UBS posted a net profit of $3 billion for the first quarter of 2026, an 80% jump from the same period last year and ahead of the $2.8 billion analysts had expected. Shares in the Zurich-based bank surged more than 5% in early trading Wednesday after the results landed.
CEO Sergio Ermotti called it a "very strong quarter." Speaking with CNBC's Squawk Box Europe, he pointed to strong performances in equity capital markets and growth in the bank's alternative assets unit. "We saw all our business delivering double-digit growth in profitability," Ermotti said.
Underlying profits before tax came in at $3.9 billion, up 54% year-on-year and well above the analyst consensus of $3.2 billion. The bank's common equity tier 1 capital ratio, a key measure of financial strength, rose to 14.7% from 14.4% the prior quarter.
The global wealth management division pulled in $37 billion in net new assets by the end of the quarter, a 3.1% annualized increase. The asset management unit added more than $14 billion in net new money, up 2.7% year-on-year. Ermotti described momentum as broad-based across the firm.
UBS said it remains on track to complete $3 billion in share repurchases before its second-quarter earnings report, having already bought back $900 million during the quarter. The bank also flagged additional buybacks planned before year-end.
On the outlook, UBS was more cautious. The bank warned that second-quarter net interest income across its global wealth management and personal and corporate banking businesses is expected to be "broadly flat." Ermotti acknowledged that risks remain "elevated" given the ongoing U.S.-Iran conflict, though he noted that "markets are implying a solution will be found."
One area Ermotti dismissed concern about was private credit. He said UBS sees "no major dislocation or issues" in the space, describing its exposure as "well diversified" and "good quality," amounting to roughly 0.5% of the bank's balance sheet. He acknowledged that a handful of funds are under stress but characterized the situation as primarily a liquidity issue rather than a sign of underlying performance problems.
A regulatory cloud hangs over the bank's longer-term capital picture. Switzerland's government has proposed reforms designed to prevent another Credit Suisse-style collapse, which would require UBS to hold approximately $20 billion in additional capital. The rules would treat investments held by foreign subsidiaries separately from the bank's overall group-wide capital ratio. UBS has continued to push back against the overhaul, and the proposal remains a live point of friction between the bank and Swiss authorities heading into the second half of the year.
