Thursday, 5 February 2026 Reading time : 3 minutes

Following a successful stock market performance in 2025, UBS shares have fallen behind at the start of 2026. They have lost almost 6% since the beginning of the year (as of 4 February 2026), lagging significantly behind the SMI (+1.8%).

Despite posting unexpectedly good results for the final quarter of 2025, the banking giant saw losses widen again on Wednesday. UBS increased its profit by 56% year-on-year to USD 1.2 billion, exceeding average analyst forecasts, allowing the bank to increase its dividend.

Investors are likely hesitant for various reasons, but the planned tightening of capital requirements for the major Swiss bank remains a main factor of uncertainty. This uncertainty is influencing UBS's distribution policy, CEO Sergio Ermotti explained. The bank plans to buy back shares worth USD 3 billion in the current year, with the aim of increasing the volume. However, this depends, among other things, on the future capital requirements, Ermotti said according to Bloomberg. 

The discussion about the appropriate capital buffer for UBS is likely to intensify in the coming months. Various comments on the Federal Council's draft legislation are currently being evaluated. These include the assessment of UBS itself, which considers the proposed measures to be overly strict or inappropriate in certain areas.

Despite the recent setback, UBS shares have performed well. In 2025, they rose by 34% and reached their highest level in around 18 years at the start of 2026. Whether they can continue the upward trend depends largely on the regulatory requirements, so patience is needed until this issue is clarified.

Investors expecting a stable price performance in the coming months may be interested in the reverse convertible on UBS. This six-month product pays a guaranteed annual coupon of 10.00%. If UBS shares are trading at or below the strike of 95% (based on the initial fixing) at maturity, investors will receive shares.

Reverse Convertible on UBS
10.00% p.a. RC auf UBS
Strike: 95%
Valor: 151 092 949

Indicative terms

 

Disclaimer
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