UBS reports net profit of USD 1.2bn in 4Q25 and USD 7.8bn in FY25; increases dividend by 22% YoY; confirms 2026 targets and sets ambitions for 2028 (Ad hoc announcement pursuant to Article 53 of the SIX Exchange Regulation Listing Rules)

Sergio P. Ermotti quote

UBS (NYSE:UBS) (SWX:UBSN):

“The strength of our global, diversified franchise powered our excellent full year performance as we helped clients navigate an unpredictable market environment. 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.

Throughout 2025, we continued to support clients, the Swiss economy and the communities where we live and work, while further investing in talent and capabilities. This includes AI, where we have transformational projects that are designed to bolster our operational resilience, enhance client experience, and unlock higher levels of efficiency and effectiveness across the organization.

As we approach the last mile of the integration, I am confident in our ability to capture the remaining synergies by the end of the year, which we increased by USD 0.5bn to USD 13.5bn.

With Group invested assets exceeding USD 7 trillion for the first time and strong business momentum we are poised to achieve our 2026 exit rate targets and medium-term ambitions.”

Sergio P. Ermotti, Group CEO

Financial performance and investor update highlights

Excellent 4Q25 and FY25 performance with 4Q25 net profit up 56% YoY to USD 1.2bn. Return on CET1 capital (RoCET1) of 6.6% and underlying¹ RoCET1 of 11.9%. Full-year net profit of USD 7.8bn, up 53%, RoCET1 of 10.8% and underlying¹ RoCET1 of 13.7%

Franchise strength demonstrated by client momentum with Group invested assets exceeding the USD 7trn mark for the first time, up 15% YoY. High trading activity across Global Wealth Management and the Investment Bank underpinned by broad-based client engagement

A reliable partner for the Swiss economy; supporting clients with our leading credit offering and unique global capabilities and footprint. Granted or renewed ~CHF 80bn of loans in 2025

Excellent integration progress with ~85% of Swiss-booked accounts successfully transferred onto UBS systems; Personal & Corporate Banking account migration and Asset Management integration substantially completed; increased cumulative cost reductions to USD 10.7bn and continued the wind-down of Non-core and Legacy, reducing its risk-weighted assets to USD 28.8bn

On track to achieve 2026 exit-rate targets as we deliver on final stages of integration by year-end to capture synergies, notably executing on the remainder of the cost-saving program, including an additional USD 0.5bn identified across the Group

Further growth across our integrated franchise as we reinforce collaboration across divisions, regions and functions, applying our One Bank concept to the entire organization and leverage secular growth trends; unlocking new opportunities, including expansion of our offering and capabilities across high-net worth, alternatives, and banking

Set 2028 ambitions with~18% return on CET1 capital² and ~67% cost/income ratio for the Group, driven by further sustainable growth and efficiency gains across our business divisions

Continued investments into our talent, offering, and technology, including delivering AI solutions at scale that drive performance, increase productivity and enable our people – supporting long-term sustainable growth

Balance sheet for all seasons with 14.4% CET1 capital ratio, 4.4% CET1 leverage ratio, and continued execution on our capital return plans, including completion of our USD 3bn share repurchase plan for FY25

Maintaining attractive capital returns with a plan to propose a dividend of USD 1.10 per share at the upcoming AGM, up 22% YoY; plan to accrue for mid-teens percent increase in dividend per share in 2026; intend to repurchase USD 3bn of shares in 2026 with an aim to do more³

4Q25 and FY25 performance

Strong financial performance driven by franchise strength and client momentum

In 4Q25, we reported a profit before tax (PBT) of USD 1,700m and underlying PBT of USD 2,871m, both up 62% YoY. Continued momentum in our core franchises supported revenue growth. Together with disciplined execution of our cost-reduction plans this has led to strong operating leverage of 9 percentage points in the quarter.

Net profit attributable to shareholders was USD 1,199m, up 56% YoY in the quarter. Return on CET1 (RoCET1) capital was 6.6%, or 11.9% on an underlying basis. Diluted earnings per share (EPS) were USD 0.37, up 61% YoY.

Group invested assets rose 15% YoY and exceeded the USD 7trn mark for the first time, driven by market performance, FX moves, and net asset inflows. Global Wealth Management (GWM) net new assets for the year reached USD 101bn, representing a 2.4% annualized growth rate, with strong flows across APAC, EMEA and Switzerland more than offsetting outflows in the Americas. Net new money in Asset Management (AM) reached USD 30.4bn, an annualized growth rate of 1.7%, with net inflows across all asset classes.

