UBS can cope with losses in a crisis: Swiss National Bank

The SNB said UBS’ ability to generate profits continued to rise in 2025. Keystone-SDA

The banking giant UBS, along with banks focused on the Swiss market, would be able to absorb losses resulting from “adverse scenarios”, the Swiss National Bank (SNB) said in a new report published on Thursday.

“The Swiss banking sector is, on the whole, well positioned to meet the challenges posed by the current environment,” the Swiss National Bank said on Thursday as it published its financial stability report.

At the same time, it points out that “the economic and financial environment remains difficult for the Swiss financial sector, due in particular to the conflict in the Middle East, tensions relating to international trade, and the resulting geopolitical and macroeconomic uncertainties.”

As for systemically important banks, the profitability of PostFinance and Zurich Cantonal Bank (ZKB) increased last year, but declined for the Raiffeisen Group. Capital ratios have generally improved.

At the country’s largest bank, UBS, the SNB said the institution’s ability to generate profits “continued to rise in 2025. This improvement is attributable to the performance of the wealth management and investment banking businesses”. Its Swiss operations, by contrast, saw their profitability decline due to lower net interest income.

As for capital, UBS exceeds the requirements of the “too big to fail” (TBTF) regulations under a full implementation scenario, to which it will be subject from 2030, the SNB said.

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Translated from French/sub-editing gw