to its capital, resolution and regulatory
regime, which, if adopted, would significantly increase our capital
requirements or impose other costs on UBS. These factors create greater
uncertainty about forward-looking statements. Other factors that may affect
UBS’s performance and ability to achieve its plans, outlook and other
objectives also include, but are not limited to: (i) the degree to which UBS
is successful in the execution of its strategic plans, including its cost
reduction and efficiency initiatives and its ability to manage its levels of
risk-weighted assets (RWA) and leverage ratio denominator (LRD), liquidity
coverage ratio and other financial resources, including changes in RWA assets
and liabilities arising from higher market volatility and the size of the
combined Group; (ii) the degree to which UBS is successful in implementing
changes to its businesses to meet changing market, regulatory and other
conditions; (iii) inflation and interest rate volatility in major markets;
(iv) developments in the macroeconomic climate and in the markets in which UBS
operates or to which it is exposed, including movements in securities prices
or liquidity, credit spreads, currency exchange rates, residential and
commercial real estate markets, general economic conditions, and changes to
national trade policies on the financial position or creditworthiness of
UBS’s clients and counterparties, as well as on client sentiment and levels
of activity; (v) changes in the availability of capital and funding, including
any adverse changes in UBS’s credit spreads and credit ratings of UBS, as
well as availability and cost of funding to meet requirements for debt
eligible for total loss-absorbing capacity (TLAC); (vi) changes in central
bank policies or the implementation of financial legislation and regulation in
Switzerland, the US, the UK, the EU and other financial centers that have
imposed, or resulted in, or may do so in the future, more stringent or
entity-specific capital, TLAC, leverage ratio, net stable funding ratio,
liquidity and funding requirements, heightened operational resilience
requirements, incremental tax requirements, additional levies, limitations on
permitted activities, constraints on remuneration, constraints on transfers of
capital and liquidity and sharing of operational costs across the Group or
other measures, and the effect these will or would have on UBS’s business
activities; (vii) UBS’s ability to successfully implement resolvability and
related regulatory requirements and the potential need to make further changes
to the legal structure or booking model of UBS in response to legal and
regulatory requirements including heightened requirements and expectations due
to its acquisition of the Credit Suisse Group; (viii) UBS’s ability to
maintain and improve its systems and controls for complying with sanctions in
a timely manner and for the detection and prevention of money laundering to
meet evolving regulatory requirements and expectations, in particular in the
current geopolitical turmoil; (ix) the uncertainty arising from domestic
stresses in certain major economies; (x) changes in UBS’s competitive
position, including whether differences in regulatory capital and other
requirements among the major financial centers adversely affect UBS’s
ability to compete in certain lines of business; (xi) changes in the standards
of conduct applicable to its businesses that may result from new regulations
or new enforcement of existing standards, including measures to impose new and
enhanced duties when interacting with customers and in the execution and
handling of customer transactions; (xii) the liability to which UBS may be
exposed, or possible constraints or sanctions that regulatory authorities
might impose on UBS, due to litigation, contractual claims and regulatory
investigations, including the potential for disqualification from certain
businesses, potentially large fines or monetary penalties, or the loss of
licenses or privileges as a result of regulatory or other governmental
sanctions, as well as the effect that litigation, regulatory and similar
matters have on the operational risk component of its RWA; (xiii) UBS’s
ability to retain and attract the employees necessary to generate revenues and
to manage, support and control its businesses, which may be affected by
competitive factors; (xiv) changes in accounting or tax standards or policies,
and determinations or interpretations affecting the recognition of gain or
loss, the valuation of goodwill, the recognition of deferred tax assets and
other matters; (xv) UBS’s ability to implement new technologies and business
methods, including digital services, artificial intelligence and other
technologies, and ability to successfully compete with both existing and new
financial service providers, some of which may not be regulated to the same
extent; (xvi) limitations on the effectiveness of UBS’s internal processes
for risk management, risk control, measurement and modeling, and of financial
models generally; (xvii) the occurrence of operational failures, such as
fraud, misconduct, unauthorized trading, financial crime, cyberattacks, data
leakage and systems failures, the risk of which is increased with persistently
high levels of cyberattack threats; (xviii) restrictions on the ability of UBS
Group AG, UBS AG and regulated subsidiaries of UBS AG to make payments or
distributions, including due to restrictions on the ability of its
subsidiaries to make loans or distributions, directly or indirectly, or, in
the case of financial difficulties, due to the exercise by FINMA or the
regulators of UBS’s operations in other countries of their broad statutory
powers in relation to protective measures, restructuring and liquidation
proceedings; (xix) the degree to which changes in regulation, capital or legal
structure, financial results or other factors may affect UBS’s ability to
maintain its stated capital return objective; (xx) uncertainty over the scope
of actions that may be required by UBS, governments and others for UBS to
achieve goals relating to climate, environmental and social matters, as well
as the evolving nature of underlying science and industry and the increasing
divergence among regulatory regimes; (xxi) the ability of UBS to access
capital markets; (xxii) the ability of UBS to successfully recover from a
disaster or other business continuity problem due to a hurricane, flood,
earthquake, terrorist attack, war, conflict, pandemic, security breach,
cyberattack, power loss, telecommunications failure or other natural or
man-made event; and (xxiii) the effect that these or other factors or
unanticipated events, including media reports and speculations, may have on
its reputation and the additional consequences that this may have on its
business and performance. The sequence in which the factors above are
presented is not indicative of their likelihood of occurrence or the potential
magnitude of their consequences. UBS’s business and financial performance
could be affected by other factors identified in its past and future filings
and reports, including those filed with the US Securities and Exchange
Commission (the SEC). More detailed information about those factors is set
forth in documents furnished by UBS and filings made by UBS with the SEC,
including the UBS Group AG and UBS AG Annual Reports on Form 20-F for the year
ended 31 December 2024. UBS is not under any obligation to (and expressly
disclaims any obligation to) update or alter its forward-looking statements,
whether as a result of new information, future events, or otherwise.
Rounding
Numbers presented throughout this news release may not add up precisely to the
totals provided in the tables and text. Percentages and percent changes
disclosed in text and tables are calculated on the basis of unrounded figures.
Absolute changes between reporting periods disclosed in the text, which can be
derived from numbers presented in related tables, are calculated on a rounded
basis.
Tables
Within tables, blank fields generally indicate non-applicability or that
presentation of any content would not be meaningful, or that information is
not available as of the relevant date or for the relevant period. Zero values
generally indicate that the respective figure is zero on an actual or rounded
basis. Values that are zero on a rounded basis can be either negative or
positive on an actual basis.
Websites
In this news release, any website addresses are provided solely for
information and are not intended to be active links. UBS is not incorporating
the contents of any such websites into this news release.
UBS Group AG
Investor contact
Switzerland: +41-44-234 41 00
Americas: +1-212-882 57 34
Media contact
Switzerland: +41-44-234 85 00
UK: +44-207-567 47 14
Americas: +1-212-882 58 58
APAC: +852-297-1 82 00
ubs.com
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Copyright Business Wire 2025Recent news on UBS AG
See all newsREG - iShares Physical - Publication of Final Terms
AnnouncementREG - iShares Physical - Publication of Final Terms
AnnouncementREG - iShares Physical - Publication of Final Terms
AnnouncementREG-UBS AG UBS reports 2Q25 net profit of USD 2.4bn and USD 4.1bn for 1H25 with integration remaining on track; invested assets reach USD 6.6trn (Ad hoc announcement pursuant to Article 53 of the SIX Exchange Regulation Listing Rules)
AnnouncementREG - iShares Physical - Publication of Final Terms
Announcement