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UBS Group Q3 Earnings & Revenues Increase Y/Y, Expenses Decline

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Key Takeaways

  • UBS reported Q3 net profit of $2.48B, up y/y from $1.43B, as revenues rose 3.5%.
  • Operating expenses fell 4.4%, with the Investment Bank division profit more than doubling.
  • Credit Suisse integration neared two-thirds completion, delivering $10B in cumulative cost savings.

UBS Group AG (UBS - Free Report) reported a third-quarter 2025 net profit attributable to shareholders of $2.48 billion compared with $1.43 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 decline in total assets was concerning.

UBS' Revenues & Expenses

The company’s third-quarter total revenues increased 3.5% year over year to $12.76 billion.

Operating expenses fell 4.4% year over year to $9.83 billion.

UBS Group reported total credit loss expenses of $102 million, which declined 15.7% from the year-ago quarter.

UBS Group Business Divisions’ Performances

Global Wealth Management’s operating profit before tax was $1.35 billion, up from $1.09 million in the year-ago quarter.

Asset Management’s operating profit before tax was $218 million, up 44.4% from the year-ago quarter.

Personal & Corporate Banking reported operating profit before tax of $631 million, down 25.4% year over year.

The Investment Bank unit reported an operating profit before tax of $900 million, up from $405 million in the year-ago quarter.

Non-Core & Legacy incurred an operating loss before tax of $102 million in the reported quarter compared with a loss of $603 million in the year-ago quarter.

Group Items reported an operating loss before tax of $173 million against a profit of $45 million in the year-ago quarter.

UBS's Capital Position

Total assets fell 2.3% from the previous quarter’s end to $1.63 trillion.

UBS’s return on Common Equity Tier 1 (CET1) capital was 13.5% as of Sept. 30, 2025, compared with 7.6% as of Sept. 30, 2024.

The risk-weighted assets declined 2.7% year over year to $504.9 billion.

The CET1 capital rose marginally year over year to $74.7 billion. As of Sept. 30, 2025, UBS's invested assets were $6.9 trillion, up 11.5% year over year.

UBS Group’s Capital Distribution Update

In the third quarter of 2025, UBS repurchased $1.1 billion worth of shares under its 2025 share repurchase program.

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. 

In the third quarter of 2025, and over the course of October 2025, UBS successfully advanced its Swiss business migrations, having now migrated more than two-thirds of the targeted client accounts. The company aims to complete the Swiss booking center migrations by the end of the first quarter of 2026. 

UBS has largely completed the integration of the Asset Management business, including the final portfolio migrations onto UBS platforms. In the third quarter of 2025, the company achieved an additional $0.9 billion in gross cost savings. Cumulative gross cost savings by the end of the third quarter of 2025 totaled $10 billion compared with the combined 2022 cost base of UBS and Credit Suisse. This accounts for approximately 77% of the company’s goal to deliver $13 billion in annualized exit rate gross cost savings by the end of 2026. 

As of Sept. 30, 2025, the non-core and legacy business division has delivered a 64% reduction in risk-weighted assets (RWA) since the second quarter of 2023. UBS has already achieved its 2025 ambition to reduce credit and market risk RWA to below $8 billion, and is well-positioned to meet its target of $4 billion 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 maintaining a robust capital position.

UBS Group AG Price, Consensus and EPS Surprise

 

Currently, UBS carries a Zacks Rank #2 (Buy). 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) profit after tax for the second-quarter fiscal 2026 (ended Sept. 30, 2025) was INR123.6 billion ($1.42 billion), up 5.2% from the prior-year quarter.

IBN’s results benefited from growth in net interest income and non-interest income, along with lower provisions. The loan balance increased sequentially, which was another tailwind. However, an increase in expenses acted as an undermining factor. 

Barclays (BCS - Free Report) reported third-quarter 2025 net income attributable to ordinary equity holders of £1.46 billion ($1.97 billion), down 6.8% from the prior-year quarter.

BCS’s results were hurt by an increase in expenses and higher credit impairment charges. However, an increase in revenues and a solid balance sheet supported the results for Barclays.


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