JUST IN: $7 trillion UBS says it is considering offering access to cryptocurrencies for individual clients. https://t.co/2gQjG6Gdgv ...

UBS’s asset-management unit booked a $29 million loss in the fourth quarter related to the sale of its O’Connor business to Cantor Fitzgerald, according to the bank’s quarterly report https://t.co/SSzOOnlWuk ...

JUST IN: $7 trillion UBS Group CEO Sergio Ermotti said the bank is considering offering access to crypto for individual clients. https://t.co/NzWgSSHUlT ...

UBS reported a net profit attributable to shareholders of $1.2bn in the fourth quarter of 2025 (Q4 2025), up 56% year-on-year. The Swiss bank’s profit before tax (PBT) stood at $1.7bn in the quarter under review, an increase of 62% from the previous year. Group invested assets surpassed $7tn for the first time, reflecting a 15% annual increase, supported by market gains, currency movements, and net asset inflows. Global Wealth Management (GWM) recorded $101bn in net new assets over the year, with notab ...

Core Viewpoint - The majority of job reductions in UBS' Swiss business are expected to occur in the second half of 2026, as stated by the bank's CEO Sergio Ermotti [1] Group 1 - UBS is planning significant job reductions within its Swiss operations [1] - The timing for these job cuts is projected for the latter half of 2026 [1] - CEO Sergio Ermotti provided this information during a press briefing [1]

Financial Performance - Total revenues for Q4 2025 were USD 12,145 million, a decrease of 4.8% from Q3 2025 and an increase of 4.4% year-over-year[18]. - Net profit attributable to shareholders for Q4 2025 was USD 1,199 million, representing a 55.6% increase compared to Q4 2024[18]. - Operating profit before tax for Q4 2025 was USD 1,700 million, compared to USD 2,828 million in Q3 2025 and USD 1,047 million in Q4 2024[18]. - Total revenues for the year ended 31.12.25 were $49,573 million, up from $48,611 million in the previous year[43]. - Operating profit before tax (underlying) for the year ended 31.12.25 was $11,729 million, an increase from $8,831 million in 2024[43]. - Total revenues for Q4 2025 reported at $12,145 million, an increase from $12,760 million in Q3 2025[42]. - Total revenues for Q4 2025 increased by USD 574m, or 9.4%, to USD 6,695m compared to Q4 2024[106]. Cost Management - UBS Group achieved cumulative gross cost savings of USD 10.7 billion by the end of Q4 2025, with an increased target for annualized exit rate gross cost savings of approximately USD 13.5 billion by the end of 2026[22]. - Integration-related expenses for Q4 2025 totaled $1,941 million, up from $1,146 million in Q3 2025[44]. - Operating expenses (underlying) for Q4 2025 were $9,169 million, an increase from $8,507 million in Q3 2025[42]. - Operating expenses increased by USD 105 million, or 2%, to USD 5,373 million, with underlying operating expenses at USD 4,989 million, an increase of 4%[101]. Capital and Ratios - The return on equity for Q4 2025 was 5.3%, down from 11.1% in Q3 2025 but up from 3.6% in Q4 2024[18]. - The effective tax rate for Q4 2025 was 29.1%, significantly higher than 12.0% in Q3 2025[18]. - The company aims to achieve a reported RoCET1 of around 18% by 2028, with a CET1 capital ratio of approximately 14%[24]. - The underlying return on common equity tier 1 capital is targeted at around 15%, with a cost/income ratio of less than 70%[26]. - As of December 31, 2025, common equity tier 1 (CET1) capital decreased by USD 3.4bn to USD 71.3bn, primarily due to a new USD 3.0bn capital reserve for expected future share repurchases[81]. - The CET1 capital ratio decreased to 14.4% from 14.8% in Q4 2025, due to the decrease in CET1 capital[85]. Asset Management - For Global Wealth Management, the company expects to manage over USD 5.5 trillion in invested assets by 2028, generating more than USD 200 billion in net new assets annually from 2028[26]. - Invested assets increased by USD 39 billion to USD 4,753 billion, driven by positive market performance and net new asset inflows[102]. - Net new assets were USD 8.5 billion, contributing to a total of USD 100.8 billion in net new assets for the year[103]. - Global Wealth Management revenues increased by USD 83m to USD 2,300m, driven by favorable changes in deposit mix and positive foreign currency effects[52]. Integration and Migration - As of Q4 2025, 85% of Swiss-booked client accounts from Credit Suisse had been migrated, with the migration of Personal & Corporate client accounts substantially complete[20]. - The company is on track to complete integration by the end of 2026, with net savings expected to build progressively throughout the year[90]. Market and Economic Conditions - Market conditions are expected to remain constructive in Q1 2026, with a focus on diversification across geographies and asset classes[88]. - Global Wealth Management's net interest income is expected to decline by a low single-digit percentage in Q1 2026, while Personal & Corporate Banking's NII is anticipated to remain stable[89]. - In the fourth quarter of 2025, inflation remained stable in major Western economies, with ongoing concerns about trade tensions impacting prices and growth[172]. Risks and Compliance - The company is enhancing its global anti-money-laundering and sanctions programs to address the complexities of financial crime risks[177]. - The operational risk related to cyber threats is heightened due to increasing sophistication of cyberattacks against financial institutions globally[179]. - The company is investing in technology infrastructure and information-security governance to strengthen its capabilities against cyber threats[179]. - The company has established an AI framework to address risks related to data ethics, privacy, and security in the context of generative AI and machine learning[180].

