UBS Buyback Continues Despite Swiss Capital Rule Threat

UBS has launched a new share buyback program of up to $2 billion, starting July 1, 2025, after completing a previous $2 billion buyback earlier this year. This move comes despite Swiss government proposals that could require UBS to hold as much as $26 billion in additional capital, with such regulations unlikely to take effect before 2029. UBS leadership has publicly opposed these tougher requirements and is engaging with lawmakers to seek changes. The bank reaffirmed its commitment to capital returns, planning to announce 2026 ambitions with its 2025 year-end results. Analysts caution that the proposed reforms could restrict future investor payouts. UBS shares have underperformed the broader European banking sector amid ongoing regulatory uncertainty.