[6-K] UBS Group AG Current Report (Foreign Issuer)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Date: July 30, 2025
(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 Second Quarter 2025 Report of UBS Group AG, which appears immediately following
this page.
Second quarter
1.
Key figures
3
Our key figures
2.
Recent developments
4
Recent developments
3.
UBS Group performance, business
divisions and Group Items
8
Group performance
18
Global Wealth Management
23
Personal & Corporate Banking
27
Asset Management
29
Investment Bank
32
Non-core and Legacy
34
Group Items
4.
Risk, capital, liquidity and funding,
and balance sheet
36
Risk management and control
41
Capital management
50
Liquidity and funding management
51
Balance sheet and off-balance sheet
53
Share information and earnings per share
5.
Consolidated
financial statements
56
UBS Group AG interim consolidated financial
statements (unaudited)
Appendix
90
Alternative performance measures
94
Abbreviations frequently used in
our financial reports
96
Information sources
97
Cautionary statement
Corporate calendar UBS Group
Information about future publication dates is available at
ubs.com/global/en/investor-relations/events/calendar.html
Contacts
Switchboards
For all general inquiries
ubs.com/contact
Zurich +41-44-234-1111
London +44-207-567-8000
New York +1-212-821-3000
Hong Kong +852-2971-8888
Singapore +65-6495-8000
Investor Relations
UBS’s Investor Relations team manages
relationships with institutional investors,
research analysts and credit rating agencies.
ubs.com/investors
Zurich +41-44-234-4100
New York +1-212-882-5734
Media Relations
UBS’s Media Relations team manages
relationships with global media and
journalists.
ubs.com/media
Zurich +41-44-234-8500
mediarelations@ubs.com
London +44-20-7567-4714
ubs-media-relations@ubs.com
New York +1-212-882-5858
mediarelations@ubs.com
Hong Kong +852-2971-8200
sh-mediarelations-ap@ubs.com
Office of the Group Company Secretary
The Group Company Secretary handles
inquiries directed to the Chairman or to
other members of the Board of Directors.
UBS Group AG, Office of the Group
Company Secretary
PO Box, CH-8098 Zurich, Switzerland
sh-company-secretary@ubs.com
Zurich +41-44-235-6652
Shareholder Services
UBS’s Shareholder Services team, a unit
of the Group Company Secretary’s office,
manages relationships with shareholders
and the registration of UBS Group AG
registered shares.
UBS Group AG, Shareholder Services
PO Box, CH-8098 Zurich, Switzerland
sh-shareholder-services@ubs.com
Zurich +41-44-235-6652
US Transfer Agent
For global registered share-related
inquiries in the US.
Computershare Trust Company NA
PO Box 43006
Providence, RI, 02940-3006, USA
Shareholder online inquiries:
www.computershare.com/us/
investor-inquiries
Shareholder website:
computershare.com/investor
Calls from the US
+1-866-305-9566
Calls from outside the US
+1-781-575-2623
TDD for hearing impaired
+1-800-231-5469
TDD for foreign shareholders
+1-201-680-6610
Imprint
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.
UBS Group second quarter 2025 report
Terms used in this report, unless the context requires otherwise
“UBS”, “UBS Group”, “UBS Group AG consolidated”, “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”
UBS Group AG on a standalone basis
“UBS Switzerland AG”
UBS Switzerland AG 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.
Alternative performance measures
An alternative performance measure (an APM) is a financial measure of historical or future financial performance,
financial position or cash flows other than a financial measure defined or specified in the applicable recognized
accounting standards or in other applicable regulations. We report a number of APMs in the discussion of the
financial and operating performance of the Group, our business divisions and Group Items. We use APMs to provide
a more complete picture of our operating performance and to reflect management’s view of the fundamental
drivers of our business results. A definition of each APM, the method used to calculate it and the information
content are presented under “Alternative performance measures” in the appendix to this report. Our APMs may
qualify as non-GAAP measures as defined by US Securities and Exchange Commission (SEC) regulations. Our
underlying results are APMs and are non-GAAP financial measures.
›
Refer to the “Group performance” section of this report and to “Alternative performance measures” in the
appendix to this report for additional information about underlying results
Significant regulated subsidiary and sub-group information
Financial and regulatory key figures for our significant regulated subsidiaries and sub-groups will be published on
5 August 2025 and will be available under “Holding company and significant regulated subsidiaries and sub-
groups” at
ubs.com/investors
.
UBS Group second quarter 2025 report
Key figures
Our key figures
Key figures
As of or for the quarter ended
As of or year-to-date
USD m, except where indicated
30.6.25
31.3.25
31.12.24
30.6.24
30.6.25
30.6.24
Group results
Total revenues
Credit loss expense / (release)
Operating expenses
Operating profit / (loss) before tax
Net profit / (loss) attributable to shareholders
Diluted earnings per share (USD)
1
Profitability and growth
2,3
Return on equity (%)
Return on tangible equity (%)
Underlying return on tangible equity (%)
4
Return on common equity tier 1 capital (%)
Underlying return on common equity tier 1 capital (%)
4
Revenues over leverage ratio denominator, gross (%)
Cost / income ratio (%)
Underlying cost / income ratio (%)
4
Effective tax rate (%)
Net profit growth (%)
n.m.
Resources
2
Total assets
Equity attributable to shareholders
Common equity tier 1 capital
5
Risk-weighted assets
5
Common equity tier 1 capital ratio (%)
5
Going concern capital ratio (%)
5
Total loss-absorbing capacity ratio (%)
5
Leverage ratio denominator
5
Common equity tier 1 leverage ratio (%)
5
Liquidity coverage ratio (%)
6
Net stable funding ratio (%)
Other
Invested assets (USD bn)
3,7
Personnel (full-time equivalents)
Market capitalization
1,8
Total book value per share (USD)
1
Tangible book value per share (USD)
1
Credit-impaired lending assets as a percentage of total lending assets, gross (%)
3
Cost of credit risk (bps)
3
1 Refer to the “Share information and earnings per share” section of this report for more information. 2 Refer to the “Targets, capital guidance and ambitions” section of the UBS Group Annual Report 2024,
available under “Annual reporting” at ubs.com/investors, and to the “Recent development” section of this report for more information about our performance targets. 3 Refer to “Alternative performance measures”
in the appendix to this report for the relevant definition(s) and calculation method(s). 4 Refer to the “Group performance” section of this report for more information about underlying results. 5 Based on the Swiss
systemically relevant bank framework. Refer to the “Capital management” section of this report for more information. 6 The disclosed ratios represent quarterly averages for the quarters presented and are calculated
based on an average of 61 data points in the second quarter of 2025, 62 data points in the first quarter of 2025, 64 data points in the fourth quarter of 2024 and 61 data points in the second quarter of 2024. Refer
to the “Liquidity and funding management” section of this report for more information. 7 Consists of invested assets for Global Wealth Management, Asset Management (including invested assets from associates)
and Personal & Corporate Banking. Refer to “Note 31 Invested assets and net new money” in the “Consolidated financial statements” section of the UBS Group Annual Report 2024, available under “Annual
reporting” at ubs.com/investors, for more information. 8 The calculation of market capitalization reflects total shares issued multiplied by the share price at the end of the period.
UBS Group second quarter 2025 report
Recent developments
Management report
Integration of Credit Suisse
We remain on track to substantially complete the integration of Credit Suisse by the end of 2026. Our focus
continues to be on client account migrations and infrastructure decommissioning.
In the second quarter of 2025, we successfully completed the first main wave of our Swiss business migrations,
having now migrated approximately one-third of the targeted client accounts, and we still aim to complete the
Swiss booking center migrations by the end of the first quarter of 2026.
We have made substantial further progress in simplifying our legal entity structure in the US and Europe, having
merged Credit Suisse Holdings (USA), Inc. with UBS Americas Inc, deregistered Credit Suisse Securities (USA) LLC as
a broker-dealer and established UBS Europe SE as the single EU intermediate parent undertaking ahead of schedule.
In the second quarter of 2025, we realized an additional USD 0.7bn in gross cost savings. Cumulative gross cost
savings at the end of the second quarter of 2025 amounted to USD 9.1bn compared with the 2022 combined cost
base of UBS and Credit Suisse. This represents around 70% of our ambition to deliver around USD 13bn in
annualized exit rate gross cost savings by the end of 2026.
As of 30 June 2025, our Non-core and Legacy business division has delivered a 62% reduction in risk-weighted
assets (RWA) since the second quarter of 2023. We still aim for Non-core and Legacy’s credit and market risk RWA
to be below USD 8bn by the end of 2025, and we expect its operating expenses, excluding litigation, to be around
USD 1.6bn in 2025.
On 18 July 2025, the High Court of England and Wales approved the transfer of Credit Suisse International’s residual
business and related products to UBS AG London Branch and UBS Europe SE pursuant to Part VII of the Financial
Services and Markets Act 2000. The transfer of the relevant assets and liabilities is expected to occur over the next
six months.
Regulatory and legal developments
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 the Swiss Financial Market Supervisory Authority
(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 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
i
n the first half of 2027. The entry into force of these amendments is expected in 2028 or 2029.
UBS Group second quarter 2025 report
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 (the EC) proposed to delay the implementation of the Fundamental Review
of the Trading Book (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.
The Swiss Federal Council pauses the revision of the Ordinance on Climate Disclosures
In June 2025, the Swiss Federal Council decided to pause the revision of the Ordinance on Climate Disclosures until
the approval of the ongoing revision of the overarching legislation on sustainability reporting in the Swiss Code of
Obligations or until 1 January 2027, at the latest.
Recent developments related to EU sustainability reporting
In July 2025, Germany’s Federal Ministry of Justice and Consumer Protection published a new draft bill to implement
the EU Corporate Sustainability Reporting Directive (the CSRD). If enacted, the draft bill would make CSRD reporting
mandatory for the 2025 financial year for large companies that are subject to wave one reporting requirements of
the CSRD, which would include UBS AG.
In July 2025, the EC adopted amendments to the European Sustainability Reporting Standards (the ESRS) to allow
wave one companies to omit certain of the ESRS disclosures for the 2025 and 2026 financial years. Also in July
2025, the EC published proposed measures to simplify the disclosure requirements under Art. 8 of the EU Taxonomy
Regulation. These actions are part of a broader initiative by the EU to simplify its sustainability standards and to
reduce the reporting burden on companies. We are currently assessing the impact of these measures on the
d
isclosures of UBS AG and UBS Europe SE.
UBS Group second quarter 2025 report
Other developments
Resolution of legacy Credit Suisse cross-border matter
On 5 May 2025, Credit Suisse Services AG entered into an agreement with the US Department of Justice (the DOJ)
to settle a long-running tax-related investigation into Credit Suisse’s implementation of its 2014 plea agreement,
relating to its legacy cross-border business with US taxpayers booked in Switzerland, which began before UBS
acquired the Credit Suisse Group. Credit Suisse Services AG pleaded guilty to one count of conspiracy to aid and
assist in the preparation of false income tax returns. Credit Suisse Services AG also contemporaneously entered into
a non-prosecution agreement regarding US taxpayers booked in the legacy Credit Suisse Singapore booking center.
In the second quarter of 2025, we paid USD 511m with respect to the aforementioned resolutions and we recorded
in our Non-core and Legacy division a net release of USD 427m of provisions and contingent liabilities, which
included a provision for the estimated costs of UBS’s ongoing obligations with the DOJ in respect of legacy Credit
Suisse accounts.
›
Refer to “Note 14 Provisions and contingent liabilities” in the “Consolidated financial statements” section of this
report for more information
Sale of
O’Connor
In May 2025, UBS Asset Management (Americas) LLC entered into an agreement to sell its O’Connor single-
manager hedge fund, private credit and commodities platform to Cantor Fitzgerald. The sale includes O’Connor’s
six investment strategies with around USD 11bn in assets under management and, as part of the agreement, UBS
and Cantor Fitzgerald will establish a long-term commercial arrangement. The transaction is expected to close in
stages, beginning in the fourth quarter of 2025, subject to regulatory approvals and other customary closing
conditions. UBS does not expect to recognize a material profit or loss upon completion of the transaction.
Ownership increase in UBS Securities China
In the second quarter of 2025, we increased our stake in UBS Securities China from 67% to 100%. The closing of
the transaction did not affect profit or loss and there was no material effect on our CET1 capital.
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 this report 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.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items 7
UBS Group performance,
business divisions and Group Items
Management report
Our businesses
We report five business divisions, each of which qualifies as an operating segment pursuant to IFRS Accounting
Standards: Global Wealth Management, Personal & Corporate Banking, Asset Management, the Investment Bank,
and Non-core and Legacy. Non-core and Legacy consists of positions and businesses not aligned with our strategy
and policies.
Our Group functions are support and control functions that provide services to the Group. Virtually all costs incurred
by our Group functions are allocated to the business divisions, leaving a residual amount that we refer to as Group
Items in our segment reporting.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Group performance 8
Group performance
Income statement
For the quarter ended
% change from
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Net interest income
Other net income from financial instruments measured at fair value through profit or loss
Net fee and commission income
Other income
Total revenues
Credit loss expense / (release)
Personnel expenses
General and administrative expenses
Depreciation, amortization and impairment of non-financial assets
Operating expenses
Operating profit / (loss) before tax
Tax expense / (benefit)
Net profit / (loss)
Net profit / (loss) attributable to non-controlling interests
Net profit / (loss) attributable to shareholders
Comprehensive income
Total comprehensive income
Total comprehensive income attributable to non-controlling interests
Total comprehensive income attributable to shareholders
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Group performance 9
Selected financial information of the business divisions and Group Items
For the quarter ended 30.6.25
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
of which: PPA effects and other integration items
1
of which: loss related to an investment in an associate
Total revenues (underlying)
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses and PPA effects
2
Operating expenses (underlying)
Operating profit / (loss) before tax as reported
Operating profit / (loss) before tax (underlying)
For the quarter ended 31.3.25
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
of which: PPA effects and other integration items
1
of which: gain related to an investment in an associate
of which: items related to the Swisscard transactions
3
Total revenues (underlying)
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses and PPA effects
2
of which: items related to the Swisscard transactions
4
Operating expenses (underlying)
Operating profit / (loss) before tax as reported
Operating profit / (loss) before tax (underlying)
For the quarter ended 30.6.24
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
of which: PPA effects and other integration items
1
Total revenues (underlying)
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses and PPA effects
2
Operating expenses (underlying)
Operating profit / (loss) before tax as reported
Operating profit / (loss) before tax (underlying)
1 Includes accretion of PPA adjustments on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration. 2 Includes temporary, incremental operating
expenses directly related to the integration, as well as amortization of intangibles resulting from the acquisition of the Credit Suisse Group. 3 Represents the gain related to UBS’s share of income recorded by
Swisscard for the sale of the Credit Suisse card portfolios to UBS. 4 Represents the expense related to the payment to Swisscard for the sale of the Credit Suisse card portfolios to UBS.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Group performance 10
Selected financial information of the business divisions and Group Items (continued)
Year-to-date 30.6.25
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
of which: PPA effects and other integration items
1
of which: gain / (loss) related to an investment in an associate
of which: items related to the Swisscard transactions
2
Total revenues (underlying)
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses and PPA effects
3
of which: items related to the Swisscard transactions
4
Operating expenses (underlying)
Operating profit / (loss) before tax as reported
Operating profit / (loss) before tax (underlying)
Year-to-date 30.6.24
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
of which: PPA effects and other integration items
1
Total revenues (underlying)
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses and PPA effects
3
Operating expenses (underlying)
Operating profit / (loss) before tax as reported
Operating profit / (loss) before tax (underlying)
1 Includes accretion of PPA adjustments on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration. 2 Represents the gain related to UBS’s share
of income recorded by Swisscard for the sale of the Credit Suisse card portfolios to UBS. 3 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of intangibles
resulting from the acquisition of the Credit Suisse Group. 4 Represents the expense related to the payment to Swisscard for the sale of the Credit Suisse card portfolios to UBS.
Integration-related expenses, by business division and Group Items
For the quarter ended
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Total integration-related expenses
of which: total revenues
of which: operating expenses
of which: personnel expenses
of which: general and administrative expenses
of which: depreciation, amortization and impairment of non-financial assets
Underlying results
In addition to reporting our results in accordance with IFRS Accounting Standards, we report underlying results that
exclude items of profit or loss that management believes are not representative of the underlying performance.
In the second quarter of 2025, underlying revenues excluded purchase price allocation (PPA) effects and other
integration items. PPA effects mainly consisted of PPA adjustments on financial instruments measured at amortized
cost, including off-balance sheet positions, arising from the acquisition of the Credit Suisse Group. Accretion of PPA
adjustments on financial instruments is accelerated when the related financial instrument is derecognized before
its contractual maturity. No adjustment is made for accretion of PPA on financial instruments within Non-core and
Legacy, due to the nature of its business model. Underlying revenues also excluded a loss relating to an investment
in an associate.
In the second quarter of 2025, underlying expenses excluded integration-related expenses that are temporary,
incremental and directly related to the integration of Credit Suisse into UBS, including costs of internal staff and
contractors substantially dedicated to integration activities, retention awards, redundancy costs, incremental
expenses from the shortening of useful lives of property, equipment and software, and impairment charges relating
to these assets. Classification as integration-related expenses does not affect the timing of recognition and
measurement of those expenses or the presentation thereof in the income statement.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Group performance 11
Results: 2Q25 vs 2Q24
Reported operating profit before tax increased by USD 724m, or 49%, to USD 2,193m, reflecting an increase in
total revenues and lower operating expenses, partly offset by higher net credit loss expenses. Total revenues
increased by USD 208m, or 2%, to USD 12,112m, which included an increase from foreign currency effects and a
decrease of USD 184m in accretion impacts resulting from PPA adjustments on financial instruments and other
integration items. The increase in total revenues was driven by increases of USD 177m in net fee and commission
income and USD 155m in combined net interest income and other net income from financial instruments measured
at fair value through profit or loss, partly offset by a USD 124m decrease in other income. Operating expenses
decreased by USD 584m, or 6%, to USD 9,756m, which included an increase from foreign currency effects and a
USD 319m decrease in integration-related expenses. The overall decrease in operating expenses was mainly driven
by USD 437m lower general and administrative expenses, a USD 143m decrease in personnel expenses and a
USD 5m decrease in depreciation, amortization and impairment of non-financial assets. Net credit loss expenses
were USD 163m, compared with USD 95m in the second quarter of 2024.
Underlying results 2Q25 vs 2Q24
Underlying revenues for the second quarter of 2025 excluded PPA effects and other integration items of USD 596m
and a USD 31m loss relating to an investment in an associate. Underlying operating expenses excluded USD 1,055m
of integration-related expenses and PPA effects.
On an underlying basis, profit before tax increased by USD 623m to USD 2,683m, reflecting a USD 422m increase
in total revenues and a USD 268m decrease in operating expenses, partly offset by a USD 68m increase in net credit
loss expenses.
Total revenues: 2Q25 vs 2Q24
Net interest income and other net income from financial instruments measured at fair value through profit or loss
Total combined net interest income and other net income from financial instruments measured at fair value through
profit or loss increased by USD 155m to USD 5,373m and included a decrease of USD 51m in accretion impacts
resulting from PPA adjustments on financial instruments and other PPA effects.
Global Wealth Management revenues decreased by USD 65m to USD 2,167m, which included USD 91m lower
accretion of PPA adjustments on financial instruments and other PPA effects. Excluding the aforementioned effects,
net interest income decreased, mainly driven by lower loan revenues, reflecting margin contraction, and lower
deposit revenues due to lower central bank interest rates, partly offset by the effect of higher deposit volumes,
positive foreign currency effects and balance sheet optimization measures. In addition, trading revenues increased,
mainly reflecting higher levels of client activity.
Personal & Corporate Banking revenues increased by USD 21m to USD 1,585m, which included USD 31m higher
accretion of PPA adjustments on financial instruments and other PPA effects, as well as positive foreign currency
effects. Excluding the aforementioned effects, net interest income decreased, mainly driven by lower central bank
interest rates affecting deposit revenues, partly mitigated by pricing measures, lower liquidity and funding costs,
and higher loan revenues.
Investment Bank revenues increased by USD 354m to USD 1,882m, including a USD 14m decrease in accretion of
PPA adjustments on financial instruments and other PPA effects. The overall growth was mainly due to higher
Derivatives & Solutions revenues, mostly driven by Foreign Exchange, Rates and Equity Derivatives, due to elevated
volatility and higher levels of client activity. In addition, there were higher revenues in Financing, with increases in
all products, led by Prime Brokerage, supported by higher client balances. These increases were partly offset by
lower revenues in Global Banking, largely driven by a contraction in Leveraged Capital Markets revenues.
Non-core and Legacy revenues were negative USD 92m, compared with positive USD 310m in the second quarter
of 2024, mainly due to lower net gains from position exits and lower net interest income from securitized products
and credit products, partly offset by lower liquidity and funding costs, as a result of a smaller portfolio.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Group performance 12
Revenues in Group Items were negative USD 168m, compared with negative USD 417m in the second quarter of
2024. The change in revenues was mainly driven by mark-to-market gains from Group hedging and own debt,
including hedge accounting ineffectiveness, compared to losses in the second quarter of 2024. Revenues in the
second quarter of 2025 included offsetting impacts on portfolio-level economic hedges and mark-to-market effects
on own credit.
›
Refer to the relevant business division commentary in this section for more information about business-division-
specific revenues
›
Refer to “Note 3 Net interest income” in the “Consolidated financial statements” section of this report for more
information about net interest income
Net interest income and other net income from financial instruments measured at fair value through profit or loss
For the quarter ended
% change from
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Net interest income from financial instruments measured at amortized cost and fair value
through other comprehensive income
Net interest income from financial instruments measured at fair value through profit or
loss and other
Other net income from financial instruments measured at fair value through profit or loss
Total
Global Wealth Management
of which: net interest income
of which: transaction-based income from foreign exchange and other intermediary
activity
1
Personal & Corporate Banking
of which: net interest income
of which: transaction-based income from foreign exchange and other intermediary
activity
1
Asset Management
Investment Bank
Non-core and Legacy
Group Items
1 Mainly includes spread-related income in connection with client-driven transactions, foreign currency translation effects and income and expenses from precious metals, which are included in the income statement
line Other net income from financial instruments measured at fair value through profit or loss. The amounts reported on this line are one component of Transaction -based income in the management discussion and
analysis in the “Global Wealth Management” and “Personal & Corporate Banking” sections of this report.
Net fee and commission income
Net fee and commission income increased by USD 177m to USD 6,708m and included a decrease of USD 152m in
accretion of PPA adjustments on financial instruments and other PPA effects, which was reflected in other fee and
commission income, predominantly in Global Banking in the Investment Bank.
Investment fund fees increased by USD 200m to USD 1,601m, mainly in Global Wealth Management and Asset
Management. In addition, fees for portfolio management and related services increased by USD 94m to
USD 3,165m, predominantly in Global Wealth Management. The increases in Global Wealth Management were
mainly due to higher average levels of fee-generating assets reflecting positive market performance and net new
fee-generating asset inflows. The increase in Asset Management was largely driven by positive foreign currency
effects and positive market performance, partly offset by continued margin compression.
Net brokerage fees increased by USD 150m to USD 1,188m, due to higher levels of client activity in Global Wealth
Management, and in Cash Equities in Execution Services in the Investment Bank, due to higher volumes.
M&A and corporate finance fees decreased by USD 47m to USD 225m, mainly reflecting lower advisory revenues
in our Global Banking business within the Investment Bank.
›
Refer to “Note 4 Net fee and commission income” in the “Consolidated financial statements” section of this report
for more information
Other income
Other income was USD 30m, compared with USD 154m in the second quarter of 2024. The second quarter of
2025 included a USD 31m loss relating to an investment in an associate. In addition, there were losses of USD 27m
recognized on repurchases of UBS’s own debt instruments, compared with gains of USD 4m in the second quarter
of 2024. The second quarter of 2024 included a USD 28m net gain in Asset Management from the sale of our
Brazilian real estate fund management business.
›
Refer to “Note 5 Other income” in the “Consolidated financial statements” section of this report for more
information
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Group performance 13
Credit loss expense / release: 2Q25 vs 2Q24
Total net credit loss expenses in the second quarter of 2025 were USD 163m, reflecting net expenses of USD 38m
related to performing positions and net expenses of USD 125m on credit-impaired positions. Net credit loss
expenses were USD 95m in the second quarter of 2024.
›
Refer to “Note 8 Expected credit loss measurement” in the “Consolidated financial statements” section of this
report for more information
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Purchased
Total
For the quarter ended 30.6.25
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Total
For the quarter ended 31.3.25
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Total
For the quarter ended 30.6.24
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Total
Operating expenses: 2Q25 vs 2Q24
Operating expenses
For the quarter ended
% change from
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Personnel expenses
of which: salaries and variable compensation
of which: variable compensation – financial advisors
1
General and administrative expenses
of which: net expenses / (releases) for litigation, regulatory and similar matters
Depreciation, amortization and impairment of non-financial assets
Total operating expenses
1 Financial advisor compensation consists of cash compensation, determined using a formulaic approach based on production, and deferred awards. It also includes expenses related to compensation commitments
with financial advisors entered into at the time of recruitment that are subject to vesting requirements.
Personnel expenses
Personnel expenses decreased by USD 143m to USD 6,976m, including a USD 206m decrease in integration-related
expenses. The overall decrease was mainly as a result of lower amortization of awards granted in prior periods and
lower accruals for performance awards. In addition, salary expenses were lower, reflecting the impact of a smaller
workforce, largely offset by foreign currency effects. These decreases were partly offset by a USD 44m increase in
financial advisor compensation resulting from higher compensable revenues.
›
Refer to “Note 6 Personnel expenses” in the “Consolidated financial statements” section of this report for more
information
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Group performance 14
General and administrative expenses
General and administrative expenses decreased by USD 437m to USD 1,881m, including a USD 113m decrease in
integration-related expenses. The overall decrease was mainly due to USD 259m higher net releases for litigation,
regulatory and similar matters. In addition, there were decreases of USD 82m in outsourcing costs, mainly reflecting
lower IT services costs, as well as USD 77m lower consulting, legal and audit fees, largely attributable to the decrease
in integration-related expenses.
›
Refer to “Note 7 General and administrative expenses” in the “Consolidated financial statements” section of this
report for more information
›
Refer to “Note 14 Provisions and contingent liabilities” in the “Consolidated financial statements” section of this
report for more information about litigation, regulatory and similar matters
›
Refer to the “Regulatory and legal developments” and “Risk factors” sections of the UBS Group Annual Report
2024, available under “Annual reporting” at
ubs.com/investors
, for more information about litigation, regulatory
and similar matters
Tax: 2Q25 vs 2Q24
The Group had a net income tax benefit of USD 209m in the second quarter of 2025, representing a negative
effective tax rate of 9.5%, compared with a tax expense of USD 293m in the second quarter of 2024 and a positive
effective tax rate of 20.0%.
This reflected a net deferred tax benefit of USD 577m, which included a USD 663m benefit related to integration-
related tax planning, primarily driven by the recognition of deferred tax assets (DTAs) in respect of tax losses carried
forward and deductible temporary differences resulting from the final consolidation of legal entities in the United
States. These benefits were partly offset by a net deferred tax expense of USD 86m that primarily related to the
amortization of DTAs previously recognized in relation to tax losses carried forward and deductible temporary
differences.
The current tax expense was USD 368m, which primarily related to the taxable profits of UBS Switzerland AG and
other entities.
Excluding any potential effects from the remeasurement of deferred tax assets in connection with the 2025 business
planning process and any material jurisdictional statutory tax rate changes that could be enacted, the Group’s
effective tax rate for the second half of 2025 is expected to be higher than the structural rate of 23%. The projected
second-half rate is elevated because the Group’s net profit is expected to include certain restructuring costs and
other expenses resulting from the ongoing integration of the legacy operations of Credit Suisse into the UBS Group,
which are not expected to result in a tax benefit because such costs and expenses cannot be offset against relevant
Group profits.
Total comprehensive income attributable to shareholders
In the second quarter of 2025, total comprehensive income attributable to shareholders was USD 5,335m,
reflecting a net profit of USD 2,395m and other comprehensive income (OCI), net of tax, of USD 2,941m.
Foreign currency translation OCI was USD 2,536m, mainly resulting from the US dollar weakening against the Swiss
franc and the euro.
OCI related to cash flow hedges was USD 562m, mainly reflecting net unrealized gains on US dollar hedging
derivatives resulting from decreases in the relevant US dollar long-term interest rates and net losses on hedging
instruments that were reclassified from OCI to the income statement.
OCI related to own credit on financial liabilities designated at fair value was negative USD 124m, primarily due to
a tightening of our own credit spreads.
›
Refer to “Statement of comprehensive income” in the “Consolidated financial statements” section of this report for
more information
›
Refer to “Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital” in
the “Capital management” section of this report for more information about the effects of OCI on common equity
tier 1 capital
›
Refer to “Note 21 Fair value measurement” 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 own
c
redit on financial liabilities designated at fair value
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Group performance 15
Sensitivity to interest rate movements
As of 30 June 2025, it is estimated that a parallel shift in yield curves by +100 basis points could lead to a combined
increase in annual net interest income from our banking book of approximately USD 1.3bn in the first year after
such a shift. Of this increase, approximately USD 0.7bn, USD 0.4bn and USD 0.1bn would result from changes in
Swiss franc, US dollar and euro interest rates, respectively.
A parallel shift in yield curves by –100 basis points could lead to a combined increase in annual net interest income
of approximately
USD 0.9bn. Of this increase, approximately USD 1.5bn would result from changes in the Swiss
franc interest rate, driven by both contractual and assumed flooring benefits under negative interest rates. US dollar
and euro interest rate changes would lead to an offsetting decrease of USD 0.4bn and USD 0.1bn, respectively.
These estimates do not represent net interest income forecasts, as they are based on a hypothetical scenario of an
immediate change in interest rates, equal across all currencies and relative to implied forward rates as of 30 June
2025 applied to our banking book. These estimates further assume no change to balance sheet size and product
mix, stable foreign exchange rates, and no specific management action.
›
Refer to the “Risk management and control” section of this report for information about interest rate risk in the
banking book
Key figures and personnel
Below is an overview of selected key figures of the Group. For further information about key figures related to
capital management, refer to the “Capital management” section of this report.
Cost / income ratio: 2Q25 vs 2Q24
The cost / income ratio was 80.5%, compared with 86.9%, and on an underlying basis the cost / income ratio was
75.4%, compared with 80.6%, both as a result of higher total revenues and lower operating expenses.
