UBS, still among Europe's best-capitalized banks, posted a 33% y-o-y rise in FY 2025 pre-tax profit.
The 10-year run has been excellent, with pre-tax profit more than doubling, from $4.2bn to $8.8bn, while the number of shares outstanding fell by 15%.
That helps explain why EPS grew even faster, from $0.9 to $2.4, while the dividend per share rose from $0.6 to $1.1 between 2016 and 2025.
This overall performance crowns the successful tenure of charismatic chief executive Sergio Ermotti, who returned to the helm in 2023 to steer the delicate integration of Credit Suisse.
That process is progressing at a good pace - as shown by the increase in profit before exceptional items, chiefly restructuring costs - even if it has been slow to show up in the accounts.
The saga is not over, however, with former Credit Suisse shareholders bringing legal challenges against UBS, arguing the takeover was unfavorable, and disputes still ongoing over the treatment of securities after the merger.
That adds another source of tension for UBS, as some shareholders worry about the drag on profitability from Swiss regulatory requirements. The bank has publicly criticised those rules.
In that respect, it is keeping open the option of relocating certain activities to the United States. A genuine strategy or a bluff?
UBS saw its market cap rebound last year, along with the broader European sector. Traditionally valued at around one times tangible equity since the subprime crisis, the banking group saw that multiple reach 1.8x in February, just before a pullback set in.
