UBS has applied for a US license to expand its wealth management services while reporting a 74% surge in third-quarter profit. However, challenges over the Credit Suisse bond write-down and stricter Swiss capital rules continue to weigh down its outlook.
UBS Group AG has formally applied for a National Bank Charter in the United States, marking a strategic step to strengthen its presence in the world’s largest economy and broaden its wealth management capabilities.
The application was submitted to the Office of the Comptroller of the Currency. It signals the Swiss banking giant’s intent to offer a wider range of services to American clients. According to an internal memo confirmed by UBS, the charter would allow UBS Bank USA to provide payments, checking and savings accounts, and eventually mortgages.
Executives Rob Karofsky, President of UBS Americas, and Michael Camacho, Head of UBS Global Wealth Management US, said the initiative is designed to deepen relationships between financial advisers and clients by consolidating services under one roof.
“This step is part of our long-term goal to build on UBS’s status as a premier global wealth manager in the US and invest in areas that will drive growth,” the memo stated.
UBS expects regulatory approval by 2026. If granted, it would become the first Swiss bank to secure such a licence in the United States. The bank stressed, however, that the application does not signal immediate product launches but rather lays the foundation for phased development over several years.
Regulatory pressures in Switzerland
Back home, UBS faces scrutiny following its emergency acquisition of Credit Suisse in 2023. Proposed capital rules aimed at preventing future crises have raised concerns within the bank, with executives warning that the measures could make foreign expansion significantly more costly. Finance Minister Karin Keller-Sutter has acknowledged that the proposals would increase the financial burden on UBS’s overseas operations.
Despite speculation about relocating its headquarters, UBS insists it has no plans to leave Zurich. Nonetheless, the US remains central to its growth strategy. Alongside Switzerland, it is one of UBS’s largest revenue generators, though profitability lags behind American rivals such as Morgan Stanley. Chairman Colm Kelleher has previously highlighted the importance of scale in US wealth management, citing Morgan Stanley’s acquisition of Smith Barney as a transformative deal that doubled profitability.
Chief Executive Sergio Ermotti echoed this view in 2024, noting that UBS’s cost base resembles that of a much larger institution, yet its limited product range prevents it from fully exploiting its potential.
With more than 1,000 individuals reportedly becoming millionaires daily in the US during 2024, the country represents fertile ground for UBS’s core wealth management business. The bank’s latest move underscores its determination to capture a greater share of this lucrative market.
Strong third-quarter results
UBS also reported a sharp rise in third-quarter profit, supported by strong investment banking revenues, robust wealth management inflows, and the release of legal provisions.
Net profit attributable to shareholders reached $2.5 billion for the three months to September, up 74% from $1.43 billion a year earlier and well above analyst expectations of $1.85 billion. Revenues rose to $12.76 billion, slightly ahead of forecasts. The results were boosted by $668 million in litigation reserve releases, largely tied to the resolution of Credit Suisse’s legacy mortgage-backed securities business and cross-border activities in France.
Legal uncertainty over Credit Suisse takeover
Despite the strong results, investor sentiment was tempered by ongoing legal risks. UBS shares initially rose more than 2% in early trading but later closed down 0.9% after a Swiss court ruled that the controversial write-down of 16.5 billion Swiss francs ($20.8 billion) in Credit Suisse AT1 bonds was unlawful.
UBS has pledged to appeal, maintaining that the write-down was consistent with contractual terms and applicable law. Chief Financial Officer Todd Tuckner told analysts the bank does not believe it faces a liability, though he acknowledged UBS has no indemnity from the Swiss government. The appeals process could take years to resolve.
Progress on Credit Suisse integration
Despite these uncertainties, UBS continues to advance its integration of Credit Suisse. More than two-thirds of Swiss-booked client accounts have already been migrated, and the bank has achieved $10 billion of its targeted $13 billion in cost savings, well ahead of schedule.
Wealth management attracted $38 billion in net new assets during the quarter, while asset management added a further $18 billion, bringing total invested assets close to $7 trillion. Investment banking also delivered a record third quarter, with revenues up 52% in global banking and 14% in trading.
Ermotti said the results underscored the strength of UBS’s diversified business model and reaffirmed the bank’s commitment to its $3 billion share buyback programme this year, with further repurchases planned for 2026. “We’re going to complete our current outstanding share buyback plan,” he said, adding that UBS remained on track to meet its 2026 financial targets.
Mounting regulatory and economic headwinds
The bank also continues to face significant regulatory challenges. The Swiss Federal Council has proposed substantially higher capital requirements in the wake of Credit Suisse’s collapse, a move UBS has described as “extreme”. Analysts warn that the combination of stricter rules and unresolved legal disputes could cloud the bank’s outlook. Citi noted that questions remain over UBS’s future business model, while Vontobel’s Andreas Venditti said uncertainty over the AT1 bond case was weighing on the share price.
Global macroeconomic conditions add further complexity. UBS cited a strong Swiss franc, higher US tariffs and the risk of a prolonged U.S. government shutdown as potential drags on capital market activity. Earlier this month, the Swiss government cut its 2026 economic forecast, citing the impact of US President Donald Trump’s tariff policy, which included a 39% levy on Swiss exports.
While UBS’s third-quarter results highlight the progress made in integrating Credit Suisse and strengthening its global franchise, the bank’s ability to sustain momentum will depend on how effectively it navigates a challenging mix of legal battles, regulatory negotiations, and how well it is able to establish itself in the American market once it receives approvals.
