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Here's What Makes UBS Stock a Solid Investment Option Now
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Key Takeaways
UBS's Credit Suisse merger drives global expansion and enhances wealth management capabilities.
Strategic alliances and portfolio optimization support sustainable earnings and shareholder value.
Steady NII growth and disciplined cost management strengthen UBS's financial stability.
UBS Group AG (UBS - Free Report) is progressing with its strategic initiatives while maintaining solid fundamentals. Backed by strong wealth management growth, robust capital strength, and integration synergies from Credit Suisse, the company remains well-positioned for long-term performance despite near-term expense pressures.
Analysts remain optimistic regarding UBS’s earnings growth prospects. The Zacks Consensus Estimate for UBS’s 2025 and 2026 earnings has been revised upward over the past month.
Estimates Revision Trend
Image Source: Zacks Investment Research
Here’s What Makes UBS Stock Worth Betting On
Credit Suisse Integration Fuels Growth: Over the years, UBS Group has strengthened its global footprint through strategic buyouts, partnerships, and business optimization plans, which have supported its financials. A key milestone was the regulatory-assisted acquisition of Credit Suisse in June 2023, which expanded UBS’s wealth and asset management capabilities and reinforced its focus on capital-light businesses.
The integration has progressed steadily, with UBS AG completing the legal merger with Credit Suisse AG in May 2024 and UBS Switzerland AG merging with Credit Suisse (Schweiz) AG in July 2024. By the first quarter of 2025, UBS had already consolidated 95 branches in Switzerland and migrated more than 90% of client accounts outside Switzerland onto UBS platforms.
In the second quarter of 2025, the first major wave of Swiss business migrations resulted in the transfer of approximately one-third of the targeted client accounts. The bank also advanced legal entity simplification in the United States and Europe, and received July 2025 approval from the High Court of England and Wales to transfer Credit Suisse International’s residual business to UBS London and UBS Europe SE. The group remains on track to complete all Swiss booking center migrations by the end of the first quarter of 2026.
Strategic Partnerships to Drive Expansion: Alongside Credit Suisse integration, UBS has been pursuing strategic partnerships to enhance scale, such as its April 2025 alliance with 360 ONE WAM Ltd, a leading Indian wealth and asset manager. Under the arrangement, UBS agreed to purchase warrants for a 4.95% stake in 360 ONE and sell its onshore Indian wealth business while continuing to serve Singapore-based clients directly. These combined efforts underline UBS’s balanced strategy of leveraging acquisitions and partnerships to drive sustainable global growth.
Cost Synergies and Portfolio Optimization: UBS is successfully integrating Credit Suisse and is on track for significant cost cuts. The company is reducing its Non-Core and Legacy portfolio and expects to free up over $6 billion in capital by the end of 2026. The company has already decreased risk-weighted assets by 62% by the second quarter, ahead of schedule. UBS aims to lower Non-Core and Legacy risk-weighted assets to below $8 billion by 2025 and around $1.6 billion by 2026. The company is also targeting $13 billion in total cost reductions by 2026, having already achieved $9.1 billion in savings since 2022. Meanwhile, the strategic partnerships, including wealth management with Japan’s Sumitomo Mitsui Trust Holdings, are also supporting its financials as UBS seeks to create shareholder value.
Sustainable Net Interest Income (NII) Growth: UBS Group has consistently strengthened its revenues through steady growth in NII. Over the past four years ending 2024, NII recorded a healthy compound annual growth rate (CAGR) of 4.9%. The momentum has continued in the first half of 2025, supported by repricing initiatives, disciplined deposit cost management, and a gradual improvement in loan demand. These drivers are expected to sustain NII growth in the coming quarters, providing a solid foundation for top-line expansion and earnings stability.
UBS’s Zacks Rank and Price Performance
Over the past year, UBS shares have gained 36.5% compared with the industry’s growth of 35.1%.
Price Performance
Image Source: Zacks Investment Research
The company currently flaunts a Zacks Rank #1 (Strong Buy).
HSBC’s earnings estimates for 2025 have been revised upward to $7.02 per share over the past month. Its share price has increased 48.5% over the past year.
Shinhan’s earnings estimates for 2025 have remained unchanged at $7.52 per share over the past month. SHG's share price has increased 10.3% during the same period.