Financial Data and Key Metrics Changes - The company reported a CHF 9 billion dividend, with CHF 4.5 billion to be upstreamed to the group for share buybacks and dividends, while the remaining CHF 4.5 billion will stay at UBS AG to prepare for potential capital rule strengthening [3][5][10] - The underlying cost income ratio is expected to be delayed below 50% by the end of 2026 due to Swiss franc interest rate headwinds [4] Business Line Data and Key Metrics Changes - The company experienced some loss of market share during the integration of Credit Suisse, which was anticipated due to client diversification needs [23] - The company expects net new assets to grow to CHF 125 billion by 2026, up from CHF 100 billion, as headwinds from balance sheet optimization have been resolved [41] Market Data and Key Metrics Changes - The company noted that equity markets are showing higher dispersion and lower correlation, which is favorable for trading businesses [18] - There is potential for event-driven volatility due to geopolitical issues and market conditions, which could impact future performance [19] Company Strategy and Development Direction - The company is focused on sustainable returns and building resilience in its business, emphasizing the importance of risk-reward balance in pricing [24] - The management is optimistic about achieving revenue doubling in Global Banking by 2026, contingent on favorable market conditions [63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the constructive engagement with U.S. regulators regarding the licensing process, expecting final approval within the year [14] - The company is committed to transparency in legacy matters inherited from Credit Suisse and is collaborating with authorities to resolve these issues [31][32] Other Important Information - The company is managing a reduction in force, with layoffs expected to be more pronounced in the second half of the year, while also focusing on minimizing proactive redundancies through attrition [68][69] - The company clarified that the capital repatriation does not affect the previously outlined CHF 26 billion capital buildup requirement [45][46] Q&A Session Summary Question: Clarification on P&C unit's combined ratio target - Management indicated optimism about achieving a combined ratio below 50% without further cost-cutting efforts, although interest rate headwinds may delay this target [3][4] Question: U.S. licensing process timeline - Management expects to move from conditional to final approval during the year, with constructive engagement from regulators [14] Question: Client attrition during integration - Management acknowledged some client losses were expected but noted that the majority of relationships were retained [23][25] Question: AI-triggered sell-off impact - Management is monitoring market volatility and its potential impact on client navigation through current market conditions [30] Question: O'Connor sale loss implications - The loss indicates that the sale proceeds were less than the cost basis, attributed to changes in sale perimeter [55][56] Question: Global Banking revenue doubling confidence - Management remains confident in achieving revenue doubling by 2026, citing a strong pipeline and favorable market conditions [63][64]

Financial Data and Key Metrics Changes - The company expects to achieve an underlying cost income ratio below 50% by the end of 2026, although Swiss franc interest rate headwinds may delay this target [5] - A total of CHF 9 billion was upstreamed to UBS AG, with CHF 4.5 billion allocated for share buybacks and dividends [3][6] - The company paid CHF 13 billion in upstreams last year and expects to pay CHF 9 billion this year [8] Business Line Data and Key Metrics Changes - The company is optimistic about the P&C unit achieving a combined ratio below 50% due to decommissioning and new business [3] - The integration of former Credit Suisse clients has resulted in some market share loss, but the company retained the majority of relationships [17][19] Market Data and Key Metrics Changes - The company anticipates constructive market conditions for trading businesses, with potential for event-driven volatility due to geopolitical issues [13][14] - The outlook for net new assets is projected to reach CHF 125 billion by 2026, up from CHF 100 billion [31][32] Company Strategy and Development Direction - The company is focused on maintaining prudent buffers while managing capital upstreaming, aiming for an equity double leverage ratio around 100% [6] - The company is committed to a balanced approach in managing redundancies, emphasizing meritocracy in workforce decisions [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges potential volatility due to political events and geopolitical issues but remains confident in market conditions [13][14] - The company is actively collaborating with U.S. regulators to secure final approval for licensing, indicating constructive engagement [11] Other Important Information - The company is addressing legacy matters from Credit Suisse, emphasizing the need for legal protections to facilitate transparency [39][40] - The company is not planning to disclose headcount guidance but will manage costs and report on KPIs quarterly [53] Q&A Session Summary Question: Clarification on P&C unit's combined ratio target - Management expressed optimism about achieving a combined ratio below 50% without further cost-cutting efforts [3] Question: U.S. licensing process timeline - Management expects to move from conditional approval to final approval within the year, noting constructive engagement with regulators [11] Question: Outlook for market volatility - Management sees potential for event-driven volatility but remains confident in the overall market conditions [13][14] Question: Impact of layoffs on former Credit Suisse employees - Management acknowledged some job losses but emphasized that many clients were retained during the integration process [17][19] Question: Legal strategy regarding the Barofsky investigation - Management clarified that they are collaborating with authorities while adhering to legal constraints [39][40] Question: Net new assets trajectory - Management confirmed a target of CHF 200 billion in net new assets by 2028, with expected growth from CHF 100 billion in 2026 [31][32]

