Updated posts 2026
In a notable turnaround, UBS, the Swiss banking group, announced today that it surpassed fourth-quarter earnings expectations, coupled with a move to recommence share buybacks worth up to $1 billion later this year.
Despite integration costs stemming from the acquisition of Credit Suisse, UBS came in narrower than a forecast net loss, posting a figure of $279 million for the quarter. Analysts had anticipated a wider loss of $372 million.
Led by CEO Sergio Ermotti, UBS proposed a dividend per share of $0.70, a 27% increase on the previous year.
The improvement in UBS’s financial performance rests on its underlying operating profit before tax, which stood at $592 million for the fourth quarter, below the anticipated $762 million but positive during a demanding integration period.
Ermotti expressed satisfaction with the results, highlighting profitability and momentum with clients. “We had $22 billion of inflows in net new assets and also saw very good inflows in deposits across both wealth management and the P&C (personal and corporate banking),” he said.
The scale of what UBS took on here is worth keeping in view. Credit Suisse was not a willing seller but a systemically important bank whose collapse in March 2023 was halted by a weekend arrangement brokered by Swiss authorities, with state guarantees attached. UBS acquired a balance sheet it had days rather than months to examine, and the resulting entity holds assets amounting to several times Swiss annual economic output. Quarterly results during an integration of that kind tell you comparatively little; the outcome will be visible over years, and Swiss regulators have since moved to tighten capital requirements on the combined bank as a result.
Since the completion of the takeover of Credit Suisse’s wealth management business in June 2023, UBS has experienced a faster-than-expected return of client inflows. The integration continues, with UBS pursuing a restructuring that includes the elimination of approximately 3,000 roles previously held by Credit Suisse employees.
Despite the positive figures, UBS acknowledges risks associated with the integration, particularly around delays. Ermotti emphasised the importance of careful planning, especially regarding IT migration, a critical component of combining the two banks.
UBS reported total group revenues of $10.86 billion for the fourth quarter, a slight decline from the previous quarter. The CET1 capital ratio, a key measure of bank capital strength, improved marginally to 14.5%.
UBS shares saw a modest decline in early 2024, falling 3.3% in early trading. Analysts anticipate a shift in sentiment as attention moves toward fundamental indicators rather than short-term accounting effects.
Johann Scholtz, a Morningstar equity analyst, emphasised the importance of net new money growth in the wealth management division, particularly in the portion inherited from Credit Suisse. Scholtz argues this metric offers the clearest insight into the combined entity’s ability to retain and attract clients, which is central to fee income and to restoring profitability.
As UBS works through its integration and pursues longer-term growth, attention to fundamental indicators is expected to intensify.
Also read: Swiss Bank UBS to Cut 3,000 Jobs After Record $29 Billion Profit
