UBS clears its 2026 capital return target early, with $1.2 billion in buybacks next

“September's outcome in the Upper House is very concerning. We have made every effort to engage and contribute constructively to create a basis for a truly democratic process. Our goal has been, and remains, to reach a solution that balances financial stability, taxpayer protection and competitiveness. Unfortunately, the latest proposal on the table also fails to achieve that balance.

Ermotti used the third-quarter earnings call to escalate UBS's standoff with Bern over capital rules, and the bank has already floated moving its headquarters if the proposal sticks. For a $143 billion lender, the fight over how much capital it must hold shapes buybacks, returns and where the business is domiciled.

“With a year-to-date return on CET1 capital of 17%, we are increasingly confident in our ability to outperform our 2026 exit-rate return target. And we remain on track to achieve our exit rate cost/income ratio target of less than 70%.

Ermotti is now guiding above UBS's own 2026 return target, with the Credit Suisse integration costs still running through the P&L and Swiss lawmakers pushing for tougher capital rules. The cost/income goal of under 70% is the number to hold him to.