UBS (UBS) Q3 2026: CET1 Ratio Rises to 14.7% as Buybacks Stay on Plan

UBS (UBS) kept its share buyback on schedule in the third quarter of 2026, lifting its CET1 capital ratio to 14.7% while its estimate of the extra capital Switzerland's new rules would require came down. The bank filed its third-quarter 2026 report on Form 6-K and held its earnings call on October 28, 2026 [1][2]. Of the four questions we followed, the buyback did not slow under the capital debate. Integration savings beat the target, but the cost/income ratio was helped by a one-off gain. US wealth management flows improved while its margin held flat, and wealth management net interest income fell slightly short of guidance [1]. Overall, the quarter strengthens the case for UBS's capital returns, while the earnings improvement needs to be read excluding one-off items.

UBS is one of the world's largest wealth managers. Since acquiring Credit Suisse in 2023 it has run five business divisions: Global Wealth Management, Personal & Corporate Banking in Switzerland, Asset Management, the Investment Bank, and Non-core and Legacy [3]. Global Wealth Management serves high-net-worth private clients and generated USD 25.96bn of revenue in 2025, more than half of the group's USD 49.57bn total [3][4].

UBS CET1 ratio rises to 14.7% as buybacks stay on plan

The group's common equity tier 1 (CET1) ratio was 14.7% at the end of the third quarter, up from 14.4% at the end of the second quarter [1]. CET1 capital rose by only about USD 0.7bn; the higher ratio came mainly from a USD 7.8bn fall in risk-weighted assets, of which USD 4.7bn reflected currency effects [1].

Buybacks ran as planned. UBS repurchased USD 1.807bn of shares in the quarter, bringing year-to-date repurchases to USD 4.8bn alongside USD 2.8bn accrued for dividends [1][2]. Management said it intends to buy back about USD 1.2bn over the next three months, completing the second USD 3bn program before fourth-quarter results [2]. The standalone CET1 ratio of the parent bank, UBS AG, rose to 14.5% [2].

UBS expects the ratio to return to around 14% by year-end. The company attributes the decline to an accrual for the initial portion of intended 2027 buybacks and to releasing excess capital once the integration ends, not to regulatory pressure [1][2]. The pace of buybacks remains subject to results, the roughly 14% ratio target and the Swiss parliamentary process [1].

Swiss foreign-subsidiary rule: a smaller estimate, but a large cumulative bill

The third-quarter report quantified, for the first time, the proposal backed by the Council of States, the upper house of the Swiss Parliament, in September. The proposal would deduct 90% of the carrying value of foreign subsidiaries from CET1. If enacted in that form, UBS AG would need about USD 16bn of additional CET1 capital, plus about USD 2bn from ordinance-level measures [1]. The full-deduction proposal sent to Parliament in April implied about USD 20bn [5].

The cumulative burden remains heavy. If the upper-house version is confirmed, the incremental CET1 since the Credit Suisse acquisition would total about USD 33bn, including about USD 15bn already required under existing rules, with an annual capital-related cost of about USD 2.5bn [1]. The proposal still goes to the National Council, the lower house, and would be phased in from 2028 at the earliest [1]. Management said it will not front-run the rules and will present new medium-term plans in February [2].

Costs, US wealth management and net interest income

Integration savings beat the original target, but the cost/income ratio includes a one-off gain. Cumulative gross cost savings reached USD 13.2bn at the end of September, and UBS raised its year-end expectation from about USD 13.5bn to about USD 13.7bn; around 90% of legacy IT applications have been fully decommissioned [1]. The underlying cost/income ratio was 68.7%, but underlying revenue included a USD 697m gain from settling legacy legal matters; excluding it, the ratio is about 72.5% [1]. Integration expenses were USD 452m in the quarter, above the roughly USD 375m per quarter implied by July guidance [2][6].

US wealth management flows improved sharply. The Americas region gathered USD 16.7bn of net new assets and USD 7.5bn of net new fee-generating assets, the latter negative in the second quarter [1]. Pre-tax profit of USD 530m and a cost/income ratio of 84.3% were broadly flat against USD 534m and 84.1% in the second quarter, and advisor headcount fell from 5,644 to 5,601 [1][7].

Wealth management net interest income was broadly flat. Global Wealth Management net interest income was USD 1,857m versus USD 1,863m in the second quarter, missing the modest increase UBS had guided to in July [1][8]. Management said deposits shifting from current accounts into fixed-term deposits offset gains from margins and lending [2]. Personal & Corporate Banking net interest income rose 1% sequentially in Swiss franc terms, and UBS expects Global Wealth Management net interest income to rise by a low-single-digit percentage in the fourth quarter [1].

Conclusion

The third-quarter results strengthen the view that UBS can sustain its capital returns. The capital ratio and buyback execution met or beat earlier expectations and the estimated rule burden fell, but a cumulative requirement of about USD 33bn will still constrain returns after 2028. Profitability is supported by real cost savings, yet the cost/income ratio is about 72.5% once the one-off gain is excluded. The next tests are the capital ratio after the year-end accrual for 2027 buybacks, the 2027 capital return plan due in February, and the National Council's handling of the 90% proposal. Whether US flows persist and wealth management net interest income resumes growth will shape the growth outlook.

Sources

[1] UBS 6-K filed 2026-10-28 (Q3 2026 report) · management report pp.1-53, 2026-10-28, UBS Group AG, 6-K, https://www.sec.gov/Archives/edgar/data/1114446/000161052026000106/edgar3q26ubsgroup.htm [2] UBS Q3 2026 earnings call 2026-10-28, 2026-10-28, UBS earnings call transcript, https://gateway.drillr.ai/mcp/private [3] UBS 20-F filed 2026-03-09 · business division descriptions, 2026-03-09, UBS Group AG, 20-F, https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001610520&type=20-F&dateb=&owner=include&count=40 [4] UBS 20-F filed 2026-03-09 · segment reporting FY2025, 2026-03-09, UBS Group AG, 20-F, https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001610520&type=20-F&dateb=&owner=include&count=40 [5] UBS 6-K filed 2026-04-22 · foreign participations proposal to Parliament, 2026-04-22, UBS Group AG, 6-K, https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001610520&type=6-K&dateb=&owner=include&count=40 [6] UBS 6-K filed 2026-07-30 (Q2 2026 results call remarks and Q&A) · integration expenses and cost saves, 2026-07-30, UBS Group AG, 6-K, https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001610520&type=6-K&dateb=&owner=include&count=40 [7] UBS 6-K filed 2026-07-29 (Q2 2026 report) · GWM regional breakdown Q2 2026, 2026-07-29, UBS Group AG, 6-K, https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001610520&type=6-K&dateb=&owner=include&count=40 [8] UBS 6-K filed 2026-07-29 (Q2 2026 report) · outlook for Q3 2026, 2026-07-29, UBS Group AG, 6-K, https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001610520&type=6-K&dateb=&owner=include&count=40