It has been about a month since the last earnings report for UBS (UBS). Shares have lost about 10.3% in that time frame, underperforming the S&P 500.<\/p>\n
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is UBS due for a breakout? Well, first let’s take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for UBS Group AG before we dive into how investors and analysts have reacted as of late.<\/p>\n
UBS Group reported a fourth-quarter 2025 net profit attributable to shareholders of $1.19 billion compared with $770 million in the prior-year quarter.<\/p>\n
Results were driven by the strong performances of the Global Wealth Management, Asset Management and Investment Bank divisions. However, the decline in total assets was concerning.<\/p>\n
For 2025, the company reported a net profit attributable to shareholders of $7.77 billion compared with $5.08 billion in the prior-year quarter.<\/p>\n
The company\u2019s fourth-quarter total revenues increased 4.4% year over year to $12.14 billion.<\/p>\n
For 2025, the company\u2019s revenues rose 1.9% year over year to $49.6 billion.<\/p>\n
Operating expenses fell nearly 1% year over year to $10.29 billion.<\/p>\n
UBS Group reported total credit loss expenses of $159 million, which declined 30.6% from the year-ago quarter.<\/p>\n
Global Wealth Management\u2019s operating profit before tax was $1.29 billion, up from $867 million in the year-ago quarter.<\/p>\n
Asset Management\u2019s operating profit before tax was $212 million, up 65.6% from the year-ago quarter.<\/p>\n
Personal & Corporate Banking reported operating profit before tax of $565 million, down 5% year over year.<\/p>\n
The Investment Bank unit reported an operating profit before tax of $640 million, up from $479 million in the year-ago quarter.<\/p>\n
Non-Core & Legacy incurred an operating loss before tax of $455 million in the reported quarter compared with a loss of $923 million in the year-ago quarter.<\/p>\n
Group Items reported an operating loss before tax of $552 million compared with a loss of $100 million in the year-ago quarter.<\/p>\n
Total assets fell nearly 1% from the previous quarter\u2019s end to $1.62 trillion.<\/p>\n
The company\u2019s return on Common Equity Tier 1 capital was 6.6% as of Dec. 31, 2025, compared with 4.2% as of Dec. 31, 2024.<\/p>\n
The risk-weighted assets declined 1% year over year to $493.4 billion.<\/p>\n
The CET1 capital declined marginally year over year to $71.3 billion. As of Dec. 31, 2025, the company’s invested assets were $7 trillion, up 15.1% year over year.<\/p>\n
Management expects the Underlying Return on CET1 2026 exit rate is now expected to be around 15\u201316%, compared with the prior expectation of 15%.<\/p>\n
The underlying cost-to-income ratio 2026 exit rate is expected to be less than 70%.<\/p>\n
Management expects gross cost savings of around $13.5 billion which increased from $13 billion by the end of 2026 compared with the 2022 combined cost base of UBS Group and Credit Suisse.<\/p>\n
CET 1 capital ratio is expected to be around 14% and CET1 leverage ratio of greater than 4% by 2026.<\/p>\n
For the first quarter of 2026, management expects a low single-digit percentage decline in net interest income.<\/p>\n
For full-year 2026, Global Wealth Management NII is projected to increase by low single digits year over year, while Personal & Corporate Banking NII is projected to rise by a mid-single-digit percentage.<\/p>\n
The company expects the Global Wealth Management business to surpass $5 trillion of invested assets by 2028, with net new assets expected to exceed $125 billion in 2026 and more than $200 billion per annum by 2028.<\/p>\n
Personal & Corporate Banking business is anticipated to witness an underlying cost \/ income ratio of less than 50% by the end of 2026. However, ongoing low Swiss franc interest rates could delay reaching this target. Management now targets a reported cost-income ratio of around 48% by 2028, even if rates remain at zero.<\/p>\n
The Asset Management business is expected to register an underlying cost \/ income ratio of less than 70% by the end of 2026 with a reported cost \/ income ratio target of around 65% by 2028.<\/p>\n
The Investment Bank is expected to register an underlying return on attributed equity of around 15% through the cycle, while the Non-core and Legacy business is now expected to have more than 95% of its positions closed by the end of 2026, compared with the prior expectation of reducing NCL risk-weighted assets to approximately $2 billion, with underlying operating expenses of around $1.8 billion and an underlying loss before tax of less than $1 billion.<\/p>\n
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.<\/p>\n
At this time, UBS has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top 20% for value investors.<\/p>\n
Overall, the stock has an aggregate VGM Score of C. If you aren’t focused on one strategy, this score is the one you should be interested in.<\/p>\n
UBS has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.<\/p>\n
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report<\/a><\/p>\n UBS Group AG (UBS) : Free Stock Analysis Report<\/a><\/p>\n This article originally published on Zacks Investment Research (zacks.com).<\/a><\/p>\n