Business Context and Reporting Period
This Form 6-K summarizes the First Quarter 2026 Report of UBS Group AG, covering the period ended March 31, 2026. UBS is a Swiss systemically relevant bank (SRB) and global financial services firm. The reporting period marks a significant milestone in the integration of Credit Suisse, with the completion of the global migration of former Credit Suisse client accounts to UBS infrastructure in March 2026. Starting in Q1 2026, UBS changed its interim reporting format, publishing financial information consistent with IFRS but not constituting a full IAS 34 interim financial report for Q1 and Q3.
Key Financial Metrics
| Metric (USD) | Q1 2026 | Q4 2025 | Q1 2025 |
|---|---|---|---|
| Total Revenues | 14,243 m | 12,145 m | 12,557 m |
| Operating Profit Before Tax | 3,841 m | 1,700 m | 2,132 m |
| Net Profit Attributable to Shareholders | 3,040 m | 1,199 m | 1,692 m |
| Diluted Earnings Per Share (USD) | 0.94 | 0.37 | 0.51 |
| Return on Equity (%) | 13.3% | 5.3% | 7.9% |
| Return on CET1 Capital (%) | 16.8% | 6.6% | 9.6% |
| Cost/Income Ratio (%) | 72.5% | 84.7% | 82.2% |
| Common Equity Tier 1 (CET1) Ratio (%) | 14.7% | 14.4% | 14.3% |
| Liquidity Coverage Ratio (%) | 177.8% | 182.6% | 181.0% |
| Net Stable Funding Ratio (%) | 116.9% | 116.1% | 124.2% |
| Total Assets (USD bn) | 1,686.5 | 1,617.4 | 1,543.4 |
Material Changes vs. Prior Period
- Profitability Surge: Net profit attributable to shareholders increased by 80% year-over-year (YoY) to USD 3.04 billion, driven by a 13% increase in total revenues and lower credit loss expenses.
- Revenue Drivers: Total revenues rose by USD 1.69 billion YoY. Key contributors included a USD 951 million increase in net fee and commission income (driven by higher fee-generating assets and trading volumes) and a USD 702 million increase in net interest income and fair value income.
- Expense Management: Operating expenses remained broadly stable YoY at USD 10.33 billion. A USD 552 million increase in personnel expenses (due to performance awards) was offset by decreases in general and administrative expenses and depreciation.
- Integration Progress: Cumulative gross cost savings from the Credit Suisse integration reached USD 11.5 billion. The Non-core and Legacy division achieved a 67% reduction in risk-weighted assets (RWA) since Q2 2023.
- Capital Position: CET1 capital increased by USD 2.1 billion to USD 73.3 billion, raising the CET1 ratio to 14.7%. Risk-weighted assets increased by USD 7.0 billion to USD 500.4 billion.
Guidance, Outlook, and Risks
- Outlook: Management expects Q2 net interest income in Global Wealth Management and Personal & Corporate Banking to be broadly flat sequentially. The firm remains confident in delivering on 2026 financial targets despite elevated geopolitical risks.
- Capital Returns: A dividend of USD 1.10 per share was approved and paid in April 2026. UBS repurchased USD 0.9 billion of shares in Q1 and aims to repurchase USD 3 billion by the end of July 2026, with potential for additional repurchases by year-end subject to capital ratios and regulatory clarity.
- Regulatory Risks (Switzerland): Proposed amendments to the Swiss Banking Act could require UBS AG standalone to hold an additional USD 20 billion in CET1 capital due to the full deduction of investments in foreign subsidiaries. Combined with other regulatory changes, total incremental CET1 capital requirements could reach approximately USD 22 billion at the standalone level.
- Legal and Contingencies: UBS estimates future losses from litigation and regulatory matters (not covered by existing provisions) to be in the range of USD 0 billion to USD 1.5 billion. Significant ongoing matters include legacy Credit Suisse litigation (Madoff, mortgage-related, anti-money laundering) and benchmark rate manipulation cases.
- Geopolitical Risks: Conflicts in the Middle East and trade tensions continue to create uncertainty. Direct exposure to Israel is less than USD 0.5 billion, and exposure to Russia is less than USD 0.5 billion.
Key Facts for Investor Verification
- Integration Milestone: Verify the completion of the global Credit Suisse client account migration and the trajectory of the remaining USD 2.0 billion in targeted annualized gross cost savings by end-2026.
- Regulatory Capital Impact: Monitor the Swiss Parliament's deliberation on the Banking Act amendments regarding foreign subsidiary deductions, which could necessitate a significant capital raise or reduced capital returns.
- Share Repurchase Execution: Track the execution of the USD 3 billion share repurchase program and the firm's ability to maintain a CET1 ratio of around 14% while returning capital.
- Non-Core Legacy Reduction: Confirm the continued reduction of Non-core and Legacy RWA, which has already reached the year-end 2026 ambition of USD 4 billion for credit and market risk RWA.
- Litigation Provisions: Review the range of estimated future losses (USD 0–1.5 billion) for litigation and regulatory matters, particularly those inherited from Credit Suisse.