UBS Group AG (UBS.US) CEO Gives Early "Spoiler" on Q3 Results: Wealth Management Business Has Good Momentum, but Growth Will Be Lower Than Last Year

UBS Group AG (UBS.US) CEO Sergio Ermotti said on Tuesday that the bank's third-quarter results will achieve year-over-year growth, but the pace will be slower than the same period in 2025. "We see good momentum in the wealth management business, and the trading business is also performing well," Ermotti said at a Bank of America Corp financial conference. "Although we clearly expect this figure to achieve year-over-year growth, it will likely not reach last year's level, because seasonal effects still persist." UBS Group AG is scheduled to release its third-quarter earnings report on October 28. Ermotti warned that the global banking industry's fee pool will likely decline compared with the same period last year, because the third quarter of 2025 was exceptionally strong. UBS Group AG is the largest wealth management institution in the world outside the United States, and the bank is also seeking to expand its business footprint in the Americas. Ermotti pointed out that the pace of wealth creation in the United States is a key factor for the bank. Ermotti said that the pace of wealth advisor departures at UBS Group AG in the United States has slowed to close to the industry average, after the bank had been affected by related trends following reforms to its compensation structure. In addition, Ermotti also said that the proposal requiring UBS Group AG to support its overseas subsidiaries with 90% of CET1 capital rather than 100% of CET1 is not a real compromise, and urged Switzerland to take a more moderate route. It is understood that Switzerland's upper house of parliament is scheduled to vote on Wednesday on new capital rules drawn up for UBS Group AG after the collapse of Credit Suisse in 2023. The government wants UBS Group AG to support its overseas subsidiaries with 100% CET1 capital. UBS Group AG says this requirement is too harsh. Affected by this news, UBS Group AG shares fell about 3% in U.S. premarket trading on Tuesday.