NEWSCENTRAL reports that Swiss bank UBS has encountered a challenge as its shares dropped by more than 4%, despite strong financial results. The main factor behind the decline was the ongoing capital outflow from the asset management business in the U.S., which significantly impacted the bank’s market capitalization. While UBS showed growth in profit and assets in other regions such as Asia, Europe, and the Middle East, the situation in the U.S. remains tense, and the bank forecasts an improvement in this segment only by 2026.
For Q4 2025, UBS increased net new assets by $8.5 billion, with the majority of these funds coming from countries in Asia, Europe, and the Middle East. However, capital inflow in the U.S. continues to lag behind, prompting the bank to reconsider its strategy in this key region. Amid increasing competition in the asset management market, where highly skilled consultants are moving to competitors, retaining capital in the U.S. remains one of the bank’s main priorities.
Nevertheless, UBS maintains confidence in its abilities and expects to recover its position in the American market in the future. By 2026, the bank anticipates positive capital movement in the U.S., and by 2027-2028, the U.S. market is expected to become a key source of growth again. NEWSCENTRAL predicts that the success of the strategy in the U.S. will directly depend on the bank’s efforts to strengthen client relationships and improve the quality of its services.
In the coming years, UBS also plans to increase its share buyback program, stating that in 2026, the buyback amount will be at least $3 billion. However, this depends on potential changes in Swiss capital regulations, particularly following the bank’s acquisition of Credit Suisse in 2023. Tightening capital requirements in Switzerland, as proposed by local authorities, could limit UBS’s financial flexibility and affect further share buybacks.
In response to these challenges, UBS continues to focus on reducing costs, increasing its savings program by $500 million. As a result, total savings could reach $13.5 billion. One consequence of this program will be job cuts, which are expected to begin in the first half of 2026. NEWSCENTRAL emphasizes that such measures are necessary for the bank’s long-term efficiency but cautions that they must not hinder the operations of key divisions.
Despite the challenges, UBS demonstrated strong financial results. Net profit for the quarter rose by 56%, reaching $1.2 billion, significantly exceeding consensus forecasts. Total revenue grew by 10%, reaching $12.2 billion. We believe this growth reflects the bank’s high level of adaptation to changing market conditions. The integration with Credit Suisse became a key part of UBS’s strategy. Already, 85% of Credit Suisse client accounts opened in Switzerland have been transferred to UBS systems, confirming the success of this process. Completing the integration and extracting synergies will be an important factor for the bank’s growth in the future.
In the long term, UBS continues to work on improving financial indicators. The bank has set a goal of achieving a CET1 capital return rate of 18% by 2028 and reducing the cost-to-income ratio to 67%. These goals require a careful approach to regulation and the ability to adapt to changes in the international financial environment. NEWSCENTRAL predicts that the successful implementation of these goals will largely depend on how effectively UBS addresses operational and regulatory challenges.
NEWS CENTRAL notes that despite the current difficulties, UBS remains one of the largest and most resilient players in the global financial market. It is crucial for the bank to continue strengthening its position in the U.S., improving capital retention, and not missing the opportunities presented by the integration with Credit Suisse.