UBS Group (NYSE: UBS) details 2025 Form 20-F, shares and Credit Suisse integration
Filing Impact
Filing Sentiment
Form Type
20-F
Rhea-AI Filing Summary
UBS Group AG has filed its 2025 annual report on Form 20-F, prepared under International Financial Reporting Standards as issued by the IASB. The filing incorporates the UBS Group AG Annual Report 2025 and a supplementary forepart.
UBS reports 3,341,581,714 ordinary shares outstanding as of 31 December 2025, including 249,882,523 treasury shares. The document cross‑references detailed sections on strategy, business model, risk factors, regulation and supervision, and the ongoing integration of Credit Suisse.
It also points to extensive disclosures on liquidity, capital and funding management, board and executive governance, compensation and post‑employment plans, and organizational structure. Employee‑representation bodies, including the UBS European Employee Forum and local works councils, are noted as representing 51.8% of the global workforce. The next UBS Group AG Annual General Meeting is scheduled for 15 April 2026.
Positive
- None.
Negative
- None.
Annual Report 2025
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
☐
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE
SECURITIES EXCHANGE ACT OF 1934
OR
☑
EXCHANGE ACT OF 1934
For the fiscal year ended
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
OR
☐
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number:
(Jurisdiction of incorporation or organization)
,
,
(Address of principal executive office)
,
Telephone:
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol(s)
Name of each exchange on
which registered
Ordinary Shares (par value of USD 0.10 each)
UBS
New York Stock Exchange
Securities registered or to be registered pursuant to Section 12(g) of the Act:
None.
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
None.
Annual Report 2025
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of 31 December 2025:
UBS Group AG
Ordinary shares, par value USD 0.10 per share:
(including 249,882,523 treasury shares)
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes
☐
☑
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934.
Yes
☐
☑
Note — Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 from their obligations under those Sections.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing requirements for the past 90 days.
☑
No
☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period
that the registrant was required to submit such files).
☑
No
☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or an
emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer” and “emerging growth company”
in Rule 12b-2 of the Exchange Act.
☑
Accelerated filer
☐
Non-accelerated filer
☐
☐
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark
if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards† provided pursuant to Section 13(a) of the Exchange Act.
☐
† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards
Board to its Accounting Standards Codification after April 5, 2012.
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the
effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.
7262(b)) by the registered public accounting firm that prepared or issued its audit report.
☑
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the
registrant included in the filing reflect the correction of an error to previously issued financial statements.
☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-
based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to
§240.10D-1(b).
☐
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this
filing:
U.S. GAAP
☐
Standards Board
☑
Other
☐
Annual Report 2025
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the
registrant has elected to follow.
Item 17
☐
Item 18
☐
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act)
Yes
☐
☑
Annual Report 2025
Cautionary Statement:
Refer to the
Cautionary statement regarding forward-looking statements
2025 (page 374).
Cross-reference table
Set forth below are the respective items of SEC Form 20-F, and the locations in this document where the corresponding
information can be found.
●
Annual Report
hereof.
●
Supplement
refers to certain supplemental information contained in this forepart of the Form 20-F, starting on page
11 following the cross-reference table.
●
Financial Statements
refers to the consolidated financial statements of UBS Group AG, contained in the Annual
Report.
In the cross-reference table below, page numbers refer either to the Annual Report or the Supplement, as noted.
Please see page 9 of the Annual Report for definitions of terms used in this Form 20-F relating to UBS.
Form 20-F item
Response or location in this filing
Item 1
. Identity of Directors,
Senior Management and
Advisors.
Not applicable.
Item 2
. Offer Statistics and
Expected Timetable.
Not applicable.
Item 3.
B – Capitalization and
Indebtedness.
Not applicable.
C – Reasons for the Offer and
Use of Proceeds.
Not applicable.
D – Risk Factors.
Annual Report,
(50-61).
Item 4
. Information on the Company.
A
– History and Development of
the Company
1-3: Annual Report,
Corporate information
and
Contacts
(7). The registrants' agent is
Patrick T. Shilling, 11 Madison Avenue, New York, New York 10010.
4: Annual Report,
Our evolution
(14);
Integration of Credit Suisse
Our strategy
(17-18);
Our businesses
(21-28); Note 28 to the Financial Statements (
Changes in
organization and acquisitions and disposals of subsidiaries and businesses
) (347-348).
5-6: Annual Report,
Our businesses
(21-28), Note 11 to the Financial Statements
(
Property, equipment and software)
Note 28 to the Financial Statements
(
Changes in organization and acquisitions and disposals of subsidiaries and businesses
)
(347-348).
7: Annual Report,
Integration of Credit Suisse
(
Changes in organization and acquisitions and disposals of subsidiaries and businesses
)
(347-348). See also Item 10.C below.
8: Annual Report, Appendix
Information sources
B – Business Overview.
1, 2 and 5: Annual Report,
Our strategy, business model and environment
2a to the Financial Statements (
Segment reporting)
(272-273)
and Note 2b to the
Financial Statements (
Segment reporting by geographic location)
(274). See also
Supplement (11).
3: Annual Report,
Seasonal characteristics
(69).
4: Not applicable.
6: None.
7: The basis for any statement generally accompanies the statement, except where
marked in the Annual Report as a statement based on publicly available information or
internal estimates. Annual Report,
Our businesses
(21-28),
Our stakeholders
8: Annual Report,
Regulation and supervision
(41-45),
developments
Risk factors
Supplement (12).
C – Organizational Structure.
Annual Report,
Our evolution
(14) and Note 27 to the Financial Statements (
Interests in
subsidiaries and other entities
) (344-347).
Annual Report 2025
D – Property, Plant and
Equipment.
Annual Report,
Property, plant and equipment
(359)
,
Note 1a) 8) to the Financial
Statements (
Summary of material accounting policies, Material accounting policies:
Property, equipment and software
) (269), Note 11 to the Financial Statements (
Property,
equipment and software)
Information required by SEC
Regulation S-K Part 1400
Annual Report,
Information required by Subpart 1400 of Regulation S-K
(360-365),
Loss
history statistics
(110-111), and Note 9 to the Financial Statements (
Financial assets at
amortized cost and other positions in scope of expected credit loss measurement)
284).
Item 4A
. Unresolved Staff
Comments.
None.
Item 5
. Operating and Financial Review and Prospects.
A
– Operating Results.
1: Annual Report,
Our key figures
(8),
(19-20),
Our businesses
(21-28),
Financial and operating performance
Income statement
(246), Note 1b to the Financial Statements (
Changes in IFRS Accounting Standards and
Interpretations
(271), Note 2a to the Financial Statements (
Segment reporting)
(272-273),
and
(358-359). The Notes to the Financial Statements provide
additional detail on the components of revenue and expenses.
2: Not applicable
3: Annual Report,
Risk factors
(50-61),
Capital management
(131-141),
Currency
Management
(151) and Note 24 to the Financial Statements (
Hedge Accounting)
334).
4:
Annual Report,
Our environment
(28-33),
Regulation and supervision
(41-45)
and
Regulatory and legal developments
Accounting and financial reporting
Note 1 b) to the Financial Statements (
Changes to IFRS accounting standards and
interpretations
(271).
A discussion on the results for the year 2024 compared with 2023 can be found in UBS
annual report 2024 filed with the SEC on Form 20-F on March 17, 2025, under
Financial
and operating performance
and under
Financial statements
B – Liquidity and Capital
Resources.
1: Annual Report,
Risk factors
(50-61)
,
Financial and operating performance
Seasonal characteristics
Interest rate risk in the banking book
Risk
,
capital,
liquidity and funding, and balance sheet
(88-153)
,
Note 22 to the Financial
Statements (
Restricted and transferred financial assets)
(326-329), Note 23 to the
Financial Statements (
Maturity analysis of assets and liabilities
) (329-331) and Note 27
to the Financial Statements (
Interests in subsidiaries and other entities
) (344-347).
Liquidity and capital management is undertaken at UBS as an integrated asset and
liability management function. While we believe our 'working capital' is sufficient for the
company's present requirements, it is our opinion that, as a bank, our liquidity coverage
ratio (LCR) is the more relevant measure. For more information see, Annual Report,
Liquidity coverage ratio
2: Annual Report,
Risk
,
capital,
liquidity and funding, and balance sheet
(88-153),
Currency Management
(151), Note 10 to the Financial Statements (
Derivative
instruments)
(284-285), Note 15 to the Financial Statements (
Debt issued designated at
fair value)
(289), Note 16 to the Financial Statements (
Debt issued measured at
amortized cost
) (290), Note 18 to the Financial Statements (
Other liabilities
) (298), and
Note 24 to the Financial Statements (
Hedge Accounting
) (332-334).
3: Annual Report,
Material cash requirements
Liquidity and funding management
(142-145), Note 23 to the Financial Statements (
Maturity analysis of assets and
liabilities
) (329-331), and Note 11 to the Financial Statements (
Property, equipment and
software)
C—Research and Development,
Patents and Licenses, etc.
Not applicable.
D—Trend Information.
Annual Report,
Our businesses
Our environment
Regulatory and legal
developments
Risk factors
Financial and operating performance
85), and
Top and emerging risks
E—Critical Accounting
Estimates
Not applicable.
Annual Report 2025
Item 6.
A
– Directors and Senior
Management.
1, 2 and 3: Annual Report,
Board of Directors
(164-179) and
Group Executive Board
(180-188).
4, 5: None.
B – Compensation.
1: Annual Report,
Compensation
(194-237), Note 1a, 4) to the Financial Statements
(
Share-based and other deferred compensation plans
) (267-268), Note 26 to the Financial
Statements (
Employee benefits: variable compensation)
Financial Statements (
Related parties)
(349-350).
2: Annual Report,
Compensation
(194-237), and Note 25 to the Financial Statements
(
Post-employment benefit plans)
(334-339).
C – Board practices.
1: Annual Report,
Board of Directors
(164-179). The term of office for members of the
Board of Directors and its Chairman expires after completion of the next Annual General
Meeting. The next UBS Group AG Annual General Meeting is scheduled for 15 April
2026.
2: Annual Report,
Board of Directors
(164-179),
Compensation
(194-237),
Clauses on
change of control
Related parties
) (349-
350).
3: Annual Report,
Audit Committee
Compensation Committee
(174) and
Auditors
189-191).
D—Employees.
Annual Report,
(36-38).
UBS’s Human Rights Statement and the Code of Conduct and Ethics of UBS (the Code)
reinforce the firm’s responsibility for respecting workers’ rights. We actively engage with
our formal employee representation groups and specifically the UBS European Employee
Forum, which includes representatives from all the EU member states where the UBS
Group has a presence. This forum considers topics related to performance, operations and
workplace conditions, while local works councils focus on topics such as benefits,
workplace conditions and potential reorganizations. Together, they represent 51.8% of
our global workforce (2024: 52.0%). Where applicable, our operations are subject to
collective bargaining agreements.
UBS Group AG
As of
Full-time equivalents
31.12.25
31.12.24
31.12.23
Personnel (full-time equivalents)
103,177
108,648
112,842
Global Wealth Management
29,057
30,093
31,367
Personal & Corporate Banking
11,208
10,709
10,385
Asset Management
3,443
3,412
3,753
Investment Bank
11,559
11,235
11,305
Non-Core and Legacy
650
2,470
3,684
Group functions
47,261
50,728
52,348
E—Share Ownership.
1 and 2: Annual Report,
Compensation
(194-237), Note 26 to the Financial Statements
(
Employee benefits: variable compensation
) (340-343) and Note 29, b) to the Financial
Statements (Related Parties,
Equity holdings of key management personnel
)
(350).
F—Disclosure of a registrant’s
action to recover erroneously
awarded compensation.
Not applicable.
Annual Report 2025
Item 7.
A—Major Shareholders.
Annual Report,
Group structure and shareholders
(157-158),
(158-162) and
(162).
According to the mandatory FMIA disclosure notifications filed with UBS Group AG and
SIX, the following entities held more than 3% of the total voting rights of UBS Group
AG, with the following number of shares:
Shareholder, date of last notification
Number of shares disclosed
BlackRock Inc., New York, on 30 November 2023
173,509,685
Shareholder
Percentage of shares held (according to last
notification received up to end of given year)
2025
2024
2023
Norges Bank, Oslo
4.90
5.00
4.79
BlackRock Inc., New York
5.01
5.01
5.01
On 17 February 2026, Norges Bank, Oslo, disclosed a holding of less than 3% of the total
share capital of UBS Group AG. No new disclosures of significant shareholdings have
been made since that date.
B—Related Party Transactions.
1, 2: Annual Report,
Loans granted to GEB members
(231)
, Loans granted to BoD
members
(232)
and
Note 29 to the Financial Statements (
Related parties
)
(349-350).
C—Interests of Experts and
Counsel.
Not applicable.
Item 8
. Financial Information.
A—Consolidated Statements
and Other Financial
Information.
1, 2, 3, 4: Please see Item 18 of this Form 20-F.
5: Not applicable.
6: Annual Report,
Our businesses
Financial and operating performance
and Note 2b to the Financial Statements (
Segment reporting by geographic location
)
(274).
7: Information on material legal and regulatory proceedings is in Note 17 to the Financial
Statements (
Provisions and contingent liabilities
) (290-298).
For developments during the year, please see also the note
Provisions and contingent
liabilities
reports for the first, second and third quarters 2025, filed on Forms 6-K dated April 30,
2025, July 30, 2025 and October 29, 2025 (respectively), as well as the
Provisions and
contingent liabilities
February 4, 2026. The disclosures in each such quarterly report speak only as of their
respective dates.
8: Annual Report,
(151)
, Distributions to shareholders
(161).
B—Significant Changes.
None.
Item 9
. The Offer and Listing.
A
– Offer and Listing Details.
1, 2, 3, 5, 6, 7: Not applicable.
4: Annual Report,
Listing of UBS Group AG shares
(153).
B—Plan of Distribution.
Not applicable.
C—Markets.
Cover page (1).
Annual Report,
Listing of UBS Group AG shares
D—Selling Shareholders.
Not applicable.
E—Dilution.
Not applicable.
F—Expenses of the Issue.
Not applicable.
Annual Report 2025
Item 10
. Additional Information.
A—Share Capital.
Not applicable.
B—Memorandum and Articles
of Association.
1: Supplement (13-16).
2: Annual Report,
Compensation governance
(202-203),
Compensation for the
Board of
Directors
(221-223). Supplement (13-16).
3: Annual Report,
Share
capital structure
(158-162),
Shareholders' participation rights
(162-163),
Elections and terms of office
Change of control and defense measures
(189). Supplement (13-16).
4: Supplement (13-16).
5: Annual Report,
Shareholders' participation rights
6: Annual Report,
Transferability, voting rights and nominee registration
Shareholders' participation rights
7: Annual Report,
Change of control and defense measures
8: Annual Report,
Significant Shareholders
(157-158).
9: Supplement (13-16) and Annual Report, D
ifferences from corporate governance
standards relevant to US-listed companies
(156-157),
Compensation governance
(202-
203),
Compensation for the
Board of Directors
(221-223),
Share
capital structure
(158-
162),
Shareholders' participation rights
Elections and terms of office
Transferability, voting rights and nominee registration
Change of control and
defense measures
Significant Shareholders
(157-158).
10:
Supplement (13-16).
C—Material Contracts.
The Terms & Conditions of the several series of capital instruments issued to date, and to
be issued pursuant to Deferred Capital Contingent Plans, are exhibits 4.1 through 4.25 to
this Form 20-F. These notes are described under
Swiss SRB total loss-absorbing capacity
framework
Our deferred compensation plans
on pages 214-215 of the Annual Report.
The Asset Transfer Agreement by which certain assets and liabilities of UBS AG were
transferred to UBS Switzerland AG is filed as Exhibit 4.26, and is described under
Joint
liability of UBS AG and UBS Switzerland AG
on page 137 of the Annual Report.
For detailed information regarding material agreements concluded in connection with
litigation, please refer to Exhibits 4.27 and 4.28, the Annual Report, Note 17 to the
Financial Statements (
Provisions and Contingent Liabilities
) (290-298) and to the UBS
Group AG Annual Report 2024, Note 18 (
Provisions and Contingent Liabilities
) (304-
312). These sections contain information about material agreements executed by the
company or its subsidiaries during litigation matters in the 2025 and 2024 financial years,
respectively, which fall outside the usual business activities.
UBS AG entered into a definitive merger agreement with Credit Suisse AG on 7
December 2023, which was filed as Exhibit 4.22 to UBS's Annual Report on Form 20-F
for the fiscal year ended December 31, 2023. Also, UBS Switzerland AG and Credit
Suisse (Schweiz) AG entered into a merger agreement on 9 February 2024, which was
filed as Exhibit 4.23 to UBS's Annual Report on Form 20-F for the fiscal year ended
December 31, 2023. The mergers described in these agreements were carried out with
some procedural simplifications and without any consideration given that both companies
were, at the time of merger, wholly-owned by the same parent entity. Upon completion
on 31 May 2024 for UBS AG and on 1 July 2024 for UBS Switzerland AG, all assets and
liabilities of Credit Suisse AG and Credit Suisse (Schweiz) AG, respectively, were
transferred automatically to UBS AG and UBS Switzerland AG, respectively.
UBS Americas Inc and Credit Suisse (USA) LLC entered into a merger agreement on 2
February 2026 which became effective on that date. The merger was on a simplified basis
and without any consideration given that both companies were, at the time of merger,
wholly-owned by the same parent entity. Upon the effectiveness of the merger UBS
Americas Inc succeeded to all the assets and liabilities of Credit Suisse (USA) LLC in
accordance with the terms of the merger agreement.
Annual Report 2025
D—Exchange Controls.
Other than in relation to economic sanctions, there are no restrictions under the Articles
of Association of UBS Group AG, nor under Swiss law, as presently in force, that limit
the right of non-resident or foreign owners to hold UBS’s securities freely. There are
currently no Swiss foreign exchange controls or other Swiss laws restricting the import or
export of capital by UBS or its subsidiaries, nor restrictions affecting the remittance of
dividends, interest or other payments to non-resident holders of UBS securities. The
Swiss federal government may impose sanctions on particular countries, regimes,
organizations or persons which may create restrictions on exchange of control. A current
list, in German, French and Italian, of such sanctions can be found at www.seco-
admin.ch. UBS may also be subject to sanctions regulations from other jurisdictions
where it operates imposing further restrictions.
E—Taxation.
Supplement (17-19).
F—Dividends and Paying
Agents.
Not applicable.
G—Statement by Experts.
Not applicable.
H—Documents on Display.
UBS files periodic reports and other information with the Securities and Exchange
Commission. You may read and copy any document that we file with the SEC on the
SEC’s website,
www.sec.gov
. Much of this information may also be found on the UBS
website at
www.ubs.com/investors
.
I—Subsidiary Information.
Not applicable.
J—Annual Report to Security
Holders
Not applicable
Item 11
. Quantitative and Qualitative Disclosures About Market Risk.
(a) Quantitative Information
About Market Risk.
Annual Report,
Market risk
(111-118),
Total loss-absorbing capacity
(134-137), and
Currency management
(151).
(b) Qualitative Information
About Market Risk.
Annual Report,
Market risk
(111-118),
Total loss-absorbing capacity
(134-137), and
Currency management
(151).
(c) Interim Periods.
Not applicable.
Item 12.
A
– Debt Securities
Not applicable.
B – Warrants and Rights
Not applicable.
C – Other Securities
Not applicable.
D – American Depositary Shares
Not applicable.
Item 13
. Defaults, Dividend
Arrearages and Delinquencies.
There has been no material default in respect of any indebtedness of UBS or any of its
significant subsidiaries or any arrearages of dividends or any other material delinquency
not cured within 30 days relating to any preferred stock of UBS Group AG or any of its
significant subsidiaries.
Item 14.
to the Rights of Security Holders
and Use of Proceeds.
None.
Item 15.
(a)
Disclosure Controls and
Procedures
Annual Report,
US disclosure requirements
(192), and
Exhibit 12 to this Form 20-
F.
(b) Management’s Annual
Report on Internal Control over
Financial Reporting
Annual Report,
Management’s report on internal control over financial reporting
(c) Attestation Report of the
Registered Public Accounting
Firm
Annual Report,
Reports of Independent Registered Public Accounting Firm
(240-245).
(d) Changes in Internal Control
over Financial Reporting
None.
Item 16A.
Audit Committee
Financial Expert.
Annual Report,
Audit Committee
(173).
All Audit Committee members have accounting or related financial management
expertise and, in compliance with the rules established pursuant to the US Sarbanes-
Oxley Act of 2002, at least one member, the Chairperson Jeremy Anderson, qualifies as a
financial expert.
Item 16B.
Code of Ethics.
Annual Report,
The Code of Conduct and Ethics of UBS
(40).
UBS's Code of Conduct and Ethics (the Code) is published on our website under
https://www.ubs.com/code. The Code does not include a waiver option, and no waiver
from any provision of the Code was granted to any employee in 2025. Minor adjustments
were made following our 2025 review, focused on updating language to reflect relevant
developments, not affecting key elements of the Code.
Annual Report 2025
Item 16C.
Principal Accountant
Fees and Services.
Annual Report,
Auditors
None of the non-audit services so disclosed were approved by the Audit Committee
pursuant to paragraph (c) (7)(i)(C) of Rule 2-01 of Regulation S-X.
Item 16D.
Exemptions from the
Listing Standards for Audit
Committees.
Not applicable.
Item 16E.
Purchases of Equity
Securities by the Issuer and
Affiliated Purchasers.
Annual Report,
Holding of UBS Group AG shares
Letter to Shareholders
6).
Item 16F.
Changes in
Registrant’s Certifying
Accountant.
Not applicable.
Item 16G.
Corporate
Governance.
Annual Report,
companies
Item 16H.
Mine Safety
Disclosure.
Not applicable.
Item 16I.
Disclosure Regarding
Foreign Jurisdictions that
Prevent Inspections
Not applicable.
Item 16J.
Insider trading
policies.
UBS has
dispositions of its securities by its employees and senior management, implementing
procedures designed to promote compliance with relevant insider trading rules and
regulations:
UBS Group Global Policy on Personal Investment
,
UBS Group Pre-
Clearance and Disclosure Requirements for Group Senior Management
, and
UBS Group
Dealing in UBS Shares and UBS Long Term Debt Securities by UBS
. These are filed as
Exhibits 11.1, 11.2 and 11.3 hereto.
Item 16K.
Annual Report,
Operational risks affect our business
Risk management and
control
Board of Directors
Cybersecurity governance
Group Executive Board
Item 17.
Financial Statements.
Not applicable.
Item 18.
Annual Report,
Financial statements
(238-354),
Significant regulated subsidiary and
sub-group information
(355-356) and
Additional regulatory information
Item 19.
Exhibits
Supplement (20-21).
Annual Report 2025
Supplemental information
Item 4. Information on the Company
B – Business Overview
Item 4.B.2. Geographic breakdown of total revenues of UBS Group AG consolidated
UBS Group AG’s Financial Statements are prepared in accordance with IFRS Accounting Standards, as issued by the
International Accounting Standards Board and are stated in USD. The operating regions shown in the table below correspond to
the regional management structure of UBS. The allocation of total revenues to these regions reflects, and is consistent with, the
basis on which the business is managed and its performance is evaluated. These allocations involve assumptions and judgments
that management considers to be reasonable and may be refined to reflect changes in estimates or management structure. The
main principles of the allocation methodology are that client revenues are attributed to the domicile of the given client, and
trading and portfolio management revenues are attributed to the country where the risk is managed. This revenue attribution is
consistent with the mandate of the regional Presidents. Certain revenues, such as those related to Non-core and Legacy and
Group Items, are included in the
Global
For 2023, the allocation of total revenues by geographical region for Credit Suisse is not available on the same allocation basis
as for the UBS Group and the cost to develop this information would have been excessive. Therefore, as permitted under IFRS
8, the respective information is not disclosed. UBS AG and Credit Suisse AG disclosed total revenues by geographical region in
their 2023 annual reports according to their respective allocation methodologies.
USD billion
Business Division
FY
Americas
1
Asia Pacific
EMEA
Switzerland
Global
2
Total
Global Wealth
Management
2025
12.2
4.0
4.9
4.2
0.7
26.0
2024
11.3
3.6
4.7
4.1
0.9
24.5
2023
3
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Personal &
Corporate Banking
2025
0.0
0.0
0.0
9.2
0.0
9.2
2024
0.0
0.0
0.0
9.3
0.0
9.3
2023
3
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Asset Management
2025
0.9
0.4
0.5
1.4
0.0
3.2
2024
0.8
0.4
0.4
0.9
0.7
3.2
2023
3
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Investment Bank
2025
4.5
3.6
3.1
1.1
0.0
12.3
2024
4.8
2.9
2.6
0.7
0.0
10.9
2023
3
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Non-core and
Legacy
2025
0.0
0.0
0.0
0.0
0.2
2024
0.0
0.0
0.0
0.0
1.6
1.6
2023
3
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Group Items
2025
0.0
0.0
0.0
0.0
(1.2)
(1.2)
2024
0.0
0.0
0.0
0.0
(1.0)
(1.0)
2023
3
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Group
2025
8.0
8.5
15.8
(0.4)
49.6
2024
16.8
6.8
7.7
15.1
2.2
48.6
2023
3
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1
2
to geographical regions; 2024 includes certain revenues within Asset Management and Global Wealth Management that were
not allocated to geographical regions.
3
available on the same allocation basis as for the UBS Group and the cost to develop this information would have been excessive.
Therefore, as permitted under IFRS 8, the respective information is not disclosed.
Annual Report 2025
Disclosure Pursuant To Section 219 of the Iran Threat Reduction And Syrian Human Rights Act
Section 219 of the US Iran Threat Reduction and Syria Human Rights Act of 2012 (“ITRA”) added Section 13(r) to the US
Securities Exchange Act of 1934, as amended (the “Exchange Act”) requiring each SEC reporting issuer to disclose in its
annual and, if applicable, quarterly reports whether it or any of its affiliates have knowingly engaged in certain activities,
transactions or dealings relating to Iran or with the Government of Iran or certain designated natural persons or entities
involved in terrorism or the proliferation of weapons of mass destruction during the period covered by the report. The required
disclosure may include reporting of activities not prohibited by US or other law, even if conducted outside the US by non-US
affiliates in compliance with local law. Pursuant to Section 13(r) of the Exchange Act, we note the following for the period
covered by this annual report:
UBS has a Group Sanctions Policy that prohibits transactions involving sanctioned countries, including Iran, and sanctioned
individuals and entities. However, UBS Switzerland AG maintains one account involving the Iranian government under the
auspices of the United Nations in Geneva after agreeing with the Swiss government that it would do so only under certain
conditions. These conditions include that payments involving the account must: (1) be made within Switzerland; (2) be
consistent with paying rent, salaries, telephone and other expenses necessary for its operations in Geneva; and (3) not involve
any Specially Designated Nationals (SDNs) blocked or otherwise restricted under US or Swiss law. In 2025, the gross
revenues for this UN-related account were approximately USD 75,383 (CHF 59,773). We do not allocate expenses to specific
client accounts in a way that enables us to calculate net profits with respect to any individual account. UBS Switzerland AG
intends to continue maintaining this account pursuant to the conditions it has established with the Swiss Government and
consistent with its Group Sanctions Policy.
In connection with former and now-closed trade finance arrangements, UBS Switzerland AG has maintained one existing
account relationship with an Iranian bank. This account was established prior to the US designation of this bank and
maintained due to the existing trade finance arrangements. In 2007, following the designation of the bank pursuant to sanctions
issued by the US, UN and Switzerland, the account was blocked under Swiss law and remained subject to blocking
requirements until January 2016. The blocking requirements under the Swiss law were re-introduced in October 2025
following the re-imposition of UN sanctions. Client assets as of 31 December 2025 were CHF 3,097.40. Gross revenues were
USD 16 equivalent (CHF 13).
In addition to the above, UBS Switzerland AG processed a small number of de minimis payments related to the operation of
Iranian diplomatic missions in Switzerland and related to fees for ministerial government functions such as issuing passports
and visas.
Annual Report 2025
Item 10. Additional Information.
B—Memorandum and Articles of Association.
Please see the Articles of Association of UBS Group AG (Exhibit 1.1 to this Form 20-F) and the Organization Regulations of
UBS Group AG (Exhibit 1.2 to this Form 20-F).
Set forth below is a summary of material provisions of the Articles of Association of UBS Group AG (the “Articles”),
Organization Regulations of UBS Group AG (the “Organization Regulations”) and relevant Swiss laws, in particular the Swiss
Code of Obligations, relating to the ordinary shares of UBS Group AG (the “shares”). This description does not purport to be
complete and is qualified in its entirety by references to Swiss law, including Swiss company law, and to the Articles and
Organization Regulations.
The principal legislation under which UBS Group AG operates, and under which the shares are issued, is the Swiss Code of
Obligations.
The Company
Registration and Business Purpose
UBS Group AG was incorporated and registered as a corporation limited by shares (
Aktiengesellschaft
) under the laws of
Switzerland. UBS Group AG was entered into the commercial register of Canton Zurich on June 10, 2014 under the
registration number CHE-395.345.924 and has its registered domicile in Zurich, Switzerland. The business purpose of UBS
Group AG, as set forth in article 2 of the Articles, is the acquisition, holding, management and sale of direct and indirect
participations in enterprises of any kind, in particular in the area of banking, financial, advisory, trading and service activities
in Switzerland and abroad. UBS Group AG may establish enterprises of any kind in Switzerland and abroad, hold equity
interests in these companies, and conduct their management. UBS Group AG is authorized to acquire, mortgage and sell real
estate and building rights in Switzerland and abroad. UBS Group AG may provide loans, guarantees and other types of
financing and security for group companies and borrow and invest capital on the money and capital markets.
Repurchase of Shares
Swiss law limits a corporation’s ability to hold or repurchase its own shares. UBS Group AG and its subsidiaries may
repurchase shares only if and to the extent that (i) UBS Group AG has freely distributable reserves in the amount of the
purchase price and (ii) the aggregate nominal value of all shares held by UBS Group AG and its subsidiaries does not exceed
10% of UBS Group AG’s nominal share capital (or 20% of UBS Group AG’s nominal share capital in specific circumstances).
Repurchases for cancellation purposes approved by the shareholders’ meeting are not subject to the 10% threshold for own
shares within the meaning of article 659 paragraph 2 of the Swiss Code of Obligations. UBS Group AG must record
repurchased shares in its standalone financial statements prepared in accordance with Swiss law as a negative equity item in an
amount equal to the purchase price of each repurchased share. Furthermore, in UBS Group AG’s consolidated financial
statements, own shares are recorded at cost and reported as treasury shares, resulting in a reduction in total shareholders’
equity. Shares held by UBS Group AG or its subsidiaries do not carry any rights to vote at shareholders’ meetings, but are
entitled to the economic benefits applicable to UBS Group AG’s shares generally.
Sinking Fund Provisions
There are no provisions in Swiss law or in the Articles requiring us to put resources aside for the exclusive purpose of
redeeming bonds or repurchasing shares.
Duration and Liquidation
UBS Group AG has an unlimited duration.
Under Swiss law, we may be dissolved at any time by way of liquidation or in the case of a merger in accordance with the
Swiss Federal Act on Merger, Demerger, Transformation of Assets of October 3, 2003, as amended, based on a resolution
passed at a shareholders’ meeting with the approval of at least two-thirds of the votes, and a majority of the aggregate nominal
value of shares, in each case represented at such meeting. As UBS Group AG is the Swiss parent of a financial group, the
Swiss Financial Market Supervisory Authority FINMA is the only competent authority to open restructuring or liquidation
(bankruptcy) proceedings with respect to UBS Group AG.
Under Swiss law, any surplus arising out of a liquidation (after the settlement of all claims of all creditors) must be used first to
repay the nominal share capital of UBS Group AG. Thereafter, any balance must be distributed to shareholders in proportion to
the paid-up nominal value of shares held.
Independent Auditors
, Aeschengraben 27, 4051
, PCAOB number
, have been appointed as statutory
auditors and as auditors of the consolidated accounts of UBS Group AG. The auditors are subject to election each year by the
shareholders at the annual general meeting.
Annual Report 2025
Board of Directors
Conflicts of Interests
Swiss law requires directors and members of senior management to inform the BoD immediately and comprehensively of any
conflicts of interest affecting them. The BoD then has to take the measures required to safeguard the interests of the
corporation. Directors and officers are personally liable to the corporation for any breach of these provisions. In addition,
Swiss law contains a provision under which payments made to a shareholder, a director, a person involved in the corporation's
management activities and a member of the advisory board or any person associated therewith, other than at arm’s length, must
be repaid to the corporation if they were unduly taken.
In addition, the Organization Regulations provide that the member of the BoD or senior management with a conflict of interest
may participate in discussions and a double vote (meaning a vote with and a vote without the conflicted individual) shall take
place. A binding decision on the matter requires the same outcome in both votes. This is subject to exceptional circumstances
in which the best interests of UBS dictate that the member of the BoD or senior management with a conflict of interest shall
not participate in the discussions and decision-making involving the interest at stake.
Borrowing Power
Neither Swiss law nor the Articles restrict in any way our power to borrow and raise funds, provided that any such borrowing
is entered into on arms’ length terms.
UBS Group AG, as a listed company, may grant loans to members of its BoD based on the Articles. The Articles restrict UBS
Group AG’s ability to grant loans to BoD members as follows: First, loans to the independent members of the BoD shall be
made in accordance with the customary business and market conditions. Second, loans to the non-independent members of the
BoD shall be made in the ordinary course of business on substantially the same terms as those granted to UBS employees.
Third, the total amount of such loans shall not exceed CHF 20m per member.
Retirement of Board Members
There is no age-limit requirement for retirement of the members of the BoD. The term of office for each BoD member is until
the next annual general meeting of shareholders, and no BoD member may serve for more than 10 consecutive terms of office.
In exceptional circumstances the BoD can extend this limit.
Shares and Shareholders
Shares
The shares are registered shares
(Namenaktien)
securities (
einfache Wertrechte
) (in the sense of the Swiss Code of Obligations). The shares are fully paid up, and there is no
liability of shareholders to further capital calls by UBS Group AG. The shares rank
pari passu
including voting rights, entitlement to dividends, share of the liquidation proceeds in case of the liquidation of UBS Group AG,
preemptive rights in the event of a share issue (
Bezugsrechte
) and advance subscription rights in the event of the issuance of
equity-linked securities (
Vorwegzeichnungsrechte
).
The Articles provide that we may elect to print and deliver certificates for shares at any time. However, shareholders have no
right to request the printing and delivery of certificates for shares or the conversion of the shares into another form.
Net Profits and Dividends
Swiss law requires that at least 5% of the annual net profits of UBS Group AG must be retained and booked as statutory
retained earnings for so long as these retained earnings, together with the statutory capital reserve, amount to no less than 20%
of UBS Group AG’s share capital registered in the commercial register. Any remaining net profit may be allocated by the
shareholders represented at the applicable shareholders’ meeting.
Under Swiss law, dividends may be paid by UBS Group AG only if, based on its audited standalone statements prepared in
accordance with Swiss law, UBS Group AG has sufficient distributable profits from the previous financial years or sufficient
free reserves to allow the distribution of a dividend. In either event, dividends may be proposed by the BoD and will only be
paid by the corporation after approval by the shareholders’ meeting. UBS Group AG’s statutory auditors must confirm that any
dividend proposal of the BoD is in accordance with Swiss law and the Articles.
Dividends are usually due and payable after the shareholders’ resolution relating to the allocation of profits has been passed.
Under Swiss law, the statute of limitations in respect of dividend payments is five years (dividends not paid are allocated to a
special reserve of UBS Group AG).
Annual Report 2025
Share Register
Swiss law and the Articles require UBS Group AG to keep a share register in which the name, address and nationality (or
registered office in the case of legal entities) of the owners of the shares are recorded. The main function of the share register is
to register shareholders entitled to vote (and assert or exercise other rights relating to voting rights) and participate in
shareholders’ meetings. For such registration, shareholders must confirm that they have acquired UBS Group AG shares in
their own name and for their own account. If the shareholder refuses to make such declaration, it will be registered as a
shareholder without voting rights.
In order to register shares in UBS Group AG’s share register, a shareholder must file a share registration form with the share
register. Failing such registration, a shareholder may not vote at or participate in shareholders’ meetings, but will be entitled to
receive dividends and other rights with financial value, such as preemptive rights in the event of a share issue (
Bezugsrechte
)
and advance subscription rights in the event of the issuance of equity-linked securities (
Vorwegzeichnungsrechte
), and its share
of liquidation proceeds. Shareholders registered in our share register may at any time request from us a confirmation of the
shares that they hold according to our share register.
UBS Group AG’s share register is kept by UBS Shareholder Services, P.O. Box, 8098 Zurich, Switzerland. UBS Shareholder
Services is responsible for the registration of the shares. The share register is split into two parts – a Swiss register, which is
maintained by UBS Group AG, acting as Swiss share registrar, and a US register, which is maintained by Computershare Trust
Company NA, c/o Computershare Investor Services, P.O. Box 505000, Louisville, KY 40233-5000, United States, acting as
US transfer agent.
Transfer of Shares
The transfer of shares constituting intermediated securities (
Bucheffekten
) (within the meaning of the Swiss Federal
Intermediated Securities Act) is effected by entries in securities accounts in accordance with applicable law. The transfer of
shares that do not constitute intermediated securities is effected by way of a written declaration of assignment and may require
notice to UBS Group AG.
Shareholders’ Meetings
A shareholders’ meeting is convened by the Board of Directors (the “BoD”) or, if necessary, by the company’s statutory
auditors upon notification of the shareholders at least 20 days prior to such meeting. An invitation to any shareholders’ meeting
will be published in the Swiss Official Gazette of Commerce. The Articles do not require a minimum number of shareholders
to be present in order to hold a shareholders’ meeting.
Unless otherwise provided by Swiss law or the Articles (as indicated below), resolutions require the approval of a majority of
the votes represented, excluding blank and invalid ballots, at a shareholders’ meeting in order to be passed.
Under Swiss corporate law (or Swiss banking law, as the case may be), a resolution passed at a shareholders’ meeting with the
approval of at least two-thirds of the votes, and a majority of the aggregate nominal value of shares, in each case represented at
such meeting is required in order to approve:
●
A change in the corporation’s stated purpose in its articles of association;
●
The consolidation of shares, unless the consent of all the shareholders concerned is required;
●
The restriction or exclusion of preemptive rights in the event of a share issue (
Bezugsrechte
);
●
The conversion of participation certificates into shares;
●
The introduction of shares with preferential voting rights;
●
Any restriction on the transferability of registered shares;
●
Any change in the currency of the share capital;
●
The introduction of a casting vote for the person chairing the shareholders’ meeting;
●
A provision of the articles of association on holding the shareholders’ meeting abroad;
●
The delisting of the equity securities of the corporation;
●
The creation of conditional capital, the introduction of a capital band or, in accordance with Swiss banking law, the
introduction of reserve capital;
●
An increase in share capital in consideration of contributions in kind, or by off-set of a claim, or involving the
granting of special privileges, or from the transformation of reserves into share capital;
●
A change of domicile of the corporation;
●
The introduction of an arbitration clause in the articles of association;
●
Dissolution of the corporation.
Annual Report 2025
Under the Articles, a resolution passed at a shareholders’ meeting with the approval of at least two-thirds of the votes
represented at such meeting is required in order to approve:
●
A change to the provisions in the Articles regarding the number of members of the BoD;
●
Removal of one-quarter or more of the members of the BoD; or
●
The deletion or modification of the provision of the Articles establishing these supermajority requirements.
At shareholders’ meetings, a shareholder can be represented by a legal representative or under a written power of attorney by a
proxy who does not need to be a shareholder or, under a written or electronic power of attorney, by the independent proxy.
Votes and elections are generally conducted electronically to ascertain the exact number of votes cast. Voting by a show of
hands is possible if a clear majority is predictable. Shareholders representing at least 3% of the votes represented may always
request that a vote or election take place electronically or by a written ballot.
Preemptive and Advance Subscription Rights
Under Swiss law, any share issue, whether for cash or non-cash consideration or for no consideration, is subject to the prior
approval of the shareholders’ meeting. Existing shareholders of a Swiss corporation have certain preemptive rights in the event
of a share issue (
Bezugsrechte
) and advance subscription rights in the event of the issuance of equity-linked securities
(
Vorwegzeichnungsrechte
) to subscribe for the new shares or equity-linked securities, as the case may be, in proportion to the
nominal amount of shares held. However, the articles of association of the corporation or a resolution approved at a
shareholders’ meeting by at least two-thirds of the votes and a majority of the aggregate nominal value of the shares, in each
case represented at the meeting, may limit or exclude such preemptive or advance subscription rights in certain limited
circumstances.
Notices
Notices to shareholders are made by publication in the Swiss Official Gazette of Commerce. The BoD may designate further
means of communication for publishing notices to shareholders.
Mandatory Tender Offer
Under the applicable provisions of the Swiss Financial Market Infrastructure Act, anyone who directly or indirectly or acting in
concert with third parties acquires more than 33 1/3% of the voting rights (whether exercisable or not) of a Swiss-listed
company will have to submit a takeover bid to acquire all other listed equity securities of such company. A waiver from the
mandatory bid rule may be granted by the Swiss Takeover Board or the Swiss Financial Market Supervisory Authority
FINMA. If no waiver is granted, the mandatory takeover bid must be made pursuant to the procedural rules set forth in the
Swiss Financial Market Infrastructure Act and its implementing ordinances.
Annual Report 2025
E—Taxation.
This section outlines the material Swiss tax and US federal income tax consequences of the ownership of UBS Group AG's
ordinary shares (defined as "UBS ordinary shares " in this section) by a US holder (as defined below) who holds UBS ordinary
shares as capital assets. This discussion addresses only US federal income taxation and Swiss income and capital taxation and
does not discuss all of the tax consequences that may be relevant to holders in light of their individual circumstances, including
other foreign tax consequences, state or local tax consequences, estate and gift tax consequences, and tax consequences arising
under the Medicare contribution tax on net investment income or the alternative minimum tax. It is designed to explain the
major interactions between Swiss and US taxation for US persons who hold UBS ordinary shares.
The discussion does not address the tax consequences to persons who hold UBS ordinary shares in particular circumstances,
such as tax-exempt entities, banks, financial institutions, life insurance companies, broker-dealers, traders in securities that
elect to use a mark-to-market method of accounting for securities holdings, holders that actually or constructively own 10% or
more of the total combined voting power of the voting stock of UBS Group AG or of the total value of stock of UBS Group
AG, holders that hold UBS ordinary shares as part of a straddle or a hedging or conversion transaction, holders that purchase or
sell UBS ordinary shares as part of a wash sale for tax purposes or holders whose functional currency for US tax purposes is
not the US dollar. This discussion also does not apply to holders who acquired their UBS ordinary shares through a tax-
qualified retirement plan, nor generally to unvested UBS ordinary shares held under deferred compensation arrangements.
If a partnership (or other entity treated as a partnership for US federal income tax purposes) holds UBS ordinary shares, the US
federal income tax treatment of a partner will generally depend on the status of the partner and the tax treatment of the
partnership. A partner in a partnership holding the UBS ordinary shares should consult its tax advisor with regard to the US
federal income tax treatment of an investment in the ordinary shares.
The discussion is based on the tax laws of Switzerland and the United States, including the US Internal Revenue Code of 1986,
as amended, its legislative history, existing and proposed regulations under the Internal Revenue Code, published rulings and
court decisions, as in effect on the date of this document, as well as the Convention between the United States of America and
the Swiss Confederation for the Avoidance of Double Taxation with Respect to Taxes on Income (the “Treaty”), all of which
may be subject to change or change in interpretation, possibly with retroactive effect.
For purposes of this discussion, a “US holder” is any beneficial owner of UBS ordinary shares that is for US federal income
tax purposes:
●
A citizen or resident of the United States;
●
A domestic corporation or other entity taxable as a corporation;
●
An estate, the income of which is subject to US federal income tax without regard to its source; or
●
A trust, if a court within the United States is able to exercise primary supervision over the administration of the trust
and one or more US persons have the authority to control all substantial decisions of the trust.
Holders of UBS ordinary shares are urged to consult their tax advisors regarding the US federal, state and local and the Swiss
and other tax consequences of owning and disposing of these shares in their particular circumstances.
Dividends and Distributions
Dividends paid by UBS Group AG to a holder of UBS ordinary shares (including dividends on liquidation proceeds and stock
dividends) are in principle subject to a Swiss federal withholding tax at a rate of 35%.
Under the Capital Contribution Principle, the repayment of capital contributions, including share premiums made by the
shareholders after December 31, 1996 is in principle not subject to Swiss withholding tax if certain requirements regarding the
booking of these capital contributions are met.
Swiss companies listed on a Swiss stock exchange such as UBS Group AG can repay reserves from capital contributions to
their shareholders without deduction of Swiss withholding tax only if they distribute at least the same amount of taxable
dividends. For this reason UBS Group AG pays half of the dividend from capital contribution reserves and half of the dividend
from taxable dividends which is subject to 35% Swiss withholding tax.
Annual Report 2025
A US holder resident in the US that qualifies for Treaty benefits may apply for a refund of the withholding tax withheld in
excess of the 15% Treaty rate (or for a full refund in case of qualifying retirement arrangements). The claim for refund must be
filed with the Swiss Federal Tax Administration, Eigerstrasse 65, CH-3003 Berne, Switzerland no later than December 31 of
the third year following the end of the calendar year in which the income subject to withholding was due. The form used for
obtaining a refund is one of the Swiss Tax Forms 82 (82 C for US companies; 82 E for other US entities; 82 I for individuals;
82 R for regulated investment companies), which may be obtained from the Swiss Federal Tax Administration at the address
above or downloaded from the web page of the Swiss Federal tax Administration. The form must be filled out in triplicate with
each copy duly completed and signed before a notary public in the United States. The form must be accompanied by evidence
of the deduction of withholding tax withheld at the source.
A US holder resident outside the US may be eligible for a withholding tax reclaim. If the US holder is resident in Switzerland,
a full reclaim based on the Swiss withholding tax Act is possible provided all necessary conditions are met. A US holder
resident neither in the US nor in Switzerland may be eligible for a partial reclaim provided that a Treaty between Switzerland
and the country of residence is applicable and that all necessary conditions are met.
Transfers of UBS Ordinary Shares
The purchase or sale of UBS ordinary shares, whether by Swiss resident or non-resident holders (including US holders), may
be subject to a Swiss securities transfer stamp duty of up to 0.15% calculated on the purchase price or sale proceeds if it occurs
through or with a bank or other securities dealer as defined in the Swiss Federal Stamp Tax Act in Switzerland or the
Principality of Liechtenstein. In addition to the stamp duty, the sale of UBS ordinary shares by or through a member of a
recognized stock exchange may be subject to a stock exchange levy.
Capital gains realized by a US holder upon the sale of UBS ordinary shares are not subject to Swiss income or gains taxes,
unless such US holder holds such shares as business assets of a Swiss business operation qualifying as a permanent
establishment. In the latter case, gains are taxed at ordinary Swiss individual or corporate income tax rates, as the case may be,
and losses are deductible for purposes of Swiss income taxes. Furthermore, a US holder who is an individual resident in
Switzerland and holds such shares as business assets (as he qualifies as a professional trader of securities as per Swiss tax law)
may be liable to Swiss income taxes on gains.
(b) Ownership of UBS Ordinary Shares - US Federal Income Taxation
The tax treatment of the UBS ordinary shares will depend in part on whether or not UBS Group AG is classified as a passive
foreign investment company, or PFIC, for US federal income tax purposes. Except as discussed below under “—Passive
Foreign Investment Company (PFIC) Rules”, this discussion assumes that UBS Group AG is not classified as a PFIC for
United States federal income tax purposes.
Dividends and Distributions
A US holder will include in gross income and treat as a dividend the gross amount of any distribution paid, before reduction
for Swiss withholding taxes, by UBS Group AG out of its current or accumulated earnings and profits (as determined for US
federal income tax purposes), other than certain pro-rata distributions of UBS ordinary shares, when the distribution is actually
or constructively received by the US holder. Distributions in excess of current and accumulated earnings and profits (as
determined for US federal income tax purposes) will be treated as a return of capital to the extent of the US holder’s basis in its
UBS ordinary shares and thereafter as capital gain. However, UBS Group AG does not expect to calculate earnings and profits
in accordance with US federal income tax principles. Accordingly, a US holder should expect to generally treat distributions
made on UBS ordinary shares as dividends.
Dividends paid to a noncorporate US holder that constitute qualified dividend income will be taxable to the holder at
preferential rates, provided that the holder has a holding period in the shares of more than 60 days during the 121-day period
beginning 60 days before the ex-dividend date and meets other holding period requirements. Dividends paid by UBS Group
AG with respect to the ordinary shares will generally be qualified dividend income provided that, in the year that the US holder
receives the dividend, the UBS ordinary shares are readily tradable on an established securities market in the United States.
The UBS ordinary shares are listed on the New York Stock Exchange, and UBS Group AG therefore expects that dividends
will be qualified dividend income.
For US federal income tax purposes, a dividend will include a distribution characterized under Swiss law as a repayment of
capital contributions if the distribution is made out of current or accumulated earnings and profits, as described above.
Dividends will generally be income from sources outside the United States for foreign tax credit limitation purposes, and will
generally be "passive" income for purposes of computing the foreign tax credit allowable to the holder. However, if (a) we are
50% or more owned, by vote or value, by US persons and (b) at least 10% of our earnings and profits are attributable to
sources within the United States, then for foreign tax credit purposes, a portion of our dividends would be treated as derived
from sources within the United States. With respect to any dividend paid for any taxable year, the US source ratio of our
dividends for foreign tax credit purposes would be equal to the portion of our earnings and profits from sources within the
United States for such taxable year, divided by the total amount of our earnings and profits for such taxable year. Special rules
apply in determining the foreign tax credit limitation with respect to dividends that are subject to preferential rates. The
dividend will not be eligible for the dividends-received deduction generally allowed to US corporations in respect of dividends
received from other US corporations.
Annual Report 2025
Dividends on the UBS ordinary shares are taxable to a US holder when the US holder receives the dividends, actually or
constructively. In the case of dividends that are paid in Swiss francs, the amount of the dividend distribution included in
income of a US holder will be the US dollar value of the Swiss franc payments made, determined at the spot Swiss franc/US
dollar rate on the date such dividend distribution is includible in the income of the US holder, regardless of whether the
payment is in fact converted into US dollars. Generally, any gain or loss resulting from currency exchange fluctuations during
the period from the date the dividend payment is included in income to the date such dividend payment is converted into US
dollars will be treated as ordinary income or loss and will not be eligible for the special tax rate applicable to qualified
dividend income. Such gain or loss will generally be income or loss from sources within the United States for foreign tax credit
limitation purposes.
Subject to US foreign tax credit limitations, the nonrefundable Swiss tax withheld and paid over to Switzerland will generally
be creditable or deductible against the US holder’s US federal income tax liability. Special rules apply in determining the
foreign tax credit limitation with respect to dividends that are subject to the preferential tax rates. To the extent a reduction or
refund of the tax withheld is available to a US holder under the laws of Switzerland or under the Treaty, the amount of tax
withheld that is refundable will not be eligible for credit against the US holder’s US federal income tax liability, whether or not
the refund is actually obtained. See “(a) Ownership of UBS Ordinary Shares – Swiss Taxation” above, for the procedures for
obtaining a tax refund.
Transfers of UBS Ordinary Shares
A US holder that sells or otherwise disposes of UBS ordinary shares generally will recognize capital gain or loss for US federal
income tax purposes equal to the difference between the US dollar value of the amount realized and its tax basis, determined in
US dollars, in such UBS ordinary shares. Capital gain of a non-corporate US holder is generally taxed at preferential rates if
the UBS ordinary shares were held for more than one year. The gain or loss will generally be income or loss from sources
within the United States for foreign tax credit limitation purposes. A US holder will not be allowed a foreign tax credit in
respect of any stamp duty or stock exchange levy that is imposed upon a transfer of UBS ordinary shares.
Passive Foreign Investment Company (PFIC) Rules
UBS Group AG believes that it should not currently be classified as a PFIC for US federal income tax purposes, and it does not
expect to become a PFIC in the foreseeable future. However, this conclusion is a factual determination made annually and
thus may be subject to change. In addition, UBS Group AG’s current position that it is not currently, and it does not expect to
become, a PFIC is based on the position that UBS Group AG qualifies for a special rule that treats income recognized by a
bank in the active conduct of a banking business as active income for PFIC purposes (the “active bank exception”). It is
possible, however, that UBS Group AG may not satisfy the requirements of the active bank exception in the current or a future
taxable year, or that the U.S. Internal Revenue Service may issue guidance in the future under which UBS Group AG would
not satisfy the requirements of the active bank exception. It is therefore possible that UBS Group AG could become a PFIC in
a future taxable year. In general, UBS Group AG will be a PFIC with respect to a US holder if, for any taxable year in which
the US holder held UBS ordinary shares, either (i) at least 75% of the gross income of UBS Group AG for the taxable year is
passive income or (ii) at least 50% of the value, determined on the basis of a quarterly average, of UBS Group AG’s assets is
attributable to assets that produce or are held for the production of passive income (including cash). “Passive income”
generally includes dividends, interest, gains from the sale or exchange of investment property rents and royalties and certain
other specified categories of income. If a foreign corporation owns at least 25% by value of the stock of another corporation,
the foreign corporation is treated for purposes of the PFIC tests as owning its proportionate share of the assets of the other
corporation, and as receiving directly its proportionate share of the other corporation's income.
If UBS Group AG were to be treated as a PFIC, special rules apply with respect to (i) any gain a US holder realizes on the sale
or other disposition of UBS ordinary shares, and (ii) any excess distribution that UBS Group AG makes to a US holder
(generally, any distributions to the US holder during a single taxable year, other than the taxable year in which the US holder’s
holding period in the UBS ordinary shares begins, that are greater than 125% of the average annual distributions received by
the US holder in respect of the UBS ordinary shares during the three preceding taxable years or, if shorter, the US holder’s
holding period for the UBS ordinary shares that preceded the taxable year in which the US holder receives the distribution).
Under these rules: (i) the gain or excess distribution will be allocated ratably over the US holder’s holding period for the UBS
ordinary shares, (ii) the amount allocated to the taxable year in which the US holder realized the gain or excess distribution or
to prior years before the first year in which UBS Group AG is a PFIC with respect to the US holder will be taxed as ordinary
income, (iii) the amount allocated to each other prior year will be taxed at the highest tax rate in effect for that year, and (iv)
the interest charge generally applicable to underpayments of tax will be imposed in respect of the tax attributable to each such
year.
Special rules apply for calculating the amount of the foreign tax credit with respect to excess distributions by a PFIC. With
certain exceptions, a US holder’s UBS ordinary shares will be treated as stock in a PFIC if UBS Group AG was a PFIC at any
time during the holder’s holding period in the UBS ordinary shares. In addition, dividends received from UBS Group AG
would not be eligible for the preferential tax rate applicable to qualified dividend income if UBS Group AG were to be treated
as a PFIC either in the taxable year of the distribution or the preceding taxable year, but would instead be taxable at rates
applicable to ordinary income. If a US holder owns UBS ordinary shares during any year that UBS Group AG is PFIC with
respect to the US holder, the US holder may be required to file Internal Revenue Service Form 8621.
Annual Report 2025
Item 19. Exhibits.
Exhibit
number
Description
1.1
Articles of Association of UBS Group AG dated 10 April 2025
. (Incorporated by reference to Form 6-K of UBS
Group AG filed on April 17, 2025)
1.2
Organization Regulations of UBS Group AG dated 5 January 2026
.
2(b)
Instruments defining the rights of the holders of long-term debt issued by UBS Group AG and its subsidiaries.
We agree to furnish to the SEC upon request, copies of the instruments, including indentures, defining the rights of
the holders of our long-term debt and of our subsidiaries’ long-term debt.
2(d)
Description of securities registered under Section 12 of the Securities Exchange Act of 1934
.
4.1
Terms and Conditions of USD 750 million 5.125% Tier 1 Subordinated Notes issued on 29 July 2020 by UBS
Group AG.
(Incorporated by reference to Exhibit 4.20 to UBS's Annual Report on Form 20-F for the fiscal year
ended December 31, 2020)
4.2
Terms and Conditions of USD 1.5 billion 4.375% Tier 1 Subordinated Notes issued on 10 February 2021 by UBS
Group AG
.
(Incorporated by reference to Exhibit 4.21 to UBS's Annual Report on Form 20-F for the fiscal year
ended December 31, 2020)
4.3
Terms and Conditions of additional Tier 1 capital instruments issued pursuant to the Deferred Contingent Capital
Plan 2020/21.
(Incorporated by reference to Exhibit 4.22 to UBS's Annual Report on Form 20-F for the fiscal year
ended December 31, 2020)
4.4
Terms and Conditions of USD 750 million 3.875% Tier 1 Subordinated Notes issued on 02 June 2021 by UBS
Group AG.
(Incorporated by reference to Exhibit 4.18 to UBS's Annual Report on Form 20-F for the fiscal year
ended December 31, 2021)
4.5
Terms and Conditions of USD 1.5 billion 4.875% Tier 1 Subordinated Notes issued on 12 January 2022 by UBS
Group AG.
(Incorporated by reference to Exhibit 4.19 to UBS's Annual Report on Form 20-F for the fiscal year
ended December 31, 2021)
4.6
Terms and Conditions of CHF 265 million 3.375% Tier 1 Subordinated Notes issued on 16 February 2022 by UBS
Group AG.
(Incorporated by reference to Exhibit 4.20 to UBS's Annual Report on Form 20-F for the fiscal year
ended December 31, 2021)
4.7
Terms and Conditions of additional Tier 1 capital instruments issued pursuant to the Deferred Contingent Capital
Plan 2021/22.
ended December 31, 2021)
4.8
Terms and Conditions of additional Tier 1 capital instruments issued pursuant to the Deferred Contingent Capital
Plan 2022/23.
ended December 31, 2022)
4.9
Terms and Conditions of USD 1.75 billion 9.250% Tier 1 Subordinated Notes issued on 13 November 2023 by
UBS Group AG, first call date 13 November 2028
.
Report on Form 20-F for the fiscal year ended December 31, 2023)
4.10
Terms and Conditions of USD 1.75 billion 9.250% Tier 1 Subordinated Notes issued on 13 November 2023 by
UBS Group AG, first call date 13 November 2033
.
Report on Form 20-F for the fiscal year ended December 31, 2023)
4.11
Terms and Conditions of additional Tier 1 capital instruments issued pursuant to the Deferred Contingent Capital
Plan 2023/24
. (Incorporated by reference to Exhibit 4.18 to UBS's Annual Report on Form 20-F for the fiscal year
ended December 31, 2023)
4.12
Terms and Conditions of USD 1 billion 7.750% Tier 1 Subordinated Notes issued on 12 February 2024 by UBS
Group AG, first call date 12 April 2031
. (Incorporated by reference to Exhibit 4.19 to UBS's Annual Report on
Form 20-F for the fiscal year ended December 31, 2023)
4.13
Terms and Conditions of SGD 650 million 5.750% Tier 1 Subordinated Notes issued on 21 February 2024 by UBS
Group AG, first call date 21 August 2029
. (Incorporated by reference to Exhibit 4.20 to UBS's Annual Report on
Form 20-F for the fiscal year ended December 31, 2023)
4.14
Terms and Conditions of additional Tier 1 capital instruments issued pursuant to the Deferred Contingent Capital
Plan 2024/25.
(Incorporated by reference to Exhibit 4.19 to UBS's Annual Report on Form 20-F for the fiscal year
ended December 31, 2024)
Annual Report 2025
4.15
Terms and Conditions of SGD 675 million 5.6% Tier 1 Subordinated Notes issued on 24 June 2024 by UBS Group
AG, first call date 21 December 2029.
(Incorporated by reference to Exhibit 4.20 to UBS's Annual Report on Form
20-F for the fiscal year ended December 31, 2024)
4.16
Terms and Conditions of USD 1.5 billion 6.850% Tier 1 Subordinated Notes issued on 10 September 2024 by
UBS Group AG, first call date 10 September 2029.
(Incorporated by reference to Exhibit 4.21 to UBS's Annual
Report on Form 20-F for the fiscal year ended December 31, 2024)
4.17
Terms and Conditions of USD 1.5 billion 7% Tier 1 Subordinated Notes issued on 10 February 2025 by UBS
Group AG, first call date 10 February 2030.
(Incorporated by reference to Exhibit 4.22 to UBS's Annual Report on
Form 20-F for the fiscal year ended December 31, 2024)
4.18
Terms and Conditions of USD 1.5 billion 7.125% Tier 1 Subordinated Notes issued on 10 February 2025 by UBS
Group AG, first call date 10 August 2034.
(Incorporated by reference to Exhibit 4.23 to UBS's Annual Report on
Form 20-F for the fiscal year ended December 31, 2024)
4.19
Terms and Conditions of USD 750 million 6.6% Tier 1 Subordinated Notes issued on 5 August 2025 by UBS
Group AG, first call date 5 August 2030
.
4.20
Terms and Conditions of USD 1.25 billion 7% Tier 1 Subordinated Notes issued on 5 August 2025 by UBS Group
AG, first call date 5 February 2035
.
4.21
Terms and Conditions of AUD 1.25 billion 6.375% Tier 1 Subordinated Notes issued on 29 September 2025 by
UBS Group AG, first call date 29 September 2030
.
4.22
Terms and Conditions of USD 1.5 billion 6.625% Tier 1 Subordinated Notes issued on 8 January 2026 by UBS
Group AG, first call date 8 January 2031
.
4.23
Terms and Conditions of USD 1.5 billion 7% Tier 1 Subordinated Notes issued on 8 January 2026 by UBS Group
AG, first call date 8 January 2036
.
4.24
Terms and Conditions of AUD 1 billion 7.125% Tier 1 Subordinated Notes issued on 13 February 2026 by UBS
Group AG, first call date 13 August 2032
.
4.25
Terms and Conditions of additional Tier 1 capital instruments issued pursuant to the Deferred Contingent Capital
Plan 2025/26
.
4.26
Asset Transfer Agreement between UBS AG and UBS Switzerland AG dated 12 June 2015.
(Incorporated by
reference to Form 6-K of UBS AG filed on June 17, 2015)
4.27
US v. Credit Suisse Service AG Plea Agreement dated May 5, 2025
.
4.28
US v. Credit Suisse Service AG Non-Prosecution Agreement dated May 5, 2025
.
8
Significant Subsidiaries of UBS Group AG.
Please see Note 27 to the Financial Statements (
Interests in subsidiaries and other entities),
the Annual Report.
11.1
UBS Group Global Policy on Personal Investment
.
11.2
UBS Group Pre-Clearance and Disclosure Requirements for Group Senior Management.
(Incorporated by
reference to Exhibit 11.2 to UBS Group AG's Annual Report on Form 20-F for the fiscal year ended December 31,
2024)
11.3
UBS Group Dealing in UBS Shares and UBS Long Term Debt Securities by UBS.
(Incorporated by reference to
Exhibit 11.3 to UBS Group AG's Annual Report on Form 20-F for the fiscal year ended December 31, 2024)
12
The certifications required by Rule 13(a)-14(a) (17 CFR 240.13a-14(a))
.
13
The certifications required by Rule 13(a)-14(b) (17 CFR 240.13a-14(b)) and Section 1350 of Chapter 63 of Title
18 of the U.S. Code (18 U.S.C. 1350)
.
15
Consent of Ernst & Young Ltd. with respect to UBS Group AG
.
17
Guaranteed securities
97
UBS Group U.S Listing Standards Clawback Policy.
(Incorporated by reference to Exhibit 97 to UBS's Annual
Report on Form 20-F for the fiscal year ended December 31, 2023)
101
Interactive Data Files (sections of the Annual Report formatted in inline XBRL (Extensible Business Reporting
Language)). Furnished electronically herewith.
Annual Report 2025
SIGNATURES
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly
caused the undersigned to sign this annual report on its behalf.
UBS Group AG
_/s/ Sergio Ermotti ____________
Name: Sergio Ermotti
Title: Group Chief Executive Officer
_/s/ Todd Tuckner ______________
Name: Todd Tuckner
Title: Group Chief Financial Officer
_/s/ Steffen Henrich_____________
Name: Steffen Henrich
Title: Group Controller
Date: March 9, 2026
Our external reporting approach
The scope and content of our external reports are determined by Swiss legal and regulatory requirements, accounting
standards, relevant stock and debt listing rules, including regulations promulgated by the Swiss Financial Market
Supervisory Authority (FINMA), the SIX Swiss Exchange, the US Securities and Exchange Commission (the SEC) and other
regulatory requirements, as well as by our financial reporting policies.
At the center of our external reporting approach is the annual report of the UBS Group, which consists of disclosures for
UBS Group AG and its consolidated subsidiaries. We also provide a separate annual report for UBS AG on a sub-
consolidated basis. Both of the aforementioned annual reports are the basis for the corresponding 2025 SEC Form 20-F
filings for UBS Group AG and UBS AG. For filing purposes in the European Union, the UBS AG Annual Report also includes
disclosures required by the EU Non-financial Reporting Directive (the NFRD) and the EU Taxonomy Regulation.
Annual Reports
The UBS Group Annual Report 2025 and the UBS AG Annual Report 2025 include the consolidated financial statements
of UBS Group AG and UBS AG, respectively, and together provide comprehensive information about our Group, including
strategy, businesses, financial and operating performance, and other key information.
The consolidated financial statements of UBS Group AG and UBS AG have been prepared in accordance with IFRS
Accounting Standards. The sections within “Risk, capital, liquidity and funding, and balance sheet“ include certain
audited financial information, which forms part of the consolidated financial statements. The UBS Group and UBS AG
reports are presented in US dollars.
The UBS Group Annual Report 2025 is partly translated into German.
Sustainability Report
The UBS Group Sustainability Report 2025 provides our Swiss-law-governed disclosures on environmental, social and
governance (ESG) topics.
Standalone reports of UBS Group AG and significant regulated entities
We publish separate 2025 statutory financial statements for UBS Group AG, which are the basis for our proposed
appropriation of total profit and dividend distribution, subject to shareholder approval at the Annual General Meeting.
We also publish standalone reports for UBS AG and UBS Switzerland AG. Selected financial and regulatory key figures
for our significant regulated subsidiaries and sub-groups are included in the UBS Group Annual Report.
Pillar 3 Report of UBS Group AG including significant regulated entities and sub-groups
The Pillar 3 Report as of 31 December 2025 provides detailed quantitative and qualitative information about risk, capital,
leverage, and liquidity and funding for the UBS Group and prudential key figures and regulatory information for our
significant regulated subsidiaries and sub-groups. Scopes subject to disclosure are UBS Group AG consolidated, UBS AG
consolidated and standalone, UBS Switzerland AG standalone, UBS Europe SE consolidated, UBS Americas Holding LLC
consolidated and Credit Suisse International standalone.
Contents
2
Letter to shareholders
8
Our key figures
10
Our Board of Directors
12
Our Group Executive Board
14
Our evolution
1
Our strategy, business model and
environment
15
Integration of Credit Suisse
17
Our strategy
19
Targets, capital guidance and ambitions
21
Our businesses
28
Our environment
34
Our stakeholders
41
Regulation and supervision
45
Regulatory and legal developments
50
Risk factors
2
Financial and
operating performance
62
Accounting and financial reporting
63
Group performance
71
Global Wealth Management
75
Personal & Corporate Banking
78
Asset Management
81
Investment Bank
83
Non-core and Legacy
85
Group Items
3
Risk, capital, liquidity and funding,
and balance sheet
88
Risk management and control
131
Capital management
142
Liquidity and funding management
145
Balance sheet and off-balance sheet
151
Currency management
152
UBS shares
4
Corporate governance
and compensation
155
Corporate governance
193
Compensation
5
Financial statements
238
Consolidated financial statements
6
Significant regulated subsidiary and sub-
group information
355
Financial and regulatory key figures for our significant
regulated subsidiaries and sub-groups
7
Additional
regulatory information
358
UBS Group AG consolidated supplemental disclosures
required under SEC regulations
A
Appendix
366
Alternative performance measures
371
Abbreviations frequently used in our financial reports
373
Information sources
374
Cautionary statement
Annual Report 2025 |
Letter to shareholders 2
Dear shareholders,
The year 2025 proved another pivotal chapter for UBS. We helped clients navigate a complex global environment,
delivered excellent financial performance, fulfilled our commitments to stakeholders and rewarded shareholders with
attractive capital returns. Our unique global business model was the bedrock for these achievements, enabling clients to
manage uncertainty and seize new opportunities.
We also made decisive progress with the integration of Credit Suisse, one of the most complex mergers in banking history.
This further strengthened our position as the world’s only truly global wealth manager and Switzerland’s leading bank,
supported by strong capabilities in asset management and investment banking.
Our performance puts us firmly on track to meet our targets for the end of 2026 and beyond. We are proud of what we
have accomplished together and remain committed to delivering sustainable growth and long-term value for our clients,
shareholders, employees and the communities where we live and work.
We advanced our integration of Credit Suisse at pace
In 2025, we achieved several of the most important milestones in integrating Credit Suisse, including the bulk of the
client account migrations.
We transitioned all client accounts booked outside of Switzerland and 85% of those booked in Switzerland to UBS
platforms and are on track to carry out the remaining client transfers by the end of March. We also finished the integration
of Asset Management (AM), including the final portfolio migrations onto UBS platforms.
After delivering further efficiency improvements, we exceeded our cost-reduction targets, with cumulative gross cost
savings reaching USD 10.7
billion in 2025, above our guidance of around USD 10 billion. This reflects our progress in
decommissioning legacy technology applications and infrastructure, and in simplifying our legal entity structure. We
identified an additional USD 0.5 billion of incremental gross cost savings, taking the planned cumulative total to
USD 13.5 billion by the end of 2026.
Our Non-core and Legacy (NCL) unit continued to wind down non-strategic positions and reduce exposures. Since its
inception in 2023, NCL has freed up USD
8
billion of capital and reduced its risk-weighted assets by two-thirds and its
underlying operating expenses by around 80% compared with the full-year
2022 baseline. We also exited the costliest
debt inherited from Credit Suisse, which was issued at distressed spreads prior to the acquisition, and resolved several
outstanding legacy litigation matters.
Our efforts in streamlining our post-acquisition balance sheet are complete. This gives us confidence that over the
economic cycle we will be capable of delivering revenues of around 10% on our average risk-weighted assets. That
stronger footing, coupled with the capital efficiency embedded in how we allocate resources across the Group, means
we are well positioned to deploy incremental balance sheet to support profitable revenue growth across our core
businesses.
Our progress so far has kept us on track to substantially complete the integration by the end of 2026 and meet our 2026
exit-rate targets.
We achieved excellent financial results
Our 2025 financial performance was excellent based on strong operating leverage, with net profit rising 53% year on
year to USD 7.8 billion and Group invested assets surpassing USD
7
trillion for the first time. Underlying profit before tax
rose by 33% to USD 11.7
billion, while reported profit before tax increased by 30% to USD 8.9
billion.
Total operating expenses on a reported basis decreased by around 2.5% year-on-year to USD
40.2
billion, and around
2.3% to USD 35.6
billion on an underlying basis. This reflects our successful cost-reduction initiatives in driving integration
synergies, which helped improve the Group’s reported cost / income ratio to 81.1%, or 74.4% on an underlying basis.
All regions made a strong contribution to our full-year performance, underscoring the power of our diversified model
and unrivaled global connectivity. Switzerland remains our anchor, making the largest contribution to our underlying pre-
tax profit across core businesses and achieving solid year-on-year growth. Outside of Switzerland, each region – Asia
Pacific, EMEA and the Americas – delivered robust underlying profitability and growth. These results provide clear
evidence that our scale, reach and disciplined integration are building a more balanced earnings profile, positioning us
to perform through the cycle and to capitalize on growth opportunities.
Global Wealth Management (GWM), our largest division, continued to deliver growth with reported profit before tax
rising to USD 5.2 billion and USD
6.3 billion on an underlying basis. GWM’s full-year underlying revenues grew by 7.4%
to USD
25.4
billion, as we continued to leverage our global reach, regional expertise and connectivity with the Investment
Bank (IB), AM and Personal & Corporate Banking (P&C) to deliver advice and solutions to clients.
Annual Report 2025 |
Letter to shareholders 3
The reported profit before tax for P&C was CHF 2.1
billion and CHF 2.4
billion on an underlying basis. Our custody assets
increased, due in part to healthy growth in net new investment products in 2025.
P&C’s performance in 2025 reflects
our commitment to stay close to clients while executing one of the industry’s most complex client account migrations
ever.
In AM, reported profit before tax increased to USD 719
million, and USD
975
million on an underlying basis, reflecting
positive operating leverage and the substantial completion of our integration priorities. Net new money reached USD
30.4
billion.
The IB saw reported profit before tax rise by nearly half to USD 2.8 billion and USD
2.7
billion on an underlying basis.
Global Markets delivered its best full-year revenues since 2013, increased its market share in equities, Foreign Exchange
and precious metals, and was recognized by
Euromoney
We generated attractive capital returns
We maintained a robust capital position, with a reported common equity tier 1 (CET1) ratio of 14.4% and a CET1 leverage
ratio of 4.4%, both comfortably above our guidance.
At the same time, our performance enables us to fulfill our commitment to you, our shareholders, to provide sustainably
higher returns. In 2025, our shareholders benefited from USD 6.4 billion in total capital returns, with USD 3.4 billion
coming in the form of planned dividends and the rest as share repurchases.
For the 2025 financial year, the Board of Directors intends to propose a dividend of USD
1.10 per share, an increase of
22% year over year, subject to approval at the Annual General Meeting.
In 2026, we are accruing for a mid-teen percentage increase in dividend per share. We also intend to repurchase USD 3
billion of shares in 2026, with the aim to do more. The amount of additional buybacks is subject to further clarity around
the future regulatory regime in Switzerland, our financial performance and maintaining a CET1 capital ratio of around
14%.
Beyond 2026, we intend to continue to pursue a progressive dividend, complemented by share repurchases that will be
calibrated based on our financial results, our capital ratio and the final outcome, and timing, of the implementation of
the new regulatory regime in Switzerland.
We continued to be a pillar of Swiss prosperity
In 2025, we were a steadfast partner to Swiss businesses and households. Our balance sheet for all seasons enabled us
to grant or renew around CHF 80 billion in loans, part of our continued commitment of approximately CHF 350
billion
in total lending to support growth and opportunities across Switzerland.
As the country’s third-largest private employer, and a purchaser of nearly CHF 4
billion of Swiss goods and services each
year, we play a vital role in supporting the Swiss economy. Our longstanding presence has helped cultivate talent across
the financial sector and beyond, with many industry leaders having developed their expertise at UBS or one of its
predecessors. As a partner to the Swiss economy, we stand at the center of a vibrant and diversified financial ecosystem,
supporting innovative start-ups and investing in the future. By scaling innovation and fostering partnerships, we help
create new jobs and ensure Switzerland continues to punch above its weight on many economic measures.
As the leading player in wealth management in Switzerland, our firm, along with other financial institutions, contributes
to a healthy funding environment in our home nation. Together we attract international assets that increase the supply
of funds and help keep interest rates lower for Swiss families and businesses, directly supporting national prosperity.
The financial center provides other benefits to Switzerland as well. It accounts for over 5% of jobs and around 9% of
gross domestic product.
And in recent years the financial sector has often paid more than one-third of all corporate taxes
– a huge contribution to fiscal revenue. UBS, Credit Suisse and their employees have paid around CHF 24
billion in Swiss
taxes over the past decade alone.
Annual Report 2025 |
Letter to shareholders 4
Colm Kelleher
Chairman of the Board of Directors
Sergio
P.
Ermotti
Group Chief Executive Officer
We support proportionate, targeted and internationally aligned regulation
In June 2025, the Swiss Federal Council published its proposals for amendments to Switzerland’s banking regulation. Our
firm fully supports the Council’s ambition for Switzerland to remain one of the world’s leading financial centers with an
internationally competitive large bank at its core. We also recognize that amending Swiss banking regulation is a complex,
multi-year political process, which, since the commencement of this process, has introduced uncertainty and negatively
impacted the relative performance of our share price compared to our peers.
So far, two public consultations have taken place, to which we have submitted responses. We remain committed to
engaging constructively on behalf of our clients, shareholders, employees and other stakeholders.
Robust oversight is essential for a healthy financial center. At the same time, all parties agree that any regulatory
amendments must be targeted, proportionate and internationally aligned. Experience shows that past idiosyncratic crises
in the banking sector mostly stemmed from poor business strategy and risk management, not from insufficient capital
requirements. By granting substantial regulatory concessions and not publicly communicating early on about Credit
Suisse’s weaknesses, the Swiss authorities enabled Credit Suisse to muddle through and avoid the market’s discipline,
forestalling timely action to adjust its business model.
Regulation works best when it fosters financial stability without stifling innovation or damaging competitiveness.
Excessive or narrowly focused regulation risks undermining the very strengths that have made Swiss banking a global
benchmark. Overly restrictive measures lead to higher costs for clients and the broader economy and reduce the
international competitiveness of the country’s financial sector. The goal should be to preserve Switzerland’s unique
advantages while ensuring that its regulatory environment stays resilient and forward-looking.
With the integration of Credit Suisse, we are creating an even more resilient firm, not only for our shareholders, clients
and employees, but for all stakeholders and the whole of Switzerland. Protecting and expanding Switzerland’s
competitiveness is an obligation shared by both political and economic spheres. If we walk down this path together,
Switzerland will remain successful. It will remain a country that proves time and again how much can be achieved by
acting with clarity, responsibility and foresight
We have positioned our firm for growth
With most of the integration work behind us, we are well placed to harvest the full benefits of the acquisition and
produce sustainably higher returns, building toward our ambition to restore and surpass pre-acquisition levels of
profitability.
Our strategy is stronger than ever. It is anchored in our unique, globally diversified business model, which underpins the
breadth and depth of our franchise and enables us to serve clients across regions and market cycles. We are committed
to remaining the world’s only truly global wealth manager and the number one Swiss universal bank, with a leading
Asset Management franchise and a competitive and focused Investment Bank. This approach allows us to offer the best
service for clients while maintaining disciplined risk and cost management and delivering attractive capital returns.
With that in mind, we have set our ambitions for 2028, including a reported return on CET1 capital of approximately
18% and a reported cost / income ratio of around 67%, based on the current capital framework and assuming a CET1
capital ratio of around 14%. Each core business division will play a part, and each has clear profitability ambitions.
To get there, we have reiterated ambitious 2026 exit-rate targets. These include achieving an underlying return on CET1
capital of approximately 15% and reducing our underlying cost / income ratio to below 70%. These targets reflect our
commitment to both profitability and efficiency.
Annual Report 2025 |
Letter to shareholders 5
We also aim to maintain a robust capital position, with a CET1 capital ratio of around 14% and a CET1 leverage ratio
above 4%. These goals underscore our disciplined approach toward a strong capitalization of our firm as we finish the
final stages of the Credit Suisse integration and continue to unlock new opportunities for growth.
In the US, we advanced our strategy in 2025 by applying for a national bank charter, an important step in improving our
performance in the world’s largest wealth market. Over time, this will allow us to build a platform offering a broader
suite of banking products to clients, including traditional bank accounts. This application received conditional approval
in January 2026.
Crucially, our firm continues to deepen collaboration across divisions, regions and functions, strengthening our One Bank
concept to bring the full power of our franchise to clients. This integrated approach, combined with a focus on high-
growth segments, such as high net worth clients, alternatives and banking, puts us in a position to capture new
opportunities and expand our market share in key regions. Our unified culture is the cornerstone of our long-term success.
This risk-aware mindset empowers every employee to do the right thing, keeps clients at the heart of our actions and
fosters pride in being part of a trusted, resilient firm.
We are harnessing the power of AI and technology
In 2025, we accelerated artificial intelligence (AI) implementation to increase employee productivity and enhance client
service. Using AI-powered chatbots we’re delivering seamless, instant mobile banking support for 1.2
million clients, and
our analytics tools in call centers are providing instant insights to improve service and boost efficiency. We’re enabling
our people to work smarter and faster through our in-house AI assistant, Red, and Microsoft 365 Copilot, which are now
deployed across the firm. Using digital assistants, we’re advancing the pace and scale of software development and
driving innovation and process reengineering. By the end of 2025, we had 380 live use cases.
We deepened our strategic relationships with technology companies and academia, launching the Oxford-UBS Centre
for Applied AI with the University of Oxford to develop pioneering AI research and solutions to implement at scale across
UBS.
With a client-led approach to digital assets, we are building out core infrastructure and exploring targeted offerings,
focusing on tokenized real-world assets and digital money. For example, we are developing our tokenized money market
fund, uMINT, using our in-house UBS Tokenize service and developing our UBS Digital Cash tokenized deposit solution.
We are also evaluating stablecoin use cases and exploring client access to cryptocurrencies.
We are rooted in responsibility
Long-term success is about more than execution and growth. It is rooted in the responsibility we share to help shape a
more sustainable future – for our clients, for our people and for the communities where we operate. In 2025, we bolstered
the foundations of our sustainability and impact agenda, as set out in our Sustainability Report.
We support clients as they transition to a low-carbon economy, assessing climate-related risks and opportunities across
our business to create value for clients, shareholders and other stakeholders. In 2025, we progressed toward our scope 1
and 2 net zero targets, reducing emissions by 48% through our energy reduction initiatives and renewable electricity
usage. For scope 3, we remain committed to our lending decarbonization targets in key sectors and to further developing
our approach to transition finance.
At the same time, we continued to improve our climate risk management capabilities, including identifying, measuring,
monitoring, managing and reporting climate-related risks, while further embedding regulatory requirements into our
financial risk management and stress testing frameworks. Our efforts remain anchored in our ambition to be a leader in
sustainability. Our progress is reflected in key ESG ratings, with MSCI reaffirming our AA score and continued performance
in the S&P Global Corporate Sustainability Assessment.
Annual Report 2025 |
Letter to shareholders 6
The 2026 Annual General Meeting
At the upcoming
Annual General Meeting, we will propose Markus Ronner to join the Board of Directors of UBS Group
AG as Vice Chairman. We have also nominated Agustín Carstens and Luca Maestri for election to the Board. Lukas
Gähwiler will not stand for re-election. After an exceptionally successful career spanning 45 years, he decided to retire
from his role as Vice Chairman, concluding his long career in banking, which included several leadership roles at UBS.
William C. Dudley and Jeanette Wong also decided to step down after seven years on the Board. We extend our deep
appreciation to those stepping down for their commitment and contributions over the past years.
Also at the
Annual General Meeting, you will be asked to vote on the proposed increase in dividends, the Compensation
Report and the UBS Group Sustainability Report.
Building on our achievements in 2025, we enter 2026 confident in our strategy and our ability to deliver. We are
positioned to generate sustainably higher returns and long-term value for all stakeholders. We are energized by the
opportunities ahead and dedicated to building an even stronger firm.
Thank you for your ongoing support. We look forward to welcoming you to the 2026
Annual General Meeting, which
will take place on 15 April in Basel, Switzerland.
Yours sincerely,
Colm Kelleher Sergio P. Ermotti
Chairman of the Board of Directors Group Chief Executive Officer
Annual Report 2025 |
Letter to shareholders 7
Corporate information
UBS Group AG
under Art. 620ff. of the Swiss Code of Obligations as an Aktiengesellschaft, a
corporation limited by shares. Its registered office is at Bahnhofstrasse 45,
CH-8001 Zurich, Switzerland, telephone +41-44-234 11 11, and its corporate
identification number is CHE-395.345.924. UBS Group AG was incorporated
on 10 June 2014 and was established in 2014 as the holding company of the
UBS Group. UBS Group AG shares are listed on the SIX Swiss Exchange and
on the New York Stock Exchange (ISIN CH0244767585; CUSIP H42097107).
UBS Group AG owns 100% of the outstanding shares in UBS AG.
Contacts
Switchboards
For all general inquiries
ubs.com/contact
Zurich +41-44-234-1111
London +44-207-567-8000
New York +1-212-821-3000
Hong Kong SAR +852-2971-8888
Singapore +65-6495-8000
Investor Relations
UBS’s Investor Relations team manages
relationships with institutional investors,
research analysts and credit rating agencies.
ubs.com/investors
Zurich +41-44-234-4100
New York +1-212-882-5734
Media Relations
UBS’s Media Relations team manages
relationships with global media and
journalists.
ubs.com/media
Zurich +41-44-234-8500
mediarelations@ubs.com
London +44-20-7567-4714
ubs-media-relations@ubs.com
New York +1-212-882-5858
mediarelations@ubs.com
Hong Kong SAR +852-2971-8200
sh-mediarelations-ap@ubs.com
Office of the Group Company Secretary
The Group Company Secretary handles
inquiries directed to the Chairman or to other
members of the Board of Directors.
UBS Group AG, Office of the
Group Company Secretary
P.O. Box, CH-8098 Zurich, Switzerland
sh-company-secretary@ubs.com
Zurich +41-44-235-6652
Shareholder Services
UBS’s Shareholder Services team, a unit
of the Group Company Secretary’s office,
manages relationships with shareholders
and the registration of UBS Group AG
registered shares.
UBS Group AG, Shareholder Services
P.O. Box, CH-8098 Zurich, Switzerland
sh-shareholder-services@ubs.com
Zurich +41-44-235-6652
US Transfer Agent
For global registered share-related
inquiries in the US.
Computershare Trust Company NA
P.O. Box 43006
Providence, RI, 02940-3006, USA
Shareholder online inquiries:
www.computershare.com/us/
investor-inquiries
Shareholder website:
computershare.com/investor
Calls from the US
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Calls from outside the US
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Corporate calendar UBS Group AG
Information about future publication dates is available at
ubs.com/global/en/investor-relations/events/calendar.html
Imprint
Publisher: UBS Group AG, Zurich, Switzerland | ubs.com
Language: English
© UBS 2026. The key symbol and UBS are among the registered and
unregistered trademarks of UBS. All rights reserved.
Annual Report 2025
Our key figures
UBS Group key figures
As of or for the year ended
USD m, except where indicated
31.12.25
31.12.24
31.12.23
Group results
Total revenues
Negative goodwill
Credit loss expense / (release)
Operating expenses
Operating profit / (loss) before tax
Net profit / (loss) attributable to shareholders
Diluted earnings per share (USD)
1
Profitability and growth
2
Return on equity (%)
3
Return on tangible equity (%)
3
Underlying return on tangible equity (%)
3,4
Return on common equity tier 1 capital (%)
3
Underlying return on common equity tier 1 capital (%)
3,4
Revenues over leverage ratio denominator, gross (%)
3
Cost / income ratio (%)
3,5
Underlying cost / income ratio (%)
3,4,5
Effective tax rate (%)
Net profit growth (%)
3
Resources
2
Total assets
Equity attributable to shareholders
Common equity tier 1 capital
6
Risk-weighted assets
6
Common equity tier 1 capital ratio (%)
6
Going concern capital ratio (%)
6
Total loss-absorbing capacity ratio (%)
6
Leverage ratio denominator
6
Common equity tier 1 leverage ratio (%)
6
Liquidity coverage ratio (%)
7
Net stable funding ratio (%)
Other
Invested assets (USD bn)
3,8
Internal and external personnel
9
Internal personnel (full-time equivalents)
Market capitalization
10,11
Total book value per share (USD)
10
Tangible book value per share (USD)
10
Credit-impaired lending assets as a percentage of total lending assets, gross (%)
3
Cost of credit risk (bps)
3
1 Refer to “Share information and earnings per share” in the “Consolidated financial statements” section of this report for more information. 2 Refer to the “Targets, capital guidance and ambitions” section of this
report for more information about our performance targets. 3 Refer to “Alternative performance measures” in the appendix to this report for the relevant definition(s) and calculation method(s). Each alternative
performance measure (APM) that qualifies as a non-GAAP measure as defined by US Securities and Exchange Commission (SEC) regulations is designated as such in the table of APMs in the appendix to this report.
4 Refer to the “Group performance” section of this report for more information about underlying results. 5 Negative goodwill is not used in the calculation as it is presented in a separate reporting line and is not
part of total revenues. 6 Based on the Swiss systemically relevant bank framework. Refer to the “Capital management” section of this report for more information. 7 The disclosed ratios represent averages for
the fourth quarter of each year presented, which were calculated based on an average of 64 data points in the fourth quarter of 2025, 64 data points in the fourth quarter of 2024 and 63 data points in the fourth
quarter of 2023. Refer to the “Liquidity and funding management” section of this report for more information. 8 Consists of invested assets for Global Wealth Management, Asset Management (including invested
assets from associates) and Personal & Corporate Banking. Refer to “Note 30 Invested assets and net new money” in the “Consolidated financial statements” section of this report for more information. 9 Represents
full-time equivalents for internal personnel and workforce count for external personnel. 10 Refer to the “UBS shares” section of this report for more information. 11 The calculation of market capitalization reflects
total shares issued multiplied by the share price at the end of the period.
Alternative performance measures
An alternative performance measure (an APM) is a financial measure of historical or future financial performance, financial
position or cash flows other than a financial measure defined or specified in the applicable recognized accounting
standards or in other applicable regulations. We report a number of APMs in the discussion of the financial and operating
performance of the Group, our business divisions and Group Items. We use APMs to provide a more complete picture of
our operating performance and to reflect management’s view of the fundamental drivers of our business results. A
definition of each APM, the method used to calculate it and the information content are presented under “Alternative
performance measures” in the appendix to this report. Each APM that qualifies as a non-GAAP measure as defined by
US Securities and Exchange Commission (SEC) regulations is designated as such in the table of APMs in the appendix to
this report.
›
Refer to “Alternative performance measures” in the appendix to this report for additional information
›
Refer to the “Group performance” section of this report for additional information about underlying results
Annual Report 2025
Terms used in this report, unless the context requires otherwise
”UBS”, ”UBS Group”, “UBS Group AG consolidated”, “Group”, “the
Group”, “we”, “us” and “our”
UBS Group AG and its consolidated subsidiaries
“UBS sub-group”
All UBS Group entities, excluding Credit Suisse AG and its consolidated
subsidiaries, Credit Suisse Services AG, and other small former Credit
Suisse Group entities now directly held by UBS Group AG
“UBS AG” and “UBS AG consolidated“
UBS AG and its consolidated subsidiaries
“Credit Suisse AG”
Credit Suisse AG and its consolidated subsidiaries, before the merger
with UBS AG
“Credit Suisse Group” and “Credit Suisse”
Credit Suisse Group AG and its consolidated subsidiaries, before the
acquisition by UBS
“UBS Group AG” and “UBS Group AG standalone”
UBS Group AG on a standalone basis
“Credit Suisse Group AG”
Credit Suisse Group AG on a standalone basis, before the merger with
UBS Group AG
“UBS AG standalone”
UBS AG on a standalone basis
“UBS Switzerland AG” and “UBS Switzerland AG standalone”
UBS Switzerland AG on a standalone basis
“UBS Europe SE” and “UBS Europe SE consolidated”
UBS Europe SE and its consolidated subsidiaries
“UBS Europe SE standalone”
UBS Europe SE on a standalone basis
“UBS Americas Holding LLC”
UBS Americas Holding LLC and its consolidated subsidiaries
“1m”
One million, i.e. 1,000,000
“1bn”
One billion, i.e. 1,000,000,000
“1trn”
One trillion, i.e. 1,000,000,000,000
In this report, unless the context requires otherwise, references to any gender shall apply to all genders.
Comparability
Profit and loss and other flow-based information for the years ended 31 December 2025 and 31 December 2024 is based
entirely on consolidated data following the acquisition of the Credit Suisse Group. Comparative information for the year
ended 31 December 2023 includes seven months (June to December 2023) of post-acquisition consolidated data and
five months of UBS Group data only (January to May 2023).
Balance sheet information as at 31 December 2025, as at 31 December 2024 and as at 31 December 2023 is based
entirely on post-acquisition consolidated information.
Our Board of Directors
The Board of Directors of UBS Group AG (the BoD), led by the Chairman, consists of between 6 and 12 members, as per our
Articles of Association. The BoD decides on the strategy of the Group, upon recommendation by the Group Chief Executive Officer
(the Group CEO), and is responsible for the overall direction, supervision and control of the Group and its management. It is also
responsible for supervising compliance with applicable laws, rules and regulations. The BoD exercises oversight over UBS Group
AG and its subsidiaries and is responsible for establishing a clear Group governance framework to provide effective steering and
supervision of the Group, taking into account the material risks, opportunities and impacts to which UBS Group AG and its
subsidiaries are exposed
and may affect its performance, value creation and reputation. The BoD has ultimate responsibility for the
success of the Group and for delivering sustainable shareholder value within a framework of prudent and effective controls. It
approves all financial statements and appoints and removes all Group Executive Board (GEB) members.
Our Group Executive Board
UBS Group AG operates under a strict dual-board structure, as mandated by Swiss banking law, and therefore the BoD delegates
the management of the business to the GEB. As of 31 December 2025, the GEB, under the leadership of the Group CEO,
consisted of 15 members. It has executive management responsibility for the steering of the Group and its business, develops
the strategies of the Group, business divisions and Group functions, and implements the BoD-approved strategies.
›
Refer to “Board of Directors” and “Group Executive Board” in the “Corporate governance” section of this report or to
ubs.com/bod
ubs.com/geb
Annual Report 2025
Our evolution
Since our origins in the mid-19th century, more than 500 different firms have become part of the history of our firm and
helped shape our development. 1998 was a major turning point: two of the three largest Swiss banks, Union Bank of
Switzerland and Swiss Bank Corporation (SBC), merged to form UBS. Both banks were well established and successful in
their own right. Union Bank of Switzerland had grown organically to become the largest Swiss bank. In contrast, SBC
had grown mainly through strategic partnerships and acquisitions, including S.G. Warburg in 1995.
In 2000, we acquired PaineWebber, a US brokerage and asset management firm with roots going back to 1879,
establishing us as a significant player in the US. Since 1964, we have been building our strong presence in the Asia Pacific
region, where we are by far the largest wealth manager,
1
After incurring significant losses in the 2008 financial crisis, we sought to return to our roots, emphasizing a client-centric
model that requires less risk-taking and capital. In 2011, we started a strategic transformation of our business model to
focus on our traditional businesses: wealth management globally, and personal and corporate banking in Switzerland.
In 2014, we began adapting our legal entity structure in response to too-big-to-fail (TBTF) requirements and other
regulatory initiatives. First, we established UBS Group AG as the ultimate parent holding company for the Group. In 2015,
we transferred personal and corporate banking and Swiss-booked wealth management businesses from UBS AG to the
newly established UBS Switzerland AG. That same year, we set up UBS Business Solutions AG as the Group’s service
company. In 2016, UBS Americas Holding LLC became the intermediate holding company for our US subsidiaries, and
our wealth management subsidiaries across Europe were merged into UBS Europe SE, our Germany-headquartered
European intermediate parent undertaking. In 2019, we merged UBS Limited, our UK-headquartered subsidiary, into UBS
Europe SE.
2023 was another defining moment in our history, as we acquired the Credit Suisse Group, a global systemically important
financial institution and a major wealth manager headquartered in Switzerland, which was founded in 1856. The
acquisition followed a request from the Swiss Federal Department of Finance, the Swiss National Bank and the Swiss
Financial Market Supervisory Authority (FINMA), with support from other supervisors, to UBS Group AG and Credit Suisse
Group AG to give due consideration to the acquisition in order to restore necessary confidence in the stability of the
Swiss economy and banking system and to serve the best interests of the shareholders and stakeholders of UBS and
Credit Suisse. The acquisition strengthened our position today as the largest truly global wealth manager, the leading
bank in Switzerland, a global, large-scale and diversified asset manager, and a focused investment bank.
In 2024 and 2025, several mergers of subsidiaries and other developments in our legal entity structure were effected, as
the process of integrating Credit Suisse progressed further. The mergers included those of UBS AG and Credit Suisse AG,
and UBS Switzerland AG and Credit Suisse (Schweiz) AG, both in 2024, and that of UBS Americas Inc. and Credit Suisse
Holdings (USA), Inc. in 2025. In addition, the transition to a single US intermediate holding company was completed in
2024, and, in 2025, UBS Europe SE was established as the single EU intermediate parent undertaking. Also in 2025,
Credit Suisse International transferred substantially all of its residual business and the related products to UBS AG London
Branch and UBS Europe SE. The chart below gives an overview of our principal legal entities and our legal entity structure
as of 31 December 2025.
›
Refer to
ubs.com/history
›
Refer to the “Integration of Credit Suisse” section of this report for more information
The legal structure of the UBS Group as of 31 December 2025
1
Annual Report 2025 |
Our strategy, business model and environment | Integration of Credit Suisse 15
Our strategy, business model and
environment
Management report
Integration of Credit Suisse
On 12 June 2023, UBS Group AG acquired Credit Suisse Group AG, succeeding by operation of Swiss law to all assets and
liabilities of Credit Suisse Group AG.
Since the acquisition, we have significantly simplified our legal entity structure across key jurisdictions, having merged
UBS AG and Credit Suisse AG in May 2024 and having completed the transition to a single US intermediate holding
company and the merger of UBS Switzerland AG and Credit Suisse (Schweiz) AG in July 2024.
In 2025, we merged Credit Suisse Holdings (USA), Inc. with UBS Americas Inc, deregistered Credit Suisse Securities (USA) LLC
as a broker-dealer and established UBS Europe SE as the single EU intermediate parent undertaking. Moreover, Credit Suisse
International transferred substantially all of its residual business and the related products to UBS AG London Branch and
UBS Europe SE.
In the first quarter of 2025, we completed the consolidation of our branch network in Switzerland, having merged 95
branches with existing ones since the merger of UBS Switzerland AG and Credit Suisse (Schweiz) AG.
Throughout 2025, we also continued to make excellent progress with respect to client account migrations and
infrastructure decommissioning. By the end of the fourth quarter of 2025, 85% of Swiss-booked accounts had been
migrated, including substantially all of the targeted Personal & Corporate Banking client accounts. We remain on track
to complete the migrations of the Swiss-booked client accounts by the end of the first quarter of 2026.
In 2025, we realized a total of USD 3.2bn in gross cost savings. Cumulative gross cost savings at the end of 2025
amounted to USD 10.7bn compared with the 2022 combined cost base of UBS and Credit Suisse. In the fourth quarter
of 2025, we identified additional synergies that enabled us to increase our ambition for annualized exit rate gross cost
savings by the end of 2026 from around USD 13bn to approximately USD 13.5bn.
As of 31 December 2025, our Non-core and Legacy division had decommissioned 73% of its applications. It has also
delivered a reduction of around 80% in underlying operating expenses (excluding litigation) compared with the 2022
combined baseline and delivered a 67% reduction in risk-weighted assets (RWA) since the second quarter of 2023.
Having already achieved a reduction of credit and market risk RWA to around USD 5bn, we are well positioned to meet
our ambition of around USD 4bn by the end of 2026. We also have a 2026 exit rate ambition of around USD 0.5bn in
underlying operating expenses (excluding litigation).
In March 2025, we completed the sale of Select Portfolio Servicing, the US mortgage servicing business of Credit Suisse,
which was managed in Non-core and Legacy. We recognized a gain of USD 97m upon the completion of the transaction,
and the completion reduced the Group’s RWA by around USD 1.3bn and the Group’s leverage ratio denominator by
around USD 1.7bn.
In October 2024, we entered into an agreement to sell to American Express Swiss Holdings GmbH (American Express)
our 50% interest in Swisscard AECS GmbH (Swisscard). At the same time, we entered into an agreement with Swisscard
to transition the Credit Suisse-branded card portfolios to UBS. The purchase of the card portfolios was completed in
January 2025. In January 2026, we completed the sale of our 50% interest in Swisscard to American Express, and we
expect to record a gain on sale in the first quarter of 2026. As previously disclosed, this gain is expected to largely offset
the effects related to the prior Swisscard transactions recorded in the first quarter of 2025 (an expense of USD 180m and
a gain of USD 64m) and the fourth quarter of 2024 (an expense of USD 41m).
›
Refer to “Note 28 Changes in organization and acquisitions and disposals of subsidiaries and businesses” in the “Consolidated
financial statements” section of this report for more information
We expect to substantially complete the integration of Credit Suisse by the end of 2026.
Annual Report 2025 |
Our strategy, business model and environment | Integration of Credit Suisse 16
Remediation of Credit Suisse material weaknesses
In March 2023, prior to the acquisition by UBS Group AG, the Credit Suisse Group and Credit Suisse AG disclosed that
their management had identified material weaknesses in internal control over financial reporting as a result of which the
Credit Suisse Group and Credit Suisse AG had concluded that, as of 31 December 2022 and 2021, their internal control
over financial reporting was not effective. Following the acquisition and merger of Credit Suisse Group AG into UBS
Group AG in June 2023, Credit Suisse AG concluded that as of 31 December 2023 its internal control over financial
reporting continued to be ineffective. As permitted by SEC guidance in the year of an acquisition, UBS Group AG excluded
Credit Suisse AG from its assessment of internal control over financial reporting for the year ended 31 December 2023
and concluded that its internal control over financial reporting was effective as of such date.
Since the Credit Suisse acquisition, UBS has executed a remediation program to address the identified material
weaknesses and has implemented additional controls and procedures.
As of 31 December 2024, management assessed that the changes to internal controls made to address the material
weaknesses relating to the classification and presentation of the consolidated statement of cash flows, as well as
assessment and communication of the severity of deficiencies, were designed and operating effectively. The remaining
material weakness related to the risk assessment of internal controls. During 2024, UBS integrated the Credit Suisse
control framework into the UBS internal control framework and risk assessment and evaluation processes. In addition,
UBS reviewed the processes, systems and internal controls in connection with the integration of Credit Suisse into UBS
and implemented additional processes and controls to reflect the increase in complexity of the accounting and financial
control environment following the acquisition. Management assessed that the risk assessment process was designed
effectively.
However, considering the increased complexity of the internal accounting and control environment, the remaining
migration efforts still underway and limited time to demonstrate operating effectiveness and sustainability of the post-
merger integrated control environment, management concluded that additional evidence of effective operation of the
remediated controls was required to conclude that the risk assessment processes were operating effectively on a
sustainable basis. In light of the above, management concluded that there was a material weakness in internal control
over financial reporting at 31 December 2024.
As of 31 December 2025, UBS management has assessed the effectiveness of UBS’s risk assessment process and
concluded that changes made to the risk assessment processes were designed and operating effectively, with significant
integration and migration steps completed. UBS management has therefore concluded that the risk assessment material
weakness has been remediated.
›
Refer to “Management’s report on internal control over financial reporting” in the “Consolidated financial statements” section of
this report for more information about management’s assessment of internal control over financial reporting as of 31 December
2025 and the remediation of Credit Suisse material weaknesses
Annual Report 2025 |
Our strategy, business model and environment | Our strategy 17
Our strategy
UBS – who we are
We are the world’s only truly global wealth manager and the leading bank in Switzerland. These key pillars of our strategy
are enhanced by our focused and competitive asset management and investment banking capabilities. Staying close to
our clients, whether they are individuals, institutions or businesses, and providing financial advice and solutions to help
them to achieve their goals is at the heart of what we do. We have a capital-generative and well-diversified global
business model with strong competitive positions in our target markets and the regions in which we operate.
Our business model, including our regional diversification, with our deep-rooted, risk-aware culture, superior client service
and prudent capital management, is built on our respected brand and has made it possible to sustainably grow profits
and deliver attractive capital returns to shareholders over the long term.
We are focused on driving sustainable long-term growth while maintaining risk and cost discipline
Our objective is to generate value for our stakeholders by driving sustainable long-term structural growth and attractive
capital returns. To accomplish this, we are building on our scale, content and solutions, while remaining disciplined on
capital, risk and costs. Maintaining a balance sheet for all seasons remains a foundation of our success and a significant
source of strength and resilience. This provides us with the capacity to invest strategically and enables us to deliver against
our financial targets and ambitions, which are outlined in the “Targets, capital guidance and ambitions” section of this
report.
Our growth plans are rooted in an attractive business mix, that is also a source of competitive strength, and are supported
by collaboration between our businesses. Our asset-gathering businesses generate close to 60% of our revenues
1
and
are characterized by being structurally attractive from a capital consumption perspective, representing around 39% of
our risk-weighted assets (RWA).
1
1
our home market and an attractive, stable and well-diversified economy, with low historic credit losses. Furthermore, we
operate a capital-efficient Investment Bank, which is limited to 25% of Group RWA.
1
Our aim is to create long-term sustainable value. We also have a responsibility to the communities in which we live and
operate, and to our employees. We have outlined selected environmental, social and governance (ESG) aspirations, which
are aligned with our financial targets and ambitions.
We have a global, diversified business model
Our invested assets of more than USD 7trn are regionally diversified across the globe. We give our clients access to a
broad, relevant and customizable range of solutions, which, together with our thought leadership and capabilities,
position us well to become their partner of choice. Our strategic ambitions reflect the long-term outlook on demographic
and social trends affecting wealth distribution, product demand and client experience.
We are among the market leaders in the Americas, the world’s largest wealth pool and one of the fastest-growing wealth
markets. Around half of the invested assets our wealth management clients entrusted us with are booked in that region.
Following the acquisition of Credit Suisse, the Investment Bank has invested in growing its Global Banking and Global
Markets capabilities in the region, and is focused on cross-regional and cross-divisional collaboration to drive growth.
Asia Pacific is our fastest-growing region, and where we continue to lead as the largest wealth manager
2
consistent top-tier investment bank. We are further investing in and growing our businesses to deliver leading capabilities,
capitalizing on market momentum in the Hong Kong SAR and the mainland of China, leveraging strong cross-divisional
collaboration and global connectivity, and driving growth through a diversified footprint, with the Hong Kong SAR and
Singapore as the regional hubs, as well as strategic partnerships in markets such as Japan and India. In 2025, our total
invested assets in Asia Pacific surpassed the USD 1trn milestone for the first time.
In EMEA, we are one of the largest wealth managers, and we are focused on deepening our share of wallet with EMEA-
domiciled global clients, while further driving profitability in select key markets, including the Middle East.
Finally, in Switzerland we have a highly integrated business model and aim to reinforce our position as the leading bank.
We are driving our digital transformation, enhancing the client experience and improving efficiency, while focusing on
capturing growth opportunities. In 2025, UBS was again named Best Bank in Switzerland by
Euromoney
, for the eleventh
time since 2012. Our role as a trusted partner to the Swiss economy remains central to our strategy. This is reflected in
our substantial contribution to the Swiss economy, including, among other aspects, a lending volume commitment of
CHF 350bn.
We deliver integrated coverage for clients by collaborating as one UBS
We are committed to serving our clients as one firm, with collaboration across our business divisions being a cornerstone
of our strategy and a key differentiator, as we deliver the full value of the firm to clients. For example, our asset-gathering
businesses work in synergy to offer clients a comprehensive product suite paired with exclusive, personalized services.
The Investment Bank complements these by delivering insights, execution capabilities and risk management expertise to
both wealth management clients with complex needs and Swiss corporate clients.
Annual Report 2025 |
Our strategy, business model and environment | Our strategy 18
In today’s interconnected world, our wealth management clients are becoming increasingly global and mobile in both
their business and personal lives, demanding comprehensive, seamless, multi-jurisdictional financial solutions. With our
unmatched global footprint and best-in-class solutions, we are well positioned to connect our clients to the firm across
jurisdictions in a systematic and integrated manner.
We are investing in our technology to improve the client experience and enhance employee productivity
We continue to focus on investing in a resilient and secure technology infrastructure that is designed to help ensure the
stability of our services for our clients and employees worldwide. This includes investments to strengthen our core
platforms, modernize applications and enhance system reliability, in an increasingly complex environment.
Since our acquisition of the Credit Suisse Group in 2023, one of our key focus areas has been the integration of
technology and operations. We continue to rapidly advance in this space, with approximately 1,600 Credit Suisse business
applications decommissioned by the end of 2025 (55% of those in scope) and around 85% of Swiss-booked client
accounts transferred. In addition, our strong technology foundation has facilitated an overall seamless integration across
the Group, including the migration of businesses and client accounts to the UBS platforms.
›
Refer to the “Integration of Credit Suisse” section of this report for more information
We also continue to strengthen our technology position, with a focus on accelerating our Group artificial intelligence (AI)
strategy to achieve impactful outcomes more quickly and incrementally. In 2025, we appointed a Chief Artificial
Intelligence Officer to support UBS’s transformation into a fully AI-enabled institution. We are moving quickly to adopt
AI throughout the Group to reshape business capabilities and enhance employee productivity, and we are constantly
developing and exploring new opportunities, from more traditional automation to agentic AI solutions. Our AI strategy
is centered around nine large-scale transformational AI initiatives. These initiatives are designed to have a broad impact
across the Group, increasing efficiency and improving processes and systems. For example, we are implementing the next
generation of software development, which includes the widespread deployment of AI-augmented development tools,
enabling engineers to deliver faster, more innovative and scalable solutions and streamlining UBS’s software development
cycle.
To support our employees, we are upskilling and reskilling employees in AI and adjacent technologies through specific AI
training to ensure innovation is embedded responsibly and effectively. We also continue to invest in partnerships with
leading academic institutions worldwide and other key players, to develop ideas, drive positive outcomes across the
Group and foster pioneering AI research. For example, we have announced the launch of the Oxford-UBS Centre for
Applied Artificial Intelligence, focusing on three key research areas (society, economy and the future of AI). This enables
us to explore pioneering applications and practical solutions that can be implemented at scale across the Group.
These efforts are underpinned by an AI framework and policy that have been designed to safeguard the interests of
clients, employees and stakeholders. In parallel, we maintain a strong focus on operational resilience, cybersecurity and
data protection to support keeping our platforms secure, stable and available at all times.
›
Refer to the “Risk management and control” section of this report for more information
In addition, we are actively building out foundational digital asset infrastructure to launch a range of new products
addressing evolving client needs. For example, we are investing in our solutions for the tokenization of real-world assets,
such as
UBS Tokenize
. We are also developing digital money offerings, such as our
UBS Digital Cash
solution, and we are evaluating stablecoins. Finally, we are also exploring access to cryptocurrencies.
Supporting sustainability
We are guided by our ambition to be a leader in sustainability. This is reflected in our vision to be the bank for the next
generation. To help us realize that vision, our sustainability and impact strategy is based on three overarching strategic
pillars: Protect, Grow and Attract.
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more
information
1
Excluding Non-core and Legacy.
2
Asian Private Banker (April 2025) and UBS estimate.
Annual Report 2025 |
Our strategy, business model and environment | Targets, capital guidance and ambitions 19
Targets, capital guidance and ambitions
We remain committed to the Group’s 2026 exit-rate financial targets and long-term ambitions. We are targeting, by the
end of 2026, an underlying return on common equity tier 1 (RoCET1) capital of around 15% (exit rate) and an underlying
cost / income ratio of less than 70% (exit rate). For 2028, our ambition is to deliver reported RoCET1 of around 18% in
2028 (based on the current capital framework and assuming a common equity tier 1 (CET1) capital ratio of around 14%).
Supporting this is a recently introduced ambition to deliver a reported cost / income ratio of around 67%. We are well
positioned to deliver on those targets and ambitions, and we believe that our scale and client franchises, as well as the
completion of the integration, will enable us to achieve sustainable higher returns.
The graphic below shows our Group financial targets, capital guidance and long-term ambitions.
As of the end of 2025 our cumulative gross cost savings amounted to USD 10.7bn compared with the 2022 combined
cost base of UBS and Credit Suisse. We have identified additional synergies, enabling us to increase our ambition for
annualized exit-rate gross cost savings by the end of 2026 from around USD 13bn to approximately USD 13.5bn. Gross
cost savings will provide the necessary capacity for investment in capabilities, talent and technology to deliver on our
2028 ambitions.
Group targets, ambitions and guidance
We are on track to deliver on our exit-rate targets upon completion of the integration by the end of 2026:
–
an underlying RoCET1 of around 15%;
–
an underlying cost / income ratio of less than 70%; and
–
gross cost savings of around USD 13.5bn compared with the 2022 combined cost base of UBS and Credit Suisse.
As we complete the integration, we believe our scale and client franchises will position us to sustainably deliver higher
returns. We aim to deliver reported RoCET1 of around 18% in 2028 (based on the current capital framework and
assuming a CET1 capital ratio of around 14%) and a reported cost / income ratio of around 67% in 2028.
Our capital guidance remains unchanged, and we aim to maintain:
–
a CET1 capital ratio of around 14%;
–
a CET1 leverage ratio of greater than 4.0%; and
–
a UBS AG standalone CET1 capital ratio of between 12.5% and 13.0%.
For our business divisions we have the following ambitions:
–
for Global Wealth Management, more than USD 5.5trn of invested assets by the end of 2028, more than USD 200bn
of net new assets per annum from 2028 and a reported cost / income ratio of around 68%;
–
for Personal & Corporate Banking, a reported cost / income ratio of around 48% in 2028 and a reported return on
attributed equity of around 19% over the medium term;
–
for Asset Management, a net new money growth rate of around 3% (through the cycle) and a reported cost / income
ratio of around 65% in 2028;
–
for the Investment Bank, a reported return on attributed equity of around 15% (through the cycle); and
–
for Non-core and Legacy, underlying operating expenses (excluding litigation) of around USD 0.2bn in 2028.
Annual Report 2025 |
Our strategy, business model and environment | Targets, capital guidance and ambitions 20
Our aspirations on environmental, social and governance (ESG) matters are set out in the UBS Group Sustainability Report
2025,
available under “Annual reporting” at
ubs.com/investors
.
Performance against these targets, capital guidance and ambitions is taken into account when determining variable
compensation.
›
Refer to “Society” and “Our focus on sustainability” in the “Our stakeholders” section and to the “Corporate governance” section
of this report for more information about ESG matters
›
Refer to the “Compensation” section of this report for more information about variable compensation
›
Refer to “Alternative performance measures” in the appendix to this report for definitions of and further information about our
performance measures
Annual Report 2025 |
Our strategy, business model and environment | Our businesses 21
Our businesses
We operate through five business divisions: Global Wealth Management, Personal & Corporate Banking, Asset
Management, the Investment Bank and Non-core and Legacy. With significant presences in the largest and fastest-
growing markets, our global reach and the breadth and depth of our expertise are major assets that set us apart from
our competitors. We see collaboration, both within and between business divisions and regions, as key to delivering on
our growth objectives. Our Group functions are support and control functions that provide services to the Group. Virtually
all costs incurred by the Group functions are allocated to the business divisions, leaving a residual amount that we refer
to as Group Items in our segment reporting.
Global Wealth Management
We are the world’s only truly global wealth manager, dedicated to serving high and ultra high net worth individuals, as
well as select institutional clients, through trusted advisor and financial intermediary relationships. Our global reach
combined with local expertise, Chief Investment Office (CIO)-led investment approach, comprehensive solutions platform
and premium brand are key differentiators.
Global Wealth Management is jointly managed by two Co-Presidents and organized into five regional business units
covering the US, Latin America, Asia Pacific, EMEA and Switzerland, as well as capability business units, such as the CIO
and GWM Solutions, and support units. Altogether, these units help to efficiently deliver research and solutions, tied to
the CIO-led value proposition, to our clients – leveraging our global scale and local implementation.
For regional financial reporting purposes, we disclose selected information about the Americas, Asia Pacific, EMEA and
Switzerland regions, and Divisional items.
Our business
We help clients to protect and grow their investments and pursue what matters most to them through advice, expertise,
and tailored solutions.
We offer clients advice on wealth planning to sustainably increase their wealth over the long term through a broad range
of solutions, including discretionary or advisory mandates and investment funds where we have distribution agreements.
These solutions represent USD 2.1trn in fee-generating assets globally, which is a subset of total invested assets of
USD 4.8trn. The remaining invested assets represent advisory assets or assets generating primarily transaction-based and
interest income, mainly from trading, cash, deposits and lending services. With discretionary mandates, clients delegate
investment decisions to UBS and benefit from our full investment capabilities, including portfolio management,
instrument selection and access to leading external managers across traditional, sustainable and alternative asset classes.
With advisory mandates, clients make their own investment decisions, supported by professional advice and portfolio
monitoring guided by the
UBS House View
. Our investment offering covers a broad range of instruments, including cash
equities, cash bonds, money market instruments, investment funds, structured products and alternative solutions that
provide access to private markets, hedge funds and real estate assets. We typically generate recurring net fee income,
which is primarily linked to the value of the fee-generating assets. This fee income includes portfolio management fees,
asset-based fund fees, custody fees and administrative fees. We also generate transaction-based income, which consists
primarily of brokerage revenues, trading revenues, foreign exchange fees and other charges linked to specific client
transactions.
›
Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method of invested
assets, fee-generating assets, net new money and net new assets
›
Refer to “Note 30 Invested assets and net new money” in the “Consolidated financial statements” section of this report for more
information about invested assets and net new money
Beyond our investment solutions, we offer a comprehensive range of banking services, including lending and deposits.
Our lending offering includes securities-based lending, mortgages, structured products and tailored solutions designed
to meet more sophisticated borrowing needs of our clients – including select institutional clients – and their businesses.
As of 31 December 2025, our lending portfolio amounted to USD 327bn globally and generated revenues primarily
through net interest income. In terms of deposits, we provide clients with flexibility and convenient access to their funds.
These deposits, which also contribute to net interest income, totaled USD 479bn globally as of 31 December 2025. Our
broad-based investment and banking solutions help us attract net new money from new and existing clients. This,
combined with dividends and interest, drives net new assets.
Annual Report 2025 |
Our strategy, business model and environment | Our businesses 22
Our CIO-led value proposition is designed to identify investment opportunities to protect and grow our clients’ wealth
over the long term, forming the basis of the
UBS House View
. The CIO gathers insights on financial planning,
macroeconomics, multi-asset strategies, stocks, bonds, currencies and commodities, as well as structured, sustainable,
and alternative investments. GWM Solutions brings all UBS products under one umbrella and efficiently and consistently
implements the CIO’s guidance, delivering integrated solutions that put the
UBS House View
We continue to invest in our platforms to enhance the client experience and deliver the full value of our CIO-led approach.
Clients can access research and solutions directly through our digital banking channels, where the
Direct Investment
Insights
discretionary solution,
UBS My Way
to tailor portfolios to their individual preferences and objectives. For those seeking professional guidance while remaining
actively involved in decision-making,
UBS Advice Compass
portfolios in depth and identifying actionable opportunities aligned with the
UBS House View
.
We are embedding advanced artificial intelligence (AI) capabilities across our platforms. AI-powered tools, including
chatbots, intelligent search features and multi-media functionalities, are enhancing both client and advisor experiences
by making the investment insights delivery more efficient and personalized. In addition, we connect clients with cutting-
edge research, innovative solutions and exclusive access to experts in the AI space and beyond, helping them to stay on
top of the latest innovations shaping today’s industries.
›
Refer to “We are investing in our technology to improve the client experience and enhance employee productivity” in the “Our
Strategy” section of this report for more information
Competition
Our main competitors fall into two categories: competitors with a strong position in the Americas but with more limited
global footprints, such as Morgan Stanley, JPMorgan Chase, Bank of America and Wells Fargo, as well as some smaller
firms, such as Raymond James; and competitors with international footprints but with a smaller presence than UBS in
the US, such as Julius Baer, BNP Paribas, Deutsche Bank and HSBC. We also compete with fintech firms in some regions
and products. We have strong positions across all key regions, including the largest wealth region (the US) and the fastest-
growing wealth regions (Asia Pacific, the Middle East and Latin America), as well as the more mature markets in Europe,
including Switzerland. The scale of our global franchise, our bespoke cross-divisional solutions and our premium brand
and reputation differentiate us from our competitors and would be difficult to replicate.
Annual Report 2025 |
Our strategy, business model and environment | Our businesses 23
Personal & Corporate Banking
Personal & Corporate Banking is at the core of our operations in Switzerland, the only market in which we operate across
all of our business areas, supporting our clients and the Swiss economy with UBS’s unparallelled global reach and
capabilities.
We are the leading universal bank in Switzerland, and we provide an extensive range of financial products and services to
private, corporate and institutional clients. We are a go-to bank for entrepreneurs in Switzerland, providing comprehensive
support at every stage of the entrepreneurial journey. With our network of around 190 branches and highly qualified client
advisors, complemented by modern digital banking services and customer service centers, we serve more than one-third of
Swiss households and more than 90% of large Swiss companies.
In 2025, UBS was again named Best Bank in Switzerland by
Euromoney
, for the eleventh time since 2012. Our role as a
trusted partner to the Swiss economy remains central to our strategy. This is underpinned by our pledge to remain a reliable
provider of credit to the Swiss economy through a lending volume commitment of around CHF 350bn.
Aligned with the UBS Group’s artificial intelligence (AI) strategy and ambition to become an AI-enabled institution, Personal
& Corporate Banking is embedding AI into its operations to drive innovation and enhance client experience. In addition,
Personal & Corporate Banking is actively shaping the UBS digital assets offering to meet the emerging needs of our clients.
For example, we are developing digital money offerings for corporate clients and exploring access to crypto assets for
individual clients.
›
Refer to “We are investing in our technology to improve the client experience and enhance employee productivity” in the “Our
Strategy” section of this report for more information
Our business
Personal & Corporate Banking is composed of two business areas: Personal Banking and Corporate & Institutional Clients.
In Personal Banking, we provide clients with a comprehensive suite of life-cycle-oriented products and services. Financing
solutions, primarily mortgages, and deposits form the cornerstone of our offering. Additionally, we provide our clients
with access to investment products and pension solutions. Our clients also benefit from further services, such as payment
solutions, card transactions and foreign exchange operations.
In Corporate & Institutional Clients, we serve corporate and institutional clients with a comprehensive suite of solutions
backed by deep expertise. Our financing offering and deposit products are the central pillar of our offering. A second
pillar consists of services related to foreign exchange, payments and trade finance. A third pillar includes additional
services, such as asset custody and the provision of investment fund products.
On an aggregate Personal & Corporate Banking level, net interest income from our financing and deposit offerings is the
primary income contributor, accounting for more than half of total revenues. Transaction-based income generated
through payments, card transactions, trade finance and foreign exchange operations is the second-largest contributor,
making up approximately one quarter of total revenues. Additional revenues are mainly derived from recurring net fee
income linked to our investment products, pension solutions, asset custody services and basic banking offerings.
In Personal & Corporate Banking, we work in close collaboration with other business areas to provide our Swiss clients
seamless access to a broad range of capabilities and global reach. In collaboration with Global Wealth Management, we
deliver leading wealth management services tailored to clients’ individual needs. In partnership with the Investment Bank,
we offer capital market and foreign exchange products, hedging strategies, trading capabilities and corporate finance
advice. Additionally, through our cooperation with Asset Management, we provide comprehensive fund and portfolio
management solutions.
We support our clients in achieving their sustainability goals, as both corporate clients and individuals have been exploring
effective strategies for transitioning to a lower-carbon economy. For example, we have enhanced our Swiss real estate
services to further support clients with renovating and refurbishing their properties to achieve higher energy efficiency
standards. Furthermore, we have introduced CO
2
UBS
key4
portfolios. These innovations mark important steps in helping our clients improve the energy efficiency and long-term
value of their properties.
We consider a strong partner network as essential for UBS’s success in Switzerland, enabling us to serve both corporate
and individual clients holistically through bank-adjacent services. These partnerships not only foster deeper client
relationships, accelerate time to market and offer flexible integration options, but also unlock new market opportunities
and revenue streams.
Our partner network includes collaborations with platforms for start-ups, such as Fasoon, Startups.ch, and NewCo,
enabling us to actively support clients in taking their first entrepreneurial steps. Partnerships aimed at building stronger
relationships with our mortgage clients are another example. Our exclusive partnership with the SMG Swiss Marketplace
Group enables us to support potential property buyers in their journey toward owning a home through our integration
with Switzerland’s largest real estate portals, such as Homegate and Immoscout24.
Annual Report 2025 |
Our strategy, business model and environment | Our businesses 24
Competition
In Personal Banking, our main competitors are the Swiss cantonal banks, Raiffeisen, PostFinance and other regional and
local Swiss banks; we also face competition from international neobanks and other national digital market participants.
In the corporate and institutional business, the Swiss cantonal banks and foreign banks are our main competitors. We
also support the international business activities of our Swiss corporate clients through local hubs in New York, Frankfurt,
Singapore and the Hong Kong SAR, where we compete with other foreign banks that have global operations. No other
Swiss bank offers its corporate clients local banking capabilities abroad.
Asset Management
We are a global, large-scale and diversified asset manager offering investment capabilities and strategies to institutions,
wholesale intermediaries and Global Wealth Management clients. With total invested assets of over USD 2trn, we are
one of the leading Europe-based asset managers.
We are focused on meeting the evolving needs of our clients by capitalizing on the products and areas where we have a
differentiated and scalable offering and by enhancing our partnerships with the other business divisions across the Group.
In 2025, we have integrated the breadth of our direct public and private markets capabilities within our Investments area,
enabling us to leverage the best of our expertise and technology within a single platform.
Following this change, Asset Management is organized into four areas: Client Coverage; Investments, Unified Global
Alternatives; and the Chief Operating Officer area.
We cover the main asset management markets globally and have a local presence in 24 locations across four regions: the
Americas; Asia Pacific; EMEA; and Switzerland. We also continue to build on our long-standing presence in China, where
we have enhanced our onshore presence through the ICBC joint venture.
To support sustainable growth across our business, we are transforming our end-to-end platform and embedding artificial
intelligence across our investment, front-to-back and distribution processes to enhance scalability, efficiency and client
outcomes. We also remain focused on capturing structural efficiencies and further sharpening our product offering.
›
Refer to “We are investing in our technology to improve the client experience and enhance employee productivity” in the “Our
Strategy” section of this report for more information
Our business
We are committed to delivering investment excellence and to creating value for our clients that endures through cycles.
We offer a range of investment products and services across all major traditional and alternative asset classes and investing
styles.
We have organized our direct investment capabilities across the following areas.
Active Equities
thematic strategies, as well as high alpha, growth and quantitative styles.
Active Fixed Income
currencies, as well as money market funds. In addition, our Credit Investments Group specializes in syndicated loans,
structured credit and upper-middle-market direct lending.
Annual Report 2025 |
Our strategy, business model and environment | Our businesses 25
Active Multi-Asset
including balanced, growth, income, risk-managed and unconstrained strategies, as well as white label solutions.
Partnership Solutions
– we draw on our value chain across the Group to provide customized full-service fiduciary,
investments and proprietary technology solutions and also collaborate with other business divisions to serve the needs of
our clients. For example, our Separately Managed Accounts (SMA) Advantage initiative with Global Wealth Management
in the US continues to gain momentum and reached a record USD 231bn in invested assets at the end of 2025.
Passive
– we continue to build on our position as the largest Europe-based manager of indexed investments and our
expertise in customization. We offer a wide range of indexed strategies across asset classes, along with exchange-traded
funds (ETFs), pooled funds and segregated mandates. In 2025 we expanded our ETF offering with the launch of a new
cost-efficient
Core
range, as well as our first active ETFs, leveraging our active fixed-income capabilities.
Real Assets (including real estate and infrastructure)
– a comprehensive range of global and regional strategies, from core
to value-add and opportunistic.
To capture the growth opportunity in alternatives, and in a transformational move for our clients and our partners, in
2025 we brought together our leading manager selection franchises from across Asset Management and Global Wealth
Management to create our
Unified Global Alternatives (UGA)
business. UGA provides an open architecture platform
offering clients customized solutions across hedge funds, private equity, private credit, real estate, infrastructure and
multi-alternative investment products, as well as access to co-investments and secondary market opportunities for our
more sophisticated clients. With a combined USD 330bn in invested assets, UGA is one of the leading limited partners
globally.
We support our clients’ sustainability objectives with a wide range of products and solutions incorporating a variety of
approaches, including impact- and transition-focused strategies.
We charge management fees on our funds and mandates (as a percentage of invested assets) and, to a lesser extent,
performance fees on our active investment capabilities. Our revenues therefore depend on both total invested assets and
the mix between higher fee strategies, such as active mandates, and lower fee passive strategies.
Competition
Our main competitors are global firms with wide-ranging capabilities and distribution channels, such as AllianceBernstein,
Allianz Asset Management, Amundi, BlackRock, DWS, Franklin Templeton, Invesco, J.P. Morgan Asset Management,
Morgan Stanley Investment Management, Schroders, State Street Global Advisors and T. Rowe Price, as well as firms with
a specific market or asset-class focus.
Investment Bank
The Investment Bank provides services to institutional, corporate, financial sponsor and Global Wealth Management
clients, helping them raise capital, invest and manage risks, while targeting attractive and sustainable risk-adjusted returns
for the Group’s shareholders. Our traditional strengths are in equities, foreign exchange, precious metals, research,
advisory and capital markets, complemented by a focused rates and credit platform. We use our data-driven research
and technology capabilities to help clients adapt to evolving market structures and changes in regulatory, technological,
economic and competitive landscapes.
Annual Report 2025 |
Our strategy, business model and environment | Our businesses 26
We aim to deliver market-leading solutions by leveraging our intellectual capital and digital platforms, we work closely
with Global Wealth Management, Personal & Corporate Banking and Asset Management to bring the best of the Group’s
capabilities to our clients. We do so while being disciplined about risk, balance sheet deployment and costs.
Our business is regionally diversified, with a presence in more than 30 countries. We cover the main investment banking
markets globally and have major financial hubs across four regions: the Americas; Asia Pacific; EMEA; and Switzerland.
Our business
The Investment Bank is composed of two business areas, Global Banking and Global Markets, both supported by Global
Research. Our global coverage model utilizes our international industry expertise and product capabilities to meet clients’
emerging needs.
Our Global Banking business area, which consists of Advisory and Global Capital Markets, offers a broad range of
investment banking products and services to our clients. Global Banking advises clients on strategic business
opportunities, such as mergers, acquisitions and related strategic matters, and helps them raise capital, in both public
and private markets, to fund their activities. We position ourselves as trusted advisors via our client coverage and ability
to provide access to the wider suite of UBS’s capabilities. With teams located across the Americas, Asia Pacific, EMEA and
Switzerland regions, our banking coverage offers clients local market expertise coupled with access to a global network.
Global Banking primarily generates fee-based revenues from advisory, origination, deal execution, financing and
underwriting services provided to clients.
Our Global Markets business helps clients engage with international financial markets, providing fast, innovative and
bespoke access to solutions, from market and insight tools to trade strategies and execution. Our capabilities are grouped
into three product verticals: Execution Services, Derivatives & Solutions and Financing. Global Markets enables clients to
buy, sell and finance securities on capital markets worldwide and to manage their risks and liquidity. We distribute, trade,
finance and clear cash equities and equity-linked products, as well as structuring, originating and distributing new equity
and equity-linked issues. From origination and distribution to managing risk and providing liquidity in foreign exchange,
rates, credit and precious metals, we help clients to realize their financial goals. We generate revenue from fees for
trading services (e.g. execution, market making, clearing and providing liquidity) and interest on investment financing.
