UBS Group (NYSE: UBS) faces $42B extra CET1 need while launching $2B buyback
Filing Impact
Filing Sentiment
Form Type
6-K
Rhea-AI Filing Summary
UBS Group AG filed its 30 June 2025 Pillar 3 report, updating investors on capital, leverage, liquidity and evolving Basel III rules under new Swiss disclosure standards. Common equity tier 1 capital rose to USD 72.7bn with a CET1 ratio of 14.41%, while total risk‑weighted assets increased to USD 504.5bn. Tier 1 capital reached USD 91.7bn and the Basel III leverage ratio was 5.53%. Total loss‑absorbing capacity stood at USD 191.2bn, about 37.9% of RWA.
The Swiss Federal Council’s Financial Stability Proposals could, on a pro‑forma basis, require around USD 24bn of additional CET1 at UBS AG, mainly from fully deducting foreign subsidiaries, on top of around USD 18bn already expected after the Credit Suisse acquisition, for a total of about USD 42bn extra CET1 over time. UBS highlights transition timelines stretching toward 2028 and beyond.
Liquidity remained strong, with a quarterly average LCR of 182.3% and an NSFR of 122.4%. UBS also launched a new share repurchase program of up to USD 2bn from 1 July 2025, after buying USD 1bn of shares in the first half, while keeping a CET1 ratio target of around 14% and medium‑term goals for roughly 15% underlying return on CET1 and a cost/income ratio below 70% by the end of 2026.
Positive
- None.
Negative
- None.
Insights
UBS shows solid capital and liquidity, but faces sizable long‑dated CET1 demands from Swiss stability reforms.
UBS reports strong regulatory metrics under the new Swiss Basel III framework, with a CET1 ratio of 14.41%, TLAC of USD 191.2bn and a leverage ratio of 5.53%. Risk‑weighted assets rose to USD 504.5bn, mainly from credit and counterparty credit risk, but tier 1 capital growth kept headline ratios broadly stable.
The Financial Stability Proposals in Switzerland are the main structural development. Based on Q1 2025 data and a CET1 target range of 12.5–13% at UBS AG, the bank estimates around USD 24bn additional CET1 would ultimately be needed, largely from fully deducting foreign subsidiaries. This would come on top of roughly USD 18bn of extra CET1 tied to the Credit Suisse acquisition, for a total of about USD 42bn over time.
Implementation is spread over consultation rounds through 2027 and expected entry into force from 2028 with multi‑year phase‑ins, so the impact is long‑dated and still subject to legislative decisions. In the nearer term, UBS continues share buybacks—up to USD 2bn in the second half of 2025—while stating these remain conditional on keeping a CET1 ratio around 14% and meeting return and cost targets.
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 28, 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 30 June 2025 Pillar 3 Report of UBS Group and significant regulated subsidiaries and
sub-groups, which appears immediately following this page.
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 AG” and “UBS AG consolidated”
UBS AG and its consolidated subsidiaries
“Credit Suisse Group“ and “Credit Suisse”
Pre-acquisition Credit Suisse Group
“UBS Group AG” and “UBS Group AG standalone”
UBS Group AG on a standalone basis
“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 consolidated”
UBS Europe SE and its consolidated subsidiaries
“UBS Americas Holding LLC” and “UBS Americas Holding LLC consolidated”
UBS Americas Holding LLC and its consolidated subsidiaries
“Credit Suisse International standalone”
Credit Suisse International on a standalone basis
“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.
Table of contents
UBS Group
2
Section 1
Introduction and basis for preparation
6
Section 2
Key metrics
8
Section 3
Overview of risk-weighted assets
14
Section 4
Credit risk
25
Section 5
Counterparty credit risk
30
Section 6
Credit valuation adjustment
31
Section 7
Securitizations
35
Section 8
Market risk
36
Section 9
Going and gone concern requirements
and eligible capital
42
Section 10
Total loss-absorbing capacity
44
Section 11
Leverage ratio
46
Section 12
Liquidity and funding
50
Section 13
Requirements for global systemically
important banks and related indicators
Significant regulated subsidiaries and sub-groups
51
Section 1
Introduction
52
Section 2
UBS AG consolidated
56
Section 3
UBS AG standalone
60
Section 4
UBS Switzerland AG standalone
64
Section 5
UBS Europe SE consolidated
65
Section 6
UBS Americas Holding LLC consolidated
67
Section 7
Credit Suisse International standalone
Appendix
69
Abbreviations frequently used in our financial reports
71
Cautionary statement
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Publisher: UBS Group AG, Zurich, Switzerland | ubs.com
Language: English
© UBS 2025. The key symbol and UBS are among the registered and
unregistered trademarks of UBS. All rights reserved.
30 June 2025 Pillar 3 Report |
UBS Group | Introduction and basis for preparation 2
UBS Group
Introduction and basis for preparation
Scope of Basel III Pillar 3 disclosures
The Basel Committee on Banking Supervision (the BCBS) final Basel III capital adequacy framework consists of three
complementary pillars. Pillar 1 provides a framework for measuring minimum capital requirements for the credit, market
and operational risks faced by banks. Pillar 2 addresses the principles of the supervisory review process, emphasizing the
need for a qualitative approach to supervising banks. Pillar 3 requires banks to publish a range of disclosures, mainly
covering risk, capital, leverage, liquidity and remuneration.
This report provides Pillar 3 disclosures for the UBS Group and prudential key figures and regulatory information for
UBS AG consolidated and standalone, UBS Switzerland AG standalone, UBS Europe SE consolidated, and UBS Americas
Holding LLC consolidated, as well as Credit Suisse International standalone in the respective sections under “Significant
regulated subsidiaries and sub-groups”.
This Pillar 3 report has been prepared in accordance with the Swiss Financial Market Supervisory Authority (FINMA)
Ordinance on the Disclosure Obligations of Banks and Securities Firms (the DisO-FINMA), the corresponding explanatory
notes, and the underlying BCBS Basel framework disclosure requirements. The revised Capital Adequacy Ordinance (the
CAO) that incorporates the final Basel III standards into Swiss law, and the five new FINMA ordinances (including the
DisO-FINMA) that contain the implementing provisions for the revised CAO, entered into force on 1 January 2025. The
DisO-FINMA replaces FINMA Circular 2016/1 “Disclosure – banks” and incorporates in particular new and revised
disclosure tables on risks and capital requirements.
As UBS is a systemically relevant bank (an SRB) under Swiss banking law, UBS Group AG and UBS AG are required to
comply with regulations based on the final Basel III framework as applicable to Swiss SRBs on a consolidated basis.
Local regulators may also require the publication of Pillar 3 information at a subsidiary or sub-group level. Where
applicable, these local disclosures are provided under “Holding company and significant regulated subsidiaries and sub-
groups” at
ubs.com/investors
.
Changes to Pillar 3 disclosure requirements
The DisO-FINMA includes new and revised semi-annual tables as a result of the implementation of the final Basel III
standards in Switzerland. Certain semi-annual tables required under FINMA Circular 2016/1 “Disclosure – banks” have
been discontinued, as they are no longer required under the DisO-FINMA.
›
Refer to “Changes to Pillar 3 disclosure requirements” in the “Introduction and basis for preparation” section of the 31 March
2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about new and revised
quarterly tables as a result of the implementation of the final Basel III standards in Switzerland
New semi-annual tables
The following new tables have been introduced on a semi-annual basis.
–
CMS2: Comparison of modelled and standardized RWA for credit risk at asset class level
–
CVA2: The full basic approach for CVA (BA-CVA)
–
CVA3: The standardized approach for CVA (SA-CVA)
–
ENC: Asset encumbrance
The new “CVA1: The reduced basic approach for CVA (BA-CVA)” semi-annual table is not applicable to UBS, as UBS
applies the full basic credit valuation adjustment (CVA) approach. Furthermore, UBS does not apply the simplified
standardized approach for market risk, therefore the new “MR3: Market risk under the simplified standardized approach”
semi-annual table is not applicable to UBS.
30 June 2025 Pillar 3 Report |
UBS Group | Introduction and basis for preparation 3
Revised semi-annual tables
The DisO-FINMA includes an amended definition of asset classes, affecting the following semi-annual tables. For these
revised tables UBS does not disclose comparative information.
–
CR4: Standardized approach – credit risk exposure and credit risk mitigation (CRM) effects
–
CR5: Standardized approach – exposures by asset classes and risk weights
–
CR5: Exposure amounts and CCFs applied to off-balance sheet exposures, categorised based on risk bucket of
converted exposures
–
CR6: IRB – Credit risk exposures by portfolio and PD range. This table has also been amended to include the newly
introduced exposures segments which are subject to the foundation internal ratings-based (F-IRB) approach.
–
CCR4: IRB – CCR exposures by portfolio and PD scale. This table has also been amended to include the newly
introduced exposures segments which are subject to the F-IRB approach.
›
Refer to “Amended FINMA-defined asset classes” in this section for more information about the amended definition of asset
classes as a result of the implementation of the final Basel III standards in Switzerland
In addition, the DisO-FINMA includes the following revised semi-annual table.
–
MR1: Market risk under standardized approach
Amended FINMA-defined asset classes
The DisO-FINMA includes an amended definition of asset classes.
Asset classes under the standardized approach
–
Central governments, central banks and supranational organizations
–
Public sector entities
–
Multilateral development banks
–
Banks
–
Covered bonds
–
Corporates
–
Subordinated debt, equity exposures and other capital instruments
–
Retail
–
Exposures secured by real estate
–
Defaulted exposures
–
Other assets
Asset classes under the advanced internal ratings-based approach
–
Central governments and central banks and other supranational organizations
–
Corporates: specialized lending
–
Corporates: other lending
–
Retail: exposures secured by real estate
–
Retail: qualifying revolving retail exposures (QRRE)
–
Retail: other retail
Asset classes under the foundation internal ratings-based approach
–
Banks
–
Public sector entities (PSEs), multilateral development banks
–
Large corporates
Discontinued semi-annual tables
The following semi-annual tables have been discontinued, as they are no longer required under the DisO-FINMA.
–
CR10: IRB (equities under the simple risk-weight method). The simple risk-weight approach is no longer applicable to
UBS. UBS applies the standardized approach for equity exposures.
–
CCR2: Credit valuation adjustment (CVA) capital charge. This disclosure was replaced by the aforementioned CVA
disclosures.
–
MR3: IMA values for trading portfolios. With the implementation of the Fundamental Review of the Trading Book (the
FRTB) framework, this disclosure has been discontinued.
–
MR4: Comparison of VaR estimates with gains / losses. With the implementation of the FRTB framework, this disclosure
has been discontinued.
Significant regulatory developments, disclosure requirements and other changes
Developments in Switzerland aimed at strengthening financial stability
In June 2025, the Swiss Federal Council published regulatory proposals that aim to further strengthen banking stability
in Switzerland (the Financial Stability Proposals). 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 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, permit the mandatory suspension of interest payments for additional
tier 1 capital instruments in the event of a cumulative loss over four quarters, and introduce measures that aim to enable
30 June 2025 Pillar 3 Report |
UBS Group | Introduction and basis for preparation 4
FINMA and other authorities to better assess the situation of banks in a liquidity crisis.
The Swiss Federal Council plans to start a public consultation in the fall of 2025 on the legislative amendments to capital
requirements related to foreign subsidiaries and has indicated it expects to submit its proposal to the Swiss Parliament in
the first half of 2026. Entry into force of these amendments is expected in 2028, at the earliest, and is expected to be
phased in over a period of at least six to eight years. For the remaining legislative amendments, a consultation draft is
expected in the first half of 2026, with the Swiss Federal Council’s submission to the Parliament in the first half of 2027.
The entry into force of these amendments is expected in 2028 or 2029.
The measures at the ordinance level, including the capital treatment of capitalized software and DTAs on temporary
differences, are in public consultation until September 2025, with the ordinances expected to enter into force in January
2027, at the earliest. In addition, a consultation on amendments to the Liquidity Ordinance is expected to begin in the
first half of 2026. The amendments to be proposed are expected to set minimum requirements for maintaining borrowing
capacity for emergency liquidity assistance.
Based on financial information published for the first quarter of 2025 and given UBS AG’s target CET1 capital ratio of
between 12.5% and 13%, UBS AG would be required to hold additional estimated CET1 capital of around USD 24bn
on a pro-forma basis if the recommendations were to be implemented as proposed. This includes around USD 23bn
related to the full deduction of UBS AG’s investments in foreign subsidiaries. These pro-forma figures reflect previously
announced expected capital repatriations of around USD 5bn.
The incremental CET1 capital of around USD 24bn required at UBS AG would result in a CET1 capital ratio at the
UBS Group AG (consolidated) level of around 19%. At Group level, the proposed measures related to DTAs on temporary
differences, capitalized software and PVAs would eliminate capital recognition for these items in a manner misaligned
with international standards. This would reduce the CET1 capital ratio for the Group to around 17%, underrepresenting
UBS’s capital strength.
The additional capital of USD 24bn would be in addition to the previously communicated incremental capital of around
USD 18bn that UBS will have to hold as a result of the acquisition of the Credit Suisse Group in order to meet existing
regulations. This includes around USD 9bn to remove the regulatory concessions granted to Credit Suisse and around
USD 9bn to meet the current progressive requirements due to the increased leverage ratio denominator (LRD) and higher
market share of the combined business. The progressive requirements for LRD and market share are subject to
confirmation.
On this basis, UBS would be required to hold around USD 42bn in additional CET1 capital in total.
Recent developments related to the implementation of the final Basel III standards
In June 2025, the European Commission proposed to delay the implementation of the FRTB by another year, to 1 January
2027. We expect that the overall impact on UBS will be limited.
In July 2025, the UK Prudential Regulatory Authority published for consultation proposals to delay the implementation
of the FRTB internal models approach from 1 January 2027 to 1 January 2028. The FRTB regulation for standardized and
advanced standardized approaches will continue to apply from 1 January 2027. With UBS’s entities not being subject to
the corresponding UK regulation, we expect that the overall impact on UBS will be limited.
In Switzerland, the FRTB became effective on 1 January 2025, together with all other requirements of the final Basel III
regulation.
Other developments
Simplification of Pillar 3 disclosures
Starting with the 30 June 2025 Pillar 3 Report, we have replaced the “SEC2: Securitization exposures in the trading
book” semi-annual table with a qualitative statement, based on immateriality, as allowed by the DisO-FINMA general
principles of disclosure.
›
Refer to “Securitization exposures in the banking and trading books” in the “Securitizations” section of this report for more
information
30 June 2025 Pillar 3 Report |
UBS Group | Introduction and basis for preparation 5
Capital returns and targets
On 1 July 2025, we launched a new program to repurchase up to USD 2bn of shares. As previously announced, we plan
to complete the repurchase of up to USD 2bn of shares in the second half of 2025. We will communicate our 2026
capital returns ambitions with our fourth-quarter and full-year financial results for 2025. Our share repurchases will be
subject to maintaining our CET1 capital ratio target of around 14% and achieving our financial targets. The program we
launched in April 2024 was closed in May 2025 after completing the USD 2bn of share repurchases as planned. In the
first half of 2025, we repurchased a total of USD 1bn of shares.
›
Refer to the “Share information and earnings per share” section of the UBS Group second quarter 2025 report, available under
“Quarterly reporting” at
ubs.com/investors
, for more information
We maintain our target of achieving an underlying return on CET1 capital of around 15% and an underlying cost / income
ratio of less than 70% by the end of 2026 (both on an exit rate basis). We will provide an update on our longer-term
returns targets when there is more clarity on the timing of potential changes and when the likely final outcome of the
Financial Stability Proposals becomes more visible.
Frequency and comparability of Pillar 3 disclosures
The DisO-FINMA specifies the reporting frequency for each disclosure. In line with these FINMA-specified disclosure
requirements, including with regard to comparative periods, we provide quantitative comparative information as of
31 March 2025 for disclosures required on a quarterly basis and as of 31 December 2024, prepared in accordance with
FINMA Circular 2016/1 “Disclosure – banks”, for disclosures required on a semi-annual basis. Where specifically required
by FINMA and / or the BCBS, we disclose comparative information for additional reporting dates.
Where required, movement commentary is aligned with the corresponding disclosure frequency required by FINMA and
always refers to the latest comparative period. Throughout this report, signposts are displayed at the beginning of a
section, table or chart –
Semi-annual |
Quarterly |
triangle symbol –
›
Refer to the 31 March 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about
previously published quarterly movement commentary
›
Refer to the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
about previously published semi-annual movement commentary
30 June 2025 Pillar 3 Report |
UBS Group | Key metrics 6
Key metrics
Key metrics for the second quarter of 2025
Quarterly |
The KM1 and KM2 tables below are based on the Swiss Financial Market Supervisory Authority (FINMA) Ordinance
on the Disclosure Obligations of Banks and Securities Firms (DisO-FINMA) rules. The KM2 table includes a reference to
the total loss-absorbing capacity (TLAC) term sheet, published by the Financial Stability Board (the FSB). The FSB provides
this term sheet at fsb.org/2015/11/total-loss-absorbing-capacity -tlac-principles-and-term-sheet.
Our capital ratio was stable, reflecting an increase in our tier 1 capital, offset by an increase in risk-weighted assets (RWA).
Our leverage ratio decreased, reflecting an increase in the leverage ratio denominator (the LRD), partly offset by the
increase in our tier 1 capital.
Our common equity tier 1 (CET1) capital increased by USD 3.6bn to USD 72.7bn, mainly driven by operating profit before
tax of USD 2.2bn, foreign currency translation gains of USD 2.3bn and an increase in eligible deferred tax assets on
temporary differences of USD 0.4bn, partly offset by dividend accruals of USD 0.8bn and current tax expenses of
USD 0.4bn. Share repurchases of USD 0.5bn made under our 2024 share repurchase program in the second quarter of
2025 did not affect our CET1 capital position, as there was an equal reduction in the capital reserve for expected future
share repurchases. The 2024 share repurchase program was completed on 23 May 2025.
Our tier 1 capital increased by USD 3.9bn to USD 91.7bn, reflecting the aforementioned increase in CET1 capital and an
increase in additional tier 1 (AT1) capital of USD 0.3bn, reflecting positive impacts from interest rate risk hedge, foreign
currency translation and other effects.
The TLAC available as of 30 June 2025 included CET1 capital, AT1 capital and non-regulatory capital elements of TLAC.
Our available TLAC increased by USD 4.0bn to USD 191.2bn, driven by the aforementioned increase in tier 1 capital and
an increase in non-regulatory capital elements of TLAC of USD 0.1bn. The increase in non-regulatory capital elements of
TLAC was mainly due to new issuances of TLAC-eligible senior unsecured debt instruments totaling USD 3.5bn equivalent
and positive impacts from interest rate risk hedge, foreign currency translation and other effects. These effects were
largely offset by USD 3.9bn TLAC-eligible senior unsecured debt instruments ceasing to be eligible as non-regulatory
capital elements of TLAC, as they entered the final year before maturity and the call of USD 3.3bn equivalent of TLAC-
eligible senior unsecured debt instruments.
During the second quarter of 2025, RWA increased by USD 21.2bn to USD 504.5bn, mainly driven by increases of
USD 18.6bn from credit risk RWA and USD 1.8bn from counterparty credit risk RWA. The remaining variance was spread
across other risk types.
The LRD increased by USD 96.5bn to USD 1,658.1bn, mainly due to currency effects of USD 88.1bn and asset size and
other movements of USD 8.4bn.
The quarterly average liquidity coverage ratio (the LCR) of the UBS Group increased 1.3 percentage points to 182.3%,
remaining above the prudential requirement communicated by FINMA. The movement in the quarterly average LCR was
primarily driven by an increase in high-quality liquid assets of USD 40.0bn to USD 358.8bn, mainly reflecting higher cash
available due to a decrease in funding for trading assets and higher customer deposits, partly offset by lower cash
available due to higher lending assets. The average net cash outflows increased by USD 20.7bn to USD 196.8bn,
reflecting higher outflows from deposits, lower net inflows from securities financing transactions and higher net outflows
from derivatives.
As of 30 June 2025, the net stable funding ratio of the UBS Group decreased 1.8 percentage points to 122.4%,
remaining above the prudential requirement communicated by FINMA. Available stable funding increased by USD 43.0bn
to USD 904.7bn, mainly driven by increases in both customer deposits and debt issued measured at amortized cost,
largely driven by currency effects, as well as higher regulatory capital. Required stable funding increased by USD 45.1bn
to USD 738.9bn, primarily reflecting an increase in lending assets, which was also largely due to currency effects.
30 June 2025 Pillar 3 Report |
UBS Group | Key metrics 7
KM1: Key metrics
USD m, except where indicated
30.6.25
31.3.25
31.12.24
30.9.24
30.6.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
72,709
69,152
71,367
74,213
76,104
2
Tier 1
91,721
87,837
87,739
91,024
91,804
3
Total capital
91,721
87,837
87,739
91,025
91,804
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
504,500
483,276
498,538
519,363
511,376
4a
Total risk-weighted assets (pre-floor)
504,500
483,276
4b
Minimum capital requirement
1
40,360
38,662
39,883
41,549
40,910
Risk-based capital ratios as a percentage of RWA
5
Common equity tier 1 ratio (%)
14.41
14.31
14.32
14.29
14.88
5b
Common equity tier 1 ratio (%) (pre-floor)
14.41
14.31
6
Tier 1 ratio (%)
18.18
18.18
17.60
17.53
17.95
6b
Tier 1 ratio (%) (pre-floor)
18.18
18.18
7
Total capital ratio (%)
18.18
18.18
17.60
17.53
17.95
7b
Total capital ratio (%) (pre-floor)
18.18
18.18
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
2.50
2.50
2.50
2.50
2.50
9
Countercyclical buffer requirement (%)
0.13
0.13
0.16
0.17
0.16
9a
Additional countercyclical buffer for Swiss mortgage loans (%)
0.33
0.31
0.37
0.38
0.33
10
Bank G-SIB and / or D-SIB additional requirements (%)
1.50
1.50
1.00
1.00
1.00
11
Total of bank CET1 specific buffer requirements (%)
2
4.13
4.13
3.66
3.67
3.66
12
CET1 available after meeting the bank’s minimum capital requirements (%)
3
9.91
9.81
9.60
9.53
9.95
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
1,658,089
1,561,583
1,519,477
1,608,341
1,564,201
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
4
5.53
5.62
5.77
5.66
5.87
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
5.53
5.62
14c
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
4
5.54
5.60
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
5.54
5.60
14e
Minimum capital requirements
5
49,743
46,848
Liquidity coverage ratio (LCR)
6
15
Total high-quality liquid assets (HQLA)
358,759
318,735
331,481
360,628
378,235
16
Total net cash outflow
196,846
176,190
176,008
181,051
178,452
16a
of which: cash outflows
385,105
362,013
347,761
342,952
342,383
16b
of which: cash inflows
188,259
185,823
171,753
161,901
163,931
17
LCR (%)
182.31
180.96
188.37
199.25
211.99
Net stable funding ratio (NSFR)
18
Total available stable funding
904,703
861,717
856,804
904,295
882,282
19
Total required stable funding
738,891
693,777
682,508
712,773
689,025
20
NSFR (%)
122.44
124.21
125.54
126.87
128.05
1 Calculated as 8% of total RWA, based on total capital minimum requirements, excluding CET1 buffer requirements. 2 Excludes non-BCBS capital buffer requirements for risk-weighted positions that are directly
or indirectly backed by residential properties in Switzerland. 3 Represents the CET1 ratio that is available to meet buffer requirements. Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and,
where applicable, minus the BCBS tier 2 capital requirement met with CET1 capital. 4 There is currently no temporary exemption of central bank reserves for UBS. 5 The higher of capital requirements based on
8% RWA or 3% LRD. 6 Calculated after the application of haircuts and inflow and outflow rates, as well as, where applicable, caps on Level 2 assets and cash inflows. Calculated based on an average of 61 data
points in the second quarter of 2025 and 62 data points in the first quarter of 2025. For the prior-quarter data points, refer to the respective Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors,
for more information.
