UBS reported first-quarter net profit of $3bn, up 80% on a year ago, as record trading revenues — driven by Middle East war volatility — lifted the Swiss bank to its strongest result in years.
Markets-division revenues hit a record $3.2bn, almost a third higher than the same period last year. Equities trading rose 29% to $2.3bn, fixed-income trading jumped 38% to $900mn, and investment-banking revenues climbed 30%, taking IB pre-tax profit to $1.2bn from $696mn a year earlier. The core wealth-management arm grew revenues 11% to $7.1bn and pulled in $37.4bn of net new client money. Return on common equity tier one capital — a closely watched profitability ratio — reached 16.8%, and UBS confirmed it will keep buying back shares alongside dividends, despite Bern's plan to force a $20bn capital top-up that the bank has called “extreme”.
Peers lagged. Deutsche Bank posted revenues of €8.7bn (+2%) and a record net profit of €2.2bn (+8%), but flat fixed-income trading and credit-loss provisions up 10% to €519mn. Santander delivered €5.5bn of net income (+60%), boosted by a €1.9bn capital gain on the sale of its Polish unit. Source: Financial Times, 29 April 2026, Simon Foy, Mercedes Ruehl and Florian Müller.
Key numbers
Metric (Q1 2026)
UBS
Year-on-year
Net profit
$3.0bn
+80%
Markets-division revenue
$3.2bn (record)
~+33%
Equities trading
$2.3bn
+29%
Net new wealth assets
$37.4bn
n/a
RoCET1
16.8%
n/a
Peers, same day: Deutsche Bank revenues €8.7bn (+2%), net profit €2.2bn (+8%), credit-loss provisions €519mn (+10%). Santander net income €5.5bn (+60%), including €1.9bn capital gain on its Polish-unit sale.
Why it matters
The volatility from the US military intervention in Venezuela (January) and the ongoing Iran war has reset trading P&Ls across Wall Street and Europe. UBS, with its rebuilt markets franchise post-Credit Suisse, is now the European bank closest to capturing the upside. Wealth management — which collects fees on assets under management rather than balance-sheet risk — keeps growing the steady half of the model.
The ongoing fight is regulatory: Bern wants UBS to add $20bn of capital, which CEO Sergio Ermotti has called “extreme” and “lacking international alignment.” UBS’s 16.8% RoCET1 and continued buyback signal it believes it can absorb the demand without cutting returns.
Takeaway
A blowout quarter that mixes cyclical (trading) with structural (wealth) tailwinds. The next milestone is the Swiss capital-rule fight — until that resolves, UBS keeps buying back stock, but valuations stay capped by regulatory uncertainty.
— Delfineo's Take
Like the US bulge brackets, UBS is converting Middle East volatility into a cyclical earnings windfall — but the structural story is the wealth franchise: $37.4bn of net new assets in a single quarter and 16.8% RoCET1 give Sergio Ermotti the firepower to fight Bern’s $20bn capital demand without cutting the buyback. For long-term holders, the read-across is that capital-light wealth franchises (also relevant for Fineco and Avanza in Delfineo’s coverage) are taking share from balance-sheet-heavy investment banks.