Published by Global Banking & Finance Review®
Posted on June 10, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleUBS shares dropped 7% as new Swiss capital rules raised investor concerns about future capital returns and earnings momentum.
LONDON (Reuters) -Shares in UBS dropped 7% on Tuesday as investors worried about the impact of new government proposals to force the Swiss bank to hold $26 billion in extra capital, including on the bank's plans to return cash to shareholders.
UBS's stock had risen after the government on Friday announced its proposals to make its banking system safer, but on Tuesday the shares reversed those gains and by 0755 GMT were 7.1% lower at 25.91 francs, set for their biggest one-day drop in two months.
Deutsche Bank analysts said on Monday, when Swiss markets were shut, that UBS's capital returns to investors for 2026 and beyond remained uncertain. Citi analysts, however, said UBS should be able to manage the extra capital demands without affecting future buybacks and dividends.
"Our remaining concern is that this still needs to go through a consultation and legislative process, so could yet be amended, and outside of the capital debate, we worry about UBS’s consensus earnings momentum, which continues to be weaker than peers on ongoing NII (net interest income) softness," they said.
(Reporting by Danilo Masoni and Tommy Reggiori Wilkes; Editing by Amanda Cooper)
UBS shares dropped 7% due to investor concerns about new government proposals requiring the bank to hold an additional $26 billion in capital.
Prior to the drop, UBS's stock had risen after the government announced proposals aimed at making the banking system safer.
Deutsche Bank analysts indicated uncertainty regarding UBS's capital returns to investors for 2026 and beyond, while Citi analysts expressed confidence that UBS should manage well.
The capital proposals still need to go through a consultation and legislative process, which means they could be amended before finalization.
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