KM2: Key metrics – TLAC requirements (at resolution group level)
1
USD m, except where indicated
30.6.25
31.3.25
31.12.24
30.9.24
30.6.24
1
Total loss-absorbing capacity (TLAC) available
2
Total RWA at the level of the resolution group
3
TLAC as a percentage of RWA (%)
4
Leverage ratio exposure measure at the level of the resolution group
5
TLAC as a percentage of leverage ratio exposure measure (%)
6a
Does the subordination exemption in the antepenultimate paragraph of
Section 11 of the FSB TLAC Term Sheet apply?
No
6b
Does the subordination exemption in the penultimate paragraph of
Section 11 of the FSB TLAC Term Sheet apply?
No
6c
If the capped subordination exemption applies, the amount of funding
issued that ranks pari passu with excluded liabilities and that is
recognized as external TLAC, divided by funding issued that ranks pari
passu with excluded liabilities and that would be recognized as external
TLAC if no cap was applied (%)
N/A – Refer to our response to 6b.
1 Resolution group level is defined as the UBS Group AG consolidated level.
30 June 2025 Pillar 3 Report |
UBS Group | Overview of risk-weighted assets 8
Overview of risk-weighted assets
Overview of RWA and capital requirements
Quarterly |
The OV1 table below provides an overview of our risk-weighted assets (RWA) and the related minimum capital
requirements by risk type. The table presented is based on the respective Swiss Financial Market Supervisory Authority
(FINMA) template and empty rows indicate current non-applicability to UBS.
During the second quarter of 2025, RWA increased by USD 21.2bn to USD 504.5bn, mainly driven by increases of
USD 18.6bn from credit risk RWA and USD 1.8bn from counterparty credit risk (CCR) RWA. The remaining variance was
spread across other risk types.
Credit risk RWA increased by USD 18.6bn, mainly driven by increases of USD 15.7bn related to currency effects and
USD 2.9bn related to asset size and other movements. The movement in RWA attributable to model updates and
methodology changes was broadly neutral. Asset size and other movements increased by USD 2.9bn, mainly driven by
increases in loans to corporate clients and mortgage loans in Personal & Corporate Banking, higher RWA from loans and
loan commitments in Global Wealth Management, and higher RWA on high-quality liquid assets, partly offset by lower
RWA in Non-core and Legacy, as a result of our actions to actively unwind exposures, in addition to the natural roll-off,
and decreases in loans and loan commitments in the Investment Bank.
CCR RWA increased by USD 1.8bn, mainly driven by increases of USD 1.3bn related to currency effects and USD 0.4bn
related to model and methodology changes. Asset size and other movements broadly remained unchanged. Model
updates and methodology changes resulted in an increase of USD 0.4bn, primarily related to the decommissioning of the
Credit Suisse probability of default (PD) model for banks.
RWA from amounts below thresholds for deduction increased by USD 1.4bn, primarily due to currency effects and an
increase in deferred tax assets arising from temporary differences.
›
Refer to the “Introduction and basis for preparation” section of this report for more information about the regulatory standards
applied
›
Refer to the “Capital management” section of the UBS Group second quarter 2025 report, available under
Quarterly reporting”
at
ubs.com/investors
, for more information about capital management and RWA, including details regarding movements in RWA
during the second quarter of 2025
30 June 2025 Pillar 3 Report |
UBS Group | Overview of risk-weighted assets 9
OV1: Overview of RWA
Section or table
reference
Minimum
capital
requirements
1
USD m, except where indicated
30.6.25
31.3.25
31.12.24
30.6.25
1
Credit risk (excluding counterparty credit risk)
CMS1, CMS2, 4
2
of which: standardized approach (SA)
2a
of which: non-counterparty-related risk
2
3
of which: foundation internal ratings-based (F-IRB) approach
3
CR6
4
of which: supervisory slotting approach
CR10
5
of which: advanced internal ratings-based (A-IRB) approach
CR6
5a
of which: adjustments related to the Swiss sectoral real estate floor for exposures secured by real
estate in Switzerland
3, 4
6
Counterparty credit risk
5
CMS1, CCR1,
CCR4, CCR8, 5
7
of which: SA for counterparty credit risk (SA-CCR)
8
of which: internal model method (IMM)
CCR7
8a
of which: value-at-risk (VaR)
CCR7
9
of which: other CCR
10
Credit valuation adjustment (CVA)
CMS1, 6
10a
of which: full basic approach (BA-CVA)
3
CVA2
10b
of which: standardized approach (SA-CVA)
3
CVA3
11
Equity positions under the simple risk weight approach during the 5-year transitional period
6
12
Equity investments in funds – look-through approach
13
Equity investments in funds – mandate-based approach
14
Equity investments in funds – fallback approach
15
Settlement risk
16
Securitization exposures in banking book
CMS1, 7
17
of which: securitization internal ratings-based approach (SEC-IRBA)
18
of which: securitization external ratings-based approach (SEC-ERBA), including internal assessment
approach (IAA)
19
of which: securitization standardized approach (SEC-SA)
20
Market risk
CMS1, 8
21
of which: standardized approach (SA)
22
of which: internal models approach (IMA)
23
Capital charge for switch between trading book and banking book
24
Operational risk
CMS1
25
Amounts below thresholds for deduction (250% risk weight)
7
25a
26
Output floor applied (%)
3,8
27
Floor adjustment (before application of transitional cap)
3,9
28
Floor adjustment (after application of transitional cap)
10
29
Total
1 Calculated based on 8% of RWA. 2 Non-counterparty-related risk includes property, equipment, software and other items. 3 Disclosure is based on the final Basel III standards implemented with effect as of
1 January 2025. 4 The Swiss sectoral real estate floor is not applicable at the level of UBS Group AG consolidated. 5 Excludes settlement risk, which is separately reported in line 15 “Settlement risk”. Includes
RWA with central counterparties. The split between the sub-components of counterparty credit risk refers to the calculation of the exposure measure. 6 The simple risk-weight approach is no longer applicable at
UBS, and equity positions in the banking book are included in row 2. The 5-year transitional period is effective as of 1 January 2025 but is not applicable to UBS. 7 Includes items subject to threshold deduction
treatment that do not exceed their respective threshold and are risk weighted at 250%. Items subject to threshold deduction treatment include significant investments in common shares of non-consolidated financial
institutions (banking, insurance and financial entities) and deferred tax assets arising from temporary differences. 8 The overall output floor of 72.5% is subject to a phase-in until 1 January 2028. As of 1 January
2025, the applicable overall output floor at the level of UBS Group AG consolidated is 60%. In 2026 and 2027, the output floor will increase by 5% per year, to 65% and 70%, respectively. 9 FINMA has not opted
to implement a transitional cap that would limit the increase in RWA to 25% of a bank’s RWA before the application of the output floor. 10 Of our Basel finalized RWA under the standardized approach, 60% are
below our actual Basel III finalized RWA. Therefore, the overall output floor is not binding, and our RWA before and after the effects of the overall output floor are equal.
Comparison of modeled and standardized RWA at risk level
Quarterly |
full standardized approach. The table also provides the full standardized approach for RWA that are the base of the
phased-in overall output floor. The purpose of the overall output floor is to ensure that banks’ capital requirements based
on modeled approaches where permitted do not fall below a certain percentage of capital requirements based on the
full standardized approach, thereby reducing excessive variability of RWA and enhancing the comparability of risk-based
capital ratios across banks. The impact of the output floor, if applicable, will be disclosed in the “OV1: Overview of RWA”
table in rows 27 and 28. The applicable threshold pursuant to the reporting date is disclosed in row 26 of the OV1 table,
and in column e in the CMS1 table below. The output floor, which is set at 60% during 2025, will incrementally increase
to a level of 72.5% by 2028. As of 30 June 2025, the floor is not binding at the level of UBS Group, i.e. the total of our
actual RWA shown in column c in the CMS1 table below is greater than 60% of the RWA calculated under the full
standardized approach shown in column e, and therefore no adjustment is required. UBS is undertaking mitigating actions
with respect to RWA under the standardized approach to minimize a future floor adjustment required as the level of the
output floor increases.
›
Refer to “Overview of RWA and capital requirements” in this section for information about the OV1 table
The table below provides a summary of the key conceptual differences between the internal model approach and the
standardized approach.
30 June 2025 Pillar 3 Report |
UBS Group | Overview of risk-weighted assets 10
Key differences between the internal model approach and the standardized approach
Internal model approach
Standardized approach
Key impact
Risk weighting
Reliance on internal ratings where each
counterparty / transaction receives a rating.
Reliance on external credit assessment institutions
where allowed in the regulatory framework.
Modelled approach produces RWA that is more risk
sensitive.
Granular risk-sensitive risk weights differentiation
via individual PD and loss given default (LGD) for
mortgages.
Less granular risk weights based on loan-to-value
(LTV) bands for mortgages.
The Group’s residential mortgage portfolio is
focused on the Swiss market, and the Group has
robust review processes in place concerning
borrowers’ ability to repay. This results in the
Group’s residential mortgage portfolio having a low
average LTV and results in an average risk weight
of around 20% under the advanced IRB (A-IRB)
approach.
Modeled LGD captures transaction quality
features incl. collateralization. Under the
foundation internal ratings-based (F-IRB)
approach, the LGD values are calculated based
on the rules set by regulatory authorities. This is
applicable for banks and large corporates.
No differentiation for transaction features (except
where claim is subordinated).
Impact relevant across all asset classes.
Credit risk mitigation
Credit risk mitigation recognized via risk-sensitive
LGD or exposure at default (EAD).
Limited recognition of credit risk mitigation.
Standardized approach RWA is higher than
modeled RWA for most transaction types.
Wider variety of eligible collateral.
Restricted list of eligible collateral.
Limited recognition of collateral results in higher
RWA for Lombard lending and securities financing
transactions (SFTs).
Repo value-at-risk (VaR) allows use of VaR
models to estimate exposure and collateral for
SFTs. Approach permits full diversification and
netting across all collateral types.
Conservative and crude regulatory haircuts with
limited risk sensitivity.
The effects of guarantees and credit derivatives
are considered through either adjusting PD
and / or LGD estimates. UBS applies the F-IRB
approach for guarantee recognition.
In case of eligible guarantees and credit derivatives,
substitution is applied and the risk weight
applicable to the protection provider can be
assigned to the protected portion of the underlying
exposure.
CCF
A credit conversion factor (CCF) is applied to
model expected future drawdowns over the
12-month period, irrespective of the actual
maturity of a particular transaction. The CCF
includes downturn adjustments and is the result
of analysis of internal data and expert opinion.
Credit exposure equivalents are determined by
applying CCF to off-balance sheet items. The CCFs
vary based on product type, maturity and the
underlying contractual agreements.
Modeled CCFs can be more tailored and
differentiated.
EAD for derivatives
Internal model method (IMM) facilitates the use
of a Monte Carlo simulation to estimate
exposure.
SA-CCR is calculated as the replacement costs plus
regulatory add-ons that take into account potential
future market moves at predetermined fixed rates.
For large, diversified derivatives portfolios,
standardized EAD is higher than modeled EAD.
Application of multiplier on IMM exposure
estimate.
Differentiates add-ons by five exposure types and
three maturity buckets only.
Variability in holding period applied to
collateralized transactions, reflecting liquidity
risks.
Limited netting can be recognized.
EAD for SFTs
The repo VaR approach is a model based on a
Monte Carlo simulation and historical calibration
to estimate exposure, computed as quantile
exposure.
The comprehensive approach considers the adjusted
exposure after applicable supervisory haircuts on
both the exposure and the collateral received to
take account of possible future fluctuations in the
value of either the exposure or the collateral.
For large, diversified SFT portfolios, standardized
EAD is higher than modeled EAD.
Maturity in risk weight
Regulatory RWA function considers maturity: the
longer the maturity, the higher the risk weight.
No differentiation for maturity of transactions,
except for interbank exposures.
Model approach produces lower RWA for high-
quality, short-term transactions.
Credit valuation
adjustment
Not applicable under the final Basel III standards.
UBS calculates the credit valuation adjustment
(CVA) risk capital requirement using both the
standardized approach (SA-CVA) and the basic
approach (BA-CVA) in line with the final Basel III
standards. The SA-CVA uses sensitivities to market
risk factors (e.g. interest rates and credit spreads)
and uses those sensitivities with regulatory-
prescribed risk weights and correlations to arrive at
a capital charge. The BA-CVA approach is simpler
and less risk sensitive.
Where the BA-CVA and the SA-CVA is applied
under the output floor calculation, the application
of internal ratings is not permitted.
Securitization exposures
in the banking book
The regulatory capital requirements are
calculated using a hierarchy of approaches. First,
the securitization internal ratings-based approach
(SEC-IRBA) is applied, if possible. If this approach
cannot be applied, one of the standardized
approaches is applied.
If the SEC-IRBA cannot be applied, the regulatory
capital requirements are calculated using the
following hierarchy of approaches: the securitization
external ratings-based approach or the
securitization standardized approach (SEC-SA).
Otherwise, a 1,250% risk weight is applied as a
fallback.
30 June 2025 Pillar 3 Report |
UBS Group | Overview of risk-weighted assets 11
Key differences between the internal model approach and the standardized approach (continued)
Internal model approach
Standardized approach
Key impact
Market risk
UBS does not apply the internal model approach
for market risk.
UBS currently applies the standardized approach of
the Fundamental Review of the Trading Book (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 delta, vega and curvature risk of the
underlying trading positions, the DRC uses the
jump-to-default risk in positions subject to equity
and credit risk, and positions that may not be
adequately capitalized by the SBM and the DRC
additionally attract an RRAO charge.
Where the standardized approach is applied under
the output floor calculation, the application of
internal ratings is not permitted.
The new FRTB framework replaced the VaR- and
stressed VaR-based Basel 2.5 market risk
framework.
Operational risk
Not applicable under the final Basel III standards.
The standardized approach is based on the business
indicator component, derived from financial
statement metrics, as well as the internal loss
multiplier, derived from average historical
operational losses. The new framework replaced the
advanced measurement approach.
As of 30 June 2025, the output floor is set at USD 450.4bn, representing 60% of RWA calculated using the full
standardized approach effective for the full year 2025. This floor remains USD 54.1bn below the actual RWA of
USD 504.5bn. The difference of USD 246.2bn between the RWA calculated using the full standardized approach of
USD 750.7bn and actual RWA of USD 504.5bn is primarily driven by USD 125.3bn from credit risk RWA, USD 107.1bn
from CCR RWA, USD 6.8bn from securitization RWA and USD 6.4bn from CVA RWA.
During the second quarter of 2025, the difference between RWA calculated using the full standardized approach and
actual RWA decreased by USD 3.5bn, from USD 249.7bn to USD 246.2bn. This decrease was primarily driven by RWA
mitigation actions undertaken during the quarter and a decrease in asset size, which contributed to a decrease in RWA
calculated using the full standardized approach. These decreases were partly offset by currency effects. UBS is undertaking
measures to minimize the impact as the output floor gradually increases to 72.5% of standardized RWAs by 2028.
Credit risk RWA under the full standardized approach are higher than actual RWA. Under the standardized approach,
fixed risk weights are applied to residential mortgage exposures, depending on the LTV. The internal model-based
approach considers borrowers’ ability to service debt more accurately, including mortgage affordability and calibration
based on historic data. The Group’s residential mortgage portfolio is focused on the Swiss market, and the Group has
robust review processes in place concerning borrowers’ ability to repay. This results in the Group’s residential mortgage
portfolio having a low average LTV and results in an average risk weight of around 20% under the A-IRB approach
compared with an average 35% risk weight under the standardized approach. For Lombard lending the average risk
weight using internal models is around 10%. The risk weight under the standardized approach is around 100% for these
exposures, primarily due to the differences in the treatment of collateral. Furthermore, corporate exposures have higher
risk weights under the standardized approach , with an average of 82%, compared with an average of 51% under the
internal model approach.
CCR RWA under the full standardized approach are higher than actual RWA, primarily reflecting higher risk weights under
the standardized approach compared with the IRB risk weights mainly in the corporate asset class, especially on managed
funds. In addition to risk weights, exposures calculated under the standardized approach are higher, because the
standardized approach does not fully recognize the benefits of netting, portfolio diversification and collateral.
CVA RWA calculated using the full standardized approach are higher than actual RWA, as the application of internal
ratings is not permitted under the standardized approach for output floor calculations.
Securitization RWA calculated using the full standardized approach are higher than actual RWA, due to more conservative
assumptions and less granular risk assessments permitted under the SEC-SA when compared with the SEC-IRBA
framework.
30 June 2025 Pillar 3 Report |
UBS Group | Overview of risk-weighted assets 12
CMS1: Comparison of modelled and standardized RWA at risk level
a
b
c
d
e
USD m
RWA for modelled
approaches that UBS has
FINMA approval to use
RWA for portfolios
where standardized
approaches are used
Total Actual RWA
(i.e. RWA which banks
report as current
requirements)
RWA calculated using
full standardized
approach
(i.e. used in the base
of the output floor)
Output floor base
(60% of RWA
calculated using full
standardized
approach)
30.6.25
1
Credit risk (excluding counterparty credit risk)
2
Counterparty credit risk
3
Credit valuation adjustment (CVA)
4
Securitization exposures in banking book
5
Market risk
6
Operational risk
7
Residual RWA
1
8
Total
2
31.3.25
1
Credit risk (excluding counterparty credit risk)
2
Counterparty credit risk
3
Credit valuation adjustment (CVA)
4
Securitization exposures in banking book
5
Market risk
6
Operational risk
7
Residual RWA
1
8
Total
2
1 Includes settlement risk, equity investments in funds and deferred tax assets arising from temporary differences. 2 Conceptually, the output floor is applied at the total RWA level, rather than at individual risk-type
levels.
Comparison of modeled and standardized RWA for credit risk at asset class level
Semi-annual |
In this Pillar 3 report, we are introducing the “CMS2: Comparison of modelled and standardized RWA for credit
risk at asset class level” table for the first time, as part of the final Basel III standards. The CMS2 table elaborates on the
comparison between RWA calculated under the standardized and the internally modeled approaches (including the IRB
approach for credit risk and the supervisory slotting approach) by focusing on RWA for credit risk at the asset class and
sub-asset class levels.
As of 30 June 2025, credit risk RWA calculated using the full standardized approach was USD 383.5bn, compared with
actual RWA of USD 258.1bn. The difference of USD 125.3bn between the RWA calculated using the full standardized
approach and actual RWA was primarily driven by the following asset classes: USD 78.3bn from Retail, USD 31.8bn from
Corporates: other lending and USD 16.2bn from Corporates : specialized lending.
RWA in the Retail asset class calculated using the full standardized approach were USD 78.3bn higher than the actual
such RWA. The largest component of the difference is observed primarily within Retail: exposures secured by real estate
and Retail: other retail, which includes Lombard lending. Under the standardized approach, fixed risk weights are applied
to exposures secured by real estate, depending on the LTV. The internal model-based approach considers borrowers’
ability to service debt more accurately, including calibration based on historic data. The Group’s residential mortgage
portfolio is focused on the Swiss market, and the Group has robust review processes in place concerning borrowers’
ability to repay. This results in the Group’s residential mortgage portfolio having a low average LTV and results in an
average risk weight of around 20% under the A-IRB approach compared with an average of 35% under the standardized
approach. For Lombard lending the average risk weight using internal models is around 10%. The risk weight under the
standardized approach is around 100% for these exposures, primarily due to the differences in the treatment of collateral.
RWA in the Corporates: other lending asset class calculated using the full standardized approach were USD 31.8bn higher
than the actual such RWA. The difference is primarily driven by exposures to large corporate clients, which have higher
risk weights under the standardized approach , with an average of 87%, compared with an average of 48% under the
internal model approach.
RWA in the Corporates: specialized lending asset class calculated using the full standardized approach were USD 16.2bn
higher than the actual such RWA. The difference is primarily driven by exposures related to income producing real estate
(IPRE) and object financing. Under the standardized approach, fixed risk weights are applied to exposures related to IPRE
depending on the LTV, with an average risk weight of 66%, compared with an average of 43% under the internal model
approach. Exposures related to object financing have higher risk weights under the standardized approach, with an
average of 100%, compared with an average of 47% under the internal model approach.
30 June 2025 Pillar 3 Report |
UBS Group | Overview of risk-weighted assets 13
CMS2: Comparison of modelled and standardized RWA for credit risk at asset class level
a
b
c
d
e
USD m
RWA for modelled
approaches that UBS
has FINMA approval
to use
RWA for column (a) if
re-computed using the
standardized approach
Total Actual RWA
(i.e. RWA which banks
report as current
requirements)
RWA calculated using
full standardized
approach
(i.e. used in the base
of the output floor)
Output floor base
(60% of RWA
calculated using full
standardized
approach)
1
30.6.25
1
Central governments, central banks and
supranational organizations
2
of which: Central governments, central banks and
supranational organizations (F-IRB)
3
of which: Central governments, central banks and
supranational organizations (A-IRB)
4
Banks
5
Public sector entities and multilateral development
banks
6
Corporates: specialized lending
7
of which: Corporates: specialized lending under the
supervisory slotting approach
8
of which: Corporates: specialized lending (F-IRB)
9
of which: Corporates: specialized lending (A-IRB)
10
Corporates: other lending
11
of which: Corporates: other lending (F-IRB)
12
of which: Corporates: other lending (A-IRB)
13
Retail
14
of which: Retail: exposures secured by real estate
15
of which: Retail: qualifying revolving retail
exposures (QRRE)
16
of which: Retail: other retail
17
Equity exposures
18
Other
19
Total
1 While output floor is intended to be applied to total RWA, the output floor base disclosed in the CMS2 table reflects only RWA attributable to credit risk exposures. Refer to the “CMS1: Comparison of modelled
and standardized RWA at risk level” table in this section for information about non-credit risk exposures.
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk 14
Credit risk
Introduction
Semi-annual |
The parameters applied under the internal ratings-based (IRB) approach are generally based on the same
methodologies, data and systems we use for internal credit risk quantification, except where certain treatments are
specified by regulatory requirements. These include, for example, the application of regulatory prescribed floors and
multipliers, and differences with respect to eligibility criteria and exposure definitions. The exposure information presented
in this section may thus differ from our internal management view disclosed in the “Risk management and control”
sections of the quarterly and annual reports. Similarly, the regulatory capital prescribed measure of credit risk exposure
also differs from how it is defined under IFRS Accounting Standards.
