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UBS Group Q2 Earnings & Revenues Rise Y/Y, Expenses Decline
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Key Takeaways
UBS reported 2Q25 net profit of $2.39B, more than doubling from the prior year's $1.14B.
Strong profits in the Wealth, Asset Management and Investment Bank units drove 1.7% revenue growth.
UBS cut expenses by 5.6% and achieved 70% of the targeted $13B in cost savings from the Credit Suisse merger.
UBS Group AG (UBS - Free Report) reported a second-quarter 2025 net profit attributable to shareholders of $2.39 billion compared with $1.14 billion in the prior-year quarter.
Results were driven by the strong performances of the Global Wealth Management, Asset Management, and Investment Bank divisions. However, the increase in credit loss expenses was a headwind.
UBS' Revenues & Expenses
The company’s second-quarter total revenues increased 1.7% year over year to $12.11 billion.
Operating expenses fell 5.6% year over year to $9.75 billion.
UBS Group reported total credit loss expenses of $163 million, which surged 71.6% from the year-ago quarter.
UBS Group Business Divisions’ Performance
Global Wealth Management’s operating profit before tax was $1.2 billion, up from $871 million in the year-ago quarter.
Asset Management’s operating profit before tax was $153 million, up 17.7% from the year-ago quarter.
Personal & Corporate Banking reported operating profit before tax of $695 million, down 10.1% year over year.
The Investment Bank unit reported an operating profit before tax of $557 million, up 16.7% from the year-ago quarter.
Non-Core & Legacy incurred an operating loss before tax of $250 million in the reported quarter compared with a loss of $4.05 million in the year-ago quarter.
Group Items reported an operating loss before tax of $167 million compared with a loss of $377 million in the year-ago quarter.
UBS' Capital Position
Total assets rose 8.2% from the previous quarter’s end to $1.67 trillion.
UBS’ return on Common Equity Tier 1 (CET1) capital was 13.5% as of June 30, 2025, compared with 5.9% as of June 30, 2024.
The risk-weighted assets declined 1.3% year over year to $504.5 billion.
The CET1 capital declined 4.4% year over year to $72.7 billion. As of June 30, 2025, UBS's invested assets were $6.6 trillion, up 12.6% year over year.
UBS Group’s Capital Distribution Update
In the second quarter of 2025, UBS completed its planned $0.5-billion worth of share repurchases. The company aims to repurchase up to $2 billion of shares in the second half of 2025.
UBS Progresses With Credit Suisse Integration Plan
The company is on track to substantially complete the integration of Credit Suisse by the end of 2026.
UBS has 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 the targeted client accounts.
The company remains on track to complete the Swiss booking center migrations by the end of the first quarter of 2026. Additionally, UBS has made substantial progress on the simplification of its legal entity structure in the United States and Europe in the quarter.
In the second quarter of 2025, UBS realized an additional $0.7 billion in gross cost savings. The company has already achieved 70% of its plan and is well on track to deliver around $13 billion in Group-wide annualized exit rate gross cost savings by the end of 2026.
Our Take on UBS Group
UBS’s inorganic growth efforts will support its top line. The company continues to progress with the integration of Credit Suisse. UBS Group significantly reduced execution risks while its capital position remained robust.
ICICI Bank Ltd.’s (IBN - Free Report) net income for the first quarter of fiscal 2025 (ended June 30) was INR127.7 billion ($1.5 billion), up 15.5% from the prior-year quarter.
IBN results were driven by increased net interest income, non-interest income, and loan growth. However, higher operating expenses and declines in deposits and provisions were the headwinds.
Deutsche Bank (DB - Free Report) reported second-quarter 2025 earnings attributable to its shareholders of €1.49 billion ($1.75 billion) against the loss attributable to its shareholders of $143 million in the year-ago period.
This Germany-based lender reported a profit before tax of €2.4 billion ($2.8 billion), up from $411 million in the year-ago quarter.
