UBS Switzerland AG H1 2025 profit up 9% to CHF 1.4 bn; equity falls
UBS Switzerland AG reported solid H1 2025 results: net profit climbed to CHF 1.37 bn from CHF 1.25 bn (+9%), while operating income surged 27% YoY to CHF 6.13 bn.
Rhea-AI Filing Summary
UBS Switzerland AG reported solid H1 2025 results: net profit climbed to CHF 1.37 bn from CHF 1.25 bn (+9%), while operating income surged 27% YoY to CHF 6.13 bn. Growth was broad-based—net interest income rose 24% to CHF 2.42 bn on higher lending spreads and volumes; fee & commission income jumped 14% to CHF 2.50 bn, aided by robust wealth-management activity; other ordinary income expanded six-fold to CHF 0.66 bn on higher subsidiary dividends.
Cost pressure increased: total operating expenses grew 36% to CHF 4.54 bn, driven by personnel (+52%) and G&A (+26%). Credit-loss expense also widened to CHF 109 m (vs CHF 40 m). Even so, operating profit improved 6% to CHF 1.60 bn and the cost/income ratio stayed below 75%.
The balance sheet shrank slightly to CHF 508.9 bn (-1%), with mortgage loans stable at CHF 281 bn. Equity fell to CHF 22.7 bn (-11%) after a CHF 4.3 bn cash & in-kind dividend, partly offset by current-period earnings. Contingent liabilities decreased to CHF 12.0 bn (-20%), and joint-and-several guarantees to UBS AG edged down to CHF 2.1 bn. Management transferred the Wealth Management International and Global Financial Intermediaries businesses to UBS AG via a CHF 100 m dividend in kind; UBS AG’s CHF 292 m profit share is reflected in higher fee expense.
Positive
- Net profit rose 9% YoY to CHF 1.37 bn, extending earnings momentum.
- Operating income climbed 27% to CHF 6.13 bn on stronger interest and fee revenue.
- Contingent liabilities fell by CHF 3 bn to CHF 12.0 bn, lowering off-balance-sheet risk.
- Joint-and-several guarantees to UBS AG declined to CHF 2.1 bn from CHF 2.4 bn.
Negative
- Total equity dropped 11% to CHF 22.7 bn after a CHF 4.3 bn distribution.
- Operating expenses jumped 36% YoY, pressuring efficiency.
- Credit-loss expense nearly tripled to CHF 109 m, signaling rising credit risk.
Insights
TL;DR: Profit up 9%, revenue strong; dividend drains equity but risk metrics steady—overall mildly accretive.
Income momentum is encouraging: 27% topline growth outpaces the 36% jump in costs, producing a 6% rise in operating profit despite heavier credit-loss provisions. Net interest and fee income both show double-digit gains, benefiting from higher Swiss rates and client activity. Profitability remains sound with a ~70% cost/income ratio.
The large CHF 4.3 bn distribution—partly linked to the strategic transfer of WM International—reduces equity but is a shareholder cash return, not an operating shortfall. CET1 data isn’t disclosed here, yet lower contingent liabilities and declining joint-and-several exposures ease risk. Overall impact: positive for income investors; capital watchers will monitor equity rebuild.
TL;DR: Higher expenses and credit losses offset by falling off-balance risks; equity depletion merits attention.
Operational leverage turned negative this half: expenses rose faster than revenues, fueled by integration and restructuring outlays. Credit-loss expense nearly tripled, hinting at early asset-quality pressure. The 11% equity drop narrows loss-absorption capacity and could weigh on future dividend flexibility.
However, liquidity stays ample—CHF 100 bn at central banks—and contingent liabilities and covered-bond guarantees are trending down. The dividend-in-kind transfer is accounting-driven, with UBS AG providing collateral. Net effect: neutral; capital and cost trends should be watched.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did UBS Switzerland AG earn in H1 2025?
The bank posted a net profit of CHF 1.37 bn, up 9% versus H1 2024.
What drove revenue growth for UBS Switzerland AG in the first half of 2025?
Revenue was lifted by higher net interest income (CHF 2.42 bn, +24%) and higher fee & commission income (CHF 2.50 bn, +14%).
Why did equity decrease despite higher profits?
A CHF 4.3 bn cash and in-kind dividend outweighed retained earnings, cutting equity to CHF 22.7 bn.
How did credit-loss provisions change?
Credit-loss expense increased to CHF 109 m, compared with CHF 40 m in the prior-year period.
What is the status of UBS Switzerland AG’s contingent liabilities?
Contingent liabilities fell to CHF 12.0 bn from CHF 15.0 bn at year-end 2024.
What structural changes occurred in 2025?