Credit quality of assets
Semi-annual |
The CR1 table below provides a breakdown of defaulted and non-defaulted loans, debt securities and off-
balance sheet exposures. The table includes a split of expected credit loss accounting provisions based on the standardized
approach and the IRB approach.
Compared with 31 December 2024, the net carrying values of loans, including cash and balances at central banks,
increased by USD 78.0bn to USD 914.1bn, mainly reflecting currency effects. The net carrying values of debt securities
increased by USD 27.1bn to USD 115.8bn, mainly reflecting purchases of high-quality liquid asset (HQLA) portfolio
securities and currency effects.
The net carrying value of off-balance sheet exposures increased by USD 6.1bn to USD 96.8bn, mainly driven by an
increase in loan commitments.
›
Refer to “Credit risk” in the “Risk management and control” section of the UBS Group Annual Report 2024, available under
”Annual reporting” at
ubs.com/investors
, for more information about the definitions of default and credit impairment and to
“Credit risk exposure categories” in the “Credit risk” section of the 31 December 2024 Pillar 3 Report, available under “Pillar 3
disclosures” at
ubs.com/investors
, for more information about the classification of loans and debt securities
CR1: Credit quality of assets
Gross carrying amounts of:
Allowances /
impairments
2
Of which: ECL accounting provisions
for credit losses on SA exposures
Of which: ECL
accounting
provisions for
credit losses on
IRB exposures
Net values
USD m
Defaulted
exposures
1
Non-defaulted
exposures
Allocated in
regulatory
category of
Specific
3
Allocated in
regulatory
category of
General
3
30.6.25
1
Loans
4
2
Debt securities
3
Off-balance sheet exposures
5
4
Total
31.12.24
1
Loans
4
2
Debt securities
3
Off-balance sheet exposures
5
4
Total
1 Defaulted exposures include stage 3 and defaulted purchased credit-impaired (PCI) assets under IFRS 9. Refer to “Note 8 Expected credit loss measurement” in the “Consolidated financial statements” section of
the UBS Group second quarter 2025 report, available under “Quarterly reporting” at ubs.com/investors, for more information about IFRS 9. 2 Expected credit loss (ECL) allowances and provisions amounted to
USD 2,966m as of 30 June 2025, as disclosed in “Note 8 Expected credit loss measurement” in the “Consolidated financial statements” section of the UBS Group second quarter 2025 report, available under
“Quarterly reporting” at ubs.com/investors. This Pillar 3 table excludes ECL of USD 258m toward securitization exposures, revocable off-balance sheet exposures, ECL on irrevocable committed prolongation of loans
that do not give rise to additional credit exposures and exposures subject to counterparty credit risk. 3 Specific provisions include stage 3 ECL allowances and additional ECL allowances on defaulted PCI assets.
General provisions include stage 1 and 2 ECL allowances and additional ECL allowances on non-defaulted PCI assets. 4 Loan exposure is reported in line with the Pillar 3 definition. Refer to “Credit risk exposure
categories” in the “Credit risk“ section of the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information about the classification of loans and debt securities.
5 Off-balance sheet exposures include unutilized credit facilities, guarantees provided and forward starting loan commitments but exclude prolongations of loans that do not increase the initially committed loan
amount. Unutilized credit facilities exclude unconditionally revocable credit facilities, as well as uncommitted credit facilities, even if they attract RWA.
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk 15
Semi-annual |
exposures for the first half of 2025. The total amount of defaulted loans and debt securities was USD 6.8bn as of 30 June
2025, an increase of USD 0.5bn compared with 31 December 2024.
CR2: Changes in stock of defaulted loans, debt securities and off-balance sheet exposures
USD m
For the half year
ended 30.6.25
1
For the half year
ended 31.12.24
1
1
Defaulted loans, debt securities and off-balance sheet exposures as of the beginning of the half year
2
Loans, debt securities and off-balance sheet exposures that have defaulted since the last reporting period
3
Returned to non-defaulted status
4
Amounts written off
5
Other changes
2
6
Defaulted loans, debt securities and off-balance sheet exposures as of the end of the half year
1 Off-balance sheet exposures include unutilized credit facilities, guarantees provided and forward starting loan commitments but exclude prolongations of loans that do not increase the initially committed loan
amount. Unutilized credit facilities exclude unconditionally revocable and uncommitted credit facilities, even if they attract RWA. 2 Includes primarily partial or full repayments, as well as currency effects.
Credit risk mitigation
Semi-annual |
secured exposures, with additional information about the security type.
Compared with 31 December 2024, the carrying amount of unsecured loans, including cash and balances at central
banks, increased by USD 20.9bn to USD 303.8bn, mainly reflecting currency effects.
The carrying amount of partially or fully secured loans increased by USD 57.1bn to USD 610.3bn, mainly reflecting
currency effects.
The carrying amount of unsecured debt securities increased by USD 27.2bn to USD 114.8bn, mainly reflecting purchases
of HQLA portfolio securities and currency effects.
CR3: Credit risk mitigation techniques – overview
1
Secured portion of exposures partially or fully secured:
USD m
Exposures fully
unsecured: carrying
amount
Exposures partially
or fully secured:
carrying amount
Total: carrying
amount
Exposures secured
by collateral
Exposures secured
by financial
guarantees
Exposures secured
by credit derivatives
30.6.25
1
Loans
2
1a
of which: cash and balances at central
banks
2
Debt securities
3
Total
3
4
of which: defaulted
4
31.12.24
1
Loans
2
1a
of which: cash and balances at central
banks
2
Debt securities
3
Total
4
of which: defaulted
4
1 Exposures in this table represent carrying amounts in accordance with the regulatory scope of consolidation. 2 Loan exposure is reported in line with the Pillar 3 definition. Refer to “Credit risk exposure categories”
in the “Credit risk“ section of the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information about the classification of loans and debt securities. 3 Eligible
financial collateral under the IRB approach is recognized in the LGD parameter. The exposure secured by collateral for IRB represents the collateral amounts received prior to any haircuts but subject to the maximum
of the exposure carrying value. 4 Includes purchased credit-impaired assets when defaulted.
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk 16
Credit risk under the standardized approach
Introduction
The standardized approach is generally applied where using the IRB approach is not feasible. Under the standardized
approach, we use where possible credit ratings from external credit assessment institutions to determine the risk
weightings applied to rated counterparties.
Credit risk exposure and credit risk mitigation effects
Semi-annual |
The CR4 table below illustrates the credit risk exposure and effect of credit risk mitigation (CRM) on the
calculation of capital requirements under the standardized approach.
With the adoption of the final Basel III standards on 1 January 2025, including the Swiss Financial Market Supervisory
Authority (FINMA) Ordinance on the Disclosure Obligations of Banks and Securities Firms (the DisO-FINMA), new
standardized asset classes have been introduced. Consequently, this semi-annually disclosed table is limited to the current
reporting period, with no comparative figures presented.
›
Refer to “Amended FINMA-defined asset classes” in the “Introduction and basis for preparation” section of this report for more
information about the amended definition of asset classes as a result of the implementation of the final Basel III standards in
Switzerland
›
Refer to the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
about previously published CR4 disclosures
As of 30 June 2025, the asset class with the largest exposure – after applying credit conversion factors (CCF) and CRM –
was the Corporates asset class, mainly through loans and loan commitments within Global Wealth Management and
Personal & Corporate Banking, as well as debt securities managed by Group Treasury. Additionally, there are significant
exposures in the Central governments, central banks and supranational organizations asset class, primarily comprising
cash and balances at central banks. Exposures to the Banks and Public sector entities asset classes largely consist of
holdings of debt securities. Exposures in Other assets primarily include non-counterparty-related items, including property,
equipment, and software.
CR4: Standardized approach – credit risk exposure and credit risk mitigation (CRM) effects
Exposures
before CCF and CRM
Exposures
post-CCF and post-CRM
RWA and RWA density
USD m, except where indicated
On-balance
sheet
amount
Off-balance
sheet
amount
Total
On-balance
sheet
amount
Off-balance
sheet
amount
Total
RWA
RWA density
in %
30.6.25
Asset classes
1
Central governments, central banks and supranational
organizations
2
Public sector entities
3
Multilateral development banks
4
Banks
4a
of which: Swiss account-holding securities firms and other
financial institutions subject to equivalent prudential
standards and supervision
5
Covered bonds
1
5a
of which: Swiss covered bonds
6
Corporates
6a
of which: Swiss non-account-holding securities firms and
other financial institutions not subject to equivalent
prudential standards and supervision
6b
of which: specialized lending
7
Subordinated debt, equity exposures and other capital
instruments
8
Retail
9
Real estate
9a
of which: own-used RRE
9b
of which: IPRRE
9c
of which: own-used CRE
9d
of which: IPCRE
9e
of which: land acquisition, development and construction
10
Defaulted exposures
11
Other assets
12
Total
1 Covered bond exposures reported under the preferential risk weight treatment relate exclusively to Swiss covered bonds issued under the Swiss covered bonds regulation (Pfandbriefgesetz). All other covered bonds
are presented in the asset classes based on the issuer counterparty.
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk 17
Exposures by asset classes and risk weights
Semi-annual |
weights changed with the adoption of the final Basel III standards on 1 January 2025. Consequently, this semi-annually disclosed table is limited to the current reporting period,
with no comparative figures presented. The credit risk exposures in the CR5 table are post-CCF and post-CRM credit risk exposures.
›
Refer to “Amended FINMA-defined asset classes” in the “Introduction and basis for preparation” section of this report for more information about the amended definition of asset classes as a
result of the implementation of the final Basel III standards in Switzerland
›
Refer to the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about previously published CR5 disclosures
CR5: Standardized approach – exposures by asset classes and risk weights – excluding Real estate
USD m
Risk weight
0%
10%
15%
20%
25%
30%
35%
40%
45%
50%
65%
75%
80%
85%
100%
130%
150%
250%
400%
1,250%
Other
Total
credit
exposures
amount
30.6.25
Asset class
1
Central governments and central
banks
2
Public sector entities
3
Multilateral development banks
4
Banks
4a
of which: Swiss account-holding
securities firms and other non-bank
financial institutions subject to
equivalent prudential standards and
supervision
5
Covered bonds
5a
of which: Swiss Covered Bonds
6
Corporates
6a
of which: Swiss non-account-
holding securities firms and other
financial institutions not subject to
equivalent prudential standards and
supervision
6b
of which: specialized lending
7
Subordinated debt, equity and other
capital instruments
8
Retail
10
Defaulted exposures
11
Other assets
12
Total
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk 18
CR5: Standardized approach – exposures by asset classes and risk weights – Real estate (continued)
USD m
Risk weight
0%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
85%
90%
100%
105%
110%
115%
150%
Other
Total
credit
exposures
amount
30.6.25
Asset class
9
Real estate
9a
of which: own-used RRE
9b
of which: IPRRE
9c
of which: own-used CRE
9d
of which: IPCRE
9e
of which: land acquisition,
development and construction
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk 19
Semi-annual |
exposures, categorised based on risk bucket of converted exposures” table for the first time, as part of the final Basel III
standards. This table presents on- and off-balance sheet exposures distributed across regulatory risk weight buckets,
including what average CCFs are applied to off -balance sheet exposures.
CR5: Exposure amounts and CCFs applied to off-balance sheet exposures, categorised based on risk bucket of
converted exposures
USD m, except where indicated
On-balance sheet
exposure (pre-CRM)
Off-balance sheet
exposure (pre-CCF and
pre-CRM)
Weighted average CCF
in %
Exposure (post-CCF and
post-CRM)
30.6.25
Risk weight
1
Less than 40%
2
40-70%
3
75%
4
85%
5
90-100%
6
105-130%
7
150%
8
250%
9
400%
10
1,250%
11
Total
Credit risk under the internal ratings-based approach
Introduction
The IRB approach includes the advanced IRB (A -IRB) approach and, under the final Basel III standards from 1 January
2025 onward, the foundation IRB (F-IRB) approach for exposures to banks, public sector entities and multilateral
development banks, and large corporate clients. Under the A-IRB approach the required capital for credit risk is quantified
through empirical models that we have developed to estimate the probability of default (PD), loss given default (LGD),
exposure at default (EAD) and other parameters, subject to FINMA approval. Under the F-IRB approach banks are
permitted to use their own internal estimates for the PD and EAD but must apply regulatory-prescribed values for LGD.
Credit risk exposures by portfolio and PD range
Semi-annual |
The CR6 table below provides information about credit risk exposures under the IRB approach, including a
breakdown of the main parameters used in IRB models to calculate the capital requirements, presented by portfolio and
PD range across FINMA-defined asset classes.
With the adoption of the final Basel III standards on 1 January 2025, including the DisO-FINMA, new IRB asset classes
have been introduced, including asset classes subject to the F-IRB approach, such as ”Banks – F-IRB” and ”Corporates:
other lending – F-IRB” reflecting large corporate clients. Consequently, this semi-annually disclosed table is limited to the
current reporting period, with no comparative figures presented.
›
Refer to “Amended FINMA-defined asset classes” in the “Introduction and basis for preparation” section of this report for more
information about the amended definition of asset classes as a result of the implementation of the final Basel III standards in
Switzerland
›
Refer to the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
about previously published CR6 disclosures
As of 30 June 2025, the asset class with the largest exposure – after applying CCF and CRM – was the Retail: exposures
secured by real estate asset class, reflecting our residential mortgage lending activity within Personal & Corporate Banking
and Global Wealth Management. Furthermore, UBS Group has a significant portion of exposures in the Central
governments, central banks and supranational organizations asset class, reflecting balances with central banks in Group
Treasury. In addition, there are significant exposures in the Retail: other retail asset class, representing our Lombard lending
business in Global Wealth Management. The F-IRB approach, which UBS has implemented as part of the final Basel III
standards, predominantly applies to exposures against Banks and other financial institutions, including public sector
entities (PSEs), as well as large
corporate clients
in the Corporates: other lending asset class in Personal & Corporate
Banking and the Investment Bank.
›
Refer to the “CR8: RWA flow statements of credit risk exposures under IRB” table in this section for more information about the
movement of credit risk exposures under the IRB approach
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk 20
CR6: IRB – Credit risk exposures by portfolio and PD range
USD m, except where indicated
Original on-
balance sheet
gross exposure
Off-balance
sheet exposures
pre-CCF
Total
exposures
pre-CCF
Average CCF
in %
EAD post-CCF
and post-CRM
Average PD
in %
Number of
obligors (in
thousands)
1
Average LGD
in %
2
Average
maturity in
years
2
RWA
RWA density
in %
EL
Provisions
3
Central governments, central banks and supranational organizations –
A-IRB as of 30.6.25
0.00 to <0.15
<0.1
0.15 to <0.25
<0.1
0.25 to <0.50
<0.1
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
<0.1
10.00 to <100.00
<0.1
100.00 (default)
4
<0.1
Subtotal
<0.1
Corporates: specialized lending – A-IRB as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
4
<0.1
Subtotal
Corporates: other lending – A-IRB as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
4
Subtotal
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk 21
CR6: IRB – Credit risk exposures by portfolio and PD range (continued)
USD m, except where indicated
Original on-
balance sheet
gross exposure
Off-balance
sheet exposures
pre-CCF
Total
exposures
pre-CCF
Average CCF
in %
EAD post-CCF
and post-CRM
Average PD
in %
Number of
obligors (in
thousands)
1
Average LGD
in %
2
Average
maturity in
years
2
RWA
RWA density
in %
EL
Provisions
3
Retail: exposures secured by real estate – A-IRB as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
4
Subtotal
Retail: qualifying revolving retail exposures (QRRE) – A-IRB as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
4
Subtotal
Retail: other retail – A-IRB as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
4
Subtotal
Total – A-IRB 30.6.25
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk 22
CR6: IRB – Credit risk exposures by portfolio and PD range (continued)
USD m, except where indicated
Original on-
balance sheet
gross exposure
Off-balance
sheet exposures
pre-CCF
Total
exposures
pre-CCF
Average CCF
in %
EAD post-CCF
and post-CRM
Average PD
in %
Number of
obligors (in
thousands)
1
Average LGD
in %
2
Average
maturity in
years
2
RWA
RWA density
in %
EL
Provisions
3
Banks – F-IRB as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
<0.1
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
4
<0.1
Subtotal
Public sector entities, multilateral developmental banks – F-IRB
as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
<0.1
10.00 to <100.00
<0.1
100.00 (default)
4
<0.1
Subtotal
Corporates: other lending – F-IRB as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
4
<0.1
Subtotal
Total – F-IRB 30.6.25
Total (all asset classes under A-IRB and F-IRB) 30.6.25
1 Numbers of obligors represent an aggregation of the client relationships in the UBS Group excluding Credit Suisse along with the client relationships in the Credit Suisse infrastructure. RWA calculations are based on the applicable rules and models approved by FINMA for the respective legal entities and infrastructures.
2 Defaulted exposures disclosed in the table are excluded from average loss given default (LGD) and average maturity information as not relevant for risk weighting. Furthermore, Retail asset classes are excluded from the average maturity, as maturity is not relevant for risk weighting. 3 In line with BCBS Pillar 3
disclosure requirements, provisions are only provided for the sub-totals by asset class. Provisions reflect IFRS Accounting Standards expected credit losses accounting provisions for credit losses on IRB exposures. 4 Includes defaulted purchased credit-impaired assets.
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk 23
Credit derivatives used as CRM techniques
Semi-annual |
Where credit derivatives are used as CRM techniques, the PD of the obligor is in general substituted with the
PD of the hedge provider. The impact of credit derivatives used as CRM techniques on IRB credit risk has been immaterial
for past reporting periods and continued to be immaterial for this reporting period. Therefore, we have discontinued the
disclosure of the “CR7: IRB – Effect on RWA of credit derivatives used as CRM techniques” table starting with the
31 December 2022 Pillar 3 Report, as allowed by the FINMA Circular 2016/1 general principles of disclosure (for periods
up to 31 December 2024) and the DisO-FINMA general principles of disclosure (for periods from 1 January 2025).
›
Refer to the “CCR6: Credit derivatives exposures” table in the “Counterparty credit risk” section of this report for notional and fair
value information about credit derivatives used as CRM techniques
RWA flow statements of credit risk exposures under the internal ratings-based approach
Quarterly |
movement categories defined by the Basel Committee on Banking Supervision (the BCBS).
Credit risk RWA under the IRB approach increased by USD 14.9bn to USD 196.9bn during the second quarter of 2025.
This balance reflects credit risk under the IRB approach, including the F-IRB approach under the final Basel III standards
from 1 January 2025 onward, as well as credit risk under the supervisory slotting approach.
Movements in asset size drove a USD 0.2bn decrease in RWA, driven by decreases in loans and loan commitments in the
Investment Bank, as well as reductions in Group Items, partly offset by increases in loans and loan commitments in
Personal & Corporate Banking and Global Wealth Management .
Movements in asset quality, including changes in risk density across the overall portfolio, increased RWA by USD 3.6bn,
mainly from exposure increases in Personal & Corporate Banking carrying higher risk density than the Group average and
risk density changes in Group Items driven by HQLA balances with central banks.
Model updates decreased RWA by USD 0.6bn, primarily due to harmonization of models, as well as an update related to
structured margin loans and similar products in Global Wealth Management.
Methodology and policy changes resulted in an RWA decrease of USD 0.9bn, stemming from the decommissioning of
Credit Suisse PD models for banks and international mortgages.
Currency effects, driven by the weakening of the US dollar against other major currencies, resulted in an RWA increase
of USD 13.0bn.
›
Refer to the “Definitions of credit risk and counterparty credit risk RWA movement table components for CR8 and CCR7” in the
“Credit risk” section of the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for
definitions of credit risk RWA movement table components
CR8: RWA flow statements of credit risk exposures under IRB
USD m
For the quarter
ended 30.6.25
For the quarter
ended 31.3.25
1
RWA as of the beginning of the quarter
2
Asset size
3
Asset quality
4
Model updates
5
Methodology and policy
5a
of which: impact from the implementation of final Basel III standards
5b
of which: others
(925)
6
Acquisitions and disposals
7
Foreign exchange movements
8
Other
9
RWA as of the end of the quarter
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk 24
Specialized lending
Semi-annual |
approach.
CR10: IRB – specialized lending under the slotting approach
USD m, except where indicated
On-balance sheet
amount
Off-balance sheet
amount
Risk weight
in %
Exposure amount
1
RWA
EL
30.6.25
Other than high-volatility commercial real estate
Regulatory categories and remaining maturity
Strong
Less than 2.5 years
Equal to or more than 2.5 years
Good
Less than 2.5 years
Equal to or more than 2.5 years
Satisfactory
Weak
Default
Total
31.12.24
Other than high-volatility commercial real estate
Regulatory categories and remaining maturity
Strong
Less than 2.5 years
Equal to or more than 2.5 years
Good
Less than 2.5 years
Equal to or more than 2.5 years
Satisfactory
Weak
Default
Total
1 Exposure amounts in connection with income-producing real estate.
30 June 2025 Pillar 3 Report |
UBS Group | Counterparty credit risk 25
Counterparty credit risk
Introduction
Semi-annual I
This section provides information about the exposures subject to the final Basel III counterparty credit risk (CCR)
framework. CCR arises from over-the-counter (OTC) derivatives and exchange-traded derivatives (ETDs), securities
financing transactions (SFTs), and long settlement transactions. We determine the regulatory credit exposure on the
majority of our derivatives portfolio by applying the internal model method (IMM). For the remainder of the derivatives
portfolio we apply the standardized approach for counterparty credit risk (SA-CCR). For the majority of SFTs we determine
the regulatory credit exposure using the value-at-risk (VaR) approach. For the remainder of the SFT portfolio we apply
the comprehensive approach for credit risk mitigation.
Counterparty credit risk exposure
Semi-annual I
The CCR1 table below presents the methods used to calculate CCR exposure. Compared with 31 December
2024, derivative exposures subject to the IMM decreased by USD 9.3bn, mainly as a result of lower levels of client activity
in the Investment Bank. Exposure at default (EAD) after CRM on SFTs under the VaR approach decreased by USD 5.3bn,
primarily driven by exposures managed by Group Treasury , partly offset by increases in the Investment Bank.
CCR1: Analysis of counterparty credit risk (CCR) exposure by approach
Replacement cost
Potential future
exposure
Effective EPE
Alpha used for
computing
regulatory EAD
EAD
post-CRM
RWA
30.6.25
1
SA-CCR (for derivatives)
2
Internal model method (for derivatives)
1
3
Simple approach for credit risk mitigation (for SFTs)
4
Comprehensive approach for credit risk mitigation (for SFTs)
5
VaR (for SFTs)
6
Total
31.12.24
1
SA-CCR (for derivatives)
2
Internal model method (for derivatives)
1
3
Simple approach for credit risk mitigation (for SFTs)
4
Comprehensive approach for credit risk mitigation (for SFTs)
5
VaR (for SFTs)
6
Total
1 A conservative treatment for the purpose of calculating exposure profiles is applied to material trades with wrong-way risk features, along with an alpha factor of 1.0.