Reported revenues in 4Q25 were USD 12,145m, up 4% YoY. On an underlying basis, revenues increased by 10% to USD 12,199m, notably driven by increases in GWM’s recurring net fee income and transaction-based income, Investment Bank’s (IB) Global Markets revenues, and AM’s net management fee income.

GWM’s transaction-based income in 4Q25 increased 20% YoY to USD 1,248m, mainly due to higher levels of client activity, particularly in structured products and cash equities, as we continue to leverage close collaboration between GWM and the IB. Global Markets revenues increased 17% YoY in the quarter to USD 2,196m, with strong performance across every region, lifted by an 8% YoY increase in equities and a 46% YoY rise in foreign exchange, rates, and credit.

We also continued to support businesses and households in Switzerland with our global reach, advice and expertise. Our balance sheet for all seasons also gives our clients the stability they need while allowing us to remain a leading provider of credit to the economy. We have granted or renewed CHF 80bn of loans in 2025.

Meanwhile, reported Group operating expenses decreased by 1% YoY to USD 10,286m. On an underlying basis, operating expenses increased by 1% YoY to USD 9,169m.

In the quarter we have delivered an additional USD 0.7bn in Group-wide gross cost saves. Cumulative gross cost savings reached USD 10.7bn, well ahead of our FY25 guidance of ~USD 10bn, as we continue to decommission legacy technology infrastructure and applications. To date we have retired 1,598 (or 55%) of applications in scope. We have also increased the number of switched off servers to 71,000, and exited three additional data centers in 4Q25 to bring us to a total of 10 exits.

For the full-year 2025, we delivered a reported PBT of USD 8,853m and an underlying PBT of USD 11,729m, up 30% and 33%, respectively. The net profit attributable to shareholders increased by 53% to USD 7,767m with diluted EPS up 55% to USD 2.36. RoCET1 increased to 10.8%, with an underlying RoCET1 of 13.7%, a 5.0 percentage point increase from 2024.

Balance sheet for all seasons

Strong financial performance allowed us to end the quarter with a CET1 capital ratio of 14.4% while accruing USD 4.1bn for future capital returns and repurchasing USD 8.5bn in Credit Suisse legacy debt instruments that were issued at distressed spreads prior to the acquisition. The repurchase has lowered the CET1 capital by USD 457m in the quarter. Both our CET1 capital ratio of 14.4% and CET1 leverage ratio of 4.4% remain comfortably above our guidance of ~14% and >4%, respectively.

Investor update summary

Delivering on integration to capture synergies and achieve our 2026 exit rate targets

In 2025, we have substantially progressed the integration of Credit Suisse. We have successfully migrated ~85% of some 1.1m client accounts booked in Switzerland. We have largely completed the client accounts transfers in Personal & Corporate Banking and Asset Management’s integration. Also, we have further reduced the size and operating expenses of the Non-core and Legacy unit, and significantly advanced the rationalization of our legal entity structure. Additionally, we have delivered on our balance sheet optimization plans and achieved our revenue-over-risk weighted assets (RWA) ambition of around 10%.

We are now focused on migrating the remaining client, fund, and custody accounts in 1Q26 and business clearance activities, enabling material decommissioning of the remaining applications and Credit Suisse legacy IT infrastructure by year-end. This will accelerate our gross cost saves and contribute to achieving a further USD 2.8bn of saves in 2026, including an additional USD 0.5bn that we have identified across the Group.

As we continue to achieve our integration milestones and drive business momentum we remain confident that we can deliver against our 2026-exit rate targets of an underlying 15% return on CET1 capital and underlying cost/income (C/I) ratio of <70%.

Further growth toward ~18% RoCET1 and cost/income ratio of ~67% in 2028

We expect to deliver further sustainable, long-term growth and efficiency gains, as we complete the integration, leverage the benefits of our global scale, interconnected franchises and regional expertise, and take advantage of the structural trends that are shaping our industry.

We are deepening collaboration across divisions, regions and functions, and applying our One Bank concept to the entire organization to deliver the power of our franchise to clients and driving higher levels of efficiency and effectiveness. In addition, we will deploy the balance sheet capacity created over the past years to profitably support our business activities and client releveraging across businesses.

