Swiss investment group UBS has posted its Q4 earnings on Wednesday, showing robust growth in net income, as per an official press release.
The update comes amid regulatory uncertainty in Switzerland, especially concerning banks. Swiss authorities are considering requirements such as higher capital amounts to safeguard against the possibility of collapse, a real possibility for Credit Suisse before it was taken over by UBS.
Net income for the quarter was fixed at $1.2 billion. Total year revenue was $7.8 billion. The cost-to-income ratio for the company was 84.7%.
The cost-to-income ratio is a common metric used in banking that compares operating expenses against operating income to determine how efficiently a company is making its profits. Lower cost-to-income ratios are typically viewed as better, as it shows expenses are being deployed effectively to earn more income.
UBS has set fiscal guidance for this metric, intending to achieve a cost-to-income ratio of 67% by 2028.
“The strength of our global, diversified franchise powered our excellent full year performance as we helped clients navigate an unpredictable market environment,” said Group CEO Sergio. P Ermotti.
“We made great progress on one of the most complex integrations in banking history while facing ongoing regulatory uncertainty in Switzerland. We maintained a strong capital position and delivered on our capital return commitments in the year, with an increased dividend complemented by share repurchases,” he also said.
UBS bought back $3 billion worth of shares across 2025 and said it will be repurchasing another $3 billion in 2026.
As per the earnings report, UBS is yet to fully integrate Credit Suisse, which it had acquired for $3.25 billion.
At the time of writing, UBS shares were trading at 34.72 Swiss francs, down by 6.42%.