UBS reports net profit of USD 1.2bn in 4Q25 and USD 7.8bn in FY25; increases dividend by 22% YoY; confirms 2026 targets and sets ambitions for 2028 (Ad hoc announcement pursuant to Article 53 of the SIX Exchange Regulation Listing Rules)

Core Insights - UBS demonstrated strong financial performance in FY25, with a net profit of USD 7.8 billion, up 53% year-over-year, and a return on CET1 capital (RoCET1) of 10.8% [5][14] - The integration of Credit Suisse is progressing well, with approximately 85% of Swiss-booked accounts successfully migrated to UBS systems, and cumulative cost reductions reaching USD 10.7 billion [5][16] - The company is on track to achieve its 2026 exit rate targets, aiming for an underlying RoCET1 of 15% and a cost/income ratio of less than 70% [18][28] Financial Performance - In Q4 2025, UBS reported a net profit of USD 1.2 billion, a 56% increase year-over-year, with a diluted EPS of USD 0.37, up 61% [8][30] - The profit before tax (PBT) for Q4 2025 was USD 1.7 billion, with underlying PBT at USD 2.9 billion, both reflecting a 62% increase year-over-year [7][30] - Group invested assets exceeded USD 7 trillion for the first time, marking a 15% year-over-year increase, driven by strong client engagement and market performance [9][5] Integration and Cost Management - The integration of Credit Suisse is nearing completion, with an additional USD 0.5 billion in synergies identified, bringing the total to USD 13.5 billion [3][16] - The company has achieved significant cost savings, with gross cost savings of USD 0.7 billion in Q4 2025, ahead of the FY25 guidance of approximately USD 10 billion [13][5] - Operating expenses for FY25 decreased by 1% year-over-year to USD 10.3 billion, while underlying operating expenses increased by 1% to USD 9.2 billion [12][5] Strategic Initiatives - UBS is investing in technology and talent, particularly in AI, with over 380 live AI cases and 780 in development, aimed at enhancing operational resilience and client experience [21][5] - The company plans to propose a dividend of USD 1.10 per share for FY25, a 22% increase year-over-year, and intends to continue share repurchases [23][24] - UBS aims for a reported RoCET1 of approximately 18% and a cost/income ratio of around 67% by 2028, supported by sustainable growth and efficiency gains [19][22]