To support our growth plans we are investing in people, offering, capabilities, and technology, including AI. As we embed AI into the core of our firm we are fundamentally rethinking and redesigning end-to-end processes, and increasing AI literacy and usage among all our employees. We have increased the number of live AI cases to over 380, and a further 780 are in development. We are also progressing with implementation of our nine large-scale, transformational AI initiatives.

Our ambition is for the Group to deliver a ~18% reported return on CET1 capital in 2028, subject to the Group maintaining a CET1 capital ratio of~14% and based on the current Swiss capital framework, and to achieve a cost/income ratio of ~67%.

Our capital guidance remains unchanged, and we aim to maintain a CET1 capital ratio of around 14%; and a CET1 leverage ratio of greater than 4.0%.

For the business divisions we have the following ambitions:

• Global Wealth Management: invested assets of >USD 5.5trn, net new assets of >USD 200bn, and reported cost/income ratio of ~68% in 2028,
• Personal & Corporate Banking: ~19% reported return on attributed equity in the medium term and reported cost/income ratio of ~48% in 2028,
• Asset Management: ~3% net new money growth rate, through the cycle and ~65% reported cost/income ratio in 2028,
• Investment Bank: ~15% reported return on attributable equity over the cycle.

Maintaining attractive capital returns

For the 2025 financial year, the Board of Directors plans to propose a dividend to UBS Group AG shareholders of USD 1.10 per share. Subject to approval at the Annual General Meeting, scheduled for 15 April 2026, the dividend will be paid on 23 April 2026 to shareholders of record on 22 April 2026. The ex-dividend date will be 21 April 2026 on the SIX Swiss Exchange and 22 April 2026 on the New York Stock Exchange. We plan to accrue for a mid-teens percent increase in dividend per share in 2026.

In the fourth quarter of 2025, we completed our planned share repurchases of USD 3bn. We intend to repurchase USD 3bn of shares in 2026 with the aim to do more. The amount of additional buybacks is subject to further clarity around the future regulatory regime in Switzerland, our financial performance, and maintaining a CET1 capital ratio of ~14%.

Beyond 2026, we intend to continue to pursue a progressive dividend complemented by share repurchases that will be calibrated based on our financial results, our capital ratio and the final outcome and timing of the implementation of the new regulatory regime in Switzerland.

Outlook

Entering the first quarter of 2026, the macro backdrop is still one of steady global growth and easing inflation. Market conditions remain largely constructive, with broader equity dispersion and rotation supporting client engagement, healthy transactional and capital markets activity, and pipeline. Demand remains focused on diversification across geographies and asset classes, as well as principal protection. However, continued elevated geopolitical and economic policy uncertainties mean sentiment and positioning can shift quickly, leading to spikes in volatility influencing institutional and corporate client activity levels.

In the first quarter, we expect a low single-digit percentage decline in Global Wealth Management’s net interest income (NII), while in Personal & Corporate Banking NII is expected to remain broadly stable in US dollar terms.

We remain on track to complete the integration by the end of the year, and we are confident in our ability to achieve our financial targets. As all of 2026 is required to deliver on the remaining integration milestones, we expect net saves to build progressively with a greater proportion weighted to the second half of the year.

We remain firmly focused on disciplined execution, bringing the full power of UBS to our clients and investing to sustain growth momentum, supporting continued value creation in the years ahead.

Fourth quarter 2025 performance overview

Group PBT USD 1,700m, underlying PBT USD 2,871m

PBT of USD 1,700m included PPA effects and other integration items of USD 20m, including a net loss of USD 457m from the repurchase of legacy Credit Suisse debt instruments, a loss of USD 74m relating to an investment in an associate, and integration-related expenses and PPA effects of USD 1,117m. Underlying PBT was USD 2,871m, including net credit loss expenses of USD 159m. The cost/income ratio was 84.7%, and 75.2% on an underlying basis. Net profit attributable to shareholders was USD 1,199m, with diluted earnings per share of USD 0.37. Return on CET1 capital was 6.6%, and 11.9% on an underlying basis.