Semi-annual |
We have discontinued the disclosure of the “CCR3: Standardized approach – CCR exposures by regulatory
portfolio and risk weights” table, starting with the 31 December 2022 Pillar 3 Report, on the grounds of materiality. The
majority of our CCR exposures are subject to internal ratings-based (IRB) risk weights or disclosed separately when related
to central counterparties (CCPs).
›
Refer to the “CCR4: IRB – CCR exposures by portfolio and PD scale” and the “CCR8: Exposures to central counterparties” tables in
this section for more information about CCR exposures subject to IRB risk weights and CCPs, respectively
30 June 2025 Pillar 3 Report |
UBS Group | Counterparty credit risk 26
Semi-annual |
The CCR4 table below provides a breakdown of the key parameters used for the calculation of capital
requirements under the IRB approach, including the foundation IRB(F-IRB) approach under the final Basel III standards
from 1 January 2025 onward, across Swiss Financial Market Supervisory Authority (FINMA)-defined asset classes.
With the adoption of the final Basel III standards on 1 January 2025, including the FINMA Ordinance on the Disclosure
Obligations of Banks and Securities Firms , new IRB asset classes have been introduced, including asset classes subject to
the F-IRB approach, such as “Banks – F-IRB” and “Corporates: other lending – F-IRB” reflecting large corporate clients.
Consequently, this semi-annually disclosed table is limited to the current reporting period, with no comparative figures
presented.
›
Refer to “Amended FINMA-defined asset classes” in the “Introduction and basis for preparation” section of this report for further
information on the amended definition of asset classes as a result of the implementation of the final Basel III standards in
Switzerland
›
Refer to the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
about previously published CCR4 disclosures
As of 30 June 2025, the asset class with the largest exposure – after applying credit risk mitigation – was the Corporates
asset class, predominantly reflecting derivatives and securities borrowing and lending within the Investment Bank. In
addition, UBS Group has significant exposures in the Retail: other retail asset class, representing derivatives in Global
Wealth Management.
›
Refer to the “CCR7: RWA flow statements of CCR exposures under the internal model method (IMM) and value-at-risk (VaR)” table
in this section for more information about RWA, including details of movements in CCR RWA
CCR4: IRB – CCR exposures by portfolio and PD scale
USD m, except where indicated
EAD post-CRM
Average PD
in %
Number of obligors
(in thousands)
1
Average LGD
in %
2
Average maturity
in years
2
RWA
RWA density
in %
Central governments, central banks and supranational organizations
– A-IRB as of 30.6.25
0.00 to <0.15
<0.1
0.15 to <0.25
<0.1
0.25 to <0.50
<0.1
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
<0.1
10.00 to <100.00
100.00 (default)
Subtotal
<0.1
Corporates – A-IRB as of 30.6.25
3
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
<0.1
Subtotal
Retail: other retail – A-IRB as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
<0.1
Subtotal
Total – A-IRB 30.6.25
30 June 2025 Pillar 3 Report |
UBS Group | Counterparty credit risk 27
CCR4: IRB – CCR exposures by portfolio and PD scale (continued)
USD m, except where indicated
EAD post-CRM
Average PD
in %
Number of obligors
(in thousands)
1
Average LGD
in %
2
Average maturity
in years
2
RWA
RWA density
in %
Banks – F-IRB as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
<0.1
10.00 to <100.00
<0.1
100.00 (default)
Subtotal
Public sector entities, multilateral developmental banks – F-IRB
as of 30.6.25
0.00 to <0.15
0.15 to <0.25
<0.1
0.25 to <0.50
<0.1
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
<0.1
Subtotal
Corporates: other lending – F-IRB as of 30.6.25
3
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
<0.1
Subtotal
Total – F-IRB 30.6.25
Total (all asset classes under A-IRB and F-IRB) 30.6.25
1 Numbers of obligors represent an aggregation of the client relationships in the UBS Group excluding Credit Suisse along with the client relationships in the Credit Suisse infrastructure. RWA calculations are based
on the applicable rules and models approved by FINMA for the respective legal entities and infrastructures. 2 Defaulted exposures disclosed in the table are excluded from average loss given default (LGD) and
average maturity information as not relevant for risk weighting. Furthermore, Retail asset classes are excluded from the average maturity, as they are not subject to maturity treatment. 3 Includes exposures to
managed funds.
30 June 2025 Pillar 3 Report |
UBS Group | Counterparty credit risk 28
Semi-annual |
The CCR5 table below presents a breakdown of collateral posted or received relating to CCR exposures from
derivative transactions and SFTs .
Compared with 31 December 2024, the fair value of collateral received for SFTs increased by USD 96.5bn to
USD 822.2bn, and the fair value of posted collateral for SFTs increased by USD 68.4bn to USD 631.4bn. The increases in
collateral received for SFTs were mainly related to equity securities, and partly from increases in sovereign debt securities,
due to an increase in client activity levels, primarily in the Investment Bank. The increase in posted collateral for SFTs was
mainly related to increases in equity securities. primarily in the Investment Bank, due to an increase in client activity levels,
and also partly related to increases in sovereign debt securities , primarily driven by a balance sheet increase in Group
Treasury.
The fair value of collateral received for derivatives increased by USD 9.2bn to USD 117.0bn, mainly due to higher collateral
related to equity securities. The fair value of posted collateral for derivatives increased by USD 1.6bn to USD 85.4bn.
CCR5: Composition of collateral for CCR exposure
1
Collateral used in derivative transactions
Collateral used in SFTs
Fair value of collateral received
Fair value of posted collateral
Fair value of
collateral received
Fair value of
posted collateral
USD m
Segregated
Unsegregated
Total
Segregated
Unsegregated
Total
30.6.25
Cash – domestic currency
Cash – other currencies
Sovereign debt
Other debt securities
Equity securities
Other collateral
2
Total
31.12.24
Cash – domestic currency
Cash – other currencies
Sovereign debt
Other debt securities
Equity securities
Other collateral
2
Total
1 This table includes collateral received and posted with and without the right of rehypothecation but excludes securities placed with central banks related to undrawn credit lines and for payment, clearing and
settlement purposes for which there were no associated liabilities or contingent liabilities. 2 Includes fund investments, asset-backed securities and mortgage -backed securities.
Semi-annual |
The CCR6 table below presents an overview of credit risk protection bought or sold through credit derivatives.
Compared with 31 December 2024, notionals for credit derivatives for protection bought decreased by USD 11.4bn to
USD 79.4bn and notionals for credit derivatives for protection sold were largely unchanged at USD 66.1bn, primarily
driven by index credit default swaps and single-name credit default swaps, mainly in the Investment Bank, reflecting
compression activities and natural roll-offs, as well as a decrease in Non-Core and Legacy as a result of our actions to
actively unwind exposures.
CCR6: Credit derivatives exposures
30.6.25
31.12.24
USD m
Protection
bought
Protection
sold
Protection
bought
Protection
sold
Notionals
1
Single-name credit default swaps
Index credit default swaps
Total return swaps
Credit options
Total notionals
Fair values
Derivative financial assets
Derivative financial liabilities
1 Includes notional amounts for client-cleared transactions.
30 June 2025 Pillar 3 Report |
UBS Group | Counterparty credit risk 29
Counterparty credit risk risk-weighted assets
Quarterly |
The CCR7 table below presents a flow statement explaining changes in CCR RWA determined under the IMM for
derivatives and the VaR approach for SFTs.
CCR RWA on derivatives under the IMM increased by USD 0.5bn to USD 13.2bn during the second quarter of 2025.
Currency effects and model updates resulted in RWA increases of USD 0.5bn and USD 0.2bn, respectively. Movements
in asset size and credit quality each resulted in RWA decrease s of USD 0.1bn.
CCR RWA on SFTs under the VaR approach increased by USD 0.2bn to USD 6.5bn during the second quarter of 2025.
Currency effects and asset size movements resulted in RWA increases of USD 0.4bn and USD 0.1bn, respectively. Credit
quality movements contributed to an RWA decrease of USD 0.2bn, primarily due to decreases in risk density in the
Investment Bank and Group Treasury. Methodology changes caused an RWA decrease of USD 0. 1bn.
›
Refer to “Definitions of credit risk and counterparty credit risk RWA movement table components for CR8 and CCR7” in the
“Credit risk” section of the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for
definitions of CCR RWA movement table components
CCR7: RWA flow statements of CCR exposures under the internal model method (IMM) and value-at-risk (VaR)
For the quarter ended 30.6.25
For the quarter ended 31.3.25
USD m
Derivatives
SFTs
Total
Derivatives
SFTs
Total
Subject to IMM
Subject to VaR
Subject to IMM
Subject to VaR
1
RWA as of the beginning of the quarter
2
Asset size
3
Credit quality of counterparties
4
Model updates
5
Methodology and policy
5a
of which: impact from the implementation of final Basel III
standards
5b
of which: others
6
Acquisitions and disposals
7
Foreign exchange movements
8
Other
9
RWA as of the end of the quarter
Semi-annual |
The CCR8 table below presents a breakdown of exposures to CCPs and related RWA. Compared with
31 December 2024, exposures to qualifying CCPs decreased by USD 22.9bn to USD 32.9bn, primarily due to the
increased recognition of trades under the more risk-sensitive IMM rather than the SA-CCR approach .
CCR8: Exposures to central counterparties
30.6.25
31.12.24
USD m
EAD (post-CRM)
RWA
EAD (post-CRM)
RWA
1
Exposures to QCCPs (total)
1
2
Exposures for trades at QCCPs (excluding initial margin and default fund contributions); of which
3
(i) OTC derivatives
4
(ii) Exchange-traded derivatives
5
(iii) Securities financing transactions
6
(iv) Netting sets where cross-product netting has been approved
7
Segregated initial margin
8
Non-segregated initial margin
2
9
Pre-funded default fund contributions
10
Unfunded default fund contributions
11
Exposures to non-QCCPs (total)
12
Exposures for trades at non-QCCPs (excluding initial margin and default fund contributions); of which
13
(i) OTC derivatives
14
(ii) Exchange-traded derivatives
15
(iii) Securities financing transactions
16
(iv) Netting sets where cross-product netting has been approved
17
Segregated initial margin
18
Non-segregated initial margin
2
19
Pre-funded default fund contributions
20
Unfunded default fund contributions
3
1 Qualifying central counterparties (QCCPs) are entities that are licensed by regulators to operate as CCPs and that meet the requirements outlined in the FINMA Ordinance on the Credit Risks of Banks and Securities
Firms (the CreO-FINMA). 2 Exposures associated with initial margin, where the exposures are measured under the IMM or the VaR approach, have been included within the exposures for trades (refer to line 2 for
QCCPs and line 12 for non-QCCPs). The exposures for non-segregated initial margin (refer to line 8 for QCCPs and line 18 for non-QCCPs), i.e. not bankruptcy remote in accordance with the CreO-FINMA, reflect the
replacement costs under SA-CCR multiplied by an alpha factor of 1.4. The RWA reflect the exposure multiplied by the applied risk weight of derivatives. Under SA-CCR, collateral posted to a segregated, bankruptcy-
remote account does not increase the value of replacement costs. 3 Excludes unfunded default fund contributions that are not subject to RWA calculations in line with regulatory guidance.
30 June 2025 Pillar 3 Report |
UBS Group | Credit valuation adjustment 30
Credit valuation adjustment
Overview
The credit valuation adjustment (CVA) capital charge covers the risk of mark-to-market losses associated with the
deterioration of counterparty credit quality. We apply the standardized approach for calculating CVA capital requirements
(SA-CVA) on positions where we generally use the internal model method to derive the exposure at default for derivatives
and the full basic approach (BA-CVA) for all other positions.
›
Refer to “Overview of RWA and capital requirements” in the “Overview of risk-weighted assets” section of this report for the
materiality of BA-CVA and SA-CVA risk-weighted assets and capital requirements
CVA exposures under BA-CVA
Semi-annual |
In this Pillar 3 report, we are introducing the “CVA2: The full basic approach for CVA (BA-CVA)” table for the
first time, as part of the final Basel III standards. The CVA2 table shows the components used for the computation of
capital requirements under the full BA-CVA for CVA risk. BA-CVA risk-weighted assets (RWA) were USD 5.6bn as of
30 June 2025. As we have introduced the full BA-CVA from 1 January 2025, no comparative-period information for
31 December 2024 is available.
CVA2: The full basic approach for CVA (BA-CVA)
USD m
Capital
requirements
under BA-CVA
RWA
30.6.25
1
K
Reduced
2
K
Hedged
3
Total
1
1 Total is calculated as the sum of 75% K
Hedged
Reduced
.
CVA exposures under SA-CVA
Semi-annual |
In this Pillar 3 report, we are introducing the “CVA3: The standardized approach for CVA (SA-CVA)” table for
the first time, as part of the final Basel III standards. The CVA3 table provides the components used for the computation
of capital requirements under the SA-CVA for CVA risk. SA-CVA RWA were USD 4.3bn as of 30 June 2025. As we have
introduced the SA-CVA from 1 January 2025, no comparative -period information for 31 December 2024 is available.
CVA3: The standardized approach for CVA (SA-CVA)
USD m, except where indicated
Capital
requirements
under SA-CVA
RWA
Number of
counterparties
30.6.25
1
Interest rate risk
2
Foreign exchange risk
3
Reference credit spread risk
4
Equity risk
5
Commodity risk
6
Counterparty credit spread risk
7
Total
RWA flow statements of CVA risk exposures under SA-CVA
Quarterly |
The CVA4 table shows the variations in RWA for CVA risk determined under the SA-CVA. The SA-CVA RWA was
stable at USD 4.3bn during the second quarter of 2025.
CVA4: RWA flow statements of CVA risk exposures under SA-CVA
USD m
Total RWA
1
RWA as of 31.3.25
2
RWA as of 30.6.25
30 June 2025 Pillar 3 Report |
UBS Group | Securitizations 31
Securitizations
Introduction
Semi-annual |
books based on the Basel III securitization framework.
In a traditional securitization a pool of loans (or other debt obligations) is typically transferred to structured entities that
have been established to own the pool and to issue tranched securities to third-party investors referencing this pool of
loans. In a synthetic securitization legal ownership of securitized pools of assets is typically retained, but associated credit
risk is transferred to structured entities, typically through guarantees, credit derivatives or credit-linked notes. In both
traditional and synthetic securitizations risk is dependent on the seniority of the retained interest and the performance of
the underlying asset pool. UBS is active in various roles in relation to securitization activity, including originator, investor
and sponsor, mainly via its Investment Bank and Personal & Corporate Banking business divisions and, to a lesser extent,
in Non-core and Legacy, where it continues to exit its remaining exposures .
Regulatory capital treatment of securitization structures
For banking book securitizations the regulatory capital requirements are calculated using the following hierarchy of
approaches: the securitization internal ratings-based approach, the securitization external ratings-based approach or the
securitization standardized approach. Otherwise, a 1,250% risk weight is applied as a fallback. External ratings used in
regulatory capital calculations for securitization risk exposures in the banking book are obtained from Fitch, Moody’s,
S&P or DBRS.
For trading book securitizations, the regulatory capital requirements are calculated under the market risk framework.
Securitization exposures in the banking and trading books
Semi-annual |
The SEC1 table shows the balance sheet carrying values of securitization exposures in the banking book as of
30 June 2025 and 31 December 2024, respectively. For synthetic securitizations, the amounts disclosed reflect the net
exposure at default on retained positions. The securitization activity is further broken down by role (originator, sponsor
or investor) and by securitization type (traditional or synthetic). The SEC3 and SEC4 tables provide the regulatory capital
requirements associated with the banking book securitization exposures differentiated by our role in the securitization.
Securitization exposures in the banking book are aimed at reducing or limiting risk and commensurately releasing capital
in accordance with the Basel rules by securitizing the underlying assets. Structures originated by UBS typically provide
protection against loss related to specific credit exposures (e.g. loans, loan commitments or debt instruments) by creating
synthetic securitization tranches on the underlying reference portfolio. Such transactions usually consist of first loss
protection provided by a third party and typically a senior tranche retained by UBS. Structures may additionally entail a
mezzanine tranche. First loss and mezzanine tranches may be fully funded or partially funded. Significant risk transfers
through synthetic securitization are subject to separate specific risk limits under the authority of the Board of Directors
for the Group overall, with sub-limits under the authority of the Group Chief Risk Officer for Personal & Corporate
Banking and the Investment Bank. Synthetic securitization exposure originated by UBS in the banking book was
USD 15.9bn at the end of the second quarter of 2025, with the majority of the risk-weighted assets (RWA) impact
reflected in the Investment Bank.
Securitization exposures in the trading book resulted in USD 0. 2bn RWA as of 30 June 2025. Due to the low materiality,
we have discontinued the disclosure of the “SEC2: Securitization exposures in the trading book” table, starting with this
30 June 2025 Pillar 3 Report, as allowed by the Swiss Financial Market Supervisory Authority (FINMA) Ordinance on the
Disclosure Obligations of Banks and Securities Firms general principles of disclosure.
›
Refer to “Market risk under standardized approach” in the “Market risk” section of this report for more information about RWA
of trading book securitizations
Development of securitization exposures in the first half of 2025
Compared with 31 December 2024, securitization exposures in the banking book increased by USD 0.2bn to
USD 31.6bn, reflecting an increase in the mortgage financing business, partly offset by the exit from synthetic structures
in Personal & Corporate Banking.
30 June 2025 Pillar 3 Report |
UBS Group | Securitizations 32
SEC1: Securitization exposures in the banking book
1
Bank acts as originator
Bank acts as sponsor
Bank acts as investor
Total
USD m
Traditional
Synthetic
Subtotal
Traditional
Synthetic
Subtotal
Traditional
Synthetic
Subtotal
30.6.25
Asset classes
1
Retail (total)
2
of which: residential mortgage
3
of which: credit card receivables
4
of which: other retail exposures
2
5
Wholesale (total)
6
of which: loans to corporates or SME
7
of which: commercial mortgage
8
of which: lease and receivables
9
of which: other wholesale
10
Re-securitization
11
Total securitization / re-securitization
(including retail and wholesale)
31.12.24
Asset classes
1
Retail (total)
2
of which: residential mortgage
3
of which: credit card receivables
4
of which: other retail exposures
2
5
Wholesale (total)
6
of which: loans to corporates or SME
7
of which: commercial mortgage
8
of which: lease and receivables
9
of which: other wholesale
10
Re-securitization
11
Total securitization / re-securitization
(including retail and wholesale)
1 From the second quarter of 2025 onward, we have refined our disclosure approach by reclassifying certain exposures where the bank acts as an investor previously reported under “other wholesale” into more
granular asset classes. Comparative-period information has been restated to reflect this change. 2 Includes unsecured consumer loans, solar leases and automobile loans.
30 June 2025 Pillar 3 Report |
UBS Group | Securitizations 33
SEC3: Securitization exposures in the banking book and associated regulatory capital requirements – bank acting as originator or as sponsor
USD m
Total
exposure
values
Exposure values (by RW bands)
Exposure values (by regulatory approach)
Total
RWA
RWA (by regulatory approach)
Total capital
charge after
cap
Capital charge after cap
30.6.25
≤20% RW
>20% to
50% RW
>50% to
100% RW
>100% to
<1,250%
RW
1,250% RW
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
Asset classes
1
Total exposures
2
Traditional securitization
3
of which: securitization
4
of which: retail underlying
5
of which: wholesale
6
of which: re-securitization
7
of which: senior
8
of which: non-senior
9
Synthetic securitization
10
of which: securitization
11
of which: retail underlying
12
of which: wholesale
13
of which: re-securitization
14
of which: senior
15
of which: non-senior
31.12.24
Asset classes
1
Total exposures
2
Traditional securitization
3
of which: securitization
4
of which: retail underlying
5
of which: wholesale
6
of which: re-securitization
7
of which: senior
8
of which: non-senior
9
Synthetic securitization
10
of which: securitization
11
of which: retail underlying
12
of which: wholesale
13
of which: re-securitization
14
of which: senior
15
of which: non-senior
30 June 2025 Pillar 3 Report |
UBS Group | Securitizations 34
SEC4: Securitization exposures in the banking book and associated regulatory capital requirements – bank acting as investor
USD m
Total
exposure
values
Exposure values (by RW bands)
Exposure values (by regulatory approach)
Total
RWA
RWA (by regulatory approach)
Total capital
charge after
cap
Capital charge after cap
30.6.25
≤20% RW
>20% to
50% RW
>50% to
100% RW
>100% to
<1,250%
RW
1,250% RW
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
Asset classes
1
Total exposures
2
Traditional securitization
3
of which: securitization
4
of which: retail underlying
5
of which: wholesale
6
of which: re-securitization
7
of which: senior
8
of which: non-senior
9
Synthetic securitization
10
of which: securitization
11
of which: retail underlying
12
of which: wholesale
13
of which: re-securitization
14
of which: senior
15
of which: non-senior
31.12.24
Asset classes
1
Total exposures
2
Traditional securitization
3
of which: securitization
4
of which: retail underlying
5
of which: wholesale
6
of which: re-securitization
7
of which: senior
8
of which: non-senior
9
Synthetic securitization
10
of which: securitization
11
of which: retail underlying
12
of which: wholesale
13
of which: re-securitization
14
of which: senior
15
of which: non-senior
30 June 2025 Pillar 3 Report |
UBS Group | Market risk 35
Market risk
Overview
Semi-annual |
The final Basel III standards on the minimum capital requirements for market risk of the Basel Committee on
Banking Supervision, known as the Fundamental Review of the Trading Book (the FRTB) framework, entered into force
in Switzerland on 1 January 2025. We currently apply the standardized approach of the FRTB framework, in which the
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 also attract an RRAO charge. The new FRTB framework replaced the value-at-risk (VaR)- and stressed VaR-based
Basel 2.5 market risk framework.
Market risk under standardized approach
Semi-annual |
In this Pillar 3 report, we are introducing the “MR1: Market risk under standardized approach” table for the first
time, as part of the final Basel III standards. The MR1 table shows the components of risk-weighted assets (RWA) under
the standardized approach. Market risk RWA under the standardized approach were USD 30.5bn as of 30 June 2025. As
we have introduced the standardized approach of the FRTB framework from 1 January 2025, no comparative-period
information for 31 December 2024 is available.
MR1: Market risk under standardized approach
RWA in standardized approach
USD m
30.6.25
1
General interest rate risk
2
Equity risk
3
Commodity risk
4
Foreign exchange risk
5
Credit spread risk – non-securitizations
6
Credit spread risk – securitizations (non-correlation trading portfolio)
7
Credit spread risk – securitizations (correlation trading portfolio)
8
Default risk – non-securitizations
9
Default risk – securitizations (non-correlation trading portfolio)
10
Default risk – securitizations (correlation trading portfolio)
11
Residual risk add-on
12
Internal risk transfers
1
13
Total
1 Internal risk transfer charge refers to the capital requirement calculated for the risk transferred between the banking book and the trading book, typically for hedging purposes.
30 June 2025 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 36
Going and gone concern requirements and eligible
capital
Quarterly |
The table below provides details of the Swiss systemically relevant bank (SRB) going and gone concern capital
requirements as required by the Swiss Financial Market Supervisory Authority (FINMA ).
