UBS Switzerland AG boosts earnings but equity dips after CHF 4.3 bn payout

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

Financial Analyst

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.

Risk Analyst

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.

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 

☒

 Form 40-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

 Standalone interim financial information

 for the six months ended

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

 1

UBS Switzerland AG standalone interim financial information

Income statement

Year-to-date

CHF m

30.6.25

30.6.24

 1

Interest and discount income

 4,203

 3,710

Interest and dividend income from financial investments

 360

 229

Interest expense

 (2,029)

 (1,945)

Gross interest income

 2,533

 1,995

Credit loss (expense) / release

 (109)

 (40)

Net interest income

 2,424

 1,954

Fee and commission income from securities and investment business

 2,511

 1,901

Credit-related fees and commissions

 158

 101

Other fee and commission income

 610

 436

Fee and commission expense

 (777)

 (238)

Net fee and commission income

 2,501

 2,200

Net trading income

 548

 564

Net income from disposal of financial investments

 26

 0

Dividend income from investments in subsidiaries and other participations

 372

 13

Sundry ordinary income

 271

 140

Sundry ordinary expenses

 (8)

 (37)

Other income from ordinary activities

 661

 116

Total operating income

 6,134

 4,834

Personnel expenses

 1,624

 1,067

General and administrative expenses

 2,713

 2,148

Subtotal operating expenses

 4,337

 3,216

Impairment of investments in subsidiaries and other participations

 6

 0

Depreciation and impairment of property, equipment and software

 178

 117

Amortization and impairment of goodwill and other intangible assets

 20

 0

Changes in provisions for litigation, regulatory and similar matters, and other provisions

 (2)

 (5)

Total operating expenses

 4,539

 3,327

Operating profit

 1,595

 1,507

Extraordinary income

 4

 0

Tax expense / (benefit)

 234

 260

Net profit / (loss) for the period

 1,365

 1,247

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

 2

Balance sheet 

CHF m

30.6.25

31.12.24

Assets

Cash and balances at central banks

 100,493

 103,477

Due from banks

 10,846

 9,217

Receivables from securities financing transactions 

 2,357

 11,229

Due from customers

 77,184

 77,552

Mortgage loans

 281,055

 282,382

Trading portfolio assets

 1,826

 2,011

Derivative financial instruments

 3,685

 4,275

Financial investments

 28,064

 22,478

Accrued income and prepaid expenses

 813

 732

Investments in subsidiaries and other participations

 747

 1,101

Property, equipment and software

 1,018

 1,078

Goodwill and other intangible assets

 180

 0

Other assets

 682

 694

Total assets

 508,949

 516,228

of which: subordinated assets

 106

 105

of which: subject to mandatory conversion and / or debt waiver 

 105

 105

Liabilities

Due to banks

 87,056

 84,123

of which: total loss-absorbing capacity eligible

 27,248

 27,374

Payables from securities financing transactions 

 7,080

 9,202

Due to customers

 351,951

 359,045

Trading portfolio liabilities

 290

 258

Derivative financial instruments

 2,666

 1,478

Bonds issued and loans from central mortgage institutions

 32,081

 31,574

Accrued expenses and deferred income

 1,540

 1,962

Other liabilities

 3,278

 2,541

Provisions

 347

 447

Total liabilities

 486,288

 490,631

Equity

Share capital

 10

 10

Statutory capital reserve

 21,286

 21,837

of which: capital contribution reserve

 20,575

 20,675

of which: other statutory capital reserve

 711

 1,161

Voluntary earnings reserve

 0

 1,378

Net profit / (loss) for the period

 1,365

 2,371

Total equity 

 22,661

 25,596

Total liabilities and equity

 508,949

 516,228

of which: subordinated liabilities

 27,276

 27,409

of which: subject to mandatory conversion and / or debt waiver 

 27,276

 27,409

UBS Switzerland AG standalone

 3

Balance sheet (continued)

CHF m

30.6.25

31.12.24

Off-balance sheet items

Contingent liabilities, gross

 13,144

 16,009

Sub-participations

 (1,103)

 (1,013)

Contingent liabilities, net

 12,041

 14,996

of which: guarantees to third parties related to subsidiaries

 24

 23

of which: credit guarantees and similar instruments

 5,481

 7,090

of which: performance guarantees and similar instruments

 4,592

 5,025

of which: documentary credits

 1,943

 2,858

Irrevocable commitments, gross

 27,537

 28,241

Sub-participations

 (68)

 (30)

Irrevocable commitments, net

 27,470

 28,211

of which: loan commitments

 25,921

 26,663

of which: payment commitment related to deposit insurance

 1,549

 1,549

Forward starting transactions

1

 171

 2,800

of which: reverse repurchase agreements

 171

 2,800

Liabilities for calls on shares and other equity instruments

 168

 168

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

 10

 21,837

 1,378

 2,371

 25,596

Dividends and other distributions

 (550)

1

 (1,378)

 (2,371)

 (4,300)

Net profit / (loss) for the period

 1,365

 1,365

Balance as of 30 June 2025

 10

 21,286

 0

 1,365

 22,661

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

 4

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

 5

Cautionary statement |

 This report and the information contained herein are provided solely for information purposes, and are not to be construed as solicitation

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 |

 Numbers presented throughout this report may not add up precisely to the totals provided in the tables and text. Percentages and percent changes

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 |

 Within tables, blank fields generally indicate non-applicability or that presentation of any content would not be meaningful, or that information is not

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 |

 In this report, any website addresses are provided solely for information and are not intended to be active links. UBS does not incorporate the contents

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

FAQ

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.