Global Wealth Management (GWM) PBT USD 1,290m, underlying PBT USD 1,558m

Total revenues increased by USD 574m, or 9%, to USD 6,695m, driven by higher recurring net fee income, transaction-based income and other revenues, partly offset by lower net interest income, and included a USD 65m decrease in PPA effects and other integration items. Excluding USD 135m of PPA effects and other integration items and a USD 20m loss related to an investment in an associate, underlying total revenues were USD 6,580m, an increase of 11%. Net credit loss expenses were USD 32m, mainly reflecting net expenses on credit-impaired positions, compared with net credit loss releases of USD 14m in the fourth quarter of 2024. Operating expenses increased by USD 105m, or 2%, to USD 5,373m and included a USD 76m decrease in integration-related expenses. Excluding USD 384m of integration-related expenses and PPA effects, underlying operating expenses were USD 4,989m, an increase of 4%, mainly driven by higher variable compensation largely related to an increase in financial advisor compensation, resulting from higher compensable revenues, partly offset by lower expenses related to provisions for litigation, regulatory and similar matters. The cost/income ratio was 80.3%, and 75.8% on an underlying basis. Invested assets increased sequentially by USD 39bn to USD 4,753bn. Net new assets were USD 8.5bn.

Personal & Corporate Banking (P&C) PBT CHF 452m, underlying PBT CHF 543m

Total revenues decreased by CHF 153m, or 8%, to CHF 1,830m, predominantly due to lower net interest income, and included a loss of CHF 43m related to an investment in an associate. Excluding CHF 181m of PPA effects and other integration items and the aforementioned loss, underlying total revenues were CHF 1,692m, a decrease of 7%. Net credit loss expenses were CHF 80m, largely reflecting net expenses on credit-impaired positions, compared with net credit loss expenses of CHF 155m in the fourth quarter of 2024. Operating expenses were broadly stable at CHF 1,297m and included a CHF 46m increase in integration-related expenses. The fourth quarter of 2024 included a CHF 37m expense related to the Swisscard transactions. Excluding CHF 228m of integration-related expenses and PPA effects, underlying operating expenses were broadly stable at CHF 1,069m. The cost/income ratio was 70.9%, and 63.2% on an underlying basis.

Asset Management (AM) PBT USD 212m, underlying PBT USD 268m

Total revenues increased by USD 34m, or 4%, to USD 800m, mainly due to higher net management fees, partly offset by lower performance fees, and included a net loss of USD 29m related to the sale of our O’Connor business to Cantor Fitzgerald. The fourth quarter of 2024 included a net gain of USD 13m on the sale of our shareholding in Credit Suisse Investment Partners. Operating expenses decreased by USD 51m, or 8%, to USD 588m and included a USD 39m decrease in integration-related expenses. Excluding integration-related expenses of USD 57m, underlying operating expenses were USD 531m, a decrease of 2%, mainly due to lower non-personnel costs. The cost/income ratio was 73.4%, and 66.4% on an underlying basis. Invested assets increased sequentially by USD 55bn to USD 2,098bn. Net new money was USD 8bn, and USD 4bn excluding money market flows and associates.

Investment Bank (IB) PBT USD 640m, underlying PBT USD 703m

Total revenues increased by USD 197m, or 7%, to USD 2,946m, mainly due to higher revenues in Global Markets, partly offset by a USD 140m decrease in PPA effects, and included positive foreign currency effects. Excluding USD 61m of PPA effects and other integration items, underlying total revenues were USD 2,885m, an increase of 13%. Net credit loss expenses were USD 34m, mainly reflecting net expenses on credit-impaired positions, compared with net credit loss expenses of USD 63m in the fourth quarter of 2024. Operating expenses increased by USD 65m, or 3%, to USD 2,272m and included a USD 50m decrease in integration-related expenses. Excluding integration-related expenses of USD 124m, underlying operating expenses were USD 2,148m, an increase of 6%, mainly due to adverse foreign currency effects and higher technology costs. The cost/income ratio was 77.1%, and 74.5% on an underlying basis. Return on attributed equity was 13.5%, and 14.9% on an underlying basis.

Non-core and Legacy (NCL) PBT USD (455m), underlying PBT USD (224m)

Total revenues were negative USD 8m, compared with negative total revenues of USD 58m in the fourth quarter of 2024, mainly reflecting lower liquidity and funding costs, partly offset by lower net interest income, as a result of a smaller portfolio, and further offset by higher markdowns. Net credit loss releases were USD 12m, compared with net credit loss expenses of USD 6m in the fourth quarter of 2024. Operating expenses were USD 459m, a decrease of USD 399m, or 46%, mainly reflecting lower legal fees, technology costs, premises and facilities costs, risk management costs, and compliance and regulatory costs, and included an USD 84m decrease in integration-related expenses. Excluding integration-related expenses of USD 233m, underlying operating expenses were USD 226m.

Group Items PBT USD (552m), underlying PBT USD (113m)

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