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UBS announced plans for a $3 billion buyback Wednesday and posted fourth-quarter profits that beat analysts’ forecasts.
The Swiss banking giant said it aims to buyback at least $3 billion of shares in 2026, adding that it aims to do more.
Net profit attributable to shareholders rose 56% year-on-year to $1.2 billion in the final three months of the year. That was higher than analysts’ estimates of $919 million.
Overall, its group revenues were $12.1 billion for the final quarter of the year, which was in line with the $12.1 billion forecast by analysts. It was also down from $12.8 billion in the previous quarter, and up from $11.6 billion for the same period a year ago.
UBS.
Meanwhile, UBS’ common equity tier (CET) 1 capital ratio — a gauge of a bank’s solvency — was 14.4% for the fourth quarter, compared to 14.8% in the previous quarter.
CEO Sergio Ermotti — who is preparing to step down from his role as head of Switzerland’s largest lender in April next year once its absorption of Credit Suisse is concluded — said the bank’s group invested assets now exceed $7 trillion for the first time.
"We maintained a strong capital position and delivered on our capital return commitments in the year with an increased dividend complemented by share repurchases," he said in a statement. "We are poised to achieve our 2026 exit rate targets and medium-term ambitions."
Ermotti, who returned to the helm in 2023 to oversee the government-led emergency takeover of the UBS’ stricken Swiss rival, added that the bank made "great progress" on "one of the most complex integrations in banking history."
Johann Scholtz, senior equity analyst at Morningstar, said the fourth-quarter earnings were another strong set of results for the bank.
Speaking with CNBC’s "Europe Early Edition" on Wednesday, Scholtz said UBS executed well on the Credit Suisse integration, but cautioned that there remains "a bit of an overhang" on the bank’s share price from Switzerland’s capital requirements rules.