ZURICH--(BUSINESS WIRE)--July 30, 2025--
Regulatory News:
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Sergio P. Ermotti Quote
UBS (NYSE:UBS) (SWX:UBSN):
"We sustained robust momentum during a quarter that started with extreme volatility by staying close to our clients and executing on our integration plans. We also maintained a balance sheet for all seasons while delivering on our capital return plans. We are positioning for long term success by further enhancing our global capabilities, investing in our future infrastructure and AI, while actively engaging in the debate on future regulation in Switzerland. This allows us to fulfill our commitment to support all the communities where we live and work."
Sergio P. Ermotti, Group CEO
2Q25 PBT of USD 2.2bn and underlying(1) PBT of USD 2.7bn, net profit of USD 2.4bn, RoCET1 of 13.5% and underlying RoCET1 of 15.3%. Core businesses(2) increased combined underlying PBT by 25% YoY
1H25 PBT of USD 4.3bn and underlying PBT of USD 5.3bn, net profit of USD 4.1bn, RoCET1 of 11.6% and underlying RoCET1 of 13.3%
Continued client momentum in a volatile environment supporting growth in Group invested assets, with Global Wealth Management 1H25 net new assets of USD 54.8bn. GWM 2Q25 transaction-based income +12% YoY and best second quarter in Global Markets with revenues up 25% YoY supported by record balances and revenues in Prime Brokerage
Integration remains on track with one-third of client accounts booked in Switzerland migrated. Delivered further USD 0.7bn in exit rate gross cost saves bringing cumulative cost reductions to USD 9.1bn, or 70% of the USD 13bn in expected gross saves
Continued progress in Non-core and Legacy wind-down and legal entity structure simplification; NCL risk- weighted assets down by USD 1.5bn sequentially to USD 32.7bn
Maintained strong capital position with 14.4% CET1 capital ratio and 4.4% CET1 leverage ratio. Our ability to generate capital is funding strategic investments and sustainable shareholder returns
Delivering on our capital return plans for 2025, completed USD 0.5bn in share buybacks and plan to complete repurchase of up to USD 2.0bn in the second half of the year. Continued accruing for a double-digit growth in dividend
Reliable partner for the Swiss economy, staying close to private clients and businesses with our balance sheet for all seasons and leading credit offering. Granted or renewed around CHF 40bn of loans during the quarter
Positioning for long-term success by strengthening global capabilities and investing into future-ready infrastructure and tools, including Gen AI and cloud to enable secure, scalable delivery and boosting productivity. Meanwhile, actively engaging in debate on future regulatory requirements in Switzerland
USD 2.2bn 80.5% 13.5% USD 2.4bn 14.4% CET1 Profit before Cost/income RoCET1 capital Net profit capital ratio tax ratio USD 2.7bn 75.4% 15.3% USD 0.72 4.4% CET1 Underlying(1) Underlying(1) Underlying(1) Diluted EPS leverage ratio profit before cost/income RoCET1 capital tax ratio Information in this news release is presented for UBS Group AG on a consolidated basis unless otherwise specified. 1 Underlying results exclude items of profit or loss that management believes are not representative of the underlying performance. Underlying results are a non-GAAP financial measure and alternative performance measure $(APM.AU)$. Refer to "Group Performance" and "Appendix-Alternative Performance Measures" in the financial report for the second quarter of 2025 for a reconciliation of underlying to reported results and definitions of the APMs. 2 Includes Global Wealth Management, Personal & Corporate Banking, Asset Management, the Investment Bank, and Group Items.
Group summary
Strong financial performance
In 2Q25, we reported PBT of USD 2,193m and underlying PBT of USD 2,683m, up 49% and 30% YoY, respectively, driven by growth in our core businesses, which increased their combined underlying pre-tax profits by 25% YoY. Net profit attributable to shareholders was USD 2,395m, up 111% YoY and included a net release of provisions and contingent liabilities of USD 427m related to the resolution of a legacy Credit Suisse cross-border matter and a net deferred tax benefit of USD 577m. Return on CET1 capital was 13.5%, or 15.3% on an underlying basis.
Reported revenues were USD 12,112m, up 2% YoY. On an underlying basis, revenues increased by 4% to USD 11,546m. Underlying revenues from our core businesses increased 8%, reflecting the strength, scale and geographic diversification of our franchises and our ability to drive synergies across the Group. Underlying revenues in Non-core and Legacy division declined by USD 484m from 2Q24, mainly reflecting lower net gains on position exits as we significantly reduced NCL's portfolio through successful de-risking actions over the last year.
