Finance
UBS shares slide 7%, reversing gains after Swiss capital proposals
Published by Global Banking & Finance Review®
Posted on June 10, 2025
2 min readLast updated: January 23, 2026
Quick Summary
UBS shares dropped 7% as new Swiss capital rules raised investor concerns about future capital returns and earnings momentum.
UBS Shares Fall 7% Amid Concerns Over New Swiss Capital Rules
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)
Key Takeaways
- •UBS shares fell 7% due to new Swiss capital proposals.
- •Investors are concerned about UBS's future capital returns.
- •UBS's stock had initially risen after the proposals' announcement.
- •Analysts are divided on the impact of the capital demands.
- •UBS's earnings momentum remains weaker than its peers.
Frequently Asked Questions about UBS shares slide 7%, reversing gains after Swiss capital proposals
1What caused UBS shares to drop on Tuesday?
UBS shares dropped 7% due to investor concerns about new government proposals requiring the bank to hold an additional $26 billion in capital.
2How did UBS shares perform prior to the drop?
Prior to the drop, UBS's stock had risen after the government announced proposals aimed at making the banking system safer.
3What do analysts say about UBS's capital returns?
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.
4What is the current status of the capital proposals?
The capital proposals still need to go through a consultation and legislative process, which means they could be amended before finalization.
