UBS reports 53% profit surge to $7.8B in 2025 while accelerating post-Credit Suisse layoffs. Workforce cuts set to be largest in Swiss finance history.
The 2025 annual report from UBS has quantified the substantial cost of absorbing Credit Suisse, revealing a significant acceleration in workforce restructuring. Last year alone, the bank made 7,538 severance payments, marking an increase of approximately one-third compared to 2024. The process is now approaching a critical operational milestone set for the end of March, which will initiate the next chapter for the combined entity.
Robust Financial Performance Amid Restructuring
Despite the backdrop of integration, UBS delivered a powerful financial performance for 2025. The bank reported a net profit of $7.8 billion, representing a 53 percent increase year-over-year. Assets under management surpassed the $7 trillion mark, while cumulative gross cost savings reached $10.7 billion. Reflecting this strength, the board has proposed a dividend of $1.10 per share, a 22 percent rise from the prior year.
The scale of the ongoing personnel reduction, however, appears more intense than previously indicated. Internally, lists are already circulating naming staff affected by the next round of layoffs. This wave coincides with the scheduled decommissioning of legacy Credit Suisse IT systems at the end of March. In Switzerland, UBS anticipates cutting around 3,000 more positions once client migration is finalized; currently, about 85 percent of Swiss accounts have been transferred.
A subsequent phase of job cuts is projected for later in 2026, when UBS permanently shuts down the inherited computer platforms. This restructuring is on track to become the largest workforce reduction in the history of Swiss finance.
Governance Evolution and Regulatory Headwinds
Concurrent with the integration pressure, the bank’s board of directors is undergoing renewal. For the Annual General Meeting on April 15, 2026, Agustín Carstens, former General Manager of the Bank for International Settlements, and Luca Maestri, the long-serving CFO of Apple, have been nominated as new members. Lukas Gähwiler, who played a key oversight role in the integration as the last Chairman of Credit Suisse, will retire after 45 years.
Should investors sell immediately? Or is it worth buying UBS?
Adding to the challenges is regulatory uncertainty. The Swiss government has proposed new capital requirements that could cost UBS up to an additional $26 billion. While initial signals of a potential compromise have emerged, the lingering uncertainty has weighed on the share price. Since the start of the year, UBS shares have declined by roughly 16 percent, trading at €33.67, well below their January peak.
The upcoming quarterly results at the end of April will be a crucial indicator. They will show whether UBS is concluding the integration phase according to schedule and if it can achieve its targeted Common Equity Tier 1 (CET1) ratio of approximately 15 percent, intended as an exit rate for 2026.
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