UBS Charts a New Course as Legal Cloud Lifts and Shareholders Gather

UBS exonerated in Credit Suisse-era scandal as shareholders vote on new board, a 22% dividend hike, and face key capital requirement decisions.

A major legal overhang from the Credit Suisse era has been removed for UBS. Switzerland’s Federal Criminal Court has dismissed the criminal proceedings against the bank in the long-running “Tuna Bonds” case. The judges ruled that criminal liability does not automatically transfer to a legal successor, concluding that such a transfer following UBS’s 2023 absorption of Credit Suisse would violate Swiss constitutional law and the European Convention on Human Rights. While proceedings against former Credit Suisse employees continue, the bank itself is now clear of the scandal related to billion-dollar loans for a Mozambican fishing fleet arranged over a decade ago.

This legal clearance arrives just as UBS shareholders prepare for a pivotal annual meeting. The gathering, set for Wednesday, April 15, at the St. Jakobshalle in Basel, will see significant changes to the board of directors. Lukas Gähwiler, William C. Dudley, and Jeanette Wong are stepping down. Shareholders will vote on the proposed appointments of Agustín Carstens, the former head of the Bank for International Settlements and ex-Governor of Mexico’s central bank, and Luca Maestri, the long-serving CFO of Apple. The bank is also set to confirm Markus Ronner as a Vice-Chairman. These moves are seen as bolstering the board’s regulatory and large-scale transformation expertise.

A key item for approval is a proposed dividend of $1.10 per share for the 2025 financial year, a substantial 22 percent increase from the prior year. This payout is supported by a full-year 2025 net profit of $7.8 billion. The bank’s integration of Credit Suisse continues to yield savings, with cumulative cost reductions now at $10.7 billion. UBS has recently raised its total synergy target from the takeover to $13.5 billion.

Investor attention is also fixed on an imminent regulatory decision from the Swiss Federal Council regarding potential stricter capital requirements under “Too Big To Fail” reforms. Analysts at Deutsche Bank Research maintain a “Buy” rating on UBS shares with a price target of 39 Swiss francs, anticipating more clarity on this front within April. This regulatory outlook could provide support for the stock, which has declined approximately twelve percent since the start of the year.

Concurrently, a major institutional shareholder has adjusted its position. According to an SEC filing dated April 11, Massachusetts Financial Services (MFS) reduced its UBS stake by about 11.3 percent, selling roughly 8.7 million shares. Despite this move, MFS remains a top shareholder with a holding of over 68 million shares.

The next significant operational milestone will be the release of first-quarter 2026 results on April 29. Management has set ambitious targets, aiming for a return on CET1 capital (RoCET1) of around 15 percent as a year-end exit rate for 2026, with a medium-term goal of 18 percent by 2028. The broader economic environment remains challenging. UBS Global Wealth Management recently downgraded its outlook for the S&P 500, citing energy costs and growth risks stemming from the ongoing conflict in the Middle East.