UBS Lists USD 99 bn TLAC Debt, USD 19 bn AT1 in Q2 2025 6-K
Rhea-AI Filing Summary
UBS Group AG’s Form 6-K provides a detailed snapshot of its loss-absorbing capital stack as of 30 June 2025. Under the Swiss SRB rules the Group shows USD 19.0 bn of high-trigger Additional Tier 1 (AT1) capital across 20 perpetual issues, the largest being two USD-denominated USD 1.75 bn notes issued in November 2023. Tier 2 capital is minimal at USD 196 m, consisting mainly of legacy non-Basel III instruments that roll off in 2025-29.
The bulk of the bail-in buffer is TLAC-eligible senior unsecured debt of USD 99.3 bn spread over 130+ issues in multiple currencies and maturities out to 2055; USD- and EUR-denominated notes dominate, with the single largest line a USD 3.25 bn bond due May 2032. Instruments remain TLAC-eligible until one year before contractual maturity; several 2025-26 maturities (e.g., USD 2.5 bn 24 Sep 2025) will exit eligibility within the next 12 months.
The table also reflects that, following the 12 June 2023 merger with Credit Suisse Group AG, legacy CS obligations are now UBS obligations, though non-Basel III CS Tier 2 notes do not count toward gone-concern capacity. All figures are amortised face amounts adjusted for own-credit effects; totals may not sum due to rounding.
Positive
- USD 19 bn of AT1 capital provides a substantial going-concern cushion.
- USD 99 bn TLAC-eligible senior debt demonstrates strong compliance with Swiss SRB gone-concern requirements.
- Successful integration of former Credit Suisse debt into UBS capital stack without loss of eligibility for most instruments.
Negative
- Tier 2 capital is just USD 196 m, indicating heavy reliance on costlier AT1 and senior debt layers.
- Multiple large TLAC bonds mature or lose eligibility in 2025-26, exposing UBS to refinancing and spread-risk in a higher-rate cycle.
Insights
TL;DR: Filing confirms UBS holds sizeable USD 118 bn TLAC/AT1 buffer, comfortably above Swiss SRB minima; near-term maturities warrant monitoring.
Impactful/Neutrality: Neutral. The report is a scheduled disclosure with no new issuance or regulatory change. However, it reassures investors of UBS’s strong bail-in capacity—USD 19 bn AT1 plus USD 99 bn senior debt—after absorbing Credit Suisse. While Tier 2 is negligible, Swiss rules focus on AT1 and senior debt, so compliance remains solid. Key watch-points are USD ~11 bn of TLAC notes maturing or losing eligibility in 2025-26, implying refinancing needs in a higher-rate environment. Absence of earnings or CET1 ratios limits broader valuation insight.
FAQ
What is UBS’s total TLAC-eligible senior debt as of 30 June 2025?
How much Additional Tier 1 capital does UBS hold?
Why is UBS’s Tier 2 capital so low?
Did Credit Suisse bonds become UBS obligations?
Which large TLAC bonds will soon lose eligibility?