Personnel: 2Q25 vs 1Q25
The number of internal and external personnel employed was approximately 123,526 (workforce count) as of
30 June 2025, a net decrease of 2,551 compared with 31 March 2025. The number of internal personnel employed
as of 30 June 2025 was 105,132 (full-time equivalents), a net decrease of 1,657 compared with 31 March 2025.
The number of external staff was approximately 18,393 (workforce count) as of 30 June 2025, a net decrease of
approximately 894 compared with 31 March 2025.
Equity, CET1 capital and returns
As of or for the quarter ended
Year-to-date
USD m, except where indicated
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Net profit
Net profit / (loss) attributable to shareholders
Equity
Equity attributable to shareholders
less: goodwill and intangible assets
Tangible equity attributable to shareholders
less: other CET1 adjustments
CET1 capital
Returns
Return on equity (%)
Return on tangible equity (%)
Underlying return on tangible equity (%)
Return on CET1 capital (%)
Underlying return on CET1 capital (%)
Common equity tier 1 capital: 2Q25 vs 1Q25
During the second quarter of 2025, 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 DTAs 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
w
as an equal reduction in the capital reserve for expected future share repurchases.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Group performance 16
Return on common equity tier 1 capital: 2Q25 vs 2Q24
The annualized return on CET1 capital was 13.5%, compared with 5.9%. On an underlying basis, the return on
CET1 capital was 15.3%, compared with 8.4%. These increases were driven by an increase in net profit attributable
to shareholders and a decrease in average CET1 capital.
Risk-weighted assets: 2Q25 vs 1Q25
During the second quarter of 2025, RWA increased by USD 21.2bn to USD 504.5bn, driven by an USD 18.6bn
increase in currency effects and a USD 3.0bn increase resulting from asset size and other movements, partly offset
by a USD 0.3bn decrease resulting from model updates and methodology changes.
Common equity tier 1 capital ratio: 2Q25 vs 1Q25
Our CET1 capital ratio increased to 14.4% from 14.3%, reflecting a USD 3.6bn increase in CET1 capital, partly
offset by a USD 21.2bn increase in RWA.
Leverage ratio denominator: 2Q25 vs 1Q25
The leverage ratio denominator (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.
Common equity tier 1 leverage ratio: 2Q25 vs 1Q25
Our CET1 leverage ratio was stable at 4.4%, reflecting a USD 96.5bn increase in the LRD, offset by a USD 3.6bn
increase in CET1 capital.
Results 6M25 vs 6M24
Operating profit before tax increased by USD 481m, or 13%, to USD 4,325m. Total revenues increased by USD 26m
and included a decrease of USD 389m in accretion impacts resulting from PPA adjustments on financial instruments
and other PPA effects. Operating expenses decreased by USD 517m, including a USD 412m decrease in integration-
related expenses. Net credit loss expenses were USD 263m, compared with USD 201m in the first six months of
2024.
Total combined net interest income and other net income from financial instruments measured at fair value through
profit or loss decreased by USD 401m to USD 10,940m and included a decrease of USD 168m in accretion impacts
resulting from PPA adjustments on financial instruments and other PPA effects, largely reflected in a USD 189m
decrease in net interest income in Global Wealth Management. The overall decrease of USD 225m in Global Wealth
Management revenues was also driven by lower loan revenues, reflecting margin contraction, and lower deposit
revenues due to lower central bank interest rates, partly offset by the effects of balance sheet optimization
measures, higher deposit volumes and positive foreign currency effects. Personal & Corporate Banking revenues
decreased by USD 256m, mainly driven by lower central bank interest rates affecting deposit revenues, partly
mitigated by pricing measures. Investment Bank revenues increased by USD 838m, mainly due to an increase in
Derivatives & Solutions revenues that resulted from increased volatility and higher levels of client activity. In addition,
there were higher revenues in Financing, driven by higher client balances. These increases were partly offset by
lower revenues in Global Banking, which mainly resulted from lower volumes in Leveraged Capital Markets. Non-
core and Legacy revenues decreased by USD 1,139m, mainly due to lower net gains from position exits and lower
net interest income from securitized products and credit products, partly offset by lower liquidity and funding costs.
Revenues in the first six months of 2024 also included a net gain of USD 272m from the conclusion of agreements
with Apollo relating to the former Credit Suisse securitized products group. Revenues in Group Items were negative
USD 437m, compared with negative USD 823m in the first six months of 2024, and included lower mark-to-market
losses from Group hedging and own debt, including hedge accounting ineffectiveness, within Group Treasury.
Net fee and commission income increased by USD 462m to USD 13,485m and included a decrease of USD 282m
in accretion of PPA adjustments on financial instruments and other PPA effects, which was reflected in other fee
and commission income. Investment fund fees increased by USD 485m and fees for portfolio management and
related services increased by USD 148m, both mainly in Global Wealth Management, mainly due to higher average
levels of fee-generating assets, reflecting positive market performance and net new fee-generating asset inflows.
Net brokerage fees increased by USD 367m due to higher levels of client activity in Global Wealth Management
and in Execution Services in the Investment Bank, due to higher volumes. M&A and corporate finance fees
d
ecreased by USD 60m, predominantly in our Global Banking business within the Investment Bank.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Group performance 17
Other income was USD 243m compared with USD 278m in the first six months of 2024. Revenues included losses
of USD 62m recognized on repurchases of UBS’s own debt instruments, compared with gains of USD 26m in the
first six months of 2024. In addition, there was a USD 16m net loss relating to an investment in an associate. The
first six months of 2024 also included a USD 28m net gain in Asset Management from the sale of our Brazilian real
estate fund management business. These decreases were partly offset by a USD 97m gain in Non-core and Legacy
related to the sale of Select Portfolio Servicing, the US mortgage servicing business of Credit Suisse, and a USD 64m
gain in Personal & Corporate Banking related to the Swisscard transactions.
Personnel expenses decreased by USD 60m to USD 14,008m, attributable to a decrease in salary expenses,
reflecting the impact of a smaller workforce, and the amortization of awards granted in prior periods, partly offset
by foreign currency effects. These decreases were partly offset by higher accruals for performance awards and a
USD 186m increase in financial advisor compensation resulting from higher compensable revenues.
General and administrative expenses decreased by USD 419m to USD 4,312m, mainly driven by USD 193m lower
consulting, legal and audit fees, USD 140m higher net releases for litigation, regulatory and similar matters, as well
as a USD 126m decrease in outsourcing costs. This was partly offset by a USD 180m expense related to the
Swisscard transactions in Personal & Corporate Banking.
Outlook
The third quarter started with strong market performance in risk assets, particularly international equities, combined
with a weak US dollar. Investor sentiment remains broadly constructive, tempered by persistent macroeconomic
and geopolitical uncertainties. Against this backdrop, our client conversations and deal pipelines indicate a high
level of readiness among investors and corporates to deploy capital, as conviction around the macro outlook
strengthens.
For the third quarter, we expect Global Wealth Management’s net interest income (NII) and Personal & Corporate
Banking’s NII in Swiss francs to be broadly stable. In US dollar terms, this translates to a sequential low single-digit
percentage increase.
We also expect trading and transactional activity to reflect more normalized seasonal patterns and activity levels
compared to the same quarter a year ago, particularly in Global Wealth Management’s transaction-based revenues
and the Investment Bank’s Global Markets performance. Pull-to-par revenues
1
USD 0.4bn, partly mitigating the expected USD 1.1bn in integration-related expenses.
We remain focused on actively engaging with our clients, helping them to navigate a complex environment while
executing on our growth and integration plans. We are confident in our ability to deliver on our 2025 and 2026
financial targets, leveraging the power of our diversified business model.
1
Pull-to-par revenues are revenues recognized when fair value reductions taken on financial instruments acquired as part of the Credit Suisse transaction through the required purchase price allocation (PPA) unwind
as the instruments approach their maturity.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Global Wealth Management 18
Global Wealth Management
Global Wealth Management
As of or for the quarter ended
% change from
Year-to-date
USD m, except where indicated
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Results
Net interest income
Recurring net fee income
1
Transaction-based income
1
Other income
Total revenues
Credit loss expense / (release)
Operating expenses
Business division operating profit / (loss) before tax
Underlying results
Total revenues as reported
of which: PPA effects and other integration items
2
of which: PPA effects recognized in net interest income
of which: PPA effects and other integration items recognized in transaction-based income
of which: gain / (loss) related to an investment in an associate
Total revenues (underlying)
1
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses and PPA effects
1,3
Operating expenses (underlying)
1
of which: expenses for litigation, regulatory and similar matters
Business division operating profit / (loss) before tax as reported
Business division operating profit / (loss) before tax (underlying)
1
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
Cost / income ratio (%)
1
Average attributed equity (USD bn)
4
Return on attributed equity (%)
1,4
Financial advisor compensation
5
Net new fee-generating assets (USD bn)
1
Fee-generating assets (USD bn)
1
Net new assets (USD bn)
1
Net new assets growth rate (%)
1
Invested assets (USD bn)
1
Net new loans (USD bn)
1
Loans, gross (USD bn)
6
Net new deposits (USD bn)
1
Customer deposits (USD bn)
6
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,7
Advisors (full-time equivalents)
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
1
Cost / income ratio (%)
1
Return on attributed equity (%)
1,4
1 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. 2 Includes accretion of PPA adjustments on financial instruments and other PPA effects, as
well as temporary and incremental items directly related to the integration. 3 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of intangibles resulting
from the acquisition of the Credit Suisse Group. 4 Refer to the “Equity attribution” section of this report for more information about the equity attribution framework. 5 Relates to licensed professionals with the
ability to provide investment advice to clients in the Americas. Consists of cash compensation, determined using a formulaic approach based on production, and deferred awards. Also includes expenses related to
compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements. Recruitment loans to financial advisors were USD 1,579m as of 30 June 2025.
6 Loans and Customer deposits in this table include customer brokerage receivables and payables, respectively, which are presented in separate reporting lines on the balance sheet. 7 Refer to the “Risk management
and control” section of this report for more information about (credit-)impaired exposures. Excludes loans to financial advisors.
Results: 2Q25 vs 2Q24
Profit before tax increased by USD 333m, or 38%, to USD 1,204m, mainly due to higher total revenues and lower
operating expenses. Underlying profit before tax was USD 1,443m, an increase of 24%, after excluding from
operating expenses USD 383m of integration-related expenses and purchase price allocation (PPA) effects and
excluding from total revenues USD 153m of PPA effects and other integration items and an USD 8m loss related to
an investment in an associate.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Global Wealth Management 19
Total revenues
Total revenues increased by USD 247m, or 4%, to USD 6,300m, largely driven by higher recurring net fee income
and transaction-based income, partly offset by lower net interest income, and included an USD 80m decrease in
PPA effects and other integration items. Excluding USD 153m of PPA effects and other integration items and an
USD 8m loss related to an investment in an associate, underlying total revenues were USD 6,156m, an increase of
6%.
Net interest income decreased by USD 120m, or 7%, to USD 1,705m, and included a USD 92m decrease in
accretion of PPA adjustments on financial instruments and other PPA effects. The remaining variance was largely
driven by lower loan revenues, reflecting margin contraction, and lower deposit revenues due to lower central bank
interest rates. The variance also included a change to our segmentation approach that was implemented in February
2025 and led to a shift of some affluent clients to Personal & Corporate Banking. The decrease was partly offset by
the effects of higher deposit volumes, positive foreign currency effects and balance sheet optimization measures.
Excluding PPA effects of USD 148m, underlying net interest income was USD 1,557m, a decrease of 2%.
Recurring net fee income increased by USD 247m, or 8%, to USD 3,351m, mainly driven by higher average levels
of fee-generating assets, reflecting positive market performance and net new fee-generating asset inflows.
Transaction-based income increased by USD 131m, or 12%, to USD 1,236m, mainly driven by higher levels of client
activity across all regions. Excluding PPA effects of USD 5m, underlying transaction-based income was USD 1,232m,
an increase of 11%.
Other income decreased by USD 12m to USD 7m and included a loss of USD 8m related to an investment in an
associate. Excluding the aforementioned loss, underlying other income was USD 15m.
Credit loss expense / release
Net credit loss expenses were USD 3m, compared with net credit loss releases of USD 1m in the second quarter of
2024.
Operating expenses
Operating expenses decreased by USD 90m, or 2%, to USD 5,093m and included a USD 140m decrease in
integration-related expenses. Excluding USD 383m of integration-related expenses and PPA effects, underlying
operating expenses were USD 4,710m, an increase of 1%, mainly driven by unfavorable foreign currency effects
and higher financial advisor compensation reflecting an increase in compensable revenues.
Invested assets: 2Q25 vs 1Q25
Invested assets increased by USD 294bn to USD 4,512bn, mainly driven by positive market performance of
USD 177.8bn, foreign currency effects of USD 96.8bn and net new asset inflows of USD 23.3bn.
Loans: 2Q25 vs 1Q25
Loans increased by USD 18.2bn to USD 318.3bn, mainly driven by positive foreign currency effects and positive net
new loans of USD 3.4bn.
›
Refer to the “Risk management and control” section of this report for more information
Customer deposits: 2Q25 vs 1Q25
Customer deposits increased by USD 24.4bn to USD 488.8bn, mainly driven by positive foreign currency effects
and net new deposit inflows of USD 9.0bn.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Global Wealth Management 20
Results: 6M25 vs 6M24
Profit before tax increased by USD 591m, or 30%, to USD 2,563m, mainly due to higher total revenues and lower
operating expenses. Underlying profit before tax was USD 2,988m, an increase of 23%, after excluding from
operating expenses USD 739m of integration-related expenses and PPA effects and excluding from total revenues
USD 318m of PPA effects and other integration items and a USD 5m loss related to an investment in an associate.
Total revenues increased by USD 526m, or 4%, to USD 12,722m, largely driven by higher recurring net fee income
and transaction-based income, partly offset by lower net interest income, and included a USD 149m decrease in
PPA effects and other integration items. Excluding USD 318m of PPA effects and other integration items and a
USD 5m loss related to an investment in an associate, underlying total revenues were USD 12,408m, an increase
of 6%.
Net interest income decreased by USD 285m, or 8%, to USD 3,413m, and included a USD 190m decrease in
accretion of PPA adjustments on financial instruments and other PPA effects. The remaining variance was largely
driven by lower loan revenues, reflecting margin contraction, and lower deposit revenues due to lower central bank
interest rates. The variance also included a change to our segmentation approach that was implemented in February
2025 and led to a shift of some affluent clients to Personal & Corporate Banking. The decrease was partly offset by
the effects of balance sheet optimization measures, higher deposit volumes and positive foreign currency effects.
Excluding PPA effects of USD 307m, underlying net interest income was USD 3,106m, a decrease of 3%.
Recurring net fee income increased by USD 502m, or 8%, to USD 6,630m, mainly driven by higher average levels
of fee-generating assets, reflecting positive market performance and net new fee-generating asset inflows.
Transaction-based income increased by USD 347m, or 15%, to USD 2,664m, mainly driven by higher levels of client
activity across all regions. Excluding PPA effects of USD 11m, underlying transaction-based income was
USD 2,653m, an increase of 13%.
Other income decreased by USD 38m to USD 15m and included a net loss of USD 5m related to an investment in
an associate. Excluding the aforementioned loss, underlying other income was USD 19m.
Net credit loss expenses were USD 9m, compared with net credit loss releases of USD 4m in the first half of 2024.
Operating expenses decreased by USD 78m, or 1%, to USD 10,150m and included a USD 189m decrease in
integration-related expenses. Excluding USD 739m of integration-related expenses and PPA effects, underlying
operating expenses were USD 9,411m, an increase of 1%, mainly driven by unfavorable foreign currency effects
and higher financial advisor compensation reflecting an increase in compensable revenues.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Global Wealth Management 21
Regional breakdown of performance measures
As of or for the quarter ended 30.6.25
USD m, except where indicated
Americas
1
Asia Pacific
EMEA
Switzerland
Divisional items
2
Global Wealth
Management
Net interest income
Recurring net fee income
3
Transaction-based income
3
Other income
Total revenues
Credit loss expense / (release)
Operating expenses
Operating profit / (loss) before tax
of which: PPA effects, integration-related items and other items
4
Cost / income ratio (%)
3
Net new fee-generating assets (USD bn)
3
Fee-generating assets (USD bn)
3
Net new assets (USD bn)
3
Net new assets growth rate (%)
3
Invested assets (USD bn)
3
Net new loans (USD bn)
3
Loans, gross (USD bn)
5
Net new deposits (USD bn)
3
Customer deposits (USD bn)
5
Advisors (full-time equivalents)
As of or for the quarter ended 30.6.24
USD m, except where indicated
Americas
1
Asia Pacific
EMEA
Switzerland
Divisional items
2
Global Wealth
Management
Net interest income
Recurring net fee income
3
Transaction-based income
3
Other income
Total revenues
Credit loss expense / (release)
Operating expenses
Operating profit / (loss) before tax
of which: PPA effects, integration-related items and other items
4
Cost / income ratio (%)
3
Net new fee-generating assets (USD bn)
3
Fee-generating assets (USD bn)
3
Net new assets (USD bn)
3
Net new assets growth rate (%)
3
Invested assets (USD bn)
3
Net new loans (USD bn)
3
Loans, gross (USD bn)
5
Net new deposits (USD bn)
3
Customer deposits (USD bn)
5
Advisors (full-time equivalents)
1 Including the following business units: United States and Canada; and Latin America. 2 Includes impacts from accretion of purchase price allocation (PPA) adjustments on financial instruments and other PPA
effects, integration-related expenses, certain gains and losses including from investments in associates, referral payments from and to Personal & Corporate Banking from client shifts, impacts from agreements with
certain clients, and impacts from minor functions which are not included in the four regions individually presented in this table. 3 Refer to “Alternative performance measures” in the appendix to this report for the
definition and calculation method. 4 Items of profit or loss that management believes are not representative of the underlying performance, namely impacts from accretion of purchase price allocation adjustments
on financial instruments and other PPA effects, integration-related expenses, amortization of intangibles resulting from the acquisition of the Credit Suisse Group, and certain gains and losses from investments in
associates. 5 Loans and Customer deposits in this table include customer brokerage receivables and payables, respectively, which are presented in separate reporting lines on the balance sheet.
Regional comments 2Q25 vs 2Q24, except where indicated
Americas
Profit before tax increased by USD 117m to USD 364m. Total revenues increased by USD 168m, or 6%, to
USD 2,929m, mainly driven by increases of USD 124m in recurring net fee income, USD 23m in net interest income
and USD 18m in transaction-based income. Operating expenses increased by USD 51m, or 2%, to USD 2,561m.
The cost / income ratio decreased to 87.4% from 90.9%. Loans increased by 2% compared with the first quarter
of 2025, to USD 100.4bn, mainly driven by positive net new loans of USD 1.9bn. Customer deposits were broadly
stable compared with the first quarter of 2025, at USD 114.1bn, with net new deposit inflows of USD 0.2bn. Net
new asset outflows were USD 3.5bn.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Global Wealth Management 22
Asia Pacific
Profit before tax increased by USD 38m to USD 348m. Total revenues increased by USD 44m, or 5%, to USD 947m,
mainly driven by increases of USD 46m in transaction-based income and USD 28m in recurring net fee income,
partly offset by a USD 19m decrease in net interest income. Operating expenses were broadly stable at USD 598m.
The cost / income ratio decreased to 63.2% from 66.0%. Loans increased by 3% compared with the first quarter
of 2025, to USD 44.7bn, mainly driven by positive foreign currency effects and by positive net new loans of
USD 0.2bn. Customer deposits increased by 3% compared with the first quarter of 2025, to USD 122.9bn, with
net new deposit inflows of USD 4.8bn. Net new asset inflows were USD 11.1bn.
EMEA
Profit before tax increased by USD 92m to USD 394m. Total revenues increased by USD 75m, or 6%, to
USD 1,234m, mainly driven by increases of USD 48m in recurring net fee income and USD 44m in transaction-
based income, partly offset by a USD 21m decrease in net interest income. Operating expenses decreased by
USD 17m, or 2%, to USD 839m. The cost / income ratio decreased to 68.0% from 73.8%. Loans increased by 5%
compared with the first quarter of 2025, to USD 63.2bn, mainly driven by positive net new loans of USD 2.2bn and
positive foreign currency effects. Customer deposits increased by 5% compared with the first quarter of 2025, to
USD 117.6bn, mainly driven by net new deposit inflows of USD 4.5bn and by positive foreign currency effects. Net
new asset inflows were USD 9.1bn.
Switzerland
Profit before tax increased by USD 31m to USD 353m. Total revenues increased by USD 46m to USD 1,049m, mostly
driven by increases of USD 45m in recurring net fee income and USD 17m in transaction-based income. Operating
expenses increased by USD 15m, or 2%, to USD 698m. The cost / income ratio decreased to 66.5% from 68.1%.
Loans increased by 12% compared with the first quarter of 2025, to USD 108.8bn, mainly driven by positive foreign
currency effects, partly offset by negative net new loans of USD 0.7bn. Customer deposits increased by 11%
compared with the first quarter of 2025, to USD 130.0bn, mainly driven by positive foreign currency effects. Net
new asset inflows were USD 7.0bn.
Divisional items
Operating loss before tax was USD 256m and mainly included USD 383m of integration-related expenses and PPA
effects, impacts from agreements with certain clients, and a loss of USD 8m related to an investment in an associate,
partly offset by the aforementioned USD 153m related to PPA effects and other integration items.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Personal & Corporate Banking 23
Personal & Corporate Banking
Personal & Corporate Banking – in Swiss francs
As of or for the quarter ended
% change from
Year-to-date
CHF m, except where indicated
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Results
Net interest income
Recurring net fee income
1
Transaction-based income
1
Other income
Total revenues
Credit loss expense / (release)
Operating expenses
Business division operating profit / (loss) before tax
Underlying results
Total revenues as reported
of which: PPA effects and other integration items
2
of which: PPA effects recognized in net interest income
of which: PPA effects and other integration items recognized in transaction-based income
of which: gain / (loss) related to an investment in an associate
of which: items related to the Swisscard transactions
3
Total revenues (underlying)
1
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses and PPA effects
1,4
of which: items related to the Swisscard transactions
5
Operating expenses (underlying)
1
of which: expenses for litigation, regulatory and similar matters
Business division operating profit / (loss) before tax as reported
Business division operating profit / (loss) before tax (underlying)
1
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
Cost / income ratio (%)
1
Average attributed equity (CHF bn)
6
Return on attributed equity (%)
1,6
Net interest margin (bps)
1
Loans, gross (CHF bn)
Customer deposits (CHF bn)
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,7
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
1
Cost / income ratio (%)
1
Return on attributed equity (%)
1,6
1 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. 2 Includes accretion of PPA adjustments on financial instruments and other PPA effects, as
well as temporary and incremental items directly related to the integration. 3 Represents the gain related to UBS’s share of income recorded by Swisscard for the sale of the Credit Suisse card portfolios to UBS.
4 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of intangibles resulting from the acquisition of the Credit Suisse Group. 5 For the first quarter of 2025
this represents the expense related to the payment to Swisscard for the sale of the Credit Suisse card portfolios to UBS. 6 Refer to the “Equity attribution” section of this report for more information about the equity
attribution framework. 7 Refer to the “Risk management and control” section of this report for more information about (credit-)impaired exposures.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Personal & Corporate Banking 24
Results
:
2Q25 vs 2Q24
Profit before tax decreased by CHF 137m, or 19%, to CHF 566m, mainly reflecting lower total revenues, partly
offset by lower operating expenses. Underlying profit before tax was CHF 557m, a decrease of 14%, mainly driven
by lower net interest income, resulting from lower market interest rates. This underlying profit excludes from total
revenues CHF 222m of purchase price allocation (PPA) effects and other integration items and a loss of CHF 18m
related to an investment in an associate; it also excludes from operating expenses CHF 195m of integration-related
expenses and PPA effects.
Total revenues
Total revenues decreased by CHF 161m, or 8%, to CHF 1,900m, mainly due to lower net interest income and other
income, and included a CHF 1m decrease in PPA effects and other integration items. Total revenues in the second
quarter of 2025 also included a loss of CHF 18m related to an investment in an associate. Excluding CHF 222m of
PPA effects and other integration items and the aforementioned loss, underlying total revenues were CHF 1,696m,
a decrease of 8%.
Net interest income decreased by CHF 114m, or 9%, to CHF 1,111m, mainly driven by lower central bank interest
rates affecting deposit revenues, partly mitigated by pricing measures, lower liquidity and funding costs, and higher
loan revenues. Net interest income also included a CHF 4m increase in accretion of PPA adjustments on financial
instruments and other PPA effects. Excluding PPA effects of CHF 205m, underlying net interest income was
CHF 907m, a decrease of 11%.
Recurring net fee income was stable at CHF 357m, largely due to higher custody asset levels, mainly reflecting net
new inflows and positive market performance, offset by the effect from a reclassification of recurring net fee income
to transaction-based income as a result of aligning Credit Suisse presentation to that of UBS in the second half of
2024.
Transaction-based income was broadly stable at CHF 459m, as lower corporate client revenues were offset by the
positive impact from the aforementioned reclassification, and included a CHF 5m decrease in accretion of PPA
adjustments on financial instruments and other PPA effects. Excluding CHF 17m of PPA effects and other integration
items, underlying transaction-based income was also largely stable at CHF 442m.
Other income was negative CHF 28m, compared with positive CHF 16m, and included a loss of CHF 18m related
to an investment in an associate. Excluding this loss, underlying other income was negative CHF 10m.
Credit loss expense / release
Net credit loss expenses were CHF 91m and mainly reflected net expenses on credit-impaired positions. Net credit
loss expenses in the prior-year quarter were CHF 92m.
Operating expenses
Operating expenses decreased by CHF 23m, or 2%, to CHF 1,243m and included a CHF 30m increase in
integration-related expenses. Excluding CHF 195m of integration-related expenses and PPA effects, underlying
operating expenses were CHF 1,048m, a decrease of 5%, mainly driven by lower personnel expenses, including
lower variable compensation.
Results
:
6M25 vs 6M24
Profit before tax decreased by CHF 451m, or 29%, to CHF 1,111m, mainly reflecting lower total revenues and
higher operating expenses. Underlying profit before tax was CHF 1,154m, a decrease of 19%, predominantly driven
by lower net interest income, resulting from lower market interest rates. This underlying profit excludes from total
revenues CHF 438m of PPA effects and other integration items, a gain of CHF 58m related to the Swisscard
transactions, and a net loss of CHF 8m related to an investment in an associate; it also excludes from operating
expenses CHF 367m of integration-related expenses and PPA effects and a CHF 164m expense related to the
Swisscard transactions.
Total revenues decreased by CHF 312m, or 7%, to CHF 3,889m, predominantly due to lower net interest income,
and included an CHF 11m decrease in PPA effects and other integration items. Total revenues in the first half of
2025 also included a gain of CHF 58m related to the Swisscard transactions and a net loss of CHF 8m related to an
investment in an associate. Excluding CHF 438m of PPA effects and other integration items and the aforementioned
g
ain and a net loss, underlying total revenues were CHF 3,401m, a decrease of 9%.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Personal & Corporate Banking 25
Net interest income decreased by CHF 331m, or 13%, to CHF 2,226m, mainly driven by lower central bank interest
rates affecting deposit revenues, partly mitigated by pricing measures. Net interest income also included a CHF 17m
decrease in accretion of PPA adjustments on financial instruments and other PPA effects. Excluding PPA effects of
CHF 396m, underlying net interest income was CHF 1,829m, a decrease of 15%.
Recurring net fee income increased by CHF 10m, or 1%, to CHF 715m, largely due to higher custody asset levels,
mainly reflecting net new inflows and positive market performance, partly offset by the effect from a reclassification
of recurring net fee income to transaction-based income as a result of aligning Credit Suisse presentation to that
of UBS in the second half of 2024.
Transaction-based income was stable at CHF 911m, as lower corporate client revenues were offset by the positive
impact from the aforementioned reclassification, and included a CHF 6m increase in accretion of PPA adjustments
on financial instruments and other PPA effects. Excluding CHF 42m of PPA effects and other integration items,
underlying transaction-based income was broadly stable at CHF 869m.
Other income increased by CHF 11m to CHF 38m, mainly reflecting a gain of CHF 58m related to the Swisscard
transactions and a net loss of CHF 8m related to an investment in an associate. Excluding these items, underlying
other income was negative CHF 12m.
Net credit loss expenses were CHF 139m and mainly reflected net expenses on credit-impaired positions, primarily
in the legacy Credit Suisse corporate loan book. Net credit loss expenses in the prior-year period were CHF 132m.
Operating expenses increased by CHF 131m, or 5%, to CHF 2,638m, largely due to a CHF 164m expense related
to the Swisscard transactions, and included a CHF 61m increase in integration-related expenses. Excluding
CHF 367m of integration-related expenses and PPA effects and the aforementioned expense of CHF 164m,
underlying operating expenses were CHF 2,108m, a decrease of 4%, mainly driven by lower personnel expenses,
including lower variable compensation.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Personal & Corporate Banking 26
Personal & Corporate Banking – in US dollars
As of or for the quarter ended
% change from
Year-to-date
USD m, except where indicated
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Results
Net interest income
Recurring net fee income
1
Transaction-based income
1
Other income
Total revenues
Credit loss expense / (release)
Operating expenses
Business division operating profit / (loss) before tax
Underlying results
Total revenues as reported
of which: PPA effects and other integration items
2
of which: PPA effects recognized in net interest income
of which: PPA effects and other integration items recognized in transaction-based income
of which: gain / (loss) related to an investment in an associate
of which: items related to the Swisscard transactions
3
Total revenues (underlying)
1
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses and PPA effects
1,4
of which: items related to the Swisscard transactions
5
Operating expenses (underlying)
1
of which: expenses for litigation, regulatory and similar matters
Business division operating profit / (loss) before tax as reported
Business division operating profit / (loss) before tax (underlying)
1
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
Cost / income ratio (%)
1
Average attributed equity (USD bn)
6
Return on attributed equity (%)
1,6
Net interest margin (bps)
1
Loans, gross (USD bn)
Customer deposits (USD bn)
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,7
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
1
Cost / income ratio (%)
1
Return on attributed equity (%)
1,6
1 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. 2 Includes accretion of PPA adjustments on financial instruments and other PPA effects, as
well as temporary and incremental items directly related to the integration. 3 Represents the gain related to UBS’s share of income recorded by Swisscard for the sale of the Credit Suisse card portfolios to UBS.