›
Refer to the “Capital management” section of the UBS Group second quarter 2025 report, available under ”Quarterly reporting”
at
ubs.com/investors
, for more information about capital management
Swiss SRB going and gone concern requirements and information
As of 30.6.25
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
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 1.62% for risk-weighted assets (RWA) and 0.50% for leverage ratio denominator (LRD), of which 18 basis points for RWA reflect the 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 0.12% for CET1 capital and 0.05% 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; 4.35% 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 From 1 January 2023, the resolvability discount on the gone concern
capital requirements for systemically important banks (SIBs) has been replaced with reduced 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 As of July 2024, 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.
30 June 2025 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 37
Semi-annual |
countercyclical capital buffer (the CCyB) requirement applicable to private-sector exposures in UBS Group
AG consolidated. During the first half of 2025 our bank-specific CCyB requirement decreased by 3 basis points to 13 basis
points, primarily driven by a reduction in RWA. Notably, CCyB rates remained unchanged compared with their levels on
31 December 2024.
›
Refer to the “Risk management and control” section of the UBS Group Annual Report 2024, available under ”Annual reporting” at
ubs.com/investors
, for more information about the methodology of geographical allocation used
CCyB1: Geographical distribution of credit exposures used in the countercyclical capital buffer
USD m, except where indicated
30.6.25
Geographical breakdown
Countercyclical capital
buffer rate, %
Risk-weighted assets
used in the computation
of the countercyclical
capital buffer
1
Bank-specific
countercyclical capital
buffer rate, %
Countercyclical amount
Hong Kong SAR
Luxembourg
United Kingdom
Sweden
Australia
Germany
France
Netherlands
Belgium
South Korea
Sum
Total
1 Includes private-sector exposures in the countries that are Basel Committee on Banking Supervision (BCBS)-member jurisdictions, under the following categories: “Credit risk”, “Counterparty credit risk”, “Settlement
risk”, “Securitization exposures in the banking book” and “Amounts below thresholds for deduction (250% risk weight)”, as well as the corresponding trading book charges included under “Marke t risk”.
Explanation of the differences between the IFRS Accounting Standards and regulatory scopes of
consolidation
Semi-annual |
USD 19,651m; total equity on a standalone basis as of 30 June 2025: USD 34m) represented the most significant entity
that was included in the IFRS Accounting Standards scope of consolidation but not in the regulatory scope of
consolidation. This life insurance entity accounts for most of the difference between the “Balance sheet in accordance
with IFRS Accounting Standards scope of consolidation” and the “Balance sheet in accordance with regulatory scope of
consolidation” columns in the CC2 table in this report. The difference is mainly related to financial assets at fair value
not held for trading and other financial liabilities designated at fair value. Further differences are mainly related to other
entities that are not active in banking and finance and are, therefore, generally not consolidated under the regulatory
scope of consolidation.
In the banking book, certain equity investments are not consolidated under either the IFRS Accounting Standards or
under the regulatory scopes. As of 30 June 2025, these investments mainly consisted of infrastructure holdings and joint
operations (e.g. settlement and clearing institutions, and stock and financial futures exchanges) and included our
participation in SIX Group. These investments are risk weighted based on applicable threshold rules.
›
Refer to our legal entity structure, available under “Holding company and significant regulated subsidiaries and sub-groups” at
ubs.com/investors
, for more information about the legal structure of the UBS Group and to “Note 1 Summary of material
accounting policies” in the “Consolidated financial statements” section of the UBS Group Annual Report 2024, available under
“Annual reporting” at
ubs.com/investors
, for more information about the IFRS Accounting Standards scope of consolidation
›
Refer to the “Linkage between financial statements and regulatory exposures” section of the 31 December 2024 Pillar 3 Report,
available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about differences between the IFRS Accounting
Standards and regulatory scopes of consolidation
30 June 2025 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 38
Semi-annual |
The CC2 table below provides a reconciliation of the balance sheet under IFRS Accounting Standards to the
balance sheet according to the regulatory scope of consolidation as defined by the Basel Committee on Banking
Supervision (the BCBS) and FINMA. Lines in the balance sheet under the regulatory scope of consolidation are expanded
and referenced where relevant to display all components that are used in the “CC1: Composition of regulatory capital”
table.
CC2: Reconciliation of accounting balance sheet to balance sheet under the regulatory scope of consolidation
As of 30.6.25
Balance sheet in
accordance with
IFRS Accounting
Standards scope
of consolidation
Effect of
deconsolidated,
proportionally
consolidated or
additional consolidated
entities for regulatory
consolidation
Balance sheet in
accordance with
regulatory scope of
consolidation
References
1
USD m
Assets
Cash and balances at central banks
Amounts due from banks
Receivables from securities financing transactions measured at amortized cost
Cash collateral receivables on derivative instruments
Loans and advances to customers
Other financial assets measured at amortized cost
Total financial assets measured at amortized cost
Financial assets at fair value held for trading
of which: assets pledged as collateral that may be sold or repledged by counterparties
Derivative financial instruments
Brokerage receivables
Financial assets at fair value not held for trading
Total financial assets measured at fair value through profit or loss
Financial assets measured at fair value through other comprehensive income
Investments in associates
of which: goodwill
Property, equipment and software
Goodwill and intangible assets
of which: goodwill
of which: intangible assets
Deferred tax assets
of which: deferred tax assets recognized for tax loss carry-forwards and unused tax credits
carried forward
of which: deferred tax assets on temporary differences
Other non-financial assets
of which: net defined benefit pension and other post-employment assets
Total assets
30 June 2025 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 39
CC2: Reconciliation of accounting balance sheet to balance sheet under the regulatory scope of consolidation
(continued)
As of 30.6.25
Balance sheet in
accordance with
IFRS Accounting
Standards scope
of consolidation
Effect of
deconsolidated,
proportionally
consolidated or
additional consolidated
entities for regulatory
consolidation
Balance sheet in
accordance with
regulatory scope of
consolidation
References
1
USD m
Liabilities
Amounts due to banks
Payables from securities financing transactions measured at amortized cost
Cash collateral payables on derivative instruments
Customer deposits
Debt issued measured at amortized cost
of which: amount eligible for high-trigger loss-absorbing additional tier 1 capital
Other financial liabilities measured at amortized cost
Total financial liabilities measured at amortized cost
Financial liabilities at fair value held for trading
Derivative financial instruments
Brokerage payables designated at fair value
Debt issued designated at fair value
Other financial liabilities designated at fair value
Total financial liabilities measured at fair value through profit or loss
Provisions and contingent liabilities
Other non-financial liabilities
of which: amount eligible for high-trigger loss-absorbing capital (Deferred Contingent
Capital Plan (DCCP))
2
of which: deferred tax liabilities related to goodwill
of which: deferred tax liabilities related to other intangible assets
Total non-financial liabilities
Total liabilities
Equity
Share capital
Share premium
Treasury shares
Retained earnings
Other comprehensive income recognized directly in equity, net of tax
of which: unrealized gains / (losses) from cash flow hedges
Equity attributable to shareholders
Equity attributable to non-controlling interests
Total equity
Total liabilities and equity
1 References link the lines of this table to the respective reference numbers provided in the “References” column in the “CC1: Composition of regulatory capital” table in this section. 2 The IFRS Accounting Standards
carrying amount of total DCCP liabilities was USD 1,907m as of 30 June 2025. Refer to the “Compensation” section of the UBS Group Annual Report 2024, available under ”Annual reporting” at ubs.com/investors,
for more information about the DCCP.
30 June 2025 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 40
Semi-annual |
The CC1 table below provides the composition of capital in the format prescribed by the BCBS and FINMA, and
is based on BCBS Basel III rules, unless stated otherwise. Reference is made to items reconciling to the balance sheet
under the regulatory scope of consolidation as disclosed in the “CC2: Reconciliation of accounting balance sheet to
balance sheet under the regulatory scope of consolidation” table in this section.
›
Refer to the documents titled “Capital and total loss-absorbing instruments of UBS Group AG consolidated, UBS AG consolidated
and standalone – Key features” and “UBS Group AG consolidated capital instruments and TLAC-eligible senior unsecured debt”,
available under “Bondholder information” at
ubs.com/investors,
instruments, as well as the full terms and conditions
CC1: Composition of regulatory capital
As of 30.6.25
Amounts
References
1
USD m, except where indicated
Common Equity Tier 1 capital: instruments and reserves
1
Directly issued qualifying common share (and equivalent for non-joint stock companies) capital plus related stock surplus
2
Retained earnings
3
Accumulated other comprehensive income (and other reserves)
5
Common share capital issued by subsidiaries and held by third parties (amount allowed in group CET1)
6
Common Equity Tier 1 capital before regulatory adjustments
Common Equity Tier 1 capital: regulatory adjustments
7
Prudent valuation adjustments
8
Goodwill (net of related tax liability)
9
Other intangibles other than mortgage servicing rights (net of related tax liability)
10
Deferred tax assets that rely on future profitability, excluding those arising from temporary differences (net of related tax liability)
2
11
Cash flow hedge reserve
12
Shortfall of provisions to expected losses
13
Securitization gain on sale
14
Gains and losses due to changes in own credit risk on fair valued liabilities
15
Defined benefit pension fund net assets
16
Investments in own shares (if not already subtracted from paid-in capital on reported balance sheet)
3
17
Reciprocal cross-holdings in common equity
17a
17b
18
Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, where the bank
does not own more than 10% of the issued share capital (amount above 10% threshold)
19
Significant investments in the common stock of banking, financial and insurance entities that are outside the scope of regulatory consolidation
(amount above 10% threshold)
20
Mortgage servicing rights (amount above 10% threshold)
21
Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability)
22
Amount exceeding the 15% threshold
23
of which: significant investments in the common stock of financials
24
of which: mortgage servicing rights
25
of which: deferred tax assets arising from temporary differences
26
National specific regulatory adjustments
26a
of which: adjustments to financial statements in accordance with a recognized international accounting standard
26b
Other adjustments
4
27
Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2 to cover deductions
28
Total regulatory adjustments to Common Equity Tier 1
29
Common Equity Tier 1 capital (CET1)
30 June 2025 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 41
CC1: Composition of regulatory capital (continued)
As of 30.6.25
Amounts
References
1
USD m, except where indicated
Additional Tier 1 capital: instruments
30
Directly issued qualifying additional Tier 1 instruments plus related stock surplus
31
of which: classified as equity under applicable accounting standards
32
of which: classified as liabilities under applicable accounting standards
33
Directly issued capital instruments subject to phase-out from additional Tier 1
34
Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by subsidiaries and held by third parties (amount allowed in
group AT1)
36
Additional Tier 1 capital before regulatory adjustments
Additional Tier 1 capital: regulatory adjustments
37
Investments in own additional Tier 1 instruments
5
38
Reciprocal cross-holdings in additional Tier 1 instruments
38a
Qualified holdings where a significant influence is exercised with other owners (AT1 instruments)
38b
Immaterial investments (AT1 instruments)
39
Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, where the bank
does not own more than 10% of the issued common share capital of the entity (amount above 10% threshold)
40
Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation
41
National specific regulatory adjustments
42
Regulatory adjustments applied to additional Tier 1 due to insufficient Tier 2 to cover deductions
42a
Regulatory adjustments applied to CET1 capital due to insufficient additional Tier 1 to cover deductions
43
Total regulatory adjustments to additional Tier 1 capital
44
Additional Tier 1 capital (AT1)
45
Tier 1 capital (T1 = CET1 + AT1)
Tier 2 capital: instruments and provisions
46
Directly issued qualifying Tier 2 instruments plus related stock surplus
48
Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 34) issued by subsidiaries and held by third parties (amount
allowed in group Tier 2)
50
Provisions
51
Tier 2 capital before regulatory adjustments
Tier 2 capital: regulatory adjustments
52
Investments in own Tier 2 instruments
53
Reciprocal cross-holdings in Tier 2 instruments and other TLAC liabilities
53a
Qualified holdings where a significant influence is exercised with other owners (T2 instruments and other TLAC instruments)
53b
Immaterial investments (T2 instruments and other TLAC instruments)
54
Investments in the capital and other TLAC liabilities of banking, financial and insurance entities that are outside the scope of regulatory
consolidation, where the bank does not own more than 10% of the issued common share capital of the entity (amount above 10% threshold)
55
Significant investments in the capital and other TLAC liabilities of banking, financial and insurance entities that are outside the scope of
regulatory consolidation (net of eligible short positions)
56
National specific regulatory adjustments
56a
Excess of the adjustments, which are allocated to the AT1 capital
57
Total regulatory adjustments to Tier 2 capital
58
Tier 2 capital (T2)
59
Total regulatory capital (TC = T1 + T2)
60
Total risk-weighted assets
Capital ratios and buffers
61
Common Equity Tier 1 (as a percentage of risk-weighted assets)
62
Tier 1 (as a percentage of risk-weighted assets)
63
Total capital (as a percentage of risk-weighted assets)
64
Institution-specific buffer requirement (capital conservation buffer plus countercyclical buffer requirements plus higher loss absorbency
requirement, expressed as a percentage of risk-weighted assets)
6
65
of which: capital conservation buffer requirement
66
of which: bank-specific countercyclical buffer requirement
67
of which: higher loss absorbency requirement
68
Common Equity Tier 1 (as a percentage of risk-weighted assets) available after meeting the bank’s minimum capital requirements
Amounts below the thresholds for deduction (before risk weighting)
72
Non-significant investments in the capital and other TLAC liabilities of other financial entities
73
Significant investments in the common stock of financial entities
74
Mortgage servicing rights (net of related tax liability)
75
Deferred tax assets arising from temporary differences (net of related tax liability)
Applicable caps on the inclusion of provisions in Tier 2
76
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardized approach (prior to application of cap)
77
Cap on inclusion of provisions in Tier 2 under standardized approach
78
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based approach (prior to application of cap)
79
Cap for inclusion of provisions in Tier 2 under internal ratings-based approach
1 References link the lines of this table to the respective reference numbers provided in the “References” column in the “CC2: Reconciliation of accounting balance sheet to balance sheet under the regulatory scope
of consolidation” table in this section. 2 IFRS Accounting Standards netting for deferred tax assets and liabilities is reversed for items deducted from CET1 capital. 3 Includes USD 2,006m capital reserves for
expected future share repurchases. 4 Includes USD 1,032m in a compensation-related charge for regulatory capital purposes 5 Under IFRS Accounting Standards, debt issued and subsequently repurchased is
treated as extinguished. 6 BCBS requirements are exceeded by UBS’s Swiss SRB requirements. Refer to the “Capital, liquidity and funding, and balance sheet“ section of the UBS Group Annual Report 2024, available
under ”Annual reporting” at ubs.com/investors, for more information about the Swiss SRB requirements.
30 June 2025 Pillar 3 Report |
UBS Group | Total loss-absorbing capacity 42
Total loss-absorbing capacity
Resolution group – composition of total loss-absorbing capacity
Semi-annual |
The TLAC1 table below is based on Basel Committee on Banking Supervision rules and only applicable to
UBS Group AG as the ultimate parent entity of the defined UBS resolution group, to which, in case of resolution,
resolution tools (e.g. a bail-in) are expected to be applied.
In the first half of 2025, our eligible additional tier 1 (AT1) instruments increased by USD 2.6bn, mainly driven by issuances
of AT1 capital instruments equivalent to a total of USD 3.0bn and positive impacts from interest rate risk hedge, foreign
currency translation and other effects, partly offset by the call of AT1 capital instruments equivalent to USD 1.3bn.
Non-regulatory capital elements of total loss-absorbing capacity (TLAC) increased by USD 1.8bn, mainly driven by new
issuances of TLAC-eligible senior unsecured debt instruments totaling USD 6.6bn equivalent and positive impacts from
interest rate risk hedge, foreign currency translation and other effects. These effects were partly offset by the call of
USD 7.0bn equivalent TLAC-eligible senior unsecured debt instruments and USD 4.1bn equivalent TLAC-eligible senior
unsecured debt instruments ceasing to be eligible as non-regulatory capital elements of TLAC as they entered the final
year before maturity.
TLAC1: TLAC composition for G-SIBs (at resolution group level)
30.6.25
31.12.24
USD m, except where indicated
Regulatory capital elements of TLAC and adjustments
1
Common Equity Tier 1 capital (CET1)
2
Additional Tier 1 capital (AT1) before TLAC adjustments
3
AT1 ineligible as TLAC as issued out of subsidiaries to third parties
4
Other adjustments
5
Total AT1 instruments eligible under the TLAC framework
6
Tier 2 capital (T2) before TLAC adjustments
7
Amortized portion of T2 instruments where remaining maturity > 1 year
8
T2 capital ineligible as TLAC as issued out of subsidiaries to third parties
9
Other adjustments
10
Total T2 instruments eligible under the TLAC framework
11
TLAC arising from regulatory capital
Non-regulatory capital elements of TLAC
12
External TLAC instruments issued directly by the bank and subordinated to excluded liabilities
13
External TLAC instruments issued directly by the bank which are not subordinated to excluded liabilities but meet all other TLAC term sheet
requirements
14
of which: amount eligible as TLAC after application of the caps
15
External TLAC instruments issued by funding vehicles prior to 1 January 2022
16
Eligible ex ante commitments to recapitalize a G-SIB in resolution
17
TLAC arising from non-regulatory capital instruments before adjustments
Non-regulatory capital elements of TLAC: adjustments
18
TLAC before deductions
19
Deductions of exposures between multiple-point-of-entry (MPE) resolution groups that correspond to items eligible for TLAC (not applicable to
SPE G-SIBs)
20
Deduction of investments in own other TLAC liabilities
1
21
Other adjustments to TLAC
22
TLAC after deductions
Risk-weighted assets and leverage exposure measure for TLAC purposes
23
Total risk-weighted assets adjusted as permitted under the TLAC regime
24
Leverage exposure measure
TLAC ratios and buffers
25
TLAC (as a percentage of risk-weighted assets adjusted as permitted under the TLAC regime)
26
TLAC (as a percentage of leverage exposure)
27
CET1 (as a percentage of risk-weighted assets) available after meeting the resolution group’s minimum capital and TLAC requirements
28
Institution-specific buffer requirement (capital conservation buffer plus countercyclical buffer requirements plus higher loss absorbency
requirement, expressed as a percentage of risk-weighted assets)
29
of which: capital conservation buffer requirement
30
of which: bank-specific countercyclical buffer requirement
31
of which: higher loss absorbency requirement
1 Under IFRS Accounting Standards, debt issued and subsequently repurchased is treated as extinguished.
30 June 2025 Pillar 3 Report |
UBS Group | Total loss-absorbing capacity 43
Resolution entity – creditor ranking at legal entity level
Semi-annual |
The TLAC3 table below provides an overview of the creditor ranking structure of the resolution entity,
UBS Group AG, on a standalone basis.
UBS Group AG issues loss-absorbing AT1 capital instruments and TLAC-eligible senior unsecured debt.
UBS Group AG grants Deferred Contingent Capital Plan awards to UBS Group employees, which qualify as Basel III AT1
capital on a UBS Group consolidated basis and totaled USD 2,405m as of 30 June 2025 (31 December 2024:
USD 2,044m). The related liabilities of UBS Group AG on a standalone basis of USD 1,589m (31 December 2024:
USD 1,519m) are not included in the table below, as these do not give rise to any current claims until the awards are
legally vested.
As of 30 June 2025, the TLAC available on a UBS Group AG consolidated basis amounted to USD 191,171m
(31 December 2024: USD 185,395m).
›
Refer to “Holding company and significant regulated subsidiaries and sub-groups” at
ubs.com/investors
about UBS Group AG standalone for the six-month period ended 30 June 2025
›
Refer to “Bondholder information” at
ubs.com/investors
›
Refer to the “TLAC1: TLAC composition for G-SIBs (at resolution group level)” table in this section for more information about
TLAC for UBS Group AG consolidated
TLAC3: Creditor ranking at legal entity level for the resolution entity, UBS Group AG
As of 30.6.25
Creditor ranking
Total
USD m
1
2
3
1
Description of creditor ranking
Common shares
(most junior)
1
Additional Tier 1
Bail-in debt and
pari passu
liabilities
(most senior)
2
Total capital and liabilities net of credit risk mitigation
2
3
Subset of row 2 that are excluded liabilities
4
Total capital and liabilities less excluded liabilities (row 2 minus row 3)
3,4,5
6,7
5
Subset of row 4 that are potentially eligible as TLAC
5
8
6
Subset of row 5 with 1 year ≤ residual maturity < 2 years
9
7
Subset of row 5 with 2 years ≤ residual maturity < 5 years
8
Subset of row 5 with 5 years ≤ residual maturity < 10 years
9
Subset of row 5 with residual maturity ≥ 10 years, but excluding perpetual securities
10
Subset of row 5 that is perpetual securities
1 Common shares including the associated reserves are equal to the equity of UBS Group AG standalone attributable to shareholders. 2 No credit risk mitigation is applied to capital and liabilities for UBS Group AG
standalone. 3 Includes interest expense accrued on AT1 capital instruments, which is not eligible as TLAC. 4 An AT1 instrument in the amount of USD 1.3bn was redeemed and AT1 instruments in a total amount
of USD 3bn were issued during the six months ended 30 June 2025. 5 Includes an AT1 instrument in the amount of USD 1.6bn, the call of which was announced on 2 July 2025 and executed on 7 August 2025.
6 Includes interest expense accrued on bail-in debt, interest-bearing liabilities that consist of loans from UBS AG and UBS Switzerland AG, negative replacement values, and tax and other liabilities that are not
excluded liabilities under Swiss law and that rank pari passu to bail-in debt. 7 Bail-in debt of USD 11.3bn was redeemed and bail-in debt of USD 7bn was issued during the six months ended 30 June 2025. 8 Bail-
in debt of USD 7.4bn has residual maturity of less than one year and is not potentially eligible as TLAC. 9 Includes bail-in debt in the amount of USD 1.5bn, the call of which was announced on 2 July 2025 and
executed on 15 July 2025.
30 June 2025 Pillar 3 Report |
UBS Group | Leverage ratio 44
Leverage ratio
Basel III leverage ratio
Quarterly |
table in section 2 of this report, is calculated by dividing the period-end tier 1 capital by the period-end leverage ratio
denominator (the LRD).
The LRD consists of on-balance sheet assets and off-balance sheet items based on IFRS Accounting Standards. Derivative
exposures are adjusted for a number of items, including replacement values and eligible cash variation margin netting,
potential future exposure and net notional amounts for written credit derivatives. The LRD also includes an additional
charge for counterparty credit risk related to securities financing transactions (SFTs).
On-balance sheet items (excluding derivatives and securities financing transactions (SFTs), but including collateral), as
disclosed in the LR2 table, differ from IFRS Accounting Standards total assets due to adjustments to the former for the
application of the regulatory scope of consolidation and due to the carrying amounts for derivative financial instruments
and SFTs, which are removed and replaced with exposures, as per the leverage ratio rules, in separate line items in the
LR2 table.
Difference between the Swiss systemically relevant bank and BCBS leverage ratio
The LRD is the same under Swiss systemically relevant bank (SRB) and BCBS rules. However, there is a difference in the
capital numerator between the two frameworks. Under BCBS rules only common equity tier 1 and additional tier 1 (AT1)
capital are included in the numerator. Under Swiss SRB rules UBS is required to meet going and gone concern leverage
ratio requirements. Therefore, depending on the requirement, the numerator includes tier 1 capital instruments, tier 2
capital instruments and / or total loss-absorbing capacity-eligible senior unsecured debt.