Reported Group operating expenses decreased by 6% YoY to USD 9,756m. On an underlying basis, operating expenses decreased by 3% to USD 8,701m as we continued to execute on our integration and efficiency plans at pace.
For the first half of 2025, we reported PBT of USD 4,325m and underlying PBT of USD 5,269m, driven by a 2% increase in underlying revenues and a 2% decline in underlying expenses. Net profit increased to USD 4,087m, with RoCET1 of 11.6% and underlying RoCET1 of 13.3%.
Continued client momentum
During the second quarter, clients continued to rely on UBS, valuing the breadth of our advice and global capabilities amid a challenging and unpredictable geopolitical and market environment.
Group invested assets reached USD 6.6trn, up 8% QoQ driven by increases across Global Wealth Management, Asset Management and Personal & Corporate Banking. In GWM net new assets reached USD 23bn with strong generation in APAC, EMEA and Switzerland and robust performance in the Americas, where high inflows from existing clients mostly offset outflows from seasonal tax-related payments.
Transactional activity during the quarter remained robust despite more muted sentiment among private clients, while institutional clients remained very active. In GWM, transaction-based income increased by 12% YoY with positive momentum across all regions. In the Investment Bank, Global Markets delivered a record second quarter with revenues of USD 2.3bn, up 25% YoY, tracking the exceptional levels of volatility early in the quarter. Higher revenues in Equities and FX once again reflect our ability to serve clients in a dynamic market environment, capturing growth opportunities in the areas of our strategic focus.
Reliable partner for the Swiss economy
Businesses and households in Switzerland benefit from our global reach, advice and expertise. Our balance sheet for all seasons gives them the stability they need while allowing us to remain a leading provider of credit to the economy. We have granted or renewed around CHF 40bn of loans during the quarter.
Our conservative approach to risk and highly robust business model is reflected in the Group's loan-to-deposit ratio of 81% and cost of risk of only 10bps.
Integration on track with strong progress on client account migrations in Switzerland
We progressed our integration plans at pace during the quarter. We have now completed the migration of Credit Suisse client accounts booked outside of Switzerland to the UBS platform and executed the first main wave of migrations in Switzerland, having now transferred approximately one-third of targeted client accounts. We remain on track to complete the Swiss booking center migrations by the end of the first quarter of 2026.
Additionally, we have made substantial progress on the simplification of our legal entity structure in the US and Europe in the quarter.
Delivering on cost savings plans
Through disciplined execution of our cost-reduction work we delivered an additional USD 0.7bn in gross cost saves in the quarter by further downsizing Non-core and Legacy's expense base and realizing cost synergies in the core businesses. To date we have decommissioned around 700 applications, or 56% of NCL's initial stack.
We have already achieved 70% of our plan and are well on track to deliver around USD 13bn in Group-wide annualized exit rate gross cost savings by end-2026.
As in previous quarters, we continued to exit positions in NCL leading to a USD 1.5bn RWA reduction in 2Q25 and bringing RWA to USD 32.7bn at the end of June. With 83% of its initial books closed, NCL remains on track to achieve its ambition to close over 95% of them by end-2026 and reduce RWA below USD 22bn.
Maintained strong capital position
In the second quarter, we maintained a strong capital position with a CET1 capital ratio of 14.4% and a CET1 leverage ratio of 4.4%. Both are in excess of our guidance of 14% and >4.0%, respectively, and provide a solid capital buffer to requirements during the integration, while allowing us to self-fund strategic investments and return capital to shareholders.
Commitment to capital returns
In the second quarter, we continued to accrue for a double-digit increase in the ordinary dividend per share, to be paid out in 2026 and completed USD 0.5bn in share repurchases. In the first half of 2025 we have completed USD 1bn in share repurchases and plan to complete repurchase of up to USD 2bn in the second half of 2025. This plan continues to be subject to UBS maintaining a CET1 capital ratio target of around 14% and achieving its financial targets and is consistent with UBS's previously communicated plans and conservative approach.
We will communicate on our 2026 capital returns ambitions with our fourth quarter and full-year financial results for 2025.
Investing for long-term growth
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