Global Market: UBS Q3 profit rises 8% to $2.69 billion, accelerates buyback plan

Profitability in the Americas also improved, with the profit-before-tax margin increasing by more than two percentage points.Read more: Global Market: South Korean shares surge 6% as SK Hynix earnings fuel AI chip rallyUBS said the integration of former rival Credit Suisse remained on track for completion by the end of 2026. The bank now expects cumulative cost savings from the integration to reach approximately $13.7 billion by the end of 2026, up from its previous estimate of around $13.5 billion, Reuters reported.Live EventsThe bank repurchased $1.8 billion worth of shares during the third quarter and plans to complete its $3 billion buyback programme in February, earlier than the mid-2027 timeline announced previously.However, the pace and scale of future share repurchases remain linked to the outcome of Switzerland's proposed banking regulatory reforms.

The overhaul follows the 2023 collapse of Credit Suisse, which UBS rescued through an emergency takeover arranged with government support.Read more: Global Market Today: Asian stocks advance on resurgent AI optimismA parliamentary committee is debating new capital requirements for UBS, with the proposals expected to reach the lower house of parliament in December. Switzerland's upper house proposed a set of rules last month that UBS indicated would be unacceptable to the bank.The regulatory debate has raised concerns about the future of UBS's operations in Switzerland.

The bank's chairman has warned that UBS would need to carefully assess its position in the country if the proposed capital requirements prove excessively stringent. Some shareholders have also called for the bank to consider leaving Switzerland.According to Reuters, UBS wants parliament to reach an agreement that safeguards Switzerland's financial stability without placing excessive costs on the bank's shareholders, clients and employees.The outcome of the regulatory discussions could significantly affect UBS's capital allocation strategy, including its ability to return capital to shareholders through buybacks, as the lender continues to integrate Credit Suisse and strengthen profitability.(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)(You can now subscribe to our ETMarkets WhatsApp channel)