The difference between the total leverage ratio exposures of USD 1,658.1bn and total consolidated assets as per the
published financial statements of USD 1,670.0bn was USD 11.9bn, reflecting the sum of lines 2 to 12 in the following
table.
LR1: Summary comparison of accounting assets vs leverage ratio exposure measure
1
USD m
30.6.25
31.3.25
31.12.24
1
Total consolidated assets as per published financial statements
2
Adjustment for investments in banking, financial, insurance or commercial entities that are consolidated for accounting
purposes but outside the scope of regulatory consolidation
3
Adjustment for securitized exposures that meet the operational requirements for the recognition of risk transference
4
Adjustments for temporary exemption of central bank reserves (if applicable)
5
Adjustment for fiduciary assets recognized on the balance sheet pursuant to the operative accounting framework but excluded
from the leverage ratio exposure measure
6
Adjustments for regular-way purchases and sales of financial assets subject to trade date accounting
7
Adjustments for eligible cash pooling transactions
8
Adjustments for derivative financial instruments
9
Adjustment for securities financing transactions (i.e. repos and similar secured lending)
10
Adjustment for off-balance sheet items (i.e. conversion to credit equivalent amounts of off-balance sheet exposures)
11
Adjustments for prudent valuation adjustments and specific and general provisions which have reduced Tier 1 capital
2
12
Other adjustments
12a
of which: asset amounts deducted in determining Tier 1 capital
12b
of which: consolidated entities under the regulatory scope of consolidation
13
Leverage ratio exposure
1 The comparative-period information for 31.12.2024 has been amended to reflect the LR1 disclosure format effective from 1 January 2025 under the final Basel III standards. Refer to the 31 December 2024 Pillar 3
report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information about previously published LR1 disclosures . 2 Reflects the shortfall to expected losses on advanced internal ratings-based
portfolio less general provisions. Deduction items other than the IRB shortfall are disclosed in row 12a.
30 June 2025 Pillar 3 Report |
UBS Group | Leverage ratio 45
LR2: Leverage ratio common disclosure
1
USD m, except where indicated
30.6.25
31.3.25
31.12.24
On-balance sheet exposures
1
On-balance sheet items (excluding derivatives and securities financing transactions (SFTs), but including collateral)
2
Gross-up for derivatives collateral provided where deducted from balance sheet assets pursuant to the operative accounting
framework
3
(Deductions of receivable assets for cash variation margin provided in derivatives transactions)
4
(Adjustment for securities received under securities financing transactions that are recognised as an asset)
5
(Specific and general provisions associated with on-balance sheet exposures that are deducted from Tier 1 capital)
6
(Asset amounts deducted in determining Tier 1 capital)
7
Total on-balance sheet exposures (excluding derivatives and SFTs)
Derivative Exposures
8
Replacement cost associated with all derivatives transactions (where applicable net of eligible cash variation margin and/or
with bilateral netting)
9
Add-on amounts for potential future exposure associated with all derivatives transactions
10
(Exempted qualifying central counterparty (QCCP) leg of client-cleared trade exposures)
11
Adjusted effective notional amount of all written credit derivatives
2
12
(Adjusted effective notional offsets and add-on deductions for written credit derivatives)
3
13
Total derivative exposures
Securities financing transaction exposures
14
Gross SFT assets (with no recognition of netting), after adjusting for sale accounting transactions
15
(Netted amounts of cash payables and cash receivables of gross SFT assets)
16
Counterparty credit risk exposure for SFT assets
17
Agent transaction exposures
18
Total securities financing transaction exposures
Other off-balance sheet exposures
19
Off-balance sheet exposure at gross notional amount
20
(Adjustments for conversion to credit equivalent amounts)
21
(Specific and general provisions associated with off-balance sheet exposures deducted in determining Tier 1 capital)
22
Total off-balance sheet items
Capital and total exposures (leverage ratio denominator), phase-in
23
Tier 1 capital
24
Total exposures (leverage ratio denominator)
Leverage ratio
25
4
25a
Basel III leverage ratio (excluding the impact of any applicable temporary exemption of central bank reserves)
4
26
Leverage ratio minimum requirement
5
27
Leverage ratio buffers
5
Disclosure of mean values
28
Mean value of gross SFT assets, after adjustment for sale accounting transactions and netted of amounts of associated cash
payables and cash receivables
29
Quarter-end value of gross SFT assets, after adjustment for sale accounting transactions and netted of amounts of associated
cash payables and cash receivables
30
Total exposures (including the impact of any applicable temporary exemption of central bank reserves) incorporating mean
values from row 28 of gross SFT assets (after adjustment for sale accounting transactions and netted of amounts of associated
cash payables and cash receivables)
4
30a
Total exposures (excluding the impact of any applicable temporary exemption of central bank reserves) incorporating mean
values from row 28 of gross SFT assets (after adjustment for sale accounting transactions and netted of amounts of
associated cash payables and cash receivables)
4
31
Basel III leverage ratio (including the impact of any applicable temporary exemption of central bank reserves) incorporating
mean values from row 28 of gross SFT assets (after adjustment for sale accounting transactions and netted of amounts of
associated cash payables and cash receivables)
4
31a
Basel III leverage ratio (excluding the impact of any applicable temporary exemption of central bank reserves) incorporating
mean values from row 28 of gross SFT assets (after adjustment for sale accounting transactions and netted of amounts of
associated cash payables and cash receivables)
4
1 The comparative-period information for 31.12.2024 has been amended to reflect the LR2 disclosure format effective from 1 January 2025 under the final Basel III standards. Specifically, collateral for derivative
positions has been included in row 1 of the LR2 table and has been adjusted as applicable under leverage ratio rules in the subsequent rows. Refer to the 31 December 2024 Pillar 3 report, available under “Pillar 3
disclosures” at ubs.com/investors, for more information about previously published LR2 disclosures. 2 Includes protection sold, including agency transactions. 3 Protection sold can be offset with protection bought
on the same underlying reference entity, provided that the conditions according to the Basel III leverage ratio framework and disclosure requirements are met. 4 There is currently no temporary exemption of central
bank reserves for UBS. 5 The buffer is based on Swiss SRB requirements as per the Capital Adequacy Ordinance. These requirements are above BCBS requirements for G-SIBs.
LRD development during the second quarter of 2025
Quarterly |
During the second quarter of 2025, the LRD increased by USD 96.5bn to USD 1,658.1bn. The increase was
primarily driven by currency effects of USD 88.1bn and asset size and other movements of USD 8.4bn.
On-balance sheet exposures (excluding derivatives and securities financing transactions) increased by USD 80.8bn, mainly
due to currency effects of USD 74.0bn and asset size and other movements of USD 6.7bn. The asset size movement
mainly reflected increases in the high-quality liquid asset portfolio and lending balances in Global Wealth Management
and Personal & Corporate Banking, partly offset by a decrease in cash and balances at central banks in Group Treasury.
30 June 2025 Pillar 3 Report |
UBS Group | Leverage ratio 46
Derivative exposures increased by USD 7.0bn, mainly due to currency effects of USD 4.1bn and asset size and other
movements of USD 2.9bn. The asset size movement primarily reflect ed market-driven movements.
Securities financing transactions increased by USD 6.2bn, mainly due to currency effects of USD 6.4bn, partly offset by
asset size and other movements of USD 0.2bn.
Off-balance sheet items increased by USD 2.5bn, mainly due to currency effects of USD 3.6bn, partly offset by asset size
and other movements of USD 1.1bn. The asset size movement was mainly due to decreases in commitments.
›
Refer to “Leverage ratio denominator” in the “Risk, capital, liquidity and funding, and balance sheet” section of the UBS Group
second quarter 2025 report, available under “Quarterly reporting” at
ubs.com/investors
, for more information
Liquidity and funding
Liquidity coverage ratio
Quarterly |
We monitor the liquidity coverage ratio (the LCR) in all significant currencies in order to manage any currency
mismatch between high-quality liquid assets (HQLA) and the net expected cash outflows in times of stress.
Pillar 3 disclosure requirement
Second quarter 2025 report section
Disclosure
Second quarter 2025 report page number
Concentration of funding sources
Balance sheet and off-balance sheet
Liabilities, by product and currency
53
High-quality liquid assets
Quarterly |
HQLA must be easily and immediately convertible into cash at little or no loss of value, especially during a period
of stress. HQLA are assets that are of low risk and are unencumbered. Other characteristics of HQLA are ease and certainty
of valuation, low correlation with risky assets, listing of the assets on a developed and recognized exchange, existence of
an active and sizable market for the assets, and low volatility. Our HQLA predominantly consist of assets that qualify as
Level 1 in the LCR framework, including cash, central bank reserves and government bonds. In the second quarter of
2025, our HQLA increased by USD 40.0bn to USD 358.8bn, mainly reflecting higher cash available due to a decrease in
funding for trading assets and higher customer deposits, partly offset by lower cash available due to higher lending
assets.
High-quality liquid assets (HQLA)
Average 2Q25
1
Average 1Q25
1
USD m
Level 1
weighted
liquidity
value
2
Level 2
weighted
liquidity
value
2
Total
weighted
liquidity
value
2
Level 1
weighted
liquidity
value
2
Level 2
weighted
liquidity
value
2
Total
weighted
liquidity
value
2
Cash balances
3
256,189
256,189
225,450
225,450
Securities (on- and off-balance sheet)
76,108
26,462
102,570
69,353
23,932
93,285
Total HQLA
4
332,297
26,462
358,759
294,803
23,932
318,735
1 Calculated based on an average of 61 data points in the second quarter of 2025 and 62 data points in the first quarter of 2025. 2 Calculated after the application of haircuts and, where applicable, caps on Level 2
assets. 3 Includes cash and balances with central banks and other eligible balances as prescribed by FINMA. 4 Calculated in accordance with FINMA requirements.
30 June 2025 Pillar 3 Report |
UBS Group | Liquidity and funding 47
Liquidity coverage ratio development during the second quarter of 2025
Quarterly |
The quarterly average LCR of the UBS Group increased 1.3 percentage points to 182.3%, remaining above the
prudential requirement communicated by the Swiss Financial Market Supervisory Authority (FINMA ).
The movement in the quarterly average LCR was primarily driven by an increase in HQLA of USD 40.0bn to USD 358.8bn,
mainly reflecting higher cash available due to a decrease in funding for trading assets and higher customer deposits,
partly offset by lower cash available due to higher lending assets. The average net cash outflows increased by USD 20.7bn
to USD 196.8bn, reflecting higher outflows from deposits, lower net inflows from securities financing transactions and
higher net outflows from derivatives.
LIQ1: Liquidity coverage ratio (LCR)
Average 2Q25
1
Average 1Q25
1
USD m
Unweighted
value
Weighted
value
2
Unweighted
value
Weighted
value
2
High-quality liquid assets (HQLA)
1
Total HQLA
363,824
358,759
323,281
318,735
Cash outflows
2
Retail deposits and deposits from small business customers
378,633
43,920
350,479
40,449
3
of which: stable deposits
31,060
1,123
30,931
1,102
4
of which: less stable deposits
347,573
42,797
319,549
39,346
5
Unsecured wholesale funding
298,735
151,438
283,697
145,073
6
of which: operational deposits (all counterparties)
67,788
16,947
61,879
15,406
7
of which: non-operational deposits (all counterparties)
215,995
119,540
205,881
113,731
8
of which: unsecured debt
14,952
14,952
15,937
15,937
9
Secured wholesale funding
95,185
88,492
10
Additional requirements:
173,923
51,456
166,291
46,723
11
of which: outflows related to derivatives and other transactions
89,777
30,989
81,688
26,600
12
of which: outflows related to loss of funding on debt products
3
535
535
189
189
13
of which: committed credit and liquidity facilities
83,610
19,932
84,413
19,934
14
Other contractual funding obligations
32,429
30,004
29,370
27,495
15
Other contingent funding obligations
341,262
13,102
336,195
13,781
16
Total cash outflows
385,105
362,013
Cash inflows
17
Secured lending
313,077
116,535
294,064
114,857
18
Inflows from fully performing exposures
79,422
35,964
78,101
35,815
19
Other cash inflows
35,760
35,760
35,151
35,151
20
Total cash inflows
428,260
188,259
407,316
185,823
Average 2Q25
1
Average 1Q25
1
USD m, except where indicated
Total adjusted
value
4
Total adjusted
value
4
Liquidity coverage ratio (LCR)
21
Total HQLA
358,759
318,735
22
Net cash outflows
196,846
176,190
23
LCR (%)
1 Calculated based on an average of 61 data points in the second quarter of 2025 and 62 data points in the first quarter of 2025. 2 Calculated after the application of haircuts and inflow and outflow rates.
3 Includes outflows related to loss of funding on asset-backed securities, covered bonds, other structured financing instruments, asset-backed commercial papers, structured entities (conduits), securities investment
vehicles and other such financing facilities. 4 Calculated after the application of haircuts and inflow and outflow rates, as well as, where applicable, caps on Level 2 assets and cash inflows.
30 June 2025 Pillar 3 Report |
UBS Group | Liquidity and funding 48
Net stable funding ratio
Net stable funding ratio development during the second quarter of 2025
Semi-annual |
remaining above the prudential requirement communicated by FINMA.
Available stable funding increased by USD 43.0bn to USD 904.7bn, mainly driven by increases in both customer deposits
and debt issued measured at amortized cost, largely driven by currency effects, as well as higher regulatory capital.
Required stable funding increased by USD 45.1bn to USD 738.9bn, primarily reflecting an increase in lending assets,
which was also largely due to currency effects.
LIQ2: Net stable funding ratio (NSFR)
30.6.25
31.3.25
Unweighted value by residual maturity
Unweighted value by residual maturity
USD m, except where indicated
No Maturity
< 6 months
6 months to
< 1 year
≥ 1 year
Weighted
Value
No Maturity
< 6 months
6 months to
< 1 year
≥ 1 year
Weighted
Value
Available stable funding (ASF) item
1
Capital:
85,712
16,209
101,921
81,071
16,660
97,731
2
Regulatory Capital
85,712
16,013
101,725
81,071
16,455
97,526
3
Other Capital Instruments
196
196
205
205
4
Retail deposits and deposits from small business
customers:
409,360
6,972
18,381
394,663
390,706
7,716
16,785
376,928
5
Stable deposits
31,609
43
9
30,078
31,187
60
11
29,696
6
Less stable deposits
377,751
6,930
18,373
364,585
359,519
7,656
16,774
347,231
7
Wholesale Funding:
524,394
67,090
217,845
402,391
484,352
55,910
216,873
380,171
8
Operational Deposits
74,537
37,270
65,782
32,893
9
Other wholesale funding
449,857
67,090
217,845
365,122
418,570
55,910
216,873
347,278
10
Liabilities with matching interdependent assets
6,935
5,884
11
Other liabilities:
54,616
148,394
6,074
5,728
46,899
144,397
1
3,888
6,887
12
NSFR derivative liabilities
2,936
1
13
All other liabilities and equity not included in the
above categories
54,616
148,394
3,138
5,728
46,899
144,397
1
3,888
6,887
14
Total ASF
904,703
861,717
Required stable funding (RSF) item
15
Total NSFR high-quality liquid assets (HQLA)
39,043
41,958
16
Deposits held at other financial institutions for
operational purposes
15,585
7,999
15,978
8,212
17
Performing loans and securities:
54,045
292,720
68,250
501,056
571,424
47,747
277,811
58,280
461,464
525,696
18
Performing loans to financial institutions secured by
Level 1 HQLA or Level 2a HQLA
44,991
1,159
8
9,204
51,752
3,112
329
11,797
19
Performing loans to financial institutions secured by
Level 2b HQLA or non-HQLA and unsecured
performing loans to financial institutions
87,675
11,171
38,811
61,152
83,975
5,927
39,001
57,728
20
Performing loans to non-financial corporate clients,
loans to retail and small business customers, and
loans to sovereigns, central banks and PSEs, of which:
976
132,844
30,860
146,618
188,713
875
117,876
24,947
139,848
177,580
21
With a risk weight of less than or equal to 35%
under Basel II standardized approach for credit risk
976
53,764
8,442
1,902
14,865
875
44,188
5,227
2,725
14,225
22
Performing residential mortgages, of which:
22,706
21,857
289,059
240,608
20,613
20,562
260,235
216,187
23
With a risk weight of less than or equal to 35%
under Basel II standardized approach for credit risk
19,170
19,268
242,807
197,159
17,455
18,331
218,323
177,011
24
Securities that are not in default and do not qualify as
HQLA, including exchange-traded equities
53,069
4,504
3,203
26,560
71,748
46,871
3,595
3,732
22,051
62,404
25
Assets with matching interdependent liabilities
6,935
5,884
26
Other assets:
46,741
67,022
716
129,149
114,928
44,270
71,598
296
121,713
112,599
27
Physical traded commodities, including gold
2,536
2,156
1,641
1,394
28
Assets posted as initial margin for derivative contracts
and contributions to default funds of CCPs
41,053
1
34,895
38,911
1
33,074
29
NSFR derivative assets
3,570
1
3,570
30
NSFR derivative liabilities before deduction of variation
margin posted
75,192
1
15,038
65,688
1
13,138
31
All other assets not included in the above categories
44,205
67,022
716
12,904
62,839
42,630
71,598
296
13,544
61,422
32
Off-balance sheet items
43,244
10,457
66,973
5,497
46,032
8,611
61,693
5,312
33
Total RSF
738,891
693,777
34
Net stable funding ratio (%)
1 The ≥ 1 year maturity bucket includes balances for which differentiation by maturity is not required.
30 June 2025 Pillar 3 Report |
UBS Group | Liquidity and funding 49
Asset encumbrance
Semi-annual |
final Basel III standards. The ENC table provides a breakdown of on- and off-balance sheet assets between encumbered
assets, central bank facilities and unencumbered assets.
Excluding assets positioned at central banks, assets are presented as encumbered if they have been pledged as collateral
against an existing liability or are otherwise not available for securing additional funding. Assets pledged as collateral
mainly include assets pledged for securities financing transactions, derivative transactions or financial guarantees, and
mortgage loans, which serve as collateral against loans from Swiss mortgage institutions and US Federal Home Loan
Banks or issued covered bonds. Assets otherwise not available for securing additional funding mainly include assets
protected under client asset segregation rules and assets held in certain jurisdictions to comply with explicit minimum
local asset maintenance requirements.
Central bank facilities represent assets in use or remain available to secure transactions in a central bank facility. These
assets are positioned as collateral with central banks and mainly secure undrawn credit lines for payment, clearing and
settlement purposes, as well as undrawn contingency funding facilities.
All other assets are presented as unencumbered. This category consists of cash and securities readily realizable in the
normal course of business, which include our HQLA and unencumbered positions in our trading portfolio, and other
realizable assets that are not intended for obtaining secured funding in the normal course of business, but may be
considered potential sources of liquidity to meet medium or longer-term funding needs, such as loans and advances to
customers and banks, as well as certain non-financial assets. Unencumbered assets that are considered to be available to
secure funding at the legal-entity level may be subject to restrictions that limit the total amount of assets available to the
Group as a whole. Assets that cannot be pledged as collateral represent assets that by their nature are not considered
available to secure funding or meet collateral needs.
›
Refer to the “CC2: Reconciliation of accounting balance sheet to balance sheet under the regulatory scope of consolidation” table
in the “Going and gone concern requirements and eligible capital” section of this report for more information about the
reconciliation of the balance sheet under IFRS Accounting Standards to the balance sheet according to the regulatory scope of
consolidation
ENC: Asset encumbrance
USD m
Encumbered assets excluding central bank
facilities
Central bank
facilities
Unencumbered assets
Total Group
of which
assets
pledged
as collateral
of which
assets
otherwise
restricted and
not available
to secure
funding
Total
encumbered
assets
of which
unencumbered
assets
of which
assets that
cannot be
pledged as
collateral
Total
unencumbered
assets
30.6.25
Balance sheet
Cash and balances at central banks
Amounts due from banks
Receivables from securities financing transactions measured
at amortized cost
Cash collateral receivables on derivative instruments
Loans and advances to customers
Other financial assets measured at amortized cost
Total financial assets measured at amortized cost
Financial assets at fair value held for trading
Derivative financial instruments
Brokerage receivables
Financial assets at fair value not held for trading
Total financial assets measured at fair value through
profit or loss
Financial assets measured at fair value through other
comprehensive income
Non-financial assets
Total balance sheet assets
Off-balance sheet
Fair value of securities accepted as collateral
1 Assets pledged to the depositor protection system in Switzerland. 2 Includes cash placed at central banks to meet local statutory minimum reserve requirements (30 June 2025: USD 13.4bn). 3 Mortgage loans
that serve as collateral against outstanding loans from Swiss mortgage institutions, US Federal Home Loan Banks and issued covered bonds. 4 Includes assets pledged as collateral that may be sold or repledged by
counterparties. 5 Mainly includes cash collateral provided to exchanges and clearing houses to secure securities trad ing activity through those counterparties. 6 Includes high-quality liquid assets (30 June 2025:
USD 359.8bn).
30 June 2025 Pillar 3 Report |
UBS Group | Requirements for global systemically important banks and related indicators 50
Requirements for global systemically important banks
and related indicators
GSIB1: Disclosure of G-SIB indicators
Semi-annual |
The Financial Stability Board (the FSB) has determined that UBS is a global systemically important bank (a G-SIB),
using an indicator-based methodology adopted by the Basel Committee on Banking Supervision (the BCBS). Banks that
qualify as G-SIBs are required to disclose 13 high-level indicators annually for assessing the systemic importance of G-SIBs
as defined by the BCBS. These indicators are used for the G-SIB score calculation and cover five categories: size, cross-
jurisdictional activity, interconnectedness, substitutability / financial institution infrastructure, and complexity.
In November 2024, the FSB, in consultation with the BCBS and national authorities, published the 2024 list of G-SIBs.
Based on the published indicators, G-SIBs are subject to additional common equity tier 1 (CET1) capital buffer
requirements in a range from 1.0% to 3.5%. In November 2024, the FSB confirmed that, based on the 31 December
2023 indicators, the additional CET1 capital buffer requirement for the UBS Group will remain at 1.5%. As our Swiss
systemically relevant bank (SRB) Basel III capital requirements remain above the BCBS requirements, including the
increased G-SIB buffer, we are not affected by these additional G-SIB requirements.
The BCBS introduced a leverage ratio buffer for G-SIBs as a part of the finalization of the Basel III framework announced
in December 2017. The leverage ratio buffer is set at 50% of risk-weighted higher-loss absorbency requirements.
Implementation of the final Basel III framework in Switzerland entered into force on 1 January 2025. As our Swiss SRB
requirements remain above the BCBS requirements, these changes did not increase our requirements.