Our Global Research business delivers data-driven insights to clients across major financial markets and securities
worldwide. With analysts based in more than 20 countries and coverage of over 3,800 stocks in 52 markets, we continue
to strengthen our research capabilities. Our offering includes fundamental coverage across equities, economics and
strategy, as well as market-leading data insights from Quant Research, Evidence Lab and HOLT, which are cornerstones
of the UBS Investment Bank’s data intelligence offering. UBS HOLT maintains a database of over 20,000 company profiles
around the world, providing clients with seamless benchmarking, screening and scoring of companies, eliminating the
need to sift through extensive global accounting data.
The Investment Bank also offers an array of sustainability-focused advice, products, research and events. We help meet
clients’ needs with respect to environmental, social and governance considerations and sustainable finance, helping to
reshape business models and investment opportunities and to develop sustainable finance products and solutions. As
sustainability priorities and other secular themes, such as AI, continue to shape investor preferences, corporate strategy
and actions, we aim to deliver integrated advice that connects these evolving trends to equity stories, financing and
investor engagement.
Our global reach presents a catalyst for continued and future profitable growth. In the Americas, the largest investment
banking fee pool globally, we continue to focus on increasing market share in our core Global Banking and Global
Markets businesses. In Asia Pacific, we plan to capture opportunities arising from expected market internationalization
and growth in China and other markets and to strengthen our presence in the region. In EMEA and Switzerland, we plan
to leverage our strong base and brand recognition to further gain market share.
Our priority is providing high-quality execution and seamless client service, through an integrated, solutions-led approach,
with disciplined growth in the advisory and execution businesses, while accelerating our digital transformation. We seek
to develop new products and solutions consistent with our capital-efficient business model, typically related to new
technologies or changing market standards.
The Investment Bank strives to be the digital investment bank of the future, focused on delivering innovation-led solutions
and efficiencies for our clients. Our digital strategy harnesses technology to provide access to sources of unique, global
liquidity, personalized advice and differentiated content.
Our ambition to be the most client-focused, efficient and data-driven investment bank is being realized through the
simplification of technology architecture, increased speed and quality of delivery and the attraction of best-in-class talent.
As we look forward to the continued evolution of our digital capabilities, we will see increased adoption of technologies,
such as generative AI, to scale efficiency and provide actionable insights into client portfolios.
›
Refer to “We are investing in our technology to improve the client experience and enhance employee productivity” in the “Our
Strategy” section of this report for more information
Annual Report 2025 |
Our strategy, business model and environment | Our businesses 27
Our capabilities, core products and services enable us to deliver our strategy to an expanded institutional and corporate
client base. In addition, we are well positioned to serve Global Wealth Management, offering investment banking
capabilities, and to further enhance our connections with wealth management clients. Joint efforts between the
Investment Bank and the other business divisions (for example, our work with Global Wealth Management through GWM
Solutions coverage) and, externally, strategic partnerships (for example, UBS BB jointly with Banco do Brasil, focused on
Latin America) continue to be key strategic priorities. Partnerships with Global Wealth Management and Asset
Management enable us to provide clients with broad access to financing, global capital markets and portfolio solutions.
We expect these initiatives to continue to lead to growth by delivering global products to each region, leveraging our
global connectivity across borders and sharing and strengthening our best client relationships.
Competition
Competing firms operate in many of our markets, but our strategy differentiates us, with our focus on selective leadership
in the areas where we have chosen to compete and a business model that leverages talent and technology rather than
balance sheet. Our main competitors are major global investment banks, including Morgan Stanley, Goldman Sachs,
Bank of America, Barclays, Citigroup, BNP Paribas, Deutsche Bank, Wells Fargo and JPMorgan Chase. In certain products
and regions, we also compete with boutique investment banks and fintech firms.
Non-core and Legacy
The Non-core and Legacy division was formed at the end of the second quarter of 2023 to incorporate selected assets
and liabilities originating from the former Credit Suisse businesses not aligned with our long-term strategic priorities or
risk appetite, including associated financial and non-financial assets, operating expenses, and funding costs. A small part
of the division was made up of positions from UBS’s former Non-core and Legacy Portfolio and some other legacy UBS
assets and liabilities that were assessed as non-strategic in the context of the acquisition of the Credit Suisse Group.
With the aim of exiting its positions over time, the division’s portfolio included the following businesses from the former
Credit Suisse Investment Bank:
–
loans primarily related to corporate clients and emerging markets;
–
the residual securitized products businesses;
–
the macro trading business, including rates and foreign exchange;
–
the legacy life-finance business;
–
the equities portfolio, including the remaining equity swaps, share back-lending positions and legacy structured
renewables-linked positions; and
–
the residual credit business.
Since its inception, Non-core and Legacy has made strong progress in actively reducing its portfolio. In the final year of
integration, we aim to continue to reduce Non-core and Legacy’s operating costs, with a focus on infrastructure
simplification. We also expect to continue to wind down some remaining positions to achieve further reductions in
financial resource consumption. Incremental costs or losses may arise in connection with the reduction of such assets and
liabilities.
›
Refer to the “Integration of Credit Suisse” section of this report for more information
Annual Report 2025 |
Our strategy, business model and environment | Our businesses 28
Group functions
Our Group functions are support and control functions that provide services to the Group, focusing on operational
effectiveness, risk mitigation and efficiency. The major areas of these functions are Group Services and Group Treasury.
Group Services consists of Group Technology, Group Compliance and Operational Risk Control, Group Finance, Group
Risk Control, Group Human Resources and Corporate Services, Group Corporate Communications and Group Brand &
Marketing, Group Legal, the Group Integration Office, Group Sustainability and Impact, and the Chief Strategy Office.
The vast majority of these support and control functions are fully aligned with, or deliver shared services to, the business
divisions.
Group Treasury manages balance sheet structural risk (e.g. interest rate, structural foreign exchange and collateral risks),
as well as the risks associated with our liquidity, capital and funding portfolios. Group Treasury serves all five business
divisions, and its risk management is integrated into the Group risk governance framework.
Virtually all costs incurred by the Group functions are allocated to the business divisions, leaving a residual amount that
we refer to as Group Items in our segment reporting in accordance with IFRS Accounting Standards. These include costs
or revenues related to certain activities that are retained centrally, such as group hedging and own debt activities in Group
Treasury, as they are not directly related to the business divisions, as well as certain other costs that are mainly related to
deferred tax assets.
Most of our employees in the Group functions are employed by UBS Business Solutions AG. The costs of the Group
functions employees in UBS Business Solutions AG are reflected as compensation expense in UBS Group reporting and
as general and administrative expense in UBS AG reporting.
Our environment
Market environment
Global economic developments in 2025
1
The global economy remained resilient in 2025, with growth accelerating to 3.5% from 3.4% in 2024, supported by
heavy investment in artificial intelligence (AI) and healthy demand from consumers across many of the world’s regions
and markets. Worries raised early in the year over the potential for a global trade conflict faded as the US and key trading
partners agreed deals.
US gross domestic product (GDP) grew by 2.2%, moderating after above average growth in 2023 and 2024. Capital
spending on AI accounted for about half of US growth for the year. US consumer spending continued to rise, backed by
increasing real incomes, and in spite of signs of weakness in the labor market.
China’s GDP grew by 5.0%, in line with the 5.0% growth recorded in 2024. This was despite weakness in the property
market and consumer demand. New economic drivers, including investment in AI, advanced manufacturing and
renewables, gained momentum.
The Eurozone’s GDP growth picked up from 0.9% in 2024 to 1.5% in 2025, as the region benefited from an easing of
monetary policy, the improving health of the banking system and rising demand for goods. Swiss GDP grew by 1.2%,
slightly less than 1.4% recorded in 2024. While consumer spending was solid and the Swiss National Bank (the SNB) cut
interest rates to zero, worries over trade relations with the US weighed on business confidence throughout most of the
year, until a trade deal was agreed in November 2025.
Inflation across most major economies continued to normalize. Consumer prices globally increased by 3.3% in 2025,
compared with 5.7% in 2024. The ebbing of inflationary pressure enabled many large central banks to cut interest rates
further. The European Central Bank (the ECB) lowered its deposit rate to 2.0%, down from 3.0% at the start of the year,
as inflation for the Eurozone moved closer to its 2% target. US inflation remained above the Federal Reserve’s 2% target,
averaging 2.7% for the year. But slowing inflation (down from 3.0% in 2024) and a cooling labor market led the Federal
Reserve to reduce interest rates in each of its last three policy meetings in 2025.
Amid interest rate cuts and solid economic growth, most major asset classes delivered strong gains in 2025 across regions.
Global stocks (the MSCI All Country World index) delivered a third straight year of gains in excess of 20%. In the US,
enthusiasm over the outlook for AI contributed to broader gains, with the S&P 500 index delivering a total return of
17.9%, while the equal-weighted S&P 500 index, which dilutes the impact of large technology stocks, gained 11.4%. In
the Eurozone, the MSCI EMU index of stocks returned 24.7%, helped by expectations of a boost to demand after the
German government approved a fiscal expansion. In Asia Pacific, the MSCI China index gained 30.7% and the MSCI
Japan index 24.7%.
Annual Report 2025 |
Our strategy, business model and environment | Our environment 29
The US dollar index (DXY), which tracks the US dollar against six major peer currencies, decreased by 9.4%, its worst year
since 2017. The depreciation of the US dollar was partly driven by the erosion of the US interest rate advantage over its
peers, as the Federal Reserve resumed cutting interest rates later in the year after other large central banks were near or
at the end of their easing cycles.
The combination of falling inflation and central bank interest rate reductions contributed to the best annual returns in
global fixed income since 2020, based on Bloomberg’s Global Bond Aggregate index. Finally, gold delivered a return of
63% in US-dollar terms, its largest gain since 1979, lifted by strong demand as many central banks diversified their
reserves into gold, and strong investment demand supported the price.
Economic and market outlook for 2026
1
We expect the economic factors that supported global growth in 2025 to persist through 2026, including continued
investment in AI and generally healthy consumer spending across major regions. Although most major central banks are
unlikely to cut interest rates further, we expect low interest rates to persist throughout the year, providing an economic
tailwind. Fiscal policy also appears set to stimulate growth in several leading economies, including the US, Germany and
Japan. Geopolitical developments have the potential to raise risk premiums, and higher energy prices, if sustained, pose
a potential downside risk to the outlook. While uncertainty is significant, our base case view is that energy prices will not
stay high enough for long enough to materially weaken the global economy. Our base case projection is for only a slight
slowing of global GDP growth in 2026, to a still healthy 3.3%.
We expect US GDP to grow by 2.6%, accelerating from 2.2% in 2025, with fiscal stimulus and the lagged effect of
interest rate cuts offsetting the drag from a weaker labor market. Consumer demand should continue to be underpinned
by solid salary growth and healthy household balance sheets among middle- and upper-income class groups.
For the Eurozone, we expect GDP growth of just over 1% in 2026, down from 1.5% in 2025. Consumer sentiment
remains cautious, higher gas prices could present a headwind, and we expect growth in certain local markets, such as
Spain, to decrease to more normal levels after strong growth in 2025. At the same time, we expect Germany’s fiscal
stimulus and infrastructure spending to provide a boost in 2026. A healthier banking system is now better able to support
lending, and we expect an ongoing recovery in demand for goods, supporting the manufacturing sector in the Eurozone.
We forecast Swiss GDP growth of 1.3%. Although US tariffs and a strong Swiss franc represent headwinds, growth
should pick up in the second half of the year on the back of a rebound in the German economy.
We expect China to deliver GDP growth of 4.5%, with its five-year plan prioritizing technology innovation and industrial
upgrades. The rivalry with the US has the potential to create headwinds, but China’s ongoing focus on domestic upgrades
and supply-chain diversification is expected to help support economic stability, despite external uncertainty.
Regarding inflation, provided energy price rises are not sustained, we expect the global average to slow further to 2.9%
in 2026. In the Eurozone, inflation could fall below the central bank’s target, to average 1.8%, based on our forecasts.
We see consumer prices in Switzerland rising by just 0.3%, after 0.2% in 2025, at the bottom end of the SNB’s target
rate of between 0% and 2%. However, after interest rate cuts in 2024 and 2025, we are not forecasting further easing
from either the ECB or the SNB, although the SNB has signaled its willingness to intervene in currency markets in case of
excess Swiss franc strength. We expect prices to rise by 2.7% in the US, reflecting an unchanged inflation rate from
2025. Although this is above the Federal Reserve’s goal, we expect the US central bank to respond to a subdued labor
market by cutting rates twice in 2026.
A combination of a decent economic backdrop and continued optimism about the potential of AI to boost earnings
should lead to another year of gains for global stocks, in our view, albeit with likely volatility driven by concerns about
geopolitical developments, AI competition and credit risk. We expect earnings per share growth for the MSCI All Country
World index of almost 12% in 2026 to support market upside, despite historically elevated valuations. We also expect
another positive year for fixed income, given solid headline yields and the potential for major benchmark yields to fall
should inflation slow and central bank rates remain low.
1
Annual Report 2025 |
Our strategy, business model and environment | Our environment 30
Industry trends
Technological transformation, product innovation and evolving client expectations continue to emerge as key drivers of
change today, increasingly affecting the competitive landscape, as well as our offering, service models and operations. In
parallel, the state of our industry continues to be materially driven by regulatory, financial, macroeconomic and
geopolitical dynamics.
Emerging technologies
The continuous adoption of emerging technologies is accelerating and transforming our industry. Artificial intelligence
(AI) remains a key driver in enhancing client service and employee efficiency, enabling new business opportunities, and
transforming business models.
Generative AI is expanding AI’s reach across organizations, leading to new use cases and driving productivity. Agentic AI
is gaining traction, creating the potential to reduce cognitive load and unlock speed, scale and hyper-personalization by
enabling systems to act autonomously toward defined objectives. As these emerging technologies advance, so does the
associated risk landscape, making robust AI governance, risk control and data protection critical.
Across the industry, the focus is on responsible adoption of AI, ensuring robust risk and regulatory compliance, as well as
ethical and sustainability requirements. High-quality, well-governed data remains a fundamental requirement for the safe
and effective use of AI, ensuring that advanced models are trained on accurate, trusted information and can operate
reliably at scale. Although AI is a powerful tool, it cannot perform without human interaction. Banks must foster
environments where humans and AI work together, attract top engineering talent and invest in their workforce.
Digital assets and distributed ledger technology are driving a structural transformation across financial markets, gradually
reshaping how money is issued, assets are settled and trust is established. This shift has the potential to unlock meaningful
economic gains: near-instant settlement reduces counterparty and reconciliation risk; tokenization improves collateral
mobility, real-time valuation and balance sheet efficiency; programmability embeds business rules directly into assets; and
digital rails expand global reach.
As a global player, UBS is investing in emerging technologies to enhance the client and employee experience, while
maintaining its high standards of security and compliance.
›
Refer to the “Our strategy” section of this report for more information about our technology strategy
Generative AI in wealth management
AI has the potential to transform the entire wealth management value chain, from internal process efficiencies to how
we interact with our clients. We believe generative AI will continue to empower advisors to deliver more personalized
advice and efficient solutions.
1
servicing and advising our clients, as well as in internal support functions. For example, in client prospecting, early
adopters of generative AI have reported substantial benefits, multiplying their leads and doubling conversion rates.
2
At UBS, we enable clients and advisors to harness the power of AI through a robust operational backbone designed to
deploy and scale AI capabilities across our Global Wealth Management business.
Sustainable finance
In 2025, sustainability-oriented public market investment funds and exchange-traded funds recorded a new high of
USD 3.9trn
3
Europe remains by far the largest market with an 86% market share. Sustainability-oriented funds accounted for 12%
of all global private markets fundraising in 2025, reaching final-close size of USD 167bn and exceeding that of 2024.
4
Demand was highest for energy-transition-related infrastructure funds. Multiple industry surveys
5
the year consistently confirmed sustained investor interest and a commitment to sustainable investing. In the global
financing markets, the total issuance volumes of sustainable bonds grew 5% year on year (USD 849bn in 2025
6
). Green
bond issuance continued to dominate, accounting for 59% of total sustainable finance bond issuance in 2025.
6
label, the European Green Bond, debuted in the labeled market last year.
Annual Report 2025 |
Our strategy, business model and environment | Our environment 31
Finance has an important role to play as companies and individuals consider how best to approach the global economy’s
transition to a more sustainable world. Banks and investment managers can support this transition by effectively and
efficiently allocating capital and helping to mobilize investment and financing.
Sustainable finance and our commercial sustainability related product and services offering are a central part of our firm-
wide sustainability and impact strategy. Our business divisions are continuing to further develop the firm’s sustainable
finance capabilities in line with evolving client priorities. We support our corporate, institutional and private clients in
managing the risks and capturing the opportunities presented by the transition to a low-carbon economy.
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more
information about sustainability matters
›
Refer to “Regulatory trends” in the “Regulation and supervision” section of this report for more information about regulatory
policy trends in sustainable finance
›
Refer to the “Regulatory and legal developments” section of this report for more information about developments related to
environmental, social and governance matters
Client expectations
Technological advancements continue to reshape client expectations toward banks. Clients increasingly expect tailored,
seamless, on-time solutions, while trade tensions and policy uncertainty have increased demand for cross-border
capabilities. Convenience and smooth user experience and interfaces are essential. We expect the growing adoption of
AI and digital assets to expedite this change in expectations: the financial services sector needs to continue evolving, as
clients measure us against new benchmarks.
Recent geopolitical, macroeconomic and societal shifts have re-emphasized values such as security, trust and stability, as
well as the need to have a credible plan toward a sustainable future, leading to an increased focus on investment,
financing and advisory products and services that fit clients’ own sustainability preferences and ambitions.
Consolidation
The financial services sector is still highly fragmented. We expect further consolidation, with the key drivers being ongoing
margin pressure, a push for cost efficiencies and increasing scale advantages resulting from technology costs and
regulatory requirements. Participants in the financial services sector continue to seek increased exposure and access to
regions with attractive growth profiles, such as Asia and other emerging markets, through local acquisitions or
partnerships, as well as acquiring new capabilities addressing changes in market dynamics and overall client demands.
The increased focus on core capabilities and geographical footprint, as well as the ongoing simplification of business
models to reduce operational and compliance risks, is likely to drive further disposals of non-core businesses and assets
across the industry. While banks already face increasing challenges from digitalization needs and intensified competition,
uncertain macroeconomic and geopolitical conditions across major economies might create further pressure.
New competitors
Our competitive environment is evolving. In addition to traditional competitors in the asset-gathering businesses, new
entrants are targeting selected parts of the value chain, taking advantage of modern technologies without legacy
limitations and a lighter regulatory burden to challenge traditional banks’ operating models. In addition, we observe
traditional players pursuing partnerships or inorganic opportunities with emerging competitors, including fintech firms
and non-bank financial institutions, to acquire technology capabilities or accelerate client acquisition.
Over the long term, we believe emerging and established technology companies may also pose a threat to financial
services firms, given their strong client franchises and access to client data, if they decide to broaden the scope of their
services. While fintech firms continue to gain momentum, we do not expect a material disruption to our asset-gathering
businesses as long as we innovate. In addition, their long-term success will also depend on their ability to navigate our
regulatory landscape, build customer trust and maintain innovation. New competitors are not emerging in isolation; their
rise is closely intertwined with shifting client expectations and the advancing application of new technologies, such as AI
and digital assets. These forces are simultaneously reinforcing one another, accelerating the pace of change across the
industry. As competition intensifies, the way value is delivered and perceived is being reshaped, and we need to adapt
accordingly.
Annual Report 2025 |
Our strategy, business model and environment | Our environment 32
Growth of private markets
Over the past decade, private-market products have gradually evolved from niche alternatives, accessible only to
institutional investors and ultra high net worth individuals (UHNWIs), to reach a broader investor base. In 2025, this trend
accelerated, with high net worth individuals (HNWIs), affluent and retail clients, and retirement plan investors entering
the private market space or increasing their allocation, supported by regulatory changes reducing minimum investments
and improving liquidity. Novel fund structures offering continuous access, coupled with greater performance
transparency, enable investors to break down the silos between public and private markets, in favor of a total-portfolio
approach that blends public- and private-market assets in a single fund or model portfolio. In this context, we observe
private-market asset managers increasingly partnering with traditional asset managers and banks to jointly develop and
distribute new products specifically targeted at non-institutional investors. At the same time, this expansion also requires
an understanding, assessment and management of relevant risks, as private assets typically involve lower liquidity and
higher valuation complexity compared with public securities. As client demand for private assets expands over time,
banks’ ability to thrive will depend on their ability to navigate the operational, regulatory and advisory complexities of
private markets.
We are well positioned to serve client needs in this space. For example, we brought together our manager selection
franchises across Asset Management and Global Wealth Management, creating our Unified Global Alternatives business,
one of the leading limited partners globally. In addition, we entered into a strategic partnership with General Atlantic
Credit to enhance clients’ and borrowers’ access to a broader set of direct lending and other credit products.
Wealth development
General overview of wealth development
7
Personal financial assets, which include cash, deposits, securities, investment fund units, life insurance policies and
retirement plan capital awards, continued to grow, by around 7% in 2025, to an estimated USD 269trn as of the end of
2025. Absolute gains were especially strong in Asia Pacific, where personal financial assets grew by USD 8trn, or 9%,
followed by North America, with a growth of USD 6trn, or 6%. EMEA saw growth of USD 3trn, or 5%. Looking ahead,
North America is projected to lead the expansion of personal financial wealth, with an expected growth rate of 7% per
annum until 2030, followed by Asia Pacific (6%) and EMEA (5%). On average, global personal financial assets are
expected to grow at 6% per year until 2030.
North America remains the largest personal financial wealth pool (with 42% of global personal financial wealth), followed
by Asia Pacific (35%) and EMEA (21%).
Looking at our invested assets as of the end of 2025, about half were booked in the Americas (48%), with the remaining
half split between EMEA (34%) and Asia Pacific (17%).
Wealth segment view
7
Personal financial asset growth across the HNWI and UHNWI segments in 2025 was between 7.4% (for individuals with
personal financial assets between USD 1m and USD 5m) and 8.8% (for the UHNWI client segment, i.e. individuals with
personal financial assets in excess of USD 30m).
The client segment with personal financial assets between USD 1m and USD 5m continues to be the largest HNWI
segment, with USD 59trn, or 68% of global HNWI personal financial assets, with the remainder of such assets (i.e.
USD 27trn, or 32%) with clients whose assets are between USD 5m and USD 30m.
Expected growth of personal financial assets across the HNWI and UHNWI segments is very similar, with around 7% per
year until 2030. Looking ahead, we are building on our strong position in the UHNWI segment, while actively capturing
growth opportunities in the HNWI segment.
Wealth transfer
We expect a total global wealth transfer of over USD 83trn within the next 20 to 25 years, of which over USD 74trn will
be between generations. More than USD 50trn in wealth transfers is expected in the Americas, followed by roughly
USD 20trn in EMEA and USD 10trn in Asia Pacific.
8
plan to change financial advisors within one to two years of receiving an inheritance. The primary reasons cited for this
shift are insufficient digital service offerings (46% of respondents) and limited access to alternative investments (33%).
9
These findings highlight the importance of wealth managers engaging early with the next generation and proactively
addressing evolving client needs throughout the intergenerational wealth transfer process. UBS has a comprehensive
global offering from family advisory through business succession and wealth planning to philanthropy, addressing all
aspects of the client situation and catering for a wide range of client and family needs related to succession. In addition,
we renewed our long-standing partnership with the Young Investors Organization, the industry’s first and largest
community of ultra high net worth peers (1,900+ members from 75+ countries), offering tailor-made digital and in-
person programs to develop members’ skills and give access to top leaders from business, government and academia.
Annual Report 2025 |
Our strategy, business model and environment | Our environment 33
Female investors
10
The global wealth management industry is seeing a significant shift as women increasingly accumulate and control
greater proportions of wealth. This trend is driven by rising female participation in the workforce, entrepreneurship and
intergenerational wealth transfers. In 2025, there were 374 female billionaires, with their average wealth increasing by
8% to USD 5.2bn from 2024 to 2025, primarily driven by inheritance. From a wealth perspective, female billionaires have
grown their combined assets to USD 1.9trn.
We have had a dedicated advisory approach tailored to the needs and goals of female investors since 2017. We have
developed the Women’s Wealth Academy to help women acquire or deepen their financial know-how. In its fourth year,
the UBS Female Founder Project continued to address the female funding gap and help early-stage women entrepreneurs
build networks and investor readiness, supporting 212 female founders across 26 countries in 2025. UBS was named as
the Best Private Bank for Wealthy Women at the
PWM
The Banker
Entrepreneurs
Self-made entrepreneurs are a growing client group within the UHNWI segment. Our Global Entrepreneur 2025 survey
found that 55% of entrepreneurs consider expert guidance from their wealth advisor to be essential when selling or
exiting their business.
11
strategic partnerships, giving them direct access to valuable partners and resources. Additionally, we elevated our thought
leadership efforts in 2025 by publishing our first Global Entrepreneur Report, which provides fresh insights into how the
world’s top entrepreneurs manage their private wealth.
We offer entrepreneurs exclusive access to our Growth Entrepreneur Network and our Industry Leader Network,
facilitating meaningful connections among peers and industry veterans.
Trends in the asset management industry
The asset management industry maintained strong momentum in 2025, partly supported by a constructive macro-
economic environment. Industry trends remain intact: clients continue to seek passive and alternative asset classes, with
growth in alternatives increasingly skewed toward the largest players and exchange-traded funds (ETFs) that continue to
deliver record net new money growth. Structural headwinds around asset managers’ profit pools remain, as a result of
rising cost pressure coupled with continued margin compression, forcing asset managers to rethink their operating model
and to increasingly leverage technology and AI as differentiators. These continued structural dynamics and disruptors
point to signs of accelerating consolidation across the industry.
Passive investing continues to gain share
12,13
Passive investing continued to be important for clients, reinforced by fee sensitivity, the continued rise of model portfolios
and the growing client preference for transparent building blocks. As passive investing expands, differentiation
increasingly shifts away from “product only” toward portfolio design, outcomes (income, real assets, and downside
management) and advice-enabled solutions.
We have a long history of successfully managing indexed and rules-driven strategies across asset classes. Our flexible
investment platform enables us to create customized solutions to meet clients’ objectives.
ETFs are evolving into a primary distribution format
12,14
ETFs have extended their role from low-cost index access to a mainstream wrapper for outcomes, targeted exposures
(e.g. market factors, sectors or asset classes) and, increasingly, active management. Multiple market trackers and industry
commentaries pointed to record-setting ETF inflows in 2025 and continued expansion in both the equity and fixed-
income categories.
Active ETFs have moved further into the center of the competitive landscape, supported by an increase in product
launches and the adoption of ETFs within advisory channels and model portfolios.
We launched the UBS Core ETFs range in the first half of 2025, enabling investors to build cost-efficient, high-quality
foundations portfolios, as well as our first active ETFs.
1
AI@GWM, internal communication by Global Wealth Management.
2
BCG’s Global Wealth Report 2025.
3
Morningstar.
4
Preqin.
5
KPMG, BPN, Morgan Stanley, Bloomberg, UBS.
6
LSEG.
7
McKinsey Global Wealth Pools.
8
UBS Global Wealth Report 2025.
9
Capgemini Research Institute – World Report Series 2025: Wealth Management.
10
UBS Billionaire Ambitions Report 2025.
11
UBS Global Entrepreneur Report 2025.
12
BCG Global Asset Management Report 2025.
13
Investment Company Factbook 2025.
14
ETF book 2025.
Annual Report 2025 |
Our strategy, business model and environment | Our stakeholders 34
Our stakeholders
Clients
Our clients are at the heart of our business. We are committed to providing excellent client service and building and
sustaining long-term relationships based on mutual trust, integrity and respect. Understanding our clients’ needs and
expectations enables us to best serve their interests and to create value for them.
Our clients and what matters most to them
In Global Wealth Management, we are focused on serving the needs of both high net worth and ultra high net worth
individuals and selected institutional clients around the world through trusted relationships with our advisors and financial
intermediaries. Our distinctive approach to wealth management, with cross-divisional offerings, a broad array of solutions
and our global network, is underpinned by guidance from our Chief Investment Office. During 2025, the rapidly changing
market, influenced by global geopolitical shifts, the macroeconomic landscape and artificial intelligence (AI)-driven
transformation, prompted changes in our clients’ needs. Our focus on offering tailored advice, expertise and solutions
helped our clients navigate this uncertainty and was bolstered by key developments within our business. This included a
number of targeted investments in our Americas wealth management business, designed to enhance our multi-
disciplinary coverage model for ultra high net worth clients and strengthen how we deliver for high net worth and core
affluent clients. With trillions of US dollars of wealth expected to be passed from one generation to the next and client
migration trends spanning the next two decades, we have also expanded our Strategic Clients unit to include a Global
Connectivity mandate that focuses on enabling multi-jurisdictional access, partnering with clients to transfer wealth
across generations and leveraging our global network to connect clients seamlessly across markets.
Personal & Corporate Banking serves more than one-third of Swiss households and around 200,000 corporate clients.
We are the leading universal bank in Switzerland, supporting our clients via our credit offering and global capabilities and
footprint. We are leveraging the strength of the merged Swiss businesses to broaden our services and to promote
innovation to our clients.
In Asset Management, we manage relationships with institutional clients (including sovereign institutions, central banks,
pension funds and insurers), wholesale intermediaries and Global Wealth Management and its clients. By building long-
term, personalized relationships with our clients, we aim to earn their trust and understand their needs. In 2025, their
key concerns centered around geopolitical risk and the need for diversification across asset classes and geographies, as
well as a continued search for yield. Our global scale and the breadth of our investment offering – from traditional to
alternatives, from active to passive – mean we can build the right solutions to meet our clients’ detailed needs.
The Investment Bank provides corporate, institutional, financial sponsor and Global Wealth Management clients with
expert advice, financial solutions, execution and access to the world’s capital markets. Our business model is specifically
built around our clients and their needs, and to facilitate increased connectivity with our wealth management franchise.
Engaging with our clients
Our clients’ preferred communication channels continually evolve, and we strive to engage with them in the most
convenient way. We use a variety of channels, in particular digital channels and regular client relationship and service
meetings, as well as various corporate road shows and dedicated events, with a mix of hybrid and in-person events.
Global Wealth Management engages with clients through a broad range of forums and channels, from personalized
private briefings with subject matter experts to segment-specific virtual and in-person events and large-scale initiatives.
Through marketing and media campaigns, events, advertising, publications and digital-only solutions, we helped to drive
a greater awareness of the firm among prospective clients and reinforced trust-based relationships between advisors and
clients. We have continued to deliver capabilities to clients, for example through digitally enabled e-banking and advisory
tools, while also bringing the best of UBS to our clients via units such as Unified Global Alternatives, Unified Global
Banking and Unified Global Markets. We have also continued to leverage AI to positively impact our business and serve
our clients more efficiently. Examples include
STAAT Insights
, which assisted our US financial advisors in their client
interactions through the delivery of over 20 million insights in 2025, and our AI-powered chatbots, available across
regions. We believe AI will continue to enable more personalized advice and solutions more quickly, ensuring a more
efficient experience for our clients around the globe. It does not replace trust or human interaction, which are the
cornerstones of our business.
Personal & Corporate Banking engages with clients via various means of communication, including regular client events
(leveraging a number of formats, such as webcasts and in-person, virtual or hybrid events), as well as sustaining many
events formerly led by Credit Suisse. In 2025, we further enhanced our digital engagement strategies to reach more
clients and strengthen relationships with existing ones. We utilize various channels, including social media, online displays,
search engines and helplines, as well as our branch network.
Annual Report 2025 |
Our strategy, business model and environment | Our stakeholders 35
In Asset Management, we use various channels to bring our clients the ideas, understanding and clarity to support their
investment decisions. Our regular investor publications provide thematic perspectives and actionable insights,
supplemented by our global program of events, which includes our annual
The Red Thread
key international locations, as well as our flagship
UBS Reserve Management Seminar (RMS)
and
Sovereign
Investment Circle
in Singapore
.
best practices, while the annual
RMS
survey provides an authoritative insight into central bank, sovereign and investor
sentiment and trends. We also continued to host a broad range of hybrid and online events to help our clients better
understand market challenges and opportunities, as well as our ongoing engagement through our social media and
digital platforms.
The Investment Bank hosted more than 240 conferences globally in 2025, providing clients with access to corporations,
experts, research and capital introductions. The events covered a diverse range of topics, including macroeconomic,
geopolitical, technology and AI, and sector- and region-specific themes, in addition to regulatory, product and market
trends. More than 50,000 clients took part in such events over the year. We leverage our intellectual capital and
relationships and use our execution capabilities, differentiated research content, bespoke solutions, client franchise model
and global platform to expand coverage across a broad set of clients.
UBS Live Desk
,
UBS Neo
provides clients with a stream of fast-paced commentary from UBS traders. The
UBS Analytical Research Community
(UBS-ARC)
academics and analysts in the Americas region.
Investors
We aim to drive sustainable, long-term value creation for our investors by executing on our strategy, growth and integration
plans, while maintaining risk and cost discipline, and delivering attractive shareholder returns through the cycle.
Investor base
Our investor base is well diversified. A substantial proportion of our institutional shareholders are based in the US, the
UK and Switzerland.
›
Refer to the “Corporate governance” section of this report for more information about disclosed shareholdings
Our Investor Relations function is the primary point of contact between the firm and our investors
Our senior management and the Investor Relations function regularly interact with institutional investors, financial
analysts, credit rating agencies and other market participants. Clear, transparent and relevant disclosures, supported by
regular direct interactions with existing and prospective investors, form the basis for our communications. The Investor
Relations function regularly relays the views and feedback on UBS from institutional investors and other market
participants to our senior management.
The Investor Relations and Corporate Responsibility functions work together and interact with investors interested in
sustainability topics relevant to UBS and the wider society.
›
Refer to the first part of the “Corporate governance” section of this report and “Information policy” in that section for more
information
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more
information
Annual Report 2025 |
Our strategy, business model and environment | Our stakeholders 36
Employees
We seek to be a world-class employer for talented individuals across all our markets and a place where people can unlock
their full potential. We therefore invest in measures to strengthen our culture and to provide a framework for employee
growth and well-being as part of our overarching people-management approach.
The infographic above shows that on 31 December 2025 UBS had 105,236 employees by headcount (internal personnel).
On that date, 62,205 or 59% of our employee workforce were male and 42,958 or 41% female, 18% under the age of
30, 60% aged between 30 and 50, and 22% over 50. Switzerland was where 33% of our workforce were located, with
23% in the Americas, 24% in Asia Pacific and 20% in EMEA. Our employees come from 51 countries and jurisdictions,
hold 155 nationalities, speak 152 languages, and have an average of 9 years of service. All data was calculated as of
31 December 2025 on a headcount basis of 105,236 internal employees only (103,177 FTE). The number of external
staff as of 31 December 2025 was approximately 16,412 (workforce count). All quantitative headcount-related
disclosures include all UBS employees except the employees in the Savoy Hotel Baur en Ville AG, Ausbildungszentrum
Schloss Wolfsberg AG, Fides and Card
Center subsidiaries. Gender data is self-reported in HR systems and does not
include those who have chosen not to disclose as a male or female employee. Therefore, gender-specific numbers do not
match the overall total.
The three keys and our corporate culture
Our culture, grounded in our three keys to success (our Pillars, Principles and Behaviors), guides how we work together,
supports our business decisions and steers our people management approach.
Following the acquisition of the Credit Suisse Group in 2023, we continued to embed our culture across our combined
organization in 2025, to ensure it fully reflects our values and supports our strategy. Our cultural integration efforts were
guided by a dedicated Culture Integration Forum, which was instrumental in steering the firm’s cultural alignment; the
Corporate Culture and Responsibility Committee of the Board of Directors maintained oversight by reviewing and
monitoring activities across the Group related to corporate culture.
Our three keys to success were amplified through initiatives such as our global peer-to-peer recognition program,
Kudos
,
and through our
One UBS
Group Franchise Awards
. The
One UBS
program rewards cross-divisional business collaboration and recognizes employees for sharing innovation or simplification
ideas. Additionally, internal culture ambassadors played an active role in embedding our culture across the firm.
Throughout the year, global training programs, such as
Crafting our Future
, which was a series of interactive in-person
sessions sponsored by the Group Executive Board (the GEB), helped align managers at all levels of the organization around
our strategy and culture and equip them to contribute to our future growth.
›
Refer to
ubs.com/global/en/our-firm/our-culture.html
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more
information
Annual Report 2025 |
Our strategy, business model and environment | Our stakeholders 37
Hiring, developing and retaining talent
We hired a total of 8,024 external candidates, including graduates and apprentices, across the Group in 2025. We actively
promote multi-year apprenticeship programs in Switzerland and the UK, along with summer internship programs in the
US, EMEA, Asia Pacific and Switzerland. A total of 2,117 junior talents joined one of our various firm-wide internship,
graduate and apprenticeship programs.
›
Refer to
ubs.com/global/en/careers/awards.html
Personnel by region
As of
% change from
Full-time equivalents
31.12.25
31.12.24
31.12.23
31.12.24
Americas
24,016
26,360
27,638
(9)
of which: US
22,353
24,651
26,024
(9)
Asia Pacific
25,660
26,179
27,638
(2)
Europe, Middle East and Africa (excluding Switzerland)
20,285
21,927
22,686
(7)
of which: UK
7,889
8,685
8,970
(9)
of which: rest of Europe (excluding Switzerland)
11,826
12,656
13,085
(7)
of which: Middle East and Africa
570
586
631
(3)
Switzerland
33,216
34,182
34,880
(3)
Total
103,177
108,648
112,842
(5)
Talent management and development
In 2025, 59.4% (2024: 52.6%) of all eligible roles were filled by internal candidates, reflecting our strong culture of
internal mobility and commitment to employee development. We launched the
UBS My Career
connect employees with internal jobs, mentoring, rotations and learning opportunities and to facilitate targeted talent
management. Line managers are expected to play an active role in supporting both individual development and internal
career progression.
Our Group-wide talent offering is supplemented by programs in the business divisions, functions, and regions. Their aim
is to create a culture of cross-divisional and international mobility, developing versatile leaders at all levels of the
organization. Central to this approach is an annual talent and succession review to identify future leaders, ensure business
continuity and proactively manage employee development.
Internal training is delivered via our
UBS University
regulatory, business and line manager training, along with modules on culture, sustainable finance, artificial intelligence
(AI), data literacy, language learning, well-being and other topics. In addition to internal training, we continued our
partnership with a leading external provider in 2025 to offer employees access to thousands of additional learning
opportunities. In 2025, permanent employees completed more than 2.9 million learning activities (including mandatory
training), equating to an average of 22.9 training hours per employee.
Performance management
Our performance management approach (
MyImpact
) reflects our strategy and supports our high-performance culture.
Performance and behavior objectives help the firm assess both what an employee accomplishes and how our
Behaviors
(accountability with integrity, collaboration and innovation) are demonstrated. Regular check-ins, along with an
embedded feedback tool, enable employees to give and receive real-time feedback throughout the year, supporting
continuous improvement. Although each line manager retains the decision and ownership of the performance review,
they are supported by AI-enabled tools, including a summarization of the employee’s feedback, to support more holistic
and complete evaluations.
Fair and equitable pay
We pay for performance, and we take pay equity seriously. Across all our locations, we apply the same fair pay standards,
reinforced by annual reviews of our approach and policies in line with established equal pay methodologies. In 2025, our
statistical pay gap analyses reaffirmed that pay differences between male and female employees in similar roles across
our core financial hubs remained below 1%, a difference consistent with that for 2024. If we find any gaps not explained
by business or by appropriate employee factors, such as role, responsibility, experience, performance or location, we look
at the root causes and address them.
We also aim to ensure that all employees are paid at least a living wage. We regularly assess employees’ salaries against
local living wages, using benchmarks defined by the Fair Wage Network. Our latest review showed that all employees’
salaries were at or above the respective benchmarks.
›
Refer to the “Compensation” section of this report
for more information
Workforce inclusion
We are committed to being an inclusive workplace based on meritocracy, and we aim to build a culture of belonging
where all employees are recognized and valued, and where everyone can be successful and thrive.
Our strategy is built on four pillars: inclusive leadership, hiring, development and belonging. We leverage all four to
support our workforce and create an inclusive culture for everyone.
Annual Report 2025 |
Our strategy, business model and environment | Our stakeholders 38
Our governance framework enables leaders and employees to deliver the strategy and play a part in delivering an inclusive
environment. This guiding principle starts with the oversight and commitment of the GEB and is implemented by leaders
across the firm. In every location in which we operate, we continue to act in accordance with the current law and
regulations and will monitor any changes to ensure we remain consistent.
This strategy is reinforced by our public commitments to support all employees, including, but not limited to, the UN
Women’s Empowerment Principles, the Valuable 500 and the Race at Work Charter (in the UK). Of particular note is our
commitment to the Valuable 500, a global business collective of CEOs and their companies focused on advancing
disability inclusion that we have partnered with since 2021.
A sense of belonging drives employee engagement and is vital for both individual and organizational well-being. Acting
as an engine for engagement and belonging, our employee network chapters around the world connect employees on
a variety of topics. These communities, which are open to everyone, come together to celebrate all cultures, educate and
raise awareness, offer peer support, allyship, and networking opportunities, and help ensure the firm’s sustainable
growth by further strengthening our inclusive culture.
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting” at
ubs.com/investors
, and refer to
ubs.com/inclusion
Employee engagement and support
Our multi-faceted employee listening strategy, including short pulse surveys, employee life-cycle surveys and focus groups
on topics such as strategic alignment, work environment, AI and well-being, enabled us to gather insights from all the
business divisions. Our Group-wide employee survey, conducted in September 2025, assessed organizational-health
indicators, such as line manager effectiveness, employee engagement, empowerment and culture. The response rate was
81%, with an engagement score of 81% and an empowerment score of 87%. These results exceeded industry
benchmarks
1
and reaffirmed our commitment to remaining an employer of choice in the financial services sector.
Our benefits offering, which supports employees through every stage of life, is aligned with local markets and often
exceeds legal requirements. Employee assistance programs and internal teams help employees and their family members
manage personal or work-related issues that may affect their well-being. In addition, we promote employee health and
well-being through a range of programs, benefits and workplace resources, along with specialized e-learning curriculums.
In 2025, employees in every region participated in community volunteering activities, mental and physical health
initiatives, and financial education events. In addition to mentorships and peer-led sessions, we deepened our
commitment to the
#WorkingWithCancer
In 2025, most employees were eligible to work partially from home, depending on their role, regulatory restrictions and
location, along with divisional or functional requirements. Such arrangements, along with options such as part-time
schedules, flexible hours, job sharing and partial retirement, support employee engagement and retention and help us
attract a wider range of talent.
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more
information about our workforce, our people management approach and relevant data
1
Society
UBS aims to support an economy that prioritizes the well-being of people and planet. Through the UBS Optimus network
of foundations (the UBS Optimus Foundation), and in partnership with philanthropists, employees, implementation
organizations and institutional partners, we work to deliver systemic and catalytic impact for marginalized communities
globally and locally, with a focus on children and young people. The UBS Optimus Foundation is a global network of
separately organized and regulated, tax-exempt, charitable organizations, founded and managed by UBS, that make
grants and other financial contributions to implementing partner organizations aligned with their values and objectives.
In addition to mobilizing our clients’ resources to advance the missions of our portfolio of partners, we also seek to ensure
both the firm and employees are engaged in our Social Impact strategy. We do this mainly through charitable
contributions and employee volunteering.
In 2021, UBS set two goals: (i) mobilizing USD 1bn in philanthropic capital, which was achieved, ahead of schedule, in
2024; and (ii) reaching more than 26.5 million people by the end of 2025 (cumulative since 2021), which had been
exceeded by the end of 2025.
We know that working together is key to achieving these targets. We want to go beyond these outputs to create systemic
impact. That is why, in addition to providing insights, advice and execution services to clients and prospective clients, we
have increased our efforts in the areas of blended finance, collaborative philanthropy and impact transparency.
1
In blended finance, we continue to facilitate opportunities and partnerships that leverage public and private capital in
innovative ways.
Annual Report 2025 |
Our strategy, business model and environment | Our stakeholders 39
In collaborative philanthropy, we have brought together clients and partners on joint initiatives addressing global
challenges, most recently through the Resilio Fund, a bold initiative designed to strengthen the resilience of communities
responding to humanitarian crises. This fund backs what local NGOs and community groups are already doing to help
themselves by financing local mutual aid, scaling community services and supporting a faster, more accountable response
to crises. We have also continued our collaboration with the Lemann Foundation, supporting efforts to improve public
education outcomes across Latin America through an ecosystem approach involving local organizations, research
institutions and public-sector partners.
On impact transparency, our impact rating tool, which was introduced in 2024 and rates all grants and investments with
regard to intentionality, additionality and measurability, is now being deployed across all grants and investments. In
collaboration with Impact Frontiers, we have published the first results of this experience and are working to apply
artificial-intelligence-based algorithms to help our teams complete the tool more efficiently and enhancing impact
monitoring for swifter reporting and decision-making.
Our clients and partners are invited to be part of our impact ecosystem by supporting and engaging in various
collaborative initiatives and approaches.
The UBS Optimus Foundation
In 2025, the UBS Optimus Foundation raised USD 472m in donations (2024: USD 366m, both figures include UBS
matching contributions). The 2025 amount exceeded the ambition of reaching by 2027 USD 400m in donations each
year (including matching contributions). Going forward, the foundation aims to continue to raise a similar amount each
year. In 2025, the UBS Optimus Foundation committed USD 461m (2024: USD 310m) in grants from the foundations.
2
Investing for impact
In 2025, the UBS Optimus Foundation focused on strengthening its existing portfolio by mobilizing funding from clients,
so investees can achieve meaningful results. In addition, the foundation celebrated the successful final closing of the SDG
Outcomes Fund and advanced outcomes-based financing through its Outcomes Accelerator Program, reinforcing its
commitment to innovative approaches that deliver measurable impact.
UBS Collectives
Launched in 2020, the
UBS Collectives
focus on issues central to our impact strategy.
–
UBS Accelerate Collective: advancing innovative financing for education, health and climate outcomes.
–
UBS Climate Collective: strengthening coastal resilience through community empowerment, ecosystem restoration and
nature-based climate action.
–
UBS Transform Collective: promoting family-based care and transforming child protection systems.
Our three
UBS Collectives
and embark on a structured learning journey, while building meaningful connections with peers. Members benefit from
expert-led modules, donor update calls, access to subject matter specialists and immersive experiences that bring to life
impact on the ground.
Helping our clients structure their philanthropy: donor-advised funds
Donor-advised funds (DAFs) provide clients with an alternative charitable-giving vehicle to setting up their own
foundations, offering greater choice and personalization while being managed in line with their usual investment
approach. UBS operates its own DAF entities in Switzerland, Singapore, the UK and the Hong Kong SAR. In 2025,
USD 961m in donations was received into these UBS charitable entities (2024: USD 329m).
3
Supporting our communities
We have provided direct cash contributions through our affiliated foundations in Switzerland, through partnerships in
the communities where we operate and through contributions to the UBS Optimus Foundation. The combined value of
these contributions in 2025 was USD 84m (2024: USD 74m).
Employee volunteering
We have global targets for employee engagement through volunteering, which are built from the bottom up on the basis
of regional targets. In 2025, we successfully engaged 37% of our global workforce in volunteering (2024: 32%).
1
Currently, our impact transparency focus is on ensuring that all grants and investments supported by the UBS Optimus Foundation undergo consistent and transparent diligence, approval, management and reporting
processes, in line with industry standards.
2
3
Annual Report 2025 |
Our strategy, business model and environment | Our stakeholders 40
Our focus on sustainability
We are guided by our ambition to be a leader in sustainability. This is reflected in our vision to be the bank for the next
generation. To help us realize that vision, our sustainability and impact strategy is based on three overarching strategic
pillars: Protect, Grow and Attract.
Sustainability and impact vision: be the bank for the next generation
Protect
Manage our business in alignment with our
sustainable, long-term Group strategy and
evolving standards
Grow
Embed an innovative sustainability and impact
offering across all our business divisions
Attract
Be the bank of choice for clients and employees
Our sustainability and impact strategy
Protect
As part of our continued commitment to protect our clients’ assets and those of our firm, we are focused on managing
our business by aligning with the sustainable long-term Group strategy and evolving standards. We maintain a strong
control and risk framework to support our risk management processes and product offering, in addition to complying
with regulatory requirements. In addition, we have a climate transition plan in place to support our clients in the transition
to a low-carbon world and to reduce their exposure to transition risks, while also mitigating related risks to UBS.
Grow
We are continuing to expand our sustainability and impact product offering across all business divisions to meet our
clients’ evolving needs and to support them through the world’s transition to a low-carbon economy. Innovation in
product development, client reporting and engagement, as well as exploring artificial-intelligence-driven use cases to
streamline processes are key to delivering competitive solutions. To facilitate this, we have a dedicated Group
Sustainability and Impact Business Development & Client Forum, which focuses on client, product and impact approaches.
Attract
We aspire to be the bank of choice for clients and employees alike, maintaining top-quartile sustainability ratings and
positioning the firm as a go-to employer through our engagement and education programs. In 2025, our MSCI AA rating
was reaffirmed,
1
2
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting” at
ubs.com/investors
, for detailed
information about UBS’s sustainability strategy and activities
Our sustainability and impact governance
Sustainability activities are overseen at the highest level of UBS, by the Board of Directors (the BoD) and the GEB, and are
grounded in the Code of Conduct and Ethics of UBS (the Code).
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more
information about UBS’s sustainability and impact governance
The Code of Conduct and Ethics of UBS
In our Code, the BoD and the GEB set out the principles and practices that define our ethical standards, and the way we
do business, which apply to all aspects of our business. All employees must affirm annually that they have read and will
adhere to the Code and other key policies, supporting a culture where ethical and responsible behavior is part of our
everyday operations. In our Code, we make a commitment to acting with the long term in mind and creating value for
clients, employees, communities and investors. We aspire to create a fairer, more prosperous society, championing a
healthier environment, and to support addressing inequalities. Every year, the BoD and the GEB conduct a review of our
Code to ensure that developments key to our clients, employees and other stakeholders are reflected.
›
Refer to the Code of Conduct and Ethics of UBS, available at
ubs.com/code
, for more information, including recent updates
Reporting to our stakeholders on our sustainability strategy and activities
Further information about our sustainability efforts and commitments is provided in the UBS Group Sustainability Report
2025. The content of that report has been prepared in accordance with the Swiss Code of Obligations (Art. 964a et seq).
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting” at
ubs.com/investors
, for an overview of
non-financial disclosures in accordance with the Swiss Code of Obligations (Art. 964a et seq)
›
Refer to “Sustainability and climate risk” in the “Risk management and control” section of this report for UBS’s climate risk
metrics disclosures as required by Annex 5 to FINMA Ordinance on the Disclosure Obligations of Banks and Securities Firms
1
.
2
Annual Report 2025 |
Our strategy, business model and environment | Regulation and supervision 41
Regulation and supervision
As a financial services provider based in Switzerland, the UBS Group is subject to consolidated supervision by the Swiss
Financial Market Supervisory Authority (FINMA). Our entities are also regulated and supervised by authorities in each
country where we conduct business. Through UBS AG and
UBS Switzerland AG, which are licensed as banks in
Switzerland, UBS may engage in a full range of financial services activities in Switzerland and abroad, including personal
banking, commercial banking, investment banking and asset management.
As a global systemically important bank (a G-SIB), as designated by the Financial Stability Board, and a systemically relevant
bank (an SRB) in Switzerland, we are subject to stricter regulatory requirements and supervision than other Swiss banks.
›
Refer to the “Our evolution” section of this report for more information
›
Refer to the “Integration of Credit Suisse” section of this report for more information
›
Refer to the “Regulatory and legal developments” and “Risk factors” sections of this report for more information
Regulation and supervision in Switzerland
Supervision
UBS Group AG and its subsidiaries are subject to consolidated supervision by FINMA under the Swiss Banking Act and
related ordinances, which impose standards for matters such as capital adequacy and risk diversification rules, liquidity,
internal control systems, business conduct, and corporate governance. FINMA meets its statutory supervisory
responsibilities through licensing, regulation, supervision and enforcement. It is responsible for prudential supervision. It
undertakes direct inspections and mandates audit firms to perform regulatory audits and other supervisory tasks on its
behalf.
Capital adequacy and liquidity regulation
As an internationally active Swiss systemically important bank (an SIB), we are subject to capital and total loss-absorbing
capacity (TLAC) requirements that are based on both risk-weighted assets and the leverage ratio denominator, and are
among the most stringent in the world. We are also subject to liquidity requirements and to minimum long-term funding
requirements for Swiss SIBs.
›
Refer to the “Capital management” section of this report for more information about the Swiss SRB framework and the Swiss
too-big-to-fail (TBTF) requirements
›
Refer to the “Liquidity and funding management” section of this report for more information about liquidity coverage ratio, net
stable funding ratio requirements and the Swiss TBTF liquidity requirements
Regulation and supervision outside Switzerland
Regulation and supervision in the US
In the US, UBS is subject to regulation and supervision by the Board of Governors of the Federal Reserve System (the
Federal Reserve Board) under a number of laws. UBS Group AG and UBS AG are subject to the Bank Holding Company
Act, pursuant to which the Federal Reserve Board has supervisory authority over our US operations.
In addition to being a financial holding company under the Bank Holding Company Act, UBS AG has US branches, which
are authorized and supervised by the Office of the Comptroller of the Currency (the OCC). UBS AG is registered as swap
dealer with the Commodity Futures Trading Commission (the CFTC) and as securities-based swap dealer with the
Securities and Exchange Commission (the SEC).
UBS Americas Holding LLC is the intermediate holding company for our operations in the US outside of the UBS AG
branch network, as required under the Dodd–Frank Act, and is subject to requirements established by the Federal Reserve
Board related to risk-based capital, liquidity, the Comprehensive Capital Analysis and Review (CCAR) stress-testing and
capital planning process, and resolution planning and governance.
UBS Bank USA, a Federal Deposit Insurance Corporation (FDIC)-insured depository institution subsidiary, is licensed and
regulated by state regulators in Utah and is also supervised by the FDIC. It has received conditional approval from the
OCC to convert to a national charter and expects to complete the conversion in 2026. Following conversion, the OCC
will be the primary banking regulator for UBS Bank USA.
UBS Financial Services Inc., UBS Securities LLC, Credit Suisse Securities (USA) LLC and several other US subsidiaries of UBS
are subject to regulation by a number of different government agencies and self-regulatory organizations, including the
SEC, the Financial Industry Regulatory Authority, the CFTC, the Municipal Securities Rulemaking Board and national
securities exchanges, depending on the nature of their business. Certain of our activities in the US are subject to regulation
by the Consumer Financial Protection Bureau.
Regulation and supervision in the UK
Our regulated UK operations are mainly subject to the authority of the Prudential Regulation Authority (the PRA), which
is part of the Bank of England (the BoE), and the Financial Conduct Authority (the FCA). We are also subject to the rules
of the London Stock Exchange and other securities and commodities exchanges of which UBS AG is a member.
Annual Report 2025 |
Our strategy, business model and environment | Regulation and supervision 42
UBS AG has a UK-registered branch, UBS AG London Branch, which serves as a global booking center for our Investment
Bank. UBS AG also has regulated subsidiaries in the UK that provide asset management services. Credit Suisse
International and Credit Suisse (UK) Limited are authorized and regulated by the FCA and subject to the authority of the
PRA.
Regulation and supervision in Europe
UBS Europe SE, headquartered in Germany, is subject to the direct supervision of the European Central Bank (the ECB),
as well as to conduct, consumer protection and anti-money-laundering-related supervision by the German Federal
Financial Supervisory Authority and by the German Bundesbank. The entity is subject to EU and German laws and
regulations. UBS Europe SE maintains branches in Denmark, France, Ireland, Italy, Luxembourg, the Netherlands, Poland,
Portugal, Spain, Sweden and Switzerland and is subject to conduct supervision by authorities in all those countries.
In Italy, Credit Suisse (Italy) SpA has been integrated into UBS Europe SE and UBS has relinquished the banking license of
Credit Suisse Bank (Europe) SA. In Spain, UBS AG Spain Branch is supervised by the Bank of Spain, the Servicio Ejecutivo
de la Comisión de Prevención del Blanqueo de Capitales and the Comisión Nacional del Mercado de Valores.
Regulation and supervision in Asia Pacific
We operate in numerous locations in Asia Pacific, including Singapore, the Hong Kong SAR, mainland China, Australia
and Japan. The operations in these locations are subject to regulation and supervision by local financial regulators. Our
Asia Pacific regional hubs are in Singapore and the Hong Kong SAR.
In Singapore, UBS AG Singapore Branch and UBS Securities Pte Ltd are supervised by the Monetary Authority of Singapore
and the Singapore Exchange. UBS Asset Management (Singapore) Ltd is supervised by the Monetary Authority of
Singapore.
In the Hong Kong SAR, UBS AG Hong Kong Branch is supervised by the Hong Kong Monetary Authority and the Hong
Kong Securities and Futures Commission. UBS Securities Hong Kong Limited, UBS Securities Asia Limited and UBS Asset
Management (Hong Kong) Limited are supervised by the Hong Kong Securities and Futures Commission. In addition, UBS
Securities Hong Kong Limited is supervised by Hong Kong Exchanges and Clearing Limited.
In mainland China, we have multiple licenses to operate the business lines of UBS AG, and the various entities are subject
to regulation by a number of different government agencies. The People’s Bank of China oversees China’s macro capital
markets policies and ensures coordinated supervisory approaches by the National Financial Regulatory Administration
(the China Banking and Insurance Regulatory Commission until May 2023), the China Securities Regulatory Commission
and a number of exchanges.
In Australia, UBS AG Australia Branch is supervised by the Australian Prudential Regulation Authority, the Australian
Securities and Investments Commission, the Australian Transaction Reports and Analysis Centre, the Reserve Bank of
Australia, and the Australian Securities Exchange. UBS Securities Australia Ltd is supervised by the Australian Securities
and Investments Commission, the Australian Transaction Reports and Analysis Centre and the Australian Securities
Exchange. UBS Asset Management (Australia) Limited is supervised by the Australian Securities and Investments
Commission and the Australian Transaction Reports and Analysis Centre.
In Japan, UBS Securities Japan Co., Ltd. is supervised by the Financial Services Agency and the Japan Exchange Group.
UBS AG Tokyo Branch is supervised by the Financial Services Agency and the Bank of Japan. UBS SuMi TRUST Wealth
Management Co., Ltd. is supervised by the Financial Services Agency and the Japanese Ministry of Finance. UBS Asset
Management (Japan) Ltd and UBS Japan Advisors Inc. are supervised by the Financial Services Agency.
Financial crime prevention
Combating money laundering and terrorist financing has been a major focus of many governments in recent years. Laws
and regulations require effective policies, procedures and controls to detect, prevent and report money laundering and
terrorist financing, and the verification of client identities.
In Switzerland, the introduction of a transparency register will further strengthen the anti-money laundering (AML)
framework through increased ownership and control information. At EU level, the AML reform package, including the
Regulation establishing the EU Anti-Money-Laundering Authority, is aimed at strengthening EU-wide AML rules, including
by harmonizing requirements across EU Member States and imposing stricter due diligence obligations. The US AML
regulation is in an active implementation phase, with the Anti-Money-Laundering Act of 2020 driving expanded risk-
based obligations, enhanced information sharing and the rollout of new requirements that have not yet been codified.
At the same time, regulators are increasing supervisory scrutiny and enforcement expectations, emphasizing effectiveness,
data quality and the accountability of senior management rather than mere technical compliance.
Failure to introduce and maintain adequate programs to prevent money laundering and terrorist financing can result in
significant legal and reputational risk and fines.
We are also subject to laws and regulations prohibiting corrupt or illegal payments to government officials and other
persons, including the US Foreign Corrupt Practices Act and the UK Bribery Act. We maintain policies, procedures and
internal controls intended to comply with those regulations.
›
Refer to “Non-financial risk” in the “Risk management and control” section of this report for more information
Annual Report 2025 |
Our strategy, business model and environment | Regulation and supervision 43
Data protection
We are subject to regulations concerning the use and protection of customer, employee and other personal and
confidential information. This includes provisions under Swiss law, the EU General Data Protection Regulation (the GDPR),
US laws and laws of other jurisdictions.
In 2025, data protection developments were dominated by new artificial intelligence (AI) rules (including the first
enforcement of the EU Artificial Intelligence Act), tighter scrutiny of cross-border data transfers, and the continued spread
and toughening of privacy laws, and enforcement globally. As UBS is a global bank, these translate into strategic themes
around AI and data governance, cross-border data and cloud risk, regulatory fragmentation and rising expectations for
data sharing, transparency and customer control.
›
Refer to the “Risk factors” section of this report for more information about regulatory change
Recovery and resolution
The existing Swiss regulations require each SRB to establish an emergency plan to maintain systemically important
functions in case of impending insolvency. In response to these Swiss requirements and similar ones in other jurisdictions,
UBS has developed the Global Recovery Plan (the GRP), the Global Resolution and Restructuring Strategy and the Swiss
Emergency Plan (the SEP), as well as other local recovery and resolution plans for its key regions (to the extent required).
The plans describe how to restructure and / or wind down businesses if the Group could not otherwise be stabilized.
FINMA evaluates the recovery and resolution plans of Swiss SRBs on a regular basis. Similarly, the local recovery and
resolution plans are evaluated by the respective local authorities.
Global Recovery Plan
The GRP sets forth measures to restore financial strength if UBS comes under severe capital or liquidity stress. Its objective
is to sustainably stabilize the Group in case of a crisis without government intervention. Quantitative and qualitative
triggers are monitored and are subject to predefined governance and escalation processes. Recovery options are linked
to owners and checklists, with the objectives of preserving capital, raising capital or liquidity, or disposing of or winding
down businesses. In September 2025, FINMA announced that a full assessment of UBS’s recovery plan was not possible,
due to the ongoing integration of Credit Suisse into UBS and the resulting rapid pace of change. UBS submitted an
updated GRP in summer 2025, which is currently under review by FINMA.
Global Resolution and Restructuring Strategy
FINMA produces a global resolution plan for UBS setting out measures that FINMA can take to resolve UBS in an orderly
manner. FINMA’s preferred strategy for UBS is a single point of entry (SPE) strategy involving write-down of the Group’s
remaining equity and additional tier 1 (AT1) and tier 2 instruments, conversion of senior unsecured bonds of
UBS Group AG to equity, if required, and an internal recapitalization of undercapitalized subsidiaries to shift losses to
UBS Group AG. Post-resolution restructuring measures could include disposals and / or wind-down of businesses and
disposals of assets. Over the years, UBS made structural, financial and operational changes to facilitate these measures
and is confident that a resolution of the Group is operationally executable and legally enforceable. FINMA’s September
2025 resolution report on UBS confirms that a bail in remains operationally executable for UBS, and an SPE resolution
strategy remains the preferred strategy for UBS.
Alternative Resolution Strategy
Following the Credit Suisse crisis, related parliamentary investigations and lessons learned, FINMA determined that UBS’s
resolution planning must be further developed to increase the number of options available to FINMA in case of a
resolution. These additional options, which will be documented in the Alternative Resolution Strategy going forward,
should include a forced sale of the Group in its entirety and a solvent market exit (either via disposal or wind-down or a
combination of both). In case of an insolvency threat, the additional resolution options would allow the authorities to
choose the approach with the best prospect of safeguarding financial stability internationally and maintaining systemically
important functions in Switzerland, without having recourse to taxpayers’ money. Initial concepts for the Alternative
Resolution Strategy were developed by UBS and are under review by FINMA; however, their implementation is subject to
the ongoing legislative change process.
Swiss Emergency Plan
The SEP demonstrates how UBS’s systemically important functions and critical operations in Switzerland can continue if
the UBS Group cannot be restructured. This is achieved mainly by operating these functions in a separate legal entity,
UBS Switzerland AG, and by ensuring its financial and operational self-sufficiency to enable its continued operation
throughout a crisis. Although UBS’s SEP was deemed largely compliant with current regulatory requirements, FINMA has
determined that it will need to be integrated into the new Alternative Resolution Strategy going forward (which, in turn,
is subject to the ongoing legislative change process as noted under “Alternative Resolution Strategy” above).
Other local recovery and resolution plans
The US resolution plan sets out the steps that could be taken to resolve the US intermediate holding company, UBS
Americas Holding LLC, and its subsidiaries if it suffered material financial distress and UBS Group was unable or unwilling
to provide financial support. As required by US regulations, UBS’s US plan contemplates that UBS Americas Holding LLC
will commence US bankruptcy proceedings. Prior to this, the plan envisages UBS Americas Holding LLC downstreaming
financial resources to its respective subsidiaries to facilitate an orderly wind-down or disposal of businesses. UBS filed its
updated US resolution plan in October 2025.
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UBS Europe SE updates a local recovery plan annually based on ECB requirements as well as resolution planning
information and capabilities based on Single Resolution Board requirements. On the basis of such information, the
Internal Resolution Team, composed of members of the Single Resolution Board, produces a resolution plan for
UBS Europe SE.
Other local recovery and resolution planning is in place for various Group entities and jurisdictions.
Crisis management framework
The UBS Group’s crisis management framework assigns responsibility and actions depending on the nature of the stress
incident and the scale of the response needed. As such, it connects the recovery and resolution planning with the earlier
stages of crisis planning.
–
For incident, risk and crisis management, the Group Crisis Task Force works with incident management teams that
provide monitoring and early-warning indicators at the local / regional level, without needing to activate protocols at
the Group level. If a local response is insufficient, global task forces and crisis management teams provide decision-
making guidance and coordination, including crisis management plans, protocols and playbooks, and contingency
funding plans.
–
The Group Executive Board (the GEB) and the Board of Directors (the BoD) would evaluate and decide upon the need
to activate the GRP if a stress event has reached a severity requiring activation based on the GRP’s recovery risk
indicators.
–
FINMA has the authority to determine whether the point of non-viability, as defined by Swiss law, has been reached
and, as part of the Global Resolution and Restructuring Plan for UBS, has the power to order the bail in of creditors to
recapitalize and stabilize the Group, limit payments of dividends and interest, alter the legal structure of the Group,
take actions to reduce business risk, and order a restructuring of the Group.
Regulatory trends
The regulatory environment continues to evolve, with some policymakers aiming to simplify and / or reduce regulatory
constraints, while others remain focused on addressing vulnerabilities revealed by the March 2023 banking turmoil. In
Switzerland, for example, authorities are advancing reforms to the TBTF regime aimed at further strengthening financial
stability. Following the consultations on stricter capital and liquidity requirements, the focus is now shifting to
implementation through legislation and ordinances. This includes finalizing the Capital Adequacy Ordinance and foreign
subsidiary capital rules, as well as advancing consultation drafts on other regulatory areas, such as enhanced governance
and strengthened recovery and resolution planning.
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In contrast, other major jurisdictions, such as the EU, the UK and the US, are increasingly shifting their policy and
regulatory approaches toward promoting a pro-growth and competitiveness agenda. The US administration’s
deregulatory stance has prompted reviews of supervisory standards for banks and caused delays in major regulatory
initiatives, including the implementation of Basel III, while the EU and the UK have postponed or streamlined regulatory
initiatives to reduce administrative burdens on companies and mobilize private capital. These divergent approaches are
contributing to concerns over regulatory fragmentation, with differences in timelines and content posing challenges for
globally active banks.
Digitalization and digital asset regulations continue to progress, with global policy responses adapting to rapid technical
developments. The EU Markets in Crypto-Assets Act and the US GENIUS Act are establishing new frameworks for
stablecoins and digital assets, and Switzerland is consulting on new stablecoin and crypto service provider licenses. The
Basel Committee on Banking Supervision (the BCBS) announced a targeted review of its prudential standards for banks’
crypto asset exposures. AI has also attracted heightened supervisory and regulatory attention, with the EU’s expansive AI
Act entering into force, while other jurisdictions opt for sector-specific or incremental approaches. However, as an
expression of strategic technology competition, the focus in many countries has shifted from strict safety to supporting
responsible AI innovation. Cybersecurity and third-party risk management concerns also remain prominent, with
expanded incident reporting and critical third-party regimes under development in many jurisdictions. At the international
level, the BCBS has approved its final principles for the sound management of third-party risk, and the Financial Stability
Board has finalized the common Format for Incident Reporting Exchange.
Sustainable finance was marked by important revisions of regulations in certain jurisdictions, driven by competitiveness
and growth considerations, but with very different approaches leading to further fragmentation. The EU is seeking to
simplify and refine its framework to reduce the regulatory and reporting burden on businesses, while the US is pursuing
a path of deregulation. In this context, Switzerland has paused its work on sustainability reporting and sustainability due
diligence pending the finalization of the EU review, while the UK is cautiously developing its own framework with a focus
on international alignment and interoperability. In contrast, with the growing frequency of climate-related disasters,
supervisory attention to improve the management of climate and nature-related financial risks continues to increase,
especially in Europe. In addition, nature-related topics, transition finance and carbon markets are increasingly gaining
policy traction globally, with significant efforts underway to support their global convergence through standardized
frameworks and regulations.
Financial stability risks in the non-bank financial intermediation (NBFI) sector are an increasing concern, with global work
aiming to improve NBFI data availability to make risk assessments more credible, starting with initial work in the areas of
leverage and private credit, due to their high expected materiality with regard to financial stability. In the UK, a system-
wide stress test has been launched to further assess the systemic risk, mainly by private markets, in the event of stress.
Anti-money-laundering reforms in Switzerland will impact our due diligence processes, while the global sanctions
environment remains complex, including the continued implementation of additional sanctions measures against Russia
by the EU, the US and Switzerland. In addition, market structure reforms, such as shortening the standard settlement
cycle for financial trades to one business day after the trade date (T+1), from two business days after the trade date (T+2),
are progressing in Europe.
Looking ahead to an environment marked by geopolitical uncertainties, shifting global dynamics and the risk of increasing
regulatory fragmentation, we are convinced that our prudent adaptations in a dynamic environment and our diversified
business model put us in a solid position to absorb upcoming changes to the regulatory framework.
›
Refer to the “Regulatory and legal developments” section of this report for more information
Regulatory and legal developments
Developments in Switzerland
In June 2025, the Swiss Federal Council published regulatory proposals that aim to further strengthen banking stability
in Switzerland. Proposed measures to be submitted to the Swiss Parliament for enactment would exclude from common
equity tier 1 (CET1) capital investments in foreign subsidiaries of systemically important banks (SIBs), include additional
requirements for the recovery and resolution of SIBs, add measures to increase the potential for obtaining liquidity via
the Swiss National Bank (the SNB), introduce a Senior Managers Regime for banks, and provide additional powers for the
Swiss Financial Market Supervisory Authority (FINMA).
Proposed measures at the ordinance level would exclude capitalized software and deferred tax assets (DTAs) on temporary
differences from CET1 capital, add stricter requirements for prudential valuation adjustments (PVAs) of assets and
liabilities, require suspension of interest payments for additional tier 1 (AT1) capital instruments in the event of a
cumulative loss over four quarters, and introduce measures that aim to enable FINMA and other authorities to better
assess the situation of banks in a liquidity crisis. The Swiss Federal Council has proceeded towards implementation of
these recommendations through several legislative and regulatory packages.
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A public consultation on proposed measures at the ordinance level ended in September 2025. The Swiss Federal Council
is expected to publish final amendments to the ordinance in the first half of 2026, with entry into force not expected
before January 2027.
A separate public consultation on proposed legislative amendments to capital requirements related to foreign subsidiaries
ended in January 2026. The proposed changes would require the deduction of investments in foreign subsidiaries of SIBs
from CET1 capital. The proposal states that the amendments would enter into force in 2028, at the earliest, starting with
a 65% deduction requirement in the first year and increasing to 100% by 5-percentage-point increments each year over
seven years. The Swiss Federal Council is expected to submit its proposal to the Swiss Parliament in the first half of 2026.
The Swiss Federal Council is also expected to launch consultations on additional legislative measures in the summer of
2026, including incremental requirements for the recovery and resolution plans of SIBs, measures aimed at increasing the
potential for obtaining liquidity via the SNB, the introduction of an enhanced accountability framework for senior
managers of banks, and the provision of additional powers for FINMA. Following the consultation, these measures are
expected to be submitted to the Parliament in the first half of 2027, with entry into force expected in 2028 or 2029. In
addition, a public consultation on amendments to the Liquidity Ordinance is expected to be launched in the summer of
2026. The proposals are expected to set minimum requirements for maintaining borrowing capacity for emergency
liquidity assistance.
Estimated incremental capital from proposed changes to the capital framework
We currently estimate that UBS AG would be required to hold additional CET1 capital of around USD 22bn if all capital
measures were implemented as proposed by the Swiss Federal Council. This estimate includes around USD 20bn related
to the full deduction of UBS AG’s investments in foreign subsidiaries, of which approximately USD 6bn would be required
at the start of the proposed phase-in period, and around USD 3bn from the potential deduction of DTAs on temporary
differences, capitalized software and PVAs.
The incremental CET1 capital of USD 22bn at UBS AG would increase UBS Group AG’s CET1 capital ratio to around
18.5%, calculated from its target ratio of around 14%. The proposed measures related to DTAs on temporary differences,
capitalized software and PVAs would eliminate around USD 11bn of net CET1 capital at UBS Group AG, which, as a result
of this elimination, would reduce the estimated CET1 capital ratio for the Group from 18.5% to 16.5%.
This current estimated incremental capital of USD 22bn resulting from the proposed changes in Swiss capital requirements
would be on top of the additional capital UBS is required to hold as a result of the acquisition of the Credit Suisse Group.
This includes around USD 9bn to remove the regulatory concessions granted to Credit Suisse and around USD 6bn to
meet the progressive add-on due to the increased leverage ratio denominator (LRD) and higher market share of the
combined business. The phase-in of the capital requirements relating to the increases in LRD and market share
commenced on 1 January 2026 and will be completed by 1 January 2030.
Altogether, if the proposed changes by the Swiss Federal Council were adopted as proposed, UBS would be required to
hold around USD 37bn in additional CET1 capital.
These estimates have been calculated based on our balance sheet at 31 December 2025, assume that all capital measures
are adopted as currently proposed and use an assumed CET1 capital ratio of 12.5% for UBS AG, the lower end of our
target range of 12.5–13.0%, and 14.0% for UBS Group overall. The estimates also reflect capital repatriations of USD 3bn
from UK subsidiaries planned for 2026.
The estimate of UBS AG‘s incremental capital requirements at 31 December 2025 is around USD 2bn lower than the
estimate of USD 24bn we published on 6 June 2025 in response to the Swiss Federal Council proposal, which was based
on our first quarter 2025 balance sheet, (and USD 4bn lower than the estimate of USD 26bn based on UBS AG’s target
capital ratio of 12.5%). The reduction primarily results from accelerated repatriation of capital from UBS AG subsidiaries
enabled by the rapid wind-down of Non-core and Legacy, timely and successful execution of our integration plans, and,
in the case of the US, improving profitability expectations and improvements in our most recent Internal Capital Adequacy
Assessment Process (ICAAP) and Dodd-Frank Act Stress Test (DFAST) results.
UBS AG’s CET1 capital ratio of 14.2% at 31 December 2025 reflects these accelerated capital repatriations. As previously
communicated, we expect UBS AG’s CET1 capital ratio to remain above our target levels in the near term, mainly due to
leverage ratio considerations driven by the weakening of the US dollar.
UBS’s position
UBS has submitted responses to the consultations on the proposed measures at the ordinance level and on legislative
amendments. UBS overall supports the Swiss Federal Council's objective of drawing lessons from the Credit Suisse crisis
and strengthening the regulatory framework with targeted, proportionate and internationally aligned measures.
However, the proposed full deduction of foreign subsidiaries from CET1 capital clearly does not meet these criteria and
is excessive. In addition, UBS has outlined that the proposed regulatory treatment of capitalized software, DTAs on
temporary differences and PVAs is a combination of the maximum requirements of various jurisdictions and does not
give due consideration to the ultimate impact of the overall package, comparisons to the capital regimes in peer countries
or the cost of such extreme measures. Switzerland already has one of the strictest regulatory capital regimes, with
substantial progressive capital surcharges and a conservative and early implementation of the final Basel III rules. The
Swiss Federal Council’s proposals would significantly increase the requirements and would contrast sharply with
developments across Europe, and in the US, which have proposed, or are expected to implement, less restrictive capital
regimes.
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FINMA resolution report on UBS
In September 2025, FINMA published its 2025 resolution report on UBS related to the 2024 fiscal year. FINMA concluded
that UBS remains resolvable under UBS’s existing preferred resolution strategy, which includes a recapitalization via a
bail-in at the Group holding company level.
›
Refer to “Recovery and resolution” in the “Regulation and supervision” section of this report for more information
Developments related to the implementation of the final Basel III standards
In Switzerland, the amendments to the Capital Adequacy Ordinance (the CAO) that incorporate the final Basel III
standards into Swiss law entered into force on 1 January 2025. The adoption of the final Basel III standards led to an
USD 8.6bn reduction in the UBS Group’s RWA. A USD 6.5bn increase in market risk RWA resulting from the
implementation of the Fundamental Review of the Trading Book (the FRTB) framework was more than offset by a
USD 9.0bn reduction in operational risk RWA and a USD 6.1bn reduction in credit and counterparty credit risk RWA. The
output floor, which is being phased in until 2028, is currently not binding for the UBS Group. The final Basel III
implementation in Switzerland had a cumulative net impact on UBS Group of adding around USD 60bn of RWA since
UBS started preparing for its adoption with a series of model updates and methodology changes over the last ten years.
In January 2026, the Prudential Regulation Authority (the PRA) published its final policy statements implementing the
Basel 3.1 standards in the UK. Implementation remains set for 1 January 2027, with full phase-in by 1 January 2030,
except for the implementation of the internal model approach for market risk (the FRTB Internal Model Approach), which
has been postponed to 1 January 2028. The FRTB regulation for standardized and advanced standardized approaches
will apply from 1 January 2027. The impact of the UK Basel 3.1 regulations on UBS is expected to be immaterial.
In the EU, the final Basel III requirements became applicable as of 1 January 2025, except for the FRTB regulation, the
implementation of which has been delayed until 1 January 2027, as confirmed by the European Commission (the EC) in
September 2025. In addition, the EC conducted a public consultation, concluded in January 2026, on policy options to
temporarily mitigate negative impacts stemming from the absence of a level playing field with regard to the
implementation of FRTB rules. UBS Europe SE is subject to Basel III regulations in the EU. The impact on UBS can only be
determined once the EC publishes its final decision.
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In the US, banking agencies, including the Federal Reserve Board, have been discussing amendments to their original
proposals regarding the implementation of the final Basel III standards. We expect that a re-proposal will be issued in the
first half of 2026. UBS Americas Holding LLC is subject to the US requirements. The impact on UBS can only be determined
once the US publishes its final rules.
US supervisory changes
In August 2025, the Federal Reserve Board reduced the stress capital buffer (the SCB) of UBS Americas Holding LLC, our
US-based intermediate holding company, to 5.2%, from 9.3%, applicable from 1 October 2025 under the Federal
Reserve Board’s SCB rule, resulting in a total CET1 capital requirement of 9.7%. The SCB for UBS Americas Holding LLC
is derived from the results of the Federal Reserve Board’s 2025 DFAST released in June 2025.
Earlier in 2025, the Federal Reserve Board proposed measures to reduce the volatility of the SCB requirements by
averaging the capital stress test results from the past two years, with the aim of making capital planning more predictable
for banks. In addition, the Federal Reserve Board proposed moving the effective date for the annual SCB updates from
1 October to 1 January to allow more time to meet the new requirements. We expect the final rules to be published in
the first half of 2026.
US federal banking agencies have undertaken several initiatives to reform supervisory standards with the stated objective
of prioritizing material financial risks. In October 2025, the Federal Deposit Insurance Corporation (the FDIC) and the
Office of the Comptroller of the Currency (the OCC) issued two proposals. The first proposal aims to clarify supervisory
standards regarding the circumstances under which a deficiency would rise to the level of a supervisory finding or
enforcement action. The second proposal would prohibit examiners from criticizing or taking adverse action on the basis
of reputational risk. In November 2025, the Federal Reserve Board released a statement of supervisory operating principles
that outlines objectives for supervision, expressing its focus on material financial risks over process-based concerns. The
Federal Reserve Board has also finalized a rule to amend its supervisory rating framework for large bank holding
companies. Under the rule, which became effective on 16 January 2026, the Federal Reserve Board will take a more
holistic approach in determining whether it considers covered companies to be well managed. The impact of these will
depend on the implementation by examination staff at these agencies.
In addition, in August 2025, a presidential executive order directed the US federal banking agencies to identify supervised
institutions that have previously engaged or are currently engaged in “politicized or unlawful debanking”, which the
order defined as restrictions on access to financial services based on a customer’s political or religious beliefs or lawful
business activities. In December 2025, the OCC released preliminary findings from its supervisory review of debanking
activities at the nine largest national banks that it supervises. The OCC determined that the banks had policies or practices
that limited access to banking services for certain customers and has recommended documentation of individualized,
objective, risk-based analyses for any decision to restrict access to banking services. The full impact of this issue will be
dependent on the outcome of ongoing debanking reviews of the OCC and other federal banking agencies.
In January 2026, the OCC issued a conditional approval for UBS Bank USA’s application to become a national bank.
Developments related to environmental, social and governance matters, and sustainable finance
Developments in the EU to simplify regulations regarding environmental, social and governance matters
In February 2025, the EC published proposals to simplify the requirements of the Corporate Sustainability Reporting
Directive (the CSRD), the reporting requirements under the Taxonomy Regulation and the Corporate Sustainability Due
Diligence Directive (the CSDDD), with a view to reducing the reporting and regulatory burden, in particular for small and
medium-sized enterprises, and to enhancing the EU’s competitiveness. In April 2025, EU legislators approved the
directive, delaying certain application dates of the CSRD and the CSDDD, with that directive entering into force on
17 April 2025.
In July 2025, the EC adopted amendments to the European Sustainability Reporting Standards (the ESRS) to allow wave
one companies subject to CSRD reporting to omit certain of the ESRS disclosures for the 2025 and 2026 financial years.
Also in July 2025, the EC adopted final measures to simplify the disclosure requirements under Art. 8 of the EU Taxonomy
Regulation.
In July 2025, Germany’s Federal Ministry of Justice and Consumer Protection published a new draft bill to implement the
CSRD. While legislative steps were taken, full enactment before 31 December 2025, for application to the 2025 financial
year, has not taken place. As a result, CSRD reporting was not made mandatory in Germany for the 2025 financial year
for large companies that are subject to wave one reporting requirements of the CSRD, which would have included
UBS AG (having selected Germany as its EU home member state under the EU Transparency directive).
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In December 2025, EU legislators reached a final agreement on proposals to simplify the requirements of the CSRD and
the CSDDD. The agreement provides for a significantly reduced scope of application of both the CSRD and the CSDDD,
while maintaining their extra-territorial application. Companies within the scope of the CSDDD will be required to take a
risk-based approach when conducting due diligence and will no longer have to adopt a transition plan for climate change
mitigation. EU Member States will have to transpose the revised CSRD into national law within the 12 months following
its entry into force, which is expected in the first quarter of 2026. With regard to the CSDDD, the transposition deadline
has been further postponed until July 2028, with compliance to be achieved by July 2029. UBS AG and UBS Europe SE,
would remain within the scope of the revised CSRD and become subject to CSRD reporting once Germany has transposed
this directive. We are assessing the expected impact of scope changes of the revised CSDDD.
On 1 January 2026, simplification measures to the reporting requirements under Art. 8 of the EU Taxonomy Regulation
became effective. Companies have the option of implementing the changes for the 2025 financial year or the 2026
financial year. The measures aim to reduce the burden and costs of taxonomy reporting for companies pending the
completion of the comprehensive review of the EU Taxonomy Regulation and related reporting rules in 2026. UBS is
applying the changes to the taxonomy reporting of UBS AG standalone and UBS Europe SE consolidated for the 2025
financial year.
›
Refer to the “Sustainability statement” section of the UBS AG Annual Report 2025 (for filing in the EU), available under “Annual
reporting” at
ubs.com/investors
, for more information
US climate disclosure requirements
In March 2025, the US Securities and Exchange Commission (the SEC) announced that it would end its legal defense of
its 2024 climate disclosure regulation. The implementation of the regulation had previously been suspended by the SEC
as a result of legal challenges. Certain US states have adopted or intend to adopt specific state-level climate risk disclosure
requirements for companies operating in their respective states. UBS will monitor these developments to assess impact
as rules are finalized.
The Swiss Federal Council pauses the revision of the Ordinance on Climate Disclosures
In June 2025, the Swiss Federal Council decided to pause the revision of the Ordinance on Climate Disclosures until the
approval of the ongoing revision of the overarching legislation on sustainability reporting in the Swiss Code of Obligations
or until 1 January 2027, at the latest.
Changes to the UK senior management function and material risk taker compensation schemes
In October 2025, the Prudential Regulation Authority and Financial Conduct Authority adopted changes to their
regulations on the compensation of senior managers and material risk takers. The revised regulations generally reduce
the portion of incentive compensation subject to mandatory deferral, reduce the mandatory deferral periods for incentive
compensation to a uniform four years, eliminate post-vesting blocked periods and permit awards to accrue interest and
dividends. Changes are generally effective immediately and companies may elect to apply certain elements of the revised
requirements to awards in the current compensation year, as well as to outstanding deferred incentive compensation
plans. UBS is assessing the changes and the related impacts.
Mutual recognition agreement with the UK approved by the Swiss Parliament
In March 2025, the Swiss Parliament approved the Berne Financial Services Agreement (the BFSA) with the UK, which
facilitates cross-border financial activities based on a new model for regulatory cooperation and outcomes-based mutual
recognition of domestic rules. The BFSA is supplemented by an enhanced and closer supervisory process and additional
supervisory arrangements where new market access is granted. Regulations to implement the BFSA in the UK were
submitted to UK Parliament in July 2025 and entered into force on 1 January 2026.
Digital assets and artificial intelligence
Developments related to digital assets
In October 2025, the Swiss Federal Council launched a consultation on proposed amendments to the Financial Institutions
Act aimed at improving the framework conditions for market development, the attractiveness of the Swiss financial center
and the integration of innovative financial technologies into the existing financial system. The proposal introduces two
new license categories: a payment instrument institution (PII) license, which would allow the holder to issue a 1:1-backed,
single currency regulated stablecoin; and a crypto-institution (CI) license to provide cryptocurrency services, including
staking, custody and trading. Under the proposal, banks would need to have a separate PII-licensed entity to issue a
regulated stablecoin. However, existing banking licenses would allow banks to conduct CI services. The Swiss Federal
Council plans to submit a draft bill to the Swiss Parliament, likely by the end of 2026. Separately, the Swiss Parliament
decided in November 2025 to postpone debate on the national implementation of the Crypto Asset Reporting Framework,
issued by the Organisation for Economic Co-operation and Development, pushing implementation beyond 2026. In
September 2025, FINMA issued guidance on the disclosure of crypto-based assets in the annual financial statements of
banks and securities firms.
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In the US, the Guiding and Establishing National Innovation for US Stablecoins Act (the GENIUS Act) was signed into law
in July 2025, establishing a federal framework for stablecoin issuers. The banking agencies and the US Treasury are now
working to implement the law. In January 2025, a presidential executive order (an EO) was issued to promote the growth
and use of US digital assets. Federal agencies have taken some actions in response to the EO and the final report issued
following the EO, including the SEC rescinding its Staff Accounting Bulletin 121.
The Bank of England (the BoE) published a consultation in November 2025 on a regulatory framework for sterling-
denominated systemic stablecoins. The BoE sets out a proposed prudential and supervisory regime for non-bank issuers
of stablecoins deemed “systemic”. The final rules and supervisory approach are expected in the second half of 2026.
Developments related to artificial intelligence
In February 2025, the Swiss Federal Council decided on its approach to regulating artificial intelligence (AI) in Switzerland,
formally clarifying that a general cross-sector AI law will not be adopted. Under this approach, the Council of Europe’s
Framework Convention on Artificial Intelligence will be incorporated into Swiss law, and adjustments to existing laws
should be sector specific. Only key areas relevant to fundamental rights, such as data protection, will be subject to
general, cross-sectoral regulation. The government will draft a bill for consultation to implement the Framework
Convention on Artificial Intelligence by the end of 2026. Separately, non-legally binding measures will be proposed by
the end of 2026.
Risk factors
Certain risks, including those described below, may affect our ability to execute our strategy or our business activities,
financial condition, results of operations and prospects. We are inherently exposed to multiple risks, many of which may
become apparent only with the benefit of hindsight. As a result, risks that we do not consider to be material, or of which
we are not currently aware, could also adversely affect us. Within each category, the risks that we consider to be most
material are presented first.
Strategy, management and operational risks
Substantial changes in regulation may adversely affect our businesses and our ability to execute our strategic plans
We are subject to significant regulatory requirements, including capital and liquidity, legal structure requirements,
recovery and resolution planning, new and revised market standards and fiduciary duties, as well as new and developing
environmental, social and governance (ESG) standards and requirements. In addition, measures adopted or proposed for
banking and other regulation differ significantly across the major jurisdictions, making it increasingly difficult to manage
a global institution. Regulatory reviews of the events leading to the failures of US banks and our acquisition of Credit
Suisse in 2023, as well as regulatory measures to complete the implementation of the Basel III standards, may increase
capital, liquidity and other requirements applicable to banks, including UBS. Swiss regulatory changes with regard to such
matters as capital and liquidity have often proceeded more quickly than those in other major jurisdictions, and
Switzerland’s requirements for major international banks are among the strictest of the major financial centers.
Switzerland has implemented the final Basel III requirements effective 1 January 2025, while implementation in other
jurisdictions, including the United States, the EU and the UK, remains uncertain.
In June 2025, the Swiss Federal Council published for consultation proposed amendments to the Swiss Capital Adequacy
Ordinance. As currently proposed, such amendments would become effective in January 2027. In September 2025, the
Swiss Federal Council began a second public consultation on legislative amendments to capital requirements related to
foreign subsidiaries, which are intended to become effective in 2028, at the earliest, and are expected to be phased in
over a period of six to eight years. The Swiss Federal council is expected to publish for consultation, in the first half of
2026, the remainder of the legislative changes implementing the recommendations from the review. The capital measures
proposed by the Swiss Federal Council, if adopted as proposed, would require significant additional capital at UBS AG
and have the effect of requiring a higher capital ratio at the UBS Group. Increased capital or liquidity requirements would
put us at a disadvantage when competing with peer financial institutions subject to lower capital or liquidity requirements.
Our implementation of additional regulatory requirements and changes in supervisory standards, as well as our
compliance with existing laws and regulations, has entailed significant implementation and ongoing costs and continues
to receive heightened scrutiny from supervisors. If we do not meet supervisory expectations in relation to these or other
matters, or if additional supervisory or regulatory issues arise, we would likely be subject to further regulatory scrutiny, as
well as measures that may constrain our strategic flexibility.
Resolvability and resolution and recovery planning:
We have moved significant operations into subsidiaries to improve
resolvability and meet other regulatory requirements, and this has resulted in substantial implementation costs, increased
our capital and funding costs and reduced operational flexibility. For example, we have transferred all of our US
subsidiaries under a US intermediate holding company to meet US regulatory requirements and have transferred
substantially all the operations of Personal & Corporate Banking booked in Switzerland to UBS Switzerland AG to improve
resolvability.
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Our strategy, business model and environment | Risk factors 51
These changes create operational, capital, liquidity, funding and tax inefficiencies. Our operations in subsidiaries are
subject to local capital, liquidity, stable funding, capital planning and stress testing requirements. These requirements
have resulted in increased capital and liquidity requirements in affected subsidiaries, which limit our operational flexibility
and negatively affect our ability to benefit from synergies between business units and to distribute earnings to the Group.
Under the Swiss too-big-to-fail (TBTF) framework, we are required to put in place a viable emergency plan to preserve
the operation of systemically important functions in the event of a failure. Moreover, under this framework and similar
regulations in the US, the UK, the EU and other jurisdictions in which we operate, we are required to prepare credible
recovery and resolution plans detailing the measures that would be taken to recover in a significant adverse event or in
the event of winding down the Group or the operations in a host country through resolution or insolvency proceedings.
If a recovery or resolution plan that we produce is determined by the relevant authority to be inadequate or not credible,
relevant regulation may permit the authority to place limitations on the scope or size of our business in that jurisdiction,
or oblige us to hold higher amounts of capital or liquidity or to change our legal structure or business in order to remove
the relevant impediments to resolution.
The authorities in Switzerland and internationally have published lessons learned from the Credit Suisse and the US
regional bank failures, which are expected to result in additional requirements regarding recovery and resolution planning
as well as early intervention tools for authorities. In September 2025, FINMA published its 2025 resolution report on UBS
related to the 2024 fiscal year and FINMA concluded that UBS remains resolvable under UBS’s existing preferred resolution
strategy. However, given the lessons learned from the Credit Suisse crisis, FINMA also determined that the Swiss
emergency plan of UBS – although largely compliant with the current legal requirements – requires further development,
in particular better integration into UBS’s global resolution plan, to meet the objective of maintaining systemically
important functions while also safeguarding financial stability at the international level. Due to the ongoing integration
of Credit Suisse into UBS, FINMA has refrained from assessing UBS’s recovery plan, which outlines measures that aim to
restore financial strength if UBS should come under severe capital or liquidity stress. We expect to make adjustments to
our resolution plans to reflect additional guidance from FINMA and may be required to make further adjustments to
reflect any changes to law that are enacted.
Increases in capital and changes in liquidity requirements may, in the aggregate require us to maintain significantly higher
levels of capital, which may have an effect on our ability to achieve our strategic plans, to meet ambitions for return on
capital, and to achieve our ambitions for capital returns to shareholders. Significantly higher capital or liquidity
requirements applied to the UBS Group or UBS AG relative to competitors in Switzerland or abroad may affect UBS’s
ability to compete with firms subject to less stringent capital requirements and increase UBS’s costs to serve customers.
Market regulation and fiduciary standards:
Our businesses operate in an environment of increasing regulatory scrutiny
and changing standards with respect to fiduciary and other standards of care and the focus on mitigating or eliminating
conflicts of interest between a manager or advisor and the client, which require effective implementation across the
global systems and processes of investment managers and other industry participants. Future changes in the regulation
of our duties to customers, including any potential changes to banking examination and oversight practices and standards
as a result of interpretations of law, may require us to make further changes to our businesses, which would result in
additional expense and may adversely affect our business. We may also become subject to other similar regulations
substantively limiting the types of activities in which we may engage or the way we conduct our operations.
In many instances, we provide services on a cross-border basis, and we are therefore sensitive to barriers restricting market
access for third-country firms. In particular, efforts in the EU to harmonize the regime for third-country firms to access
the European market may have the effect of creating new barriers that adversely affect our ability to conduct business in
these jurisdictions from Switzerland. In addition, a number of jurisdictions are increasingly regulating cross-border
activities based on determinations of equivalence of home country regulation, substituted compliance or similar principles
of comity. A negative determination with respect to Swiss equivalence could limit our access to the market in those
jurisdictions and may negatively influence our ability to act as a global firm.
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UBS’s acquisition of Credit Suisse Group AG exposes UBS to heightened litigation risk and regulatory scrutiny and
entails significant additional costs, liabilities and business integration risks
UBS acquired Credit Suisse Group AG under exceptional circumstances and the continued outflows and deteriorating
overall financial position of Credit Suisse, in order to avert a failure of Credit Suisse and thus damage to the Swiss financial
center and to global financial stability. The acquisition was effected through a merger of Credit Suisse Group AG with
and into UBS Group AG, with UBS Group AG succeeding to all assets and all liabilities of Credit Suisse Group AG,
becoming the direct or indirect shareholder of the former Credit Suisse Group AG’s direct and indirect subsidiaries.
Therefore, on a consolidated basis, all assets, risks and liabilities of the Credit Suisse Group became a part of UBS. This
includes all ongoing and future litigation, regulatory and similar matters arising out of the business of the Credit Suisse
Group, thereby materially increasing UBS’s exposure to litigation and regulatory risks. UBS has, and expects to continue
to, incur substantial costs to manage and resolve litigation, regulatory and other issues arising from Credit Suisse. In
addition to the litigation and regulatory risks inherited from Credit Suisse Group AG, various legal challenges to the
acquisition transaction have been brought by former securityholders of Credit Suisse Group AG. Former Credit Suisse
shareholders have brought claims challenging the amount of merger consideration received and seeking a valuation
under the Swiss Merger Act. Former holders of Credit Suisse additional tier 1 capital instruments have brought claims
seeking a determination that FINMA’s order directing Credit Suisse Group AG to write down such instruments was
unauthorized and unlawful. In a partial ruling, the Swiss Federal Administrative Court has ruled that FINMA’s order was
unlawful without addressing any potential remedy. This ruling has been appealed by FINMA and by UBS to the Swiss
Federal Supreme Court. Although UBS believes these claims are without merit, a final adverse decision in any of these
matters could be material to UBS.
UBS has also incurred and expects to continue to incur costs to manage other issues arising from Credit Suisse. This
includes substantial resources in connection with our voluntary review of historical records relating to Credit Suisse’s
World War II-era conduct.
We have incurred and will continue to incur, substantial integration and restructuring costs as we combine the operations
of UBS and Credit Suisse. In addition, we may not realize all of the expected cost reductions and other benefits of the
transaction. We may not be able to successfully execute our strategic plans or to achieve the expected benefits of the
acquisition of the Credit Suisse Group. The success of the transaction, including anticipated benefits and cost savings,
will depend, in part, on the ability to successfully complete the integration of the operations of both firms rapidly and
effectively, while maintaining stability of operations and high levels of service to customers of the combined franchise.
Our ability to complete the integration of Credit Suisse will depend on a number of factors, some of which are outside
of our control, including our ability to:
–
combine the operations of the two firms in a manner that preserves client service, simplifies infrastructure and results
in operating cost savings, including successful completion of the transfer of clients from legacy Credit Suisse platforms
to UBS platforms in Switzerland, our largest booking center;
–
maintain deposits and client invested assets in our Global Wealth Management division and in Switzerland, and to
attract additional deposits and invested assets to the combined firm;
–
achieve cost reductions at the levels and in the timeframe we plan;
–
enhance, integrate and, where necessary, remediate risk management and financial control and other systems and
frameworks;
–
complete the simplification of the legal structure of the combined firm in an expedited manner, including obtaining
regulatory approvals and licenses required to implement these changes;
–
complete the wind-down of the assets and liabilities in our Non-core and Legacy division and release capital and
resources for other purposes;
–
decommission the information technology and other legacy Credit Suisse operational infrastructure to simplify our
infrastructure, reduce operational complexity and lower our operating expenses; and
–
resolve outstanding litigation, regulatory and similar matters, including matters relating to Credit Suisse, on terms that
are not significantly adverse to us, as well as to successfully remediate outstanding regulatory and supervisory matters
and meet other regulatory commitments.
The level of success in the absorption of Credit Suisse, in the integration of the two groups and their businesses, the
execution of cost reductions and divestment of non-core assets, as well as resulting impairments and write-downs, may
impact the operational results, share price and the credit rating of UBS entities. In addition, the financial effects of
management decisions and transactions will likely differ between UBS Group and UBS AG as a result of the application
of the acquisition method of accounting under the IFRS Accounting Standards by the UBS Group, including valuation
adjustments recorded by the UBS Group. The combined Group will be required to devote significant management
attention and resources to integrating its business practices and support functions. The diversion of management’s
attention and any delays or difficulties encountered in connection with the transaction and the coordination of the two
companies’ operations could have an adverse effect on the business, financial results, financial condition or the share
price of the combined Group following the transaction.
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Our strategy, business model and environment | Risk factors 53
Our reputation is critical to our success
Our reputation is critical to the success of our strategic plans, business and prospects. Reputational damage is difficult to
reverse, and improvements tend to be slow and difficult to measure. In the past, our reputation has been adversely
affected by our losses during the 2008 financial crisis, investigations into our cross-border private banking services,
criminal resolutions of London Interbank Offered Rates (LIBOR)-related and foreign exchange matters, as well as other
matters. We believe that reputational damage as a result of these events was an important factor in our loss of clients
and client assets across our asset-gathering businesses. The Credit Suisse Group was more recently subject to significant
litigation and regulatory matters and to financial losses that adversely affected its reputation and the confidence of clients,
which played a significant role in the events leading to the acquisition of the Credit Suisse Group in March 2023. These
events, or new events that cause reputational damage, could have a material adverse effect on our results of operation
and financial condition, as well as our ability to achieve our strategic goals and financial targets.
Operational risks affect our business
Our businesses depend on our ability to process a large number of transactions, many of which are complex, across
multiple and diverse markets in different currencies, to comply with requirements of many different legal and regulatory
regimes to which we are subject and to prevent, or promptly detect and stop, unauthorized, fictitious or fraudulent
transactions. We also rely on access to, and on the functioning of, systems maintained by third parties, including clearing
systems, exchanges, information processors and central counterparties. Any failure of our or third-party systems could
have an adverse effect on us. These risks may be greater as we deploy newer technologies, such as blockchain, or
processes, platforms or products that rely on these technologies. Our operational risk management and control systems
and processes are designed to help ensure that the risks associated with our activities – including those arising from
process error, failed execution, misconduct, unauthorized trading, fraud, system failures, financial crime, cyberattacks,
breaches of information security, inadequate or ineffective access controls and failure of security and physical protection
– are appropriately controlled. If our internal controls fail or prove ineffective in identifying and remedying these risks,
we could suffer operational failures that might result in material losses. The acquisition of the Credit Suisse Group may
elevate these risks, particularly during the first phases of integration, as the firms have historically operated under different
procedures, IT systems, risk policies and structures of governance.
We use automation as part of our efforts to improve efficiency, reduce the risk of error and improve our client experience.
We intend to expand the use of robotic processing, machine learning and artificial intelligence (AI) to further these goals.
Use of these tools presents their own risks, including the need for effective design and testing; the quality of the data
used for development and operation of machine learning and AI tools may adversely affect their functioning and result
in errors and other operational risks.
Financial services firms have increasingly been subject to breaches of security and to cyber- and other forms of attack,
some of which are sophisticated and targeted attacks intended to gain access to confidential information or systems,
disrupt service or steal or destroy data, which may result in business disruption or the corruption or loss of data at UBS’s
locations or those of third parties. Cyberattacks by hackers, terrorists, criminal organizations, nation states and extremists
have also increased in frequency and sophistication. Current geopolitical tensions have also led to increased risk of
cyberattack from foreign state actors. In particular, the Russia–Ukraine war and the imposition of significant sanctions on
Russia by Switzerland, the US, the EU, the UK and others has resulted and may continue to result in an increase in the
risk of cyberattacks. Such attacks may occur on our own systems or on the systems that are operated by external service
providers, may be attempted through the introduction of ransomware, viruses or malware, phishing and other forms of
social engineering, distributed denial of service attacks and other means. These attempts may occur directly or using
equipment or security passwords of our employees, third-party service providers or other users. Cybersecurity risks also
have increased due to the widespread use of digital technologies, cloud computing and mobile devices to conduct
financial business and transactions, as well as due to generative AI, which increases the capabilities of adversaries to
mount sophisticated phishing attacks, for example, through the use of deepfake technologies, and presents new
challenges to the protection of our systems and networks and the confidentiality and integrity of our data. In addition to
external attacks, we have experienced loss of client data from failure by employees and others to follow internal policies
and procedures and from misappropriation of our data by employees and others.
We may not be able to anticipate, detect or recognize threats to our systems or data and our preventative measures may
not be effective to prevent an attack or a security breach. In the event of a security breach, notwithstanding our
preventative measures, we may not immediately detect a particular breach or attack. The acquisition of the Credit Suisse
Group may elevate and intensify these risks, as would-be attackers have a larger potential target in the combined bank
and differences in systems, policies, and platforms could make threat detection more difficult. In addition, the
implementation of the large-scale technological change program that is necessary to integrate the combined bank’s
systems at pace may also result in increased risks. Once a particular attack is detected, time may be required to investigate
and assess the nature and extent of the attack, and to restore and test systems and data. If a successful attack occurs at
a service provider, as we have recently experienced, we may be dependent on the service provider’s ability to detect the
attack, investigate and assess the attack and successfully restore the relevant systems and data. A successful breach or
circumvention of security of our or a service provider’s systems or data could have significant negative consequences for
us, including disruption of our operations, misappropriation of confidential information concerning us or our clients,
damage to our systems, financial losses for us or our clients, violations of data privacy and similar laws, litigation exposure,
and damage to our reputation. We may be subject to enforcement actions as regulatory focus on cybersecurity increases
and regulators have announced new rules, guidance and initiatives on ransomware and other cybersecurity-related issues.
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Our strategy, business model and environment | Risk factors 54
We are subject to complex and frequently changing laws and regulations governing the protection of client and personal
data, such as the EU General Data Protection Regulation. Ensuring that we comply with applicable laws and regulations
when we collect, use and transfer personal information requires substantial resources and may affect the ways in which
we conduct our business. In the event that we fail to comply with applicable laws, we may be exposed to regulatory fines
and penalties and other sanctions. We may also incur such penalties if our vendors or other service providers or clients
or counterparties fail to comply with these laws or to maintain appropriate controls over protected data. In addition, any
loss or exposure of client or other data may adversely damage our reputation and adversely affect our business.
A major focus of US and other countries’ governmental policies relating to financial institutions in recent years has been
on fighting money laundering and terrorist financing. We are required to maintain effective policies, procedures and
controls to detect, prevent and report money laundering and terrorist financing, and to verify the identity of our clients
under the laws of many of the countries in which we operate. We are also subject to laws and regulations related to
corrupt and illegal payments to government officials by others, such as the US Foreign Corrupt Practices Act and the UK
Bribery Act. We have implemented policies, procedures and internal controls that are designed to comply with such laws
and regulations. Failure to maintain and implement adequate programs to combat money laundering, terrorist financing
or corruption, or any failure of our programs in these areas, could have serious consequences both from legal
enforcement action and from damage to our reputation. Frequent changes in sanctions imposed and increasingly
complex sanctions imposed on countries, entities and individuals, as exemplified by the breadth and scope of the
sanctions imposed in relation to the war in Ukraine, increase our cost of monitoring and complying with sanctions
requirements and increase the risk that we will not identify in a timely manner client activity that is subject to a sanction.
As a result of new and changed regulatory requirements and the changes we have made in our legal structure, the
volume, frequency and complexity of our regulatory and other reporting has remained elevated. Regulators have also
significantly increased expectations regarding our internal reporting and data aggregation, as well as management
reporting. We have incurred, and continue to incur, significant costs to implement infrastructure to meet these
requirements. Failure to meet external reporting requirements accurately and in a timely manner or failure to meet
regulatory expectations of internal reporting, data aggregation and management reporting could result in enforcement
action or other adverse consequences for us.
In addition, despite the contingency plans that we have in place, our ability to conduct business may be adversely affected
by a disruption in the infrastructure that supports our businesses and the communities in which we operate. This may
include a disruption due to natural disasters, pandemics, civil unrest, war or terrorism and involve electrical,
communications, transportation or other services that we use or that are used by third parties with whom we conduct
business.
We depend on our risk management and control processes to avoid or limit potential losses in our businesses
Controlled risk-taking is a major part of the business of a financial services firm. Some losses from risk-taking activities
are inevitable, but, to be successful over time, we must balance the risks we take against the returns generated. Therefore,
we must diligently identify, assess, manage and control our risks, not only in normal market conditions but also as they
might develop under more extreme, stressed conditions, when concentrations of exposures can lead to severe losses.
We have not always been able to prevent serious losses arising from risk management failures and extreme or sudden
market events. We recorded substantial losses on fixed-income trading positions in the 2008 financial crisis, in the
unauthorized trading incident in 2011 and, more recently, positions resulting from the default of a US prime brokerage
client. Credit Suisse has suffered very significant losses from the default of the US prime brokerage client and losses in
supply chain finance funds managed by it, as well as other matters.
We regularly revise and strengthen our risk management and control frameworks to seek to address identified
shortcomings. Nonetheless, we could suffer further losses in the future if, for example:
–
we do not fully identify the risks in our portfolio, in particular risk concentrations and correlated risks;
–
our assessment of the risks identified, or our response to negative trends, proves to be untimely, inadequate,
insufficient or incorrect;
–
our risk models prove insufficient to predict the scale of financial risks the bank faces;
–
markets move in ways that we do not expect – in terms of their speed, direction, severity or correlation – and our
ability to manage risks in the resulting environment is, therefore, affected;
–
third parties to whom we have credit exposure or whose securities we hold are severely affected by events and we
suffer defaults and impairments beyond the level implied by our risk assessment; or
–
collateral or other security provided by our counterparties and clients proves inadequate to cover their obligations at
the time of default.
We also hold legacy risk positions, primarily in Non-core and Legacy, that, in many cases, are illiquid and may deteriorate
in value. The acquisition of the Credit Suisse Group has increased, materially, the portfolio of business that is outside of
our risk appetite and subject to exit in the Non-core and Legacy segment.
We also manage risk on behalf of our clients. The performance of assets we hold for our clients may be adversely affected
by the aforementioned factors. If clients suffer losses or the performance of their assets held with us is not in line with
relevant benchmarks against which clients assess investment performance, we may suffer reduced fee income and a
decline in assets under management, or withdrawal of mandates.
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Investment positions, such as equity investments made as part of strategic initiatives and seed investments made at the
inception of funds that we manage, may also be affected by market risk factors. These investments are often not liquid
and generally are intended or required to be held beyond a normal trading horizon. Deteriorations in the fair value of
these positions would have a negative effect on our earnings.
We may be unable to identify or capture revenue or competitive opportunities, or retain and attract qualified
employees
The financial services industry is characterized by intense competition, continuous innovation, restrictive, detailed and
sometimes fragmented regulation and ongoing consolidation. We face competition at the level of local markets and
individual business lines and from global financial institutions that are comparable to us in their size and breadth, as well
as competition from new technology-based market entrants, which may not be subject to the same level of regulation.
Barriers to entry in individual markets and pricing levels are being eroded by new technology. We expect these trends to
continue and competition to increase. Our competitive strength and market position could be eroded if we are unable
to identify market trends and developments, do not respond to such trends and developments by devising and
implementing adequate business strategies, do not adequately develop or update our technology, including our digital
channels and tools and deployment of artificial intelligence, or are unable to attract or retain the qualified people needed.
The amount and structure of our employee compensation is affected not only by our business results but also by
competitive factors and regulatory considerations.
In response to the demands of various stakeholders, including regulatory authorities and shareholders, and in order to
better align the interests of our staff with other stakeholders,
our compensation framework includes deferral periods for
stock awards, forfeiture provisions and clawback provisions for certain awards linked to business performance. We also
have individual caps on the proportion of fixed to variable pay for the members of the Group Executive Board (GEB), as
well as certain other employees. UBS is also required to maintain and enforce provisions requiring UBS to recover from
GEB members a portion of performance-based incentive compensation in the event that the UBS Group, or another
entity with securities listed on a US national securities exchange, is required to restate its financial statements as a result
of a material error.
Constraints on the amount or structure of employee compensation, high levels of deferral, performance conditions and
other circumstances triggering the forfeiture of unvested awards may adversely affect our ability to retain and attract key
employees, particularly where we compete with companies that are not subject to these constraints. The loss of key staff
and the inability to attract qualified replacements could seriously compromise our ability to execute our strategy and to
successfully improve our operating and control environment, and could affect our business performance. Swiss law
requires that shareholders approve the compensation of the Board of Directors of UBS Group AG (the BoD) and the GEB
each year. If our shareholders fail to approve the compensation for the GEB or the BoD, this could have an adverse effect
on our ability to retain experienced directors and our senior management.
As UBS Group AG is a holding company, its operating results, financial condition and ability to pay dividends and other
distributions and/or to pay its obligations in the future depend on funding, dividends and other distributions received
directly or indirectly from its subsidiaries, which may be subject to restrictions
UBS Group AG’s ability to pay dividends and other distributions, to repurchase shares and to pay its obligations in the
future will depend on the level of funding, dividends and other distributions, if any, received from UBS AG and other
subsidiaries. The ability of such subsidiaries to make loans or distributions, directly or indirectly, to UBS Group AG may
be restricted as a result of several factors, including restrictions in financing agreements and the requirements of
applicable law and regulatory, fiscal or other restrictions. In particular, UBS Group AG’s direct and indirect subsidiaries,
including UBS AG, UBS Switzerland AG, UBS Americas Holding LLC, UBS Europe SE and Credit Suisse International, are
subject to laws and regulations that require the entities to maintain minimum levels of capital and liquidity, that restrict
dividend payments, that authorize regulatory bodies to block or reduce the flow of funds from those subsidiaries to UBS
Group AG or that could affect their ability to repay any loans made to, or other investments in, such subsidiary by UBS
Group AG or another member of the Group. Restrictions and regulatory actions could impede access to funds that UBS
Group AG may need to meet its obligations, to pay dividends to shareholders or to repurchase our shares. In addition,
UBS Group AG’s right to participate in a distribution of assets upon a subsidiary’s liquidation or reorganization is subject
to all prior claims of the subsidiary’s creditors.
Our capital instruments may contractually prevent us from proposing the distribution of dividends to shareholders, other
than in the form of shares, and from engaging in repurchases of shares, if we do not pay interest on these instruments.
Furthermore, UBS Group AG may guarantee some of the payment obligations of certain of the Group’s subsidiaries from
time to time. These guarantees may require UBS Group AG to provide substantial funds or assets to subsidiaries or their
creditors or counterparties at a time when UBS Group AG is in need of liquidity to fund its own obligations.
The credit ratings of UBS Group AG or its subsidiaries used for funding purposes could be lower than the ratings of the
Group’s operating subsidiaries, which may adversely affect the market value of the securities and other obligations of
UBS Group AG or those subsidiaries on a standalone basis.
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Market, credit and macroeconomic risks
Performance in the financial services industry is affected by market conditions and the macroeconomic climate
Our businesses are materially affected by market and macroeconomic conditions. A market downturn and weak
macroeconomic conditions can be precipitated by a number of factors, including geopolitical events, such as international
armed conflicts, war, or acts of terrorism, the imposition of sanctions, global trade or global supply chain disruptions,
including energy shortages and food insecurity, changes in monetary or fiscal policy, changes in trade policies or
international trade disputes, significant inflationary or deflationary price changes, disruptions in one or more concentrated
economic sectors, natural disasters, pandemics or local and regional civil unrest. Such developments can have
unpredictable and destabilizing effects.
Adverse changes in interest rates, credit spreads, securities prices, market volatility and liquidity, foreign exchange rates,
commodity prices, and other market fluctuations, as well as changes in investor sentiment, can affect our earnings and
ultimately our financial and capital positions. As financial markets are global and highly interconnected, local and regional
events can have widespread effects well beyond the countries in which they occur. Any of these developments may
adversely affect our business or financial results.
In periods of significant market volatility, our businesses may experience a decrease in client activity levels and market
volumes, which would adversely affect our ability to generate transaction fees and commissions, particularly in Global
Wealth Management and the Investment Bank. A market downturn would likely reduce the volume and valuation of
assets that we manage on behalf of clients, which would reduce recurring fee income that is charged based on invested
assets, primarily in Global Wealth Management and Asset Management. Such a downturn could also cause a decline in
the value of assets that we own and account for as investments or trading positions. In addition, reduced market liquidity
or volatility may limit trading opportunities and therefore may reduce transaction-based income and may also impede
our ability to manage risks.
Health emergencies, including pandemics and measures taken by governmental authorities to manage them, may have
effects such as labor market displacements, supply chain disruptions, and inflationary pressures, and adversely affect
global and regional economic conditions, resulting in contraction in the global economy, substantial volatility in the
financial markets, crises in markets for goods and services, disruptions in real estate markets, increased unemployment,
increased credit and counterparty risk, and operational challenges, as we saw with the COVID-19 pandemic. Such
economic or market disruptions, including inflationary pressures, may lead to reduced levels of client activity and demand
for our products and services, increased utilization of lending commitments, significantly increased client defaults,
continued and increasing credit and valuation losses in our loan portfolios, loan commitments and other assets, and
impairments of other financial assets.
Geopolitical events:
geopolitical events may have significant impacts on global markets, exacerbate global inflationary pressures and slow
global growth. In addition, the ongoing conflicts and other events may continue to cause significant population
displacement, and lead to shortages of vital commodities, including energy shortages or significantly higher energy prices
and food insecurity outside the areas immediately involved in armed conflict. Governmental responses to armed conflicts,
including, with respect to the Russia–Ukraine war, coordinated successive sets of sanctions on Russia and Belarus, and
Russian and Belarusian entities and nationals, and the uncertainty as to whether the ongoing conflicts will widen and
intensify, may continue to have significant adverse effects on the market and macroeconomic conditions, including in
ways that cannot be anticipated. If individual countries impose restrictions on cross-border payments or trade, or other
exchange or capital controls, or change their currency, we could suffer adverse effects on our business, losses from
enforced default by counterparties, be unable to access our own assets or be unable to effectively manage our risks.
We could be materially affected if a crisis develops, regionally or globally, as a result of disruptions in markets due to
macroeconomic or political developments, trade restrictions, or the failure of a major market participant. Over time, our
strategic plans have become more heavily dependent on our ability to generate growth and revenue in emerging markets,
including China, causing us to be more exposed to the risks associated with such markets.
Global Wealth Management derives revenues from all the principal regions but has a greater concentration in Asia than
many peers and a substantial presence in the US, unlike many European peers. The Investment Bank’s business is more
heavily weighted to Europe and Asia than our peers, while its derivatives business is more heavily weighted to structured
products for wealth management clients, in particular with European and Asian underlyings. Our performance may
therefore be more affected by political, economic and market developments in these regions and businesses than some
other financial service providers.
The extent to which ongoing conflicts, current inflationary pressures and related adverse economic conditions affect our
businesses, results of operations and financial condition, as well as our regulatory capital and liquidity ratios, will depend
on future developments, including the effects of the current conditions on our clients, counterparties, employees and
third-party service providers.
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Our strategy, business model and environment | Risk factors 57
Our credit risk exposure to clients, trading counterparties and other financial institutions would increase under adverse
or other economic conditions
Credit risk is an integral part of many of our activities, including lending, underwriting and derivatives activities. Adverse
economic or market conditions, or the imposition of sanctions or other restrictions on clients, counterparties or financial
institutions, may lead to impairments and defaults on these credit exposures. Losses may be exacerbated by declines in
the value of collateral securing loans and other exposures. In our prime brokerage, securities finance and Lombard lending
businesses, we extend substantial amounts of credit against securities collateral the value or liquidity of which may decline
rapidly. Market closures and the imposition of exchange controls, sanctions or other measures may limit our ability to
settle existing transactions or to realize on collateral, which may result in unexpected increases in exposures. Our Swiss
mortgage and corporate lending portfolios are a large part of our overall lending. We are therefore exposed to the risk
of adverse economic developments in Switzerland, including property valuations in the housing market, the strength of
the Swiss franc and its effect on Swiss exports, low or negative interest rates applied by the Swiss National Bank, economic
conditions within the Eurozone or the EU, and the evolution of agreements between Switzerland and the EU or European
Economic Area, which represent Switzerland’s largest export market. Although we believe this portfolio is prudently
managed, we could nevertheless be exposed to losses if a substantial deterioration in the Swiss real estate market were
to occur.
As we experienced in 2020, under the IFRS 9 expected credit loss (ECL) regime, credit loss expenses may increase rapidly
at the onset of an economic downturn as a result of higher levels of credit impairments (stage 3), as well as higher ECL
from stages 1 and 2. Substantial increases in ECL could exceed expected loss for regulatory capital purposes and adversely
affect our common equity tier 1 (CET1) capital and regulatory capital ratios.
Interest rate trends and changes could negatively affect our financial results
UBS’s businesses are sensitive to changes in interest rate trends. A prolonged period of low or negative interest rates,
particularly in Switzerland and the Eurozone, adversely affected the net interest income generated by UBS’s Personal &
Corporate Banking and Global Wealth Management businesses prior to 2022. The return to a zero policy rate by the
Swiss National Bank in 2025 has and, UBS expects, will continue to adversely affect our net interest income. Actions that
UBS took in the 2022 period to mitigate adverse effects on income, such as the introduction of selective deposit fees or
minimum lending rates, contributed to outflows of customer deposits, net new money outflows and a declining market
share in its Swiss lending business.
Higher interest rates generally benefit UBS’s net interest income. When interest rates increase substantially, returns on
alternatives to deposits, such as returns on money market funds, may increase relative to deposit rates, leading to
outflows of customer deposits and shifts of deposits from lower-interest account types to higher interest products, such
as savings and certificates of deposit. Customer deposit outflows could require UBS to obtain alternative funding, which
would likely be more costly than customer deposits.
Our shareholders’ equity and capital are also affected by changes in interest rates.
Currency
fluctuation may have an adverse effect on our profits, balance sheet and regulatory capital
We are subject to currency fluctuation risks as a substantial portion of our assets and liabilities are denominated in
currencies other than our Group presentation currency, the US dollar. In order to hedge our CET1 capital ratio, our CET1
capital must have foreign currency exposure, which leads to currency sensitivity. As a consequence, it is not possible to
simultaneously fully hedge both CET1 capital and the CET1 capital ratio. Accordingly, changes in foreign exchange rates
may adversely affect our profits, balance sheet, and capital, leverage and liquidity coverage ratios. During 2025, the US
dollar materially depreciated against other major currencies, including the Swiss franc and the euro. This depreciation
resulted in an increase of the US dollar value of assets denominated in other currencies reflected on our balance sheet,
increasing our leverage ratio denominator.
Regulatory and legal risks
Material legal and regulatory risks arise in the conduct of our business
As a global financial services firm operating in more than 50 countries, we are subject to many different legal, tax and
regulatory regimes, including extensive regulatory oversight, and are exposed to significant liability risk. We are subject
to a large number of claims, disputes, legal proceedings and government investigations, and we expect that our ongoing
business activities will continue to give rise to such matters in the future. In addition, UBS inherited claims against Credit
Suisse entities as part of the acquisition, including matters that may be material to the operating results of the combined
Group. The extent of our financial exposure to these and other matters is material and could substantially exceed the
level of provisions that we have established. We are not able to predict the financial and non-financial consequences
these matters may have when resolved.
We may be subject to adverse preliminary determinations or court decisions that may negatively affect public perception
and our reputation, result in prudential actions from regulators, and cause us to record additional provisions for such
matters even when we believe we have substantial defenses and expect to ultimately achieve a more favorable outcome.
This risk is illustrated by the award of aggregate penalties and damages of EUR 4.5bn against UBS by the court of first
instance in France. This award was reduced to an aggregate of EUR 1.8bn by the Court of Appeal, and, in a further
appeal, the French Supreme Court referred the case back to the Paris Court of Appeal to reconsider the amount after a
new trial. Ultimately, the case was resolved in September 2025 and UBS AG agreed to pay a fine of EUR 730m and
EUR 105m in civil damages to the French State.
Annual Report 2025 |
Our strategy, business model and environment | Risk factors 58
Litigation, regulatory and similar matters may also result in non-monetary penalties and consequences. Among other
things, a guilty plea to, or conviction of, a crime (including as a result of termination of the Deferred Prosecution
Agreement Credit Suisse entered into with the US Department of Justice in 2021 to resolve its Mozambique matter) could
have material consequences for UBS.
Resolution of regulatory proceedings has required us to obtain waivers of regulatory disqualifications to maintain certain
operations, may entitle regulatory authorities to limit, suspend or terminate licenses and regulatory authorizations, and
may permit financial market utilities to limit, suspend or terminate our participation in them. UBS and Credit Suisse have
each required waivers or exemptions in order to continue to act as investment manager to pension plans and registered
investment companies in the US, among other things; failure to obtain such waivers, or any limitation, suspension or
termination of licenses, authorizations or participations arising from a disqualifying event, could have material adverse
consequences for us.
Our settlements with governmental authorities in connection with foreign exchange, LIBOR and other benchmark interest
rates starkly illustrate the significantly increased level of financial and reputational risk now associated with regulatory
matters in major jurisdictions. In connection with investigations related to LIBOR and other benchmark rates, and to
foreign exchange and precious metals, very large fines and disgorgement amounts were assessed against us, and we
were required to enter guilty pleas despite our full cooperation with the authorities in the investigations and despite our
receipt of conditional leniency or conditional immunity from anti-trust authorities in a number of jurisdictions, including
the US and Switzerland.
For a number of years, we have been, and we continue to be, subject to a very high level of regulatory scrutiny. We
believe we have remediated the deficiencies that led to significant losses in the past and made substantial changes in our
controls and conduct risk frameworks to address the issues highlighted by past regulatory resolutions. We have also
undertaken extensive efforts to implement new regulatory requirements and meet heightened supervisory expectations.
Prior to its acquisition by UBS, Credit Suisse was also subject to a high level of regulatory scrutiny and had significant
regulatory and other remediation programs to address identified issues, including as a result of the Archegos,
Mozambique, supply chain finance and cross-border tax matters. As part of the integration of Credit Suisse, UBS is
addressing these matters and will likely remain under additional regulatory scrutiny until the integration is substantially
completed.
Credit Suisse and UBS have become the target of lawsuits, and may become the target of further litigation, in connection
with the merger transaction or the regulatory and other actions taken in connection with the merger transaction, all of
which could result in substantial costs. Since the close of the acquisition, various litigation claims have been lodged
against UBS under Swiss merger law alleging that Credit Suisse Group AG shareholders received disadvantaged treatment
in the acquisition. In addition, numerous cases have been lodged against the Swiss Financial Market Supervisory Authority
(FINMA) in respect of the write-down of the Credit Suisse Group’s additional tier 1 (AT1) bonds ordered by FINMA. UBS
Group AG, as the successor to Credit Suisse Group AG, is a party to the proceedings. The cumulative effects of the
litigations to which UBS has succeeded and the claims related to the acquisition and the circumstances surrounding it,
may have material adverse consequences for the combined Group.
We continue to be in active dialogue with regulators concerning the actions we are taking to improve our operational
risk management, risk control, anti-money-laundering, data management and other frameworks, and otherwise seek to
meet supervisory expectations, but there can be no assurance that our efforts will have the desired effects. As a result of
this history, our level of risk with respect to regulatory enforcement may be greater than that of some of our peers.
If we experience severe financial difficulties, FINMA has the power to open restructuring or liquidation proceedings or
impose protective measures in relation to UBS Group AG, UBS AG or UBS Switzerland AG, and such proceedings or
measures may have a material adverse effect on our shareholders and creditors
Under the Swiss Banking Act, FINMA is able to exercise broad statutory powers with respect to Swiss banks and Swiss
parent companies of financial groups, such as UBS Group AG, UBS AG and UBS Switzerland AG, if there is justified
concern that an entity is over-indebted, has serious liquidity problems or, after the expiration of any relevant deadline,
no longer fulfills capital adequacy requirements. Such powers include ordering protective measures, instituting
restructuring proceedings (and exercising any Swiss resolution powers in connection therewith), and instituting
liquidation proceedings, all of which may have a material adverse effect on shareholders and creditors or may prevent
UBS Group AG, UBS AG or UBS Switzerland AG from paying dividends or making payments on debt obligations.
UBS would have limited ability to challenge any such protective measures, and creditors and shareholders would also
have limited ability under Swiss law or in Swiss courts to reject them, seek their suspension, or challenge their imposition,
including measures that require or result in the deferment of payments.
Annual Report 2025 |
Our strategy, business model and environment | Risk factors 59
If restructuring proceedings are opened with respect to UBS Group AG, UBS AG or UBS Switzerland AG the resolution
powers that FINMA may exercise include the power to: (i) transfer all or some of the assets, debt and other liabilities, and
contracts of the entity subject to proceedings to another entity; (ii) stay for a maximum of two business days (a) the
termination of, or the exercise of rights to terminate, netting rights, (b) rights to enforce or dispose of certain types of
collateral or (c) rights to transfer claims, liabilities or certain collateral, under contracts to which the entity subject to
proceedings is a party; and (iii) partially or fully write down the equity capital and regulatory capital instruments, including
UBS Group senior debt and additional tier 1 capital instruments, and, if such regulatory capital is fully written down, write
down or convert into equity the other debt instruments of the entity subject to proceedings. Shareholders and creditors
would have no right to reject, or to seek the suspension of, any restructuring plan pursuant to which such resolution
powers are exercised. They would have only limited rights to challenge any decision to exercise resolution powers or to
have that decision reviewed by a judicial or administrative process or otherwise.
Upon full or partial write-down of the equity and regulatory capital instruments of the entity subject to restructuring
proceedings, the relevant shareholders and creditors would receive no payment in respect of the equity and debt that is
written down, the write-down would be permanent, and the investors would likely not, at such time or at any time
thereafter, receive any shares or other participation rights, or be entitled to any write-up or any other compensation in
the event of a potential subsequent recovery of the debtor. If FINMA orders the conversion of debt of the entity subject
to restructuring proceedings into equity, the securities received by the investors may be worth significantly less than the
original debt and may have a significantly different risk profile. In addition, creditors receiving equity would be effectively
subordinated to all creditors of the restructured entity in the event of a subsequent winding up, liquidation or dissolution
of the restructured entity, which would increase the risk that investors would lose all or some of their investment.
FINMA has significant discretion in the exercise of its powers in connection with restructuring proceedings. Furthermore,
certain categories of debt obligations, such as certain types of deposits, are subject to preferential treatment. As a result,
holders of obligations of an entity subject to a Swiss restructuring proceeding may have their obligations written down
or converted into equity even though obligations ranking on par with such obligations are not written down or converted.
Developments in sustainability, climate, environmental and social standards and regulations may affect our business and
impact our ability to fully realize our goals
We are subject to separate, and sometimes conflicting, ESG regulations and regulator expectations in the various
jurisdictions in which UBS operates. For example, in certain jurisdictions, we are required to set diversity targets or other
ESG-related goals that are considered illegal or contrary to regulatory expectations in other jurisdictions. In addition, with
respect to decarbonization mandates, there is substantial uncertainty as to the scope of actions that may be required of
us, governments and others to achieve the goals we have set, and many of our goals and objectives are only achievable
with a combination of government and private action. National and international standards and expectations, industry
and scientific practices, regulatory taxonomies, and disclosure obligations addressing these matters are relatively
immature and are rapidly evolving. In addition, there are significant limitations in the data available to measure our
climate and other goals. Although we have defined and disclosed our goals based on the standards existing at the time
of disclosure, there can be no assurance (i) that the various ESG regulatory and disclosure regimes under which we
operate will not come into further conflict with one another, (ii) that the current standards will not be interpreted
differently than our understanding or change in a manner that substantially increases the cost or effort for us to achieve
such goals or (iii) that additional data or methods, whether voluntary or required by regulation, may substantially change
our calculation of our goals and ambitions. It is possible that such goals may prove to be considerably more difficult or
even impossible to achieve. The evolving standards may also require us to substantially change the stated goals and
ambitions. If we are not able to achieve the goals we have set, or can only do so at significant expense to our business,
we may fail to meet regulatory expectations, incur damage to our reputation or be exposed to an increased risk of
litigation or other adverse action.