4 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of intangibles resulting from the acquisition of the Credit Suisse Group. 5 For the first quarter of 2025
this represents the expense related to the payment to Swisscard for the sale of the Credit Suisse card portfolios to UBS. 6 Refer to the “Equity attribution” section of this report for more information about the equity
attribution framework. 7 Refer to the “Risk management and control” section of this report for more information about (credit-)impaired exposures.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Asset Management 27
Asset Management
Asset Management
As of or for the quarter ended
% change from
Year-to-date
USD m, except where indicated
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Results
Net management fees
1
Performance fees
Net gain from disposals
Total revenues
Credit loss expense / (release)
Operating expenses
Business division operating profit / (loss) before tax
Underlying results
Total revenues as reported
Total revenues (underlying)
2
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses
2
Operating expenses (underlying)
2
of which: expenses for litigation, regulatory and similar matters
Business division operating profit / (loss) before tax as reported
Business division operating profit / (loss) before tax (underlying)
2
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
2
Cost / income ratio (%)
2
Average attributed equity (USD bn)
3
Return on attributed equity (%)
2,3
Gross margin on invested assets (bps)
2
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
2
Cost / income ratio (%)
2
Return on attributed equity (%)
2,3
Information by business line / asset class
Net new money (USD bn)
2
Equities
Fixed Income
of which: money market
Multi-asset & Solutions
Hedge Fund Businesses
Real Estate & Private Markets
Total net new money excluding associates
of which: net new money excluding money market
Associates
4
Total net new money
Invested assets (USD bn)
2
Equities
Fixed Income
of which: money market
Multi-asset & Solutions
Hedge Fund Businesses
Real Estate & Private Markets
Total invested assets excluding associates
of which: passive strategies
Associates
4
Total invested assets
U
BS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Asset Management 28
Asset Management (continued)
As of or for the quarter ended
% change from
Year-to-date
USD m, except where indicated
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Information by region
Invested assets (USD bn)
2
Americas
Asia Pacific
5
EMEA (excluding Switzerland)
Switzerland
Total invested assets
Information by channel
Invested assets (USD bn)
2
Third-party institutional
Third-party wholesale
UBS’s wealth management businesses
Associates
4
Total invested assets
1 Net management fees include transaction fees, fund administration revenues (including net interest and trading income from lending activities and foreign-exchange hedging as part of the fund services offering),
distribution fees, incremental fund-related expenses, gains or losses from seed money and co-investments, funding costs, the negative pass-through impact of third-party performance fees, and other items that are
not Asset Management’s performance fees. 2 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. 3 Refer to the “Equity attribution” section of
this report for more information about the equity attribution framework. 4 The invested assets and net new money amounts reported for associates are prepared in accordance with their local regulatory requirements
and practices. 5 Includes invested assets from associates.
Results: 2Q25 vs 2Q24
Profit before tax increased by USD 23m, or 18%, to USD 153m, mainly due to lower operating expenses. Underlying
profit before tax was USD 216m, a decrease of 5%, after excluding integration-related expenses of USD 63m.
Total revenues
Total revenues increased by USD 4m to USD 772m, reflecting increases in net management fees and performance
fees, largely offset by the second quarter of 2024 including USD 28m of net gains from disposals.
Net management fees increased by USD 22m, or 3%, to USD 733m, largely driven by positive foreign currency
effects and positive market performance, partly offset by continued margin compression.
Performance fees increased by USD 11m, or 36%, to USD 39m, mainly due to increases in Hedge Fund Businesses,
partly offset by decreases in the Fixed Income business.
Operating expenses
Operating expenses decreased by USD 20m, or 3%, to USD 618m and included a USD 35m decrease in integration-
related expenses. Excluding integration-related expenses of USD 63m, underlying operating expenses were
USD 555m, an increase of 3%, mainly due to unfavorable foreign currency effects.
Invested assets: 2Q25 vs 1Q25
Invested assets increased by USD 156bn to USD 1,952bn, reflecting positive foreign currency effects of USD 96bn
and positive market performance of USD 62bn, partly offset by negative net new money of USD 2bn. Excluding
money market flows and associates, net new money was negative USD 5bn.
Results: 6M25 vs 6M24
Profit before tax increased by USD 48m, or 20%, to USD 289m, mainly due to lower operating expenses, partly
offset by lower total revenues. Underlying profit before tax was USD 424m, an increase of 4%, after excluding
integration-related expenses of USD 135m.
Total revenues decreased by USD 30m, or 2%, to USD 1,513m, primarily due to the first half of 2024 including
USD 28m of net gains from disposals.
Net management fees decreased by USD 10m, or 1%, to USD 1,446m, largely driven by margin compression, partly
offset by positive market performance and foreign currency effects.
Performance fees increased by USD 10m, or 17%, to USD 69m, mainly due to increases in Hedge Fund Businesses,
partly offset by decreases in the Real Estate business.
Operating expenses decreased by USD 79m, or 6%, to USD 1,224m and included a USD 34m decrease in
integration-related expenses. Excluding integration-related expenses of USD 135m, underlying operating expenses
were USD 1,088m, a decrease of 4%, reflecting decreases in non-personnel and personnel expenses.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Investment Bank 29
Investment Bank
Investment Bank
As of or for the quarter ended
% change from
Year-to-date
USD m, except where indicated
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Results
Advisory
Capital Markets
Global Banking
Execution Services
Derivatives & Solutions
Financing
Global Markets
of which: Equities
of which: Foreign Exchange, Rates and Credit
Total revenues
Credit loss expense / (release)
Operating expenses
Business division operating profit / (loss) before tax
Underlying results
Total revenues as reported
of which: PPA effects
1
of which: PPA effects recognized in Global Banking revenue line
Total revenues (underlying)
2
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses
2
Operating expenses (underlying)
2
of which: expenses for litigation, regulatory and similar matters
Business division operating profit / (loss) before tax as reported
Business division operating profit / (loss) before tax (underlying)
2
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
2
n.m.
Cost / income ratio (%)
2
Average attributed equity (USD bn)
3
Return on attributed equity (%)
2,3
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
2
n.m.
Cost / income ratio (%)
2
Return on attributed equity (%)
2,3
1
Includes accretion of PPA adjustments on financial instruments and other PPA effects. 2 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method.
3 Refer to the “Equity attribution” section of this report for more information about the equity attribution framework.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Investment Bank 30
Results: 2Q25 vs 2Q24
Profit before tax increased by USD 80m, or 17%, to USD 557m, mainly due to higher total revenues, partly offset
by higher net credit loss expenses and operating expenses. Underlying profit before tax was USD 526m, an increase
of 28%, after excluding USD 152m of purchase price allocation (PPA) effects and USD 121m of integration-related
expenses.
Total revenues
Total revenues increased by USD 163m, or 6%, to USD 2,966m, due to higher revenues in Global Markets, partly
offset by lower revenues in Global Banking, and included an overall USD 158m decrease in PPA effects. Excluding
these effects, underlying total revenues were USD 2,815m, an increase of 13%, including positive foreign currency
effects.
Global Banking
Global Banking revenues decreased by USD 293m, or 30%, to USD 681m, mainly driven by Capital Markets
revenues, and included a USD 146m decrease in accretion of PPA adjustments on financial instruments and other
PPA effects. Excluding such accretion and other effects, underlying Global Banking revenues were USD 521m, a
decrease of 22%.
Advisory revenues decreased by USD 47m, or 19%, to USD 192m, driven by lower private-fund activity levels and
a decrease in merger and acquisition transaction revenues.
Capital Markets revenues decreased by USD 248m, or 34%, to USD 488m, and included a USD 146m decrease in
accretion of PPA adjustments on financial instruments and other PPA effects. Excluding such accretion and other
effects, underlying Capital Markets revenues decreased by USD 101m, or 24%, largely driven by lower Leveraged
Capital Markets revenues as sponsor activity sharply reduced and due to markdowns on positions.
Global Markets
Global Markets revenues increased by USD 457m, or 25%, to USD 2,286m, driven by higher Derivatives &
Solutions, Financing and Execution Services revenues.
Execution Services revenues increased by USD 96m, or 24%, to USD 501m, mainly driven by higher Cash Equities
revenues across all regions, on higher volumes.
Derivatives & Solutions revenues increased by USD 218m, or 24%, to USD 1,115m, with higher Foreign Exchange,
Rates and Equity Derivatives revenues, mainly due to elevated volatility and higher levels of client activity.
Financing revenues increased by USD 144m, or 27%, to USD 670m, with increases in all products, led by Prime
Brokerage, supported by higher client balances.
Equities
Global Markets Equities revenues increased by USD 264m, or 20%, to USD 1,619m, mainly driven by higher
revenues in Cash Equities, Prime Brokerage and Equity Derivatives.
Foreign Exchange, Rates and Credit
Global Markets Foreign Exchange, Rates and Credit revenues increased by USD 193m, or 41%, to USD 667m,
mainly driven by increases in Foreign Exchange revenues.
Credit loss expense / release
Net credit loss expenses were USD 48m, compared with net credit loss releases of USD 6m in the second quarter
of 2024.
Operating expenses
Operating expenses increased by USD 29m, or 1%, to USD 2,361m,
and included a USD 124m decrease in
integration-related expenses. Excluding integration-related expenses of USD 121m, underlying operating expenses
were USD 2,241m, an increase of 7%, mainly due to higher personnel expenses and unfavorable foreign currency
effects.
Results: 6M25 vs 6M24
Profit before tax increased by USD 247m, or 24%, to USD 1,279m, mainly due to higher total revenues, partly
offset by higher operating expenses and net credit loss expenses. Underlying profit before tax was USD 1,222m, an
i
ncrease of 50%, after excluding USD 290m of PPA effects and USD 233m of integration-related expenses.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Investment Bank 31
Total revenues increased by USD 595m, or 11%, to USD 6,149m, due to higher revenues in Global Markets, partly
offset by lower revenues in Global Banking, and included an overall USD 313m decrease in PPA effects. Excluding
these effects, underlying total revenues were USD 5,860m, an increase of 18%.
Global Banking revenues decreased by USD 456m, or 25%, to USD 1,391m, mainly driven by Capital Markets
revenues, and included a USD 288m decrease in accretion of PPA adjustments on financial instruments and other
PPA effects. Excluding such accretion and other effects, underlying Global Banking revenues were USD 1,084m, a
decrease of 13%.
Advisory revenues decreased by USD 14m, or 3%, to USD 414m, mainly due to lower private-fund activity levels,
partly offset by higher merger and acquisition transaction revenues.
Capital Markets revenues decreased by USD 442m, or 31%, to USD 977m, and included a USD 288m decrease in
accretion of PPA adjustments on financial instruments and other PPA effects. Excluding such accretion and other
effects, underlying Capital Markets revenues decreased by USD 153m, or 19%, largely driven by lower Leveraged
Capital Markets revenues as sponsor activity sharply reduced and due to markdowns on positions.
Global Markets revenues increased by USD 1,051m, or 28%, to USD 4,758m, driven by higher Derivatives &
Solutions, Financing and Execution Services revenues.
Execution Services revenues increased by USD 210m, or 26%, to USD 1,017m, mainly driven by higher Cash
Equities revenues across all regions, on higher volumes.
Derivatives & Solutions revenues increased by USD 576m, or 31%, to USD 2,407m, with higher revenues in Foreign
Exchange and Equity Derivatives, mainly due to increased volatility and higher levels of client activity.
Financing revenues increased by USD 265m, or 25%, to USD 1,334m, with increases in all products, led by Prime
Brokerage, supported by higher client balances.
Equities
Global Markets Equities revenues increased by USD 717m, or 26%, to USD 3,425m, mainly driven by higher
revenues in Equity Derivatives, Cash Equities and Prime Brokerage.
Foreign Exchange, Rates and Credit
Global Markets Foreign Exchange, Rates and Credit revenues increased by USD 334m, or 33%, to USD 1,333m,
mainly driven by increases in Foreign Exchange revenues.
Net credit loss expenses were USD 83m, compared with net credit loss expenses of USD 26m in the first half of
2024.
Operating expenses increased by USD 292m, or 6%, to USD 4,788m, and included a USD 154m decrease in
integration-related expenses. Excluding integration-related expenses of USD 233m, underlying operating expenses
were USD 4,555m, an increase of 11%, mainly due to higher personnel expenses.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Non-core and Legacy 32
Non-core and Legacy
Non-core and Legacy
As of or for the quarter ended
% change from
Year-to-date
USD m, except where indicated
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Results
Total revenues
Credit loss expense / (release)
Operating expenses
Operating profit / (loss) before tax
Underlying results
Total revenues as reported
of which: other integration items
Total revenues (underlying)
1
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses
1
Operating expenses (underlying)
1
of which: expenses for litigation, regulatory and similar matters
2
Operating profit / (loss) before tax as reported
Operating profit / (loss) before tax (underlying)
1
Performance measures and other information
Average attributed equity (USD bn)
3
Risk-weighted assets (USD bn)
Leverage ratio denominator (USD bn)
1 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. 2 Includes a USD 427m net release of provisions and contingent liabilities related to the
resolution of a legacy Credit Suisse cross-border matter. Refer to “Note 14 Provisions and contingent liabilities” in the “Consolidated financial statements” section of this report for more information. 3 Refer to the
“Equity attribution” section of this report for more information about the equity attribution framework.
Composition of Non-core and Legacy
Total assets
RWA
LRD
USD bn
30.6.25
31.3.25
30.6.25
31.3.25
30.6.25
31.3.25
Exposure category
Equities
Macro
Loans
Securitized products
Credit
High-quality liquid assets
Operational risk
Other
Total
Results: 2Q25 vs 2Q24
Loss before tax was USD 250m, compared with a loss before tax of USD 405m. Underlying profit before tax was
USD 1m, after excluding integration-related expenses of USD 252m, compared with an underlying loss before tax
of USD 80m.
Total revenues
Total revenues were negative USD 82m, compared with total revenues of USD 401m, mainly reflecting lower net
gains from position exits and lower net interest income from securitized products and credit products, partly offset
by lower liquidity and funding costs, as a result of a smaller portfolio.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Non-core and Legacy 33
Credit loss expense / release
Net credit loss releases were USD 2m, compared with net credit loss releases of USD 1m in the second quarter of
2024.
Operating expenses
Operating expenses were USD 170m, a decrease of USD 637m, or 79%, mainly due to releases in provisions for
litigation, regulatory and similar matters, as well as lower personnel expenses, risk management costs, technology
costs and compliance and regulatory costs, and included a USD 73m decrease in integration-related expenses.
Excluding integration-related expenses of USD 252m, underlying operating expenses were negative USD 83m.
Risk-weighted assets and leverage ratio denominator: 2Q25 vs 1Q25
The active unwinding of Non-core and Legacy assets resulted in a decrease in risk-weighted assets (RWA) and the
leverage ratio denominator (the LRD). RWA decreased by USD 1.5bn to USD 32.7bn, mostly due to decreases in
the loan, securitized product and macro portfolios. The LRD decreased by USD 5.4bn to USD 29.4bn, mainly driven
by reductions in high-quality liquid assets.
Results: 6M25 vs 6M24
Loss before tax was USD 642m, compared with a loss before tax of USD 451m. Underlying loss before tax was
USD 199m, after excluding integration-related expenses of USD 444m, compared with underlying profit before tax
of USD 117m.
Total revenues were USD 202m, a decrease of USD 1,200m, mainly reflecting lower net gains from position exits and
lower net interest income from securitized products and credit products, partly offset by lower liquidity and funding
costs, as a result of a smaller portfolio. Total revenues in the first half of 2025 included a gain of USD 97m from the
sale of Select Portfolio Servicing, the US mortgage servicing business of Credit Suisse. Total revenues in the first half
of 2024 included a net gain of USD 272m, after accounting for the purchase price allocation adjustments recorded at
the closing of the acquisition of the Credit Suisse Group, from the sale of assets from the former Credit Suisse
securitized products group to Apollo Management Holdings and certain other entities (collectively Apollo).
Net credit loss expenses were USD 6m, compared with net credit loss expenses of USD 35m in the first half of 2024.
Operating expenses were USD 838m, a decrease of USD 980m, or 54%, mainly due to releases in provisions for
litigation, regulatory and similar matters, as well as lower personnel expenses, technology costs, risk management
costs, compliance and regulatory costs, premises costs and operations costs, and included a USD 124m decrease in
integration-related expenses. Excluding integration-related expenses of USD 444m, underlying operating expenses
w
ere USD 395m, a decrease of 68%.
UBS Group second quarter 2025 report |
UBS Group performance, business divisions and Group Items | Group Items 34
Group Items
Group Items
As of or for the quarter ended
% change from
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Results
Total revenues
Credit loss expense / (release)
Operating expenses
Operating profit / (loss) before tax
Underlying results
Total revenues as reported
of which: PPA effects and other integration items
1
Total revenues (underlying)
2
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses
2
Operating expenses (underlying)
2
of which: expenses for litigation, regulatory and similar matters
Operating profit / (loss) before tax as reported
Operating profit / (loss) before tax (underlying)
2
1
Includes accretion of PPA adjustments on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration. 2 Refer to “Alternative performance measures”
in the appendix to this report for the definition and calculation method.
Results: 2Q25 vs 2Q24
Loss before tax was USD 167m, mainly driven by deferred tax asset (DTA) funding costs. The USD 210m, or 56%,
decrease in loss before tax between the quarters was largely due to mark-to-market gains from Group hedging and
own debt, compared with mark-to-market losses in the second quarter of 2024. Underlying loss before tax was
USD 188m, after excluding from total revenues USD 17m of purchase price allocation effects and other integration
items and also excluding from operating expenses negative USD 4m of integration-related expenses. This compared
with an underlying loss before tax of USD 371m in the second quarter of 2024.
Income from Group hedging and own debt, including hedge accounting ineffectiveness, was net USD 8m,
compared with net negative income of USD 194m. The flat result in the second quarter of 2025 was due to
offsetting impacts on portfolio-level economic hedges and mark-to-market effects on own credit.
Results: 6M25 vs 6M24
Loss before tax was USD 465m, mainly driven by DTA funding costs, mark-to-market losses from Group hedging
and own debt, and an increase in provisions for litigation, regulatory and similar matters. The USD 233m, or 33%,
decrease in loss before tax between the periods was largely due to lower mark-to-market losses from Group hedging
and own debt, partly offset by an increase in provisions for litigation, regulatory and similar matters. Underlying
loss before tax was USD 513m, after excluding from total revenues USD 47m of purchase price allocation effects
and other integration items and also excluding from operating expenses negative USD 1m of integration-related
expenses. This compared with an underlying loss before tax of USD 687m in the first half of 2024.
Income from Group hedging and own debt, including hedge accounting ineffectiveness, was net negative
USD 110m, compared with net negative income of USD 385m. The losses in the first half of 2025 were driven by
mark-to-market effects on own credit and portfolio-level economic hedges.
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet 35
Risk, capital, liquidity and
funding, and balance sheet
Management report
Table of contents
3
6
Risk management and control
36
Credit risk
38
Market risk
39
Country risk
40
Non-financial risk
41
Capital management
43
Total loss-absorbing capacity
46
Risk-weighted assets
48
Leverage ratio denominator
49
Equity attribution
50
Liquidity and funding management
50
Strategy, objectives and governance
50
Liquidity coverage ratio
50
Net stable funding ratio
51
Balance sheet and off-balance sheet
51
Balance sheet assets
51
Balance sheet liabilities
52
Equity
53
Off-balance sheet
53
Share information and earnings per share
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 36
Risk management and control
This section provides information about key developments during the reporting period and should be read in
conjunction with the “Risk management and control” section of the UBS Group Annual Report 2024, available
under “Annual reporting” at
ubs.com/investors
, and the “Recent developments” section of this report for more
information about the integration of Credit Suisse.
Persistently high geopolitical tensions and trade policy developments marked the second quarter of 2025. While
equity markets recovered from the sharp sell-off at the start of the quarter and volatility eased, significant
uncertainty remains. The further weakening of the US dollar contributed to additional passive increases in reported
exposures from our non-US-dollar-denominated portfolios. We are closely monitoring these developments,
continually assessing portfolio impacts and considering potential mitigating actions.
Credit risk
Overall banking products exposure
Overall banking products exposure increased by USD 68bn compared with 31 March 2025, to USD 1,104bn as of
30 June 2025, primarily reflecting currency effects across banking products, partly offset by outflows in balances at
central banks related to purchases of high-quality liquid asset portfolio securities.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about balance sheet
movements
›
Refer to the “Group performance” section and “Note
8
financial statements” section of this report for more information about credit loss expense / release
Loan underwriting
In the Investment Bank, mandated loan underwriting commitments on a notional basis decreased by USD 1.4bn
compared with 31 March 2025, to USD 7.0bn as of 30 June 2025, driven by deal syndications, partly offset by new
mandates. As of 30 June 2025, USD 1.1bn of these commitments had not been distributed as originally planned.
Loan underwriting exposures in the Investment Bank are classified as held for trading, with fair values reflecting the
market conditions at the end of the quarter. Credit hedges are in place to help protect against fair value movements
in the portfolio.
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 37
Banking and traded products exposure in the business divisions and Group Items
30.6.25
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core
and Legacy
Group
Items
Total
Banking products exposure, gross
1,2
of which: loans and advances to customers (on-balance sheet)
of which: guarantees and irrevocable loan commitments (off-balance sheet)
Committed unconditionally revocable credit lines
3
Traded products exposure, gross
2,4
of which: over-the-counter derivatives
of which: securities financing transactions
of which: exchange-traded derivatives
Total credit-impaired exposure, gross
1
of which: stage 3
of which: PCI
Total allowances and provisions for expected credit losses
of which: stage 1
of which: stage 2
of which: stage 3
of which: PCI
31.3.25
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core
and Legacy
Group
Items
Total
Banking products exposure, gross
1,2
of which: loans and advances to customers (on-balance sheet)
of which: guarantees and irrevocable loan commitments (off-balance sheet)
Committed unconditionally revocable credit lines
3
Traded products exposure, gross
2,4
of which: over-the-counter derivatives
of which: securities financing transactions
of which: exchange-traded derivatives
Total credit-impaired exposure, gross
1
of which: stage 3
of which: PCI
Total allowances and provisions for expected credit losses
of which: stage 1
of which: stage 2
of which: stage 3
of which: PCI
1 IFRS 9 gross exposure for banking products includes the following financial instruments within the scope of expected credit loss measurement: balances at central banks, amounts due from banks, loans and advances
to customers, other financial assets at amortized cost, guarantees and irrevocable loan commitments. 2 Internal management view of credit risk, which differs in certain respects from IFRS Accounting Standards.
3 Commitments that can be canceled by UBS at any time but expose UBS to credit risk if the client has the ability to draw the facility before UBS can take action. These commitments are subject to expected credit loss
requirements. 4 As counterparty risk for traded products is managed at the counterparty level, no further split between exposures in the Investment Bank, Non-core and Legacy, and Group Items is provided.
Collateralization of Loans and advances to customers
1
Global Wealth Management
Personal & Corporate Banking
USD m, except where indicated
30.6.25
31.3.25
30.6.25
31.3.25
Secured by collateral
Residential real estate
Commercial / industrial real estate
Cash
Equity and debt instruments
Other collateral
2
Subject to guarantees
Uncollateralized and not subject to guarantees
Total loans and advances to customers, gross
Allowances
Total loans and advances to customers, net of allowances
Collateralized loans and advances to customers as a percentage of total loans and advances to customers, gross (%)
1 Collateral arrangements generally incorporate a range of collateral, including cash, equity and debt instruments, real estate, and other collateral. For the purposes of this disclosure, UBS applies a risk-based approach
that generally prioritizes collateral according to its liquidity profile. In the case of loan facilities with funded and unfunded elements, the collateral is first allocated to the funded element. For legacy Credit Suisse
infrastructure, a risk-based approach is applied that generally prioritizes real estate collateral and prioritizes other collateral according to its liquidity profile. In the case of loan facilities with funded and unfunded
elements, the collateral is proportionately allocated. 2 Includes but is not limited to life insurance contracts, rights in respect of subscription or capital commitments from fund partners, inventory, gold and other
commodities.
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 38
Market risk
Average management value-at-risk (VaR) (1-day, 95% confidence level) of the UBS Group excluding certain legacy
Credit Suisse components in the second quarter of 2025 decreased to USD 8m from USD 9m, mainly driven by the
Investment Bank’s Global Markets business.
Average management VaR (1-day, 98% confidence level) of the aforementioned legacy Credit Suisse components
in the second quarter of 2025 decreased to USD 3m from USD 4m, driven by de-risking within Non-core and Legacy.
Management value-at-risk (1-day, 95% confidence level, 5 years of historical data) of the business divisions and
Group Items excluding certain legacy Credit Suisse components, by general market risk type
1,2
Average by risk type
USD m
Min.
Max.
Period end
Average
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Diversification effect
3,4
Total as of 30.6.25
Total as of 31.3.25
Management value-at-risk (1-day, 98% confidence level, 2 years of historical data) of certain legacy Credit Suisse
components of the business divisions and Group Items, by general market risk type
1,2
Average by risk type
USD m
Min.
Max.
Period end
Average
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Diversification effect
3,4
Total as of 30.6.25
Total as of 31.3.25
1 The legacy Credit Suisse components not included in the UBS Group management VaR predominantly reflect the portfolio in Non-core and Legacy. These positions continue to be managed on legacy Credit Suisse
infrastructure based on legacy Credit Suisse management VaR methodology until full migration of these positions to UBS infrastructure or the liquidation of the positions. This process is ongoing, and the management
VaR of the legacy Credit Suisse components is expected to continue decreasing over time. 2 Statistics at individual levels may not be summed to deduce the corresponding aggregate figures. The minima and maxima
for each level may occur on different days, and, likewise, the VaR for each business division or risk type, being driven by the extreme loss tail of the corresponding distribution of simulated profits and losses for that
business division or risk type, may well be driven by different days in the historical time series, rendering invalid the simple summation of figures to arrive at the aggregate total. 3 The difference between the sum
of the standalone VaR for the business divisions and Group Items and the total VaR. 4 As the minima and maxima for different business divisions and Group Items occur on different days, it is not meaningful to
calculate a portfolio diversification effect.
Economic value of equity and net interest income sensitivity
The economic value of equity (EVE) sensitivity in the UBS Group banking book to a +1-basis-point parallel shift in
yield curves was negative USD 40.2m as of 30 June 2025, compared with negative USD 38.7m as of 31 March
2025. This excluded the sensitivity of USD 6.9m from additional tier 1 (AT1) capital instruments (as per specific Swiss
Financial Market Supervisory Authority (FINMA) requirements) in contrast to general Basel Committee on Banking
Supervision (BCBS) guidance. Exposure in the banking book of the UBS Group increased during the second quarter
of 2025, predominantly driven by an appreciation of the Swiss franc against the US dollar and decreasing market
rates.
The majority of our interest rate risk in the banking book (IRRBB) as of 30 June 2025 was a reflection of the net
asset duration that we ran to offset our modeled sensitivity of net USD 32.3m (31 March 2025: USD 30.3m)
assigned to our equity, goodwill and real estate, with the aim of generating a stable net interest income
contribution. Of this, USD 18.7m and USD 11.6m were attributable to the US dollar and the Swiss franc portfolios,
r
espectively, (31 March 2025: USD 18.1m and USD 10.5m, respectively).
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 39
In addition to the aforementioned sensitivity, we calculate the six interest rate shock scenarios prescribed by FINMA.
The “Parallel up” scenario, assuming all positions were measured at fair value, was the most severe as of 30 June
2025 and would have resulted in a change in EVE of negative USD 7.3bn, or 8.0% of our tier 1 capital (31 March
2025: negative USD 7.1bn, or 8.1%), which is well below the 15% threshold as per the BCBS supervisory outlier
test for high levels of IRRBB.
The immediate effect on our tier 1 capital in the “Parallel up” scenario as of 30 June 2025 would have been a
decrease of approximately USD 1.0bn, or 1.1%, in our tier 1 capital (31 March 2025: USD 0.7bn, or 0.8%),
reflecting the fact that the vast majority of our banking book is accrual accounted or subject to hedge accounting.
The “Parallel up” scenario would subsequently have a positive effect on net interest income, assuming a constant
balance sheet.
As the overall interest rate risk sensitivity shows a greater impact from slower asset repricing compared with faster
liabilities repricing, the “Parallel down“ scenario was the most beneficial as of 30 June 2025 and would have
resulted in a change in EVE of positive USD 7.6bn (31 March 2025: positive USD 7.5bn) and a small positive
immediate effect on our tier 1 capital.
›
Refer to “Interest rate risk in the banking book” 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
management of interest rate risk in the banking book
›
Refer to “Sensitivity to interest rate movements” in the “Group performance” section of this report for more
information about the effects of increases in interest rates on the net interest income of our banking book
Interest rate risk – banking book
30.6.25
USD m
Effect on EVE
1
Effect on EVE
1
Scenarios
CHF
EUR
GBP
USD
Other
Total
Additional tier 1 (AT1)
capital instruments
Total
+1 bp
Parallel up
2
Parallel down
2
Steepener
3
Flattener
4
Short-term up
5
Short-term down
6
31.3.25
USD m
Effect on EVE
1
Effect on EVE
1
Scenarios
CHF
EUR
GBP
USD
Other
Total
Additional tier 1 (AT1)
capital instruments
Total
+1 bp
Parallel up
2
Parallel down
2
Steepener
3
Flattener
4
Short-term up
5
Short-term down
6
1 Economic value of equity. 2 Rates across all tenors move by ±150 bps for Swiss franc, ±200 bps for euro and US dollar, and ±250 bps for pound sterling. 3 Short-term rates decrease and long-term rates
increase. 4 Short-term rates increase and long-term rates decrease. 5 Short-term rates increase more than long-term rates. 6 Short-term rates decrease more than long-term rates.
Country risk
We remain watchful of a range of geopolitical developments and political changes in a number of countries, as
well as global trade relations, including policies related to tariffs, international tensions from the Russia–Ukraine
war, and conflicts in the Middle East, and we continued to monitor potential second-order impacts in the second
quarter of 2025. As of 30 June 2025, our direct exposure to Israel was less than USD 0.5bn and our direct exposure
to Gulf Cooperation Council countries was less than USD 5bn, while our direct exposure to Egypt and Jordan was
limited, and there was no direct exposure to Iran, Iraq, Lebanon or Syria. Our direct exposure to Russia as of 30 June
2025 was less than USD 0.5bn, and our direct exposure to Belarus and Ukraine remained immaterial. As of 30 June
2025, our exposure to emerging market countries was less than 10% of our total country exposure and mainly to
c
ountries in Asia.
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 40
Uncertainty about economic policy remained elevated. In the second quarter of 2025, inflation was broadly stable
in major Western economies, although concerns about the potential impact of trade tensions on prices and
economic growth persisted. The Chinese economy rebounded somewhat in the second quarter of 2025, driven in
part by its export industry rushing to ship goods quickly, ahead of possible tariff increases; concerns remain about
the property sector and strains on local government finances.