Our G-SIB indicators as of 31 December 2024 were published in July 2025 under “Pillar 3 disclosures” at
ubs.com/investors
.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | Introduction 51
Significant regulated subsidiaries
and sub-groups
Introduction
Scope of disclosures in this section
The sections below include capital and other regulatory information as of 30 June 2025 for UBS AG consolidated, UBS AG
standalone, UBS Switzerland AG standalone, UBS Europe SE consolidated, UBS Americas Holding LLC consolidated and
Credit Suisse International standalone. Capital information in the following sections is based on Pillar 1 capital
requirements. Entities may be subject to significant additional Pillar 2 requirements, which represent additional amounts
of capital considered necessary and are agreed with regulators based on the risk profile of the respective entity.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG consolidated 52
UBS AG consolidated
Key metrics for the second quarter of 2025
Quarterly |
Obligations of Banks and Securities Firms (DisO-FINMA) rules and IFRS Accounting Standards.
During the second quarter of 2025, tier 1 capital decreased by USD 0.6bn to USD 88.5bn. Common equity tier 1 (CET1)
capital decreased by USD 0.9bn to USD 69.8bn, mainly as operating profit before tax of USD 0.9bn and foreign currency
translation gains of USD 2.5bn were more than offset by dividend accruals of USD 3.5bn and current tax expenses of
USD 0.3bn. Additional tier 1 (AT1) capital issued by the Group and on lent to UBS AG increased by USD 0.3bn to
USD 18.7bn, reflecting positive impacts from interest rate risk hedge, foreign currency translation and other effects.
During the second quarter of 2025, risk-weighted assets (RWA) increased by USD 16.8bn to USD 498.3bn, driven by an
USD 18.7bn increase in currency effects, partly offset by a USD 1.5bn decrease resulting from asset size and other
movements and a USD 0.3bn decrease resulting from model updates and methodology changes.
During the second quarter of 2025, the leverage ratio denominator (the LRD) increased by USD 94.3bn to USD 1,660.1bn,
predominantly due to USD 88.4bn from currency effects and USD 5.8bn resulting from asset size and other movements.
The asset size movement was mainly driven by increases in the high-quality liquid asset (HQLA) portfolio, lending balances
in Global Wealth Management and Personal & Corporate Banking and higher derivative exposures, partly offset by a
decrease in cash and balances at central banks in Group Treasury.
Correspondingly, the CET1 capital ratio of UBS AG consolidated decreased to 14.0% from 14.7%, reflecting the increase
in RWA and the decrease in CET1 capital. The Basel III leverage ratio decreased to 5.3% from 5.7%, reflecting the increase
in the LRD and the lower tier 1 capital.
The quarterly average liquidity coverage ratio (the LCR) of UBS AG consolidated decreased 0.8 percentage points to
179.4%, remaining above the prudential requirement communicated by FINMA. The movement in the quarterly average
LCR was primarily driven by an increase in HQLA of USD 40.0bn to USD 358.9bn, mainly reflecting higher cash available
from lower funding for trading assets and higher customer deposits, partly offset by lower cash available from higher
lending assets. The average net cash outflows increased by USD 23.2bn to USD 200.1bn, reflecting higher outflows from
deposits, lower net inflows from securities financing transactions and higher outflows from derivatives.
As of 30 June 2025, the net stable funding ratio of UBS AG consolidated decreased 1.9 percentage points to 120.9%,
remaining above the prudential requirement communicated by FINMA. Available stable funding increased by USD 38.6bn
to USD 892.4bn, mainly driven by increases in both customer deposits and debt issued measured at amortized cost,
largely driven by currency effects, as well as higher regulatory capital . Required stable funding increased by USD 42.9bn
to USD 738.1bn, primarily reflecting higher lending assets, which were also largely due to currency effects.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG consolidated 53
KM1: Key metrics
USD m, except where indicated
30.6.25
31.3.25
31.12.24
30.9.24
30.6.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4a
Total risk-weighted assets (pre-floor)
4b
Minimum capital requirement
1
Risk-based capital ratios as a percentage of RWA
5
Common equity tier 1 ratio (%)
5b
Common equity tier 1 ratio (%) (pre-floor)
6
Tier 1 ratio (%)
6b
Tier 1 ratio (%) (pre-floor)
7
Total capital ratio (%)
7b
Total capital ratio (%) (pre-floor)
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
9a
Additional countercyclical buffer for Swiss mortgage loans (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
2
11
Total of bank CET1 specific buffer requirements (%)
3
12
CET1 available after meeting the bank’s minimum capital requirements (%)
4
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
5
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
14c
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
5
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
14e
Minimum capital requirements
6
Liquidity coverage ratio (LCR)
7
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
16a
of which: cash outflows
16b
of which: cash inflows
17
LCR (%)
179.45
180.28
186.08
196.34
194.12
Net stable funding ratio (NSFR)
18
Total available stable funding
892,381
853,742
847,008
903,402
882,760
19
Total required stable funding
738,056
695,201
682,504
712,729
691,477
20
NSFR (%)
120.91
122.81
124.10
126.75
127.66
1 Calculated as 8% of total RWA, based on total capital minimum requirements, excluding CET1 buffer requirements. 2 Swiss SRB going and gone concern requirements and information for UBS AG consolidated
are provided below in this section. 3 Excludes non-BCBS capital buffer requirements for risk-weighted positions that are directly or indirectly backed by residential properties in Switzerland. 4 Represents the CET1
ratio that is available to meet buffer requirements. Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and, where applicable, minus the BCBS tier 2 capital requirement met with CET1 capital.
5 There is currently no temporary exemption of central bank reserves for UBS. 6 The higher of capital requirements based on 8% RWA or 3% LRD. 7 Calculated after the application of haircuts and inflow and
outflow rates, as well as, where applicable, caps on Level 2 assets and cash inflows. Calculated based on an average of 61 data points in the second quarter of 2025 and 62 data points in the first quarter of 2025.
For the prior-quarter data points, refer to the respective Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG consolidated 54
Swiss systemically relevant bank going and gone concern requirements and information
Quarterly |
The tables below provide details of the Swiss systemically relevant bank RWA- and LRD-based going and gone
concern requirements and information as required by FINMA ; details regarding eligible gone concern instruments are
also provided below.
Effective 1 January 2025, a Pillar 2 capital add-on for uncollateralized exposures to hedge funds, private equity and family
offices has been introduced. This resulted in an increase of 18 basis points in the RWA-based going concern capital
requirement as of 30 June 2025.
UBS AG’s outstanding non-Basel III-compliant tier 2 capital instruments and total loss-absorbing capacity-eligible
unsecured debt instruments are eligible to meet gone concern requirements until one year before maturity.
More information about the going and gone concern requirements and information is provided in the “Total loss-
absorbing capacity” section of the UBS AG Annual Report 2024, available under “Annual reporting” at
ubs.com/investors.
Swiss SRB going and gone concern requirements and information
As of 30.6.25
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
of which: base requirement including add-ons for market share and LRD
7
7
Eligible gone concern capital
Total gone concern loss-absorbing capacity
Total tier 2 capital
of which: non-Basel III-compliant tier 2 capital
TLAC-eligible 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 1.66% for risk-weighted assets (RWA) and 0.51% for leverage ratio denominator (LRD), of which 4 basis points for RWA and 1 basis points for LRD reflect a Pillar 2 capital add-on of
USD 193m related to the supply chain finance funds matter at Credit Suisse. An additional 18 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 0.12% for CET1
capital and 0.05% 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; 4.35% includes the
aforementioned Pillar 2 capital add-on. 3 Our CET1 leverage ratio requirement of 3.51% consists of a 1.5% base requirement, a 1.5% base buffer capital requirement, a 0.25% LRD add-on requirement, a 0.25%
market share add-on requirement based on our Swiss credit business and a 0.01% Pillar 2 capital add-on related to the supply chain finance funds matter at Credit Suisse. 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 From 1 January 2023,
the resolvability discount on the gone concern capital requirements for systemically important banks (SIBs) has been replaced with reduced base gone concern capital requirements equivalent to 75% of the total going
concern requirements (excluding countercyclical buffer requirements and the Pillar 2 add-ons). 6 As of July 2024, 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-ons) 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.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG consolidated 55
Swiss SRB going and gone concern information
USD m, except where indicated
30.6.25
31.3.25
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
of which: non-Basel III-compliant tier 2 capital
TLAC-eligible 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
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG standalone 56
UBS AG standalone
Key metrics for the second quarter of 2025
Quarterly |
The table below is based on the Swiss Financial Market Supervisory Authority (FINMA) Ordinance on the Disclosure
Obligations of Banks and Securities Firms (DisO-FINMA) rules and IFRS Accounting Standards.
During the second quarter of 2025, tier 1 capital increased by USD 2.5bn to USD 91.8bn. Common equity tier 1 (CET1)
capital increased by USD 2.2bn to USD 73.2bn, mainly reflecting operating profit before tax of USD 5.7bn, partly offset
by additional accruals for capital returns to UBS Group AG of USD 3.5bn. Additional tier 1 (AT1) capital issued by the
Group and on lent to UBS AG increased by USD 0.3bn to USD 18.7bn, mainly reflecting positive impacts from interest
rate risk hedge, foreign currency translation and other effects .
Phase-in risk-weighted assets (RWA) increased by USD 1.6bn to USD 516.5bn during the second quarter of 2025. The
second quarter included an increase of USD 13.6bn from currency effects, which was partly offset by asset size and other
movements, mainly related to RWA on investments in subsidiaries, credit and counterparty credit risk RWA, and market
risk RWA.
During the second quarter of 2025, the leverage ratio denominator (the LRD) increased by USD 28.5bn to USD 964.0bn,
predominantly due to an increase of USD 31.7bn from currency effects, partly offset by a decrease of USD 3.2bn resulting
from asset size and other movements. The asset size movement was mainly driven by lower cash and balances at central
banks and trading assets, partly offset by increases in high-quality liquid asset (HQLA) portfolio securities, lending balances
and securities financing transaction exposures.
Correspondingly, the phase-in CET1 capital ratio of UBS AG standalone increased to 14.2% from 13.8%, reflecting the
increase in CET1 capital, partly offset by the aforementioned increase in phase-in RWA . The Basel III leverage ratio was
stable at 9.5%, as the aforementioned increase in the LRD was offset by the increase in tier 1 capital.
The quarterly average liquidity coverage ratio (the LCR) of UBS AG standalone increased 6.3 percentage points to
235.5%, remaining above the prudential requirement communicated by FINMA. The movement in the quarterly average
LCR was primarily driven by an increase in HQLA of USD 26.9bn to USD 177.4bn, mainly reflecting higher cash available
from lower funding for trading assets, partly offset by lower cash available from higher funding to subsidiaries and
securities financing transactions. The average net cash outflows increased by USD 9.8bn to USD 75.7bn, reflecting higher
net outflows from derivatives and lower net inflows from securities financing transactions and funding provided to
subsidiaries, partly offset by lower outflows from undrawn loan commitments.
As of 30 June 2025, the net stable funding ratio decreased 1.3 percentage points to 96.7%, remaining above the
prudential requirement communicated by FINMA. Available stable funding increased by USD 10.8bn to USD 421 .3bn,
predominantly driven by higher customer deposits, largely driven by currency effects, and higher regulatory capital.
Required stable funding increased by USD 16.9bn to USD 435.5bn, mainly reflecting higher intercompany funding
provided to subsidiaries and an increase in trading assets.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG standalone 57
KM1: Key metrics
USD m, except where indicated
30.6.25
31.3.25
31.12.24
30.9.24
30.6.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
1
4
Total risk-weighted assets (RWA)
4a
Total risk-weighted assets (pre-floor)
4b
Minimum capital requirement
2
Risk-based capital ratios as a percentage of RWA
1
5
Common equity tier 1 ratio (%)
5b
Common equity tier 1 ratio (%) (pre-floor)
6
Tier 1 ratio (%)
6b
Tier 1 ratio (%) (pre-floor)
7
Total capital ratio (%)
7b
Total capital ratio (%) (pre-floor)
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
9a
Additional countercyclical buffer for Swiss mortgage loans (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
3
11
Total of bank CET1 specific buffer requirements (%)
4
12
CET1 available after meeting the bank’s minimum capital requirements (%)
5
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
6
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
14c
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
6
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
14e
Minimum capital requirements
7
Liquidity coverage ratio (LCR)
8
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
16a
of which: cash outflows
16b
of which: cash inflows
17
LCR (%)
235.52
Net stable funding ratio (NSFR)
9
18
Total available stable funding
421,323
410,507
410,197
446,435
448,005
19
Total required stable funding
435,547
418,661
421,792
444,875
437,275
20
NSFR (%)
96.73
98.05
97.25
100.35
102.45
1 Based on phase-in rules for RWA. Refer to “Swiss systemically relevant bank going and gone concern requirements and information” below for more information. 2 Calculated as 8% of total RWA, based on total
capital minimum requirements, excluding CET1 buffer requirements. 3 Swiss SRB going and gone concern requirements and information for UBS AG standalone are provided below in this section. 4 Excludes non-
BCBS capital buffer requirements for risk-weighted positions that are directly or indirectly backed by residential properties in Switzerland. 5 Represents the CET1 ratio that is available to meet buffer requirements.
Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and, where applicable, minus the BCBS tier 2 capital requirement met with CET1 capital. 6 There is currently no temporary exemption of
central bank reserves for UBS. 7 The higher of capital requirements based on 8% RWA or 3% LRD. 8 Calculated after the application of haircuts and inflow and outflow rates, as well as, where applicable, caps
on Level 2 assets and cash inflows. Calculated based on an average of 61 data points in the second quarter of 2025 and 62 data points in the first quarter of 2025. For the prior-quarter data points, refer to the
respective Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information. 9 In accordance with Art. 17h para. 3 and 4 of the Liquidity Ordinance, UBS AG standalone is required to
maintain a minimum NSFR of at least 80% without taking into account excess funding of UBS Switzerland AG and 100% after taking into account such excess funding.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG standalone 58
Swiss systemically relevant bank going and gone concern requirements and information
Quarterly |
The tables below provide details of the Swiss systemically relevant bank RWA- and LRD-based going and gone
concern requirements and information as required by FINMA; details regarding eligible gone concern instruments are
also provided below.
UBS AG standalone is subject to a gone concern capital requirement based on the sum of: (i) the nominal value of the
gone concern instruments issued by UBS entities and held by the parent firm; (ii) 75% of the capital requirements resulting
from third-party exposure on a standalone basis; and (iii) a buffer requirement equal to 30% of the Group’s gone concern
capital requirement on UBS AG’s consolidated exposure. The gone concern capital requirement is the higher of the RWA-
and LRD-based requirements, calculated separately. The gone concern capital coverage ratio reflects how much gone
concern capital is available to meet the gone concern requirement. UBS AG’s outstanding non-Basel III-compliant tier 2
capital instruments and total loss-absorbing capacity-eligible unsecured debt instruments are eligible to meet gone
concern requirements until one year before maturity.
Effective 1 January 2025, a Pillar 2 capital add-on for uncollateralized exposures to hedge funds, private equity and family
offices has been introduced. This resulted in an increase as of 30 June 2025 of 16 basis points in the RWA phase-in-based
going concern capital requirement and 15 basis points in the RWA fully applied-based going concern capital requirement.
More information about the going and gone concern requirements is provided in the “UBS AG Standalone” section of
the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors.
Swiss SRB going and gone concern requirements and information
As of 30.6.25
RWA, phase-in
RWA, fully applied as of 1.1.28
1
LRD
USD m, except where indicated
in %
in %
in %
Required going concern capital
Total going concern capital
2
2
2
Common equity tier 1 capital
3
3
of which: minimum capital
of which: buffer capital
of which: countercyclical buffer
Maximum additional tier 1 capital
3
3
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
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
Required gone concern capital
4
Higher of RWA- or LRD-based
Total gone concern loss-absorbing capacity
Eligible gone concern capital
Total gone concern loss-absorbing capacity
Gone concern capital coverage ratio
1 Fully applied relates to participation RWA. Direct and indirect investments including holding of regulatory capital instruments in Switzerland-domiciled subsidiaries and for direct and indirect investments including
holding of regulatory capital instruments in foreign-domiciled subsidiaries are risk-weighted at 235% and 340%, respectively, for the current year. As per current rules, risk weights will gradually increase by
5 percentage points per year for Switzerland-domiciled investments and 20 percentage points per year for foreign-domiciled investments until the fully applied risk weights of 250% and 400%, respectively, are
applied. 2 Includes applicable add-ons of 1.63% for risk-weighted assets (RWA, phase-in), 1.62% for risk-weighted assets (RWA, fully applied) and 0.52% for leverage ratio denominator (LRD), of which 4 basis
points for RWA phase-in, 3 basis points for RWA fully applied and 2 basis points for LRD reflect a Pillar 2 capital add-on of USD 193m related to the supply chain finance funds matter at Credit Suisse. An additional
16 basis points for RWA phase-in and 15 basis points for RWA fully applied 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. 3 Includes the Pillar 2 add-on for the residual exposure (after collateral mitigation) to hedge funds, private equity and family offices of 0.11% for CET1 capital and 0.05% for AT1 capital
for RWA phase-in and 0.10% for CET1 capital and 0.04% for AT1 capital for RWA fully applied, 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; 4.35% for RWA phase-in and 4.34% for RWA fully applied include the aforementioned Pillar 2 capital add-on. 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.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG standalone 59
Swiss SRB going and gone concern information
USD m, except where indicated
30.6.25
31.3.25
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
of which: non-Basel III-compliant tier 2 capital
TLAC-eligible unsecured debt
Total loss-absorbing capacity
Total loss-absorbing capacity
Denominators for going and gone concern ratios
Risk-weighted assets, phase-in
of which: investments in Switzerland-domiciled subsidiaries
1
of which: investments in foreign-domiciled subsidiaries
1
Risk-weighted assets, fully applied as of 1.1.28
of which: investments in Switzerland-domiciled subsidiaries
1
of which: investments in foreign-domiciled subsidiaries
1
Leverage ratio denominator
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio, phase-in
of which: common equity tier 1 capital ratio, phase-in
Going concern capital ratio, fully applied as of 1.1.28
of which: common equity tier 1 capital ratio, fully applied as of 1.1.28
Leverage ratios (%)
Going concern leverage ratio
of which: common equity tier 1 leverage ratio
Capital coverage ratio (%)
Gone concern capital coverage ratio
1 Fully applied relates to participation RWA. Direct and indirect investments including holding of regulatory capital instruments in Switzerland-domiciled subsidiaries and for direct and indirect investments including
holding of regulatory capital instruments in foreign-domiciled subsidiaries are risk-weighted at 235% and 340%, respectively, for the current year. As per current rules, risk weights will gradually increase by
5 percentage points per year for Switzerland-domiciled investments and 20 percentage points per year for foreign-domiciled investments until the fully applied risk weights of 250% and 400%, respectively, are
applied.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Switzerland AG standalone 60
UBS Switzerland AG standalone
Key metrics for the second quarter of 2025
Quarterly |
The table below is based on the Swiss Financial Market Supervisory Authority (FINMA) Ordinance on the Disclosure
Obligations of Banks and Securities Firms (DisO-FINMA) rules and IFRS Accounting Standards.
During the second quarter of 2025, common equity tier 1 capital decreased by CHF 0.1bn to CHF 21.5bn, mainly driven
by additional dividend accruals almost entirely offset by operating profit.
Total risk-weighted assets (RWA) decreased by CHF 5.9bn to CHF 168.7bn, mainly due to lower credit risk RWA.
The leverage ratio denominator (the LRD) decreased by CHF 2.0bn to CHF 549.7bn, mainly due to a decrease in securities
financing transaction exposures, partly offset by increases in lending and cash and balances at central banks.
The quarterly average liquidity coverage ratio (the LCR) of UBS Switzerland AG increased 1.0 percentage point to
138.1%, remaining above the prudential requirement communicated by FINMA. The movement in the quarterly average
LCR was driven by an increase in high-quality liquid assets of CHF 0.7bn to CHF 111.9bn, primarily driven by higher cash
available from funding received from UBS AG, partly offset by lower cash available from an increase in lending assets.
The average net cash outflows were stable.
As of 30 June 2025, the net stable funding ratio was largely unchanged at 128.6%, remaining above the prudential
requirement communicated by FINMA. Available stable funding decreased by CHF 0.4bn to CHF 354.6bn, mainly
reflecting lower regulatory capital, partly offset by an increase in customer deposits. Required stable funding decreased
by CHF 0.4bn to CHF 275.9bn, predominantly driven by decreases in investments in associates and other financial assets,
partly offset by higher lending assets.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Switzerland AG standalone 61
KM1: Key metrics
CHF m, except where indicated
30.6.25
31.3.25
31.12.24
30.9.24
30.6.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4a
Total risk-weighted assets (pre-floor)
4b
Minimum capital requirement
1
Risk-based capital ratios as a percentage of RWA
5
Common equity tier 1 ratio (%)
5b
Common equity tier 1 ratio (%) (pre-floor)
6
Tier 1 ratio (%)
6b
Tier 1 ratio (%) (pre-floor)
7
Total capital ratio (%)
7b
Total capital ratio (%) (pre-floor)
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
9a
Additional countercyclical buffer for Swiss mortgage loans (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
2
11
Total of bank CET1 specific buffer requirements (%)
3
12
CET1 available after meeting the bank’s minimum capital requirements (%)
4
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
5
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
14c
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
5
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
14e
Minimum capital requirements
6
Liquidity coverage ratio (LCR)
7
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
16a
of which: cash outflows
16b
of which: cash inflows
17
LCR (%)
Net stable funding ratio (NSFR)
8
18
Total available stable funding
354,633
355,035
359,170
369,168
224,953
19
Total required stable funding
275,862
276,279
271,688
274,029
165,291
20
NSFR (%)
128.55
128.51
132.20
134.72
136.10
1 Calculated as 8% of total RWA, based on total capital minimum requirements, excluding CET1 buffer requirements. 2 Swiss SRB going and gone concern requirements and information for UBS Switzerland AG are
provided below. 3 Excludes non-BCBS capital buffer requirements for risk-weighted positions that are directly or indirectly backed by residential properties in Switzerland. 4 Represents the CET1 ratio that is
available to meet buffer requirements. Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and, where applicable, minus the BCBS tier 2 capital requirement met with CET1 capital. 5 There is
currently no temporary exemption of central bank reserves for UBS. 6 The higher of capital requirements based on 8% RWA or 3% LRD. 7 Calculated after the application of haircuts and inflow and outflow rates,
as well as, where applicable, caps on Level 2 assets and cash inflows. Calculated based on an average of 61 data points in the second quarter of 2025 and 62 data points in the first quarter of 2025. For the prior-
quarter data points, refer to the respective Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information. 8 UBS Switzerland AG is required to maintain a minimum NSFR of at least
100% on an ongoing basis, as set out in Art. 17h para. 1 of the Liquidity Ordinance. A portion of the excess funding is used to fulfill the NSFR requirement of UBS AG standalone.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Switzerland AG standalone 62
Swiss systemically relevant bank going and gone concern requirements and information
Quarterly |
gone concern requirements and information as required by FINMA; details regarding eligible gone concern instruments
are also provided below.
UBS Switzerland AG is considered an SRB under Swiss banking law and is subject to capital regulations on a standalone
basis. As of 30 June 2025, the going concern capital and leverage ratio requirements for UBS Switzerland AG standalone
were 15.20% (including a countercyclical buffer of 0.90%) and 5.00%, respectively.