Financial Data and Key Metrics Changes - The company reported a dividend of CHF 9 billion, with CHF 4.5 billion to be upstreamed to the group for share buybacks and dividends, while the remaining CHF 4.5 billion will stay at UBS AG to strengthen capital rules [3][10][12] - The underlying cost income ratio is expected to remain above 50% due to Swiss franc interest rate headwinds, delaying the target achievement until the end of 2026 [5] Business Line Data and Key Metrics Changes - The company is optimistic about the P&C unit achieving a combined ratio below 50% without further cost-cutting efforts, thanks to decommissioning and new business [3] - The company has seen a loss in market share due to client diversification during the merger with Credit Suisse, but retained the majority of client relationships [22] Market Data and Key Metrics Changes - The company anticipates constructive market conditions for trading businesses, with potential for event-driven volatility due to geopolitical issues and commodity market fluctuations [18][19] - The outlook for net new assets is projected to grow from CHF 100 billion in 2025 to CHF 125 billion in 2026, as headwinds from previous years are resolved [41][43] Company Strategy and Development Direction - The company is focused on maintaining prudent buffers while managing capital upstreaming, aiming for an equity double leverage ratio around 100% [8][12] - The company is committed to a balanced approach in managing redundancies, emphasizing meritocracy and fair treatment of employees during the integration process [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue doubling targets by 2026, despite market volatility and competitive pressures [62] - The company is actively collaborating with U.S. regulators to secure final approval for its licensing process, indicating constructive engagement [15] Other Important Information - The company is addressing legacy issues from Credit Suisse, emphasizing the need for legal protections to facilitate transparency and collaboration in ongoing investigations [50][51] - The company is not planning to disclose headcount guidance but will manage costs and report on KPIs quarterly [67] Q&A Session Summary Question: Clarification on P&C unit's combined ratio target - Management clarified that achieving a combined ratio below 50% is optimistic and does not require further cost-cutting efforts [3] Question: Details on upstreamed capital at UBS AG - Management confirmed that CHF 9 billion was accrued as a dividend, with CHF 4.5 billion to be paid in the first half of the year, and further payments will be revisited later [10][12] Question: U.S. licensing process timeline - Management expects to move from conditional approval to final approval during the year, with constructive engagement from U.S. authorities [15] Question: Outlook for market volatility - Management noted that while the market conditions are currently constructive, there is potential for significant volatility due to geopolitical issues [19] Question: Impact of layoffs on headcount and bonus pool - Management indicated that layoffs would begin in the first half of the year, with more expected in the second half, and the bonus pool size will be disclosed in the compensation report [66][68]

Core Insights - UBS ended the year with total assets of CHF 1.6 trillion, a decrease of CHF 15 billion from the previous quarter, primarily due to liability management and long-term debt redemptions [1] - The company reported a net profit of CHF 1.2 billion for the fourth quarter, with a pre-tax profit of CHF 2.9 billion, reflecting a 62% year-over-year increase supported by revenue momentum and cost discipline [3][4] - UBS's CET1 capital ratio was 14.4% at the end of December, slightly lower sequentially, attributed to capital reduction from shareholder returns [5] Financial Performance - The fourth-quarter pre-tax profit for Global Wealth Management was CHF 1.6 billion, up from CHF 1.1 billion a year earlier, with revenues increasing by 11% [9] - Personal & Corporate Banking reported a pre-tax profit of CHF 543 million, down 5%, mainly due to lower net interest income [11] - Investment Bank's pre-tax profit rose 56% to CHF 703 million, with revenues increasing by 13% [13] Cost Management and Savings - UBS achieved CHF 700 million in gross cost savings through technology decommissioning and reduced third-party spending [3] - The company has delivered CHF 10.7 billion in cumulative gross run-rate cost savings to date and increased its savings ambition to CHF 13.5 billion [15] Capital Management and Buybacks - UBS plans to repurchase $3 billion of shares in 2026, contingent on financial performance and regulatory clarity [6] - The parent bank's CET1 ratio increased to 14.2% due to CHF 9 billion of capital returned from subsidiaries [7] Regulatory and Market Outlook - UBS expects the liquidity coverage ratio to remain around current levels due to Swiss liquidity rules fully phased in by the end of 2024 [5] - Management indicated that the timing and phase-in of expected capital ordinance measures will need confirmation from the Swiss Federal Council [8]