UBS CEO Provides Early Insight into Q3 Results: Wealth Management Momentum Persists, Yet Growth Pace Expected to Trail Prior Year

Stock News
Sep 22

UBS Group AG (UBS.US) Chief Executive Sergio Ermotti stated on Tuesday that the bank's third-quarter results are poised for a year-on-year uptick, though the pace of expansion is anticipated to lag the corresponding period in 2025. "We are observing robust momentum in the wealth management segment, and trading operations are also performing admirably," Ermotti remarked during a financial conference hosted by Bank of America. "While we clearly anticipate a year-on-year improvement in these figures, it is quite likely that we won't match last year's levels, owing to persistent seasonal factors." UBS is scheduled to unveil its third-quarter earnings on October 28.

Ermotti cautioned that the global banking industry's fee pool is likely to contract compared with the prior-year period, as the third quarter of 2025 proved exceptionally strong. As the world's largest wealth manager outside the United States, UBS is concurrently striving to broaden its operational footprint across the Americas. Ermotti emphasized that the velocity of wealth creation in the U.S. stands as a pivotal determinant for the firm's trajectory.

Ermotti noted that the attrition rate among UBS's wealth advisers in the United States has decelerated to near industry norms, following a period of elevated turnover triggered by a revamp of its compensation structure. In a separate matter, Ermotti contended that the proposal requiring UBS to back its foreign subsidiaries with 90% of its Common Equity Tier 1 (CET1) capital, rather than the full 100%, does not constitute a genuine compromise, and he urged Switzerland to adopt a more lenient approach. The upper house of the Swiss parliament is slated to vote on Wednesday on fresh capital regulations devised for UBS in the aftermath of Credit Suisse's collapse in 2023. The government is seeking to mandate that UBS support its overseas subsidiaries with 100% CET1 capital, a stipulation the bank deems excessively stringent. In response to these developments, UBS shares dipped approximately 3% in pre-market trading on Tuesday.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10