While ESG regulatory regimes and international standards are being developed, including to require consideration of ESG
risks in investment decisions, some jurisdictions, notably in the US, have developed rules restricting the consideration of
ESG factors in investment and business decisions. Under these anti-ESG rules, companies that are perceived as boycotting
or discriminating against certain industries may be restricted from doing business with certain governmental entities. Our
businesses may be adversely affected if we are considered as discriminating against companies based on ESG
considerations, or if further anti-ESG rules are developed or broadened.
Annual Report 2025 |
Our strategy, business model and environment | Risk factors 60
Our financial results may be negatively affected by changes to assumptions and valuations, as well as changes to
accounting standards
We prepare our consolidated financial statements in accordance with IFRS Accounting Standards. The application of
these accounting standards requires the use of judgment based on estimates and assumptions that may involve significant
uncertainty at the time they are made. This is the case, for example, with respect to the measurement of fair value of
financial instruments, the recognition of deferred tax assets (DTAs), the assessment of the impairment of goodwill,
expected credit losses and estimation of provisions for litigation, regulatory and similar matters. Such judgments,
including the underlying estimates and assumptions, which encompass historical experience, expectations of the future
and other factors, are regularly evaluated to determine their continuing relevance based on current conditions. Using
different assumptions could cause the reported results to differ. Changes in assumptions, or failure to make the changes
necessary to reflect evolving market conditions, may have a significant effect on the financial statements in the periods
when changes occur. Estimates of provisions may be subject to a wide range of potential outcomes and significant
uncertainty. For example, the broad range of potential outcomes in our legal proceedings in France and in a number of
Credit Suisse’s legal proceedings increase the uncertainty associated with assessing the appropriate provision. If the
estimates and assumptions in future periods deviate from the current outlook, our financial results may also be negatively
affected.
Changes to IFRS Accounting Standards or interpretations thereof may cause future reported results and financial positions
to differ from current expectations, or historical results to differ from those previously reported due to the adoption of
accounting standards on a retrospective basis. Such changes may also affect our regulatory capital and ratios. For
example, the introduction of the ECL regime under IFRS 9 in 2018 fundamentally changed how credit risk arising from
loans, loan commitments, guarantees and certain revocable facilities is accounted for. Under the ECL regime, credit loss
expenses may increase rapidly at the onset of an economic downturn as a result of higher levels of credit impairments
(stage 3), as well as higher ECL from stages 1 and 2, only gradually diminishing once the economic outlook improves. As
we observed in 2020, this effect may be more pronounced in a deteriorating economic environment. Substantial increases
in ECL could exceed expected loss for regulatory capital purposes and adversely affect our CET1 capital and regulatory
capital ratios.
We may be unable to maintain our capital strength
Capital strength enables us to grow our businesses and absorb increases in regulatory and capital requirements. Our
ability to maintain our capital ratios is subject to numerous risks, including the financial results of our businesses, the
effect of changes to capital standards, methodologies and interpretations that may adversely affect the calculation of our
capital ratios, the imposition of risk add-ons or capital buffers, and the application of additional capital, liquidity and
similar requirements to subsidiaries. Our capital and leverage ratios are driven primarily by RWA, LRD and eligible capital,
all of which may fluctuate based on a number of factors, some of which are outside of our control. The results of our
businesses may be adversely affected by events arising from other risk factors described herein. In some cases, such as
litigation and regulatory risk and operational risk events, losses may be sudden and large. These risks could reduce the
amount of capital available for return to shareholders and hinder our ability to achieve our capital returns target of a
progressive cash dividend coupled with a share repurchase program.
Our eligible capital may be reduced by losses recognized within net profit or other comprehensive income. Eligible capital
may also be reduced for other reasons, including acquisitions that change the level of goodwill, changes in temporary
differences related to DTAs included in capital, adverse currency movements affecting the value of equity, prudential
adjustments that may be required due to the valuation uncertainty associated with certain types of positions, changes in
regulatory interpretations on the inclusion or exclusion of items contributing to our shareholders
’
capital, and changes in the value of certain pension fund assets and liabilities or in the interest rate and other assumptions
used to calculate the changes in our net defined benefit obligation recognized in other comprehensive income.
RWA are driven by our business activities, by changes in the risk profile of our exposures, by changes in our foreign
currency exposures and foreign exchange rates, and by regulation. For instance, substantial market volatility, a widening
of credit spreads, adverse currency movements, increased counterparty risk, deterioration in the economic environment
or increased operational risk could result in an increase in RWA. Changes in the calculation of RWA, the imposition of
additional supplemental RWA charges or multipliers applied to certain exposures and other methodology changes, as
well as the finalization of the Basel III framework and Fundamental Review of the Trading Book promulgated by the BCBS,
which are expected to affect our RWA.
The leverage ratio is a balance sheet-driven measure and therefore limits balance sheet-intensive activities, such as
lending, more than activities that are less balance sheet intensive, and it may constrain our business even if we satisfy
other risk-based capital requirements. Our LRD is driven by, among other things, the level of client activity, including
deposits and loans, foreign exchange rates, interest rates, other market factors and changes in required liquidity. Many
of these factors are wholly or partly outside of our control.
Annual Report 2025 |
Our strategy, business model and environment | Risk factors 61
The effect of taxes on our financial results is significantly influenced by changes in tax law, or reinterpretations of
existing laws by courts or tax authorities, reassessments of our deferred tax assets and operating losses of certain
entities with no associated tax benefit
Our effective tax rate is highly sensitive to our performance, our expectation of future profitability and any potential
increases or decreases in statutory tax rates, such as any potential increase or decrease in the US federal corporate tax
rate, and changes in the interpretation of tax law. Furthermore, based on prior years’ tax losses and deductible temporary
differences, we have recognized DTAs reflecting the probable recoverable level based on future taxable profit as informed
by our business plans. If our performance is expected to produce diminished taxable profit in future years, particularly in
the US, we may be required to write down all or a portion of the currently recognized DTAs through the income statement
in excess of anticipated amortization. This would have the effect of increasing our effective tax rate in the year in which
any write-downs are taken. Conversely, if we expect the performance of entities in which we have unrecognized tax
losses to improve, particularly in the US or the UK, we could potentially recognize additional DTAs. The effect of doing
so would be to reduce our effective tax rate in years in which additional DTAs are recognized and to increase our effective
tax rate in future years. Our effective tax rate is also sensitive to any future reductions in statutory tax rates, particularly
in the US, which would cause the expected future tax benefit from items such as tax loss carry-forwards in the affected
locations to diminish in value. This, in turn, would cause a write-down of the associated DTAs. Conversely, an increase
in US corporate tax rates would result in an increase in the Group’s recognized DTAs.
Changes in tax law may materially affect our effective tax rate and, in some cases, may substantially affect the profitability
of certain activities. In addition, statutory and regulatory changes, as well as changes to the way in which courts and tax
authorities interpret tax laws, including assertions that we are required to pay taxes in a jurisdiction as a result of activities
connected to that jurisdiction constituting a permanent establishment or similar theory, and changes in our assessment
of uncertain tax positions, could cause the amount of taxes we ultimately pay to materially differ from the amount
accrued.
We may incur material future tax liabilities in connection with the acquisition of the Credit Suisse Group
In the past, the Credit Suisse Group has recorded significant impairments of the tax value of its participations in
subsidiaries below their tax acquisition costs. As a result of the acquisition of the Credit Suisse Group, tax acquisition
costs of participations held by Credit Suisse Group AG and its subsidiaries have been transferred to the UBS Group. UBS
Group AG and its subsidiaries may become subject to additional Swiss tax on future reversals of such impairments for
Swiss tax purposes. Reversals of prior impairments may occur to the extent that the net asset value of the previously
impaired subsidiary increases, e.g. as a result of an increase in retained earnings. Although it is difficult to quantify this
additional future tax exposure, as various potential mitigants (e.g. transfers of assets and liabilities, business activities,
subsidiary investments, as well as other restructuring measures within the combined Group in the course of the
integration) exist, it may be material.
Liquidity and funding risk
Liquidity and funding management are critical to UBS’s ongoing performance
The viability of our business depends on the availability of funding sources, and our success depends on our ability to
obtain funding at times, in amounts, for tenors and at rates that enable us to efficiently support our asset base in all
market conditions. Our funding sources have generally been stable, but could change in the future because of, among
other things, general market disruptions or widening credit spreads, which could also influence the cost of funding. A
substantial part of our liquidity and funding requirements are met using short-term unsecured funding sources, including
retail and wholesale deposits and the regular issuance of money market securities. A change in the availability of short-
term funding could occur quickly.
Reductions in our credit ratings may adversely affect the market value of the securities and other obligations and increase
our funding costs, in particular with regard to funding from wholesale unsecured sources, and could affect the availability
of certain kinds of funding. In addition, as experienced in connection with the Moody’s Investors Service Ltd. downgrade
of UBS AG’s long-term debt rating in June 2012, rating downgrades can require us to post additional collateral or make
additional cash payments under trading agreements. Our credit ratings, together with our capital strength and
reputation, also contribute to maintaining client and counterparty confidence, and it is possible that rating changes could
influence the performance of some of our businesses. The acquisition of the Credit Suisse Group has elevated these risks
and may cause these risks to intensify. Upon the close of the acquisition in June 2023, Fitch Ratings Ireland Limited
downgraded the Long-Term Issuer Default Ratings (IDRs) of UBS Group AG to “A” from “A+” and of UBS AG to “A+”
from “AA–“. Fitch Ratings Ltd. also upgraded Credit Suisse AG’s Long-Term IDR to “A+” from “BBB+”.
The requirement to maintain a liquidity coverage ratio of high-quality liquid assets to estimated stressed short-term net cash
outflows, and other similar liquidity and funding requirements, oblige us to maintain high levels of overall liquidity, limit our
ability to optimize interest income and expense, make certain lines of business less attractive and reduce our overall ability
to generate profits. The liquidity coverage ratio and net stable funding ratio requirements are intended to ensure that we
are not overly reliant on short-term funding and that we have sufficient long-term funding for illiquid assets. The relevant
calculations make assumptions about the relative likelihood and amount of outflows of funding and available sources of
additional funding in market-wide and firm-specific stress situations. In an actual stress situation, however, our funding
outflows could exceed the assumed amounts.
Annual Report 2025 |
Financial and operating performance | Accounting and financial reporting 62
Financial and operating
performance
Management report
Accounting and financial reporting
Critical accounting estimates and judgments
In preparing our financial statements in accordance with IFRS Accounting Standards, as issued by the International
Accounting Standards Board (the IASB), we apply judgment and make estimates and assumptions that may involve
significant uncertainty at the time they are made. We regularly reassess those estimates and assumptions, which
encompass historical experience, expectations of the future and other pertinent factors, to determine their continuing
relevance based on current conditions, and update them as necessary. Changes in estimates and assumptions may have
significant effects on the financial statements. Furthermore, actual results may differ significantly from our estimates,
which could result in significant losses to the Group, beyond what we expected or provided for.
Key areas involving a high degree of judgment and areas where estimates and assumptions are significant to the
consolidated financial statements include the following (the Notes referred to below are in “Notes to the UBS Group AG
consolidated financial statements” in the “Consolidated financial statements” section of this report):
–
expected credit loss measurement (refer to “Note 1 Summary of material accounting policies, item 2g Allowances and
provisions for expected credit losses“ and “Note 19 Expected credit loss measurement”);
–
fair value measurement (refer to “Note 1 Summary of material accounting policies, item 2f Fair value of financial
instruments“ and “Note 20 Fair value measurement”);
–
income taxes (refer to “Note 1 Summary of material accounting policies, item 6 Income taxes“ and “Note 8 Income
taxes”);
–
provisions and contingent liabilities (refer to “Note 1 Summary of material accounting policies, item 10 Provisions and
contingent liabilities” and “Note 17 Provisions and contingent liabilities”); and
–
goodwill (refer to “Note 1 Summary of material accounting policies, item 9 Goodwill and other separately identifiable
intangible assets“ and “Note 12 Goodwill and intangible assets”).
›
Refer to the “Risk factors” section of this report for more information
Accounting and financial reporting changes in 2025
Disclosures about Uncertainties in the Financial statements
In November 2025, the IASB issued illustrative examples
Disclosures about Uncertainties in the Financial Statements
,
using
climate-related examples to illustrate how requirements in IFRS Accounting Standards are applied to report the effects of
uncertainties in the financial statements. The guidance provided through these examples is consistent with the manner
in which UBS prepares its financial statements.
Accounting and financial reporting changes after 2025
IFRS 18,
Presentation and Disclosure in Financial Statements
In April 2024, the IASB issued a new standard, IFRS 18,
Presentation and Disclosure in Financial Statements
, which
replaces IAS 1,
Presentation of Financial Statements
by IFRS 18 relate to the structure of income statements, new disclosure requirements for management performance
measures and enhanced guidance on aggregation and disaggregation of information. UBS is assessing the impact of the
new requirements on its reporting but expects it to be limited.
Amendments to IFRS 9,
Financial Instruments
, and IFRS 7,
Financial Instruments: Disclosures
In May 2024, the IASB issued
Amendments to the Classification and Measurement of Financial Instruments –
Amendments to IFRS 9 and IFRS 7
derecognition of financial instruments, including introduction of an accounting policy election to derecognize financial
liabilities settled through electronic transfer systems before the settlement date, if certain conditions are met. The
Amendments also introduce new disclosure requirements for financial instruments with contractual terms that could
change the timing or amount of contractual cash flows. The Amendments are effective from 1 January 2026 and will
have limited impact on UBS’s financial statements.
Annual Report 2025 |
Financial and operating performance | Group performance 63
Group performance
Income statement
For the year ended
% change from
USD m
31.12.25
31.12.24
31.12.23
31.12.24
Net interest income
Other net income from financial instruments measured at fair value through profit or loss
Net fee and commission income
Other income
Total revenues
Negative goodwill
Credit loss expense / (release)
Personnel expenses
General and administrative expenses
Depreciation, amortization and impairment of non-financial assets
Operating expenses
Operating profit / (loss) before tax
Tax expense / (benefit)
Net profit / (loss)
Net profit / (loss) attributable to non-controlling interests
Net profit / (loss) attributable to shareholders
Comprehensive income
Total comprehensive income
Total comprehensive income attributable to non-controlling interests
Total comprehensive income attributable to shareholders
Annual Report 2025 |
Financial and operating performance | Group performance 64
Selected financial information of our business divisions and Group Items
For the year ended 31.12.25
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
of which: PPA effects and other integration items
1
2
3
of which: loss related to an investment in an associate
of which: items related to the Swisscard transactions
4
Total revenues (underlying)
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses and PPA effects
5
of which: items related to the Swisscard transactions
6
Operating expenses (underlying)
Operating profit / (loss) before tax as reported
Operating profit / (loss) before tax (underlying)
For the year ended 31.12.24
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
of which: PPA effects and other integration items
1
of which: loss related to an investment in an associate
Total revenues (underlying)
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses and PPA effects
5
of which: items related to the Swisscard transactions
7
Operating expenses (underlying)
Operating profit / (loss) before tax as reported
Operating profit / (loss) before tax (underlying)
1 Includes accretion of PPA adjustments on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration. 2 Includes a USD 128m gain from the sale of
a stake in a subsidiary, Credit Suisse Securities (China) Limited. 3 Includes a USD 457m net loss from the repurchase of legacy Credit Suisse debt instruments, as the repurchase price exceeded the amortized-cost
carrying value (the net loss reflects a loss of USD 885m before PPA adjustments, partly offset by a USD 427m gain from the release of PPA adjustments). 4 Represents the gain related to UBS’s share of the income
recorded by Swisscard for the sale of the Credit Suisse card portfolios to UBS. 5 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of intangibles resulting
from the acquisition of the Credit Suisse Group. 6 Represents the expense related to the payment to Swisscard for the sale of the Credit Suisse card portfolios to UBS. 7 Represents the termination fee paid to
American Express related to the sale of our 50% holding in Swisscard.
Net integration-related expenses, by business division and Group Items
For the year ended
USD m
31.12.25
31.12.24
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
1
Non-core and Legacy
Group Items
2
Net integration-related expenses
of which: total revenues
1,2
of which: operating expenses
of which: personnel expenses
of which: general and administrative expenses
of which: depreciation, amortization and impairment of non-financial assets
1 Includes a USD 128m gain from the sale of a stake in a subsidiary, Credit Suisse Securities (China) Limited. 2 Includes an USD 885m loss from the repurchase of legacy Credit Suisse debt instruments, excluding a
partly offsetting gain of USD 427m from the release of PPA adjustments (a net loss of USD 457m was recognized on retirement of these instruments in 2025).
Underlying results
In addition to reporting our results in accordance with IFRS Accounting Standards, we report underlying results that
exclude items of profit or loss that management believes are not representative of the underlying performance.
In 2025, underlying revenues excluded purchase price allocation (PPA) effects and other integration items of USD 1,892m,
which included a USD 457m net loss from the repurchase of legacy Credit Suisse debt instruments and a USD 128m gain
from the sale of a stake in Credit Suisse Securities (China) Limited (CSS). PPA effects mainly consist of PPA adjustments
on financial instruments measured at amortized cost, including off-balance sheet positions, arising from the acquisition
of the Credit Suisse Group. Accretion of PPA adjustments on financial instruments is accelerated when the related financial
instrument is derecognized before its contractual maturity. No adjustment is made for accretion of PPA on financial
instruments within Non-core and Legacy, due to the nature of its business model. Underlying revenues also excluded a
net loss of USD 230m related to an investment in an associate and a USD 64m gain related to the Swisscard transactions.
Annual Report 2025 |
Financial and operating performance | Group performance 65
In 2025, underlying expenses excluded integration-related expenses and PPA effects of USD 4,422m. Integration-related
expenses are temporary, incremental and directly related to the integration of Credit Suisse into UBS, including costs of
internal staff and contractors substantially dedicated to integration activities, retention awards, redundancy costs,
incremental expenses from the shortening of useful lives of property, equipment and software, and impairment charges
relating to these assets. Classification as integration-related expenses does not affect the timing of recognition and
measurement of those expenses or the presentation thereof in the income statement. Underlying operating expenses
also excluded a USD 180m expense related to the Swisscard transactions.
Results 2025 vs 2024
In 2025, reported net profit attributable to shareholders increased by USD 2,682m to USD 7,767m. There was a net tax
expense of USD 1,056m in 2025.
Operating profit before tax increased by USD 2,032m to USD 8,853m, reflecting a decrease in operating expenses and
an increase in total revenues, as well as lower net credit loss expenses. Total revenues increased by USD 962m, or 2%, to
USD 49,573m and included an increase from foreign currency effects and a decrease of USD 985m in PPA effects and
other integration items. The increase in total revenues was driven by an increase of USD 1,774m in net fee and
commission income, partly offset by a decrease of USD 771m in other income, mainly reflecting a net loss of USD 457m
from the repurchase of legacy Credit Suisse debt instruments, and USD 40m lower combined net interest income and
other net income from financial instruments measured at fair value through profit or loss. Operating expenses decreased
by USD 1,042m, or 3%, to USD 40,197m, which included an increase from foreign currency effects and a USD 344m
decrease in integration-related expenses and PPA effects. The overall decrease in operating expenses reflected
USD 1,317m lower general and administrative expenses, mainly reflecting an USD 821m increase in net releases of
provisions and acquisition-related contingent liabilities resulting from litigation, regulatory and similar matters, and a
USD 269m decrease in expenses for depreciation, amortization and impairment of non-financial assets, partly offset by a
USD 543m increase in personnel expenses. Net credit loss expenses were USD 524m, compared with USD 551m in 2024.
Underlying results 2025 vs 2024
On an underlying basis, profit before tax increased by USD 2,898m to USD 11,729m, reflecting a USD 2,034m increase
in underlying total revenues and an USD 837m decrease in underlying operating expenses, as well as a USD 27m decrease
in net credit loss expenses.
Total revenues
Net interest income and other net income from financial instruments measured at fair value through profit or loss
Total combined net interest income and other net income from financial instruments measured at fair value through
profit or loss decreased by USD 40m to USD 21,758m and included a decrease of USD 341m in accretion impacts
resulting from PPA adjustments on financial instruments and other PPA effects.
The year-on-year variance was primarily driven by Non-core and Legacy, which reported negative revenues of USD
24m,
compared with positive USD
1,163m in 2024, mainly due to lower net gains from position exits and lower net interest
income from securitized product and credit portfolios, partly offset by lower liquidity and funding costs. In Personal &
Corporate Banking, revenues decreased by USD
301m to USD 6,178m, reflecting a decrease of USD 328m in net interest
income, primarily due to the impact of lower central bank interest rates on deposit revenues, partly offset by deposit
pricing measures, positive foreign currency effects and lower liquidity and funding costs. Global Wealth Management
revenues decreased by USD 177m to USD 8,854m, mainly reflecting USD 340m lower net interest income, primarily due
to a USD 331m decrease in accretion of PPA adjustments on financial instruments and other PPA effects. This was partly
offset by an increase of USD 163m in transaction-based income from foreign exchange and other intermediary activity,
mainly reflecting higher client activity.
The aforementioned decreases were largely offset by a USD 1,372m increase in the Investment Bank’s revenues to
USD
7,536m, mainly driven by Global Markets. The increase was mostly due to higher volatility and increased levels of
client activity in Derivatives & Solutions, as well as higher client balances in Prime Brokerage within Financing. Additionally,
revenues in Group Items were negative USD 771m, compared with negative USD 1,054m in 2024, mainly driven by lower
mark-to-market losses from Group hedging and own debt, including hedge accounting ineffectiveness.
›
Refer to “Note 3 Net interest income and other net income from financial instruments measured at fair value through profit or
loss” in the “Consolidated financial statements” section of this report for more information
›
Refer to the relevant business division and Group Items commentary in this section for more information about the specific
revenues of each of the business divisions and Group Items
Annual Report 2025 |
Financial and operating performance | Group performance 66
Net interest income and other net income from financial instruments measured at fair value through profit or loss
For the year ended
% change from
USD m
31.12.25
31.12.24
31.12.23
31.12.24
Net interest income from financial instruments measured at amortized cost and fair value through other
comprehensive income
Net interest income from financial instruments measured at fair value through profit or loss and other
Other net income from financial instruments measured at fair value through profit or loss
Total
Global Wealth Management
of which: net interest income
of which: transaction-based income from foreign exchange and other intermediary activity
1
Personal & Corporate Banking
of which: net interest income
of which: transaction-based income from foreign exchange and other intermediary activity
1
Asset Management
Investment Bank
Non-core and Legacy
Group Items
1 Mainly includes spread-related income in connection with client-driven transactions, foreign currency translation effects and income and expenses from precious metals, which are included in the income statement
line Other net income from financial instruments measured at fair value through profit or loss. The amounts reported on this line are one component of Transaction-based income in the management discussion and
analysis in the “Global Wealth Management” and “Personal & Corporate Banking” sections of this report.
Net fee and commission income
Net fee and commission income increased by USD 1,774m to USD 27,912m and included a decrease of USD 470m in
accretion of PPA adjustments on financial instruments and other PPA effects, predominantly in Global Banking in the
Investment Bank.
Fees for portfolio management, investment funds and related services increased by USD 1,470m to USD 19,560m. The
increase was mostly driven by Global Wealth Management, largely resulting from higher average levels of fee-generating
assets, primarily from mandates, reflecting positive market performance and net new fee-generating asset inflows in
2025. These fees also increased in Asset Management, mainly driven by higher average levels of invested assets, primarily
resulting from positive market performance and foreign currency effects, partly offset by ongoing margin compression.
Net brokerage fees increased by USD 870m to USD 5,094m, driven by increased volumes in Cash Equities in Execution
Services in the Investment Bank and higher levels of client activity in Global Wealth Management, across all regions in
both of the aforementioned business divisions.
›
Refer to “Note 4 Net fee and commission income” in the “Consolidated financial statements” section of this report for more
information
›
Refer to the relevant business division commentary in this section for further information about how components of fee and
commission income are presented within the business division results
Other income
Other income was negative USD 96m compared with positive USD 675m in 2024. Included in
2025 were net losses of
USD 574m related to repurchases of UBS’s own debt instruments, mainly reflecting a net loss of USD 457m from the
repurchase of legacy Credit Suisse debt instruments, and a net loss of USD 230m related to an investment in an associate,
compared with a loss of USD 80m in 2024. These losses were partly offset by gains of USD 128m from the sale of a stake
in CSS, USD 97m from the sale of Select Portfolio Servicing and USD 64m from the Swisscard transactions. There was
also a release of USD 42m related to other financial liabilities in Global Wealth Management and a gain of USD 33m
from the sale of our wealth management business in India. Included in 2024 were a USD 135m gain related to the sale
of our investment in an associate and USD 113m net gains from the sale of non-strategic businesses in Asset
Management.
›
Refer to “Note 5 Other income” in the “Consolidated financial statements” section of this report for more information
›
Refer to “Note 28 Changes in organization and acquisitions and disposals of subsidiaries and businesses” in the “Consolidated
financial statements” section of this report for more information about disposals of subsidiaries and businesses
Annual Report 2025 |
Financial and operating performance | Group performance 67
Credit loss expense / release
Total net credit loss expenses in 2025 were USD 524m, reflecting net credit loss expenses of USD 6m related to
performing positions and net expenses of USD 518m on credit-impaired positions. Net credit loss expenses were
USD 551m in 2024.
›
Refer to “Note 9 Financial assets at amortized cost and other positions in scope of expected credit loss measurement” and
“Note 19 Expected credit loss measurement” in the “Consolidated financial statements” section of this report for more
information about credit loss expenses / releases
›
Refer to the “Risk factors” section of this report for more information
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Purchased
Total
For the year ended 31.12.25
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Total
For the year ended 31.12.24
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Total
For the year ended 31.12.23
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Total
Operating expenses
Personnel expenses
Personnel expenses increased by USD 543m to USD 27,861m, mainly driven by a USD 564m increase in variable
compensation, primarily due to higher accruals for performance awards, reflecting business performance, and an increase
in financial advisor compensation, resulting from higher compensable revenues. Additionally, there was an increase in
expenses for post-employment benefit plans, resulting from a one-time pre-tax loss of USD 190m due to the integration
of the Credit Suisse Swiss 1e plan into the Credit Suisse Swiss pension plan as of 1 January 2027, with an offsetting gain
in other comprehensive income. Salary expenses decreased by USD 274m, primarily reflecting the impact of a smaller
workforce, partly offset by increases due to foreign currency effects.
›
Refer to the “Compensation” section of this report for more information
›
Refer to “Note 6 Personnel expenses”, “Note 25 Post-employment benefit plans” and “Note 26 Employee benefits: variable
compensation” in the “Consolidated financial statements” section of this report for more information
General and administrative expenses
General and administrative expenses decreased by USD 1,317m to USD 8,807m, largely due to an USD 821m increase
in net releases of provisions and acquisition-related contingent liabilities resulting from litigation, regulatory and similar
matters, primarily due to the completion of obligations under Credit Suisse’s residential mortgage-backed securities
settlement with the US Department of Justice and the resolution of a legacy matter concerning cross-border business
activities in France. Consulting, legal and audit fees decreased by USD 335m, predominantly due to a decrease in
integration-related expenses. There were also decreases of USD 222m in outsourcing costs and USD 139m in real estate
and logistics costs. These decreases were partly offset by a USD 161m increase in technology costs, largely driven by the
recognition of provisions for onerous contracts. In addition, 2025 included a USD 180m expense related to the Swisscard
transactions, compared with an expense of USD 41m in 2024.
›
Refer to “Note 7 General and administrative expenses” and “Note 17 Provisions and contingent liabilities” in the “Consolidated
financial statements” section of this report for more information
Annual Report 2025 |
Financial and operating performance | Group performance 68
Depreciation, amortization and impairment of non-financial assets
Depreciation, amortization and impairment of non-financial assets decreased by USD 269m to USD 3,529m, primarily
reflecting a USD 204m decrease in depreciation of leased real estate as a result of higher levels of accelerated depreciation
in 2024, driven by integration activities. In addition, there was a USD 35m decrease in the depreciation of IT and
communication equipment, mainly driven by internally generated capitalized software, reflecting a lower cost base of
software assets.
Operating expenses
For the year ended
% change from
USD m
31.12.25
31.12.24
31.12.23
31.12.24
Personnel expenses
of which: salaries
of which: variable compensation
of which: performance awards
of which: financial advisors
1
of which: other
of which: other personnel expenses
2
General and administrative expenses
of which: net expenses / (releases) for litigation, regulatory and similar matters
Depreciation, amortization and impairment of non-financial assets
Total operating expenses
1 Financial advisor compensation consists of cash compensation, determined using a formulaic approach based on production, and deferred awards. It also includes expenses related to compensation commitments
with financial advisors entered into at the time of recruitment that are subject to vesting requirements. 2 Consists of expenses related to contractors, social security, post-employment benefit plans, and other
personnel expenses. Refer to “Note 6 Personnel expenses” in the “Consolidated financial statements” section of this report for more information.
Tax
Income tax expenses of USD 1,056m were recognized for the Group in 2025, representing an effective tax rate of 11.9%,
compared with USD 1,675m for 2024, which represented an effective tax rate of 24.6%.
The income tax expenses for 2025 included a Swiss tax expense of USD 920m, which included current tax expenses of
USD 597m in respect of taxable profits of UBS Switzerland AG and other Swiss entities and deferred tax expenses of
USD 323m that primarily related to the amortization of deferred tax assets (DTAs) previously recognized in relation to
deductible temporary differences.
Income tax expenses also included a net non-Swiss tax expense of USD 136m, which reflected current tax expenses of
USD 841m that included USD 145m relating to US corporate alternative minimum tax, with an equivalent deferred tax
benefit for DTAs recognized in respect of tax credits carried forward, and USD 696m in respect of other taxable profits
of non-Swiss subsidiaries and branches. These were partly offset by a net deferred tax benefit of USD 705m, which
included USD 145m related to the aforementioned deferred tax benefit, USD 747m in respect of a net upward revaluation
of DTAs and USD 215m in respect of an increase in DTAs that resulted from an increase in the expected value of future
tax deductions for deferred compensation awards due to an increase in the Group’s share price during the year. These
benefits were partly offset by an expense of USD 402m that primarily related to the amortization of DTAs previously
recognized in relation to tax losses carried forward and deductible temporary differences.
For the full year 2026, we expect a tax rate of around 23%, excluding any potential effects from the remeasurement of
DTAs in connection with the business planning process for 2026 and any material jurisdictional statutory tax rate and
other tax law changes that could be enacted.
›
Refer to “Note 8 Income taxes” in the “Consolidated financial statements” section of this report for more information
›
Refer to the “Risk factors” section of this report for more information
Total comprehensive income attributable to shareholders
In 2025, total comprehensive income attributable to shareholders was USD 11,998m, reflecting net profit of USD 7,767m
and other comprehensive income (OCI), net of tax, of USD 4,231m.
Foreign currency translation OCI was USD 3,333m, mainly due to the weakening of the US dollar against the Swiss franc
and the euro.
OCI related to cash flow hedges was USD 1,295m, mainly reflecting net losses on hedging instruments that were
reclassified from OCI to the income statement and net unrealized gains on US dollar hedging derivatives resulting from
decreases in the relevant US dollar long-term interest rates.
OCI related to own credit on financial liabilities designated at fair value was negative USD 499m, primarily due to a
tightening of our own credit spreads.
›
Refer to “Statement of comprehensive income” in the “Consolidated financial statements” section of this report for more
information
›
Refer to “Note 20 Fair value measurement” in the “Consolidated financial statements” section of this report for more information
about own credit on financial liabilities designated at fair value
›
Refer to “Note 24 Hedge accounting” in the “Consolidated financial statements” section of this report for more information about
cash flow hedges of forecast transactions
Annual Report 2025 |
Financial and operating performance | Group performance 69
Sensitivity to interest rate movements
As of 31 December 2025, it is estimated that a parallel shift in yield curves by +100 basis points could lead to a combined
increase in annual net interest income from our banking book of approximately USD 1.4bn in the first year after such a
shift. Of this increase, approximately USD 1.1bn, USD 0.2bn and USD 0.1bn would result from changes in Swiss franc,
US dollar and euro interest rates, respectively.
A parallel shift in yield curves by –100 basis points could lead to a combined increase in annual net interest income of
approximately USD 0.9bn. Of this increase, approximately USD 1.2bn would result from changes in Swiss franc interest
rates, driven by both contractual and assumed flooring benefits under negative interest rates. US dollar and euro interest
rates would lead to an offsetting decrease of USD 0.2bn and USD 0.1bn, respectively.
These estimates do not represent net interest income forecasts, as they are based on a hypothetical scenario of an
immediate change in interest rates, equal across all currencies and relative to implied forward rates as of 31 December
2025 applied to our banking book. These estimates further assume no change to balance sheet size and product mix,
stable foreign exchange rates, and no specific management action.
Seasonal characteristics
Our revenues may show seasonal patterns, notably in the Investment Bank and transaction-based revenues for Global
Wealth Management, and typically reflect the highest client activity levels in the first quarter, with lower levels throughout
the rest of the year, especially during the summer months and the end-of-year holiday season.
Key figures
Below we provide an overview of selected key figures of the Group. For further information about key figures related to
capital management, refer to the “Capital management” section of this report.
Cost / income ratio
The cost / income ratio was 81.1%, compared with 84.8%, and on an underlying basis the cost / income ratio was
74.4%, compared with 79.5%. Both of these decreases were as a result of higher total revenues and lower operating
expenses.
Return on common equity tier 1 capital
The return on common equity tier 1 (CET1) capital was 10.8%, compared with 6.7%. On an underlying basis, the return
on CET1 capital was 13.7%, compared with 8.7%. These increase s were driven by an increase in net profit attributable
to shareholders and a decrease in average CET1 capital.
CET1 capital
CET1 capital decreased by USD 0.1bn to USD 71.3bn as of 31 December 2025, mainly as operating profit before tax of
USD 8.9bn and foreign currency translation gains of USD 3.1bn were more than offset by dividend accruals of USD 3.4bn,
share repurchases of USD 3.0bn under our 2024 and 2025 share repurchase programs, the recognition of a new capital
reserve of USD 3.0bn for expected future share repurchases in 2026, current tax expenses of USD 1.4bn, and negative
effects from compensation- and own-share-related capital components of USD 0.7bn and other items of USD 0.5bn.
Risk-weighted assets
During 2025, RWA decreased by USD 5.1bn to USD 493.4bn, driven by a USD 16.3bn decrease resulting from asset size
and other movements, an USD 8.6bn decrease as a result of the implementation of the final Basel III standards and a
decrease of USD 4.2bn resulting from model updates and other methodology changes. These decreases were partly
offset by a USD 24.0bn increase from currency effects.
CET1 capital ratio
Our CET1 capital ratio increased to 14.4% from 14.3%, predominantly due to a USD 5.1bn decrease in RWA.
Leverage ratio denominator
During 2025, the LRD increased by USD 103.0bn to USD 1,622.4bn, mainly driven by a USD 110.2bn increase from
currency effects and a USD 28.8bn increase as a result of the implementation of the final Basel III standards, partly offset
by a USD 36.1bn decrease from asset size and other movements.
CET1 leverage ratio
Our CET1 leverage ratio decreased to 4.4% from 4.7%, due to the USD 103.0bn increase in the LRD and the
aforementioned decrease in CET1 capital.
Personnel
The number of internal and external personnel employed was approximately 119,589 (based on full-time equivalents for
internal personnel and workforce count for external personnel) as of 31 December 2025, a net decrease of 9,394
compared with 31 December 2024. The number of internal personnel employed as of 31 December 2025 was 103,177
(full-time equivalents), a net decrease of 5,471 compared with 31 December 2024. The number of external staff was
approximately 16,412 (workforce count), a net decrease of 3,923 compared with 31 December 2024.
Annual Report 2025 |
Financial and operating performance | Group performance 70
Equity, CET1 capital and returns
As of or for the year ended
USD m, except where indicated
31.12.25
31.12.24
31.12.23
Net profit
Net profit attributable to shareholders
7,767
5,085
27,366
Equity
Equity attributable to shareholders
90,213
85,079
85,624
less: goodwill and intangible assets
6,948
6,887
7,515
Tangible equity attributable to shareholders
83,265
78,192
78,109
less: other CET1 deductions
12,003
6,825
107
CET1 capital
71,262
71,367
78,002
Return on equity
Return on equity (%)
8.8
6.0
36.9
Return on tangible equity (%)
9.5
6.5
40.8
Underlying return on tangible equity (%)
12.1
8.5
4.1
Return on CET1 capital (%)
10.8
6.7
41.8
Underlying return on CET1 capital (%)
13.7
8.7
4.2
Annual Report 2025 |
Financial and operating performance | Global Wealth Management 71
Global Wealth Management
Global Wealth Management
As of or for the year ended
% change from
USD m, except where indicated
31.12.25
31.12.24
31.12.24
Results
Net interest income
7,018
7,358
(5)
Recurring net fee income
13,671
12,625
8
Transaction-based income
1,2
5,208
4,503
16
Other revenues
1,3
62
31
101
Total revenues
25,960
24,516
6
Credit loss expense / (release)
48
(16)
Operating expenses
20,705
20,608
0
Business division operating profit / (loss) before tax
5,207
3,924
33
Underlying results
Total revenues as reported
25,960
24,516
6
of which: PPA effects and other integration items
4
624
891
(30)
of which: PPA effects recognized in net interest income
579
910
(36)
of which: PPA effects and other integration items recognized in transaction-based income
45
(19)
of which: loss related to an investment in an associate
(62)
(21)
200
Total revenues (underlying)
1
25,398
23,646
7
Credit loss expense / (release)
48
(16)
Operating expenses as reported
20,705
20,608
0
of which: integration-related expenses and PPA effects
1,5
1,675
1,807
(7)
Operating expenses (underlying)
1
19,030
18,802
1
of which: net expenses / (releases) for litigation, regulatory and similar matters
(173)
147
Business division operating profit / (loss) before tax as reported
5,207
3,924
33
Business division operating profit / (loss) before tax (underlying)
1
6,320
4,860
30
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
32.7
13.9
Cost / income ratio (%)
1
79.8
84.1
Average attributed equity (USD bn)
6
34.2
33.3
3
Return on attributed equity (%)
1,6
15.2
11.8
Financial advisor compensation
7
5,654
5,292
7
Net new fee-generating assets (USD bn)
1
52.2
61.7
Fee-generating assets (USD bn)
1
2,108
1,816
16
Net new money (USD bn)
1
7.9
5.5
Net new assets (USD bn)
1
100.8
96.7
Net new assets growth rate (%)
1
2.4
2.5
Invested assets (USD bn)
1
4,753
4,182
14
Net new loan volumes (USD bn)
1,8
13.6
(11.8)
Loan volumes (USD bn)
1,9
327.2
300.5
9
Net new deposit volumes (USD bn)
1,10
(9.2)
0.9
Customer deposit volumes (USD bn)
1,11
479.1
470.1
2
Credit-impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,12
0.5
0.4
Advisors (full-time equivalents)
9,420
9,803
(4)
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
1
30.0
30.3
Cost / income ratio (%)
1
74.9
79.5
Return on attributed equity (%)
1,6
18.5
14.6
1 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. Each alternative performance measure (APM) that qualifies as a non-GAAP measure as defined
by US Securities and Exchange Commission (SEC) regulations is designated as such in the table of APMs in the appendix to this report. For more information about underlying results, refer to the “Group performance”
section of this report. 2 Is composed of USD 3,399m (2024: USD 2,841m) of net fee and commission income, USD 1,803m (2024: USD 1,673m) of other net income from financial instruments measured at fair value
through profit or loss and USD 6m (2024: negative USD 11m) of other income as reflected in the Group financial statements. Income related to certain financial instruments not directly linked to client activity and
measured at fair value that was previously presented as transaction-based income is presented as other revenues from the fourth quarter of 2025 onward. This change has been applied prospectively. 3 Are composed
of USD 33m (2024: USD 0m) of other net income from financial instruments measured at fair value through profit or loss and USD 29m (2024: USD 31m) of other income as reflected in the Group financial statements.
Income related to certain financial instruments not directly linked to client activity and measured at fair value that was previously presented as transaction-based income is presented as other revenues from the fourth
quarter of 2025 onward. This change has been applied prospectively. The line was renamed “Other revenues” (previously “Other income”) in the fourth quarter of 2025. 4 Includes accretion of PPA adjustments on
financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration. 5 Includes temporary, incremental operating expenses directly related to the integration,
as well as amortization of intangibles resulting from the acquisition of the Credit Suisse Group. 6 Refer to the “Capital management” section of this report for more information about the equity attribution framework.
7 Relates to licensed professionals with the ability to provide investment advice to clients in the Americas. Consists of cash compensation, determined using a formulaic approach based on production, and deferred
awards. Also includes expenses related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements. Recruitment loans to financial advisors
were USD 1,493m as of 31 December 2025. 8 Is composed of USD 13.4bn (2024: negative USD 11.5bn) classified as Loans and advances to customers and USD 0.2bn (2024: negative USD 0.3bn) classified as
Brokerage receivables in the Group financial statements. 9 Presented gross of expected credit losses. Is composed of USD 322.4bn (31 December 2024: USD 295.9bn) classified as Loans and advances to customers
and USD 4.8bn (2024: USD 4.6bn) classified as Brokerage receivables in the Group financial statements. 10 Is composed of negative USD 8.6bn (2024: negative USD 0.4bn) classified as Customer deposits and
negative USD 0.6bn (2024: USD 1.3bn) classified as Brokerage payables in the Group financial statements. 11 Is composed of USD 473.8bn (31 December 2024: USD 464.2bn) classified as Customer deposits and
USD 5.3bn (2024: USD 5.9bn) classified as Brokerage payables in the Group financial statements. 12 Refer to the “Risk management and control” section of this report for more information about credit-impaired
exposures. Excludes loans to financial advisors.
Annual Report 2025 |
Financial and operating performance | Global Wealth Management 72
2025 compared with 2024
Results
Profit before tax increased by USD 1,283m, or 33%, to USD 5,207m, mainly due to higher total revenues and broadly
stable operating expenses. Underlying profit before tax was USD 6,320m, an increase of 30%, after excluding from
operating expenses USD 1,675m of integration-related expenses and purchase price allocation (PPA) effects and
excluding from total revenues USD 624m of PPA effects and other integration items and a USD 62m loss related to an
investment in an associate.
Total revenues
Total revenues increased by USD 1,444m, or 6%, to USD 25,960m, largely driven by higher recurring net fee income and
transaction-based income, partly offset by lower net interest income, and included a USD 267m decrease in PPA effects
and other integration items. Excluding USD 624m of PPA effects and other integration items and a USD 62m loss related
to an investment in an associate, underlying total revenues were USD 25,398m, an increase of 7%.
Net interest income decreased by USD 340m, or 5%, to USD 7,018m and included a USD 331m decrease in accretion of
PPA adjustments on financial instruments and other PPA effects. Excluding PPA effects of USD 579m, underlying net
interest income was broadly stable at USD 6,439m. Net interest income was impacted by lower central bank interest rates
on deposit revenues, by lower loan revenues, which reflected lower margins, and also by higher liquidity and funding
costs. These drivers were almost entirely offset by balance sheet optimization measures, the effects of favorable changes
in deposit mix and positive foreign currency effects.
Recurring net fee income increased by USD 1,046m, or 8%, to USD 13,671m, mainly driven by higher average levels of
fee-generating assets, primarily from mandates, reflecting positive market performance and net new fee-generating asset
inflows in 2025.
Transaction-based income increased by USD 705m, or 16%, to USD 5,208m. Excluding PPA effects and other integration
items of USD 45m, underlying transaction-based income was USD 5,163m, an increase of 14%, mainly driven by higher
levels of client activity across all regions and also driven by contributions from Structured Solutions, Cash Equities,
Investment Funds and Wealth Planning revenues.
Other revenues increased by USD 31m to USD 62m and included a release of USD 42m related to other financial liabilities,
a USD 34m fair value gain from a strategic partnership and a USD 33m gain from the sale of our wealth management
business in India, partly offset by a net loss of USD 62m related to an investment in an associate. Other revenues in 2024
included a loss of USD 21m related to an investment in an associate. Excluding the aforementioned net loss of USD 62m,
underlying other revenues were USD 125m.
Credit loss expense / release
Net credit loss expenses were USD 48m, reflecting net expenses on credit-impaired positions and net releases related to
performing positions. Net credit loss releases were USD 16m in 2024.
Operating expenses
Operating expenses were broadly stable at USD 20,705m and included a USD 132m decrease in integration-related
expenses. Excluding USD 1,675m of integration-related expenses and PPA effects, underlying operating expenses were
USD 19,030m, an increase of 1%, mainly driven by an increase in financial advisor compensation as a result of higher
compensable revenues, partly offset by USD 173m of net releases in provisions for litigation, regulatory and similar
matters, primarily reflecting USD 284m of releases related to the resolution of a legacy matter concerning cross-border
business activities in France.
›
Refer to “Note 17 Provisions and contingent liabilities” in the “Consolidated financial statements” section of this report for more
information about litigation, regulatory and similar matters
Cost / income ratio
The cost / income ratio decreased to 79.8% from 84.1%, mainly reflecting an increase in total revenues, while operating
expenses were broadly stable. The underlying cost / income ratio decreased to 74.9% from 79.5%, as an increase in
underlying total revenues more than offset an increase in underlying operating expenses.
Invested assets
Invested assets increased by USD 571bn to USD 4,753bn, mainly driven by positive market performance of USD 376.7bn,
positive foreign currency effects of USD 125.8bn and net new asset inflows of USD 100.8bn, partly offset by effects of
USD 27.5bn as a result of UBS’s strategic decisions to exit certain markets or cease offering certain services.
Loan volumes
Loan volumes increased by USD 26.7bn to USD 327.2bn, mainly driven by positive foreign currency effects and positive
net new loan volumes of USD 13.6bn.
›
Refer to the “Risk management and control” section of this report for more information
Annual Report 2025 |
Financial and operating performance | Global Wealth Management 73
Customer deposit volumes
Customer deposit volumes increased by USD 9.0bn to USD 479.1bn, mainly driven by positive foreign currency effects,
partly offset by net new deposit volume outflows of USD 9.2bn.
Regional breakdown of performance measures
As of or for the year ended 31.12.25
USD m, except where indicated
Americas
1
Asia Pacific
EMEA
Switzerland
Divisional items
2
Global Wealth
Management
Net interest income
Recurring net fee income
Transaction-based income
3,4
Other revenues
3,4
Total revenues
Credit loss expense / (release)
Operating expenses
Operating profit / (loss) before tax
of which: PPA effects, integration-related items and other items
5
Cost / income ratio (%)
3
Net new fee-generating assets (USD bn)
3
Fee-generating assets (USD bn)
3
Net new money (USD bn)
3
Net new assets (USD bn)
3
Net new assets growth rate (%)
3
Invested assets (USD bn)
3
Net new loan volumes (USD bn)
3
Loan volumes (USD bn)
3
6
Net new deposit volumes (USD bn)
3
Customer deposit volumes (USD bn)
3
6
Advisors (full-time equivalents)
1 Includes the Wealth Management US (which covers the USA and Canada) and Wealth Management LatAm (which covers Latin America) business units. 2 Includes impacts from accretion of purchase price
allocation adjustments on financial instruments and other PPA effects, integration-related expenses, certain gains and losses from investments in associates and minor functions, that are not included in the four
regions individually presented in this table. 3 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. Each alternative performance measure (APM) that
qualifies as a non-GAAP measure as defined by US Securities and Exchange Commission (SEC) regulations is designated as such in the table of APMs in the appendix to this report. For more information about
underlying results, refer to the “Group performance” section of this report. 4 From the fourth quarter of 2025 onward, income related to certain financial instruments not directly linked to client activity and measured
at fair value that was previously presented as transaction-based income is now presented as other revenues. This change has been applied prospectively. The line has been renamed “Other revenues” (previously
“Other income”). 5 Items of profit or loss that management believes are not representative of the underlying performance, namely impacts from accretion of purchase price allocation adjustments on financial
instruments and other PPA effects, integration-related expenses, amortization of intangibles resulting from the acquisition of the Credit Suisse Group, and certain gains and losses from investments in associates.
6 Loan volumes and Customer deposit volumes in this table include customer brokerage receivables and payables, respectively, which are presented in separate reporting lines on the balance sheet.
Regional comments: 2025 compared with 2024
Americas
Profit before tax increased by USD 510m to USD 1,554m. Total revenues increased by USD 980m, or 9%, to
USD 12,243m, mainly driven by increases of USD 661m in recurring net fee income, USD 191m in transaction-based
income and USD 153m in net interest income. Operating expenses increased by USD 447m, or 4%, to USD 10,639m.
The cost / income ratio decreased to 86.9% from 90.5%. Loan volumes increased by 6% compared with 2024, to
USD 103.6bn, mainly driven by positive net new loan volumes of USD 5.9bn. Customer deposit volumes increased by
3% compared with 2024, to USD 119.6bn, with net new deposit volume inflows of USD 3.0bn. Net new asset outflows
were USD 5.9bn.
Asia Pacific
Profit before tax increased by USD 353m to USD 1,535m. Total revenues increased by USD 376m, or 10%, to
USD 3,988m, mainly driven by increases of USD 311m in transaction-based income and USD 96m in recurring net fee
income. Operating expenses were broadly stable at USD 2,447m. The cost / income ratio decreased to 61.4% from
67.5%. Loan volumes increased by 12% compared with 2024, to USD 46.4bn, mainly driven by positive net new loan
volumes of USD 3.0bn. Customer deposit volumes decreased by 7% compared with 2024, to USD 117.0bn, with net
new deposit volume outflows of USD 7.5bn. Net new asset inflows were USD 62.5bn.
EMEA
Profit before tax increased by USD 387m to USD 1,621m and included USD 150m of net releases in provisions for
litigation, regulatory and similar matters, primarily reflecting USD 213m of releases related to the resolution of a legacy
matter concerning cross-border business activities in France. Total revenues increased by USD 178m, or 4%, to
USD 4,855m, mainly driven by increases of USD 164m in recurring net fee income and USD 124m in transaction-based
income, partly offset by a USD 111m decrease in net interest income. Operating expenses decreased by USD 247m, or
7%, to USD 3,213m and included the aforementioned release in litigation provisions. The cost / income ratio decreased
to 66.2% from 74.0%. Loan volumes increased by 10% compared with 2024, to USD 63.3bn, mainly driven by positive
foreign currency effects and positive net new loan volumes of USD 2.7bn. Customer deposit volumes increased by 3%
compared with 2024, to USD 114.0bn, mainly driven by positive foreign currency effects, partly offset by net new deposit
volume outflows of USD 0.5bn. Net new asset inflows were USD 28.4bn.
Annual Report 2025 |
Financial and operating performance | Global Wealth Management 74
Switzerland
Profit before tax increased by USD 98m to USD 1,540m and included USD 62m of net releases in provisions for litigation,
regulatory and similar matters, primarily reflecting USD 71m of releases related to the resolution of a legacy matter
concerning cross-border business activities in France. Total revenues increased by USD 118m, or 3%, to USD 4,201m,
with an increase of USD 127m in recurring net fee income and USD 60m in transaction-based income, partly offset by a
decrease of USD 76m in net interest income. Operating expenses increased by USD 27m, or 1%, to USD 2,689m and
included the aforementioned release in litigation provisions. The cost / income ratio decreased to 64.0% from 65.2%.
Loan volumes increased by 10% compared with 2024, to USD 113.2bn, mainly driven by positive foreign currency effects
and positive net new loan volumes of USD 2.2bn. Customer deposit volumes increased by 8% compared with 2024, to
USD 124.7bn, mainly driven by positive foreign currency effects, partly offset by net new deposit volume outflows of
USD 3.3bn. Net new asset inflows were USD 18.1bn.
Divisional items
Operating loss before tax was USD 1,043m and mainly included USD 1,675m of integration-related expenses and PPA
effects, impacts from agreements with certain clients, and a loss of USD 62m related to an investment in an associate,
partly offset by the aforementioned USD 624m related to PPA effects and other integration items, USD 42m related to
other financial liabilities, a USD 34m fair value gain driven from a strategic partnership, and a USD 33m gain from the
sale of our wealth management business in India.
Annual Report 2025 |
Financial and operating performance | Personal & Corporate Banking 75
Personal & Corporate Banking
Personal & Corporate Banking – in Swiss francs
As of or for the year ended
% change from
CHF m, except where indicated
31.12.25
31.12.24
31.12.24
Results
Net interest income
4,403
4,987
(12)
Recurring net fee income
1,2
1,405
1,425
(1)
Transaction-based income
1,3
1,825
1,821
0
Other revenues
1,4
(50)
7
Total revenues
7,583
8,241
(8)
Credit loss expense / (release)
277
357
(22)
Operating expenses
5,235
5,070
3
Business division operating profit / (loss) before tax
2,071
2,814
(26)
Underlying results
Total revenues as reported
7,583
8,241
(8)
of which: PPA effects and other integration items
5
841
915
(8)
of which: PPA effects recognized in net interest income
757
841
(10)
of which: PPA effects and other integration items recognized in transaction-based income
84
74
13
of which: loss related to an investment in an associate
(133)
(54)
148
of which: items related to the Swisscard transactions
6
58
Total revenues (underlying)
1
6,817
7,379
(8)
Credit loss expense / (release)
277
357
(22)
Operating expenses as reported
5,235
5,070
3
of which: integration-related expenses and PPA effects
1,7
897
662
36
of which: items related to the Swisscard transactions
164
8
37
9
341
Operating expenses (underlying)
1
4,175
4,371
(4)
of which: net expenses / (releases) for litigation, regulatory and similar matters
(30)
1
Business division operating profit / (loss) before tax as reported
2,071
2,814
(26)
Business division operating profit / (loss) before tax (underlying)
1
2,365
2,651
(11)
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
(26.4)
11.3
Cost / income ratio (%)
1
69.0
61.5
Average attributed equity (CHF bn)
10
17.8
19.0
(6)
Return on attributed equity (%)
1,10
11.6
14.8
Net interest margin (bps)
1
178
201
Loans, gross (CHF bn)
246.0
242.3
1
Customer deposits (CHF bn)
248.6
254.1
(2)
Credit-impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,11
1.2
1.3
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
1
(10.8)
8.1
Cost / income ratio (%)
1
61.2
59.2
Return on attributed equity (%)
1,10
13.3
13.9
1 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. Each alternative performance measure (APM) that qualifies as a non-GAAP measure as defined
by US Securities and Exchange Commission (SEC) regulations is designated as such in the table of APMs in the appendix to this report. For more information about underlying results, refer to the “Group performance”
section of this report. 2 Is composed of net fee and commission income and other income as reflected in the Group financial statements. For reconciliation information in US dollar amounts, refer to the corresponding
footnote in the table below. 3 Is composed of net fee and commission income, other net income from financial instruments measured at fair value through profit or loss and other income as reflected in the Group
financial statements. For reconciliation information in US dollar amounts, refer to the corresponding footnote in the table below. Income related to certain financial instruments not directly linked to client activity and
measured at fair value that was previously presented as transaction-based income is presented as other revenues from the fourth quarter of 2025 onward. This change has been applied prospectively. 4 Are composed
of other net income from financial instruments measured at fair value through profit or loss and other income as reflected in the Group financial statements. For reconciliation information in US dollar amounts, refer
to the corresponding footnote in the table below. Income related to certain financial instruments not directly linked to client activity and measured at fair value that was previously presented as transaction-based
income is presented as other revenues from the fourth quarter of 2025 onward. This change has been applied prospectively. The line was renamed “Other revenues” (previously “Other income”) in the fourth quarter
of 2025. 5 Includes accretion of PPA adjustments on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration. 6 Represents the gain related to
UBS’s share of the income recorded by Swisscard for the sale of the Credit Suisse card portfolios to UBS. 7 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization
of intangibles resulting from the acquisition of the Credit Suisse Group. 8 Represents the expense related to the payment to Swisscard for the sale of the Credit Suisse card portfolios to UBS. 9 Represents the
termination fee paid to American Express related to the sale of our 50% holding in Swisscard. 10 Refer to the “Capital management” section of this report for more information about the equity attribution
framework. 11 Refer to the “Risk management and control” section of this report for more information about credit-impaired exposures.
Annual Report 2025 |
Financial and operating performance | Personal & Corporate Banking 76
2025 compared with 2024
Results
Profit before tax decreased by CHF 743m, or 26%, to CHF 2,071m, reflecting lower total revenues and higher operating
expenses, partly offset by lower net credit loss expenses. Underlying profit before tax was CHF 2,365m, a decrease of
11%, predominantly driven by lower net interest income, resulting from lower market interest rates. This underlying
profit excludes from total revenues CHF 841m of purchase price allocation (PPA ) effects and other integration items, a
net loss of CHF 133m related to an investment in an associate, and a gain of CHF 58m related to the Swisscard
transactions; it also excludes from operating expenses CHF 897m of integration-related expenses and PPA effects and a
CHF 164m expense related to the Swisscard transactions.
Total revenues
Total revenues decreased by CHF 658m, or 8%, to CHF 7,583m, predominantly due to lower net interest income, and
included a CHF 74m decrease in PPA effects and other integration items. Total revenues in 2025 also included a gain of
CHF 58m related to the Swisscard transactions and a net loss of CHF 133m related to an investment in an associate.
Excluding CHF 841m of PPA effects and other integration items and the aforementioned gain and a net loss, underlying
total revenues were CHF 6,817m, a decrease of 8%.
Net interest income decreased by CHF 584m, or 12%, to CHF 4,403m, mainly reflecting the impact of lower central bank
interest rates on deposit revenues. This decrease was partly offset by deposit pricing measures and lower liquidity and
funding costs. Net interest income also included an CHF 84m decrease in accretion of PPA adjustments on financial
instruments and other PPA effects. Excluding PPA effects of CHF 757m, underlying net interest income was CHF 3,647m,
a decrease of 12%.
Recurring net fee income decreased by CHF 20m, or 1%, to CHF 1,405m, as the impact from a reclassification of recurring
net fee income to transaction-based income as a result of aligning Credit Suisse presentation to that of UBS in the second
half of 2024, as well as lower revenues related to our share of Swisscard profit, was partly offset by higher custody fees,
mainly reflecting net new inflows and positive market performance.
Transaction-based income was broadly stable at CHF 1,825m, as the positive impact from the aforementioned
reclassification and a CHF 10m increase in accretion of PPA adjustments on financial instruments and other PPA effects
were offset by lower corporate client revenues. Excluding CHF 84m of PPA effects and other integration items, underlying
transaction-based income was broadly stable at CHF 1,741m.
Other revenues were negative CHF 50m, compared with positive CHF 7m, and included a net loss of CHF 133m related
to an investment in an associate, partly offset by a gain of CHF 58m related to the Swisscard transactions. Other revenues
in 2024 included a loss of CHF 54m related to an investment in an associate. Excluding the aforementioned net loss of
CHF 133m and the gain of CHF 58m, underlying other revenues were positive CHF 25m.
Credit loss expense / release
Net credit loss expenses were CHF 277m, mainly reflecting net expenses on credit-impaired positions, compared with net
credit loss expenses of CHF 357m in 2024.
Operating expenses
Operating expenses increased by CHF 165m, or 3%, to CHF 5,235m and included a CHF 164m expense related to the
Swisscard transactions and a CHF 240m increase in integration-related expenses. Excluding CHF 897m of integration-
related expenses and PPA effects and the aforementioned expense of CHF 164m, underlying operating expenses were
CHF 4,175m, a decrease of 4%, mainly driven by lower personnel expenses, including lower variable compensation, and
by CHF 29m of net releases in provisions for litigation, regulatory and similar matters related to the resolution of a legacy
matter concerning cross-border business activities in France.
›
Refer to “Note 17 Provisions and contingent liabilities” in the “Consolidated financial statements” section of this report for more
information about litigation, regulatory and similar matters
Return on attributed equity
Return on attributed equity was 11.6%, compared with 14.8% in 2024. The underlying return on attributed equity was
13.3%, compared with 13.9% in 2024.
Cost / income ratio
The cost / income ratio increased to 69.0% from 61.5%, due to a decrease in total revenues and an increase in operating
expenses. The underlying cost / income ratio increased to 61.2% from 59.2%, as a decrease in underlying total revenues
more than offset a decrease in underlying operating expenses.
Annual Report 2025 |
Financial and operating performance | Personal & Corporate Banking 77
Personal & Corporate Banking – in US dollars
As of or for the year ended
% change from
USD m, except where indicated
31.12.25
31.12.24
31.12.24
Results
Net interest income
5,322
5,650
(6)
Recurring net fee income
1,2
1,698
1,614
5
Transaction-based income
1,3
2,207
2,061
7
Other revenues
1,4
(73)
10
Total revenues
9,154
9,334
(2)
Credit loss expense / (release)
339
404
(16)
Operating expenses
6,318
5,741
10
Business division operating profit / (loss) before tax
2,497
3,189
(22)
Underlying results
Total revenues as reported
9,154
9,334
(2)
of which: PPA effects and other integration items
5
1,016
1,038
(2)
of which: PPA effects recognized in net interest income
915
954
(4)
of which: PPA effects and other integration items recognized in transaction-based income
101
84
21
of which: loss related to an investment in an associate
(168)
(59)
184
of which: items related to the Swisscard transactions
6
64
Total revenues (underlying)
1
8,242
8,355
(1)
Credit loss expense / (release)
339
404
(16)
Operating expenses as reported
6,318
5,741
10
of which: integration-related expenses and PPA effects
1,7
1,093
749
46
of which: items related to the Swisscard transactions
180
8
41
9
340
Operating expenses (underlying)
1
5,045
4,951
2
of which: net expenses / (releases) for litigation, regulatory and similar matters
(37)
1
Business division operating profit / (loss) before tax as reported
2,497
3,189
(22)
Business division operating profit / (loss) before tax (underlying)
1
2,857
3,000
(5)
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
(21.7)
13.4
Cost / income ratio (%)
1
69.0
61.5
Average attributed equity (USD bn)
10
21.4
21.6
(1)
Return on attributed equity (%)
1,10
11.7
14.8
Net interest margin (bps)
1
178
200
Loans, gross (USD bn)
310.2
266.9
16
Customer deposits (USD bn)
313.5
279.9
12
Credit-impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,11
1.2
1.3
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
1
(4.8)
9.3
Cost / income ratio (%)
1
61.2
59.3
Return on attributed equity (%)
1,10
13.4
13.9
1 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. Each alternative performance measure (APM) that qualifies as a non-GAAP measure as defined
by US Securities and Exchange Commission (SEC) regulations is designated as such in the table of APMs in the appendix to this report. For more information about underlying results, refer to the “Group performance”
section of this report. 2 Is composed of USD 1,669m (2024: USD 1,541m) of net fee and commission income and USD 29m (2024: USD 73m) of other income as reflected in the Group financial statements. 3 Is
composed of USD 1,303m (2024: USD 1,182m) of net fee and commission income, USD 896m (2024: USD 843m) of other net income from financial instruments measured at fair value through profit or loss and
USD 8m (2024: USD 36m) of other income as reflected in the Group financial statements. Income related to certain financial instruments not directly linked to client activity and measured at fair value that was
previously presented as transaction-based income is presented as other revenues from the fourth quarter of 2025 onward. This change has been applied prospectively. 4 Are composed of negative USD 40m (2024:
negative USD 14m) of other net income from financial instruments measured at fair value through profit or loss and negative USD 33m (2024: USD 24m) of other income as reflected in the Group financial statements.
Income related to certain financial instruments not directly linked to client activity and measured at fair value that was previously presented as transaction-based income is presented as other revenues from the fourth
quarter of 2025 onward. This change has been applied prospectively. The line was renamed “Other revenues” (previously “Other income”) in the fourth quarter of 2025. 5 Includes accretion of PPA adjustments
on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration. 6 Represents the gain related to UBS’s share of the income recorded by Swisscard for
the sale of the Credit Suisse card portfolios to UBS. 7 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of intangibles resulting from the acquisition of
the Credit Suisse Group. 8 Represents the expense related to the payment to Swisscard for the sale of the Credit Suisse card portfolios to UBS. 9 Represents the termination fee paid to American Express related
to the sale of our 50% holding in Swisscard. 10 Refer to the “Capital management” section of this report for more information about the equity attribution framework. 11 Refer to the “Risk management and
control” section of this report for more information about credit-impaired exposures.
Annual Report 2025 |
Financial and operating performance | Asset Management 78
Asset Management
Asset Management
As of or for the year ended
% change from
USD m, except where indicated
31.12.25
31.12.24
31.12.24
Results
Net management fees
1,2
2,991
2,921
2
Performance fees
195
149
31
Net gain / (loss) from disposal
(30)
113
Total revenues
3,156
3,182
(1)
Credit loss expense / (release)
1
(1)
Operating expenses
2,436
2,663
(9)
Business division operating profit / (loss) before tax
719
520
38
Underlying results
Total revenues as reported
3,156
3,182
(1)
Total revenues (underlying)
1
3,156
3,182
(1)
Credit loss expense / (release)
1
(1)
Operating expenses as reported
2,436
2,663
(9)
of which: integration-related expenses
1
256
351
(27)
Operating expenses (underlying)
1
2,179
2,312
(6)
of which: net expenses / (releases) for litigation, regulatory and similar matters
0
7
Business division operating profit / (loss) before tax as reported
719
520
38
Business division operating profit / (loss) before tax (underlying)
1
975
871
12
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
38.3
56.3
Cost / income ratio (%)
1
77.2
83.7
Average attributed equity (USD bn)
3
2.5
2.7
(9)
Return on attributed equity (%)
1,3
29.2
19.2
Gross margin on invested assets (bps)
1
16
18
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
1
12.0
62.2
Cost / income ratio (%)
1
69.1
72.7
Return on attributed equity (%)
1,3
39.6
32.1
Information by business line / asset class
Net new money (USD bn)
1
Equities
4
3.0
20.7
Fixed Income
4
22.7
18.0
of which: money market
12.7
18.5
Multi-asset & Solutions
4
1.7
(1.5)
Hedge Fund Businesses
1.8
(3.5)
Real Estate & Private Markets
0.9
0.1
Total net new money excluding associates
30.1
33.8
of which: net new money excluding money market
17.5
15.4
Associates
5
0.3
10.8
Total net new money
30.4
44.6
Invested assets (USD bn)
1
Equities
4
904
755
20
Fixed Income
4
506
464
9
of which: money market
176
157
12
Multi-asset & Solutions
4
372
268
39
Hedge Fund Businesses
62
58
7
Real Estate & Private Markets
160
143
12
Total invested assets excluding associates
2,005
1,689
19
of which: passive strategies
1,040
807
29
Associates
5
93
84
11
Total invested assets
2,098
1,773
18
Annual Report 2025 |
Financial and operating performance | Asset Management 79
Asset Management (continued)
As of or for the year ended
% change from
USD m, except where indicated
31.12.25
31.12.24
31.12.24
Information by region
Invested assets (USD bn)
1
Americas
489
443
10
Asia Pacific
6
256
224
14
EMEA (excluding Switzerland)
540
435
24
Switzerland
813
670
21
Total invested assets
2,098
1,773
18
Information by channel
Invested assets (USD bn)
1
Third-party institutional
1,193
1,008
18
Third-party wholesale
212
169
25
UBS’s wealth management businesses
601
512
17
Associates
5
93
84
11
Total invested assets
2,098
1,773
18
1 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. Each alternative performance measure (APM) that qualifies as a non-GAAP measure as defined
by US Securities and Exchange Commission (SEC) regulations is designated as such in the table of APMs in the appendix to this report. For more information about underlying results, refer to the “Group performance”
section of this report. 2 Net management fees include transaction fees, fund administration revenues (including net interest and trading income from lending activities and foreign-exchange hedging as part of the
fund services offering), distribution fees, incremental fund-related expenses, gains or losses from seed money and co-investments, funding costs, the negative pass-through impact of third-party performance fees, and
other items that are not Asset Management’s performance fees. Net management fees are composed of USD 69m (2024: USD 63m) of interest expense, USD 2,800m (2024: USD 2,710m) of recurring net fee and
commission income, USD 79m (2024: USD 77m) of transaction-based net fee and commission income, USD 53m (2024: USD 80m) of other net income from financial instruments measured at fair value through profit
or loss, and USD 128m (2024: USD 117m) of other income as reflected in the Group financial statements. 3 Refer to the “Capital management” section of this report for more information about the equity attribution
framework. 4 In the third quarter of 2025, certain portfolios were reclassified from Equities and Fixed Income to Multi-asset & Solutions, as a result of aligning Credit Suisse presentation to that of UBS. These
changes were applied prospectively. 5 The invested assets and net new money amounts reported for associates are prepared in accordance with their local regulatory requirements and practices. 6 Includes invested
assets from associates.
2025 compared with 2024
Results
Profit before tax increased by USD 199m, or 38%, to USD 719m, reflecting lower operating expenses, partly offset by
lower total revenues, which included a net loss of USD 30m from disposals in 2025, predominantly reflecting a net loss
of USD 29m related to the sale of our O’Connor business to Cantor Fitzgerald. Profit before tax in 2024 included a net
gain of USD 113m from the sale of non-strategic businesses. Underlying profit before tax was USD 975m, an increase of
12%, after excluding integration-related expenses of USD 256m.
Total revenues
Total revenues decreased by USD 26m, or 1%, to USD 3,156m, primarily due to the effects from the aforementioned
sales. The gross margin was 16 basis points.
Net management fees increased by USD 70m, or 2%, to USD 2,991m, mainly driven by higher average levels of invested
assets, primarily from positive market performance and foreign currency effects, and by an increase reflecting our share
of the net profit of associates, partly offset by the ongoing margin compression. Net management fees were also
impacted by a reduction in revenues related to Hedge Fund Businesses (linked to the increase in performance fees
mentioned below), while 2024 included a revaluation of a real estate fund co-investment.
Performance fees increased by USD 46m, or 31%, to USD 195m, mainly due to a USD 57m increase in Hedge Fund
Businesses, partly offset by decreases in the Real Estate business and Fixed Income.
Operating expenses
Operating expenses decreased by USD 227m, or 9%, to USD 2,436m and included a USD 95m decrease in integration-
related expenses. Excluding integration-related expenses of USD 256m, underlying operating expenses were
USD 2,179m, a decrease of 6%, reflecting decreases in non-personnel and personnel expenses.
Annual Report 2025 |
Financial and operating performance | Asset Management 80
Cost / income ratio
The cost / income ratio decreased to 77.2% from 83.7%, with a decrease on an underlying basis to 69.1% from 72.7%,
as decreases in operating expenses and underlying operating expenses more than offset a decrease in total revenues.
Invested assets
Invested assets increased by USD 325bn, or 18%, to USD 2,098bn, reflecting positive market performance of USD 171bn,
positive foreign currency effects of USD 131bn and net new money of USD 30bn, partly offset by a reduction of USD 7bn,
which included USD 4bn related to the first stage of the transfer of our O’Connor business. Excluding money market
flows and associates, net new money was USD 17bn.
Investment performance
As of the end of 2025, Morningstar assigned a four- or five-star rating to 62% of our traditional retail and institutional
funds assets under management (AuM) (both actively managed and passive), on an AuM-weighted basis. In addition,
62% of our actively managed traditional open-ended retail and institutional funds AuM are ranked, on an AuM-weighted
basis over a three-year investment period, above their respective peer median.
Investment performance as of 31 December 2025
In %
Total traditional
investments
Equities
Fixed Income
Multi-asset
Percentage of UBS Asset Management fund assets rated as 4- or 5-star
1,2
62
76
42
22
Percentage of UBS Asset Management fund assets above peer median over a 3-year investment period
1,3
62
64
72
46
1 Morningstar® Essentials Quantitative Star Rating & Rankings; © Morningstar 2026, extract date 13 January 2026. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and / or its
content providers; (2) may not be copied or distributed; (3) is not warranted to be accurate, complete or timely; and (4) does not constitute advice of any kind, whether investment, tax, legal or otherwise. User is
solely responsible for ensuring that it complies with all laws, regulations and restrictions applicable to it. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use
of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past performance is no guarantee of future results. Refer to “The Morningstar Rating for Funds”,
available at morningstar.com/business/insights/research/methodology -documents, for more detailed information about the Morningstar Rating, including the methodology therefor. 2 Percentage of AuM to which
Morningstar has assigned a four- or five-star rating. AuM reflect the AuM of Asset Management’s retail and institutional funds (both actively managed and passive) across all domiciles for which Asset Management
owns the investment performance, i.e. Asset Management is either the sole portfolio manager or co-portfolio manager. Universe is approximately 36% of all active and passive traditional assets of Asset Management
(Equities, Fixed Income excluding money market, and Multi-asset) as of 31 December 2025. 3 Percentage of AuM above peer median over a three-year investment period. AuM reflect the AuM of Asset Management’s
actively managed open-ended retail and institutional funds across all domiciles for which Asset Management owns the investment performance, i.e. Asset Management is either the sole portfolio manager or co-
portfolio manager. Universe is approximately 27% of all active traditional assets of Asset Management (Equities, Fixed Income excluding money market, and Multi-asset) as of 31 December 2025.
Annual Report 2025 |
Financial and operating performance | Investment Bank 81
Investment Bank
Investment Bank
As of or for the year ended
% change from
USD m, except where indicated
31.12.25
31.12.24
31.12.24
Results
Advisory
1,003
907
11
Capital Markets
2,195
2,547
(14)
Global Banking
3,198
3,454
(7)
Execution Services
2,186
1,719
27
Derivatives & Solutions
4,256
3,478
22
Financing
2,700
2,297
18
Global Markets
9,141
7,494
22
of which: Equities
6,647
5,588
19
of which: Foreign Exchange, Rates and Credit
2,494
1,906
31
Total revenues
12,340
10,948
13
Credit loss expense / (release)
133
97
38
Operating expenses
9,387
8,934
5
Business division operating profit / (loss) before tax
2,819
1,917
47
Underlying results
Total revenues as reported
12,340
10,948
13
of which: PPA effects and other integration items
1
570
989
(42)
of which: PPA effects
443
989
(55)
of which: PPA effects recognized in the Global Banking revenue line
468
972
(52)
of which: other integration items
128
2
Total revenues (underlying)
3
11,769
9,958
18
Credit loss expense / (release)
133
97
38
Operating expenses as reported
9,387
8,934
5
of which: integration-related expenses
3
463
717
(35)
Operating expenses (underlying)
3
8,924
8,217
9
of which: net expenses / (releases) for litigation, regulatory and similar matters
20
9
129
Business division operating profit / (loss) before tax as reported
2,819
1,917
47
Business division operating profit / (loss) before tax (underlying)
3
2,712
1,644
65
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
3
47.1
n.m.
Cost / income ratio (%)
3
76.1
81.6
Average attributed equity (USD bn)
4
18.4
17.1
8
Return on attributed equity (%)
3,4
15.3
11.2
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
3
64.9
n.m.
Cost / income ratio (%)
3
75.8
82.5
Return on attributed equity (%)
3,4
14.8
9.6
1 Includes accretion of PPA adjustments on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration. 2 Represents the gain from the sale of a stake
in a subsidiary, Credit Suisse Securities (China) Limited. 3 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. Each alternative performance measure
(APM) that qualifies as a non-GAAP measure as defined by US Securities and Exchange Commission (SEC) regulations is designated as such in the table of APMs in the appendix to this report. For more information
about underlying results, refer to the “Group performance” section of this report. 4 Refer to the “Capital management” section of this report for more information about the equity attribution framework.
Annual Report 2025 |
Financial and operating performance | Investment Bank 82
2025 compared with 2024
Results
Profit before tax increased by USD 902m, or 47%, to USD 2,819m, due to higher total revenues, partly offset by higher
operating expenses and net credit loss expenses. Underlying profit before tax was USD 2,712m, an increase of 65%,
after excluding from total revenues USD 570m of purchase price allocation (PPA) effects and other integration items
(including a gain from the sale of a stake in a subsidiary, Credit Suisse Securities (China) Limited (CSS)) and excluding
from operating expenses USD 463m of integration-related expenses.
Total revenues
Total revenues increased by USD 1,392m, or 13%, to USD 12,340m, mainly due to higher revenues in Global Markets
and a USD 128m gain from the sale of a stake in CSS, partly offset by a USD 546m decrease in PPA accretion effects.
Excluding this gain and such accretion effects, underlying total revenues were USD 11,769m, an increase of 18%.
Global Banking
Global Banking revenues decreased by USD 256m, or 7%, to USD 3,198m, mostly driven by a USD 504m decrease in
PPA accretion effects on financial instruments and other PPA effects, partly offset by the aforementioned gain from the
sale of a stake in CSS. Excluding this gain and such accretion and other effects, underlying Global Banking revenues were
USD 2,615m, an increase of USD 133m, or 5%, driven by higher revenues in Advisory and Capital Markets.
Advisory revenues increased by USD 96m, or 11%, to USD 1,003m, largely driven by an increase in merger and acquisition
transaction revenues.
Capital Markets revenues decreased by USD 352m, or 14%, to USD 2,195m, mostly driven by a USD 504m decrease in
PPA accretion effects on financial instruments and other PPA effects, partly offset by the aforementioned gain from the
sale of a stake in CSS. Excluding this gain and such accretion and other effects, underlying Capital Markets revenues
increased by USD 37m, or 2%.
Global Markets
Global Markets revenues increased by USD 1,647m, or 22%, to USD 9,141m, driven by higher Derivatives & Solutions,
Execution Services and Financing revenues, and included a gain of USD 102m on a strategic investment, which was split
equally across product verticals.
Execution Services revenues increased by USD 467m, or 27%, to USD 2,186m, mainly driven by higher Cash Equities
revenues across all regions, reflecting higher volumes.
Derivatives & Solutions revenues increased by USD 778m, or 22%, to USD 4,256m, driven by higher volatility and higher
levels of client activity.
Financing revenues increased by USD 403m, or 18%, to USD 2,700m, led by Prime Brokerage revenues, supported by
higher client balances. Included in 2024 was a gain of USD 67m on the sale of our investment in an associate.
Equities
Global Markets Equities revenues increased by USD 1,059m, or 19%, to USD 6,647m, mainly driven by higher revenues
in Prime Brokerage, Cash Equities and Equity Derivatives. Included in 2024 was a gain of USD 67m on the sale of our
investment in an associate.
Foreign Exchange, Rates and Credit
Global Markets Foreign Exchange, Rates and Credit revenues increased by USD 588m, or 31%, to USD 2,494m, mainly
driven by increases in Foreign Exchange revenues and included a gain of USD 102m on a strategic investment.
Credit loss expense / release
Net credit loss expenses were USD 133m, mainly reflecting net expenses on credit-impaired positions, compared with
net credit loss expenses of USD 97m in 2024.
Operating expenses
Operating expenses increased by USD 453m, or 5%, to USD 9,387m and included a USD 254m decrease in integration-
related expenses. Excluding integration-related expenses of USD 463m, underlying operating expenses were
USD 8,924m, an increase of 9%, mainly due to higher personnel expenses and adverse foreign exchange effects.
Return on attributed equity
Return on attributed equity was 15.3%, compared with 11.2% in 2024. The underlying return on attributed equity was
14.8%, compared with 9.6% in 2024.
Cost / income ratio
The cost / income ratio decreased to 76.1% from 81.6%, with a decrease on an underlying basis to 75.8% from 82.5%,
as increases in total revenues and underlying total revenues, respectively, more than offset increases in operating expenses
and underlying operating expenses.
Annual Report 2025 |
Financial and operating performance | Non-core and Legacy 83
Non-core and Legacy
Non-core and Legacy
As of or for the year ended
% change from
USD m, except where indicated
31.12.25
31.12.24
31.12.24
Results
Total revenues
154
1,605
(90)
Credit loss expense / (release)
(1)
69
Operating expenses
1,353
3,512
(61)
Operating profit / (loss) before tax
(1,199)
(1,976)
(39)
Underlying results
Total revenues as reported
154
1,605
(90)
of which: other integration items
1
4
Total revenues (underlying)
2
150
1,605
(91)
Credit loss expense / (release)
(1)
69
Operating expenses as reported
1,353
3,512
(61)
of which: integration-related expenses
2
882
1,154
(24)
Operating expenses (underlying)
2
472
2,359
(80)
of which: net expenses / (releases) for litigation, regulatory and similar matters
(833)
(300)
178
Operating profit / (loss) before tax as reported
(1,199)
(1,976)
(39)
Operating profit / (loss) before tax (underlying)
2
(321)
(822)
(61)
Performance measures and other information
Average attributed equity (USD bn)
3
5.4
9.5
(43)
Risk-weighted assets (USD bn)
28.8
41.4
(30)
Leverage ratio denominator (USD bn)
19.1
53.5
(64)
1 Includes temporary and incremental items directly related to the integration. 2 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. Each alternative
performance measure (APM) that qualifies as a non-GAAP measure as defined by US Securities and Exchange Commission (SEC) regulations is designated as such in the table of APMs in the appendix to this report.
For more information about underlying results, refer to the “Group performance” section of this report. 3 Refer to the “Capital management” section of this report for more information about the equity attribution
framework.
Composition of Non-core and Legacy
Total assets
RWA
LRD
31.12.25
31.12.24
31.12.25
31.12.24
31.12.25
31.12.24
Exposure category
Equities
Macro
Loans
Securitized products
Credit
High-quality liquid assets
Operational risk
Other
Total
2025 compared with 2024
Results
Loss before tax was USD 1,199m, compared with a loss before tax of USD 1,976m. Underlying loss before tax was
USD 321m, after excluding from operating expenses USD 882m of integration-related expenses and excluding from total
revenues USD 4m of other integration items, compared with an underlying loss before tax of USD 822m.
Annual Report 2025 |
Financial and operating performance | Non-core and Legacy 84
Total revenues
Total revenues were USD 154m, a decrease of USD 1,451m, or 90%, mainly reflecting lower net gains from position
exits and lower net interest income from securitized product and credit portfolios, partly offset by lower liquidity and
funding costs, as a result of the smaller portfolio. Total revenues in 2025 included a gain of USD 97m from the sale of
Select Portfolio Servicing, the US mortgage servicing business of Credit Suisse. Total revenues in 2024 included a
USD 67m gain from the sale of our investment in an associate, as well as a net gain of USD 272m, after accounting for
the purchase price allocation adjustments recorded at the closing of the acquisition of the Credit Suisse Group, from the
sale of assets from the former Credit Suisse securitized products group to Apollo Management Holdings and certain other
entities.
Credit loss expense / release
Net credit loss releases were USD 1m, compared with net credit loss expenses of USD 69m in 2024.
Operating expenses
Operating expenses were USD 1,353m, a decrease of USD 2,159m, or 61%, and included USD 833m of net releases in
provisions and acquisition-related contingent liabilities resulting from litigation, regulatory and similar matters, primarily
due to USD 673m of net releases in the third quarter of 2025 related to the completion of obligations under Credit
Suisse’s residential mortgage-backed securities settlement with the US Department of Justice and a USD 427m net release
recorded in the second quarter of 2025 related to the resolution of a legacy Credit Suisse cross-border matter, partly
offset by expenses related to increases in other litigation provisions. The decrease also reflected lower technology costs,
premises and facilities costs, personnel expenses, and risk management costs and included a USD 272m decrease in
integration-related expenses. Excluding integration-related expenses of USD 882m, underlying operating expenses were
USD 472m, a decrease of 80%.
›
Refer to “Note 17 Provisions and contingent liabilities” in the “Consolidated financial statements” section of this report for more
information about litigation, regulatory and similar matters
Risk-weighted assets and leverage ratio denominator
Risk-weighted assets (RWA) decreased by USD 12.6bn to USD 28.8bn, and the leverage ratio denominator (the LRD)
decreased by USD 34.4bn to USD 19.1bn. The active unwinding of Non-core and Legacy assets resulted in a decrease in
RWA, mainly related to the securitized product, macro and loan portfolios, and a decrease in the LRD, mainly driven by
reductions in high-quality liquid assets, which decreased by USD 16.6bn, primarily as a result of a reduction in the overall
Non-core and Legacy balance sheet, as well as reductions in the macro, securitized product and loan portfolios.
Annual Report 2025 |
Financial and operating performance | Group Items 85
Group Items
Group Items
As of or for the year ended
% change from
USD m
31.12.25
31.12.24
31.12.24
Results
Total revenues
(1,190)
(975)
22
Credit loss expense / (release)
2
(2)
Operating expenses
(2)
(220)
(99)
Operating profit / (loss) before tax
(1,190)
(752)
58
Underlying results
Total revenues as reported
(1,190)
(975)
22
of which: PPA effects and other integration items
1
(323)
2
(41)
681
Total revenues (underlying)
3
(867)
(933)
(7)
Credit loss expense / (release)
2
(2)
Operating expenses as reported
(2)
(220)
(99)
of which: integration-related expenses
3
53
(12)
Operating expenses (underlying)
3
(56)
(208)
(73)
of which: net expenses / (releases) for litigation, regulatory and similar matters
75
9
704
Operating profit / (loss) before tax as reported
(1,190)
(752)
58
Operating profit / (loss) before tax (underlying)
3
(813)
(723)
13
1 Includes accretion of PPA adjustments on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration. 2 Includes a USD 457m net loss from the
repurchase of legacy Credit Suisse debt instruments, as the repurchase price exceeded the amortized-cost carrying value (the net loss reflects a loss of USD 885m before PPA adjustments, partly offset by a USD 427m
gain from the release of PPA adjustments). 3 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. Each alternative performance measure (APM) that
qualifies as a non-GAAP measure as defined by US Securities and Exchange Commission (SEC) regulations is designated as such in the table of APMs in the appendix to this report. For more information about
underlying results, refer to the “Group performance” section of this report.
2025 compared with 2024
Results
Loss before tax was USD 1,190m, mainly driven by a net loss of USD 457m from the repurchase of legacy Credit Suisse
debt instruments (which included the release of purchase price allocation (PPA) adjustments of USD 427m), deferred tax
asset funding costs, mark-to-market losses from Group hedging and own debt, including hedge accounting
ineffectiveness, and an increase in provisions for litigation, regulatory and similar matters. The USD 438m increase in loss
before tax between the periods was largely due to the aforementioned drivers, except for deferred tax asset funding
costs, which were broadly stable.
Underlying loss before tax was USD 813m, after excluding from total revenues negative USD 323m of PPA effects and
other integration items, which included the aforementioned net loss of USD 457m, and also excluding from operating
expenses USD 53m of integration-related expenses. This compared with an underlying loss before tax of USD 723m in
2024.
Income from Group hedging and own debt, including hedge accounting ineffectiveness, was net negative USD 101m,
compared with net negative income of USD 175m in 2024. The losses in 2025 were driven by mark-to-market effects on
own credit and portfolio-level economic hedges.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet 86
Risk, capital, liquidity and
funding, and balance sheet
Management report
Audited information according to IFRS 7 and IAS 1
Risk and capital disclosures provided in line with the requirements of IFRS 7,
Financial Instruments: Disclosures,
and IAS 1,
Presentation of
Financial Statements,
form part of the financial statements included in the “Consolidated financial
statements” section of this report and are audited by the independent registered public accounting firm Ernst & Young
Ltd, Basel. This information is marked as “Audited” within this section of the report.
Signposts
The
Audited |
signpost that is displayed at the beginning of a section, table or chart indicates that those items have been audited. A triangle symbol –
indicates the end of the audited section, table or chart.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet 87
Table of contents
88
Risk management and control
88
Top and emerging risks
89
Risk identification
92
Risk oversight
94
Risk appetite framework
96
Risk measurement
99
Credit risk
111
Market risk
118
Country risk
120
Sustainability and climate risk
126
Non-financial risk
130
Model risk
131
Capital management
131
Capital management objectives, planning and activities
132
Swiss SRB total loss-absorbing capacity framework
134
Total loss-absorbing capacity
138
Risk-weighted assets
140
Leverage ratio denominator
141
Equity attribution
142
Liquidity and funding management
142
Strategy, objectives and governance
142
Liquidity and funding stress testing
143
Management of liquidity and funding risk
144
Liquidity coverage ratio
144
Too-big-to-fail liquidity requirements
145
Net stable funding ratio
145
Balance sheet and off-balance sheet
145
Balance sheet
148
Off-balance sheet
150
Cash flows
151
Currency management
152
UBS shares
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 88
Risk management and control
In the initial phases of the integration of Credit Suisse, the risk management focus was on the alignment of governance
structures and frameworks, including the harmonization of Credit Suisse policies with UBS standards. In 2025, with the
exposure reductions in Non-core and Legacy and the significant achievements made with respect to client account
migrations (as part of the overall integration), we have substantially reduced the proportion of risks managed on legacy
Credit Suisse platforms. We also transitioned to a single model risk management framework.
Top and emerging risks
An overview of our top and emerging risks, from a risk management perspective, is disclosed below. Investors should
also carefully review all information set out in the “Risk factors” section of this report, where we discuss these and other
material risks that could have an effect on our ability to execute our strategy and may affect our business activities,
financial condition, results of operations and business prospects.
Top and emerging risk
Description
Geopolitical uncertainty
We remain watchful of a broad range of geopolitical developments and political changes in a number of countries,
including intensifying rivalries among major powers, the re-emergence of regional spheres of influence and continued
stress on multi-lateral economic and security institutions. Global trade relations remain fragile, as tariff-related policies
persist. In addition, structural challenges in the US–China relationship remain significant. In parallel, the reshaping of
international trade relationships is driving significant changes in global supply chains, adding further uncertainty and
potential disruption to cross-border trade flows.
Macroeconomic risks
We are exposed to a number of macroeconomic risks, as well as general market conditions. As noted in “Market,
credit and macroeconomic risks” in the “Risk factors” section of this report, these external pressures may have a
significant adverse effect on our business activities and related financial results, primarily through reduced margins and
revenues, asset impairments and other valuation adjustments. Accordingly, these macroeconomic factors are
considered in the development of stress-testing scenarios for our ongoing risk management activities.
Inflation has remained broadly stable in major Western economies, though there are still concerns that inflation could
return, including upward pressure on interest rates. Central banks’ monetary policies therefore continue to be a key
driver of financial market conditions. In parallel, concerns around developed market sovereign debt sustainability have
heightened, with fiscal deterioration in several advanced economies contributing to volatility in long-term bond yields.
We are closely monitoring foreign exchange volatility and currency valuations, including the weakening of the US
dollar and the appreciation of the Swiss franc against other major currencies.
Elevated valuations across various assets classes, alongside accelerated capital flows into artificial intelligence (AI)- and
technology-related equities, present the risk of a potential bubble, particularly if adoption trends in these areas slow or
macroeconomic conditions weaken.
Non-bank financial institutions
and private markets
Non-bank financial institutions (NBFIs) and private markets, in particular, have come further into focus in 2025,
expanding their role in credit provision, liquidity transformation and risk transfer across the financial system. We
remain watchful of the growing systemic and economic relevance of this sector, especially as its interconnectedness
with the financial sector has further deepened through funding relationships, derivatives exposures and the collateral
channel, heightening the potential for spillovers under stress.
Limited transparency around leverage, asset valuations and liquidity profiles may further obscure underlying risk
dynamics and complicate a comprehensive assessment of sector-wide vulnerabilities. These developments reinforce the
importance of disciplined monitoring and proactive risk management of exposures and concentrations, and the
channels through which stress in NBFIs or private markets could transmit to the broader financial system.
Regulatory and legal risks
We are exposed to substantial changes in the regulation of our businesses that could have a material adverse effect on
our business, as discussed in the “Regulatory and legal developments” section of this report and in “Regulatory and
legal risks” in the “Risk factors” section of this report.
As a global financial services firm, we are subject to many different legal, tax and regulatory regimes and extensive
regulatory oversight. We are exposed to the risk that regulatory requirements across different jurisdictions impose
inconsistent or conflicting requirements, or may do so in the future. We are also exposed to significant liability risk, and
we are subject to various claims, disputes, legal proceedings and government investigations, as noted in “Regulatory
and legal risks” in the “Risk factors” section of this report. Information about litigation, regulatory and similar matters
we consider significant is disclosed in “Note 17 Provisions and contingent liabilities” in the “Consolidated financial
statements” section of this report.
Cyber risks, third-party risks and
operational resilience
Global geopolitical trends increase the likelihood of external state-driven cyber activity. Combined with a broader shift
toward more sophisticated forms of ransomware and other cyber threats, there is a risk of operational disruption to
business activities at our locations and those of third-party suppliers, including potential corruption or loss of data. At
the same time, the dynamic and material nature of recent geopolitical and environmental events, combined with the
operational complexity of all our businesses, leads to the risk of disruption through operational resilience scenarios,
such as system failures or loss of third-party services.
›
Refer to “Non-financial risk” and “Cybersecurity and information security” in this section for more information
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 89
Top and emerging risk
Description
Conduct risks
Conduct risks are inherent in our businesses. Achieving fair outcomes for our clients, upholding market integrity and
cultivating the highest standards of employee conduct are of critical importance to us. Management of conduct risks is
an integral part of our risk management framework.
›
Refer to “Non-financial risk” in this section and “Strategy, management and operational risks” in the “Risk factors”
section of this report for more information
Financial crime risks
Financial crime (including money laundering, terrorist financing, sanctions violations, fraud, bribery, and corruption)
presents significant risk and is subject to heightened regulatory expectations and attention. Emerging technologies and
changing geopolitical risks further increase the complexity of identifying and preventing financial crime, in particular
managing the continuously evolving sanctions environment, and require investment in people, systems and
technology.
›
Refer to “Non-financial risk” in this section for more information
Sustainability and climate risks
Sustainability and climate risks continue to be in focus for UBS, for regulators and for stakeholders. To address these
emerging risks, UBS has further enhanced its transition and physical risk methodologies, integrated climate-related
financial risks into key risk frameworks and updated its sustainability and climate risk policy to align with the
requirements of FINMA Circular 2026/1 “Nature-related financial risks”.
›
Refer to “Sustainability and climate risk” in this section for more information
›
Refer to “Appendix 1 – Governance” to the UBS Group Sustainability Report 2025, available under “Annual reporting”
at ubs.com/investors
, for a full description of our sustainability and climate risk policy framework
Regulatory requirements and industry guidelines are emerging simultaneously in various jurisdictions, leading to an
increased risk of divergence, which in turn increases the risk that UBS may not comply with all relevant regulations.
New technologies
New risks related to client demand for distributed ledger technology, blockchain-based assets and virtual currencies
continue to emerge. Our exposure to these risks is still relatively limited, and relevant control frameworks are
continuously being enhanced and implemented. Technological developments in the areas of AI and digitalization will
have a significant impact in 2026 and create not only opportunities but also heightened operational risks.
With the ongoing digitalization and the adoption of new technologies, we continue to emphasize the responsible use
of AI and ethical data practices, in line with evolving regulatory requirements and client expectations. With rapidly
advancing technology and changing communication preferences, there is heightened focus on electronic
communications, including the use of approved channels and appropriate recordkeeping.
›
Refer to “Non-financial risk” in this section for more information
Risk identification
Risk identification at UBS is the process of systematically identifying, assessing and cataloging risks across all business
activities and risk categories. It is a fundamental component of our risk management approach, helping to ensure that
the firm maintains a comprehensive understanding of its risk exposure. Our structured risk identification framework
integrates both bottom-up and top-down risk identification approaches and enhances our ability to capture, measure,
monitor and control risks, in alignment with global regulatory expectations. The process involves subject matter experts
from both the first and second lines of defense, including senior management across the organization, and is conducted
periodically, complementing day-to-day risk identification and risk management frameworks. By anchoring to a common
risk taxonomy and risk materiality approach, we aim to ensure consistent categorization and prioritization of risks across
business divisions and significant Group entities. Additionally, documenting root-cause drivers and early-warning signs
strengthens our ability to monitor emerging risks.
Various review and approval steps are embedded throughout the risk identification process to maximize risk transparency,
including presentation to senior governance bodies for each business division, applicable significant Group entities and
at the Group level. The output of the process helps ensure that UBS stress-testing exercises take into account the firm’s
key vulnerabilities, while also supporting broader risk management activity.
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Risk, capital, liquidity and funding, and balance sheet | Risk management and control 90
Risk categories
We categorize our risk exposures as outlined in the table below. Our risk appetite framework is designed to capture all
risk categories.
›
Refer to “Risk appetite framework” in this section for more information
Risk
managed by
Independent
oversight by
Financial risks
Audited |
Credit risk:
the risk of loss resulting from the failure of a client or counterparty (including an issuer) to meet its
contractual obligations toward UBS. This includes loan underwriting risk and settlement risk.
Loan underwriting risk:
for further distribution.
Settlement risk:
but does not receive an expected value in return from the counterparty.
›
Refer to “Credit risk” in this section for more information
Business
divisions
Risk Control
Audited |
Market risk:
taken as part of trading activities but can also arise from non-trading activities. Market variables include observable
factors, such as interest rates, foreign exchange rates, equity prices, credit spreads and commodity (including precious
metal) prices, as well as variables that may be unobservable or only indirectly observable, such as volatilities and
correlations. Market risk also includes issuer risk.
Issuer risk:
derivatives referencing the issuer was subject to a credit-related event.
›
Refer to “Market risk” in this section for more information
Business
divisions and
Group
Treasury
Risk Control
Investment risk:
returns compared with expected returns).
›
Refer to “Market risk” in this section for more information
Business
divisions and
Group
Treasury
Risk Control
Treasury risk:
structural exposures.
Audited |
Liquidity risk:
Audited |
Funding risk:
strategy.
›
Refer to the “Liquidity and funding management” section of this report for more information
Interest rate risk in the banking book:
the risk to the firm’s capital and earnings arising from the adverse effects of
interest rate movements on the firm’s banking book positions. The risk is transferred from the originating business
divisions, i.e. Global Wealth Management and Personal & Corporate Banking, to Group Treasury to risk-manage this
centrally and benefit from Group-wide netting, while leaving the business divisions with margin management.
›
Refer to “Market risk” in this section for more information
Structural foreign exchange risk:
changes in foreign exchange rates.
Group
Treasury
Risk Control
Pension risk:
fair value of assets held in defined benefit pension funds and / or changes in the value of defined benefit pension
obligations due to changes in actuarial assumptions (e.g. discount rate, life expectancy and rate of pension increase)
and / or changes to plan designs.
›
Refer to “Market risk” in this section for more information
Group
Treasury and
Human
Resources
Risk Control
and Finance
Country risk:
transfer risk, which involves a country’s authorities preventing or restricting the payment of an obligation, as well as
systemic risk events arising from country-specific political or macroeconomic developments.
›
Refer to “Country risk” in this section for more information
Business
divisions
Risk Control
Sustainability and climate risk:
rights and other relevant environmental and social matters. Sustainability and climate risks may materialize as credit,
market, liquidity, business or non-financial risks for UBS, potentially leading to adverse financial, liability or reputational
impacts. These risks extend to the value of investments and may also affect the value of collateral (e.g. real estate).
Sustainability and climate risk includes transition risk and physical risk.
Transition risk:
decarbonization, for example due to changes in policy, case law, technology or in the behavior of market participants.
This may contribute to a structural change across economies and consequently affect banks and the stability of the
wider financial sector.
Physical risk:
and chronic risks that arise from an incrementally changing climate. Climate-driven physical risks may contribute to
structural changes across economies and consequently affect banks and the stability of the wider financial sector.
›
Refer to “Sustainability and climate risk” in this section for more information
Business
divisions
Risk Control
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Risk, capital, liquidity and funding, and balance sheet | Risk management and control 91
Risk
managed by
Independent
oversight by
Financial risks (continued)
Capital risk:
the risk that UBS does not maintain adequate capital to support its activities and maintain the minimum
capital requirements.
›
Refer to the “Capital management” section of this report for more information
Group
Treasury
Risk Control
and Finance
Business risk:
the extent they are not offset by a decrease in expenses. For example, changes in the competitive landscape, client
behavior or market conditions can have a negative impact.
Business
divisions
Risk Control
and Finance
Strategic risk:
the idiosyncratic risk arising from the impact of strategic decisions on UBS, which can be driven by
exogenous factors, such as changes in the industry or regulatory environments, or by endogenous factors, such as
constraints related to or execution of strategic decisions.
›
Refer to “Strategy, management and operational risks” in the “Risk factors” section of this report for more information
Business
divisions and
Group
functions
Finance, Chief
Strategy Office
and Risk
Control
Non-financial risks
Compliance risk:
firm’s Code of Conduct and Ethics.
›
Refer to “Non-financial risk” in this section for more information
Business
divisions
GCORC
Employment risk:
governing employment practices, health and well-being, discrimination, performance and compensation, and
employee-related taxes and benefits. Also includes risks arising from loss of key staff, excessive turnover, inadequate
resourcing and failure to implement comprehensive succession plans for key positions, as well as those arising from
failure to perform an appropriate vetting process including stringent due diligence and background checks, in order to
ensure on-boarded staff are fit and proper.
Human
Resources
Conduct risk:
undermines the integrity of the financial system or impairs effective competition to the detriment of consumers.
GCORC
Market conduct risk:
meet legal / regulatory requirements and expectations governing activities undertaken on or through a market or in
pricing- / transaction-related bilateral interactions between counterparties.
GCORC
Client suitability risk:
profile, including their investment objectives, financial situation, time horizon, risk tolerance, and knowledge and
experience, resulting in the client receiving a product or service that is not suitable for their individual circumstances.
GCORC
Financial crime risk:
sanctions or embargo violations, internal and external fraud, bribery, and corruption).
›
Refer to “Non-financial risk” in this section for more information
Business
divisions
GCORC
Operational risk:
causes (deliberate, accidental or natural).
›
Refer to “Non-financial risk” in this section for more information
Business
divisions
GCORC
Cybersecurity and information-security risk:
technology, or human error materially compromises the confidentiality, integrity or availability of UBS’s data, systems
or services.
›
Refer to “Non-financial risk” in this section for more information
Business
divisions and
Group
Technology
GCORC
Third-party risk:
perspective) and their subcontractors, including inadequate oversight or non-compliance with policy or regulatory
requirements that may lead to operational disruption, data compromise or reputational harm.
›
Refer to “Non-financial risk” in this section for more information
Business
divisions and
Group
functions
GCORC
Model risk:
business decisions, or reputational damage) resulting from decisions based on incorrect, inadequate or misused model
outputs and reports.
›
Refer to “Model risk” in this section for more information
Business
divisions and
Group
functions
Risk Control
Legal risk:
breach of contractual or other legal obligations; (iii) an inability or failure to enforce or protect contractual rights or non-
contractual rights sufficiently to protect UBS’s interests; and (iv) being party to a claim or investigated by a regulator or
public authority in respect of any of the above (and the risk of loss of attorney–client privilege in the context of any such
claim).
Business
divisions
Legal
Reputational risk:
view of clients, shareholders, regulators, employees or society, which may lead to potential financial loss and / or loss of
market share.
›
Refer to “Non-financial risk” in this section for more information
All business
divisions and
Group
functions
All control
functions
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Overview of risks arising from our business activities
Key risks by business division and Group functions
Business divisions and Group functions
Key financial risks arising from business activities
Global Wealth Management
Credit risk
other real assets (such as ships and aircraft), private market and hedge fund interest, and investors’ uncalled
capital commitments, as well as from collateralized clients’ derivatives trading. Also includes unsecured
lending, i.e. recourse-based lending and cash-flow-based corporate lending to entities owned and controlled
by our Global Wealth Management clients.
Limited contribution to
market risk
rate risk in the banking book related to Global Wealth Management is transferred to and managed by Group
Treasury.
Personal & Corporate Banking
Credit risk
lending, commodity trade finance, trade and export finance, consumer finance, and lending to banks and
other regulated clients, as well as a small amount of derivatives trading activity.
Minimal contribution to
market risk
. Interest rate risk in the banking book related to Personal & Corporate
Banking is transferred to and managed by Group Treasury.
Asset Management
Limited exposure to
credit risk
market risk
investments in funds managed by Asset Management.
Indirect exposure to credit risk and market risk from client assets invested in Asset Management funds, which
can adversely impact management and performance fees and cause heightened fund outflows and liquidity
risk.
Investment Bank
Credit risk
credit risk from derivatives trading and securities financing.
Market risk
Non-core and Legacy
Credit risk
with residential and commercial real estate collateral and a small number of trades remaining from a
corporate loan portfolio.
Market risk
rate and equity derivative transactions.
Group functions
Credit risk
,
market risk
treasury risk
balance sheet (asset and liability management), capital, profit or loss, and liquidity and funding.
All the business divisions and Group functions are exposed to
country risk
,
sustainability and climate risk
non-financial risk
.
Non-financial risk is an
inevitable consequence of being an operating firm and can arise as a result of our past and current business activities.
Risk oversight
Risk governance
Our risk governance framework operates along three lines of defense.
Our first line of defense, business and Group functions management, owns its risks and is accountable for maintaining
effective processes and systems to manage them in compliance with applicable laws, rules and regulations, as well as
internal standards, including identifying control weaknesses and inadequate processes.
Our second line of defense, control functions, is separate from the business and reports directly to the Group Chief
Executive Officer (the Group CEO). Control functions provide independent oversight, challenge financial and non-financial
risks arising from the firm’s business activities, and establish independent frameworks for risk assessment, measurement,
aggregation, control and reporting, protecting against non-compliance with applicable laws, rules and regulations.
Our third line of defense, Group Internal Audit, reports to the Chairman and to the Audit Committee. This function
assesses the design and operating effectiveness and sustainability of processes to define risk appetite, governance, risk
management, internal controls, remediation activities and processes to comply with legal and regulatory requirements
and internal governance standards.
The key roles and responsibilities for risk management and control are shown in the chart below and described further
below.
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Audited |
The Board of Directors (the BoD) approves the risk management and control framework of the Group, including
the Group and business division overall risk appetite. The BoD is supported by its Risk Committee, which monitors and
oversees the Group’s risk profile and the implementation of the risk framework approved by the BoD and approves the
Group’s risk appetite methodology.
›
Refer to the “Corporate governance” section of this report for more information about the responsibilit ies of the Risk Committee
and other BoD committees
The Group Executive Board (the GEB) has overall responsibility for establishing and implementing a risk management and
control framework in the Group, managing the risk profile of the Group as a whole.
The Group CEO has responsibility and accountability for the management and performance of the Group, has risk
authority over transactions, positions and exposures, and allocates risk authority delegated by the BoD to the business
divisions and Group functions.
The business division Presidents and Group function heads are responsible for the operation and management of their
business divisions and Group functions, including controlling the risk appetite of the business divisions.
The regional Presidents ensure cross-divisional collaboration in their regions and are mandated to inform the GEB about
any regional activities and issues that may give rise to actual or potentially material regulatory or reputational concerns.
The Group Chief Risk Officer (the Group CRO) is responsible for developing the Group’s risk management and control
framework (including risk principles and risk appetite) for credit, market, country, treasury, model and sustainability and
climate risks. This includes risk measurement and aggregation, portfolio controls, risk reporting, and taking decisions on
transactions, positions, exposures, portfolio limits and allowances in accordance with the risk control authorities
delegated to the Group CRO.
The Group Chief Compliance and Operational Risk Control Officer is responsible for developing the Group’s risk
management and control framework (including taxonomies and risk appetite) for non-financial risks. This includes
implementing independent control frameworks for compliance and conduct, financial crime, and operational risks. The
Group Chief Compliance and Operational Risk Control Officer is also responsible for managing the Group’s new business
governance process and governing the Group’s internal and external investigations portfolio.
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The Group Chief Financial Officer (the Group CFO) is responsible for transparency in assessing the financial performance
of the Group and the business divisions and for managing the Group’s financial accounting, controlling, forecasting,
planning and reporting. The Group CFO also ensures asset and liability management by balancing consumption of the
Group’s financial resources. The Group CFO is, in addition, responsible for developing the Group’s governmental policy
and regulatory approach, coordinating external governmental and regulatory relations, and overseeing important
regulatory matters.
The Group Chief Operating Officer (the Group COO) develops and coordinates the Group-wide operational integration
and alignment of the business divisions in support of the implementation of the Group’s strategy and is responsible for
driving digitalization, delivering technology services, infrastructure and operations, including cybersecurity and
information security, and providing Group-wide data governance. The Group COO is also responsible for coordinating
and supporting the Group’s efforts to deliver on its Group-wide sustainability and impact ambitions.
The Group General Counsel manages the Group’s legal affairs, including effective and timely assessment of legal matters
impacting the Group or its businesses, and managing and reporting all litigation matters.
The Head Group Human Resources and Corporate Services
defines and executes a human resources strategy aligned to UBS’s
objectives, supplies real estate infrastructure and controls supply and demand management activities
.
Some of these roles and responsibilities are replicated on the level of the business divisions, regions and / or significant
entities of the Group. Designated entity risk officers oversee and control financial and non-financial risks for significant
entities of UBS as part of the entity control framework, which complements the Group’s risk management and control
framework.
Internal risk reporting
Comprehensive and transparent reporting of risks is central to our risk governance framework’s control and oversight
responsibilities and required by our risk management and control principles. Accordingly, risks are reported at a frequency
and level of detail commensurate with the extent and variability of the risk and the needs of the various governance
bodies, regulators and risk authority holders. Data used to produce risk reports is generally aligned with that used by
both the business divisions and control functions for managing and monitoring risks. This alignment ensures consistency
in risk assessment and decision-making across the organization.
The Group Risk Report provides a detailed qualitative and quantitative monthly overview of developments in financial
and non-financial risks at the firm-wide level, including the status of our risk appetite objectives and the results of firm-
wide stress testing. The Group Risk Report is distributed internally to the BoD, the GEB and senior members of Risk
Control, Group Internal Audit, Finance and Legal. Risk reports are also produced covering significant Group entities and
branches (i.e. entities and branches subject to enhanced standards of corporate governance).
Monthly business division and Group Items risk reports are supplemented with daily or weekly reports, at various levels
of granularity, covering market, credit and treasury risks to enable risk officers and senior management to monitor and
control the Group’s risk profile.
Our internal risk reporting covers financial and non-financial risks and is supported by risk data and measurement systems
that are used for risk management and monitoring purposes and also for external disclosure and regulatory reporting.
Dedicated units within Risk Control assume responsibility for measurement, analysis and reporting of risk and for
overseeing the quality and integrity of risk-related data. Our risk data and measurement systems are subject to periodic
review by Group Internal Audit, which applies a risk-based audit approach.
Risk appetite framework
Our risk appetite is defined at the aggregate Group level and reflects the risk that we are willing to accept or wish to
avoid. It is set via complementary qualitative and quantitative risk appetite statements defined at a Group-wide level and
is embedded throughout our business divisions and legal entities by Group, business division and legal entity policies,
limits and authorities. Our risk appetite is reviewed and recalibrated annually, with the aim of ensuring that risk-taking
at every level of the organization is in line with our strategic priorities, our capital and liquidity plans, our
Pillars, Principles
and Behaviors
, and minimum regulatory requirements. It is governed by a single overarching policy and conforms to the
Financial Stability Board’s Principles for an Effective Risk Appetite Framework. The “Risk appetite framework” chart below
shows the key elements of the framework, which is described in detail in this section.
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Risk principles and risk culture
Qualitative risk appetite statements aim to ensure we maintain the desired risk culture. Maintaining a strong risk culture
is a prerequisite for success in today’s highly complex operating environment and a source of sustainable competitive
advantage.
Our risk appetite framework combines all the important elements of our risk culture, expressed in our
Pillars, Principles
and Behaviors
, our risk management and control principles, our Code of Conduct and Ethics, and our Total Reward
Principles. They help to create a solid foundation for promoting risk awareness, leading to appropriate risk-taking and
the establishing of robust risk management and control processes.
›
Refer to “Employees” in the “Our stakeholders” section of this report for more information about our Pillars, Principles and
Behaviors
›
Refer to the Code of Conduct and Ethics of UBS, available at
ubs.com/code
, for more information
Risk management and control principles
Protection of financial strength
Protecting our financial strength by controlling our risk exposure and avoiding potential risk concentrations at
individual exposure levels, at specific portfolio levels and at an aggregate firm-wide level across all risk types.
Protection of reputation
Protecting our reputation through a sound risk culture characterized by a holistic and integrated view of risk,
performance and reward, and through full compliance with our standards and principles, particularly our Code
of Conduct and Ethics.
Business management accountability
Maintaining management accountability, whereby business management owns all risks assumed throughout the
Group and is responsible for the continuous and active management of all risk exposures to provide for
balanced risk and return.
Independent controls
Independent control functions that monitor the effectiveness of the businesses’ risk management and oversee
risk-taking activities.
Risk disclosure
Disclosure of risks to senior management, the BoD, investors, regulators, credit rating agencies and other
stakeholders with an appropriate level of comprehensiveness and transparency.
Quantitative risk appetite objectives
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We use both scenario-based stress tests and economic capital risk measurement techniques to stress test our business
activities. The quantitative risk appetite objectives are supported by a comprehensive suite of risk limits set at a portfolio
level to monitor specific portfolios and to identify potential risk concentrations. The portfolio limits and associated
approval authorities are subject to periodic reviews and changes, particularly in the context of our annual business
planning process. The status of our quantitative risk appetite objectives and portfolio limits is evaluated each month and
reported to the BoD and the GEB.
›
Refer to “Risk measurement” in this section for more information about stress testing and our economic capital measures
Quantitative risk appetite objectives
Minimum capital objectives
CET1 capital is sufficient to meet minimum RWA-based capital requirements even if a severe stress event were
to occur.
Minimum leverage ratio objectives
CET1 capital is sufficient to meet minimum leverage-ratio-based capital requirements even if a severe stress
event were to occur.
Solvency objectives
CET1 capital plus contingent capital is sufficient to ensure that the probability of loss for the firm’s debt holders
is consistent with the firm’s target credit rating.
Earnings objectives
Losses do not exceed average historical earnings even if a severe stress event were to occur.
Liquidity objectives
Ensure that the firm has sufficient liquidity to survive a severe three-month idiosyncratic and market-wide
liquidity stress event without government support, allowing for discrete management actions.
Funding objectives
Ensure that the firm has sufficient long-term funding to maintain franchise assets at a constant level under
stressed market conditions for up to one year without government support, allowing for discrete management
actions.
These objectives are complemented by a standardized set of quantitative non-financial risk appetite objectives, expressed
as percentages of the monetary impacts from non-financial risk events relative to total revenue and operational risk
regulatory capital, respectively. If these percentages are exceeded, a review of key loss drivers and required mitigation
measures is triggered.
Risk appetite statements at the business-division level are derived from the firm-wide risk appetite. They may also include
business-division-specific strategic goals related to that business division’s activities and risks. Risk appetite statements
are also set for certain legal entities, which must be consistent with the firm-wide risk appetite framework and approved
in accordance with Group and legal entity regulations. Differences may exist that reflect the specific nature, size,
complexity and regulations applicable to the relevant legal entity.
Portfolio and position limits
We maintain a comprehensive set of risk limits across our major risk portfolios. These portfolio limits are set based on
our risk appetite and periodically reviewed and adjusted as part of the business planning process.
Firm-wide stress and statistical metrics are complemented by more granular portfolio and position limits, triggers and
indicators. Combining these measures provides a comprehensive framework for control of the key risks of our business
divisions, as well as significant legal entities.
We apply limits to a variety of exposures at the portfolio level, using statistical and stress-based measures, such as value-
at-risk, liquidity-adjusted stress, loan underwriting limits, economic value sensitivity and portfolio default simulations for
loan books. These are complemented with a set of controls for net interest income sensitivity, mark-to-market losses on
available-for-sale portfolios, and the effect of foreign exchange movements on capital and capital ratios.
Portfolio measures are supplemented with counterparty- and position-level controls. Risk measures for position controls
are based on market risk sensitivities and counterparty-level credit risk exposures. Market risk sensitivities include
sensitivities to changes in general market risk factors (e.g. equity indices, foreign exchange rates and interest rates) and
sensitivities to issuer-specific factors (e.g. changes in an issuer’s credit spread or default risk). We monitor numerous
market and treasury risk controls on a daily basis. Counterparty measures capture the current and potential future
exposure to an individual counterparty, considering collateral and legally enforceable netting agreements.
›
Refer to
“
Credit risk
”
Risk measurement
Audited |
We apply a variety of methodologies and measurements to quantify the risks of our portfolios and potential risk
concentrations. Risks that are not fully reflected within standard measures are subject to additional controls, which may
include preapproval of specific transactions and the application of specific restrictions. Models to quantify risk are
generally developed by dedicated units within control functions and are subject to independent validation.
›
Refer to “Credit risk”, “Market risk” and “Non-financial risk” in this section for more information about model confirmation
procedures
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Stress testing
We perform stress testing to estimate losses that could result from extreme yet plausible macroeconomic and geopolitical
stress events to identify, better understand and manage our potential vulnerabilities and risk concentrations. Stress testing
has a key role in our limits framework at the firm-wide, business division, legal entity and portfolio levels. Stress test
results are regularly reported to the BoD and the GEB. We also provide detailed stress loss analyses to the Swiss Financial
Market Supervisory Authority (FINMA) and regulators of our legal entities in accordance with their requirements. As
described in “Risk appetite framework”, stress testing, along with economic capital measures, has a central role in our
risk appetite and business planning processes.
Our stress-testing framework has three pillars: (i) combined stress tests; (ii) an extensive set of portfolio- and risk-type-
specific stress tests; and (iii) reverse stress testing.
The combined stress-testing (CST) framework is scenario based and aims to quantify overall firm-wide impacts that could
result from various potential global systemic events. The framework captures all material risks, as covered in “Risk
categories”, to the extent the risk is consistent with the narrative and main assumptions of the framework.
Scenarios are forward looking and encompass macroeconomic and geopolitical stress events calibrated to different levels
of severity. In each scenario, we assume changes in a wide range of macroeconomic and market variables to stress the
key risk drivers of our portfolios. We also capture the business risk resulting from lower fee, interest and trading income
net of lower expenses. These effects are measured for all businesses and material risk types to calculate the aggregate
estimated effect of the given scenario on profit or loss, other comprehensive income, risk-weighted assets, the leverage
ratio denominator and, ultimately, capital and leverage ratios. The assumed changes in macroeconomic and market
variables are updated periodically to account for changes in the current and possible future market environment.
At least once a year, the Risk Committee approves the most relevant scenario, known as the binding scenario, for use as
the main scenario for regular CST reporting and for monitoring risk exposure against our minimum capital, earnings and
leverage ratio objectives in our risk appetite framework. In 2025, the binding scenario for CST was the internal
global
crisis scenario
. This scenario assumes a fall in global trade, which particularly hits China and leads to a hard landing.
Combined with political, solvency and liquidity concerns, this results in a sharp sell-off of emerging markets sovereign
debt and some emerging markets default. The macroeconomic and market impacts amplify concerns about peripheral
European sovereign debt, causing Greece and Cyprus to default.
As part of the CST framework, we routinely monitored the following three additional stress scenarios throughout 2025.
–
The
stagflationary geopolitical crisis scenario
fears of prolonged stagflation. Central banks signal a firm commitment to price stability and continue to tighten
monetary policy, triggering a broad rise in interest rates and impacting economic activity and asset values.
–
The
global depression scenario
concerns around emerging markets sovereign debt, causing several large emerging markets to default. Several
European economies also default, and some leave the Eurozone. A negative feedback loop between collapsing
demand, declining asset values and commodity prices, and disruption in the banking system leads to a deep and
prolonged recession across the globe.
–
The
US monetary crisis scenario
denominated assets, sparking an abrupt and substantial depreciation of the US dollar. The US economy is hit hard,
financial markets enter a period of high volatility and other industrialized countries replicate the cyclical pattern of the
US. Regional inflation trends diverge as the US experiences significant inflationary pressures while other developed
markets experience deflation.
From the beginning of 2026 the binding scenario for CST has changed to the global trade war scenario. This scenario
assumes heightened geopolitical tensions and explores tail risks concerning US protectionist policies and retaliation by
the US’s trading partners. US policies solidify Switzerland as a safe-haven country and the US dollar depreciates against
the Swiss franc. The scenario assumes that disruptions in global trade contribute to rising inflation and a large economic
contraction. Despite rising inflation, the Federal Reserve makes measured interest rate cuts, and other major central banks
in advanced economies follow the same course.
Portfolio-specific stress tests are measures tailored to the risks of specific portfolios. Our portfolio stress loss measures are
derived from data on past events, but also include forward-looking elements (e.g. we derive the expected market
movements in our liquidity-adjusted stress metric using a combination of historical market behavior, based on an analysis
of historical events, and forward-looking analysis, including consideration of defined scenarios that have never occurred).
Results of portfolio-specific stress tests may be subject to limits to explicitly control risk-taking or may be monitored
without limits to identify vulnerabilities.
Reverse stress testing starts from a defined stress outcome (e.g. a specified loss amount, reputational damage, a liquidity
shortfall or a breach of minimum capital ratios) and works backward to identify macroeconomic scenarios and / or
idiosyncratic events that could result in such an outcome. As such, reverse stress testing is intended to complement
scenario-based stress tests by assuming “what if” outcomes that could extend beyond the range normally considered,
and thereby potentially challenge assumptions regarding severity and plausibility.
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With regard to treasury risk, we routinely analyze the effect of movements in interest rates and changes in the structure
of yield curves. We also perform stress testing to determine the optimal asset and liability structure, enabling us to
maintain an appropriately balanced liquidity and funding position under various scenarios. These scenarios differ from
those outlined above, because they focus on specific situations that could generate liquidity and funding stress, as
opposed to the scenarios used in the CST framework, which focus on the effect on profit or loss and capital.
›
Refer to “Credit risk” and “Market risk” in this section for more information about stress loss measures
›
Refer to the “Capital management” and “Liquidity and funding management” sections of this report for more information about
stress testing
›
Refer to “Note 19 Expected credit loss measurement” in the “Consolidated financial statements” section of this report for more
information about scenarios used for expected credit loss measurement
Economic capital measures
We complement the scenario-based CST measures with economic capital stress measures to calculate and aggregate
risks using statistical techniques to derive stress events at chosen confidence levels.
This economic capital framework is used to derive a loss distribution, considering effects on both income and expenses,
based on the simulation of financial and economic risk factors in combination with the firm’s actual earnings and relevant
risk exposures. From the scenario-consistent loss distribution, we determine earnings-at-risk (EaR), measuring the
potential shortfall in earnings (i.e. the deviation from forecast earnings) at a 95% confidence level and evaluated over a
one-year horizon. EaR is used for the assessment of the earnings objectives in our risk appetite framework.
We extend the EaR measure, incorporating the effects of gains and losses recognized through other comprehensive
income, to derive a distribution of potential effects of stress events on common equity tier 1 capital. From this distribution,
we derive our capital-at-risk (CaR) buffer measure at a 95% confidence level to assess our capital and leverage ratio risk
appetite objectives, and we derive our CaR solvency measure at a 99.9% confidence level to assess our solvency risk
appetite objective.
We use the CaR solvency measure as a basis for deriving the contributions of the business divisions to risk-based capital
(RBC). RBC measures the potential capital impairment from an extreme stress event at a 99.9% confidence level.
Risk concentrations
Audited |
Risk concentrations may exist where one or several positions within or across different risk categories could result
in significant losses relative to UBS’s financial strength. Identifying such risk concentrations and assessing their potential
impact is a critical component of our risk management and control process.
For financial risks, we consider a number of elements, such as shared characteristics of positions, the size of the portfolio
and the sensitivity of positions to changes in the underlying risk factors. We take into account direct exposure from credit
and issuer risk, as well as indirect exposures, such as reliance on collateral. Also important in our assessment is the liquidity
of the markets where the positions are traded, as well as the availability and effectiveness of hedges or other potential
risk-mitigating factors. Particular attention is given to identification of wrong-way risk and risk on risk. Wrong-way risk is
defined as a positive correlation between the size of the exposure and the likelihood of a loss. Risk on risk refers to a
situation where a position and its risk mitigation can be impacted by the same event.
For non-financial risks, risk concentrations may result from, for example, a single non-financial risk issue that is large on
its own (i.e. it has the potential to produce a single high-impact loss or a number of losses that together are high impact)
or related non-financial risk issues that may link together to create a high impact. For example, we consider the level of
risk arising from concentration to a single counterparty, subcontractor or country in connection with the management of
third-party risk.
Risk concentrations are subject to increased oversight by Group Risk Control and Group Compliance and Operational
Risk Control, and assessed to determine whether they should be reduced or mitigated, depending on the available means
to do so. It is possible that material losses could occur on financial or non-financial risks, particularly if the correlations
that emerge in a stressed environment differ markedly from those envisaged by risk models.
›
Refer to “Credit risk” and “Market risk” in this section for more information about the composition of our portfolios and how risk
concentrations are monitored and mitigated
›
Refer to the “Risk factors” section of this report for more information
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 99
Credit risk
Audited |
Main sources of credit risk
–
In Global Wealth Management, credit risk arises from collateralized lending, primarily against securities, residential and
commercial real estate, other real assets (such as ships and aircraft), private market and hedge fund interest, and
investors’ uncalled capital commitments, as well as from collateralized clients’ derivatives trading. In addition, credit
risk also arises from unsecured lending, i.e. recourse-based lending and cash-flow-based corporate lending to entities
owned and controlled by our Global Wealth Management clients.
–
A substantial portion of our credit risk arises from Personal & Corporate Banking’s lending exposure, including
mortgage loans, secured mainly by owner-occupied properties and income-producing real estate, as well as corporate
loans, that depends on the performance of the Swiss economy and real estate market.
–
The Investment Bank’s credit risk arises mainly from lending, derivatives trading and securities financing. Derivatives
trading and securities financing are mainly investment grade. Loan underwriting activity can be lower rated and gives
rise to temporary concentrated exposure.
–
Credit risk in Non-core and Legacy relates to a residual portfolio of less-liquid structured financing transactions,
including some with residential and commercial real estate collateral and a small number of trades remaining from a
corporate loan portfolio.
Audited |
Overview of measurement, monitoring and management techniques
–
Credit risk from transactions with individual counterparties is based on our estimates of probability of default (PD),
exposure at default (EAD) and loss given default (LGD). Limits are established for individual counterparties and groups
of related counterparties covering banking and traded products, and for settlement amounts. Risk authorities are
approved by the Board of Directors and are delegated to the Group CEO, the Group Chief Risk Officer (the Group
CRO) and divisional CROs, based on risk exposure amounts, internal credit rating and potential for losses.
–
Limits apply not only to the current outstanding amount but also to contingent commitments and the potential future
exposure of traded products.
–
The Investment Bank monitoring, measurement and limit framework distinguishes between exposures intended to be
held to maturity (take-and-hold exposures) and those intended for distribution or risk transfer (temporary exposures).
–
We use models to derive portfolio credit risk measures of expected loss, statistical loss and stress loss at Group-wide
and business division levels, and to establish portfolio limits.
–
Credit risk concentrations can arise if clients are engaged in similar activities, located in the same geographical region
or have comparable economic characteristics, e.g. if their ability to meet contractual obligations would be similarly
affected by changes in economic, political or other conditions. To avoid credit risk concentrations, we establish limits
and operational controls that constrain risk concentrations at portfolio, sub-portfolio or counterparty levels for sector
exposure, country risk exposure and specific product exposures.
Credit risk profile of the Group
Internally, we classify credit risk exposures into two broad categories: banking products and traded products. Banking
products include drawn loans, guarantees and loan commitments, amounts due from banks, balances at central banks,
and other financial assets at amortized cost. Traded products include over-the-counter (OTC) derivatives, exchange-traded
derivatives (ETD) and securities financing transactions (SFTs), which consist of securities borrowing and lending, and
repurchase and reverse repurchase agreements.
The exposures detailed in this section are based on management’s view of credit risk, which differs in certain respects
from the requirements of IFRS Accounting Standards.
›
Refer to “Note 1 Summary of material accounting policies” in the “Consolidated financial statements” section of this report for
more information about our accounting policy for allowances and provisions for ECL
›
Refer to “Note 9 Financial assets at amortized cost and other positions in scope of expected credit loss measurement” and
“Note 19 Expected credit loss measurement” in the “Consolidated financial statements” section of this report for more
information about ECL measurement requirements under IFRS
Accounting Standards
›
Refer to “Note 13 Other assets” in the “Consolidated financial statements” section of this report for more information about other
assets at amortized cost
›
Refer to “Note 21 Offsetting financial assets and financial liabilities” in the “Consolidated financial statements” section of this
report for more information about our traded products exposure
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 100
Banking products
Banking products exposure in our business divisions and Group Items
31.12.25
USD m
Global
Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core
and Legacy
Group
Items
Total
Banking products exposure, gross
1,2
of which: loans and advances to customers (on-balance sheet)
of which: guarantees and irrevocable loan commitments (off-balance sheet)
Committed unconditionally revocable credit lines
3
Total credit-impaired exposure, gross
1
of which: stage 3
of which: PCI
Total allowances and provisions for expected credit losses
of which: stage 1
of which: stage 2
of which: stage 3
of which: PCI
31.12.24
USD m
Global
Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core
and Legacy
Group
Items
Total
Banking products exposure, gross
1,2
of which: loans and advances to customers (on-balance sheet)
of which: guarantees and irrevocable loan commitments (off-balance sheet)
Committed unconditionally revocable credit lines
3
Total credit-impaired exposure, gross
1
of which: stage 3
of which: PCI
Total allowances and provisions for expected credit losses
of which: stage 1
of which: stage 2
of which: stage 3
of which: PCI
1 IFRS 9 gross exposure for banking products includes the following financial instruments in scope of expected credit loss requirements: balances at central banks, amounts due from banks, loans and advances to
customers, other financial assets at amortized cost, guarantees and irrevocable loan commitments. 2 Internal management view of credit risk, which differs in certain respects from IFRS Accounting Standards.
3 Commitments that can be canceled by UBS at any time but expose UBS to credit risk if the client has the ability to draw the facility before UBS can take action. These commitments are subject to expected credit
loss requirements.
Global Wealth Management, Personal & Corporate Banking, and Investment Bank: banking products exposure, by
internal UBS ratings
1,2
USD m, except where indicated
31.12.25
31.12.24
Investment
grade /
Rating
1–5
Sub-investment grade
Defaulted /
Credit-
impaired
Banking
products
exposure,
gross
Investment
grade /
Rating
1–5
Sub-investment grade
Defaulted /
Credit-
impaired
Banking
products
exposure,
gross
Business divisions
Rating
6–9
Rating
10–13
Rating
6–9
Rating
10–13
Global Wealth Management
293,036
54,613
4,463
1,748
353,860
277,091
46,664
2,154
1,397
327,307
Personal & Corporate Banking
228,621
122,897
12,082
4,112
367,712
227,099
84,197
8,547
3,714
323,556
Investment Bank
29,624
19,034
16,442
641
65,742
26,347
16,692
15,582
595
59,216
1 Excluding balances at central banks and Group Treasury reallocations. 2 The ratings of the major credit rating agencies, and their mapping to our internal rating scale, are shown in the “Internal UBS rating scale
and mapping of external ratings” table in this section.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 101
Global Wealth Management
Gross banking products exposure increased by USD 28bn to USD 480bn as of 31 December 2025, predominantly due to
the weakening of the US dollar against other major currencies and also due to net new loans. Our Global Wealth
Management loan portfolio is mainly secured by a diversified portfolio of securities (standard Lombard loans) and by
residential real estate.