›
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
Non-financial risk
Compliance risk
We are committed to achieving fair outcomes for our clients, upholding market integrity and cultivating the highest
standards of employee conduct. To support these objectives, we maintain a firm-wide conduct risk framework
designed to promote consistent standards and foster a strong culture of accountability.
We continue to prioritize areas such as suitability risk, product governance, cross-divisional service offerings, quality
of advice and price transparency. These remain key focus areas for UBS and the broader financial industry. Cross-
border risk (including the risk of unintended permanent establishment) remains an area of regulatory attention for
global financial institutions, including a focus on market access, such as third-country market access to the European
Economic Area. We maintain a series of controls designed to address these risks, and we are increasing the number
of automated controls, thereby increasing overall control coverage.
Reputational risk, regulatory fragmentation related to environmental, social and governance topics, and the
elevated risk of greenwashing arising from our service offering, disclosures and commitments remain key risks for
2025.
Financial crime risk
Financial crime, including money laundering, terrorist financing, sanctions violations, fraud, bribery and corruption,
presents a major risk, as technological innovation and geopolitical developments increase the complexity of doing
business and heightened regulatory attention continues.
An effective financial crime prevention program therefore remains essential, and we continue to focus on strategic
enhancements to our global anti-money-laundering, know-your-client and sanctions programs. Money laundering
and financial fraud techniques are becoming increasingly sophisticated, and heightened geopolitical volatility makes
the sanctions landscape more complex. The extensive and continuously evolving sanctions arising from the Russia–
Ukraine war require constant attention to prevent circumvention risks, while worsening conflicts in the Middle East
may further increase terrorist-financing risks. Complex investment and technology restrictions, coupled with
relatively limited asset-freeze sanctions, apply in the case of China, which has in response imposed both its own
restrictions and domestic laws countering the sanctions, and we will continue to closely monitor this situation as it
evolves.
Operational risk
There is an increased risk of cyber-related operational disruption to business activities at our locations and those of
third-party suppliers due to operating a more complex set of legal entities since the acquisition of Credit Suisse and
the increasingly dynamic threat environment. This is intensified by current geopolitical factors and evidenced by the
continuing high volumes and increasing sophistication of cyberattacks against financial institutions globally and on
third-party service providers. A notable example of this is a recent data breach at Chain IQ, one of our third-party
suppliers. Our incident review has not identified any impact on UBS’s clients or systems to date, but the data breach
included the exposure of certain non-sensitive UBS employee information.
We remain on heightened alert to respond to and mitigate elevated cyber- and information-security threats, and
continue to invest in improving our technology infrastructure and information-security governance to strengthen
our prevention, detection and response capabilities against attacks. In addition, we operate a global framework
designed to drive enhancements in operational resilience across all business divisions and relevant jurisdictions, and
we work with the third-party service providers that are of critical importance to our operations to assess their
operational resilience in line with our standards and to mitigate any identified risks.
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 41
The increasing interest in data-driven advisory processes and the use of artificial intelligence (AI) and machine
learning are introducing new questions related to the fairness of AI algorithms, data life-cycle management, data
ethics, data privacy and security, and records management.
Legal entity integration, including that of existing Credit Suisse businesses, and the closing of legacy businesses
introduce operational complexity and the risk that businesses in wind-down are not effectively managed. These
risks continue to be carefully monitored in addition to the delivery of consolidated financial and regulatory reporting
submissions.
Capital management
The disclosures in this section are provided for UBS Group AG on a consolidated basis and focus on key
developments during the reporting period and information in accordance with the Basel III framework, as applicable
to Swiss systemically relevant banks (SRBs). They should be read in conjunction with “Capital management” 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
, which provides more information about our capital management
objectives, planning and activities, as well as the Swiss SRB total loss-absorbing capacity (TLAC) framework.
In Switzerland, the amendments to the Capital Adequacy Ordinance (the CAO) that incorporate the final Basel III
standards into Swiss law, including the five new ordinances that contain the implementing provisions for the revised
CAO, entered into force on 1 January 2025.
UBS Group AG is a holding company and conducts substantially all of its operations through UBS AG and
subsidiaries thereof. UBS Group AG and UBS AG contribute a significant portion of their respective capital and
provide substantial liquidity to such subsidiaries. Many of these subsidiaries are subject to local regulations requiring
compliance with minimum capital, liquidity and similar requirements.
›
Refer to the 30 June 2025 Pillar 3 Report, which will be available as of 28 August 2025 under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about additional regulatory disclosures for UBS Group AG on a
consolidated basis, as well as the significant regulated subsidiaries and sub-groups of UBS Group AG
›
Refer to the UBS AG second quarter 2025 report, which will be available as of 5 August 2025 under “Quarterly
reporting” at
ubs.com/investors
, for more information about capital and other regulatory information for UBS AG
consolidated, in accordance with the Basel III framework, as applicable to Swiss SRBs
›
Refer to “Recent developments related to the implementation of the final Basel III standards” in the “Recent
developments” section of this report for more information about the incorporation of the final Basel III standards
We are subject to the going and gone concern requirements of the Swiss CAO, which include additional
requirements applicable to Swiss SRBs. The table below provides the risk-weighted asset (RWA)- and leverage ratio
denominator (LRD)-based requirements and information as of 30 June 2025.
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 Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Capital management 42
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.
Additional capital requirements for UBS Group AG consolidated under current requirements
As a result of the acquisition of the Credit Suisse Group in 2023, the capital add-ons applicable to SRBs based on
market share and LRD for UBS Group AG consolidated will increase commensurate with the Group’s increased
market share and higher LRD after the acquisition. Based on the existing regulations, we currently estimate that
this will add around USD 9bn to the Group’s tier 1 capital requirement, when fully phased in. The phase-in of the
increased capital requirements will commence from 1 January 2026 and will be completed by the beginning of
2030, at the latest. The capital add-ons for market share and LRD are subject to confirmation.
›
Refer to “Developments in Switzerland aimed at strengthening financial stability” in the “Recent developments”
section of this report for more information
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Capital management 43
Total loss-absorbing capacity
The table below provides Swiss SRB going and gone concern information based on the Swiss SRB framework and
requirements that are discussed under “Capital management” 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
.
Changes to the Swiss SRB framework and requirements after the publication of our Annual Report 2024 are
described above.
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 senior 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
Total loss-absorbing capacity and movement
Our TLAC increased by USD 4.0bn to USD 191.2bn in the second quarter of 2025.
Going concern capital and movement
Our going concern capital increased by USD 3.9bn to USD 91.7bn. 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.
›
Refer to “Share information and earnings per share” in this section for more information about our share
repurchase programs
Our loss-absorbing additional tier 1 (AT1) capital increased by USD 0.3bn to USD 19.0bn, reflecting positive impacts
from interest rate risk hedge, foreign currency translation and other effects.
Following the approval of a maximum amount of conversion capital by UBS Group AG’s shareholders at the 2024
Annual General Meeting, AT1 capital instruments issued from the beginning of the fourth quarter of 2023 are,
upon the occurrence of a trigger event or a viability event, subject to conversion into UBS Group AG ordinary shares
rather than a write-down. AT1 capital instruments issued prior to the fourth quarter of 2023 remain subject to a
w
rite-down.
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Capital management 44
Gone concern loss-absorbing capacity and movement
Our total gone concern loss-absorbing capacity increased by USD 0.1bn to USD 99.4bn and included USD 99.3bn of
TLAC-eligible senior unsecured debt instruments. The increase of USD 0.1bn mainly reflected 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 gone concern capital, as they entered the final year before
maturity and the call of USD 3.3bn equivalent of TLAC-eligible senior unsecured debt instruments.
›
Refer to “Bondholder information” at
for more information about the eligibility of capital and
senior unsecured debt instruments and about key features and terms and conditions of capital instruments
Loss-absorbing capacity and leverage ratios
Our CET1 capital ratio increased to 14.4% from 14.3%, reflecting a USD 3.6bn increase in CET1 capital, partly
offset by a USD 21.2bn increase in RWA.
Our CET1 leverage ratio was stable at 4.4%, reflecting a USD 96.5bn increase in the LRD, offset by a USD 3.6bn
increase in CET1 capital.
Our going concern capital ratio was stable at 18.2%, reflecting a USD 3.9bn increase in going concern capital,
offset by a USD 21.2bn increase in RWA.
Our going concern leverage ratio decreased to 5.5% from 5.6%, reflecting a USD 96.5bn increase in the LRD, partly
offset by a USD 3.9bn increase in going concern capital.
Our gone concern loss-absorbing capacity ratio decreased to 19.7% from 20.6%, largely reflecting the
aforementioned increase in RWA.
Our gone concern leverage ratio decreased to 6.0% from 6.4%, mainly due to the aforementioned increase in the
L
RD.
Swiss SRB total loss-absorbing capacity movement
USD m
Going concern capital
Swiss SRB
Common equity tier 1 capital as of 31.3.25
Operating profit / (loss) before tax
Current tax (expense) / benefit
Foreign currency translation effects, before tax
Eligible deferred tax assets on temporary differences (incl. excess over threshold)
Share repurchase program
Capital reserve for expected future share repurchases
Other
1
Common equity tier 1 capital as of 30.6.25
Loss-absorbing additional tier 1 capital as of 31.3.25
Interest rate risk hedge, foreign currency translation and other effects
Loss-absorbing additional tier 1 capital as of 30.6.25
Total going concern capital as of 31.3.25
Total going concern capital as of 30.6.25
Gone concern loss-absorbing capacity
Tier 2 capital as of 31.3.25
Interest rate risk hedge, foreign currency translation and other effects
Tier 2 capital as of 30.6.25
TLAC-eligible unsecured debt as of 31.3.25
Issuance of TLAC-eligible senior unsecured debt
Call of TLAC-eligible senior unsecured debt
Debt no longer eligible as gone concern loss-absorbing capacity due to residual tenor falling to below one year
Interest rate risk hedge, foreign currency translation and other effects
TLAC-eligible unsecured debt as of 30.6.25
Total gone concern loss-absorbing capacity as of 31.3.25
Total gone concern loss-absorbing capacity as of 30.6.25
Total loss-absorbing capacity
Total loss-absorbing capacity as of 31.3.25
Total loss-absorbing capacity as of 30.6.25
1 Includes dividend accruals for 2025 (negative USD 0.8bn) and movements related to other items.
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Capital management 45
Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital
USD m
30.6.25
31.3.25
31.12.24
Total equity under IFRS Accounting Standards
Equity attributable to non-controlling interests
Defined benefit plans, net of tax
Deferred tax assets recognized for tax loss carry-forwards
Deferred tax assets for unused tax credits
Deferred tax assets on temporary differences, excess over threshold
Goodwill, net of tax
1
Intangible assets, net of tax
Compensation-related components (not recognized in net profit)
Expected losses on advanced internal ratings-based portfolio less provisions
Unrealized (gains) / losses from cash flow hedges, net of tax
Own credit related to (gains) / losses on financial liabilities measured at fair value that existed at the balance sheet
date, net of tax
Own credit related to (gains) / losses on derivative financial instruments that existed at the balance sheet date
Prudential valuation adjustments
Accruals for dividends to shareholders for 2024
Capital reserve for expected future share repurchases
Other
2
2
Total common equity tier 1 capital
1 Includes goodwill related to significant investments in financial institutions of USD 19m as of 30 June 2025 (USD 19m as of 31 March 2025, USD 19m as of 31 December 2024) presented on the balance sheet line
Investments in associates. 2 Includes dividend accruals for 2025 and other items.
Additional information
Sensitivity to currency movements
Risk-weighted assets
We estimate that a 10% depreciation of the US dollar against other currencies would have increased our RWA by
USD 24bn and our CET1 capital by USD 2.6bn as of 30 June 2025 (31 March 2025: USD 21bn and USD 2.4bn,
respectively) and decreased our CET1 capital ratio by 15 basis points (31 March 2025: 14 basis points). Conversely,
a 10% appreciation of the US dollar against other currencies would have decreased our RWA by USD 21bn and
our CET1 capital by USD 2.3bn (31 March 2025: USD 19bn and USD 2.2bn, respectively) and increased our CET1
capital ratio by 15 basis points (31 March 2025: 13 basis points).
Leverage ratio denominator
We estimate that a 10% depreciation of the US dollar against other currencies would have increased our LRD by
USD 112bn as of 30 June 2025 (31 March 2025: USD 100bn) and decreased our CET1 leverage ratio by 13 basis
points (31 March 2025: 12 basis points). Conversely, a 10% appreciation of the US dollar against other currencies
would have decreased our LRD by USD 102bn (31 March 2025: USD 90bn) and increased our CET1 leverage ratio
by 14 basis points (31 March 2025: 13 basis points).
The aforementioned sensitivities do not consider foreign currency translation effects related to defined benefit plans
other than those related to the currency translation of the net equity of foreign operations.
›
Refer to “Active management of sensitivity to foreign exchange movements” under “Capital management” 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
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Capital management 46
Risk-weighted assets
During the second quarter of 2025, RWA increased by USD 21.2bn to USD 504.5bn, driven by an USD 18.6bn
increase in currency effects and a USD 3.0bn increase resulting from asset size and other movements, partly offset
by a USD 0.3bn decrease resulting from model updates and methodology changes.
Movement in risk-weighted assets, by key driver
USD bn
RWA as of
31.3.25
Currency
effects
Model updates
and methodology
changes
Asset size and
other
1
RWA as of
30.6.25
Credit and counterparty credit risk
2
Non-counterparty-related risk
3
Market risk
Operational risk
Total
1 Includes the Pillar 3 categories “Asset size”, “Credit quality of counterparties”, “Acquisitions and disposals” and “Other”. For more information, refer to the 30 June 2025 Pillar 3 Report, which will be available as
of 28 August 2025 under “Pillar 3 disclosures” at ubs.com/investors. 2 Includes settlement risk, credit valuation adjustments, equity and investments in funds exposures in the banking book, and securitization
exposures in the banking book. 3 Non-counterparty-related risk includes deferred tax assets recognized for temporary differences, property, equipment, software and other items.
Credit and counterparty credit risk
Credit and counterparty credit risk RWA increased by USD 20.4bn to USD 302.6bn as of 30 June 2025, driven by a
USD 17.2bn increase from currency effects and a USD 3.5bn increase resulting from asset size and other
movements, partly offset by a USD 0.3bn decrease due to model updates and methodology changes.
Asset size and other movements by business division and Group Items:
–
Global Wealth Management RWA increased by USD 2.4bn, mainly due to higher RWA from loans and loan
commitments, derivatives, and credit valuation adjustments (CVA).
–
Personal & Corporate Banking RWA increased by USD 2.6bn, mainly driven by increases in loans to corporate
clients and mortgage loans.
–
Asset Management RWA were unchanged.
–
Investment Bank RWA increased by USD 0.2bn, as increases in RWA due to higher allocations from Group
Treasury following higher levels of high-quality liquid assets (HQLA) were partly offset by decreases in loans and
loan commitments.
–
Non-core and Legacy RWA decreased by USD 1.5bn, mainly driven by our actions to actively unwind the portfolio,
in addition to the natural roll-off.
–
Group Items RWA decreased by USD 0.2bn.
Model updates and methodology changes resulted in an RWA decrease of USD 0.3bn, as a USD 0.7bn decrease in
the multiplier for CVA capital requirements and various smaller model updates and methodology changes
amounting to a decrease in RWA of USD 0.4bn were partly offset by an increase of USD 0.8bn resulting from the
decommissioning of Credit Suisse probability of default models for banks and international mortgages.
›
Refer to the 30 June 2025 Pillar 3 Report, which will be available as of 28 August 2025 under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
›
Refer to “Credit risk” in the “Risk management and control” section of this report for more information
Market risk
Market risk RWA decreased by USD 0.9bn to USD 30.5bn in the second quarter of 2025, due to asset size and
other movements in the Investment Bank’s Global Markets business and de-risking within Non-core and Legacy.
›
Refer to the 30 June 2025 Pillar 3 Report, which will be available as of 28 August 2025 under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
›
Refer to “Market risk” in the “Risk management and control” section of this report for more information
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Capital management 47
Operational risk
Operational risk RWA were unchanged at USD 136.4bn.
›
Refer to “Note 14 Provisions and contingent liabilities” in the “Consolidated financial statements” section of this
report for more information
Outlook
We expect RWA developments with regard to model updates and methodology changes to decrease by around
USD 2bn during the third quarter of 2025. The extent and timing of RWA changes may vary as model updates are
completed and receive regulatory approval, along with changes in the composition of the relevant portfolios.
Risk-weighted assets, by business division and Group Items
USD bn
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Manage-
ment
Investment
Bank
Non-core and
Legacy
Group
Items
Total
RWA
30.6.25
Credit and counterparty credit risk
1
Non-counterparty-related risk
2
Market risk
Operational risk
Total
31.3.25
Credit and counterparty credit risk
1
Non-counterparty-related risk
2
Market risk
Operational risk
Total
30.6.25 vs 31.3.25
Credit and counterparty credit risk
1
Non-counterparty-related risk
2
Market risk
Operational risk
Total
1 Includes settlement risk, credit valuation adjustments, equity and investments in funds exposures in the banking book, and securitization exposures in the banking book. 2 Non-counterparty-related risk includes
deferred tax assets recognized for temporary differences (30 June 2025: USD 18.4bn; 31 March 2025: USD 17.6bn), as well as property, equipment, software and other items (30 June 2025: USD 16.6bn; 31 March
2025: USD 15.7bn).
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Capital management 48
Leverage ratio denominator
During the second quarter of 2025, 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.
Movement in leverage ratio denominator, by key driver
USD bn
LRD as of
31.3.25
Currency
effects
Asset size and
other
LRD as of
30.6.25
On-balance sheet exposures (excluding derivatives and securities financing transactions)
Derivative exposures
Securities financing transaction exposures
Off-balance sheet items
Total exposures
The LRD movements described below exclude currency effects.
On-balance sheet exposures (excluding derivatives and securities financing transactions) increased by USD 6.7bn,
mainly reflecting increases in the HQLA 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.
Derivative exposures increased by USD 2.9bn, primarily reflecting market-driven movements.
Off-balance sheet exposures decreased by USD 1.1bn, mainly due to decreases in commitments.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about balance sheet
movements
Leverage ratio denominator, by business division and Group Items
USD bn
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
30.6.25
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
Derivative exposures
Securities financing transaction exposures
Off-balance sheet items
Total exposures
31.3.25
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
Derivative exposures
Securities financing transaction exposures
Off-balance sheet items
Total exposures
30.6.25 vs 31.3.25
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
Derivative exposures
Securities financing transaction exposures
Off-balance sheet items
Total exposures
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Capital management 49
Equity attribution
Under our equity attribution framework, tangible equity is attributed based on equally weighted average RWA and
average LRD, which both include resource allocations from our Group functions to the business divisions. Average
RWA and LRD are converted to CET1 capital equivalents using target capital ratios. If the attributed tangible equity
calculated under the weighted-driver approach is less than the CET1 capital equivalent of risk-based capital (RBC)
for any business division, the CET1 capital equivalent of RBC is used as a floor for that business division. The floor
was applicable for Asset Management and Non-core and Legacy in all of the periods shown below.
In addition to tangible equity, we allocate equity to the business divisions to support goodwill and intangible assets.
We also allocate to the business divisions attributed equity related to CET1 capital deduction items that are
attributable to divisional activities, such as compensation-related components or expected losses on the advanced
internal ratings-based portfolio less provisions. We attribute all remaining capital deduction items to Group Items.
These primarily include equity related to deferred tax assets, accruals for shareholder returns, and unrealized gains /
losses from cash flow hedges.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about movements in
equity attributable to shareholders
Average attributed equity
For the quarter ended
Year-to-date
USD bn
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
1
Average equity attributed to business divisions and Group Items
1 Includes average attributed equity related to capital deduction items for deferred tax assets, accruals for shareholder returns and unrealized gains / losses from cash flow hedges.
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Liquidity and funding management 50
Liquidity and funding management
Strategy, objectives and governance
This section provides liquidity and funding management information and should be read in conjunction with
“Liquidity and funding management” 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
, which provides more
information about the Group’s strategy, objectives and governance in connection with liquidity and funding
management.
Liquidity coverage ratio
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 the Swiss Financial Market Supervisory
Authority (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.
›
Refer to the
30 June 2025 Pillar 3 Report, which will be available as of 28 August 2025 under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about the LCR
Liquidity coverage ratio
USD bn, except where indicated
Average 2Q25
1
Average 1Q25
1
High-quality liquid assets
Net cash outflows
2
Liquidity coverage ratio (%)
3
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 Represents the net cash outflows expected over a stress period of 30 calendar
days. 3 Calculated after the application of haircuts and inflow and outflow rates, as well as, where applicable, caps on Level 2 assets and cash inflows.
Net stable funding ratio
As of 30 June 2025, the net stable funding ratio (the NSFR) 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.
›
Refer to the 30 June 2025 Pillar 3 Report, which will be available as of 28 August 2025 under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about the NSFR
Net stable funding ratio
USD bn, except where indicated
30.6.25
31.3.25
Available stable funding
Required stable funding
Net stable funding ratio (%)
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Balance sheet and off-balance sheet 51
Balance sheet and off-balance sheet
This section provides balance sheet and off-balance sheet information and should be read in conjunction with
“Balance sheet and off-balance sheet” 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
, which provides more
information about the balance sheet and off-balance sheet positions.
Balances disclosed in this report represent quarter-end positions, unless indicated otherwise. Intra-quarter balances
fluctuate in the ordinary course of business and may differ from quarter-end positions.
Balance sheet assets (30 June 2025 vs 31 March 2025)
Total assets were USD 1,670.0bn as of 30 June 2025, an increase of USD 126.6bn compared with 31 March 2025,
mainly reflecting currency effects as a result of the depreciation of the US dollar against other major currencies.
Lending assets increased by USD 52.3bn, primarily reflecting currency effects. Derivatives and cash collateral
receivables on derivative instruments increased by USD 38.5bn, predominantly in Derivatives & Solutions and
Financing in the Investment Bank, primarily reflecting market-driven increases in foreign currency contracts resulting
from the depreciation of the US dollar.
Other financial assets measured at fair value increased by USD 9.1bn, mainly driven by purchases of high-quality
liquid asset (HQLA) portfolio securities and currency effects. Securities financing transactions at amortized cost
increased by USD 8.4bn, mainly reflecting currency effects and net cash reinvestment trades in Group Treasury.
Other financial assets measured at amortized cost increased by USD 5.7bn, mainly reflecting purchases of HQLA
portfolio securities and currency effects. Cash and balances at central banks increased by USD 4.8bn, mainly due
to currency effects, partly offset by purchases of HQLA portfolio securities.
Assets
As of
% change from
USD bn
30.6.25
31.3.25
31.3.25
Cash and balances at central banks
Lending
1
Securities financing transactions at amortized cost
Trading assets
Derivatives and cash collateral receivables on derivative instruments
Brokerage receivables
Other financial assets measured at amortized cost
Other financial assets measured at fair value
2
Non-financial assets
Total assets
1 Consists of Loans and advances to customers and Amounts due from banks. 2 Consists of Financial assets at fair value not held for trading and Financial assets measured at fair value through other comprehensive
income.
Balance sheet liabilities (30 June 2025 vs 31 March 2025)
Total liabilities were USD 1,580.3bn as of 30 June 2025, an increase of USD 124.5bn compared with 31 March
2025, mainly reflecting currency effects as a result of the depreciation of the US dollar against other major
currencies.
Customer deposits increased by USD 55.1bn, primarily driven by currency effects, as well as net new deposit inflows,
largely in Global Wealth Management. Derivatives and cash collateral payables on derivative instruments increased
by USD 43.2bn, predominantly in the Investment Bank, reflecting the same drivers as on the asset side.
Trading liabilities increased by USD 9.2bn, mainly due to an increase in positions held in the Investment Bank to
hedge client positions, as well as market-driven increases. Short-term borrowings increased by USD 8.8bn, mainly
driven by net new issuances of commercial paper and certificates of deposit in Group Treasury, as well as by currency
effects. Debt issued designated at fair value and long-term debt issued measured at amortized cost increased by
USD 7.5bn, mainly driven by currency effects and market-driven increases on equity-linked notes, partly offset by
net maturities.
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Balance sheet and off-balance sheet 52
The “Liabilities, by product and currency” table in this section provides more information about the Group’s funding
sources.
›
Refer to “Bondholder information” at
for more information about capital and senior debt
instruments
›
Refer to the “Consolidated financial statements” section of this report for more information
Liabilities and equity
As of
% change from
USD bn
30.6.25
31.3.25
31.3.25
Short-term borrowings
1,2
Securities financing transactions at amortized cost
Customer deposits
Debt issued designated at fair value and long-term debt issued measured at amortized cost
2
Trading liabilities
Derivatives and cash collateral payables on derivative instruments
Brokerage payables
Other financial liabilities measured at amortized cost
Other financial liabilities designated at fair value
Non-financial liabilities
Total liabilities
Share capital
Share premium
Treasury shares
Retained earnings
Other comprehensive income
3
Total equity attributable to shareholders
Equity attributable to non-controlling interests
Total equity
Total liabilities and equity
1 Consists of short-term debt issued measured at amortized cost and amounts due to banks, which includes amounts due to central banks. 2 The classification of debt issued measured at amortized cost into short-
term and long-term is based on original contractual maturity and therefore long-term debt also includes debt with a remaining time to maturity of less than one year. This classification does not consider any early
redemption features. 3 Excludes other comprehensive income related to defined benefit plans and own credit, which is recorded directly in Retained earnings.
Equity (30 June 2025 vs 31 March 2025)
Equity attributable to shareholders increased by USD 2,092m to USD 89,277m as of 30 June 2025.
The net increase of USD 2,092m was mainly driven by positive total comprehensive income attributable to
shareholders of USD 5,335m, reflecting a net profit of USD 2,395m and other comprehensive income (OCI) of
USD 2,941m. OCI mainly included OCI related to foreign currency translation of USD 2,536m, cash flow hedge OCI
of USD 562m and negative OCI related to own credit on financial liabilities designated at fair value of USD 124m.
In addition, deferred share-based compensation awards of USD 292m were expensed in the income statement,
increasing share premium.
These increases were partly offset by distributions to shareholders of USD 2,866m, reflecting a dividend payment
of USD 0.90 per share. In addition, net treasury share activity reduced equity by USD 678m, predominantly due to
the repurchasing of USD 494m of shares under our 2024 share repurchase program and the purchasing of
USD 239m of shares in relation to employee share-based compensation plans.
In the second quarter of 2025, we canceled 120,506,008 shares purchased under our 2022 share repurchase
program, as approved by the shareholders at the 2025 Annual General Meeting. The cancellation of shares resulted
in reclassifications within equity but had no net effect on our total equity attributable to shareholders.
›
Refer to the “Group performance” and “Consolidated financial statements” sections of this report for more
information
›
Refer to “Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital” in
the “Capital management” section of this report for more information about the effects of OCI on common equity
tier 1 capital
›
Refer to the “Share information and earnings per share” section of this report for more information about our
share repurchase programs
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Balance sheet and off-balance sheet 53
Liabilities, by product and currency
USD equivalent
All currencies
of which: USD
of which: CHF
of which: EUR
USD bn
30.6.25
31.3.25
30.6.25
31.3.25
30.6.25
31.3.25
30.6.25
31.3.25
Short-term borrowings
67.2
58.4
28.6
22.5
9.0
7.9
15.3
12.6
of which: amounts due to banks
31.9
27.8
10.9
7.8
8.5
7.4
4.2
3.4
of which: short-term debt issued
1,2
35.3
30.6
17.8
14.7
0.5
0.4
11.1
9.2
Securities financing transactions at amortized cost
16.3
15.0
8.0
7.3
4.0
3.6
2.8
2.8
Customer deposits
800.0
744.9
307.8
301.5
343.4
306.2
76.7
69.5
of which: demand deposits
266.5
223.6
59.0
53.8
139.9
109.6
37.6
33.2
of which: retail savings / deposits
215.5
190.5
35.5
35.4
175.4
151.0
4.6
4.1
of which: sweep deposits
38.2
39.6
38.2
39.6
0.0
0.0
0.0
0.0
of which: time deposits
279.9
291.2
175.2
172.6
28.1
45.6
34.5
32.3
Debt issued designated at fair value and long-term debt issued measured at amortized
cost
2
302.9
295.4
163.3
165.9
44.6
42.3
70.8
64.5
Trading liabilities
52.3
43.1
19.9
16.9
1.1
1.0
18.3
12.3
Derivatives and cash collateral payables on derivative instruments
216.8
173.6
183.5
145.5
5.1
3.3
17.6
16.2
Brokerage payables
58.0
59.9
44.4
47.9
0.9
0.6
4.0
3.3
Other financial liabilities measured at amortized cost
18.4
19.1
8.8
9.3
4.1
5.0
2.4
2.3
Other financial liabilities designated at fair value
29.4
27.2
5.9
5.1
0.1
0.0
2.1
2.3
Non-financial liabilities
18.9
19.1
9.4
10.7
3.8
3.3
3.0
2.8
Total liabilities
1,580.3
1,455.8
779.7
732.6
416.1
373.1
213.0
188.6
1 Short-term debt issued consists of certificates of deposit, commercial paper, acceptances and promissory notes, and other money market paper. 2 The classification of debt issued measured at amortized cost into
short-term and long-term is based on original contractual maturity and therefore long-term debt also includes debt with a remaining time to maturity of less than one year. This classification does not consider any early
redemption features.
Off-balance sheet (30 June 2025 vs 31 March 2025)
Committed unconditionally revocable credit lines increased by USD 6.7bn, mainly reflecting currency effects due to
the depreciation of the US dollar, partly offset by a decrease in facilities provided to corporate and institutional
clients.
Off-balance sheet
As of
% change from
USD bn
30.6.25
31.3.25
31.3.25
Guarantees
1,2
Irrevocable loan commitments
1
Committed unconditionally revocable credit lines
Forward starting reverse repurchase and securities borrowing agreements
1 Guarantees and irrevocable loan commitments are shown net of sub-participations. 2 Includes guarantees measured at fair value through profit or loss.
Share information and earnings per share
UBS Group AG shares are listed on the SIX Swiss Exchange (SIX). They are also listed on the New York Stock
Exchange (the NYSE) as global registered shares. Each share has a nominal value of USD 0.10. Shares issued
decreased in the second quarter of 2025, as 120,506,008 shares acquired under our 2022 share repurchase
program were canceled by means of a capital reduction, as approved by the shareholders at the 2025 Annual
General Meeting (the AGM).
