UBS shares at 18-year high: investors are not deterred by the dispute over equity capital

The Swiss Federal Council and UBS are in a dispute over the bank's capital requirements, with the council seeking stricter rules and UBS arguing it would harm its international competitiveness. The bank's stock price has remained relatively stable, with a 12% increase in 2026 and a value more than two-and-a-half times higher over the past three years.

Analysts believe the potential new capital requirements are manageable, but may have negative effects on UBS's competitiveness. The Ständerat has voted for stricter capital requirements, but a compromise is being sought in the Nationalrat. The dispute has sparked speculation about UBS potentially relocating its headquarters or merging with another bank.