Key Takeaways
- • Norway's sovereign wealth fund is reportedly looking to sell the Üetlihof in Zurich before year-end; UBS is the tenant, not the owner, with its lease running until 2037 according to AWP, while buyer and price remain undecided.
- • Vontobel raised its UBS price target from CHF 40 to CHF 42.50 on Thursday but kept a "Hold" rating, declining to attach a buy call; UBS shares finished Friday at EUR 43.83.
- • A possible compromise on UBS capital rules is emerging: a 4 November proposal from a National Council member would allow more conservative valuation methods for foreign subsidiaries, potentially reducing the additional USD 16bn capital the bank expects to need.
- • UBS reported Q3 2026 net profit of USD 2.7bn and return on CET1 capital of 14.8%, with its CET1 ratio expected near its roughly 14% target by end-2026.
- • UBS Fund Management (Switzerland) closed the UBS (CH) Property Fund – Direct Mixed Urban capital increase on 4 November, raising around CHF 183m with all new units subscribed.
Summary
Norway's sovereign wealth fund is looking to offload the Üetlihof in Zurich before the end of 2026, according to reporting cited by AWP. UBS occupies the property as a tenant rather than an owner, and its lease runs until 2037. Neither the buyer nor the price has been determined. UBS told the NZZ that the Üetlihof is an important location for the bank, signaling that the tenancy is the operative consideration.
The disposal news came alongside several corporate developments. Vontobel on Thursday raised its UBS price target from CHF 40 to CHF 42.50 while maintaining a "Hold" rating and declining to issue a buy recommendation at the higher target. UBS shares closed Friday at EUR 43.83.
On the regulatory front, Bloomberg reported that a proposal aired on 4 November by a member of Switzerland's National Council would permit a different valuation method for foreign subsidiaries. The scope of the plan and its political backing remained unclear. The National Council's economic and tax commission had planned to continue deliberations on UBS's capital adequacy at its 23-24 November meeting. Media reports indicate the measure could let UBS apply more conservative valuation methods when calculating extra capital required for overseas units, potentially reducing the additional USD 16bn the bank expects to need. The outcome and size of any relief remain open.
Financially, UBS reported a third-quarter 2026 net profit of USD 2.7bn on 28 October, with return on CET1 capital at 14.8% per company figures. The bank expects its CET1 ratio to approach its target of roughly 14% by year-end. Moody's confirmed UBS's ratings on 3 November. UBS AG also said it will redeem all outstanding securities across ten ETRACS ETN series, with settlement on 17 and 18 December; the formal termination notice for BDCZ is not due until 24 November.
UBS Fund Management (Switzerland) AG closed the capital increase of the UBS (CH) Property Fund – Direct Mixed Urban on 4 November. All new units were subscribed, raising around CHF 183m for the real estate vehicle. UBS's next scheduled results release is fourth-quarter 2026 numbers on 3 February 2027.
The disposal news came alongside several corporate developments. Vontobel on Thursday raised its UBS price target from CHF 40 to CHF 42.50 while maintaining a "Hold" rating and declining to issue a buy recommendation at the higher target. UBS shares closed Friday at EUR 43.83.
On the regulatory front, Bloomberg reported that a proposal aired on 4 November by a member of Switzerland's National Council would permit a different valuation method for foreign subsidiaries. The scope of the plan and its political backing remained unclear. The National Council's economic and tax commission had planned to continue deliberations on UBS's capital adequacy at its 23-24 November meeting. Media reports indicate the measure could let UBS apply more conservative valuation methods when calculating extra capital required for overseas units, potentially reducing the additional USD 16bn the bank expects to need. The outcome and size of any relief remain open.
Financially, UBS reported a third-quarter 2026 net profit of USD 2.7bn on 28 October, with return on CET1 capital at 14.8% per company figures. The bank expects its CET1 ratio to approach its target of roughly 14% by year-end. Moody's confirmed UBS's ratings on 3 November. UBS AG also said it will redeem all outstanding securities across ten ETRACS ETN series, with settlement on 17 and 18 December; the formal termination notice for BDCZ is not due until 24 November.
UBS Fund Management (Switzerland) AG closed the capital increase of the UBS (CH) Property Fund – Direct Mixed Urban on 4 November. All new units were subscribed, raising around CHF 183m for the real estate vehicle. UBS's next scheduled results release is fourth-quarter 2026 numbers on 3 February 2027.
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