As of 31 December 2025, 94% of our USD 184bn of standard Lombard loans, including traded products collateralized
by securities, were rated as investment grade based on our internal ratings. Moreover, standard Lombard loans are
typically uncommitted, short-term in nature and can be canceled immediately if the collateral quality deteriorates and
margin calls are not met. Lending values in the Lombard book are derived by applying discounts (haircuts) to the pledged
collateral’s market value in line with a possible adverse change in market value over a given close-out period and
confidence level. Less-liquid or more volatile collateral will typically have larger haircuts. In 2025, the standard Lombard
book, including traded products, grew by approximately 11%.
The residential real estate portfolio increased by approximately 6% in 2025, mainly driven by our Swiss mortgage book,
in line with the weakening of the US dollar against the Swiss franc by 15% over the course of 2025.
Specialized financings as of 31 December 2025 totaled USD 59bn, including traded products. This portfolio mainly
consists of non-standard Lombard lending, commercial real estate loans, financing for ships, yachts and aircraft,
unsecured lending, and loans collateralized with uncalled capital commitments. These financings decreased by
approximately 6% in 2025, largely due to the wind down of non-strategic portfolios.
›
Refer to “Lending secured by real estate” and “Lombard lending” in this section for further information about these types of
lending
Collateralization of Loans and advances to customers
1
Global Wealth Management
Personal & Corporate Banking
USD m, except where indicated
31.12.25
31.12.24
31.12.25
31.12.24
Secured by collateral
317,041
290,053
277,635
232,913
Residential real estate
106,816
106,124
222,369
184,404
Commercial / industrial real estate
9,535
9,312
39,755
36,682
Cash
31,220
28,418
4,428
2,624
Equity and debt instruments
141,203
120,223
3,234
2,778
Other collateral
2
28,267
25,977
7,849
6,424
Subject to guarantees
268
1,715
5,449
6,886
Uncollateralized and not subject to guarantees
5,132
4,088
27,123
27,070
Total loans and advances to customers, gross
322,441
295,856
310,207
266,869
Allowances
Total loans and advances to customers, net of allowances
322,206
295,635
308,505
265,598
Collateralized loans and advances to customers as a percentage of total loans and advances to customers, gross (%)
98.3
98.0
89.5
87.3
1 Collateral arrangements generally incorporate a range of collateral, including cash, equity and debt instruments, real estate, and other collateral. For the purpose of this disclosure, UBS applies a risk-based approach
that generally prioritizes collateral according to its liquidity profile. In the case of loan facilities with funded and unfunded elements the collateral is first allocated to the funded element. For legacy Credit Suisse
infrastructure a risk-based approach is applied that generally prioritizes real estate collateral and prioritizes other collateral according to its liquidity profile. In the case of loan facilities with funded and unfunded
elements the collateral is proportionately allocated. 2 Includes but is not limited to life insurance contracts, rights in respect of subscription or capital commitments from fund partners, inventory, gold and other
commodities.
Personal & Corporate Banking
Gross banking products exposure increased by USD 37bn to USD 462bn as of 31 December 2025, predominantly due
to the weakening of the US dollar against the Swiss franc and net new loans.
The exposure is mainly driven by our Swiss mortgage portfolio, our Swiss corporate banking portfolio and, to a lesser
extent, our commodity trade finance portfolio. As of 31 December 2025, the majority of the banking products exposure
was rated investment grade, and 90% of loans and advances to customers were secured by collateral, mainly residential
and commercial property. The total unsecured amount mainly consists of cash-flow-based lending to corporate
counterparties.
Our Swiss corporate banking products take-and-hold portfolio exposure increased by USD 2bn to USD 75bn (CHF 59bn)
as of 31 December 2025, primarily reflecting the appreciation of the Swiss franc against the US dollar, partly offset by
negative net new loans. The portfolio consists of loans, guarantees and loan commitments to multi-national and domestic
counterparties. The small and medium-sized entity portfolio, in particular, is well diversified across industries. However,
such companies are reliant on the domestic economy and the economies to which they export, in particular the EU and
the US.
Our commodity trade finance portfolio focuses on energy and base-metal trading companies, where the related
commodity price risk is hedged to a large extent by the commodity trader. The majority of limits in this business are
uncommitted, transactional and short-term in nature. Our portfolio size was USD 9bn (CHF 7bn) as of 31 December
2025, compared with USD 9bn (CHF 8bn) as of 31 December 2024. A considerable part of the exposure correlates with
commodity prices.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 102
Swiss mortgage loan portfolio
Our Swiss mortgage loan portfolio secured by residential and commercial real estate in Switzerland continued to be our
largest loan portfolio. These mortgage loans (including loans on owner-occupied commercial real estate, also included in
the aforementioned Swiss corporate banking products exposure), amounting to USD 362bn (CHF 287bn) as of
31 December 2025, mainly originated from Personal & Corporate Banking, with contributions also from Global Wealth
Management Region Switzerland.
Of the aggregate amount of Swiss residential mortgages, 99.9% would continue to be covered by the real estate
collateral even if the collateral value were to decrease 20%, and more than 99% would remain covered by the real estate
collateral if the collateral value were to decrease 30%.
›
Refer to “Credit risk mitigation” in this section for more information about lending secured by real estate
Swiss mortgages: exposure by exposure segments and loan-to-value (LTV) buckets
1
USD bn, except where indicated
31.12.25
31.12.24
LTV buckets
Exposure segment
≤30%
31–50%
51–60%
61–70%
71–80%
81–100%
>100%
Total
Total
Residential mortgages
Exposure
187.2
74.4
16.0
6.1
1.6
0.2
0.1
285.5
237.6
Income-producing real estate
Exposure
36.7
13.5
2.5
0.8
0.2
0.1
0.0
53.9
57.7
Corporates
Exposure
12.2
4.4
1.0
0.5
0.2
0.1
0.1
18.3
15.7
Other segments
Exposure
2.8
1.0
0.2
0.1
0.1
0.0
0.0
4.2
2.2
Mortgage-covered exposure
Exposure
238.8
93.3
19.7
7.5
2.0
0.4
0.2
361.9
313.2
as a percentage of total
66
26
5
2
1
0
0
100
100
Mortgage-covered exposure 31.12.24
Exposure
206.0
80.0
17.7
6.9
1.9
0.5
0.3
313.2
as a percentage of total
66
26
6
2
1
0
0
100
1 The amount of each mortgage loan is allocated across the LTV buckets to indicate the portion at risk at the various value levels shown; for example, a loan of 75 with an LTV ratio of 75% (i.e. a collateral value of
100) would result in allocations of 30 in the ≤30% LTV bucket, 20 in the 31–50% bucket, 10 in the 51–60% bucket, 10 in the 61–70% bucket and 5 in the 71–80% bucket.
Investment Bank
The Investment Bank’s lending activities are largely associated with corporate and non-bank financial institutions. The
business is broadly diversified across industry sectors but concentrated in North America.
Gross banking products exposure increased by USD 36bn to USD 109bn as of 31 December 2025, due to an increase in
balances at central banks and, to a lesser extent, due to a rise in all other banking products. The banking products
exposure is almost equally distributed between investment grade and sub-investment grade rating, with a slight
predominance of the latter.
Mandated loan underwriting commitments on a notional basis were USD 5.9bn as of 31 December 2025 (31 December
2024: USD 4.6bn), reflecting new mandates during the year. As of 31 December 2025, USD 0.4bn of these commitments
had not yet been distributed as originally planned. Of the USD 4.6bn loan underwriting commitments reported as of the
end of 2024, an amount of USD 4.5bn was syndicated or canceled in 2025.
Loan underwriting exposures are classified as held for trading, with fair values reflecting the market conditions at the end
of 2025. Credit hedges are in place to help protect against fair value movements in the portfolio.
›
Refer to “Credit risk models” in this section for more information about rating grades and rating agency mappings
Investment Bank: banking products exposure, by geographical region
1
31.12.25
31.12.24
USD m
%
USD m
%
Asia Pacific
7,189
10.9
5,813
9.8
Latin America
733
1.1
778
1.3
Middle East and Africa
759
1.2
392
0.7
North America
39,799
60.5
37,568
63.4
Switzerland
472
0.7
132
0.2
Rest of Europe
16,788
25.5
14,533
24.5
Exposure
65,742
100.0
59,216
100.0
1 Excluding balances at central banks and Group Treasury reallocations.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 103
Investment Bank: banking products exposure, by industry sector
1
31.12.25
31.12.24
2
USD m
%
USD m
%
Banks
1,799
2.7
1,419
2.4
Electricity, gas, water supply
501
0.8
634
1.1
Financial institutions, excluding banks
3
33,207
50.5
26,757
45.2
Manufacturing
4
7,962
12.1
9,106
15.4
Mining
849
1.3
1,461
2.5
Public authorities
14
0.0
12
0.0
Real estate and construction
2,399
3.6
2,063
3.5
Retail and wholesale
4,726
7.2
3,369
5.7
Technology and communications
7,119
10.8
7,323
12.4
Transport and storage
954
1.5
868
1.5
Other
5
6,211
9.4
6,204
10.5
Exposure
65,742
100.0
59,216
100.0
1 Excluding balances at central banks and Group Treasury reallocations. 2 Comparative-period information has been restated to reflect changes in industry classification. 3 Includes central counterparties.
4 Includes the chemicals industry. 5 Includes other business services, health and social services, as well as other minor industries.
Non-core and Legacy
Gross banking products exposure decreased by USD 24bn to USD 9bn as of 31 December 2025, mainly due to a decrease
in high-quality liquid asset requirements, in combination with the ongoing de-risking of the portfolio.
›
Refer to “Balance sheet assets” in the “Balance sheet and off-balance sheet” section of this report for more information
›
Refer to the “Our businesses” section of this report for more information
›
Refer to the “Non-core and Legacy” section of this report for more information
Group Items
Gross banking products exposure, which arises primarily in connection with treasury activities, increased by USD 7bn to
USD 24bn as of 31 December 2025, predominantly driven by increases in guarantees and irrevocable loan commitments.
›
Refer to “Balance sheet assets” in the “Balance sheet and off-balance sheet” section of this report for more information
›
Refer to the “Group Items” section of this report for more information
Traded products
Audited
SFTs originating in the Investment Bank, Non-core and Legacy, and Group Treasury, is generally managed on a close-out
basis, as well as a stressed basis. This takes into account possible effects of market movements on the exposure and any
associated collateral over the time it would take to close out our positions. Limits are applied to the potential future and
stressed exposure per counterparty, with the size of the limit dependent on the counterparty’s creditworthiness (as
determined by Risk Control). Limit frameworks are also used to control overall exposure to specific sectors. Such portfolio
limits are monitored and reported to senior management.
Trading in OTC derivatives is conducted through central counterparties where practicable or required. Where central
counterparties are not used, we have clearly defined policies and processes for trading on a bilateral basis. Trading is
typically conducted under bilateral International Swaps and Derivatives Association agreements or similar master netting
agreements, which generally permit close-out and netting of transactions in case of default, subject to applicable law.
For certain counterparties, initial margin is taken to cover some or all of the calculated close-out and / or stressed
exposure. This is in addition to the variation margin taken to settle changes in market value of transactions. For most
major market participant counterparties, we use two-way collateral agreements under which either party can be required
to provide collateral in the form of cash or marketable securities when the exposure exceeds specified levels. Non-cash
collateral typically consists of well-rated government debt or other collateral acceptable to Risk Control and permitted by
applicable regulations.
In the tables below, OTC derivatives exposures are generally presented as net positive replacement values after the
application of legally enforceable netting agreements and the deduction of cash and marketable securities held as
collateral. SFT exposures are reported taking into account collateral received, and ETD exposures take into account
collateral margin calls.
›
Refer to “Note 10 Derivative instruments” in the “Consolidated financial statements” section of this report for more information
about OTC derivatives settled through central counterparties
›
Refer to “Note 21 Offsetting financial assets and financial liabilities” in the “Consolidated financial statements” section of this
report for more information about the effect of netting and collateral arrangements on derivative exposures
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 104
Investment Bank, Non-core and Legacy, and Group Treasury: traded products exposure, by internal UBS ratings
1
USD m, except where indicated
31.12.25
31.12.24
Investment
grade /
Rating
1–5
Sub-investment grade
Defaulted /
Credit-impaired
Traded
products
exposure,
net
2
Investment
grade /
Rating
1–5
Sub-investment grade
Defaulted /
Credit-impaired
Traded
products
exposure,
net
2
Product
Rating
6–9
Rating
10–13
Rating
6–9
Rating
10–13
OTC derivatives
7,856
849
16
14
8,735
16,266
841
40
211
17,357
ETD
8,380
147
0
0
8,526
10,245
109
0
0
10,353
SFTs
18,022
463
0
0
18,486
18,063
289
0
0
18,352
Traded products exposure, net
2
34,258
1,459
16
14
35,747
44,573
1,239
40
211
46,062
1 The ratings of the major credit rating agencies, and their mapping to our internal rating scale, are shown in the “Internal UBS rating scale and mapping of external ratings” table in this section. 2 After credit
valuation adjustments and hedges.
Investment Bank, Non-core and Legacy, and Group Treasury: net OTC derivatives and SFT exposure, by geographical
region
Net OTC derivatives exposure
Net SFT exposure
31.12.25
31.12.24
31.12.25
31.12.24
USD m
%
USD m
%
USD m
%
USD m
%
Asia Pacific
1,337
15.3
5,126
29.5
2,834
15.3
2,307
12.6
Latin America
46
0.5
88
0.5
59
0.3
27
0.1
Middle East and Africa
248
2.8
111
0.6
958
5.2
511
2.8
North America
3,066
35.1
4,165
24.0
5,009
27.1
4,946
27.0
Switzerland
1,070
12.3
2,522
14.5
570
3.1
494
2.7
Rest of Europe
2,968
34.0
5,345
30.8
9,056
49.0
10,066
54.9
Exposure
8,735
100.0
17,357
100.0
18,486
100.0
18,352
100.0
Investment Bank, Non-core and Legacy, and Group Treasury: net OTC derivatives and SFT exposure, by industry sector
Net OTC derivatives exposure
Net SFT exposure
31.12.25
31.12.24
1
31.12.25
31.12.24
1
USD m
%
USD m
%
USD m
%
USD m
%
Banks
969
11.1
1,914
11.0
4,642
25.1
5,808
31.6
Electricity, gas, water supply
111
1.3
132
0.8
3
0.0
2
0.0
Financial institutions, excluding banks
2
6,940
79.4
14,454
83.3
13,191
71.4
11,883
64.8
Manufacturing
3
65
0.7
34
0.2
0
0.0
1
0.0
Mining
125
1.4
58
0.3
1
0.0
0
0.0
Public authorities
335
3.8
391
2.3
551
3.0
542
3.0
Real estate and construction
8
0.1
144
0.8
0
0.0
0
0.0
Retail and wholesale
35
0.4
9
0.1
0
0.0
0
0.0
Technology and communications
25
0.3
38
0.2
0
0.0
0
0.0
Transport and storage
65
0.7
22
0.1
0
0.0
1
0.0
Other
58
0.7
160
0.9
97
0.5
114
0.6
Exposure
8,735
100.0
17,357
100.0
18,486
100.0
18,352
100.0
1 Comparative-period information has been restated to reflect changes in industry classification. 2 Includes central counterparties. 3 Includes the chemicals industry.
Credit risk mitigation
Audited |
We manage credit risk in our portfolios by taking collateral against exposures and by utilizing credit hedging.
Lending secured by real estate
Audited |
We use a scoring model as part of a standardized front-to-back process for credit decisions on originating or
modifying Swiss mortgage loans. The model’s two key factors are the LTV ratio and an affordability calculation.
The calculation of affordability takes into account interest payments, minimum amortization requirements and potential
property maintenance costs in relation to gross income or rental income for rental properties. The imputed interest rate
is set at 5% per annum, independently of the current interest rate environment.
For residential properties occupied by the borrower, the maximum LTV for the standard approval process is 80%. For
income-producing real estate (IPRE), the maximum LTV allowed within the standard approval process ranges from 40%
to 80%, depending on the type and age of the property.
Audited |
The value we assign to each property is an estimate based on model-derived valuations, the purchase price and,
depending on the property type and ownership purpose, a valuation at cost. In some cases, an additional external
valuation is considered.
To take market developments into account for external valuation models, an external vendor regularly updates the
parameters and / or refines the architecture for each model. Model changes and parameter updates are subject to the
same validation procedures as our internally developed models.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 105
Audited |
We similarly apply underwriting guidelines for our Global Wealth Management Region Americas mortgage loan
portfolio, taking into account loan affordability and collateral sufficiency. LTV standards are defined for the various
mortgage types, such as residential mortgages or investment properties, based on associated risk factors, such as property
type and loan size and purpose. The maximum LTV allowed within the standard approval process ranges from
% to
%. In addition to LTV, other credit risk metrics, such as debt-to-income ratios, credit scores and required client reserves,
are also part of our underwriting guidelines.
A risk limit framework is applied to the Global Wealth Management Region Americas mortgage loan portfolio. Limits are
set to govern exposures within LTV categories, geographic concentrations, portfolio growth and high-risk mortgage
segments, such as interest-only loans. These limits are monitored by a specialized credit risk monitoring team and reported
to senior management. Supplementing this limit framework is a real estate lending policy and procedures framework,
set up to govern real estate lending activities. Quality assurance and quality control programs monitor compliance with
mortgage underwriting and documentation requirements.
For our mortgage loan portfolio in the Global Wealth Management regions of EMEA and Asia Pacific, we apply global
underwriting guidelines with regional variations to allow for regulatory and market differentials. As in other regions, the
underwriting guidelines take into account affordability and collateral sufficiency. Affordability is assessed at a stressed
interest rate using, for residential real estate, the borrowers’ sustainable income and declared liabilities, and for
commercial real estate the quality and sustainability of rental income. For interest-only loans, a declared and evidenced
repayment strategy must be in place. The applicable LTV for each mortgage is based on the quality and liquidity of the
property and assessed against valuations from bank-appointed third-party valuers. Maximum LTV varies from
% to
%, depending on the type and location of the property, as well as other factors. Serviceability may be further supported
by personal guarantees from related third parties. The overall portfolio is centrally assessed against a number of stress
scenarios to ensure that exposures remain within predefined stress limits.
›
Refer to “Swiss mortgage loan portfolio” in this section for more information about LTV in our Swiss mortgage portfolio
Lombard lending
Audited |
Lombard loans are secured by pledges of marketable securities, guarantees and other forms of collateral. Eligible
financial securities are primarily liquid and actively traded transferable securities (such as bonds, equities and certain
hybrid securities), and other transferable securities, such as approved structured products for which regular prices are
available and the issuer of the security provides a market. To a lesser degree, less-liquid collateral is also used.
We derive lending values by applying discounts (haircuts) to the pledged collateral’s market value. Haircuts for marketable
securities are calculated to cover a possible adverse change in market value over a given close-out period and confidence
level. Less-liquid or more volatile collateral will typically have larger haircuts.
We assess concentration and correlation risks across collateral posted at a counterparty level, and at a divisional level
across counterparties. We also perform targeted Group-wide reviews of concentration. Concentration of collateral in
single securities, issuers or issuer groups, industry sectors, countries, regions or currencies may result in higher risk and
reduced liquidity. In such cases, the lending value of the collateral, margin call and close-out levels are adjusted
accordingly.
Exposures and collateral market values are monitored daily, with the aim of ensuring that the credit exposure always
remains within the established risk tolerance. A shortfall occurs when the lending value drops below the exposure; if it
exceeds a defined trigger level, a margin call is initiated, requiring the client to provide additional collateral, reduce the
exposure or take other action to bring exposure in line with the agreed lending value of the collateral. If a shortfall is not
corrected within the required period, a close-out is initiated, through which collateral is liquidated, open derivative
positions are closed and guarantees are called.
We conduct stress testing of collateralized exposures to simulate market events that reduce collateral market value,
increase exposure of traded products, or do both. For certain classes of counterparties, limits on such calculated stress
exposures are applied and controlled at a counterparty level. Also, portfolio limits are applied across certain businesses or
collateral types.
›
Refer to “Stress loss” in this section for more information about our stress testing
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 106
Credit hedging
Audited |
We use single-name credit default swaps (CDSs), credit-index CDSs, structured portfolio hedges (SPHs), bespoke
protection and other instruments to actively manage credit risk. The aim is to reduce concentrations of risk from specific
counterparties, sectors or portfolios and, for CCR, the profit or loss effect arising from changes in credit valuation
adjustments.
We have guidelines with regard to taking credit hedges into account for credit risk mitigation purposes. For example,
when monitoring exposures against counterparty limits, we do not usually apply certain credit risk mitigants, such as
proxy hedges (credit protection on a correlated but different name) or credit-index CDSs, to reduce counterparty
exposures. SPHs are structured to achieve true risk transfer by providing explicit protection against events that could cause
a loss in the referenced hedged positions, with the hedge payoff matched to the actual loss incurred on those positions
(i.e. no basis risk). Buying credit protection, if unfunded, also creates credit exposure with regard to the protection
provider. We monitor and limit exposures to credit protection providers and also monitor the effectiveness of credit
hedges.
›
Refer to “Note 10 Derivative instruments” in the “Consolidated financial statements” section of this report for more information
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
,
for more information
about risk transfer through synthetic securitizations
Mitigation of settlement risk
To mitigate settlement risk, we reduce actual settlement volumes by using multi-lateral and bilateral agreements with
counterparties, including payment netting. In relation to the exchange of cash or securities, transactions can be settled
on a delivery-versus-payment basis.
Foreign exchange transactions are our most significant source of settlement risk. We are a member of CLSSettlement
(operated by CLS, formerly known as Continuous Linked Settlement), an industry utility that provides a multi-lateral
framework to settle transactions on a payment-versus-payment basis, thus reducing foreign-exchange-related settlement
risk relative to the volume of business. However, mitigation of settlement risk through CLS and other means does not
fully eliminate credit risk in foreign exchange transactions resulting from changes in exchange rates prior to settlement,
which is managed as part of our overall credit risk management of OTC derivatives.
Credit risk models
Basel III – IRB credit risk models
Audited |
We have developed tools and models to estimate future credit losses that may be implicit in our current portfolio.
Exposures to individual counterparties are measured using three generally accepted parameters: PD, EAD and LGD. For a
given credit facility, the product of these three parameters results in the expected loss (the EL). These parameters are the
basis for the majority of our internal measures of credit risk, and key inputs for regulatory capital calculation under the
internal ratings-based (IRB) approach of the Basel III framework. We also use models to derive the portfolio credit risk
measures of EL, statistical loss and stress loss.
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
,
for more information
about the regulatory capital calculation under the IRB approach and our key credit risk models
Audited |
Internal UBS rating scale and mapping of external ratings
Internal UBS rating
1-year PD range, in %
Description
Moody’s Investors
Service mapping
S&P mapping
Fitch mapping
0 and 1
0.00–0.02
Investment grade
Aaa
AAA
AAA
2
0.02–0.05
Aa1 to Aa3
AA+ to AA–
AA+ to AA–
3
0.05–0.12
A1 to A3
A+ to A–
A+ to A–
4
0.12–0.25
Baa1 to Baa2
BBB+ to BBB
BBB+ to BBB
5
0.25–0.50
Baa3
BBB–
BBB–
6
0.50–0.80
Sub-investment grade
Ba1
BB+
BB+
7
0.80–1.30
Ba2
BB
BB
8
1.30–2.10
Ba3
BB–
BB–
9
2.10–3.50
B1
B+
B+
10
3.50–6.00
B2
B
B
11
6.00–10.00
B3
B–
B–
12
10.00–17.00
Caa1 to Caa2
CCC+ to CCC
CCC+ to CCC
13
>17
Caa3 to C
CCC– to C
CCC– to C
Counterparty is in default
Default
Defaulted
D
D
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 107
Probability of default
PD estimates the likelihood of a counterparty defaulting on its contractual obligations over the next 12 months and is
assessed using rating tools tailored to the various categories of counterparties.
The ratings of major credit rating agencies, and their mapping to the UBS masterscale and internal PD bands, are shown
in the “Internal UBS rating scale and mapping of external ratings” table above. For Moody’s and S&P, the mapping is
based on the long-term average of one-year default rates available from these rating agencies, with Fitch ratings being
mapped to the equivalent S&P ratings. For each external rating category, the average default rate is compared with our
internal PD bands to derive a periodically reviewed mapping to our internal rating scale.
Exposure at default
EAD is the amount we expect to be owed by a counterparty at the time of possible default. We derive EAD from current
exposure to the counterparty and possible future exposure development.
The EAD of an on-balance sheet loan is its notional amount, while for off-balance sheet commitments that are not drawn,
credit conversion factors (CCFs) are used in order to obtain an expected on-balance sheet amount.
For traded products under the internal model method for derivatives and the repo value-at-risk approach for SFTs, we derive
EAD by modeling the range of possible exposure outcomes at various points in time using a simulation based on a scenario-
consistent technique. We assess the net amount that may be owed to us or that we may owe to others, taking into account
the effect of market movements over the potential time it would take to close out positions.
We assess exposures where there is a material correlation between the factors driving the credit quality of the
counterparty and those driving the potential future value of our traded products exposure (wrong-way risk), and we have
established specific controls to mitigate such risks.
Loss given default
LGD is the magnitude of the likely loss if there is a default. Our LGD estimates, which consider downturn conditions,
include loss of principal, interest and other amounts less recovered amounts. We determine LGD based on the likely
recovery rate of claims against defaulted counterparties, which depends on the type of counterparty and any credit
mitigation due to collateral or guarantees. Our estimates are supported by internal loss data and external information,
where available. If we hold collateral, such as marketable securities or a mortgage on a property, LTV ratios are typically
a key parameter in determining LGD.
Expected loss
We use the concept of EL to quantify future credit losses that may be implicit in our current portfolio. The EL for a given
credit facility is the product of the three components described above, i.e. PD, EAD and LGD. We aggregate the EL for
individual counterparties to derive expected portfolio credit losses.
IFRS 9 – ECL credit risk models
Expected credit loss
ECL is defined as the difference between contractual cash flows and those UBS expects to receive, discounted at the
effective interest rate (EIR) or contractual interest rate. For loan commitments and other credit facilities in scope of ECL
requirements, expected cash shortfalls are determined by considering expected future drawdowns. Rather than focusing
on an average through -the-cycle (TTC) expected annual loss, the purpose of ECL is to estimate the amount of losses
inherent in a portfolio based on current conditions and future outlook (a point-in-time (PIT) measure), whereby such a
forecast has to be unbiased (i.e. exclude conservative adjustments) and include all information available without undue
cost and effort, and address multiple scenarios where there is perceived non-linearity between changes in economic
conditions and their effect on credit losses. From a credit risk modeling perspective, ECL parameters are generally
derivations of the factors assessed for regulatory Basel III EL.
Comparison of Basel III EL and IFRS 9 ECL credit risk models
The IFRS 9 ECL concept has a number of key differences from our Basel III credit risk models, both in the loss estimation
process and the result thereof. Most notably, regulatory Basel III EL parameters are TTC / downturn estimates, which
include a margin of conservatism, while IFRS 9 ECL parameters are typically PIT, reflecting current economic conditions
and future outlook. The table below summarizes the main differences. Stage 1 and 2 ECL expenses in 2025 were
USD 6m, and the respective allowances and provisions as of 31 December 2025 were USD 1,004m. This included ECL
allowances and provisions of USD 892m related to positions under the Basel III IRB approach. Basel III EL for non-defaulted
positions was USD 1,769m.
›
Refer to “Note 1 Summary of material accounting policies” in the “Consolidated financial statements” section of this report for
more information about our accounting policy for allowances and provisions for ECL including key definitions relevant for the ECL
calculation under IFRS 9
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 108
The table below shows the main differences between the two expected loss measures.
Basel III EL (IRB approach)
IFRS 9 ECL
Scope
The Basel III IRB approach applies to most credit risk exposures. It
includes transactions measured at amortized cost, at fair value
through profit or loss and at fair value through OCI, including
loan commitments and financial guarantees.
The IFRS 9 ECL calculation mainly applies to financial assets
measured at amortized cost and debt instruments measured at
fair value through OCI, as well as loan commitments and financial
guarantees not at fair value through profit or loss.
12-month versus
lifetime
expected loss
The Basel III IRB approach takes into account expected losses
resulting from expected default events occurring within the next
12 months.
In the absence of a significant increase in credit risk (an SICR), a
maximum 12-month ECL is recognized. Once an SICR event has
occurred, a lifetime ECL is recognized considering expected
default events over the life of the transaction.
Exposure at
default
(EAD)
EAD is the amount we expect a counterparty to owe us at the
time of a possible default. For on-balance sheet banking products,
EAD equals the book value as of the reporting date; for traded
products, the vast majority of EAD is modeled. For lending, EAD is
expected to remain constant over a 12-month period. For loan
commitments, a credit conversion factor (a CCF) is applied to
model expected future drawdowns. The CCF accounts for
downturn effect, includes a margin of conservatism and is aligned
with regulatory floors.
EAD is generally calculated on the basis of the cash flows that are
expected to be outstanding at the individual points in time during
the life of the transaction. For loan commitments, a CCF is applied
to model expected future drawdowns. The CCF’s target is the
best estimate of expected undrawn line usage at default without
any conservative adjustments.
Probability of
default
(PD)
PD estimates are determined on a through-the-cycle (TTC) basis
including conservative adjustments and floors in line with
regulation. They represent historical average PDs, taking into
account observed losses over a prolonged historical period, and
therefore are less sensitive to movements in the underlying
economy.
PD estimates are determined on a point-in-time (PIT) basis, based
on current conditions and incorporating forecasts for future
economic conditions at the reporting date.
Loss given
default
(LGD)
LGD includes prudential adjustments, such as downturn LGD
assumptions and floors. Similar to PD, LGD is determined on a
TTC basis.
LGD should reflect the losses that are reasonably expected to be
incurred and prudential adjustments should therefore not be
applied. Similar to PD, LGD is determined on the basis of a PIT
approach.
Use of scenarios
No use of scenarios.
Multiple forward-looking scenarios have to be taken into account
to determine a probability-weighted ECL.
Further key aspects of credit risk models
Stress loss
We complement our statistical modeling approach with scenario-based stress loss measures. Stress tests are run regularly
to monitor potential effects of extreme, but nevertheless plausible, events on our portfolios, under which key credit risk
parameters are assumed to deteriorate substantially. Where we consider it appropriate, we apply limits on this basis.
Stress scenarios and methodologies are tailored to the portfolios’ natures, ranging from regionally focused to global
systemic events and varying in time horizon.
›
Refer to “Stress testing” in this section for more information about our stress -testing framework
Credit risk model confirmation
Our approach to model confirmation involves both quantitative methods, such as monitoring compositional changes in
portfolios and results of backtesting, and qualitative assessments, such as feedback from users on model output as a
practical indicator of a model’s performance and reliability. In addition, changes in market, regulatory and business
practices are assessed.
Material changes in portfolio composition may invalidate the conceptual soundness of a model. We therefore perform
regular analyses of the evolution of portfolios to identify such changes in the structure and credit quality of portfolios.
›
Refer to “Model risk” in this section for more information
Backtesting
We monitor the performance of models by backtesting and benchmarking them, with model outcomes compared with
actual results, based on our internal experience and externally observed results. To assess the predictive power of credit
exposure models for traded products, such as OTC derivatives and ETD products, we statistically compare predicted future
exposure distributions at different forecast horizons with realized values.
For PD, we derive a predicted distribution of the number of defaults. The observed number of defaults is compared with
the upper tail of the predicted distribution. If the observed number of defaults is higher than a given upper tail quantile,
we conclude there is evidence that the model may underpredict the number of defaults. Based on historical long-run
average default rates and, if required, additional margin of conservatism, we also derive PD calibration targets and a
lower boundary. As a general rule, follow-up actions, such as a recalibration of the rating tool, are defined if the portfolio
average PD lies below the derived lower boundary.
For LGD, backtesting statistically tests the mean difference between the observed and predicted LGDs. We compare
predicted LGDs with actual outcomes and if any statistically significant deviation is identified, follow-up actions, such as
a recalibration of the models, are taken.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 109
CCFs, used for the calculation of EAD for undrawn facilities, are dependent on several credit facility contractual
dimensions. We compare the predicted amount drawn with observed historical use of such facilities by defaulted
counterparties. If any statistically significant deviation is observed, follow-up actions, such as an update of the relevant
CCFs, are performed.
Changes to models and model parameters during the period
As part of our continuous efforts to enhance models to reflect market developments and newly available data, we
updated several models in 2025.
In Personal & Corporate Banking and Global Wealth Management, we refined the models for the integrated Swiss
income-producing and residential real estate mortgage portfolios.
In Global Wealth Management, a new dedicated PD and LGD model for concentrated equity-based lending was
implemented, and a conservative RWA buffer for concentrated equity-based lending was released accordingly. Moreover,
the derivative exposure modeling within the PD and LGD calculation for standard Lombard loans was further enhanced.
Also, following a review of regulatory requirements and wording of client contracts, the Swiss Financial Market
Supervisory Authority (FINMA) agreed to descope the undrawn amount of uncommitted Lombard loans from the EAD
calculation. This change was implemented for the US portfolio in 2025, with implementation for other portfolios planned
for 2026.
In Global Wealth Management, we have also deployed a new version of the ship finance PD and LGD model, replacing
the previous version implemented on the legacy Credit Suisse infrastructure. Additionally, the US private equity
subscription loans were moved from the standardized approach for credit risk to the foundation IRB approach.
In the Investment Bank, we recalibrated the PD model for corporate clients. We also updated the LGD model for sight
deposits at selected central banks.
Most of the legacy Credit Suisse models have already been decommissioned, with any remaining exposure moved to the
standardized approach for the calculation of risk-weighted assets. The few models still in use on legacy Credit Suisse
infrastructure have been integrated into the UBS model risk management framework and are scheduled to be retired
during the first half of 2026. For positions that have migrated from the legacy Credit Suisse to UBS infrastructure, UBS
models have been adopted accordingly.
Where required, changes to models and model parameters were approved by FINMA before implementation.
›
Refer to “Risk-weighted assets” in the “Capital management” section of this report for more information about the effect of the
changes to models and model parameters on credit risk RWA
Credit-risk-model-related regulatory capital developments
In Switzerland, the amendments to the Capital Adequacy Ordinance that incorporate the final Basel III standards into
Swiss law entered into force on 1 January 2025. The adoption led to a number of revisions to the internal ratings-based
(IRB) approaches, namely removing the option of using the A-IRB approach for certain asset classes, introducing certain
floors for the IRB risk parameters, and various requirements to reduce RWA variability. In addition, the removal of the
internal model approach for credit valuation adjustment became effective.
›
Refer to “Capital management objectives, planning and activities” in the “Capital management” section of this report for more
information about the development of RWA
›
Refer to the “Regulatory and legal developments” section of this report for more information
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors,
for more information
Credit policies for distressed assets
Non-performing
Audited |
In line with the regulatory definition, we report a claim as non-performing when: (i) it is more than 90 days past
due; (ii) it is subject to restructuring proceedings, where preferential conditions concerning interest rates, subordination,
tenor, etc. have been granted in order to avoid default of the counterparty (forbearance); (iii) the counterparty is subject
to bankruptcy / enforced liquidation proceedings in any form, even if there is sufficient collateral to cover the due
payment; or (iv) there is other evidence that payment obligations will not be fully met without recourse to collateral.
Default and credit impaired
UBS uses a single definition of default for classifying assets and determining the PD of its obligors for risk modeling
purposes. The definition of default is based on quantitative and qualitative criteria. A counterparty is classified as
defaulted when material payments of interest, principal or fees are overdue for more than 90 days, or more than 180 days
for certain exposures in relation to loans to private and commercial clients in Personal & Corporate Banking and to private
clients of Global Wealth Management Region Switzerland. UBS does not consider the general 90-day presumption for
default recognition appropriate for those portfolios, given the cure rates, which show that strict application of the 90-
day criterion would not accurately reflect the inherent credit risk. Counterparties are also classified as defaulted when:
bankruptcy, insolvency proceedings or enforced liquidation have commenced; obligations have been restructured on
preferential terms (forbearance); or there is other evidence that payment obligations will not be fully met without recourse
to collateral. The latter may be the case even if, to date, all contractual payments have been made when due. If one claim
against a counterparty is defaulted on, generally all claims against the counterparty are treated as defaulted.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 110
An instrument is classified as credit impaired if the counterparty is classified as defaulted and / or the instrument is identified
as purchased credit impaired (PCI). An instrument is PCI if it has been purchased at a deep discount to its carrying amount
following a risk event of the issuer or originated with a defaulted counterparty. Once a financial asset is classified as
defaulted / credit impaired (except PCI), it is reported as a stage 3 instrument and remains as such unless all past due
amounts have been rectified, additional payments have been made on time, the position is not classified as credit
restructured, and there is general evidence of credit recovery. A three-month probation period is applied before a transfer
back to stages 1 or 2 can be triggered. However, most instruments remain in stage 3 for a longer period of time.
Forbearance (credit restructuring)
Audited |
If payment default is imminent or default has already occurred, we may grant concessions to borrowers in financial
difficulties that we would otherwise not consider in the normal course of business, such as offering preferential interest rates,
extending maturity, modifying the schedule of repayments, debt / equity swap, subordination, etc. When a forbearance
measure takes place, each case is considered individually, and the exposure is generally classified as defaulted. Forbearance
classification remains until the loan is repaid or written off, non-preferential conditions are granted that supersede the
preferential conditions or the counterparty has recovered, and the preferential conditions no longer exceed our risk tolerance.
Contractual adjustments when there is no evidence of imminent payment default, or where changes to terms and
conditions are within our usual risk tolerance, are not considered to be forborne.
Loss history statistics
An instrument is classified as credit impaired if the counterparty has defaulted. This also includes credit-impaired
exposures for which no loss has occurred or for which no allowance has been recognized (e.g. where we expect to fully
recover the exposures via collateral held).
Coverage ratios are calculated for the core loan portfolio by taking ECL allowances and provisions divided by the gross
carrying amount of the exposures. Core loan exposure is defined as the sum of Loans and advances to customers and
Loans to financial advisors.
The total combined on- and off-balance sheet coverage ratio was 31 basis points as of 31 December 2025, 4 basis points
higher than the ratio as of 31 December 2024. The combined stage 1 and 2 ratio was 10 basis points, unchanged
compared with the ratio as of 31 December 2024; the stage 3 ratio was 27%, 5 percentage points higher than the ratio
as of 31 December 2024, and the PCI ratio was 27%.
›
Refer to “Note 9 Financial assets at amortized cost and other positions in scope of expected credit loss measurement” and
“Note 19 Expected credit loss measurement” in the “Consolidated financial statements” section of this report for more
information about ECL measurement and the calculation of the coverage ratio
›
Refer to “Note 13 Other assets” in the “Consolidated financial statements” section of this report for more details
›
Refer to the “Group performance” section of this report for more information about credit loss expense / release
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 111
Loss history statistics
USD m, except where indicated
31.12.25
31.12.24
31.12.23
Banking products, core exposure and off-balance sheet, gross
1
927,652
869,171
966,279
of which: amounts due from banks and loans and advances to customers, gross
675,999
600,884
662,525
Credit-impaired exposure, gross (stage 3 and PCI)
7,363
6,637
6,200
of which: credit-impaired amounts due from banks and loans and advances to customers (stage 3 and PCI)
6,421
5,793
5,367
Non-performing amounts due from banks and loans and advances to customers
6,538
6,044
5,806
ECL allowances and provisions for credit losses
2
3,058
2,507
2,261
of which: core loan exposure (all stages)
2,882
2,339
2,097
of which: amounts due from banks and loans and advances to customers (all stages)
2,504
2,014
1,710
of which: amounts due from banks and loans and advances to customers (stage 3 and PCI)
1,866
1,408
990
Write-offs (stage 3 and PCI)
374
348
93
of which: write-offs for amounts due from banks and loans and advances to customers
361
329
78
Credit loss expense / (release)
3
524
551
1,037
Ratios
Credit-impaired lending assets as a percentage of total lending assets, gross (%)
4
0.9
1.0
0.8
Non-performing lending assets as a percentage of total lending assets, gross (%)
4
1.0
1.0
0.9
ECL allowances for lending assets as a percentage of total lending assets, gross (%)
4
0.4
0.3
0.3
Write-offs as a percentage of average gross lending assets outstanding during the period (%)
4
0.1
0.1
0.0
1 Includes amounts due from banks, core loan exposure (Loans and advances to customers and Loans to financial advisors) and off-balance sheet items defined as guarantees and loan commitments. 2 Includes
provisions for ECL of guarantees and loan commitments and allowances for securities financing transactions. 3 Includes credit loss expense / (release) for other financial assets at amortized cost, guarantees, loan
commitments, and securities financing transactions. 4 Lending assets include amounts due from banks and loans and advances to customers.
Market risk
Audited |
Main sources of market risk
Market risks arise from both trading and non-trading business activities.
–
Trading market risks arise primarily in the Investment Bank, Non-core and Legacy and, to a lesser extent, Global Wealth
Management. In the Investment Bank these risks are mainly connected with securities and derivatives trading for
market-making and client facilitation, as well as Global Banking activity for primary debt and equity underwriting. In
Non-core and Legacy, market risk is limited and results from a largely hedged portfolio of both complex and simple
credit, interest rate and equity derivative transactions. A limited contribution to market risk in Global Wealth
Management comes from municipal securities and taxable fixed-income securities.
–
Non-trading market risks arise predominantly in the form of interest rate and foreign exchange risks connected with
personal banking and lending in our wealth management businesses, the Swiss business of our Personal & Corporate
Banking business division, the Investment Bank’s lending business, and treasury activities.
–
Group Treasury assumes market risks in the process of managing interest rate risk, structural foreign exchange risk and
the Group’s liquidity and funding profile, including high-quality liquid assets (HQLA).
–
Equity and debt investments can also give rise to market risks, as can some aspects of employee benefits, such as
defined benefit pension schemes.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 112
Audited |
Overview of measurement, monitoring and management techniques
–
Market risk limits are set for the Group, the business divisions and Group Treasury at granular levels in the various
business lines, reflecting the nature and magnitude of the market risks.
–
Management value-at-risk (VaR) measures exposures under the market risk framework, including trading market risks
and some non-trading market risks. Non-trading market risks not included in VaR are covered in the risks controlled
by the Market and Treasury Risk Control functions.
–
Our primary portfolio measures of market risk are liquidity-adjusted stress loss and VaR. Both are subject to limits that
are approved by the Board of Directors (the BoD). Market risk measurement for certain legacy Credit Suisse components
can differ from the UBS Group excluding the aforementioned legacy Credit Suisse components, as set out below. These
positions continue to be managed on legacy Credit Suisse infrastructure until full migration of these positions to UBS
infrastructure or the liquidation of the positions.
–
These measures are complemented by concentration and granular limits for general and specific market risk factors.
Our trading businesses are subject to multiple market risk limits, which take into account the extent of market liquidity
and volatility, business outlook and growth, and, for our single-name exposures, issuer credit quality.
–
Trading market risks are managed at portfolio level. As risk factor sensitivities change due to new transactions,
transaction expiries or changes in market levels, risk factors are dynamically rehedged to remain within limits. We do
not generally seek to distinguish in the trading portfolio between specific positions and associated hedges.
–
Issuer risk for credit products is controlled by limits applied at the business-division level based on jump-to-zero
measures, which estimate maximum default exposure (the default event loss assuming zero recovery).
–
Non-trading foreign exchange risks are managed under market risk limits, with the exception of Group Treasury
management of consolidated capital activity.
Our CRO Treasury function applies a holistic risk framework, setting the appetite for treasury-related risk-taking activities
across the Group. Key elements of the framework include an overarching regulatory (interest rate risk in the banking
book (IRRBB)) delta economic value of equity (EVE) target, set by the BoD. Limits are also set by the BoD to balance the
effect of foreign exchange movements on our common equity tier 1 (CET1) capital and CET1 capital ratio. Non-trading
interest rate and foreign exchange risks are included in Group-wide statistical and stress-testing metrics, which flow into
our risk appetite framework.
Equity and debt investments are subject to a range of risk controls, including preapproval of new investments for
commercial purposes by business management and Risk Control and regular monitoring and reporting by Group Finance.
They are also included in Group-wide statistical and stress-testing metrics.
›
Refer to the “Currency management” section of this report for more information about Group Treasury’s management of foreign
exchange risks
›
Refer to the “Capital management” section of this report for more information about the sensitivity of our CET1 capital and CET1
capital ratio to currency movements
Market risk stress loss
The measurement and management of market risks include an extensive set of stress tests and scenario analyses,
continuously evaluated to ensure that losses resulting from an extreme yet plausible event do not exceed our risk appetite.
Liquidity-adjusted stress
Liquidity-adjusted stress is our primary stress loss measure for Group-wide market risk. The framework captures the
economic losses that could arise under specified stress scenarios. Shocks are applied to positions based on expected
market movements in the liquidity-adjusted holding periods resulting from the specified scenario.
Holding periods are used for liquidity-adjusted stress to reflect the time needed to reduce or hedge the risk of positions
in each major risk factor in a stressed environment. We apply minimum holding periods, regardless of observed liquidity
levels, as identification of and reaction to a crisis may not always be immediate.
The expected market movements are derived using historical market behavior (based on analysis of historical events) and
forward-looking analysis including consideration of defined scenarios that have not occurred in the past.
Stress-based limits apply at several levels of the organizational hierarchy. Liquidity-adjusted stress is also the core market
risk component of our combined stress test framework and therefore integral to our overall risk appetite framework.
›
Refer to “Risk appetite framework” in this section for more information
›
Refer to “Stress testing” in this section for more information about our stress -testing framework
Value-at-risk
VaR definition
Audited
(holding period) at an established level of confidence. VaR assumes no change in the Group’s trading positions over the
set time horizon.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 113
We calculate VaR daily. The profit or loss distribution from which VaR is estimated is derived from our internally developed
VaR model, which simulates returns over the holding period for risk factors our trading positions are sensitive to, and
subsequently quantifies the profit / loss effect of these risk factor returns on our trading positions. Systematic commodity,
credit, equity, foreign exchange rate and interest rate risk factor returns are based on a pure historical simulation
approach. An unweighted five-year look-back window is used for the UBS Group excluding certain legacy Credit Suisse
components and an exponentially weighted two-year window for the aforementioned legacy Credit Suisse components.
Modeling idiosyncratic and specific risks for equity and credit risk factors using historical simulation is challenging, due
to the limited availability of continuous good-quality historical data. Wherever possible, historical simulation to model-
specific risk is used for the legacy Credit Suisse components; however, both traded market risk portfolios rely upon factor
models to distinguish systematic and idiosyncratic returns. For the UBS Group excluding certain legacy Credit Suisse
components, idiosyncratic returns are simulated through a Monte Carlo model, aggregating the sum of systematic and
residual returns in such a way that systematic and residual risk are consistently captured. For the legacy Credit Suisse
components, the available distribution of idiosyncratic returns is used to determine an extreme scenario for a given risk
factor’s specific risk; the resultant VaR and extreme scenario loss for a given risk factor are aggregated using a zero-
correlation assumption.
VaR models are used for internal management purposes, with exposures measured using VaR at a
% confidence level
for the UBS Group excluding certain legacy Credit Suisse components, and a
% confidence level for the
aforementioned legacy Credit Suisse components, and applying a 1-day holding period, aligned to the way we consider
the risks associated with our trading activities. From 2026, VaR limits are established for the UBS Group excluding certain
legacy Credit Suisse components only; VaR limits for legacy Credit Suisse components have been decommissioned, as the
remaining exposure is immaterial.
Management VaR for the period
Average management VaR (1-day, 95% confidence level) of the UBS Group excluding certain legacy Credit Suisse
components in 2025 decreased to USD 10m from USD 12m in 2024, mainly driven by the Investment Bank’s Global
Markets business.
Average management VaR (1-day, 98% confidence level) of the aforementioned legacy Credit Suisse components in
2025 decreased to USD 3m from USD 12m in 2024, driven by continued strategic migration of positions to UBS and
exposure reduction in Non-core and Legacy.
Audited |
Management value-at-risk (1-day, 95% confidence level, 5 years of historical data) of the business divisions and Group
Items excluding certain legacy Credit Suisse components, by general market risk type
1,2
For the year ended 31.12.25
USD m
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Min.
Max.
Average
31.12.25
Total management VaR
Average (per business division and risk type)
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Diversification effect
3,4
(6 )
(7 )
(1 )
(4 )
(4 )
(1 )
For the year ended 31.12.24
USD m
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Min.
Max.
Average
31.12.24
Total management VaR
Average (per business division and risk type)
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Diversification effect
3,4
(6 )
(8 )
(1 )
(5 )
(4 )
(1 )
1 The legacy Credit Suisse components not included in the UBS Group management VaR reflect the portfolio managed on legacy Credit Suisse infrastructure based on legacy Credit Suisse management VaR methodology
until full migration of these positions to UBS infrastructure or the liquidation of the positions. This process is ongoing, and the management VaR of the legacy Credit Suisse components is expected to continue
decreasing over time. 2 Statistics at individual levels may not be summed to deduce the corresponding aggregate figures. The minima and maxima for each level may occur on different days, and, likewise, the VaR
for each business line or risk type, being driven by the extreme loss tail of the corresponding distribution of simulated profits and losses for that business line or risk type, may well be driven by different days in the
historical time series, rendering invalid the simple summation of figures to arrive at the aggregate total. 3 The difference between the sum of the standalone VaR for the business divisions and Group Items and the
total VaR. 4 As the minima and maxima for different business divisions and Group Items occur on different days, it is not meaningful to calculate a portfolio diversification effect.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 114
Management value-at-risk (1-day, 98% confidence level, 2 years of historical data) of certain legacy Credit Suisse
components of the business divisions and Group Items, by general market risk type
1,2
For the year ended 31.12.25
USD m
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Min.
Max.
Average
31.12.25
Total management VaR
Average (per business division and risk type)
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Diversification effect
3,4
(1 )
(1 )
For the year ended 31.12.24
USD m
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Min.
Max.
Average
31.12.24
Total management VaR
Average (per business division and risk type)
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Diversification effect
3,4
(3 )
(1 )
(2 )
(2 )
1 The legacy Credit Suisse components not included in the UBS Group management VaR reflect the portfolio managed on legacy Credit Suisse infrastructure based on legacy Credit Suisse management VaR methodology
until full migration of these positions to UBS infrastructure or the liquidation of the positions. This process is ongoing, and the management VaR of the legacy Credit Suisse components is expected to continue
decreasing over time. 2 Statistics at individual levels may not be summed to deduce the corresponding aggregate figures. The minima and maxima for each level may occur on different days, and, likewise, the VaR
for each business line or risk type, being driven by the extreme loss tail of the corresponding distribution of simulated profits and losses for that business line or risk type, may well be driven by different days in the
historical time series, rendering invalid the simple summation of figures to arrive at the aggregate total. 3 The difference between the sum of the standalone VaR for the business divisions and Group Items and the
total VaR. 4 As the minima and maxima for different business divisions and Group Items occur on different days, it is not meaningful to calculate a portfolio diversification effect.
VaR limitations
Audited |
Actual realized market risk losses may differ from those implied by VaR for a variety of reasons.
–
VaR is calibrated to a specified level of confidence and may not indicate potential losses beyond this confidence level.
–
The 1-day time horizon used for VaR for internal management purposes may not fully capture market risk of positions
that cannot be closed out or hedged within the specified period.
–
In some cases, VaR calculations approximate the effect of changes in risk factors on the values of positions and
portfolios.
–
Effects of extreme market movements are subject to estimation errors, which may result from non-linear risk
sensitivities, and the potential for actual volatility and correlation levels to differ from assumptions implicit in VaR
calculations.
–
The choice of a longer historical window means sudden increases in market volatility will tend not to increase VaR as
quickly as the use of shorter historical observation periods, but such increases will affect VaR for a longer period of
time. Similarly, after periods of increased volatility, as markets stabilize, VaR predictions will remain more conservative
for a period of time, influenced by the length of the historical observation period.
We recognize that no single measure can encompass all risks associated with a position or portfolio. We use a set of
metrics with both overlapping and complementary characteristics to create a holistic framework that aims to ensure
material completeness of risk identification and measurement. As a statistical aggregate risk measure, VaR supplements
our comprehensive stress-testing framework.
We also have a framework to identify and quantify potential risks not fully captured by our VaR model and refer to such
risks as risks not in VaR.
VaR model confirmation
VaR backtesting is a performance measurement process in which a 1-day VaR prediction is compared with the realized
1-day profit or loss. We conduct backtesting for internal model confirmation purposes.
VaR model developments in 2025
Audited |
In 2025, no material changes were made to the VaR model used for the UBS Group excluding certain legacy Credit
Suisse components or to the VaR model used for those certain legacy Credit Suisse components.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 115
Market-risk-related regulatory capital developments
The Basel Committee on Banking Supervision (the BCBS) final Basel III standards on the minimum capital requirements
for market risk, known as the Fundamental Review of the Trading Book (the FRTB), entered into force on 1 January 2025.
FINMA issued implementing ordinances to support these changes. These ordinances are effective from 1 January 2025
and provide technical details for the revised Capital Adequacy Ordinance, ensuring alignment with international
standards. Key elements of the revised market risk framework include: (i) changes to the internal model-based approach,
including changes to the model approval and performance measurement process; (ii) changes to the standardized
approach with the aim of providing a credible fallback method for an internal model-based approach; and (iii) a revised
boundary between the trading book and the banking book.
As part of going live with the FRTB, UBS has adopted the standardized approach for all FINMA-regulated legal entities,
including the UBS Group.
›
Refer to “Risk-weighted assets” in the “Capital management” section of this report for more information about the development
of RWA, including the regulatory add-on
›
Refer to the “Regulatory and legal developments” section of this report for more information
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
,
for more information
Interest rate risk in the banking book
Sources of interest rate risk in the banking book
Audited |
IRRBB arises from balance sheet positions such as Amounts due from banks, Loans and advances to customers,
Financial assets at fair value not held for trading, Financial assets measured at amortized cost, Customer deposits, Debt
issued measured at amortized cost, and Derivative financial instruments, including those subject to hedge accounting.
Fair value changes to these positions may affect other comprehensive income (OCI) or the income statement, depending
on their accounting treatment.
Our largest banking book interest rate exposures arise from customer deposits and lending products in Global Wealth
Management and Personal & Corporate Banking, as well as from debt issuance, liquidity buffers and interest rate hedges
in Group Treasury. The inherent interest rate risks stemming from Global Wealth Management and Personal & Corporate
Banking are generally transferred to Group Treasury, to manage them centrally together with our modeled interest rate
duration assigned to equity, goodwill and real estate. This makes the netting of interest rate risks across different sources
possible, while leaving the originating businesses with commercial margin and volume management. The residual interest
rate risk is mainly hedged with interest rate swaps, to the vast majority of which we apply hedge accounting. Short-term
exposures and HQLA classified as Financial assets at fair value not held for trading are hedged with derivatives accounted
for on a mark-to-market basis. Long-term fixed-rate debt issued and HQLA hedged with external interest rate swaps are
designated in fair value hedge accounting relationships.
Risk management and governance
IRRBB is measured using several metrics, the most relevant of which are the following.
–
EVE sensitivity to yield curve moves is calculated as changes in the present value of future cash flows irrespective of
accounting treatment. These yield curve moves are also the key risk factors for statistical and stress-based measures,
e.g. VaR and stress scenarios, as well as the regulatory interest rate scenarios. These are measured and reported daily.
The regulatory IRRBB EVE exposure is the most adverse regulatory interest rate scenario that is netted across currencies.
It excludes the sensitivity from additional tier 1 (AT1) capital instruments (as per specific FINMA requirements) and the
modeled interest rate duration assigned to equity, goodwill and real estate. UBS also applies granular internal interest
rate shock scenarios to its banking book positions to monitor its specific risk profile.
–
Net interest income (NII) sensitivities to yield curve moves are calculated as changes of baseline NII over a set time
horizon, which we internally compute by assuming interest rates in all currencies develop according to their market-
implied forward rates and assuming constant business volumes and product mix and no specific management actions.
The sensitivities are measured and reported monthly.
We actively manage IRRBB, with the aim of reducing the volatility of NII subject to limits and triggers for EVE and NII
exposure at consolidated and significant legal entity levels.
The Group Asset and Liability Committee (the Group ALCO) and, where relevant, ALCOs at a legal entity level perform
independent oversight over the management of IRRBB, which is also subject to Group Internal Audit and model
governance.
›
Refer to “Group Internal Audit” in the “Corporate governance” section of this report and to “Risk measurement” in this section for
more information
Key modeling assumptions
The cash flows from customer deposits and lending products used in calculation of EVE sensitivity exclude commercial
margins and other spread components, are aggregated by daily time buckets and are discounted using risk-free rates.
Our external issuances are discounted using UBS’s senior debt curve, and capital instruments are modeled to the first call
date. NII sensitivity, which includes commercial margins, is calculated over a one-year time horizon, assuming constant
balance sheet structure and volumes, and considers embedded interest rate options.
The average repricing maturity of non-maturing deposits and loans is determined via target replication portfolios designed
to protect product margins. Optimal replicating portfolios are determined at granular currency- and product-specific levels
by simulating and applying a real-world market rate model to historically calibrated client rate and volume models.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 116
We use an econometric prepayment model to forecast prepayment rates on US mortgage loans in UBS Bank USA and
agency mortgage-backed securities (MBSs) held in various liquidity portfolios of UBS Americas Holding LLC consolidated.
These prepayment rates are used to forecast both mortgage loan and MBS balances under various macroeconomic
scenarios. The prepayment model is used for a variety of purposes, including risk management and regulatory stress
testing. Swiss mortgages and fixed-term deposits generally do not carry similar optionality, due to prepayment and early
redemption penalties.
Effect of interest rate changes on shareholders’ equity and CET1 capital
The “Accounting and capital effect of changes in interest rates” table below shows the effects on shareholders’ equity
and CET1 capital of gains and losses from changes in interest rates in the main banking book positions. We use derivatives
to hedge interest rate risks in the banking book and these reflect changes in interest rates as an immediate fair value
gain or loss, recognized either in the income statement or through OCI. Where hedged items are accrual accounted, we
aim to minimize accounting asymmetries by applying hedge accounting to reflect the economic hedge relationship.
In a rising rate scenario, we would have an initial decrease in shareholders’ equity as a result of fair value losses on our
derivatives recognized in OCI, while we would expect higher NII over time as rates increase. The effect on CET1 capital
would be much lower, as gains and losses on interest rate swaps designated as cash flow hedges are not recognized for
regulatory capital purposes.
Accounting and capital effect of changes in interest rates
1
Recognition
Shareholders’ equity
CET1 capital
Timing
Income statement / OCI
Gains
Losses
Gains
Losses
Loans and deposits at amortized cost
2,3
Gradual
Income statement
l
l
l
l
Other financial assets and liabilities measured at amortized cost
2
Gradual
Income statement
l
l
l
l
Debt issued measured at amortized cost
2,3
Gradual
Income statement
l
l
l
l
Receivables and payables from securities financing transactions
2
Gradual
Income statement
l
l
l
l
Financial assets at fair value not held for trading
Immediate
Income statement
l
l
l
l
Financial assets at fair value through other comprehensive income
Immediate
OCI
l
l
l
Derivatives designated as cash flow hedges
Immediate
OCI
4
l
l
Derivatives designated as fair value hedges
5
Immediate
Income statement
l
l
l
l
Derivatives transacted as economic hedges
Immediate
Income statement
l
l
l
l
1 Refer to the “Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital” table in the “Capital management” section of this report for more information about the differences
between shareholders’ equity and CET1 capital. 2 For fixed-rate financial instruments, changes in interest rates affect the income statement when these instruments roll over and reprice. 3 For hedge-accounted
items, a fair value adjustment is applied in line with the treatment of the hedging derivatives. 4 Excluding hedge ineffectiveness that is recognized in the income statement in accordance with IFRS Accounting
Standards. 5 The fair value of the derivatives is offset by the fair value adjustment of the hedged items. Under the fair value hedge program applied to cross-currency swaps and foreign currency debt, the foreign
currency basis spread is excluded from the hedge designation and accounted for through OCI, which is included in CET1.
Economic value of equity sensitivity
Audited |
The EVE sensitivity in the UBS Group banking book to a +1-basis-point parallel shift in yield curves was negative
USD
m as of 31 December 2025, compared with negative USD
m as of 31 December 2024. This excluded the
sensitivity of USD
m from AT1 capital instruments (as per specific FINMA requirements) in contrast to general BCBS
guidance. The exposure in the banking book of the UBS Group increased in 2025, driven by net interest income
stabilization initiatives and interest rate hedges in connection with issuances of AT1 capital instruments.
The majority of our IRRBB as of 31 December 2025 was a reflection of the net asset duration that we ran to offset our
modeled sensitivity of net USD
m (31 December 2024: USD
m) assigned to our equity, goodwill and real estate,
with the aim of generating a stable NII contribution. Of this, USD
m and USD
m were attributable to the US
dollar and the Swiss franc portfolios, respectively, (31 December 2024: USD
m and USD
m, respectively).
In addition to the aforementioned sensitivity, we calculate the six interest rate shock scenarios prescribed by FINMA. The
“Parallel up” scenario, assuming all positions were measured at fair value, was the most severe as of 31 December 2025
and would have resulted in a change in EVE of negative USD
bn, or
% of our tier 1 capital (31 December 2024:
negative USD
bn, or
%), which is well below the
% threshold as per the BCBS supervisory outlier test for high
levels of IRRBB.
The immediate effect on our tier 1 capital in the “Parallel up” scenario as of 31 December 2025 would have been a
decrease of approximately USD
bn, or
%, in our tier 1 capital (31 December 2024: USD
bn, or
%), reflecting
the fact that the vast majority of our banking book is accrual accounted or subject to hedge accounting. The “Parallel
up” scenario would subsequently have a positive effect on NII, assuming a constant balance sheet.
As the overall interest rate risk sensitivity shows a greater impact from slower asset repricing compared with faster
liabilities repricing, the “Parallel down” scenario was the most beneficial as of 31 December 2025 and would have
resulted in a change in EVE of positive USD
bn (31 December 2024: positive USD
bn) and a small positive
immediate effect on our tier 1 capital.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 117
Net interest income sensitivity
The main NII sensitivity in the banking book resides in Global Wealth Management and Personal & Corporate Banking.
We assign a target duration to our investment of equity portfolio, and Group Treasury actively manages the residual
IRRBB. This sensitivity is assessed using a number of scenarios assuming parallel and non-parallel shifts in yield curves,
with various degrees of severity, and we have set and monitor thresholds for the NII sensitivity to immediate parallel
shocks of –200 and +200 basis points under the assumption of no change to balance sheet size and product mix, stable
foreign exchange rates, and no specific management action.
›
Refer to the “Group performance” section of this report for more information about sensitivity to interest rate movements
Audited |
Interest rate risk – banking book
31.12.25
USD m
Effect on EVE
1
Effect on EVE
1
Scenarios
CHF
EUR
GBP
USD
Other
Total
Additional tier 1 capital
instruments
Total
+1 bp
(12.5 )
(1.7 )
(0.2 )
(28.5 )
(1.0 )
(43.9 )
(35.9 )
Parallel up
2
(1,770.1 )
(315.7 )
(50.4 )
(5,698.0 )
(239.3 )
(8,073.4 )
(6,581.3 )
Parallel down
2
(1,751.2 )
Steepener
3
(889.8 )
(20.6 )
(10.4 )
(1,371.3 )
(2,285.2 )
(1,949.2 )
Flattener
4
(31.4 )
(58.9 )
Short-term up
5
(169.8 )
(126.5 )
(14.6 )
(2,226.1 )
(145.6 )
(2,682.7 )
(2,037.8 )
Short-term down
6
(671.8 )
31.12.24
USD m
Effect on EVE
1
Effect on EVE
1
Scenarios
CHF
EUR
GBP
USD
Other
Total
Additional tier 1 capital
instruments
Total
+1 bp
(10.5 )
(1.4 )
(0.3 )
(24.6 )
(0.5 )
(37.3 )
(31.7 )
Parallel up
2
(1,509.7 )
(263.7 )
(65.5 )
(4,758.9 )
(95.6 )
(6,693.4 )
(5,693.0 )
Parallel down
2
(1,173.0 )
Steepener
3
(749.1 )
(10.4 )
(12.7 )
(1,255.4 )
(9.7 )
(2,037.3 )
(1,869.3 )
Flattener
4
(33.3 )
(0.2 )
(10.5 )
Short-term up
5
(149.4 )
(112.2 )
(22.8 )
(1,820.7 )
(46.1 )
(2,151.1 )
(1,666.7 )
Short-term down
6
(504.4 )
1 Economic value of equity. 2 Rates across all tenors move by ±150 bps for Swiss franc, ±200 bps for euro and US dollar, and ±250 bps for pound sterling. 3 Short-term rates decrease and long-term rates
increase. 4 Short-term rates increase and long-term rates decrease. 5 Short-term rates increase more than long-term rates. 6 Short-term rates decrease more than long-term rates.
Other market risk exposures
Own credit
We are exposed to changes in our own credit reflected in the valuation of financial liabilities designated at fair value
when our own credit risk would be considered by market participants, except for fully collateralized liabilities or other
obligations for which it is established market practice to not include an own-credit component.
›
Refer to “Note 20 Fair value measurement” in the “Consolidated financial statements” section of this report for more information
about own credit
Structural foreign exchange risk
Upon consolidation, assets and liabilities held in foreign operations are translated into US dollars at the closing foreign
exchange rate on the balance sheet date. Value changes (in US dollars) of non-US-dollar assets or liabilities due to foreign
exchange movements are recognized in OCI and therefore affect shareholders’ equity and CET1 capital.
Group Treasury uses strategies to manage this foreign currency exposure, including matched funding of assets and
liabilities and net investment hedging.
›
Refer to “Sensitivity to currency movements” in the “Capital management” section and to the “Currency management” section of
this report for more information about our exposure to and management of structural foreign exchange risk
›
Refer to “Note 24 Hedge accounting” in the “Consolidated financial statements” section of this report for more information about
our hedges of net investments in foreign operations
Investment risk
We are exposed to investment risk by holding own investments in equity securities, investment fund units and debt
instruments.
Equity investments and investment fund units
Audited |
We make direct investments in a variety of entities and buy equity holdings in both listed and unlisted companies,
with the aim of supporting our business activities and delivering strategic value to the firm. This includes investments in
exchange and clearing house memberships, as well as minority investments in early-stage fintechs and technology
companies. We may also make investments in funds that we manage in order to fund or seed them at inception or to
demonstrate that our interests align with those of investors. We also buy, and are sometimes required by agreement or
regulation to buy, securities and units from investment vehicles that we have sold to clients.
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The fair value of equity investments tends to be influenced by factors specific to the individual investments. Equity
investments are generally intended to be held for the medium or long term and may be subject to lock-up agreements.
For these reasons, we generally do not control these exposures by using market risk measures applied to trading activities.
However, such equity investments are subject to a different range of controls, including preapproval of new investments
for commercial purposes by business management and Risk Control, portfolio and concentration limits, and regular
monitoring and reporting to senior management. They are also included in our Group-wide statistical and stress-testing
metrics, which flow into our risk appetite framework.
As of 31 December 2025, we held equity investments and investment fund units totaling USD
bn (31 December 2024:
USD
bn), of which USD
bn (31 December 2024: USD
bn) was classified as Financial assets at fair value not held
for trading and USD
bn (31 December 2024: USD
bn) as Investments in associates
.
›
Refer to “Note 20 Fair value measurement” and “Note 27 Interests in subsidiaries and other entities” in the “Consolidated
financial statements” section of this report for more information
›
Refer to “Note 1 Summary of material accounting policies” in the “Consolidated financial statements” section of this report for
more information about the classification of financial instruments
Debt investments
Audited |
Debt investments classified as Financial assets measured at fair value through other comprehensive income as of
31 December 2025 can broadly be categorized as money market instruments and debt securities primarily held for
statutory, regulatory or liquidity reasons.
The risk control framework applied to debt instruments classified as Financial assets measured at fair value through other
comprehensive income depends on the nature of the instruments and the purpose for which we hold them. Our exposures
may be included in market risk limits or be subject to specific monitoring and interest rate sensitivity analysis. They are also
included in our Group-wide statistical and stress-testing metrics, which flow into our risk appetite framework.
Debt instruments classified as Financial assets measured at fair value through other comprehensive income had a fair
value of USD
bn as of 31 December 2025 (31 December 2024: USD
bn). The increase mainly reflects purchases
of HQLA.
›
Refer to “Note 20 Fair value measurement” in the “Consolidated financial statements” section of this report for more information
›
Refer to “Economic value of equity sensitivity” in this section for more information
›
Refer to “Note 1 Summary of material accounting policies” in the “Consolidated financial statements” section of this report for
more information about the classification of financial instruments
Pension risk
We provide a number of pension plans for past and current employees, some classified as defined benefit pension plans
under IFRS Accounting Standards, which can have an effect on our equity under IFRS Accounting Standards and CET1
capital.
Pension risk is the risk that defined benefit plans’ funded status might decrease, negatively affecting our capital. This can
result from decreases in the value of a plan’s assets, increases in defined benefit obligations or combinations of the above.
Important risk factors affecting the fair value of pension plans’ assets include equity market returns, interest rates, bond
yields, and real estate prices. Important risk factors affecting the present value of expected future benefit payments
include high-grade bond yields, interest rates, inflation rates, and life expectancy.
Pension risk is included in our Group-wide statistical and stress-testing metrics, which flow into our risk appetite
framework. The potential effects are thus captured in the post-stress capital ratio calculations.
›
Refer to “Note 1 Summary of material accounting policies” and “Note 25 Post-employment benefit plans” in the “Consolidated
financial statements” section of this report for more information about defined benefit plans
UBS own share exposure
Group Treasury holds UBS Group AG shares to hedge future share delivery obligations related to employee share-based
compensation awards and also holds shares purchased under the share repurchase programs. In addition, the Investment
Bank holds a limited number of UBS Group AG shares, primarily in its capacity as a market-maker with regard to
UBS Group AG shares and related derivatives, and to hedge certain issued structured debt instruments.
›
Refer to the “UBS shares” section of this report for more information
Country risk
Country risk framework
Country risk includes all country-specific events occurring in a sovereign jurisdiction that may lead to impairment of UBS’s
exposures. It may take the form of: (i) sovereign risk, which is the ability and willingness of a government to honor its
financial commitments; (ii) transfer risk, which arises if a counterparty or issuer cannot acquire foreign currencies
following a moratorium by a central bank on foreign exchange transfers; or (iii) “other” country risk. “Other” country
risk may manifest itself through increased and multiple counterparty and issuer default risk (systemic risk) or through
events that may affect a country’s standing, such as adverse shocks affecting political stability or institutional and / or
legal frameworks.
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We assign a country rating to each country, which reflects our view of its creditworthiness and of the probability of a
country risk event occurring. Country ratings are mapped to statistically derived default probabilities, described under
“Probability of default” in this section. We use this internal analysis to set the credit ratings of governments and central
banks, estimate the probability of a transfer event occurring, and establish rules on how aspects of country risk should
be incorporated in counterparty ratings of non-sovereign entities domiciled in the respective country.
Country ratings are also used to define our risk appetite regarding foreign countries. A country risk limit (i.e. maximum
aggregate exposure) applies to exposures to counterparties or issuers of securities and financial investments in the given
foreign country. We may limit the extension of credit, transactions in traded products or positions in securities based on
a country risk ceiling, even if our exposure to a counterparty is otherwise acceptable. Country limits are approved by the
Board of Directors and are delegated to the Group CEO and the Group CRO according to the country rating and limit
size.
Our country risk framework differs across the UBS Group, and alignment of approaches is part of the ongoing integration
of Credit Suisse.
For internal measurement and control of country risk, we also consider the financial effect of market disruptions arising
prior to, during and after a country crisis. These may take the form of a severe deterioration in a country’s debt, equity
or other asset markets, or a sharp depreciation of its currency. We use stress testing to assess potential financial effects
of severe country or sovereign crises. This involves the developing of plausible stress scenarios for combined stress testing
and the identification of countries that may potentially be subject to a crisis event, determining potential losses and
making assumptions about recovery rates depending on the types of credit transactions involved and their economic
importance to the affected countries.
Country risk exposure
Country risk exposure measure
The presentation of country risk follows our internal risk view, where the basis for measuring exposures depends on the
product category in which we classify the exposures. In addition to the classification of exposures into banking products
and traded products, covered in “Credit risk profile of the Group” in this section, for the UBS Group excluding certain
legacy Credit Suisse components the trading inventory is also shown.
Banking products exposure represents notional amounts. Traded products potential exposure reflects the possible impact
of market movements on both the exposure and any related collateral over the period required to close out our positions.
We do not recognize any expected recovery values when reporting country exposure; we recognize the risk-reducing
effects of master netting agreements and collateral held, which we deduct from the potential exposure values. Within
banking products and traded products, risk-reducing effects of credit protection are also taken into account.
Trading inventory includes issuer risk on securities (such as bonds and equities) and risk relating to underlying reference
assets for derivative positions. Trading inventory is managed on a net basis, and the value of long positions is netted
against that of short positions with the same underlying issuer. Net exposures are floored at zero per issuer. As a result,
potentially offsetting benefits of certain hedges and short positions across issuers are not recognized.
Country risk exposure allocation
In general, exposures are shown against the country of domicile of the contractual counterparty or the issuer of the
security. For some counterparties whose economic substance in terms of assets or source of revenues is primarily
located in a different country, the exposure is allocated to the risk domicile of those assets or revenues.
In the case of derivatives, we show the counterparty’s risk potential exposure against the counterparty’s country of risk
(presented within traded products). In addition, risk associated with an instantaneous fall in value of underlying
reference assets to zero (assuming no recovery) is shown against the country of risk of the issuer of the reference asset
(presented within the trading inventory for the UBS Group excluding certain legacy Credit Suisse components only). This
approach enables us to capture both counterparty and, where applicable, issuer elements of risk arising from derivatives
and applies comprehensively for all derivatives, including single-name credit default swaps and other credit derivatives.
Top 20 country risk exposures
The table below shows our 20 largest country exposures by product type, excluding our home country, as of 31 December
2025 compared with 31 December 2024.
Compared with 2024, our net exposure was largely stable. The list of our top 20 countries remained broadly unchanged,
with two new entries (Brazil and Austria) and the exposure to each of those two not exceeding USD 2.0bn. Based on the
sovereign rating categories, as of 31 December 2025, 84% of our emerging market country exposure was rated
investment grade, compared with 85% as of 31 December 2024.
Venezuela
As of 31 December 2025, our direct country risk exposure to Venezuela was USD 4m, solely from issuer risk exposure in
the Investment Bank.
Annual Report 2025 |
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Israel and Middle East
As of 31 December 2025, our direct country risk exposure to Israel was USD 375m, mainly from lending and collateralized
over-the-counter derivatives exposure within the Investment Bank. Our direct exposure to Gulf Cooperation Council
countries as of 31 December 2025 was USD 4.1bn, while our direct exposure to Egypt, Jordan and Lebanon was limited,
and we had no direct exposure to Iran, Iraq or Syria.
Russia
Our direct country risk exposure to Russia contributed USD 382m to our total emerging market exposure of USD 26.9bn
as of 31 December 2025. This included cash account balances and lending exposures from Non-core and Legacy. We
had no material direct country risk exposure to Belarus or to Ukraine as of 31 December 2025. Potential second-order
impacts, such as European energy security, continue to be monitored.
Top 20 country risk net exposures, by product type
USD m
Banking products
1,2
Traded products
3
Trading inventory
4,5
Total
2
31.12.25
31.12.24
31.12.25
31.12.24
31.12.25
31.12.24
31.12.25
31.12.24
United States
142,740
156,763
26,308
28,847
62,232
42,744
231,281
228,353
United Kingdom
15,383
15,745
13,981
18,112
4,294
1,880
33,658
35,737
Germany
15,054
15,247
5,891
7,162
9,067
7,796
30,012
30,205
Japan
23,439
20,131
5,147
4,757
953
931
29,539
25,819
France
2,027
2,007
3,820
4,936
8,118
7,786
13,965
14,729
Singapore
3,988
3,568
2,235
3,565
6,842
5,127
13,065
12,260
Australia
6,763
6,357
4,054
8,404
2,112
2,158
12,928
16,920
Canada
1,750
835
3,134
2,839
5,825
4,843
10,708
8,516
Luxembourg
5,730
6,360
528
1,191
107
99
6,365
7,649
China
2,063
1,662
876
1,278
2,247
1,971
5,186
4,911
Netherlands
1,447
1,830
1,732
2,572
1,868
1,044
5,047
5,446
Hong Kong
1,329
1,490
1,690
1,190
1,065
1,111
4,084
3,792
South Korea
1,232
602
679
666
2,026
3,100
3,938
4,368
Italy
1,719
1,542
897
909
1,074
904
3,689
3,355
Sweden
332
413
898
1,479
1,435
1,442
2,665
3,334
Norway
144
70
426
440
2,048
1,299
2,617
1,809
Spain
1,178
937
533
661
681
502
2,392
2,099
Brazil
439
576
644
410
804
391
1,887
1,377
Austria
271
261
468
535
1,110
654
1,850
1,450
Finland
81
76
188
303
1,341
1,335
1,610
1,713
Total top 20
6
227,109
236,472
74,129
90,256
115,249
87,117
416,486
413,842
1 Includes loans, guarantees and loan commitments. 2 Net of hedges and before deduction of IFRS 9 ECL allowances and provisions. 3 Includes counterparty risk from derivatives and securities financing transactions
measured using potential exposure, after master netting agreements, net of collateral and net of hedges. 4 Represents an issuer’s net long position, including securities and tradable obligations, such as derivatives,
which are referenced to that issuer. 5 Trading inventory exposures are for UBS Group excluding legacy Credit Suisse components only. 6 Excluding Switzerland, supranationals, global funds and ship finance
exposures.
Emerging markets net exposure, by internal UBS country rating category
1,2
USD m
31.12.25
31.12.24
Investment grade
22,610
23,170
Sub-investment grade
4,325
4,155
Total
26,935
27,325
1 We classify countries as emerging markets based on per capita GDP, historical real GDP growth, alignment with international institutions (such as the BIS, the World Bank, the IMF and the MSCI) and other factors.
2 Net of credit hedges (for banking products and for traded products); net long per issuer (for trading inventory) for the UBS Group excluding legacy Credit Suisse components only. Before deduction of IFRS 9 ECL
allowances and provisions.
Sustainability and climate risk
We define sustainability and climate risks as the risks that UBS negatively impacts, or is impacted by, climate change,
nature, human rights and other environmental and social matters. Such risks may materialize as credit, market, liquidity,
business or non-financial risks for UBS, potentially leading to adverse financial, liability or reputational impacts.
Group Risk Control is responsible for our firm-wide sustainability and climate risk framework and for managing financial
exposure to these risks as a second line of defense. Group Compliance and Operational Risk Control provides independent
oversight of our non-financial risk control environment, ensuring its adequacy and effectiveness. We manage
sustainability and climate risks through a dedicated risk management framework, which continues to evolve and is
focused on meeting emerging regulatory requirements and enhancing core processes, such as reporting and disclosures.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 121
Overseen by senior management, the framework is applied across client onboarding, transaction due diligence, product
development, our own operations and our supply chain. It is a continuous process, consisting of four phases described
in the following sections: (i) risk identification and measurement; (ii) monitoring and risk appetite setting; (iii) risk
management and control; and (iv) risk reporting and disclosure.
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more
information about our sustainability and climate risk framework and our investment approach
›
Refer to “Sustainability and climate risk policy framework” in the Supplement to the UBS Group Sustainability Report 2025,
available under “Annual reporting” at
ubs.com/investors
, for more information
Risk identification and measurement
Sustainability and climate risks are identified at divisional and cross-divisional levels. Our climate-related risk identification
methodologies and materiality assessment collectively define key focus areas and risk drivers. The insights gained
contribute to our overall sustainability and climate risk strategy by:
–
identifying concentrations of climate-sensitive exposure, which may increase vulnerability to financial and non-financial
risks, thereby guiding resource prioritization for enhanced risk quantification and management; and
–
enabling us to assist clients with their low-carbon transition and identify those who may benefit from our sustainability-
focused products and services.
The outcomes of this process guide senior management decision-making and provide stakeholders with valuable insights
through our external disclosures.
›
Refer to “Managing sustainability and climate risks” in the UBS Group Sustainability Report 2025, available under “Annual
reporting” at
ubs.com/investors
, for more information
Our approach to climate-related risk identification
Our methodologies are designed to assess how susceptible clients and assets are to climate risks, focusing on the potential
financial impacts that could arise from policy changes, technological shifts, market evolution in the context of transition
risk and climate-related hazard events in the context of physical risk. These assessments evaluate the magnitude of
climate-related risk drivers affecting a counterparty or asset class, helping us determine how such risks may influence
creditworthiness, collateral values and broader portfolio exposure.
1
For corporate clients, when counterparty-level information is available and of sufficient quality, a bottom-up methodology
is used. The methodology includes the counterparty’s measures and actions in place to mitigate transition risks
summarized through UBS’s internal Company Transition Assessment Scorecard and the exposure of their assets to physical
hazards. When counterparty-level information is not available, a top-down methodology is used for transition and
physical risks based on both the country of risk domicile and the internal UBS industry classification (Group Industry
Code 2).
For Lombard lending, an overall portfolio rating is assigned based on the average riskiness of the collaterals that are
posted securing the loans. In 2025, UBS developed a global real estate model to provide a counterparty-level rating across
transition and physical risks in the real estate portfolio. Together, these methodologies enable UBS to assess how transition
and physical risks may influence the risk profiles of clients and provide a consolidated view of the UBS Group exposure
to climate-related risks.
Transition risk
Climate-driven transition risks arise from the transition to a sustainable economy, in particular its decarbonization, for
example due to changes in policy, case law, technology or in the behavior of market participants. This may contribute to
a structural change across economies and consequently affect banks and the stability of the wider financial sector.
In 2025, the key sectors contributing to the UBS Group’s transition-risk-sensitive exposure continued to be real estate,
industrials and transportation, unchanged from 2024.
Physical risk
Climate-driven physical risks arise from acute hazards, which are increasing in severity and frequency, and chronic risks,
which arise from an incrementally changing climate. Climate-driven physical risks may contribute to a structural change
across economies and consequently affect banks and the stability of the wider financial sector.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 122
In 2025, Switzerland and the Americas were the largest contributors to the UBS Group’s physical-risk-sensitive exposure,
with both regions demonstrating relatively high adaptive capacity to manage physical risk hazards, resulting in a
moderately low overall physical risk rating.
›
Refer to “Managing sustainability and climate risks” in the UBS Group Sustainability Report 2025, available under “Annual
reporting” at
ubs.com/investors
, for more information about the UBS Group’s climate risk profile
Climate scenario analysis and stress testing
We apply scenario-based approaches to assess our exposure to transition and physical risks arising from climate change.
We have introduced several in-house assessments leveraging industry collaborations to tailor approaches for addressing
methodological and data challenges. We employ dedicated climate risk models that are designed to capture both
systematic and idiosyncratic effects to perform stress-testing exercises across short-, medium- and long-term horizons.
The work performed includes regulatory scenario analysis and stress-testing exercises. These include, for example, the
Bank of England 2021 Climate Biennial Exploratory Scenario, the 2022 European Central Bank climate risk stress test
(which assesses banks’ preparedness for dealing with financial and economic shocks stemming from climate risk) and the
2024 Swiss Financial Market Supervisory Authority (FINMA) and Swiss National Bank climate scenario analysis exercise.
These exercises facilitated the identification of financial risks from climate change. They also made it possible for UBS to
assess management actions in response to different scenario results and perform a counterparty-level analysis. Although
the results indicated mild losses and low exposure for the entities and portfolios in scope, they provided valuable insights
to strengthen UBS’s climate risk scenario analysis and stress testing.
In 2025, we further refined and expanded our internal climate risk scenarios and enhanced the dedicated climate risk
methodologies. Furthermore, we conducted a Group-wide climate scenario analysis to guide the materiality assessment
of climate-related risks, meeting the FINMA Circular 2026/1 “Nature-related financial risks” (published by FINMA in
December 2024) requirements on nature-related financial risks. A range of climate scenarios in line with UBS’s business
model were used, including a stress scenario, under which the lack of coordinated mitigation efforts places the planet on
a 3°C-warming trajectory by 2100.
Over the last few years, we have also leveraged industry-wide initiatives, such as the Paris Agreement Capital Transition
Assessment exercise launched by the Swiss Federal Office for the Environment in 2020, 2022 and 2024. Through this
exercise, we assessed the climate alignment of our listed investments (including equities and bonds), mortgages and
direct real estate portfolios. The assessment enabled us to compare our results with the aggregated performance of all
participating banks’ portfolios, showing the progress made over time and the efforts still needed.
Materiality of climate-related risks across risk categories
UBS conducts a financial risk materiality assessment of climate-related risk drivers, complementing its regular risk
identification processes described above. This climate-related materiality assessment evaluates how transition and physical
risk drivers may affect UBS’s risk categories: credit, market, liquidity, business and non-financial risks.
In 2025, the materiality assessment for climate risks was enhanced and performed based on a combination of qualitative
and quantitative inputs (including climate scenario analysis and exposures to climate-sensitive sectors), from both an
inherent and residual perspective. Inherent risk refers to the level of risk that exists in the absence of any climate-related
controls or mitigation actions, whereas residual risk refers to the level of risk after taking them into account.
Materiality was assessed across the short (one year), medium (two to five years) and long term (more than five years) to
capture the dynamic nature of climate risk exposure.
The table below summarizes whether transition and physical risks are considered material or not material on an inherent
basis, for each risk category and time horizon under a stress case scenario.
Overview of inherent material risks under stress case scenarios
Risk type
Time horizon
Credit
Market
1
Liquidity
2
Business
3
Non-financial risk
Physical risk
Short-term
Not material
Not material
Not material
Not material
Not material
Medium-term
Not material
Not material
Not material
Long-term
Material
Not material
Transition risk
Short-term
Material
Not material
Material
Material
Not material
Medium-term
Material
Material
Material
Long-term
Material
Material
1
long-term climate transition. The banking book scenario time horizon is aligned with the liquidity portfolio (high-quality liquid assets) and existing internal liquidity adequacy assessment process (ILAAP) stress tests,
which operate on a one-year horizon. This alignment ensures consistency with regulatory expectations and reflects the relatively stable nature of banking book exposures. Therefore, market risk has not been assessed
in the medium and long terms.
2
considered long term for liquidity purposes and is in alignment with the time horizon of the funding regulatory metric, the net stable funding ratio (one year). Therefore, liquidity risk has not been assessed in the medium
and long terms.
3
Business risk is assessed for a three-year time horizon in line with the three-year strategic plan. Therefore, business risk has not been assessed in the long term.
Inherent credit risk is assessed as material under stress-case scenarios, primarily due to the expected long-term impacts
of chronic physical hazards on macroeconomic developments in the real estate sector (physical risk) and also due to
regulatory uncertainty, which may require significant investments and impact credit quality for the real estate sector and
for corporate lending exposures to sectors deemed climate-sensitive (transition risk).
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 123
Inherent liquidity risk is assessed as material under stress-case scenarios, reflecting potential for abrupt shifts in regulatory
conditions, resulting in economic disruptions that could trigger significant outflows, elevated funding costs or impaired
access to capital markets (transition risk).
Inherent business risk is assessed as material under stress-case scenarios, considering the potential financial impacts of a
sudden and disorderly climate transition resulting in economic disruptions, which could reduce the value of assets and
recurring fee income, and increased market uncertainty, which could lower deal flow and transaction-based fees
(transition risk).
All material financial risks are primarily driven by indirect climate impacts, such as macroeconomic impacts from climate
change, as opposed to direct climate impacts on counterparties or assets.
Inherent non-financial risk is assessed as material under stress-case scenarios, due to ongoing regulatory scrutiny and the
evolving legal landscape around climate and sustainability requirements and disclosures, which can expose UBS to
litigation risk, regulatory penalties and reputational damage in the event of non-compliance or perceived greenwashing
(transition risk).
Across all risk types, climate-related risks are assessed as not material on a residual basis (after considering our standard
climate-related controls / mitigation actions), with the exception of non-financial risk in the long term. The latter risk
remains material even after mitigating controls are taken into account, due to persistent political uncertainty and
diverging regulatory requirements across jurisdictions, which lead to heightened legal and litigation risks (transition risk).
Material risks were fed into the regular risk identification process, and a climate root cause driver was added, where
relevant.
›
Refer to “Managing sustainability and climate risks” in the UBS Group Sustainability Report 2025, available under “Annual
reporting” at
ubs.com/investors
, for more information
Monitoring and risk appetite setting
UBS has established a qualitative and quantitative risk appetite, which is subject to periodic monitoring and
enhancements. The risk appetite guides decision-making and supports proactive management of exposures to climate-
sensitive sectors.
The climate-related risk metrics below help us monitor our exposure to key transition and physical risk drivers across
portfolios, highlighting where climate-related vulnerabilities may influence our overall risk profile. UBS will continue to
develop these metrics, ensuring alignment with regulatory expectations and industry-leading practices.
›
Refer to “Managing sustainability and climate risks” in the UBS Group Sustainability Report 2025, available under “Annual
reporting” at
ubs.com/investors
, for more information about the transition and physical risk drivers
Climate-related risk metrics
The table below includes climate-related risk metrics for the UBS Group, UBS AG on a standalone basis, UBS Switzerland
AG on a standalone basis and UBS Europe SE on a standalone basis.
In 2025, UBS developed the global real estate (GRE) model, enabling asset-level sensitivity assessments for real estate
financing and the private clients with mortgages portfolio, impacting both transition- and physical-risk-sensitive
exposures.
Climate-driven transition-risk-sensitive exposure accounted for 24.6% of the UBS Group’s total gross lending exposure,
up from 21.0% based on the revised
2
UBS’s Swiss residential and commercial real estate decarbonization targets to identify properties that rely on fossil fuel
heating systems and are not progressing in line with UBS’s decarbonization pathway as sensitive.
Climate-driven physical-risk-sensitive exposure accounted for 13.8% of the UBS Group’s total gross lending exposure, up
from 12.8% based on the revised
2
physical risk rating by assessing building-level exposures to a physical risk hazard.
Carbon-related assets accounted for 9.7% of the UBS Group’s total gross lending exposure, down from 10.9% in 2024.
However, on an absolute basis, carbon-related assets remained largely flat year on year.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 124
Risk management – Climate-related metrics
For the year ended
31.12.25
31.12.24
Climate-related metrics (USD bn)
Total exposure to climate-sensitive sectors, transition risk UBS Group AG consolidated
1,2
192.9
147.5
Climate-sensitive sectors, transition risk, proportion of total gross lending exposure, UBS Group AG consolidated (%)
1,2
24.6
21.0
Total exposure to climate-sensitive sectors, transition risk UBS AG (standalone)
1,2
31.6
36.2
Total exposure to climate-sensitive sectors, transition risk UBS Switzerland AG (standalone)
1,2
154.5
103.5
Total exposure to climate-sensitive sectors, transition risk UBS Europe SE (standalone)
1,2
0.0
0.0
Exposure to climate-sensitive sectors, transition risk: Traded products, UBS Group AG consolidated
3
1.4
2.1
Exposure to climate-sensitive sectors, transition risk: Issuer risk, UBS Group AG consolidated
4
8.8
6.8
Total exposure to climate-sensitive sectors, physical risk: UBS Group AG consolidated
1,2,5
108.5
89.6
Climate-sensitive sectors, physical risk, proportion of total gross lending exposure, UBS Group AG consolidated gross (%)
1,2
13.8
12.8
Total exposure to climate-sensitive sectors, physical risk UBS AG (standalone)
1,2,5
64.4
65.0
Total exposure to climate-sensitive sectors, physical risk UBS Switzerland AG (standalone)
1,2
56.9
43.5
Total exposure to climate-sensitive sectors, physical risk UBS Europe SE (standalone)
1,2
0.0
0.0
Exposure to climate-sensitive sectors, physical risk: Traded products, UBS Group AG consolidated
3
2.9
3.3
Exposure to climate-sensitive sectors, physical risk: Issuer risk, UBS Group AG consolidated
4
14.4
12.6
Carbon-related assets: UBS Group AG consolidated
1,6
76.1
76.5
Carbon-related assets proportion of total gross lending exposure, UBS Group AG consolidated gross (%)
1,6
9.7
10.9
Carbon-related assets: UBS AG (standalone)
1,6
26.2
30.3
Carbon-related assets: UBS Switzerland AG (standalone)
1,6
51.6
46.6
Carbon-related assets: UBS Europe SE (standalone)
1,6
0.0
0.0
1
Gross lending exposure consists of total on-balance sheet loans and advances to customers and off-balance sheet guarantees and irrevocable loan commitments (within the scope of expected credit loss) and is
based on consolidated and standalone information reported under IFRS Accounting Standards (inclusive of purchase price allocation adjustments recorded in UBS as a result of the acquisition of the Credit Suisse
Group in compliance with IFRS 3, Business Combinations).
2
Comparative figures have been revised following the development of the global real estate model. The revision applies to the exposure booked on the
UBS platform only and not to the exposure on the legacy Credit Suisse platform. Consequently, the previously reported transition risk exposure has been revised as follows: UBS Group AG (consolidated) to USD 147.5bn
from USD
120.3bn; UBS AG (standalone) to USD 36.2bn from USD 36.6bn; UBS Switzerland AG (standalone) to USD 103.5bn from USD 83bn; and UBS Europe SE (standalone) remained unchanged following the
revision. The transition risk proportion of total gross lending exposure, UBS Group AG consolidated (%) was revised to 21% from 17.1%. In addition, the previously reported physical risk exposure has been revised
as follows: UBS Group AG (consolidated) to USD 89.6bn from USD 68.9bn; UBS AG (standalone) to USD 65.0bn from USD 65.7bn; UBS Switzerland AG (standalone) to USD 43.5bn from USD 22.6bn; and UBS Europe
SE (standalone) to USD 28.3m from USD 24.3m. The physical risk proportion of total gross lending exposure, UBS Group AG consolidated gross (%) was revised to 12.8% from 9.8%.
3
metric is calculated using over-the-counter derivatives, exchange-traded derivatives and securities financing transactions, consisting of securities borrowing and lending, and repurchase and reverse repurchase
agreements.
4
5
(standalone) includes loans and advances to UBS subsidiaries that are classified as sensitive based on its sector and country of risk in the absence of asset-level data. These subsidiaries transact with third parties and
the sensitivity of that exposure facing external counterparties is assessed and included in the banking products, traded products or issuer risk exposure metrics in the UBS Group disclosure.
6
Carbon-related assets
are defined as concentrations of credit exposure to assets tied to the four non-financial sector groups as defined by the Task Force on Climate-related Financial Disclosures (the TCFD), using the Global Industry
Classification Standard. These four groups are: (i) energy; (ii) transportation; (iii) materials and buildings; and (iv) agriculture, food and forest products. This metric is agnostic of risk rating.
Risk management and control
UBS has integrated climate risk considerations into its traditional risk management and control framework to ensure that
material risks are systematically assessed, monitored and mitigated across traditional risk categories. This integration
supports a consistent and forward-looking approach, aligned with regulatory expectations and international best
practices.
Our approach is designed to support the ongoing management of climate-related risks as they manifest across traditional
risk categories and has been built in line with principles outlined by the Basel Committee on Banking Supervision (the
BCBS) and the Task Force on Climate-related Financial Disclosures (the TCFD). As FINMA has mandated financial
institutions in categories 1 and 2 to implement material climate-related financial risks in their due diligence processes
from 1 January 2026, at the latest, (Circular 2026/1 “Nature-related financial risks”, published by FINMA in December
2024), UBS has embedded the management of these risks within each traditional risk category. The following outlines
how UBS manages climate-related risks within each risk category.
Credit risk
Credit risk refers to potential credit losses that may arise from climate-related risks (both transition and physical)
materializing due to the impacts of a changing climate and the global shift toward a low-carbon economy. These risks
can affect the financial position of UBS’s counterparties, for example when such impacts impair a borrower’s capacity to
meet its financial obligations the likelihood of credit losses increases.
At the transaction level, proprietary climate risk rating methodologies and company-specific due diligence questions
support the identification and assessment of climate-related risks in credit approvals and reviews. In 2025, integration
efforts centered on lending to corporate clients. Targeted training equipped the first and second lines of defense with
the tools and capabilities to incorporate climate-related risk into their credit assessments. Another important priority was
embedding counterparty-level climate risk rating model outputs into strategic IT systems, facilitating seamless integration
within the credit approval workflow.
At the portfolio level, an enhanced approach for concentration monitoring of collateral in climate-sensitive sectors has
been introduced for Global Wealth Management and relevant parts of the Investment Bank. We are continuing to
enhance and automate quarterly risk reporting to strengthen oversight and transparency
.
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Liquidity risk
Liquidity risk refers to the potential impact on liquidity adequacy driven by risks from the transition to a low-carbon
economy and a changing physical climate. These risks represent an additional driver of liquidity risk and can influence
our ability to raise funds, liquidate assets or respond to changes in clients’ liquidity demands. Such impacts could lead to
increased net cash outflows or depletion of our liquidity buffer.
Climate-related risk considerations have been integrated into UBS’s liquidity management framework by introducing
climate risk stress-testing and reporting, leveraging the heatmaps and counterparty-level climate risk rating models to
assess potential impacts. The identification and integration of material climate-related risks into our liquidity risk
management framework is an iterative process, reflecting the evolving nature of climate science, regulatory expectations
and data availability. As methodologies mature and industry-wide data quality improves, UBS continues to enhance its
approach through advanced analytics and scenario-based insights. Liquidity risk is further mitigated through the
maintenance of robust high-quality liquid asset buffers, comprehensive stress-testing under diverse scenarios and access
to diversified funding sources.
Business risk
Business risk may be affected by climate-related impacts, which can influence performance through several channels.
These include potential reduction in net interest income, decreases in asset value and recurring fee income, and
heightened market uncertainty that could lower deal flow and transaction-based fees. Such factors underscore the
potential financial implications of climate change on our business model.
These risks are managed and mitigated through UBS’s Group-wide sustainability and impact strategy, which aligns long-
term commercial objectives with climate-related goals and regulatory expectations. This strategic alignment helps ensure
that UBS remains resilient in the face of evolving sustainability challenges and market dynamics. Finally, climate-related
risks, issues and opportunities and their impact on business and strategy are incorporated into the firm’s financial planning
process.
Non-financial risk
Non-financial risk, including reputational risk, can be influenced by climate-related risks. These may stem from inadequate
or failed internal processes, systems or human error, or from external factors, such as physical climate events, stakeholder
legal actions related to climate issues or concerns about our response to climate change and the transition to a low-
carbon economy. Such risks can impact compliance, operational resilience and financial crime prevention, potentially
resulting in significant non-financial consequences for UBS.
In line with the BCBS’s principles, UBS has integrated climate-related risks into the non-financial risk framework.
Environmental, social and governance (ESG) risks, including climate, are considered within UBS’s Group-wide non-
financial risk identification model. UBS is continuing to develop this framework in alignment with its commercial strategy
and industry expectations, including the integration of ESG risks into the non-financial risk taxonomy and risk appetite
statements. Additionally, UBS maintains a reputational risk framework with clearly defined roles and responsibilities,
escalation requirements and review and approval authorities. Reputational risk (including sustainability-related
reputational risks, such as greenwashing risk) is considered across all business activities, transactions and decisions.
›
Refer to “Integration of climate risk into the traditional risk management framework” in the UBS Group Sustainability Report
2025, available under “Annual reporting” at
ubs.com/investors
, for more information about the progress regarding our
sustainability and climate risk framework in 2025
Risk reporting and disclosure
Sustainability and climate risk considerations are embedded in UBS’s quarterly risk reporting cycles, facilitating transparent
reporting across the firm, key legal entities and the business divisions. This process includes:
–
transactions referred to the Sustainability and Climate Risk unit;
–
climate-sensitive sector activities leveraging our proprietary climate risk heatmaps and rating models through an
automated reporting process;
–
financed emissions and emissions intensities and their utilization against defined risk tolerance thresholds at the Group,
business division and sector levels; and
–
regulatory monitoring on sustainability and climate risks.
UBS prepares annual external disclosures on sustainability and climate risks, in alignment with regulatory requirements
including the recommendations of the TCFD.
›
Refer to the “Sustainability and climate risk policy framework” section of the Supplement to the UBS Group Sustainability Report
2025, available
at ubs.com/sustainability-reporting
1
our risk identification and measurement approaches.
2
The revised 2024 figures do not include the revision of legacy Credit Suisse exposure integrated into the target UBS platform during 2025.
Annual Report 2025 |
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Non-financial risk
Non-financial risk includes our main risk categories: compliance risk, financial crime risk, operational risk, legal risk and
reputational risk. Compliance risk, financial crime risk and operational risk are independently overseen by Group
Compliance and Operational Risk Control (GCORC) and are covered in this section. Legal and reputational risks can
materialize across these three risk clusters, with legal risks overseen by Group Legal and reputational risk by control
functions.
›
Refer to “Risk categories” in this section for more information about our main non-financial risk categories
›
Refer to “Top and emerging risks” in this section for more information about legal and reputational risk
Compliance risk
We are committed to achieving fair outcomes for our clients, upholding market integrity and cultivating the highest
standards of employee conduct. To support these objectives, we maintain a Group-wide conduct risk framework designed
to promote consistent standards and foster a strong culture of accountability.
We continue to prioritize areas such as suitability risk, market conduct, product governance, cross-divisional service
offerings, quality of advice and price transparency. These remain key focus areas for UBS and the wider financial sector.
Cross-border risk (including the risk of unintended permanent establishment) remains an area of regulatory attention for
global financial institutions, including a focus on market access, such as third-country market access to the European
Economic Area. We maintain a series of controls designed to address these risks.
Regulatory fragmentation related to environmental, social and governance topics, and the elevated risk of greenwashing
arising from our service offering, disclosures and commitments remain key risks for 2026.
›
Refer to “Top and emerging risks” in this section for more information
Financial crime risk
Financial crime, including money laundering, terrorist financing, sanctions violations, fraud, bribery and corruption,
presents a major risk, as technological innovation and geopolitical developments increase the complexity of doing
business and heightened regulatory attention continues.
An effective financial crime prevention program therefore remains essential, and we continue to focus on enhancements
to our global anti-money-laundering, know-your-client and sanctions programs. Money laundering and financial fraud
techniques are becoming increasingly sophisticated, and heightened geopolitical volatility makes the sanctions landscape
more complex. We continue to take into consideration the risks of illicit finance proceeds and sanctions circumvention
typologies stemming from geopolitical developments, political changes in a number of countries and evolving armed
conflicts.
›
Refer to “Top and emerging risks” in this section for more information
Operational risk
There is an increased risk of cyber-related operational disruption to business activities at our locations and those of third-
party suppliers due to the increasingly dynamic threat environment. This is intensified by current geopolitical factors and
evidenced by the continuing high volumes and increasing sophistication of cyberattacks against financial institutions
globally and on third-party service providers. A notable example of this is a previously disclosed data breach at Chain IQ,
one of our third-party suppliers. Our incident review has not identified any impact on UBS’s clients or systems, but the
data breach included the exposure of certain non-sensitive UBS employee and vendor information.
We remain on heightened alert to respond to and mitigate elevated cyber- and information-security threats and continue
to invest in improving our technology infrastructure and information-security governance to strengthen our prevention,
detection and response capabilities against attacks. In addition, we operate a global framework designed to drive
enhancements in operational resilience across all business divisions, and we work with the third-party service providers
that are of critical importance to our operations to assess their operational resilience in line with our standards and to
mitigate any identified risks.
UBS manages cyber and other risks associated with the use of third parties (including outsourcing) through policies such
as the Third Party Risk Management (TPRM) Policy and the Global Procurement and Vendor Management Policy. These
aim at managing third-party risk by appropriate risk controls and independent arrangements. UBS also transfers risk
centrally, by means of insurance contracts, analyzing and securing insurance coverage that meets the Group’s global
needs and complies with local requirements.
The increasing interest in data-driven advisory processes and the use of forms of artificial intelligence (AI), such as
generative AI and machine learning, are introducing new questions related to the fairness of AI algorithms, data life-cycle
management, data ethics, data privacy and security, and records management. We have established an AI framework
and policy including risk appetite metrics and enhanced controls to support the mitigation of these risks.
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Further progress has been made with client and data migration, and the wind-down of legacy Credit Suisse businesses
and infrastructure. The risks relating to the operational complexity and the effective management of businesses in wind-
down and application decommissioning continue to be carefully monitored, in addition to the delivery of consolidated
financial and regulatory reporting submissions.
›
Refer to “Top and emerging risks” in this section for more information
Non-financial risk framework
We follow a Group-wide non-financial risk framework that establishes requirements for identifying, controlling,
managing, assessing and mitigating compliance risk, financial crime risk and operational risk to maintain the safety and
soundness of the firm and to protect its financial position and reputation. The framework is built on the following pillars:
–
classifying inherent risks through 19 non-financial risk taxonomies, which define the universe of non-financial risks
that can arise as a consequence of our business activities and external factors;
–
performing control assurance activities, including self-assessing the design and operating effectiveness of controls,
first- and second-line-of-defense control reviews, and independent control testing;
–
defining the non-financial risk appetite (including relevant indicators for each non-financial risk taxonomy) and
assessing risk exposure against appetite;
–
assessing inherent and residual risk through risk assessment processes and determining whether additional remediation
plans are required to address identified deficiencies; and
–
reporting transparently and objectively on non-financial risks.
Divisional Presidents are accountable for the effectiveness of non-financial risk management and for the robustness of
the front-to-back control environment within their business divisions, and legal-entity-responsible executives are in charge
of non-financial risk management within their legal entities. Group function heads are accountable for supporting the
divisional Presidents and legal-entity-responsible executives of our legal entities in the discharge of this responsibility, by
ensuring completeness and effectiveness of the control environment and non-financial risk management within their
Group functions. Collectively, divisional Presidents, central Group function heads and legal-entity-responsible executives
are in charge of implementing the non-financial risk framework.
GCORC owns the firm’s non-financial risk framework and is responsible for providing an independent and objective view
of the adequacy of non-financial risk management across the Group and ensuring that compliance risk, financial crime
risk and operational risk are understood, owned and managed in accordance with our risk appetite. Business- or function-
aligned Compliance and Operational Risk Control teams are embedded within the GCORC function, reporting to the
Group Chief Compliance and Operational Risk Control Officer, a member of the Group Executive Board (the GEB).
All functions within UBS are required to periodically assess the design and operating effectiveness of key internal non-
financial risk controls. Key control deficiencies identified during the internal control and risk assessment processes must
be reported in the non-financial risk inventory, and sustainable remediation must be defined and executed. These control
deficiencies are assigned to owners at senior management level and the remediation progress is reflected in the respective
managers’ annual performance measurement and objectives. To assist with prioritizing the most material control
deficiencies and measuring aggregated risk exposure, irrespective of origin, a common rating methodology is applied
across all three lines of defense, as well as by external audit.
UBS is committed to transparent reporting of non-financial risks, providing clear and reliable information to support
decision-making by executive management and the board of directors. Key reports cover the Group and risk-taking
business divisions and significant group entities, with strong data governance standards ensuring high-quality, timely, and
comprehensive reporting.
The non-financial risk framework forms the common basis for managing and assessing compliance risk, financial crime
risk and operational risk, and there are additional GCORC activities intended to demonstrate compliance with applicable
laws, rules and regulations. Furthermore, non-financial risk mitigation is supported by a comprehensive set of policies
and procedures (including risk culture, risk appetite and outsourcing) that are governed under our global governance
document framework.
›
Refer to “Risk appetite framework” in this section for more information about risk appetite and risk culture
›
Refer to “Operational risk” in this section for more information about outsourcing
Reputational risk management
Our reputation is ultimately defined by our ability to adhere to the three keys: our
Pillars
,
Principles
Behaviors
. In
accordance with our Code of Conduct and Ethics, it is the responsibility of the Board of Directors (the BoD) and each
employee to refrain from any conduct which may pose a risk to our reputation.
›
Refer to “Employees” in the “Our stakeholders” section of this report for more information about our Pillars, Principles and
Behaviors
›
Refer to the Code of Conduct and Ethics of UBS, available at
ubs.com/code
, for more information
All employees are responsible for carefully evaluating the risk to UBS’s own reputation that may result from any business
activities. Reputational risk is considered as part of standard risk identification and assessment processes governed by
relevant frameworks relating to new and existing clients, transactions, products and services. The business divisions and
Group functions have primary responsibility for identifying, assessing and managing reputational risk.
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Cybersecurity and information security
Risk management and strategy
Cybersecurity and information-security (CIS) risk is the risk that a malicious internal or external act, a failure of technology,
or human error materially compromises the confidentiality, integrity or availability of UBS’s data, systems or services.
CIS risk is a key operational risk for UBS and is managed within our enterprise risk management framework. We apply a
layered defense model, spanning prevention, detection, response and recovery, supported by our global Cybersecurity
Operations Centers, advanced technology and independent oversight. Our approach integrates governance, risk
assessment, controls testing, incident management and continuous training of our workforce (i.e. our internal employees
and external staff) to strengthen our ability to manage the assets of clients and of the firm.
›
Refer to “Risk governance” in this section for information about our risk governance framework
In line with our overall non-financial risk management framework, we take a cross-functional approach to addressing
CIS risk. Our risk control framework follows the three-lines-of-defense model. Group Technology establishes the policies
and procedures designed to safeguard our information systems and the information those systems collect and process.
The business divisions, together with Group Technology, are then responsible for implementing those policies and
procedures as part of the first line of defense. GCORC leads the second line of defense, by convening and consulting
with additional control functions to provide independent oversight, and challenges the first line’s CIS framework and
implementation. As the third line of defense, Group Internal Audit conducts independent reviews and validates the first-
line and second-line processes and functions.
accountability for the Group-wide CIS program. The CIS-C is jointly chaired by the Group Chief Operating Officer (the
Group COO) and the Group Chief Compliance and Operational Risk Control Officer. The Group Chief Information Security
Officer (the Group CISO), who reports to both the Group COO and the Group Chief Compliance and Operational Risk
Control Officer, is a permanent member of the CIS-C. The committee meets monthly and serves as a platform for
interaction across the three lines of defense for the identification and effective governance of CIS strategy, risks and
regulatory obligations.
CIS program
Our CIS program is led by the Group CISO. The CIS program is designed to protect and maintain the integrity and
availability of our technology infrastructure and the confidentiality and integrity of our information. It is aligned to an
industry standard framework established by the Cyber Risk Institute across seven functional domains: govern, identify,
protect, detect, respond, recover and extend. This framework provides a comprehensive model for financial institutions
to assess, manage and mature their cyber-risk posture, connecting controls to compliance and operational needs.
Our Group CISO, senior management within Group Technology and management personnel overseeing the CIS program
all have substantial relevant expertise in the areas of cybersecurity and information security. Our CIS program includes,
but is not limited to, the following capabilities.
–
Threat intelligence:
cyber-threat intelligence team analyzes such information and uses it to enhance existing defense capabilities, to
respond to identified threats and to adjust our CIS strategy where needed. The team’s remit includes providing
research, analysis and advice on CIS risks associated with emerging technologies, including AI. This threat intelligence
capability was strengthened in 2025 with the formation of a cross-function Geopolitical Risk Intelligence Forum and
the introduction of an AI-led horizon scanning capability.
–
Preventative and detection controls:
cyberattacks. Defenses include system hardening, firewalls, intrusion prevention and detection systems, and other
controls. External network connections are identified and recorded in an inventory. Access rights are defined for
information assets, and IT systems and applications enforce authentication. We maintain access controls and approval
processes designed to prevent unauthorized access.
–
Cyber-defense and incident response capabilities:
24/7 real-time monitoring, detection and response capabilities for cyberattacks and acting as the primary interface for
cybersecurity events. Incidents assessed as having the potential to adversely affect our critical operations are subject
to mandatory management notification. If assessed as potentially significant, cybersecurity and data incidents are
managed under our crisis management framework.
–
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–
Monitoring and testing:
vulnerability assessments, penetration and testing engagements based on specific threat scenarios that simulate tactics,
techniques and procedures that might be used against our systems, as mandated by our policies. This includes testing
by internal and external red teams (simulating attacks by potential adversaries). Actual security-related events are
directly correlated with threat scenarios to monitor and detect potential threats, such as network-intrusion and
malware-driven events. Our deployed security measures are designed with the objective of isolating and containing
threats that are detected to allow for effective incident response and analysis.
–
Education and training:
All UBS staff, including our external personnel, receive appropriate CIS awareness training,
commensurate with their roles and responsibilities.
CIS assessment framework
Our CIS assessment framework includes internal and external cybersecurity risk assessments for applications and bank
processes alongside a structured risk assessment process of third-party service providers. These processes are designed,
along with our security capabilities, to support business objectives and priorities.
We conduct assessments to evaluate and test our CIS program and provide guidance on operating and improving the
program, including the design and operational effectiveness of the security and resiliency of our information systems.
Our assessments, along with our threat intelligence capabilities, are used to assess and prioritize programs to improve
our security, our incident response capabilities and our operational resilience. As the cyber-threat landscape evolves at an
increasing pace, we continuously seek to enhance our CIS controls to meet developing threats. We have ongoing
programs that are intended to increase our CIS maturity across various dimensions, including governance, identification,
protection and detection, as well as cyberattack response and recovery, and risk from third-party service providers.
We recognize that in today’s world it is not feasible to completely eliminate the risk of a future cyberattack, but, by using
a risk-based approach, we work toward reducing the likelihood of a successful attack and toward mitigation of the
potential business impact of such an attack.
The BoD, its Risk Committee and the GEB receive regular updates and reports throughout the year from our Group COO
and our Group CISO on internal and external CIS developments, threats and risks. In addition, on a quarterly basis, the
BoD receives reports on the performance of CIS risk appetite metrics, including metrics on vulnerabilities and third-party
CIS risks and incidents, and is notified promptly if a BoD-level CIS risk limit is breached. The Risk Committee of the BoD
and the GEB also receive regular updates on CIS strategy, risks and alignment with regulatory requirements.
›
Refer to “Crisis management framework” in the “Regulation and supervision” section of this report for more information about
our crisis management framework
Non-financial risk capital measurement
The non-financial risk framework underpins the calculation of regulatory capital for operational risk, which enables us to
quantify non-financial risks and define effective risk-mitigating management incentives as part of the related operational
risk capital allocation approach to the business divisions.
The advanced measurement approach (AMA), previously utilized to determine regulatory capital requirements for non-
financial risks, was replaced by the standardized approach for determining regulatory capital on 1 January 2025, based
on the final Basel Committee on Banking Supervision (BCBS) Basel III standards and related FINMA guidance. In line with
the implemented standards, we continue to update annually the related regulatory capital. Revenue data and information
on non-financial risk events are sourced from our financial accounting and risk systems.
›
Refer to “Risk-weighted assets” in the “Capital management” section of this report for more information about the capital
impacts from the adoption of the final Basel III standards on 1 January 2025
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Model risk
Main sources of model risk
We rely on models to inform risk management and control decisions, to measure risks or exposures, to value instruments
or positions, to conduct stress testing, to assess adequacy of capital, and to manage clients’ assets and our own assets.
Models may also be used to measure and monitor compliance with rules and regulations, for surveillance activities, and
to meet financial or regulatory reporting requirements. Our artificial intelligence (AI)-based solutions may rely on models,
and models may include functionalities defined as AI.
Model risk is defined as the risk of adverse consequences (e.g. financial losses or reputational damage) resulting from
incorrect or misused models. AI-specific risks are managed in conjunction with other relevant risk frameworks, and specific
guidelines for the recognition of those risks apply.
Overview of measurement, monitoring and management techniques
Our model governance framework establishes requirements for identifying, measuring, monitoring, reporting, controlling
and mitigating model risk. All the models that we use are subject to governance and controls throughout their life cycles,
with rigor, depth and frequency determined by the model’s materiality and complexity. This is designed to ensure that
risks arising from model use are identified, understood, managed, monitored, controlled and reported on both a model-
specific and an aggregated level. Before approval for use is granted, models are independently validated.
Once approved for use, a model is subject to ongoing model monitoring, regular model confirmation and periodic
revalidation, ensuring that the model is only used if it continues to be fit for purpose.
Our model risk governance framework follows our overarching risk governance framework along the three lines of
defense, with: (i) the business divisions and Group functions (including Risk Control, Finance and Compliance) responsible
for the development, maintenance and appropriate use of the models; (ii) the Model Risk Management and Control
function, headed by the Chief Model Risk Officer, responsible for independent review, oversight and challenge of the
models; and (iii) Group Internal Audit, responsible for the assessment of the design and operating effectiveness and
sustainability of the related processes.
Model risk is included in the Group-wide risk appetite framework.
Model oversight committees and forums ensure that model risk is overseen at different levels of the organization,
appropriate model risk management and control actions are taken and, where necessary, escalated to the next level. The
Group Model Governance Committee is our most senior oversight and escalation body for all models in scope of our
model governance framework. It is co-chaired by the Group Chief Risk Officer and the Group CFO and is responsible for:
(i) reviewing and approving changes to the framework; (ii) approving the model risk appetite statement; (iii) overseeing
adherence to the UBS model risk governance framework; and (iv) monitoring model risk at a Group-wide level.
The legacy Credit Suisse models were either retired or integrated into the UBS model risk management framework in
2025.
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Capital management
Capital management objectives, planning and activities
Capital management objectives
Audited |
An adequate level of common equity tier 1 (CET1) capital and total loss-absorbing capacity (TLAC) meeting both
internal assessment and regulatory requirements is a prerequisite for conducting our business activities.
We are therefore committed to maintaining a strong CET1 capital and TLAC position at all times, in line with our target
capital ratios, in order to ensure compliance with regulatory capital requirements and to support the growth of our
businesses.
As of 31 December 2025, our CET1 capital ratio was 14.4% and our CET1 leverage ratio 4.4%, each above the
requirements for Swiss systemically relevant banks (SRBs) and Basel Committee on Banking Supervision (BCBS)
requirements and also above our capital guidance. We believe that our capital strength, consistent with our capital
guidance, is a source of confidence for our stakeholders, contributes to our sound credit ratings and is one of the
foundations of our success.
In Switzerland, the amendments to the Capital Adequacy Ordinance (the CAO) that incorporate the final Basel III
standards into Swiss law, including the new ordinances containing the implementing provisions for the revised CAO,
entered into force on 1 January 2025.
›
Refer to the “Our strategy” and “Targets, capital guidance and ambitions” sections of this report for more information about our
capital and resource guidelines
›
Refer to “We may be unable to maintain our capital strength” in the “Risk factors” section of this report for more information
about capital-ratio-related risks
›
Refer to “Developments related to the implementation of the final Basel III standards” in the “Regulatory and legal
developments” section of this report for more information about the incorporation of final Basel III standards
›
Refer to “Risk-weighted assets” and “Leverage ratio denominator” in this section for more information about the impacts
resulting from the adoption of the final Basel III standards on risk-weighted assets (RWA) and the leverage ratio denominator (the
LRD), respectively
Capital planning and activities
Audited |
We manage our balance sheet, RWA, LRD and TLAC ratio levels based on our regulatory requirements, within our
internal limits and targets, and our externally provided guidance.
Our strategic focus is on achieving an optimal attribution and use of financial resources between our business divisions
and Group functions, as well as between our legal entities, while remaining within the limits defined for the Group and
allocated to the business divisions by the Board of Directors (the BoD).
Audited |
These resource allocations are based on our business plans and earnings projections, which are reflected in our
capital plans. The equity double leverage ratio at the UBS Group AG standalone level (calculated as investments in
subsidiaries divided by total equity) is a key consideration when planning for distributions from UBS AG to UBS Group AG
and from UBS Group AG to its shareholders.
The annual strategic planning process includes a capital planning component that is key in defining our target capital
levels and returns. The capital planning component is based on an attribution of Group RWA and LRD capacity to the
business divisions and Group Items.
Limits and targets are established at the Group and business-division levels and are approved by the BoD at least annually.
In the target-setting process, we take into account, among other factors, the current and potential future TLAC
requirements, our aggregate risk exposure in terms of the combined stress test (the CST) and the effect of expected
accounting policy changes.
Monitoring is based on these internal limits and targets and provides indications if any changes are required. Any breach
of limits in place triggers a series of remediating actions.
Group Treasury plans for and monitors consolidated TLAC information on an ongoing basis, reflecting business and legal
entity requirements, as well as regulatory developments in capital regulations. In addition, capital planning and
monitoring are performed at the legal entity level for our significant subsidiaries and sub-groups that are subject to
prudential supervision and must meet capital and other supervisory requirements.
›
Refer to “Capital and capital ratios of our significant regulated subsidiaries” in this section for more information
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management 132
Swiss SRB total loss-absorbing capacity framework
The disclosures in this section are provided for UBS Group AG on a consolidated basis and focus on key developments
during the reporting period and information in accordance with the Basel III framework, as applicable to Swiss SRBs.
Additional regulatory disclosures for UBS Group AG on a consolidated basis are provided in our 31 December 2025 Pillar 3
Report. The Pillar 3 Report also includes information relating to our significant regulated subsidiaries and sub-groups
(UBS AG consolidated, UBS AG standalone, UBS Switzerland AG standalone, UBS Europe SE consolidated, UBS Americas
Holding LLC consolidated and Credit Suisse International standalone) as of 31 December 2025 and is available under
“Pillar 3 disclosures” at
ubs.com/investors
.
Capital and other regulatory information for UBS AG consolidated in accordance with the Basel III framework, as
applicable to Swiss SRBs, is provided in the UBS AG Annual Report 2025, available under “Annual reporting” at
ubs.com/investors
.
Regulatory framework
The Basel III framework came into effect in Switzerland on 1 January 2013 and is embedded in the CAO. The CAO also
includes the too-big-to-fail (TBTF) provisions applicable to Swiss SRBs.
Under the Swiss SRB framework, going and gone concern requirements represent the Group’s TLAC requirement. RWA
calculations are based on the applicable rules and models approved by the Swiss Financial Market Supervisory Authority
(FINMA) for the respective legal entities.
Capital and other instruments contributing to our total loss-absorbing capacity
CET1 capital mainly consists of share capital, share premium and retained earnings. In addition to CET1 capital, the
following instruments contribute to our TLAC:
–
loss-absorbing additional tier 1 (AT1) capital instruments (high trigger), including Deferred Contingent Capital Plan
(DCCP) awards;
–
45% of unrealized gains from financial assets measured at fair value through other comprehensive income (such gains
can be recognized as tier 2 capital); and
–
TLAC-eligible senior unsecured debt instruments.
Under the Swiss SRB rules, going concern capital includes CET1 capital and high-trigger loss-absorbing AT1 capital
instruments.
Outstanding TLAC-eligible senior unsecured debt instruments are eligible to meet gone concern requirements until one
year before maturity. A maximum of 25% of the gone concern requirements can be met with instruments that have a
remaining maturity of between one and two years (i.e. are in the last year of eligibility). However, once at least 75% of
the minimum gone concern requirement has been met with instruments that have a remaining maturity of greater than
two years, all instruments that have a remaining maturity of between one and two years remain eligible to be included
in the total gone concern capital.
›
Refer to the “Compensation” section of this report for more information about the DCCP awards
›
Refer to “Bondholder information”, available at
ubs.com/investors
, for more information about the eligibility of capital and senior
unsecured debt instruments and key features and terms and conditions of capital instruments
Total loss-absorbing capacity and leverage ratio requirements
Going concern capital requirements
Under the Swiss SRB requirements, total going concern minimum requirements for all Swiss SRBs are a capital ratio
requirement of 12.86% of RWA and a leverage ratio requirement of 4.5%. In addition to these minimum requirements,
an add-on reflecting the degree of systemic importance is applied, based on market share and LRD. The applicable market
share and LRD add-on requirements for UBS were both unchanged at 0.72% of RWA and 0.25% of LRD, resulting in
add-ons of 1.44% of RWA and 0.50% of LRD. As a result of the acquisition of the Credit Suisse Group in 2023, the
capital add-ons applicable to UBS SRBs based on market share and LRD for UBS Group AG consolidated will increase
commensurate with the Group’s increased market share and higher LRD after the acquisition. Based on the existing
regulations, we currently estimate that this will add around USD 6bn to the Group’s tier 1 capital requirement, when
fully phased in.
The phase-in of the increased capital requirements commenced on 1 January 2026 and will be completed by 1 January
2030. Phase-in requirements are composed of the existing add-ons and the phased-in increases, resulting in phase-in
add-ons as of 1 January 2026 for RWA-based requirements of 0.86% for increased market share and 0.79% for higher
LRD and add-ons for LRD-based requirements of 0.30% for increased market share and 0.28% for higher LRD.
The Swiss countercyclical capital buffer, at a maximum level of 2.5% on risk-weighted positions that are directly or
indirectly backed by residential properties in Switzerland, increased our minimum CET1 capital requirement by 38 basis
points as of 31 December 2025. We also continued to apply countercyclical buffer requirements introduced in other BCBS
member jurisdictions, which resulted in an additional buffer requirement of 11 basis points as of 31 December 2025.
Overall, countercyclical capital buffers contributed 49 basis points to our minimum CET1 capital requirement as of
31 December 2025.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management 133
Effective 1 January 2025, a Pillar 2 capital add-on has been introduced for residual exposures (after collateral mitigation)
to hedge funds, private equity and family offices. This resulted in an increase of 20 basis points in the RWA-based going
concern capital requirement as of 31 December 2025.
The total going concern capital requirements applicable are 14.99% of RWA (including countercyclical buffer
requirements and the Pillar 2 add-on) and 5.00% of the LRD. Furthermore, of the total going concern capital requirement
of 14.99% of RWA, at least 10.63% must be met with CET1 capital, while a maximum of 4.36% can be met with high-
trigger loss-absorbing AT1 capital instruments.
Similarly, of the total going concern leverage ratio requirement of 5.00%, at least 3.50% must be met with CET1 capital,
while a maximum of 1.50% can be met with high-trigger loss-absorbing AT1 capital instruments.
Gone concern loss-absorbing capacity requirements
As an internationally active Swiss SRB, UBS is also subject to gone concern loss-absorbing capacity requirements. The
gone concern requirements also include add-ons for market share and LRD.
Systemically important banks (SIBs), such as UBS, are subject to base gone concern capital requirements equivalent to
75% of the total going concern requirements (excluding countercyclical buffer requirements and the Pillar 2 add-on). In
addition, FINMA has the authority to impose a surcharge of up to 25% of the total going concern capital requirements
(excluding countercyclical buffer requirements and the Pillar 2 add-on) based on obstacles to an SIB’s resolvability
identified in future resolvability assessments. Our total gone concern requirements remained substantially unchanged in
2025.
Our gone concern requirements can be reduced when higher-quality capital instruments (CET1 capital, low-trigger
loss-absorbing AT1 or certain low-trigger tier 2 capital instruments) are used to meet gone concern requirements. As of
31 December 2025, UBS did not use any higher-quality capital instruments to fulfill gone concern requirements.
The gone concern requirement after the potential reduction for the use of higher-quality capital instruments has been
floored at 10.0% and 3.75% for the RWA- and LRD-based requirements, respectively.
In this report, we refer to the RWA-based gone concern requirements as gone concern loss-absorbing capacity
requirements and the RWA-based gone concern ratio is referred to as the gone concern loss-absorbing capacity ratio.
The table below provides the RWA- and LRD-based requirements and information as of 31 December 2025.
Swiss SRB going and gone concern requirements and information
As of 31.12.25
RWA
LRD
USD m, except where indicated
in %
in %
Required going concern capital
Total going concern capital
1
1
Common equity tier 1 capital
2
3
of which: minimum capital
of which: buffer capital
of which: countercyclical buffer
Maximum additional tier 1 capital
2
of which: additional tier 1 capital
of which: additional tier 1 buffer capital
Eligible going concern capital
Total going concern capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
of which: high-trigger loss-absorbing additional tier 1 capital
Required gone concern capital
Total gone concern loss-absorbing capacity
4,5,6
7
7
of which: base requirement including add-ons for market share and LRD
Eligible gone concern capital
Total gone concern loss-absorbing capacity
Total tier 2 capital
8
of which: non-Basel III-compliant tier 2 capital
TLAC-eligible senior unsecured debt
Total loss-absorbing capacity
Required total loss-absorbing capacity
Eligible total loss-absorbing capacity
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
1 Includes applicable add-ons of 1.64% for risk-weighted assets (RWA) and 0.50% for leverage ratio denominator (LRD), of which 20 basis points for RWA reflect a Pillar 2 capital add-on for the residual exposure
(after collateral mitigation) to hedge funds, private equity and family offices, effective 1 January 2025. 2 Includes the Pillar 2 add-on for the residual exposure (after collateral mitigation) to hedge funds, private
equity and family offices of 0.14% for CET1 capital and 0.06% for AT1 capital, effective 1 January 2025. For AT1 capital under Pillar 1 requirements a maximum of 4.3% of AT1 capital can be used to meet going
concern requirements; 4.36% includes the aforementioned Pillar 2 capital add-on. 3 Our CET1 leverage ratio requirement of 3.50% consists of a 1.5% base requirement, a 1.5% base buffer capital requirement,
a 0.25% LRD add-on requirement and a 0.25% market share add-on requirement based on our Swiss credit business. 4 A maximum of 25% of the gone concern requirements can be met with instruments that
have a remaining maturity of between one and two years. Once at least 75% of the minimum gone concern requirement has been met with instruments that have a remaining maturity of greater than two years, all
instruments that have a remaining maturity of between one and two years remain eligible to be included in the total gone concern capital. 5 Systemically important banks (SIBs) are subject to base gone concern
capital requirements equivalent to 75% of the total going concern requirements (excluding countercyclical buffer requirements and the Pillar 2 add-on). 6 The Swiss Financial Market Supervisory Authority (FINMA)
has the authority to impose a surcharge of up to 25% of the total going concern capital requirements (excluding countercyclical buffer requirements and the Pillar 2 add-on) should obstacles to an SIB’s resolvability
be identified in future resolvability assessments. 7 Includes applicable add-ons of 1.08% for RWA and 0.38% for LRD. 8 Reflects an add-back of 45% of unrealized gains from financial assets measured at fair
value through other comprehensive income. Such gains do not qualify as CET1 capital but 45% of these gains can be recognized as tier 2 capital.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management 134
Total loss-absorbing capacity
Swiss SRB going and gone concern information
USD m, except where indicated
31.12.25
31.12.24
Eligible going concern capital
Total going concern capital
Total tier 1 capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
of which: high-trigger loss-absorbing additional tier 1 capital
of which: low-trigger loss-absorbing additional tier 1 capital
Eligible gone concern capital
Total gone concern loss-absorbing capacity
Total tier 2 capital
1
of which: non-Basel III-compliant tier 2 capital
TLAC-eligible senior unsecured debt
Total loss-absorbing capacity
Total loss-absorbing capacity
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
of which: common equity tier 1 capital ratio
Gone concern loss-absorbing capacity ratio
Total loss-absorbing capacity ratio
Leverage ratios (%)
Going concern leverage ratio
of which: common equity tier 1 leverage ratio
Gone concern leverage ratio
Total loss-absorbing capacity leverage ratio
1 Reflects an add-back of 45% of unrealized gains from financial assets measured at fair value through other comprehensive income. Such gains do not qualify as CET1 capital but 45% of these gains can be recognized
as tier 2 capital.
