UBS(US:UBS)2026-03-09 12:15Financial 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].