VALUATION HIGHLIGHTS

1. Wealth Management constitutes 52% of the Trefis price estimate for UBS's stock.
2. Personal & Corporate Banking constitutes 21% of the Trefis price estimate for UBS's stock.
3. Equity Trading constitutes 10% of the Trefis price estimate for UBS's stock.

WHAT HAS CHANGED?

Latest Earnings: Q1 Fiscal Year 2026

UBS reported Q1 2026 revenues of $13.2 billion, up 8% year-over-year, driven by strong net new asset inflows in Global Wealth Management and higher fee income. Diluted EPS rose 12% to $0.84, beating consensus estimates due to accelerated cost synergies from the Credit Suisse integration and lower-than-expected operating expenses.

Note: UBS's FY'25 ended on December 31, 2025. Q1 FY'26 ended on March 31, 2026.

Credit Suisse Integration Reaches Final Stages

UBS announced it has completed the migration of core client platforms ahead of schedule, entering the final phase of its multi-year Credit Suisse integration. This milestone allows the bank to unlock an additional $1.5 billion in annualized cost savings, shifting focus entirely toward asset retention and capital return programs.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are key drivers of UBS's value that present opportunities for upside or downside to the current Trefis price estimate:

Global Wealth Management

• Net New Asset Growth: Annualized net new assets grew by 5% in Q1 2026, tracking ahead of the Trefis estimate of 4%. If UBS sustains this momentum via Americas expansion, it offers a 6% upside to our price estimate, while asset attrition in emerging markets poses a 4% downside scenario.
• Net Interest Margin: Net interest margin compressed slightly to 1.15% due to shifting central bank interest rates. This matches current Trefis expectations, though further rate cuts could lead to a 3% downside risk to net interest income.

For additional details, select a division from the interactive Trefis split for UBS at the top of the page.

BUSINESS SUMMARY

UBS is a leading global wealth manager and the largest universal bank in Switzerland, providing comprehensive financial services across asset management, investment banking, and retail banking markets.

SOURCES OF VALUE

Global Wealth Management remains the primary engine of value for UBS, contributing over 55% of the firm's total pre-tax profit through its vast scale and recurring fee structure.

Unrivaled Global Scale in Wealth Management

UBS manages over $4.0 trillion in invested assets, making it the undisputed global leader in wealth management outside the United States. This enormous asset base creates immense scale economies, allowing UBS to spread fixed technology and regulatory compliance costs across a wider pool of revenue than any competitor.

Dominant Swiss Universal Banking Franchise

Following the Credit Suisse acquisition, UBS holds a near-monopoly position in Swiss personal and corporate banking. This market dominance provides a highly sticky, low-cost deposit base that stabilizes the bank's overall funding costs and generates reliable, high-margin cash flows even during volatile market cycles.

KEY TRENDS

Shifting Global Interest Rate Environment

As global central banks transition toward a sustained rate-cutting cycle, UBS faces downward pressure on net interest margins. However, the bank is actively mitigating this macro headwind by shifting client assets into fee-generating discretionary mandates and structured wealth products.

Accelerated Post-Merger Cost Rationalization

UBS is executing a strict operational restructuring strategy aimed at eliminating overlapping corporate functions and legacy IT systems from the Credit Suisse merger. The bank remains on track to achieve $13 billion in cumulative gross cost savings by the end of 2026, significantly boosting structural operating margins.