UBS transferred its Wealth Management International and Global Financial Intermediaries businesses to UBS AG via a CHF 100 m dividend in kind.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Date: August 5, 2025
UBS Group AG
(Registrant's Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
(Address of principal executive office)
Commission File Number: 1-36764
UBS AG
(Registrant's Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
Aeschenvorstadt 1, 4051 Basel, Switzerland
(Address of principal executive offices)
Commission File Number: 1-15060
Indicate by check mark whether the registrants file or will file annual reports under cover of
Form 20-F or Form 40-
F.
Form 20-F
☒
☐
This Form 6-K consists of the UBS Switzerland AG standalone financial information for the six months
ended 30 June 2025, which appears immediately following this page.
UBS Switzerland AG
30 June 2025
Table of contents
UBS Switzerland AG standalone
interim financial information
1
Income statement
2
Balance sheet
3
Joint and several liability
3
Statement of changes in equity
Notes to the UBS Switzerland AG standalone interim
financial information
4
Basis of accounting
Appendix
5
Cautionary statement
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UBS Switzerland AG standalone
UBS Switzerland AG standalone interim financial information
Income statement
Year-to-date
CHF m
30.6.25
30.6.24
Interest and discount income
Interest and dividend income from financial investments
Interest expense
Gross interest income
Credit loss (expense) / release
Net interest income
Fee and commission income from securities and investment business
Credit-related fees and commissions
Other fee and commission income
Fee and commission expense
Net fee and commission income
Net trading income
Net income from disposal of financial investments
Dividend income from investments in subsidiaries and other participations
Sundry ordinary income
Sundry ordinary expenses
Other income from ordinary activities
Total operating income
Personnel expenses
General and administrative expenses
Subtotal operating expenses
Impairment of investments in subsidiaries and other participations
Depreciation and impairment of property, equipment and software
Amortization and impairment of goodwill and other intangible assets
Changes in provisions for litigation, regulatory and similar matters, and other provisions
Total operating expenses
Operating profit
Extraordinary income
Tax expense / (benefit)
Net profit / (loss) for the period
1 Represents the income statement of UBS Switzerland AG from before the merger with Credit Suisse (Schweiz) AG, which took place on 1 July 2024. For more information about the merger of UBS Switzerland AG
with Credit Suisse (Schweiz) AG, refer to the 2024 standalone financial statements of UBS Switzerland AG, available under “Holding company and significant regulated subsidiaries and sub-groups” at
ubs.com/investors.
UBS Switzerland AG standalone
Balance sheet
CHF m
30.6.25
31.12.24
Assets
Cash and balances at central banks
Due from banks
Receivables from securities financing transactions
Due from customers
Mortgage loans
Trading portfolio assets
Derivative financial instruments
Financial investments
Accrued income and prepaid expenses
Investments in subsidiaries and other participations
Property, equipment and software
Goodwill and other intangible assets
Other assets
Total assets
of which: subordinated assets
of which: subject to mandatory conversion and / or debt waiver
Liabilities
Due to banks
of which: total loss-absorbing capacity eligible
Payables from securities financing transactions
Due to customers
Trading portfolio liabilities
Derivative financial instruments
Bonds issued and loans from central mortgage institutions
Accrued expenses and deferred income
Other liabilities
Provisions
Total liabilities
Equity
Share capital
Statutory capital reserve
of which: capital contribution reserve
of which: other statutory capital reserve
Voluntary earnings reserve
Net profit / (loss) for the period
Total equity
Total liabilities and equity
of which: subordinated liabilities
of which: subject to mandatory conversion and / or debt waiver
UBS Switzerland AG standalone
Balance sheet (continued)
CHF m
30.6.25
31.12.24
Off-balance sheet items
Contingent liabilities, gross
Sub-participations
Contingent liabilities, net
of which: guarantees to third parties related to subsidiaries
of which: credit guarantees and similar instruments
of which: performance guarantees and similar instruments
of which: documentary credits
Irrevocable commitments, gross
Sub-participations
Irrevocable commitments, net
of which: loan commitments
of which: payment commitment related to deposit insurance
Forward starting transactions
1
of which: reverse repurchase agreements
Liabilities for calls on shares and other equity instruments
1 Cash to be paid in the future by either UBS or the counterparty.
Joint and several liability
In June 2015, the Personal & Corporate Banking and Wealth Management businesses booked in Switzerland were
transferred from UBS AG to UBS Switzerland AG through an asset transfer in accordance with the Swiss Merger
Act.
As of 30 June 2025, the joint and several liability of UBS Switzerland AG for contractual obligations of UBS AG
amounted to CHF 2.1bn, compared with CHF 2.4bn as of 31 December 2024.