We held 172m shares as of 30 June 2025, of which 64m shares had been acquired under our 2024 share repurchase
program for cancellation purposes. The remaining 109m shares are primarily held to hedge our share delivery
obligations related to employee share-based compensation and participation plans.
Treasury shares held decreased by 102m shares in the second quarter of 2025. This largely reflected the
aforementioned cancellation of 121m shares, partly offset by 15.8m shares repurchased under our 2024 program
and the purchasing of 6.7m shares in relation to employee share-based compensation plans.
Shares acquired under our 2024 program totaled 64m as of 30 June 2025 for a total acquisition cost of USD 2,000m
(CHF 1,739m). This program concluded on 23 May 2025, and the 64m shares repurchased under this program will
b
e canceled by means of a capital reduction, subject to approval by the shareholders at a future AGM.
UBS Group second quarter 2025 report |
Risk, capital, liquidity and funding, and balance sheet | Share information and earnings per share 54
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 common equity tier 1 capital ratio target of around 14% and
achieving our financial targets.
›
Refer to the “Equity, CET1 capital and returns” table in the “Group performance” section of this report for more
information about equity attributable to shareholders and tangible equity attributable to shareholders
Share information and earnings per share
As of or for the quarter ended
As of or year-to-date
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Basic and diluted earnings (USD m)
Net profit / (loss) attributable to shareholders for basic EPS
less: (profit) / loss on own equity derivative contracts
Net profit / (loss) attributable to shareholders for diluted EPS
.
Weighted average shares outstanding
Weighted average shares outstanding for basic EPS
1
Effect of dilutive potential shares resulting from notional employee shares, in-the-money
options and warrants outstanding
2
Weighted average shares outstanding for diluted EPS
.
Earnings per share (USD)
Basic
Diluted
.
Shares outstanding and potentially dilutive instruments
Shares issued
Treasury shares
3
of which: related to the 2022 share repurchase program
of which: related to the 2024 share repurchase program
Shares outstanding
Potentially dilutive instruments
4
.
Other key figures
Total book value per share (USD)
Tangible book value per share (USD)
Share price (USD)
5
Market capitalization (USD m)
6
1 The weighted average shares outstanding for basic earnings per share (EPS) are calculated by taking the number of shares at the beginning of the period, adjusted by the number of shares acquired or issued during
the period, multiplied by a time-weighted factor for the period outstanding. As a result, balances are affected by the timing of acquisitions and issuances during the period. 2 The weighted average number of shares
for notional employee awards with performance conditions reflects all potentially dilutive shares that are expected to vest under the terms of the awards. 3 Based on a settlement date view. 4 Reflects potential
shares that could dilute basic EPS in the future but were not dilutive for any of the periods presented. Mainly includes equity-based awards subject to absolute and relative performance conditions and equity derivative
contracts. 5 Represents the share price as listed on the SIX Swiss Exchange, translated to US dollars using the closing exchange rate as of the respective date. 6 The calculation of market capitalization reflects
total shares issued multiplied by the share price at the end of the period.
Ticker symbols UBS Group AG
Security identification codes
Trading exchange
SIX / NYSE
Bloomberg
Reuters
ISIN
CH0244767585
SIX Swiss Exchange
UBSG
UBSG SW
UBSG.S
Valoren
24 476 758
New York Stock Exchange
UBS
UBS UN
UBS.N
CUSIP
CINS H42097 10 7
UBS Group second quarter 2025 report |
Consolidated financial statements 55
Consolidated financial
statements
Unaudited
Table of contents
UBS Group AG interim consolidated financial
statements (unaudited)
56
Income statement
57
Statement of comprehensive income
58
Balance sheet
59
Statement of changes in equity
60
Statement of cash flows
Notes to the UBS Group AG interim consolidated
financial statements (unaudited)
61
1
Basis of accounting
62
2
Segment reporting
62
3
Net interest income
63
4
Net fee and commission income
63
5
Other income
63
6
Personnel expenses
64
7
General and administrative expenses
64
8
Expected credit loss measurement
72
9
Fair value measurement
78
10
Derivative instruments
79
11
Other assets and liabilities
80
12
Debt issued designated at fair value
80
13
Debt issued measured at amortized cost
80
14
Provisions and contingent liabilities
UBS Group second quarter 2025 report |
Consolidated financial statements | UBS Group AG interim consolidated financial statements (unaudited) 56
UBS Group AG interim consolidated financial
statements (unaudited)
Income statement
For the quarter ended
Year-to-date
USD m
Note
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Interest income from financial instruments measured at amortized cost and fair value through
other comprehensive income
3
Interest expense from financial instruments measured at amortized cost
3
(6,817 )
(6,948 )
(9,319 )
(13,765 )
(19,042 )
Net interest income from financial instruments measured at fair value through profit or loss and other
3
Net interest income
3
Other net income from financial instruments measured at fair value through profit or loss
Fee and commission income
4
Fee and commission expense
4
(653 )
(649 )
(679 )
(1,302 )
(1,268 )
Net fee and commission income
4
Other income
5
Total revenues
Credit loss expense / (release)
8
Personnel expenses
6
General and administrative expenses
7
Depreciation, amortization and impairment of non-financial assets
Operating expenses
Operating profit / (loss) before tax
Tax expense / (benefit)
(209 )
Net profit / (loss)
Net profit / (loss) attributable to non-controlling interests
Net profit / (loss) attributable to shareholders
Earnings per share (USD)
Basic
Diluted
UBS Group second quarter 2025 report |
Consolidated financial statements | UBS Group AG interim consolidated financial statements (unaudited) 57
Statement of comprehensive income
For the quarter ended
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Comprehensive income attributable to shareholders
Net profit / (loss)
Other comprehensive income that may be reclassified to the income statement
Foreign currency translation
Foreign currency translation movements related to net assets of foreign operations, before tax
(268 )
(3,741 )
Effective portion of changes in fair value of hedging instruments designated as net investment hedges, before tax
(1,879 )
(549 )
(2,428 )
Foreign currency translation differences on foreign operations reclassified to the income statement
(1 )
Effective portion of changes in fair value of hedging instruments designated as net investment hedges reclassified to
the income statement
(1 )
(1 )
Income tax relating to foreign currency translations, including the effect of net investment hedges
(4 )
(2 )
(6 )
Subtotal foreign currency translation, net of tax
(1,252 )
Financial assets measured at fair value through other comprehensive income
Net unrealized gains / (losses), before tax
(4 )
(3 )
(7 )
Net realized (gains) / losses reclassified to the income statement from equity
Income tax relating to net unrealized gains / (losses)
Subtotal financial assets measured at fair value through other comprehensive income, net of tax
(4 )
(3 )
(7 )
Cash flow hedges of interest rate risk
Effective portion of changes in fair value of derivative instruments designated as cash flow hedges, before tax
(417 )
(1,663 )
Net (gains) / losses reclassified to the income statement from equity
Income tax relating to cash flow hedges
(131 )
(125 )
(256 )
Subtotal cash flow hedges, net of tax
(327 )
Cost of hedging
Cost of hedging, before tax
(19 )
(28 )
Income tax relating to cost of hedging
Subtotal cost of hedging, net of tax
(19 )
(28 )
Total other comprehensive income that may be reclassified to the income statement, net of tax
(1,608 )
Other comprehensive income that will not be reclassified to the income statement
Defined benefit plans
Gains / (losses) on defined benefit plans, before tax
(36 )
(38 )
(31 )
(100 )
Income tax relating to defined benefit plans
(4 )
(1 )
Subtotal defined benefit plans, net of tax
(40 )
(30 )
(32 )
(87 )
Own credit on financial liabilities designated at fair value
Gains / (losses) from own credit on financial liabilities designated at fair value, before tax
(126 )
Income tax relating to own credit on financial liabilities designated at fair value
(1 )
(3 )
(1 )
Subtotal own credit on financial liabilities designated at fair value, net of tax
(124 )
Total other comprehensive income that will not be reclassified to the income statement, net of tax
(164 )
Total other comprehensive income
(1,535 )
Total comprehensive income attributable to shareholders
Comprehensive income attributable to non-controlling interests
Net profit / (loss)
Total other comprehensive income that will not be reclassified to the income statement, net of tax
(21 )
(35 )
Total comprehensive income attributable to non-controlling interests
Total comprehensive income
Net profit / (loss)
Other comprehensive income
(1,570 )
of which: other comprehensive income that may be reclassified to the income statement
(1,608 )
of which: other comprehensive income that will not be reclassified to the income statement
(149 )
Total comprehensive income
UBS Group second quarter 2025 report |
Consolidated financial statements | UBS Group AG interim consolidated financial statements (unaudited) 58
Balance sheet
USD m
Note
30.6.25
31.3.25
31.12.24
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
10
Loans and advances to customers
8
Other financial assets measured at amortized cost
11
Total financial assets measured at amortized cost
Financial assets at fair value held for trading
9
of which: assets pledged as collateral that may be sold or repledged by counterparties
Derivative financial instruments
9, 10
Brokerage receivables
9
Financial assets at fair value not held for trading
9
Total financial assets measured at fair value through profit or loss
Financial assets measured at fair value through other comprehensive income
9
Investments in associates
Property, equipment and software
Goodwill and intangible assets
Deferred tax assets
Other non-financial assets
11
Total assets
Liabilities
Amounts due to banks
Payables from securities financing transactions measured at amortized cost
Cash collateral payables on derivative instruments
10
Customer deposits
Debt issued measured at amortized cost
13
Other financial liabilities measured at amortized cost
11
Total financial liabilities measured at amortized cost
Financial liabilities at fair value held for trading
9
Derivative financial instruments
9, 10
Brokerage payables designated at fair value
Debt issued designated at fair value
9, 12
Other financial liabilities designated at fair value
9, 11
Total financial liabilities measured at fair value through profit or loss
Provisions and contingent liabilities
Other non-financial liabilities
Total liabilities
Equity
Share capital
Share premium
Treasury shares
(4,830 )
(6,509 )
(6,402 )
Retained earnings
Other comprehensive income recognized directly in equity, net of tax
Equity attributable to shareholders
Equity attributable to non-controlling interests
Total equity
Total liabilities and equity
UBS Group second quarter 2025 report |
Consolidated financial statements | UBS Group AG interim consolidated financial statements (unaudited) 59
Statement of changes in equity
USD m
Share
capital and
share
premium
Treasury
shares
Retained
earnings
OCI
recognized
directly in
equity,
net of tax
1
of which:
foreign
currency
translation
of which:
cash flow
hedges
Total equity
attributable to
shareholders
Balance as of 1 January 2025
2
(6,402 )
(2,585 )
Acquisition of treasury shares
(2,249 )
3
(2,249 )
Delivery of treasury shares under share-based compensation plans
(1,344 )
Other disposal of treasury shares
3
Cancellation of treasury shares related to the 2022 share repurchase program
4
(1,145 )
(1,133 )
Share-based compensation expensed in the income statement
Tax (expense) / benefit
Dividends
(1,433 )
5
(1,433 )
5
(2,866 )
Equity classified as obligation to purchase own shares
(81 )
(81 )
Translation effects recognized directly in retained earnings
(50 )
(50 )
Share of changes in retained earnings of associates and joint ventures
(2 )
(2 )
New consolidations / (deconsolidations) and other increases / (decreases)
(98 )
(98 )
Total comprehensive income for the period
of which: net profit / (loss)
of which: OCI, net of tax
Balance as of 30 June 2025
2
(4,830 )
(1,527 )
Non-controlling interests as of 30 June 2025
Total equity as of 30 June 2025
Balance as of 1 January 2024
2
(4,796 )
(3,109 )
Acquisition of treasury shares
(1,900 )
3
(1,900 )
Delivery of treasury shares under share-based compensation plans
(1,051 )
Other disposal of treasury shares
3
Share-based compensation expensed in the income statement
Tax (expense) / benefit
Dividends
(1,128 )
5
(1,128 )
5
(2,256 )
Equity classified as obligation to purchase own shares
(27 )
(27 )
Translation effects recognized directly in retained earnings
(63 )
Share of changes in retained earnings of associates and joint ventures
(1 )
(1 )
New consolidations / (deconsolidations) and other increases / (decreases)
Total comprehensive income for the period
(1,608 )
(1,252 )
(327 )
of which: net profit / (loss)
of which: OCI, net of tax
(1,608 )
(1,252 )
(327 )
(1,535 )
Balance as of 30 June 2024
2
(5,498 )
(3,373 )
Non-controlling interests as of 30 June 2024
Total equity as of 30 June 2024
1 Excludes other comprehensive income related to defined benefit plans and own credit that is recorded directly in Retained earnings. 2 Excludes non-controlling interests. 3 Includes treasury shares acquired and
disposed of by the Investment Bank in its capacity as a market maker with regard to UBS shares and related derivatives, and to hedge certain issued structured debt instruments. These acquisitions and disposals are
reported based on the sum of the net monthly movements. 4 Reflects the cancellation of
Annual General Meeting. Swiss tax law requires Switzerland-domiciled companies with shares listed on a Swiss stock exchange to reduce capital contribution reserves by at least
% of the total capital reduction
amount exceeding the nominal value upon cancellation of the shares. 5 Reflects the payment of an ordinary cash dividend of USD
bearing share paid in May 2024). Swiss tax law requires Switzerland-domiciled companies with shares listed on a Swiss stock exchange to pay no more than
% of dividends from capital contribution reserves, with
the remainder required to be paid from retained earnings.
UBS Group second quarter 2025 report |
Consolidated financial statements | UBS Group AG interim consolidated financial statements (unaudited) 60
Statement of cash flows
Year-to-date
USD m
30.6.25
30.6.24
Cash flow from / (used in) operating activities
Net profit / (loss)
Non-cash items included in net profit and other adjustments
Depreciation, amortization and impairment of non-financial assets
Credit loss expense / (release)
Share of net (profit) / loss of associates and joint ventures and impairment related to associates
(157 )
(110 )
Deferred tax expense / (benefit)
(607 )
Net loss / (gain) from investing activities
(153 )
Net loss / (gain) from financing activities
(3,961 )
Other net adjustments
1
(31,208 )
Net change in operating assets and liabilities
1
Amounts due from banks and amounts due to banks
Receivables from securities financing transactions measured at amortized cost
Payables from securities financing transactions measured at amortized cost
(38 )
Cash collateral on derivative instruments
(3,533 )
(2,120 )
Loans and advances to customers
(7,214 )
Customer deposits
(1,952 )
(9,900 )
Financial assets and liabilities at fair value held for trading and derivative financial instruments
(4,779 )
Brokerage receivables and payables
(101 )
Financial assets at fair value not held for trading and other financial assets and liabilities
(11,885 )
(15,110 )
Provisions and other non-financial assets and liabilities
(3,275 )
(1,986 )
Income taxes paid, net of refunds
(1,331 )
(1,223 )
Net cash flow from / (used in) operating activities
2
Cash flow from / (used in) investing activities
Purchase of subsidiaries, business, associates and intangible assets
(17 )
Disposal of subsidiaries, business, associates and intangible assets
3
4
Purchase of property, equipment and software
(1,109 )
(913 )
Disposal of property, equipment and software
Purchase of financial assets measured at fair value through other comprehensive income
(7,175 )
(2,132 )
Disposal and redemption of financial assets measured at fair value through other comprehensive income
Purchase of debt securities measured at amortized cost
(14,792 )
(1,850 )
Disposal and redemption of debt securities measured at amortized cost
Net cash flow from / (used in) investing activities
(14,150 )
Cash flow from / (used in) financing activities
Repayment of Swiss National Bank funding
(42,587 )
5
Net issuance (repayment) of short-term debt measured at amortized cost
(3,384 )
Net movements in treasury shares and own equity derivative activity
(2,073 )
(1,786 )
Distributions paid on UBS shares
(2,866 )
(2,256 )
Issuance of debt designated at fair value and long-term debt measured at amortized cost
Repayment of debt designated at fair value and long-term debt measured at amortized cost
(71,129 )
(71,389 )
Inflows from securities financing transactions measured at amortized cost
6
Outflows from securities financing transactions measured at amortized cost
6
(1,561 )
(2,052 )
Net cash flows from other financing activities
(544 )
(404 )
Net cash flow from / (used in) financing activities
(12,769 )
(61,916 )
Total cash flow
Cash and cash equivalents at the beginning of the period
Net cash flow from / (used in) operating, investing and financing activities
(6,030 )
(47,510 )
Effects of exchange rate differences on cash and cash equivalents
1
(13,733 )
Cash and cash equivalents at the end of the period
7
of which: cash and balances at central banks
7
of which: amounts due from banks
7
of which: money market paper
7,8
Additional information
Net cash flow from / (used in) operating activities includes:
Interest received in cash
Interest paid in cash
Dividends on equity investments, investment funds and associates received in cash
3
1 Foreign currency translation and foreign exchange effects on operating assets and liabilities and on cash and cash equivalents are presented within the Other net adjustments line, with the exception of foreign
currency hedge effects related to foreign exchange swaps, which are presented on the line Financial assets and liabilities at fair value held for trading and derivative financial instruments. 2 Includes cash receipts
from the sale of loans and loan commitments of USD
m and USD
m within Non-core and Legacy for the six-month periods ended 30 June 2025 and 30 June 2024, respectively. 3 Includes dividends received
from associates. 4 Includes cash proceeds net of cash and cash equivalents disposed from the sale of the US mortgage servicing business of Credit Suisse, Select Portfolio Servicing, which was managed in Non-core
and Legacy. Refer to “Note 29 Changes in organization and acquisitions and disposals of subsidiaries and businesses” in the “Consolidated financial statements” section of the UBS Group Annual Report 2024 for
more information. 5 Reflects the repayment of the Emergency Liquidity Assistance facility to the Swiss National Bank, which was recognized in the balance sheet line Amounts due to banks. 6 Reflects cash flows
from securities financing transactions measured at amortized cost that use UBS debt instruments as the underlying. 7 Includes only balances with an original maturity of three months or less. 8 Money market
paper is included in the balance sheet under Financial assets at fair value not held for trading (30 June 2025: USD
m; 30 June 2024: USD
m), Other financial assets measured at amortized cost (30 June
2025: USD
m; 30 June 2024: USD
m), Financial assets measured at fair value through other comprehensive income (30 June 2025: USD
m; 30 June 2024: USD
m) and Financial assets at fair value
held for trading (30 June 2025: USD
m; 30 June 2024: USD
m).
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 61
Notes to the UBS Group AG interim consolidated
financial statements (unaudited)
Note 1 Basis of accounting
Basis of preparation
The consolidated financial statements (the financial statements) of UBS Group AG and its subsidiaries (together,
UBS or the Group) are prepared in accordance with IFRS Accounting Standards, as issued by the International
Accounting Standards Board (the IASB), and are presented in US dollars. These interim financial statements are
prepared in accordance with IAS 34,
Interim Financial Reporting
.
In preparing these interim financial statements, the same accounting policies and methods of computation have
been applied as in the UBS Group AG consolidated annual financial statements for the period ended 31 December
2024. These interim financial statements are unaudited and should be read in conjunction with: UBS Group AG’s
audited consolidated financial statements in the UBS Group Annual Report 2024; the “Management report”
sections of this report, specifically the disclosures in the “Recent developments” section of this report regarding the
sale of O’Connor hedge funds and the ownership increase in UBS Securities China and in the “UBS Group
performance, business divisions and Group Items” section of this report regarding the sale of Select Portfolio
Servicing (the US mortgage servicing business of Credit Suisse) and the transactions related to Swisscard; and the
information about significant transactions disclosed in the UBS Group first quarter 2025 report. In the opinion of
management, all necessary adjustments have been made for a fair presentation of the Group’s financial position,
results of operations and cash flows.
Preparation of these interim financial statements requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities, income, expenses and disclosures of contingent assets and
liabilities. These estimates and assumptions are based on the best available information. Actual results in the future
could differ from such estimates and differences may be material to the financial statements. Revisions to estimates,
based on regular reviews, are recognized in the period in which they occur. For more information about areas of
estimation uncertainty that are considered to require critical judgment, refer to “Note 1a Material accounting
policies” in the “Consolidated financial statements” section of the UBS Group Annual Report 2024.
Currency translation rates
The following table shows the rates of the main currencies used to translate the financial information of UBS’s
operations with a functional currency other than the US dollar into US dollars.
Currency translation rates
Closing exchange rate
Average rate
1
As of
For the quarter ended
Year-to-date
30.6.25
31.3.25
31.12.24
30.6.24
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
1 CHF
1 EUR
1 GBP
100 JPY
1 Monthly income statement items of operations with a functional currency other than the US dollar are translated into US dollars using month-end rates. Disclosed average rates for a quarter represent an average of
three month-end rates, weighted according to the income and expense volumes of all operations of the Group with the same functional currency for each month. Weighted average rates for individual business
divisions may deviate from the weighted average rates for the Group.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 62
Note 2 Segment reporting
UBS’s business divisions are organized globally into five business divisions: Global Wealth Management, Personal &
Corporate Banking, Asset Management, the Investment Bank, and Non-core and Legacy. All five business divisions
are supported by Group Items and qualify as reportable segments for the purpose of segment reporting. Together
with Group Items they reflect the management structure of the Group.
›
Refer to the “Consolidated financial statements” section of the UBS Group Annual Report 2024 for more
information about the Group’s reporting segments
Segment reporting
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
UBS Group
For the six months ended 30 June 2025
Net interest income
(34 )
(1,575 )
(23 )
(791 )
Non-interest income
Total revenues
(465 )
Credit loss expense / (release)
(1 )
Operating expenses
Operating profit / (loss) before tax
(642 )
(465 )
Tax expense / (benefit)
Net profit / (loss)
As of 30 June 2025
Total assets
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
UBS Group
For the six months ended 30 June 2024
Net interest income
(31 )
(1,841 )
(1,267 )
Non-interest income
Total revenues
(747 )
Credit loss expense / (release)
(4 )
(2 )
Operating expenses
(48 )
Operating profit / (loss) before tax
(451 )
(699 )
Tax expense / (benefit)
Net profit / (loss)
As of 31 December 2024
Total assets
Note 3 Net interest income
Net interest income
For the quarter ended
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Interest income from loans and deposits
1
Interest income from securities financing transactions measured at amortized cost
2
Interest income from other financial instruments measured at amortized cost
Interest income from debt instruments measured at fair value through other comprehensive income
Interest income from derivative instruments designated as cash flow hedges
(322 )
(351 )
(574 )
(672 )
(1,175 )
Total interest income from financial instruments measured at amortized cost and fair value through other comprehensive income
Interest expense on loans and deposits
3
Interest expense on securities financing transactions measured at amortized cost
4
Interest expense on debt issued
Interest expense on lease liabilities
Total interest expense from financial instruments measured at amortized cost
Total net interest income from financial instruments measured at amortized cost and fair value through other comprehensive
income
Net interest income from financial instruments measured at fair value through profit or loss and other
Total net interest income
1 Consists of interest income from cash and balances at central banks, amounts due from banks, and cash collateral receivables on derivative instruments, as well as negative interest on amounts due to banks, customer
deposits, and cash collateral payables on derivative instruments. 2 Includes interest income on receivables from securities financing transactions and negative interest, including fees, on payables from securities
financing transactions. 3 Consists of interest expense on amounts due to banks, cash collateral payables on derivative instruments, and customer deposits, as well as negative interest on cash and balances at central
banks, amounts due from banks, and cash collateral receivables on derivative instruments. 4 Includes interest expense on payables from securities financing transactions and negative interest, including fees, on
receivables from securities financing transactions.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 63
Note 4 Net fee and commission income
Net fee and commission income
For the quarter ended
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Underwriting fees
M&A and corporate finance fees
Brokerage fees
Investment fund fees
Portfolio management and related services
Other
Total fee and commission income
1
of which: recurring
of which: transaction-based
of which: performance-based
Fee and commission expense
Net fee and commission income
1 Reflects third-party fee and commission income for the second quarter of 2025 of USD
m for Global Wealth Management (first quarter of 2025: USD
m; second quarter of 2024: USD
m), USD
m
for Personal & Corporate Banking (first quarter of 2025: USD
m; second quarter of 2024: USD
m), USD
m for Asset Management (first quarter of 2025: USD
m; second quarter of 2024: USD
m),
USD
m for the Investment Bank (first quarter of 2025: USD
m; second quarter of 2024: USD
m), USD
m for Non-core and Legacy (first quarter of 2025: USD
m; second quarter of 2024: USD
m)
and USD
m for Group Items (first quarter of 2025: USD
m; second quarter of 2024: negative USD
m).
Note 5 Other income
Other income
For the quarter ended
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Associates, joint ventures and subsidiaries
Net gains / (losses) from acquisitions and disposals of subsidiaries
1
2
(2 )
2
(3 )
Net gains / (losses) from disposals of investments in associates and joint ventures
Share of net profit / (loss) of associates and joint ventures
3
3
Total
Income from properties
4
Net gains / (losses) from properties held for sale
(5 )
(2 )
(4 )
Other
5
(31 )
(29 )
Total other income
1 Includes foreign exchange gains / (losses) reclassified from other comprehensive income related to the disposal or closure of foreign operations. 2 Includes a gain of USD
m recognized upon completion of the
sale of Select Portfolio Servicing, the US mortgage servicing business of Credit Suisse, which was managed in Non-core and Legacy. Refer to “Note 29 Changes in organization and acquisitions and disposals of
subsidiaries and businesses” in the “Consolidated financial statements” section of the UBS Group Annual Report 2024 for more information. 3 Includes a gain of USD
m related to UBS’s share of income recorded
by Swisscard for the sale of the Credit Suisse card portfolios to UBS. Refer to “Note 29 Changes in organization and acquisitions and disposals of subsidiaries and businesses” in the “Consolidated financial statements”
section of the UBS Group Annual Report 2024 for more information. 4 Includes rent received from third parties. 5 Includes losses of USD
m for the second quarter of 2025 related to the repurchase of UBS’s own
debt instruments (first quarter of 2025: losses of USD
m; second quarter of 2024: gains of USD
m).
Note 6 Personnel expenses
Personnel expenses
For the quarter ended
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Salaries and variable compensation
1
of which: variable compensation – financial advisors
2
Contractors
Social security
Post-employment benefit plans
Other personnel expenses
Total personnel expenses
1 Includes role-based allowances. 2 Financial advisor compensation consists of cash compensation, determined using a formulaic approach based on production, and deferred awards. It also includes expenses
related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 64
Note 7 General and administrative expenses
General and administrative expenses
For the quarter ended
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Outsourcing costs
Technology costs
Consulting, legal and audit fees
Real estate and logistics costs
Market data services
Marketing and communication
Travel and entertainment
Litigation, regulatory and similar matters
1
(412 )
(153 )
(298 )
(158 )
Other
2
2
Total general and administrative expenses
1 Reflects the net increase / (decrease) in provisions for litigation, regulatory and similar matters recognized in the income statement. The quarters and six-month periods ended 30 June 2025 and 30 June 2024 also
reflect decreases in acquired contingent liabilities measured under IFRS 3. Refer to Note 14b for more information. 2 Includes a USD
m expense related to the payment to Swisscard for the sale of the Credit Suisse
card portfolios to UBS. Refer to “Note 29 Changes in organization and acquisitions and disposals of subsidiaries and businesses” in the “Consolidated financial statements” section of the UBS Group Annual Report
2024 for more information.
Note 8 Expected credit loss measurement
a) Credit loss expense / release
Total net credit loss expenses in the second quarter of 2025 were USD
m, reflecting USD
m net expenses
related to performing positions and USD
m net expenses on credit-impaired positions.
Stage 1 and 2 net expenses of USD
m included scenario-update-related net expenses of USD
m, mainly from
corporate lending and portfolio changes, and USD
m expenses in anticipation of a portfolio re-calibration in the
large corporate clients segment.
Credit loss expenses of USD
m for credit-impaired positions primarily related to Personal & Corporate Banking
and Investment Bank exposures related to a small number of corporate counterparties.
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Purchased
Total
For the quarter ended 30.6.25
Global Wealth Management
(3 )
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
(2 )
(2 )
Group Items
Total
(1 )
For the quarter ended 31.3.25
Global Wealth Management
(7 )
(1 )
Personal & Corporate Banking
(8 )
Asset Management
Investment Bank
(5 )
Non-core and Legacy
(1 )
Group Items
(1 )
(1 )
Total
(21 )
For the quarter ended 30.6.24
Global Wealth Management
(13 )
(1 )
Personal & Corporate Banking
(15 )
(14 )
Asset Management
Investment Bank
(14 )
(6 )
Non-core and Legacy
(1 )
(2 )
(1 )
Group Items
Total
(22 )
(15 )
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 65
Note 8 Expected credit loss measurement (continued)
b) Changes to ECL models, scenarios and scenario weights
Scenarios and scenario weights
The expected credit loss (ECL) scenarios, along with their related macroeconomic factors and market data, were
reviewed in light of the economic and political conditions prevailing in the second quarter of 2025 through a series
of governance meetings, with input and feedback from UBS Risk and Finance experts across the business divisions
and regions.
The baseline scenario was updated with the latest macroeconomic forecasts as of 30 June 2025. The assumptions
on a calendar-year basis are included in the table below and have been revised downward in the US, the Eurozone
and Japan relative to the start of 2025 in the second half of the year following the announcement of US tariffs
imposed on imports from other countries. In general, forecasts for Swiss GDP growth and unemployment are less
optimistic than in 2024, due to spillover effects from the US tariff announcements. Expectations for long-term
interest rates were revised and are marginally lower, while forecasts for house prices remained unchanged.
At the beginning of the first quarter of 2025, UBS replaced the stagflationary geopolitical crisis scenario applied at
the end of 2024 with the global crisis scenario, as the severe downside scenario. It targets risks such as sovereign
defaults, low interest rates, a crisis in the Eurozone and significant emerging market stress. The mild stagflation
crisis scenario replaced the mild debt crisis scenario as the mild downside scenario. In the mild stagflation crisis
scenario, interest rates are assumed to rise rather than decline, as in the previously applied mild debt crisis scenario.
However, the declines in GDP and equities are similar.
UBS kept the scenarios and scenario weights in line with those applied in the UBS Group first quarter 2025 report.
All of the scenarios, including the asset price appreciation
and the baseline scenarios, have been updated based on
the latest macroeconomic forecasts as of 30 June 2025. The assumptions on a calendar-year basis are included in
t
he table below.