Audited |
Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital
USD m
31.12.25
31.12.24
Total equity under IFRS Accounting Standards
Equity attributable to non-controlling interests
(271 )
(494 )
Defined benefit plans, net of tax
(957 )
(833 )
Deferred tax assets recognized for tax loss carry-forwards
(2,434 )
(2,288 )
Deferred tax assets for unused tax credits
(827 )
(688 )
Deferred tax assets on temporary differences, excess over threshold
(1,242 )
(803 )
Goodwill, net of tax
1
(5,787 )
(5,702 )
Intangible assets, net of tax
(683 )
(702 )
Compensation-related components (not recognized in net profit)
(2,441 )
(2,800 )
Expected losses on advanced internal ratings-based portfolio less provisions
(876 )
(568 )
Unrealized (gains) / losses from cash flow hedges, net of tax
Own credit related to (gains) / losses on financial liabilities measured at fair value that existed at the balance sheet date, net of tax
Own credit related to (gains) / losses on derivative financial instruments that existed at the balance sheet date
(65 )
(62 )
Prudential valuation adjustments
(148 )
(167 )
Accruals for dividends to shareholders for 2024
(2,835 )
Accruals for proposed dividends to shareholders for 2025
(3,449 )
Capital reserve for expected future share repurchases in 2026
(3,000 )
Other
(40 )
(25 )
Total common equity tier 1 capital
1 Includes goodwill related to significant investments in financial institutions of USD
m as of 31 December 2025 (31 December 2024: USD
m) presented on the balance sheet line Investments in associates.
Total loss-absorbing capacity and movement
Our TLAC increased by USD 1.9bn to USD 187.3bn as of 31 December 2025.
Going concern capital and movement
Audited |
Our CET1 capital mainly consists of: share capital; share premium, which primarily consists of additional paid-in capital
related to shares issued; and retained earnings. A detailed reconciliation of equity under IFRS Accounting Standards to CET1
capital is provided in the “Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1
capital” table.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management 135
Our CET1 capital decreased by USD
bn to USD
bn as of 31 December 2025, mainly as operating profit before tax
of USD
bn and foreign currency translation gains of USD
bn were more than offset by dividend accruals of
USD
bn, share repurchases of USD
bn under our 2024 and 2025 share repurchase programs, the recognition of a
new capital reserve of USD
bn for expected future share repurchases in 2026, current tax expenses of USD
bn, and
negative effects from compensation- and own-share-related capital components of USD
bn and other items of
USD
bn.
›
Refer to the “UBS shares” section of this report for more information about our share repurchase programs
Our loss-absorbing AT1 capital increased by USD
bn to USD
bn, mainly reflecting new issuances of AT1 capital
instruments of USD
bn and positive impacts from interest rate risk hedge, foreign currency translation and other
effects, partly offset by a call of USD
bn equivalent of AT1 capital instruments.
Following the approval of a maximum amount of conversion capital by UBS Group AG’s shareholders at the 2024 Annual
General Meeting, AT1 capital instruments issued from the beginning of the fourth quarter of 2023 are, upon the
occurrence of a trigger event or a viability event, subject to conversion into UBS Group AG ordinary shares rather than a
write-down. AT1 capital instruments issued prior to the fourth quarter of 2023 remain subject to a write-down.
›
Refer to “Conversion capital” in the “Corporate governance” section of this report for more information about conversion capital
Gone concern loss-absorbing capacity and movement
Audited |
Our total gone concern loss-absorbing capacity decreased by USD
bn to USD
bn as of 31 December 2025
and largely reflected USD
bn of TLAC-eligible senior unsecured debt.
The decrease of USD 1.5bn mainly reflected the redemption of USD 14.0bn equivalent of TLAC-eligible senior unsecured
debt instruments and USD 5.8bn TLAC-eligible senior unsecured debt instruments that we repurchased in November
2025 under tender offers, as well as USD 5.5bn equivalent of TLAC-eligible senior unsecured debt instruments and
USD 0.2bn of tier 2 instruments ceasing to be eligible as gone concern capital as they entered the final year before
maturity. The aforementioned decreases were largely offset by new issuances of TLAC-eligible senior unsecured debt
instruments totaling the equivalent of USD 17.8bn and positive impacts from interest rate risk hedge, foreign currency
translation and other effects.
Loss-absorbing capacity and leverage ratios
Our CET1 capital ratio increased to 14.4% from 14.3%, predominantly due to a USD 5.1bn decrease in RWA.
›
Refer to “Risk-weighted assets” in this section for more information about RWA movements
Our CET1 leverage ratio decreased to 4.4% from 4.7%, due to a USD 103.0bn increase in the LRD and the
aforementioned decrease in CET1 capital.
›
Refer to “Leverage ratio denominator” in this section for more information about LRD movements
Our going concern capital ratio increased to 18.5% from 17.6%, reflecting a USD 3.4bn increase in going concern capital
and the aforementioned decrease in RWA.
Our going concern leverage ratio decreased to 5.6% from 5.8%, reflecting the aforementioned increase in the LRD,
partly offset by the aforementioned increase in going concern capital.
Our gone concern loss-absorbing capacity ratio decreased to 19.5% from 19.6%, reflecting a USD 1.5bn decrease in
gone concern loss-absorbing capacity, partly offset by the aforementioned decrease in RWA.
Our gone concern leverage ratio decreased to 5.9% from 6.4%, driven by the aforementioned increase in the LRD and
the aforementioned decrease in gone concern loss-absorbing capacity.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management 136
Swiss SRB total loss-absorbing capacity movement
USD m
Going concern capital
Swiss SRB
Common equity tier 1 capital as of 31.12.24
Operating profit / (loss) before tax
Current tax (expense) / benefit
Foreign currency translation effects, before tax
Accruals for proposed dividends to shareholders for 2025
Share repurchase program
Capital reserve for expected future share repurchases in 2026
Compensation- and own-share-related capital components
Other
Common equity tier 1 capital as of 31.12.25
Loss-absorbing additional tier 1 capital as of 31.12.24
Issuance of high-trigger loss-absorbing additional tier 1 capital
Call of high-trigger loss-absorbing additional tier 1 capital
Call of low-trigger loss-absorbing additional tier 1 capital
Interest rate risk hedge, foreign currency translation and other effects
Loss-absorbing additional tier 1 capital as of 31.12.25
Total going concern capital as of 31.12.24
Total going concern capital as of 31.12.25
Gone concern loss-absorbing capacity
Tier 2 capital as of 31.12.24
Debt no longer eligible as gone concern loss-absorbing capacity due to residual tenor falling to below one year
Interest rate risk hedge, foreign currency translation and other effects
Tier 2 capital as of 31.12.25
TLAC-eligible unsecured debt as of 31.12.24
Issuance of TLAC-eligible senior unsecured debt
Call of TLAC-eligible senior unsecured debt
1
Instruments repurchased under the tender offers
Debt no longer eligible as gone concern loss-absorbing capacity due to residual tenor falling to below one year
Interest rate risk hedge, foreign currency translation and other effects
TLAC-eligible unsecured debt as of 31.12.25
Total gone concern loss-absorbing capacity as of 31.12.24
Total gone concern loss-absorbing capacity as of 31.12.25
Total loss-absorbing capacity
Total loss-absorbing capacity as of 31.12.24
Total loss-absorbing capacity as of 31.12.25
1 Includes one debt instrument (ISIN US902613AU26) that ceased to be eligible as gone concern capital when we issued a notice of redemption of the instrument in the fourth quarter of 2025.
Additional information
Active management of sensitivity to foreign exchange movements
Group Treasury is mandated to minimize adverse effects from changes in foreign currency rates on our CET1 capital
and / or CET1 capital ratio. A significant portion of our CET1 capital and RWA is denominated in Swiss francs, euro,
pounds sterling and other currencies. In order to hedge the CET1 capital ratio, CET1 capital needs to have foreign currency
exposure, leading to foreign currency rates sensitivity of CET1 capital.
Consequently, it is not possible to simultaneously fully hedge CET1 capital and the CET1 capital ratio. As the proportion
of RWA denominated in currencies other than the US dollar outweighs CET1 capital in such currencies, a significant
appreciation of the US dollar against such currencies could benefit our capital ratios, while a significant depreciation of
the US dollar against these currencies could adversely affect our capital ratios.
The Group Asset and Liability Committee, a committee of the Group Executive Board, has mandated Group Treasury to
adjust the currency mix of CET1 capital, within limits set by the BoD, to balance the effect of foreign exchange movements
on CET1 capital and the CET1 capital ratio. Limits are in place for the sensitivity of both CET1 capital and the CET1 capital
ratio to an appreciation or depreciation of 10% in the value of the US dollar against other currencies.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management 137
Sensitivity to currency movements
Risk-weighted assets
We estimate that a 10% depreciation of the US dollar against other currencies would have increased our RWA by
USD 23bn and our CET1 capital by USD 2.7bn as of 31 December 2025 (31 December 2024: USD 22bn and USD 2.4bn,
respectively) and decreased our CET1 capital ratio by 13 basis points (31 December 2024: 14 basis points). Conversely, a
10% appreciation of the US dollar against other currencies would have decreased our RWA by USD 21bn and our CET1
capital by USD 2.4bn (31 December 2024: USD 20bn and USD 2.2bn, respectively) and increased our CET1 capital ratio
by 13 basis points (31 December 2024: 14 basis points).
Leverage ratio denominator
We estimate that a 10% depreciation of the US dollar against other currencies would have increased our LRD by
USD 109bn as of 31 December 2025 (31 December 2024: USD 97bn) and decreased our CET1 leverage ratio by 12 basis
points (31 December 2024: 13 basis points). Conversely, a 10% appreciation of the US dollar against other currencies
would have decreased our LRD by USD 98bn (31 December 2024: USD 88bn) and increased our CET1 leverage ratio by
12 basis points (31 December 2024: 14 basis points).
The aforementioned sensitivities do not consider foreign currency translation effects related to defined benefit plans other
than those related to the currency translation of the net equity of foreign operations.
Capital and capital ratios of our significant regulated subsidiaries
UBS Group AG is a holding company conducting substantially all of its operations through UBS AG and subsidiaries
thereof. UBS Group AG and UBS AG have contributed a significant portion of their respective capital to, and provided
substantial liquidity to, subsidiaries. Many of these subsidiaries are subject to regulations requiring compliance with
minimum capital, liquidity and similar requirements. Supervisory authorities generally have discretion to impose higher
requirements, or to otherwise limit the activities of subsidiaries. Supervisory authorities also may require entities to
measure capital and leverage ratios on a stressed basis, and may limit the ability of the entity to engage in new activities
or take capital actions based on the results of those tests.
›
Refer to the “Significant regulated subsidiary and sub-group information ” section of this report for more information about the
regulatory capital components and capital ratios of our significant regulated subsidiaries determined under the regulatory
framework of each subsidiary’s home jurisdiction
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
,
for more capital and
other regulatory information about our significant regulated subsidiaries and sub-groups
Joint liability of UBS AG and UBS Switzerland AG
In June 2015, upon the transfer of the Personal & Corporate Banking and Global Wealth Management businesses booked
in Switzerland from UBS AG to UBS Switzerland AG, UBS AG and UBS Switzerland AG assumed joint liability for
obligations transferred to UBS Switzerland AG and existing at UBS AG, respectively. Under certain circumstances, the
Swiss Banking Act and FINMA’s Banking Insolvency Ordinance authorize FINMA to modify, extinguish or convert to
common equity liabilities of a bank in connection with a resolution or insolvency of such bank.
The joint liability amounts have declined as obligations matured, terminated or were novated following the transfer date.
As of 31 December 2025, the liability of UBS Switzerland AG amounted to CHF 1.5bn (USD 1.9bn), a decrease of
CHF 0.9bn (USD 0.7bn) compared with 31 December 2024. The respective liability of UBS AG has been substantially
extinguished.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management 138
Risk-weighted assets
RWA development in 2025
During 2025, RWA decreased by USD 5.1bn to USD 493.4bn, driven by a USD 16.3bn decrease resulting from asset size
and other movements, an USD 8.6bn decrease as a result of the implementation of the final Basel III standards and a
decrease of USD 4.2bn resulting from model updates and other methodology changes. These decreases were partly offset
by a USD 24.0bn increase from currency effects.
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
about RWA movements and definitions of RWA movement key drivers
Movement in risk-weighted assets, by key driver
USD bn
RWA as of
31.12.24
Currency
effects
Impact from the
implementation
of final Basel III
standards
Model updates
and other
methodology
changes
Asset size and
other
1
RWA as of
31.12.25
Credit and counterparty credit risk
2
Non-counterparty-related risk
3
Market risk
Operational risk
Total
1 Includes the Pillar 3 categories “Asset size”, “Credit quality of counterparties”, “Acquisitions and disposals” and “Other”. For more information, refer to the 31 December 2025 Pillar 3 Report, available under
“Pillar 3 disclosures” at ubs.com/investors. 2 Includes settlement risk, credit valuation adjustments, equity and investments in funds exposures in the banking book, and securitization exposures in the banking book.
3 Non-counterparty-related risk includes deferred tax assets recognized for temporary differences, property, equipment, software and other items.
Credit and counterparty credit risk
Credit and counterparty credit risk RWA increased by USD 7.8bn to USD 299.9bn as of 31 December 2025, driven by a
USD 22.4bn increase from currency effects, partly offset by a USD 6.1bn decrease due to the implementation of the final
Basel III standards, a decrease of USD 4.3bn from asset size and other movements, and a USD 4.2bn decrease reflecting
model updates and other methodology changes.
In Switzerland, the amendments to the CAO that incorporate the final Basel III standards into Swiss law entered into force
on 1 January 2025. The main changes relate to restrictions on using internal ratings-based (IRB) models for exposures to
financial institutions and large corporate clients, a revised standardized approach with more granular risk weights, and a
revised credit valuation adjustment framework.
The aforementioned impact from the implementation of the final Basel III standards on credit and counterparty credit risk
RWA of USD 6.1bn was primarily due to the removal of a 1.06 multiplier on risk weights calculated using IRB models,
which more than offset other changes, including the establishing of floors and the introduction of regulatory-mandated
loss given default parameters to financial institutions and large corporate clients.
Asset size and other movements, by business division and Group Items
–
Non-core and Legacy RWA decreased by USD 8.4bn, primarily driven by our actions to actively unwind the portfolio,
in addition to the natural roll-off.
–
Group Items RWA decreased by USD 1.0bn, primarily due to higher allocation of high-quality liquid assets (HQLA) to
the business divisions.
–
Asset Management RWA decreased by USD 0.1bn.
–
Personal & Corporate Banking RWA increased by USD 3.3bn, primarily due to higher HQLA and higher RWA on loans
and loan commitments.
–
Global Wealth Management RWA increased by USD 1.3bn, mainly reflecting higher HQLA and increases in equity
holdings, partly offset by lower RWA from loans and loan commitments.
–
Investment Bank RWA increased by USD 0.6bn, mainly due to increases in loans and loan commitments and higher
RWA on securities financing transactions, partly offset by lower RWA on derivatives reflecting market-driven
movements, roll-offs and risk mitigation.
Model updates and other methodology changes not related to the implementation of the final Basel III standards resulted
in a RWA decrease of USD 4.2bn, mainly reflecting lower RWA on Lombard lending, improvements in the model for
concentrated equity lending, the establishment of a new model for private equity subscription loans in Global Wealth
Management and an update in loss given default models for cash and balances at central banks. These decreases were
partly offset by increases in RWA following the migration of exposures from Credit Suisse models.
›
Refer to “Credit risk” in the “Risk management and control” section of this report for more information about credit and
counterparty credit risk developments
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
about credit and counterparty credit risk developments
Market risk
Market risk RWA decreased by USD 3.4bn to USD 23.8bn as of 31 December 2025, primarily driven by a decrease of
USD 9.9bn due to asset size and other movements in the Investment Bank’s Global Markets business and de-risking
within Non-core and Legacy, partly offset by a USD 6.5bn increase due to the implementation of the Fundamental Review
of the Trading Book (the FRTB) framework.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management 139
The final Basel III standards on the minimum capital requirements for market risk from the BCBS, known as the FRTB
framework, entered into force in Switzerland on 1 January 2025. UBS currently applies the standardized approach of the
FRTB framework, in which minimum market risk capital requirements are computed on the basis of three components:
the sensitivities-based method (the SBM), the default risk charge (the DRC) and the residual risk add-on (the RRAO). The
SBM captures the delta, vega and curvature risk of the underlying trading positions, and the DRC captures the jump-to-
default risk in positions subject to equity and credit risk. In addition, positions that may not be adequately capitalized by
the SBM and the DRC additionally attract an RRAO charge. The new FRTB framework replaced the value-at-risk (VaR)-
and stressed VaR-based Basel 2.5 market risk framework.
›
Refer to “Market risk” in the “Risk management and control” section of this report for more information about market risk
developments
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
about market risk developments
Operational risk
Operational risk RWA decreased by USD 10.0bn to USD 135.4bn as of 31 December 2025, primarily driven by a decrease
of USD 9.0bn as a result of the implementation of the standardized approach for determining regulatory capital, and a
decrease of USD 1.0bn from asset size and other movements. The allocation methodology for operational risk RWA has
been adjusted to better reflect the contributions of each division to the RWA calculation under the final Basel III standards.
Under the revised approach, allocations are based on historical losses and revenues in approximate proportion to the
weight that these factors have in the standardized approach calculation.
The final Basel III standards on the operational risk capital requirements entered into force in Switzerland on 1 January
2025. The standardized approach is based on the business indicator component, which is derived from average revenue-
based indicators over a period of three years, as well as the internal loss multiplier, which is derived from average historical
operational losses over a period of ten years. The new framework replaced the advanced measurement approach.
›
Refer to “Non-financial risk capital measurement” in the “Risk management and control” section of this report for more
information about the standardized approach, which has been used to measure Group operational risk exposure and calculate
operational risk regulatory capital
Outlook
We expect model updates and methodology changes will increase credit and counterparty credit risk RWA by around
USD 2bn during 2026. The extent and timing of RWA changes may vary as model updates are completed and receive
regulatory approval, along with changes in the composition of the relevant portfolios.
Risk-weighted assets, by business division and Group Items
USD bn
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group
Items
Total
RWA
31.12.25
Credit and counterparty credit risk
1
Non-counterparty-related risk
2
Market risk
Operational risk
Total
31.12.24
Credit and counterparty credit risk
1
Non-counterparty-related risk
2
Market risk
Operational risk
Total
31.12.25 vs 31.12.24
Credit and counterparty credit risk
1
Non-counterparty-related risk
2
Market risk
Operational risk
Total
1 Includes settlement risk, credit valuation adjustments, equity and investments in funds exposures in the banking book, and securitization exposures in the banking book. 2 Non-counterparty-related risk includes
deferred tax assets recognized for temporary differences (31 December 2025: USD 18.1bn; 31 December 2024: USD 18.1bn), as well as property, equipment, software and other items (31 December 2025: USD 16.1bn;
31 December 2024: USD 15.7bn).
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management 140
Leverage ratio denominator
LRD development in 2025
During 2025, the LRD increased by USD 103.0bn to USD 1,622.4bn, mainly driven by a USD 110.2bn increase from
currency effects and a USD 28.8bn increase as a result of the implementation of the final Basel III standards, partly offset
by a USD 36.1bn decrease from asset size and other movements.
Movement in leverage ratio denominator, by key driver
USD bn
LRD as of
31.12.24
Currency
effects
Impact from the
implementation
of final Basel III
standards
Asset size and
other
LRD as of
31.12.25
On-balance sheet exposures (excluding derivatives and securities financing transactions)
1
Derivative exposures
Securities financing transaction exposures
Off-balance sheet items
1
Total exposures
1 From the first quarter of 2025 onward, we have included the assets deducted from tier 1 capital items in On-balance sheet exposures and Off-balance sheet items. Comparative-period information has been amended
to reflect the disclosure format changes for the new final Basel III standards. Refer to the UBS Group Annual Report 2024, available under “Annual reporting” at ubs.com/investors, for more information about
previously published disclosure.
The impact from the implementation of the final Basel III standards on the LRD was an increase of USD 28.8bn. In
Switzerland, the amendments to the CAO that incorporate the final Basel III standards into Swiss law entered into force
on 1 January 2025. The increase was mainly in derivatives, as a result of the standardized approach for counterparty
credit risk, including the application of the prescribed 1.4× multiplier to address risks, for example wrong-way risk, that
are not directly captured in the framework. This was partly offset by decreases in off-balance sheet positions resulting
from a change to credit conversion factors and on-balance sheet exposures due to an alignment of the consolidation
scope between RWA and LRD.
Asset size and other movements resulted in a USD 36.1bn decrease in the LRD.
On-balance sheet exposures (excluding derivatives and securities financing transactions) increased by USD 26.8bn, mainly
due to increases in high-quality liquid asset portfolio securities, increases in lending assets driven by positive net new
loans, mainly in Global Wealth Management, and higher trading assets reflecting higher inventory held to hedge client
positions, as well as market-driven increases in the Investment Bank. These increases were partly offset by a decrease in
cash and balances at central banks.
Derivatives exposures decreased by USD 23.2bn, mainly due to roll-offs of foreign currency contracts and higher netting
in the Investment Bank. There was also a decrease from unwinding activities in Non-core and Legacy.
Securities financing transaction exposures decreased by USD 36.7bn, mainly reflecting roll-offs of cash reinvestment
trades in Group Treasury, partly offset by an increase in brokerage receivables mainly reflecting higher levels of client
activity in the Investment Bank.
Off-balance sheet items exposures decreased by USD 3.0bn, mainly driven by a decrease in commitments.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about balance sheet and off-
balance sheet movements
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management 141
Leverage ratio denominator, by business division and Group Items
USD bn
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
31.12.25
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
1
Derivative exposures
Securities financing transaction exposures
Off-balance sheet items
1
Total exposures
31.12.24
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
1
Derivative exposures
Securities financing transaction exposures
Off-balance sheet items
1
Total exposures
31.12.25 vs 31.12.24
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
Derivative exposures
Securities financing transaction exposures
Off-balance sheet items
Total exposures
1 From the first quarter of 2025 onward, we have included the assets deducted from tier 1 capital items in On-balance sheet exposures and Off-balance sheet items. Comparative-period information has been amended
to reflect the disclosure format changes for the new final Basel III standards. Refer to the UBS Group Annual Report 2024, available under “Annual reporting” at ubs.com/investors, for more information about
previously published disclosure.
Equity attribution
Under our equity attribution framework, tangible equity is attributed based on equally weighted average RWA and
average LRD, which both include resource allocations from our Group functions to the business divisions. Average RWA
and LRD are converted to CET1 capital equivalents using target capital ratios. If the attributed tangible equity calculated
under the weighted-driver approach is less than the CET1 capital equivalent of risk-based capital (RBC) for any business
division, the CET1 capital equivalent of RBC is used as a floor for that business division. In 2025 and 2024, the floor was
applicable for Asset Management and Non-core and Legacy.
In addition to tangible equity, we allocate equity to the business divisions to support goodwill and intangible assets. We
also allocate to the business divisions attributed equity related to CET1 capital deduction items that are attributable to
divisional activities, such as compensation-related components or expected losses on the advanced internal ratings-based
portfolio less provisions. We attribute all remaining capital deduction items to Group Items. These primarily include equity
related to deferred tax assets, accruals for shareholder returns, and unrealized gains / losses from cash flow hedges.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about movements in equity
attributable to shareholders
Average attributed equity
For the year ended
USD bn
31.12.25
31.12.24
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
1
Average equity attributed to business divisions and Group Items
1 Includes average attributed equity related to capital deduction items for deferred tax assets, accruals for shareholder returns and unrealized gains / losses from cash flow hedges.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Liquidity and funding management 142
Liquidity and funding management
We manage the structural risks of our balance sheet, including interest rate risk, structural foreign exchange risk and
collateral risk, as well as liquidity and funding risk. This section provides information about liquidity and funding
governance, stress testing, management, contingency planning, and regulatory requirements. The balances disclosed in
this section represent year-end positions, unless indicated otherwise. Intra-period balances fluctuate in the ordinary
course of business and may differ from year-end positions.
Strategy, objectives and governance
Audited |
Our management of liquidity and funding ensures that our business franchises are protected and that our internal
and regulatory liquidity and funding requirements are prudently managed. We measure liquidity and funding risk using
internal and regulatory models and metrics. We define and implement internal stress testing across different time
horizons, scenarios and currencies to ensure we have sufficient liquidity and funding, while remaining compliant with
regulatory liquidity and funding requirements. Our liquidity and funding strategy is proposed by Group Treasury and
approved by the Group Asset and Liability Committee (the Group ALCO), which is a committee of the Group Executive
Board (the GEB) and is overseen by the Board of Directors (the BoD).
Liquidity and funding limits and other constraints (including early-warning indicators) are set at Group and, where
appropriate, at legal entity and business-division levels. Key limits (which are under the authority of the BoD) and
constraints linked to these limits are reviewed and reconfirmed at least once a year by the BoD, the GEB, the Group
ALCO, the Group Chief Financial Officer, the Group Chief Risk Officer and the Group Treasurer, taking into
consideration the Group’s business strategy and risk appetite. Treasury Risk Control provides independent oversight
over liquidity and funding risk, including the setting of key internal limits and early-warning indicators associated
with these limits.
›
Refer to the “Corporate governance” and “Risk management and control” sections of this report for more information
Group Treasury monitors and oversees the implementation and execution of our liquidity and funding strategy and
manages liquidity and funding risk within the limits and other relevant constraints, thereby adhering to the internal risk
appetite and regulatory requirements. Group Treasury manages our stock of high-quality liquid assets (HQLA), including
our operational cash position, and our short- and long-term debt issuances. To safeguard our liquidity and funding
position in times of stress, Group Treasury maintains a Contingency Funding Plan and contributes to plans for recovery
and resolution, defining crisis management processes throughout the crisis continuum. Group Treasury reports on the
Group’s liquidity and funding status and position, at least monthly, to the Group ALCO and the Risk Committee of the
BoD, with more frequent reporting in times of stress.
Liquidity and funding stress testing
Audited |
Our liquidity and funding risk appetite objective is to ensure that the firm has sufficient liquidity to survive a severe
three-month idiosyncratic and market-wide liquidity stress event and to ensure that the firm has sufficient long-term
funding to maintain franchise assets at a constant level under stressed market conditions for up to one year, in both
cases without government support and allowing for discrete management actions.
Group Treasury maintains a diversified, high-quality pool of unencumbered liquid assets under Treasury control. The liquid
asset portfolio is managed dynamically, in order to remain at all times within the internal risk appetite and other relevant
Group, UBS AG and subsidiary liquidity and funding requirements.
Our liquidity and funding stress testing covers three main stress scenarios: a combined (i.e. market and idiosyncratic)
scenario, an idiosyncratic scenario and a structural market-wide scenario.
›
Refer to “Risk measurement” in the “Risk management and control” section of this report for more information about stress
testing
Combined (market and idiosyncratic) scenario
In this scenario, UBS faces the consequences of both a severely deteriorated macroeconomic and financial market
environment and a UBS-specific event, resulting in an acute loss of liquidity over a relatively short period of time. This
scenario represents severe yet plausible events encompassing both market-wide and idiosyncratic elements, in which,
however, franchise client relationships are materially maintained.
UBS ensures that its liquidity risk appetite objective is met by maintaining a cumulative liquidity surplus on each day in
the three-month stress horizon. The liquidity gap is assessed by modeling the stressed liquidity value of the liquidity buffer
and stressed liquidity inflows and outflows under the scenario.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Liquidity and funding management 143
Idiosyncratic scenario
In this three-month stress scenario, UBS is subject to a significant and unforeseen event specific to UBS. This materially
damages the market’s perception of the reputation and creditworthiness of UBS. The event occurs in otherwise benign
macroeconomic and financial market conditions. UBS’s difficulties throughout the scenario are limited to UBS and do not
trigger material market moves.
Structural market-wide scenario
In this scenario, UBS is subject to a significant deterioration of macroeconomic and financial market conditions globally.
Macroeconomic shocks result in deteriorated financial market conditions over the scenario horizon of one year. UBS is
assumed to be affected equally relative to other global financial institutions.
UBS ensures that its funding risk appetite objective is met by maintaining a positive cumulative behavioral liquidity gap
across the 3-month, 6-month, 9-month and 12-month tenors. The liquidity gap is assessed by modeling the stressed
liquidity value of the liquidity buffer and the stressed liquidity inflows and outflows under the scenario.
Management of liquidity and funding risk
Audited |
Group Treasury monitors the Group’s funding position, including concentration risk, aiming to ensure that the
Group maintains a well-balanced and diversified liability structure. Group Treasury also looks to create the optimal liability
structure to finance our businesses in a reliable and cost-efficient manner. Our funding activities are planned by analyzing
the overall liquidity and funding requirements, taking into account the amount of stable funding that would be needed
to support ongoing business activities through periods of difficult market conditions.
The funding strategy of UBS Group is set annually in the Funding Plan and is reviewed on an ongoing basis. The Funding
Plan is developed by Group Treasury and approved by the Group ALCO.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about the development of our
short- and long-term debt during 2025
Global Wealth Management and Personal & Corporate Banking provide significant, cost-efficient and stable sources of
funding. These include deposits and debt issued through the Swiss central mortgage institution (Pfandbriefbank
schweizerischer Hypothekarinstitute AG) and UBS’s covered bond programs, which use a portion of our portfolio of Swiss
residential mortgages as collateral to generate long-term funding. In addition, we have several short-, medium- and long-
term funding programs under which we issue senior unsecured debt and structured notes, as well as short-term debt.
These programs enable UBS to source funding from institutional and private investors who are active in Europe, the US
and Asia Pacific. Collectively, these broad product offerings and funding sources, together with the global scope of our
business activities, support our funding stability.
Internal funding and funds transfer pricing
We use our global liquidity and funding framework to govern the liquidity management of our branches and subsidiaries.
Group Treasury meets internal demands for funding by channeling funds from entities generating surplus cash to those
in need of financing, considering existing transfer restrictions.
Funding costs and benefits are allocated to our business divisions according to our liquidity and funding risk management
framework. Our internal funds transfer pricing system aims to balance funding supply and demand.
Credit ratings
Credit ratings can affect the cost and availability of funding, especially from wholesale unsecured sources. UBS’s credit
ratings can also influence the performance of some of its businesses and the levels of client and counterparty confidence.
Rating agencies take into account a range of factors when assessing creditworthiness and setting credit ratings. These
include the firm’s strategy and business model, its franchise value and competitive position, stability and quality of
earnings, capital adequacy, risk profile and management, liquidity management, diversification of funding sources, asset
quality, and corporate governance. Credit ratings reflect the opinions of the rating agencies and can change at any time.
In evaluating our liquidity and funding requirements, we consider the potential effect of a reduction in our long-term
credit ratings and a corresponding reduction in short-term ratings. If our credit ratings were to be downgraded, rating
trigger clauses could result in an immediate cash settlement or the need to deliver additional collateral to counterparties
from contractual obligations related to over-the-counter (OTC) derivative positions and other obligations. Based on our
credit ratings as of 31 December 2025, in the event of a one-notch reduction in our long-term credit ratings, we would
have been required to provide USD 0.3bn in cash or other collateral. In the event of a two-notch reduction, it would have
been USD 0.6bn and for a three-notch downgrade, USD 0.9bn. In the two- and three-notch scenarios the collateral
requirements predominantly relate to OTC derivative positions.
During 2025, rating agencies took the following actions regarding UBS Group AG’s ratings: Moody’s Investors Service
Limited (Moody’s) upgraded its long-term senior unsecured debt rating to A2 from A3 and changed the outlook to stable
from developing. Fitch Ratings Ireland Limited (Fitch) changed the outlook on the Long-Term Issuer Default Rating of UBS
Group AG to Positive from Stable. Additionally, Moody’s changed the outlook on the long-term senior unsecured debt
ratings of UBS AG from negative to stable, and Fitch changed the Outlook on Long-Term Issuer Default Ratings of UBS AG
to Positive from Stable.
›
Refer to “Liquidity and funding management are critical to UBS’s ongoing performance” in the “Risk factors” section of this report
for more information
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Liquidity and funding management 144
Contingency Funding Plan
Audited |
We maintain our Contingency Funding Plan in preparation and as an action plan, aiming to ensure we maintain
sufficient liquidity to meet payment obligations in a liquidity and funding stress scenario. The plan specifies the processes,
tools and responsibilities that we have available to effectively manage liquidity and funding through these periods. Our
funding diversification and global scope help to protect our liquidity position in the event of a crisis. Our contingent funding
sources include our HQLA portfolios, available central bank-eligible non-HQLA collateral for liquidity facilities at several major
central banks, contingent reductions of trading portfolio assets, and other actions available to management.
Liquidity coverage ratio
The liquidity coverage ratio (the LCR) measures the short-term resilience of a bank’s liquidity profile by assessing whether
sufficient HQLA are available to meet expected net cash outflows from a significant liquidity stress scenario, as defined
by the relevant regulator.
For UBS, HQLA are low-risk unencumbered assets under the control of Group Treasury that are easily and immediately
convertible into cash at little or no loss of value, in order to meet liquidity needs. Our HQLA predominantly consist of
assets that qualify as Level 1 in the LCR framework, including cash, central bank reserves and government bonds. Group
HQLA are held by UBS AG and its subsidiaries and may include amounts that are available to meet funding and collateral
needs in certain jurisdictions but are not readily available for use by the Group as a whole. These limitations are typically
the result of local regulatory requirements, including local LCR and large exposure requirements. Funds that are effectively
restricted in subsidiaries and branches are excluded from the calculation of Group HQLA. On this basis, USD 51.8bn of
assets were excluded from our daily average UBS Group HQLA for the fourth quarter of 2025. Amounts held in excess
of local liquidity requirements that are not subject to other restrictions are generally available for transfer within the
Group.
Consistent with the standards set by the Basel Committee on Banking Supervision (the BCBS), the Swiss Liquidity
Ordinance requires Swiss banks to maintain a minimum LCR requirement of at least 100% at all times. In a period of
financial stress, the Swiss Financial Market Supervisory Authority (FINMA) may permit banks to use their HQLA and allow
their LCR to temporarily fall below the minimum threshold. We monitor the LCR in all significant currencies in order to
manage any currency mismatches between HQLA and the net expected cash outflows in times of stress.
Our daily average LCR for the fourth quarter of 2025 was 182.6%, compared with 188.4% in the fourth quarter of
2024, remaining above the prudential requirement communicated by FINMA.
The decrease in the average LCR was primarily driven by a USD 5.7bn increase in net cash outflows, to USD 181.7bn,
mainly attributable to higher outflows from customer deposits, partly offset by higher net inflows from securities financing
transactions. Group HQLA were broadly stable at USD 331.6bn.
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
,
for more information
about the LCR
›
Refer to the “Significant regulated subsidiary and sub-group information” section of this report
for more information about the
LCR of UBS AG and UBS Switzerland AG
Liquidity coverage ratio
USD bn, except where indicated
Average 4Q25
1
Average 4Q24
1
High-quality liquid assets
331.6
331.5
Total net cash outflows
2
181.7
176.0
Liquidity coverage ratio (%)
3
182.6
188.4
1 Calculated based on an average of 64 data points in the fourth quarter of 2025 and 64 data points in the fourth quarter of 2024. 2 Represents the net cash outflows expected over a stress period of 30 calendar
days. 3 Calculated after the application of haircuts and inflow and outflow rates, as well as, where applicable, caps on Level 2 assets and cash inflows.
Too-big-to-fail liquidity requirements
UBS Group and the affected legal entities of the UBS Group remained compliant throughout 2025 with the too-big-to-
fail (TBTF) liquidity requirements communicated by FINMA. These additional liquidity requirements consider liquidity risks
over a 90-day time horizon that are not covered or not sufficiently covered by the 30-day LCR stress scenario. The
additional liquidity requirements are covered by eligible assets, which include, but are not limited to, available HQLA over
and above the LCR requirements.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Liquidity and funding management 145
Net stable funding ratio
The net stable funding ratio (the NSFR) framework is intended to limit overreliance on short-term wholesale funding, to
encourage a better assessment of funding risk across all on- and off-balance sheet items and to promote funding stability.
The NSFR has two components: available stable funding (ASF), as numerator, and required stable funding (RSF), as
denominator. ASF is the portion of capital and liabilities expected to be available over the period of one year. RSF is a
measure of the stable funding requirement of assets and off-balance sheet exposures based on their maturity,
encumbrance and other characteristics. Both the Swiss Liquidity Ordinance and the BCBS NSFR regulatory framework
require a ratio of at least 100% at all times.
As of 31 December 2025, the NSFR of the UBS Group decreased 9.5 percentage points to 116.1%, remaining above the
prudential requirement communicated by FINMA.
ASF increased by USD 25.2bn to USD 882.0bn, predominantly reflecting higher customer deposits, largely due to
currency effects.
RSF increased by USD 77.3bn to USD 759.8bn, mainly driven by higher lending assets, largely due to currency effects,
and higher trading assets, partly offset by decreases in derivatives
and cash collateral receivables on derivative instruments.
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
,
for more information
about the NSFR
›
Refer to the “Significant regulated subsidiary and sub-group information” section of this report
for more information about the
NSFR of UBS AG and UBS Switzerland AG
Net stable funding ratio
USD bn, except where indicated
31.12.25
31.12.24
Available stable funding (ASF)
Required stable funding (RSF)
Net stable funding ratio (%)
116.1
125.5
Balance sheet and off-balance sheet
The balances disclosed in this section represent year-end positions, unless indicated otherwise. Intra-period balances
fluctuate in the ordinary course of business and may differ from year-end positions. Refer to the “Consolidated financial
statements” section of this report for more information about the development of our financial position.
Balance sheet
Balance sheet assets
As of 31 December 2025, balance sheet assets totaled USD 1,617.4bn, an increase of USD 52.4bn compared with
31 December 2024.
Lending assets increased by USD 74.6bn, primarily driven by currency effects of approximately USD 59.4bn and positive
net new loans, mainly in Global Wealth Management. Other financial assets measured at fair value and Other financial
assets measured at amortized cost increased by USD 23.7bn and USD 13.1bn, respectively, primarily reflecting purchases
of securities in our high-quality liquid asset (HQLA) portfolio and currency effects. Trading assets increased by USD 15.6bn,
mainly in the Investment Bank, due to an increase in inventory held to hedge client positions, as well as market-driven
increases. Brokerage receivables increased by USD 9.7bn, primarily reflecting higher levels of client activity.
These increases were partly offset by a decrease of USD 40.2bn in Derivatives and cash collateral receivables on derivative
instruments, mainly in the Investment Bank. The decrease was driven by foreign currency contracts, mainly due to roll-
offs, partly offset by an increase in equity contracts, reflecting market-driven increases. In addition, there was a decrease
from unwinding activities in Non-core and Legacy. Securities financing transactions at amortized cost decreased by
USD 34.6bn, mainly reflecting roll-offs of cash reinvestment trades in Group Treasury. Cash and balances at central banks
decreased by USD 13.4bn, primarily due to outflows from purchases of securities in our HQLA portfolio, net redemptions
and the repurchase of long-term debt issued measured at amortized cost, higher lending activity levels, and net new
customer deposit outflows, partly offset by inflows from net roll-offs of securities financing transactions measured at
amortized cost and also by currency effects.
›
Refer to “Note 22 Restricted and transferred financial assets” in the “Consolidated financial statements” section of this report and
to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
,
for more information about
on- and off-balance sheet assets that are pledged, restricted or unencumbered
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Balance sheet and off-balance sheet 146
Assets
As of
% change from
USD bn
31.12.25
31.12.24
31.12.24
Cash and balances at central banks
Lending
1
Securities financing transactions at amortized cost
Trading assets
Derivatives and cash collateral receivables on derivative instruments
Brokerage receivables
Other financial assets measured at amortized cost
Other financial assets measured at fair value
2
Non-financial assets
Total assets
1 Consists of Loans and advances to customers and Amounts due from banks. 2 Consists of Financial assets at fair value not held for trading and Financial assets measured at fair value through other comprehensive
income.
Balance sheet liabilities
Total liabilities as of 31 December 2025 were USD 1,526.9bn, an increase of USD 47.4bn compared with 31 December
2024.
Customer deposits increased by USD 42.6bn, primarily reflecting currency effects, partly offset by net new deposit
outflows, mainly in Global Wealth Management. Trading liabilities increased by USD 18.5bn, mainly in the Investment
Bank, due to an increase in inventory held to hedge client positions, as well as market-driven increases. Brokerage
payables increased by USD 13.2bn, primarily reflecting higher levels of client activity.
These increases were partly offset by a decrease of USD 25.6bn in Derivatives and cash collateral payables on derivative
instruments, mainly reflecting the same drivers as on the asset side.
Equity
Equity attributable to shareholders increased by USD 5,134m to USD 90,213m as of 31 December 2025.
The increase of USD 5,134m was mainly driven by total comprehensive income attributable to shareholders of
USD 11,998m, reflecting net profit of USD 7,767m and other comprehensive income (OCI) of USD 4,231m. OCI primarily
included OCI related to foreign currency translation of USD 3,333m and cash flow hedge OCI of USD 1,295m, partly
offset by negative own credit OCI of USD 499m. In addition, deferred share-based compensation awards of USD 1,107m
were expensed in the income statement, increasing share premium.
These increases were partly offset by net treasury share activity, which reduced equity by USD 5,169m. This was
predominantly due to share repurchases with an acquisition cost of USD 3,000m under our 2024 and 2025 share
repurchase programs and the purchasing of USD 2,365m of shares in relation to employee share-based compensation
plans. In addition, distributions to shareholders reduced equity by USD 2,866m, reflecting a dividend payment of
USD 0.90 per share for the 2024 financial year.
In the second quarter of 2025, we canceled 120,506,008 shares purchased under our 2022 share repurchase program,
as approved by the shareholders at the 2025 Annual General Meeting. The cancellation of shares resulted in
reclassifications within equity but had no net effect on our total equity attributable to shareholders.
›
Refer to the “Group performance” and “Consolidated financial statements” sections of this report for more information about OCI
›
Refer to the “Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital” table in the
“Capital management” section of this report for more information about the effects of OCI on common equity tier 1 capital
›
Refer to the “UBS shares” section of this report for more information about our share repurchase programs
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Balance sheet and off-balance sheet 147
Liabilities and equity
As of
% change from
USD bn
31.12.25
31.12.24
31.12.24
Short-term borrowings
1,2
Securities financing transactions at amortized cost
Customer deposits
Debt issued designated at fair value and long-term debt issued measured at amortized cost
2
Trading liabilities
Derivatives and cash collateral payables on derivative instruments
Brokerage payables
Other financial liabilities measured at amortized cost
Other financial liabilities designated at fair value
Non-financial liabilities
Total liabilities
Share capital
Share premium
Treasury shares
Retained earnings
Other comprehensive income
3
Total equity attributable to shareholders
Equity attributable to non-controlling interests
Total equity
Total liabilities and equity
1 Consists of short-term debt issued measured at amortized cost and Amounts due to banks, which includes amounts due to central banks. 2 The classification of debt issued measured at amortized cost into short-
term and long-term is based on original contractual maturity and therefore long-term debt also includes debt with a remaining time to maturity of less than one year. This classification does not consider any early
redemption features. 3 Excludes other comprehensive income related to defined benefit plans and own credit, which is recorded directly in Retained earnings.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Balance sheet and off-balance sheet 148
Liabilities, by product and currency
USD equivalent
All currencies
of which: USD
of which: CHF
of which: EUR
USD bn
31.12.25
31.12.24
31.12.25
31.12.24
31.12.25
31.12.24
31.12.25
31.12.24
Short-term borrowings
58.3
53.9
25.6
22.5
5.8
5.7
13.5
11.7
of which: amounts due to banks
24.4
23.3
7.2
8.1
5.2
5.4
3.8
3.1
of which: short-term debt issued
1,2
33.9
30.5
18.4
14.5
0.6
0.3
9.7
8.6
Securities financing transactions at amortized cost
16.2
14.8
8.6
7.9
5.8
3.8
0.8
2.9
Customer deposits
788.4
745.8
301.6
310.3
341.4
297.2
74.7
71.1
of which: demand deposits
259.4
221.8
52.8
54.0
139.1
107.8
36.2
32.8
of which: retail savings / deposits
230.8
182.3
38.1
34.9
187.5
143.3
5.1
4.0
of which: sweep deposits
41.5
41.9
41.5
41.9
0.0
0.0
0.0
0.0
of which: time deposits
256.8
299.8
169.3
179.4
14.8
46.1
33.4
34.3
Debt issued designated at fair value and long-term debt issued measured at
amortized cost
2
294.6
291.6
157.4
165.7
44.1
41.5
71.5
62.1
Trading liabilities
53.7
35.2
20.3
14.4
1.5
1.3
15.5
10.0
Derivatives and cash collateral payables on derivative instruments
190.5
216.1
165.0
182.9
2.9
4.4
13.2
18.0
Brokerage payables
62.2
49.0
49.2
38.1
0.8
0.5
3.4
3.4
Other financial liabilities measured at amortized cost
15.9
21.0
7.0
11.7
3.8
3.7
1.8
2.0
Other financial liabilities designated at fair value
28.2
28.7
3.6
4.1
0.1
0.1
2.3
4.3
Non-financial liabilities
19.0
23.2
9.3
13.0
4.3
4.1
1.5
2.8
Total liabilities
1,526.9
1,479.5
747.6
770.7
410.4
362.3
198.2
188.3
1 Short-term debt issued consists of certificates of deposit, commercial paper, acceptances and promissory notes, and other money market paper. 2 The classification of debt issued measured at amortized cost into
short-term and long-term is based on original contractual maturity, and therefore long-term debt also includes debt with a remaining time to maturity of less than one year. This classification does not consider any
early redemption features.
Off-balance sheet
In the normal course of business, we enter into transactions where, pursuant to IFRS Accounting Standards, the maximum
contractual exposure may not be recognized in whole or in part on our balance sheet. Therefore, in certain instances the
amount recognized on the balance sheet does not represent the full gain or loss potential inherent in such transactions.
These transactions include derivative instruments, guarantees, loan commitments and similar arrangements.
The following paragraphs provide more information about certain off-balance sheet arrangements. Additional off-
balance sheet information is primarily provided in Notes 9, 10, 17, 19, 20h, 22 and 27 in the “Consolidated financial
statements” section of this report and in the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
.
Guarantees, loan commitments and similar arrangements
We issue various forms of guarantees, commitments to extend credit, standby and other letters of credit, forward starting
transactions, note issuance facilities, and revolving underwriting facilities. With the exception of related premiums,
generally these guarantees and similar obligations are kept as off-balance sheet items, unless a provision to cover
probable losses or expected credit losses is required.
Guarantees represent irrevocable assurances that, subject to the satisfying of certain conditions, we will make payments
if our clients fail to fulfill their obligations to third parties. As of 31 December 2025, the net exposure (i.e. gross values
less sub-participations) from guarantees and similar instruments was USD 45.8bn, compared with USD 38.4bn as of
31 December 2024. The increase of USD 7.4bn was mainly driven by an increase in sponsored repo clearing in Group
Treasury. Fee income from issuing guarantees compared with total net fee and commission income was insignificant for
2025 and 2024.
We also enter into commitments to extend credit in the form of credit lines available to secure the liquidity needs of
clients. For the majority of irrevocable loan commitments, UBS is committed to provide credit at any time within a
contractual maturity period of up to three years from the balance sheet date, i.e. 31 December 2025. During 2025,
Irrevocable loan commitments increased by USD 2.5bn, mainly driven by currency effects. Committed unconditionally
revocable credit lines decreased by USD 26.0bn, mainly driven by decreases in facilities provided to clients in Personal &
Corporate Banking and Global Wealth Management, partly offset by currency effects. Forward starting reverse repurchase
and securities borrowing agreements decreased by USD 14.2bn, reflecting a decrease in levels of business division activity
in short-dated securities financing transactions.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Balance sheet and off-balance sheet 149
Off-balance sheet
As of
% change from
USD bn
31.12.25
31.12.24
31.12.24
Guarantees
1,2
Irrevocable loan commitments
1
Committed unconditionally revocable credit lines
Forward starting reverse repurchase and securities borrowing agreements
1 Guarantees and irrevocable loan commitments are shown net of sub-participations. 2 Includes guarantees measured at fair value through profit or loss.
If customers fail to meet their obligations, our maximum exposure to credit risk is generally the contractual amount of
these instruments. The risk is similar to the risk involved in extending loan facilities and is subject to the same risk
management and control framework. In 2025, we recognized net credit loss expenses of USD 36m related to irrevocable
loan commitments, guarantees and other credit facilities in the scope of expected credit loss measurement, compared
with net credit loss releases of USD 14m in 2024. Provisions recognized for irrevocable loan commitments, guarantees
and other credit facilities in the scope of expected credit loss measurement were USD 347m as of 31 December 2025,
compared with USD 320m as of 31 December 2024.
›
Refer to “Note 9 Financial assets at amortized cost and other positions in scope of expected credit loss measurement” and “Note 19
Expected credit loss measurement” in the “Consolidated financial statements” section of this report for more information about
provisions for expected credit losses
For certain obligations, we enter into partial sub-participations to mitigate various risks from guarantees and irrevocable
loan commitments. A sub-participation is an agreement by another party to take a share of the loss in the event that the
obligation is not fulfilled by the obligor and, where applicable, to fund a part of the credit facility. We retain the
contractual relationship with the obligor, and the sub-participant has only an indirect relationship. Generally, we only
enter into sub-participation agreements with banks to which we ascribe a credit rating equal to or better than that of
the obligor.
We also provide representations, warranties and indemnifications to third parties in the normal course of business.
Support provided to non-consolidated investment funds
In 2025, the Group did not provide material support, financial or otherwise, to unconsolidated investment funds when
the Group was not contractually obligated to do so, nor does it currently have an intention to do so.
Clearing house and exchange memberships
We are a member of numerous securities and derivative exchanges and clearing houses. In connection with some of
these memberships, we may be required to pay a share of the financial obligations of another member that defaults, or
we may be otherwise exposed to additional financial obligations. While the membership rules vary, obligations generally
would arise only if the exchange or clearing house had exhausted its resources. We consider the probability of a material
loss due to such obligations to be remote.
Deposit insurance
Swiss banking law and the deposit insurance system require Swiss banks and securities dealers to jointly guarantee an
amount of up to CHF 7.9bn for privileged client deposits in the event that a Swiss bank or securities dealer becomes
insolvent. As of 31 December 2025, FINMA estimates our share in the deposit insurance system to be CHF 1.5bn. This
represents a contingent payment obligation and exposes us to additional risk. As of 31 December 2025, we considered
the probability of a material loss from our obligations to be remote.
UBS is also subject to, or is a member of, other deposit protection schemes in other countries. However, no contingent
payment obligation existed as of 31 December 2025 from any other material scheme.
Material cash requirements
The Group’s material cash requirements as of 31 December 2025 are represented by the residual contractual maturities
for non-derivative and non-trading financial liabilities included in the table presented in “Note 23b Maturity analysis of
financial liabilities on an undiscounted basis” in the “Consolidated financial statements” section of this report. Included
in the table are Debt issued measured at amortized cost (USD 257.6bn) and Debt issued designated at fair value
(USD 134.4bn). The amounts represent estimated future interest and principal payments on an undiscounted basis.
In the normal course of business, we also issue or enter into various forms of guarantees, irrevocable loan commitments
and other similar arrangements that may result in an outflow of cash in the future. The maturity profile of these
obligations, which are presented off-balance sheet, are included in “Note 23b Maturity analysis of financial liabilities on
an undiscounted basis” in the “Consolidated financial statements” section of this report. Refer to “Guarantees, loan
commitments and similar arrangements” in this section for more information.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Balance sheet and off-balance sheet 150
Cash flows
As we are a global financial institution, our cash flows are complex and often may bear little relation to our net earnings
and net assets. Consequently, we believe that a traditional cash flow analysis is less meaningful when evaluating our
liquidity position than the liquidity, funding and capital management frameworks and measures described elsewhere in
this section.
›
Refer to the “Liquidity and funding management” section of this report for more information
Cash and cash equivalents
As of 31 December 2025, cash and cash equivalents totaled USD 231.4bn, a decrease of USD 12.7bn compared with
31 December 2024, driven by net cash outflows used in investing and financing activities. These effects were partly offset
by net cash inflows from operating activities and USD 19.1bn of positive foreign currency effects, largely reflecting the
weakening of the US dollar against the Swiss franc in 2025.
Operating activities
Net cash inflows from operating activities were USD 21.9bn in 2025, compared with USD 3.3bn in 2024. The net positive
change in operating assets and liabilities of USD 21.7bn was mainly driven by a USD 40.5bn decrease in receivables from
securities financing transactions measured at amortized cost and a USD 25.2bn positive change in financial assets and
liabilities at fair value held for trading and derivative financial instruments. These effects were partly offset by outflows
of USD 16.3bn on loans and advances to customers, a USD 13.4bn negative change in financial assets and liabilities at
fair value not held for trading and other financial assets and liabilities, and outflows of USD 12.9bn due to a decrease in
customer deposits. Non-cash items included in net profit and other adjustments are mainly to remove the net impact of
non-cash effects on the balance sheet, such as foreign currency effects.
Investing activities
Investing activities resulted in net cash outflows of USD 22.8bn in 2025, compared with USD 0.7bn of net cash inflows
in 2024, primarily reflecting USD 11.5bn of net cash outflows from financial assets measured at fair value and USD 9.8bn
of net cash outflows from debt securities measured at amortized cost, both largely reflecting net purchases of securities
in our HQLA portfolio.
Financing activities
Financing activities resulted in net cash outflows of USD 30.9bn in 2025, compared with USD 84.2bn in 2024, mainly driven
by a USD 23.1bn net repayment of debt issued designated at fair value and long-term debt issued measured at amortized
cost, USD 5.2bn of net cash used to purchase treasury shares, and a dividend distribution to shareholders of USD 2.9bn.
These effects were partly offset by inflows of USD 1.7bn from net issuances of short-term debt issued measured at amortized
cost.
›
Refer to “Primary financial statements and share information” in the “Consolidated financial statements” section of this report for
more information about cash flows
Statement of cash flows (condensed)
For the year ended
USD bn
31.12.25
31.12.24
Net cash flow from / (used in) operating activities
21.9
3.3
Net cash flow from / (used in) investing activities
(22.8)
0.7
Net cash flow from / (used in) financing activities
(30.9)
(84.2)
Effects of exchange rate differences on cash and cash equivalents
19.1
(15.9)
Net increase / (decrease) in cash and cash equivalents
(12.7)
(96.1)
Cash and cash equivalents at the end of the year
231.4
244.1
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Currency management 151
Currency management
Strategy, objectives and governance
Group Treasury focuses on three main areas of currency risk management: (i) currency-matched funding and hedging of
non-US-dollar net investments; (ii) the sell-down of foreign currency profits and losses under IFRS Accounting Standards;
and (iii) selective hedging of expected non-US-dollar profits and losses to further mitigate the effect of structural
imbalances in the balance sheet.
Currency-matched funding and hedging of non-US-dollar net investments
For monetary balance sheet items and other investments, as far as it is practical and efficient, UBS follows the principle
of matching the currencies of its assets and liabilities for funding purposes. This avoids profits and losses arising from the
translation of non-US-dollar assets and liabilities.
UBS Group AG and UBS AG apply net investment hedge accounting to non-US-dollar core investments to balance the
effect of foreign exchange movements on both common equity tier 1 (CET1) capital and the CET1 capital ratio.
›
Refer to “Note 1 Summary of material accounting policies” and “Note 24 Hedge accounting” in the “Consolidated financial
statements” section of this report for more information
›
Refer to the “Capital management” section of this report for more information about our active management of sensitivity to
currency movements and the effect thereof on our key ratios
Sell-down of non-US-dollar profits and losses
Income statement items of Group entities with a functional currency other than the US dollar are translated into US
dollars at average exchange rates. To reduce the profit-and-loss volatility from the translation of previously recognized
earnings in foreign currencies, Group Treasury centralizes the profits and losses (under IFRS Accounting Standards) arising
in UBS AG and its branches and sells or buys the profit or loss for US dollars on a monthly basis. UBS Group AG and
UBS AG subsidiaries follow a similar monthly sell-down process into their own functional currencies. The equity in
subsidiaries and branches with a functional currency other than the US dollar is integrated and managed as part of the
UBS Group’s net investment hedge accounting program.
Hedging of expected non-US-dollar profits and losses
Although UBS did not have hedges for expected future profits and losses in place as of 31 December 2025, the Group
Asset and Liability Committee may at any time instruct Group Treasury to execute hedges to protect expected future
profits and losses in foreign currencies against potential adverse movements of foreign exchange rates.
Dividend distribution
UBS Group AG declares dividends in US dollars. Shareholders holding shares through SIX SIS AG will receive dividends in
Swiss francs, based on a published exchange rate calculated up to five decimal places, on the day prior to the ex-dividend
date. Shareholders holding shares through DTC or Computershare will be paid dividends in US dollars.
›
Refer to the UBS Group AG Standalone financial statements and regulatory information for the year ended 31 December 2025,
available under “Holding company and significant regulated subsidiaries and sub-groups” at
ubs.com/investors
, for more
information about the proposed dividend distribution of UBS Group AG for the 2025 financial year
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | UBS shares 152
UBS shares
UBS Group AG shares
Audited |
USD
m, represented by
shares acquired under our 2022 share repurchase program were canceled by means of a capital reduction, as approved by
shareholders at the 2025 Annual General Meeting (the AGM).
Each share has a nominal value of USD
, carries one vote if entered into the share register as having the right to vote,
and entitles the holder to a proportionate share of distributed dividends. All shares are fully paid up. As the Articles of
Association of UBS Group AG indicate, there are no other classes of shares and no preferential rights for shareholders.
›
Refer to the “Corporate governance” section of this report for more information about UBS shares
UBS Group share information
As of or for the year ended
% change from
31.12.25
31.12.24
31.12.24
Shares issued
3,341,581,714
3,462,087,722
(3)
Treasury shares
1
249,882,523
287,262,471
(13)
of which: related to share repurchase program 2022
120,506,008
of which: related to share repurchase program 2024
63,776,550
32,962,298
93
of which: related to share repurchase program 2025
52,582,575
Shares outstanding
3,091,699,191
3,174,825,251
(3)
Basic earnings per share (USD)
2
2.46
1.59
55
Diluted earnings per share (USD)
2
2.36
1.52
56
Equity attributable to shareholders (USD m)
90,213
85,079
6
Less: goodwill and intangible assets (USD m)
6,948
6,887
1
Tangible equity attributable to shareholders (USD m)
83,265
78,192
6
Ordinary cash dividends per share (USD)
3,4
1.10
0.90
22
Total book value per share (USD)
29.18
26.80
9
Tangible book value per share (USD)
26.93
24.63
9
Share price (USD)
5
46.61
30.54
53
Market capitalization (USD m)
6
155,760
105,719
47
1 Based on a settlement date view. 2 Refer to “Share information and earnings per share” in the “Consolidated financial statements” section of this report for more information. 3 Dividends and / or distributions
out of the capital contribution reserve are normally approved and paid in the year subsequent to the reporting period. 4 Refer to the “Statement of proposed appropriation of total profit and dividend distribution
out of total profit and capital contribution reserve” section of the UBS Group AG Standalone financial statements and regulatory information for the year ended 31 December 2025 report, available under “Holding
company and significant regulated subsidiaries and sub-groups” at ubs.com/investors, for more information. 5 Represents the share price as listed on the SIX Swiss Exchange, translated to US dollars using the
closing exchange rate as of the respective date. 6 The calculation of market capitalization reflects total shares issued multiplied by the share price at the end of the period.
Holding of UBS Group AG shares
Group Treasury holds UBS Group AG shares to hedge future share delivery obligations related to employee share-based
compensation awards, and also holds shares purchased under share repurchase programs. As of 31 December 2025, we
held a total of 249,882,523 treasury shares (31 December 2024: 287,262,471).
Our 2022 share repurchase program was concluded on 28 March 2024. The shares acquired under this program totaled
121 million as of 31 December 2024 for a total acquisition cost of USD 2,277m (CHF 2,138m). The 121 million shares
were canceled by means of a capital reduction in 2025 as approved by shareholders at the 2025 AGM.
On 3 April 2024, we launched a 2024 share repurchase program of up to USD 2bn over two years, which concluded on
23 May 2025. Shares acquired under this program totaled 64 million as of 31 December 2025 for a total acquisition cost
of USD 2,000m (CHF 1,739m). Those 64 million shares will be canceled by means of a capital reduction, pending approval
by the shareholders at a future AGM.
On 1 July 2025, we launched a new, 2025 share repurchase program to repurchase up to USD 2bn shares, which
concluded on 20 November 2025. Shares acquired under this program totaled 53 million as of 31 December 2025 for a
total acquisition cost of USD 2,000m (CHF 1,602m). Those 53 million shares will be canceled by means of a capital
reduction, pending approval by the shareholders at a future AGM.
On 4 February 2026, we launched a share repurchase program of up to USD 3bn of shares. The program started on
5 February 2026 and will end at the latest on 4 February 2028 or earlier if either the maximum amount of USD 3bn has
been reached or 10% of the registered share capital has been repurchased. We intend to repurchase USD 3bn of shares
in 2026 with the aim to do more. The amount of additional repurchases is subject to further clarity around the future
regulatory regime in Switzerland, our financial performance and maintaining a common equity tier 1 capital ratio of
around 14%. Beyond 2026, we intend to continue to pursue share repurchases that will be calibrated based on our
financial results, our capital ratio and the final outcome and timing of the implementation of the new regulatory regime
in Switzerland.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | UBS shares 153
Treasury shares held to hedge our share delivery obligations related to employee share-based compensation awards
totaled 133 million shares as of 31 December 2025 (31 December 2024: 133 million). Share delivery obligations related
to employee share-based compensation awards totaled 159 million shares as of 31 December 2025 (31 December 2024:
183 million) and are calculated on the basis of undistributed notional share awards, taking applicable performance
conditions into account. Treasury shares held are delivered to employees at exercise or vesting. As of 31 December 2025,
up to 122 million UBS Group AG shares (31 December 2024: 122 million) could have been issued out of conditional
capital to satisfy share delivery obligations of any future employee share option programs or similar awards.
The Investment Bank also holds a limited number of UBS Group AG shares, primarily in its capacity as a market-maker
with regard to UBS Group AG shares and related derivatives, and to hedge certain issued structured debt instruments.
The table below outlines the market purchases of UBS Group AG shares by Group Treasury. It does not include the
activities of the Investment Bank.
Treasury share purchases
Share repurchase programs
1
Other treasury shares purchased
2
Month of purchase
3
Number of shares
Average price
in USD
Remaining volume of
2024 share repurchase
program in USD m
at month-end
Remaining volume of
2025 share repurchase
program in USD m
at month-end
Number of shares
Average price
in USD
January 2025
1,000
February 2025
5,345,315
33.81
819
March 2025
9,670,074
33.59
494
12,000,000
32.73
April 2025
5,301,742
29.32
339
May 2025
10,497,121
32.29
0
June 2025
7,220,334
31.89
July 2025
19,604,593
36.50
1,284
August 2025
9,779,206
38.90
904
4,669,630
40.06
September 2025
904
12,323,620
41.11
October 2025
16,045,575
39.21
275
November 2025
7,153,201
38.42
0
1,106,608
38.29
December 2025
8,893,392
40.98
1 In April 2024, UBS launched a share repurchase program to buy back up to USD 2bn of its own shares over a two-year period and this program was concluded on 23 May 2025. In July 2025, UBS launched a share
repurchase program to buy back up to USD 2bn of its own shares and this program was concluded on 20 November 2025. The share buybacks were transacted in Swiss francs on a separate trading line on the SIX
Swiss Exchange. 2 This table excludes purchases for the purpose of hedging derivatives linked to UBS Group AG shares and for market-making in UBS Group AG shares. The table also excludes UBS Group AG
shares purchased by post-employment benefit funds for UBS employees, which are managed by a board of UBS management and employee representatives in accordance with Swiss law. UBS’s post-employment
benefit funds purchased 776,495 UBS Group AG shares during 2025 and held 12,027,577 UBS Group AG shares as of 31 December 2025. 3 Based on the transaction date of the respective treasury share purchases.
Trading volumes
For the year ended
1,000 shares
31.12.25
31.12.24
31.12.23
SIX Swiss Exchange total
1,717,522
1,480,816
2,102,613
SIX Swiss Exchange daily average
6,898
5,923
8,377
New York Stock Exchange total
122,766
114,583
170,875
New York Stock Exchange daily average
491
455
684
Source: Reuters.
Listing of UBS Group AG shares
UBS Group AG shares are listed on the SIX Swiss Exchange (SIX). They are also listed on the New York Stock Exchange
(the NYSE) as global registered shares. As such, they can be traded and transferred across applicable borders, without
the need for conversion, with identical shares traded on different stock exchanges in different currencies.
During 2025, the average daily trading volume of UBS Group AG shares was 6.9 million shares on SIX and 0.5 million
shares on the NYSE. SIX is expected to remain the main venue for determining the movement in our share price, because
of the high volume traded on this exchange.
During the hours in which both SIX and the NYSE are simultaneously open for trading, price differences between these
exchanges are likely to be arbitraged away by professional market-makers. Accordingly, the share price will typically be
similar between the two exchanges when considering the prevailing US dollar / Swiss franc exchange rate. When SIX is
closed for trading, globally traded volumes will typically be lower. However, the specialist firm making a market in
UBS Group AG shares on the NYSE is required to facilitate sufficient liquidity and maintain an orderly market in UBS Group
AG shares throughout normal NYSE trading hours.
Ticker symbols UBS Group AG
Security identification codes
Trading exchange
SIX / NYSE
Bloomberg
Reuters
ISIN
CH0244767585
SIX Swiss Exchange
UBSG
UBSG SW
UBSG.S
Valoren
24 476 758
New York Stock Exchange
UBS
UBS UN
UBS.N
CUSIP
CINS H42097 10 7
Annual Report 2025 |
Corporate governance and compensation 154
Corporate governance and
compensation
Management report
Audited information according to Swiss law and applicable regulatory requirements
and guidance
Disclosures provided are in line with the requirements of the Swiss Code of Obligations (tables containing such
information are marked as “Audited” throughout this section), as well as other applicable regulations and guidance.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 155
Corporate governance
Table of contents
156
Corporate governance
157
Group structure and shareholders
158
Share capital structure
162
Shareholders’ participation rights
164
Board of Directors
180
Group Executive Board
189
Change of control and defense measures
189
Auditors
191
Information policy
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 156
Corporate governance
UBS Group AG is subject to, and complies with, all relevant Swiss legal and regulatory requirements regarding corporate
governance, including the SIX Swiss Exchange’s Directive on Information relating to Corporate Governance (the SIX Swiss
Exchange Corporate Governance Directive) and the standards established in the Swiss Code of Best Practice for Corporate
Governance.
As a non-US company with shares listed on the New York Stock Exchange (the NYSE), UBS Group AG also complies with
all relevant corporate governance standards applicable to foreign private issuers.
The Organization Regulations of UBS Group AG, adopted by the Board of Directors (the BoD) based on Art. 716b of the
Swiss Code of Obligations and articles 25 and 27 of the Articles of Association of UBS Group AG (the AoA), constitute
UBS Group AG’s primary corporate governance guidelines.
›
Refer to the Articles of Association of UBS Group AG and to the Organization Regulations of UBS Group AG, available at
ubs.com/governance,
›
The SIX Swiss Exchange Corporate Governance Directive is available at
ag.com/dam/downloads/regulation/listing/directives/dcg-en.pdf,
economiesuisse.ch/en/publications/swiss-code-best-practice-corporate-governance
nyseguide.srorules.com/listed-company-manual
Differences from corporate governance standards relevant to US-listed companies
The NYSE standards on corporate governance require foreign private issuers to disclose any significant ways in which their
corporate governance practices differ from those that have to be followed by US companies. The key differences are
discussed below.
Responsibility of the Audit Committee regarding independent auditors
Our Audit Committee is responsible for the compensation, retention and oversight of independent auditors. It assesses the
performance and qualifications of external auditors and submits proposals for appointment, reappointment or removal of
independent auditors to the BoD. As required by the Swiss Code of Obligations, the BoD submits its proposals for a
shareholder vote
at the Annual General Meeting (the AGM). Under NYSE standards audit committees are responsible for
appointing independent auditors.
Discussion of risk assessment and risk management policies by the Risk Committee
As per the Organization Regulations of UBS Group AG, the Risk Committee, instead of the Audit Committee, as per
NYSE standards, oversees our risk principles and risk capacity on behalf of the BoD. The Risk Committee is responsible
for monitoring our adherence to those risk principles and monitoring whether business divisions and control units
maintain appropriate systems of risk management and control.
Supervision of the internal audit function
Although under NYSE standards only audit committees supervise internal audit functions, the Chairman of the BoD (the
Chairman) and the Audit Committee share the supervisory responsibility and authority with respect to the internal audit
function.
Responsibility of the Compensation Committee for performance evaluations of senior management of UBS Group AG
In line with Swiss law, our Compensation Committee, together with the BoD, proposes for shareholder approval at the
AGM the maximum aggregate amount of compensation for the BoD, the maximum aggregate amount of fixed
compensation for the Group Executive Board (the GEB) and the aggregate amount of variable compensation for the GEB.
The members of the Compensation Committee are elected by the AGM. Under NYSE standards it is the responsibility of
compensation committees to evaluate senior management’s performance and to determine and approve, as a committee
or together with the other independent directors, the compensation thereof.
Proxy statement reports of the Audit Committee and the Compensation Committee
NYSE standards require the aforementioned committees to submit their reports directly to shareholders. However, under
Swiss law all reports to shareholders, including those from the aforementioned committees, are provided to and approved
by the BoD, which has ultimate responsibility to the shareholders.
Shareholder votes on equity compensation plans
NYSE standards require shareholder approval for establishing equity compensation plans and material revisions thereto.
However, as per Swiss law, the BoD approves compensation plans. Shareholder approval is only mandatory if equity-
based compensation plans require an increase in capital. No shareholder approval is required if shares for such plans are
purchased in the market.
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Corporate governance and compensation | Corporate governance 157
Independence of board members
NYSE standards require a majority of the members of the board of directors of a listed company to be independent,
which includes the requirement not to have been an employee of the company within the last three years. In contrast,
FINMA Circular 2017/1 “Corporate Governance – Banks” requires at least one third of the BoD members to be
independent, which includes the requirement not to have been employed in any other function within the Group in the
two years prior to taking office.
Swiss rules also do not require us to publish the criteria for determining the independence
of board members on our website.
Independence requirements of committee members
NYSE standards require the Audit Committee, Compensation Committee and the Governance and Nominating
Committee to be composed entirely of independent members. However, under Swiss law and regulations only the
majority of the Audit Committee members need to be independent, and there is no independence requirement for the
members of the Compensation Committee and the Governance and Nominating Committee.
Group structure and shareholders
Operational Group structure
As at 31 December 2025, the operational structure of the UBS Group is composed of the Global Wealth Management,
Personal & Corporate Banking, Asset Management, Investment Bank, and Non-core and Legacy business divisions, as
well as Group functions.
›
Refer to the “Our businesses” section of this report for more information about our business divisions and Group functions
›
Refer to “Financial and operating performance” and to
“Note 2a Segment reporting”
section of this report for more information
›
Refer to the “Our evolution” section of this report for more information
Listed and non-listed companies belonging to the Group
The Group includes a number of consolidated entities, of which only UBS Group AG shares are listed.
UBS Group AG’s registered office is at Bahnhofstrasse 45, CH-8001 Zurich, Switzerland. UBS Group AG shares are listed
on the SIX Swiss Exchange (ISIN CH0244767585) and on the NYSE (CUSIP H42097107).
›
Refer to the “UBS shares” section of this report for information about UBS Group AG’s market capitalization and shares held by
Group entities
›
Refer to “Note 27 Interests in subsidiaries and other entities” in the “Consolidated financial statements” section of this report for
more information about the significant subsidiaries of the Group
Significant shareholders
General rules
Under the Swiss Federal Act on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading
of 19 June 2015 (the FMIA), anyone who directly, indirectly or acting in concert with third parties, acquires or disposes
of shares in a company listed in Switzerland or holds other purchase or sale positions relating to such shares, and, thereby,
reaches, falls below or exceeds one of the following percentage thresholds: 3, 5, 10, 15, 20, 25, 33
1
⁄
3
, 50 or 66
2
⁄
3
% of
the voting rights in such company, regardless of whether or not such rights may be exercised, must notify the company
and the Swiss stock exchange on which such shares are listed. Nominees that cannot autonomously decide how voting
rights are exercised are not required to notify the company and such stock exchange if they reach, exceed or fall below
the aforementioned thresholds.
Shareholders subject to FMIA disclosure notifications
According to the mandatory FMIA disclosure notifications filed with UBS Group AG and the SIX Swiss Exchange (SIX), on
31 December 2025, the following entities held more than 3% of the total voting rights of UBS Group AG: Norges Bank,
Oslo, which disclosed a holding of 4.90% on 22 January 2025; and BlackRock Inc., New York, which disclosed a holding
of 5.01% on 30 November 2023.
On 17 February 2026, Norges Bank, Oslo, disclosed a holding of less than 3% of the total share capital of UBS Group AG.
No new disclosures of significant shareholdings have been made since that date.
In accordance with the FMIA, the aforementioned holdings are calculated in relation to the voting rights associated with
the total share capital of UBS Group AG entered into the commercial register at the time of the respective disclosure
notification.
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Corporate governance and compensation | Corporate governance 158
As registration in the UBS share register is optional, the aforementioned shareholders that crossed the indicated
percentage thresholds and were required to notify their holding to UBS and SIX do not necessarily appear in the
“Distribution of UBS shares” table below, as such table only discloses registered shareholders.
Information on disclosures under the FMIA is available at
ser-ag.com/en/resources/notifications-market-
participants/significant-shareholders.html.
Cross-shareholdings
UBS Group AG has no cross-shareholdings where reciprocal ownership would be in excess of 5% of capital or voting
rights with any other company.
Share capital structure
Ordinary share capital
At the end of 2025, UBS Group AG had 3,341,581,714 issued fully paid registered shares with a nominal value of
USD 0.10 each, equating to a share capital of USD 334,158,171.40.
Under Swiss company law, shareholders must approve, in a general meeting of shareholders, any increase or reduction
in the ordinary share capital, the creation of conditional capital or the introduction of a capital band. In addition, under
the Swiss Banking Act, shareholders of a Swiss top holding company of a financial group or of a Swiss bank must approve,
in a general meeting of shareholders, the introduction of, or changes to, conversion capital or reserve capital.
In 2025, the shareholders of UBS Group AG were not asked to approve the creation of conditional or conversion capital,
or the introduction of a capital band or reserve capital. As of the date of this report, UBS Group AG has no capital band
or reserve capital.
No shares were issued out of UBS Group AG’s existing conditional or conversion capital in 2025.
Distribution of UBS Group AG shares
As of 31 December 2025
Shareholders registered
Shares registered
Number of shares registered in the UBS share register
Number
%
Number
% of shares issued
1–100
101–1,000
1,001–10,000
10,001–100,000
100,001–1,000,000
1,000,001–5,000,000
5,000,001–33,415,817 (1%)
1–2%
2–3%
3–4%
4–5%
Over 5%
1
Total shares registered
2
Shares not registered
3
Total
1 On 31 December 2025, the US securities clearing organization DTC (Cede & Co.), New York, was registered with 7.69% of all UBS Group AG shares issued and is not subject to the 5% voting limit as a securities
clearing organization. 2 Of the total shares registered, 93,121,130 shares did not carry voting rights. 3 Shares not entered in the UBS share register as of 31 December 2025.
Conditional capital
At the end of 2025, the following conditional capital was available to the BoD.
–
Conditional capital in the amount of USD 38,000,000 for the issuance of a maximum of 380,000,000 fully paid
registered shares with a nominal value of USD 0.10 each, to be issued through the voluntary or mandatory exercise of
conversion rights and / or warrants granted in connection with the issuance of bonds or similar financial instruments
by UBS Group AG or another member of the Group on national or international capital markets. This conditional
capital allowance was approved at the Extraordinary General Meeting (the EGM) held on 26 November 2014, having
originally been approved at the AGM of UBS AG on 14 April 2010. The BoD has not made use of such allowance.
–
Conditional capital in the amount of USD 12,170,583 for the issuance of a maximum of 121,705,830 fully paid
registered shares with a nominal value of USD 0.10 each, to be issued upon exercise of employee options and stock
appreciation rights issued to employees and members of the management and of the BoD of UBS Group AG and its
subsidiaries; however, there were no employee options or stock appreciation rights outstanding. This conditional
capital allowance was approved by the shareholders at the same EGM in 2014.
›
Refer to article 4a of the AoA for more information about the terms and conditions of the issue of shares out of existing
conditional capital. The AoA are available at
›
Refer to the “Our evolution” section of this report for more information
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 159
Conversion capital
On 31 December 2025, UBS Group AG had conversion capital in the amount of USD 70,000,000, for the issuance of a
maximum of 700,000,000 fully paid registered shares with a nominal value of USD 0.10 each. The issuance of fully paid
registered shares only occurs through the mandatory conversion of claims arising upon the occurrence of one or more
trigger events under financial market instruments with contingent conversion features issued by UBS Group AG. The
creation of this conversion capital was approved at the AGM held on 24 April 2024.
›
Refer to article 4b of the AoA for more information about the terms and conditions of the issue of shares out of existing
conversion capital – the AoA are available at
Capital band and reserve capital
As of the date of this report, UBS Group AG had not introduced any capital band or any reserve capital.
Changes in capital
In accordance with IFRS Accounting Standards, Group equity attributable to shareholders was USD 90.2bn on
31 December 2025 (2024: USD 85.1bn; 2023: USD 85.6bn). The equity of UBS Group AG shareholders was represented
by 3,341,581,714 issued shares on 31 December 2025 (31 December 2024: 3,462,087,722; 31 December 2023:
3,462,087,722 issued shares).
›
Refer to “Statement of changes in equity” in the “Consolidated financial statements” section of this report for more information
about changes in shareholders’ equity over the last three years
Ownership
Ownership of UBS Group AG shares is widely spread. The tables in this section provide information about the distribution
of UBS Group AG shareholders by category and geographic location. This information relates only to shareholders
registered in the UBS share register and cannot be assumed to be representative of UBS Group AG’s entire investor base
or the actual beneficial ownership. Only shareholders registered in the UBS share register as “shareholders with voting
rights” are entitled to exercise voting rights.
›
Refer to “Shareholders’ participation rights” in this section for more information
On 31 December 2025, 1,321,894,722 UBS Group AG shares were registered in the UBS share register and carried voting
rights, 93,121,130 shares were registered in the UBS share register without voting rights, and 1,926,565,862 shares were
not registered in the UBS share register. As of the same date, all such shares were fully paid and eligible for dividends.
There are no preferential rights for shareholders, and no other classes of shares have been issued by UBS Group AG.
Shareholders, legal entities and nominees: type and geographical distribution (Shareholders registered)
Shareholders registered
As of 31 December 2025
Number
%
Individual shareholders
Legal entities
Nominees, fiduciaries
Total shareholders registered
Individual shareholders
Legal entities
Nominees
Total
Number
%
Number
%
Number
%
Number
%
Americas
of which: US
Asia Pacific
Europe, Middle East and Africa
of which: Germany
of which: UK
of which: rest of Europe
of which: Middle East and Africa
Switzerland
Total shareholders registered
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 160
Shareholders, legal entities and nominees: type and geographical distribution (Shares registered)
Shares registered
As of 31 December 2025
Number
%
Individual shareholders
Legal entities
Nominees, fiduciaries
Total shares registered
Total shares not registered
Total shares
Individual shareholders
Legal entities
Nominees
Total
Number
%
Number
%
Number
%
Number
%
Americas
of which: US
Asia Pacific
Europe, Middle East and Africa
of which: Germany
of which: UK
of which: rest of Europe
of which: Middle East and Africa
Switzerland
Total shares registered
Total shares not registered
Total shares
At year-end 2025, UBS owned 249,882,523 UBS Group AG treasury shares, which corresponded to 7.48% of the total
share capital of UBS Group AG. At the same time, UBS had acquisition positions relating to 275,102,479 voting rights of
UBS Group AG, including the aforementioned treasury shares, and disposal positions relating to 643,775,392 such rights,
corresponding to 8.23% and 19.27% of the total voting rights of UBS Group AG, respectively. Of the disposal positions,
160,092,701 related to voting rights on shares deliverable in respect of employee awards. The calculation methodology
for the acquisition and disposal positions is based on the Ordinance of the Swiss Financial Market Supervisory Authority
on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading, which states that all future
potential share delivery obligations, irrespective of the contingent nature of the delivery, must be considered.
›
Refer to the “UBS shares” section of this report for more information about UBS Group shares
Employee share ownership
Employee share ownership is encouraged and made possible in a variety of ways. Our Equity Plus Plan is a voluntary plan
that provides eligible employees with the opportunity to purchase UBS Group AG shares at market value and receive, at
no additional cost, one notional UBS Group AG share for every three shares purchased. Additional shares vest after a
maximum of three years, provided the employee remains employed by UBS and has retained the purchased shares
throughout the holding period. The Equity Ownership Plan (the EOP) is a mandatory deferral plan for all employees that
are subject to deferral requirements (regulatory-driven or total compensation greater than USD / CHF 300,000) but do
not receive LTIP awards. EOP recipients receive a portion of their deferred performance award in notional shares (or
notional funds under the Fund Ownership Plan for employees in Investment Areas within Asset Management). GEB
members and most Managing Directors reporting to the GEB and their direct reports at MD level
1
based Long-Term Incentive Plan (the LTIP) instead of the EOP. Both the EOP and LTIP include employment conditions and
malus conditions that allow the firm to reduce or fully forfeit unvested deferred awards under certain circumstances,
pursuant to performance and harmful acts provisions. In addition, forfeiture is triggered in cases where employment has
been terminated for cause. Underlining our emphasis on sustainable performance and risk management, and to support
delivering on our ambitious integration goals and business / financial targets, LTIP awards will only vest if predetermined
performance conditions are met.
On 31 December 2025, UBS employees held at least 6.94% of UBS shares outstanding (including approximately 4.55%
in unvested deferred notional shares from our compensation programs). These figures are based on known shareholding
information from employee participation plans, personal holdings with UBS and selected individual retirement plans. At
the end of 2025, at least 28.24% of all employees held UBS shares through the firm’s employee share participation plans.
›
Refer to the “Compensation” section of this report for more information
Trading restrictions in UBS shares
UBS employees with regular access to unpublished price-sensitive information about the firm are subject to specific
restrictions in respect to UBS financial instruments, including, but not limited to, pre-clearance requirements and regular
blackout periods. Such UBS employees are not permitted to trade UBS financial instruments in the period starting from
the close of business in New York on the seventh business day of the final month of the financial quarter of UBS Group AG
and ending at close of business on the day of the publication of the quarterly financial results.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 161
Shares and participation certificates
UBS Group AG has a single class of shares, which are registered shares in the form of uncertificated securities (in the
sense of the Swiss Code of Obligations). Each registered share has a nominal value of CHF 0.10 and carries one vote,
subject to the restrictions set out under “Transferability, voting rights and nominee registration” below.
We have no participation certificates outstanding.
UBS Group AG shares are listed on SIX and also on the New York Stock Exchange (the NYSE) as global registered shares.
As such, they can be traded and transferred across applicable borders, without the need for conversion, with identical
shares traded on different stock exchanges in different currencies.
›
Refer to the “UBS shares” section of this report for more information
Distributions to shareholders
The decision to pay a dividend and the amount of any dividend depend on a variety of factors, including our profits, cash
flow generation and capital ratios.
At the 2026 AGM, the BoD is proposing to shareholders for approval a dividend of USD 1.10 per share for the 2025
financial year. Shareholders whose shares are held through SIX SIS AG will receive dividends in Swiss francs, based on an
exchange rate published on the day prior to the ex-dividend date. Shareholders holding shares through The Depository
Trust Company in New York or Computershare will be paid dividends in US dollars.
In compliance with Swiss tax law, 50% of the dividend will be paid out of retained earnings and the balance will be paid
out of the capital contribution reserve. Dividends paid out of capital contribution reserves are not subject to Swiss
withholding tax. The portion of the dividend paid out of retained earnings will be subject to a 35% Swiss withholding
tax. For US federal income tax purposes, we expect that the dividend will be paid out of current or accumulated earnings
and profits.
If the proposed dividend distribution out of retained earnings and out of the capital contribution reserve is approved at
the AGM on 15 April 2026, the payment of USD 1.10 (or the Swiss franc equivalent) per share will be made on 23 April
2026 to holders of shares on the record date 22 April 2026 on SIX and the NYSE. However, on SIX the shares will be
traded ex-dividend as of 21 April 2026, and, accordingly, the last day on which the shares may be traded with entitlement
to receive the dividend will be 20 April 2026. On the NYSE the shares will be traded ex-dividend as of 22 April 2026, and
the last day on which the shares may be traded with entitlement to receive the dividend will be 21 April 2026.
The 2022 share repurchase program was concluded at the end of its two-year term on 28 March 2024. In total,
298,537,950 UBS Group AG shares were repurchased, representing 8.62% of the registered share capital of UBS
Group AG at the time. The total repurchase volume amounted to CHF 5,009,665,264 (USD 5,244,697,247). On 12 April
2023, the Swiss Takeover Board had approved the use of up to 178,031,942 shares repurchased under the 2022 program,
and originally intended for cancellation, for the acquisition of the Credit Suisse Group. The remaining 120,506,008 shares
repurchased were canceled by means of a capital reduction, as approved by the shareholders at the 2025 Annual General
Meeting (the AGM). On 3 April 2024, UBS launched a two-year 2024 share repurchase program of up to USD 2bn and
completed it on 23 May 2025. In total, 63,776,550 UBS Group AG shares were repurchased, representing 1.91% of the
current registered share capital of UBS Group AG. The total repurchase volume amounted to CHF 1,738,798,331
(USD 1,999,932,111). All shares repurchased under this program are intended to be canceled by way of capital reduction,
which will be subject to shareholder approval at the AGM on 15 April 2026.
On 1 July 2025, UBS launched a two-year 2025 share repurchase program of up to USD 2bn in UBS Group AG shares
and completed it on 20 November 2025. In total, 52,582,575 UBS Group AG shares were repurchased, representing
1.6% of the current registered share capital of UBS Group AG. The total repurchase volume amounted to
CHF 1,601,650,555 (USD 1,999,994,509). All shares repurchased under this program are intended to be canceled by
way of capital reduction, which will be subject to shareholder approval at a future AGM.
On 4 February 2026, UBS launched a share repurchase program of up to USD 3bn in UBS Group AG shares. The program
started on 5 February 2026 and will end at the latest on 4 February 2028 or earlier if either the maximum amount of
USD 3bn has been reached or 10% of the registered share capital has been repurchased. UBS intends to repurchase
USD 3bn of shares in 2026 with the aim to do more. The amount of additional repurchases is subject to further clarity
around the future regulatory regime in Switzerland, UBS’s financial performance and maintaining a CET1 capital ratio of
around 14%. Beyond 2026, UBS intends to continue to pursue share repurchases that will be calibrated based on UBS’s
financial results and capital ratio and the final outcome and timing of the implementation of the new regulatory regime
in Switzerland.
›
Refer to the “UBS shares” section of this report for more information about the share repurchase programs
Transferability, voting rights and nominee registration
We do not apply any restrictions or limitations on the transferability of UBS Group AG shares. Voting rights may be
exercised without any restrictions by shareholders entered into the UBS share register if they expressly render a declaration
of beneficial ownership according to the provisions of the AoA.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 162
We have special provisions for the registration of nominees. Nominees are entered in the UBS share register with voting
rights up to a total of 5% of all issued UBS Group AG shares if they agree to disclose, upon our request, beneficial owners
holding 0.3% or more of all issued UBS Group AG shares. An exception to the 5% voting limit rule is in place for securities
clearing organizations, such as The Depository Trust Company in New York.
›
Refer to “Shareholders’ participation rights” in this section for more information
Convertible bonds and options
UBS Group AG has issued additional tier 1 (AT1) instruments that have terms providing an equity conversion feature; on
31 December 2025, such instruments with an aggregate principal amount of USD 12.9bn equivalent were outstanding.
›
Refer to the “Capital management” section of this report for more information about our outstanding capital instruments
On 31 December 2025, there were no employee options or stock appreciation rights outstanding. Option-based
compensation plans are sourced by issuing new shares out of UBS Group AG’s conditional capital. On 31 December
2025, UBS Group AG had USD 12,170,583 in conditional capital available for the issuance of new shares for this purpose.
›
Refer to “Conditional capital” in this section for more information
›
Refer to “Note 26 Employee benefits: variable compensation” in the “Consolidated financial statements” section of this report for
more information about outstanding options and stock appreciation rights
1
Includes senior managers who received LTIP awards for the 2023 and 2024 performance year and who are no longer reporting to the GEB or their direct reports at MD level, excludes MDs in Asset Management
Investment Areas (who receive the Fund Ownership Plan instead of the LTIP ).
Shareholders’ participation rights
We are committed to shareholder participation in decision-making processes. Our online voting platform offers registered
shareholders a convenient log-in and online voting process. For the 2026 AGM, registered shareholders will for the first
time be sent a personal invitation without the comprehensive invitation materials but containing the forms for an
admission card and voting instructions, as well as a personal one-time password and a QR code to easily log into the
online voting platform, where they can enter their voting instructions or order an admission card for the general meeting
electronically.
Shareholders who do not explicitly choose to receive the invitation with the forms for an admission card and voting
instructions, as well as the personal one-time password are informed of upcoming general meetings by a short letter only
containing a personal one-time password, a QR code for online voting and a reference to
ubs.com/agm
,
where all
information for the upcoming meeting is available.
General meetings offer shareholders the opportunity to raise questions for the BoD, the GEB and internal and external
auditors.
Voting rights, restrictions and representation
We place no restrictions on share ownership and voting rights. However, certain limitations apply to nominees pursuant
to general principles formulated by the BoD. Nominees normally represent a large number of individual shareholders and
may hold an unlimited number of shares. Nominees have voting rights limited to a maximum of 5% of all issued UBS
Group AG shares if they agree to disclose, upon our request, beneficial owners holding 0.3% or more of all issued UBS
Group AG shares. Any shares above the 5% limit, or for which no agreement exists to disclose the beneficiaries, are
entered in the share register without voting rights. This 5% limit has been implemented to avoid large shareholders being
entered in the UBS share register via nominees so as to exercise influence without directly registering their shares with
UBS. An exception to the 5% voting limit rule is in place for securities clearing organizations, such as The Depository
Trust Company in New York .
Shareholders can exercise voting rights conferred by shares only if they are registered in our share register with voting
rights. To register, shareholders must confirm that they have acquired UBS Group AG shares in their own name and for
their own account.
All shareholders registered with voting rights are entitled to participate in general meetings. If they do not wish to attend
in person, they may issue instructions to support, reject or abstain for each individual item on the meeting agenda, either
by giving instructions to an independent proxy in accordance with article 14 of the AoA or by granting a written power
of attorney to a third person of their choice (which does not need to be a shareholder) to vote on their behalf.
Alternatively, registered shareholders may issue their voting instructions to the independent proxy electronically through
our online voting platform. Nominees normally submit the proxy material to the beneficial owners and forward the
collected votes to the independent proxy.
›
Refer to article 14 of the AoA, available at
ubs.com/governance
, for more information about the issuing of instructions to
independent voting right representatives
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 163
Statutory quorums
Motions are decided at a general meeting by a majority of the votes represented, excluding blank and invalid ballots. For
the approval of certain specific issues, the Swiss Code of Obligations requires a positive vote from a two-thirds majority
of the votes represented at the given general meeting and from a majority of the nominal value of shares represented
thereat. Such issues include creating shares with privileged voting rights, introducing restrictions on the transferability of
registered shares, creating conditional capital or introducing a capital band or reserve capital and restricting or excluding
shareholders’ preemptive rights.
The AoA also require a two-thirds majority of votes represented for approval of any change to their provisions regarding
the number of BoD members, any decision to remove one-quarter or more of the BoD members and any modification to
the provision establishing this qualified quorum.
Votes and elections are generally conducted electronically to ascertain the exact number of votes represented. Voting by
a show of hands is possible if a clear majority is predictable. Shareholders representing at least 3% of the votes
represented may request that a vote or election be carried out electronically or by written ballot. To allow shareholders
to clearly express their views on all individual topics, each agenda item is separately put to a vote and BoD members are
elected on a person-by-person basis.
Convocation of general meetings of shareholders
The AGM must be held within six months of the close of the financial year (i.e. 31 December). In 2026, the AGM will
take place on 15 April.
Extraordinary general meetings (EGMs) may be convened whenever the BoD or the auditors consider it necessary.
Shareholders individually or jointly representing at least 5% of the share capital may at any time, including during an
AGM, require, by way of a written statement, that an EGM be convened to address a specific issue they put forward.
A personal invitation, including a detailed agenda, is made available to every registered shareholder at least 20 days
ahead of each scheduled general meeting. The items on the agenda are also published in the Swiss Official Gazette of
Commerce, as well as at
ubs.com/agm.
Placing of items on the agenda
Pursuant to the AoA, shareholders individually or jointly representing shares with an aggregate minimum nominal value
of USD 62,500 may submit requests for items to be placed on the agenda for consideration at the next general meeting
of shareholders or for motions relating to agenda items to be included in the notice to convene the general meeting.
In January of each year, the invitation to submit such agenda items or motions relating to agenda items is published in
the Swiss Official Gazette of Commerce and at
ubs.com/agm.
to be placed on the agenda must include the actual motions to be put forward, together with a short explanation. Such
requests must be submitted to the BoD no later than the deadline published by UBS Group AG, including a statement
from the depository bank confirming the number of shares held by the requesting shareholder(s) and that these shares
are blocked from sale until the end of the general meeting of shareholders. The BoD formulates opinions on such requests
from shareholders, which are published together with the motions from the BoD.
Registrations in the UBS share register
The UBS share register, where around 241,578 UBS Group AG shareholders are directly registered on 24 February 2026,
is an internal, non-public register subject to statutory confidentiality, secrecy, privacy and data protection regulations
protecting registered shareholders. In general, third parties and shareholders have no inspection rights with regard to
data related to other shareholders. Disclosure of such data is permitted only in specific and limited instances. In line with
the Swiss Federal Act on Data Protection, the disclosure of personal data as defined thereunder is only allowed with the
consent of the registered shareholder and in cases where there is an overriding private or public interest or if explicitly
provided for by Swiss law. The Swiss Federal Act on Financial Market Infrastructures and Market Conduct in Securities
and Derivatives Trading contains specific reporting duties, such as in relation to significant shareholders (refer to
“Significant shareholders” in this section for more information). Disclosure may also be required or requested by a court
of a competent jurisdiction, by any regulatory body that regulates the conduct of UBS Group AG or by other statutory
provisions.
The general rules for entry into our Swiss share register with voting rights are described in article 5 of our AoA. The same
rules apply to our US transfer agent that operates the US share register for all UBS Group AG shares in a custodian
account in the US, where some 634,439 US shareholders are indirectly registered via nominees on 22 January 2026. In
order to determine the voting rights of each shareholder, our share register generally closes two business days prior to a
general meeting. Our independent proxy agent processes voting instructions from shareholders as long as technically
possible, generally also until two business days before a general meeting. Such technical closure of our share register
facilitates the determination of the actual voting rights of every shareholder that issued a voting instruction. Irrespective
of this technical closure, shares that are registered in our share register are never immobilized and such closure does not
affect the tradability of such shares at any time, irrespective of any issued voting instructions.
›
Refer to article 5 of our AoA, available at
ubs.com/governance
, for more information about the general rules for entry into the
UBS share register
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 164
Board of Directors
The Board of Directors of UBS Group AG (the BoD), led by the Chairman, consists of between 6 and 12 members, as per
our AoA.
The BoD decides on the strategy of the Group, upon recommendation by the Group Chief Executive Officer (the Group
CEO), and is responsible for the overall direction, supervision and control of the Group and its management. It is also
responsible for supervising compliance with applicable laws, rules and regulations. The BoD exercises oversight over UBS
Group AG and its subsidiaries, and is responsible for establishing a clear Group governance framework to provide effective
steering and supervision of the Group, taking into account the material risks to which UBS Group AG and its subsidiaries
are exposed. The BoD has ultimate responsibility for the success of the Group and for delivering sustainable shareholder
value within a framework of prudent and effective controls. It approves all financial statements and appoints and removes
all members of the Group Executive Board.
Members of the Board of Directors
At the AGM on 10 April 2025, Colm Kelleher was re-elected as Chairman of the Board and Lukas Gähwiler, Jeremy
Anderson, William C. Dudley, Patrick Firmenich, Fred Hu, Mark Hughes, Gail Kelly, Julie G. Richardson and Jeanette Wong
were re-elected as members of the BoD. Renata Jungo Brüngger and Lila Tretikov were elected to the BoD as new
members. At that same AGM, Julie G. Richardson and Jeanette Wong were re-elected and Gail Kelly elected as members
of the Compensation Committee.
ADB Altorfer Duss & Beilstein AG was re-elected as independent proxy agent. Following
their election, the BoD appointed Lukas Gähwiler as Vice Chairman and Jeremy Anderson as Senior Independent Director
of UBS Group AG. On 1 July 2025, Markus Baumann retired as the Group Company Secretary of UBS Group AG, and
the BoD appointed Michael Schoch as the new Group Company Secretary of UBS Group AG.
On 24 October 2025, the BoD announced that Lukas Gähwiler would not stand for re-election at the forthcoming AGM,
deciding to retire after a 45-year career in financial services and serving on the BoD for four years, and that Markus
Ronner would be nominated for election to the BoD at the same AGM. Markus Ronner has been a member of the GEB
since 2018 and was Group Chief Compliance and Governance Officer until 31 December 2025.
On 27 February 2026, the BoD announced that William C. Dudley and Jeanette Wong had decided to not stand for re-
election, each after seven years of service on the BoD. At the forthcoming AGM, Agustín Carstens and Luca Maestri will
be nominated for election to the BoD. Agustín Carstens served as General Manager of the Bank of International
Settlements from 2017 to 2025 and formerly was Governor of the Bank of Mexico. Luca Maestri currently holds the
position of Vice President of Corporate Services at Apple Inc. and earlier served as its CFO for over 10 years.
Article 31 of our AoA limits the number of mandates that members of the BoD may hold outside UBS Group to four
mandates in listed companies and five additional mandates in non-listed companies. Mandates in companies that are
controlled by us or that control us are not subject to this limitation. In addition, members of the BoD may hold no more
than 10 mandates at UBS’s request and 10 mandates in associations, charitable organizations, foundations, trusts, and
employee welfare foundations without commercial purpose. On 31 December 2025, no member of the BoD reached any
of these thresholds.
The following biographies provide information about the BoD members who were in office after the 2025 AGM. In
addition to information on mandates, the biographies include information on memberships or other activities or
functions, as required by the SIX Swiss Exchange Corporate Governance Directive.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 165
Colm Kelleher
Chairman of the Board of Directors, independent and non-
executive member of the Board since 2022
–
Chairperson of the Corporate Culture and Responsibility Committee
of UBS Group AG since 2022
–
Chairperson of the Governance and Nominating Committee of UBS
Group AG since 2022
Nationality:
Year of birth:
Colm Kelleher was elected Chairman of UBS in April 2022. In March 2023,
he led the successful negotiations for UBS to acquire the Credit Suisse
Group. He served as President of Morgan Stanley until retiring from that
firm in 2019, overseeing both the Institutional Securities Business and
Wealth Management. Before that, he was Co-President and then
President of Morgan Stanley Institutional Securities. During the global
financial crisis, he held the position of CFO and Co-Head Corporate
Strategy from 2007 to 2009. Mr. Kelleher is a well-respected leader in the
financial services sector. His 30-year career with Morgan Stanley attests to
his solid leadership experience in banking and excellent relationships
around the world. He has a deep understanding of the global banking
landscape and broad banking experience across all the geographical
regions and major business areas in which UBS operates.
Professional experience
2016 – 2019
President, Morgan Stanley, responsible for Institutional
Securities and Wealth Management
2011 – 2016
CEO of Morgan Stanley International, Morgan Stanley
2013 – 2015
President, Institutional Securities, Morgan Stanley
2010 – 2012
Co-President, Institutional Securities, Morgan Stanley
2007 – 2009
CFO and Co-Head Corporate Strategy, Morgan Stanley
2006 – 2007
Head Global Capital Markets, Morgan Stanley
2004 – 2006
Co-Head Fixed Income, Europe, Morgan Stanley
1989 – 2004
Various roles, Morgan Stanley
Education
–
Master’s degree, modern history, the University of Oxford
–
Fellow of the Institute of Chartered Accountants in England and
Wales
Other activities and functions
–
Chairman of the Board of Directors of UBS AG
–
Member of the Board of Directors of the Bretton Woods Committee
–
Member of the Board of the Swiss Finance Council
–
Member of the Board of the International Monetary Conference
–
Member of the Board of the Bank Policy Institute
–
Member of the Board of Americans for Oxford
–
Visiting Professor of Banking and Finance, Loughborough Business
School
–
Member of the European Financial Services Round Table
–
Member of the European Banking Group
–
Member of the International Advisory Council of the China Securities
Regulatory Commission
–
Member of the Chief Executive’s Advisory Council (Hong Kong)
Key competencies
–
Banking (wealth management, asset management, personal and
corporate banking) and insurance
–
Investment banking, capital markets
–
Finance, audit, accounting
–
Risk management, compliance and legal
Leadership experience
–
CEO, Chairman
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 166
Lukas Gähwiler
Vice Chairman, non-independent and non-executive
member of the Board since 2022
–
Member of the Governance and Nominating Committee of UBS Group
AG since 2023
–
Member of the Risk Committee of UBS Group AG and UBS AG
since 2023
Nationality:
Year of birth:
Lukas Gähwiler brings a wealth of industry experience and an in-depth
understanding of UBS to the Board of Directors of UBS. He served as
Chairman of the Board of UBS Switzerland AG for five years and was
previously a member of the Group Executive Board of UBS and President
UBS Switzerland, responsible for the private clients, wealth management,
corporate and institutional clients, investment banking, and asset
management businesses in UBS’s home market. Before joining UBS, Mr.
Gähwiler worked for Credit Suisse for over twenty years, his last role being
Chief Credit Officer, Global Private and Corporate Banking. In addition to
his leadership and industry experience across all parts of the banking
business, his strong connections and network, particularly in Switzerland,
are instrumental for the firm. After the acquisition of the Credit Suisse Group
in 2023, Mr. Gähwiler served as Chairman of Credit Suisse AG.
Professional experience
2023 – 2024
Chairman of the Board of Directors of Credit Suisse AG
2017 – 2022
Chairman of the Board of Directors of UBS Switzerland AG
2010 – 2016
Member of the Group Executive Board,
UBS and President UBS Switzerland
2003 – 2010
Chief Credit Officer, Global Private and Corporate
Banking, Credit Suisse
2002 – 2003
Head Credit Risk Management, Corporate Clients
Switzerland, Credit Suisse
1998 – 2001
Chief of Staff to CEO, Private and Corporate Clients,
Credit Suisse
1990 – 1998
Various senior front office roles in Corporate Clients in
Switzerland and North America, Credit Suisse
1981 – 1986
Client Advisor Retail and Wealth Management,
St.Galler Kantonalbank
Education
–
Advanced Management Program, Harvard Business School
–
MBA program, International Bankers School, New York
–
Bachelor’s degree, business administration, University of Applied
Sciences, St. Gallen
Non-listed company boards
–
Vice Chairman of the Board of Directors of Pilatus Aircraft Ltd
–
Member of the Board of Directors of Ringier AG
Other activities and functions
–
Vice Chairman of the Board of Directors of UBS AG
–
Member of the Board and Board Committee of economiesuisse
–
Chairman of the Employers Association of Banks in Switzerland
–
Member of the Board of Directors of the Swiss Employers Association
–
Member of the Board of Directors and the Board of Directors
Committee of the Swiss Bankers Association
–
Member of the Board of the Swiss Finance Council
–
Member of the Board of Trustees of Avenir Suisse
Key competencies
–
Banking (wealth management, asset management, personal and
corporate banking) and insurance
–
Finance, audit, accounting
–
Risk management, compliance and legal
–
Human resources management, including compensation
Leadership experience
–
CEO, Chairman
Jeremy Anderson
Senior Independent Director since 2020, independent and non-
executive member of the Board since 2018
–
Chairperson of the Audit Committee of UBS Group AG and UBS AG
since 2018
–
Member of the Governance and Nominating Committee of UBS
Group AG since 2019
Nationality:
Year of birth:
Jeremy Anderson is a financial services veteran, with more than 30 years’
experience working in the banking and insurance sector in an advisory
capacity, covering a broad range of topics, including strategy, audit and
risk management, technology-enabled transformation, mergers, and bank
restructuring. Before retiring from KPMG in 2017, he was its Chairman of
Global Financial Services. Mr. Anderson is also an IT expert, having started
out as a software developer in the early 1980s, before working in IT
consulting and developing a broad knowledge of systems integration and
IT outsourcing services, as well as software development. He cemented his
reputation as a tech specialist by becoming a founding sponsor of KPMG’s
Global Fintech Network in 2014.
Professional experience
2010 – 2017
Chairman of Global Financial Services, KPMG International
2008 – 2011
Head of Clients and Markets KPMG Europe, KPMG
International
2006 – 2011
Head of Financial Services KPMG Europe, KPMG
International
2004 – 2006
Head of Financial Services KPMG UK, KPMG International
2002 – 2004
Member of the Group Management Board and Head of
UK operations, Atos Origin SA
1985 – 2002
KPMG consulting UK, KPMG
1980 – 1985
Software developer, Triad Computing Systems
Education
–
Bachelor’s degree, economics, University College London
Listed company boards
–
Member of the Board of Prudential plc (chair of the risk committee)
Non-listed company boards
–
Chairman of Lamb’s Passage Holding Ltd
Other activities and functions
–
Member of the Board of Directors of UBS AG
–
Member of the Board of Credit Suisse International
–
Trustee of the UK’s Productivity Leadership Group
Key competencies
–
Banking (wealth management, asset management, personal and
corporate banking) and insurance
–
Finance, audit, accounting
–
Risk management, compliance and legal
–
Technology, including artificial intelligence and cybersecurity
Leadership experience
–
Executive board leadership
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 167
William C. Dudley
Independent and non-executive member of the Board since 2019
–
Member of the Corporate Culture and Responsibility Committee of
UBS Group AG since 2019
–
Member of the Risk Committee of UBS Group AG and UBS AG
since 2019
Nationality:
Year of birth:
William C. Dudley served as the President and CEO of the Federal Reserve
Bank of New York for nine years. He demonstrated exceptional leadership
in monetary policy and as a top regulator, including during the years of
the global financial crisis. During that period, his additional area of focus
included cultural behavior and social and governance topics in the
financial services industry. He also served as the Vice Chairman and a
permanent member of the Federal Open Market Committee. Mr. Dudley
brings a wealth of experience in banking and research thanks to his former
management positions at Goldman Sachs Group and Morgan Guaranty
Trust.
Professional experience
2009 – 2018
President and CEO, the Federal Reserve Bank of New York
2007 – 2009
Executive Vice President and Head Markets Group,
the Federal Reserve Bank of New York
2006
Senior advisor (part-time), Goldman Sachs Group
2002 – 2005
Partner and Director US Economic Research Group,
Goldman Sachs Group
1996 – 2002
Managing Director and Director US Economic Research
Group, Goldman Sachs Group
1983 – 1996
Economist at Goldman Sachs Group, Morgan Guaranty
Trust Company, and Board of Governors of the Federal
Reserve System
Education
–
Bachelor of Arts, New College of Florida
–
Doctorate, economics, University of California, Berkeley
Listed company boards
–
Member of the Global Advisory Council of Coinbase
Non-listed company boards
–
Member of the Advisory Board of Suade Labs
Other activities and functions
–
Member of the Board of Directors of UBS AG
–
Senior Advisor to the Griswold Center for Economic Policy Studies,
Princeton University
–
Member of the Group of Thirty
–
Member of the Council on Foreign Relations
–
Chairman of the Bretton Woods Committee Board of Directors
–
Member of the Board of the Council for Economic Education
Key competencies
–
Investment banking, capital markets
–
Risk management, compliance and legal
–
Regulatory authority, central bank
–
Environmental, social and governance (ESG)
Leadership experience
–
CEO, Chairman
Patrick Firmenich
Independent and non-executive member of the Board since 2021
–
Member of the Audit Committee of UBS Group AG and UBS AG
since 2021
–
Member of the Corporate Culture and Responsibility Committee
of UBS Group AG since 2021
Nationality:
Year of birth:
Patrick Firmenich was Chairman of the Board of Firmenich International
SA, a privately owned fragrances and flavorings company, from 2016 to
2023 and its CEO for 12 years. In 2023, he became Vice Chairman of
dsm–firmenich, a listed company. He has demonstrated his
entrepreneurial leadership by significantly advancing the Firmenich
group’s global position through organic and in-organic growth and
succeeded in transforming the organization to continuously respond to
client needs and the market environment. He developed an ambitious
sustainability strategy for the group to lead the industry in health, safety
and environmental performance. Before joining Firmenich, he held several
positions in the legal and banking sectors, including working as an
international investment banking analyst.
Professional experience
2016 – 2023
Chairman of the Board of Firmenich International SA,
Geneva
2014 – 2016
Vice Chairman of the Board, Firmenich International SA,
Geneva
2002 – 2014
CEO, Firmenich SA, Geneva
2001 – 2002
Corporate Vice President, Special Operations,
Firmenich SA, Geneva
1997 – 2001
Vice President Fine Fragrance worldwide and
Président Directeur Général, Firmenich & Cie, Paris,
and Firmenich Inc, New York
1993 – 1997
Vice President Fine Fragrance North America,
Firmenich Inc, New York
1990 – 1993
Account Manager, Firmenich & Cie, Paris
1988 – 1989
Analyst, International Investment Banking, Credit Suisse
First Boston
1988
Production administrator, Firmenich SA de CV, Mexico
1984 – 1986
Attorney, Business Law, Patry, Junet, Simon & Le Fort,
Geneva
Education
–
Master’s degree, law, University of Geneva, admitted to the bar
in Geneva
–
MBA, INSEAD Fontainebleau
Listed company boards
–
Vice Chairman of the Board of dsm–firmenich (chair of the
governance and nomination committee)
Other activities and functions
–
Member of the Board of Directors of UBS AG
–
Member of the Advisory Council of the Swiss Board Institute
Key competencies
–
Finance, audit, accounting
–
Risk management, compliance and legal
–
Human resources management, including compensation
–
Environmental, social and governance (ESG)
Leadership experience
–
CEO, Chairman
Annual Report 2025 |
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Fred Hu
Independent and non-executive member of the Board since 2018
–
Member of the Governance and Nominating Committee of UBS
Group AG since 2020
Nationality:
Year of birth:
Fred Hu has been the Chairman and CEO of Primavera Capital Group, an
Asia-based private investment firm focused on emerging technology and
innovative industries, since founding it in 2010. In that role he oversees
the overall strategy, talent development, and culture and assumes the
primary responsibilities for establishing and maintaining the long-term
partnerships with global investors. Prior to that, he was a Partner and
Chairman for Greater China at Goldman Sachs. Mr. Hu has a profound
understanding of China’s economy and rapidly developing financial
system, and a vast amount of experience in founding, advising and
investing in leading firms in the tech, consumer and health-care sectors in
China and globally. He has worked at the IMF and advised the Chinese
government on economic policy.
Professional experience
2010 – date
Founder, Chairman and CEO, Primavera Capital Group,
China
2008 – 2010
Partner and Chairman of Greater China, Goldman Sachs
2004 – 2008
Partner and Co-Head, Investment Banking, China,
Goldman Sachs
Education
–
Master’s degree, engineering science, Tsinghua University
–
Master’s degree and doctorate, economics, Harvard University
Listed company boards
–
Non-executive Chairman of the Board of Yum China Holdings (chair of
the nomination and governance committee)
–
Member of the Board of Chubb Limited
Non-listed company boards
–
Chairman of Primavera Capital Ltd
Other activities and functions
–
Member of the Board of Directors of UBS AG
–
Trustee of the China Medical Board
–
Member of the Global Board of The Nature Conservancy and Co-
Chairman of its Asia Pacific Council
–
Member of the Board of Trustees, the Institute for Advanced Study
Key competencies
–
Banking (wealth management, asset management, personal and
corporate banking) and insurance
–
Investment banking, capital markets
–
Technology, including artificial intelligence and cybersecurity
–
Regulatory authority, central bank
Leadership experience
–
CEO, Chairman
Mark Hughes
Independent and non-executive member of the Board since 2020
–
Chairperson of the Risk Committee of UBS Group AG and UBS AG
since 2020
–
Member of the Corporate Culture and Responsibility Committee
of UBS Group AG since 2020
Nationality:
Year of birth:
Mark Hughes is a highly experienced professional in the financial services
sector, having spent more than 35 years working for RBC (the Royal Bank
of Canada) in Canada, the US and the UK. In his final role as Group Chief
Risk Officer of RBC, he was responsible for the strategic management of
risk on an enterprise-wide basis and oversaw all risk functions. During his
career, Mr. Hughes has also held senior management positions in the front
office and key operational roles. Currently, he is a frequent lecturer at the
University of Leeds and the University of Manchester (both in England)
and is Director Emeritus of the Global Risk Institute, bringing an enormous
amount of experience as a risk specialist to the Board of Directors of UBS.
Professional experience
2014 – 2018
Group Chief Risk Officer and member
Group Executive Committee, RBC
2013
Deputy Chief Risk Officer, RBC
2008 – 2013
COO, RBC Capital Markets, RBC
2001 – 2008
Head of Global Credit, RBC
1999 – 2001
Head of Debt Products, RBC
1998 – 1999
Senior Vice President and General Manager USA, RBC
1997 – 1998
Senior Vice President Financial Services, RBC
1982 – 1996
Various positions, RBC
Education
–
Bachelor of Laws (LL.B.), University of Leeds
–
MBA, finance, University of Manchester
Other activities and functions
–
Member of the Board of Directors of UBS AG
–
Senior advisor to McKinsey & Company
Key competencies
–
Banking (wealth management, asset management,
personal and corporate banking) and insurance
–
Investment banking, capital markets
–
Risk management, compliance and legal
–
Technology, including artificial intelligence and cybersecurity
Leadership experience
–
Executive board leadership
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 169
Renata Jungo Brüngger
Independent and non-executive member of the Board since 2025
–
Member of the Corporate Culture and Responsibility Committee of
UBS Group AG since 2025
Nationality:
Year of birth:
Renata Jungo Brüngger is a highly respected professional with extensive
experience in legal affairs, governance, integrity and sustainability. She
was a member of the Board of Management of Daimler AG (now
Mercedes-Benz Group AG) from 2016 to October 2025. Her
responsibilities include the areas of integrity, governance and sustainability
throughout the Mercedes-Benz Group AG, its group’s legal department
and the compliance, legal product and technology organization, as well
as corporate data protection and corporate audit. She was also
responsible for overseeing the implementation of integrity and
sustainability management across the company. Ms. Jungo Brüngger
joined the former Daimler AG as Head of Legal and Executive Vice
President in 2011. Previously, she was General Counsel for Corporate
EMEA and Vice President / General Counsel for Emerson Process
Management EMEA, Emerson Electric (Switzerland and the US) and before
that worked for the legal department of Metro Holding AG and the Swiss
law firm Bär & Karrer.
Professional experience
2019 –
October 2025
Member of the Board of Management for Integrity,
Governance & Sustainability, Mercedes Benz Group AG
(formerly Daimler AG) and Mercedes Benz AG
2016 – 2019
Member of the Board of Management for Integrity & Legal
Affairs, Daimler AG
2011 – 2015
Head of Legal and Executive Vice President, Daimler AG
2000 – 2011
General Counsel Corporate EMEA & Vice
President / General Counsel Emerson Process Management
EMEA, Emerson Electric
1995 – 2000
Corporate Legal Counsel, Divisional Director, Metro
Holding AG
1994
Secondment, Sidley & Austin
1990 – 1994
Lawyer (associate), Bär & Karrer
Education
–
Masters of Laws (LL.M.) in international commercial law, University
of Zurich
–
Admission to the bar
–
Licentiate (bilingual German / French) in Law (Lic. iur.), University
of Fribourg
Listed company boards
–
Member of the Supervisory Board of Daimler Truck Holding AG
–
Member of the Supervisory Board of Daimler Truck AG
–
Member of the Supervisory Board of Munich Re (chair of
remuneration committee)
Other activities and functions
–
Member of the Board of Directors of UBS AG
–
Member of the Board of Trustees of Internationale Bachakademie
Stuttgart
–
Member of the Board of Trustees of Gesellschaft der Freunde von
Bayreuth e. V. (Friends of Bayreuth)
Key competencies
–
Finance, audit, accounting
–
Risk management, compliance and legal
–
Human resources management, including compensation
–
Environmental, social and governance (ESG)
Leadership experience
–
Executive board leadership
Gail Kelly
Independent and non-executive member of the Board since 2024
–
Member of the Compensation Committee of UBS Group AG and UBS
AG since 2025
–
Member of the Governance and Nominating Committee of UBS
Group AG since 2024
Nationality:
Year of birth:
Gail Kelly brings to the board more than 35 years of executive financial
services experience in South Africa and Australia. She served as the Group
CEO and Managing Director for two banks in Australia: St. George Bank,
from 2002 to 2007, followed by Westpac Banking Corporation, from
2008 to 2015. During her tenure as CEO, Ms. Kelly navigated Westpac
through the challenges of the global financial crisis in 2008 and 2009 and
the successful merger with St. George Bank in 2008, the largest in-market
financial services merger in Australia. Westpac’s market capitalization
more than doubled over her tenure as CEO. After her executive career,
Ms. Kelly continues to hold a portfolio of roles, leveraging her experience
and insights as a global leader. She was a Senior Global Advisor for UBS
from 2016 to 2023.
Professional experience
2008 – 2015
Group CEO and Managing Director,
Westpac Banking Corporation
2002 – 2007
Group CEO and Managing Director, St. George Bank
1999 – 2001
Group Executive, Customer Service Division,
Commonwealth Bank of Australia
1997 – 1999
Group Manager, Strategic Marketing, Commonwealth
Bank of Australia
1990 – 1997
Various General Manager positions, Nedbank Group,
South Africa
Education
–
Bachelor of Arts, the University of Cape Town
–
MBA, University of Witwatersrand, Johannesburg
Listed company boards
–
Member of the Board of Singtel Communications (chair of the
executive resource and compensation committee)
Other activities and functions
–
Member of the Board of Directors of UBS AG
–
Member of the Group of Thirty
–
Member of the Board of Directors of the Bretton Woods Committee
–
Member of the Australian American Leadership Dialogue Advisory
Board
–
Senior advisor to McKinsey & Company
Key competencies
–
Banking (wealth management, asset management, personal and
corporate banking) and insurance
–
Investment banking, capital markets
–
Human resources management, including compensation
–
Regulatory authority, central bank
Leadership experience
–
CEO, Chairman
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 170
Julie G. Richardson
Independent and non-executive member of the Board since 2017
–
Chairperson of the Compensation Committee of UBS Group AG and
UBS AG since 2019
–
Member of the Risk Committee of UBS Group AG and UBS AG since
2017
Nationality:
Year of birth:
Julie G. Richardson spent more than 25 years on Wall Street as a senior
investment banker and private equity investor, with a focus on telecom,
media and technology. She began her career at Merrill Lynch, before
moving to JPMorgan Chase, where she headed the telecommunications,
media and technology investment banking group. Later, she moved into
private equity, as head, and subsequently senior advisor, of the New York
office of Providence Equity Partners, where she spearheaded many
important investments and buyouts. Throughout her career, Ms.
Richardson has spent substantial amounts of time with both incumbent
and new technology companies, acting as an independent board member
of a digital knowledge management company, a leading cloud monitoring
firm and a cyber insurance company.
Professional experience
2012 – 2014
Senior advisor, Providence Equity Partners, New York
2003 – 2012
Partner and Head of the New York office,
Providence Equity Partners, New York
1998 – 2003
Vice Chairman of the Investment Banking division of
JPMorgan Chase & Co. and Head of its Global
Telecommunications, Media and Technology group
1986 – 1998
Various positions at Merrill Lynch, final position: Managing
Director Media and Communications Investment Banking
Education
–
Bachelor’s degree, business administration, University of
Wisconsin–Madison
Listed company boards
–
Member of the Board of BXP
–
Member of the Board of Datadog (chair of the audit committee)
Non-listed company boards
–
Member of the Board of Fivetran
–
Member of the Board of Coalition, Inc.
Other activities and functions
–
Member of the Board of Directors of UBS AG
Key competencies
–
Investment banking, capital markets
–
Risk management, compliance and legal
–
Human resources management, including compensation
–
Technology, including artificial intelligence and cybersecurity
Lila Tretikov
Independent and non-executive member of the Board since 2025
–
Member of the Audit Committee of UBS Group AG and UBS AG since
2025
Nationality:
Year of birth:
Lila Tretikov is widely recognized as a leading authority on artificial
intelligence (AI) and technology-driven business transformation. She
currently serves as a Partner at New Enterprise Associates, Inc. (NEA), a
prominent Silicon Valley venture capital firm, where she leads AI strategy.
From 2018 to 2024, Ms. Tretikov held senior executive roles at Microsoft
Corporation, culminating in her position as Deputy Chief Technology
Officer, overseeing major AI initiatives that drove significant strategic
transformation. Prior to that, she served as Senior Vice President and
CEO & Vice Chair Terrawatt at Engie SA, a global energy company
headquartered in France. Earlier in her career, Ms. Tretikov was CEO of
the Wikimedia Foundation & Wikipedia Endowment, where she pioneered
Wikipedia’s AI strategy. A distinguished software engineer and
programmer, she continues to shape the landscape of AI adoption,
innovation and policy worldwide.
Professional experience
2024 – date
Partner and Head of Artificial Intelligence Strategy, New
Enterprise Associates, Inc.
2020 – 2024
Corporate Vice President and Deputy Chief Technology
Officer, Microsoft Corporation
2018 – 2020
Corporate Vice President, Artificial Intelligence, Perception
and Mixed Reality, Microsoft Corporation
2016 – 2018
Senior Vice President and CEO & Vice Chair
Terrawatt, Engie SA / Terrawatt initiative
2014 – 2016
CEO, Wikimedia Foundation & Wikipedia Endowment
2007 – 2014
Chief Product Officer and Chief Officer of product,
marketing, cloud infrastructure, IT, support and services,
SugarCRM
2005 – 2007
General Manager, mobile and software, Evolving Systems
2004 – 2005
General Manager, risk & compliance, SOX digital, Bank of
America Corporation
1993 – 2004
Various technical roles, early career
Education
–
Computer science (specializing in AI) and visual art, the University of
California, Berkeley
–
Post-graduate-level studies at the University of Oxford Saïd Business
School and University of Stanford Directors’ College
Listed company boards
–
Member of the Board of Capgemini SE
–
Member of the Board of Volvo Car Corporation
–
Member of the Board of Xylem Inc.
Non-listed company boards
–
Member of the Board of Zendesk Inc.
–
Member of the Board of Backflip AI, Inc.
–
Member of the Board of Cusp AI Limited
–
Member of the Board of Horizon 3 AI, Inc.
Other activities and functions
–
Member of the Board of Directors of UBS AG
Key competencies
–
Finance, audit, accounting
–
Risk management, compliance and legal
–
Technology, including artificial intelligence and cybersecurity
–
Environmental, social and governance (ESG)
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 171
Jeanette Wong
Independent and non-executive member of the Board since 2019
–
Member of the Audit Committee of UBS Group AG and UBS AG since
2019
–
Member of the Compensation Committee of UBS Group AG and UBS
AG since 2020
Nationality:
Year of birth:
Jeanette Wong has more than 30 years of operational experience in the
financial sector in Singapore. She retired from DBS Group in 2019, where
she was Group Executive responsible for the institutional banking
business, a post that encompassed corporate banking, global transaction
services, strategic advisory, and mergers and acquisitions. She has also
held the positions of Director of DBS Bank (China) Limited, Chairperson of
DBS Bank (Taiwan) Ltd and CFO of DBS Group. During a 16-year career
with JPMorgan, Ms. Wong helped build up its Asia FX, fixed income and
emerging markets business. She brings extensive experience from serving
as a member of the board of directors of two high-value listed companies.
Professional experience
2008 – 2019
Group Executive institutional banking business, DBS Bank,
Singapore
2003 – 2008
CFO, DBS Bank, Singapore
2003
Chief Administration Officer, DBS Bank, Singapore
1997 – 2002
Country Manager Singapore, JPMorgan, Singapore
1986 – 1997
Various roles in Global Markets and Emerging Markets
Sales and Trading business, Asia, JPMorgan, Singapore
1984 – 1986
Manager, Private Banking, Citibank, Singapore
1982 – 1984
Manager, Corporate Banking, Paribas, Singapore
Education
–
Bachelor’s degree, business administration, the National University
of Singapore
–
MBA, University of Chicago
Listed company boards
–
Member of the Board of Prudential plc (chair of the audit committee)
–
Member of the Board of Singapore Airlines Limited (chair of the board
compensation and industrial relations committee)
Non-listed company boards
–
Member of the Board of GIC Pte Ltd
–
Member of the Board of PSA International
Other activities and functions
–
Member of the Board of Directors of UBS AG
–
Chairman of the CareShield Life Council
–
Member of the Securities Industry Council
–
Member of the Board of Trustees of the National University
of Singapore
Key competencies
–
Banking (wealth management, asset management,
personal and corporate banking) and insurance
–
Investment banking, capital markets
–
Finance, audit, accounting
–
Environmental, social and governance (ESG)
Leadership experience
–
Executive board leadership
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 172
Elections and terms of office
Shareholders annually elect each member of the BoD individually, as well as the Chairman and the members of the
Compensation Committee, based on proposals from the BoD.
As set out in the Organization Regulations, BoD members are normally expected to serve for at least three years. BoD
members are limited to serving for a maximum of 10 consecutive terms of office; in exceptional circumstances, the BoD
may extend that limit.
›
Refer to “Skills, expertise and training of the Board of Directors” in this section for more information
Organizational principles and structure
Following each AGM, the BoD meets to appoint one or more Vice Chairmen, a Senior Independent Director, the BoD
committee members (other than the Compensation Committee members, who are elected by the shareholders) and the
respective committee Chairpersons. At the same meeting, the BoD appoints the Group Company Secretary, who,
pursuant to the Organization Regulations, acts as secretary to the BoD and its committees.
Pursuant to the AoA and the Organization Regulations, the BoD meets as often as business requires but at least six times
a year. The presence of either the Chairman, one of the Vice Chairmen or the Senior Independent Director, as well as the
majority of the members of the BoD, is required to pass valid BoD resolutions. In 2025, the majority of the meetings of
the BoD were held in person. During 2025, a total of 38 BoD meetings were held, 13 of which were attended by GEB
members. The average participation in the BoD meetings was 97%. In addition to the BoD meetings attended by GEB
members, the Group CEO regularly attended some of the meetings of the BoD without the participation of other GEB
members. The meetings had an average duration of 110 minutes.
The BoD held a two-day strategy workshop, which focused on reconfirming the firm’s key strategic priorities, including
the integration of Credit Suisse. These were further discussed in meetings throughout the year, with deep dives on the
Asia Pacific and Americas regions. The progress of the integration of Credit Suisse was covered regularly.
Board of Directors
Members in 2025
Meeting attendance
without GEB
1
Meeting attendance
with GEB
Key responsibilities include:
Colm Kelleher, Chairman
25/25
100%
13/13
100%
The BoD has ultimate responsibility for the success of the Group and for
delivering sustainable shareholder value within a framework of prudent
and effective controls. It decides on the Group’s strategy and the
necessary financial and human resources, upon recommendation of the
Group CEO, and sets the Group’s values and standards to ensure that
the Group’s obligations to shareholders and other stakeholders are met.
›
Refer to the Organization Regulations of UBS Group AG,
available at
ubs.com/governance
, for more information
Lukas Gähwiler
25/25
100%
13/13
100%
Jeremy Anderson
25/25
100%
13/13
100%
Claudia Böckstiegel
2
4/5
80%
4/6
67%
William C. Dudley
25/25
100%
13/13
100%
Patrick Firmenich
25/25
100%
13/13
100%
Fred Hu
23/25
92%
10/13
77%
Mark Hughes
25/25
100%
13/13
100%
Renata Jungo Brüngger
3
21/21
100%
8/8
100%
Gail Kelly
23/25
92%
13/13
100%
Nathalie Rachou
2
5/5
100%
6/6
100%
Julie G. Richardson
25/25
100%
13/13
100%
Lila Tretikov
3
20/21
95%
7/8
88%
Jeanette Wong
25/25
100%
13/13
100%
1
2
3
AGM, Renata Jungo Brüngger and Lila Tretikov were newly elected to the Board of Directors; indicated are their attended and total meetings.
