UBS Group Q4 Earnings & Revenues Increase Y/Y, Expenses Decline

UBS Group AG UBS reported a fourth-quarter 2025 net profit attributable to shareholders of $1.19 billion compared with $770 million in the prior-year quarter.Results were driven by the strong performances of the Global Wealth Management, Asset Management and Investment Bank divisions. However, the decline in total assets was concerning.For 2025, the company reported a net profit attributable to shareholders of $7.77 billion compared with $5.08 billion in the prior-year quarter.UBS' Revenues & ExpensesThe company’s fourth-quarter total revenues increased 4.4% year over year to $12.14 billion.For 2025, the company’s revenues rose 1.9% year over year to $49.6 billion.Operating expenses fell nearly 1% year over year to $10.29 billion.UBS Group reported total credit loss expenses of $159 million, which declined 30.6% from the year-ago quarter.UBS Group Business Divisions’ PerformancesGlobal Wealth Management’s operating profit before tax was $1.29 billion, up from $867 million in the year-ago quarter.Asset Management’s operating profit before tax was $212 million, up 65.6% from the year-ago quarter.Personal & Corporate Banking reported operating profit before tax of $565 million, down 5% year over year.The Investment Bank unit reported an operating profit before tax of $640 million, up from $479 million in the year-ago quarter.Non-Core & Legacy incurred an operating loss before tax of $455 million in the reported quarter compared with a loss of $923 million in the year-ago quarter.Group Items reported an operating loss before tax of $552 million compared with a loss of $100 million in the year-ago quarter.UBS's Capital PositionTotal assets fell nearly 1% from the previous quarter’s end to $1.62 trillion.UBS’s return on Common Equity Tier 1 (CET1) capital was 6.6% as of Dec. 31, 2025, compared with 4.2% as of Dec. 31, 2024.The risk-weighted assets declined 1% year over year to $493.4 billion.The CET1 capital declined marginally year over year to $71.3 billion. As of Dec. 31, 2025, UBS's invested assets were $7 trillion, up 15.1% year over year.UBS Group’s Capital Distribution UpdateFor 2025, the board of directors plans to propose a dividend of $1.10 per share to UBS shareholders. Subject to approval at the Annual General Meeting, scheduled for April 15, 2026, the dividend will be paid out on April 23 to shareholders of record as of April 22.The company remains committed to progressive dividends and plans to accrue for a mid-teens percentage increase in the ordinary dividend per share for 2026.In the fourth quarter of 2025, UBS completed its planned $3 billion worth of share repurchases. The company intends to repurchase $3 billion of shares in 2026, with an aim to do more, subject to clarity around the future regulatory regime in Switzerland.UBS Progresses With Credit Suisse Integration PlanThe company is on track to substantially complete the integration of Credit Suisse by the end of 2026.In the fourth quarter of 2025, UBS continued to advance its Swiss business migrations, with 85% of Swiss-booked client accounts migrated by the end of the quarter, while the migration of Personal & Corporate client accounts was substantially complete. The company remains on track to complete the Swiss booking center migrations by the end of the first quarter of 2026.By the end of the fourth quarter of 2025, UBS had decommissioned around 73% of applications in the Non-core and Legacy division. Meanwhile, the transfer of Credit Suisse International’s residual business and related products to UBS AG London Branch and UBS Europe SE was largely completed.In the fourth quarter of 2025, the company delivered an additional $0.7 billion in gross cost savings. Cumulative gross cost savings totaled $10.7 billion at the end of 2025 compared with the combined 2022 cost base of UBS and Credit Suisse. The company has identified additional synergies, allowing it to raise its ambition for annualized exit rate gross cost savings by the end of 2026 from around $13 billion to approximately $13.5 billion. Management expects cumulative integration-related expenses to be around $15 billion by the end of 2026, assuming constant foreign-exchange rates.As of Dec. 31, 2025, the non-core and legacy business division has delivered a 67% reduction in risk-weighted assets (RWA) since the second quarter of 2023. UBS has achieved its ambition to reduce credit and market risk RWA to around $5 billion, and continues to target a further reduction to approximately $4 billion by the end of 2026.Our Take on UBS GroupUBS’s inorganic growth efforts will support its top line. The company continues to make steady progress with the integration of Credit Suisse. UBS Group significantly reduced execution risks while maintaining a robust capital position.UBS Group AG Price, Consensus and EPS Surprise UBS Group AG price-consensus-eps-surprise-chart | UBS Group AG QuoteCurrently, UBS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performances of Other Foreign BanksICICI Bank Ltd.’s IBN profit after tax for the third-quarter fiscal 2026 (ended Dec. 31) was INR113.2 billion ($1.3 billion), down 4% from the prior-year quarter.Results were hurt by a significant rise in provisions, higher operating expenses and treasury loss. However, rising net interest income and non-interest income, along with solid loan growth, were tailwinds for IBN.Deutsche Bank DB reported fourth-quarter 2025 earnings attributable to its shareholders of €1.29 billion ($1.55 billion), which rose significantly from €106 million ($126.8 million) reported in the prior-year quarter.DB’s increased revenues and lower provisions for credit losses aided results. Notably, the decline in expenses was also encouraging.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deutsche Bank Aktiengesellschaft (DB): Free Stock Analysis Report UBS Group AG (UBS): Free Stock Analysis Report ICICI Bank Limited (IBN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks