UBS Reports Significant Profit Increase to $3 Billion, Signals Potential Expansion of Share Repurchase Program.

UBS Reports Strong Profit, Eyes Increased Share Buybacks Amid Ongoing Regulatory Tension

UBS Group AG has confirmed its intention to increase the $3 billion tally of share buybacks this year, following a quarter in which profit surged to $3.04 billion. The result exceeded estimates and was driven by another strong performance at the investment bank, which increased revenue by almost 30% in the three months to March.

As Switzerland's largest bank, UBS is giving cautious signals of increased payouts to investors amid the ongoing tension in its home market over regulation. A draft law unveiled by the government this month would see the bank's capital requirements increase by around $20 billion, with the bank lobbying hard against the changes as the matter moves into parliamentary debate.

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The legislation, which seeks to address a weakness that emerged in the Credit Suisse crisis, would force UBS to fully deduct the capital in its foreign subsidiaries from that of the parent bank. Executives have labeled the package as "extreme" and warned it could inflict far-reaching damage on the Swiss economy.

In its outlook, UBS said that client activity "remains healthy" for now, reflecting expectations that a solution to the Middle East conflict will be reached. The bank said it expects second-quarter net interest income in wealth management and personal banking to be "broadly flat sequentially." The key global wealth management unit saw total revenues increase by 11%, and net new assets rise from a year earlier to $37.4 billion.

The bank had previously announced a $3 billion share buyback program for 2026, which it had said could be adjusted upward depending on performance. UBS said it had repurchased $0.9 billion in shares in the quarter, was on track to meet the $3 billion target in the third quarter, "with an aim to do more by year end."