UBS (UBS) shares were more than 2% lower in recent Tuesday trading after JPMorgan Chase said in a research note that new Swiss capital rules may hit the lender's ability to make share buybacks.

JPMorgan analysts said that the "overall proposal impact" of the new rules is "the worst globally we are aware of."

JPMorgan decreased UBS' share buyback estimate to $3.5 billion from $6 billion for 2026, and cut it to $4 billion from $8 billion for 2027.

JPMorgan also said that with the "share price reaction today, UBS shares have priced these proposals more than enough."

Bloomberg reported Tuesday that Switzerland on Friday introduced legislative proposals that may force UBS to add as much as $26 billion to its capital cushion.

Price: 32.16, Change: -0.78, Percent Change: -2.37