Comparison of shock factors
Baseline
Key parameters
2024
2025
2026
Real GDP growth (annual percentage change)
US
Eurozone
Switzerland
Unemployment rate (%, annual average)
US
Eurozone
Switzerland
Fixed income: 10-year government bonds (%, Q4)
USD
EUR
CHF
Real estate (annual percentage change, Q4)
US
Eurozone
Switzerland
Economic scenarios and weights applied
Assigned weights in %
ECL scenario
30.6.25
31.3.25
30.6.24
Asset price appreciation
–
Baseline
Mild debt crisis
–
–
Stagflationary geopolitical crisis
–
–
Mild stagflation crisis
–
Global crisis
–
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 66
Note 8 Expected credit loss measurement (continued)
c) ECL-relevant balance sheet and off-balance sheet positions including ECL allowances and provisions
The following tables provide information about financial instruments and certain non-financial instruments that are
subject to ECL requirements. For amortized-cost instruments, the carrying amount represents the maximum
exposure to credit risk, taking into account the allowance for credit losses. Financial assets measured at fair value
through other comprehensive income (FVOCI) are also subject to ECL; however, unlike amortized-cost instruments,
the allowance for credit losses for FVOCI instruments does not reduce the carrying amount of these financial assets.
Instead, the carrying amount of financial assets measured at FVOCI represents the maximum exposure to credit risk.
In addition to recognized financial assets, certain off-balance sheet financial instruments and other credit lines are
also subject to ECL. The maximum exposure to credit risk for off-balance sheet financial instruments is calculated
based on the maximum contractual amounts.
ECL-relevant balance sheet and off-balance sheet positions
USD m
30.6.25
Carrying amount
1
ECL allowances
2
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Cash and balances at central banks
(72 )
(29 )
(43 )
Amounts due from banks
(10 )
(5 )
(5 )
Receivables from securities financing transactions measured at
amortized cost
(3 )
(3 )
Cash collateral receivables on derivative instruments
Loans and advances to customers
(2,343 )
(343 )
(311 )
(1,395 )
(293 )
of which: Private clients with mortgages
(142 )
(43 )
(49 )
(38 )
(12 )
of which: Real estate financing
(69 )
(25 )
(36 )
(8 )
of which: Large corporate clients
(647 )
(116 )
(97 )
(298 )
(136 )
of which: SME clients
(1,018 )
(74 )
(85 )
(823 )
(35 )
of which: Lombard
(64 )
(11 )
(27 )
(26 )
of which: Credit cards
(48 )
(7 )
(12 )
(29 )
of which: Commodity trade finance
(91 )
(8 )
(82 )
of which: Ship / aircraft financing
(20 )
(15 )
(5 )
of which: Consumer financing
(110 )
(19 )
(23 )
(74 )
Other financial assets measured at amortized cost
(131 )
(25 )
(11 )
(94 )
(1 )
of which: Loans to financial advisors
(39 )
(3 )
(1 )
(35 )
Total financial assets measured at amortized cost
(2,559 )
(378 )
(356 )
(1,489 )
(337 )
Financial assets measured at fair value through other comprehensive
income
Total on-balance sheet financial assets in scope of ECL requirements
(2,559 )
(378 )
(356 )
(1,489 )
(337 )
Total exposure
ECL provisions
2
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Guarantees
(96 )
(14 )
(21 )
(61 )
of which: Large corporate clients
(54 )
(6 )
(5 )
(42 )
of which: SME clients
(31 )
(5 )
(15 )
(11 )
of which: Financial intermediaries and hedge funds
(1 )
(1 )
of which: Lombard
(6 )
(5 )
of which: Commodity trade finance
(1 )
(1 )
Irrevocable loan commitments
(247 )
(139 )
(83 )
(24 )
(2 )
of which: Large corporate clients
(195 )
(101 )
(74 )
(18 )
(1 )
Forward starting reverse repurchase and securities borrowing
agreements
Unconditionally revocable loan commitments
(62 )
(47 )
(15 )
of which: Real estate financing
(3 )
(4 )
of which: Large corporate clients
(15 )
(8 )
(5 )
(2 )
of which: SME clients
(26 )
(20 )
(6 )
of which: Lombard
of which: Credit cards
(9 )
(7 )
(2 )
Irrevocable committed prolongation of existing loans
(2 )
(2 )
Total off-balance sheet financial instruments and other credit lines
(406 )
(201 )
(118 )
(85 )
(2 )
Total allowances and provisions
(2,966 )
(579 )
(474 )
(1,574 )
(338 )
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL allowances. 2 Negative balances are representative of a net improvement in
credit quality since the acquisition of the respective financial instrument, which is reflected as a negative ECL allowance.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 67
Note 8 Expected credit loss measurement (continued)
ECL-relevant balance sheet and off-balance sheet positions
USD m
31.3.25
Carrying amount
1
ECL allowances
2
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Cash and balances at central banks
(60 )
(28 )
(33 )
Amounts due from banks
(9 )
(5 )
(4 )
Receivables from securities financing transactions measured at
amortized cost
(3 )
(3 )
Cash collateral receivables on derivative instruments
Loans and advances to customers
(2,099 )
(289 )
(300 )
(1,228 )
(281 )
of which: Private clients with mortgages
(133 )
(39 )
(50 )
(36 )
(8 )
of which: Real estate financing
(62 )
(26 )
(32 )
(4 )
of which: Large corporate clients
(646 )
(82 )
(111 )
(335 )
(119 )
of which: SME clients
(811 )
(65 )
(67 )
(646 )
(33 )
of which: Lombard
(48 )
(8 )
(18 )
(22 )
of which: Credit cards
(44 )
(8 )
(11 )
(26 )
of which: Commodity trade finance
(81 )
(8 )
(73 )
of which: Ship / aircraft financing
(19 )
(16 )
(4 )
of which: Consumer financing
(92 )
(16 )
(19 )
(62 )
Other financial assets measured at amortized cost
(121 )
(24 )
(8 )
(82 )
(8 )
of which: Loans to financial advisors
(40 )
(3 )
(1 )
(36 )
Total financial assets measured at amortized cost
(2,293 )
(321 )
(340 )
(1,309 )
(322 )
Financial assets measured at fair value through other comprehensive
income
Total on-balance sheet financial assets in scope of ECL requirements
(2,293 )
(321 )
(340 )
(1,309 )
(322 )
Total exposure
ECL provisions
2
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Guarantees
(60 )
(12 )
(20 )
(27 )
of which: Large corporate clients
(14 )
(6 )
(4 )
(4 )
of which: SME clients
(22 )
(3 )
(15 )
(4 )
of which: Financial intermediaries and hedge funds
(1 )
(1 )
of which: Lombard
(6 )
(1 )
(5 )
of which: Commodity trade finance
(1 )
(1 )
Irrevocable loan commitments
(219 )
(116 )
(81 )
(20 )
(2 )
of which: Large corporate clients
(160 )
(84 )
(59 )
(16 )
(2 )
Forward starting reverse repurchase and securities borrowing
agreements
Unconditionally revocable loan commitments
(55 )
(41 )
(14 )
of which: Real estate financing
(3 )
(4 )
of which: Large corporate clients
(15 )
(8 )
(5 )
(2 )
of which: SME clients
(23 )
(18 )
(5 )
of which: Lombard
of which: Credit cards
(8 )
(6 )
(2 )
Irrevocable committed prolongation of existing loans
(3 )
(3 )
Total off-balance sheet financial instruments and other credit lines
(337 )
(172 )
(115 )
(47 )
(2 )
Total allowances and provisions
(2,629 )
(493 )
(455 )
(1,357 )
(324 )
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL allowances. 2 Negative balances are representative of a net improvement in credit
quality since the acquisition of the respective financial instrument, which is reflected as a negative ECL allowance.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 68
N
ote 8 Expected credit loss measurement (continued)
ECL-relevant balance sheet and off-balance sheet positions
USD m
31.12.24
Carrying amount
1
ECL allowances
2
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Cash and balances at central banks
(47 )
(21 )
(25 )
Amounts due from banks
(36 )
(1 )
(5 )
(30 )
Receivables from securities financing transactions measured at
amortized cost
(2 )
(2 )
Cash collateral receivables on derivative instruments
Loans and advances to customers
(1,978 )
(276 )
(323 )
(1,134 )
(244 )
of which: Private clients with mortgages
(160 )
(46 )
(70 )
(30 )
(14 )
of which: Real estate financing
(58 )
(24 )
(27 )
(7 )
of which: Large corporate clients
(573 )
(72 )
(123 )
(277 )
(100 )
of which: SME clients
(742 )
(55 )
(47 )
(613 )
(26 )
of which: Lombard
(42 )
(6 )
(18 )
(18 )
of which: Credit cards
(41 )
(6 )
(11 )
(25 )
of which: Commodity trade finance
(81 )
(9 )
(71 )
of which: Ship / aircraft financing
(31 )
(14 )
(16 )
of which: Consumer financing
(93 )
(15 )
(19 )
(62 )
Other financial assets measured at amortized cost
(125 )
(25 )
(7 )
(84 )
(8 )
of which: Loans to financial advisors
(41 )
(4 )
(1 )
(37 )
Total financial assets measured at amortized cost
(2,187 )
(304 )
(357 )
(1,218 )
(307 )
Financial assets measured at fair value through other comprehensive
income
Total on-balance sheet financial assets in scope of ECL requirements
(2,187 )
(304 )
(357 )
(1,218 )
(307 )
Total exposure
ECL provisions
2
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Guarantees
(64 )
(16 )
(24 )
(24 )
of which: Large corporate clients
(17 )
(7 )
(9 )
(2 )
of which: SME clients
(26 )
(5 )
(15 )
(7 )
of which: Financial intermediaries and hedge funds
(1 )
(1 )
of which: Lombard
(6 )
(1 )
(5 )
of which: Commodity trade finance
(1 )
(1 )
Irrevocable loan commitments
(177 )
(105 )
(61 )
(10 )
(2 )
of which: Large corporate clients
(155 )
(91 )
(54 )
(8 )
(2 )
Forward starting reverse repurchase and securities borrowing
agreements
Unconditionally revocable loan commitments
(76 )
(59 )
(17 )
of which: Real estate financing
(6 )
(4 )
(2 )
of which: Large corporate clients
(22 )
(14 )
(7 )
(2 )
of which: SME clients
(34 )
(28 )
(6 )
of which: Lombard
of which: Credit cards
(8 )
(6 )
(2 )
Irrevocable committed prolongation of existing loans
(3 )
(3 )
Total off-balance sheet financial instruments and other credit lines
(320 )
(183 )
(102 )
(34 )
(2 )
Total allowances and provisions
(2,507 )
(487 )
(459 )
(1,253 )
(309 )
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL allowances. 2 Negative balances are representative of a net improvement in credit
quality since the acquisition of the respective financial instrument, which is reflected as a negative ECL allowance.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 69
Note 8 Expected credit loss measurement (continued)
The table below provides information about the gross carrying amount of exposures subject to ECL and the ECL
coverage ratio for UBS’s core loan portfolios (i.e.
Loans and advances to customers
)
and relevant off-balance sheet exposures.
Cash and balances at central banks
,
Amounts due from banks
,
Receivables from securities financing transactions
,
Cash collateral receivables on derivative instruments
Financial
assets measured at fair value through other comprehensive income
lower sensitivity to ECL.
ECL coverage ratios are calculated by dividing ECL allowances and provisions by the gross carrying amount of the
related exposures.
The overall coverage ratio for performing positions increased by
Compared with 31 March 2025, coverage ratios for performing positions related to real estate lending (on-balance
sheet) were unchanged at
(on-balance sheet) increased by
Coverage ratios for core loan portfolio
30.6.25
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
Real estate financing
Total real estate lending
Large corporate clients
SME clients
Total corporate lending
Lombard
Credit cards
Commodity trade finance
Ship / aircraft financing
Consumer financing
Other loans and advances to customers
Loans to financial advisors
Total other lending
Total
1
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
Real estate financing
Total real estate lending
Large corporate clients
SME clients
Total corporate lending
Lombard
Credit cards
Commodity trade finance
Ship / aircraft financing
Consumer financing
Financial intermediaries and hedge funds
Other off-balance sheet commitments
Total other lending
Total
2
Total on- and off-balance sheet
3
1 Includes Loans and advances to customers and Loans to financial advisors, which are presented on the balance sheet line Other financial assets measured at amortized cost. 2 Excludes Forward starting reverse
repurchase and securities borrowing agreements. 3 Includes on-balance sheet exposure, gross and off-balance sheet exposure (notional) and the related ECL coverage ratio (bps).
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 70
Note 8 Expected credit loss measurement (continued)
Coverage ratios for core loan portfolio
31.3.25
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
Real estate financing
Total real estate lending
Large corporate clients
SME clients
Total corporate lending
Lombard
Credit cards
Commodity trade finance
Ship / aircraft financing
Consumer financing
Other loans and advances to customers
Loans to financial advisors
Total other lending
Total
1
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
Real estate financing
Total real estate lending
Large corporate clients
SME clients
Total corporate lending
Lombard
Credit cards
Commodity trade finance
Ship / aircraft financing
Consumer financing
Financial intermediaries and hedge funds
Other off-balance sheet commitments
Total other lending
Total
2
Total on- and off-balance sheet
3
1 Includes Loans and advances to customers and Loans to financial advisors, which are presented on the balance sheet line Other financial assets measured at amortized cost. 2 Excludes Forward starting reverse
repurchase and securities borrowing agreements. 3 Includes on-balance sheet exposure, gross and off-balance sheet exposure (notional) and the related ECL coverage ratio (bps).
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 71
Note 8 Expected credit loss measurement (continued)
Coverage ratios for core loan portfolio
31.12.24
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
Real estate financing
Total real estate lending
Large corporate clients
SME clients
Total corporate lending
Lombard
Credit cards
Commodity trade finance
Ship / aircraft financing
Consumer financing
Other loans and advances to customers
Loans to financial advisors
Total other lending
Total
1
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
Real estate financing
Total real estate lending
Large corporate clients
SME clients
Total corporate lending
Lombard
Credit cards
Commodity trade finance
Ship / aircraft financing
Consumer financing
Financial intermediaries and hedge funds
Other off-balance sheet commitments
Total other lending
Total
2
Total on- and off-balance sheet
3
1 Includes Loans and advances to customers and Loans to financial advisors, which are presented on the balance sheet line Other financial assets measured at amortized cost. 2 Excludes Forward starting reverse
repurchase and securities borrowing agreements. 3 Includes on-balance sheet exposure, gross and off-balance sheet exposure (notional) and the related ECL coverage ratio (bps).
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 72
Note 9 Fair value measurement
a) Fair value hierarchy
The fair value hierarchy classification of financial and non-financial assets and liabilities measured at fair value is
summarized in the table below.
During the first six months of 2025, assets and liabilities that were transferred from Level 2 to Level 1, or from
L
evel 1 to Level 2, and were held for the entire reporting period were not material.
Determination of fair values from quoted market prices or valuation techniques
1
30.6.25
31.3.25
31.12.24
USD m
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial assets measured at fair value on a recurring basis
Financial assets at fair value held for trading
of which: Equity instruments
of which: Government bills / bonds
of which: Investment fund units
of which: Corporate and municipal bonds
of which: Loans
of which: Asset-backed securities
Derivative financial instruments
of which: Foreign exchange
of which: Interest rate
of which: Equity / index
of which: Credit
of which: Commodities
Brokerage receivables
Financial assets at fair value not held for trading
of which: Financial assets for unit-linked
investment contracts
of which: Corporate and municipal bonds
of which: Government bills / bonds
of which: Loans
of which: Securities financing transactions
of which: Asset-backed securities
of which: Auction rate securities
of which: Investment fund units
of which: Equity instruments
Financial assets measured at fair value through other comprehensive income on a recurring basis
Financial assets measured at fair value through
other comprehensive income
of which: Government bills / bonds
of which: Commercial paper and certificates
of deposit
of which: Corporate and municipal bonds
Non-financial assets measured at fair value on a recurring basis
Precious metals and other physical commodities
Non-financial assets measured at fair value on a non-recurring basis
Other non-financial assets
2
Total assets measured at fair value
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 73
Note 9 Fair value measurement (continued)
Determination of fair values from quoted market prices or valuation techniques
(continued)
1
30.6.25
31.3.25
31.12.24
USD m
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial liabilities measured at fair value on a recurring basis
Financial liabilities at fair value held for trading
of which: Equity instruments
of which: Corporate and municipal bonds
of which: Government bills / bonds
of which: Investment fund units
Derivative financial instruments
of which: Foreign exchange
of which: Interest rate
of which: Equity / index
of which: Credit
of which: Commodities
of which: Loan commitments measured at
FVTPL
Financial liabilities designated at fair value on a recurring basis
Brokerage payables designated at fair value
Debt issued designated at fair value
Other financial liabilities designated at fair value
of which: Financial liabilities related to unit-
linked investment contracts
of which: Securities financing transactions
of which: Over-the-counter debt instruments
and others
Total liabilities measured at fair value
1 Bifurcated embedded derivatives are presented on the same balance sheet lines as their host contracts and are not included in this table. The fair value of these derivatives was not material for the periods presented.
2 Other non-financial assets primarily consist of properties and other non-current assets held for sale, which are measured at the lower of their net carrying amount or fair value less costs to sell.
b) Valuation adjustments
The table below summarizes the changes in deferred day-1 profit or loss reserves during the relevant period.
Deferred day-1 profit or loss is generally released into
Other net income from financial instruments measured at fair
value through profit or loss
observable or when the transaction is closed out.
Deferred day-1 profit or loss reserves
For the quarter ended
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Reserve balance at the beginning of the period
Profit / (loss) deferred on new transactions
(Profit) / loss recognized in the income statement
(41 )
(95 )
(55 )
(135 )
(116 )
Foreign currency translation
(1 )
(1 )
(1 )
(2 )
(1 )
Reserve balance at the end of the period
The table below summarizes other valuation adjustment reserves recognized on the balance sheet.
Other valuation adjustment reserves on the balance sheet
As of
USD m
30.6.25
31.3.25
31.12.24
Own credit adjustments on financial liabilities designated at fair value
1
(1,040 )
(897 )
(1,165 )
of which: debt issued designated at fair value
(1,080 )
(929 )
(1,188 )
of which: other financial liabilities designated at fair value
Credit valuation adjustments
2
(40 )
(128 )
(125 )
Funding and debit valuation adjustments
(87 )
(69 )
(96 )
Other valuation adjustments
(966 )
(971 )
(1,207 )
of which: liquidity
(586 )
(570 )
(746 )
of which: model uncertainty
(380 )
(401 )
(460 )
1 Own credit adjustments on financial liabilities designated at fair value includes amounts for TLAC notes. 2 Amount does not include reserves against defaulted counterparties.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 74
Note 9 Fair value measurement (continued)
c) Level 3 instruments: valuation techniques and inputs
The table below presents material Level 3 assets and liabilities, together with the valuation techniques used to
measure fair value, as well as the inputs used in a given valuation technique that are considered significant as of
30 June 2025 and unobservable, and a range of values for those unobservable inputs.
The range of values represents the highest- and lowest-level inputs used in the valuation techniques. Therefore, the
range does not reflect the level of uncertainty regarding a particular input or an assessment of the reasonableness of
the Group’s estimates and assumptions, but rather the different underlying characteristics of the relevant assets and
liabilities held by the Group.
The significant unobservable inputs disclosed in the table below are consistent with those included in “Note 21 Fair
value measurement” in the “Consolidated financial statements” section of the UBS Group Annual Report 2024.
Valuation techniques and inputs used in the fair value measurement of Level 3 assets and liabilities
Fair value
Significant unobservable
input(s)
1
Range of inputs
Assets
Liabilities
Valuation technique(s)
30.6.25
31.12.24
USD bn
30.6.25
31.12.24
30.6.25
31.12.24
low
high
weighted
average
2
low
high
weighted
average
2
unit
1
Financial assets and liabilities at fair value held for trading and Financial assets at fair value not held for trading
Corporate and municipal
bonds
Relative value to
market comparable
Bond price equivalent
points
Loans at fair value (held for
trading and not held for
trading) and guarantees
3
Relative value to
market comparable
Loan price equivalent
points
Discounted expected
cash flows
Credit spread
basis
points
Market comparable
and securitization
model
Credit spread
basis
points
Asset-backed securities
Relative value to
market comparable
Bond price equivalent
points
Investment fund units
4
Relative value to
market comparable
Net asset value
Equity instruments
4
Relative value to
market comparable
Price
Debt issued designated at
fair value
3
Other financial liabilities
designated at fair value
3
Discounted expected
cash flows
Funding spread
basis
points
Derivative financial instruments
Interest rate
Option model
Volatility of interest rates
basis
points
IR-to-IR correlation
%
Discounted expected
cash flows
Funding spread
basis
points
Credit
Discounted expected
cash flows
Credit spreads
basis
points
Credit correlation
%
Recovery rates
%
Option model
Credit volatility
%
Recovery rates
%
Equity / index
Option model
Equity dividend yields
%
Volatility of equity stocks,
equity and other indices
%
Equity-to-FX correlation
(65 )
(65 )
%
Equity-to-equity correlation
(10 )
%
Loan commitments
measured at FVTPL
Relative value to
market comparable
Loan price equivalent
points
1 The ranges of significant unobservable inputs are represented in points, percentages and basis points. Points are a percentage of par (e.g. 100 points would be 100% of par). 2 Weighted averages are provided for
most non-derivative financial instruments and were calculated by weighting inputs based on the fair values of the respective instruments. Weighted averages are not provided for inputs related to Other financial liabilities
designated at fair value and Derivative financial instruments, as this would not be meaningful. 3 Debt issued designated at fair value primarily consists of UBS structured notes, which include variable maturity notes
with various equity and foreign exchange underlying risks, as well as rates-linked and credit-linked notes, all of which have embedded derivative parameters that are considered to be unobservable. The derivative
instrument parameters for debt issued designated at fair value, embedded derivatives for over-the-counter debt instruments reported under Other financial liabilities designated at fair value and funded derivatives
reported under Loans at fair value (held for trading and not held for trading) are presented in the corresponding derivative financial instruments lines in this table. 4 The range of inputs is not disclosed, as there is a
dispersion of values given the diverse nature of the investments.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 75
Note 9 Fair value measurement (continued)
d) Level 3 instruments: sensitivity to changes in unobservable input assumptions
The table below summarizes those financial assets and liabilities classified as Level 3 for which a change in one or
more of the unobservable inputs to reflect reasonably possible alternative assumptions would change fair value
significantly, and the estimated effect thereof.
The sensitivity data shown below presents an estimation of valuation uncertainty based on reasonably possible
alternative values for Level 3 inputs at the balance sheet date and does not represent the estimated effect of stress
scenarios. Typically, these financial assets and liabilities are sensitive to a combination of inputs from Levels 1–3.
Although well-defined interdependencies may exist between Level 1 / 2 parameters and Level 3 parameters (e.g.
between interest rates, which are generally Level 1 or Level 2, and prepayments, which are generally Level 3), these
have not been incorporated in the table. Furthermore, direct interrelationships between the Level 3 parameters are
not a significant element of the valuation uncertainty.
Sensitivity of fair value measurements to changes in unobservable input assumptions
1
30.6.25
31.3.25
31.12.24
USD m
Favorable
changes
Unfavorable
changes
Favorable
changes
Unfavorable
changes
Favorable
changes
Unfavorable
changes
Loans at fair value (held for trading and not held for trading) and guarantees
2
(112 )
(115 )
(143 )
Securities financing transactions
(14 )
(20 )
(24 )
Auction rate securities
(4 )
(6 )
(6 )
Asset-backed securities
(17 )
(18 )
(28 )
Equity instruments
(370 )
(314 )
(308 )
Investment fund units
(180 )
(178 )
(181 )
Loan commitments measured at FVTPL
(41 )
(47 )
(42 )
Interest rate derivatives, net
(58 )
(65 )
(70 )
Credit derivatives, net
(108 )
(108 )
(117 )
Foreign exchange derivatives, net
(5 )
(3 )
(2 )
Equity / index derivatives, net
(577 )
(503 )
(617 )
Other
(115 )
(152 )
(161 )
Total
(1,601 )
(1,528 )
(1,700 )
1 Sensitivity of issued and over-the-counter debt instruments is reported with the equivalent derivative or Other. 2 Sensitivity of funded derivatives is reported under equivalent derivatives.
e) Level 3 instruments: movements during the period
The table below presents additional information about material Level 3 assets and liabilities measured at fair value
on a recurring basis. Level 3 assets and liabilities may be hedged with instruments classified as Level 1 or Level 2 in
the fair value hierarchy and, as a result, realized and unrealized gains and losses included in the table may not
include the effect of related hedging activity. Furthermore, the realized and unrealized gains and losses presented
in the table are not limited solely to those arising from Level 3 inputs, as valuations are generally derived from both
observable and unobservable parameters.
Assets and liabilities transferred into or out of Level 3 are presented as if those assets or liabilities had been
transferred on 1 January 2025.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 76
N
ote 9 Fair value measurement (continued)
Movements of Level 3 instruments
USD bn
Balance
at the
beginning
of the
period
Net gains /
losses
included in
compre-
hensive
income
1
of which:
related to
instruments
held at the
end of the
period
Purchases
Sales
Issuances
Settlements
Transfers
into
Level 3
Transfers
out of
Level 3
Foreign
currency
translation
Balance
at the
end
of the
period
For the six months ended 30 June 2025
2
Financial assets at fair value held for
trading
(0.0 )
(0.1 )
(1.1 )
(0.4 )
(0.1 )
of which: Equity instruments
(0.0 )
(0.0 )
(0.0 )
(0.0 )
(0.0 )
of which: Corporate and municipal
bonds
(0.0 )
(0.0 )
(0.4 )
(0.0 )
(0.1 )
of which: Loans
(0.0 )
(0.5 )
(0.3 )
(0.0 )
Derivative financial instruments –
assets
(0.0 )
(0.0 )
(0.9 )
(0.3 )
of which: Interest rate
(0.0 )
(0.2 )
(0.0 )
(0.1 )
of which: Equity / index
(0.2 )
(0.2 )
(0.3 )
(0.2 )
of which: Credit
(0.0 )
(0.3 )
(0.1 )
Financial assets at fair value not held
for trading
(0.3 )
(0.8 )
(0.1 )
of which: Loans
(0.0 )
(0.7 )
(0.0 )
of which: Auction rate securities
of which: Equity instruments
(0.1 )
(0.0 )
(0.0 )
of which: Investment fund units
(0.1 )
(0.0 )
of which: Asset-backed securities
(0.0 )
(0.0 )
(0.1 )
(0.0 )
Derivative financial instruments –
liabilities
(0.0 )
(1.0 )
(0.6 )
of which: Interest rate
(0.0 )
(0.1 )
(0.0 )
of which: Equity / index
(0.6 )
(0.5 )
of which: Credit
(0.0 )
(0.1 )
(0.2 )
(0.0 )
(0.0 )
of which: Loan commitments
measured at FVTPL
(0.0 )
(0.0 )
(0.0 )
(0.0 )
Debt issued designated at fair value
(1.7 )
(2.9 )
Other financial liabilities designated at
fair value
(0.0 )
(0.0 )
(0.0 )
(0.8 )
(0.0 )
For the six months ended 30 June 2024
Financial assets at fair value held for
trading
(0.3 )
(11.6 )
(5.7 )
(0.7 )
(0.1 )
of which: Equity instruments
(0.0 )
(0.0 )
(0.0 )
(0.0 )
(0.1 )
(0.0 )
of which: Corporate and municipal
bonds
(0.1 )
(0.0 )
(0.5 )
(0.1 )
(0.0 )
of which: Loans
(0.2 )
(9.9 )
(5.7 )
(0.6 )
(0.1 )
Derivative financial instruments –
assets
(0.0 )
(0.0 )
(0.5 )
(0.6 )
(0.0 )
of which: Interest rate
(0.0 )
(0.1 )
(0.0 )
of which: Equity / index
(0.0 )
(0.0 )
(0.0 )
(0.2 )
(0.4 )
(0.0 )
of which: Credit
(0.1 )
(0.0 )
(0.0 )
(0.1 )
(0.0 )
(0.0 )
Financial assets at fair value not held
for trading
(0.2 )
(0.3 )
(0.2 )
(1.7 )
(0.2 )
(0.1 )
of which: Loans
(0.1 )
(0.1 )
(0.0 )
(0.3 )
(0.1 )
(0.1 )
of which: Auction rate securities
(0.0 )
(1.1 )
of which: Equity instruments
(0.1 )
(0.1 )
(0.1 )
(0.1 )
of which: Investment fund units
(0.1 )
(0.0 )
(0.0 )
(0.0 )
of which: Asset-backed securities
(0.0 )
(0.0 )
(0.0 )
(0.0 )
(0.0 )
Derivative financial instruments –
liabilities
(0.8 )
(0.3 )
(0.2 )
(1.4 )
(0.6 )
(0.0 )
of which: Interest rate
(0.1 )
(0.0 )
(0.0 )
(0.0 )
of which: Equity / index
(0.1 )
(1.1 )
(0.5 )
(0.0 )
of which: Credit
(0.1 )
(0.1 )
(0.0 )
(0.2 )
(0.0 )
(0.0 )
of which: Loan commitments
measured at FVTPL
(0.6 )
(0.2 )
(0.1 )
(0.0 )
(0.0 )
Debt issued designated at fair value
(0.4 )
(0.0 )
(2.9 )
(2.7 )
(0.1 )
Other financial liabilities designated at
fair value
(0.1 )
(0.0 )
(0.0 )
(0.5 )
(0.1 )
(0.0 )
1 Net gains / losses included in comprehensive income are recognized in Net interest income and Other net income from financial instruments measured at fair value through profit or loss in the Income statement,
and also in Gains / (losses) from own credit on financial liabilities designated at fair value, before tax in the Statement of comprehensive income. 2 Total Level 3 assets as of 30 June 2025 were USD
bn
(31 December 2024: USD
bn). Total Level 3 liabilities as of 30 June 2025 were USD
bn (31 December 2024: USD
bn).
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 77
Note 9 Fair value measurement (continued)
f) Financial instruments not measured at fair value
The table below reflects the estimated fair values of financial instruments not measured at fair value. Valuation
principles applied when determining fair value estimates for financial instruments not measured at fair value are
consistent with those described in “Note 21 Fair value measurement” in the “Consolidated financial statements”
section of the UBS Group Annual Report 2024.