At the BoD meetings, each committee chair provides the BoD with an update on the committee’s activities and important
issues. We also continued with the coordination and exchange of information between the BoD of UBS Group AG and
its significant group entities, including between the respective chairs of the risk and audit committees. As in prior years,
an annual workshop was held for non-executive board members of all significant group entities.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 173
Performance assessment
In spring 2025, the BoD self-assessment was conducted in-house, with an extensive questionnaire. The results confirmed
that the BoD operated efficiently and effectively. Every three years, an external review assesses the effectiveness of the
BoD. The most recent review was conducted with the support of an external vendor between September 2025 and
January 2026. The process included interviews with selected members of the GEB and the Head Group Internal Audit, a
detailed questionnaire completed by all members of the BoD and in-depth individual interviews with all members of the
BoD and the Group Company Secretary. In addition, a detailed benchmarking of the composition of the BoD against
relevant peer companies was conducted. Drawing on these analytical inputs and its experience from more than 300
comparable projects across Europe, the vendor assessed the BoD as ranking in the top 10% of boards in terms of
effectiveness. Overall BoD and committee composition is considered fit for purpose. The BoD is characterized by strong
corporate oversight, proactive risk anticipation, in-depth strategic discussions and a sustained commitment to best
practices through regular evaluations and external benchmarking. Its culture is characterized by high levels of trust. The
BoD has strong relationships with management, maintains an effective Chairman–CEO partnership and takes a systematic
approach to CEO and BoD succession. The BoD also ensures sustained engagement with investors, reflecting its focus on
transparency and alignment.
BoD committees
The committees listed below assist the BoD with fulfilling its responsibilities. These committees and their charters are
described in our Organization Regulations, available at
ubs.com/governance.
business requires but no less than four times a year in the case of the Audit Committee, the Risk Committee and the
Compensation Committee and no less than twice a year in the case of the Corporate Culture and Responsibility
Committee (the CCRC) and the Governance and Nominating Committee.
Topics of common interest or affecting more than one committee are discussed at joint committee sessions. During 2025,
a total of 12 joint committee sessions were held. The Audit Committee met four times with the Risk Committee and five
times with the CCRC. The Risk Committee met twice with the CCRC and once with the Compensation Committee.
Audit Committee
Throughout 2025, the Audit Committee consisted of four independent BoD members; after the 2025 AGM Lila Tretikov
joined the committee and Nathalie Rachou stepped down. All Audit Committee members have accounting or related
financial management expertise and, in compliance with the rules established pursuant to the 2002 US Sarbanes–Oxley
Act, at least one member qualifies as a financial expert. The NYSE standards on corporate governance regarding
independence of board members are applicable to the Audit Committee of UBS Group AG. In addition, Rule 10A-3 under
the US Securities Exchange Act sets more stringent independence requirements for members of audit committees, in that
they should not receive, directly or indirectly, any consulting, advisory or compensatory fees from any member of the
Group other than in their capacity as a BoD member, should not hold, directly or indirectly, UBS Group AG shares in
excess of 5% of the outstanding capital thereof and should not serve on the audit committees of more than two other
public companies. Throughout 2025 all members of the Audit Committee satisfied the applicable requirements.
During 2025, the Audit Committee held 12 committee meetings, with a participation rate of 98%. The meetings had an
average duration of approximately 145 minutes. Additional attendees included the Group CFO, the Group Controller,
the Chief Accounting Officer, the Head Group Internal Audit and the external auditors. The Chairman of the BoD, the
Vice Chairman and the Group CEO attended most meetings. The Chairperson and the committee continued to maintain
regular contact with core supervisory authorities.
Audit Committee
Members in 2025
Meeting attendance
Key responsibilities include:
Jeremy Anderson (Chairperson)
12/12
100%
The function of the Audit Committee is to support the BoD in fulfilling its oversight duty relating
to financial reporting and internal controls over financial reporting, the effectiveness of the
external and internal audit functions, and the effectiveness of whistleblowing procedures.
Management is responsible for the preparation, presentation and integrity of the financial
statements, while the external auditors are responsible for auditing financial statements. The Audit
Committee’s responsibility is one of oversight and review.
›
Refer to the Organization Regulations of UBS Group AG,
available at
ubs.com/governance
, for more information
Patrick Firmenich
12/12
100%
Nathalie Rachou
1
4/4
100%
Lila Tretikov
2
7/8
88%
Jeanette Wong
12/12
100%
1
Nathalie Rachou stepped down at the 2025 AGM; indicated are her attended and total meetings.
2
meetings.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 174
Compensation Committee
Throughout 2025, the Compensation Committee consisted of three members; at the 2025 AGM Gail Kelly was newly
elected to the committee replacing Fred Hu. In addition to the key responsibilities indicated in the table below, the
Compensation Committee reviews the compensation disclosures included in this report.
During 2025, the Compensation Committee held eight meetings, with a participation rate of 100%. The meetings had
an average duration of approximately 75 minutes. All meetings in 2025 were held in the presence of the Chairman and
the Group CEO. External advisors were present when required. In 2025, the Chairperson met regularly with core
supervisory authorities.
›
Refer to “Compensation for the Board of Directors” in the “Compensation” section of this report for more information about the
Compensation Committee’s decision-making procedures
Compensation Committee
Members in 2025
Meeting attendance
Key responsibilities include:
Julie G. Richardson (Chairperson)
8/8
100%
The Compensation Committee is responsible for:
(i)
supporting the BoD in its duties to set guidelines on compensation and benefits;
(ii) approving the total compensation for the Chairman and the non-independent BoD members;
(iii) proposing, upon proposal of the Chairman, financial and non-financial performance targets
(iv) proposing, upon proposal of the Chairman, the Group CEO’s performance assessment for
(v) proposing, upon proposal of the Chairman, the total compensation for the Group CEO for
approval by the BoD; and
(vi) proposing, upon proposal of the Group CEO, the individual total compensation for the other
›
Refer to the Organization Regulations of UBS Group AG,
available at
ubs.com/governance
, for more information
Fred Hu
1
2/2
100%
Gail Kelly
2
6/6
100%
Jeanette Wong
8/8
100%
1
At the 2025 AGM, Fred Hu stepped down from this committee; indicated are his attended and total meetings.
2
meetings.
Corporate Culture and Responsibility Committee
Throughout 2025, the CCRC consisted of five independent BoD members; after the 2025 AGM Renata Jungo Brüngger
joined the committee, replacing Claudia Böckstiegel. The Chairman chaired the committee. Additional attendees included
the Group CEO, the Group Chief Risk Officer, the GEB Lead for Sustainability and Impact, the Group General Counsel
and the Chief Sustainability Officer. During 2025, seven meetings were held, with a participation rate of 97%. The
average duration of each of the meetings was approximately 65 minutes.
Corporate Culture and Responsibility Committee
Members in 2025
Meeting attendance
Key responsibilities include:
Colm Kelleher (Chairperson)
7/7
100%
The CCRC supports the BoD in its duties to safeguard and advance the Group’s reputation for
responsible and sustainable conduct. Its function is forward-looking in that it monitors and reviews
societal trends and transformational developments and assesses their potential relevance for the
Group.
In undertaking this assessment, it reviews stakeholder concerns and expectations pertaining to the
societal performance of UBS and to the development of its corporate culture. The CCRC’s function
also encompasses the monitoring of the current state and implementation of the programs and
initiatives within the Group pertaining to corporate culture and corporate responsibility, including
sustainability.
›
Refer to the Organization Regulations of UBS Group AG,
available at
ubs.com/governance
, for more information
Claudia Böckstiegel
1
3/4
75%
William C. Dudley
7/7
100%
Patrick Firmenich
7/7
100%
Mark Hughes
7/7
100%
Renata Jungo Brüngger
2
3/3
100%
1
At the 2025 AGM, Claudia Böckstiegel stepped down from this committee; indicated are her attended and total meetings.
2
indicated are her attended and total meetings.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 175
Governance and Nominating Committee
Before the 2025 AGM, the Governance and Nominating Committee, chaired by the Chairman, consisted of four
independent members and the Vice Chairman, and, at the 2025 AGM, Nathalie Rachou stepped down. During 2025, six
meetings were held, with a participation rate of 97%. The average duration of each of the meetings was approximately
30 minutes. The Group CEO attended meetings as appropriate.
Governance and Nominating Committee
Members in 2025
Meeting attendance
1
Key responsibilities include:
Colm Kelleher (Chairperson)
6/6
100%
The function of the Governance and Nominating Committee is to support the BoD in fulfilling its
duty to establish best practices in corporate governance across the Group, including conducting a
BoD assessment, establishing and maintaining a process for appointing new BoD and GEB
members, as well as for the annual performance assessment of the BoD.
›
Refer to the Organization Regulations of UBS Group AG,
available at
ubs.com/governance
, for more information
Lukas Gähwiler
6/6
100%
Jeremy Anderson
6/6
100%
Fred Hu
5/6
83%
Gail Kelly
6/6
100%
Nathalie Rachou
2
2/2
100%
1
Additionally, one ad hoc call took place in 2025.
2
Risk Committee
Throughout 2025, the Risk Committee consisted of three independent members and the Vice Chairman. It held eleven
committee meetings, with a participation rate of 100%. The average duration of each of the meetings was approximately
165 minutes. The Chairman of the BoD, the Group CEO, the Group CFO, the Group Chief Risk Officer, the Group Chief
Operations and Technology Officer, the Group Treasurer, the Group Chief Compliance and Governance Officer, the
Group General Counsel, the Head Group Internal Audit, and the external auditors attended the meetings as required.
The Chairperson and the committee continued to maintain regular contact with core supervisory authorities.
Risk Committee
Members in 2025
Meeting attendance
Key responsibilities include:
Mark Hughes (Chairperson)
11/11
100%
The function of the Risk Committee is to oversee and support the BoD in fulfilling its duty to set
and supervise an appropriate risk management and control framework in the areas of:
(i)
financial and non-financial risks;
(ii) balance sheet, treasury and capital management, including funding,
›
Refer to the Organization Regulations of UBS Group AG,
available at
ubs.com/governance
, for more information
Lukas Gähwiler
11/11
100%
William C. Dudley
11/11
100%
Julie G. Richardson
11/11
100%
Ad hoc committees
The Strategy Committee is an ad hoc committee, which holds meetings as and when required. Its primary purpose is to
support the BoD with the assessment of strategic considerations. The Strategy Committee held one meeting in 2025.
The Special Committee was an ad hoc committee, which held meetings as and when required. Its primary purpose was
to support the BoD with overseeing activities related to selected litigation matters. In 2025, the Special Committee held
no meetings and was dissolved.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 176
Roles and responsibilities of the Chairman of the Board of Directors
At the 2025 AGM, Colm Kelleher was re-elected as the Chairman of the BoD. The Chairman coordinates tasks within
the BoD, calls BoD meetings and sets the meeting agendas. He presides over all general meetings of shareholders, chairs
the Governance and Nominating Committee, as well as the CCRC, and works with the committee Chairpersons to
coordinate the work of all BoD committees. Together with the Group CEO, the Chairman undertakes responsibility for
UBS’s reputation, and is responsible for effective communication with shareholders and other stakeholders, including
government officials, regulators and public organizations. This is in addition to establishing and maintaining close working
relationships with the Group CEO and other GEB members, and providing advice and support when appropriate.
›
Refer to “Employees” in the “Our stakeholders” section of this report for information about our Pillars, Principles and Behaviors
In 2025, the Chairman met regularly with core supervisors in all major locations where UBS is active. Meetings with other
important supervisory authorities were scheduled on an ad hoc or needs-driven basis.
Roles and responsibilities of the Vice Chairmen and the Senior Independent Director
The BoD appoints one or more Vice Chairmen and a Senior Independent Director. If the BoD appoints more than one
Vice Chairman, at least one of them must be independent. Both the Vice Chairman and the Senior Independent Director
support and advise the Chairman. In conjunction with the Chairman and the Governance and Nominating Committee,
they facilitate good Group-wide corporate governance, as well as balanced leadership and control within the Group, the
BoD and the committees.
After the 2025 AGM, Lukas Gähwiler was re-appointed by the BoD as Vice Chairman and has held that post since 2022.
Jeremy Anderson was re-appointed the Senior Independent Director after that same meeting and has held that post since
2020. The Vice Chairman is required to lead meetings of the BoD in the temporary absence of the Chairman. Together
with the Governance and Nominating Committee, either the Senior Independent Director or the Vice Chairman is tasked
with the ongoing monitoring and the annual evaluation of the Chairman. The Vice Chairman also represents UBS on
behalf of the Chairman in meetings with internal or external stakeholders. In particular, Lukas Gähwiler represents UBS
across a broad range of associations and industry bodies in Switzerland.
The Senior Independent Director enables and supports communication and the flow of information among the
independent BoD members. At least twice a year, he organizes and leads a meeting of the independent BoD members
without the participation of the Chairman. In 2025, two independent BoD meetings were held with a participation rate
of 90% and an average duration of approximately 100 minutes. The Senior Independent Director also relays to the
Chairman any issues or concerns raised by the independent BoD members and acts as a point of contact for shareholders
and stakeholders seeking discussions with an independent BoD member
.
Important business connections of independent members of the Board of Directors
As a global financial services provider and a major Swiss bank, UBS has business relationships with many large companies,
including some in which BoD members have management or independent board responsibilities. The Governance and
Nominating Committee determines in each instance whether the nature of the Group’s business relationship with such
a company might compromise our BoD members’ capacity to express independent judgment.
Our Organization Regulations require three-quarters of the members of the BoD to be independent. For this purpose,
independence is determined in accordance with FINMA Circular 2017/1 “Corporate governance – banks” and taking
into account the relevant NYSE rules.
›
Refer to the “Differences from corporate governance standards relevant to US-listed companies” section of this report for more
information
In 2025, our BoD met the standards of the Organization Regulations for the percentage of directors who are considered
independent under the criteria described above. No current BoD member has either an employment contract or a
significant business connection to UBS or any of its subsidiaries. No BoD member currently carries out operational
management tasks within the Group. On 31 December 2025, except for the Vice Chairman, who was Chairman of UBS
Switzerland AG until April 2022, no BoD member has carried out operational management tasks within the Group over
the past three years.
All relationships and transactions with UBS Group AG’s independent BoD members are conducted in the ordinary course
of business and are on the same terms as those prevailing at the time for comparable transactions with non-affiliated
persons. All relationships and transactions with BoD members’ associated companies are conducted at arm’s length.
›
Refer to “Note 29 Related parties” in the “Consolidated financial statements” section of this report for more information
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 177
Checks and balances: the Board of Directors and the Group Executive Board
We operate under a strict dual board structure, as mandated by Swiss banking law. The separation of responsibilities
between the BoD and the GEB is clearly defined in the Organization Regulations. The BoD decides on the strategy of the
Group, upon recommendations by the Group CEO, and exercises ultimate supervision over management; whereas the
GEB, headed by the Group CEO, has executive management responsibility. The functions of Chairman and Group CEO
are assigned to two different persons, leading to a separation of powers. This structure establishes checks and balances
and preserves the institutional independence of the BoD from the executive management of the Group, for which
responsibility is delegated to the GEB. No member of one board may simultaneously be a member of the other.
Supervision and control of the GEB remain with the BoD. The authorities and responsibilities of the two bodies are
governed by the AoA and the Organization Regulations.
Skills, expertise and training of the Board of Directors
The BoD is well-diversified and composed of members with a broad spectrum of skills, educational backgrounds,
experience, and expertise from a range of sectors that reflect the nature and scope of the firm’s business. The Governance
and Nominating Committee maintains a competencies and experience matrix to identify gaps in the competencies and
experiences considered most relevant to the BoD, taking into consideration the firm’s business exposure, risk profile,
strategy and geographic reach.
In recent years, the composition of the BoD has been systematically shaped to meet changing requirements. Recent
nominations, including Gail Kelly in 2024, Renata Jungo Brüngger and Lila Tretikov in 2025, and additional candidates
proposed in February 2026, reflect a continuous process that aims to strengthen and ensure the long-term and enhanced
composition of the Board.
Key competencies
–
banking (wealth management, asset management, personal and corporate banking) and insurance
–
investment banking, capital markets
–
finance, audit, accounting
–
risk management, compliance and legal
–
human resources management, including compensation
–
technology, including artificial intelligence and cybersecurity
–
regulatory authority, central bank
–
environmental, social and governance (ESG)
Leadership experience
–
experience as a CEO or chairperson
–
executive board leadership experience (e.g. as CFO, chief risk officer or COO of a listed company)
The Governance and Nominating Committee reviews these categories and ratings annually to confirm that the BoD
continues to possess the most relevant experience and competencies to perform its duties.
With regard to the composition of the BoD after the 2025 AGM, the BoD members thereof identified all of the target
competencies as being their key competencies. Particularly strong levels of experience and expertise existed in these areas:
–
financial services;
–
risk management, compliance and legal; and
–
finance, audit, accounting.
Furthermore, 10 of the 12 BoD members have held or currently hold chairperson, CEO or other executive board-level
leadership positions.
Moreover, we consider the continuous education of our BoD members to be an important priority and support their
attendance of various training sessions. In addition to a comprehensive induction program for new BoD members,
continuous training and topical deep dives are part of the BoD agenda.
Cybersecurity governance
Cybersecurity, as one of the inherently highest and most rapidly evolving non-financial risks, is a key focus for the BoD.
It is primarily covered at the joint meetings between the Risk Committee and the Audit Committee with the Quarterly
Cyber Risk Updates. These quarterly updates, combined with dedicated deep dives for the full BoD, provide the BoD with
assessments of the firm’s cyber-risk posture, cyber-attack surfaces and vectors and security measures, cyber maturity, and
associated improvement measures, as well as updates on the cybersecurity threat environment and lessons learned from
cybersecurity incidents across the globe and industries. Cyber risk is also covered in the quarterly Group Technology Risk
Taxonomies Report discussed at the Risk Committee.
›
Refer to “Risk governance” in the “Risk management and control” section of this report for information about our risk
governance framework
›
Refer to “Non-financial risk” in the “Risk management and control” section of this report for information about cybersecurity
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 178
Succession planning
Succession planning is one of the key responsibilities of both the BoD and the GEB. Across all divisions and regions, an
inclusive talent development and succession planning process is in place that aims to foster the personal development
and Group-wide mobility of our employees. Although the recruiting process for BoD and GEB members takes into account
a broad spectrum of factors, such as skills, backgrounds, experience and expertise, our approach with regard to diversity
considerations does not constitute a diversity policy within the meaning of the EU Directive on Non-Financial Reporting,
and Swiss law does not require UBS to maintain such a policy.
With the close involvement of the BoD, the GEB continues to further strengthen internal succession planning at UBS.
This includes the early identification of talents and their systematic development, including international and cross-
divisional rotations. The succession plans for the GEB and the management layers below it are managed under the lead
of the Group CEO and are reviewed and approved annually by the BoD.
For the BoD, the Chairman leads a systematic succession planning process as illustrated in the chart below. Our strategy
and the business environment constitute the main drivers in our succession planning process for new BoD members, as
they define the key competencies required on the BoD. Taking the diversity and the tenure of the existing BoD into
account, the Governance and Nominating Committee defines the recruiting profile for the search. Both external and
internal sources contribute to identifying suitable candidates. The Chairman and the members of the Governance and
Nominating Committee meet with potential candidates and, with the support of the full BoD, nominations are submitted
to the AGM for approval. New BoD members follow an in-depth onboarding process designed to enable them to
integrate efficiently and become effective in their new role. Due to this succession planning process, the composition of
the BoD is in line with the demanding requirements of a leading global financial services firm.
The smooth and effective succession at the GEB level and the appointments of internal talent as new GEB members
demonstrates the strength of the succession planning at UBS. The BoD and the GEB remain committed to the continuous
focus on developing a high-quality bench of succession candidates at all levels in the organization.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 179
Information and control instruments with regard to the Group Executive Board
The BoD is informed about the GEB’s activities in various ways, including meetings between the Chairman, the Group
CEO and GEB members. At BoD meetings the Group CEO and other GEB members provide updates about significant
issues. The BoD receives reports about major developments, performance and forecasts and its members are updated
between meetings about highly important matters. The Chairman reviews the meeting material and minutes of GEB
meetings. BoD members may request from other BoD or GEB members any information about matters that they need.
The BoD is supported with its responsibilities by Group Internal Audit, which independently assesses whether risk
management, control and governance processes are designed and operating sustainably and effectively.
The Head Group Internal Audit reports directly to the Chairman and the function has a reporting line to the Audit
Committee, as per our Organization Regulations. The Audit Committee assesses the independence and performance of
the function and the effectiveness of both its Head and its organization, approves its annual audit plan and objectives,
and monitors its delivery thereof.
Group Internal Audit issues quarterly and annual reports about significant audit results and key issues, as well as themes
and trends, based on individual audits, continuous risk assessment and issue assurance. The reports are sent to the
Chairman, the Audit and the Risk Committees, the GEB and other stakeholders. The function Head regularly updates the
Chairman and the Audit Committee about its activities, processes, audit plan execution, resourcing requirements and
other important developments.
›
Refer to “Group Internal Audit” in this section for more information
›
Refer to “Internal risk reporting” in the “Risk management and control” section of this report for information about reporting to
the BoD
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 180
Group Executive Board
The BoD delegates the management of the business to the Group Executive Board (the GEB).
Responsibilities, authorities and organizational principles of the Group Executive Board
On 31 December 2025, the GEB, under the leadership of the Group CEO, consisted of 15 members. It has executive
management responsibility for the steering of the Group and its business, develops the strategies of the Group, business
divisions and Group functions, and implements the BoD-approved strategies. The GEB is also the risk council of the
Group, with overall responsibility for establishing and supervising the implementation of risk management and control
principles, as well as for managing the risk profile of the Group, as determined by the BoD and the Risk Committee.
In 2025, the GEB held a total of 27 meetings.
›
Refer to the Organization Regulations of UBS Group AG, available at
ubs.com/governance
, for more information about the
authorities of the Group Executive Board
Changes to the Group Executive Board
On 24 October 2025, UBS announced a number of changes to the GEB, effective on 1 January 2026. As covered in the
BoD section, Markus Ronner stepped down as Group Chief Compliance and Governance Officer and will be nominated
as a member of the BoD at the AGM in April 2026. Michelle Bereaux, previously Group Integration Officer, became Group
Chief Compliance and Operational Risk Control Officer. Beatriz Martin took on the role of Group Chief Operating Officer
in addition to her existing responsibilities and continued to act as President EMEA. The Governmental and Regulatory
Affairs and Group Security functions, previously part of the Group Compliance, Regulatory and Governance function,
now reports to Group CFO Todd Tuckner and Head Group Human Resources and Corporate Services Stefan Seiler,
respectively.
On 15 December 2025, UBS announced that Mike Dargan had decided to step down as Group Chief Operations and
Technology Officer at the end of December to pursue an opportunity outside of UBS. The Group Technology function
now reports to Beatriz Martin after she took up her new role as Group Chief Operating Officer on 1 January 2026.
The biographies below provide information about the GEB members in office on 31 December 2025. In addition to
information on mandates, the biographies include memberships and other activities or functions, as required by the SIX
Swiss Exchange Corporate Governance Directive.
In line with Swiss law, article 36 of our AoA limits the number of mandates that GEB members may hold outside UBS
Group to one mandate in a listed company and five additional mandates in non-listed companies. Mandates in companies
that are controlled by UBS or that control UBS are not subject to this limitation. In addition, GEB members may not hold
more than 10 mandates at one time at the request of the company and more than eight mandates in associations,
charitable organizations, foundations, trusts and employee welfare foundations without commercial purpose. On
31 December 2025, no member of the GEB reached the aforementioned thresholds.
Responsibilities and authorities of the Asset and Liability Committee
The Asset and Liability Committee of UBS Group AG (the GALCO) is responsible for managing assets and liabilities in line
with the strategy, risk appetite, regulatory commitments and the interests of shareholders and other stakeholders. The
GALCO proposes the framework for capital management, capital allocation, and liquidity and funding risk, and proposes
limits and indicators for the Group to the BoD for approval. It oversees the balance sheet management of the Group, its
business divisions and Group functions. In 2025, the GALCO held 12 meetings.
Management contracts
We have not entered into management contracts with any companies or natural persons that do not belong to the
Group.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 181
Sergio P. Ermotti
Group Chief Executive Officer,
member of the GEB
from 2011 to 2020 and since 2023
Nationality:
Year of birth:
Sergio P. Ermotti has been Group CEO of UBS Group AG and President of
the Executive Board of UBS AG since 2023. He was also the Group CEO
from 2011 to 2020. He re-joined UBS from Swiss Re, where he was
Chairman of the Board of Directors until 2023. Prior to joining UBS in
2011, he was at UniCredit Group, where from 2007 to 2010 he served as
Group Deputy CEO and Head of Corporate & Investment Banking and
Private Banking, prior to which he served as Head of the Markets &
Investment Banking Division. Before that, he held various positions at
Merrill Lynch & Co. in the areas of equity derivatives and capital markets.
He became Co-Head of Global Equity Markets and a member of the
Executive Management Committee for Global Markets & Investment
Banking in 2001.
Professional experience
2023 – date
Group CEO, UBS Group AG, and
President of
the Executive Board,
UBS AG
2021 – 2023
Chairman of the Board of Directors, Swiss Re
2020 – 2021
Member of the Board of Directors, Swiss Re
2011 – 2020
Group CEO, UBS
2011
Chairman and CEO UBS Group Europe, Middle East and
Africa, and member of the Group Executive Board, UBS
2007 – 2010
Group Deputy CEO and Head Corporate & Investment
Banking and Private Banking, UniCredit
2005 – 2007
Head Markets & Investment Banking Division, UniCredit
1987 – 2004
Various senior management positions, Merrill Lynch & Co
Education
–
Swiss-certified banking expert
–
Advanced Management Programme, the University of Oxford
Listed company boards
–
Member of the Board of Ermenegildo Zegna N.V. (Lead Non-Executive
Director)
Non-listed company boards
–
Member of the Board of Società Editrice del Corriere del Ticino SA
Other activities and functions
–
President of the Executive Board of
UBS AG
–
Member of the Board of Innosuisse, the Swiss Innovation Agency
–
Member of Institut International d’Etudes Bancaires
–
Member of the WEF International Business Council and Governor of
the Financial Services / Banking Community
–
Member of the MAS International Advisory Panel
–
Member of the Board of the Institute of International Finance
–
Member of the Board of the Swiss-American Chamber of Commerce
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 182
George Athanasopoulos
Co-President Investment Bank,
member of the GEB since 2024
Nationality:
Year of birth:
George Athanasopoulos became Co-President of the Investment Bank in
2024. He jointly manages the Investment Bank with Marco Valla across all
regions to ensure an unparalleled global offering for our client franchise.
Since joining UBS in 2010, Mr. Athanasopoulos has held various senior
roles, including Co-Head of Global Markets from 2020 to 2024 and Head
of Global Family and Institutional Wealth from 2022 to 2024. Before
joining UBS in 2010, he was General Manager at Eurobank EFG and
previously worked for Barclays Capital, most recently responsible for
Global Foreign Exchange and Global Emerging Markets Distribution. He
started his career in 1992, working in Europe and Asia for NatWest
Markets and Merrill Lynch.
Professional experience
2024 – date
Co-President of the Investment Bank,
UBS Group AG and UBS AG
2022 – 2024
Head Global Family and Institutional Wealth, UBS
2020 – 2024
Co-Head of Global Markets, UBS
2016 – 2019
Global Head of Foreign Exchange, Rates and Credit and
Head of Non-Core, UBS
2013 – 2016
Global Co-Head of Foreign Exchange,
Rates and Credit, UBS
2011 – 2013
Co-Head of Global Foreign Exchange and
Precious Metals, UBS
2010 – 2011
Head of Global Foreign Exchange Distribution, UBS
2009 – 2010
General Manager, Group Head of Trading, Sales and
Structuring, Eurobank EFG
2008 – 2009
Global Head of Foreign Exchange and Emerging
Markets Distribution, Barclays Capital
2004 – 2008
Various management positions in FX Markets,
Barclays Capital
Education
–
Master’s degree, shipping, trade and finance, Bayes Business School
–
Diploma in mechanical engineering, the National Technical University
of Athens
Other activities and functions
–
Member of the Executive Board of
UBS AG
Michelle Bereaux
Group
Integration Officer until December 2025, Group Chief
Compliance and Operational Risk Control Officer since January
2026, member of the GEB since 2023
Nationality:
Year of birth:
Michelle Bereaux was appointed Group Chief Compliance and
Operational Risk Control Officer in January 2026. In this role, she is
responsible for developing UBS’s risk management and control framework
for non-financial risks and implementing the independent control
framework for these non-financial risks. Ms. Bereaux has been at UBS for
more than 25 years and has held various leadership roles across the firm.
She has been a member of the GEB since 2023 and acted as Group
Integration Officer from 2023 to 2025 to integrate Credit Suisse into UBS.
Previously, she served as both COO and UK Country Head of Asset
Management and, prior to that, as COO and Head HR for our Investment
Bank.
Professional experience
January
2026
–
date
Group Chief Compliance and Operational Risk Control
Officer, UBS Group AG and Chief Compliance and
Operational Risk Control Officer, UBS AG
2023 –
December 2025
Group Integration Officer, UBS Group AG and Integration
Officer, UBS AG
2021 – 2023
Country Head UBS Asset Management UK and
CEO Asset Management UK Ltd
2020 – 2023
COO, UBS Asset Management
2018 – 2020
Head of Group Efficiency and Cost Management,
UBS Business Solutions AG
2015 – 2018
Non-Executive Director and Chairman Remuneration
Committee, UBS Limited
2011 – 2014
Global Head Human Resources, UBS Investment Bank
2011
Global Strategic Projects at CEO Management Office,
UBS Investment Bank
2009 – 2010
Chief of Staff and Joint Global COO, UBS Investment Bank
Education
–
Bachelor’s degree, law, the University of Cambridge
–
Bachelor’s degree, politics, economics and law, the University of
Buckingham
Other activities and functions
–
Member of the Executive Board of
UBS AG
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 183
Mike Dargan
Group Chief Operations and Technology Officer, member of the
GEB since 2021 (stepped down on 31 December 2025)
Nationality:
Year of birth:
Mike Dargan was appointed Group Chief Operations and Technology
Officer in 2023 and was accountable for delivering digital platforms,
technology services, infrastructure and operations, including cybersecurity
and information security. until he stepped down in December 2025. In his
role, he drove Group-wide innovative and emerging technology solutions
and digitalization and delivered technology services, tools and
infrastructure, including cyber protection and technology security.
Previously, he was Group Chief Digital and Information Officer (CDIO),
having lead Group Technology since joining UBS in 2016. Prior to joining
UBS, he held various senior roles in technology, corporate strategy and
investment banking at Standard Chartered Bank, Merrill Lynch and Oliver
Wyman.
Professional experience
2023 –
December 2025
Group Chief Operations and Technology Officer,
UBS Group AG, and Chief Operations and
Technology Officer, UBS AG
2021 –
December 2025
President of the Executive Board,
UBS Business Solutions AG
2021 – 2023
Group CDIO, UBS Group AG, and CDIO, UBS AG
2016 – 2021
Head Group Technology, UBS
2015 – 2016
CIO for Corporate and Institutional Banking,
Standard Chartered Bank
2014 – 2015
Global Group Technology and Operations Head for
Global Markets, Wealth Management, Private Banking
and Securities Services, Group Technology and Operations
Engineering, Standard Chartered Bank
2013 – 2014
CIO for Financial Markets, Standard Chartered Bank
2009 – 2013
Global Head of Strategy and Corporate M&A,
Global Markets, Standard Chartered Bank
2005 – 2009
Head Corporate Strategy & M&A, EMEA and Pacific Rim,
Merrill Lynch
Education
–
Master’s degree, politics, philosophy and economics,
St. John’s College, the University of Oxford
Other activities and functions
–
Member of the Executive Board of
UBS AG
–
Member of the Board of Directors and President of the Executive
Board of UBS Business Solutions AG
–
Member of the Board of the UBS Optimus Foundation
–
Member of the Advisory Board of SCION Association
Aleksandar Ivanovic
President Asset Management, member of the GEB since 2024
Nationality:
Year of birth:
Aleksandar Ivanovic was appointed President Asset Management in 2024.
With his experience and broad network across the UBS Group, he is
leading the Asset Management business division forward, creating an
even stronger organization through integration and offering investment
capabilities and investment styles with industry-leading capabilities on a
truly global scale. Before joining the GEB, he was Head Client Coverage
and Head of the Europe, Middle East and Africa and Switzerland regions
for Asset Management at UBS. Starting as an apprentice at UBS in 1992,
he has worked in all our business divisions and later held various
leadership roles at Credit Suisse and Morgan Stanley.
Professional experience
2024 – date
President Asset Management, UBS Group AG and
UBS AG
2019 – 2024
Head Region Europe, Middle East and Africa, Asset
Management, UBS
2018 – 2024
Head Client Coverage, Asset Management, UBS
2018 – 2024
Head Region Switzerland, Asset Management, UBS
2017 – 2018
Head Institutional Client Coverage,
Asset Management, UBS
2011 – 2016
Head of Europe, Middle East and Africa, Distribution,
Financial Engineering, Structured Products,
Institutional Equity Derivatives, London,
Morgan Stanley
2008 – 2011
Head of Distribution Northern Europe, Structured
Products, Institutional Equity Derivatives, London,
Credit Suisse
2000 – 2008
Various positions in Global Markets,
UBS Investment Bank, London / Switzerland, UBS
Education
–
Master’s degree, finance, London Business School
–
Bachelor’s degree, Economics and Business Administration,
Hochschule für Wirtschaft Zurich
Other activities and functions
–
Member of the Executive Board of
UBS AG
–
Chairman of UBS Asset Management AG
–
Chairman of UBS Asset Management Switzerland AG
–
Member of the Board of the UBS Optimus Foundation
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 184
Robert Karofsky
Co-President Global Wealth Management and
President UBS Americas, member of the GEB since 2018
Nationality:
Year of birth:
1967
Robert Karofsky became Co-President Global Wealth Management and
President UBS Americas in 2024. He jointly manages Global Wealth
Management across all regions to ensure an unparalleled global offering
for our wealth management client franchise. As President UBS Americas,
he is responsible for the cross-divisional collaboration and represents the
Group to the broader public in the Americas. Mr. Karofsky was President
Investment Bank from 2021 to 2024 and previously Co-President
Investment Bank from 2018 to 2021. Before that, he was President UBS
Securities LLC from 2015 to 2021. Prior to joining UBS, he acquired know-
how in investment banking as an analyst and trader, working for various
financial institutions, including Morgan Stanley, Deutsche Bank and
AllianceBernstein.
Professional experience
2024 – date
Co-President Global Wealth Management and President
UBS Americas, UBS Group AG and UBS AG
2021 – 2024
President Investment Bank, UBS
2018 – 2021
Co-President Investment Bank, UBS
2015 – 2021
President UBS Securities LLC, UBS
2014 – 2018
Global Head Equities, UBS
2011 – 2014
Global Head of Equity Trading, AllianceBernstein
2008 – 2010
Co-Head of Global Equities, Deutsche Bank
2005 – 2008
Head of North American Equities, Deutsche Bank
Education
–
Bachelor’s degree, economics, Hobart and William Smith Colleges,
New York
–
MBA, finance and statistics, the University of Chicago Booth School of
Business
Other activities and functions
–
Member of the Executive Board of
UBS AG
–
Member of the Board of UBS Americas Holding LLC
–
Chair of the Board of the UBS Optimus Foundation US
–
Member of the Board of the American Swiss Foundation
Sabine Keller-Busse
President Personal & Corporate Banking and
President UBS Switzerland, member of the GEB since 2016
Nationality:
Year of birth:
Sabine Keller-Busse was appointed President Personal & Corporate
Banking and President UBS Switzerland in 2021, heading the leading
universal bank in Switzerland. In her role, she oversees our comprehensive
offering in retail and corporate and institutional banking in Switzerland,
selected financial services to businesses and financial institutions globally,
and wealth management services to individuals in Switzerland, which are
provided jointly with Global Wealth Management. She has been a
member of the GEB since 2016 and has served as Group COO, overseeing
technology, operations, human resources and corporate services, and as
President UBS Europe, Middle East and Africa.
Professional experience
2021 – date
President Personal & Corporate Banking and
President UBS Switzerland, UBS Group AG
2021 – date
President of the Executive Board, UBS Switzerland AG
2019 – 2021
President UBS Europe, Middle East and Africa, UBS
2018 – 2021
Group COO of UBS and President of the Executive Board,
UBS Business Solutions AG
2016 – 2021
Member of the Executive Board of UBS AG
2014 – 2017
Group Head Human Resources, UBS
2010 – 2014
COO UBS Switzerland, UBS
Education
–
Master’s degree, economic sciences, University of St. Gallen
–
Ph.D., economic sciences (Dr. oec.), University of St. Gallen
Listed company boards
–
Member of the Board of Zurich Insurance Group
Other activities and functions
–
President of the Executive Board of UBS Switzerland AG
–
Chairwoman of the Foundation Board of the Pension Fund of UBS
–
Chairwoman of the Board of the UBS Optimus Foundation
–
Member of the Board and Board Committee of Zurich Chamber of
Commerce
–
Member of the Foundation Council of the UBS Center for Economics
in Society, University of Zurich
–
Member of the Board of Trustees of the HSG Foundation (University
of St. Gallen)
–
Member of the Foundation Board of Deep Tech Nation Switzerland
–
Member of the Board of the University Hospital Zurich Foundation
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 185
Iqbal Khan
Co-President Global Wealth Management and
President UBS Asia Pacific, member of the GEB since 2019
Nationality:
Year of birth:
Iqbal Khan became Co-President Global Wealth Management and
President UBS Asia Pacific in 2024. He jointly manages Global Wealth
Management across all regions to ensure an unparalleled global offering
for our wealth management client franchise. As Regional President UBS
Asia Pacific, he is responsible for the cross-divisional collaboration and
represents the Group to the broader public in the Asia Pacific region.
Previously, he was President Global Wealth Management from 2022 to
2024 and President UBS Europe, Middle East and Africa from 2021 to
2023. He joined UBS in 2019 as Co-President Global Wealth
Management. Prior to UBS, Mr. Khan was at Credit Suisse, holding senior
leadership positions as CFO Private Banking & Wealth Management and
CEO International Wealth Management. He joined Ernst & Young in 2001,
where he held numerous leadership positions and, upon leaving that
company, he served as lead auditor of UBS.
Professional experience
2024 – date
President UBS Asia Pacific, UBS Group AG and UBS AG
2024 – date
Co-President Global Wealth Management, UBS Group
AG and UBS AG
2022 – 2024
President Global Wealth Management, UBS
2021 – 2023
President UBS Europe, Middle East and Africa, UBS
2019 – 2022
Co-President Global Wealth Management, UBS
2015 – 2019
CEO International Wealth Management, Credit Suisse
2013 – 2015
CFO Private Banking & Wealth Management,
Credit Suisse
2011 – 2013
Managing Partner Assurance and Advisory Services –
Financial Services, Ernst & Young
2009 – 2011
Industry Lead Partner Banking and Capital Markets,
Switzerland and EMEA Private Banking, Ernst & Young
2001 – 2009
Various positions in Ernst & Young
Education
–
Swiss Certified Public Accountant
–
Advanced Master of International Business Law (LL.M.) degree,
University of Zurich
Other activities and functions
–
Member of the Executive Board of
UBS AG
Barbara Levi
Group General Counsel, member of the GEB since 2021
Nationality:
Year of birth:
Barbara Levi has been Group General Counsel since 2021. In her role, she
provides legal advice and manages the Group’s legal affairs, ensuring
effective and timely assessment of legal matters impacting the Group and
its businesses. Before joining UBS, she served as Chief Legal Officer &
External Affairs at Rio Tinto Group and, before that, as General Counsel,
based in London. In both roles, she was a member of that company’s
executive committee. Ms. Levi began her corporate career with Novartis
Group in 2004 and worked there for 16 years, holding a number of senior
legal roles across Europe.
Professional experience
2021 – date
Group General Counsel, UBS Group AG, and
General Counsel, UBS AG
2021
Chief Legal Officer & External Affairs, Rio Tinto Group
2020 – 2021
Group General Counsel, Rio Tinto Group
2019
Group Legal Head, M&A and Strategic Transactions,
Novartis
2016 – 2019
Global General Counsel, Sandoz International GmbH,
Novartis
2014 – 2016
Global Legal Head, Product Strategy & Commercialization,
Novartis
2013 – 2014
Global Legal Head, TechOps, Primary Care and Established
Medicines, Novartis
2009 – 2013
Head of Legal & Compliance, Region Asia-Pacific, Middle
East, and African Countries, Region Group Emerging
Markets, Novartis
Education
–
Law degree, the University of Milan
–
Master of Laws (LL.M.), banking, corporate and finance law, Fordham
University School of Law, New York
Other activities and functions
–
Member of the Executive Board of
UBS AG
–
Member of the Board of Directors of the European General Counsel
Association
–
Member of the Legal Committee of the Swiss-American Chamber of
Commerce
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 186
Beatriz Martin Jimenez
Group Chief Operating Officer since January 2026, Head Non-Core
and Legacy and President UBS
Europe, Middle East and Africa
since 2023, member of the GEB since 2023
Nationality:
Year of birth:
Beatriz Martin Jimenez became Group COO in January 2026, with the
Group Technology function reporting to her. Since 2023, she has served
as President UBS Europe, Middle East, and Africa and Head Non-Core and
Legacy. As Group COO, her responsibilities encompass developing and
coordinating the Group-wide operational integration, driving Group-wide
innovative technology solutions and digitalization, delivering technology
services, and overseeing technology enabled change initiatives. The Group
COO is also responsible for the implementation of the Group’s
sustainability and impact strategy, which has been led by Ms. Martin
Jimenez since 2024. Her regional position as President UBS Europe, Middle
East and Africa involves promoting collaboration across business divisions
and representing UBS throughout the region. In addition, Ms. Martin
Jimenez also serves as the Chief Executive for UBS in the UK. As Head
Non-Core and Legacy, she focuses on managing derisking and cost-
reduction efforts tied to the integration proc ess. Before joining UBS, Ms.
Martin Jimenez held a variety of leadership roles in fixed income sales and
trading at both Morgan Stanley and Deutsche Bank.
Professional experience
January 2026 –
date
Group Chief Operating Officer; UBS Group AG and
Chief Operating Officer, UBS AG
2023 – date
President UBS Europe, Middle East and Africa, UBS
Group AG and UBS AG
2023 – date
Head Non-core and Legacy, UBS Group AG and UBS
AG
2019 – date
UK Chief Executive, UBS AG London Branch
2024 – 2026
UBS GEB Lead for Sustainability and Impact, UBS
Group AG (transitioned to Group COO responsibilities
in 2026)
2022 – 2023
Chief Transformation Officer, UBS Group AG
2020 – 2023
Group Treasurer, UBS Group AG
2015 – 2020
COO, UBS Investment Bank
2015 – 2019
UK COO, UBS AG London Branch and UBS Limited
2012 – 2015
Chief of Staff to CEO, UBS Investment Bank
1996 – 2012
Various positions in Global Markets, Morgan Stanley
and Deutsche Bank
Education
–
Master of Business Administration, Universidad Autónoma de Madrid,
Madrid
–
Erasmus Exchange programme, Hochschule für Bankwirtschaft,
Frankfurt
Other activities and functions
–
Member of the Executive Board of
UBS AG
–
Member of the Board of Directors and President of the Executive
Board of UBS Business Solutions AG (as of February 2026)
–
Member of the Supervisory Board of UBS Europe SE
–
Member of the Board of Directors of Credit Suisse International
Markus Ronner
Group Chief Compliance and Governance Officer, member of the
GEB since 2018 (stepped down on 31 December 2025)
Nationality:
Year of birth:
Markus Ronner has served as Group Chief Compliance and Governance
Officer from 2018 to December 2025, overseeing compliance, financial
crime prevention and operational risk control as well as regulatory and
governance functions at the Group level. In more than 40 years at UBS,
he acquired deep expertise across businesses and in non-financial risk
management and control. In that time, Mr. Ronner held a variety of senior
positions across the firm, including managing the Group-wide too-big-to-
fail program, COO Wealth Management & Swiss Bank, Head Products and
Services of Wealth Management & Swiss Bank, COO Asset Management,
and Head Group Internal Audit. From 2022 until 2023, he served as
Chairman of UBS Switzerland AG, the leading Swiss universal bank.
Professional experience
2018 –
December 2025
Group Chief Compliance and Governance Officer,
UBS Group AG, and Chief Compliance and Governance
Officer, UBS AG
2022 – 2023
Chairman of UBS Switzerland AG
2012 – 2018
Head Group Regulatory and Governance, UBS
2011 – 2013
Manager Group-wide too-big-to-fail program, UBS
2010 – 2011
COO Wealth Management & Swiss Bank, UBS
2009 – 2010
Head Products and Services of Wealth Management &
Swiss Bank, UBS
2007 – 2009
COO Asset Management, UBS
2001 – 2007
Head Group Internal Audit, UBS
Education
–
Swiss Banking Diploma
Other activities and functions
–
Member of the Executive Board of
UBS AG
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 187
Stefan Seiler
Head Group Human Resources and Corporate Services,
member of the GEB since 2023
Nationality:
Year of birth:
Stefan Seiler was appointed Head Group Human Resources and Corporate
Services in 2023. In this role, he manages the people, real estate, vendor
management, communications, branding and marketing, and security
functions that support the firm’s long-term success. Since joining UBS in
2011, he has held several key leadership roles, including Head HR for
Switzerland and Group Functions, Global Head Talent and Recruiting, and
Group Head HR since 2018. He started his career at the Swiss Military
Academy at the Swiss Federal Institute of Technology (ETH) Zurich, where
he later returned as Department Head of Leadership and Communication
after broadening his experience in the financial sector at Credit Suisse
from 2002 to 2006. He has worked in Switzerland, the UK, the US and
Singapore.
Professional experience
2023 – date
Head Group Human Resources and Corporate Services,
UBS Group AG and Head Human Resources & Corporate
Services, UBS AG
2018 – 2023
Group Head Human Resources, UBS
2016 – 2018
Global Head Talent & Recruiting, UBS
2014 – 2016
Head HR UBS Switzerland and Global Head HR Group
Control & CEO Functions, UBS
2012 – 2016
Head HR UBS Switzerland, UBS
2011 – 2012
Global Head HR Corporate Center, UBS
2010 – 2011
Visiting Professor, Nanyang Business School, Singapore
2006 – 2011
Department Head of Leadership and Communication,
Swiss Military Academy, ETH Zurich
2002 – 2006
Assessment specialist, HR Transformation Manager and
Global Lead for Human Capital Management
Implementation Group Functions, Credit Suisse, Zurich and
New York
Education
–
Master of Science (lic. Phil.), Educational Psychology, University of
Fribourg
–
PhD in Educational Psychology, University of Fribourg
Other activities and functions
–
Member of the Executive Board of
UBS AG
–
Member of the Board of the UBS Optimus Foundation
–
Member of the Foundation Board of the Pension Fund of UBS
–
Member of the Foundation Council of the UBS Center for Economics
in Society, University of Zurich
–
Chairman of the Foundation Board of the Swiss Finance Institute
–
Member of the IMD Foundation Board
–
Adjunct Professor for Leadership and Strategic Human Resource
Management, Nanyang Technological University (NTU), Singapore
Todd Tuckner
Group Chief Financial Officer, member of the GEB since 2023
Nationality:
Year of birth:
Todd Tuckner became Group CFO in 2023. In January 2026, he also took
over responsibility for overseeing the Group’s governmental and
regulatory affairs, including developing and maintaining the Group’s
recovery and resolution plans. As Group CFO, he oversees the Group’s
financial accounting, controlling, forecasting, planning and reporting
processes, ensuring the transparency in and the assessment of the
financial performance of the Group and the business divisions. He is also
responsible for managing and controlling the Group’s tax affairs, treasury
and capital management, including funding and liquidity risk, and
regulatory capital ratios. Additionally, he coordinates relations with
analysts and investors alongside the Group CEO. He was previously CFO
and Head Business Performance and Risk Management for our Global
Wealth Management business. Mr. Tuckner joined UBS in 2004 after
working for KPMG for 17 years and has since held various leadership roles
across the Group Finance function.
Professional experience
2023 – date
Group CFO, UBS Group AG and CFO, UBS AG
2020 – 2023
CFO and Head Business Performance and Risk
Management, Global Wealth Management, UBS
2016 – 2021
Group Controller and Chief Accounting Officer, UBS
2012 – 2019
Group Finance COO, UBS
2009 – 2012
Group Head Tax & Accounting Policy, UBS
2004 – 2009
Group Head Tax – Americas, UBS
1987 – 2004
Various management positions, KPMG LLP, New York
Education
–
Bachelor’s degree, economics, Princeton University
–
MBA, accounting, New York University
Other activities and functions
–
Member of the Executive Board of
UBS AG
–
Member of the Financial Services Chapter Board of the Swiss-
American Chamber of Commerce
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 188
Marco Valla
Co-President Investment Bank, member of the GEB since 2024
Nationality:
Year of birth:
Marco Valla became Co-President of the Investment Bank in 2024 and
Head of Global Banking in September 2025. He jointly manages the
Investment Bank with George Athanasopoulos across all regions to ensure
an unparalleled global offering for our client franchise. He began his
career at Credit Suisse First Boston in 1994 as an Investment Banking
analyst, before working for Lehman Brothers and Barclays. During his
tenure at Barclays, he was the Global Head of Technology, Media and
Telecommunications (TMT) and Consumer Retail Investment Banking,
overseeing the coverage of technology, media, telecommunications,
consumer and retail clients, and a member of the Investment Banking
Management Committee.
Professional experience
2024 – date
Co-President of the Investment Bank, UBS Group AG
and UBS AG
September 2025 –
date
Head of Global Banking
2023 – 2024
Co-Head of Global Banking, Investment Banking, UBS
2020 – 2023
Global Head of TMT and Consumer Retail, Investment
Banking
Member of the Investment Banking Management
Committee, Barclays
2013 – 2019
Global Co-Head of Consumer Retail Group, Investment
Banking, Barclays
2008 – 2013
Managing Director, Retail Group, Investment Banking,
Barclays
2005 – 2008
Managing Director, Retail Group, Investment Banking,
Lehman Brothers
1994 – 2005
Investment Banking, Credit Suisse First Boston
Education
–
Bachelor’s degree, economics and Italian literature, University of
California, Berkeley
Other activities and functions
–
Member of the Executive Board of
UBS AG
–
Member of the Board of Directors of Good Shepherd Services
–
Member of the Board of the Mount Sinai Department of Urology
Damian Vogel
Group Chief Risk Officer, member of the GEB since 2024
Nationality:
Year of birth:
Damian Vogel was appointed Group Chief Risk Officer in 2024 and is
responsible for the development of the Group’s risk management and
control framework for various risk categories and the implementation of
its independent control frameworks. Since joining UBS in 2010, he held
various risk-related leadership roles across Global Wealth Management,
Personal & Corporate Banking and the Switzerland region before being
appointed Chief Risk Officer for Credit Suisse and Group Risk Control
Head of Integration in 2023. Previously, he worked for Credit Suisse as
Credit Risk Manager and Head Structured Lombard Solutions.
Professional experience
2024 – date
Group Chief Risk Officer, UBS Group AG and Chief Risk
Officer, UBS AG
2023 – 2024
Chief Risk Officer, Credit Suisse AG
Group Risk Control Head Integration, UBS
2018 – 2023
Chief Risk Officer Global Wealth Management, UBS
2016 – 2018
Chief Risk Officer Personal & Corporate Banking and
Region Switzerland, Zurich, UBS
2012 – 2016
Portfolio Underwriter and Head Risk Control Swiss
Corporates, Zurich, UBS
2010 – 2011
Project Manager within Chief Risk Officer Wealth
Management and Swiss Bank, Zurich, UBS
2009 – 2010
Credit Risk Manager, Credit Risk Management
Investment Banking, New York, Credit Suisse
2008 – 2009
Head Structured Lombard Solutions, Credit Risk
Management Private Banking, Zurich, Credit Suisse
1999 – 2008
Various management positions in Credit Suisse
Education
–
Bachelor’s degree, business and administration, University of Applied
Sciences, Visp
–
Executive Program, Stanford University Graduate School of Business
–
Master of Advanced Study, corporate finance, University of Lucerne
Other activities and functions
–
Member of the Executive Board of
UBS AG
–
Member of the Board of Directors of UBS Switzerland AG
–
Member of Foundation Board of the International Financial Risk
Institute
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 189
Change of control and defense measures
Our Articles of Association (the AoA) do not provide any measures for delaying, deferring or preventing a change of
control.
Duty to make an offer
Pursuant to the Swiss Federal Act on Financial Market Infrastructures and Market Conduct in Securities and Derivatives
Trading of 19 June 2015, anyone who has acquired (whether directly, indirectly or acting in concert with third parties)
more than 33
1
⁄
3
% of all voting rights of a company with at least one class of equity securities listed on a Swiss stock
exchange, whether such rights are exercisable or not, is required to submit a takeover offer to acquire all other listed
equity securities of such company. We have not elected to change or opt out of this rule.
Clauses on change of control
Neither the terms regulating the BoD members’ mandate nor any employment contracts with GEB members or employees
holding key functions within the Group contain change of control clauses.
All employment contracts with GEB members stipulate a notice period of six to twelve months. During the notice period,
GEB members are entitled to their salaries and the continuation of existing employment benefits and may be eligible to
be considered for a discretionary performance award based on their contribution during their tenure.
In case of a change of control, we may, at our discretion, accelerate the vesting of and / or relax applicable forfeiture
provisions of employees’ awards.
›
Refer to the
“Compensation”
Auditors
Audit is an integral part of corporate governance. While safeguarding their independence, the external auditors closely
coordinate their work with Group Internal Audit. The Audit Committee and, ultimately, the BoD supervises the
effectiveness of audit work.
›
Refer to
“Board of Directors”
External independent auditors
The 2025 Annual General Meeting (the AGM) re-elected Ernst & Young Ltd (EY) as auditors for the Group for the 2025
financial year. EY assumes virtually all auditing functions according to laws, regulatory requests and the AoA. In 2025,
Isabelle Santenac became the EY lead partner in charge of the UBS Group financial and regulatory audits and the lead
audit partner for the Group financial statement audit, with an incumbency limit of five years. Since 2023, Robert Wadley
has been a partner on the financial statement audit, and in 2025 he became the co-signing partner, with an incumbency
limit of seven years. In 2021, Hannes Smit became the Lead Auditor to the Swiss Financial Market Supervisory Authority
(FINMA), with an incumbency limit of seven years. Daniel Martin has been the co-signing partner for the FINMA audit
since 2019, with an incumbency limit of seven years. Mr. Martin will be succeeded in 2026 by Martin Waurick, who will
assume the role of co-signing partner for the FINMA audits, with an incumbency limit of seven years.
During 2025, the Audit Committee held 12 meetings with the external auditors.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 190
Audit effectiveness assessment
The Audit Committee assesses the performance, effectiveness and independence of the external auditors on an annual
basis. The assessment is generally based on interviews with senior management and survey feedback from stakeholders
across the Group. Assessment criteria include quality of service delivery, quality and competence of the audit team, value
added as part of the audit, insightfulness, and the overall relationship with EY. Based on its own analysis and the
assessment results, including feedback received as part of the review of the Group audit engagement described above,
the Audit Committee concluded that EY’s audit has been effective.
Services performed by EY and related fees
The Audit Committee oversees all services provided to UBS by the external auditors. For services requiring the approval
from the Audit Committee, a preapproval may be granted either for a specific mandate or in the form of a blanket
preapproval authorizing a limited and well-defined type and scope of services. The fees (including expenses) paid to EY
are set forth in the table below.
Audit work includes all services necessary to perform the audit for the Group in accordance with applicable laws and
generally accepted auditing standards, as well as other assurance services that conventionally only the auditor can
provide. These include statutory and regulatory audits, attestation services and the review of documents to be filed with
regulatory bodies. The additional services classified as audit in 2025 included several engagements for which EY was
mandated at the request of FINMA.
Audit-related work consists of assurance and related services traditionally performed by auditors, such as attestation
services related to financial reporting, internal control reviews and performance standard reviews, as well as consultation
concerning financial accounting and reporting standards.
Tax work involves services performed by professional staff in EY’s tax division and includes tax compliance and tax
consultation with respect to our own affairs.
“Other” services are permitted services, which include technical IT security control reviews and assessments.
In addition, EY received USD 53m in 2025 (USD 52m in 2024) for services performed on behalf of our investment funds,
many of which have independent fund boards or trustees.
Fees paid to EY
UBS Group AG and its subsidiaries paid the following fees (including expenses) to EY.
For the year ended
USD m
31.12.25
31.12.24
Audit
Global audit fees
Additional services classified as audit (services required by law or statute, including work of a non-recurring nature mandated by regulators)
Total audit
Non-audit
Audit-related fees
of which: assurance and attestation services
of which: control and performance reports
of which: consultation concerning financial accounting and reporting standards
Tax fees
All other fees
Total non-audit
Special auditors for potential capital increases
At the AGM on 24 April 2024, BDO AG was reappointed as special auditors for a three-year term of office. Special
auditors provide audit opinions in connection with potential capital increases independently from other auditors.
Group Internal Audit
Group Internal Audit performs the internal auditing role for the Group. It is an independent function that provides
expertise and insights to confirm controls are functioning correctly and highlight where UBS needs to better manage
current and emerging risks. In 2025, Group Internal Audit operated with an average headcount of 775 full-time
equivalent employees.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 191
Group Internal Audit supports the BoD in discharging its governance responsibilities by taking a dynamic approach to
audit, issue assurance and risk assessment, confirming where controls are functioning well and highlighting where UBS
needs to better manage current and emerging risks. By doing so, it drives action to prevent unexpected loss or damage
to the firm’s reputation. To support the achievement of UBS’s objectives, Group Internal Audit independently, objectively
and systematically assesses the:
(i)
soundness of the Group’s risk and control culture;
(ii)
reliability and integrity of financial and operational information, including whether activities are properly, accurately
and completely recorded, and the quality of underlying data and models; and
(iii)
design, operating effectiveness and sustainability of:
–
processes to define strategy and risk appetite, as well as the overall adherence to the approved strategy;
–
governance processes;
–
risk management, including whether risks are appropriately identified and managed;
–
internal controls, specifically whether they are commensurate with the approved risk appetite;
–
remediation activities; and
–
processes to comply with legal and regulatory requirements, internal policies, and the Group’s constitutional
documents and contracts.
Audit reports that include significant issues are provided to the Group CEO, relevant GEB members and other responsible
management. The Chairman, the Audit Committee and the Risk Committee of the BoD are regularly informed of such
issues.
In addition, Group Internal Audit provides independent assurance on the effective and sustainable remediation of control
deficiencies within its mandate, taking a prudent and conservative risk-based approach and assessing at the issue level
whether the root cause and the potential exposure for the firm have been holistically and sustainably addressed. Group
Internal Audit also cooperates closely with risk control functions and internal and external legal advisors on investigations
into major control issues.
To ensure Group Internal Audit’s independence from management, the Head Group Internal Audit reports to the
Chairman of the BoD and to the Audit Committee, which assesses annually whether Group Internal Audit has sufficient
resources to perform its function, as well as its independence and performance. In the Audit Committee’s assessment,
Group Internal Audit is sufficiently resourced to fulfill its mandate and complete its auditing objectives. Group Internal
Audit’s role, position, responsibilities and accountability are set out in our Organization Regulations and the Charter for
Group Internal Audit, available at
ubs.com/governance.
Group Internal Audit has unrestricted access to all accounts,
books, records, systems, property and personnel, and must be provided with all information and data that it needs to
fulfill its auditing responsibilities. Group Internal Audit also conducts special audits at the request of the Audit Committee,
or other BoD members, committees or the Group CEO in consultation with the Audit Committee.
Group Internal Audit enhances the efficiency of its work through coordination and close cooperation with the external
auditors.
Information policy
We provide regular information to our shareholders and to the wider financial community.
Financial reports for UBS Group AG are expected to be published on the following dates:
First quarter 2026
29 April 2026
Second quarter 2026
29 July 2026
Third quarter 2026
28 October 2026
The annual general meetings of the shareholders of UBS Group AG will take place on the following dates:
2026
15 April 2026
2027
8 April 2027
›
Refer to the corporate calendar available at
ubs.com/investors
dates, including the dates of the publication of UBS AG’s financial reports
We meet with institutional investors worldwide throughout the year and regularly hold results presentations, attend and
present at investor conferences, and, from time to time, host investor days. When appropriate, investor meetings are
hosted by senior management and are attended by members of our Investor Relations team. We use various technologies,
such as webcasting, audio links and cross-location videoconferencing, to widen our audience and maintain contact with
shareholders globally.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance 192
We make our publications available to all shareholders simultaneously to provide them with equal access to our financial
information.
Our annual and quarterly publications are available in a fully digital and .pdf format at
ubs.com/investors
, under “Financial
information”. We no longer provide printed copies of our Annual Report and our Compensation Report in any language.
›
Refer to
ubs.com/investors
conference presentations
›
Refer to the
“Information sources”
›
Refer to
“Corporate information” and “Contacts”
Financial disclosure principles
We fully support transparency and consistent and informative disclosure. We aim to communicate our strategy and results
in a manner that enables stakeholders to gain a good understanding of how our Group operates, what our growth
prospects are, and the risks that our businesses and our strategy entail. We assess feedback from analysts and investors
on a regular basis and, where appropriate, reflect this in our disclosures. To continue achieving these goals, we apply the
following principles in our financial reporting and disclosure:
–
transparency
, which enhances the understanding of economic drivers and builds trust and credibility;
–
consistency
, within each reporting period and between reporting periods;
–
simplicity
, which enables readers to gain a good understanding of the performance of our businesses;
–
relevance
, by focusing not only on what is required by regulation or statute but also on what is relevant to our
stakeholders; and
–
best practice
, which leads to improved standards.
We regard the continuous improvement of our disclosures as an ongoing commitment.
Financial reporting policies
We report our Group’s results for each financial quarter, including a breakdown of results by business division and
disclosures or key developments relating to risk management and control, capital, liquidity and funding management.
Each quarter, we publish quarterly financial reports for UBS Group AG, on the same day as the earnings releases.
The consolidated financial statements of UBS Group AG and UBS AG are prepared in accordance with International
Financial Reporting Standards as issued by the International Accounting Standards Board.
›
Refer to
“Note 1 Summary of material accounting policies”
“Consolidated financial statements”
more information about the basis of accounting
We are committed to maintaining the transparency of our reported results and allowing analysts and investors to make
meaningful comparisons with prior periods. If there is a major reorganization of our business divisions or if changes to
accounting standards or interpretations lead to a material change in the Group’s reported results, our results are restated
for previous periods as required by applicable accounting standards. These restatements show how our results would
have been reported on the new basis and provide clear explanations of all relevant changes.
US disclosure requirements
As a foreign private issuer, we must file reports and other information, including certain financial reports, with the US
Securities and Exchange Commission (the SEC) under the US federal securities laws.
An evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a–15e) under the US
Securities Exchange Act of 1934 has been carried out, under the supervision of management, including the Group CEO,
the Group CFO and the Group Controller. Based on that evaluation, and reflecting the determination that our internal
control over financial reporting was effective as of 31 December 2025, the Group CEO and the Group CFO concluded
that our disclosure controls and procedures were effective as of 31 December 2025.
No significant changes have been made to our internal controls or to other factors that could significantly affect these
controls subsequent to the date of their evaluation.
›
Refer to the
“Consolidated financial statements”
Advisory vote
|
Compensation
Table of contents
194
Compensation
197
2025 key compensation themes
200
Say-on-pay
201
Compensation philosophy and governance
206
Compensation for GEB members
214
Group compensation
221
Compensation for the Board of Directors
224
Supplemental information
Advisory vote
|
Compensation
Julie G. Richardson
Chairperson of the
Compensation Committee
of the Board of Directors
Dear Shareholders,
The Board of Directors (the BoD) and I wish to thank you for your support once again at last year’s Annual General
Meeting (the AGM) and for sharing your views on our compensation practices over the past year.
Throughout 2025, the BoD Compensation Committee continued to oversee the compensation process, aiming to ensure
that reward reflects performance, risk-taking is appropriate and employees’ interests are aligned with those of our
stakeholders. Following these reviews, we concluded that our compensation framework remains well suited to support
us in achieving our ambitions for the Group and that it provides strong alignment with shareholders’ interests. As the
Chairperson of the Compensation Committee, I am pleased to present our Compensation Report for 2025.
Key achievements highlight the power of our globally diversified business model
In 2025, we delivered excellent financial performance, demonstrating strong client relationships and our franchise
strength as we captured client momentum and drove revenue growth. We helped clients navigate an unpredictable
market environment while making significant progress on one of the most complex integrations in banking history and
facing ongoing regulatory uncertainty in Switzerland. Our Group invested assets rose 15% compared with 2024,
exceeding the USD 7trn mark for the first time.
As a key pillar of our strategy, our balance sheet remains strong, as we continue to make further progress on integration
while creating value by capturing long-term growth opportunities. Our risk aware approach and highly robust business
model is reflected in the Group’s loan-to-deposit ratio of 83% and low credit risk.
We also maintained our commitment to being a reliable partner for the Swiss economy. We granted or renewed around
CHF 80bn of loans during 2025. Throughout the year, we continued to support clients and the communities where we
live and work, while further investing in talent and capabilities. This includes artificial intelligence, where we have
transformational projects that are designed to bolster our operational resilience, enhance client experience and unlock
higher levels of efficiency and effectiveness across the organization. We remain firmly focused on disciplined execution,
bringing the full power of UBS to our clients and investing to sustain growth momentum, supporting continued value
creation in the years ahead.
On track to substantially complete the integration of Credit Suisse by the end of 2026
This year will be an important milestone in our integration progress with complex tasks at hand and focus on fully realizing
the combined synergies resulting from the integration of Credit Suisse. Building on our success in 2023 and 2024, we
continued to make excellent progress on the integration, which we expect to substantially complete by the end of 2026. By
the end of 2025, 85% of Swiss-booked accounts had been migrated, and the migration of Personal & Corporate Banking
client accounts was substantially complete. We remain on track to complete the Swiss-booked account migrations by the
end of the first quarter of 2026. In addition, we have completed the integration of Asset Management, including the final
portfolio migrations onto UBS platforms.
In 2025, we realized an additional USD 3.2bn in gross cost savings. Cumulative gross cost savings at the end of 2025
amounted to USD 10.7bn compared with the 2022 combined cost base of UBS and Credit Suisse. We have identified
additional synergies that have enabled us to increase our ambition for annualized exit rate gross cost savings by the end of
2026 from around USD 13bn to approximately USD 13.5bn.
At the end of 2025, our Non-core and Legacy business division had reduced its risk weighted assets (RWA) by 67% since
the second quarter of 2023 and its underlying operating expenses excluding litigation by approximately 80% compared
with the full-year 2022 combined baseline. We achieved our ambition to reduce credit and market risk RWA to below
USD 8bn, and we are well positioned to meet our ambition of around USD 4bn by the end of 2026.
Leadership Development
Over the last few years, significant progress has been made in developing the depth of key talent at senior leadership levels.
Our Group Chief Executive Officer (the Group CEO) has successfully adjusted the composition of the Group Executive Board
(the GEB) in line with the future strategic demands, as well as making several proactive moves that have increased the
strength of our senior leadership.
Advisory vote
|
These changes have supported the success of both our operational and integration initiatives while also enhancing capability
through internal mobility and exposure in the organization. This concerted effort to develop senior leadership has produced
an even stronger and more cohesive senior leadership team and GEB.
Financial performance
Underlying profit before tax excluding litigation increased in all core regions, demonstrating the power of our global
franchise and positioning the firm for continued success. Net profit attributable to shareholders was USD 7,767m, up 53%
YoY. During 2025, we successfully resolved several significant legal matters.
Underlying revenues from our core businesses increased 8%, reflecting the enduring advantages of our diversified global
platform and broad-based client momentum amid constructive markets. Underlying revenues in Non-core and Legacy
decreased by USD 1,455m from 2024, driven by the progress by that division in significantly reducing the size of its
portfolio.
Commitment to return capital to shareholders
We remain committed to maintaining a balance sheet for all seasons. Our capital position was further strengthened in
2025. Both our common equity tier 1 (CET1) capital ratio (14.4%) and our CET1 leverage ratio (4.4%) remained
comfortably above our guidance of ~14% and >4.0%, respectively.
Our business momentum further supported our capital position, enabling us to deliver on our capital return plans. For
2025, the BoD plans to propose a dividend to UBS Group AG shareholders of USD 1.10 per share, an increase of 22%
YoY.
In 2025, we completed our planned share repurchases of USD 3bn. In 2026, we intend to repurchase USD 3bn of shares,
with the aim to do more. The amount of additional repurchases is subject to further clarity around the future regulatory
regime in Switzerland, our financial performance and maintaining a CET1 capital ratio of ~14%.
2025 Group performance award pool
For 2025, the Group performance award pool was determined based on financial performance, along with consideration
of other non-financial factors, such as specific focus on risk management, achieving of strategic objectives and market
position and trends. As a result, the overall pool of USD 5.1bn reflects our strong financial performance compared with
2024, the progress with the integration and the resolution of litigation matters, as well as market-competitive
considerations.
In line with our long-standing approach, our pool determination includes consideration of the impact of both financial
and non-financial risk (including reputation) matters. We further consider the firm’s risk profile and culture, the extent to
and the success of risk reduction initiatives at a pool level. In 2025, we reviewed certain significant events in detail with
respect to individual accountability and performance and compensation outcomes, including individual disciplinary
consequences where relevant.
Advisory vote
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Compensation decisions continued to be guided by our robust pay-for-performance philosophy, ensuring significant
differentiation of compensation that reflects individual and business performance. This is essential to support driving our
high performance culture, as well as attracting and retaining a talented workforce that delivers on our integration and
strategic objectives.
Compensation for each GEB member is based on a robust assessment of their financial and non-financial performance,
which is predominantly based on the achievements relative to concrete quantitative and measurable key performance
indicators. Awards for 2025 reflect the outstanding performance of the GEB, including the Group CEO, in the context of
excellent overall Group performance, significant progress on our integration and the resolution of legacy litigation
matters.
Continuity of our overall compensation framework
Since 2012, our compensation framework has been fundamentally consistent and is considered well established and
tested over time. After a careful review of investor feedback and competitive practice, the Compensation Committee
confirmed that our Total Reward Principles and overall compensation framework continue to support the alignment of
compensation with the execution of our strategy, sustainable performance and the delivery of our integration objectives.
Overall, the GEB compensation framework remains consistent with prior years. With respect to the Group CEO, the
significant deferral level, structure and vesting schedule over five years remain unchanged.
For the other GEB members, the vesting schedule also remains unchanged. We have aligned the deferral level toward
the competitive market, introducing an approach where deferral levels increase progressively with higher performance
award levels, as well as differentiating the deferral mix between the Long-Term Incentive Plan (the LTIP) and the Deferred
Contingent Capital Plan.
This approach provides greater potential for deferral into the LTIP, which, coupled with our significant GEB share
ownership requirements, supports strong long-term alignment with our strategy and shareholder interests. We believe
our revised deferral regime continues to be more stringent than the competitive market, with deferral levels and delivery
schedules that exceed those typically observed in the industry.
Regarding our LTIP awards granted for 2025 performance, we have reviewed our three-year average (2026 through 2028)
reported return on CET1 (RoCET1) performance metric to appropriately incentivize management to deliver on our
evolving return ambitions reflecting our progress on the integration. We have therefore increased the RoCET1
performance range to require higher return levels for vesting:
– the required performance threshold for the minimum payout has been raised to 8%, compared with 7.5% last year;
and
– the required performance for a maximum payout has been increased to 16%, compared with 14% last year.
Resolution of the French cross-border matter and impact on GEB deferred compensation
In 2019, the Compensation Committee determined that up to 30% (CHF 7.9m) of the 2019 LTIP awards for relevant GEB
members and the share award of the former Chairman would remain at risk and held back from delivery until the French
cross-border matter was resolved. Following its resolution and the better outcome relative to the previously disclosed
potential outcomes, the Compensation Committee applied a fact-based reduction to the final value of the award of 10%
of the shares at risk. As previously disclosed in the 2019 Compensation Report, the reduction is based on the final cost
associated with the resolution of the matter, ensuring compensation outcomes reflected the final impact. The
Compensation Committee also concluded that there was no new information that would have impacted our
compensation decision in 2019.
These mechanisms underscore UBS’s commitment to aligning management accountability with shareholder interests.
The 2026 Annual General Meeting
At the 2026 AGM on 15 April, we will seek your support on the following compensation-related items:
– the maximum aggregate amount of compensation for the BoD for the period from the 2026 AGM to the 2027 AGM;
– the maximum aggregate amount of fixed compensation for the GEB for 2027;
– the aggregate amount of variable compensation for the GEB for 2025; and
– shareholder endorsement in an advisory vote for this Compensation Report.
On behalf of the Compensation Committee and the BoD, I thank you again for your feedback and we respectfully ask
for your continued support at the upcoming AGM.
Julie G. Richardson
Chairperson of the Compensation Committee of the Board of Directors
Advisory vote
|
2025 key compensation themes
The feedback that we seek from our shareholders about compensation-related topics is very important to us, as we are
committed to maintaining a strong link between the interests of our employees and those of our shareholders. We
continued engaging with shareholders during 2025 and received overall positive feedback about our compensation
framework. The below summarizes key compensation themes for 2025 and provides answers to the questions we most
frequently receive from shareholders.
Summary of 2025 key compensation themes / responses to frequently asked questions
How does UBS reflect environmental and sustainability themes in the compensation determination process?
Environmental and sustainability objectives continue to be an integral part of our compensation determination process.
Since 2011 we have embedded environmental, social and governance (ESG)-related objectives in our Pillars and Principles,
and since 2021 we have explicit sustainability-related objectives in the non-financial goal category of the Group Chief
Executive Officer and Group Executive Board (GEB) scorecards. Over time, we have refined our approach; for example, in
2023 we enhanced the GEB scorecard by establishing separate categories for Environmental and Sustainability as well as
People and Governance. These categories are unchanged since 2023. This structure, with two out of five non-financial
categories covering ESG-related objectives, underscores the importance and impact of sustainability on GEB
compensation. All five non-financial categories are equally weighted (6% per category) and have a combined weight of
30% in the GEB performance assessment. This provides a combined weight of 12% for ESG-related themes.
For the 2025 performance assessment of the GEB, we maintain our strong focus on supporting our clients’ activities
related to the environment and sustainability. The following achievements demonstrate the strong progress made in this
area:
–
we exceeded our ambition of raising USD 400m per annum in donations (including UBS matching contributions) by
2027 with the UBS Optimus network of foundations raising USD 472m in such donations in 2025; and
–
we exceeded our ambition of 20% with 23.4% of Asset Management’s fund offering globally being sustainable-
investing products, providing choice for clients (over a three-year rolling basis).
In addition, we achieved a top quartile position versus direct peers in three key ESG ratings in 2025. Furthermore, the
following achievements demonstrate our 2025 progress to reducing our scope 1 and 2 emissions to net zero by 2035,
as well as delivering against our lending sector decarbonization and financed emissions reduction targets:
–
scope 1 and market-based scope 2 emissions reduced by 48% compared with 2023 baseline;
–
absolute own energy consumption reduced by 19% compared with 2023 baseline;
–
reduced emissions intensity associated with in-scope lending compared with 2021 levels – Swiss commercial real estate
down 10%, Swiss residential real estate down 15%, power generation down 55%, iron and steel down 14%, and
cement down 4%; and
–
reduced absolute financed emissions associated with in-scope lending for fossil fuels by 83% compared with 2021
baseline.
How does UBS support pay fairness?
We pay for performance, and we take pay equity seriously. Across all our locations, we apply the same fair pay standards,
reinforced by annual reviews of our approach and policies in line with established equal pay methodologies. In 2025, our
statistical pay gap analyses reaffirmed that pay differences between male and female employees in similar roles across
our core financial hubs remained below 1%, a difference consistent with that for 2024. If we find any gaps not explained
by business or by appropriate employee factors, such as role, responsibility, experience, performance or location, we look
at the root causes and address them.
›
Refer to the “Compensation philosophy and governance” section of this report for more information about pay fairness
›
Refer to the “People and culture make the difference“ section of the UBS Group Sustainability Report 2025, available under
“Annual reporting” at
ubs.com/investors
, for more information about workforce inclusion
How is UBS supporting employees during the ongoing integration period?
We are committed to being a responsible employer. We promote employee health and well-being, and, where possible,
we offer flexible working arrangements. Social, physical, mental and financial well-being elements are woven into our
HR policies and practices. For example, our support for employee well-being includes a range of programs, benefits and
workplace resources, along with specialized eLearning curriculums and toolkits to help employees better manage their
health, foster well-being and strengthen their resilience. A dedicated well-being portal consolidates our global offering
and promotes regional networks, initiatives and resources.
To support employees during the integration, UBS offers a wide range of well-being sessions with internal and external
experts on the themes of resilience, growth mindset, dealing with uncertainty and burnout prevention. Employees have
ongoing access to confidential support from our global Employee Assistance and Care Programs.
Advisory vote
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Should business or organizational circumstances arise that lead to employee redundancy, we offer professional
reorientation services with a focus on redeployment within UBS. We also have extensive action plans for redundancies
that include provision for coaching services, reskilling programs, placements and / or redundancy payments.
›
Refer to the “Health and Safety Statement”, available at
ubs.com/sustainability-reporting
, for information about UBS’s health and
safety statement
›
Refer to
ubs.com/employees
How does the 2025 Long-Term Incentive Plan work and what does the grant level of 50% of the maximum
opportunity mean?
Consistent with our approach applied in 2023 and 2024, a portion of variable compensation granted to a broad group
of senior leaders (including the GEB) is deferred into our Long-Term Incentive Plan (the LTIP) award. The LTIP is an equity-
based award and the final value is subject to performance conditions as well as share price development. The 2025 LTIP
continues with the same two equally weighted performance metrics (reported return on common equity tier 1 capital
(RoCET1) and relative total shareholder return (rTSR)), which are assessed over a three-year performance period.
At grant, the value of the deferred portion is converted into an initial allocation of shares based on the grant share price.
This initial share allocation represents 50% of the maximum opportunity, which is capped at 100%. The final performance
outcome will range from 0% to 100% of this maximum, subject to the outlined performance conditions.
If the final performance outcome is 50%, the participant would receive exactly the initially allocated shares, which is also
the same number of shares as for an individual who deferred compensation into equity shares.
Each participant has the potential to double the number of shares initially allocated, if reported RoCET1 over the three-
year performance period is at or above 16% and relative total shareholder return (rTSR) is 25 percentage points or more
above the peer group index. Similarly, each participant would lose 100% of the allocated shares if reported RoCET1 over
the three-year performance period is less than 8% and rTSR is below the peer group index by more than 25 percentage
points.
The initial share allocation at 50% of the maximum opportunity is not a share price discount but rather reflects the
inherent risk of losing 100% of the initially allocated shares.
›
Refer to “2025 Group performance outcomes” in the “Group compensation” section of this report for more information
Illustrative example
An employee receives a deferral of compensation into an LTIP award with a value of CHF 100,000 granted at a share
price of CHF 32.924 per share (based on the average closing price of UBS shares over the last ten trading days leading
up to and including the award date in February). This represents the award allocation of 50% of the maximum
opportunity. The actual LTIP value at the end of the performance period may vary between:
–
CHF 0, i.e. no value, if the achievement level of the performance metrics at the end of the three-year performance
period produce a weighted outcome that is below 33%; and
–
CHF 200,000, if the achievement level of the performance metrics at the end of the three-year performance period
produce a weighted outcome that is at or above 100%, assuming no change in share price.
Ultimately, the value of the deferral at the end of the performance period is determined by consideration of the
performance achievement coupled with share price development (positive or negative). In this manner, management
is incentivized to deliver on strategy, integration targets and financial objectives and to drive long-term growth while
also being fully aligned with shareholders on share price development and relative shareholder returns.
What is the achievement level of the LTIP granted in 2023 for 2022 performance?
The performance award granted in 2023 for the 2022 financial performance year (the 2022 LTIP) to members of the GEB
was in part delivered through the LTIP award. This award has been designed to support alignment of compensation with
the execution of our strategy, financial performance and long-term growth.
The performance metrics of the 2022 LTIP are average reported RoCET1 and rTSR, both measured over a three-year
performance period from 2023 to 2025.
In 2022, when the Compensation Committee set the relevant performance range of the reported RoCET1 metric
(i.e. 8%–18% for the performance period 2023–2025), it considered several factors including our strategic plan, which
at that time reflected a communicated reported RoCET1 target range of 15%–18%. However, the acquisition and
integration of the Credit Suisse Group significantly impacted the financial results of UBS during the performance period
of the 2022 LTIP.
Against this background, the Compensation Committee has carefully considered these integration-related aspects and
made the following adjustments to the reported RoCET1 for 2023, 2024 and 2025 in order to determine the 2022 LTIP
achievement level in line with our strict pay-for-performance approach and to remove both the positive and negative
impacts related to the integration.
Advisory vote
|
–
For the assessment of the 2023 RoCET1 outcome, as already communicated in the Compensation Report 2023, we
used UBS sub-group results as a starting point and excluded the positive and negative one-time financial impacts of
the acquisition of the Credit Suisse Group (such as the negative goodwill, or gain, of USD 27.7bn for 2023).
–
For the assessment of the 2024 and 2025 RoCET1 outcomes, we used UBS Group results and applied an adjustment
based on a review of the plans before and after the integration in order to align the RoCET1 performance relative to
the plan applicable at the time of grant.
The Compensation Committee has consistently applied the adjustment approach outlined above for the RoCET1 metric.
As disclosed in 2023 and 2024, these adjustments reduced the three-year average RoCET1 metric outcomes and overall
achievement levels of the 2020 and 2021 LTIP awards. For the 2022 LTIP, the Committee applied the same consistent
approach, which resulted in a negative impact to the three-year average RoCET1 metric, which nonetheless still resulted
in a 100% achievement level. No adjustments were made to the rTSR metric, which is –17.45 percentage points below
the index, resulting in a rTSR achievement level of 43.12%.
Consequently, the combined achievement level of the 2022 LTIP resulted in 71.56% of the maximum opportunity (100%),
aligned with the grant fair value of 71.45% in 2022. This outcome is 21.8 percentage points below the achievement
level of the 2021 LTIP, primarily driven by the lower rTSR performance. This development demonstrates how our LTIP
design consistently enforces a strict pay-for-performance approach and ensures alignment with the shareholder
experience.
Advisory vote
|
Say-on-pay
Say-on-pay votes at the AGM
In line with the Swiss Code of Obligations, we seek binding shareholder approval for the aggregate compensation
awarded to the Group Executive Board (the GEB) and the Board of Directors (the BoD). Prospective approval of the fixed
compensation of the BoD and GEB provides the firm and its governing bodies with the certainty needed to operate
effectively. Retrospective approval of the GEB’s variable compensation aligns their compensation with performance and
contribution.
The table below outlines our compensation proposals, including supporting rationales, that we plan to submit to the
2026 Annual General Meeting (the AGM) for binding votes, in line with the Swiss Code of Obligations and our Articles
of Association.
These binding votes on compensation and the advisory vote on our Compensation Report reflect our commitment to
shareholders having their say on pay.
›
Refer to “Provisions of the Articles of Association related to compensation” in the “Supplemental information” section of this
report for more information
Audited |
Approved GEB fixed compensation and BoD compensation
At the 2024 AGM, the shareholders approved a maximum aggregate fixed compensation amount of CHF 33.0m for GEB
members for the 2025 performance year. This amount reflects base salaries and estimated standard contributions to
retirement benefit plans, as well as other benefits. The aggregate fixed compensation paid in 2025 to GEB members was
below the approved amount for 2025.
At the 2025 AGM, the shareholders approved a maximum aggregate amount of compensation of CHF 15.0m for the
members of the BoD for the period from the 2025 AGM to the 2026 AGM.
›
Refer to “2025 total compensation for the GEB members” in the “Compensation for GEB members” section of this report
›
Refer to “Remuneration details and additional information for BoD members” in the “Compensation for the Board of Directors”
section of this report
Compensation-related proposals for binding and advisory votes at the 2026 AGM
Item
Approved at the 2025
AGM
BoD proposals for the
2026 AGM
Rationale
GEB variable
compensation
Shareholders approved
CHF 114,185,176 for the
2024 financial year
1,2,3
(vote “for”: 89.71%)
The BoD proposes an
aggregate amount of
variable compensation of
CHF 118,857,500
4
members of the GEB for
the 2025 financial year.
The GEB performance award pool reflects the outstanding performance of the GEB,
including the Group Chief Executive Officer (the Group CEO), in the context of
excellent overall Group performance, significant progress on our integration and
the resolution of legacy litigation matters. The 2025 GEB performance award pool
increased by 4%, which is below the Group performance award pool increase of
10% year on year.
GEB fixed
compensation
Shareholders approved
CHF 32,000,000 for the
2026 financial year
1,2,3
(vote “for”: 92.68%)
The BoD proposes a
maximum aggregate
amount of fixed
compensation of
CHF 30,000,000 for the
members of the GEB for
the 2027 financial year.
The proposed amount for 2027 has been reduced by CHF 2m compared with the
approved 2026 aggregate amount. This reduction is driven by changes in the GEB
composition resulting in fewer GEB roles. The proposed amount includes the base
salaries of the Group CEO and other GEB members, as well as estimated standard
contributions to retirement benefit plans and other benefits. The amount further
provides flexibility in light of potential changes in GEB composition or roles,
competitive considerations and other factors (e.g. changes in foreign exchange
rates or benefits).
BoD
compensation
Shareholders approved
CHF 15,000,000 for the
period from the 2025
AGM to the 2026
AGM
1,2,5
(vote “for”: 90.91%)
The BoD proposes a
maximum aggregate
amount of compensation
of CHF 15,000,000 for the
members of the BoD for
the period from the 2026
AGM to the 2027 AGM.
The proposed amount is unchanged compared with the approved aggregate
amount for the previous period from the 2025 AGM to the 2026 AGM. The amount
includes the total compensation for the Chairman and the Vice Chairman, both
with unchanged fixed fees. The fee structure for the other BoD members also
remains unchanged.
Advisory vote
on the
Compensation
Report
Shareholders approved the
UBS Group AG
Compensation Report
2024 in an advisory vote
(vote “for”: 86.70%)
The BoD proposes that the
UBS Group AG
Compensation Report
2025 be ratified in an
advisory vote.
Our Total Reward Principles and compensation framework continue to support the
alignment of compensation with the execution of our strategy and sustainable
performance. Overall, the GEB compensation framework remains consistent with
prior years. For the Group CEO the framework remains unchanged, while for the
other GEB members we have introduced an approach where deferral levels increase
progressively with higher performance award levels, as well as differentiating the
deferral mix between the Long-Term Incentive Plan (the LTIP) and the Deferred
Contingent Capital Plan. This approach provides greater potential for deferral into
the LTIP, which supports strong long-term alignment with our strategy and
shareholder interests. In addition, our compensation policies continue to reflect our
strong commitment to pay for performance and pay equity.
1
2
3
in “Group Executive Board” in the “Corporate governance” section of this report, 15 GEB members were in office on 31 December 2025 and on 31 December 2024.
4
year with a communicated value of 50% of the maximum opportunity (100%).
5
Advisory vote
|
Compensation philosophy and governance
Our compensation philosophy
Total Reward Principles
Our Total Reward Principles are fully aligned with our strategy and encourage employees to live our strong and inclusive
culture that is grounded in our three keys to success: our
Pillars, Principles and Behaviors.
underpin our approach to compensation and define our compensation framework. In 2025, we kept our Total Reward
Principles largely unchanged, reaffirming their continued alignment with our strategy and our three keys to success. This
aims to ensure that the interests of our employees are aligned with those of our clients and other stakeholders. In the
short-to-medium term, they also enable UBS to drive the economic and cultural integration of Credit Suisse and the long-
term value creation of the combined firm.
Therefore, our compensation approach supports our capital strength and risk management, and provides for
simplification and efficiency. It encourages employees to focus on client centricity, connectivity and sustainable impact in
everything we do. Moreover, we reward behaviors and conduct that help build and protect the firm’s reputation, including
Accountability with integrity, Collaboration and Innovation. Compensation for each employee is based on individual,
team, business division and Group performance, within the context of the markets in which we operate.
Total Reward Principles
Our Total Reward Principles apply to all employees globally but vary in certain locations according to local legal
requirements, regulations and practices. The table below provides a summary of our Total Reward Principles.
Reinforce our culture and strategy
Compensation reinforces and aligns with the firm’s culture and strategy, fosters engagement among
employees and aligns their long-term interests with those of clients and stakeholders.
Attract, retain and motivate a talented
workforce
We provide competitive and fair pay to support our global workforce based on meritocracy. Pay at UBS
reflects fair and equal treatment and is competitive. Our investment in a motivated workforce supports the
sustainability of the organization.
Foster pay-for-performance aligned with
sustainable achievement and our ways of
working
We pay for sustainable and holistic performance. Clear objectives, as well as a thorough evaluation of
what was achieved and how it was achieved, combined with effective communication, promote clarity,
accountability and establish a strong link between pay and performance. This approach emphasizes
behaviors and conduct, including Accountability with integrity, Collaboration and Innovation.
Reinforce sustainable long-term value
creation and growth
Compensation is appropriately balanced between fixed and variable elements and delivered over an
adequate period to support our growth ambitions and sustainable performance.
Support risk awareness and appropriate
risk-taking
Our compensation structure encourages employees to have a focus on risk management and behave
consistently with the firm’s risk framework and appetite, thereby anticipating and managing risks
effectively to protect our capital and reputation.
Our Total Reward approach
We apply a holistic Total Reward approach, generally consisting of fixed compensation (base salary and role-based
allowances, if applicable), performance awards, pension contributions and benefits. Our Total Reward approach is
structured to support sustainable results and growth ambitions.
For employees whose total compensation exceeds certain levels, performance awards are delivered in a combination of
cash, deferred contingent capital awards and deferred share-based awards.
A substantial portion of performance awards is deferred and vests over a five-year period. This deferral approach supports
alignment of employee and investor interests, our capital base and the creation of sustainable shareholder value.
›
Refer to “Compensation elements for all employees” in the “Group compensation” section of this report for more information
Advisory vote
|
Fair and equitable pay
Pay equity and equal opportunity are fundamental to support our strategy. Being an employer of choice and inclusive of
all experiences, perspectives and backgrounds is critical to our success. Factors such as gender, culture, race, ethnicity,
sexual orientation and identity, disability, family, veteran status, generations and part-time status should not impact
opportunities available to our employees.
Fair and consistent pay practices are designed to ensure that employees are appropriately rewarded for their contribution.
We pay for performance, and we take pay equity seriously. Across all our locations we apply the same fair pay standards,
reinforced by annual reviews of our approach and policies in line with established equal pay methodologies.
In 2025, our statistical pay gap analyses reaffirmed that pay differences between male and female employees in similar
roles across our core financial hubs remained below 1%, a difference consistent with that for 2024. If we find any gaps
not explained by business or by appropriate employee factors, such as role, responsibility, experience, performance or
location, we look at the root causes and address them.
We also aim to ensure that all employees are paid at least a living wage. We regularly assess employees’ salaries against
local living wages, using benchmarks defined by the Fair Wage Network. Our analysis in 2025 showed that employees’
salaries were at or above the respective benchmarks.
›
Refer to the “People and culture make the difference“ section of the UBS Group Sustainability Report 2025, available under
“Annual reporting” at
ubs.com/investors
, for more information about workplace inclusion
Compensation governance
Board of Directors and Compensation Committee
The Board of Directors (the BoD) is ultimately responsible for approving the compensation strategy and principles
proposed by the Compensation Committee, which determines compensation-related matters in line with the principles
set forth in the Articles of Association (the AoA).
As determined in the AoA and the firm’s Organization Regulations, the Compensation Committee supports the BoD with
its duties to set guidelines on compensation and benefits, to oversee implementation thereof, to approve certain
compensation and to scrutinize executive performance. The Compensation Committee consists of independent BoD
members, who are elected annually by shareholders at the Annual General Meeting (the AGM), and is responsible for
governance and oversight of our compensation process and practices. This includes the alignment between pay and
performance, and ensuring that the compensation framework supports appropriate risk awareness and management, as
well as appropriate risk-taking. In 2025, to additionally support the connection between the Compensation Committee
and the Risk Committee, the Compensation Committee Chairperson was also a member of the Risk Committee.
Annually, and on behalf of the BoD, the Compensation Committee:
–
reviews our Total Reward Principles;
–
approves key features of the compensation framework for the members of the Group Executive Board (the GEB);
–
reviews performance award funding throughout the year and proposes, upon proposal of the Group Chief Executive
Officer (the Group CEO), the final annual Group performance award pool to the BoD for approval;
–
upon proposal of the Group CEO, approves the performance assessment framework for the other GEB members;
–
upon proposal of the Group CEO, proposes the performance assessments and the individual total compensation for
the other GEB members for approval by the BoD;
–
upon proposal of the Chairman, for the Group CEO, proposes the financial performance targets and non-financial
objectives, the performance assessment and the total compensation for approval by the BoD;
–
approves the total compensation for the Chairman and the non-independent BoD members;
–
proposes the remuneration / fee framework for BoD members for approval by the BoD;
–
upon proposal of the Chairman and the Group CEO, approves the remuneration / fee frameworks for external
supervisory board members of Significant Group Entities and is informed of remuneration / fee frameworks for external
supervisory board members of Significant Regional Entities;
–
proposes to the BoD for approval the annual compensation report and approves other material public disclosures on
UBS compensation matters; and
–
proposes to the BoD, for approval by the AGM, the maximum aggregate amounts of BoD compensation and GEB
fixed compensation and the aggregate amount of variable compensation for the GEB.
The Compensation Committee is required to meet at least four times each year. All meetings in 2025 were held in the
presence of the Chairman and the Group CEO. External advisors were present when required. Individuals, including the
Chairman and the Group CEO, are not permitted to attend a meeting or participate in a discussion on their own
performance and compensation.
After the meetings, the Chairperson of the Compensation Committee reports to the BoD on the Compensation
Committee’s activities and discussions and, if necessary, submits proposals for approval by the full BoD. Compensation
Committee meeting minutes are also sent to all members of the BoD. On 31 December 2025, the members of the
Compensation Committee were Julie G. Richardson (Chairperson), Gail Kelly and Jeanette Wong.
›
Refer to “Board of Directors” in the “Corporate governance” section of this report for more information
Advisory vote
|
External advisors
The Compensation Committee may retain external advisors to support it in fulfilling its duties. In 2025, HCM International
Ltd. (HCM) provided independent advice on compensation matters. HCM holds no other mandates with UBS.
Additionally, Willis Towers Watson plc (WTW) provided the Compensation Committee with data on market trends and
pay levels. Various subsidiaries of WTW provide similar information to UBS’s human resources department in relation to
compensation for employees, including advisory services and secondments to UBS to support the ongoing integration.
WTW holds no other compensation-related mandates with UBS.
The Risk Committee’s role in compensation
The Risk Committee, a committee of the BoD, works closely with the Compensation Committee with the goal of ensuring
that our compensation framework appropriately reflects risk awareness and management, and supports appropriate risk-
taking. It supervises and sets appropriate risk management and risk control principles and is regularly briefed on how risk
is factored into the compensation process. It also monitors the involvement of Group Risk Control and Compliance and
Operational Risk Control in compensation and reviews risk-related aspects of the compensation process.
›
Refer to
ubs.com/governance
Compensation Committee 2025 / 2026 key activities and timeline
July
Sept
Oct
Nov
Dec
1
Jan
1
Feb
Strategy, policy and governance
Total Reward Principles
l
Integration-related compensation matters
l
l
l
l
l
Pay fairness and sustainability in the compensation process
l
l
l
l
Compensation disclosure and stakeholder communication matters
l
l
l
l
AGM reward-related items
l
l
Compensation Committee governance
l
l
Annual compensation review
Accruals and full-year forecast of the performance award pool funding
l
l
l
l
l
Performance targets and performance assessment of the Group CEO and GEB members
l
l
l
Group CEO and GEB members’ salaries and individual performance awards
l
l
Update on market practice, trends and peer group matters
l
l
Pay for performance, including governance on certain higher-paid employees, and formulaic compensation
arrangements
l
l
l
l
l
l
l
Board of Directors remuneration
l
Compensation framework
Compensation framework and deferred compensation matters
l
l
l
l
l
Risk and regulatory
Risk management in the compensation approach
l
l
l
l
l
Joint meeting with the BoD Risk Committee
l
Regulatory activities impacting employees and engagement with regulators
l
l
l
l
l
l
1 The Compensation Committee held two meetings in December 2025 and in January 2026.
Compensation governance
The table below provides an overview of compensation governance by specific role.
Recipients
Compensation recommendations proposed by
Approved by
Chairman of the BoD and
Vice Chairman of the BoD
Compensation Committee
Compensation Committee
1
Other BoD members
Compensation Committee and Chairman of the BoD
BoD
1
Group CEO
Compensation Committee and Chairman of the BoD
BoD
1
Other GEB members
Compensation Committee and Group CEO
BoD
1
Key Risk Takers (KRTs) /
senior employees
Respective GEB member and functional management
team
Individual compensation for KRTs and senior employees:
Group CEO
1
Advisory vote
|
Performance award pool funding
Our compensation philosophy focuses on balancing performance with appropriate risk-taking, retaining talented
employees and supporting shareholder returns. Our overall performance award pool funding percentage decreases as
financial performance increases. In years of strong financial performance, this prevents excessive compensation and
results in an increased proportion of profit before performance awards being available for distribution to shareholders or
growing the Group’s capital. In years where performance declines, the performance award pool will generally decrease;
however, the funding percentage may increase.
Our performance award pool funding framework is based on Group and business division performance, including
achievements against defined performance measures. In assessing performance, we also consider relative performance
versus peers, market competitiveness of our pay position, as well as progress against our strategic and integration
objectives, including returns, risk-weighted assets and cost efficiency. The Risk and Compliance functions support our
holistic reflection and consideration of the financial and non-financial impact (including reputation) of risk matters. We
further consider the firm’s risk profile and culture, the extent to which operational risks and audit issues have been
identified and resolved, and the success of risk reduction initiatives including accountability for significant events.
The funding for Group functions is linked to overall Group performance and also reflects factors such as headcount and
workforce location. For each functional area, quantitative and qualitative assessments evaluate service quality, risk
management and financial achievements.
Our decisions regarding the total Group performance award pool also balance consideration of financial performance
with a range of factors, including the impact of litigation, regulatory costs, the effect of changes in financial accounting
standards, capital returns and relative total shareholder return.
For 2025, the performance award pool was determined by applying our usual approach described above. Our decision-
making reflects the progress and complexity of the economic and cultural integration and supports the creation of long-
term value in the combined firm for our shareholders.
Sustainability is well embedded into the culture of our organization and our employee base across all levels. These topics,
including serving our clients’ needs, delivering on our reporting requirements and supporting an inclusive workplace
based on meritocracy where all employees can be successful and thrive, continue to be a priority. Considering our
standing in these areas over the last several years, for 2025 these had no impact in our decision-making.
Before making its final proposal to the BoD, the Compensation Committee considers the Group CEO’s proposals and can
apply a positive or negative adjustment to the performance award pool.
›
Refer to “2025 Group performance outcomes” in the “Group compensation” section of this report
›
Refer to the “Group performance” section of this report for more information about our results
Advisory vote
|
1
Business division financial
performance
The starting point for the funding process is the business division financial performance, which may be adjusted
for items that are not reflective of the underlying business division performance.
2
Risk-adjusted business
division performance
award pool
Predetermined business division-specific funding rates are applied to risk-adjusted performance, which excludes
items that are not reflective of the underlying business performance.
3
Strategic / integration /
business division measures
Each division is assessed based on specific measures (e.g. net new fee generating assets, return on attributed
equity). In the short-to-medium term, to support the economic and cultural integration of Credit Suisse and the
creation of long-term value of the combined firm for our shareholders, our decision-making also reflects the
progress on and the complexity of the transaction, including the need to retain key talent, support pay fairness
across the entire organization and stabilize the franchise during the integration period.
Qualitative, risk and
regulatory assessment
Decision-making considers the firm’s risk profile and the extent to which operational risks and audit issues have
been identified and resolved, as well as other items, such as the impact of litigation and regulatory costs. The Risk
and Compliance functions support our holistic reflection and consideration of the financial and non-financial
impact (including reputation) of risk matters.
Relative performance
versus peers
Performance is assessed relative to our peers, including financial performance, returns and relative total
shareholder return.
Market position and trends
Market intelligence, based on information from external advisors, helps assess the competitiveness of our pay
levels and compensation structure. It also provides a prospective view of market trends in terms of absolute
compensation levels, compensation framework and industry practice.
4
Recommended business
division performance
award pools
The business division performance award pool determination process, based on quantitative and qualitative
assessments, results in a proposal from the Group CEO (after consultation with the GEB) to the Compensation
Committee for consideration.
5
Final Group performance
award pool
The Compensation Committee considers the proposal in the context of the factors outlined above and verifies that
it is in line with our strategy and our Total Reward Principles to create sustainable shareholder value and support
our growth ambitions. The Committee may alter the proposal of the Group CEO (upward or downward, including
proposing a zero award) before making its final proposal to the BoD.
Advisory vote
|
Compensation for GEB members
GEB compensation framework
After a careful review of investor feedback and competitive practice, the Compensation Committee confirmed that our
Total Reward Principles and overall compensation framework continue to support the alignment of compensation with
the execution of our strategy, sustainable performance and the delivery of our integration objectives.
Overall, the compensation framework remains consistent with prior years. With respect to the Group Chief Executive
Officer (the Group CEO), the significant deferral level, structure and vesting schedule over five years remains unchanged.
For the other Group Executive Board (GEB) members the vesting schedule also remains unchanged. We have aligned the
deferral level toward the competitive market, introducing an approach where deferral levels increase progressively with
higher performance award levels, as well as differentiating the deferral mix between the Long-Term Incentive Plan (the
LTIP) and the Deferred Contingent Capital Plan (the DCCP).
Both the LTIP and the DCCP remain mandatory deferral plans with the majority of the deferral continuing to be equity-
based (minimum of 62.5%). While our revised approach provides greater potential for deferral into the LTIP, which,
coupled with our significant GEB share ownership requirements, supports strong long-term alignment with our strategy
and shareholder interests, a portion of the variable compensation continues to be deferred into the DCCP. We believe
our revised deferral regime continues to be more stringent than the competitive market, with deferral levels and delivery
schedules that exceed those typically observed in the industry.
In context of the evolving UK remuneration rules, we have aligned the compensation framework for GEB members who
are UK Material Risk Takers (UK MRTs) and UK Senior Management Functions (UK SMFs) with that of other GEB members.
Over the course of 2025, two GEB members held a UK SMF role for one of our UK entities, and one additional GEB
member was identified as a UK MRT.
›
Refer to “Our deferred compensation plans” in the “Group compensation” section of this report for more information
›
Refer to the “Group compensation” section of this report for more information
›
Refer to “Regulated staff” in the “Supplemental information” section of this report for more information
Advisory vote
|
Pay-for-performance safeguards for GEB members
Performance
award caps
–
Cap on the total GEB performance award pool (2.5% of profit before tax)
1
–
Caps on individual performance awards for all GEB members, including the Group CEO, of seven times their annual fixed compensation
rate; where the annual fixed compensation rate (i.e. salary) is delivered in currencies other than the Swiss franc, the maximum total
compensation is aligned to the Swiss franc determined GEB members
–
Cap of 20% of performance award in cash for the Group CEO and 35% for other GEB members
Delivery and
deferral
–
65% to 80% of performance awards are at risk of forfeiture
–
Long-term deferral over five years
–
Alignment with shareholders (through the LTIP) and bondholders (through the DCCP)
–
Final payout of equity-based / LTIP award s subject to absolute and relative performance conditions (three-year performance period)
Contract
terms
–
No severance terms
–
Notice period between six and twelve months
Other
safeguards
–
Share ownership requirements
–
No hedging allowed
–
GEB variable compensation subject to clawback in line with US regulatory requirements
1
Current and former GEB members are subject to a clawback policy based on the US Securities and Exchange Commission
(SEC) requirement for listed companies on US national securities exchanges / associations. This clawback policy is applied
if UBS is required to prepare an accounting restatement of financial statements due to material non-compliance with
financial reporting requirements. In that event, UBS would consider recovering the amount of variable compensation that
exceeds the amount that would have been determined based on the restated financial statements (the final amount will
be determined at the discretion of the Compensation Committee).
Advisory vote
|
GEB share ownership requirements
To align the interests of GEB members with those of our shareholders and to demonstrate personal commitment to the
firm, we require all GEB members including the Group CEO to hold a substantial number of UBS shares. GEB members
must reach their minimum shareholding requirements within five years from their appointment and retain it throughout
their tenure. The total number of UBS shares held by a GEB member consists of any vested or unvested shares, including
privately held shares. At the end of 2025, all GEB members met their share ownership requirements, except for some of
those appointed within the last three years, who still have time to build up and meet the required share ownership.
As of 31 December 2025, our GEB members held shares with an aggregate value of approximately USD 547m.
Share ownership requirements
Group CEO
min. 1,000,000 shares
Must be built up within five years from their appointment and retained throughout
their tenure
Other GEB members
min. 500,000 shares
GEB base salary
Each GEB member receives a fixed base salary, which is reviewed annually by the Compensation Committee. The 2025
annual base salary for the Group CEO role was CHF 2.5m and has remained unchanged since 2011.
At the Annual General Meeting (the AGM), the shareholders are asked to approve the maximum aggregate amount of
fixed compensation for GEB members for the following financial year.
›
Refer to the “Supplemental information” section of this report for more information about MRTs and SMFs
›
Refer to the “Say-on-pay” section of this report for more information about the AGM vote on fixed compensation for the GEB
Caps on the GEB performance award pool
The size of the GEB performance award pool may not exceed 2.5% of the Group’s profit before tax. This limits the overall
GEB compensation based on the firm’s profitability. For 2025, the total GEB performance award pool was CHF 118.9m
and below the 2.5% cap.
In line with the individual compensation caps on the proportion of fixed pay to variable pay for all GEB members
(introduced in 2013), granted performance awards (at communicated value) of GEB members (including the Group CEO)
are capped at seven times their annual fixed compensation rate. Where the annual fixed compensation rate (i.e. salary)
is delivered in currencies other than the Swiss franc, the maximum total compensation is aligned to the Swiss franc-
determined GEB members. To the extent that local regulatory requirements on compensation caps apply, we will consider
equivalent ratios to comply with the respective regulatory regime. For 2025, performance awards (at communicated
value) granted to all GEB members including the Group CEO were, on average, 5.2 times their fixed compensation (in
Swiss franc terms, excluding one-time replacement awards, benefits and contributions to retirement plans).
›
Refer to “Performance award pool funding” in the “Compensation philosophy and governance” section of this report for more
information
GEB employment contracts
GEB members’ employment contracts do not include severance terms and are subject to a six-to-twelve-month notice
period. A GEB member leaving UBS before the end of a performance year may be considered for a performance award.
Such awards are subject to approval by the Board of Directors (the BoD) and ultimately by the shareholders at the AGM.
Benchmarking for GEB members
When recommending performance awards for the Group CEO and the other GEB members, the Compensation
Committee reviews the respective total compensation for each role against a financial industry peer group. The peer
group is selected based on comparability of their size, business mix, geographic presence and the extent to which they
compete with us for talent. The Compensation Committee considers our peers’ strategies, practices and pay levels, as
well as their regulatory environment; it also periodically reviews other firms’ pay levels or practices, including both
financial and non-financial sector peers, as applicable. The total compensation for a GEB member’s specific role considers
the compensation paid by our peers for a comparable role and performance within the context of our organizational
profile. The Compensation Committee periodically reviews and approves the peer group composition.
The table below presents the composition of our unchanged peer group as approved by the Compensation Committee
for the 2025 performance year.
Bank of America
HSBC
Barclays
JPMorgan Chase
BlackRock
Julius Baer
BNP Paribas
Morgan Stanley
Citigroup
Standard Chartered
Deutsche Bank
State Street
Goldman Sachs
Advisory vote
|
GEB performance assessments
We assess each GEB member’s performance against a set of financial targets, non-financial objectives and Behaviors. For
2025, the non-financial objectives continue to be assessed predominantly based on achievements relative to concrete
quantitative and measurable key performance indicators and are focused on delivering integration- and strategy-related
initiatives, client centricity, risk and regulatory, environmental and sustainability, and people- and governance-related
objectives. This approach continues to foster a focus on GEB priorities, including delivering the integration objectives and
the success of the Group, and promotes strong individual accountability.
All five non-financial categories are equally weighted (6% per category) and have a combined weight of 30% in the GEB
performance assessment. Two of the five non-financial categories (12%) cover environmental, social and governance
(ESG)-related objectives, which underscores the importance and impact of sustainability on GEB compensation. If a
category is not applicable based on a GEB member’s role, the remaining categories continue to be equally weighted for
a total of 30%.
The Compensation Committee exercises its judgment with respect to the performance achieved relative to the prior year,
our strategic plan and our competitors, and considers the Group CEO’s proposals. The Compensation Committee’s
proposals are subject to approval by the BoD.
For the Group CEO, a similar process is followed by the Compensation Committee, and then the full BoD, except that
the proposal comes from the Chairman of the BoD.
Advisory vote
|
Overview of performance assessment measures
We apply a range of quantitative measures to assess GEB member performance against financial and non-financial
objectives, while Behaviors are assessed qualitatively. Our approach for 2025 remains unchanged, with all categories in
the non-financial section being equally weighted, for a total weight of 30%. The table below provides a summary of the
main metrics and measures used for 2025. For GEB members other than the Group CEO financial metrics reflect 30%
Group metrics and 30% Divisional / Functional metrics, whereas for the Group CEO all 60% of the financial measures
reflects Group metrics.
Financial measures
(60%)
–
Group profit before tax
–
Group cost / income ratio
–
Group return on common equity tier 1 (CET1) capital
–
Divisional and functional measures (30%, as applicable)
Non-
financial
measures
(30%)
Integration and Strategy
(6%)
–
Progress on Group strategic and integration priorities
–
Delivery on division- / function-specific strategic programs and initiatives
Clients
(6%)
–
Foster delivery of the whole firm to our clients
–
Promoting collaboration across the combined organization
–
Delivery on specific key client initiatives
Risk and Regulatory
(6%)
–
Operating within risk appetite
–
Progress on delivering on risk initiatives and regulatory commitments
Environmental and
Sustainability
(6%)
–
Supporting clients’ activities related to the environment and sustainability
–
Management of required external sustainability reporting, including consideration of investor feedback
People and Governance
(6%)
–
People development, mobility, turnover and succession plan metrics
–
Employee listening / sentiment results and feedback on engagement and culture
Behaviors
(10%)
Accountability with integrity
Qualitative assessment
against expected
Behaviors:
–
Responsible for what they say and do
–
Takes ownership and makes things happen
–
Steps up and acts when something is not right
Collaboration
–
Trusts others and helps them to be successful
–
Delivers One UBS, together with their colleagues
–
Fosters an inclusive and equitable work environment
Innovation
–
Challenges perspectives and looks at every opportunity to improve
–
Actively seeks and provides feedback
–
Learns from every success and failure
Performance assessment categories
The performance of non-financial objectives and Behaviors is assessed against three performance categories, Excellent
contribution / Exemplary behavior, Good contribution / Expected behavior, and Needs focus, relative to defined measures
and outcomes. The achievement level for each measure results in a cumulative assessment score for non-financial
objectives and Behaviors, respectively, and cannot exceed 100%.
Advisory vote
|
2025 performance for the Group CEO
The performance award for the Group CEO is based on the achievement of financial performance targets and non-
financial objectives and Behaviors, as described earlier in this section.
These objectives were set to reflect the strategic priorities determined by the Chairman and the BoD.
›
Refer to “GEB compensation framework” in this section of this report for more information
Performance assessment for the Group CEO
The Board of Directors (the BoD) recognizes Mr. Ermotti’s continued excellent performance and exemplary leadership
throughout 2025. He delivered strong financial results and continued to focus the firm on helping clients navigate an
unpredictable market environment. Under Mr. Ermotti’s leadership, UBS made great progress on one of the most complex
integrations in banking history. In particular, we achieved all of our very ambitious 2025 integration milestones, including
migrating ~85% of 1.1 million client accounts booked in Switzerland and reducing the size and operating expenses of
our Non-core and Legacy division. In addition, Mr. Ermotti successfully positioned UBS to deliver further sustainable, long-
term growth and efficiency gains, as we complete the integration, leverage the benefits of our global scale,
interconnected franchises and regional expertise, and take advantage of the structural trends that are shaping our
industry.
For the full year 2025, UBS delivered a reported profit before tax (PbT) of USD 8,853m, up 30% year over year (YoY),
while the net profit attributable to shareholders increased by 53% and Return on CET1 (RoCET1) capital increased to
10.8%, a 4.1 percentage point increase from 2024. Both our CET1 capital ratio of 14.4% and CET1 leverage ratio of
4.4% remain comfortably above our guidance of ~14% and >4%, respectively. This robust capital situation enables UBS
to propose a dividend of USD 1.10 per share, up 22% YoY. Furthermore, we plan to accrue for mid-teens percent increase
in dividend per share in 2026; and intend to repurchase USD 3bn of shares in 2026.
The BoD also acknowledges Mr. Ermotti’s continued significant personal engagement with clients. This focus on serving
clients, combined with the strength of our franchise, resulted in Group invested assets exceeding USD 7trn for the first
time (up 15% YoY). We also continued to support the Swiss economy and the communities where we live and work,
while further investing in talent and capabilities. In addition, Mr. Ermotti was instrumental in advancing our support to
clients in the transition to a low-carbon world in line with our sustainability ambitions.
Furthermore, Mr. Ermotti consistently set a strong and clear tone from the top on the firm’s risk management and control
culture. He also demonstrated strong leadership by successfully reducing the litigation portfolio in the best interest of the
firm and shareholders. He remained the most important ambassador for a constructive and balanced public discussion in
the ongoing too-big-to-fail (TBTF) debate, with a significant personal engagement marked by transparent and consistent
communication with all stakeholders.
The BoD also recognizes Mr. Ermotti’s relentless drive to focus the organization on innovative solutions that benefit clients
and employees. He was instrumental in accelerating investments in people, offering, capabilities and technology,
including artificial intelligence (AI), to support our growth plans. In this context, he initiated transformational projects
that are designed to bolster our operational resilience, enhance client experience and unlock higher levels of efficiency
and effectiveness across the organization.
At the same time, Mr. Ermotti successfully adjusted the composition of the GEB in line with the future strategic demands.
He continued to champion our strong culture and values, which is reflected in consistently strong employee survey
outcomes that demonstrate positive feedback on people integration, the strong team culture and the inclusive and
collaborative work environment.
The table below illustrates the assessment criteria used to evaluate the achievements of Mr. Ermotti in 2025.
Financial performance
Weight
Performance
measures
2025 targets
2025 results
Achieve-
ment
1
Assess-
ment
2025 commentary
20%
Reported Group PbT
USD 6,789m
USD 8,853m
100%
20.0%
–
Reported Group PbT significantly exceeded plan and
increased 30% YoY, driven by continued strong client
momentum and integration progress.
20%
Reported Group C / I
ratio
2
84.1%
81.1%
100%
20.0%
–
Cost / Income ratio was better than plan and continued to
improve YOY, demonstrating ongoing strong cost discipline
20%
Reported Group
RoCET1
8.0%
10.8%
100%
20.0%
–
Return on CET1 capital exceeded plan and increased
significantly YoY
1
2
Advisory vote
|
Performance assessment for the Group CEO (continued)
Non-financial performance and Behaviors
Weight
Performance
measures
Achieve-
ment
Assess-
ment
2025 performance outcomes and key measures
30%
6%
Integration and
Strategy
Excellent
contribution
30.0%
–
Strong integration progress, with
~
85% of Swiss client accounts migrated without client
disruption, on track to complete Swiss migration in early 2026.
–
Non-core and Legacy portfolio de-risked well ahead of plan, supporting stability and
reducing legacy risk exposure faster than expected.
–
Strong business momentum across regions, including a record USD 1trn invested assets in
Asia Pacific and a 17.5% YoY increase in US Wealth Management net interest income.
–
Strengthened cross-divisional revenue generation, with significant progress in applying our
One Bank approach across the entire organization.
–
Strong personal client engagement, embedded a client-centric culture and improved client
solution delivery resulting in invested assets exceeding USD 7trn (up 15% YoY).
–
Continued high focus on risk management, with internal risk remediation metrics exceed
targets.
–
Significant reduction in litigation portfolio resulting in the release of USD ~949m.
–
Promoted strong risk culture, with an increase in proactive risk identification across the
organization.
–
Successfully steered UBS through a demanding ESG environment and delivered well-
respected sustainability reporting with strong shareholder support (89.5% approval rate).
–
Strong sustainability offering, e.g. with USD 634bn in sustainable financing and USD 716m
revenue in sustainable finance, and Asset Management delivering 23.4% of funds via
sustainable offerings (exceeding the target of 20%).
–
Exceeded our ambition of raising USD 400m per annum in donations (including UBS
matching contributions) by 2027 with the UBS Optimus network of foundations raising
USD 472m in such donations in 2025.
–
Successfully adjusted the composition of the GEB and supported strong internal talent
pipeline resulting in improved succession plans and quality metrics for senior managers that
exceed the internal targets.
–
Successfully made progress with the cultural integration and achieved continued positive
results in employee surveys (exceeding internal targets) with excellent employee feedback.
6%
Clients
6%
Risk and
Regulatory
6%
Environmental
and
Sustainability
6%
People and
Governance
10%
Behaviors
(Accountability
with Integrity,
Collaboration,
Innovation)
Exemplary
behavior
10.0%
–
Continued strong tone from the top on UBS behaviors, consistently promoting
transparency, responsibility and accountability across the organization.
–
Continued to be a role model with exemplary collaboration across the GEB and the
organization.
–
Championed innovation and technological transformation, particularly in AI adoption and
digital capabilities to enhance client experience.
Total assessment
(maximum 100%)
100.0%
The BoD approved the proposal by the Compensation Committee to grant Mr. Ermotti a performance award of
CHF 12.1m, resulting in a total compensation for 2025 of CHF 14.6m (excluding benefits and contributions to his
retirement benefit plan).
Aligned with the GEB compensation framework, the Group CEO’s performance award will be delivered 20% (CHF 2.4m)
in cash and the remaining 80% (CHF 9.7m) subject to deferral and forfeiture provisions, as well as meeting performance
conditions over the next five years.
Advisory vote
|
2025 total compensation for the GEB members
At the 2026 AGM, shareholders will vote on the aggregate 2025 total variable compensation for the GEB in Swiss francs.
The tables below provide the awarded compensation for the Group CEO and the GEB members in Swiss francs and, for
reference, the total amounts in US dollars for comparability with financial performance. The individual variable
performance awards for each GEB member will only be confirmed upon shareholder approval at the AGM.
›
Refer to “Deferred compensation” in the “Supplemental information” section of this report for more information about the
vesting of outstanding awards for GEB members
›
Refer to “Provisions of the Articles of Association related to compensation” in the “Supplemental information” section of this
report for more information
Audited |
Total compensation for GEB members
CHF, except where indicated
USD (for reference)
1
For the
year
Base salary
Contribution
to retirement
benefit plans
Benefits
2
Total fixed
compensation
Cash
3
Performance
award under
LTIP
4
Performance
award under
DCCP
5
Total
variable
compensation
Total fixed
and variable
compensation
6
Total fixed
compensation
Total
variable
compensation
Total fixed
and variable
compensation
6
Highest Paid Executive (for 2025 and for 2024 Sergio P. Ermotti, Group CEO)
2025
2,500,000
247,708
73,485
2,821,193
2,420,000
6,050,000
3,630,000
12,100,000
14,921,193
3,405,868
14,607,651
18,013,519
2024
2,500,000
248,320
91,647
2,839,967
2,420,000
6,050,000
3,630,000
12,100,000
14,939,967
Aggregate of all GEB members
7,8,9
2025
22,903,225
2,720,143
861,513
26,484,882
31,558,250
59,288,450
28,010,800
118,857,500
145,342,383
31,973,712
143,489,991
175,463,703
2024
25,461,247
2,684,041
1,246,777
29,392,065
26,438,714
53,490,910
34,255,553
114,185,176
143,577,241
1 Swiss franc amounts have been translated into US dollars for reference at the 2025 performance award currency exchange rate of CHF / USD 1.207244. 2 All benefits are valued at market price. 3 For 2024, for
GEB members who were also MRTs or SMFs, the cash portion includes blocked shares. For 2025, the cash portion does not include blocked shares as these have been eliminated per the changes to the UK regulatory
regime. 4 LTIP awards for the 2025 performance year were awarded at a value of 50.0% of maximum, which reflects our best estimate of the value of the award. The maximum number of shares is determined by
dividing the awarded amount by the estimated value of the award at grant, divided by CHF 32.924 or USD 43.044, the average closing price of UBS shares over the last ten trading days leading up to and including the
award date in February. 5 The amounts reflect the amount of the notional additional tier 1 (AT1) capital instrument excluding future notional interest. 6 Excludes the portion related to the legally required employer’s
social security contributions for 2025 and 2024, which are estimated at grant at CHF 9,700,000 and CHF 9,990,000, respectively, of which CHF 1,075,100 and CHF 1,333,000, respectively, are for the highest-paid
GEB member (excluding replacement awards). The legally required employees’ social security contributions are included in the amounts shown in the table above, as appropriate. 7 As stated in “Group Executive
Board” in the “Corporate governance” section of this report, 15 GEB members were in office on 31 December 2025 and 15 GEB members were in office on 31 December 2024. 8 Includes compensation paid under
employment contracts during notice periods for GEB members who stepped down during the respective years. 9 Includes compensation for newly appointed GEB members for their time in office as GEB members
during the respective years.
Total realized compensation for the Group CEO
The realized compensation for the Group CEO reflects the total amount paid out in the year. It includes the base salary,
cash performance award payments and all deferred performance awards vested in the year. As such, realized pay is the
natural culmination of awards granted and approved by shareholders in previous years.
To illustrate the effect of our long-term deferral approach, which has been in place since 2012, we disclose the annual
realized compensation of Mr. Ermotti, including a comparison with his total awarded compensation.
Total realized compensation vs awarded compensation for Sergio P. Ermotti
CHF
Realized
Awarded
For the year
Base salary
Cash award
1
Performance
award under
equity plans
1
Performance
award under
DCCP
1
Total realized
fixed and variable
compensation
Total awarded
fixed and variable
compensation
2
2025
2024
2023
3
1 Excludes dividend / interest payments. 2 Excludes contributions to retirement benefit plans and benefits. Includes social security contributions paid by Sergio P. Ermotti but excludes the portion related to the legally
required social security contributions paid by UBS. 3 Includes compensation for nine months, as Sergio P. Ermotti joined UBS in April 2023.
Advisory vote
|
Group compensation
Compensation elements for all employees
All elements of pay are considered when making our compensation decisions. We regularly review our principles and
compensation framework in order to remain competitive and aligned with stakeholders’ interests. In 2025, our
compensation framework remained broadly unchanged. We will continue to review our approach to salaries and
performance awards, considering market developments, our performance and our commitment to deliver sustainable
returns to shareholders.
Base salary and role-based allowance
Employees’ fixed compensation (e.g. base salary) reflects their level of skill, role and experience, as well as local market
practice. Base salaries are usually paid monthly or fortnightly, in line with local market practice. We offer competitive
base salaries that reflect location, function and role. Salary increases generally consider promotions, skill set, performance
and overall responsibility.
In addition to base salary, and as part of fixed compensation, some employees may receive a role-based allowance. This
allowance is a shift in the compensation mix between fixed and variable compensation, not an increase in total
compensation. It reflects the market value of a specific role and is fixed, non-forfeitable compensation. Unlike salary, a
role-based allowance is paid only if the employee is in a specific role. Similar to previous years, 2025 role-based allowances
consisted of a cash portion and, where applicable, a blocked UBS share award.
Pensions and benefits
We provide access to a range of benefit plans, such as retirement benefits and health insurance, aiming to provide
financial protection in case of significant life events and support our employees’ well-being and diverse needs. Retirement
and other benefits are set in the context of local market practice and regularly reviewed for competitiveness.
Pension plan rules in any one location are generally the same for all employees in similar circumstances, including GEB
members and other management. Under the Switzerland Pension Fund rules, there are no enhanced or supplementary
pension contributions for the GEB.
Performance award
Most of our employees are eligible for an annual performance award. The level of this award, where applicable, generally
depends on the firm’s overall performance, the employee’s business division, team and individual performance, and
behavior, reflecting their overall contribution to the firm’s results. These awards are in line with applicable local
employment conditions and at the discretion of the firm.
In addition to the firm’s Pillars and Principles, Behaviors related to Accountability with integrity, Collaboration and
Innovation are part of the performance management approach. Therefore, when assessing performance, we consider
not only what was achieved but also how it was achieved.
Our deferred compensation plans
Underlining our emphasis on sustainable performance and risk management, and our focus on achieving our growth
ambitions, we deliver part of our employees’ annual variable compensation through deferred compensation plans. We
believe that our approach, with a single incentive decision and mandatory deferral framework, is transparent and well
suited to implementing our compensation philosophy and delivering sustainable performance. This aligns the interests of
our employees and shareholders and appropriately links compensation to longer-term sustainable performance.
Our mandatory deferral approach applies to all employees with regulatory-driven deferral requirements or total
compensation greater than USD / CHF 300,000. Certain regulated employees, such as Senior Management Functions
(SMFs) and Material Risk Takers (MRTs), are subject to additional requirements (e.g. clawback requirements).
The deferred amount increases at higher marginal rates in line with the value of the performance award. The effective
deferral rate therefore depends on the amount of the performance award and the amount of total compensation.
We believe our deferral regime has one of the longest vesting periods in the industry. The weighted average deferral
period for non-regulated employees is 4.4 years for GEB members, 3.8 years for Managing Directors (MDs) receiving the
Long-Term Incentive Plan (LTIP) and 3.5 years for other employees. Additionally, from time to time, we may utilize
alternative deferred compensation arrangements to remain competitive in specific business areas.
To further promote sustainable performance, all of our deferred compensation plans include employment conditions and
malus conditions. These enable the firm to reduce or fully forfeit unvested deferred awards under certain circumstances,
pursuant to performance and harmful acts provisions. In addition, forfeiture is triggered in cases where employment has
been terminated for cause.
Advisory vote
|
Upon vesting of the notional share awards, we fulfill our share delivery obligations by delivering treasury shares purchased
in the market.
›
Refer to “Note 26 Employee benefits: variable compensation” in the “Consolidated financial statements” section of this report for
more information
›
Refer to the “Supplemental information” section of this report for more information about MRTs and SMFs
Variable compensation elements by employee category
Deferred compensation elements
Employee category
Cash
LTIP
EOP
DCCP
GEB members and Managing Directors reporting to the GEB and their direct reports at
Managing Director level (as applicable)
✔
✔
1
✔
Employees subject to mandatory deferral framework
✔
✔
1
1
Employees in investment areas within Asset Management typically receive notional funds (Fund Ownership Plan) in lieu of Equity Ownership Plan (EOP) / LTIP to align their compensation more closely with fund
performance, industry standards and regulatory requirements.
Long-Term Incentive Plan
The LTIP granted for 2025 performance is a mandatory deferral plan for GEB members and MDs reporting to the GEB
and their direct reports at MD level.
1
LTIP to support delivering on our ambitious integration goals and business / financial targets. This further mitigates the
need for a distinct integration award typical for a transaction of this nature. For the 2025 performance year, we awarded
the LTIP to 15 GEB members and 965 MDs in office during 2025, at a communicated value of 50% of the maximum.
The performance metrics of the share-based LTIP awards are average reported return on CET1 capital (RoCET1) and
relative total shareholder return (rTSR) over a three-year performance period starting on 1 January in the year of grant.
Performance outcomes and actual payout levels will be disclosed at the end of the performance period.
For the 2025 LTIP granted in 2026, we have increased the performance range of the three-year average reported RoCET1
metric (50% weighting) to 8–16% from the previous 7.5–14%. This adjustment reflects the progress of our ambitious
integration objectives, and to appropriately incentivize management to deliver on our evolving return ambitions:
–
the maximum reported RoCET1 of 16% corresponds with a 100% payout;
–
the minimum reported RoCET1 of 8% corresponds with a 33% payout and supports our focus on delivering
sustainable results and appropriate risk taking, there is zero payout if RoCET1 is below 8%; and
–
the linear payout between the threshold and maximum levels supports our focus on delivering sustainable performance
without encouraging excessive risk-taking.
The rTSR performance metric (50% weighting) over the three-year period further aligns the interests of employees with
those of shareholders. This metric compares the total shareholder return (the TSR) of UBS with the TSR of an index
consisting of listed Global Systemically Important Banks (G-SIBs):
–
the maximum payout outcome is reached when rTSR is 25 percentage points or more above the index, to mitigate the
potential for excessive risk-taking;
–
there is zero payout if rTSR is more than 25 percentage points below the index; and
–
the linear payout between the threshold and maximum levels further supports appropriate risk-taking.
This G-SIB index is independently determined by the Financial Stability Board (excluding the UBS Group), our index
includes all publicly traded G-SIBs and reflects companies with a comparable risk profile and impact on the global
economy. The index is equally weighted, calculated in Swiss francs and maintained by an independent index provider,
ensuring independence of the TSR calculation.
1
Includes senior managers who were previously LTIP recipients and who are no longer reporting to the GEB or their direct reports at MD level, excludes MDs in Asset Management Investment Areas (who receive the
Fund Ownership Plan (FOP) instead of the LTIP).
Advisory vote
|
G-SIBs that are listed companies
1
Agricultural Bank of China
Goldman Sachs
Santander
Bank of America
Groupe Crédit Agricole
Société Générale
Bank of China
HSBC
Standard Chartered
Bank of Communications
ICBC
State Street
Bank of New York Mellon
ING
Sumitomo Mitsui FG
Barclays
JPMorgan Chase
Toronto -Dominion
BNP Paribas
Mitsubishi UFJ FG
Wells Fargo
China Construction Bank
Mizuho FG
Citigroup
Morgan Stanley
Deutsche Bank
Royal Bank of Canada
1
Dividend equivalents (granted where applicable regulation permits) are subject to the same terms as the underlying LTIP
award.
LTIP awards reflect the long-term focus of our compensation framework. The final number of shares as determined at
the end of the three-year performance period will vest in three equal installments in each of the three years following
the performance period for GEB members (i.e. years 3, 4 and 5 after grant) and will cliff-vest for other award recipients
after the performance period (i.e. year 3 after grant), although longer deferral periods may apply for certain UK-regulated
employees.
LTIP payout illustration
–
The final number of notional shares
vesting will vary based on the
achievement versus the performance
metrics.
–
Linear payout between threshold and
maximum performance.
–
Achievement levels are a percentage
of the maximum opportunity of the
LTIP and cannot exceed 100%.
