IntelScoops

Zurich, July 30, 2025 — Swiss banking giant UBS has reported a second-quarter net profit of $2.4 billion, significantly beating analyst expectations and reflecting a robust performance in its global markets and wealth management businesses.

The results mark more than a doubling of profits compared to the same period last year, driven by a 25% rise in trading revenue and a 12% increase in transaction-based income from its wealth management arm. Despite a downturn in investment banking fees, the division still recorded a 17% increase in pre-tax profit, highlighting UBS’s ability to capitalize on market volatility and shifting client demands.

UBS continues to make progress in integrating Credit Suisse following its acquisition, having already achieved $9.1 billion in cost savings toward its overall $13 billion target. The bank also saw strong client inflows, with wealth management attracting $23 billion in new assets during the quarter, bringing total first-half inflows to nearly $55 billion. Overall, UBS’s invested assets now exceed $6.6 trillion globally.

However, the earnings release was not without controversy. UBS CEO Sergio Ermotti used the occasion to reaffirm the bank’s resistance to proposed changes in Switzerland’s capital requirements. Swiss regulators are considering a framework that would require UBS to hold an additional $24 to $26 billion in Common Equity Tier 1 (CET1) capital, a move Ermotti strongly opposes.

“Shrinking is not an option,” Ermotti stated firmly. “We are committed to remaining headquartered in Switzerland, but we must remain globally competitive. Over-regulation risks undermining our ability to serve clients and return value to shareholders.”

UBS’s CET1 capital ratio currently stands at 14.4%, and the bank maintains that it is already well-capitalized by international standards. Shares of UBS rose modestly following the earnings announcement, reflecting market confidence in the bank’s direction and its continued profitability.

Looking ahead, Ermotti indicated that while trading activity may normalize in the coming quarters, the bank remains well-positioned to navigate economic uncertainty and further expand its market share across core divisions.