Headlines
UBS signals dividend and buyback plans on track despite regulatory push
Published by Global Banking and Finance Review
Posted on October 9, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 9, 2025
2 min readLast updated: January 21, 2026
UBS will maintain its dividend and buyback strategy despite new Swiss capital rules, with Credit Suisse integration progressing well.
(Reuters) -UBS plans to continue increasing cash dividends and making share buybacks even as the bank faces tougher capital requirements from Swiss regulators, Chief Executive Sergio Ermotti said in an interview published on Thursday.
Speaking to Italian newspaper Il Sole 24 Ore, Ermotti said the bank's dividend and buyback strategy was intact.
"This will continue, and we will provide annual guidance," he said, adding that Swiss financial authorities had confirmed UBS would have time to accumulate additional capital without compromising shareholder remuneration.
UBS is facing tougher capital requirements as the government seeks to strengthen rules following the 2023 collapse of Credit Suisse, which UBS then acquired. The process of integrating the other bank into UBS is advancing well, Ermotti said.
Outside Switzerland, that integration is complete, while the migration of Swiss clients and IT systems is expected to conclude by the first quarter of 2026, he said.
Reuters reported last month that Switzerland and UBS were signalling in private a willingness to compromise on capital rules, potentially paving the way for a lower figure than initially flagged.
Ermotti said he was more hopeful than confident that the capital requirements would be lowered, as he reiterated the new rules should be aligned with international standards.
"We're not in denial: we understand there's a price to pay, both regulatory and political. However, beyond a certain threshold, the impact on business would become unacceptable," Ermotti said.
Asked about the prospect of moving the bank's headquarters abroad, Ermotti underlined its commitment to Switzerland. "UBS benefits Switzerland, and Switzerland benefits UBS," he said.
Discussing the banking industry in Italy, Ermotti forecast mergers would take place, suggesting there was scope to create a third or fourth large banking group.
(Writing by Dave GrahamEditing by Mark Potter)
A dividend is a portion of a company's earnings distributed to shareholders, typically paid in cash or additional shares, reflecting the company's profitability.
A share buyback occurs when a company purchases its own shares from the marketplace, reducing the number of outstanding shares and often increasing the value of remaining shares.
Capital requirements are regulations that determine the minimum amount of capital a bank must hold to ensure stability and solvency, protecting depositors and the financial system.
Financial stability refers to a condition where the financial system operates effectively, allowing institutions to manage risks and absorb shocks without significant disruptions.
The integration of banks involves merging operations, systems, and cultures of two or more banks to create a unified entity, often aimed at improving efficiency and market competitiveness.
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