–
Full forfeiture for performance below
the predefined threshold levels.
–
UK Senior Management Function
holders (SMFs) and UK Material Risk
Takers (UK MRTs) are subject to an
additional non-financial metric based
on a conduct assessment with a
potential downward adjustment of
up to 100% of the entire award.
Performance metric:
average RoCET1 (50% of award)
Below threshold (<8%)
Threshold (8%) up to
maximum (<16%)
Maximum and above (>16%)
Full forfeiture
(payout 0%)
Partial vest
(payout between 33% and <100%)
Full vest
(payout 100%)
Performance metric
: rTSR vs G-SIBs index (50% of award)
Below threshold (<–25 ppts)
Threshold (–25 ppts) up to
maximum (<+25 ppts)
Maximum and above (>+25 ppts)
Full forfeiture
(payout 0%)
Partial vest
(payout between 33% and <100%)
Full vest
(payout 100%)
Performance achievement of the 2022 LTIP granted in 2023
The 2022 LTIP was granted in 2023 (for 2022 performance) at a fair value of 71.45% of a maximum of 100%. The final
performance achieved is 71.56% of a maximum of 100%. This achievement reflects the outcome of the two equally
weighted performance metrics, RoCET1 and rTSR, both measured over the three-year performance period from 1 January
2023 to 31 December 2025. The achievement level of this 2022 LTIP award (granted in 2023) applies to 4 current GEB
members.
We achieved a three-year average RoCET1 performance of 18.17% against the performance range of 8% to 18% and
an rTSR performance of –17.45 percentage points versus the index of listed G-SIBs.
As explained in the 2025 key compensation themes section of this report, the Compensation Committee made certain
adjustments to the reported 2023, 2024 and 2025 RoCET1 outcomes to determine the 2022 LTIP achievement level.
These adjustments resulted in a negative impact to the three-year average RoCET1 metric, which nonetheless still resulted
in a 100% achievement level. No adjustments were made to the rTSR metric.
For GEB members, the first of the three equal installments of the 2022 LTIP vests on 9 March 2026, and the second and
third installments will vest in March 2027 and 2028.
Advisory vote
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Equity Ownership Plan / Fund Ownership Plan
The Equity Ownership Plan (the EOP) is the deferred compensation plan for employees that are subject to deferral
requirements but do not receive LTIP awards. For the 2025 performance year, we granted EOP awards to 4,087
employees.
Delivering sustainable results is a key objective for UBS. Our EOP creates a direct link with shareholder returns as a notional
equity award and has no upward leverage. This approach promotes growth and sustainable performance. EOP awards
generally vest over three years.
In place of EOP, 348 employees in investment areas within Asset Management receive notional funds under the Fund
Ownership Plan (the FOP), to align their compensation more closely with industry standards. This plan is delivered in cash
and vests over three years.
›
Refer to “Vesting of outstanding awards granted in prior years subject to performance metrics and thresholds” in the
“Supplemental information” section of this report for more information
Deferred Contingent Capital Plan
The Deferred Contingent Capital Plan (the DCCP) is a key component of our compensation framework and supports
alignment of the interests of our senior employees with those of our stakeholders.
Generally, all employees subject to deferral requirements receive DCCP awards. For the 2025 performance year, we
granted DCCP awards to 5,317 employees.
The DCCP is consistent with many of the features of the loss-absorbing bonds that we issue to investors and may be paid
at vesting in cash or, at the discretion of the firm, as a perpetual, marketable additional tier 1 (AT1) capital instrument.
Employees can elect to have their DCCP awards denominated in Swiss francs or US dollars.
DCCP awards vest in full after five years. DCCP awards bear notional interest paid annually (except as limited by regulation
for MRTs), subject to review and confirmation by the Compensation Committee. The notional interest rate for grants in
2026 was 3.05% for awards denominated in Swiss francs and 6.7% for awards denominated in US dollars. These interest
rates are based on the current market rates for similar AT1 capital instruments issued by the UBS Group.
Awards are forfeited if a viability event occurs (i.e. if FINMA notifies the firm that the DCCP awards must be written down
to mitigate the risk of an insolvency, bankruptcy or failure of UBS) or if the firm receives a commitment of extraordinary
support from the public sector that is necessary to prevent such an event. DCCP awards are also written down for GEB
members if the Group’s CET1 capital ratio falls below 10% and for all other employees if it falls below 7%.
In addition, GEB members forfeit 20% of DCCP awards for each loss-making year during the vesting period. This means
100% of the award is subject to risk of forfeiture. The forfeiture features of DCCP create a strong alignment with our
debt holders and support the sustainability of the firm.
Over the last five years, USD 2.40bn of DCCP awards have been issued. DCCP contributes to the Group’s total loss-
absorbing capacity (TLAC). Therefore, DCCP awards not only support competitive pay but also provide a loss absorption
buffer that protects the firm’s capital position. The following table illustrates the contribution of the DCCP to our AT1
capital and the effect on our TLAC ratio.
›
Refer to the “Supplemental information” section of this report for more information about performance award and personnel-
related expenses
›
Refer to the “Supplemental information” section of this report for more information about longer vesting and clawback periods
for MRTs and SMFs
Contribution of the Deferred Contingent Capital Plan to our loss-absorbing capacity
1
USD m, except where indicated
31.12.25
31.12.24
Deferred Contingent Capital Plan (DCCP), eligible as high-trigger loss-absorbing additional tier 1 capital
2,365
2,044
DCCP contribution to the total loss-absorbing capacity ratio (%)
0.5
0.4
1 Refer to “Bondholder information” at ubs.com/investors for more information about the capital instruments of UBS Group AG and UBS AG both on a consolidated and a standalone basis.
Advisory vote
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Other variable compensation components
To support hiring and retention, particularly at senior levels, we may offer other compensation components, such as:
–
retention payments to key employees to induce them to stay, particularly during critical periods for the firm, such as a
sale or wind-down of a business;
–
on a limited basis, guarantees that may be required to attract individuals with certain skills and experience, these awards
are fixed incentives subject to our standard deferral rules and limited to the first full year of employment;
–
awards granted to employees hired late in the year to replace performance awards that they would have earned at
their previous employer but have foregone by joining UBS, these awards are generally structured with the same level
of deferral as for employees at a similar level at UBS; and
–
in exceptional cases, sign-on awards may be offered to candidates to increase the chances of them accepting our offer.
These other variable compensation components are subject to a comprehensive governance process, which may involve
the Compensation Committee, depending on the amount or type of such payments.
Employees outside of the GEB that are made redundant may receive severance payments. Our severance terms comply
with the applicable local laws (legally obligated severance). In certain locations, we may provide severance packages that
are negotiated with our local social partners and may go beyond the applicable minimum legal requirements (standard
severance). Such payments are governed by location-specific severance policies. In addition, we may make severance
payments that exceed legally obligated or standard severance payments where we believe these are aligned with market
practice and appropriate under the circumstances (supplemental severance). GEB members do not receive severance
payments.
Replacement awards and forfeitures
In line with industry practice, our compensation framework and plans include provisions generally requiring reduction /
forfeiture of a terminated employee’s unvested or deferred awards. In particular, these provisions apply if the terminated
employee joins another financial services organization and / or violates restrictive covenants, such as solicitation of clients
or employees.
Conversely, to attract external top talent, market practice dictates that we consider replacing their forfeited compensation
from their prior employer. In select situations and based on careful consideration, we replace the lost compensation of
senior hires. The replacement awards are subject to UBS’s harmful acts provisions. Their value is subject to independent
review as part of the “Report of the statutory auditor on the compensation report” to support the like-for-like nature of
the replacement and to confirm that these awards do not represent sign-on payments (i.e. there are no golden hellos).
Based on a thorough review of available documentation, we aim to mirror the type, conditions and timing of the forfeited
compensation, based on actual facts and circumstances. Replacement awards can include cash payments and / or
deferred awards, including EOP share awards and DCCP awards. Where payments are made in cash, there is typically a
clawback period if the employee leaves UBS voluntarily within 12 months of the start of employment. The replacement
awards do not exceed the commercial or fair value of the compensation actually forfeited by the individual and, in case
of GEB members, are disclosed transparently. The total 2025 forfeitures of USD 456m of previously awarded deferred
compensation offset the 2025 total sign-on payments, replacement payments and guarantees of USD 145m.
Sign-on payments, replacement payments, guarantees and severance payments
Total 2025
of which: non-deferred
cash
of which: deferred
compensation
awards
Total 2024
Number of beneficiaries
USD m, except where indicated
2025
2024
Total sign-on payments
1
of which: Key Risk Takers
2
Total replacement payments
3
of which: Key Risk Takers
2
Total guarantees
4
of which: Key Risk Takers
2
Total severance payments
1,5
of which: Key Risk Takers
2
1 GEB members are not eligible for sign-on or severance payments. Sign-on awards exclude one-time payments for junior associate hires into the Investment Bank. Including these, the total sign-on payments are
USD 1m for 2025 and USD 1m for 2024. All one-time payments for junior associate hires are subject to a 12-month clawback condition. 2 Expenses for Key Risk Takers are full-year amounts for individuals in office
on 31 December 2025. Prior period information has been adjusted to exclude employees with a total compensation exceeding USD / CHF 2.5m who were not otherwise identified as KRTs. 3 No GEB member received
a replacement payment in 2025 or 2024. Total amounts include awards granted to employees hired late in the year to replace performance awards that they would have earned at their previous employers but have
foregone by joining UBS. 4 No GEB member received a guarantee in 2025 or 2024. 5 Includes legally obligated and standard severance payments, as well as payments in lieu of notice.
Advisory vote
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Forfeitures
1
Total 2025
Total 2024
USD m, except where indicated
Total forfeitures
of which: Key Risk Takers
2
1 For notional share awards, forfeitures are calculated as units forfeited during the year, valued at the share price on 31 December 2025 (USD 46.31) for 2025. The 2024 data is valued using the share price on
31 December 2024 (USD 30.32). For LTIP the forfeited units reflect the fair value awarded at grant. For the notional funds awarded to Asset Management employees under the AM EOP / FOP in 2025 and 2024, and
CS Legacy notional funds for 2025, this represents the fair value at the time of the employee forfeiture. For the DCCP, the fair value at grant of the forfeited awards during the year is reflected. All values shown
exclude DCCP interest. Value also excludes the previously forfeited uplift value of the CS legacy Strategic Delivery Plan. Numbers presented may differ from the effect on the income statement in accordance with IFRS.
2 Key Risk Takers as defined by UBS, including former GEB members who forfeited awards in 2025 or 2024. Prior period information has been adjusted to exclude employees with a total compensation exceeding
USD / CHF 2.5m who were not otherwise identified as KRTs.
Employee share ownership
Employee share ownership is encouraged and, in addition to our mandatory deferred share-based compensation plans
LTIP and EOP, made possible through our Equity Plus Plan (the EPP). The EPP is our employee share purchase program. It
allows employees up to Executive Director level to voluntarily invest up to 30% of their base salary and / or regular
commission payments to purchase UBS shares. In addition (where offered), eligible employees can invest up to 35% of
their performance award under the program. Participation in the program is capped at USD / CHF 20,000 annually.
Eligible employees may purchase UBS shares at market price and receive, at no additional cost, one additional notional
share for every three shares purchased through the program. Additional shares vest after a maximum of three years,
provided the employee remains employed by UBS and has retained the purchased shares throughout the holding period.
On 31 December 2025, UBS employees held at least 6.94% of UBS shares outstanding (including approximately 4.55%
in unvested deferred notional shares from our compensation programs). These figures are based on known shareholding
information from employee participation plans, personal holdings with UBS and selected individual retirement plans. At
the end of 2025, at least 28% of all employees held UBS shares through the firm’s employee share participation plans.
›
Refer to “Note 26 Employee benefits: variable compensation” in the “Consolidated financial statements” section of this report for
more information
Compensation for US financial advisors in Global Wealth Management
In line with market practice for US wealth management businesses, the compensation for US financial advisors in Global
Wealth Management consists of cash compensation, determined using a formulaic approach based on production, and
deferred awards. The compensation approach for US financial advisors is set in the context of local market practice and
is regularly reviewed for competitiveness by the Compensation Committee.
The monthly cash compensation is determined using an overall percentage rate for each financial advisor. It reflects a
percentage of the compensable production that each financial advisor generates during that month. Compensable
production is generally based on transaction revenue and investment advisory fees and may reflect further adjustments.
The percentage rate generally varies based on the level of the production and firm tenure, supporting growth and
alignment with the investment strategy and goals of our clients.
Financial advisors may also be granted deferred awards. These amounts generally vest over a six-year period. The deferred
awards may take into account the overall percentage rate and production, as previously outlined.
Cash compensation and deferred awards may be reduced for, among other things, errors, negligence or carelessness, or
failure to comply with the firm’s rules, standards, practices and / or policies, and / or applicable laws and regulations.
Similar as with our deferred compensation plans, any cash compensation or deferred awards for US financial advisors are
subject to harmful acts provisions.
Financial advisors may also participate in additional programs to support promoting and developing their business or
supporting the transition of client relationships where appropriate.
Advisory vote
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2025 Group performance outcomes
Performance awards granted for the 2025 performance year
The “Variable compensation” table below shows the amount of variable compensation awarded to employees for the
2025 performance year, together with the number of beneficiaries for each type of award granted. In the case of deferred
awards, the final amount paid to an employee depends on performance conditions and consideration of relevant
forfeiture provisions. The deferred share award amount is based on the market value of these awards on the date of
grant.
Variable compensation
Expenses recognized
in the IFRS
Accounting
Standards income
statement
Expenses deferred to
future periods
1
Adjustments
1
Total
Number of beneficiaries
2
USD m, except where indicated
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
Non-deferred cash
Deferred compensation awards
of which: Equity Ownership Plan
3
3
of which: Deferred Contingent Capital Plan
of which: Long-Term Incentive Plan
4
4
of which: Fund Ownership Plan
Variable compensation – performance award pool
Variable compensation – financial advisors
5
Variable compensation – other
6
7
7
Total variable compensation
1 Estimates as of 31 December 2025 and 2024. Actual amounts to be expensed in future periods may vary; e.g. due to forfeiture of awards. 2 Excludes number of beneficiaries who received awards that form part
of Variable compensation – other. 3 Represents estimated post-vesting transfer restriction and permanent forfeiture discounts. 4 Net adjustments for LTIP are negative USD 57m (2024: negative USD 12m) and
include the estimated amounts for (i) the difference of negative USD 130m (2024: negative USD 66m) between the IFRS 2 expense and the communicated value included in the performance award pool, and (ii) the
post-vesting transfer restriction and permanent forfeiture discounts of USD 74m (2024: USD 54m). 5 Financial advisor compensation consists of cash compensation, determined using a formulaic approach based
on production, and deferred awards. It also includes expenses related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements. 6 Includes
severance payments, replacement and retention awards and interest expense related to the Deferred Contingent Capital Plan. 7 Included in expenses deferred to future periods is an amount of USD 156m (2024:
USD 175m) in interest expense related to the Deferred Contingent Capital Plan. As the amount recognized as performance award represents the present value of the award at the date it is granted to the employee,
this amount is excluded.
2025
performance award pool and expenses
The performance award pool, which reflects performance-based variable awards for 2025, was USD 5.1bn, reflecting an
increase of 10% compared with 2024. Performance award expenses for 2025 increased to USD 4.9bn, which reflects
expenses accrued in relation to 2025 performance awards, as well as deferred expenses from prior performance years.
The “Performance award pool and expenses” table below compares the performance award pool with performance
award expenses.
Performance award pool and expenses
USD m, except where indicated
2025
2024
% change
Performance award pool
1
of which: expenses deferred to future periods and adjustments
2,3
Performance award expenses accrued in the performance year
Performance award expenses related to prior performance years
Total performance award expenses recognized for the year
4
1 Excluding employer-paid taxes and social security. 2 Estimate as of the end of the performance year. Actual amounts expensed in future periods may vary, e.g. due to forfeiture of awards. 3 Refer to details in
the preceding "Variable compensation" table for more information. 4 Refer to “Note 26 Employee benefits: variable compensation” in the “Consolidated financial statements” section of this report for more
information
Advisory vote
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Compensation for the Board of Directors
Chairman of the BoD
Under the leadership of the Chairman, Colm Kelleher, the Board of Directors (the BoD) determines, among other things,
the strategy for the Group, based on recommendations by the Group Chief Executive Officer (the Group CEO), exercises
ultimate supervision over management and appoints all Group Executive Board (GEB) members.
The Chairman leads all general meetings and BoD meetings and works with the committee Chairpersons to coordinate
the work of all BoD committees. Together with the Group CEO, the Chairman is responsible for effective communication
with shareholders and stakeholders, including clients, government officials, regulators and public organizations. The
Chairman works closely with the Group CEO and other GEB members, providing advice and support when appropriate,
and continues to strengthen and promote our culture through the three keys to success: our
Pillars, Principles and
Behaviors.
As an independent director, the Chairman’s total compensation for the period from Annual General Meeting (AGM) to
AGM consists of a fixed fee without any variable component, which is delivered 50% in cash and 50% in shares (blocked
for four years). For the current period, from the 2025 AGM to the 2026 AGM, his fixed fee was CHF 5.5m and consisted
of a cash payment of CHF 2.75m and a share component of CHF 2.75m, consisting of 83,525 UBS shares at CHF 32.924
per share. The share component aligns the Chairman’s pay with the Group’s long-term performance. The Chairman does
not receive performance awards, severance payments or pension contributions in addition to his fixed fee, but, given the
full-time nature of his role, he is eligible for employee conditions on UBS products and services.
›
Refer to “Board of Directors” in the “Corporate governance” section of this report for more information about the responsibilities
of the Chairman
Vice Chairman of the BoD
As the Vice Chairman of the BoD, Lukas Gähwiler leads the BoD in the absence of the Chairman and, together with the
Senior Independent Director, he also supports the Chairman in all aspects of corporate governance and oversight across
the Group. In particular, he represents UBS across a broad range of associations and industry bodies in Switzerland.
The Vice Chairman’s total compensation for his services in the UBS Group AG Board for the period from AGM to AGM
consists of a fixed fee without any variable component, which is delivered 50% in cash and 50% in shares (blocked for
four years). For the current period, from the 2025 AGM to the 2026 AGM, his fixed fee was CHF 1.5m, excluding benefits
and pension fund contributions. The fixed fee consisted of a cash payment of CHF 0.75m and a share component of
CHF 0.75m, consisting of 22,779 UBS shares at CHF 32.924 per share.
As a non-independent director, Mr. Gähwiler is entitled to pension fund contributions and benefits. Including these, his
total reward for his service as Vice Chairman for the current period was CHF 1,937,864.
The Vice Chairman is not eligible for performance awards, severance terms or supplementary contributions to pension
plans. The pension contributions and benefits for the Vice Chairman, in his capacity as non-independent director, are
consistent with all UBS employees and aligned with local market practice.
In 2025, the BoD announced that Lukas Gähwiler would not stand for re-election at the forthcoming AGM and that
Markus Ronner would be nominated as a new member of the BoD. After his election, he would assume the role of the
Vice Chairman. The fixed fee for the Vice Chairman role will remain unchanged, at CHF 1.5m for the period from the
2026 AGM to the 2027 AGM and continue to be delivered 50% in cash and 50% in shares (blocked for four years).
›
Refer to “Board of Directors” in the “Corporate governance” section of this report for more information about the responsibilities
of the Vice Chairman
›
Refer to the “Say-on-pay” section of this report for more information about compensation-related proposals at the 2026 AGM
Advisory vote
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Other BoD members
Other BoD members receive fixed fees for their services on the BoD and its committees. The fee structure remains
unchanged compared with the last AGM-to-AGM period. BoD members do not receive performance awards, severance
payments, benefits or pension contributions (the benefit eligibility of the Chairman and that of the Vice Chairman are
described above).
BoD members other than the Chairman and the Vice Chairman receive at minimum 50% of their fees in UBS shares,
which are blocked for four years, and they may elect to receive up to 100% of their fees in blocked UBS shares. The
number of shares is calculated based on the average closing price of the 10 trading days leading up to and including the
grant date.
Since 2023, in order to facilitate the integration of Credit Suisse into UBS, a number of independent BoD members have
served on the boards of directors of significant subsidiary entities. UBS Group AG Board members who have additional
roles on the boards of significant subsidiary entities receive respective fees for the significant increase in the scope,
responsibility and complexity of their mandates. These fees are aligned with other non-executive directors of the
respective subsidiary entities. The total remuneration of other UBS Group AG members, including fees from subsidiaries,
is summarized in the “Remuneration details and additional information for BoD members” table below.
At each AGM, shareholders are invited to approve the aggregate amount of BoD remuneration, including the
compensation for the Chairman and Vice Chairman, which applies until the next AGM. The chart and the tables below
provide details on the fee structure for the BoD members.
Approval governance for BoD compensation
The Chairperson of the Compensation Committee proposes and the Compensation Committee approves the
compensation of the Chairman and that of the Vice Chairman annually for the upcoming AGM-to-AGM period, taking
into consideration fee or compensation levels for comparable roles based on our core financial industry peers and other
relevant leading Swiss companies included in the Swiss Market Index.
The fee structure for the other BoD members is reviewed annually based on the Chairman’s proposal to the Compensation
Committee, which in turn submits a proposal to the BoD for approval. In our regular review of the BoD fee structure, we
concluded that our overall approach for BoD member compensation remains appropriate and therefore unchanged.
›
Refer to “Compensation Governance” in the “Compensation philosophy and governance” section of this report for more
information about the remuneration responsibilities of the BoD and Compensation Committee
Advisory vote
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Audited |
Remuneration details and additional information for BoD members
Period 2025 AGM to 2026 AGM
CHF, except where indicated
Name, function
1
Audit Committee
Compensation Committee
Corporate Culture and
Responsibility Committee
Governance and Nominating
Committee
Risk Committee
Base fee
Committee
fee(s)
Additional
payments
2
Benefits
3
Total
4
Share
percentage
5
Number of
shares
6,7
Subsidiary
entity board
fees
Total
including
subsidiary
fees
Colm Kelleher, Chairman
8
C
C
Lukas Gähwiler, Vice
Chairman
8
M
M
Jeremy Anderson, Senior
Independent Director
C
M
William C. Dudley, member
M
M
Patrick Firmenich, member
M
M
Fred Hu, member
M
Mark Hughes, member
M
C
Renata Jungo Brüngger,
member
M
Gail Kelly, member
M
M
Julie G. Richardson, member
C
M
Lila Tretikov, member
M
Jeanette Wong, member
M
M
Aggregate of all BoD members 2025/2026
Aggregate of all BoD members 2025/2026 in USD (for reference)
9
Period 2024 AGM to 2025 AGM
CHF, except where indicated
Name, function
1
Audit Committee
Compensation Committee
Corporate Culture and
Responsibility Committee
Governance and
Nominating Committee
Risk Committee
Base fee
Committee
fee(s)
Additional
payments
2
Benefits
3
Total
4
Share
percentage
5
Number of
shares
6,7
Subsidiary
entity board
fees
Total
including
subsidiary
fees
Colm Kelleher, Chairman
8
C
C
Lukas Gähwiler, Vice
Chairman
8
M
M
Jeremy Anderson, Senior
Independent Director
C
M
Claudia Böckstiegel, member
M
William C. Dudley, member
M
M
Patrick Firmenich, member
M
M
Fred Hu, member
M
M
Mark Hughes, member
M
C
Gail Kelly, member
M
Nathalie Rachou, member
M
M
Julie G. Richardson, member
C
M
Jeanette Wong, member
M
M
Aggregate of all BoD members 2024/2025
Legend: C = Chairperson of the respective Committee, M = Member of the respective Committee
1 Twelve BoD members were in office on 31 December 2025 and on 31 December 2024. 2 These payments are associated with the Senior Independent Director role. 3 For the period from the 2025 AGM to the
2026 AGM, benefits amount is an estimate. For the Vi ce Chairman, the benefits include the portion related to UBS’s contribution to the statutory pension scheme. 4 Excludes UBS’s portion related to the legally
required social security contributions, which for the period from the 2025 AGM to the 2026 AGM (including the Chairman, Vice Chairman and UBS Group AG members with a role in subsidiaries) is estimated at grant
at CHF 650,000 and which for the period from the 2024 AGM to the 2025 AGM was estimated at grant at CHF 753,000. The legally required social security contributions paid by the independent BoD members are
included in the amounts shown in this table, as appropriate. 5 For the Chairman and Vice Chairman, fees are paid 50% in cash and 50% in blocked UBS shares. Other BoD members must use a minimum of 50% of
their fees to purchase UBS shares, which are blocked for four years. 6 For 2025, UBS shares were valued at CHF 32.924 (average closing price of UBS shares over the last 10 trading days leading up to and including
the grant date). For 2024, UBS shares were valued at CHF 30.328 (average closing price of UBS shares over the last 10 trading days leading up to and including the grant date). These shares are blocked for four years.
7 Number of shares is reduced in case of the 100% election to deduct legally required contributions. All remuneration payments are, where applicable, subject to social security contributions and / or withholding tax.
8 The Chairman and the Vice Chairman do not receive committee fees in addition to their annual fixed fee. 9 Swiss franc amounts have been translated into US dollars for reference at the 2025 performance award
currency exchange rate of CHF / USD 1.207244.
Advisory vote
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Supplemental information
Fixed and variable compensation for GEB members
Fixed and variable compensation for GEB members
1,2,3
Total for 2025
Not deferred
Deferred
4
Total for 2024
CHF m, except where indicated
Amount
%
Amount
%
Amount
%
Amount
Total compensation
Amount
5
Number of beneficiaries
Fixed compensation
5,6
Cash-based
Equity-based
Variable compensation
Cash
7
Long-Term Incentive Plan (LTIP)
8
Deferred Contingent Capital Plan (DCCP)
8
1 The figures include all GEB members in office during the respective years. 2 Includes compensation paid under the employment contract during the notice period for GEB members who stepped down during the
respective years. 3 Includes compensation for newly appointed GEB members for their time in office as a GEB member during the respective years. 4 Based on the specific plan vesting and reflecting the total
award value at grant, which may differ from the expense recognized in the income statement in accordance with IFRS Accounting Standards. 5 Excludes benefits and employer’s contributions to retirement benefit
plans. Includes social security contributions paid by GEB members but excludes the portion related to the legally required social security contributions paid by UBS. 6 Includes base salary and role-based allowances,
rounded to the nearest million. 7 Includes allocation of vested but blocked shares, in line with the remuneration section of the UK Prudential Regulation Authority Rulebook. 8 For the GEB members who are also
EU MRTs, the awards do not include dividend and interest payments. Accordingly, the amounts reflect for the LTIP the fair value of the non-dividend-bearing awards and for the DCCP the fair value of the granted
non-interest-bearing awards.
Regulated staff
Key Risk Takers
Key Risk Takers (KRTs) are defined as those employees that, by the nature of their roles, have been determined to materially
set, commit or control significant amounts of the firm’s resources and / or exert significant influence over its risk profile.
This includes employees working in front-office roles, logistics and control functions. Identifying KRTs globally is part of
our risk control framework and an important element in ensuring we incentivize only appropriate risk-taking. For 2025,
in addition to GEB members, 755 employees were classified as KRTs throughout the UBS Group globally.
In line with regulatory requirements, the performance of employees identified as KRTs during the performance year is
evaluated by the control functions. In addition, KRTs’ performance awards are subject to a mandatory deferral rate of at
least 50%, regardless of whether the deferral threshold has been met (excluding KRTs with de minimis performance
awards below a predetermined threshold where standard deferral rates apply). Consistent with all other employees, the
deferred portion of a KRT’s compensation is also subject to forfeiture or reduction if the KRT commits harmful acts.
Fixed and variable compensation for Key Risk Takers
1
Total for 2025
Not deferred
Deferred
2
Total for 2024
3
USD m, except where indicated
Amount
%
Amount
%
Amount
%
Amount
Total compensation
Amount
Number of beneficiaries
Fixed compensation
3,4
Cash-based
Equity-based
Variable compensation
Cash
5
Long-Term Incentive Plan (LTIP) / Equity Ownership
Plan (EOP) / Fund Ownership Plan (FOP)
6
Deferred Contingent Capital Plan (DCCP)
6
1 Excludes payments made to individuals related to their time as a GEB member. Prior-period information has been adjusted to exclude employees with a total compensation exceeding USD / CHF 2.5m who were not
otherwise identified as KRTs. 2 Based on the specific plan vesting and reflecting the total value at grant, which may differ from the expense recognized in the income statement in accordance with IFRS Accounting
Standards. 3 Excludes benefits and employer’s contributions to retirement benefits plan. Includes social security contributions paid by KRTs but excludes the legally required social security contributions paid by UBS.
4 Includes base salary and role-based allowances. 5 Includes allocation of vested but blocked shares, in line with regulatory requirements where applicable. 6 KRTs who are also EU MRTs do not receive dividend
and interest payments.
Advisory vote
|
Deferred compensation of the GEB and KRTs
The table below shows the current economic value of unvested outstanding deferred variable compensation awards
subject to ex post adjustments. For share-based plans, the economic value is determined based on the closing share price
on 31 December 2025. For notional funds, it is determined using the latest available market price for the underlying
funds at the end of 2025, and for deferred cash plans, it is determined based on the outstanding amount of cash owed
to award recipients.
Deferred compensation of the GEB and KRTs
1,2,3
USD m, except where indicated
Relating to awards
for 2025
4
Relating to
awards for prior
years
5
Total
of which: exposed to
ex post explicit and /
or implicit adjustments
Total deferred
compensation
year-end 2024
Total amount of
deferred compensation
distributed in 2025
6
GEB
Deferred Contingent Capital Plan
Equity Ownership Plan (including notional funds
and Credit Suisse legacy plans)
Long-Term Incentive Plan
KRTs
Deferred Contingent Capital Plan
Equity Ownership Plan (including notional funds)
Long-Term Incentive Plan
Credit Suisse legacy plans
Total GEB and KRTs
1 Based on the specific plan vesting and reflecting the economic value of the outstanding awards, which may differ from the expense recognized in the income statement in accordance with IFRS. Year -to-year
reconciliations would also need to consider the impacts of additional items including off-cycle awards, FX movements, population changes and dividend equivalent reinvestments. Prior period information has been
adjusted to exclude employees with a total compensation exceeding USD / CHF 2.5m who were not otherwise identified as KRTs. 2 Refer to “Note 26 Employee benefits: variable compensation” in the “Consolidated
financial statements” section of this report for more information. 3 GEB members and KRTs who are also EU MRTs do not receive dividend and interest payments. 4 Where applicable, amounts are translated into
US dollars at the performance award currency exchange rate. LTIP values reflect the communicated value awarded at grant. 5 Takes into account the ex post implicit adjustments, given the share price movements
since grant. Where applicable, amounts are translated from award currency into US dollars using FX rates as of 31 December 2025. LTIP values reflect the fair value awarded at grant or communicated value as
applicable. 6 Valued at distribution price and FX rate for all awards distributed in 2025 (this excludes interests on DCCP).
The table below shows the value of actual ex post explicit and implicit adjustments to outstanding deferred compensation
in the 2025 financial year for GEB members and KRTs.
Ex post adjustments occur after an award has been granted. Explicit adjustments occur when we adjust compensation
by forfeiting deferred awards. Implicit adjustments are unrelated to any action taken by the firm and occur as a result of
price movements that affect the value of an award.
GEB and KRTs ex post explicit and implicit adjustments to deferred compensation
Ex post explicit adjustments
to unvested awards
1
Ex post implicit adjustments
to unvested awards
2
USD m
31.12.25
31.12.24
31.12.25
31.12.24
GEB
Deferred Contingent Capital Plan
Equity Ownership Plan (including notional funds and Credit Suisse legacy
plans, if applicable)
Long-Term Incentive Plan
KRTs
3
Deferred Contingent Capital Plan
Equity Ownership Plan (including notional funds)
Long-Term Incentive Plan
Credit Suisse legacy plans
Total GEB and KRTs
1 For notional share awards, ex post explicit adjustments are calculated as units forfeited during the year, valued at the share price on 31 December 2025 (USD 46.31) for 2025 (which may differ from the expense
recognized in the income statement in accordance with IFRS). The 2024 data is valued using the share price on 31 December 2024 (USD 30.32). For LTIP, the forfeited units reflect the fair value awarded at grant. For
the notional funds awarded to Asset Management employees under the AM EOP/FOP in 2025 and 2024, and CS Legacy notional funds for 2025, this represents the fair value at the time of the employee forfeiture.
For DCCP, the fair value at grant of the forfeited awards during the year is reflected. All values shown exclude DCCP interest. 2 Ex post implicit adjustments for UBS shares are calculated based on the difference
between the weighted average grant date fair value and the share price at year-end. The amount for UBS and CS legacy notional funds is calculated using the mark-to-market change during 2025 and 2024. 3 Prior
period information has been adjusted to exclude employees with a total compensation exceeding USD / CHF 2.5m who were not otherwise identified as KRTs.
Advisory vote
|
UK Material Risk Takers and the UK Senior Managers and Certification Regime
For relevant UK-regulated entities, we identify individuals who are deemed to be Material Risk Takers (UK MRTs) based
on sectorial and / or local regulatory requirements, including equivalent UK requirements, as applicable. This group
consists of senior management, risk takers, selected staff in control or support functions and certain highly compensated
employees. In addition, the Senior Managers and Certification Regime (the SMCR) of the UK Prudential Regulation
Authority (the PRA) and Financial Conduct Authority (the FCA) requires that individuals with specified responsibilities,
performing certain significant functions and / or those in certain other identified categories be designated as Senior
Management Functions (UK SMFs). For 2025, UBS identified 772 UK MRTs and SMFs in relation to its relevant UK entities.
For UK-regulated MRTs and SMFs, UBS applies the requirements set by the PRA and the FCA under the reformed UK
remuneration rules, and where relevant, the FCA’s Investment Firms Prudential Regime (MIFIDPRU) Remuneration Code,
ensuring compliance with the relevant regulatory standards governing variable compensation structures, deferral
arrangements and the use of share-based instruments.
Additionally, UK MRTs and UK SMFs are subject to a maximum ratio between fixed and variable pay, which was set by
UBS taking into account the business activities and prudential and conduct risks of the relevant legal entities. In addition,
the maximum ratios were set considering the scenario that the relevant legal entities might exceed their financial
objectives, and to align with the ratios applicable for GEB members on a communicated value basis.
The maximum ratio for all UK-regulated MRTs and SMFs was approved by the compensation committees of the relevant
entities.
Performance awards granted to UK MRTs and UK SMFs are subject to clawback provisions, which allow the firm to claim
repayment of both the upfront and the vested deferred element of any performance award if an individual is found to
have contributed substantially to significant financial losses for the Group or corporate structure in scope, a material
downward restatement of disclosed results, or engaged in misconduct and / or failed to take expected actions, thus
contributing to significant reputational harm.
Long-Term Incentive Plan (LTIP) awards granted to UK MRTs and UK SMFs are subject to an additional non-financial
conduct-related metric as required by UK regulation.
EU Material Risk Takers
For relevant EU-regulated entities, we identify individuals who are deemed to be Material Risk Takers (EU MRTs) based on
sectorial and / or local regulatory requirements, including the respective EU Commission Delegated Regulation and the
fifth iteration of the EU Capital Requirements Directive (CRD V), the Undertakings for Collective Investment in Transferable
Securities Directive (UCITS V) and the Alternative Investment Fund Managers Directive (the AIFMD), as applicable. This
group consists of senior management, risk takers, selected staff in control or support functions and certain highly
compensated employees. For 2025, UBS identified 262 EU MRTs in relation to its relevant EU entities.
Subject to individual or legal-entity level proportionality considerations, variable compensation awarded to EU-regulated
MRTs is subject to additional deferral and other requirements under Art. 94 of the Capital Requirements Directive, UCITS
V and the AIFMD, as further in the applicable European Securities and Markets Authority (ESMA) remuneration guidelines.
Additionally, where applicable, EU MRTs are subject to a maximum ratio between fixed and variable pay. Across EU
locations, the maximum variable to fixed compensation ratio for EU-regulated MRTs is set to 200%, based on approval
through relevant shareholder votes.
Australian Material Risk Takers
For UBS AG, Australia Branch, we identified individuals who are Australian Material Risk Takers (AUSMRTs ) under the
Australian Prudential Regulation Authority Prudential Standard CPS 511 requirements. The Prudential Standard outlines
that AUSMRTs are individuals whose professional activities have a material potential impact on the entity’s risk profile,
performance and long-term soundness. Variable compensation for these individuals is subject to additional deferral and
other requirements under Prudential Standard CPS 511 and harmful acts provisions.
Control functions and Group Internal Audit
Our control functions must be independent in order to monitor risk effectively. Therefore, their compensation is
determined separately from the revenue areas that they oversee, supervise or monitor. Their performance award pool is
based not on the performance of these businesses, but on the performance of the Group as a whole. We also consider
other factors, such as how effectively the function has performed and our market position. Decisions on individual
compensation for the senior managers of the control functions are made by the function heads and approved by the
Group CEO. Decisions on individual compensation for the members of Group Internal Audit (GIA) are made by the Head
GIA and approved by the Chairman. Following a proposal by the Chairman, total compensation for the Head GIA is
approved by the Compensation Committee.
Advisory vote
|
2025 Group personnel expenses
The number of internal personnel employed as of 31 December 2025 decreased by 5,471 to 103,177 (full-time
equivalents) compared with 31 December 2024.
The table below shows our total personnel expenses for 2025, including salaries, pension expenses, social security
contributions, variable compensation and other personnel costs. Variable compensation includes cash performance
awards paid in 2026 for the 2025 performance year, amortization of unvested deferred awards granted in previous years
and the cost of deferred awards granted to employees that are eligible for retirement in the context of the compensation
framework at the date of grant.
The performance award pool reflects the value of performance awards granted relating to the 2025 performance year,
including awards that are paid out immediately and those that are deferred. To determine our variable compensation
expenses, the following adjustments are required in order to reconcile the performance award pool to the expenses
recognized in the Group’s financial statements prepared in accordance with IFRS Accounting Standards:
–
a reduction for expenses deferred to future periods (amortization of unvested awards granted in 2026 for the 2025
performance year) and accounting adjustments; and
–
an addition for the 2025 amortization of unvested deferred awards granted in prior years.
As a large part of compensation consists of deferred awards, the amortization of unvested deferred awards granted for
prior years forms a significant part of the IFRS Accounting Standards expenses in both 2025 and 2026. The expenses
related to prior performance years and total expenses recognized in 2025 include deferred compensation granted under
Credit Suisse Group compensation plans in previous years, which have been expensed from 2023 onward due to the
integration of Credit Suisse into UBS.
›
Refer to “Note 6 Personnel expenses” and “Note 26 Employee benefits: variable compensation” in the “Consolidated financial
statements” section of this report for more information
Personnel expenses
Expenses recognized in the IFRS Accounting Standards income statement
USD m
Related to the 2025
performance year
Related to prior
performance years
Total expenses
recognized in
2025
Total expenses
recognized in
2024
Total expenses
recognized in
2023
Salaries
1
Non-deferred cash
Deferred compensation awards
of which: Equity Ownership Plan
of which: Deferred Contingent Capital Plan
of which: Long-Term Incentive Plan
of which: Fund Ownership Plan
Variable compensation – performance awards
Variable compensation – financial advisors
2
Variable compensation – other
3
Total variable compensation
4
Contractors
Social security
Post-employment benefit plans
5
Other personnel expenses
Total personnel expenses
1 Includes role-based allowances. 2 Financial advisor compensation consists of cash compensation, determined using a formulaic approach based on production, and deferred awards. It also includes expenses
related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements. 3 Includes severance payments, replacement and retention awards,
existing deferred awards granted to Credit Suisse employees, interest expense related to the Deferred Contingent Capital Plan and forfeiture credits. 4 Refer to “Note 26 Employee benefits: variable compensation”
in the “Consolidated financial statements” section of this report for more information. 5 Refer to “Note 25 Post-employment benefit plans” in the “Consolidated financial statements” section of this report for more
information.
Advisory vote
|
Deferred compensation
Vesting of outstanding awards granted in prior years subject to performance metrics and thresholds
The tables below show the extent to which the performance metrics and thresholds for awards granted in prior years
have been met and the related vesting in 2026.
Long-Term Incentive Plan (LTIP) 2019 (performance period 2020–2022)
Performance metrics
Performance achievement
1
Vesting
Return on common equity tier 1 capital
(RoCET1) and relative Total Shareholder
Return (rTSR)
The overall achievement level is 98.0% of
the maximum opportunity (of up to
100%), based on outcomes for rTSR
(weighted 50%) and RoCET1 (weighted
50%).
–
For GEB, the first, second and third installments vested in 2023,
2024 and 2025, respectively.
–
As outlined in our 2019 Compensation Report, up to CHF 7.3m,
or 30%, of the 2019 LTIP awards at grant for GEB members active
in March 2017 was at risk and directly linked to the final
resolution of the French cross-border matter. Following its
resolution and considering the final financial impact, the
Compensation Committee applied a fact-based reduction to the
final value of the award of 10% of the shares at risk.
–
For other selected senior management, the full award vested in
2023.
1
maximum number of shares was determined by dividing the awarded amount by the fair value of the award at the date of grant, divided by CHF 12.919 or USD 13.141, the average closing price of UBS shares over
the last ten trading days leading up to and including the grant date.
Long-Term Incentive Plan (LTIP) 2020 (performance period 2021–2023)
Performance metrics
Performance achievement
1
Vesting
Return on common equity tier 1 capital
(RoCET1) and relative Total Shareholder
Return (rTSR)
The overall achievement level is 92.55%
of the maximum opportunity (of up to
100%), based on outcomes for rTSR
(weighted 50%) and RoCET1 (weighted
50%).
–
For GEB, the first, second and third installments vested in 2024,
2025 and 2026, respectively.
–
For other selected senior management, the full award vested in
2024.
1
As disclosed in our Compensation Report 2020, LTIP awards for the 2020 performance year were awarded at a value of 65.90% of maximum, which reflected our best estimate of the fair value of the award. The
maximum number of shares was determined by dividing the awarded amount by the fair value of the award at the date of grant, divided by CHF 13.81 or USD 15.411, the average closing price of UBS shares over
the last ten trading days leading up to and including the grant date.
Long-Term Incentive Plan (LTIP) 2021 (performance period 2022–2024)
Performance metrics
Performance achievement
1
Vesting
Return on common equity tier 1 capital
(RoCET1) and relative Total Shareholder
Return (rTSR)
The overall achievement level is 93.33%
of the maximum opportunity (of up to
100%), based on outcomes for rTSR
(weighted 50%) and RoCET1 (weighted
50%).
–
For GEB, the first installments vested in 2025 and the second will
vest in 2026. The remaining third tranche will vest in 2027
accordingly.
–
For other selected senior management, the full award vested in
2025.
1
As disclosed in our Compensation Report 2021, LTIP awards for the 2021 performance year were awarded at a value of 67.7% of maximum, which reflected our best estimate of the fair value of the award. The
maximum number of shares was determined by dividing the awarded amount by the fair value of the award at the date of grant, divided by CHF 19.194 or USD 20.700, the average closing price of UBS shares over
the last ten trading days leading up to and including the grant date.
Long-Term Incentive Plan (LTIP) 2022 (performance period 2023–2025)
Performance metrics
Performance achievement
1
Vesting
Return on common equity tier 1 capital
(RoCET1) and relative Total Shareholder
Return (rTSR)
The overall achievement level is 71.56%
of the maximum opportunity (of up to
100%), based on outcomes for rTSR
(weighted 50%) and RoCET1 (weighted
50%).
–
For GEB, the first installment will vest in 2026 and the remaining
tranches will vest in 2027 and 2028 accordingly.
–
For other selected senior management, the full award vests in
2026.
1
As disclosed in our Compensation Report 2022, LTIP awards for the 2022 performance year were awarded at a value of 71.45% of maximum, which reflected our best estimate of the fair value of the award. The
maximum number of shares was determined by dividing the awarded amount by the fair value of the award at the date of grant, divided by CHF 20.092 or USD 21.790, the average closing price of UBS shares over
the last ten trading days leading up to and including the grant date.
›
Refer to “Performance achievement of the 2022 LTIP granted in 2023” in the “Group compensation” section of this report for more
information
Advisory vote
|
The below EOP and DCCP thresholds have been set to support the sustainability of the organization and represent
minimum performance levels to retain the awards.
Equity Ownership Plan (EOP) 2020 / 2021, EOP 2021 / 2022
Thresholds
Threshold achievement
1
Vesting
EOP 2020 / 2021 and EOP 2021 / 2022:
Return on common equity tier 1 capital
(RoCET1)
The Group thresholds have been satisfied.
The following installments vest in full:
–
for EOP 2020 / 2021, the third and final installment for employees
with extended vesting periods (e.g. as required by applicable
regulators) covered under the plan; and
–
for EOP 2021 / 2022, the second installment for employees with
extended vesting periods (e.g. as required by applicable
regulators) covered under the plan.
1
Deferred Contingent Capital Plan (DCCP) 2020 / 2021
Thresholds
Threshold achievement
1
Vesting
2
Common equity tier 1 (CET1) capital ratio,
viability event and, additionally for GEB,
Group profit before tax
The thresholds have been satisfied.
–
DCCP 2020 / 2021 vests in full.
1
2
Outstanding Credit Suisse Group awards granted in prior years subject to performance conditions
The tables below show the extent to which the performance metrics and thresholds for awards granted by the Credit
Suisse Group in prior years have been met and the related impact of the 2025 results.
As a result of the acquisition by UBS Group AG of Credit Suisse Group AG in 2023, many of the financial measurements
applicable to legacy Credit Suisse Group awards are no longer available or are not fully comparable to previous
performance periods, therefore revised metrics have been adopted as disclosed in the Compensation Report 2023.
Performance Share Awards (PSA) 2018/2019, 2019/2020, 2020/2021, 2021/2022
Threshold
Threshold achievement
1
Vesting
2
Negative adjustment if reported UBS Group AG
return on CET1 capital (RoCET1) is negative
The amended threshold has been satisfied.
–
No negative adjustment applied in respect of
PSAs outstanding on 31 December 2025. The
respective installments will vest in 2026.
1
Performance may be adjusted for disclosed items generally not representative of underlying business performance.
2
Takers (MRTs), are subject to extended vesting periods.
Transformation Awards share component 2022/23
Thresholds
Threshold achievement
Vesting
Underlying UBS Group AG RoCET1 of 8%
minimum (FY 2025)
UBS Group AG share price of CHF 85.87 (on
31 December 2025)
The underlying RoCET1 threshold has been
satisfied; however, the share price threshold has
not been achieved.
–
The Transformation Awards are fully forfeited.
Advisory vote
|
Audited |
Share ownership / entitlements of GEB members
1
Name, function
on
31 December
Number of
unvested
shares / at
risk
2
Number of
vested shares
Total number
of shares
Potentially
conferred
voting
rights in %
Sergio P. Ermotti, Group Chief Executive Officer
2025
2024
George Athanasopoulos, Co-President Investment Bank
2025
2024
Michelle Bereaux, Group Integration Officer
2025
2024
Mike Dargan, Group Chief Operations and Technology Officer
2025
2024
Aleksandar Ivanovic, President Asset Management
2025
2024
Robert Karofsky, President UBS Americas and Co-President Global Wealth Management
2025
2024
Sabine Keller-Busse, President Personal & Corporate Banking and President UBS Switzerland
2025
2024
Iqbal Khan, Co-President Global Wealth Management and President UBS Asia Pacific
2025
2024
Barbara Levi, Group General Counsel
2025
2024
Beatriz Martin Jimenez, Head Non-core and Legacy and President UBS EMEA
2025
2024
Markus Ronner, Group Chief Compliance and Governance Officer
2025
2024
Stefan Seiler, Head Group Human Resources & Corporate Services
2025
2024
Todd Tuckner, Group Chief Financial Officer
2025
2024
Marco Valla, Co-President Investment Bank
2025
2024
Damian Vogel, Group Chief Risk Officer
2025
2024
Total
2025
2024
1 Includes all vested and unvested shares of GEB members, including those held by related parties. No options were held in 2025 and 2024 by any GEB member or any of its related parties. Refer to “Note 26 Employee
benefits: variable compensation” in the “Consolidated financial statements” section of this report for more information. 2 Includes shares granted under variable compensation plans with forfeiture provisions. For
the 2019/20, 2020/21, 2021/22 and 2022/23 LTIP awards, the values reflect the final value. For all other LTIP awards, the values reflect the fair value awarded at grant. The actual number of shares vesting in the
future will be calculated under the terms of the plans. Refer to the “Group compensation” section of this report for more information about the plans.
Audited |
Total of all vested and unvested shares of GEB members
1,2
Total
of which: vested
of which: vesting
2026
2027
2028
2029
2030
2031
Shares on 31 December 2025
2025
2026
2027
2028
2029
2030
Shares on 31 December 2024
1 Includes shares held by related parties. 2 Includes shares granted under variable compensation plans with forfeiture provisions. The actual number of shares vesting in the future will be calculated under the terms
of the plans. Refer to the “Group compensation” section of this report for more information.
Advisory vote
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Audited |
Number of shares of BoD members
1
Name, function
on 31 December
Number of shares held
Voting rights in %
Colm Kelleher, Chairman
2025
2024
Lukas Gähwiler, Vice Chairman
2025
2024
Jeremy Anderson, Senior Independent Director
2025
2024
William C. Dudley, member
2025
2024
Patrick Firmenich, member
2025
2024
Fred Hu, member
2025
2024
Mark Hughes, member
2025
2024
Gail Kelly, member
2025
2024
Renata Jungo Brüngger, member
2025
2024
–
Julie G. Richardson, member
2025
2024
Lila Tretikov, member
2025
2024
–
Jeanette Wong, member
2025
2024
Total
2025
2024
1 Includes blocked and unblocked shares held by BoD members, including those held by related parties. No options were granted in 2025 and 2024.
Audited |
Total of all blocked and unblocked shares of BoD members
1
Total
of which:
unblocked
of which: blocked until
2026
2027
2028
2029
Shares on 31 December 2025
2025
2026
2027
2028
Shares on 31 December 2024
1 Includes shares held by related parties.
Audited |
Loans granted to GEB members
Pursuant to article 38 of the Articles of Association of UBS Group AG (the AoA), GEB members may be granted loans.
Such loans are made in the ordinary course of business on substantially the same terms as those granted to other
employees, including interest rates and collateral, and neither involve more than the normal risk of collectability nor
contain any other unfavorable features for the firm. The total amount of such loans must not exceed CHF 20m per GEB
member.
Loans granted to GEB members
CHF, except where indicated
1
USD
(for reference)
Name, function
on 31 December
Loans
2,3,4
Loans
2,3,4
Mike Dargan, Group Chief Operations and Technology Officer (highest loan in 2025)
2025
Mike Dargan, Group Chief Operations and Technology Officer (highest loan in 2024)
2024
Aggregate of all GEB members
2025
2024
1 Swiss franc and US dollar amounts disclosed represent local currency amounts translated at the relevant year-end closing exchange rate. 2 All loans granted are secured loans. 3 No unused uncommitted credit
facilities in 2025 and 2024. 4 No loans have been granted to related parties of the GEB members at conditions not customary in the market.
Advisory vote
|
Audited |
Loans granted to BoD members
Pursuant to article 33 of the AoA, loans to independent BoD members are made in the ordinary course of business at
general market conditions. The Vice Chairman, given the full-time nature of his role, may be granted loans in the ordinary
course of business on substantially the same terms as those granted to employees, including interest rates and collateral.
Such loans neither involve more than the normal risk of collectability nor contain any other unfavorable features for the
firm. The total amount of such loans must not exceed CHF 20m per BoD member.
Loans granted to BoD members
CHF, except where indicated
1
USD
(for reference)
on 31 December
Loans
2,3,4
Loans
2,3,4
Aggregate of all BoD members
2025
2024
1 Swiss franc and US dollar amounts disclosed represent local currency amounts translated at the relevant year-end closing exchange rate. 2 All loans granted are secured loans. 3 CHF 2,377,500 (USD 2,618,108)
for Claudia Böckstiegel (independent BoD member) in 2024. 4 No loans have been granted to related parties of the BoD members at conditions not customary in the market.
Audited |
Compensation paid to former BoD and GEB members
1
The compensation and benefits in the table below relate to payments made to former BoD and GEB members.
Variable compensation paid to GEB members who stepped down during the respective years is included in the GEB
performance award pool (see table “Total compensation for GEB members“).
CHF, except where indicated
2,3
USD
(for reference)
2
For the year
Compensation
Benefits
Total
Total
Former BoD members
2025
2024
Aggregate of all former GEB members
4
2025
2024
Aggregate of all former BoD and GEB members
2025
2024
1 Compensation or remuneration that is related to the former members’ activity on the BoD or GEB or that is not at market conditions. 2 Swiss franc and US dollar amounts disclosed represent local currency amounts
translated at the relevant year-end closing exchange rate. 3 Includes benefit payments in 2025 for one former GEB members and in 2024 to four former GEB members. 4 Excludes the portion related to the legally
required employer’s social security contributions for 2025 and 2024; however, the legally required employees’ social security contributions are included in the amounts shown in the table above, as appropriat e.
Advisory vote
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GEB and BoD member mandates outside the Group
In line with the Swiss Code of Obligations, we disclose the mandates of GEB and BoD members outside of the Group in
the tables below. Further information on background and biographies, including mandates in UBS entities, are available
in the “Corporate governance” section of this report.
Audited |
BoD member mandates outside the Group
Name, function
Company boards /
other activities
Mandates
Colm Kelleher,
Chairman
Other activities and
functions
–
Member of the Board of Directors of the Bretton Woods Committee
–
Member of the Board of the Swiss Finance Council
–
Member of the Board of the International Monetary Conference
–
Member of the Board of the Bank Policy Institute
–
Member of the Board of Americans for Oxford
–
Visiting Professor of Banking and Finance, Loughborough Business School
–
Member of the European Financial Services Round Table
–
Member of the European Banking Group
–
Member of the International Advisory Council of the China Securities Regulatory Commission
–
Member of the Chief Executive’s Advisory Council (Hong Kong)
Lukas Gähwiler, Vice
Chairman
Non-listed
–
Vice Chairman of the Board of Directors of Pilatus Aircraft Ltd
–
Member of the Board of Directors of Ringier AG
Other activities and
functions
–
Member of the Board and Board Committee of economiesuisse
–
Chairman of the Employers Association of Banks in Switzerland
–
Member of the Board of Directors of the Swiss Employers Association
–
Member of the Board of Directors and the Board of Directors Committee of the Swiss Bankers Association
–
Member of the Board of the Swiss Finance Council
–
Member of the Board of Trustees of Avenir Suisse
Jeremy Anderson,
Senior Independent
Director
Listed
–
Member of the Board of Prudential plc (chair of the risk committee)
Non-listed
–
Chairman of Lamb’s Passage Holding Ltd
Other activities and
functions
–
Trustee of the UK’s Productivity Leadership Group
William C. Dudley,
member
Listed
–
Member of the Global Advisory Council of Coinbase
1
Non-listed
–
Member of the Advisory Board of Suade Labs
Other activities and
functions
–
Senior Advisor to the Griswold Center for Economic Policy Studies, Princeton University
–
Member of the Group of Thirty
–
Member of the Council on Foreign Relations
–
Chairman of the Bretton Woods Committee Board of Directors
–
Member of the Board of the Council for Economic Education
Patrick Firmenich,
member
Listed
–
Vice Chairman of the Board of dsm–firmenich (chair of the governance and nomination committee)
Other activities and
functions
–
Member of the Advisory Council of the Swiss Board Institute
Fred Hu, member
Listed
–
Non-executive Chairman of the Board of Yum China Holdings (chair of the nomination and governance
committee)
–
Member of the Board of Chubb Limited
1
Non-listed
–
Chairman of Primavera Capital Ltd
Other activities and
functions
–
Trustee of the China Medical Board
–
Member of the Global Board of The Nature Conservancy and Co-Chairman of its Asia Pacific Council
–
Member of the Board of Trustees, the Institute for Advanced Study
Mark Hughes,
member
Other activities and
functions
–
Senior advisor to McKinsey & Company
Renata Jungo
Brüngger, member
Listed
–
Member of the Supervisory Board of Daimler Truck Holding AG
–
Member of the Supervisory Board of Daimler Truck AG
–
Member of the Supervisory Board of Munich Re (chair of remuneration committee)
Other activities and
functions
–
Member of the Board of Trustees of Internationale Bachakademie Stuttgart
–
Member of the Board of Trustees of Gesellschaft der Freunde von Bayreuth e. V. (Friends of Bayreuth)
Gail Kelly, member
Listed
–
Member of the Board of Singtel Communications (chair of the executive resource and compensation
committee)
Other activities and
functions
–
Member of the Group of Thirty
–
Member of the Board of Directors of the Bretton Woods Committee
–
Member of the Australian American Leadership Dialogue Advisory Board
–
Senior advisor to McKinsey & Company
Julie G. Richardson,
member
Listed
–
Member of the Board of BXP
1
–
Member of the Board of Datadog (chair of the audit committee)
Non-listed
–
Member of the Board of Fivetran
–
Member of the Board of Coalition, Inc.
1
New 2025 mandate compared with 2024.
Advisory vote
|
Audited |
BoD member mandates outside the Group (continued)
Name, function
Company boards /
other activities
Mandates
Lila Tretikov, member
Listed
–
Member of the Board of Volvo Car Corporation
–
Member of the Board of Xylem Inc.
–
Member of the Advisory Board of Capgemini SE (changed to Board mandate in January 2026)
Other activities and
functions
–
Member of the Board of Zendesk Inc.
–
Member of the Board of Backflip AI, Inc.
–
Member of the Board of Cusp AI Limited
–
Member of the Board of Horizon 3 AI, Inc.
Jeanette Wong,
member
Listed
–
Member of the Board of Prudential plc (chair of the audit committee)
–
Member of the Board of Singapore Airlines Limited (chair of the board compensation and industrial relations
committee)
Non-listed
–
Member of the Board of GIC Pte Ltd
–
Member of the Board of PSA International
Other activities and
functions
–
Chairman of the CareShield Life Council
–
Member of the Securities Industry Council
–
Member of the Board of Trustees of the National University of Singapore
›
Refer to “Board of Directors” in the “Corporate governance” section of this report for more information
Advisory vote
|
Audited |
GEB member mandates outside the Group
Name, function
Company boards /
other activities
Mandates
Sergio P. Ermotti, Group Chief
Executive Officer
Listed
–
Member of the Board of Ermenegildo Zegna N.V. (Lead Non-Executive Director)
Non-listed
–
Member of the Board of Società Editrice del Corriere del Ticino SA
Other activities and
functions
–
Member of the Board of Innosuisse, the Swiss Innovation Agency
–
Member of Institut International d’Etudes Bancaires
–
Member of the WEF International Business Council and Governor of the Financial Services /
Banking Community
–
Member of the MAS International Advisory Panel
–
Member of the Board of the Institute of International Finance
–
Member of the Board of the Swiss-American Chamber of Commerce
George Athanasopoulos, Co-
President Investment Bank
None
Michelle Bereaux, Group
Integration Officer until December
2025, Group Chief Compliance
and Operational Risk Control
Officer since January 2026
None
Mike Dargan, Group Chief
Operations and Technology
Officer (stepped down on
31
December
2025)
Other activities and
functions
–
Member of the Advisory Board of SCION Association
Aleksandar Ivanovic, President
Asset Management
None
Robert Karofsky, Co-President
Global Wealth Management and
President UBS Americas
Other activities and
functions
–
Member of the Board of the American Swiss Foundation
1
Sabine Keller-Busse, President
Personal & Corporate Banking and
President UBS Switzerland
Listed
–
Member of the Board of Zurich Insurance Group
Other activities and
functions
–
Chairwoman of the Foundation Board of the Pension Fund of UBS
–
Member of the Board and Board Committee of Zurich Chamber of Commerce
–
Member of the Foundation Council of the UBS Center for Economics in Society, University of
Zurich
–
Member of the Board of Trustees of the Swiss Entrepreneurs Foundation (stepped down January
2026)
–
Member of the Board of Trustees of the HSG Foundation (University of St. Gallen)
–
Member of the Foundation Board of Deep Tech Nation Switzerland
–
Member of the Board of the University Hospital Zurich Foundation
Iqbal Khan, Co-President Global
Wealth Management and
President UBS Asia Pacific
None
Barbara Levi, Group General
Counsel
Other activities and
functions
–
Member of the Board of Directors of the European General Counsel Association
–
Member of the Legal Committee of the Swiss-American Chamber of Commerce
Beatriz Martin Jimenez, Group
Chief Operating Officer (since
January 2026), Head Non-core
and Legacy and President UBS
EMEA
None
Markus Ronner, Group Chief
Compliance and Governance
Officer (stepped down on
31
December
2025)
None
Stefan Seiler, Head Group Human
Resources and Corporate Services
Other activities and
functions
–
Member of the Foundation Board of the Pension Fund of UBS
–
Member of the Foundation Council of the UBS Center for Economics in Society, University of
Zurich
–
Chairman of the Foundation Board of the Swiss Finance Institute
–
Member of the IMD Foundation Board
–
Adjunct Professor for Leadership and Strategic Human Resource Management, Nanyang
Technological University (NTU), Singapore
Todd Tuckner, Group Chief
Financial Officer
Other activities and
functions
–
Member of the Financial Services Chapter Board of the Swiss-American Chamber of Commerce
1
Marco Valla, Co-President
Investment Bank
Other activities and
functions
–
Member of the Board of Directors of Good Shepherd Services
–
Member of the Board of the Mount Sinai Department of Urology
Damian Vogel, Group Chief Risk
Officer
Other activities and
functions
–
Member of Foundation Board of the International Financial Risk Institute
1
New 2025 mandate compared with 2024.
›
Refer to “Group Executive Board” in the “Corporate governance” section of this report for more information
Advisory vote
|
Provisions of the Articles of Association related to compensation
Swiss say-on-pay provisions give shareholders of companies listed in Switzerland significant influence over board and
management compensation. At UBS, this is achieved by means of an annual binding say-on-pay vote in accordance with
the following provisions of the AoA.
Say on pay
In line with article 43 of the AoA, the General Meeting approves proposals from the BoD in relation to:
a) the maximum aggregate amount of compensation of the BoD for the period until the next AGM;
b) the maximum aggregate amount of fixed compensation of the GEB for the following financial year; and
c) the aggregate amount of variable compensation of the GEB for the preceding financial year.
The BoD may submit for approval by the General Meeting deviating or additional proposals relating to the same or
different periods. If the General Meeting does not approve a proposal from the BoD, the BoD will determine, taking into
account all relevant factors, the respective (maximum) aggregate amount or (maximum) partial amounts and submit the
amount(s) so determined for approval by the General Meeting. UBS Group AG or companies controlled by it may pay or
grant compensation prior to approval by the General Meeting, subject to subsequent approval.
Principles of compensation
In line with articles 45 and 46 of the AoA, compensation of the members of the BoD includes base remuneration and
may include other compensation elements and benefits. Compensation of the members of the BoD is intended to
recognize the responsibility and governance nature of their role, to attract and retain qualified individuals, and to ensure
alignment with shareholders’ interests.
Compensation of the members of the GEB includes fixed and variable compensation elements. Fixed compensation
includes the base salary and may include other compensation elements and benefits. Variable compensation elements
are governed by financial and non-financial performance measures that take into account the performance of UBS Group
AG and / or parts thereof, targets in relation to the market, other companies or comparable benchmarks, short- and
long-term strategic objectives, and / or individual targets. The BoD or, where delegated to it, the Compensation
Committee, determines the respective performance measures, the overall and individual performance targets, and their
achievement. The BoD or, where delegated to it, the Compensation Committee, aims to ensure alignment with
sustainable performance and appropriate risk-taking through adequate deferrals, forfeiture conditions, caps on
compensation, harmful acts provisions and similar means with regard to parts of or all of the compensation. Parts of
variable compensation are subject to a multi-year vesting period.
Additional amount for GEB members appointed after the vote on the aggregate amount of compensation by the AGM
In line with article 46 of the AoA of UBS Group AG, if the maximum aggregate amount of compensation already approved
by the General Meeting is not sufficient to also cover the compensation of a person that becomes a member of or is
being promoted within the GEB after the General Meeting has approved the compensation, UBS Group AG, or companies
controlled by it, is authorized to pay or grant each such GEB member a supplementary amount during the compensation
period(s) already approved. The aggregate pool for such supplementary amounts per compensation period cannot exceed
40% of the average of total annual compensation paid or granted to the GEB during the previous three years.
›
Refer to
ubs.com/governance
for more information
Advisory vote
|
Annual Report 2025 |
Financial statements | Consolidated financial statements 238
Financial statements
Consolidated financial statements
Table of contents
239
Management’s report on internal control over financial
reporting
240
Reports of the independent registered public accounting
firm / statutory auditor included in this report
241
Report of independent registered public accounting firm
on internal control over financial reporting
242
Report of independent registered public accounting firm
on the financial statements
246
UBS Group AG consolidated financial statements
246
Primary financial statements and share information
246
Income statement
247
Statement of comprehensive income
248
Balance sheet
249
Statement of changes in equity
251
Share information and earnings per share
253
Statement of cash flows
255
Notes to the UBS Group AG consolidated financial
statements
255
1
Summary of material accounting policies
272
2a
Segment reporting
274
2b
Segment reporting by geographic location
275
Income statement notes
275
3
Net interest income and other net income from
financial instruments measured at fair value through
profit or loss
275
4
Net fee and commission income
276
5
Other income
276
6
Personnel expenses
276
7
General and administrative expenses
277
8
Income taxes
280
Balance sheet notes
280
9
Financial assets at amortized cost and other
positions in scope of expected credit loss
measurement
284
10
Derivative instruments
286
11
Property, equipment and software
286
12
Goodwill and intangible assets
288
13
Other assets
289
14
Amounts due to banks and Customer deposits
289
15
Debt issued designated at fair value
290
16
Debt issued measured at amortized cost
290
17
Provisions and contingent liabilities
298
18
Other liabilities
299
Additional information
299
19
Expected credit loss measurement
311
20
Fair value measurement
325
21
Offsetting financial assets and financial liabilities
326
22
Restricted and transferred financial assets
329
23
Maturity analysis of assets and liabilities
332
24
Hedge accounting
334
25
Post-employment benefit plans
340
26
Employee benefits: variable compensation
344
27
Interests in subsidiaries and other entities
347
28
Changes in organization and acquisitions and
disposals of subsidiaries and businesses
349
29
Related parties
351
30
Invested assets and net new money
352
31
Currency translation rates
352
32
Main differences between IFRS Accounting
Standards and Swiss GAAP
Annual Report 2025 |
Financial statements | Consolidated financial statements 239
Management’s report on internal control over financial reporting
Management’s responsibility for internal control over financial reporting
The Board of Directors and management of UBS Group AG (UBS) are responsible for establishing and maintaining adequate
internal controls over financial reporting. UBS’s internal controls over financial reporting are designed to provide reasonable
assurance regarding the preparation and fair presentation of published financial statements in accordance with IFRS
Accounting Standards, as issued by the International Accounting Standards Board (IASB).
UBS’s internal controls over financial reporting include those policies and procedures that:
–
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and
dispositions of assets;
–
provide reasonable assurance that transactions are recorded as necessary to permit preparation and fair presentation
of financial statements, and that receipts and expenditures of the company are being made only in accordance with
authorizations of UBS management; and
–
provide reasonable assurance regarding the prevention or timely detection of unauthorized acquisition, use or
disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
Management’s assessment of internal control over financial reporting as of 31 December 2025
UBS management has assessed the effectiveness of UBS’s internal control over financial reporting as of 31 December
2025 based on the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)
in Internal Control – Integrated Framework (2013 Framework). Based on this assessment, management believes that, as
of 31 December 2025, UBS’s internal control over financial reporting was effective.
The effectiveness of UBS’s internal control over financial reporting as of 31 December 2025 has been audited by Ernst &
Young Ltd, UBS’s independent registered public accounting firm, as stated in their Report of the independent registered
public accounting firm on internal control over financial reporting, which expresses an unqualified opinion on the
effectiveness of UBS’s internal control over financial reporting as of 31 December 2025.
Remediation of Credit Suisse material weaknesses
In March 2023, prior to the acquisition by UBS Group AG, the Credit Suisse Group and Credit Suisse AG disclosed that
their management had identified material weaknesses in internal control over financial reporting as a result of which the
Credit Suisse Group and Credit Suisse AG had concluded that, as of 31 December 2022 and 2021, their internal control
over financial reporting was not effective. Following the acquisition and merger of Credit Suisse Group AG into UBS
Group AG in June 2023, Credit Suisse AG concluded that as of 31 December 2023 its internal control over financial
reporting continued to be ineffective. As permitted by SEC guidance in the year of an acquisition, UBS Group AG excluded
Credit Suisse AG from its assessment of internal control over financial reporting for the year ended 31 December 2023
and concluded that its internal control over financial reporting was effective as of such date.
Since the Credit Suisse acquisition, UBS has executed a remediation program to address the identified material
weaknesses and has implemented additional controls and procedures.
As of 31 December 2024, management assessed that the changes to internal controls made to address the material
weaknesses relating to the classification and presentation of the consolidated statement of cash flows, as well as
assessment and communication of the severity of deficiencies, were designed and operating effectively. The remaining
material weakness related to the risk assessment of internal controls. During 2024, UBS integrated the Credit Suisse
control framework into the UBS internal control framework and risk assessment and evaluation processes. In addition,
UBS reviewed the processes, systems and internal controls in connection with the integration of Credit Suisse into UBS
and implemented additional processes and controls to reflect the increase in complexity of the accounting and financial
control environment following the acquisition. Management assessed that the risk assessment process was designed
effectively.
However, considering the increased complexity of the internal accounting and control environment, the remaining
migration efforts still underway and limited time to demonstrate operating effectiveness and sustainability of the post-
merger integrated control environment, management concluded that additional evidence of effective operation of the
remediated controls was required to conclude that the risk assessment processes were operating effectively on a
sustainable basis. In light of the above, management concluded that there was a material weakness in internal control
over financial reporting at 31 December 2024.
As of 31 December 2025, UBS management has assessed the effectiveness of UBS’s risk assessment process and
concluded that changes made to the risk assessment processes were designed and operating effectively, with significant
integration and migration steps completed. UBS management has therefore concluded that the risk assessment material
weakness has been remediated.
Annual Report 2025 |
Financial statements | Consolidated financial statements 240
Reports of the independent registered public accounting firm included in this report
The accompanying reports of the independent registered public accounting firm on the consolidated financial statements
Report of independent registered public accounting firm on the consolidated financial statements and
internal control
over financial reporting
reporting
of UBS Group are included in our filing on 9 March 2026 with the Securities and Exchange Commission on
Form 20-F pursuant to US reporting obligations.
Annual Report 2025 |
Financial statements | Consolidated financial statements 241
Annual Report 2025 |
Financial statements | Consolidated financial statements 242
Annual Report 2025 |
Financial statements | Consolidated financial statements 243
Annual Report 2025 |
Financial statements | Consolidated financial statements 244
Annual Report 2025 |
Financial statements | Consolidated financial statements 245
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 246
UBS Group AG consolidated financial statements
Primary financial statements and share information
Audited |
Income statement
For the year ended
USD m
Note
31.12.25
31.12.24
31.12.23
Interest income from financial instruments measured at amortized cost and fair value through
other comprehensive income
3
Interest expense from financial instruments measured at amortized cost
3
(26,544 )
(35,947 )
(28,216 )
Net interest income from financial instruments measured at fair value through profit or loss and other
3
Net interest income
3
Other net income from financial instruments measured at fair value through profit or loss
3
Fee and commission income
4
Fee and commission expense
4
(2,669 )
(2,592 )
(2,195 )
Net fee and commission income
4
Other income
5
(96 )
Total revenues
Negative goodwill
28
Credit loss expense / (release)
19
Personnel expenses
6
General and administrative expenses
7
Depreciation, amortization and impairment of non-financial assets
11, 12
Operating expenses
Operating profit / (loss) before tax
Tax expense / (benefit)
8
Net profit / (loss)
Net profit / (loss) attributable to non-controlling interests
Net profit / (loss) attributable to shareholders
Earnings per share (USD)
Basic
Diluted
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 247
Statement of comprehensive income
For the year ended
USD m
Note
31.12.25
31.12.24
31.12.23
Comprehensive income attributable to shareholders
Net profit / (loss)
Other comprehensive income that may be reclassified to the income statement
Foreign currency translation
Foreign currency translation movements related to net assets of foreign operations, before tax
1
(4,726 )
Effective portion of changes in fair value of hedging instruments designated as net investment hedges, before tax
(2,262 )
(2,320 )
Foreign currency translation differences on foreign operations reclassified to the income statement
(48 )
Effective portion of changes in fair value of hedging instruments designated as net investment hedges reclassified to
the income statement
(33 )
(28 )
Income tax relating to foreign currency translations, including the effect of net investment hedges
(5 )
(17 )
Subtotal foreign currency translation, net of tax
2
(1,754 )
Financial assets measured at fair value through other comprehensive income
Net unrealized gains / (losses), before tax
Net realized (gains) / losses reclassified to the income statement from equity
(3 )
Income tax relating to net unrealized gains / (losses)
Subtotal financial assets measured at fair value through other comprehensive income, net of tax
Cash flow hedges of interest rate risk
24
Effective portion of changes in fair value of derivative instruments designated as cash flow hedges, before tax
(1,450 )
(323 )
Net (gains) / losses reclassified to the income statement from equity
Income tax relating to cash flow hedges
(302 )
(69 )
(308 )
Subtotal cash flow hedges, net of tax
Cost of hedging
24
Cost of hedging, before tax
(146 )
(19 )
Income tax relating to cost of hedging
Subtotal cost of hedging, net of tax
(146 )
(19 )
Total other comprehensive income that may be reclassified to the income statement, net of tax
(1,417 )
Other comprehensive income that will not be reclassified to the income statement
Defined benefit plans
25
Gains / (losses) on defined benefit plans, before tax
(16 )
(307 )
Income tax relating to defined benefit plans
(28 )
(70 )
Subtotal defined benefit plans, net of tax
(44 )
(261 )
Own credit on financial liabilities designated at fair value
20
Gains / (losses) from own credit on financial liabilities designated at fair value, before tax
(502 )
(10 )
(1,850 )
Income tax relating to own credit on financial liabilities designated at fair value
(9 )
Subtotal own credit on financial liabilities designated at fair value, net of tax
(499 )
(19 )
(1,769 )
Total other comprehensive income that will not be reclassified to the income statement, net of tax
(543 )
(280 )
(1,729 )
Total other comprehensive income
(1,698 )
Total comprehensive income attributable to shareholders
Comprehensive income attributable to non-controlling interests
Net profit / (loss)
Total other comprehensive income that will not be reclassified to the income statement, net of tax
(47 )
Total comprehensive income attributable to non-controlling interests
Total comprehensive income
Net profit / (loss)
Other comprehensive income
(1,744 )
of which: other comprehensive income that may be reclassified to the income statement
(1,417 )
of which: other comprehensive income that will not be reclassified to the income statement
(526 )
(327 )
(1,723 )
Total comprehensive income
1 Includes foreign currency translation differences as incurred by UBS’s associates where UBS has recorded its share in these differences. The year ended 31 December 2025 includes a USD
m gain from UBS’s share
of a reclassification of foreign currency translation differences to the income statement as recorded by an associate of UBS. 2 Mainly reflects a weakening of the US dollar against the Swiss franc and the euro.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 248
Balance sheet
USD m
Note
31.12.25
31.12.24
Assets
Cash and balances at central banks
Amounts due from banks
9
Receivables from securities financing transactions measured at amortized cost
9, 21
Cash collateral receivables on derivative instruments
9, 21
Loans and advances to customers
9
Other financial assets measured at amortized cost
9, 13a
Total financial assets measured at amortized cost
Financial assets at fair value held for trading
20
of which: assets pledged as collateral that may be sold or repledged by counterparties
Derivative financial instruments
10, 20, 21
Brokerage receivables
20
Financial assets at fair value not held for trading
20
Total financial assets measured at fair value through profit or loss
Financial assets measured at fair value through other comprehensive income
20
Investments in associates
27b
Property, equipment and software
11
Goodwill and intangible assets
12
Deferred tax assets
8
Other non-financial assets
13b
Total assets
Liabilities
Amounts due to banks
14
Payables from securities financing transactions measured at amortized cost
21
Cash collateral payables on derivative instruments
21
Customer deposits
14
Debt issued measured at amortized cost
16
Other financial liabilities measured at amortized cost
18a
Total financial liabilities measured at amortized cost
Financial liabilities at fair value held for trading
20
Derivative financial instruments
10, 20, 21
Brokerage payables designated at fair value
20
Debt issued designated at fair value
15, 20
Other financial liabilities designated at fair value
18b, 20
Total financial liabilities measured at fair value through profit or loss
Provisions and contingent liabilities
17a
Other non-financial liabilities
18c
Total liabilities
Equity
Share capital
Share premium
Treasury shares
(7,891 )
(6,402 )
Retained earnings
Other comprehensive income recognized directly in equity, net of tax
Equity attributable to shareholders
Equity attributable to non-controlling interests
Total equity
Total liabilities and equity
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 249
Statement of changes in equity
USD m
Share
capital
Share
premium
Treasury
shares
Retained
earnings
Balance as of 31 December 2022
(6,874 )
Purchase price consideration for the acquisition of the Credit Suisse Group, before consideration of share-based
compensation awards
Impact of share-based compensation awards from the acquisition of the Credit Suisse Group
Impact of the settlement of pre-existing relationships from the acquisition of the Credit Suisse Group
(61 )
Acquisition of treasury shares
(3,070 )
2
Delivery of treasury shares under share-based compensation plans
(858 )
Other disposal of treasury shares
2
Cancellation of treasury shares related to the 2021 share repurchase program
(7 )
(554 )
(554 )
Share-based compensation expensed in the income statement
Tax (expense) / benefit
Dividends
(839 )
3
(839 )
3
Equity classified as obligation to purchase own shares
Translation effects recognized directly in retained earnings
Share of changes in retained earnings of associates and joint ventures
(1 )
Share capital currency change
(49 )
New consolidations / (deconsolidations) and other increases / (decreases)
4
Total comprehensive income for the year
of which: net profit / (loss)
of which: OCI, net of tax
(1,729 )
Balance as of 31 December 2023
(4,796 )
Acquisition of treasury shares
(3,091 )
2
Delivery of treasury shares under share-based compensation plans
(1,286 )
Other disposal of treasury shares
2
Share-based compensation expensed in the income statement
Tax (expense) / benefit
Dividends
(1,128 )
3
(1,128 )
3
Equity classified as obligation to purchase own shares
(6 )
Translation effects recognized directly in retained earnings
(44 )
Share of changes in retained earnings of associates and joint ventures
(3 )
New consolidations / (deconsolidations) and other increases / (decreases)
Total comprehensive income for the year
of which: net profit / (loss)
of which: OCI, net of tax
(280 )
Balance as of 31 December 2024
(6,402 )
Acquisition of treasury shares
(5,436 )
2
Delivery of treasury shares under share-based compensation plans
(1,387 )
Other disposal of treasury shares
(1 )
2
Cancellation of treasury shares related to the 2022 share repurchase program
6
(12 )
(1,133 )
(1,133 )
Share-based compensation expensed in the income statement
Tax (expense) / benefit
Dividends
(1,433 )
3
(1,433 )
3
Equity classified as obligation to purchase own shares
(15 )
Translation effects recognized directly in retained earnings
Share of changes in retained earnings of associates and joint ventures
(2 )
New consolidations / (deconsolidations) and other increases / (decreases)
(93 )
Total comprehensive income for the year
of which: net profit / (loss)
of which: OCI, net of tax
(543 )
Balance as of 31 December 2025
(7,891 )
1 Excludes other comprehensive income related to defined benefit plans and own credit, which is recorded directly in Retained earnings. 2 Includes treasury shares acquired and disposed of by the Investment Bank
in its capacity as a market-maker with regard to UBS Group AG shares and related derivatives, and to hedge certain issued structured debt instruments. These acquisitions and disposals are reported based on the sum
of the net monthly movements. 3 Reflects the payment of an ordinary cash dividend of USD
; 2023: USD
) per dividend-bearing share. Swiss tax law requires Switzerland-domiciled
companies with shares listed on a Swiss stock exchange to pay no more than
% of dividends from capital contribution reserves, with the remainder required to be paid from retained earnings. 4 Includes an
increase of USD
m related to the issuance of high-trigger loss-absorbing additional tier 1 capital with an equity conversion feature. 5 Includes an increase of USD
m in the second quarter of 2023 due to the
acquisition of the Credit Suisse Group. 6 Reflects the cancellation of
Swiss tax law requires Switzerland-domiciled companies with shares listed on a Swiss stock exchange to reduce capital contribution reserves by at least
% of the total capital reduction amount exceeding the nominal
value upon cancellation of the shares. 7 Mainly reflects effects from UBS’s increase in its stake in UBS Securities China from
% to
% and UBS’s sale of a
% stake in another subsidiary, Credit Suisse
Securities (China) Limited. Refer to Note 28 for more information.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 250
Other comprehensive
income recognized
directly in equity,
net of tax
1
of which:
foreign currency
translation
of which:
financial assets at
fair value through OCI
of which:
cash flow
hedges
of which:
cost of hedging
Total equity
attributable to
shareholders
Non-controlling
interests
Total equity
(103 )
(4 )
(4,234 )
(61 )
(61 )
(3,070 )
(3,070 )
(1,679 )
(4 )
(1,683 )
(150 )
(150 )
(1 )
(1 )
5
(19 )
(19 )
(1 )
(3,109 )
(13 )
(3,091 )
(3,091 )
(2,256 )
(30 )
(2,285 )
(6 )
(6 )
(3 )
(3 )
(20 )
(1,417 )
(1,754 )
(146 )
(1,417 )
(1,754 )
(146 )
(1,698 )
(47 )
(1,744 )
(2,585 )
(158 )
(5,436 )
(5,436 )
(2,866 )
(28 )
(2,894 )
(15 )
(15 )
(50 )
(50 )
(2 )
(2 )
(93 )
(243 )
7
(337 )
(1,339 )
(84 )
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 251
Share information and earnings per share
Ordinary share capital
As of 31 December 2025, UBS Group AG had
USD
.
Conditional capital
As of 31 December 2025, the following conditional capital was available to the Board of Directors (the BoD) of
UBS Group AG.
–
Conditional capital in the amount of USD
registered shares with a nominal value of USD
conversion rights and / or warrants granted in connection with the issuance of bonds or similar financial instruments
by UBS Group AG or another member of the Group on national or international capital markets. This conditional
capital allowance was approved at the Extraordinary General Meeting (the EGM) held on 26 November 2014, having
originally been approved at the Annual General Meeting (the AGM) of UBS AG on 14 April 2010. The BoD has not
made use of such allowance.
–
Conditional capital in the amount of USD
registered shares with a nominal value of USD
appreciation rights issued to employees and members of the management and of the BoD of UBS Group AG and its
subsidiaries; however, there were no employee options or stock appreciation rights outstanding as of 31 December
2025. This conditional capital allowance was approved by the shareholders at the same EGM in 2014.
Conversion capital
As of 31 December 2025, UBS Group AG had conversion capital in the amount of USD
, for the issuance of
a maximum of
paid registered shares only occurs through the mandatory conversion of claims arising upon the occurrence of one or
more trigger events under financial market instruments with contingent conversion features issued by UBS Group AG.
The creation of this conversion capital was approved at the AGM held on 24 April 2024.
Capital band and reserve capital
As of 31 December 2025, UBS Group AG had not introduced any capital band or any reserve capital.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 252
Share repurchase programs
In March 2022, UBS commenced a two-year share repurchase program of up to USD
bn, which concluded on 28 March
2024. Under this program, UBS repurchased
m shares for a total acquisition cost of USD
m (CHF
m). A
total of
approved by shareholders at the 2025 AGM.
On 3 April 2024, UBS launched a 2024 share repurchase program, which concluded on 23 May 2025. Shares acquired
under this program totaled
m as of 31 December 2025 for a total acquisition cost of USD
m (CHF
m).
On 1 July 2025, UBS launched a 2025 share repurchase program, which concluded on 20 November 2025. Shares
acquired under this program totaled
m as of 31 December 2025 for a total acquisition cost of USD
m
(CHF
m).
Shares outstanding and earnings per share
As of or for the year ended
31.12.25
31.12.24
31.12.23
Shares outstanding
Shares issued
Balance at the beginning of the year
Shares canceled
(120,506,008 )
1
(62,548,000 )
2
Balance at the end of the year
Treasury shares
Balance at the beginning of the year
Acquisitions
Deliveries under share-based compensation plans and disposals
(66,852,016 )
(68,470,434 )
(64,270,031 )
Cancellation of second trading line treasury shares
(120,506,008 )
1
(62,548,000 )
2
Shares transferred to Credit Suisse Group shareholders as consideration for the acquisition of
the Credit Suisse Group
(175,649,481 )
Balance at the end of the year
Shares outstanding
Basic and diluted earnings (USD m)
Net profit / (loss) attributable to shareholders for basic EPS
Less: (profit) / loss on own equity derivative contracts
Net profit / (loss) attributable to shareholders for diluted EPS
Weighted average shares outstanding
Weighted average shares outstanding for basic EPS
3
Effect of dilutive potential shares resulting from notional employee shares, in-the-money options and warrants
outstanding
4
Weighted average shares outstanding for diluted EPS
Earnings per share (USD)
Basic
Diluted
Potentially dilutive instruments
5
Employee share-based compensation awards
Other equity derivative contracts
Total
1 Reflects the cancellation of shares purchased under UBS’s 2022 share repurchase program as approved by shareholders at the 2025 Annual General Meeting (the AGM). 2 Reflects the cancellation of shares
purchased under UBS’s 2021 share repurchase program as approved by shareholders at the 2023 AGM. 3 The weighted average shares outstanding for basic EPS are calculated by taking the number of shares at
the beginning of the period, adjusted by the number of shares acquired or issued during the period, multiplied by a time-weighted factor for the period outstanding. As a result, balances are affected by the timing of
acquisitions and issuances during the period. 4 The weighted average number of shares for notional employee awards with performance conditions reflects all potentially dilutive shares that are expected to vest
under the terms of the awards. 5 Reflects potential shares that could dilute basic earnings per share in the future but were not dilutive for the periods presented.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 253
Statement of cash flows
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Cash flow from / (used in) operating activities
Net profit / (loss)
Non-cash items included in net profit and other adjustments
Depreciation, amortization and impairment of non-financial assets
Credit loss expense / (release)
Share of net (profit) / loss of associates and joint ventures and impairment related to associates
(77 )
(144 )
Deferred tax expense / (benefit)
(382 )
(495 )
(694 )
Net loss / (gain) from investing activities
(485 )
(102 )
Net loss / (gain) from financing activities
(5,314 )
Negative goodwill
(27,264 )
Other net adjustments
1
(28,570 )
(15,175 )
Net change in operating assets and liabilities
1
Amounts due from banks and amounts due to banks
(77 )
(2,353 )
Receivables from securities financing transactions measured at amortized cost
(23,884 )
(3,503 )
Payables from securities financing transactions measured at amortized cost
(552 )
(2,014 )
Cash collateral on derivative instruments
Loans and advances to customers
(16,316 )
Customer deposits
(12,939 )
(15,072 )
Financial assets and liabilities at fair value held for trading and derivative financial instruments
(13,594 )
Brokerage receivables and payables
(5,962 )
Financial assets at fair value not held for trading and other financial assets and liabilities
(13,411 )
Provisions and other non-financial assets and liabilities
(4,577 )
(116 )
Income taxes paid, net of refunds
(2,049 )
(1,938 )
(1,852 )
Net cash flow from / (used in) operating activities
2
Cash flow from / (used in) investing activities
Cash and cash equivalents acquired upon the acquisition of the Credit Suisse Group
3
Purchase of subsidiaries, businesses, associates and intangible assets
(17 )
(64 )
(4 )
Disposal of subsidiaries, businesses, associates and intangible assets
4
5
Purchase of property, equipment and software
(2,362 )
(2,008 )
(1,685 )
Disposal of property, equipment and software
Purchase of financial assets measured at fair value
6
(16,717 )
(4,638 )
(4,157 )
Disposal and redemption of financial assets measured at fair value
6
Purchase of debt securities measured at amortized cost
(21,569 )
(5,962 )
(14,244 )
Disposal and redemption of debt securities measured at amortized cost
Net cash flow from / (used in) investing activities
(22,802 )
Statement of cash flows (continued)
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 254
Statement of cash flows (continued)
Table continues below.
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Cash flow from / (used in) financing activities
Repayment of Swiss National Bank funding
7
(42,587 )
(56,516 )
Net issuance (repayment) of short-term debt measured at amortized cost
(7,407 )
Net movements in treasury shares and own equity derivative activity
(5,178 )
(2,923 )
(2,779 )
Distributions paid on UBS Group AG shares
(2,866 )
(2,256 )
(1,679 )
Issuance of debt designated at fair value and long-term debt measured at amortized cost
Repayment of debt designated at fair value and long-term debt measured at amortized cost
(154,614 )
(129,683 )
(109,471 )
Inflows from securities financing transactions measured at amortized cost
8
Outflows from securities financing transactions measured at amortized cost
8
(2,734 )
(4,740 )
Net cash flows from other financing activities
(959 )
(987 )
(721 )
Net cash flow from / (used in) financing activities
(30,863 )
(84,165 )
(58,262 )
Total cash flow
Cash and cash equivalents at the beginning of the year
Net cash flow from / (used in) operating, investing and financing activities
(31,815 )
(80,176 )
Effects of exchange rate differences on cash and cash equivalents
1
(15,940 )
Cash and cash equivalents at the end of the year
9,10
of which: cash and balances at central banks
10
of which: amounts due from banks
10
of which: money market paper
10,11
Additional information
Net cash flow from / (used in) operating activities includes:
Interest received in cash
Interest paid in cash
Dividends on equity investments, investment funds and associates received in cash
4
1 Foreign currency translation and foreign exchange effects on operating assets and liabilities and on cash and cash equivalents are presented within the Other net adjustments line, with the exception of foreign
currency hedge effects related to foreign exchange swaps, which are presented on the line Financial assets and liabilities at fair value held for trading and derivative financial instruments. 2 Includes cash receipts
from the sale of loans and loan commitments as of 31 December 2025 of USD
m (31 December 2024: USD
m; 31 December 2023: USD
m) within Non-core and Legacy. 3 Refer to Note 28 for more
information. 4 Includes dividends received from associates. 5 Includes cash proceeds of USD
m, net of outflows related to cash and cash equivalents of USD
m, mainly from: the sale of Select Portfolio
Servicing, the US mortgage servicing business of Credit Suisse; the sale of a stake in Credit Suisse Securities (China) Limited; and the sale of a wealth management business in India. For the comparative periods the
cash proceeds received were not materially different from the cash flows net of cash and cash equivalents disposed from losing control of subsidiaries and other businesses as reported. Refer to Note 28 for more
information. 6 Includes cash flows in relation to financial assets measured at fair value through other comprehensive income and financial assets measured at fair value through profit or loss. 7 Reflects the
repayment of the Emergency Liquidity Assistance facility to the Swiss National Bank, which was recognized in the Amounts due to banks balance sheet line. 8 Reflects cash flows from securities financing transactions
measured at amortized cost that use UBS debt instruments as the underlying. 9 As of 31 December 2025, the balance included USD
m (31 December 2024: USD
m; 31 December 2023: USD
m)
of Cash and cash equivalents not available for general use by the Group, which consisted of USD
m (31 December 2024: USD
m; 31 December 2023: USD
m) considered by the Group as restricted
(refer to Note 22 for more information) and USD
m (31 December 2024: USD
m; 31 December 2023: USD
m) placed at central banks to meet local statutory minimum reserve requirements.
10 Includes only balances with an original maturity of three months or less. 11 Money market paper is included in the balance sheet under Financial assets at fair value not held for trading (31 December 2025:
USD
m; 31 December 2024: USD
m; 31 December 2023: USD
m), Other financial assets measured at amortized cost (31 December 2025: USD
m; 31 December 2024: USD
m; 31 December
2023: USD
m) and Financial assets at fair value held for trading (31 December 2025: USD
m; 31 December 2024: USD
m; 31 December 2023: USD
m).
Changes in liabilities arising from financing activities
USD m
Debt issued
measured at
amortized
cost
of which:
short-term
1
of which:
long-term
2
Securities
financing
transactions
measured at
amortized
cost
3
Swiss
National
Bank
funding
4
Debt issued
designated at
fair value
Over-the-
counter
debt
instruments
5
Total
Balance as of 31 December 2023
Cash flows
(17,469 )
(7,407 )
(10,062 )
(42,587 )
(19,194 )
(281 )
(77,998 )
Non-cash changes
(6,129 )
(613 )
(5,516 )
(411 )
(2,267 )
(1,186 )
(9,801 )
of which: foreign currency translation
(6,630 )
(613 )
(6,017 )
(376 )
(2,267 )
(3,245 )
(260 )
(12,778 )
of which: fair value changes
(87 )
of which: hedge accounting and other effects
(35 )
(329 )
Balance as of 31 December 2024
Cash flows
(15,687 )
(17,379 )
(416 )
(4,482 )
(1,277 )
(21,861 )
Non-cash changes
(981 )
of which: foreign currency translation
of which: fair value changes
(23 )
of which: hedge accounting and other effects
(9 )
(1,080 )
Balance as of 31 December 2025
1 Debt with an original contractual maturity of less than one year. 2 Debt with an original maturity greater than or equal to one year. The classification of debt issued into short-term and long-term does not consider
any early redemption features. 3 Reflects securities financing transactions measured at amortized cost that use UBS debt instruments as the underlying. 4 Reflects the Emergency Liquidity Assistance facility from
the Swiss National Bank, which was recognized in the Amounts due to banks balance sheet line. 5 Included in the balance sheet line Other financial liabilities designated at fair value.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 255
Notes to the UBS Group AG consolidated financial statements
Note 1 Summary of material accounting policies
The following table provides an overview of information included in this Note.
256
a)
Material accounting policies
256
Basis of accounting
256
Comparability
256
1)
Consolidation and business combinations
256
Consolidation
257
Business combinations
257
2)
Financial instruments
257
a.
Recognition
257
b.
Classification, measurement and presentation
260
c.
Loan commitments and financial guarantees
261
d.
Interest income and expense
261
e.
Derecognition
261
f.
Fair value of financial instruments
262
g.
Allowances and provisions for expected
credit losses
266
h.
Restructured and modified financial assets
266
i.
Offsetting
266
Hedge accounting
267
3)
Fee and commission income and expenses
267
4)
Share-based and other deferred compensation plans
268
5)
Post-employment benefit plans
268
6)
Income taxes
269
7)
Investments in associates
269
8)
Property, equipment and software
269
9)
Goodwill and other separately identifiable intangible
assets
270
10)
Provisions and contingent liabilities
270
11)
Foreign currency translation
271
12)
UBS Group AG shares held (treasury shares)
271
13) Cash and cash equivalents
271
b)
Changes in IFRS Accounting Standards and
Interpretations
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 256
Note 1 Summary of material accounting policies (continued)
a) Material accounting policies
This Note describes the material accounting policies applied in the preparation of the consolidated financial statements
(the Financial Statements) of UBS Group AG and its subsidiaries (UBS or the Group). On 6 March 2026, the Financial
Statements were authorized for issue by the Board of Directors of UBS Group AG (the BoD) and are subject to approval
by the Annual General Meeting of Shareholders on 15 April 2026.
Basis of accounting
The Financial Statements have been prepared in accordance with IFRS Accounting Standards, as issued by the
International Accounting Standards Board (the IASB), and are presented in US dollars.
Disclosures marked as audited in the “Risk, capital, liquidity and funding, and balance sheet” section of this report form
an integral part of the Financial Statements. These disclosures relate to requirements under IFRS 7,
Financial Instruments:
Disclosures
, and IAS 1,
Presentation of Financial Statements
, and are not repeated in this section.
The accounting policies described in this Note have been applied consistently in all years presented unless otherwise
stated in Note 1b.
Critical accounting estimates and judgments
Preparation of these Financial Statements under IFRS Accounting Standards requires management to apply judgment and make estimates and assumptions that
affect reported amounts of assets, liabilities, income and expenses, and disclosure of contingent assets and liabilities, and may involve significant uncertainty at the
time they are made. Such estimates and assumptions are based on the best available information. UBS regularly reassesses such estimates and assumptions, which
encompass historical experience, expectations of the future and other pertinent factors, to determine their continuing relevance based on current conditions,
updating them as necessary. Changes in those estimates and assumptions may have a significant effect on the Financial Statements. Furthermore, actual results
may differ significantly from UBS’s estimates, which could result in significant losses to the Group, beyond what was anticipated or provided for.
The following areas contain estimation uncertainty or require critical judgment and have a significant effect on amounts recognized in the Financial
Statements:
–
expected credit loss measurement (refer to item 2g in this Note and to Note 19);
–
fair value measurement (refer to item 2f in this Note and to Note 20);
–
income taxes (refer to item 6 in this Note and to Note 8);
–
provisions and contingent liabilities (refer to item 10 in this Note and to Note 17); and
–
goodwill (refer to item 9 in this Note and to Note 12).
Comparability
The income statement, the statement of comprehensive income, the statement of changes in equity and the statement
of cash flows for the years ended 31 December 2025 and 31 December 2024 are based entirely on consolidated data
following the acquisition of the Credit Suisse Group. The income statement, the statement of comprehensive income,
the statement of changes in equity and the statement of cash flows for the year ended 31 December 2023 include seven
months of post-acquisition consolidated data following the acquisition of the Credit Suisse Group (June through
December 2023) and five months of UBS Group data only (January through May 2023).
The balance sheet information as at 31 December 2025 and as at 31 December 2024 is based entirely on post-merger
consolidated information.
›
Refer to Note 28 for more information
1) Consolidation and business combinations
Consolidation
The Financial Statements include the financial statements of the parent company (UBS Group AG) and its subsidiaries,
presented as a single economic entity; intercompany transactions and balances have been eliminated. UBS consolidates
all entities that it controls, including structured entities (SEs), which is the case when it has: (i) power over the relevant
activities of the entity; (ii) exposure to the variable returns from involvement with the entity; and (iii) the ability to use its
power to affect its own returns.
Consideration is given to all facts and circumstances to determine whether the Group has power over another entity, i.e.
the current ability to direct the relevant activities of an entity when decisions about those activities need to be made.
Subsidiaries, including SEs, are consolidated from the date when control is gained and deconsolidated from the date
when control ceases. Control, or the lack thereof, is reassessed if facts and circumstances indicate that there is a change
to one or more elements required to establish that control is present.
›
Refer to Note 27 for more information
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 257
Note 1 Summary of material accounting policies
(continued)
Business combinations
Business combinations are accounted for using the acquisition method, as prescribed by IFRS 3,
Business Combinations
.
Under this method, any excess of the acquisition-date amounts of the identifiable net assets acquired over the fair value
of the consideration transferred results in negative goodwill that is recognized in the income statement on the date of
the acquisition, with transaction costs expensed as incurred.
2) Financial instruments
a. Recognition
UBS generally recognizes financial instruments when it becomes a party to contractual provisions of an instrument.
However, UBS does not recognize assets received in transfers that do not qualify for derecognition by the transferor
(symmetrically applying derecognition principles under IFRS Accounting Standards as described in item 2e below). UBS
applies settlement date accounting to all standard purchases and sales of non-derivative financial instruments.
UBS may act in a fiduciary capacity for individuals, trusts, retirement benefit plans and other institutions, holding or
placing assets on their behalf. Unless these activities qualify for recognition, applying the above criteria such assets are
not recognized on UBS’s balance sheet.
Client cash balances associated with derivatives clearing and execution services are not recognized on the balance sheet
if, through contractual agreement, regulation or practice, UBS neither obtains benefits from nor controls such cash
balances.
b. Classification, measurement and presentation
Financial assets
Where the contractual terms of a debt instrument held result in cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding, the debt instrument is classified as measured at amortized cost if it
is held within a business model that has an objective of holding financial assets to collect contractual cash flows, or at
fair value through other comprehensive income (FVOCI) if it is held within a business model that has an objective of both
collecting contractual cash flows and selling financial assets.
All other financial assets are measured at fair value through profit or loss (FVTPL), including those held for trading or
those managed on a fair value basis, except for derivatives designated in certain hedge accounting relationships (refer to
item 2j in this Note for more information).
UBS determines the nature of a business model by considering the way portfolios of financial assets are managed to
achieve a particular business objective at the time an asset is recognized.
In assessing whether contractual cash flows are SPPI, the Group considers whether the contractual terms of the financial
asset contain a term that could change the timing or amount of contractual cash flows arising over the life of the
instrument by a significant amount. This assessment includes contractual cash flows that may vary due to environmental,
social and governance (ESG) triggers.
Financial liabilities
Financial liabilities measured at amortized cost
Debt issued measured at amortized cost
contain contractual provisions under which the principal amounts would be written down upon either a specified
common equity tier 1 (CET1) ratio breach or a determination by the Swiss Financial Market Supervisory Authority (FINMA)
that a viability event has occurred. Such contractual provisions are not derivatives, as the underlying is deemed to be a
non-financial variable specific to a party to the contract. Issuances after November 2023 include a contractual equity
conversion feature with the same triggers, i.e. a CET1 ratio breach or a FINMA-determined viability event. When the debt
is issued in US dollars, these conversion features are classified as equity and are presented in
Share premium
from the amortized cost debt host.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 258
Note 1 Summary of material accounting policies
(continued)
When the legal bail-in mechanism for write-down or conversion into equity does not form part of the contractual terms
of issued debt instruments, it does not affect the accounting classification of these instruments as debt or equity.
If a debt were to be written down or converted into equity in a future period, it would be partially or fully derecognized,
with the difference between its carrying amount and the fair value of any equity issued recognized in the income
statement, with the conversion features classified as equity always remaining in
Equity attributable to shareholders
.
Financial liabilities measured at fair value through profit or loss
UBS designates certain issued debt instruments as financial liabilities at fair value through profit or loss, on the basis that
such financial instruments include embedded derivatives that are not closely related to the host contract and that
significantly impact the cash flows of the instrument and / or are managed on a fair value basis (refer to the table below
for more information). Financial instruments including embedded derivatives arise predominantly from the issuance of
certain structured debt instruments.
Measurement and presentation
On initial recognition, financial instruments are measured at fair value adjusted for directly attributable transaction costs,
unless the instrument is classified at FVTPL, in which case transaction costs are excluded.
After initial recognition, UBS classifies, measures and presents its financial assets and liabilities in accordance with IFRS 9,
as described in the table below.
Classification, measurement and presentation of financial assets
Financial assets classification
Significant items included
Measurement and presentation
Measured at
amortized cost
This classification includes:
–
cash and balances at central banks;
–
amounts due from banks;
–
receivables from securities financing transactions;
–
cash collateral receivables on derivative
instruments;
–
residential and commercial mortgages;
–
corporate loans;
–
secured loans, including Lombard loans, and
unsecured loans; and
–
debt securities held as high-quality liquid assets
(HQLA).
Measured at amortized cost using the effective interest
method less allowances for expected credit losses (ECL)
(refer to items 2d and 2g in this Note for more information).
The following items are recognized in the income
statement:
–
interest income, which is accounted for in accordance
with item 2d in this Note;
–
ECL and reversals; and
–
foreign exchange (FX) translation gains and losses.
When a financial asset at amortized cost is derecognized,
the gain or loss is recognized in the income statement.
For amounts arising from daily settlement of certain
derivatives, see below in this table.
Measured at
FVOCI
Debt
instruments
measured at
FVOCI
This classification primarily includes debt securities
held as HQLA.
Measured at fair value, with unrealized gains and losses
reported in
Other comprehensive income
, net of applicable
income taxes, until such instruments are derecognized.
Upon derecognition, any accumulated balances in
Other
comprehensive income
statement and reported within
Other income.
The following items, which are determined on the same
basis as for financial assets measured at amortized cost, are
recognized in the income statement:
–
interest income, which is accounted for in accordance
with item 2d in this Note;
–
ECL and reversals; and
–
FX translation gains and losses.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 259
Note 1 Summary of material accounting policies (continued)
Classification, measurement and presentation of financial assets
Financial assets classification
Significant items included
Measurement and presentation
Measured at
FVTPL
Held for
trading
Financial assets held for trading include:
–
all derivatives with a positive replacement value, except
those that are designated and effective hedging
instruments; and
–
other financial assets originated or acquired principally
for the purpose of selling or repurchasing in the near
term, or that are part of a portfolio of identified
financial instruments that are managed together and
for which there is evidence of a recent actual pattern of
short-term profit taking. Included in this category are
debt instruments (including those in the form of
securities, money market paper, and traded corporate
and bank loans) and equity instruments.
Measured at fair value, with changes recognized in the
income statement.
Derivative assets (including derivatives that are designated
and effective hedging instruments) are generally
presented as
Derivative financial instruments
, except those
exchange-traded derivatives (ETD) and over-the-counter
(OTC)-cleared derivatives that are legally settled on a daily
basis or economically net settled on a daily basis, which
are presented within
Cash collateral receivables on
derivative instruments.
Changes in fair value, initial transaction costs, dividends
and gains and losses arising on disposal or redemption are
recognized in
Other net income from financial
instruments measured at fair value through profit or loss
,
except interest income on instruments other than
derivatives (refer to item 2d in this Note), interest on
derivatives designated as hedging instruments in hedges
of interest rate risk and forward points on certain short-
and long-duration FX and interest rate contracts acting as
economic hedges, which are reported in
Net interest
income.
Changes in the fair value of derivatives that are
designated and effective hedging instruments are
presented either in the income statement or
Other
comprehensive income
, depending on the type of hedge
relationship (refer to item 2j in this Note for more
information).
Mandatorily
measured at
FVTPL – Other
Financial assets mandatorily measured at FVTPL that are
not held for trading include:
–
certain structured instruments and receivables from
securities financing transactions that are managed on a
fair value basis;
–
loans managed on a fair value basis, including those
hedged with credit derivatives;
–
certain debt securities held as HQLA and managed on a
fair value basis;
–
brokerage receivables, for which contractual cash flows
do not meet the SPPI criterion because the aggregate
balance is accounted for as a single unit of account,
with interest being calculated on the individual
components;
–
equity instruments; and
–
assets held under unit-linked investment contracts.
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Note 1 Summary of material accounting policies (continued)
Classification, measurement and presentation of financial liabilities
Financial liabilities classification
Significant items included
Measurement and presentation
Measured at amortized cost
This classification includes:
–
demand and time deposits;
–
retail savings / deposits;
–
sweep deposits;
–
payables from securities financing transactions;
–
non-structured debt issued;
–
subordinated debt;
–
commercial paper and certificates of deposit; and
–
cash collateral payables on derivative instruments.
Measured at amortized cost using the effective interest
method.
When a financial liability at amortized cost is
derecognized, the gain or loss is recognized in the income
statement.
Interest income generated from client deposits
derecognized pursuant to certain deposit sweep programs
is presented within
Net interest income from financial
instruments measured at fair value through profit or loss
and other
.
For amounts arising from daily settlement of certain
derivatives, see below in this table.
Measured at
FVTPL
Held for trading
Financial liabilities held for trading include:
–
all derivatives with a negative replacement value
(including certain loan commitments), except those
that are designated and effective hedging
instruments; and
–
obligations to deliver financial instruments, such as
debt and equity instruments, that UBS has sold to
third parties but does not own (short positions).
Measurement and presentation of financial liabilities
classified at FVTPL follow the same principles as for
financial assets classified at FVTPL, except that the amount
of change in the fair value of a financial liability
designated at FVTPL that is attributable to changes in
UBS’s own credit risk is presented in
Other comprehensive
income
Retained earnings
reclassified to the income statement.
Derivative liabilities (including derivatives that are
designated and effective hedging instruments) are
generally presented as
Derivative financial instruments
,
except those ETD and OTC-cleared derivatives that are
legally settled on a daily basis or economically net settled
on a daily basis, which are presented within
Cash
collateral payables on derivative instruments.
Designated at
FVTPL
Financial liabilities designated at FVTPL include:
–
issued hybrid debt instruments, primarily equity-
linked, credit-linked and rates-linked bonds or notes;
–
issued debt instruments managed on a fair value
basis;
–
certain payables from securities financing
transactions;
–
amounts due under unit-linked investment contracts,
the cash flows of which are linked to financial assets
measured at FVTPL and eliminate an accounting
mismatch; and
–
brokerage payables, which arise in conjunction with
brokerage receivables and are measured at FVTPL to
achieve measurement consistency.
c. Loan commitments and financial guarantees
Loan commitments are arrangements to provide credit under defined terms and conditions. Irrevocable loan
commitments are classified as: (i) derivative loan commitments measured at fair value through profit or loss; (ii) loan
commitments designated at fair value through profit or loss; or (iii) loan commitments not measured at fair value, in
which case the ECL requirements as set out in item 2g in this Note apply.
Financial guarantee contracts are contracts that require UBS to make specified payments to reimburse the holder for an
incurred loss because a specified debtor fails to make payments when due in accordance with the terms of a specified
debt instrument. The ECL requirements as set out in item 2g in this Note apply to financial guarantees issued that are
not accounted for at FVTPL.
Financial guarantee contracts held by UBS for credit risk mitigation purposes that are assessed to be integral to the
guaranteed exposure are accounted for as a component of that exposure with cash flows expected from the credit
enhancement included in the measurement of the ECL of the respective exposure. Rights to reimbursement arising from
financial guarantees held that are not integral to the terms of the exposure they cover are recognized when their
realization is considered to be virtually certain.
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Note 1 Summary of material accounting policies (continued)
d. Interest income and expense
Interest income from financial instruments measured at amortized cost and FVOCI and interest expense from financial
instruments measured at amortized cost are recognized in the income statement based on the effective interest method.
When calculating the effective interest rate (the EIR) for financial instruments (other than credit-impaired financial
instruments), UBS estimates future cash flows considering all contractual terms of the instrument, but not expected credit
losses, with the EIR applied to the gross carrying amount of the financial asset or the amortized cost of a financial liability.
However, when a financial asset becomes credit impaired after initial recognition, interest income is determined by
applying the EIR to the amortized cost of the instrument, which represents the gross carrying amount adjusted for any
credit loss allowance.
Upfront fees, including fees on loan commitments not measured at fair value where a loan is expected to be issued, and
direct costs are included within the initial measurement of a financial instrument measured at amortized cost or FVOCI
and recognized over the expected life of the instrument as part of its EIR.
Interest income on financial assets, excluding derivatives, is included in interest income when positive and in interest
expense when negative. Similarly, interest expense on financial liabilities, excluding derivatives, is included in interest
expense, except when interest rates are negative, in which case it is included in interest income.
›
Refer to item 2b in this Note and Note
3
e. Derecognition
Financial assets
UBS derecognizes a transferred financial asset, or a portion of a financial asset, if the purchaser has obtained substantially
all the risks and rewards of the asset or a significant part of the risks and rewards combined with a practical ability to sell
or pledge the asset.
Where financial assets have been pledged as collateral or in similar arrangements, they are considered to have been
transferred if the counterparty has received the contractual rights to the cash flows of the pledged assets, as may be
evidenced by, for example, the counterparty’s right to sell or repledge the assets. In transfers where control over the
financial asset is retained, UBS continues to recognize the asset to the extent of its continuing involvement, determined
by the extent to which it is exposed to changes in the value of the transferred asset following the transfer.
›
Refer to Note
22
Financial liabilities
UBS derecognizes a financial liability when it is extinguished, i.e. when the obligation specified in the contract is
discharged, canceled or expires. When an existing financial liability is exchanged for a new one from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, the original liability is
derecognized and a new liability recognized with any difference in the respective carrying amounts recorded in the
income statement.
Most OTC derivative contracts and ETD futures and option contracts cleared through central clearing counterparties and
exchanges are considered to be settled on a daily basis, as the payment or receipt of a variation margin on a daily basis
represents a legal or economic settlement, which results in derecognition of the associated derivatives.
›
Refer to Note 21 for more information
f. Fair value of financial instruments
UBS accounts for a significant portion of its financial assets and liabilities at fair value. Fair value is the price on the
measurement date that would be received for the sale of an asset or paid to transfer a liability in an orderly transaction
between market participants in the principal market, or in the most advantageous market in the absence of a principal
market.
›
Refer to Note 20 for more information
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Note 1 Summary of material accounting policies (continued)
Critical accounting estimates and judgments
The use of valuation techniques, modeling assumptions and estimates of unobservable market inputs in the fair valuation of financial instruments requires
significant judgment and could affect the amount of gain or loss recorded for a particular position. Valuation techniques that rely more heavily on
unobservable inputs and sophisticated models inherently require a higher level of judgment and may require adjustment to reflect factors that market
participants would consider in estimating fair value, such as close-out costs, which are presented in Note 20d.
UBS’s governance framework over fair value measurement is described in Note 20b, and UBS provides a sensitivity analysis of the estimated effects arising
from changing significant unobservable inputs in Level 3 financial instruments to reasonably possible alternative assumptions in Note 20f.
›
Refer to Note 20 for more information
g. Allowances and provisions for expected credit losses
ECL are recognized for financial assets measured at amortized cost, financial assets measured at FVOCI, fee and lease
receivables, financial guarantees, and loan commitments not measured at fair value. ECL are also recognized on the
undrawn portion of committed unconditionally revocable credit lines, which include UBS’s credit card limits and master
credit facilities, as UBS is exposed to credit risk because the borrower has the ability to draw down funds before UBS can
take credit risk mitigation actions.
Recognition of expected credit losses
ECL are recognized on the following basis.
–
Stage 1 – those instruments for which no significant increase in credit risk (SICR) has been observed (see
Significant
increase in credit risk
of lifetime ECL that would result if a default occurs in the 12 months after the reporting date, weighted by the risk of
a default occurring.
–
Stage 2 – those instruments for which an SICR is observed but which are not credit impaired: lifetime ECL are
recognized reflecting lifetime cash shortfalls that would result from all possible default events over the expected life of
a financial instrument, weighted by the risk of a default occurring. When an SICR is no longer observed, the instrument
will move back to stage 1.
–
Stage 3 – credit-impaired financial instruments (as determined by the occurrence of one or more loss events): lifetime
ECL are always recognized by estimating expected cash flows based on a chosen recovery strategy. Credit-impaired
exposures may include positions with nil allowance, for example because they are expected to be fully recoverable
through collateral held.
–
Purchased credit-impaired (PCI) – those financial instruments that are purchased at a deep discount or newly originated
with a defaulted counterparty; they remain a separate category until derecognition, with changes in lifetime ECL from
initial recognition recognized as a loss allowance.
Consistent with the requirements of IFRS 3 and IFRS 9, immediately after the application of the acquisition method to
the business combination, acquired financial instruments carried at amortized cost or FVOCI that are not deemed credit
impaired are classified as stage 1 financial instruments and a maximum 12-month ECL is recognized, resulting in a carrying
amount of the respective financial instruments below their acquisition-date fair value. As and when significant increases
in credit risk subsequently arise, these exposures will move to stage 2, and if assessed to be credit impaired, to stage 3.
All or part of a financial asset is written off if it is deemed uncollectible or forgiven. Write-offs reduce the principal amount
of a claim and are charged against related allowances for credit losses. Recoveries, in part or in full, of amounts previously
written off are credited to
Credit loss expense / (release)
.
ECL are recognized in the income statement in
Credit loss expense / (release)
. A corresponding ECL allowance is reported
as a decrease in the carrying amount of financial assets measured at amortized cost on the balance sheet. For financial
assets that are measured at FVOCI, the carrying amount is not reduced, but an accumulated amount is recognized in
Other comprehensive income
. For off-balance sheet financial instruments and other credit lines, provisions for ECL are
presented in
Provisions.
Default and credit impairment
UBS applies a single definition of default for credit risk management purposes, regulatory reporting and ECL, with a
counterparty classified as defaulted based on quantitative and qualitative criteria.
›
Refer to the “Risk management and control” section of this report for more information
Measurement of expected credit losses
IFRS 9 ECL reflect an unbiased, probability-weighted estimate based on loss expectations resulting from default events.
The method used to calculate ECL applies the following principal factors: probability of default (PD), loss given default
(LGD) and exposure at default (EAD). Parameters are generally determined on an individual financial asset level. Based
on the materiality of the portfolio, for credit card exposures and personal account overdrafts in Switzerland, a portfolio
approach is applied that derives an average PD and LGD for the entire portfolio. PDs and LGDs used in the ECL calculation
are point-in-time (PIT) based for key portfolios and consider both current conditions and expected cyclical changes. For
material portfolios, PDs and LGDs are determined for different scenarios, whereas EAD projections are treated as scenario
independent.
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Note 1 Summary of material accounting policies (continued)
For the purpose of determining the ECL-relevant parameters, UBS leverages its Basel III advanced internal ratings-based
(A-IRB) models that are also used in determining expected loss (EL) and risk-weighted assets under the Basel III framework
and Pillar 2 stress loss models. Adjustments have been made to these models and IFRS-9-related models have been
developed that consider the complexity, structure and risk profile of relevant portfolios and take account of the fact that
PDs and LGDs used in the ECL calculation are PIT based, as opposed to the corresponding Basel III through-the-cycle (TTC)
parameters. All models that are relevant for measuring expected credit losses are subject to UBS’s model validation and
oversight processes.
Probability of default:
PD represents the probability of a default over a specified time period. A 12-month PD represents
the probability of default determined for the next 12 months and a lifetime PD represents the probability of default over
the remaining lifetime of the instrument. PIT PDs are derived from TTC PDs and scenario forecasts. The modeling is region,
industry and client segment specific and considers both macroeconomic scenario dependencies and client-idiosyncratic
information.
Exposure at default:
EAD represents an estimate of the exposure to credit risk at the time of a potential default occurring,
considering expected repayments, interest payments and accruals, discounted at the EIR. Future drawdowns on facilities
are considered through a credit conversion factor (a CCF) that is reflective of historical drawdown and default patterns
and the characteristics of the respective portfolios.
Loss given default:
LGD represents an estimate of the loss at the time of a potential default occurring, taking into account
expected future cash flows from collateral and other credit enhancements, or expected payouts from bankruptcy
proceedings for unsecured claims and, where applicable, time to realization of collateral and the seniority of claims. LGD is
commonly expressed as a percentage of EAD.
Estimation of expected credit losses
Number of scenarios and estimation of scenario weights
Determination of probability-weighted ECL requires evaluating a range of diverse and relevant future economic conditions,
especially with a view to modeling the non-linear effect of assumptions about macroeconomic factors on the estimate.
To accommodate this requirement, UBS uses different economic scenarios in the ECL calculation. Each scenario is
represented by a specific scenario narrative, which is relevant considering the exposure of key portfolios to economic
risks, and for which a set of consistent macroeconomic variables is determined. The estimation of the appropriate weights
for these scenarios is predominantly judgment based. The assessment is based on a holistic review of the prevailing
economic or political conditions, which may exhibit different levels of uncertainty. It takes into account the impact of
changes in the nature and severity of the underlying scenario narratives and the projected economic variables.
The determined weights constitute the probabilities that the respective set of macroeconomic conditions will occur and
not that the chosen particular narratives with the related macroeconomic variables will materialize.
Macroeconomic and other factors
The range of macroeconomic, market and other factors that is modeled as part of the scenario determination is wide,
and historical information is used to support the identification of the key factors. As the forecast horizon increases, the
availability of information decreases, requiring an increase in judgment. For cycle-sensitive PD and LGD determination
purposes, UBS projects the relevant economic factors for a period of three years before reverting, over a specified period,
to cycle-neutral PD and LGD for longer-term projections.
Factors relevant for ECL calculation vary by type of exposure. Regional and client-segment characteristics are generally
taken into account, with a specific focus on Switzerland and the US, considering UBS’s key ECL-relevant portfolios.
For UBS, the following forward-looking macroeconomic variables represent the most relevant factors for ECL calculation:
–
gross domestic product (GDP) growth rates, given their significant effect on borrowers’ performance;
–
unemployment rates, given their significant effect on private clients’ ability to meet contractual obligations;
–
house price indices, given their significant effect on mortgage collateral valuations;
–
interest rates, given their significant effect on counterparties’ abilities to service debt;
–
consumer price indices, given their overall relevance for companies’ performance, private clients’ purchasing power
and economic stability;
–
equity indices, given that they are an important factor in UBS’s corporate rating tools; and
–
commodity price indices, given their overall relevance for entities’ performance due to the impact on operating costs.
›
Refer to Note 19 for more information
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Note 1 Summary of material accounting policies (continued)
ECL measurement period
The period for which lifetime ECL are determined is based on the maximum contractual period that UBS is exposed to
credit risk, taking into account contractual extension, termination and prepayment options. For irrevocable loan
commitments and financial guarantee contracts, the measurement period represents the maximum contractual period
for which UBS has an obligation to extend credit.
Additionally, some financial instruments include both an on-demand loan and a revocable undrawn commitment, where
the contractual cancellation right does not limit UBS’s exposure to credit risk to the contractual notice period, as the
borrower has the ability to draw down funds before UBS can take risk-mitigating actions. In such cases UBS is required
to estimate the period over which it is exposed to credit risk. This applies to UBS’s credit card limits, which do not have a
defined contractual maturity date, are callable on demand and where the drawn and undrawn components are managed
as one exposure. The exposure arising from UBS’s credit card limits is not significant and is managed at a portfolio level,
with credit actions triggered when balances are past due. An ECL measurement period of seven years is applied for credit
card limits, capped at 12 months for stage 1 balances, as a proxy for the period that UBS is exposed to credit risk.
Customary master credit agreements in the Swiss corporate market also include on-demand loans and revocable undrawn
commitments. For smaller commercial facilities, a risk-based monitoring (RbM) approach is in place that highlights
negative trends as risk events, at an individual facility level, based on a combination of continuously updated risk
indicators. The risk events trigger additional credit reviews by a risk officer, enabling informed credit decisions to be taken.
Larger corporate facilities are not subject to RbM but are reviewed at least annually through a formal credit review. UBS
has assessed these credit risk management practices and considers both the RbM approach and formal credit reviews as
substantive credit reviews resulting in a re-origination of the given facility. Following this, a 12-month measurement
period from the reporting date is used for both types of facilities as an appropriate proxy of the period over which UBS
is exposed to credit risk, with 12 months also used as a look-back period for assessing an SICR, always from the respective
reporting date.
Significant increase in credit risk
Financial instruments subject to ECL are monitored on an ongoing basis. To determine whether the recognition of
stage 1 maximum 12-month ECL continues to be appropriate, an assessment is made as to whether an SICR has
occurred since initial recognition of the financial instrument, applying both quantitative and qualitative factors.
Primarily, UBS assesses changes in an instrument’s risk of default on a quantitative basis by comparing the annualized
forward-looking and scenario-weighted lifetime PD of an instrument determined at two different dates:
–
at the reporting date; and
–
at inception of the instrument.
If, based on UBS’s quantitative modeling, an increase exceeds a set threshold, an SICR is deemed to have occurred and
the instrument is transferred to stage 2 with lifetime ECL recognized.
The threshold applied varies depending on the original credit quality of the borrower, with a higher SICR threshold set
for those instruments with a low PD at inception. The SICR assessment based on PD changes is made at an individual
financial asset level. A high-level overview of the SICR trigger, which is a multiple of the annualized remaining lifetime
PIT PD expressed in rating downgrades, is provided in the “SICR thresholds” table below. The actual SICR thresholds
applied are defined on a more granular level by interpolating between the values shown in the table.
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Note 1 Summary of material accounting policies (continued)
SICR thresholds
Internal rating at origination
of the instrument
Rating downgrades /
SICR trigger
0–3
3
4–8
2
9–13
1
›
Refer to the “Risk management and control” section of this report for more details about UBS’s internal rating system
Irrespective of the SICR assessment based on default probabilities, credit risk is generally deemed to have significantly
increased for an instrument if contractual payments are more than 30 days past due. For certain less material portfolios,
specifically the Swiss credit card portfolio, the 30-day past due criterion is used as the primary indicator of an SICR. Where
instruments are transferred to stage 2 due to the 30-day past due criterion, a minimum period of six months is applied
before a transfer back to stage 1 can be triggered, where applicable. For instruments in Personal & Corporate Banking
and Global Wealth Management Region Switzerland that are between 90 and 180 days past due but have not been
reclassified to stage 3, a one-year period is applied before a transfer back to stage 1 can be triggered.
Additionally, based on individual counterparty-specific indicators, external market indicators of credit risk or general
economic conditions, counterparties may be moved to a watch list, which is used as a secondary qualitative indicator for
an SICR. Exception management is further applied, allowing for individual and collective adjustments on exposures
sharing the same credit risk characteristics to take account of specific situations that are not otherwise fully reflected.
In general, the overall SICR determination process does not apply to Lombard loans, securities financing transactions and
certain other asset-based lending transactions, because of the risk management practices adopted, including daily
monitoring processes with strict margining. If margin calls are not satisfied, a position is closed out and classified as a
stage 3 position. In exceptional cases, an individual adjustment and a transfer into stage 2 may be made to take account
of specific facts.
Credit risk officers are responsible for the identification of an SICR, which for accounting purposes is in some respects
different from internal credit risk management processes. This difference mainly arises because ECL accounting
requirements are instrument specific, such that a borrower can have multiple exposures allocated to different stages, and
maturing loans in stage 2 will migrate to stage 1 upon renewal irrespective of the actual credit risk at that time. Under a
risk-based approach, a holistic counterparty credit assessment and the absolute level of risk at any given date will
determine what risk-mitigating actions may be warranted.
›
Refer to the “Risk management and control” section of this report for more information
Critical accounting estimates and judgments
The calculation of ECL requires management to apply significant judgment and make estimates and assumptions that can result in significant changes to the
timing and the amount of ECL recognized.
Determination of a significant increase in credit risk
IFRS 9 does not include a definition of what constitutes an SICR, with UBS’s assessment considering qualitative and quantitative criteria. An IFRS 9 ECL
Management Forum has been established to review and challenge the SICR results.
Scenarios, scenario weights and macroeconomic variables
ECL reflect an unbiased and probability-weighted amount, which UBS determines by evaluating a range of possible outcomes. Management selects forward-
looking scenarios that include relevant macroeconomic variables and management’s assumptions around future economic conditions. IFRS 9 Scenario
Sounding Sessions, in addition to the IFRS 9 ECL Management Forum, are in place to derive, review and challenge the scenario selection and weights, and
to determine whether any additional post-model adjustments are required that may significantly affect ECL.
ECL measurement period
Lifetime ECL are generally determined based upon the contractual maturity of the transaction, which significantly affects ECL. For credit card limits and Swiss
callable master credit facilities, judgment is required, as UBS must determine the period over which it is exposed to credit risk. A seven-year period is applied
for credit card limits, capped at 12 months for stage 1 positions, and a 12-month period applied for master credit facilities.
Modeling and post-model adjustments
A number of complex models have been developed or modified to calculate ECL, with additional post-model adjustments required that may significantly
affect ECL. The models are subject to UBS’s Governance of Models policy and the related control framework. The post-model adjustments are approved by
the ECL Management Forum and ratified by the Group Chief Financial Officer and Group Chief Risk Officer.
A sensitivity analysis covering key macroeconomic variables, scenario weights and SICR trigger points on ECL measurement is provided in Note 19f.
›
Refer to Note 19 for more information
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Note 1 Summary of material accounting policies
(continued)
h. Restructured and modified financial assets
When payment default is expected, or where default has already occurred, UBS may grant concessions to borrowers
experiencing financial difficulties that it would not consider in the normal course of its business, such as preferential
interest rates, extension of maturity, modifying the schedule of repayments, debt / equity swap, subordination, etc.
›
Refer to the “Risk management and control” section of this report for more information
Modifications may result in an alteration of future contractual cash flows and can occur within UBS’s normal risk tolerance
or as part of a credit restructuring where a counterparty is in financial difficulties. The restructuring or modification of a
financial asset could lead to a substantial change in the terms and conditions, resulting in the original financial asset
being derecognized and a new financial asset being recognized, measured initially at fair value. Where the modification
does not result in derecognition, any difference between the modified contractual cash flows discounted at the original
EIR and the existing gross carrying amount of the given financial asset is recognized in the income statement as of the
date of modification.
i. Offsetting
UBS presents recognized financial assets and liabilities net on its balance sheet only if (i) it has a legally enforceable right
to set off the recognized amounts and (ii) it intends either to settle on a net basis or to realize the asset and settle the
liability simultaneously. Netted positions include, for example, certain derivatives and repurchase and reverse repurchase
transactions with various counterparties, exchanges and clearing houses.
In assessing whether UBS intends to either settle on a net basis, or to realize the asset and settle the liability
simultaneously, emphasis is placed on the effectiveness of operational settlement mechanics in eliminating substantially
all credit and liquidity exposure between the counterparties. This condition precludes offsetting on the balance sheet for
substantial amounts of UBS’s financial assets and liabilities, even though they may be subject to enforceable netting
arrangements. Securities financing transactions are presented net only to the extent that the settlement mechanism
eliminates, or results in insignificant, credit and liquidity risk, and processes the receivables and payables in a single
settlement process or cycle.
›
Refer to Note 21
for more information
j. Hedge accounting
The Group applies hedge accounting requirements of IFRS 9 where the criteria for documentation and hedge
effectiveness are met. If a hedge relationship no longer meets the criteria for hedge accounting, hedge accounting is
discontinued. Voluntary discontinuation of hedge accounting is not permitted under IFRS 9.
Fair value hedges of interest rate risk related to debt instruments and loan assets
The fair value change of the hedged item attributable to a hedged risk is recognized as an adjustment to the carrying
amount of a hedged item measured at amortized cost and already reflected in the measurement of a hedged item
measured at FVOCI, with such changes recognized in the income statement (as opposed to
Other comprehensive income
for a hedged item measured at FVOCI) along with the change in the fair value of the hedging instrument.
Fair value hedges of FX risk related to debt instruments
The fair value change of the hedged item attributable to the hedged risk is reflected in the measurement of the hedged
item and recognized in the income statement along with the change in the fair value of the hedging instrument. The
foreign currency basis spread of cross-currency swaps designated as hedging derivatives is excluded from the designation
and accounted for as a cost of hedging with amounts deferred in
Other comprehensive income
Equity
. These
amounts are released to the income statement over the term of the hedged item.
Discontinuation of fair value hedges
When fair value hedges are discontinued for reasons other than derecognition of the hedged item, the effective interest
rate of the hedged item is adjusted to amortize the fair value of the hedge risk at the point of discontinuation through
the income statement over the remaining life of the hedged item. If the hedged item is derecognized, the derecognition
gain or loss includes the impact of any fair value hedge adjustments. The deferred cost of hedging amount is reclassified
from
Other comprehensive income
Equity
derecognized.
