UBS posts record Q2 profit, unveils $3 billion buyback

UBS ↘ 0.97% reported a net profit of $2.8 billion for the second quarter of 2026 on Wednesday, beating analyst expectations by a wide margin and announcing plans to repurchase $3 billion in shares by mid-2027, as broad-based growth across its businesses and the ongoing integration of Credit Suisse continue to strengthen the Swiss banking giant's balance sheet.

Earnings Beat and New Buyback Program

The profit figure represented a 17% jump year-over-year and marked a record second quarter for Switzerland's largest bank, surpassing the $2.39 billion average estimate in a company-provided poll of analysts. The results were driven by strong performance in wealth management and a record quarter for UBS's trading division, echoing robust Wall Street bank earnings earlier in July.investing+1

CEO Sergio Ermotti said the results reinforced the bank's ability to invest in growth. "Strong results in the second quarter and healthy capital generation have further fortified our balance sheet for all seasons and allow us to continue deploying financial resources towards profitable growth opportunities," Ermotti said in a statement.investing

UBS announced it plans to buy back $3 billion in shares by mid-2027, with at least $1 billion to be repurchased over the next three months. The new program follows $3 billion in buybacks already completed in July. Analysts had expected UBS to conduct approximately $4.45 billion in total buybacks during 2026. The bank noted that the pace and size of future repurchases will depend on financial performance and the outcome of Swiss banking capital rules currently under debate.bloomberg+1

Credit Suisse Integration and Cost Cuts

The integration of Credit Suisse remains on track for completion by year-end, UBS said. The bank achieved $1.1 billion in additional gross cost savings during the quarter, bringing cumulative savings since the takeover to $12.6 billion. UBS also reduced its workforce by about 2,500 full-time employees, bringing headcount below 100,000 for the first time since it absorbed Credit Suisse in 2023.investing

The cost-income ratio improved to 72.9%, down from 80.5% a year earlier and ahead of the 75.6% analyst consensus. Net new assets in global wealth management reached $36 billion, with a second consecutive quarter of positive inflows in the Americas.investing

Capital Debate and Outlook

UBS reiterated that the Swiss government's push for roughly $20 billion in additional capital requirements remains a source of tension, with lawmakers expected to begin drafting legislation next month that could water down the proposal. For the third quarter, the bank expects market conditions to remain "broadly constructive," though uncertainty persists.investing