UBS Pushes Ahead With Restructuring Drive
UBS is pulling off one of the biggest banking integrations in history – and showing no signs of slowing down. With CEO Sergio Ermotti at the helm, the Credit Suisse merger is charging ahead toward a 2026 finish. In Q2, the bank hit its marks and kept the momentum alive.
Swiss bank UBS continued to make steady progress on its Credit Suisse integration in the second quarter.
The bank reduced costs further, cut risk-weighted assets (RWA) in its Non-Core and Legacy (NCL) unit, and migrated roughly one-third of Credit Suisse client accounts to the UBS platform. The target to complete the full migration by the end of Q1 2026 was reaffirmed.
Headcount Reduction Gains Pace
Job cuts also continued. As of the end of June, UBS employed 105,132 full-time equivalents, down from 106,789 at the end of March 2025. The number of external staff was trimmed by 894, bringing the total to 18,393.
«We remain on course to substantially complete the integration of Credit Suisse by the end of 2026. Our focus continues to be on migrating client accounts and decommissioning infrastructure,» the bank stated on Wednesday.
Non-Core and Legacy Wind-Down Accelerates
The NCL unit, which holds businesses and assets UBS intends to wind down, also showed further progress. RWAs dropped to $32.7 billion, a reduction of $1.5 billion from the previous quarter.
UBS said that 83 percent of the original NCL book has now been closed. By the end of 2026, that figure is expected to rise to 95 percent, with RWAs falling below $22 billion.
Segment Revenues Turn Negative
Total revenues in the NCL segment came in at -$82 million, compared to $401 million in Q2 2024. The decline was driven by lower net gains from asset disposals and reduced interest income from securitized and credit products.
These effects were partially offset by lower liquidity and refinancing costs, thanks to a smaller portfolio.
Legal Provision Releases Drive Expense Decline
Operating expenses in the NCL unit fell sharply to $170 million, down $637 million or 79% year-on-year. This was largely due to the release of legal provisions, as well as lower spending on personnel, risk management, compliance, technology, and regulatory matters. Excluding $252 million in integration-related costs, underlying operating expenses stood at just $83 million.
Cost-Saving Target in Reach
Group-wide, the integration continues to deliver substantial savings. UBS achieved $0.7 billion in gross savings in Q2 2025 alone, bringing the cumulative total to $9.1 billion since the integration began.
That represents around 70% of the $13 billion cost-saving target the bank aims to hit by the end of 2026.
Legal Structure Overhaul Moves Forward
UBS also reported meaningful progress in streamlining its legal structure in the US and Europe – a key step toward fully integrating Credit Suisse and simplifying the bank’s global footprint.
