UBS pays USD 300 m to DOJ, releases reserve from CS acquisition

Rhea-AI Filing Summary

UBS Group AG / UBS AG – Form 6-K (4 Aug 2025) reports a finalized agreement with the US Department of Justice to settle Credit Suisse’s remaining Residential Mortgage-Backed Securities consumer-relief obligations. Credit Suisse Securities (USA) LLC will make a USD 300 m payment, fully extinguishing the 2017 settlement commitment.

UBS had already booked a contingent liability for this issue when it acquired Credit Suisse. Following the cash outflow, that reserve will be released, and UBS expects to record a credit in the “Non-core & Legacy” segment during 3Q 2025. The filing highlights management’s intent to resolve inherited legal matters swiftly and notes no change to current financial guidance.

The settlement removes a material litigation overhang, simplifies the group’s risk profile and frees management attention for integration and growth initiatives.

Positive

• Complete resolution of Credit Suisse’s 2017 DOJ consumer-relief obligations eliminates a significant legal overhang.
• Release of the contingent liability will generate a credit in 3Q 2025 earnings, modestly boosting reported profit.
• Action aligns with UBS’s strategy to rapidly clear inherited risks, improving investor confidence.

Negative

• Cash outflow of USD 300 m still required, impacting short-term liquidity.
• Filing does not quantify exact net earnings impact, leaving limited visibility on magnitude of credit.

Insights

Financial Analyst

TL;DR: Liability settled; reserve released → small net gain, positive clarity.

The USD 300 m payment is offset by an equal or larger release of the contingent liability booked at acquisition, producing a positive P&L impact in 3Q 25 and eliminating a legal overhang. While modest versus UBS’s USD 77 bn equity base, removal of RMBS exposure improves capital predictability, supports CET1 ratio and advances integration milestones. Impact: mildly accretive and directionally positive for sentiment.

Risk Analyst

TL;DR: Legacy legal tail risk reduced; residual litigation inventory shrinks.

Settlement converts an uncertain consumer-relief obligation into a fixed, funded cost and signals regulators’ acceptance of UBS’s remediation pace. Although the cash payout is non-trivial, existing provisions neutralize capital impact. Remaining Credit Suisse litigations (e.g., Archegos) still exist, but today’s action demonstrates execution capability and lowers aggregate risk.

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 4, 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 news release that immediately follows this page.

Media Relations

Tel. +41 44 234 8500

Investor Relations

Tel. +41 44 234 4100

UBS Group AG and UBS AG, News Release, 4 August, 2025 Page 1

4 August 2025

News Release

UBS resolves legacy Credit Suisse matter with US Department of Justice

Zurich/Basel, 4 August 2025 -- UBS is pleased to announce that it has reached an agreement with the

United States Department of Justice (DOJ) to resolve a legacy matter related to outstanding obligations

under a 2017 agreement Credit Suisse reached with the DOJ for its legacy Residential Mortgage-Backed

Securities (RMBS) business.

On 1 August 2025, Credit Suisse Securities (USA) 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 300m.

With this agreement, UBS has resolved another of Credit Suisse's legacy issues, in line with its intention

to resolve legacy matters at pace in a fair and balanced way and in the best interest of all its

stakeholders.

In the third quarter of 2025, UBS expects to recognize a credit in Non-core and Legacy from the release

of the contingent liability established with the acquisition of Credit Suisse as part of the purchase price

allocation process.

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Investor contact

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www.ubs.com/media

This media release contains statements that constitute “forward-looking statements”, including but not limited to

management’s outlook for UBS’s financial performance, statements relating to the anticipated effect of transactions and

strategic initiatives on UBS’s business and future development and goals or intentions to achieve climate, sustainability and other

social objectives. While these forward-looking statements represent UBS’s judgments, expectations and objectives concerning the

matters described, a number of risks, uncertainties and other important factors could cause actual developments and results to

differ materially from UBS’s expectations. UBS’s business and financial performance could be affected by other factors identified

in our past and future filings and reports, including those filed with the SEC. More detailed information about those factors is set

forth in documents furnished by UBS and filings made by UBS with the SEC, including the Risk Factors included in the Annual

Report of UBS Group AG report for 2024 filed on Form 20-F. UBS is not under any obligation to (and expressly disclaims any

obligation to) update or alter its forward-looking statements, whether as a result of new information, future events, or

otherwise.

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/ David Kelly______________

Name: David Kelly

Title: Managing Director

By: _/s/ Ella Copetti-Campi_________

Name: Ella Copetti-Campi

Title: Executive Director

UBS AG

By: _/s/ David Kelly______________

Name: David Kelly 

Title: Managing Director

By: _/s/ Ella Copetti-Campi________

Name: Ella Copetti-Campi

Title: Executive Director

Date: August 4, 2025

FAQ

What did UBS (UBS) announce in its 6-K filed on 4 August 2025?

UBS disclosed a USD 300 m settlement with the US DOJ that fully resolves Credit Suisse’s 2017 RMBS consumer-relief obligations.

Will the USD 300 m payment hurt UBS’s earnings?

No; UBS had already provisioned for this liability and expects to record a credit in 3Q 2025 from releasing that reserve.

How does the settlement affect UBS’s legacy risk profile?

It removes a major litigation item tied to Credit Suisse, reducing legal uncertainty and supporting capital predictability.

Is this the final Credit Suisse-related legal issue for UBS?

No; other inherited matters remain, but management states it will continue resolving them "at pace."

What segment will recognize the accounting credit?

The credit will be booked in the “Non-core & Legacy” segment during the third quarter of 2025.