Financial instruments not measured at fair value
30.6.25
31.3.25
31.12.24
USD bn
Carrying
amount
Fair value
Carrying
amount
Fair value
Carrying
amount
Fair value
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
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
Other financial liabilities measured at amortized cost
1
1 Excludes lease liabilities.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 78
Note 10
Derivative instruments
a) Derivative instruments
As of 30.6.25, USD bn
Derivative
financial
assets
Derivative
financial
liabilities
Notional values
related to derivative
financial assets and
liabilities
1
Other
notional
values
2
Derivative financial instruments
Interest rate
Credit derivatives
Foreign exchange
Equity / index
Commodities
Other
3
Total derivative financial instruments, based on netting under IFRS Accounting Standards
4
Further netting potential not recognized on the balance sheet
5
(152.9 )
(161.9 )
of which: netting of recognized financial liabilities / assets
(130.4 )
(130.4 )
of which: netting with collateral received / pledged
(22.5 )
(31.5 )
Total derivative financial instruments, after consideration of further netting potential
As of 31.3.25, USD bn
Derivative financial instruments
Interest rate
Credit derivatives
Foreign exchange
Equity / index
Commodities
Other
3
Total derivative financial instruments, based on netting under IFRS Accounting Standards
4
Further netting potential not recognized on the balance sheet
5
(122.6 )
(127.8 )
of which: netting of recognized financial liabilities / assets
(100.8 )
(100.8 )
of which: netting with collateral received / pledged
(21.8 )
(27.0 )
Total derivative financial instruments, after consideration of further netting potential
As of 31.12.24, USD bn
Derivative financial instruments
Interest rate
Credit derivatives
Foreign exchange
Equity / index
Commodities
Other
3
Total derivative financial instruments, based on netting under IFRS Accounting Standards
4
Further netting potential not recognized on the balance sheet
5
(161.7 )
(166.3 )
of which: netting of recognized financial liabilities / assets
(135.5 )
(135.5 )
of which: netting with collateral received / pledged
(26.2 )
(30.8 )
Total derivative financial instruments, after consideration of further netting potential
1 In cases where derivative financial instruments are presented on a net basis on the balance sheet, the respective notional values of the netted derivative financial instruments are still presented on a gross basis.
Notional amounts of client-cleared ETD and OTC transactions through central clearing counterparties are not disclosed, as they have a significantly different risk profile. 2 Other notional values relate to derivatives
that are cleared through either a central counterparty or an exchange and settled on a daily basis. The fair value of these derivatives is presented on the balance sheet within Cash collateral receivables on derivative
instruments and Cash collateral payables on derivative instruments. 3 Includes Loan commitments measured at FVTPL, as well as unsettled purchases and sales of non-derivative financial instruments for which the
changes in the fair value between trade date and settlement date are recognized as derivative financial instruments. 4 Financial assets and liabilities are presented net on the balance sheet if UBS has the unconditional
and legally enforceable right to offset the recognized amounts, both in the normal course of business and in the event of def ault, bankruptcy or insolvency of UBS or its counterparties, and intends either to settle on
a net basis or to realize the asset and settle the liability simultaneously. Refer to “Note 22 Offsetting financial assets and financial liabilities” in the “Consolidated financial statements” section of the UBS Group
Annual Report 2024 for more information. 5 Reflects the netting potential in accordance with enforceable master netting and similar arrangements where not all criteria for a net presentation on the balance sheet
have been met. Refer to “Note 22 Offsetting financial assets and financial liabilities” in the “Consolidated financial statements” section of the UBS Group Annual Report 2024 for more information.
b) Cash collateral on derivative instruments
USD bn
Receivables
30.6.25
Payables
30.6.25
Receivables
31.3.25
Payables
31.3.25
Receivables
31.12.24
Payables
31.12.24
Cash collateral on derivative instruments, based on netting under IFRS Accounting
Standards
1
Further netting potential not recognized on the balance sheet
2
(29.2 )
(17.0 )
(24.3 )
(16.6 )
(28.3 )
(21.7 )
of which: netting of recognized financial liabilities / assets
(27.3 )
(15.0 )
(22.2 )
(14.5 )
(25.9 )
(19.3 )
of which: netting with collateral received / pledged
(2.0 )
(2.0 )
(2.1 )
(2.1 )
(2.4 )
(2.4 )
Cash collateral on derivative instruments, after consideration of further netting potential
1 Financial assets and liabilities are presented net on the balance sheet if UBS has the unconditional and legally enforceable right to offset the recognized amounts, both in the normal course of business and in the
event of default, bankruptcy or insolvency of UBS or its counterparties, and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. 2 Reflects the netting potential in
accordance with enforceable master netting and similar arrangements where not all criteria for a net presentation on the balance sheet have been met. Refer to “Note 22 Offsetting financial assets and financial
liabilities” in the “Consolidated financial statements” section of the UBS Group Annual Report 2024 for more information.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 79
Note
11
Other assets and liabilities
a) Other financial assets measured at amortized cost
USD m
30.6.25
31.3.25
31.12.24
Debt securities
Loans to financial advisors
Fee- and commission-related receivables
Finance lease receivables
Settlement and clearing accounts
Accrued interest income
Other
1
Total other financial assets measured at amortized cost
1 Predominantly includes cash collateral provided to exchanges and clearing houses to secure securities trading activity through those counterparties.
b) Other non-financial assets
USD m
30.6.25
31.3.25
31.12.24
Precious metals and other physical commodities
Deposits and collateral provided in connection with litigation, regulatory and similar matters
1
Prepaid expenses
Current tax assets
VAT, withholding tax and other tax receivables
Properties and other non-current assets held for sale
Assets of disposal groups held for sale
2
Other
Total other non-financial assets
1 Refer to Note 14 for more information. 2 Refer to Note 5 for more information about the sale of Select Portfolio Servicing.
c) Other financial liabilities measured at amortized cost
USD m
30.6.25
31.3.25
31.12.24
Other accrued expenses
Accrued interest expenses
Settlement and clearing accounts
Lease liabilities
Other
Total other financial liabilities measured at amortized cost
d) Other financial liabilities designated at fair value
USD m
30.6.25
31.3.25
31.12.24
Financial liabilities related to unit-linked investment contracts
Securities financing transactions
Over-the-counter debt instruments and other
Total other financial liabilities designated at fair value
e) Other non-financial liabilities
USD m
30.6.25
31.3.25
31.12.24
Compensation-related liabilities
of which: net defined benefit liability
Current tax liabilities
Deferred tax liabilities
VAT, withholding tax and other tax payables
Deferred income
Liabilities of disposal groups held for sale
1
Other
Total other non-financial liabilities
1 Refer to Note 5 for more information about the sale of Select Portfolio Servicing.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 80
Note
12
Debt issued designated at fair value
Debt issued designated at fair value
USD m
30.6.25
31.3.25
31.12.24
Equity-linked
1
Rates-linked
Credit-linked
Fixed-rate
Commodity-linked
Other
of which: debt that contributes to total loss-absorbing capacity
Total debt issued designated at fair value
2
of which: issued by UBS AG standalone with original maturity greater than one year
3
of which: issued by Credit Suisse International standalone with original maturity greater than one year
3
1 Includes investment fund unit-linked instruments issued. 2 As of 30 June 2025,
% of Total debt issued designated at fair value was unsecured (31 March 2025:
% and 31 December 2024:
%).
3 Based on original contractual maturity without considering any early redemption features.
Note
13
Debt issued measured at amortized cost
Debt issued measured at amortized cost
USD m
30.6.25
31.3.25
31.12.24
Short-term debt
1
Senior unsecured debt
of which: contributes to total loss-absorbing capacity
of which: issued by UBS AG standalone with original maturity greater than one year
Covered bonds
Subordinated debt
of which: eligible as high-trigger loss-absorbing additional tier 1 capital instruments
2
of which: eligible as low-trigger loss-absorbing additional tier 1 capital instruments
of which: eligible as non-Basel III-compliant tier 2 capital instruments
Debt issued through the Swiss central mortgage institutions
Other long-term debt
Long-term debt
3
Total debt issued measured at amortized cost
4,5
1 Debt with an original contractual maturity of less than one year, includes mainly certificates of deposit and commercial paper. 2 For 30 June 2025, includes USD
bn (31 March 2025: USD
bn and
31 December 2024: USD
bn) that are, upon the occurrence of a trigger event or a viability event, subject to conversion into ordinary UBS shares. 3 Debt with an original contractual maturity greater than or equal
to one year. The classification of debt issued into short-term and long-term does not consider any early redemption features. 4 Net of bifurcated embedded derivatives, the fair value of which was not material for
the periods presented. 5 Except for Covered bonds (
% secured), Debt issued through the Swiss central mortgage institutions (
% secured) and Other long-term debt (
% secured),
% of the balance was
unsecured as of 30 June 2025.
Note 14 Provisions and contingent liabilities
a) Provisions and contingent liabilities
T
he table below presents an overview of total provisions and contingent liabilities.
Overview of total provisions and contingent liabilities
USD m
30.6.25
31.3.25
31.12.24
Provisions related to expected credit losses (IFRS 9,
Financial Instruments
)
1
Provisions related to Credit Suisse loan commitments (IFRS 3,
Business Combinations
)
Provisions related to litigation, regulatory and similar matters (IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
)
Acquisition-related contingent liabilities relating to litigation, regulatory and similar matters (IFRS 3,
Business Combinations
)
Restructuring, real-estate and other provisions (IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
)
Total provisions and contingent liabilities
1 Refer to Note 8c for more information about ECL provisions recognized for off-balance sheet financial instruments and credit lines.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 81
Note 14 Provisions and contingent liabilities (continued)
The table below presents additional information for provisions under IAS 37,
Provisions, Contingent Liabilities and
Contingent Assets
.
Additional information for provisions under IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
USD m
Litigation,
regulatory and
similar matters
1
Restructuring
2
Real estate
3
Other
4
Total
Balance as of 31 December 2024
Balance as of 31 March 2025
Increase in provisions recognized in the income statement
5
Release of provisions recognized in the income statement
(137 )
(180 )
(4 )
(26 )
(348 )
Provisions used in conformity with designated purpose
(703 )
6
(281 )
(2 )
(17 )
(1,003 )
Reclassifications
7
Foreign currency translation and other movements
Balance as of 30 June 2025
1 Consists of provisions for losses resulting from legal, liability and compliance risks. 2 Includes USD
m of provisions for onerous contracts related to real estate as of 30 June 2025 (31 March 2025: USD
m;
31 December 2024: USD
m), USD
m of personnel-related restructuring provisions as of 30 June 2025 (31 March 2025: USD
m; 31 December 2024: USD
m) and USD
m of provisions for onerous
contracts related to technology as of 30 June 2025 (31 March 2025: USD
m; 31 December 2024: USD
m). 3 Mainly includes provisions for reinstatement costs with respect to leased properties. 4 Mainly
includes provisions related to employee benefits, VAT and operational risks. 5 Includes a new provision for the estimated costs associated with UBS's ongoing obligations as described in item 1 of section b) of this
Note. 6 Mainly includes provisions used for the resolution reached with the US Department of Justice in the second quarter of 2025 as described in item 1 of section b) of this Note. 7 Includes reclassifications
from IFRS 3 contingent liabilities to IAS 37 provisions.
Information about provisions and contingent liabilities in respect of litigation, regulatory and similar matters, as a
class, is included in Note 14b. There are no material contingent liabilities associated with the other classes of
provisions.
b) Litigation, regulatory and similar matters
The Group operates in a legal and regulatory environment that exposes it to significant litigation and similar risks
arising from disputes and regulatory proceedings. As a result, UBS (which for purposes of this Note may refer to
UBS Group AG and/or one or more of its subsidiaries, as applicable) is involved in various disputes and legal
proceedings, including litigation, arbitration, and regulatory and criminal investigations.
Such matters are subject to many uncertainties, and the outcome and the timing of resolution are often difficult to
predict, particularly in the earlier stages of a case. There are also situations where the Group may enter into a
settlement agreement. This may occur in order to avoid the expense, management distraction or reputational
implications of continuing to contest liability, even for those matters for which the Group believes it should be
exonerated. The uncertainties inherent in all such matters affect the amount and timing of any potential outflows
for both matters with respect to which provisions have been established and other contingent liabilities. The Group
makes provisions for such matters brought against it when, in the opinion of management after seeking legal
advice, it is more likely than not that the Group has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be required, and the amount can be reliably estimated. Where
these factors are otherwise satisfied, a provision may be established for claims that have not yet been asserted
against the Group, but are nevertheless expected to be, based on the Group’s experience with similar asserted
claims. If any of those conditions is not met, such matters result in contingent liabilities. If the amount of an
obligation cannot be reliably estimated, a liability exists that is not recognized even if an outflow of resources is
probable. Accordingly, no provision is established even if the potential outflow of resources with respect to such
matters could be significant. Developments relating to a matter that occur after the relevant reporting period, but
prior to the issuance of financial statements, which affect management’s assessment of the provision for such
matter (because, for example, the developments provide evidence of conditions that existed at the end of the
reporting period), are adjusting events after the reporting period under IAS 10 and must be recognized in the
financial statements for the reporting period.
Specific litigation, regulatory and other matters are described below, including all such matters that management
considers to be material and others that management believes to be of significance to the Group due to potential
financial, reputational and other effects. The amount of damages claimed, the size of a transaction or other
information is provided where available and appropriate in order to assist users in considering the magnitude of
potential exposures.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 82
Note 14 Provisions and contingent liabilities (continued)
In the case of certain matters below, we state that we have established a provision, and for the other matters, we
make no such statement. When we make this statement and we expect disclosure of the amount of a provision to
prejudice seriously our position with other parties in the matter because it would reveal what UBS believes to be
the probable and reliably estimable outflow, we do not disclose that amount. In some cases we are subject to
confidentiality obligations that preclude such disclosure. With respect to the matters for which we do not state
whether we have established a provision, either: (a) we have not established a provision; or (b) we have established
a provision but expect disclosure of that fact to prejudice seriously our position with other parties in the matter
because it would reveal the fact that UBS believes an outflow of resources to be probable and reliably estimable.
With respect to certain litigation, regulatory and similar matters for which we have established provisions, we are
able to estimate the expected timing of outflows. However, the aggregate amount of the expected outflows for
those matters for which we are able to estimate expected timing is immaterial relative to our current and expected
levels of liquidity over the relevant time periods.
The aggregate amount provisioned for litigation, regulatory and similar matters as a class is disclosed in the
“Provisions” table in Note 14 a) above. UBS provides below an estimate of the aggregate liability for its litigation,
regulatory and similar matters as a class of contingent liabilities. Estimates of contingent liabilities are inherently
imprecise and uncertain as these estimates require UBS to make speculative legal assessments as to claims and
proceedings that involve unique fact patterns or novel legal theories, that have not yet been initiated or are at early
stages of adjudication, or as to which alleged damages have not been quantified by the claimants. Taking into
account these uncertainties and the other factors described herein, UBS estimates the future losses that could arise
from litigation, regulatory and similar matters disclosed below for which an estimate is possible, that are not covered
by existing provisions (including acquisition-related contingent liabilities established under IFRS 3 in connection with
the acquisition of Credit Suisse), are in the range of USD
bn to USD
bn.
Litigation, regulatory and similar matters may also result in non-monetary penalties and consequences. A guilty plea
to, or conviction of, a crime could have material consequences for UBS. Resolution of regulatory proceedings may
require UBS to obtain waivers of regulatory disqualifications to maintain certain operations, may entitle regulatory
authorities to limit, suspend or terminate licenses and regulatory authorizations, and may permit financial market
utilities to limit, suspend or terminate UBS’s participation in such utilities. Failure to obtain such waivers, or any
limitation, suspension or termination of licenses, authorizations or participations, could have material consequences
for UBS.
The amounts shown in the table below reflect the provisions recorded under IFRS Accounting Standards. In
connection with the acquisition of Credit Suisse, UBS Group AG additionally has reflected in its purchase accounting
under IFRS 3 a valuation adjustment reflecting an estimate of outflows relating to contingent liabilities for all present
obligations included in the scope of the acquisition at fair value upon closing, even if it is not probable that the
contingent liability will result in an outflow of resources, significantly decreasing the recognition threshold for
litigation liabilities beyond those that generally apply under IFRS Accounting Standards. The IFRS 3 acquisition-
related contingent liabilities of USD
bn at 30 June 2025 reflect a decrease of USD
bn from 31 March 2025
a
s a result of releases upon resolution of the relevant matter and reclassifications to provisions under IAS 37.
Provisions for litigation, regulatory and similar matters, by business division and in Group Items
1
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core
and Legacy
Group Items
UBS Group
Balance as of 31 December 2024
Balance as of 31 March 2025
Increase in provisions recognized in the income statement
Release of provisions recognized in the income statement
(2 )
(3 )
(132 )
(137 )
Provisions used in conformity with designated purpose
(15 )
(11 )
(673 )
(4 )
(703 )
Reclassifications
4
Foreign currency translation and other movements
Balance as of 30 June 2025
1 Provisions, if any, for the matters described in items 2 and 9 of this Note are recorded in Global Wealth Management. Provisions, if any, for the matters described in items 4, 5, 6, 7, 8, 11 and 12 of this Note are
recorded in Non-core and Legacy. Provisions, if any, for the matters described in item 1 of this Note are allocated between Global Wealth Management, Personal & Corporate Banking and Non-core and Legacy.
Provisions, if any, for the matters described in item 3 of this Note are allocated between the Investment Bank, Non-core and Legacy and Group Items. Provisions, if any, for the matters described in item 10 of this Note
are allocated between the Investment Bank and Non-core and Legacy. 2 Includes a new provision for the estimated costs of UBS's ongoing obligations with the US Department of Justice as described in item 1 of
this Note. 3 Mainly includes provisions used for the resolution reached with the US Department of Justice in the second quarter of 2025 as described in item 1 of this Note. 4 Includes reclassifications from IFRS 3
contingent liabilities to IAS 37 provisions.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 83
Note 14 Provisions and contingent liabilities (continued)
1. Inquiries regarding cross-border wealth management businesses
Tax and regulatory authorities in a number of countries have made inquiries, served requests for information or
examined employees located in their respective jurisdictions relating to the cross-border wealth management
services provided by UBS and other financial institutions. Credit Suisse offices in various locations, including the UK,
the Netherlands, France and Belgium, have been contacted by regulatory and law enforcement authorities seeking
records and information concerning investigations into Credit Suisse’s historical private banking services on a cross-
border basis and in part through its local branches and banks. The UK and French aspects of these issues have been
closed. UBS is continuing to cooperate with the authorities.
Since 2013, UBS (France) S.A., UBS AG and certain former employees have been under investigation in France in
relation to UBS’s cross-border business with French clients. In connection with this investigation, the investigating
judges ordered UBS AG to provide bail (“
caution
”) of EUR
bn.
In 2019, the court of first instance returned a verdict finding UBS AG guilty of unlawful solicitation of clients on
French territory and aggravated laundering of the proceeds of tax fraud, and UBS (France) S.A. guilty of aiding and
abetting unlawful solicitation and of laundering the proceeds of tax fraud. The court imposed fines aggregating
EUR
bn on UBS AG and UBS (France) S.A. and awarded EUR
m of civil damages to the French state. A trial
in the Paris Court of Appeal took place in March 2021. In December 2021, the Court of Appeal found UBS AG
guilty of unlawful solicitation and aggravated laundering of the proceeds of tax fraud. The court ordered a fine of
EUR
m, the confiscation of EUR
bn, and awarded civil damages to the French state of EUR
m. UBS
appealed the decision to the French Supreme Court. The Supreme Court rendered its judgment on 15 November
2023. It upheld the Court of Appeal’s decision regarding unlawful solicitation and aggravated laundering of the
proceeds of tax fraud, but overturned the confiscation of EUR
bn, the penalty of EUR
m and the EUR
m
of civil damages awarded to the French state. The case has been remanded to the Court of Appeal for a retrial
regarding these overturned elements. The French state has reimbursed the EUR
m of civil damages to UBS AG.
In May 2014, Credit Suisse AG entered into settlement agreements with the SEC, the Federal Reserve and the New
York Department of Financial Services and agreed with the US Department of Justice (the DOJ) to plead guilty to
conspiring to aid and assist US taxpayers in filing false tax returns (the 2014 Plea Agreement). Credit Suisse
continued to report to and cooperate with US authorities in accordance with its obligations under the 2014 Plea
Agreement, including by conducting a review of cross-border services provided by Credit Suisse. In this connection,
Credit Suisse provided information to US authorities regarding potentially undeclared US assets held by clients at
Credit Suisse since the 2014 Plea Agreement. In May 2025, Credit Suisse Services AG entered into a plea agreement
(the 2025 Plea Agreement) with the DOJ under which it agreed to plead guilty to one count of conspiracy to aid
and assist in the preparation of false income tax returns relating to legacy Credit Suisse accounts booked in Credit
Suisse’s Swiss booking center, thereby settling the investigation into Credit Suisse’s implementation of the 2014
Plea Agreement. In addition, Credit Suisse Services AG entered into a non-prosecution agreement with the DOJ
(the 2025 NPA) relating to legacy Credit Suisse accounts booked in Credit Suisse’s Singapore booking center. The
2025 Plea Agreement and the 2025 NPA provide for penalties, restitution and forfeiture of USD
m in the
aggregate. The 2025 Plea Agreement and the 2025 NPA include ongoing obligations of UBS to furnish information
and cooperate with DOJ’s investigations of legacy Credit Suisse accounts held by US persons in its Switzerland and
Singapore booking centers and related accounts in other booking centers. In the second quarter of 2025, we
recorded in our Non-core and Legacy division a net release of USD
m of provisions and contingent liabilities,
which included a new provision for the estimated costs of UBS’s ongoing obligations with the DOJ.
Our balance sheet at 30 June 2025 reflected provisions in an amount that UBS believes to be appropriate under
the applicable accounting standard. As in the case of other matters for which we have established provisions, the
future outflow of resources in respect of such matters cannot be determined with certainty based on currently
available information and accordingly may ultimately prove to be substantially greater (or may be less) than the
p
rovision that we have recognized.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 84
Note 14 Provisions and contingent liabilities (continued)
2. Madoff
In relation to the Bernard L. Madoff Investment Securities LLC (BMIS) investment fraud, UBS AG, UBS (Luxembourg)
S.A. (now UBS Europe SE, Luxembourg branch) and certain other UBS subsidiaries have been subject to inquiries
by a number of regulators, including the Swiss Financial Market Supervisory Authority (FINMA) and the Luxembourg
Commission de Surveillance du Secteur Financier. Those inquiries concerned two third-party funds established under
Luxembourg law, substantially all assets of which were with BMIS, as well as certain funds established in offshore
jurisdictions with either direct or indirect exposure to BMIS. These funds faced severe losses, and the Luxembourg
funds are in liquidation. The documentation establishing both funds identifies UBS entities in various roles, including
custodian, administrator, manager, distributor and promoter, and indicates that UBS employees serve as board
members.
In 2009 and 2010, the liquidators of the two Luxembourg funds filed claims against UBS entities, non-UBS entities
and certain individuals, including current and former UBS employees, seeking amounts totaling approximately
EUR
bn, which includes amounts that the funds may be held liable to pay the trustee for the liquidation of BMIS
(BMIS Trustee).
A large number of alleged beneficiaries have filed claims against UBS entities (and non-UBS entities) for purported
losses relating to the Madoff fraud. The majority of these cases have been filed in Luxembourg, where decisions
that the claims in eight test cases were inadmissible have been affirmed by the Luxembourg Court of Appeal, and
the Luxembourg Supreme Court has dismissed a further appeal in one of the test cases.
In the US, the BMIS Trustee filed claims against UBS entities, among others, in relation to the two Luxembourg
funds and one of the offshore funds. The total amount claimed against all defendants in these actions was not less
than USD
bn. In 2014, the US Supreme Court rejected the BMIS Trustee’s motion for leave to appeal decisions,
dismissing all claims against UBS defendants except those for the recovery of approximately USD
m of payments
alleged to be fraudulent conveyances and preference payments. Similar claims have been filed against Credit Suisse
entities seeking to recover redemption payments. In 2016, the bankruptcy court dismissed these claims against the
UBS entities and most of the Credit Suisse entities. In 2019, the Court of Appeals reversed the dismissal of the BMIS
Trustee’s remaining claims. The cases were remanded to the Bankruptcy Court for further proceedings.
3. Foreign exchange, LIBOR and benchmark rates, and other trading practices
Foreign-exchange-related regulatory matters:
concerning possible manipulation of foreign exchange markets and precious metals prices. As a result of these
investigations, UBS entered into resolutions with Swiss, US and UK regulators and the European Commission. UBS
was granted conditional immunity by the Antitrust Division of the DOJ and by authorities in other jurisdictions in
connection with potential competition law violations relating to foreign exchange and precious metals businesses.
In December 2021, the European Commission issued a decision imposing a fine of EUR
m on Credit Suisse
entities based on findings of anticompetitive practices in the foreign exchange market. Credit Suisse appealed the
decision to the European General Court and, in July 2025, the court issued a judgment reducing the fine to EUR
m. The European Commission is permitted to appeal the decision. UBS received leniency and accordingly no
fine was assessed.
Foreign-exchange-related civil litigation:
Putative class actions have been filed since 2013 in US federal courts and
in other jurisdictions against UBS, Credit Suisse and other banks on behalf of persons who engaged in foreign
currency transactions with any of the defendant banks. UBS and Credit Suisse have resolved US federal court class
actions relating to foreign currency transactions with the defendant banks and persons who transacted in foreign
exchange futures contracts and options on such futures. Certain class members have excluded themselves from
that settlement and filed individual actions in US and English courts against UBS, Credit Suisse and other banks,
alleging violations of US and European competition laws and unjust enrichment. UBS, Credit Suisse and the other
banks have resolved those individual matters. In addition, Credit Suisse and UBS, together with other financial
institutions, were named in a consolidated putative class action in Israel, which made allegations similar to those
made in the actions pursued in other jurisdictions. Credit Suisse and UBS entered into agreements to settle all claims
in this action in April 2022 and February 2024, respectively. Credit Suisse’s settlement received court approval and
b
ecame final in May 2025. UBS’s settlement remains subject to court approval.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 85
Note 14 Provisions and contingent liabilities (continued)
LIBOR and other benchmark-related regulatory matters:
regarding potential improper attempts by UBS, among others, to manipulate LIBOR and other benchmark rates at
certain times. UBS and Credit Suisse reached settlements or otherwise concluded investigations relating to
benchmark interest rates with the investigating authorities. UBS was granted conditional leniency or conditional
immunity from authorities in certain jurisdictions, including the Antitrust Division of the DOJ and the Swiss
Competition Commission (WEKO), in connection with potential antitrust or competition law violations related to
certain rates. However, UBS has not reached a final settlement with WEKO, as the Secretariat of WEKO has asserted
that UBS does not qualify for full immunity.
LIBOR and other benchmark-related civil litigation:
in the federal courts in New York against UBS and numerous other banks on behalf of parties who transacted in
certain interest rate benchmark-based derivatives. Also pending in the US and in other jurisdictions are a number
of other actions asserting losses related to various products whose interest rates were linked to LIBOR and other
benchmarks, including adjustable rate mortgages, preferred and debt securities, bonds pledged as collateral, loans,
depository accounts, investments and other interest-bearing instruments. The complaints allege manipulation,
through various means, of certain benchmark interest rates, including USD LIBOR, Yen LIBOR, EURIBOR, CHF LIBOR,
and GBP LIBOR and seek unspecified compensatory and other damages under various legal theories.
USD LIBOR class and individual actions in the US:
Beginning in 2013, putative class actions were filed in US federal
district courts (and subsequently consolidated in the US District Court for the Southern District of New York (SDNY))
by plaintiffs who engaged in over-the-counter instruments, exchange-traded Eurodollar futures and options, bonds
or loans that referenced USD LIBOR. The complaints allege violations of antitrust law and the Commodities
Exchange Act, as well breach of contract and unjust enrichment. Following various rulings by the SDNY and the
Second Circuit dismissing certain of the causes of action and allowing others to proceed, one class action with
respect to transactions in over-the-counter instruments and several actions brought by individual plaintiffs are
proceeding in the district court. UBS and Credit Suisse have entered into settlement agreements in respect of the
class actions relating to exchange-traded instruments, bonds and loans. These settlements have received final court
approval and the actions have been dismissed as to UBS and Credit Suisse. In addition, an individual action was
filed in federal court in California against UBS, Credit Suisse and numerous other banks alleging that the defendants
conspired to fix the interest rate used as the basis for loans to consumers by jointly setting the USD ICE LIBOR rate
and monopolized the market for LIBOR-based consumer loans and credit cards. The court dismissed the initial
complaint and subsequently dismissed an amended complaint with prejudice; the US Court of Appeals for the Ninth
Circuit affirmed the dismissal. In June 2025, the US Supreme Court denied plaintiffs’ petition to challenge the
decisions of the lower courts.
Other benchmark class actions in the US:
The Yen LIBOR/Euroyen TIBOR, EURIBOR and GBP LIBOR actions have
been dismissed. Plaintiffs have appealed the dismissals.
In January 2023, defendants moved to dismiss the complaint in the CHF LIBOR action. In 2023, the court approved
a settlement by Credit Suisse of the claims against it in this matter.
Government bonds:
breached European Union antitrust rules between 2007 and 2011 relating to European government bonds. The
European Commission fined UBS EUR
m, which amount was confirmed on appeal in March 2025. UBS has
appealed to the European Court of Justice.
Credit default swap auction litigation –
In June 2021, Credit Suisse, along with other banks and entities, was named
in a putative class action filed in federal court in New Mexico alleging manipulation of credit default swap (CDS)
final auction prices. Defendants filed a motion to enforce a previous CDS class action settlement in the SDNY. In
January 2024, the SDNY ruled that, to the extent claims in the New Mexico action arise from conduct prior to
30 June 2014, those claims are barred by the SDNY settlement. The plaintiffs appealed and, in May 2025, the
Second Circuit affirmed the SDNY decision.
With respect to additional matters and jurisdictions not encompassed by the settlements and orders referred to
above, UBS’s balance sheet at 30 June 2025 reflected a provision in an amount that UBS believes to be appropriate
under the applicable accounting standard. As in the case of other matters for which we have established provisions,
the future outflow of resources in respect of such matters cannot be determined with certainty based on currently
available information and accordingly may ultimately prove to be substantially greater (or may be less) than the
p
rovision that we have recognized.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 86
Note 14 Provisions and contingent liabilities (continued)
4. Mortgage-related matters
Government and regulatory related matters
:
DOJ RMBS settlement
LLC (CSS LLC) and its current and former US subsidiaries and US affiliates reached a settlement with the DOJ related
to its legacy Residential Mortgage-Backed Securities (RMBS) business, a business conducted through 2007. The
settlement resolved potential civil claims by the DOJ related to certain of those Credit Suisse entities’ packaging,
marketing, structuring, arrangement, underwriting, issuance and sale of RMBS. Pursuant to the terms of the
settlement a civil monetary penalty was paid to the DOJ in January 2017. The settlement also required the Credit
Suisse entities to provide certain levels of consumer relief measures, including affordable housing payments and
loan forgiveness, and the DOJ and Credit Suisse agreed to the appointment of an independent monitor to oversee
the completion of the consumer relief requirements of the settlement. UBS continues to evaluate its approach
toward satisfying the remaining consumer relief obligations. The aggregate amount of the consumer relief
obligation increased after 2021 by
% per annum of the outstanding amount due until these obligations are settled.
