UBS profit surges 56% in Q4 2025

Financial Performance - UBS reported a net profit attributable to shareholders of $1.2 billion in Q4 2025, up 56% year-on-year [1] - Profit before tax (PBT) for Q4 2025 was $1.7 billion, an increase of 62% from the previous year [1] - For the full year, UBS reported a profit before tax of $8.9 billion and underlying PBT of $11.7 billion, rising 30% and 33% respectively [4] - Net profit attributable to shareholders for the full year grew by 53% to $7.8 billion, with diluted EPS at $2.36, up 55% [4] Asset Management - Group invested assets surpassed $7 trillion for the first time, reflecting a 15% annual increase [1] - Global Wealth Management (GWM) recorded $101 billion in net new assets over the year, with inflows in APAC, EMEA, and Switzerland [2] - GWM revenues increased by 9% to $6.7 billion due to higher fee and transaction income [2] Revenue and Expenses - Fourth-quarter group revenues rose by 4% to $12.1 billion, while operating expenses declined slightly by 1% to $10.2 billion [2] - Personal & Corporate Banking saw total revenues fall by 8% to SFr 1.8 billion ($2.3 billion) due to reduced net interest income [3] - Asset Management posted a 4% increase in revenues to $800 million despite lower performance fees [3] - Investment Bank revenues grew by 7% to $2.95 billion, largely driven by global markets activity [3] Strategic Initiatives - UBS is making significant progress in integrating Credit Suisse's operations, completing about 85% of client account migrations in Switzerland [4] - The bank plans to finish migrating remaining accounts in early 2026 and aims to retire legacy Credit Suisse IT systems by year-end [5] - These actions are expected to contribute to targeted cost savings of $2.8 billion in 2026 [5] Future Outlook - Guidance for early 2026 suggests a low single-digit percentage decline in net interest income for GWM and stable levels for Personal & Corporate Banking [5] - Targets for 2028 include an approximate return on CET1 capital of 18% and a cost/income ratio around 67% [6] - Concerns were expressed regarding proposed increases to Swiss banking capital requirements, which could lead to higher costs [6]