From Yahoo Finance: 2025-06-10 08:24:00

UBS Group AG faces a 7.4% stock drop due to new Swiss capital demands, potentially reducing investor payouts. JPMorgan analyst cuts buyback forecasts, citing impact as “the worst globally.” The bank could be required to add $26 billion to its capital cushion, sparking criticism and lobbying efforts.

The Swiss government proposed legislation to bolster UBS’s financial resilience, drawing mixed reactions. Pro-business FDP party supports the measures, while left-leaning SP party believes they don’t go far enough. The Swiss People’s Party, against higher capital requirements, holds significant influence in parliament.

UBS shares react negatively to the news, down 7% this year. Analysts suggest the stock’s current valuation presents an attractive risk-reward opportunity, despite the proposed capital requirements. Vontobel analyst notes uncertainty over potential watering down of demands by parliament.

Read more: UBS Declines as Analysts Warn Capital Rules to Hurt Buybacks