Cash flow hedges of forecast transactions
Fair value gains or losses associated with the effective portion of derivatives designated as cash flow hedges for cash flow
repricing risk are recognized initially in
Other comprehensive income
Equity
Interest income
from financial instruments measured at amortized cost and fair value through other comprehensive income
Interest
expense from financial instruments measured at amortized cost
affect profit or loss, including discontinued hedges for which forecast cash flows are expected to occur. If the forecast
transactions are no longer expected to occur, the deferred gains or losses are immediately reclassified to the income
statement.
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Note 1 Summary of material accounting policies
(continued)
Hedges of net investments in foreign operations
Gains or losses on the hedging instrument relating to the effective portion of a hedge are recognized directly in
Other
comprehensive income
Equity
, while any gains or losses relating to the ineffective and / or undesignated portion
(for example, the interest element of a forward contract) are recognized in the income statement. Upon disposal or partial
disposal of the foreign operation, the cumulative value of any such gains or losses recognized in
Equity
the entity
is reclassified to
Other income
.
›
Refer to Note 24 for more information
3) Fee and commission income and expenses
UBS earns fee income from the diverse range of services it provides to its clients. Fee income can be divided into two
broad categories: fees earned from services that are provided over a certain period of time, such as management of
clients’ assets, custody services and certain advisory services; and fees earned from PIT services, such as underwriting fees,
deal-contingent merger and acquisitions fees, and brokerage fees (e.g. securities and derivatives execution and clearing).
UBS recognizes fees earned from PIT services when it has fully provided the service to the client. Where the contract
requires services to be provided over time, income is recognized on a systematic basis over the life of the agreement. This
includes fees related to loan commitments where it is not probable that a specific lending arrangement will be entered
into, which are recognized over the life of the commitment.
Consideration received is allocated to the separately identifiable performance obligations in a contract. Owing to the
nature of UBS’s business, contracts that include multiple performance obligations are typically those that are considered
to include a series of similar performance obligations fulfilled over time with the same pattern of transfer to the client,
e.g. management of client assets and custodial services. As a consequence, UBS is not required to apply significant
judgment in allocating the consideration received across the various performance obligations.
PIT services are generally for a fixed price or dependent on deal size, e.g. a fixed number of basis points of trade size,
where the amount of revenue is known when the performance obligation is met. Fixed-over-time fees are recognized on
a straight-line basis over the performance period. Custodial and asset management fees can be variable through reference
to the size of the customer portfolio. However, they are generally billed on a monthly or quarterly basis once the
customer’s portfolio size is known or known with near certainty and therefore also recognized ratably over the
performance period. UBS does not recognize performance fees related to management of clients’ assets or fees related
to contingencies beyond UBS’s control until such uncertainties are resolved.
UBS’s fees are generally earned from short-term contracts. As a result, UBS’s contracts do not include a financing
component or result in the recognition of significant receivables or prepayment assets. Furthermore, due to the short-
term nature of such contracts, UBS has not capitalized any material costs to obtain or fulfill a contract or generated any
significant contract assets or liabilities.
UBS presents expenses primarily in line with their nature in the income statement, differentiating between expenses that
are directly attributable to the satisfaction of specific performance obligations associated with the generation of revenues,
which are generally presented within
Total revenues
Fee and commission expense
, and those that are related to
personnel, general and administrative expenses, or depreciation and amortization, which are presented within
Operating
expenses
. For derivatives execution and clearing services (where UBS acts as an agent), UBS only recognizes its specific
fees in the income statement, with fees payable to other parties not recognized as an expense but instead directly offset
against the associated income collected from the given client.
›
Refer to Note 4 for more information, including the disaggregation of revenues
4) Share-based and other deferred compensation plans
UBS recognizes expenses for deferred compensation awards over the period that the employee is required to provide
service to become entitled to the award. Where the service period is shortened, for example in the case of employees
affected by restructuring programs or mutually agreed termination provisions, recognition of such expense is accelerated
to the termination date. Where no future service is required, such as for employees who are eligible for retirement or
who have met certain age and length-of-service criteria, the services are presumed to have been received and
compensation expense is recognized over the performance year or, in the case of off -cycle awards, immediately on the
grant date.
Share-based compensation plans
Share-based compensation expense is measured by reference to the fair value of the equity instruments on the date of
grant, taking into account the terms and conditions inherent in the award, including, where relevant, dividend rights,
transfer restrictions in effect beyond the vesting date, market conditions, and non-vesting conditions.
For equity-settled awards, fair value is not remeasured unless the terms of the award are modified such that there is an
incremental increase in value. Expenses are recognized, on a per-tranche basis, over the service period based on an
estimate of the number of instruments expected to vest and are adjusted to reflect the actual outcomes of service or
performance conditions.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 268
Note 1 Summary of material accounting policies (continued)
For equity-settled awards, forfeiture events resulting from a breach of a non-vesting condition (i.e. one that does not
relate to a service or performance condition) do not result in any adjustment to the share-based compensation expense.
For cash-settled share-based awards, fair value is remeasured at each reporting date, so that the cumulative expense
recognized equals the cash distributed.
Other deferred compensation plans
Compensation expense for other deferred compensation plans is recognized on a per-tranche or straight-line basis,
depending on the nature of the plan. The amount recognized is measured based on the present value of the amount
expected to be paid under the plan and is remeasured at each reporting date, so that the cumulative expense recognized
equals the cash or the fair value of respective financial instruments distributed.
›
Refer to Note 26 for more information
5) Post-employment benefit plans
Defined benefit plans
Defined benefit plans specify an amount of benefit that an employee will receive, which usually depends on one or more
factors, such as age, years of service and compensation. The defined benefit liability recognized in the balance sheet is
the present value of the defined benefit obligation, measured using the projected unit credit method, less the fair value
of the plan’s assets at the balance sheet date, with changes resulting from remeasurements recorded immediately in
Other comprehensive income
. If the fair value of the plan’s assets is higher than the present value of the defined benefit
obligation, the recognition of the resulting net asset is limited to the present value of economic benefits available in the
form of refunds from the plan or reductions in future contributions to the plan. Calculation of the net defined benefit
obligation or asset takes into account the specific features of each plan, including risk sharing between employee and
employer, and is calculated periodically by independent qualified actuaries.
Defined contribution plans
A defined contribution plan pays fixed contributions into a separate entity from which post-employment and other
benefits are paid. UBS has no legal or constructive obligation to pay further amounts if the plan does not hold sufficient
assets to pay employees the benefits relating to employee service in the current and prior periods. Compensation expense
is recognized when the employees have rendered services in exchange for contributions. This is generally in the year of
contribution. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future
payments is available.
›
Refer to Note 25 for more information
6) Income taxes
UBS is subject to the income tax laws of Switzerland and those of the non-Swiss jurisdictions in which UBS has business
operations.
The Group’s provision for income taxes is composed of current and deferred taxes. Current income taxes represent taxes
to be paid or refunded for the current period or previous periods.
Deferred tax assets (DTAs) and deferred tax liabilities (DTLs) are recognized for temporary differences between the carrying
amounts and tax bases of assets and liabilities that will result in deductible or taxable amounts, respectively in future
periods. DTAs may also arise from other sources, including unused tax losses and unused tax credits. DTAs and DTLs are
measured using the applicable tax rates and laws that have been enacted or substantively enacted by the end of the
reporting period and that will be in effect when such differences are expected to reverse.
DTAs are recognized only to the extent it is probable that sufficient taxable profits will be available against which these
differences can be used. When an entity or tax group has a history of recent losses, DTAs are only recognized to the
extent that there are sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable
profit will be available against which the unused tax losses can be utilized.
Deferred and current tax assets and liabilities are offset when: (i) they arise in the same tax reporting group; (ii) they relate
to the same tax authority; (iii) the legal right to offset exists; and (iv) with respect to current taxes they are intended to
be settled net or realized simultaneously.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 269
Note 1 Summary of material accounting policies (continued)
Current and deferred taxes are recognized as income tax benefit or expense in the income statement, except for current
and deferred taxes recognized in relation to: (i) the acquisition of a subsidiary (for which such amounts would affect the
amount of goodwill arising from the acquisition); (ii) gains and losses on the sale of treasury shares (for which the tax
effects are recognized directly in
Equity
); (iii) unrealized gains or losses on financial instruments that are classified at
FVOCI; (iv) changes in fair value of derivative instruments designated as cash flow hedges; (v) remeasurements of defined
benefit plans; or (vi) certain foreign currency translations of foreign operations. Amounts relating to points (iii) through
(vi) above are recognized in
Other comprehensive income
Equity
.
UBS reflects the potential effect of uncertain tax positions for which acceptance by the relevant tax authority is not
considered probable by adjusting current or deferred taxes, as applicable, using either the most likely amount or expected
value methods, depending on which method is deemed a better predictor of the basis on which, and extent to which,
the uncertainty will be resolved.
Critical accounting estimates and judgments
Tax laws are complex, and judgment and interpretations about the application of such laws are required when accounting for income taxes. UBS considers
the performance of its businesses and the accuracy of historical forecasts and other factors when evaluating the recoverability of its DTAs, including the
remaining tax loss carry-forward period, and its assessment of expected future taxable profits in the forecast period used for recognizing DTAs. Estimating
future profitability and business plan forecasts is inherently subjective and is particularly sensitive to future economic, market and other conditions.
Forecasts are reviewed annually, but adjustments may be made at other times, if required. If recent losses have been incurred, convincing evidence is
required to prove there is sufficient future profitability given that the value of UBS’s DTAs may be affected, with effects primarily recognized through the
income statement.
In addition, judgment is required to assess the expected value of uncertain tax positions and the related probabilities, including interpretation of tax laws,
the resolution of any income-tax-related appeals and litigation.
›
Refer to Note 8 for more information
7) Investments in associates
Interests in entities where UBS has significant influence over the financial and operating policies of these entities but does
not have control are classified as investments in associates and are accounted for under the equity method of accounting.
Typically, UBS has significant influence when it holds, or has the ability to hold, between 20% and 50% of an entity’s
voting rights. Investments in associates are initially recognized at cost, and the carrying amount is increased or decreased
after the date of acquisition to recognize the Group’s share of the investee’s comprehensive income and dividends
received and adjusted for any impairment losses. The net investment in an associate is impaired if there is objective
evidence of a loss event and the carrying amount of the investment in the associate exceeds its recoverable amount.
›
Refer to Note 27 for more information
8) Property, equipment and software
Property, equipment and software
development costs are capitalized only when the costs can be measured reliably and it is probable that future economic
benefits will arise. Depreciation of property, equipment and software begins when they are available for use and is
calculated on a straight-line basis over an asset’s estimated useful life.
Property, equipment and software are generally tested for impairment at the appropriate cash-generating unit level,
alongside goodwill and intangible assets as described in item 9 in this Note. An impairment charge is recognized for such
assets if the recoverable amount is below its carrying amount. The recoverable amounts of such assets, other than
property that has a market price, are generally determined using a replacement cost approach that reflects the amount
that would be currently required by a market participant to replace the service capacity of the asset. If such assets are no
longer used, they are tested individually for impairment.
›
Refer to Note 11 for more information
9) Goodwill and other separately identifiable intangible assets
Goodwill represents the excess of the consideration over the fair value of identifiable assets, liabilities and contingent
liabilities acquired that arises in a business combination. Goodwill is not amortized but is assessed for impairment at the end
of each reporting period, or when indicators of impairment exist. UBS tests goodwill for impairment annually, irrespective
of whether there is any indication of impairment. An impairment charge is recognized in the income statement if the
carrying amount exceeds the recoverable amount of a cash-generating unit.
Negative goodwill, generally determined based on the difference between the fair values for the identifiable assets
acquired and liabilities assumed and consideration transferred, is recognized in the income statement on the acquisition
date.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 270
Note 1 Summary of material accounting policies (continued)
Separately from goodwill, UBS recognizes the identifiable intangible assets acquired in a business combination, including
those that were not previously recognized in the financial statements of the acquiree. Amortization of these intangible
assets is recognized on a straight-line basis over their estimated useful life. These assets are tested for impairment at the
appropriate cash-generating-unit level.
Critical accounting estimates and judgments
UBS‘s methodology for goodwill impairment testing is based on a model that is most sensitive to the following key assumptions: (i) forecasts of earnings
available to shareholders (typically estimated on a discrete basis for years one to three); (ii) changes in the discount rates; and (iii) changes in the long-term
growth rate.
Earnings available to shareholders are estimated on the basis of forecast results, which are part of the business plan approved by the BoD. The discount
rates and growth rates are determined using external information, and also considering inputs from both internal and external analysts and the view of
management.
The key assumptions used to determine the recoverable amounts of each cash-generating unit are tested for sensitivity by applying reasonably possible
changes to those assumptions.
›
Refer to Notes
2
and
10) Provisions and contingent liabilities
Provisions are liabilities of uncertain timing or amount, and are generally recognized in accordance with IAS 37,
Provisions,
Contingent Liabilities and Contingent Assets
, when: (i) UBS has a present obligation as a result of a past event; (ii) it is
probable that an outflow of resources will be required to settle the obligation; and (iii) a reliable estimate of the amount
of the obligation can be made. IAS 37 provisions are measured considering the best estimate of the consideration required
to settle the present obligation at the balance sheet date.
When conditions required to recognize a provision are not met, a contingent liability is disclosed, unless the likelihood of
an outflow of resources is remote. Contingent liabilities are also disclosed for possible obligations that arise from past
events, the existence of which will be confirmed only by uncertain future events not wholly within the control of UBS.
Contingent liabilities, more specifically in relation to litigations, recognized in a business combination are initially
measured at fair value. Subsequently, they are measured at the higher of the initial fair value and the amount that would
be recognized in accordance with the requirements for provisions outlined above, until the contingency is resolved.
Critical accounting estimates and judgments
Recognition of provisions often involves significant judgment in assessing the existence of an obligation that results from past events and in estimating the
probability, the timing and the amount of any outflows of resources. This is particularly the case for litigation, regulatory and similar matters, which, due to
their nature, are subject to many uncertainties, making their outcome difficult to predict.
The amount of any provision recognized is sensitive to the assumptions used, and there could be a wide range of possible outcomes for any particular
matter.
Management regularly reviews all the available information regarding such matters, including legal advice, to assess whether the recognition criteria for
provisions have been satisfied and to determine the timing and the amount of any potential outflows.
›
Refer to Note
17
11) Foreign currency translation
Transactions denominated in a foreign currency are translated into the functional currency of the reporting entity at the
spot exchange rate on the date of the transaction. At the balance sheet date, all monetary assets, including those at
FVOCI, and monetary liabilities denominated in foreign currency are translated into the functional currency using the
closing exchange rate. Translation differences are reported in
Other net income from financial instruments measured at
fair value through profit or loss
.
Non-monetary items measured at historical cost are translated at the exchange rate on the date of the transaction.
Upon consolidation, assets and liabilities of foreign operations are translated into US dollars, UBS’s presentation currency, at
the closing exchange rate on the balance sheet date, and income and expense items and other comprehensive income are
translated at the average rate for the period. The resulting foreign currency translation differences are recognized in
Equity
and reclassified to the income statement when UBS disposes of the foreign operation, either partially or in its entirety, and
UBS no longer controls the foreign operation.
Share capital issued, share premium and treasury shares held are translated at the historic average rate, with the difference
between the historic average rate and the spot rate realized upon repayment of share capital or disposal of treasury shares
reported as
Share premium.
Other comprehensive income
and financial assets measured at FVOCI are translated at the closing exchange rate as of the balance sheet dates, with any
translation effects adjusted through
Retained earnings
.
›
Refer to Note 31 for more information
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 271
Note 1 Summary of material accounting policies
(continued)
12) UBS Group AG shares held (treasury shares)
UBS Group AG shares held by the Group, including those purchased as part of market-making activities, are presented
in
Equity
Treasury shares
Equity
The difference between the proceeds from sales of treasury shares and their weighted average cost (net of tax, if any) is
reported as
Share premium
.
13) Cash and cash equivalents
For the purposes of the statement of cash flows, cash and cash equivalents consist of balances with an original maturity
of three months or less including cash, money market paper and balances with central and other banks.
In certain circumstances cash and cash equivalent balances held by UBS are not available for the use by the Group, for
example amounts placed at central banks to meet local statutory minimum reserve requirements, balances protected
under client asset segregation rules and balances pledged under the depositor protection schemes.
b) Changes in IFRS Accounting Standards and Interpretations
Disclosures about Uncertainties in the Financial statements
In November 2025, the IASB issued illustrative examples
climate-related examples to illustrate how requirements in IFRS Accounting Standards are applied to report the effects of
uncertainties in the financial statements. Examples have no stated effective date. The guidance provided through these
examples is consistent with the manner in which UBS prepares its financial statements.
IFRS 18,
Presentation and Disclosure in Financial Statements
In April 2024, the IASB issued a new standard, IFRS 18,
Presentation and Disclosure in Financial Statements
, which
replaces IAS 1,
Presentation of Financial Statements
. The main changes introduced by IFRS 18 relate to:
–
the structure of income statements;
–
new disclosure requirements for management performance measures; and
–
enhanced guidance on aggregation and disaggregation of information on the face of financial statements and in the
notes thereto.
IFRS 18 is effective from 1 January 2027 and will also apply to comparative information. UBS will apply these new
requirements from 1 January 2027. UBS is assessing the impact of the new requirements on its reporting but expects it
to be limited. UBS will evaluate the grouping of items in the primary financial statements and in the notes thereto based
on new principles of aggregation and disaggregation in IFRS 18.
Amendments to IFRS 9,
Financial Instruments
, and IFRS 7,
Financial Instruments: Disclosures
In May 2024, the IASB issued Amendments to the Classification and Measurement of Financial Instruments –
Amendments to IFRS 9 and IFRS 7 (the Amendments).
The Amendments relate to:
–
assessment of contractual cash flow characteristics in classifying financial assets, including those with environmental,
social and corporate governance and similar features, non-recourse features, and contractually linked instruments;
–
derecognition of financial instruments, including the introduction of an accounting policy election to derecognize
financial liabilities settled through electronic transfer systems, if certain conditions are met; and
–
disclosure of information about financial instruments with contingent features that can change the amount of
contractual cash flows, as well as equity instruments designated at fair value through other comprehensive income.
The Amendments are effective from 1 January 2026 and are expected to have limited impact on UBS’s financial
statements.
Other amendments to IFRS Accounting Standards
The IASB has issued a number of minor amendments to IFRS Accounting Standards, effective from 1 January 2025 and
later. These amendments do not have or are not expected to have a significant effect on UBS when they are adopted.
Annual Report 2025
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Note 2a Segment reporting
UBS’s businesses are organized globally into five business divisions: Global Wealth Management, Personal & Corporate
Banking, Asset Management, the Investment Bank, and Non-core and Legacy. All five business divisions are supported
by the Group functions and qualify as reportable segments for the purpose of segment reporting. Together with the
Group functions, the five business divisions reflect the management structure of the Group.
–
Global Wealth Management
select institutional clients. Its offering ranges from investment management to estate planning and corporate finance
advice, in addition to specific wealth management and banking products and services.
–
Personal & Corporate Banking
retirement, financing, investments and strategic transactions, to private, corporate and institutional clients, in
Switzerland, through its branch network and digital channels.
–
Asset Management
strategies across all major traditional and alternative asset classes and investing styles to institutions, wholesale
intermediaries and Global Wealth Management clients.
–
The
Investment Bank
clients, helping them raise capital, invest and manage risks. Its offering includes equities, foreign exchange, precious
metals, research, advisory and capital markets, complemented by a focused rates and credit platform.
–
Non-core and Legacy
not aligned with UBS’s long-term strategic priorities or risk appetite, including associated financial and non-financial
assets, operating expenses, and funding costs. A small part of the division is made up of positions from UBS’s former
Non-core and Legacy Portfolio and some other legacy UBS assets and liabilities that were assessed as non-strategic in
the context of the acquisition of the Credit Suisse Group.
–
The Group functions are support and control functions that provide services to the Group. Virtually all costs incurred
by the Group functions are allocated to the business divisions, leaving a residual amount referred to as
Group Items
in the segment reporting. Group functions include the following major areas: Group Services (which consists of Group
Technology, Group Compliance and Operational Risk Control, Group Finance, Group Risk Control, Group Human
Resources and Corporate Services, Group Corporate Communications and Group Brand & Marketing, Group Legal,
the Group Integration Office, Group Sustainability and Impact, and the Chief Strategy Office) and Group Treasury.
Financial information about the five business divisions and Group Items is presented separately in internal management
reports to the Group Executive Board (the GEB), which is considered the “chief operating decision-maker” pursuant to
IFRS 8,
Operating Segments
.
UBS’s internal accounting policies, which include management accounting policies and service level agreements,
determine the revenues and expenses directly attributable to each reportable segment. Transactions between the
reportable segments are carried out at internally agreed rates and are reflected in the operating results of the reportable
segments. Revenue-sharing agreements are used to allocate external client revenues to reportable segments where
several reportable segments are involved in the value creation chain. Total intersegment revenues for the Group are
immaterial, as the majority of the revenues are allocated across the segments by means of revenue-sharing agreements.
Interest income earned from managing UBS’s consolidated equity is allocated to the reportable segments based on
average attributed equity and currency composition. Assets and liabilities of the reportable segments are funded through
and invested with Group functions, and the net interest margin is reflected in the results of each reportable segment.
Segment assets are based on a third-party view and do not include intercompany balances. This view is in line with
internal reporting to the GEB. If one operating segment is involved in an external transaction together with another
operating segment or Group function, additional criteria are considered to determine the segment that will report the
associated assets. This will include a consideration of which segment’s business needs are being addressed by the
transaction and which segment is providing the funding and / or resources. Allocation of liabilities follows the same
principles.
Non-current assets disclosed for segment reporting purposes represent assets that are expected to be recovered more
than 12 months after the reporting date, excluding financial instruments, deferred tax assets and post-employment
benefits.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 273
Note 2a Segment reporting (continued)
Segment reporting
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
UBS
For the year ended 31 December 2025
Net interest income
(69 )
(2,938 )
(72 )
(1,514 )
Non-interest income
Total revenues
(1,190 )
Credit loss expense / (release)
(1 )
Operating expenses
(2 )
Operating profit / (loss) before tax
(1,199 )
(1,190 )
Tax expense / (benefit)
Net profit / (loss)
Additional information
Total assets
Additions to non-current assets
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
UBS
For the year ended 31 December 2024
Net interest income
(63 )
(3,597 )
(2,365 )
Non-interest income
Total revenues
(975 )
Credit loss expense / (release)
(16 )
(1 )
(2 )
Operating expenses
(220 )
Operating profit / (loss) before tax
(1,976 )
(752 )
Tax expense / (benefit)
Net profit / (loss)
Additional information
Total assets
Additions to non-current assets
USD m
Global
Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Negative
goodwill
UBS
For the year ended 31 December 2023
Net interest income
(40 )
(2,915 )
(2,144 )
Non-interest income
Total revenues
(495 )
Negative goodwill
Credit loss expense / (release)
Operating expenses
Operating profit / (loss) before tax
(72 )
(4,587 )
(938 )
Tax expense / (benefit)
Net profit / (loss)
Additional information
Total assets
Additions to non-current assets
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 274
Note 2b Segment reporting by geographic location
The operating regions shown in the table below correspond to the regional management structure of the Group. The
allocation of total revenues to these regions reflects, and is consistent with, the basis on which the business is managed
and its performance is evaluated. These allocations involve assumptions and judgments that management considers to
be reasonable and may be refined to reflect changes in estimates or management structure. The main principles of the
allocation methodology are that client revenues are attributed to the domicile of the given client, and trading and
portfolio management revenues are attributed to the country where the risk is managed. This revenue attribution is
consistent with the mandate of the regional Presidents. Certain revenues, such as those related to Non-core and Legacy
and Group Items, are included in the
Global
The geographical analysis of non-current assets is based on the location of the entity in which the given assets are
recorded.
For 2023, the allocation of total revenues by geographical region for Credit Suisse is not available on the same allocation
basis as for the UBS Group and the cost to develop this information would have been excessive. Therefore, as permitted
under IFRS 8, the respective information is not disclosed. UBS AG and Credit Suisse AG disclosed total revenues by
geographical region in their 2023 annual reports according to their respective allocation methodologies.
›
Refer to “UBS AG consolidated financial information” in the “Consolidated financial statements” section of the UBS AG Annual
Report 2023 for more information on total revenues by geographical region for UBS AG
›
Refer to the Credit Suisse AG consolidated financial statements 2023, available at
https://www.ubs.com/global/en/investor-
relations/complementary-financial-information/disclosure-legal-entities/credit -suisse-ag-consolidated.html
, for more information
on total revenues by geographical region for Credit Suisse AG
Segment reporting by geographic location
For the year ended 31 December 2025
Total revenues
Total non-current assets
USD bn
Share %
USD bn
Share %
Americas
1
Asia Pacific
EMEA (excluding Switzerland)
Switzerland
Global
2
(0.4 )
(1 )
Total
For the year ended 31 December 2024
Total revenues
Total non-current assets
USD bn
Share %
USD bn
Share %
Americas
1
Asia Pacific
EMEA (excluding Switzerland)
Switzerland
Global
3
Total
For the year ended 31 December 2023
Total revenues
Total non-current assets
USD bn
Share %
USD bn
Share %
Americas
1
Asia Pacific
EMEA (excluding Switzerland)
Switzerland
Global
Total
1 Predominantly related to the US. 2 Includes certain revenues in Global Wealth Management that were not allocated to geographical regions. 3 Includes certain revenues in Asset Management and Global Wealth
Management that were not allocated to geographical regions.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 275
Income statement notes
Note 3 Net interest income and other net income from financial instruments measured at fair value through
profit or loss
Net interest income and Other net income from financial instruments measured at fair value through profit or loss
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Net interest income from financial instruments measured at fair value through profit or loss and other
Other net income from financial instruments measured at fair value through profit or loss
1
Total net income from financial instruments measured at fair value through profit or loss and other
Net interest income
Interest income from loans and deposits
2
Interest income from securities financing transactions measured at amortized cost
3
Interest income from other financial instruments measured at amortized cost
Interest income from debt instruments measured at fair value through other comprehensive income
Interest resulting from derivative instruments designated as cash flow hedges
(1,229 )
(2,049 )
(2,064 )
Total interest income from financial instruments measured at amortized cost and fair value through other comprehensive income
Interest expense on loans and deposits
4
Interest expense on securities financing transactions measured at amortized cost
5
Interest expense on debt issued
Interest expense on lease liabilities
Total interest expense from financial instruments measured at amortized cost
Total net interest income from financial instruments measured at amortized cost and fair value through other comprehensive income
Total net interest income from financial instruments measured at fair value through profit or loss and other
Total net interest income
1 Includes net losses from financial liabilities designated at fair value of USD
m (net losses of USD
m in 2024 and net losses of USD
m in 2023). These amounts exclude fair value changes on hedges
related to financial liabilities designated at fair value, and foreign currency translation effects arising from translating foreign currency transactions into the respective functional currency, both of which are reported
within Other net income from financial instruments measured at fair value through profit or loss. Net losses from financial liabilities designated at fair value included net losses of USD
m (net losses of USD
m
and net losses of USD
m in 2024 and 2023, respectively) from financial liabilities related to unit-linked investment notes issued by UBS’s Asset Management business division. These gains / (losses) are fully
offset within Other net income from financial instruments measured at fair value through profit or loss by the fair value change on the financial assets hedging the unit-linked investment contracts, which are not
disclosed as part of net losses from financial liabilities designated at fair value. 2 Consists of interest income from cash and balances at central banks, amounts due from banks and customers, and cash collateral
receivables on derivative instruments, as well as negative interest on amounts due to banks, customer deposits, and cash collateral payables on derivative instruments. 3 Includes negative interest, including fees,
on payables from securities financing transactions measured at amortized cost. 4 Consists of interest expense on amounts due to banks, cash collateral payables on derivative instruments, and customer deposits,
as well as negative interest on cash and balances at central banks, amounts due from banks, and cash collateral receivables on derivative instruments. 5 Includes interest expense on payables from securities
financing transactions and negative interest, including fees, on receivables from securities financing transactions measured at amortized cost.
Note 4 Net fee and commission income
Net fee and commission income
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Underwriting fees
M&A and corporate finance fees
Brokerage fees
Portfolio management, investment fund and related services fees
1
Other
Total fee and commission income
2
of which: recurring
of which: transaction-based
of which: performance-based
Fee and commission expense
3
Net fee and commission income
of which: recurring net fee and commission income
of which: Global Wealth Management
of which: Personal & Corporate Banking
of which: Asset Management
of which: transaction-based net fee and commission income
of which: Global Wealth Management
of which: Personal & Corporate Banking
of which: Asset Management
of which: performance-based net fee and commission income
of which: Asset Management
1 Fees for portfolio management and related services and investment fund fees are presented on a combined basis. Comparative-period information has been aligned with the information presented for the year ended
31 December 2025. This category includes fees earned on portfolio management mandates with clients and management and performance fees earned on UBS-managed funds and third-party-managed funds. 2 For
the year ended 31 December 2025 reflects third-party fee and commission income of USD
m for Global Wealth Management, USD
m for Personal & Corporate Banking, USD
m for Asset Management,
USD
m for the Investment Bank, USD
m for Non-core and Legacy, and USD
m for Group Items (for the year ended 31 December 2024: USD
m for Global Wealth Management, USD
m for
Personal & Corporate Banking, USD
m for Asset Management, USD
m for the Investment Bank, USD
m for Non-core and Legacy, and negative USD
m for Group Items; for the year ended 31 December
2023: USD
m for Global Wealth Management, USD
m for Personal & Corporate Banking, USD
m for Asset Management, USD
m for the Investment Bank, USD
m for Non-core and Legacy,
and negative USD
m for Group Items). 3 Includes brokerage expense for the year ended 31 December 2025 of USD
m (for year ended 31 December 2024: USD
m; for the year ended 31 December 2023:
USD
m).
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 276
Note 5 Other income
Other income
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Associates, joint ventures and subsidiaries
Net gains / (losses) from acquisitions and disposals of subsidiaries
1
2
Net gains / (losses) from disposals of investments in associates and joint ventures
Share of net profits of associates and joint ventures
3
(348 )
Impairments related to associates
(2 )
Total
(319 )
Net gains / (losses) from disposals of financial assets measured at fair value through other comprehensive income
Income from properties
4
Net gains / (losses) from properties held for sale
(17 )
Other
5
(483 )
6
7
Total other income
(96 )
1 Includes foreign exchange gains / (losses) reclassified from other comprehensive income related to the disposal or closure of foreign operations. Refer to Note 28 for more information about UBS’s acquisitions and
disposals of subsidiaries and businesses. 2 Includes a gain of USD
m from the sale of a stake in a subsidiary, Credit Suisse Securities (China) Limited, and a gain of USD
m recognized upon the completion of
the sale of the US mortgage servicing business of Credit Suisse, Select Portfolio Servicing, which was managed in Non-core and Legacy. Refer to Note 28 for more information. 3 Includes a gain of USD
m related
to UBS’s share of the income recorded by Swisscard AECS GmbH for the sale of the Credit Suisse card portfolios to UBS. Refer to Note 28 for more information. 4 Includes rent received from third parties. 5 Included
in 2025 are net losses of USD
m related to the repurchase of UBS’s own debt instruments (compared with net gains of USD
m in 2024 and net gains of USD
m in 2023). The net losses in 2025 include a
USD
m net loss from the repurchase of legacy Credit Suisse debt instruments, as the repurchase price exceeded the amortized-cost carrying value (the net loss reflects a loss of USD
m before PPA adjustments,
partly offset by a USD
m gain from the release of PPA adjustments). 6 Includes a USD
m gain from the sale of UBS’s wealth management business in India. Refer to Note 28 for more information. 7 Includes
USD
m net gains in Asset Management from the sale of the Brazilian real estate fund management business.
Note 6 Personnel expenses
Personnel expenses
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Salaries
1
Variable compensation
2
of which: performance awards
of which: financial advisors
3
of which: other
Contractors
Social security
Post-employment benefit plans
4
of which: defined benefit plans
of which: defined contribution plans
Other personnel expenses
Total personnel expenses
1 Includes role-based allowances. 2 Refer to Note 26 for more information. 3 Financial advisor compensation consists of cash compensation, determined using a formulaic approach based on production, and
deferred awards. It also includes expenses related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements. 4 Refer to Note 25 for more
information. Includes curtailment gains of USD
m for the year ended 31 December 2025 (for the year ended 31 December 2024: USD
m; for the year ended 31 December 2023: USD
m), which represent a
reduction in the defined benefit obligation related to the Swiss pension plans resulting from a decrease in headcount following restructuring activities.
Note 7 General and administrative expenses
General and administrative expenses
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Outsourcing costs
Technology costs
Consulting, legal and audit fees
Real estate and logistics costs
Market data services
Marketing and communication
Travel and entertainment
Litigation, regulatory and similar matters
1
(949 )
(128 )
Other
2
3
Total general and administrative expenses
1 Reflects the net increase / (decrease) in provisions for litigation, regulatory and similar matters recognized in the income statement, including releases of IFRS 3 acquisition-related contingent liabilities. Refer to
Note 17 for more information. 2 Includes a USD
m expense related to the payment to Swisscard AECS GmbH for the sale of the Credit Suisse card portfolios to UBS. Refer to Note 28 for more information.
3 Includes USD
m attributable to setting up a provision related to onerous contracts.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 277
Note 8 Income taxes
Income taxes
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Tax expense / (benefit)
Swiss
Current
Deferred
Total Swiss
Non-Swiss
Current
Deferred
(705 )
(791 )
(846 )
Total non-Swiss
(162 )
Total income tax expense / (benefit) recognized in the income statement
Income tax recognized in the income statement
The Swiss current tax expenses related to taxable profits of UBS Switzerland AG and other Swiss entities.
The Swiss deferred tax expenses primarily related to the amortization of deferred tax assets (DTAs) previously recognized
in relation to deductible temporary differences.
The non-Swiss current tax expenses included USD
m that related to US corporate alternative minimum tax, with an
equivalent deferred tax benefit for DTAs recognized in respect of tax credits carried forward and USD
m in respect of
other taxable profits of non-Swiss subsidiaries and branches.
The net non-Swiss deferred tax benefit included USD
m related to the aforementioned deferred tax benefit,
USD
m in respect of a net upward revaluation of DTAs and USD
m in respect of an increase in DTAs that resulted
from an increase in the expected value of future tax deductions for deferred compensation awards due to an increase in
the Group’s share price during the year. These benefits were partly offset by an expense of USD
m that primarily
related to the amortization of DTAs previously recognized in relation to tax losses carried forward and deductible
temporary differences.
Income tax expense / (benefit)
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Operating profit / (loss) before tax
of which: Swiss
of which: non-Swiss
(3,981 )
Income taxes at Swiss tax rate of
% for 2025,
% for 2024 and
% for 2023
Increase / (decrease) resulting from:
Non-Swiss tax rates differing from Swiss tax rate
(197 )
(224 )
Tax effects of losses not recognized
Previously unrecognized tax losses now utilized
(155 )
(454 )
(401 )
Non-taxable and lower-taxed income
1
(827 )
(447 )
(5,641 )
Non-deductible expenses and additional taxable income
Adjustments related to prior years, current tax
(110 )
(102 )
(87 )
Adjustments related to prior years, deferred tax
(4 )
(1 )
Change in deferred tax recognition
(1,306 )
(1,480 )
(1,288 )
Adjustments to deferred tax balances arising from changes in tax rates
(40 )
Other items
Income tax expense / (benefit)
1 The reconciling item for non-taxable and lower-taxed income for 2023 primarily reflects that the negative goodwill gain that was recorded in the income statement in relation to the acquisition of the Credit Suisse
Group did not result in any tax expense.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 278
Note 8 Income taxes (continued)
The components of operating profit before tax, and the differences between income tax expense reflected in the financial
statements and the amounts calculated at the Swiss tax rate, are provided in the table above and explained below.
Component
Description
Non-Swiss tax rates
differing from the Swiss
tax rate
To the extent that Group profits or losses arise outside Switzerland, the applicable local tax rate may differ from the Swiss
tax rate. This item reflects, for such profits, an adjustment from the tax expense that would arise at the Swiss tax rate to
the tax expense that would arise at the applicable local tax rate. Similarly, it reflects, for such losses, an adjustment from
the tax benefit that would arise at the Swiss tax rate to the tax benefit that would arise at the applicable local tax rate.
Tax effects of losses not
recognized
This item relates to tax losses of entities arising in the year that are not recognized as DTAs and where no tax benefit
arises in relation to those losses. Therefore, the tax benefit calculated by applying the local tax rate to those losses as
described above is reversed.
Previously
unrecognized tax losses
now utilized
This item relates to taxable profits of the year that are offset by tax losses of previous years for which no DTAs were
previously recorded. Consequently, no current tax or deferred tax expense arises in relation to those taxable profits and
the tax expense calculated by applying the local tax rate on those profits is reversed.
Non-taxable and lower-
taxed income
This item relates to tax deductions for the year in respect of permanent differences. These include deductions in respect of
profits that are either not taxable or are taxable at a lower rate of tax than the local tax rate. They also include deductions
made for tax purposes, which are not reflected in the accounts.
Non-deductible
expenses and
additional taxable
income
This item relates to additional taxable income for the year in respect of permanent differences. These include income that
is recognized for tax purposes by an entity but is not included in its profit that is reported in the financial statements, as
well as expenses for the year that are non-deductible (e.g. client entertainment costs are not deductible in certain
locations).
Adjustments related to
prior years, current tax
This item relates to adjustments to current tax expense for prior years (e.g. if the tax payable for a year is agreed with the
tax authorities in an amount that differs from the amount previously reflected in the financial statements).
Adjustments related to
prior years, deferred
tax
This item relates to adjustments to deferred tax positions recognized in prior years (e.g. if a tax loss for a year is fully
recognized and the amount of the tax loss agreed with the tax authorities is expected to differ from the amount
previously recognized as DTAs in the accounts).
Change in deferred tax
recognition
This item relates to changes in DTAs, including changes in DTAs previously recognized resulting from reassessments of
expected future taxable profits. It also includes changes in temporary differences in the year, for which deferred tax is not
recognized.
Adjustments to
deferred tax balances
arising from changes in
tax rates
This item relates to remeasurements of DTAs and liabilities recognized due to changes in tax rates. These have the effect
of changing the future tax saving that is expected from tax losses or deductible tax differences and therefore the amount
of DTAs recognized or, alternatively, changing the tax cost of additional taxable income from taxable temporary
differences and therefore the deferred tax liability.
Other items
Other items include other differences between profits or losses at the local tax rate and the actual local tax expense or
benefit, including movements in provisions for uncertain positions in relation to the current year and other items.
Income tax recognized directly in equity
A net tax expense of USD
m was recognized in
Other comprehensive income
m) and
a net tax benefit of USD
m was recognized in
Share premium
m).
Deferred tax assets and liabilities
The Group has gross DTAs, valuation allowances and recognized DTAs related to tax loss carry-forwards and deductible
temporary differences, as well as deferred tax liabilities in respect of taxable temporary differences, as shown in the table
below. The valuation allowances reflect DTAs that were not recognized because, as of the last remeasurement period,
management did not consider it probable that there would be sufficient future taxable profits available to utilize the
related tax loss carry-forwards and deductible temporary differences.
The recognition of DTAs is supported by forecasts of taxable profits for the entities concerned. In addition, tax planning
opportunities are available that would result in additional future taxable income and these would be utilized, if necessary.
Deferred tax liabilities are recognized in respect of investments in subsidiaries, branches and associates, and interests in
joint arrangements, except to the extent that the Group can control the timing of the reversal of the associated taxable
temporary difference and it is probable that such will not reverse in the foreseeable future. However, as of 31 December
2025, this exception was not considered to apply to any taxable temporary differences.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 279
Note 8 Income taxes (continued)
Deferred tax assets and liabilities
USD m
31.12.25
31.12.24
Deferred tax assets
1
Gross
Valuation
allowance
Recognized
Gross
Valuation
allowance
Recognized
Tax loss carry-forwards
(17,743 )
(17,663 )
Unused tax credits
Temporary differences
(2,157 )
(2,659 )
of which: related to real estate costs capitalized for US tax purposes
of which: related to compensation and benefits
(250 )
(503 )
of which: related to cash flow hedges
of which: other
(1,909 )
(2,156 )
Total deferred tax assets
(19,901 )
2
(20,322 )
2
of which: related to the US
of which: related to other locations
Deferred tax liabilities
Total deferred tax liabilities
1 After offset of DTLs, as applicable. 2 As of 31 December 2025, the Group recognized DTAs of USD
m (31 December 2024: USD
m) in respect of entities that incurred losses in either 2025 or 2024.
In general, US federal tax losses incurred prior to 31 December 2017 can be carried forward for 20 years. US federal tax
losses incurred after that date can be carried forward indefinitely, although the utilization of such losses is limited to 80%
of the entity’s future year taxable profits. UK tax losses can also be carried forward indefinitely; they can shelter up to
either 25% or 50% of future year taxable profits, depending on when the tax losses arose. The amounts of US tax loss
carry-forwards that are included in the table below are based on their amount for federal tax purposes rather than for
state and local tax purposes.
Unrecognized tax loss carry-forwards
USD m
31.12.25
31.12.24
Within 1 year
From 2 to 5 years
From 6 to 10 years
From 11 to 20 years
No expiry
Total
of which: related to the US
1
of which: related to the UK
of which: related to other locations
1 Mainly related to UBS AG’s US branch.
Pillar Two top-up taxes under Global Anti-Base Erosion rules
Certain countries in which the Group operates have enacted legislation implementing the Pillar Two Global Anti-Base
Erosion rules published by the Organisation for Economic Co-operation and Development that introduced domestic top-
up taxes that applied to UBS Group entities during 2025, including Switzerland, which introduced non-domestic top-up
taxes with effect from 1 January 2025, that applies to the Group’s worldwide entities.
The exception that was introduced by the amendments to IAS 12,
Income Taxes
, issued in May 2023, has been applied
for the purposes of these financial statements, which requires that deferred tax assets and deferred tax liabilities be
neither recognized nor disclosed in respect of such top-up taxes.
The Group’s profits are primarily generated in countries that have effective tax rates of 15% or more and, as a result, its
current tax expenses for 2025 that related to top-up taxes were only USD
m.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 280
Balance sheet notes
Note 9 Financial assets at amortized cost and other positions in scope of expected credit loss measurement
The tables below provide information about financial instruments and certain credit lines that are subject to expected
credit loss (ECL) requirements. UBS’s ECL disclosure segments, or “ECL segments”, are aggregated portfolios based on
shared risk characteristics and on the same or similar rating methods applied. The key segments are presented in the
table below.
›
Refer to Note 19 for more information about expected credit loss measurement
›
Refer to Note 19f for more information about sensitivity
Segment
Segment description
Description of credit risk sensitivity
Business division
Private clients with
mortgages
Lending to private clients secured by
owner-occupied real estate and personal
account overdrafts of those clients
Sensitive to Swiss GDP, interest rate
environment, unemployment levels, real
estate collateral values and other regional
aspects
–
Personal & Corporate Banking
–
Global Wealth Management
Real estate financing
Rental or income-producing real estate
financing to private and corporate clients
secured by real estate
Sensitive to Swiss GDP, unemployment
levels, the interest rate environment, real
estate collateral values and other regional
aspects
–
Personal & Corporate Banking
–
Global Wealth Management
–
Investment Bank
Large corporate
clients
Lending to large corporate and multi-
national clients
Sensitive to GDP developments,
unemployment levels, credit default swap
(CDS) indices, seasonality, business cycles,
collateral values (diverse collateral,
including real estate and other collateral
types) and commodity prices
–
Personal & Corporate Banking
–
Investment Bank
–
Global Wealth Management
–
Non-core and Legacy
SME clients
Lending to small and medium-sized
corporate clients
Sensitive to GDP developments,
unemployment levels, the interest rate
environment and, to some extent,
seasonality, business cycles and collateral
values (diverse collateral, including real
estate and other collateral types)
–
Personal & Corporate Banking
Lombard
Loans secured by pledges of marketable
securities, guarantees and other forms of
collateral
Sensitive to equity and debt markets (e.g.
changes in collateral values)
–
Global Wealth Management
–
Non-core and Legacy
Credit cards
Credit card exposures in Switzerland and
the US
Sensitive to unemployment levels
–
Personal & Corporate Banking
–
Global Wealth Management
Commodity trade
finance
Working capital financing of commodity
traders, generally extended on a self-
liquidating transactional basis
Sensitive primarily to the strength of
individual transaction structures and
collateral values (price volatility of
commodities), as the primary source for
debt service is directly linked to the
shipments financed
–
Personal & Corporate Banking
Consumer financing
Consumer loans and car leasing
Sensitive to unemployment levels
–
Personal & Corporate Banking
Ship financing
Ship financing mainly includes bulk
carriers, oil tankers, containers and
liquefied natural gas carriers
Sensitive to real GDP, earnings of tankers
and earnings of bulk carriers
–
Global Wealth Management
Aircraft financing
Corporate aircraft financing
Sensitive to collateral values
–
Global Wealth Management
Financial
intermediaries and
hedge funds
Lending to financial institutions and
pension funds, including exposures to
broker-dealers and clearing houses
Sensitive to GDP development, CDS
indices, the interest rate environment,
price and volatility risks in financial
markets, regulatory and political risk, and
collateral values (diverse collateral,
including real estate and other collateral
types)
–
Personal & Corporate Banking
–
Investment Bank
–
Global Wealth Management
–
Non-core and Legacy
Annual Report 2025
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Note 9 Financial assets at amortized cost and other positions in scope of expected credit loss measurement
(continued)
The tables below provide exposure and ECL allowance and provision information about financial instruments and certain
non-financial instruments that are subject to ECL requirements.
ECL-relevant balance sheet and off-balance sheet positions
USD m
31.12.25
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Cash and balances at central banks
(81 )
(29 )
(52 )
Amounts due from banks
(14 )
(9 )
(5 )
Receivables from securities financing transactions measured at
amortized cost
(1 )
(1 )
Cash collateral receivables on derivative instruments
Loans and advances to customers
(2,490 )
(353 )
(271 )
(1,629 )
(237 )
of which: Private clients with mortgages
(124 )
(44 )
(18 )
(55 )
(6 )
of which: Real estate financing
(67 )
(26 )
(30 )
(11 )
of which: Large corporate clients
(762 )
(116 )
(94 )
(413 )
(139 )
of which: SME clients
(1,068 )
(80 )
(81 )
(872 )
(36 )
of which: Lombard
(64 )
(6 )
(27 )
(31 )
of which: Credit cards
(48 )
(7 )
(12 )
(29 )
of which: Commodity trade finance
(94 )
(8 )
(80 )
(6 )
of which: Ship / aircraft financing
(17 )
(9 )
(8 )
of which: Consumer financing
(136 )
(19 )
(24 )
(92 )
Other financial assets measured at amortized cost
(124 )
(29 )
(9 )
(86 )
of which: Loans to financial advisors
(34 )
(3 )
(1 )
(30 )
Total financial assets measured at amortized cost
(2,711 )
(392 )
(314 )
(1,715 )
(289 )
Financial assets measured at fair value through other comprehensive
income
Total on-balance sheet financial assets in scope of ECL requirements
(2,711 )
(392 )
(314 )
(1,715 )
(289 )
Notional exposure
ECL provisions
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Guarantees
(50 )
(15 )
(22 )
(13 )
of which: Large corporate clients
(17 )
(7 )
(6 )
(4 )
of which: SME clients
(24 )
(5 )
(15 )
(4 )
of which: Financial intermediaries and hedge funds
(1 )
(1 )
of which: Lombard
(2 )
(1 )
of which: Commodity trade finance
(1 )
(1 )
Irrevocable loan commitments
(227 )
(114 )
(77 )
(27 )
(9 )
of which: Large corporate clients
(184 )
(91 )
(72 )
(19 )
(2 )
Forward starting reverse repurchase and securities borrowing
agreements
Committed unconditionally revocable credit lines
(67 )
(51 )
(16 )
of which: Real estate financing
(3 )
(5 )
of which: Large corporate clients
(15 )
(7 )
(6 )
(2 )
of which: SME clients
(31 )
(24 )
(7 )
of which: Lombard
of which: Credit cards
(9 )
(7 )
(2 )
Irrevocable committed prolongation of existing loans
(3 )
(3 )
Total off-balance sheet financial instruments and other credit lines
(347 )
(184 )
(115 )
(40 )
(9 )
Total allowances and provisions
(3,058 )
(576 )
(428 )
(1,756 )
(298 )
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL allowances.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 282
Note 9 Financial assets at amortized cost and other positions in scope of expected credit loss measurement
(continued)
ECL-relevant balance sheet and off-balance sheet positions
USD m
31.12.24
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Cash and balances at central banks
(47 )
(21 )
(25 )
Amounts due from banks
(36 )
(1 )
(5 )
(30 )
Receivables from securities financing transactions measured at
amortized cost
(2 )
(2 )
Cash collateral receivables on derivative instruments
Loans and advances to customers
(1,978 )
(276 )
(323 )
(1,134 )
(244 )
of which: Private clients with mortgages
(160 )
(46 )
(70 )
(30 )
(14 )
of which: Real estate financing
(58 )
(24 )
(27 )
(7 )
of which: Large corporate clients
(573 )
(72 )
(123 )
(277 )
(100 )
of which: SME clients
(742 )
(55 )
(47 )
(613 )
(26 )
of which: Lombard
(42 )
(6 )
(18 )
(18 )
of which: Credit cards
(41 )
(6 )
(11 )
(25 )
of which: Commodity trade finance
(81 )
(9 )
(71 )
of which: Ship / aircraft financing
(31 )
(14 )
(16 )
of which: Consumer financing
(93 )
(15 )
(19 )
(62 )
Other financial assets measured at amortized cost
(125 )
(25 )
(7 )
(84 )
(8 )
of which: Loans to financial advisors
(41 )
(4 )
(1 )
(37 )
Total financial assets measured at amortized cost
(2,187 )
(304 )
(357 )
(1,218 )
(307 )
Financial assets measured at fair value through other comprehensive
income
Total on-balance sheet financial assets in scope of ECL requirements
(2,187 )
(304 )
(357 )
(1,218 )
(307 )
Notional exposure
ECL provisions
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Guarantees
(64 )
(16 )
(24 )
(24 )
of which: Large corporate clients
(17 )
(7 )
(9 )
(2 )
of which: SME clients
(26 )
(5 )
(15 )
(7 )
of which: Financial intermediaries and hedge funds
(1 )
(1 )
of which: Lombard
(6 )
(1 )
(5 )
of which: Commodity trade finance
(1 )
(1 )
Irrevocable loan commitments
(177 )
(105 )
(61 )
(10 )
(2 )
of which: Large corporate clients
(155 )
(91 )
(54 )
(8 )
(2 )
Forward starting reverse repurchase and securities borrowing
agreements
Committed unconditionally revocable credit lines
(76 )
(59 )
(17 )
of which: Real estate financing
(6 )
(4 )
(2 )
of which: Large corporate clients
(22 )
(14 )
(7 )
(2 )
of which: SME clients
(34 )
(28 )
(6 )
of which: Lombard
of which: Credit cards
(8 )
(6 )
(2 )
Irrevocable committed prolongation of existing loans
(3 )
(3 )
Total off-balance sheet financial instruments and other credit lines
(320 )
(183 )
(102 )
(34 )
(2 )
Total allowances and provisions
(2,507 )
(487 )
(459 )
(1,253 )
(309 )
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL allowances.
Annual Report 2025
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Note 9 Financial assets at amortized cost and other positions in scope of expected credit loss measurement
(continued)
Coverage ratios are calculated for the core loan portfolio by taking ECL allowances and provisions divided by the gross
carrying amount of the exposures. Core loan exposure is defined as the sum of
Loans and advances to customers
Loans to financial advisors
.
These ratios are influenced by the following key factors:
–
Lombard loans are generally secured with marketable securities in portfolios that are, as a rule, highly diversified, with
strict lending policies that are intended to ensure that credit risk is minimal under most circumstances;
–
mortgage loans to private clients and real estate financing are controlled by conservative eligibility criteria, including
low loan-to-value ratios and strong debt service capabilities;
–
the amount of unsecured retail lending (including credit cards and consumer financing) is not material;
–
contractual maturities in the loan portfolio, which are a factor in the calculation of ECLs, are generally short, with
Lombard lending typically having average contractual maturities of 12 months or less, real estate lending generally
between two and three years in Switzerland, with long-dated maturities in the US, and corporate lending between
one and two years with related loan commitments up to four years; and
–
write-offs of ECL allowances against the gross loan balances when all or part of a financial asset is deemed uncollectible
or forgiven reduce the coverage ratios.
The total on- and off-balance sheet coverage ratio was
than the ratio as of 31 December 2024. The combined stage 1 and 2 ratio was
with 31 December 2024; the stage 3 ratio was
%,
and the PCI ratio was
%.
Coverage ratios for core loan portfolio
31.12.25
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
Real estate financing
Total real estate lending
Large corporate clients
SME clients
Total corporate lending
Lombard
Credit cards
Commodity trade finance
Ship / aircraft financing
Consumer financing
Other loans and advances to customers
Loans to financial advisors
Total other lending
Total
1
Notional exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
Real estate financing
Total real estate lending
Large corporate clients
SME clients
Total corporate lending
Lombard
Credit cards
Commodity trade finance
Ship / aircraft financing
Consumer financing
Financial intermediaries and hedge funds
Other off-balance sheet commitments
Total other lending
Total
2
Total on- and off-balance sheet
3
1 Includes Loans and advances to customers and Loans to financial advisors, which are presented on the Other financial assets measured at amortized cost balance sheet line. 2 Excludes Forward starting reverse
repurchase and securities borrowing agreements. 3 Includes on-balance sheet exposure, gross and off-balance sheet exposure (notional) and the related ECL coverage ratio (bps).
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 284
Note 9 Financial assets at amortized cost and other positions in scope of expected credit loss measurement
(continued)
Coverage ratios for core loan portfolio
31.12.24
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
Real estate financing
Total real estate lending
Large corporate clients
SME clients
Total corporate lending
Lombard
Credit cards
Commodity trade finance
Ship / aircraft financing
Consumer financing
Other loans and advances to customers
Loans to financial advisors
Total other lending
Total
1
Notional exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
Real estate financing
Total real estate lending
Large corporate clients
SME clients
Total corporate lending
Lombard
Credit cards
Commodity trade finance
Ship / aircraft financing
Consumer financing
Financial intermediaries and hedge funds
Other off-balance sheet commitments
Total other lending
Total
2
Total on- and off-balance sheet
3
1 Includes Loans and advances to customers and Loans to financial advisors, which are presented on the Other financial assets measured at amortized cost balance sheet line. 2 Excludes Forward starting reverse
repurchase and securities borrowing agreements. 3 Includes on-balance sheet exposure, gross and off-balance sheet exposure (notional) and the related ECL coverage ratio (bps).
Note 10 Derivative instruments
Overview
Over-the-counter (OTC) derivative contracts are usually traded under a standardized International Swaps and Derivatives
Association (ISDA) master agreement or other recognized local industry-standard master agreements between UBS and
its counterparties. Terms are negotiated directly with counterparties and the contracts have industry-standard settlement
mechanisms prescribed by ISDA or similar industry-standard solutions. Other OTC derivatives are cleared through clearing
houses, in particular interest rate swaps with London Clearing House (LCH), where a settled-to-market method has been
generally adopted, under which cash collateral exchanged on a daily basis is considered to legally settle the market value
of the derivatives. Regulators in various jurisdictions have introduced rules requiring the payment and collection of initial
and variation margins on certain OTC derivative contracts, which may have a bearing on price and other relevant terms.
Exchange-traded derivatives (ETD) are standardized in terms of their amounts and settlement dates, and are bought and
sold on regulated exchanges. Exchanges offer the benefits of pricing transparency, standardized daily settlement of
changes in value and, consequently, reduced credit risk.
Most of the Group’s derivative transactions relate to sales and market-making activity. Sales activities include the
structuring and marketing of derivative products to customers to enable them to take, transfer, modify or reduce current
or expected risks. Market-making aims to directly support the facilitation and execution of client activity, and involves
quoting bid and offer prices to other market participants with the aim of generating revenues based on spread and
volume. The Group also uses various derivative instruments for hedging purposes.
›
Refer to Notes 15 and 20 for more information about derivative instruments
›
Refer to Note 24 for more information about derivatives designated in hedge accounting relationships
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 285
Note 10 Derivative instruments (continued)
Risks of derivative instruments
The derivative financial assets shown on the balance sheet can be an important component of the Group’s credit
exposure; however, the positive replacement values related to a respective counterparty are rarely an adequate reflection
of the Group’s credit exposure in its derivatives business with that counterparty. This is generally the case because, on
the one hand, replacement values can increase over time (potential future exposure), while, on the other hand, exposure
may be mitigated by entering into master netting agreements and bilateral collateral arrangements. Both the exposure
measures used internally by the Group to control credit risk and the capital requirements imposed by regulators reflect
these additional factors.
›
Refer to Note 21 for more information about derivative financial assets and liabilities after consideration of netting potential
permitted under enforceable netting arrangements
›
Refer to the “Risk management and control” section of this report for more information about the risks arising from derivative
instruments
Derivative instruments
31.12.25
31.12.24
USD bn
Derivative
financial
assets
Derivative
financial
liabilities
Notional
amounts
1
Derivative
financial
assets
Derivative
financial
liabilities
Notional
amounts
1
Interest rate
of which: forwards (OTC)
2
of which: swaps (OTC)
of which: options (OTC)
of which: futures (ETD)
Foreign exchange
of which: forwards (OTC)
of which: swaps (OTC)
of which: options (OTC)
Equity / index
of which: swaps (OTC)
of which: options (OTC)
of which: futures (ETD)
of which: options (ETD)
Credit derivatives
Commodities
Other
3
Total derivative instruments,
based on netting under IFRS Accounting Standards
4
1 In cases where derivative financial instruments are presented on a net basis on the balance sheet, the respective notional amounts of the netted derivative financial instruments are still presented on a gross basis.
Includes notional amounts related to derivatives that are cleared through either a central counterparty or an exchange and settled on a daily basis. The fair value of these derivatives is presented on the balance sheet
net of the corresponding cash margin under Cash collateral receivables on derivative instruments and Cash collateral payables on derivative instruments and was not material for any of the periods presented. Notional
amounts of client-cleared ETD and OTC transactions through central clearing counterparties are not disclosed, as they have a significantly different risk profile. 2 Includes certain forward starting repurchase and
reverse repurchase agreements that are classified as measured at fair value through profit or loss and are recognized within derivative instruments. 3 Includes mainly derivative loan commitments measured at FVTPL,
as well as unsettled purchases and sales of non-derivative financial instruments for which the changes in the fair value between trade date and settlement date are recognized as derivative financial instruments.
4 Derivative financial assets and liabilities are presented net on the balance sheet if UBS has the unconditional and legally enforceable right to offset the recognized amounts, both in the normal course of business
and in the event of default, bankruptcy or insolvency of the entity and all of the counterparties, and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. Refer to Note 21
for more information about netting arrangements.
On a notional amount basis, approximately
% of OTC interest rate contracts held as of 31 December 2025
(31 December 2024:
%) mature within one year,
% (31 December 2024:
%) within one to five years and
%
(31 December 2024:
%) after five years.
Notional amounts of interest rate contracts cleared through either a central counterparty or an exchange that are legally
settled or economically net settled on a daily basis are presented under
Notional amounts
categorized into maturity buckets on the basis of contractual maturities of the cleared underlying derivative contracts.
Notional amounts related to interest rate contracts increased by USD
trn compared with 31 December 2024, mainly
reflecting higher business volumes in the Investment Bank.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 286
Note 11 Property, equipment and software
At historical cost less accumulated depreciation
USD m
Owned
properties and
equipment
1
Leased
properties and
equipment
2
Software
Projects in
progress
2025
2024
Historical cost
Balance at the beginning of the year
Additions
Disposals / write-offs
3
(1,411 )
(441 )
(470 )
(1 )
(2,323 )
(1,108 )
Reclassifications
4
(1,895 )
(107 )
(94 )
Foreign currency translation
(1,525 )
Balance at the end of the year
Accumulated depreciation
Balance at the beginning of the year
Depreciation
Impairment
5
Disposals / write-offs
3
(1,408 )
(441 )
(470 )
(2,318 )
(1,105 )
Reclassifications
4
(45 )
(45 )
Foreign currency translation
(749 )
Balance at the end of the year
Net book value
Net book value at the beginning of the year
Net book value at the end of the year
6
1 Includes leasehold improvements and IT hardware. 2 Represents right-of-use assets recognized by UBS as lessee. UBS predominantly enters into lease contracts, or contracts that include lease components, in
relation to real estate, including offices, retail branches and sales offices. The total cash outflow for leases during 2025 was USD
m (2024: USD
m). Interest expense on lease liabilities is included within
Interest expense from financial instruments measured at amortized cost, and lease liabilities are included within Other financial liabilities measured at amortized cost. Refer to Notes 3 and 18a, respectively. There were
no material gains or losses arising from sale-and-leaseback transactions in 2025 and in 2024. 3 Includes write-offs of fully depreciated assets. 4 The total reclassification amount for the respective periods represents
net reclassifications from / to Other non-financial assets. 5 Impairment charges recorded in 2025 generally relate to assets that are no longer used, of which USD
m for Group Items, USD
m for Global Wealth
Management and USD
m for Non-core and Legacy. The recoverable amount based on a value-in-use approach was determined to be zero. 6 Consists of USD
m related to Owned properties and equipment and
USD
m related to Software.
Note 12 Goodwill and intangible assets
Introduction
UBS performs an impairment test on its goodwill assets on an annual basis or when indicators of impairment exist.
UBS considers Asset Management, as reported in Note 2a, as a separate cash-generating unit (a CGU), as that is the level
at which the performance of investment (and the related goodwill) is reviewed and assessed by management. Given that
a significant amount of goodwill in Global Wealth Management relates to the acquisition of PaineWebber Group, Inc. in
2000, which mainly affected the Americas portion of the business, this goodwill remains separately monitored by the
Americas, despite the formation of Global Wealth Management in 2018. Therefore, goodwill for Global Wealth
Management is separately considered for impairment at the level of two CGUs: Americas; and Switzerland and
International (consisting of EMEA, Asia Pacific and Global).
The impairment test is performed for each CGU to which goodwill is allocated by comparing the recoverable amount
with the carrying amount of the respective CGU. UBS determines the recoverable amount of the respective CGUs based
on their value in use. An impairment charge is recognized if the carrying amount exceeds the recoverable amount.
As of 31 December 2025, total goodwill recognized on the balance sheet was USD
bn, of which USD
bn was
carried by the Global Wealth Management Americas CGU, USD
bn was carried by the Global Wealth Management
Switzerland and International CGU, and USD
bn was carried by Asset Management. Based on the impairment testing
methodology described below, UBS concluded that the goodwill balances as of 31 December 2025 allocated to these
CGUs were not impaired. For each of the CGUs, the recoverable amount substantially exceeded the carrying value as of
31 December 2025, and there was no indication of a significant risk of goodwill impairment based on the testing
performed as of 31 December 2025.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 287
Note 12 Goodwill and intangible assets (continued)
Methodology for goodwill impairment testing
The recoverable amounts are determined using a discounted cash flow model, which has been adapted to use inputs
that consider features of the banking business and its regulatory environment. The recoverable amount of a CGU is the
sum of the discounted earnings attributable to shareholders from the first three forecast years and the terminal value,
adjusted for the effect of the capital assumed to be needed over the next three years and to support growth beyond that
period. The terminal value, which covers all periods beyond the third year, is calculated on the basis of the forecast of
the third-year profit, the discount rate and the long-term growth rate, as well as the implied perpetual capital growth.
For the Global Wealth Management Americas CGU, the methodology is consistently applied. That CGU’s extended
forecast period of five years (with a terminal value thereafter), which was applied in the 2024 and 2023 goodwill
impairment testing to provide for that CGU’s specific planning assumptions, namely the ongoing investments in the core
banking infrastructure in the US to enhance the product capabilities and offerings in this market, has been reduced to
three years (with a terminal value thereafter) following the implementation of major parts of these planning assumptions.
The extended forecast period of five years did not trigger, defer or avoid an impairment of goodwill as of 31 December
2024 or 31 December 2023.
The carrying amount for each CGU is determined by reference to the Group’s equity attribution framework. Within this
framework, UBS attributes equity to the businesses on the basis of their risk-weighted assets and leverage ratio
denominator (both metrics include resource allocations from Group functions to the business divisions), or by their
common equity tier 1 (CET1) capital equivalent of risk-based capital if higher, their goodwill and their intangible assets,
as well as attributed equity related to certain CET1 capital deduction items. The framework is primarily used for the
purpose of measuring the performance of the businesses and includes certain management assumptions. Attributed
equity is equal to the capital a CGU requires to conduct its business and is currently considered a reasonable
approximation of the carrying amount of the CGUs. The attributed equity methodology is also applied in the business
planning process, the inputs from which are used in calculating the recoverable amounts of the respective CGU.
Assumptions
Valuation parameters used within the Group’s impairment test model are linked to external market information, where
applicable. The model used to determine the recoverable amount is most sensitive to changes in the forecast earnings
available to shareholders in years one to three, to changes in the discount rates and to changes in the long-term growth
rate. The applied long-term growth rate is based on long-term economic growth rates for different regions worldwide.
Earnings available to shareholders are estimated on the basis of forecast results, which are part of the business plan
approved by the Board of Directors.
The discount rates are determined by applying a capital asset pricing model-based approach, as well as considering
quantitative and qualitative inputs from both internal and external analysts and the view of management. They also take
into account regional differences in risk-free rates at the level of the individual CGUs. In line with discount rates, long-
term growth rates are determined at the regional level based on nominal GDP growth rate forecasts.
Key assumptions used to determine the recoverable amounts of each CGU are tested for sensitivity by applying a
reasonably possible change to those assumptions. Forecast earnings available to shareholders were changed by
%, the
discount rates were changed by
points. Under all scenarios, reasonably possible changes in key assumptions did not result in an impairment of goodwill
or intangible assets reported by Global Wealth Management Americas, Global Wealth Management Switzerland and
International, and Asset Management.
If the estimated earnings and other assumptions in future periods deviate from the current outlook, the value of goodwill
attributable to Global Wealth Management Americas, Global Wealth Management Switzerland and International, and
Asset Management may become impaired in the future, giving rise to losses in the income statement. Recognition of any
impairment of goodwill would reduce IFRS Accounting Standards equity and net profit. It would not affect cash flows
and, as goodwill is required to be deducted from capital under the Basel III capital framework, no effect would be
expected on the Group’s capital ratios.
Discount and growth rates
Discount rates
Growth rates
In %
31.12.25
31.12.24
31.12.25
31.12.24
Global Wealth Management Americas
Global Wealth Management Switzerland and International
Asset Management
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 288
Note 12 Goodwill and intangible assets (continued)
Goodwill and intangible assets
USD m
Goodwill
Intangible
assets
1
2025
2024
Historical cost
Balance at the beginning of the year
Additions
Disposals
2
(2 )
(2 )
(1 )
Reclassifications
3
(384 )
Write-offs
(76 )
(76 )
Foreign currency translation
(187 )
Balance at the end of the year
Accumulated amortization and impairment
Balance at the beginning of the year
Amortization
Impairment / (reversal of impairment)
Reclassifications
3
(96 )
Write-offs
(76 )
(76 )
Foreign currency translation
(32 )
Balance at the end of the year
Net book value at the end of the year
of which: Global Wealth Management Americas
of which: Global Wealth Management Switzerland and International
of which: Personal & Corporate Banking
of which: Asset Management
of which: Investment Bank
of which: Non-core and Legacy
1 Intangible assets mainly include customer relationships, core deposits, contractual rights and the fully amortized branch network intangible asset recognized in connection with the acquisition of PaineWebber Group,
Inc. in 2000. 2 Reflects the derecognition of goodwill allocated to businesses and intangible assets held by entities that have been disposed of. 3 In 2024, certain intangible assets were reclassified to Assets of
disposal groups held for sale. Refer to Note 28 for more information.
Note 13 Other assets
a) Other financial assets measured at amortized cost
USD m
31.12.25
31.12.24
Debt securities
Loans to financial advisors
Fee- and commission-related receivables
Finance lease receivables
Settlement and clearing accounts
Accrued interest income
Other
1
Total other financial assets measured at amortized cost
1 Predominantly includes cash collateral provided to exchanges and clearing houses to secure securities trading activity through those counterparties.
Effective 1 April 2022, UBS reclassified a portfolio of high-quality liquid financial assets from
Financial assets measured
at fair value through other comprehensive income
bn (the Portfolio) to
Other financial assets
measured at amortized cost
.
The Portfolio’s cumulative fair value pre-tax loss of USD
m and post-tax loss of
USD
m, previously recognized in
Other comprehensive income
, were removed from equity and adjusted against the
value of the assets on the reclassification date, so that the Portfolio was measured as if the assets had always been
classified at amortized cost, with a value of USD
bn as on 1 April 2022. The reclassification has had no effect on the
income statement. At the time, the accounting reclassification arose as a direct result of the planned transformation of
UBS’s Global Wealth Management Americas business, involving significant growth and extension of the business,
generating substantial cash balances, with a number of new saving and deposit products being launched that are longer
in duration. Additional lending, and a broader range of customer segments were targeted. As a consequence, the
Portfolio is no longer held in a business model to collect the contractual cash flows and sell the assets but is instead solely
held to collect the contractual cash flows until the assets mature, requiring a reclassification of the Portfolio in line with
IFRS 9 with effect from 1 April 2022.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 289
Note 13 Other assets (continued)
b) Other non-financial assets
USD m
31.12.25
31.12.24
Precious metals and other physical commodities
Deposits and collateral provided in connection with litigation, regulatory and similar matters
1
Prepaid expenses
Current tax assets
VAT, withholding tax and other tax receivables
Properties and other non-current assets held for sale
2
Assets of disposal groups held for sale
3
Other
Total other non-financial assets
1 Refer to Note 17 for more information. 2 Refer to Note 28 for more information about the agreement to sell Swisscard AECS GmbH. 3 Refer to Note 28 for more information about the sale of Select Portfolio
Servicing.
Note 14 Amounts due to banks and Customer deposits
Amounts due to banks and Customer deposits
USD m
31.12.25
31.12.24
Amounts due to banks
Customer deposits
of which: demand deposits
of which: retail savings / deposits
of which: sweep deposits
of which: time deposits
1
Total amounts due to banks and customer deposits
1 Includes customer deposits in UBS AG Jersey Branch and UBS AG Guernsey Branch placed by UBS Switzerland AG and UBS AG Swiss Branch on behalf of their clients.
Customer deposits increased, mainly reflecting foreign currency effects. This was partly offset by net new deposit
outflows, which mainly reflected maturities of time deposits that resulted in a shift of funds from time deposits into
demand deposits and retail savings / deposits.
Note 15 Debt issued designated at fair value
USD m
31.12.25
31.12.24
Issued debt instruments
Equity-linked
1
Rates-linked
Fixed-rate
Credit-linked
Commodity-linked
Other
of which: debt that contributes to total loss-absorbing capacity
Total debt issued designated at fair value
2
of which: issued by UBS AG standalone with original maturity greater than one year
3
1 Includes investment fund unit-linked instruments issued. 2 As of 31 December 2025,
% of Total debt issued designated at fair value was unsecured (31 December 2024:
%). 3 Based on original
contractual maturity without considering any early redemption features.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 290
Note 16 Debt issued measured at amortized cost
USD m
31.12.25
31.12.24
Short-term debt
1
Senior unsecured debt
of which: contributes to total loss-absorbing capacity (TLAC)
of which: issued by UBS AG standalone with original maturity greater than one year
Covered bonds
Subordinated debt
of which: eligible as high-trigger loss-absorbing additional tier 1 capital instruments
2
of which: eligible as low-trigger loss-absorbing additional tier 1 capital instruments
of which: eligible as non-Basel III-compliant tier 2 capital instruments
Debt issued through the Swiss central mortgage institutions
Other long-term debt
Long-term debt
3
Total debt issued measured at amortized cost
4,5
1 Debt with an original contractual maturity of less than one year, includes mainly certificates of deposit and commercial paper. 2 For 31 December 2025 includes USD
bn (31 December 2024: USD
bn) that
is, upon the occurrence of a trigger event or a viability event, subject to conversion into ordinary UBS shares. 3 Debt with an original contractual maturity greater than or equal to one year. The classification of debt
issued into short-term and long-term does not consider any early redemption features. 4 Net of bifurcated embedded derivatives, the fair value of which was not material for the periods presented. 5 Except for
Covered bonds (
% secured; 31 December 2024:
% secured), Debt issued through the Swiss central mortgage institutions (
% secured; 31 December 2024:
% secured) and Other long-term debt (
%
secured; 31 December 2024:
% secured),
% of the balance was unsecured as of 31 December 2025 (31 December 2024:
% unsecured).
The Group uses interest rate and foreign exchange derivatives to manage the risks inherent in certain debt instruments
held at amortized cost. In some cases, the Group applies hedge accounting for interest rate risk as discussed in item 2j
in Note 1a and Note 24. As a result of applying hedge accounting, the life-to-date adjustment to the carrying amount of
debt issued was a decrease of USD
bn as of 31 December 2025 and a decrease of USD
bn as of 31 December
2024, reflecting changes in fair value due to interest rate movements.
Subordinated debt consists of unsecured debt obligations that are contractually subordinated in right of payment to all
other present and future non-subordinated obligations of the respective issuing entity. All of the subordinated debt
instruments outstanding as of 31 December 2025 pay a fixed rate of interest.
›
Refer to Note 23 for maturity information
UBS Group AG, together with UBS AG, has fully and unconditionally guaranteed the outstanding US Securities and
Exchange Commission (SEC)-registered debt securities of Credit Suisse (USA) LLC, which as of 31 December 2025
consisted of a single outstanding issuance with a balance of USD
m maturing in July 2032. Credit Suisse (USA) LLC
is an indirect, wholly owned subsidiary of UBS Group AG. UBS Group AG assumed Credit Suisse Group AG’s obligations
under the guarantee as of 12 June 2023 (i.e. the date on which the UBS Group completed the acquisition of the Credit
Suisse Group). In accordance with the guarantee, if Credit Suisse (USA) LLC fails to make a timely payment under the
agreements governing such debt securities, the holders of the debt securities may demand payment from either UBS
Group AG or UBS AG, without first proceeding against Credit Suisse (USA) LLC.
Note 17 Provisions and contingent liabilities
a) Provisions
The table below presents an overview of total provisions and contingent liabilities.
Overview of total provisions and contingent liabilities
USD m
31.12.25
31.12.24
Provisions related to expected credit losses (IFRS 9,
Financial Instruments
)
1
Provisions related to Credit Suisse loan commitments (IFRS 3,
Business Combinations
)
Provisions related to litigation, regulatory and similar matters (IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
)
Acquisition-related contingent liabilities relating to litigation, regulatory and similar matters (IFRS 3,
Business Combinations
)
Restructuring, real-estate and other provisions (IAS 37,
)
Total provisions and contingent liabilities
1 Refer to Note 9 for more information about ECL provisions recognized for off-balance sheet financial instruments and credit lines.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 291
Note 17 Provisions and contingent liabilities (continued)
The table below presents additional information for provisions under IAS 37,
Provisions, Contingent Liabilities and
Contingent Assets
.
Additional information for provisions under IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
USD m
Litigation,
regulatory and
similar matters
1
Restructuring
2
Real estate
3
Other
4
Total 2025
Balance at the beginning of the year
Increase in provisions recognized in the income statement
5
Release of provisions recognized in the income statement
(555 )
6
(297 )
(8 )
(91 )
(952 )
Provisions used in conformity with designated purpose
(2,259 )
7
(1,016 )
(40 )
(101 )
(3,416 )
Reclassifications
8
Foreign currency translation and other movements
Balance at the end of the year
1 Consists of provisions for losses resulting from legal, liability and compliance risks. 2 Includes USD
m of personnel-related restructuring provisions as of 31 December 2025 (31 December 2024: USD
m),
USD
m of provisions for onerous contracts related to real estate as of 31 December 2025 (31 December 2024: USD
m) and USD
m of restructuring provisions for onerous contracts related to technology as
of 31 December 2025 (31 December 2024: USD
m). 3 Mainly includes provisions for reinstatement costs with respect to leased properties. 4 Mainly includes provisions in relation to employee benefits, VAT,
onerous contracts related to technology, and operational risks. 5 Includes a provision for the estimated costs of UBS’s ongoing obligations with the US Department of Justice as described in item 1 of section b) of
this Note. 6 Mainly includes the releases of provisions regarding the resolution of the legacy matter related to UBS’s cross-border business activities in France in the third quarter of 2025 as described in item 1 of
section b) of this Note and the resolution reached with the US Department of Justice in the second quarter of 2025 as described in item 1 of section b) of this Note. 7 Mainly includes provisions used for the settlement
of the legacy matter related to UBS’s cross-border business activities in France as described in item 1 of section b) of this Note and for the resolutions reached with the US Department of Justice in the second and
third quarters of 2025 as described in item 1 and item 4 of section b) of this Note. 8 Includes reclassifications from IFRS 3 contingent liabilities to IAS 37 provisions.
Restructuring provisions are generally recognized as a consequence of management agreeing to materially change the
scope of the business or the manner in which it is conducted, including changes in management structures. Restructuring
provisions relate to onerous contracts and personnel-related provisions. Onerous contracts for property are recognized
when UBS is committed to pay for non-lease components, such as utilities, service charges, taxes and maintenance, when
a property is vacated or not fully recovered from sub-tenants. Personnel-related restructuring provisions are generally
used within a short period of time. The level of personnel-related provisions can change when natural staff attrition
reduces the number of people affected by a restructuring event, and therefore results in lower estimated costs.
Other provisions mainly include provisions related to onerous contracts, employee benefits and operational risks. Onerous
contracts are recognized for certain contractual arrangements where the costs exceed the economic benefits expected
to be received.
Information about provisions and contingent liabilities with respect to litigation, regulatory and similar matters, as a class,
is included in Note 17b. There are no material contingent liabilities associated with the other classes of provisions.
b) Litigation, regulatory and similar matters
The Group operates in a legal and regulatory environment that exposes it to significant litigation and similar risks arising
from disputes and regulatory proceedings. As a result, UBS (which for purposes of this Note may refer to UBS Group AG
and/or one or more of its subsidiaries, as applicable) is involved in various disputes and legal proceedings, including
litigation, arbitration, and regulatory and criminal investigations.
Such matters are subject to many uncertainties, and the outcome and the timing of resolution are often difficult to predict,
particularly in the earlier stages of a case. There are also situations where the Group may enter into a settlement agreement.
This may occur in order to avoid the expense, management distraction or reputational implications of continuing to contest
liability, even for those matters for which the Group believes it should be exonerated. The uncertainties inherent in all such
matters affect the amount and timing of any potential outflows for both matters with respect to which provisions have been
established and other contingent liabilities. The Group makes provisions for such matters brought against it when, in the
opinion of management after seeking legal advice, it is more likely than not that the Group has a present legal or constructive
obligation as a result of past events, it is probable that an outflow of resources will be required, and the amount can be
reliably estimated. Where these factors are otherwise satisfied, a provision may be established for claims that have not yet
been asserted against the Group, but are nevertheless expected to be, based on the Group’s experience with similar asserted
claims. If any of those conditions is not met, such matters result in contingent liabilities. If the amount of an obligation
cannot be reliably estimated, a liability exists that is not recognized even if an outflow of resources is probable. Accordingly,
no provision is established even if the potential outflow of resources with respect to such matters could be significant.
Developments relating to a matter that occur after the relevant reporting period, but prior to the issuance of financial
statements, which affect management’s assessment of the provision for such matter (because, for example, the
developments provide evidence of conditions that existed at the end of the reporting period), are adjusting events after the
reporting period under IAS 10 and must be recognized in the financial statements for the reporting period.
Specific litigation, regulatory and other matters are described below, including all such matters that management
considers to be material and others that management believes to be of significance to the Group due to potential
financial, reputational and other effects. The amount of damages claimed, the size of a transaction or other information
is provided where available and appropriate in order to assist users in considering the magnitude of potential exposures.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 292
Note 17 Provisions and contingent liabilities (continued)
In the case of certain matters below, we state that we have established a provision, and for the other matters, we make
no such statement. When we make this statement and we expect disclosure of the amount of a provision to prejudice
seriously our position with other parties in the matter because it would reveal what UBS believes to be the probable and
reliably estimable outflow, we do not disclose that amount. In some cases we are subject to confidentiality obligations
that preclude such disclosure. With respect to the matters for which we do not state whether we have established a
provision, either: (a) we have not established a provision; or (b) we have established a provision but expect disclosure of
that fact to prejudice seriously our position with other parties in the matter because it would reveal the fact that UBS
believes an outflow of resources to be probable and reliably estimable.
With respect to certain litigation, regulatory and similar matters for which we have established provisions, we are able to
estimate the expected timing of outflows. However, the aggregate amount of the expected outflows for those matters
for which we are able to estimate expected timing is immaterial relative to our current and expected levels of liquidity
over the relevant time periods.
The aggregate amount provisioned for litigation, regulatory and similar matters as a class is disclosed in the “Provisions”
table in Note 17a) above. UBS provides below an estimate of the aggregate liability for its litigation, regulatory and similar
matters as a class of contingent liabilities. Estimates of contingent liabilities are inherently imprecise and uncertain as these
estimates require UBS to make speculative legal assessments as to claims and proceedings that involve unique fact patterns
or novel legal theories, that have not yet been initiated or are at early stages of adjudication, or as to which alleged damages
have not been quantified by the claimants. Taking into account these uncertainties and the other factors described herein,
UBS estimates the future losses that could arise from litigation, regulatory and similar matters disclosed below for which an
estimate is possible, that are not covered by existing provisions (including acquisition-related contingent liabilities established
under IFRS 3 in connection with the acquisition of Credit Suisse), are in the range of USD
bn to USD
bn.
Litigation, regulatory and similar matters may also result in non-monetary penalties and consequences. A guilty plea to,
or conviction of, a crime could have material consequences for UBS. Resolution of regulatory proceedings may require
UBS to obtain waivers of regulatory disqualifications to maintain certain operations, may entitle regulatory authorities to
limit, suspend or terminate licenses and regulatory authorizations, and may permit financial market utilities to limit,
suspend or terminate UBS’s participation in such utilities. Failure to obtain such waivers, or any limitation, suspension or
termination of licenses, authorizations or participations, could have material consequences for UBS.
The amounts shown in the table below reflect the provisions recorded under IFRS Accounting Standards. In connection
with the acquisition of Credit Suisse, UBS Group AG additionally has reflected in its purchase accounting under IFRS 3 a
valuation adjustment reflecting an estimate of outflows relating to contingent liabilities for all present obligations included
in the scope of the acquisition at fair value upon closing, even if it is not probable that the contingent liability will result
in an outflow of resources, significantly decreasing the recognition threshold for litigation liabilities beyond those that
generally apply under IFRS Accounting Standards. The IFRS 3 acquisition-related contingent liabilities of USD
bn at
31 December 2025 reflect a decrease of USD
bn from 31 December 2024 mainly as a result of releases upon resolution
of the relevant matters.
Provisions for litigation, regulatory and similar matters by business division and in Group Items
1
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core
and Legacy
Group Items
Total 2025
Balance at the beginning of the year
Increase in provisions recognized in the income statement
2
Release of provisions recognized in the income statement
(309 )
3
(39 )
3
(37 )
(169 )
3
(1 )
(555 )
Provisions used in conformity with designated purpose
(913 )
4
(111 )
4
(1 )
(26 )
(1,190 )
4
(19 )
(2,259 )
Reclassifications
5
Foreign currency translation and other movements
Balance at the end of the year
1 Provisions, if any, for the matters described in items 2 and 9 of this Note are recorded in Global Wealth Management. Provisions, if any, for the matters described in items 4, 5, 6, 7, 8, 11 and 12 of this Note are
recorded in Non-core and Legacy. Provisions, if any, for the matters described in item 1 of this Note are allocated between Global Wealth Management, Personal & Corporate Banking and Non-core and Legacy.
Provisions, if any, for the matters described in item 3 of this Note are allocated between the Investment Bank, Non-core and Legacy and Group Items. Provisions, if any, for the matters described in item 10 of this
Note are allocated between the Investment Bank and Non-core and Legacy. 2 Includes a provision for the estimated costs of UBS’s ongoing obligations with the US Department of Justice as described in item 1 of
this Note. 3 Mainly includes the releases of provisions regarding the resolution of the legacy matter related to UBS’s cross-border business activities in France in the third quarter of 2025 as described in item 1 of
this Note and the resolution reached with the US Department of Justice in the second quarter of 2025 as described in item 1 of this Note. 4 Mainly includes provisions used for the settlement of the legacy matter
related to UBS’s cross-border business activities in France as described in item 1 of this Note and for the resolutions reached with the US Department of Justice in the second and third quarters of 2025 as described
in item 1 and item 4 of this Note. 5 Includes reclassifications from IFRS 3 contingent liabilities to IAS 37 provisions.
1. Inquiries regarding cross-border wealth management businesses
Tax and regulatory authorities in a number of countries have made inquiries, served requests for information or examined
employees located in their respective jurisdictions relating to the cross-border wealth management services provided by
UBS, Credit Suisse and other financial institutions, including Credit Suisse offices in the Netherlands and Belgium.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 293
Note 17 Provisions and contingent liabilities (continued)
In proceedings in France, UBS AG was found guilty in lower courts of unlawful solicitation of clients on French territory
and aggravated laundering of the proceeds of tax fraud in the period between 2004 and 2012. On appeal, the French
Supreme Court, in November 2023, upheld the lower court’s decision regarding unlawful solicitation and aggravated
laundering of the proceeds of tax fraud, but overturned the awards of penalties, confiscation and civil damages by the
lower court, aggregating EUR
bn, and remanded the case to the Court of Appeal for a retrial regarding these
overturned elements. In September 2025, UBS AG resolved the case and subsequently paid a fine of EUR
m and
EUR
m in civil damages to the French State.
In May 2014, Credit Suisse AG entered into settlement agreements with the SEC, the Federal Reserve and the New York
Department of Financial Services and agreed with the US Department of Justice (the DOJ) to plead guilty to conspiring
to aid and assist US taxpayers in filing false tax returns (the 2014 Plea Agreement). Credit Suisse continued to report to
and cooperate with US authorities in accordance with its obligations under the 2014 Plea Agreement, including by
conducting a review of cross-border services provided by Credit Suisse. In this connection, Credit Suisse provided
information to US authorities regarding potentially undeclared US assets held by clients at Credit Suisse since the 2014
Plea Agreement. In May 2025, Credit Suisse Services AG entered into a plea agreement (the 2025 Plea Agreement) with
the DOJ under which it agreed to plead guilty to one count of conspiracy to aid and assist in the preparation of false
income tax returns relating to legacy Credit Suisse accounts booked in Credit Suisse’s Swiss booking center, thereby
settling the investigation into Credit Suisse’s implementation of the 2014 Plea Agreement. In addition, Credit Suisse
Services AG entered into a non-prosecution agreement with the DOJ (the 2025 NPA) relating to legacy Credit Suisse
accounts booked in Credit Suisse’s Singapore booking center. The 2025 Plea Agreement and the 2025 NPA provide for
penalties, restitution and forfeiture of USD
m in the aggregate. The 2025 Plea Agreement and the 2025 NPA include
ongoing obligations of UBS to furnish information and cooperate with DOJ’s investigations of legacy Credit Suisse
accounts held by US persons in its Switzerland and Singapore booking centers and related accounts in other booking
centers.
Our balance sheet at 31 December 2025 reflected provisions in an amount that UBS believes to be appropriate under the
applicable accounting standard. As in the case of other matters for which we have established provisions, the future
outflow of resources in respect of such matters cannot be determined with certainty based on currently available
information and accordingly may ultimately prove to be substantially greater (or may be less) than the provision that we
have recognized.
2. Madoff
In relation to the Bernard L. Madoff Investment Securities LLC (BMIS) investment fraud, UBS AG, UBS (Luxembourg) S.A.
(now UBS Europe SE, Luxembourg branch) and certain other UBS subsidiaries were subject to inquiries by a number of
regulators, including the Swiss Financial Market Supervisory Authority (FINMA) and the Luxembourg Commission de
Surveillance du Secteur Financier. Those inquiries concerned two third-party funds established under Luxembourg law,
substantially all assets of which were with BMIS, as well as certain funds established in offshore jurisdictions with either
direct or indirect exposure to BMIS. These funds faced severe losses, and the Luxembourg funds are in liquidation. The
documentation establishing both funds identifies UBS entities in various roles, including custodian, administrator,
manager, distributor and promoter, and indicates that UBS employees served as board members.
In 2009 and 2010, the liquidators of the two Luxembourg funds filed claims against UBS entities, non-UBS entities and
certain individuals, including current and former UBS employees, seeking amounts totaling approximately EUR
bn,
which includes amounts that the funds may be held liable to pay the trustee for the liquidation of BMIS (BMIS Trustee).
A large number of alleged beneficiaries have filed claims against UBS entities (and non-UBS entities) for purported losses
relating to the Madoff fraud. The majority of these cases have been decided in favor of UBS or dismissed for want of
prosecution.
In the US, the BMIS Trustee filed claims against UBS entities, among others, in relation to the two Luxembourg funds and
one of the offshore funds. The total amount claimed against all defendants in these actions was not less than USD
bn.
In 2014, the US Supreme Court rejected the BMIS Trustee’s motion for leave to appeal decisions, dismissing all claims
against UBS defendants except those for the recovery of approximately USD
m of payments alleged to be fraudulent
conveyances and preference payments. Similar claims have been filed against Credit Suisse entities seeking to recover
redemption payments. In 2016, the bankruptcy court dismissed these claims against the UBS entities and most of the
Credit Suisse entities. In 2019, the Court of Appeals reversed the dismissal of the BMIS Trustee’s remaining claims. The
cases were remanded to the Bankruptcy Court for further proceedings.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 294
Note 17 Provisions and contingent liabilities (continued)
3. Foreign exchange, LIBOR and benchmark rates, and other trading practices
Foreign-exchange-related regulatory matters:
concerning possible manipulation of foreign exchange markets and precious metals prices. As a result of these
investigations, UBS entered into resolutions with Swiss, US and UK regulators and the European Commission. UBS was
granted conditional immunity by the Antitrust Division of the DOJ and by authorities in other jurisdictions in connection
with potential competition law violations relating to foreign exchange and precious metals businesses. In December 2021,
the European Commission issued a decision imposing a fine of EUR
m on Credit Suisse entities based on findings of
anticompetitive practices in the foreign exchange market. UBS received leniency and accordingly no fine was assessed.
Credit Suisse appealed the decision to the European General Court and, in July 2025, the court issued a judgment
reducing the fine to EUR
m. The judgment is now final.
Foreign-exchange-related civil litigation:
Putative class actions have been filed since 2013 in US federal courts and in other
jurisdictions against UBS, Credit Suisse and other banks on behalf of persons who engaged in foreign currency
transactions with any of the defendant banks. UBS and Credit Suisse have resolved US federal court class actions relating
to foreign currency transactions with the defendant banks and persons who transacted in foreign exchange futures
contracts and options on such futures. Certain class members have excluded themselves from that settlement and filed
individual actions in US and English courts against UBS, Credit Suisse and other banks, alleging violations of US and
European competition laws and unjust enrichment. UBS, Credit Suisse and the other banks have resolved those individual
matters. In addition, Credit Suisse and UBS, together with other financial institutions, were named in a consolidated
putative class action in Israel, which made allegations similar to those made in the actions pursued in other jurisdictions.
Credit Suisse and UBS entered into agreements to settle all claims in this action in April 2022 and February 2024,
respectively. Credit Suisse’s settlement received court approval and became final in May 2025. UBS’s settlement remains
subject to court approval.
LIBOR and other benchmark-related regulatory matters:
regarding potential improper attempts by UBS, among others, to manipulate LIBOR and other benchmark rates at certain
times. UBS and Credit Suisse reached settlements or otherwise concluded investigations relating to benchmark interest
rates with the investigating authorities. UBS was granted conditional leniency or conditional immunity from authorities
in certain jurisdictions, including the Antitrust Division of the DOJ, in connection with potential antitrust or competition
law violations related to certain rates. In December 2025, the Swiss Competition Commission (WEKO) announced that it
had reached a final resolution with UBS.
LIBOR and other benchmark-related civil litigation:
the federal courts in New York against UBS and numerous other banks on behalf of parties who transacted in certain
interest rate benchmark-based derivatives. Also pending in the US and in other jurisdictions are a number of other actions
asserting losses related to various products whose interest rates were linked to LIBOR and other benchmarks, including
adjustable rate mortgages, preferred and debt securities, bonds pledged as collateral, loans, depository accounts,
investments and other interest-bearing instruments. The complaints allege manipulation, through various means, of
certain benchmark interest rates, including USD LIBOR, Yen LIBOR, EURIBOR, CHF LIBOR, and GBP LIBOR and seek
unspecified compensatory and other damages under various legal theories.
USD LIBOR class and individual actions in the US:
Beginning in 2013, putative class actions were filed in US federal district
courts (and subsequently consolidated in the US District Court for the Southern District of New York (SDNY)) by plaintiffs
who engaged in over-the-counter instruments, exchange-traded Eurodollar futures and options, bonds or loans that
referenced USD LIBOR. The complaints allege violations of antitrust law and the Commodities Exchange Act, as well as
breach of contract and unjust enrichment. Following various rulings by the SDNY and the US Court of Appeals for the
Second Circuit dismissing certain of the causes of action and allowing others to proceed, one class action with respect to
transactions in over-the-counter instruments and several actions brought by individual plaintiffs proceeded in the district
court. In September 2025, the district court granted defendants’ motion for summary judgment as to all remaining
actions. Plaintiffs have appealed. UBS and Credit Suisse previously entered into settlement agreements in respect of the
class actions relating to exchange-traded instruments, bonds and loans. These settlements have received final court
approval, and the actions have been dismissed as to UBS and Credit Suisse.
Other benchmark class actions in the US:
The Yen LIBOR/Euroyen TIBOR, EURIBOR and GBP LIBOR actions have been
dismissed. Plaintiffs have appealed the dismissals. In August 2025, the Second Circuit affirmed in part and reversed in
part the district court’s dismissal of the complaint in the EURIBOR action, returning the action to the district court. In
September 2025, the Second Circuit affirmed the dismissal of the complaint in the GBP LIBOR action; the matter has
concluded.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 295
Note 17 Provisions and contingent liabilities (continued)
In January 2023, defendants moved to dismiss the complaint in the CHF LIBOR action. In 2023, the court approved a
settlement by Credit Suisse of the claims against it in this matter. In September 2025, the court dismissed the complaint
against the remaining defendants, including UBS.
Government bonds:
European Union antitrust rules between 2007 and 2011 relating to European government bonds. The European
Commission fined UBS EUR
m, which amount was confirmed on appeal in March 2025. UBS has appealed to the
European Court of Justice.
Credit default swap auction litigation –
putative class action filed in federal court in New Mexico alleging manipulation of credit default swap (CDS) final auction
prices. Defendants filed a motion to enforce a previous CDS class action settlement in the SDNY. In January 2024, the
SDNY ruled that, to the extent claims in the New Mexico action arise from conduct prior to 30 June 2014, those claims
are barred by the SDNY settlement. The plaintiffs appealed and, in May 2025, the Second Circuit affirmed the SDNY
decision.
Defendants filed a motion for judgment on the pleadings in December 2025.
With respect to additional matters and jurisdictions not encompassed by the settlements and orders referred to above,
UBS’s balance sheet at 31 December 2025 reflected a provision in an amount that UBS believes to be appropriate under
the applicable accounting standard. As in the case of other matters for which we have established provisions, the future
outflow of resources in respect of such matters cannot be determined with certainty based on currently available
information and accordingly may ultimately prove to be substantially greater (or may be less) than the provision that we
have recognized.
4. Mortgage-related matters
Government and regulatory related matters: DOJ RMBS settlement – In January 2017, Credit Suisse Securities (USA) LLC
(CSS LLC) and its current and former US subsidiaries and US affiliates reached a settlement with the DOJ related to its
legacy Residential Mortgage-Backed Securities (RMBS) business, a business conducted through 2007. The settlement
resolved potential civil claims by the DOJ related to certain of those Credit Suisse entities’ packaging, marketing,
structuring, arrangement, underwriting, issuance and sale of RMBS. Pursuant to the terms of the settlement a civil
monetary penalty was paid to the DOJ in January 2017. The settlement also required the Credit Suisse entities to provide
certain levels of consumer relief measures, including affordable housing payments and loan forgiveness, and the DOJ
and Credit Suisse agreed to the appointment of an independent monitor to oversee the completion of the consumer
relief requirements of the settlement. In August 2025, CSS LLC entered into an agreement with the DOJ to resolve all of
Credit Suisse’s outstanding Consumer Relief Obligations under the 2017 settlement by paying USD
m.
Civil litigation: Repurchase litigations – Credit Suisse affiliates are defendants in various civil litigation matters related to
their roles as issuer, sponsor, depositor, underwriter and/or servicer of RMBS transactions. These cases currently include
repurchase actions by RMBS trusts and/or trustees, in which plaintiffs generally allege breached representations and
warranties in respect of mortgage loans and failure to repurchase such mortgage loans as required under the applicable
agreements. The amounts disclosed below do not reflect actual realized plaintiff losses to date. Unless otherwise stated,
these amounts reflect the original unpaid principal balance amounts as alleged in these actions.
DLJ Mortgage Capital, Inc. (DLJ) is a defendant in New York State court in five actions: An action brought by Asset Backed
Securities Corporation Home Equity Loan Trust, Series 2006-HE7 alleges damages of not less than USD
m. In
December 2023, the trial court granted in part DLJ’s motion to dismiss, dismissing with prejudice all notice-based claims.
On appeal, the appellate court modified the trial court’s dismissal in April 2025 to reinstate certain of plaintiff’s notice-
based claims and otherwise dismissed plaintiff’s claims. Plaintiff has sought leave from the New York Court of Appeals to
further appeal the dismissal of certain of its claims. An action by Home Equity Asset Trust, Series 2006-8, alleges damages
of not less than USD
m. An action by Home Equity Asset Trust 2007-1 alleges damages of not less than USD
m.
In August 2025, the parties agreed to a settlement to resolve this litigation for USD
m. The settlement has received
court approval and is final. An action by Home Equity Asset Trust 2007-2 alleges damages of not less than USD
m.
An action by CSMC Asset-Backed Trust 2007-NC1 does not allege a damages amount.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 296
Note 17 Provisions and contingent liabilities (continued)
5. ATA litigation
Since November 2014, a series of lawsuits have been filed against a number of banks, including Credit Suisse, in the US
District Court for the Eastern District of New York (EDNY) and the SDNY alleging claims under the United States Anti-
Terrorism Act (ATA) and the Justice Against Sponsors of Terrorism Act. The plaintiffs in each of these lawsuits are, or are
relatives of, victims of various terrorist attacks in Iraq and allege a conspiracy and/or aiding and abetting based on
allegations that various international financial institutions, including the defendants, agreed to alter, falsify or omit
information from payment messages that involved Iranian parties for the express purpose of concealing the Iranian
parties’ financial activities and transactions from detection by US authorities. The lawsuits allege that this conduct has
made it possible for Iran to transfer funds to Hezbollah and other terrorist organizations actively engaged in harming US
military personnel and civilians. In January 2023, the Second Circuit affirmed a September 2019 ruling by the EDNY
granting defendants’ motion to dismiss the first filed lawsuit. In October 2023, the US Supreme Court denied plaintiffs’
petition for a writ of certiorari, and in September 2025 the EDNY denied plaintiffs’ motion to vacate the judgment; the
matter has concluded. Of the other seven cases, four are stayed, including one that was dismissed as to Credit Suisse
and most of the bank defendants prior to entry of the stay, and in three cases defendants moved to dismiss plaintiffs’
amended complaints.
6. Customer account matters
Several clients have claimed that a former relationship manager in Switzerland had exceeded his investment authority in
the management of their portfolios, resulting in excessive concentrations of certain exposures and investment losses.
Credit Suisse AG has investigated the claims, as well as transactions among the clients. Credit Suisse AG filed a criminal
complaint against the former relationship manager with the Geneva Prosecutor’s Office upon which the prosecutor
initiated a criminal investigation. Several clients of the former relationship manager also filed criminal complaints with
the Geneva Prosecutor’s Office. In February 2018, the former relationship manager was sentenced to five years in prison
by the Geneva criminal court for fraud, forgery and criminal mismanagement and ordered to pay damages of
approximately USD
m. On appeal, the Criminal Court of Appeals of Geneva and, subsequently, the Swiss Federal
Supreme Court upheld the main findings of the Geneva criminal court.
Civil lawsuits have been initiated against Credit Suisse AG and / or certain affiliates in various jurisdictions, based on the
findings established in the criminal proceedings against the former relationship manager.
In Singapore, in a now-concluded civil lawsuit, Credit Suisse Trust Limited was ordered to pay USD
m, including
interest and costs.
In Bermuda, in the civil lawsuit brought against Credit Suisse Life (Bermuda) Ltd., the Supreme Court of Bermuda issued
a judgment awarding damages of USD
m to the plaintiff. Credit Suisse Life (Bermuda) Ltd. appealed the decision.
In June 2023, the Bermuda Court of Appeal confirmed the award and the Supreme Court of Bermuda’s finding that
Credit Suisse Life (Bermuda) Ltd. breached its contractual and fiduciary duties, but overturned the finding that Credit
Suisse Life (Bermuda) Ltd. made fraudulent misrepresentations. In March 2024, Credit Suisse Life (Bermuda) Ltd. was
granted leave to appeal the judgment to the Judicial Committee of the Privy Council and a hearing on the appeal was
held in June 2025. The Bermuda Court of Appeal also ordered that the current stay continue pending determination of
the appeal on the condition that the damages awarded, plus interest calculated at the Bermuda statutory rate of
%,
remain in the escrow account. In November 2025, the Judicial Committee of the Privy Council issued its final judgment
on the appeal, denying Credit Suisse Life (Bermuda) Ltd.’s appeal on liability, but partially granting its appeal concerning
the quantum of damages and directing the parties to recalculate damages.
In Switzerland, certain civil lawsuits have been commenced against Credit Suisse AG and UBS AG (as the successor of
Credit Suisse AG) in the Court of First Instance of Geneva since March 2023.
7. Mozambique matter
Credit Suisse was subject to investigations by regulatory and enforcement authorities, as well as civil litigation, regarding
certain Credit Suisse entities’ arrangement of loan financing to Mozambique state enterprises, Proindicus S.A. and
Empresa Moçambicana de Atum S.A. (EMATUM), a distribution to private investors of loan participation notes (LPN)
related to the EMATUM financing in September 2013, and certain Credit Suisse entities’ subsequent role in arranging
the exchange of those LPNs for Eurobonds issued by the Republic of Mozambique. In 2019, three former Credit Suisse
employees pleaded guilty in the EDNY to accepting improper personal benefits in connection with financing transactions
carried out with two Mozambique state enterprises.
In October 2021, Credit Suisse reached settlements with the DOJ, the US Securities and Exchange Commission (SEC), the
UK Financial Conduct Authority (FCA) and FINMA to resolve inquiries by these agencies, including findings that Credit
Suisse failed to appropriately organize and conduct its business with due skill and care, and manage risks. Credit Suisse
Group AG entered into a three-year Deferred Prosecution Agreement (DPA) with the DOJ in connection with the criminal
information charging Credit Suisse Group AG with conspiracy to commit wire fraud and Credit Suisse Securities (Europe)
Limited (CSSEL) entered into a Plea Agreement and pleaded guilty to one count of conspiracy to violate the US federal
wire fraud statute. Under the terms of the DPA, UBS Group AG (as successor to Credit Suisse Group AG) continued
compliance enhancement and remediation efforts agreed by Credit Suisse, and undertake additional measures as outlined
in the DPA. In January 2025, as permitted under the terms of the DPA, the DOJ elected to extend the term of the DPA
until January 2026.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 297
Note 17 Provisions and contingent liabilities (continued)
8. ETN-related litigation
XIV litigation: Since March 2018, three class action complaints were filed in the SDNY on behalf of a putative class of
purchasers of VelocityShares Daily Inverse VIX Short-Term Exchange Traded Notes linked to the S&P 500 VIX Short-Term
Futures Index (XIV ETNs). The complaints have been consolidated and asserts claims against Credit Suisse for violations
of various anti-fraud and anti-manipulation provisions of US securities laws arising from a decline in the value of XIV ETNs
in February 2018. On appeal from an order of the SDNY dismissing all claims, the Second Circuit issued an order that
reinstated a portion of the claims. In decisions in March 2023 and February 2025, the court granted class certification for
two of the three classes proposed by plaintiffs and denied class certification of the third proposed class.
9. Credit Suisse anti-money laundering matters
In December 2020, the Swiss Office of the Attorney General brought charges against Credit Suisse AG and other parties
concerning the diligence and controls applied to a historical relationship with Bulgarian former clients who are alleged
to have laundered funds through Credit Suisse AG accounts. In June 2022, following a trial, Credit Suisse AG was
convicted in the Swiss Federal Criminal Court of certain historical organizational inadequacies in its anti-money-
laundering framework and ordered to pay a fine of CHF
m. In addition, the court seized certain client assets in the
amount of approximately CHF
m and ordered Credit Suisse AG to pay a compensatory claim in the amount of
approximately CHF
m. Credit Suisse AG appealed the decision to the Chamber of Appeals of the Swiss Federal Criminal
Court (Chamber of Appeals). Following the merger of UBS AG and Credit Suisse AG, UBS AG confirmed the appeal. In
November 2024, the Chamber of Appeals acquitted UBS AG and annulled the fine and compensatory claim ordered by
the first instance court. Subsequently, the Office of the Attorney General has appealed the judgment to the Swiss Federal
Supreme Court. UBS has also appealed, limited to the issue of whether a successor entity by merger can be criminally
liable for acts of the predecessor entity. In July 2025, the Swiss Federal Supreme Court remanded the case back to the
Chamber of Appeals for a full and reasoned judgment. In March 2026, the Chamber of Appeals issued a judgment again
acquitting UBS AG. This judgment may be appealed by the parties to the Swiss Federal Supreme Court. Separately, in
November 2025, the Swiss Office of the Attorney General filed criminal charges against UBS Group and UBS AG, as the
successors to Credit Suisse Group AG and Credit Suisse AG, respectively, alleging that Credit Suisse failed to maintain
appropriate controls to detect and prevent money laundering in connection with certain payments from accounts at
Credit Suisse by parties associated with the Mozambique transactions between 2013 and 2016.
10. Archegos
Credit Suisse and UBS have received requests for documents and information in connection with inquiries, investigations
and / or actions relating to their relationships with Archegos Capital Management (Archegos), including from FINMA
(assisted by a third party appointed by FINMA), the DOJ, the SEC, the US Federal Reserve, the US Commodity Futures
Trading Commission (CFTC), the US Senate Banking Committee, the Prudential Regulation Authority (PRA), the FCA, the
WEKO, the Hong Kong Competition Commission and other regulatory and governmental agencies. UBS is cooperating
with the authorities in these matters. In July 2023, CSI and CSSEL entered into a settlement agreement with the PRA
providing for the resolution of the PRA’s investigation. Also in July 2023, FINMA issued a decree ordering remedial
measures and the Federal Reserve Board issued an Order to Cease and Desist. Under the terms of the order, Credit Suisse
paid a civil money penalty and agreed to undertake certain remedial measures relating to counterparty credit risk
management, liquidity risk management and non-financial risk management, as well as enhancements to board oversight
and governance. UBS Group, as the legal successor to Credit Suisse Group AG, is a party to the FINMA decree and Federal
Reserve Board Cease and Desist Order.
Civil actions relating to Credit Suisse’s relationship with Archegos have been filed against Credit Suisse and / or certain
officers and directors, including claims for breaches of fiduciary duties. In one such case, the parties agreed in July 2025
to a settlement of USD
m that remains subject to court approval. Because the action was brought by shareholders on
behalf of and for the benefit of Credit Suisse, after deducting any Court-awarded attorneys’ fees and expenses and any
applicable taxes, the cash recovery for the settlement will go to UBS, as successor to Credit Suisse, and will result in a net
recovery for UBS.
11. Credit Suisse financial disclosures
Credit Suisse Group AG and certain directors, officers and executives have been named in securities class action
complaints pending in the SDNY and New Jersey federal court. These complaints, filed since 2023 on behalf of purchasers
of Credit Suisse shares, additional tier 1 capital notes, and other securities, allege that defendants made misleading
statements regarding: (i) customer outflows in late 2022 and early 2023; (ii) the adequacy of Credit Suisse’s financial
reporting controls; and (iii) the adequacy of Credit Suisse’s risk management processes, and include allegations relating
to Credit Suisse Group AG’s merger with UBS Group AG. As of November 2025, the SDNY certified classes in two cases.
Credit Suisse has received requests for documents and information from regulatory and governmental agencies in
connection with inquiries, investigations and/or actions relating to these matters, as well as for other statements regarding
Credit Suisse’s financial condition, including from the SEC, the DOJ and FINMA. UBS is cooperating with the authorities
in these matters.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 298
Note 17 Provisions and contingent liabilities (continued)
12. Merger-related litigation
Certain Credit Suisse Group AG affiliates and certain directors, officers and executives have been named in class action
complaints pending in the SDNY. One complaint, brought on behalf of Credit Suisse shareholders, alleges breaches of
fiduciary duty under Swiss law and civil RICO claims under US federal law. In February 2024, the court granted
defendants’ motions to dismiss the civil RICO claims and conditionally dismissed the Swiss law claims pending defendants’
acceptance of jurisdiction in Switzerland. In March 2024, having received consents to Swiss jurisdiction from all
defendants served with the complaint, the court dismissed the Swiss law claims against those defendants. In February
2026, the Second Circuit Court of Appeals affirmed the dismissal. Plaintiffs have appealed the dismissal. Additional
complaints, brought on behalf of holders of Credit Suisse additional tier 1 capital notes (AT1 noteholders) allege breaches
of fiduciary duty under Swiss law, arising from a series of scandals and misconduct, which led to Credit Suisse Group
AG’s merger with UBS Group AG, causing losses to shareholders and AT1 noteholders. Motions to dismiss these
complaints were granted in March 2024 and September 2024 on the basis that Switzerland is the most appropriate
forum for litigation. Plaintiffs in two of these cases appealed the dismissal and in January 2026 withdrew their appeals.
Note 18 Other liabilities
a) Other financial liabilities measured at amortized cost
USD m
31.12.25
31.12.24
Other accrued expenses
Accrued interest expenses
Settlement and clearing accounts
Lease liabilities
Other
Total other financial liabilities measured at amortized cost
b) Other financial liabilities designated at fair value
USD m
31.12.25
31.12.24
Financial liabilities related to unit-linked investment contracts
Securities financing transactions
Over-the-counter debt instruments and other
Total other financial liabilities designated at fair value
c) Other non-financial liabilities
USD m
31.12.25
31.12.24
Compensation-related liabilities
of which: Deferred Contingent Capital Plan
of which: financial advisor compensation plans
of which: cash awards and other compensation plans
of which: net defined benefit liability
of which: other compensation-related liabilities
1
Current tax liabilities
Deferred tax liabilities
VAT, withholding tax and other tax payables
Deferred income
Liabilities of disposal groups held for sale
2
Other
Total other non-financial liabilities
1 Includes liabilities for payroll taxes and untaken vacation. 2 Refer to Note 28 for more information about the sale of Select Portfolio Servicing.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 299
Additional information
Note 19 Expected credit loss measurement
a) Expected credit losses in the period
Total net credit loss expenses were USD
m in 2025, reflecting net credit loss expenses of USD
m related to stage 1 and
2 positions and net credit loss expenses of USD
m related to credit-impaired (stage 3 and purchased credit-impaired)
positions, predominantly in the corporate lending portfolios.
›
Refer to Note 19b for more information regarding changes to ECL models, scenarios, scenario weights and post-model
adjustments and to Note 19c for more information regarding the development of ECL allowances and provisions
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Purchased
Total
For the year ended 31.12.25
Global Wealth Management
(12 )
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
(2 )
(1 )
Group Items
Total
For the year ended 31.12.24
Global Wealth Management
(60 )
(16 )
Personal & Corporate Banking
(63 )
(21 )
Asset Management
(1 )
(1 )
Investment Bank
Non-core and Legacy
(30 )
Group Items
(2 )
(2 )
Total
(99 )
For the year ended 31.12.23
Global Wealth Management
Personal & Corporate Banking
Asset Management
(1 )
Investment Bank
Non-core and Legacy
Group Items
Total
b) Changes to ECL models, scenarios, scenario weights and key inputs
Refer to Note 1a for information about the principles governing expected credit loss (ECL) models, scenarios, scenario
weights and key inputs.
Governance
Comprehensive cross-functional and cross-divisional governance processes are in place and are used to discuss and approve
scenario updates and weights, to assess whether significant increases in credit risk resulted in stage transfers, to review
model outputs and to reach conclusions regarding post-model adjustments.
Model changes
During 2025, the regular and the Credit Suisse integration-related model review and enhancement processes led to
adjustments in the probability of default (PD), loss given default (LGD) and credit conversion factor (CCF) models, resulting
in net releases of USD
m. This included USD
m releases related to real estate lending, driven by USD
m releases
in Switzerland, partly offset by USD
m expenses in the US. The corporate lending portfolio contributed USD
m
expenses (USD
m expenses in Personal & Corporate Banking, partly offset by USD
m releases in the Investment Bank),
with USD
m expenses in the remaining segments.
Scenario and key input updates
During 2025, the scenarios and related macroeconomic factors were updated from those applied at the end of 2024 by
considering the prevailing economic and political conditions and uncertainty. The review focused on events that
significantly changed the economic outlook during the year: an escalation of trade and geopolitical tensions globally,
along with uncertainty regarding the inflation and growth outlook leading to divergent monetary policy paths.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 300
Note 19 Expected credit loss measurement (continued)
Baseline scenario:
used for UBS’s business planning purposes, are broadly in line with external benchmarks, such as those from Bloomberg
Consensus, Oxford Economics and the International Monetary Fund World Economic Outlook. The expectation for 2026
is that the global economy will navigate a soft patch in the first half of the year, as tariffs still feed through to prices and
exports, but accelerate in the second half of the year, supported by improved confidence, a positive credit impulse and
several major advanced economies benefiting from fiscal stimulus. In the US, inflation is likely to remain elevated in the
first half of the year and weigh on real incomes, but the support from the One Big Beautiful Bill should emerge over time.
Weakness in the labor market should prompt the Federal Reserve to deliver more cuts in the next few meetings, although
in a measured fashion, as inflation hovering above its target remains a risk.
Long-term interest rates in key developed
markets are expected to rise slightly over the rest of the year. House price growth for 2026 is supported by strong data
in 2025. However, less price upside is expected in the following months as the economy weakens.
Moderate stagflation crisis scenario:
The first hypothetical downside scenario is the moderate stagflation crisis scenario. The
moderate stagflation crisis scenario assumes heightened geopolitical and trade tensions that disrupt supply chains and drive
inflationary pressures. Despite signs of slowing global demand, resilient labor markets sustain upward wage pressures and
escalating geopolitical tensions prompt central banks to hike interest rates and actively reduce their balance sheets. Yield
curves steepen and the global economy and financial markets are negatively affected.
Global trade war scenario:
The second downside scenario is aligned with the 2026 Group binding stress scenario and was
updated in 2025 to reflect relevant risks. The global trade war scenario assumes heightened geopolitical tensions and
explores tail risks concerning US protectionist policies and retaliation by the US’s trading partners. US policies solidify
Switzerland as a safe-haven country and the US dollar depreciates against the Swiss franc. The scenario assumes that
disruptions in global trade contribute to rising inflation and a large economic contraction. Despite rising inflation, the Federal
Reserve makes measured rate cuts, and other major central banks in advanced economies follow the same course.
Asset price appreciation scenario:
The upside scenario is based on positive developments, such as an easing of geopolitical
tensions across the globe, less fear of a Chinese hard landing, falling oil prices and resilient labor markets, which enhance
economic stability and confidence. Under these circumstances, the adoption of productivity-enhancing technologies boosts
economic growth and strengthens risk appetite. As a result, asset prices rise sustainably.
The table below details the key assumptions for the four scenarios applied as of 31 December 2025.
Scenario generation, review process and governance
A team of economists within Group Risk Control develops the forward-looking macroeconomic assumptions, supported
and challenged by experts from relevant functions.
The scenarios, their weights and the key macroeconomic and other factors are subject to a critical assessment by the
IFRS 9 Scenario Sounding Sessions and ECL Management Forum, which include senior management from Group Risk
and Group Finance. An important consideration in the review is whether there may be particular credit risk concerns that
are not possible to address systematically, requiring post-model adjustments for stage allocation and ECL allowances.
The Group Chief Financial Officer and the Group Chief Risk Officer ratify the decisions taken by the ECL Management
Forum.
Scenario weights and post-model adjustments
The asset price appreciation scenario was added, two scenarios were substituted and -weights were adjusted over the
course of 2025. The mild debt crisis scenario was replaced by the moderate stagflation crisis scenario, and the
stagflationary geopolitical crisis scenario was replaced by the global trade war scenario. Scenario weights were adjusted
during 2025 in line with the shift in risks and their coverage in the scenarios. The asset price appreciation, baseline,
moderate stagflation crisis and global trade war scenarios had a
%,
%,
% and
% weight, respectively, as of
31 December 2025.
However, unquantifiable risks continue to be relevant, as geopolitical risks remained high in 2025, and the impact on the
world economy from escalations with unforeseeable consequences could be severe. In the near term, this uncertainty
relates primarily to developments in US domestic and foreign policies, the Russia–Ukraine war, European security, and
regional conflicts.
Models, which are based on supportable statistical information from past experiences regarding interdependencies of
macroeconomic factors and their implications for credit risk portfolios, cannot comprehensively reflect such extraordinary
events, such as a pandemic or a fundamental change in the world political order. Rather than creating multiple additional
scenarios to attempt to gauge these risks and applying model parameters that lack supportable information and cannot
be robustly validated, management continued to also apply post-model adjustments.
Total stage 1 and 2 allowances and provisions were USD
m as of 31 December 2025 and included post-model
adjustments of USD
m (31 December 2024: USD
m). Post-model adjustments were made to address uncertainty
levels, including those arising from the broad geopolitical uncertainty and US trade tariffs, and mainly relate to corporate
lending books in Switzerland. In 2024, post-model adjustments also addressed uncertainty levels to align Credit Suisse’s
model outputs with those expected under the comparable UBS models.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 301
Note 19 Expected credit loss measurement (continued)
Scenario weights were as illustrated in the table below.
Economic scenarios and weights applied
Assigned weights in %
ECL scenario
31.12.25
31.12.24
Asset price appreciation / inflation
Baseline
Mild debt crisis
Moderate stagflation crisis
Stagflationary geopolitical crisis
Global trade war
Scenario assumptions
One year
Three years cumulative
31.12.25
Asset price
appreciation
Baseline
Moderate
stagflation
crisis
Global trade
war
Asset price
appreciation
Baseline
Moderate
stagflation
crisis
Global trade
war
Real GDP growth (percentage change)
United States
(1.4 )
(6.8 )
(2.7 )
Eurozone
(1.6 )
(7.9 )
(0.6 )
(4.6 )
Switzerland
(1.2 )
(6.3 )
(3.0 )
Consumer price index (percentage change)
United States
Eurozone
Switzerland
Unemployment rate (end-of-period level, %)
United States
Eurozone
Switzerland
Fixed income: 10-year government bonds (change in yields, basis points)
USD
EUR
CHF
Equity indices (percentage change)
S&P 500
(25.0 )
(50.0 )
(5.2 )
(33.0 )
EuroStoxx 50
(25.0 )
(50.0 )
(13.9 )
(33.5 )
SPI
(25.0 )
(50.0 )
(9.0 )
(29.0 )
Swiss real estate (percentage change)
Single-Family Homes
(3.4 )
(18.5 )
(4.2 )
(25.6 )
Other real estate (percentage change)
United States (S&P / Case–Shiller)
(6.2 )
(25.6 )
(7.3 )
(33.0 )
Eurozone (House Price Index)
(5.1 )
(12.4 )
(6.7 )
(18.8 )
Scenario assumptions
One year
Three years cumulative
31.12.24
Asset price
inflation
Baseline
Mild debt
crisis
Stagflationary
geopolitical
crisis
Asset price
inflation
Baseline
Mild debt
crisis
Stagflationary
geopolitical
crisis
Real GDP growth (percentage change)
United States
(1.4 )
(4.8 )
(4.4 )
Eurozone
(1.7 )
(5.6 )
(0.1 )
(5.7 )
Switzerland
(1.1 )
(4.8 )
(4.9 )
Consumer price index (percentage change)
United States
Eurozone
Switzerland
(0.2 )
Unemployment rate (end-of-period level, %)
United States
Eurozone
Switzerland
Fixed income: 10-year government bonds (change in yields, basis points)
USD
(137 )
(77 )
EUR
(113 )
(68 )
CHF
(4 )
(22 )
(1 )
Equity indices (percentage change)
S&P 500
(28.1 )
(56.5 )
(14.0 )
(51.2 )
EuroStoxx 50
(0.6 )
(27.9 )
(56.6 )
(18.3 )
(52.7 )
SPI
(0.6 )
(26.0 )
(56.6 )
(13.0 )
(52.7 )
Swiss real estate (percentage change)
Single-Family Homes
(4.3 )
(18.5 )
(3.0 )
(28.6 )
Other real estate (percentage change)
United States (S&P / Case–Shiller)
(7.6 )
(20.2 )
(5.2 )
(30.5 )
Eurozone (House Price Index)
(6.1 )
(8.4 )
(5.6 )
(12.9 )
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 302
Note 19 Expected credit loss measurement (continued)
c) Development of ECL allowances and provisions
The ECL allowances and provisions recognized in the period are impacted by a variety of factors, such as:
–
the effect of selecting and updating forward-looking scenarios and the respective weights;
–
origination of new instruments during the period;
–
the effect of passage of time (lower residual lifetime PD and the effect of discount unwind) as the ECL on an instrument
for the remaining lifetime decreases (all other factors remaining the same);
–
derecognition of instruments in the period;
–
change in individual asset quality of instruments;
–
movements from a maximum 12-month ECL to the recognition of lifetime ECL (and vice versa) following transfers
between stages 1 and 2;
–
movements from stages 1 and 2 to stage 3 (credit-impaired status) when default has become certain and PD increases
to 100% (or vice versa);
–
changes in models or updates to model parameters;
–
write-offs; and
–
foreign exchange translation for assets denominated in foreign currencies.
The table below explains the changes in the ECL allowances and provisions for on- and off-balance sheet financial
instruments and credit lines within the scope of ECL requirements between the beginning and the end of the period due
to the factors listed above.
Development of ECL allowances and provisions
USD m
Total
Stage 1
Stage 2
Stage 3
PCI
Balance as of 31 December 2024
(2,507 )
(487 )
(459 )
(1,253 )
(309 )
Net movement from new and derecognized transactions
1
(31 )
of which: Private clients with mortgages
of which: Real estate financing
(3 )
of which: Large corporate clients
(12 )
(22 )
of which: Ship and aircraft financing
(2 )
(2 )
of which: SME clients
of which: Other
(8 )
Remeasurements with stage transfers
2
(284 )
(309 )
(4 )
of which: Private clients with mortgages
of which: Real estate financing
(3 )
(7 )
of which: Large corporate clients
(88 )
(32 )
(76 )
of which: SME clients
(149 )
(6 )
(144 )
of which: Other
(87 )
(1 )
(82 )
(4 )
Remeasurements without stage transfers
3
(253 )
(52 )
(206 )
of which: Private clients with mortgages
(19 )
(9 )
(12 )
of which: Real estate financing
(24 )
(5 )
(19 )
of which: Large corporate clients
(61 )
(20 )
(1 )
(38 )
(2 )
of which: Ship and aircraft financing
of which: SME clients
(142 )
(22 )
(8 )
(116 )
of which: Other
(26 )
(5 )
(20 )
(1 )
(8 )
(6 )
(3 )
(6 )
(7 )
Model changes
4
Movements with profit or loss impact
5
(524 )
(46 )
(515 )
(2 )
Movements without profit or loss impact (write-off, FX and other)
6
(27 )
(44 )
(8 )
Balance as of 31 December 2025
(3,058 )
(576 )
(428 )
(1,756 )
(298 )
1 Represents the increase and decrease in allowances and provisions resulting from financial instruments (including guarantees and facilities) that were newly originated, purchased or renewed and from the final
derecognition of loans or facilities on their maturity date or earlier. 2 Represents the remeasurement between 12-month and lifetime ECL due to stage transfers. 3 Represents the change in allowances and
provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposure profile, PD and LGD changes, and unwinding of the time value.
4 Represents the change in the allowances and provisions related to changes in models and methodologies. 5 Includes ECL movements from new and derecognized transactions, remeasurement changes, and model
and methodology changes. 6 Represents the decrease in allowances and provisions resulting from write-offs of the ECL allowance against the gross carrying amount when all or part of a financial asset is deemed
uncollectible or forgiven and movements in foreign exchange rates.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 303
Note 19 Expected credit loss measurement (continued)
Movements with profit or loss impact:
m.
–
Net movement from new and derecognized transactions
m and stage 2 releases
of USD
m. Stage 1 increases were mainly driven by growth in the corporate lending portfolios, while stage 2 releases
were predominantly due to repayments in other smaller segments.
–
Remeasurements with stage transfers
m in releases in stage 1, primarily driven by the corporate lending
portfolio and USD
m releases in stage 2. Movements in stage 2 include expenses of USD
m following corporate
credit reviews. These expenses were offset by releases of USD
m in the real estate lending portfolio.
–
Stage 3 exposures which were already defaulted as of 31 December 2025 contributed approximately
% to stage 3
expenses.
–
For model changes
, refer to Note 19b for more information.
Movements without profit or loss impact
: stage 1 and 2 allowances increased by USD
m, almost entirely due to foreign
exchange effects.
Stage 3 and PCI allowances decreased by USD
m, driven by net write-offs of USD
m, partly offset by foreign
exchange effects and other movements totaling USD
m.
Development of ECL allowances and provisions
USD m
Total
Stage 1
Stage 2
Stage 3
PCI
Balance as of 31 December 2023
(2,261 )
(700 )
(416 )
(993 )
(153 )
Net movement from new and derecognized transactions
1
(21 )
of which: Private clients with mortgages
(6 )
of which: Real estate financing
of which: Large corporate clients
(12 )
(6 )
(34 )
of which: SME clients
of which: Other
(3 )
(2 )
(2 )
Remeasurements with stage transfers
2
(509 )
(53 )
(488 )
of which: Private clients with mortgages
(6 )
(7 )
of which: Real estate financing
(8 )
(4 )
(5 )
of which: Large corporate clients
(100 )
(20 )
(101 )
of which: SME clients
(295 )
(11 )
(287 )
of which: Other
(100 )
(10 )
(96 )
Remeasurements without stage transfers
3
(30 )
(153 )
(40 )
of which: Private clients with mortgages
(7 )
(2 )
of which: Real estate financing
of which: Large corporate clients
(25 )
(32 )
of which: SME clients
(90 )
(97 )
of which: Other
(40 )
(19 )
(29 )
(23 )
(9 )
(21 )
Model changes
4
(49 )
(14 )
(35 )
Movements with profit or loss impact
5
(551 )
(74 )
(612 )
(39 )
Movements without profit or loss impact (write-off, FX and other)
6
(116 )
Balance as of 31 December 2024
(2,507 )
(487 )
(459 )
(1,253 )
(309 )
1 Represents the increase and decrease in allowances and provisions resulting from financial instruments (including guarantees and facilities) that were newly originated, purchased or renewed and from the final
derecognition of loans or facilities on their maturity date or earlier. 2 Represents the remeasurement between 12-month and lifetime ECL due to stage transfers. 3 Represents the change in allowances and
provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposure profile, PD and LGD changes, and unwinding of the time value.
4 Represents the change in the allowances and provisions related to changes in models and methodologies. 5 Includes ECL movements from new and derecognized transactions, remeasurement changes, and model
and methodology changes. 6 Represents the decrease in allowances and provisions resulting from write-offs of the ECL allowance against the gross carrying amount when all or part of a financial asset is deemed
uncollectible or forgiven and movements in foreign exchange rates.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements 304
Note 19 Expected credit loss measurement (continued)
As explained in Note 1a, the assessment of a significant increase in credit risk (an SICR) considers a number of qualitative
and quantitative factors to determine whether a stage transfer between stage 1 and stage 2 is required, although the
primary assessment considers changes in PD based on rating analyses and economic outlook. Additionally, UBS takes into
consideration counterparties that have moved to a credit watch list and those with payments that are at least 30 days
past due.
ECL stage 2 (“significant deterioration in credit risk”) allowances / provisions as of 31 December 2025 – classification by
trigger
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Filing: 20-F - UBS Group AG (UBS)
Accession Number: 0001610520-26-000023
FAQ
What is UBS (UBS) reporting in its 2025 Form 20-F filing?
UBS is reporting its full-year 2025 results and disclosures in a Form 20-F annual report. The filing incorporates the UBS Group AG Annual Report 2025, covering strategy, risk factors, regulation, liquidity, capital, governance, compensation, and detailed IFRS financial statements.
How many UBS (UBS) ordinary shares were outstanding at 31 December 2025?
UBS reports 3,341,581,714 ordinary shares outstanding as of 31 December 2025. This figure includes 249,882,523 treasury shares. The share count provides investors with the capital base and potential dilution context when reviewing per-share metrics in the company’s detailed financial statements.
Which accounting standards does UBS (UBS) use in its 2025 Form 20-F?
UBS prepares its consolidated financial statements under International Financial Reporting Standards as issued by the IASB. The filing also discusses changes to IFRS standards and interpretations, segment reporting, hedge accounting, and other technical notes that shape how assets, liabilities, income and expenses are recognized.
What does the UBS (UBS) 2025 Form 20-F say about Credit Suisse integration?
The filing directs readers to sections on “Integration of Credit Suisse” and related notes in the Annual Report. These sections describe organizational changes, acquisitions and disposals of subsidiaries and businesses, and how Credit Suisse integration fits into UBS’s evolution, strategy, and reported segment disclosures.
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The report references detailed sections on the Board of Directors, Group Executive Board, board committees, and change-of-control clauses. It also directs to comprehensive disclosures on executive and employee compensation, share-based and deferred compensation plans, and post-employment benefit plans in the notes to the financial statements.
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UBS highlights its employees section and human-rights and conduct statements, noting active engagement with employee representation groups. The UBS European Employee Forum and local works councils together represent 51.8% of the global workforce, reflecting structured dialogue on performance, workplace conditions and potential reorganizations.
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