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Here's What Makes UBS Stock a Solid Investment Option Now
Key Takeaways
UBS Group AG (UBS - Free Report) is progressing with its strategic initiatives while maintaining solid fundamentals. Backed by strong wealth management growth, robust capital strength, and integration synergies from Credit Suisse, the company remains well-positioned for long-term performance despite near-term expense pressures.
Analysts remain optimistic regarding UBS’s earnings growth prospects. The Zacks Consensus Estimate for UBS’s 2025 and 2026 earnings has been revised upward over the past month.
Estimates Revision Trend
Image Source: Zacks Investment Research
Here’s What Makes UBS Stock Worth Betting On
Credit Suisse Integration Fuels Growth: Over the years, UBS Group has strengthened its global footprint through strategic buyouts, partnerships, and business optimization plans, which have supported its financials. A key milestone was the regulatory-assisted acquisition of Credit Suisse in June 2023, which expanded UBS’s wealth and asset management capabilities and reinforced its focus on capital-light businesses.
The integration has progressed steadily, with UBS AG completing the legal merger with Credit Suisse AG in May 2024 and UBS Switzerland AG merging with Credit Suisse (Schweiz) AG in July 2024. By the first quarter of 2025, UBS had already consolidated 95 branches in Switzerland and migrated more than 90% of client accounts outside Switzerland onto UBS platforms.
In the second quarter of 2025, the first major wave of Swiss business migrations resulted in the transfer of approximately one-third of the targeted client accounts. The bank also advanced legal entity simplification in the United States and Europe, and received July 2025 approval from the High Court of England and Wales to transfer Credit Suisse International’s residual business to UBS London and UBS Europe SE. The group remains on track to complete all Swiss booking center migrations by the end of the first quarter of 2026.
Strategic Partnerships to Drive Expansion: Alongside Credit Suisse integration, UBS has been pursuing strategic partnerships to enhance scale, such as its April 2025 alliance with 360 ONE WAM Ltd, a leading Indian wealth and asset manager. Under the arrangement, UBS agreed to purchase warrants for a 4.95% stake in 360 ONE and sell its onshore Indian wealth business while continuing to serve Singapore-based clients directly. These combined efforts underline UBS’s balanced strategy of leveraging acquisitions and partnerships to drive sustainable global growth.
Cost Synergies and Portfolio Optimization: UBS is successfully integrating Credit Suisse and is on track for significant cost cuts. The company is reducing its Non-Core and Legacy portfolio and expects to free up over $6 billion in capital by the end of 2026. The company has already decreased risk-weighted assets by 62% by the second quarter, ahead of schedule. UBS aims to lower Non-Core and Legacy risk-weighted assets to below $8 billion by 2025 and around $1.6 billion by 2026. The company is also targeting $13 billion in total cost reductions by 2026, having already achieved $9.1 billion in savings since 2022. Meanwhile, the strategic partnerships, including wealth management with Japan’s Sumitomo Mitsui Trust Holdings, are also supporting its financials as UBS seeks to create shareholder value.
Sustainable Net Interest Income (NII) Growth: UBS Group has consistently strengthened its revenues through steady growth in NII. Over the past four years ending 2024, NII recorded a healthy compound annual growth rate (CAGR) of 4.9%. The momentum has continued in the first half of 2025, supported by repricing initiatives, disciplined deposit cost management, and a gradual improvement in loan demand. These drivers are expected to sustain NII growth in the coming quarters, providing a solid foundation for top-line expansion and earnings stability.
UBS’s Zacks Rank and Price Performance
Over the past year, UBS shares have gained 36.5% compared with the industry’s growth of 35.1%.
Price Performance
Image Source: Zacks Investment Research
The company currently flaunts a Zacks Rank #1 (Strong Buy).
Other Stocks to Consider
Some other top-ranked stocks in the same space are HSBC Holdings plc (HSBC - Free Report) and Shinhan Financial Group Co (SHG - Free Report) , each sporting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
HSBC’s earnings estimates for 2025 have been revised upward to $7.02 per share over the past month. Its share price has increased 48.5% over the past year.
Shinhan’s earnings estimates for 2025 have remained unchanged at $7.52 per share over the past month. SHG's share price has increased 10.3% during the same period.