Swiss banking giant UBS AG (UBS) reported Tuesday a profit for the fourth quarter compared to losses reported for the last quarter and prior year periods, benefiting from higher net interest income and lower costs. The year-over-year turnaround also reflected much lower trading loss.
However, outflows soared sequentially, and chief executive Oswald Grübel said addressing the causes of net new money outflows remains a main priority.
The Zurich, Switzerland-based company's net profit for the quarter was CHF 1.37 billion, compared to a loss of CHF 9.44 billion in the previous year. Net profit attributable to UBS shareholders was CHF 1.2 billion or CHF 0.31 per share, in comparison with a loss of CHF 9.56 billion or CHF 2.99 per share in the prior year. Grübel said, "We entered 2009 at the height of the crisis. By the end of 2009 UBS has returned to profitability, delivering on its priorities. We have taken decisive action to transform UBS, and it is now a focused, efficient and resilient firm. We expect that our return to profitability will increase clients' confidence in UBS and restore our reputation."
For the third quarter, the company had posted a net loss of CHF 544 million compared to prior year's profit of CHF 420 million. Net loss attributable to UBS shareholders was CHF 564 million or US$542 million, compared to a profit of CHF 283 million a year ago. On a per share basis, loss for the third quarter amounted to CHF 0.15 or US$0.14, versus profit of CHF 0.09 in the prior-year quarter. The company noted that its performance in the fourth quarter improved from the third quarter due to lower costs, lower own credit charges and a tax credit. Net interest income for the fourth quarter grew to CHF 1.75 billion from CHF 1.65 billion in the same quarter last year and CHF 1.65 billion in the third quarter. Net interest income after credit loss expense was CHF 1.67 billion, compared to an expense of CHF 655 million last year. Net fee and commission income decreased to CHF 4.44 billion from CHF 4.78 billion in the preceding year.
Total operating income for the fourth quarter was CHF 6.09 billion, compared to a loss of CHF 4.7 billion in the comparable quarter a year ago.
While all business divisions reported a pre-tax profit in the fourth quarter, outflows were a concern for UBS. Wealth Management & Swiss Bank outflows of net new money were CHF 33.2 billion during the quarter, nearly double from CHF 16.7 billion in the prior quarter. Wealth Management Americas net new money outflows were CHF 12 billion compared with CHF 9.9 billion in third quarter. Global Asset Management recorded net new money outflows of CHF 11 billion for the quarter, up from CHF 10.0 billion in the prior quarter.
Total operating expenses for the quarter declined to CHF 5.18 billion from CHF 6.56 billion in the prior-year quarter and from CHF 6.34 billion in the third quarter.
Net trading loss for the quarter amounted to CHF 62 million, compared to a hefty CHF 9.13 billion loss a year earlier. Credit loss expense during the quarter was CHF 83 million, compared to a loss of CHF 2.31 billion reported last year.
Further, the company stated that fourth-quarter results include a CHF 480 million tax credit mainly attributable to the revaluation of deferred tax assets, principally in the US.
For the full year, the company's net loss narrowed to CHF 2.12 billion from CHF 20.72 billion in the prior year. Net loss attributable to UBS shareholders was CHF 2.74 billion or CHF 0.75 per share, compared to a loss of CHF 21.29 billion or CHF 7.63 per share in the preceding year. Net interest income for the year grew to CHF 6.45 billion from CHF 5.99 billion in the previous year. Further, the company said headcount was reduced by 16% to 65,233 during the year, broadly in line with its 2010 target of 65,000. Among others, German financial services firm Deutsche Bank AG (DB) last Thursday reported a profit for the fourth quarter, compared with a loss last year, helped by higher revenues and a tax benefit. Net income for the quarter was EUR 1.3 billion or EUR 2.00 per share, compared with a loss of EUR 4.8 billion or EUR 8.71 per share in the fourth quarter of 2008. Revenues were EUR 5.5 billion compared to a negative EUR 853 million in the fourth quarter of 2008. UBS closed Monday's regular trading at $12.84, down $0.27 or 2.06%, on a volume of 5.46 million shares. In the past 52 weeks, the shares have been trading in a range of $7.04 to $19.32 on the NYSE.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.