Strong Financial Performance and Cost Discipline

UBS delivered a robust third-quarter performance, with profit before tax rising to $2.8 billion, up nearly half from the same period a year earlier. The improvement reflected a combination of revenue growth, lower expenses, and continued strength across its global business segments.

The bank’s underlying profit before tax reached $3.6 billion, with a return on common equity tier 1 (RoCET1) of 13.5% on a reported basis and 16.3% on an underlying basis. Revenues advanced modestly, driven by higher client activity and stable asset inflows, while cost-cutting initiatives continued to yield measurable results. UBS reported gross cost savings of nearly $0.9 billion in the quarter, bringing total savings to about $10 billion, which represents roughly 77% of its $13 billion target by 2026.

Business Momentum Across Divisions

The bank’s performance was underpinned by solid results in its core operations. Combined underlying profit before tax across Global Wealth Management, Asset Management, Personal and Corporate Banking, and the Investment Bank rose 28% year-on-year, or 19% excluding legal and restructuring items.

Global Wealth Management recorded $38 billion in net new assets during the quarter, bringing year-to-date inflows to $92 billion. Asset Management added another $18 billion, pushing total invested assets above $2 trillion. UBS’s capital markets business also posted impressive results, with revenues rising 52% in Global Banking and 14% in Global Markets, marking its strongest third quarter on record.

The integration of Credit Suisse continued to progress ahead of schedule, with more than two-thirds of Swiss-booked client accounts successfully migrated. The non-core and legacy portfolio was further reduced, with risk-weighted assets falling by $1.9 billion to $30.7 billion.

Challenges and Market Outlook

Despite strong quarterly results, UBS acknowledged a challenging macroeconomic environment. The continued strength of the Swiss franc, regulatory developments, and uncertain global growth could affect profitability in upcoming quarters. The bank also highlighted that lower interest margins in its wealth management division could put mild pressure on revenue growth if market conditions remain subdued.

Management emphasized that maintaining cost discipline, advancing the Credit Suisse integration, and executing on capital-return commitments will remain strategic priorities. UBS continues to focus on efficiency gains, improved digital capabilities, and expanded client coverage in high-growth markets.

What to Watch Ahead

Analysts and investors will be closely watching UBS’s progress toward its 2026 cost-savings targets and its ability to sustain inflows in the wealth and asset management divisions. The bank’s next key milestones include updates on capital distribution, regulatory ratios, and additional synergies from the Credit Suisse merger.

For international markets, UBS’s strong performance serves as an indicator of renewed momentum among global universal banks. Its ability to grow profits while reducing costs reinforces confidence in large-scale financial institutions navigating tighter monetary conditions and evolving global regulations.