UBS Group AG (UBS): BCG Matrix [Dec-2025 Updated]

You're looking at the post-Credit Suisse integration landscape for UBS Group AG, and the BCG Matrix clearly maps out where the real action is right now. The Global Wealth Management unit is the clear Star, sitting atop $6.9 trillion in invested assets with massive net new asset inflows of $38 billion in Q3 2025, while the Swiss Personal & Corporate Banking acts as the reliable Cash Cow, banking CHF 1,365 million in net profit in H1 2025. Meanwhile, we're still cleaning up the Dogs-the Non-Core and Legacy assets-while the Investment Bank remains a volatile Question Mark, showing 23% revenue growth in Q3 2025 but needing careful capital deployment to secure its future. Find out below exactly how these four quadrants define UBS Group AG's strategy moving forward.

Background of UBS Group AG (UBS)

You're looking at UBS Group AG, which is a major global financial services firm providing advice and solutions to private, institutional, and corporate clients across the world. As of late 2025, the company's structure is defined by the massive integration of Credit Suisse, a process they are on track to substantially complete by the end of 2026. The legal merger at the Group level actually happened back on May 31, 2024, setting the stage for the complex operational cleanup you see now.

UBS Group AG organizes its operations into five primary divisions: Global Wealth Management, Personal & Corporate Banking (PCB), Asset Management, Investment Bank, and the Non-core and Legacy (NCL) unit. This diversified structure is key to understanding its performance, as different segments show very different traction. For instance, Global Wealth Management is often called the crown jewel; in Q1 2025, it saw a 21% PBT increase, fueled by $32 billion in net new assets.

The Investment Bank has also been a standout performer, with revenue growing 24% year-over-year in Q1 2025, and Global Markets revenue surging 32% in that same quarter. However, the Personal & Corporate Banking division has lagged, showing a 23% PBT decline in Q1 2025, largely due to $2.9 billion in net deposit outflows from corporate and institutional clients. It's a tale of two banks right now, honestly.

Financially, the firm is showing resilience while managing integration costs. For the third quarter of 2025, UBS reported a net profit of $2.5 billion, which was a 74% increase year-on-year. The balance sheet remains strong, with the CET1 capital ratio standing at 14.8% as of Q3 2025, comfortably above their target. Furthermore, the integration is driving cost discipline; UBS achieved $9.1 billion in cumulative gross cost saves since the integration began, putting them at around 70% of their $13 billion target set for the end of 2026.

The NCL unit, which holds assets UBS intends to wind down, is also making progress, with 83 percent of the original book closed as of mid-2025. Strategic moves continue, like the formal application for a U.S. national bank charter, positioning the firm for long-term growth even as they manage the tail end of the Credit Suisse migration, which is largely planned for completion by the end of Q1 2026 for Swiss-booked accounts.

UBS Group AG (UBS) - BCG Matrix: Stars

You're looking at the engine room of UBS Group AG's current valuation, and that's Global Wealth Management (GWM). This division is the undisputed global leader, managing $6.9 trillion in invested assets as of Q3 2025. That figure represents a 4% sequential growth quarter-over-quarter, showing consistent momentum even after the Credit Suisse integration. Honestly, holding onto that market share in a sector this competitive is a feat in itself.

The growth isn't just from market appreciation, either; you see real client commitment. GWM logged $38 billion in net new assets in Q3 2025 alone. Year-to-date, that puts total net new assets close to the full-year ambition, hitting $92 billion since the start of 2025. This inflow confirms market dominance and high growth, especially since inflows from APAC, EMEA, and Switzerland more than offset the outflows seen in the Americas.

Here's a quick look at how GWM stacked up in the third quarter:

This leadership position is perfectly timed for the accelerating Great Wealth Transfer. While estimates vary, Cerulli Associates projects that between $84.4 trillion and $124 trillion in assets will change hands over the next two decades. UBS Group AG, with its established global footprint and leadership in managing the assets of the ultra-high-net-worth segment, is defintely positioned to capture a significant share of this multi-decade shift in capital.

The strong underlying profit before tax growth is a direct result of this client momentum and the high-margin recurring fee income structure. GWM's total revenues rose 6% year-over-year to $6.543 billion in Q3 2025, primarily driven by that recurring net fee income. The underlying PBT for the division was $1.8 billion for the quarter. This is exactly what you want to see in a Star: high growth markets translating directly into strong, high-quality earnings.

The key indicators confirming GWM's Star status are clear:

• Undisputed global leader in invested assets at $6.9 trillion.
• Consistent, high-quality asset inflows of $38 billion in the quarter.
• Revenue growth driven by recurring fee income, up 6% YoY.
• Underlying PBT of $1.8 billion in Q3 2025.

UBS Group AG (UBS) - BCG Matrix: Cash Cows

The Personal & Corporate Banking (P&CB) in Switzerland segment functions as a definitive Cash Cow for UBS Group AG. This unit operates within a mature, stable domestic market where UBS has achieved a dominant market position, especially following the integration of Credit Suisse (Schweiz) AG.