The Swiss SRB framework and going concern requirements applicable to UBS Switzerland AG standalone are the same
as those applicable to UBS Group AG consolidated. The gone concern requirement corresponds to 62% of the Group’s
going concern requirements, excluding the countercyclical buffer requirements and Pillar 2 add-ons. Outstanding total
loss-absorbing capacity-eligible unsecured debt instruments are eligible to meet gone concern requirements until one
year before maturity.
The gone concern requirements were 8.87% for the RWA-based requirement and 3.10% for the LRD-based requirement.
›
Refer to “Capital and capital ratios of our significant regulated subsidiaries” in the “Capital, liquidity and funding, and balance
sheet” section of the UBS Group Annual Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more
information about the joint liability of UBS AG and UBS Switzerland AG
Swiss SRB going and gone concern requirements and information
As of 30.6.25
RWA
LRD
CHF m, except where indicated
in %
in %
Required going concern capital
Total going concern capital
1
1
Common equity tier 1 capital
of which: minimum capital
of which: buffer capital
of which: countercyclical buffer
Maximum additional tier 1 capital
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
2
Total gone concern loss-absorbing capacity
of which: base requirement including add-ons for market share and LRD
3
3
Eligible gone concern capital
Total gone concern loss-absorbing capacity
TLAC-eligible 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 1.44% for risk-weighted assets (RWA) and 0.50% for leverage ratio denominator (LRD). 2 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. 3 Includes applicable add-ons of 0.89% for RWA and 0.31% for LRD.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Switzerland AG standalone 63
Swiss SRB going and gone concern information
CHF m, except where indicated
30.6.25
31.3.25
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
Eligible gone concern capital
Total gone concern loss-absorbing capacity
TLAC-eligible 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
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Europe SE consolidated 64
UBS Europe SE consolidated
Key metrics for the second quarter of 2025
Quarterly |
liquidity of UBS Europe SE consolidated based on Basel Committee on Banking Supervision (BCBS) Pillar 1 requirements
and in accordance with EU regulatory rules and IFRS Accounting Standards.
During the second quarter of 2025, available capital decreased by EUR 0.4bn to EUR 3.6bn, primarily due to common
equity tier 1 (CET1) capital repatriation to UBS AG, partly offset by the profit that is eligible as CET1 capital as a result of
the audit of the financial results. Risk-weighted assets increased by EUR 0.2bn to EUR 14.6bn, mainly driven by an increase
in securities financing transactions (SFTs) and a decrease in cash and credit valuation adjustment. The leverage ratio
exposure increased by EUR 6.1bn to EUR 61.7bn, primarily driven by higher volumes in SFTs, increased cash balances at
central banks and growth in trading inventory.
The average liquidity coverage ratio (the LCR) remained well above the regulatory requirement of 100%, at 138.9%.
Although the LCR high-quality liquid asset (HQLA) surplus increased by around EUR 0.3bn, a decrease in the LCR was
driven by a simultaneous increase of EUR 1.4bn in HQLA and EUR 1.1bn in total net cash outflows, mostly due to higher
UBS Group euro-clearing activities. The net stable funding ratio remained well above the regulatory requirements of
100%, at 130.0%. Available stable funding decreased by EUR 0.8bn, mainly due to reduced above-1-year intercompany
funding and CET1 capital repatriation to UBS AG. Required stable funding increased by EUR 0.5bn, mainly driven by
higher client-driven activity levels in the Investment Bank in Asian markets.
KM1: Key metrics
1,2
EUR m, except where indicated
30.6.25
31.3.25
3
31.12.24
30.9.24
30.6.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4a
Total risk-weighted assets (RWA) (pre-floor)
4b
Minimum capital requirement
4
Risk-based capital ratios as a percentage of RWA
5
CET1 ratio (%)
5b
CET1 ratio (%) (pre-floor)
6
Tier 1 ratio (%)
6b
Tier 1 ratio (%) (pre-floor)
7
Total capital ratio (%)
7b
Total capital ratio (%) (pre-floor)
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
Total of bank CET1 specific buffer requirements (%)
12
CET1 available after meeting the bank’s minimum capital requirements (%)
5
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
6,7
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
14e
Minimum capital requirements
8
Liquidity coverage ratio (LCR)
9
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
17
LCR (%)
Net stable funding ratio (NSFR)
18
Total available stable funding
19
Total required stable funding
20
NSFR (%)
1 Based on applicable EU regulatory rules. 2 Row 9a of the FINMA template is applicable to FINMA-regulated scope only and rows 14c and 14d have been removed because the EU does not require the disclosure
of mean values for SFTs. 3 Comparative figures have been restated to align with the regulatory reports as submitted to the European Central Bank. 4 Calculated as 8% of total RWA, based on total capital minimum
requirements, excluding CET1 buffer requirements. 5 Represents the CET1 ratio that is available for meeting buffer requirements. Calculated as the CET1 ratio minus 4.5% and after considering, where applicable,
CET1 capital that has been used to meet tier 1 and / or total capital ratio requirements under Pillar 1. 6 On the basis of tier 1 capital. 7 There is currently no temporary exemption of central bank reserves for UBS
Europe SE. 8 The higher of capital requirements based on 8% RWA or 3% LRD. 9 Figures are calculated based on a 12
‑
month average.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Americas Holding LLC consolidated 65
UBS Americas Holding LLC consolidated
Key metrics for the second quarter of 2025
Quarterly |
accordance with US Basel III rules and generally accepted accounting principles in the US (US GAAP).
Effective 1 October 2024 and through 30 September 2025, UBS Americas Holding LLC is subject to a stress capital buffer
(an SCB) of 9.3%, in addition to the minimum capital requirements. The SCB was determined by the Federal Reserve
Board following the completion of the 2024 Comprehensive Capital Analysis and Review (the CCAR) based on Dodd–
Frank Act Stress Test (DFAST) results and planned future dividends. The SCB, which replaces the static capital conservation
buffer of 2.5%, is subject to change on an annual basis or as otherwise determined by the Federal Reserve Board.
During the second quarter of 2025, the common equity tier 1 (CET1) capital ratio increased 0.4 percentage points to
20.9% and the tier 1 capital ratio increased 0.6 percentage points to 24.6%. Both CET1 capital and tier 1 capital
decreased by USD 0.1bn due to an increase in deferred tax assets deductions and preferred dividends paid to UBS AG,
which offset the positive impact from the net profit during the quarter. Risk-weighted assets (RWA) decreased by
USD 2.1bn to USD 77.2bn, due to a USD 1.1bn decrease in market risk RWA and a USD 1.0bn decrease in credit risk
RWA. The decrease in market risk RWA was due to lower exposures in specific risk and value-at-risk / stressed value-at-
risk, which decreased by USD 0.6bn and USD 0.5bn, respectively. The decrease in credit risk RWA was mainly due to a
decrease in derivatives RWA.
Leverage ratio exposure, calculated on an average basis, decreased by USD 5.8bn to USD 199.2bn and, as a result, the
tier 1 leverage ratio increased 0.2 percentage points to 9.5%. Similarly, the tier 1 supplementary leverage ratio (the SLR)
increased 0.1 percentage points to 8.2%, primarily driven by a USD 2.7bn decrease in SLR exposure.
The average liquidity coverage ratio decreased 5 percentage points to 127.9%, as net cash outflows increased by
USD 1.4bn and high-quality liquid assets increased by USD 0.8bn. The average net stable funding ratio decreased
1.2 percentage points to 132.8%. This was due to a USD 3.1bn decrease in available stable funding and a USD 1.6bn
decrease in required stable funding.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Americas Holding LLC consolidated 66
KM1: Key metrics
1
USD m, except where indicated
30.6.25
31.3.25
31.12.24
30.9.24
30.6.24
2
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4b
Minimum capital requirement
3
Risk-based capital ratios as a percentage of RWA
5
CET1 ratio (%)
6
Tier 1 ratio (%)
7
Total capital ratio (%)
Additional CET1 buffer requirements as a percentage of RWA
8
BCBS capital conservation buffer requirement (%)
8a
US stress capital buffer requirement (%)
9
Countercyclical buffer requirement (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
BCBS total of bank CET1 specific buffer requirements (%)
11a
US total bank specific capital buffer requirements (%)
12
CET1 available after meeting the bank’s minimum capital requirements (%)
4
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
5
6
14
Basel III leverage ratio (%)
7
14a
Total Basel III supplementary leverage ratio exposure measure
5
6
14b
Basel III supplementary leverage ratio (%)
7
Liquidity coverage ratio (LCR)
15
Total high-quality liquid assets (HQLA)
5
8
16
Total net cash outflow
5,9
8
17
LCR (%)
8
Net stable funding ratio (NSFR)
18
Total available stable funding
5
8
19
Total required stable funding
5,9
8
20
NSFR (%)
8
1 As the final Basel III standards have not been implemented in the US, rows that are not applicable have been removed from the FINMA template. 2 Regulatory information is inclusive of Credit Suisse Holdings
(USA), Inc., following the reparenting of this entity under UBS Americas Holding LLC on 7 June 2024. 3 Calculated as 8% of total RWA, based on total minimum capital requirements, excluding CET1 buffer
requirements. 4 Represents the CET1 ratio that is available to meet buffer requirements. Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and, where applicable, minus the BCBS additional
tier 1 and tier 2 capital requirements met with CET1 capital. 5 Figures are calculated on a quarterly average. 6 Leverage exposure for 30 June 2024 has been calculated as if the reparenting of Credit Suisse
Holdings (USA), Inc., occurred on the first day of the calendar quarter. 7 On the basis of tier 1 capital. 8 The liquidity coverage ratio and net stable funding ratio for 30 June 2024 are calculated on a simple daily
average of the quarter, which included the business activity of Credit Suisse Holdings (USA), Inc. beginning on 7 June 2024. 9 Reflected at 85% of the full amount in accordance with the Federal Reserve tailoring
rule.
Material sub-group entity – creditor ranking at legal entity level
Semi-annual |
The TLAC2 table below provides an overview of the creditor ranking structure of UBS Americas Holding LLC on
a standalone basis.
As of 30 June 2025, UBS Americas Holding LLC had a total loss-absorbing capacity (TLAC) of USD 26.8bn after regulatory
capital deductions and adjustments. This amount included tier 1 capital of USD 19.0bn and USD 7.8bn of internal long-
term debt that is eligible as internal TLAC issued to UBS AG, a wholly owned subsidiary of the UBS Group AG resolution
entity.
TLAC2: Material sub-group entity – creditor ranking at legal entity level
As of 30.6.25
Creditor ranking
Total
USD m
1
2
3
4
1
Is the resolution entity the creditor / investor?
No
No
No
No
2
Description of creditor ranking
Common Equity
(most junior)
1
Preferred Shares
(Additional tier 1)
Subordinated
debt
Unsecured loans and
other pari passu
liabilities (most senior)
3
Total capital and liabilities net of credit risk mitigation
4
Subset of row 3 that are excluded liabilities
5
Total capital and liabilities less excluded liabilities (row 3 minus row 4)
6
Subset of row 5 that are eligible as TLAC
7
Subset of row 6 with 1 year ≤ residual maturity < 2 years
8
Subset of row 6 with 2 years ≤ residual maturity < 5 years
9
Subset of row 6 with 5 years ≤ residual maturity < 10 years
10
Subset of row 6 with residual maturity ≥ 10 years, but excluded perpetual
securities
11
Subset of row 6 that is perpetual securities
1 Equity attributable to shareholders, which includes share premium and reserves.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | Credit Suisse International standalone 67
Credit Suisse International standalone
Key metrics for the second quarter of 2025
Quarterly |
accordance with UK Prudential Regulatory Authority regulations and IFRS Accounting Standards.
During the second quarter of 2025, the common equity tier 1 capital of Credit Suisse International standalone decreased
by USD 0.1bn to USD 6.7bn from USD 6.8bn, primarily due to losses for the quarter. Total capital decreased by USD 0.1bn
to USD 6.7bn. Risk-weighted assets (RWA) decreased by USD 2.3bn to USD 7.0bn, driven by decreases across market risk
RWA and credit risk RWA. Leverage ratio exposure decreased by USD 3.6bn to USD 19.8bn, mainly driven by a decrease
in reverse repos.
The average liquidity coverage ratio was 361.4%, compared with 361.8% in the first quarter of 2025. The quarterly
variance was driven by a decrease of USD 1.6bn in high-quality liquid assets, reflecting a decrease in treasury-controlled
assets, and a USD 0.5bn reduction in net cash outflows.
The net stable funding ratio (the NSFR) of Credit Suisse International standalone remained above the regulatory
requirement of 100%, at 266.1%, compared with 241.8% in the first quarter of 2025. The movement in the NSFR was
driven by a decrease of USD 3.0bn in available stable funding, mainly reflecting decreases in capital and long-term
funding, which was offset by a decrease of USD 1.9bn in required stable funding, mainly driven by a decrease in trading
inventory, derivative exposures and unsecured lending.
KM1: Key metrics
1
USD m, except where indicated
30.6.25
31.3.25
31.12.24
30.9.24
30.6.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4b
Minimum capital requirement
2
Risk-based capital ratios as a percentage of RWA
5
CET1 ratio (%)
6
Tier 1 ratio (%)
7
Total capital ratio (%)
Additional CET1 buffer requirements as a percentage of RWA
8
BCBS capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
BCBS total of bank CET1 specific buffer requirements (%)
12
CET1 available after meeting the bank’s minimum capital requirements (%)
3
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%)
4
Liquidity coverage ratio (LCR)
5
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
17
LCR (%)
Net stable funding ratio (NSFR)
18
Total available stable funding
19
Total required stable funding
20
NSFR (%)
1 As the final Basel III standards have not been implemented in the UK, rows that are not applicable have been removed from the FINMA template. 2 Calculated as 8% of total RWA, based on total minimum
capital requirements, excluding CET1 buffer requirements. 3 Represents the CET1 ratio that is available to meet buffer requirements. Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and,
where applicable, minus the BCBS additional tier 1 and tier 2 capital requirements met with CET1 capital. 4 On the basis of tier 1 capital. 5 Based on Pillar 1 requirements; calculated using a 12-month average.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | Credit Suisse International standalone 68
Material sub-group entity – creditor ranking at legal entity level
Semi-annual |
a standalone basis.
As of 30 June 2025, Credit Suisse International had a total loss-absorbing capacity of USD 6.7bn after regulatory capital
deductions and adjustments. This amount represents tier 1 capital of USD 6.7bn.
TLAC2: Material sub-group entity – creditor ranking at legal entity level
As of 30.6.25
Creditor ranking
Total
USD m
1
2
3
4
1
Is the resolution entity the creditor / investor?
No
No
No
No
2
Description of creditor ranking
Common Equity
(most junior)
1
Preferred Shares
(Additional tier 1)
Subordinated
debt
Unsecured loans and
other pari passu
liabilities (most senior)
3
Total capital and liabilities net of credit risk mitigation
4
Subset of row 3 that are excluded liabilities
5
Total capital and liabilities less excluded liabilities (row 3 minus row 4)
6
Subset of row 5 that are eligible as TLAC
7
Subset of row 6 with 1 year ≤ residual maturity < 2 years
8
Subset of row 6 with 2 years ≤ residual maturity < 5 years
9
Subset of row 6 with 5 years ≤ residual maturity < 10 years
10
Subset of row 6 with residual maturity ≥ 10 years, but excluded perpetual
securities
11
Subset of row 6 that is perpetual securities
1 Equity attributable to shareholders, which includes share premium and reserves.
30 June 2025 Pillar 3 Report |
Appendix 69
Appendix
Abbreviations frequently used in our financial reports
A
ABS asset-backed securities
AG Aktiengesellschaft
AGM Annual General Meeting of
shareholders
AI artificial intelligence
A-IRB advanced internal ratings-
based
ALCO Asset and Liability
Committee
AMA advanced measurement
approach
AML anti-money laundering
AoA Articles of Association
APM alternative performance
measure
ARR alternative reference rate
ARS auction rate securities
ASF available stable funding
AT1 additional tier 1
AuM assets under management
B
BCBS Basel Committee on
Banking Supervision
BIS Bank for International
Settlements
BoD Board of Directors
C
CAO Capital Adequacy
Ordinance
CCAR Comprehensive Capital
Analysis and Review
CCF credit conversion factor
CCP central counterparty
CCR counterparty credit risk
CCRC Corporate Culture and
Responsibility Committee
CDS credit default swap
CEO Chief Executive Officer
CET1 common equity tier 1
CFO Chief Financial Officer
CGU cash-generating unit
CHF Swiss franc
CIO Chief Investment Office
C&ORC Compliance & Operational
Risk Control
CRM credit risk mitigation
CRO Chief Risk Officer
CST combined stress test
CUSIP Committee on Uniform
Security Identification
Procedures
CVA credit valuation adjustment
D
DBO defined benefit obligation
DCCP Deferred Contingent
Capital Plan
DFAST Dodd–Frank Act Stress Test
DisO-FINMA FINMA Ordinance on the
Disclosure Obligations of
Banks and Securities Firms
DM discount margin
DOJ US Department of Justice
DTA deferred tax asset
DVA debit valuation adjustment
E
EAD exposure at default
EB Executive Board
EC European Commission
ECB European Central Bank
ECL expected credit loss
EGM Extraordinary General
Meeting of shareholders
EIR effective interest rate
EL expected loss
EMEA Europe, Middle East and
Africa
EOP Equity Ownership Plan
EPS earnings per share
ESG environmental, social and
governance
ETD exchange-traded derivatives
ETF exchange-traded fund
EU European Union
EUR euro
EURIBOR Euro Interbank Offered Rate
EVE economic value of equity
EY Ernst & Young Ltd
F
FCA UK Financial Conduct
Authority
FDIC Federal Deposit Insurance
Corporation
FINMA Swiss Financial Market
Supervisory Authority
FMIA Swiss Financial Market
Infrastructure Act
FRTB Fundamental Review of the
Trading Book
FSB Financial Stability Board
FTA Swiss Federal Tax
Administration
FVA funding valuation
adjustment
FVOCI fair value through other
comprehensive income
FVTPL fair value through profit or
loss
FX foreign exchange
G
GAAP generally accepted
accounting principles
GBP pound sterling
GCRG Group Compliance,
Regulatory and Governance
GDP gross domestic product
GEB Group Executive Board
GHG greenhouse gas
GIA Group Internal Audit
GRI Global Reporting Initiative
G-SIB global systemically
important bank
H
HQLA
high-quality liquid assets
I
IA Internal Audit
IAS International Accounting
Standards
IASB International Accounting
Standards Board
IBOR interbank offered rate
IFRIC International Financial
Reporting Interpretations
Committee
IFRS accounting standards
Accounting issued by the IASB
Standards
IRB internal ratings-based
IRRBB interest rate risk in the
banking book
ISDA International Swaps and
Derivatives Association
ISIN International Securities
Identification Number
30 June 2025 Pillar 3 Report |
Appendix 70
Abbreviations frequently used in our financial reports (continued)
K
KRT Key Risk Taker
L
LAS liquidity-adjusted stress
LCR liquidity coverage ratio
LGD loss given default
LIBOR London Interbank Offered
Rate
LLC limited liability company
LoD lines of defense
LRD leverage ratio denominator
LTIP Long-Term Incentive Plan
LTV loan-to-value
M
M&A mergers and acquisitions
MRT Material Risk Taker
N
NII net interest income
NSFR net stable funding ratio
NYSE New York Stock Exchange
O
OCA own credit adjustment
OCI other comprehensive
income
OECD Organisation for Economic
Co-operation and
Development
OTC over-the-counter
P
PCI purchased credit impaired
PD probability of default
PIT point in time
PPA purchase price allocation
Q
QCCP qualifying central
counterparty
R
RBC risk-based capital
RbM risk-based monitoring
REIT real estate investment trust
RMBS residential mortgage-
backed securities
RniV risks not in VaR
RoCET1 return on CET1 capital
RoU right-of-use
rTSR relative total shareholder
return
RWA risk-weighted assets
S
SA standardized approach or
société anonyme
SA-CCR standardized approach for
counterparty credit risk
SAR Special Administrative
Region of the People’s
Republic of China
SDG Sustainable Development
Goal
SEC US Securities and Exchange
Commission
SFT securities financing
transaction
SIBOR Singapore Interbank
Offered Rate
SICR significant increase in credit
risk
SIX SIX Swiss Exchange
SME small and medium-sized
entities
SMF Senior Management
Function
SNB Swiss National Bank
SOR Singapore Swap Offer Rate
SPPI solely payments of principal
and interest
SRB systemically relevant bank
SVaR stressed value-at-risk
T
TBTF too big to fail
TCFD Task Force on Climate-
related Financial Disclosures
TIBOR Tokyo Interbank Offered
Rate
TLAC total loss-absorbing capacity
TTC through the cycle
U
USD US dollar
V
VaR value-at-risk
VAT
value added tax
This is a general list of the abbreviations frequently used in our financial reporting. Not all of the listed abbreviations may
appear in this particular report.
30 June 2025 Pillar 3 Report |
Appendix 71
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 Group 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/ 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 28, 2025
FAQ
What are the key capital ratios UBS (UBS) reported in its 30 June 2025 Pillar 3 update?
UBS reported common equity tier 1 (CET1) capital of USD 72.7bn, a CET1 ratio of 14.41%, tier 1 capital of USD 91.7bn and a Basel III leverage ratio of 5.53%. Total risk‑weighted assets were USD 504.5bn, and total capital and tier 1 ratios were both 18.18%.
How much additional CET1 capital could Swiss Financial Stability Proposals require from UBS (UBS)?
Based on first‑quarter 2025 figures and a UBS AG CET1 ratio target of 12.5–13%, UBS estimates it would need around USD 24bn of additional CET1 at UBS AG if the proposals were implemented as described. This is mainly due to fully deducting investments in foreign subsidiaries from CET1 and would come on top of about USD 18bn previously communicated in connection with the Credit Suisse acquisition, for a total of roughly USD 42bn additional CET1 over time.
What did UBS (UBS) say about the timing of the new Swiss capital and liquidity rules?
UBS stated that legislative proposals on foreign subsidiary capital requirements are expected to be submitted to the Swiss Parliament in the first half of 2026, with entry into force in 2028 at the earliest and a phase‑in over at least six to eight years. Ordinance‑level measures, including the treatment of capitalized software and deferred tax assets, are in consultation until September 2025, with possible effectiveness from January 2027 at the earliest.
How strong are UBS’s (UBS) liquidity metrics in this report?
For the second quarter of 2025, UBS reported a quarterly average liquidity coverage ratio (LCR) of 182.3%, supported by high‑quality liquid assets of USD 358.8bn. The net stable funding ratio (NSFR) was 122.4%, with available stable funding of USD 904.7bn and required stable funding of USD 738.9bn, all above FINMA’s prudential requirements.
What total loss‑absorbing capacity (TLAC) did UBS (UBS) report at the group resolution level?
UBS reported TLAC available of USD 191.2bn at the UBS Group AG consolidated (resolution group) level as of 30 June 2025. This corresponded to 37.89% of risk‑weighted assets of USD 504.5bn and 11.53% of the leverage ratio exposure measure of USD 1,658.1bn.