DB’s results were gained from increased revenues and lower expenses. Lower provision for credit losses was another positive.
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UBS Group Q2 Earnings & Revenues Rise Y/Y, Expenses Decline
Key Takeaways
UBS Group AG (UBS - Free Report) reported a second-quarter 2025 net profit attributable to shareholders of $2.39 billion compared with $1.14 billion in the prior-year quarter.
Results were driven by the strong performances of the Global Wealth Management, Asset Management, and Investment Bank divisions. However, the increase in credit loss expenses was a headwind.
UBS' Revenues & Expenses
The company’s second-quarter total revenues increased 1.7% year over year to $12.11 billion.
Operating expenses fell 5.6% year over year to $9.75 billion.
UBS Group reported total credit loss expenses of $163 million, which surged 71.6% from the year-ago quarter.
UBS Group Business Divisions’ Performance
Global Wealth Management’s operating profit before tax was $1.2 billion, up from $871 million in the year-ago quarter.
Asset Management’s operating profit before tax was $153 million, up 17.7% from the year-ago quarter.
Personal & Corporate Banking reported operating profit before tax of $695 million, down 10.1% year over year.
The Investment Bank unit reported an operating profit before tax of $557 million, up 16.7% from the year-ago quarter.
Non-Core & Legacy incurred an operating loss before tax of $250 million in the reported quarter compared with a loss of $4.05 million in the year-ago quarter.
Group Items reported an operating loss before tax of $167 million compared with a loss of $377 million in the year-ago quarter.
UBS' Capital Position
Total assets rose 8.2% from the previous quarter’s end to $1.67 trillion.
UBS’ return on Common Equity Tier 1 (CET1) capital was 13.5% as of June 30, 2025, compared with 5.9% as of June 30, 2024.
The risk-weighted assets declined 1.3% year over year to $504.5 billion.
The CET1 capital declined 4.4% year over year to $72.7 billion. As of June 30, 2025, UBS's invested assets were $6.6 trillion, up 12.6% year over year.
UBS Group’s Capital Distribution Update
In the second quarter of 2025, UBS completed its planned $0.5-billion worth of share repurchases. The company aims to repurchase up to $2 billion of shares in the second half of 2025.
UBS Progresses With Credit Suisse Integration Plan
The company is on track to substantially complete the integration of Credit Suisse by the end of 2026.
UBS has 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 the targeted client accounts.
The company remains on track to complete the Swiss booking center migrations by the end of the first quarter of 2026. Additionally, UBS has made substantial progress on the simplification of its legal entity structure in the United States and Europe in the quarter.
In the second quarter of 2025, UBS realized an additional $0.7 billion in gross cost savings. The company has already achieved 70% of its plan and is well on track to deliver around $13 billion in Group-wide annualized exit rate gross cost savings by the end of 2026.
Our Take on UBS Group
UBS’s inorganic growth efforts will support its top line. The company continues to progress with the integration of Credit Suisse. UBS Group significantly reduced execution risks while its capital position remained robust.
UBS Group AG Price, Consensus and EPS Surprise
UBS Group AG price-consensus-eps-surprise-chart | UBS Group AG Quote
Currently, UBS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Foreign Banks
ICICI Bank Ltd.’s (IBN - Free Report) net income for the first quarter of fiscal 2025 (ended June 30) was INR127.7 billion ($1.5 billion), up 15.5% from the prior-year quarter.
IBN results were driven by increased net interest income, non-interest income, and loan growth. However, higher operating expenses and declines in deposits and provisions were the headwinds.
Deutsche Bank (DB - Free Report) reported second-quarter 2025 earnings attributable to its shareholders of €1.49 billion ($1.75 billion) against the loss attributable to its shareholders of $143 million in the year-ago period.
This Germany-based lender reported a profit before tax of €2.4 billion ($2.8 billion), up from $411 million in the year-ago quarter.
DB’s results were gained from increased revenues and lower expenses. Lower provision for credit losses was another positive.