This domestic powerhouse generated a strong H1 2025 net profit of CHF 1,365 million, providing a reliable stream of capital to the broader Group. This performance underscores the segment's ability to generate more cash than it consumes, a hallmark of a Cash Cow business unit.

The merger with Credit Suisse (Schweiz) AG, which legally completed on July 1, 2024, has solidified this high market share. The migration of former Credit Suisse client relationships onto UBS systems was largely planned throughout 2025, further concentrating domestic business under the UBS umbrella.

The stable, high-volume deposit base within the Swiss operations is critical, serving as a low-cost funding source for the entire UBS Group. This characteristic reduces the overall cost of funding and enhances the profitability of other, higher-growth segments.

Key metrics supporting the Cash Cow status of UBS Switzerland AG for the first half of 2025 are detailed below:

The strategic actions taken to support this segment focus on efficiency and integration, rather than aggressive market expansion, reflecting the Cash Cow strategy:

• Migration of over two-thirds of Swiss-booked client accounts completed by Q3 2025.
• Consolidation of the branch network completed in Q1 2025, merging 95 former Credit Suisse branches.
• Cumulative gross cost savings from the integration reached $91 billion as of H1 2025.
• The Group reported a total net profit attributable to shareholders of $4.087 billion for H1 2025, with the Swiss unit being a major contributor.

UBS Group AG (UBS) - BCG Matrix: Dogs

You're looking at the parts of UBS Group AG that are actively being pruned back-the units that tie up capital and management time without promising a big payoff. These are the classic Dogs in the Boston Consulting Group Matrix: low market share in markets that aren't growing much, or in UBS Group AG's case, units deemed non-strategic post-acquisition.

The primary focus here is the Non-Core and Legacy (NCL) assets, which are mostly the residual, non-strategic pieces inherited from the Credit Suisse acquisition. The strategy is clear: wind them down. These assets consume capital and management focus without providing future growth or high returns, making them prime candidates for divestiture or run-off.

Here's the quick math on the reduction effort for the NCL portfolio, showing the aggressive capital consumption reduction:

The stated goal, as per the scenario, is a reduction to $30 billion by Q2 2025 from the starting point of $86 billion in Q2 2023. To be fair, the actual reported RWA for the NCL perimeter at the end of June 2025 was $32.7 billion, showing significant progress toward the wind-down ambition of reducing RWA below $22 billion by the end of 2026.

Also, in the Asset Management (AM) division, while the core business is performing, certain flows indicate areas that are not gaining relative traction, fitting the low-growth/low-share profile for specific products or strategies within that segment. For Q2 2025, the Asset Management unit saw negative net new money of $2 billion in total. When you look specifically at flows excluding money market funds, the net outflows were even more pronounced at negative $5 billion.

These Dog-like characteristics mean management attention should be minimal, focusing only on the most efficient path to exit or run-off. Expensive turn-around plans usually don't help here; the focus is on capital release.

• Low market share in the specific sub-segment.
• Low or negative market growth rate.
• Frequently break even, neither earning nor consuming much cash (though NCL is currently loss-making due to wind-down costs).
• Prime candidates for divestiture or active run-off.
• Consume capital and management focus unnecessarily.

Finance: draft 13-week cash view by Friday.

UBS Group AG (UBS) - BCG Matrix: Question Marks

You're looking at the business units that are currently burning cash but hold the key to future dominance; these are the Question Marks in the UBS Group AG portfolio. The Investment Bank (IB) segment fits this profile well, operating under a deliberate capital-light strategy. This approach inherently caps its overall market share when stacked against the traditional bulge bracket peers who deploy more balance sheet, so while the market opportunity is large, UBS's current slice is relatively small.

The growth trajectory, however, suggests significant potential, placing it squarely in this quadrant. The market it operates in is high-growth but, as you know, cyclical. For instance, in the third quarter of 2025, the Investment Bank division delivered revenue increasing by 23% year-over-year, reaching $3.2 billion. This kind of top-line acceleration shows buyers are discovering the value proposition, but the unit still needs to convert that momentum into sustainable market share.

Here's a quick look at the recent growth signals we see in the key components of this division, which help define its Question Mark status:

Global Markets, specifically, is a key area showing this high-growth characteristic, with underlying revenues up a substantial 32% year-over-year in the first quarter of 2025. This volatility is typical for trading-focused businesses, but the underlying strength is undeniable. The challenge, as you can see, is that these high growth rates demand significant, strategic investment to translate into a sustainable, leading market share in areas like advisory and capital markets, all while you're trying to avoid increasing capital intensity too much, which would defeat the purpose of the capital-light strategy.

The path forward for these units is clear: they require heavy, focused capital allocation to quickly move them into the Star quadrant, or a decision to divest if the path to market leadership seems too costly or distant. If onboarding takes 14+ days, churn risk rises, and that applies to capturing market share here too. Finance: draft 13-week cash view by Friday to model the required investment levels for IB expansion.