SynopsisUBS reported a 17% rise in Q2 net profit to $2.8 billion, beating analyst estimates on strong wealth management and investment banking growth. The Swiss lender announced a $3 billion share buyback plan and achieved $12.6 billion in cumulative Credit Suisse integration savings while trimming its workforce below 100,000.ETMarkets.comUBS posts $2.8 billion Q2 profit, unveils $3 billion buybackUBS reported a stronger-than-expected second-quarter performance on Wednesday, with net profit rising 17% as growth in wealth management and investment banking helped Switzerland’s largest bank offset ongoing integration costs linked to its acquisition of Credit Suisse, Reuters reported.The bank posted a net profit attributable to shareholders of $2.8 billion for the quarter, surpassing analysts’ expectations of $2.39 billion, according to a company-provided poll. Reuters reported that UBS also announced plans to repurchase up to $3 billion worth of shares by the middle of next year, with at least $1 billion of the buyback expected to be completed over the next three months.The lender said its quarterly performance was supported by broad-based growth across businesses, particularly in its global wealth management and investment banking divisions. The trading unit delivered a record second-quarter performance, mirroring strong results reported by major Wall Street banks earlier this month.UBS said market conditions are expected to remain broadly supportive in the coming quarter, although elevated uncertainty continues to pose challenges. The bank reported $36 billion in net new assets in its global wealth management division during the quarter, highlighting continued client inflows.The Americas wealth management business recorded inflows of $1 billion, marking its second consecutive quarter of positive net new assets after a period of outflows triggered by the departure of several relationship managers.The bank also highlighted its focus on artificial intelligence investments, saying it has launched nine large-scale initiatives aimed at strengthening its technology capabilities and preparing for future growth.Buyback Plans Linked to Capital Rules DebateThe latest buyback announcement follows UBS's completion of a $3 billion share repurchase programme in July. Analysts had earlier estimated that the bank could carry out around $4.45 billion in buybacks during 2026.UBS reiterated that the scale and timing of future buybacks would depend on its financial performance and the outcome of Switzerland’s proposed banking regulations following the 2023 collapse of Credit Suisse and its emergency takeover by UBS.Swiss authorities have pushed for stricter capital requirements, with the government seeking to require UBS to hold around $20 billion in additional Common Equity Tier 1 capital to reduce risks to the economy in case of a future crisis. UBS has argued that such a requirement would be excessive and could weaken its competitiveness.Reuters reported that lawmakers are expected to consider easing the proposed capital rules when discussions on the legislation begin next month, amid concerns that overly strict requirements could affect investor sentiment towards UBS.The bank said the integration of Credit Suisse remains on schedule and is expected to be completed by the end of 2026.Cost Savings and Workforce Reduction ContinueUBS said it achieved additional gross cost savings of $1.1 billion in the second quarter, taking total savings generated from the Credit Suisse integration programme to $12.6 billion, Reuters reported.The bank added that it remains on track to exceed its 2026 capital return target, with a goal of achieving an exit-rate return on tangible equity of around 15%.As part of its restructuring efforts, UBS continued reducing its workforce after acquiring Credit Suisse. The bank cut around 2,500 full-time positions during the quarter, bringing its internal workforce below 100,000 employees for the first time since the takeover.UBS reported a cost-income ratio of 72.9% for the second quarter, improving significantly from 80.5% a year earlier and beating analysts’ expectations of 75.6%. The improvement reflected stronger revenue generation and continued progress on cost reduction efforts.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times.)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. 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