Furthermore, as of 30 June 2025, UBS Switzerland AG was also jointly and severally liable for UBS AG’s liabilities of
CHF 530m (compared with CHF 538m as of 31 December 2024) under the international covered bond program,
for which UBS Switzerland AG has pledged assets with a carrying value of CHF 912m. UBS AG has provided cash
deposits to UBS Switzerland AG to fully collateralize this contingent liability.
As of 30 June 2025, the probability of cash outflows for these matters was assessed to be remote and, as a result,
no exposures were included in the table above.
Statement of changes in equity
CHF m
Share capital
Statutory
capital reserve
Voluntary
earnings reserve
Net profit /
(loss) for the
period
Total equity
Balance as of 1 January 2025
Dividends and other distributions
1
Net profit / (loss) for the period
Balance as of 30 June 2025
1 Includes a CHF 100m dividend in kind. Refer to the “Notes to the UBS Switzerland AG standalone interim financial information” section of this report for more information.
UBS Switzerland AG standalone
Notes to the UBS Switzerland AG standalone interim financial information
Basis of accounting
The UBS Switzerland AG standalone interim financial statements are prepared in accordance with the interim
reporting requirements of Swiss GAAP (the FINMA Accounting Ordinance, FINMA Circular 2020/1 ”Accounting –
banks” and the Banking Ordinance).
The accounting policies are principally the same as for the consolidated financial statements of UBS Group AG
outlined in Note 1 to the consolidated financial statements of UBS Group AG included in the UBS Group AG Annual
Report 2024, available under “Annual reporting” at
ubs.com/investors
. Major differences between Swiss GAAP
requirements and IFRS Accounting Standards are described in Note 33 to the consolidated financial statements of
UBS Group AG. Further information about the accounting policies applied for the standalone financial statements
of UBS Switzerland AG is provided in Note 2 to the UBS Switzerland AG standalone financial statements as of
31 December 2024, available under “Holding company and significant regulated subsidiaries and sub-groups” at
ubs.com/investors
.
In preparing the interim financial information for UBS Switzerland AG, the same accounting policies and methods
of computation have been applied as in the UBS Switzerland AG standalone financial statements as of and for the
year ended 31 December 2024.
UBS decided to consolidate the Wealth Management International business and the Global Financial Intermediaries
business booked in Switzerland in UBS AG to further optimize Group legal and operational structures and to address
regulatory considerations.
In the second quarter of 2025, the beneficial ownership of the respective heritage UBS businesses booked in UBS
Switzerland AG was transferred from UBS Switzerland AG to UBS AG, with effect from 1
January
2025. The transfer
was made in the form of a dividend in kind amounting to CHF 100m reflecting the net asset value of the business
in scope. UBS Switzerland AG will continue to manage the businesses under a contractual relationship with UBS
AG until the completion of legal transfer, which is expected to take place in 2028, and will continue to recognize
the underlying Wealth Management International and Global Financial Intermediaries assets and liabilities until
then. UBS AG’s share of the net profits of CHF
292m for the first half of 2025 is reflected in
Fee and commission
expense
.
This interim financial information is unaudited and should be read in conjunction with the audited 2024 standalone
financial statements of UBS Switzerland AG, available under “Holding company and significant regulated
subsidiaries and sub-groups” at
ubs.com/investors
.
UBS Switzerland AG standalone
Cautionary statement |
of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating
to securities of or relating to UBS Group AG, UBS AG or their affiliates should be made on the basis of this report. Refer to UBS’s most recent annual report on
Form 20-
F,
quarterly reports and other information furnished to or filed with the US Securities and Exchange Commission (the SEC) on Form 6-K, available at
ubs.com/investors
, for additional information.
Rounding |
disclosed in text and tables are calculated on the basis of unrounded figures. Absolute changes between reporting periods disclosed in the text, which can be
derived from numbers presented in related tables, are calculated on a rounded basis.
Tables |
available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis. Values
that are zero on a rounded basis can be either negative or positive on an actual basis.
Websites |
of any such websites into this report.
UBS Switzerland AG
PO Box
CH-8098 Zurich
ubs.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this
report to be signed on their behalf by the undersigned, thereunto duly authorized.
UBS Group AG
By: /s/ Steffen Henrich
_
Name: Steffen Henrich
Title: Group Controller
By: /s/ David Kelly
_
Name: David Kelly
Title: Managing Director
UBS AG
By: /s/ Steffen Henrich
_
Name: Steffen Henrich
Title: Controller
By: /s/ David Kelly
_
Name: David Kelly
Title: Managing Director
Date: August 5, 2025