UBS gets third quarter profit jump; notes uncertainties in Swiss outlook

UBS Group AG on Wednesday announced a solid profit climb for the third quarter, but noted that US tariffs on Switzerland were "clouding the outlook for the Swiss economy".

The Zurich-based bank said operating pretax profit rose 47% to USD2.83 billion in the third quarter of 2025 from USD1.93 billion a year before.

Net profit jumped 74% to USD2.49 billion from USD1.43 billion.

Revenue climbed 3.5% to USD12.76 billion from USD12.33 billion. Return on equity was 11.1% in the third quarter of 2025, compared to 6.7% a year prior.

Net interest income rose 10% to USD1.98 billion from USD1.79 billion.

Operating costs decreased 4.4% to USD9.83 billion from USD10.28 billion.

UBS had a common equity tier 1 capital ratio of 14.8% as at September 30, higher than 14.3% a year ago.

The company said it completed USD1.1 billion in share buybacks in the third quarter and up to USD900 million are planned for the fourth quarter, with UBS set to reach USD3 billion in such returns in total for 2025.

Chief Executive Officer Sergio Ermotti said: "As a key pillar of our strategy, our balance sheet for all seasons remains strong, allowing us to invest in talent, technology, and capabilities as we continue to make further progress on integration, positioning us for long-term growth and value creation."

Looking ahead, UBS said: "With valuations elevated across most asset classes entering the fourth quarter, investors remain engaged but increasingly focused on hedging downside risks, which is also evident in periodic headline-driven spikes in volatility. Against this backdrop, transactional activity and our deal pipelines remain healthy, though sentiment can shift quickly as confidence in the outlook is tested and seasonal effects come into play. Furthermore, macro uncertainties along with a strong Swiss franc and higher US tariffs are clouding the outlook for the Swiss economy, and a prolonged US government shutdown may delay capital market activities."