The monitor publishes reports periodically on these consumer relief matters.
Civil litigation: Repurchase litigations
to their roles as issuer, sponsor, depositor, underwriter and/or servicer of RMBS transactions. These cases currently
include repurchase actions by RMBS trusts and/or trustees, in which plaintiffs generally allege breached
representations and warranties in respect of mortgage loans and failure to repurchase such mortgage loans as
required under the applicable agreements. The amounts disclosed below do not reflect actual realized plaintiff
losses to date. Unless otherwise stated, these amounts reflect the original unpaid principal balance amounts as
alleged in these actions.
DLJ Mortgage Capital, Inc. (DLJ) is a defendant in New York State court in five actions: An action brought by Asset
Backed Securities Corporation Home Equity Loan Trust, Series 2006-HE7 alleges damages of not less than
USD
m. In December 2023, the court granted in part DLJ’s motion to dismiss, dismissing with prejudice all
notice-based claims; the parties have appealed. An action by Home Equity Asset Trust, Series 2006-8, alleges
damages of not less than USD
m. An action by Home Equity Asset Trust 2007-1 alleges damages of not less
than USD
m. Following a non-jury trial, the court issued a decision in December 2024 that the plaintiff
established liability relating to certain of the loans at issue, and in May 2025, the court awarded damages of
approximately USD
m plus interest and costs. The parties have appealed the decision on liability. An action by
Home Equity Asset Trust 2007-2 alleges damages of not less than USD
m. An action by CSMC Asset-Backed
Trust 2007-NC1 does not allege a damages amount.
5. ATA litigation
Since November 2014, a series of lawsuits have been filed against a number of banks, including Credit Suisse, in
the US District Court for the Eastern District of New York (EDNY) and the SDNY alleging claims under the United
States Anti-Terrorism Act (ATA) and the Justice Against Sponsors of Terrorism Act. The plaintiffs in each of these
lawsuits are, or are relatives of, victims of various terrorist attacks in Iraq and allege a conspiracy and/or aiding and
abetting based on allegations that various international financial institutions, including the defendants, agreed to
alter, falsify or omit information from payment messages that involved Iranian parties for the express purpose of
concealing the Iranian parties’ financial activities and transactions from detection by US authorities. The lawsuits
allege that this conduct has made it possible for Iran to transfer funds to Hezbollah and other terrorist organizations
actively engaged in harming US military personnel and civilians. In January 2023, the Second Circuit affirmed a
September 2019 ruling by the EDNY granting defendants’ motion to dismiss the first filed lawsuit. In October 2023,
the US Supreme Court denied plaintiffs’ petition for a writ of certiorari. In February 2024, plaintiffs filed a motion
to vacate the judgment in the first filed lawsuit. Of the other seven cases, four are stayed, including one that was
dismissed as to Credit Suisse and most of the bank defendants prior to entry of the stay, and in three cases
d
efendants moved to dismiss plaintiffs’ amended complaints.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 87
Note 14 Provisions and contingent liabilities (continued)
6. Customer account matters
Several clients have claimed that a former relationship manager in Switzerland had exceeded his investment
authority in the management of their portfolios, resulting in excessive concentrations of certain exposures and
investment losses. Credit Suisse AG has investigated the claims, as well as transactions among the clients. Credit
Suisse AG filed a criminal complaint against the former relationship manager with the Geneva Prosecutor’s Office
upon which the prosecutor initiated a criminal investigation. Several clients of the former relationship manager also
filed criminal complaints with the Geneva Prosecutor’s Office. In February 2018, the former relationship manager
was sentenced to five years in prison by the Geneva criminal court for fraud, forgery and criminal mismanagement
and ordered to pay damages of approximately USD
m. On appeal, the Criminal Court of Appeals of Geneva
and, subsequently, the Swiss Federal Supreme Court upheld the main findings of the Geneva criminal court.
Civil lawsuits have been initiated against Credit Suisse AG and / or certain affiliates in various jurisdictions, based
on the findings established in the criminal proceedings against the former relationship manager.
In Singapore, in a now-concluded civil lawsuit, Credit Suisse Trust Limited was ordered to pay USD
m, including
interest and costs.
In Bermuda, in the civil lawsuit brought against Credit Suisse Life (Bermuda) Ltd., the Supreme Court of Bermuda
issued a judgment awarding damages of USD
m to the plaintiff. Credit Suisse Life (Bermuda) Ltd. appealed
the decision. In June 2023, the Bermuda Court of Appeal confirmed the award and the Supreme Court of
Bermuda’s finding that Credit Suisse Life (Bermuda) Ltd. breached its contractual and fiduciary duties, but
overturned the finding that Credit Suisse Life (Bermuda) Ltd. made fraudulent misrepresentations. In March 2024,
Credit Suisse Life (Bermuda) Ltd. was granted leave to appeal the judgment to the Judicial Committee of the Privy
Council and a hearing on the appeal was held in June 2025. The Bermuda Court of Appeal also ordered that the
current stay continue pending determination of the appeal on the condition that the damages awarded, plus
interest calculated at the Bermuda statutory rate of
%, remain in the escrow account.
In Switzerland, certain civil lawsuits have been commenced against Credit Suisse AG in the Court of First Instance
of Geneva since March 2023.
7. Mozambique matter
Credit Suisse was subject to investigations by regulatory and enforcement authorities, as well as civil litigation,
regarding certain Credit Suisse entities’ arrangement of loan financing to Mozambique state enterprises, Proindicus
S.A. and Empresa Moçambicana de Atum S.A. (EMATUM), a distribution to private investors of loan participation
notes (LPN) related to the EMATUM financing in September 2013, and certain Credit Suisse entities’ subsequent
role in arranging the exchange of those LPNs for Eurobonds issued by the Republic of Mozambique. In 2019, three
former Credit Suisse employees pleaded guilty in the EDNY to accepting improper personal benefits in connection
with financing transactions carried out with two Mozambique state enterprises.
In October 2021, Credit Suisse reached settlements with the DOJ, the US Securities and Exchange Commission
(SEC), the UK Financial Conduct Authority (FCA) and FINMA to resolve inquiries by these agencies, including findings
that Credit Suisse failed to appropriately organize and conduct its business with due skill and care, and manage
risks. Credit Suisse Group AG entered into a three-year Deferred Prosecution Agreement (DPA) with the DOJ in
connection with the criminal information charging Credit Suisse Group AG with conspiracy to commit wire fraud
and Credit Suisse Securities (Europe) Limited (CSSEL) entered into a Plea Agreement and pleaded guilty to one count
of conspiracy to violate the US federal wire fraud statute. Under the terms of the DPA, UBS Group AG (as successor
to Credit Suisse Group AG) continued compliance enhancement and remediation efforts agreed by Credit Suisse,
and undertake additional measures as outlined in the DPA. In January 2025, as permitted under the terms of the
DPA, the DOJ elected to extend the term of the DPA by one year.
8. ETN-related litigation
XIV litigation:
Since March 2018, three class action complaints were filed in the SDNY on behalf of a putative class
of purchasers of VelocityShares Daily Inverse VIX Short-Term Exchange Traded Notes linked to the S&P 500 VIX
Short-Term Futures Index (XIV ETNs). The complaints have been consolidated and asserts claims against Credit Suisse
for violations of various anti-fraud and anti-manipulation provisions of US securities laws arising from a decline in
the value of XIV ETNs in February 2018. On appeal from an order of the SDNY dismissing all claims, the Second
Circuit issued an order that reinstated a portion of the claims. In decisions in March 2023 and February 2025, the
court granted class certification for two of the three classes proposed by plaintiffs and denied class certification of
t
he third proposed class.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 88
Note 14 Provisions and contingent liabilities (continued)
9. Bulgarian former clients matter
In December 2020, the Swiss Office of the Attorney General brought charges against Credit Suisse AG and other
parties concerning the diligence and controls applied to a historical relationship with Bulgarian former clients who
are alleged to have laundered funds through Credit Suisse AG accounts. In June 2022, following a trial, Credit
Suisse AG was convicted in the Swiss Federal Criminal Court of certain historical organizational inadequacies in its
anti-money-laundering framework and ordered to pay a fine of CHF
m. In addition, the court seized certain client
assets in the amount of approximately CHF
m and ordered Credit Suisse AG to pay a compensatory claim in the
amount of approximately CHF
m. Credit Suisse AG appealed the decision to the Swiss Federal Court of Appeals.
Following the merger of UBS AG and Credit Suisse AG, UBS AG confirmed the appeal. In November 2024, the
court issued a judgment that acquitted UBS AG and annulled the fine and compensatory claim ordered by the first
instance court. In February 2025, the court affirmed the acquittal of UBS AG, and the Office of the Attorney General
has appealed the judgment to the Swiss Federal Supreme Court. UBS has also appealed, limited to the issue whether
a successor entity by merger can be criminally liable for acts of the predecessor entity.
10. Archegos
Credit Suisse and UBS have received requests for documents and information in connection with inquiries,
investigations and/or actions relating to their relationships with Archegos Capital Management (Archegos),
including from FINMA (assisted by a third party appointed by FINMA), the DOJ, the SEC, the US Federal Reserve,
the US Commodity Futures Trading Commission (CFTC), the US Senate Banking Committee, the Prudential
Regulation Authority (PRA), the FCA, the WEKO, the Hong Kong Competition Commission and other regulatory
and governmental agencies. UBS is cooperating with the authorities in these matters. In July 2023, CSI and CSSEL
entered into a settlement agreement with the PRA providing for the resolution of the PRA’s investigation. Also in
July 2023, FINMA issued a decree ordering remedial measures and the Federal Reserve Board issued an Order to
Cease and Desist. Under the terms of the order, Credit Suisse paid a civil money penalty and agreed to undertake
certain remedial measures relating to counterparty credit risk management, liquidity risk management and non-
financial risk management, as well as enhancements to board oversight and governance. UBS Group, as the legal
successor to Credit Suisse Group AG, is a party to the FINMA decree and Federal Reserve Board Cease and Desist
Order.
Civil actions relating to Credit Suisse’s relationship with Archegos have been filed against Credit Suisse and/or
certain officers and directors, including claims for breaches of fiduciary duties.
11. Credit Suisse financial disclosures
Credit Suisse Group AG and certain directors, officers and executives have been named in securities class action
complaints pending in the SDNY and New Jersey federal court. These complaints, filed on behalf of purchasers of
Credit Suisse shares, additional tier 1 capital notes, and other securities in 2023 and 2024, allege that defendants
made misleading statements regarding: (i) customer outflows in late 2022 and early 2023; (ii) the adequacy of
Credit Suisse’s financial reporting controls; and (iii) the adequacy of Credit Suisse’s risk management processes, and
include allegations relating to Credit Suisse Group AG’s merger with UBS Group AG. In July 2025, the SDNY
certified the class in one case, and, in another case, brought on behalf of a second class, granted in part and denied
in part a motion to dismiss.
Credit Suisse has received requests for documents and information from regulatory and governmental agencies in
connection with inquiries, investigations and/or actions relating to these matters, as well as for other statements
regarding Credit Suisse’s financial condition, including from the SEC, the DOJ and FINMA. UBS is cooperating with
t
he authorities in these matters.
UBS Group second quarter 2025 report |
Consolidated financial statements | Notes to the UBS Group AG interim consolidated financial statements (unaudited) 89
Note 14 Provisions and contingent liabilities (continued)
12. Merger-related litigation
Certain Credit Suisse Group AG affiliates and certain directors, officers and executives have been named in class
action complaints pending in the SDNY. One complaint, brought on behalf of Credit Suisse shareholders, alleges
breaches of fiduciary duty under Swiss law and civil RICO claims under US federal law. In February 2024, the court
granted defendants’ motions to dismiss the civil RICO claims and conditionally dismissed the Swiss law claims
pending defendants’ acceptance of jurisdiction in Switzerland. In March 2024, having received consents to Swiss
jurisdiction from all defendants served with the complaint, the court dismissed the Swiss law claims against those
defendants. Additional complaints, brought on behalf of holders of Credit Suisse additional tier 1 capital notes (AT1
noteholders) allege breaches of fiduciary duty under Swiss law, arising from a series of scandals and misconduct,
which led to Credit Suisse Group AG’s merger with UBS Group AG, causing losses to shareholders and AT1
noteholders. Motions to dismiss these complaints were granted in March 2024 and September 2024 on the basis
that Switzerland is the most appropriate forum for litigation. Plaintiffs in two of these cases have appealed the
dismissal.
UBS Group second quarter 2025 report |
Appendix 90
Appendix
Alternative performance measures
An alternative performance measure (an APM) is a financial measure of historical or future financial performance,
financial position or cash flows other than a financial measure defined or specified in the applicable recognized
accounting standards or in other applicable regulations. A number of APMs are reported in the discussion of the
financial and operating performance of the external reports (annual, quarterly and other reports). APMs are used
to provide a more complete picture of operating performance and to reflect management’s view of the fundamental
drivers of the business results. A definition of each APM, the method used to calculate it and the information
content are presented in alphabetical order in the table below. These APMs may qualify as non-GAAP measures as
d
efined by US Securities and Exchange Commission (SEC) regulations.
APM label
Calculation
Information content
Cost / income ratio (%)
Calculated as operating expenses divided by total
revenues.
This measure provides information about the
efficiency of the business by comparing operating
expenses with total revenues.
Cost of credit risk (bps)
Calculated as total credit loss expense / (release)
(annualized for reporting periods shorter than
12 months) divided by the average balance of lending
assets for the reporting period, expressed in basis
points. Lending assets include the gross amounts of
Amounts due from banks and Loans and advances to
customers.
This measure provides information about the total
credit loss expense / (release) incurred in relation to
the average balance of gross lending assets for the
period.
Credit-impaired lending assets as a
percentage of total lending assets,
gross (%)
Calculated as credit-impaired lending assets divided
by total lending assets. Lending assets includes the
gross amounts of Amounts due from banks and
Loans and advances to customers. Credit-impaired
lending assets refers to the sum of stage 3 and
purchased credit-impaired positions.
This measure provides information about the
proportion of credit-impaired lending assets in the
overall portfolio of gross lending assets.
Fee-generating assets (USD)
– Global Wealth Management
Calculated as the sum of discretionary and
nondiscretionary wealth management portfolios
(mandate volume) and assets where generated
revenues are predominantly of a recurring nature, i.e.
mainly investment, mutual, hedge and private-market
funds where we have a distribution agreement,
including client commitments into closed-ended
private-market funds from the date that recurring
fees are charged. Assets related to our Global
Financial Intermediaries business are excluded, as are
assets of sanctioned clients.
This measure provides information about the volume
of invested assets that create a revenue stream,
whether as a result of the nature of the contractual
relationship with clients or through the fee structure
of the asset. An increase in the level of fee-generating
assets results in an increase in the associated revenue
stream. Assets of sanctioned clients are excluded from
fee-generating assets.
Gross margin on invested assets (bps)
– Asset Management
Calculated as total revenues (annualized for reporting
periods shorter than 12 months) divided by average
invested assets.
This measure provides information about the total
revenues of the business in relation to invested assets.
Impaired loan portfolio as a percentage
of total loan portfolio, gross (%)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as impaired loan portfolio divided by total
gross loan portfolio.
This measure provides information about the
proportion of impaired loan portfolio in the total gross
loan portfolio.
Integration-related expenses (USD)
Generally include costs of internal staff and
contractors substantially dedicated to integration
activities, retention awards, redundancy costs,
incremental expenses from the shortening of useful
lives of property, equipment and software, and
impairment charges relating to these assets.
Classification as integration-related expenses does not
affect the timing of recognition and measurement of
those expenses or the presentation thereof in the
income statement. Integration-related expenses
incurred by Credit Suisse also included expenses
associated with restructuring programs that existed
prior to the acquisition.
This measure provides information about expenses
that are temporary, incremental and directly related to
the integration of Credit Suisse into UBS.
UBS Group second quarter 2025 report |
Appendix 91
APM label
Calculation
Information content
Invested assets (USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management
Calculated as the sum of managed fund assets,
managed institutional assets, discretionary and
advisory wealth management portfolios, fiduciary
deposits, time deposits, savings accounts, and wealth
management securities or brokerage accounts.
This measure provides information about the volume
of client assets managed by or deposited with UBS for
investment purposes.
Net interest margin (bps)
– Personal & Corporate Banking
Calculated as net interest income (annualized for
reporting periods shorter than 12 months) divided by
average loans.
This measure provides information about the
profitability of the business by calculating the
difference between the price charged for lending and
the cost of funding, relative to loan value.
Net new assets (USD)
– Global Wealth Management
Calculated as the net amount of inflows and outflows
of invested assets (as defined in UBS policy) recorded
during a specific period, plus interest and dividends.
Excluded from the calculation are movements due to
market performance, foreign exchange translation,
fees, and the effects on invested assets of strategic
decisions by UBS to exit markets or services.
This measure provides information about the
development of invested assets during a specific
period as a result of net new asset flows, plus the
effect of interest and dividends.
Net new assets growth rate (%)
– Global Wealth Management
Calculated as the net amount of inflows and outflows
of invested assets (as defined in UBS policy) recorded
during a specific period (annualized for reporting
periods shorter than 12 months), plus interest and
dividends, divided by total invested assets at the
beginning of the period.
This measure provides information about the growth
of invested assets during a specific period as a result
of net new asset flows.
Net new deposits (USD)
– Global Wealth Management
Calculated as the net amount of inflows and outflows
of deposits recorded during a specific period. Deposits
include customer deposits and customer brokerage
payables. Excluded from the calculation are
movements due to fair value measurement, foreign
exchange translation, accrued interest and fees, as
well as the effects on customer deposits of strategic
decisions by UBS to exit markets or services.
This measure provides information about the
development of deposits during a specific period as a
result of net new deposit flows.
Net new fee-generating assets (USD)
– Global Wealth Management
Calculated as the net amount of fee-generating asset
inflows and outflows, including dividend and interest
inflows into mandates and outflows from mandate
fees paid by clients during a specific period. Excluded
from the calculation are the effects on fee-generating
assets of strategic decisions by UBS to exit markets or
services.
This measure provides information about the
development of fee-generating assets during a
specific period as a result of net flows, excluding
movements due to market performance and foreign
exchange translation, as well as the effects on fee-
generating assets of strategic decisions by UBS to exit
markets or services.
Net new loans (USD)
– Global Wealth Management
Calculated as the net amount of originations,
drawdowns and repayments of loans recorded during
a specific period. Loans include loans and advances to
customers and customer brokerage receivables.
Excluded from the calculation are allowances,
movements due to fair value measurement and
foreign exchange translation, as well as the effects on
loans and advances to customers of strategic
decisions by UBS to exit markets or services.
This measure provides information about the
development of loans during a specific period as a
result of net new loan flows.
Net new money (USD)
– Global Wealth Management,
Asset Management
Calculated as the net amount of inflows and outflows
of invested assets (as defined in UBS policy) recorded
during a specific period. Excluded from the calculation
are movements due to market performance, foreign
exchange translation, dividends, interest and fees, as
well as the effects on invested assets of strategic
decisions by UBS to exit markets or services. Net new
money is not measured for Personal & Corporate
Banking.
This measure provides information about the
development of invested assets during a specific
period as a result of net new money flows.
Net profit growth (%)
Calculated as the change in net profit attributable to
shareholders from continuing operations between
current and comparison periods divided by net profit
attributable to shareholders from continuing
operations of the comparison period.
This measure provides information about profit
growth since the comparison period.
Operating expenses (underlying)
(USD)
Calculated by adjusting operating expenses as
reported in accordance with IFRS Accounting
Standards for items that management believes are
not representative of the underlying performance of
the businesses.
›
Refer to the “Group performance” section of this
report for more information
This measure provides information about the amount
of operating expenses, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
UBS Group second quarter 2025 report |
Appendix 92
APM label
Calculation
Information content
Operating profit / (loss) before tax
(underlying) (USD)
Calculated by adjusting operating profit / (loss) before
tax as reported in accordance with IFRS Accounting
Standards for items that management believes are
not representative of the underlying performance of
the businesses.
›
Refer to the “Group performance” section of this
report for more information
This measure provides information about the amount
of operating profit / (loss) before tax, while excluding
items that management believes are not
representative of the underlying performance of the
businesses.
Pre-tax profit growth (%)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management,
the Investment Bank
Calculated as the change in net profit before tax
attributable to shareholders from continuing
operations between current and comparison periods
divided by net profit before tax attributable to
shareholders from continuing operations of the
comparison period.
This measure provides information about pre-tax
profit growth since the comparison period.
Pre-tax profit growth (underlying) (%)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management,
the Investment Bank
Calculated as the change in net profit before tax
attributable to shareholders from continuing
operations between current and comparison periods
divided by net profit before tax attributable to
shareholders from continuing operations of the
comparison period. Net profit before tax attributable
to shareholders from continuing operations excludes
items that management believes are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about pre-tax
profit growth since the comparison period, while
excluding items that management believes are not
representative of the underlying performance of the
businesses.
Recurring net fee income
(USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as the total of fees for services provided on
an ongoing basis, such as portfolio management fees,
asset-based investment fund fees and custody fees,
which are generated on client assets, and
administrative fees for accounts.
This measure provides information about the amount
of recurring net fee income.
Return on attributed equity (%)
Calculated as business division operating profit before
tax (annualized for reporting periods shorter than
12 months) divided by average attributed equity.
This measure provides information about the
profitability of the business divisions in relation to
attributed equity.
Return on common equity tier 1
capital (%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average common equity tier 1
capital.
This measure provides information about the
profitability of the business in relation to common
equity tier 1 capital.
Return on equity (%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average equity attributable to
shareholders.
This measure provides information about the
profitability of the business in relation to equity.
Return on tangible equity (%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average equity attributable to
shareholders less average goodwill and intangible
assets.
This measure provides information about the
profitability of the business in relation to tangible
equity.
Revenues over leverage ratio
denominator, gross (%)
Calculated as total revenues (annualized for reporting
periods shorter than 12 months) divided by the
average leverage ratio denominator.
This measure provides information about the revenues
of the business in relation to the leverage ratio
denominator.
Tangible book value per share
(USD)
Calculated as equity attributable to shareholders less
goodwill and intangible assets divided by the number
of shares outstanding.
This measure provides information about tangible net
assets on a per-share basis.
Total book value per share
(USD)
Calculated as equity attributable to shareholders
divided by the number of shares outstanding.
This measure provides information about net assets
on a per-share basis.
Total revenues (underlying)
(USD)
Calculated by adjusting total revenues as reported in
accordance with IFRS Accounting Standards for items
that management believes are not representative of
the underlying performance of the businesses.
›
Refer to the “Group performance” section of this
report for more information
This measure provides information about the amount
of total revenues, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Transaction-based income
(USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as the total of the non-recurring portion of
net fee and commission income, mainly composed of
brokerage and transaction-based investment fund
fees, and credit card fees, as well as fees for payment
and foreign-exchange transactions, together with
other net income from financial instruments
measured at fair value through profit or loss.
This measure provides information about the amount
of the non-recurring portion of net fee and
commission income, together with other net income
from financial instruments measured at fair value
through profit or loss.
Underlying cost / income ratio (%)
Calculated as underlying operating expenses (as
defined above) divided by underlying total revenues
(as defined above).
This measure provides information about the
efficiency of the business by comparing operating
expenses with total revenues, while excluding items
that management believes are not representative of
the underlying performance of the businesses.
UBS Group second quarter 2025 report |
Appendix 93
APM label
Calculation
Information content
Underlying net profit growth (%)
Calculated as the change in net profit attributable to
shareholders from continuing operations between
current and comparison periods divided by net profit
attributable to shareholders from continuing
operations of the comparison period. Net profit
attributable to shareholders from continuing
operations excludes items that management believes
are not representative of the underlying performance
of the businesses and also excludes related tax
impact.
This measure provides information about profit
growth since the comparison period, while excluding
items that management believes are not
representative of the underlying performance of the
businesses.
Underlying return on attributed equity
(%)
Calculated as underlying business division operating
profit before tax (annualized for reporting periods
shorter than 12 months) (as defined above) divided by
average attributed equity.
This measure provides information about the
profitability of the business divisions in relation to
attributed equity, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Underlying return on common equity
tier 1 capital (%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average common equity tier 1
capital. Net profit attributable to shareholders
excludes items that management believes are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about the
profitability of the business in relation to common
equity tier 1 capital, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Underlying return on tangible equity
(%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average equity attributable to
shareholders less average goodwill and intangible
assets. Net profit attributable to shareholders excludes
items that management believes are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about the
profitability of the business in relation to tangible
equity, while excluding items that management
believes are not representative of the underlying
performance of the businesses.
This is a general list of the APMs used in our financial reporting. Not all of the APMs listed above may appear in
this particular report.
Information related to underlying return on common equity tier 1 capital (RoCET1) and underlying return on tangible
equity (%)
As of or for the quarter ended
As of or year-to-date
USD m, except where indicated
30.6.25
31.3.25
31.12.24
30.6.24
30.6.25
30.6.24
Underlying operating profit / (loss) before tax
Underlying tax expense / (benefit)
Net profit / (loss) attributable to non-controlling interests
Underlying net profit / (loss) attributable to shareholders
Underlying net profit / (loss) attributable to shareholders
1
Tangible equity
Average tangible equity
CET1 capital
Average CET1 capital
Underlying return on tangible equity (%)
1
Underlying return on common equity tier 1 capital (%)
1
1 Annualized for reporting periods shorter than 12 months.
UBS Group second quarter 2025 report |
Appendix 94
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
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
UBS Group second quarter 2025 report |
Appendix 95
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.
UBS Group second quarter 2025 report |
Appendix 96
Information sources
Reporting publications
Annual publications
UBS Group Annual Report
: Published in English, this report provides descriptions of: the Group strategy and
performance; the strategy and performance of the business divisions and Group functions; risk, treasury and capital
management; corporate governance; the compensation framework, including information about compensation for
the Board of Directors and the Group Executive Board members; and financial information, including the financial
statements.
“Auszug aus dem Geschäftsbericht
”: This publication provides a German translation of selected sections of the UBS
Group Annual Report.
Compensation Report
: This report discusses the compensation framework and provides information about
compensation for the Board of Directors and the Group Executive Board members. It is available in English and
German (
“Vergütungsbericht
”) and represents a component of the UBS Group Annual Report.
Sustainability Report
: Published in English, the Sustainability Report provides disclosures on environmental, social
and governance topics related to the UBS Group. It also provides certain disclosures related to diversity, equity and
inclusion.
Quarterly publications
Quarterly financial report
: This report provides an update on performance and strategy (where applicable) for the
respective quarter. It is available in English.
The annual and quarterly publications are available in .pdf and online formats at
ubs.com/investors
, under “Financial
information”. Printed copies, in any language, of the aforementioned annual publications are no longer provided.
Other information
Website
The “Investor Relations” website at
ubs.com/investors
news releases; financial information, including results-related filings with the US Securities and Exchange
Commission (the SEC); information for shareholders, including UBS dividend and share repurchase program
information, and for bondholders, including rating agencies reports; the corporate calendar; and presentations by
management for investors and financial analysts. Information is available online in English, with some information
also available in German.
Results presentations
Quarterly results presentations are webcast live. Recordings of most presentations can be downloaded from
ubs.com/presentations
.
Messaging service
Email alerts to news about UBS can be subscribed for under “UBS News Alert” at
ubs.com/global/en/investor-
relations/contact/investor-services.html
. Messages are sent in English, German, French or Italian, with an option to
select theme preferences for such alerts.
Form 20-F and other submissions to the US Securities and Exchange Commission
UBS files periodic reports with and submits other information to the SEC. Principal among these filings is the annual
report on Form 20-F, filed pursuant to the US Securities Exchange Act of 1934. The filing of Form 20-F is structured
as a wraparound document. Most sections of the filing can be satisfied by referring to the UBS Group AG Annual
Report. However, there is a small amount of additional information in Form 20-F that is not presented elsewhere
and is particularly targeted at readers in the US. Readers are encouraged to refer to this additional disclosure. Any
document that is filed with the SEC is available on the SEC’s website:
sec.gov
. Refer to
ubs.com/investors
information.
UBS Group second quarter 2025 report |
Appendix 97
Cautionary statement regarding forward-looking statements |
not limited to management’s outlook for UBS’s financial performance, statements relating to the anticipated effect of transactions and strategic initiatives on
UBS’s business and future development and goals or intentions to achieve climate, sustainability and other social objectives. While these forward-looking
statements represent UBS’s judgments, expectations and objectives concerning the matters described, a number of risks, uncertainties and other important
factors could cause actual developments and results to differ materially from UBS’s expectations. In particular, the global economy may suffer significant adverse
effects from increasing political tensions between world powers, changes to international trade policies, including those related to tariffs and trade barriers, and
ongoing conflicts in the Middle East, as well as the continuing Russia–Ukraine war. UBS’s acquisition of the Credit Suisse Group has materially changed its outlook
and strategic direction and introduced new operational challenges. The integration of the Credit Suisse entities into the UBS structure is expected to continue
through 2026 and presents significant operational and execution risk, including the risks that UBS may be unable to achieve the cost reductions and business
benefits contemplated by the transaction, that it may incur higher costs to execute the integration of Credit Suisse and that the acquired business may have
greater risks or liabilities than expected. Following the failure of Credit Suisse, Switzerland is considering significant changes to its capital, resolution and regulatory
regime, which, if adopted, would significantly increase our capital requirements or impose other costs on UBS. These factors create greater uncertainty about
forward-looking statements. Other factors that may affect UBS’s performance and ability to achieve its plans, outlook and other objectives also include, but are
not limited to: (i) the degree to which UBS is successful in the execution of its strategic plans, including its cost reduction and efficiency initiatives and its ability
to manage its levels of risk-weighted assets (RWA) and leverage ratio denominator (LRD), liquidity coverage ratio and other financial resources, including changes
in RWA assets and liabilities arising from higher market volatility and the size of the combined Group; (ii) the degree to which UBS is successful in implementing
changes to its businesses to meet changing market, regulatory and other conditions; (iii) inflation and interest rate volatility in major markets; (iv) developments
in the macroeconomic climate and in the markets in which UBS operates or to which it is exposed, including movements in securities prices or liquidity, credit
spreads, currency exchange rates, residential and commercial real estate markets, general economic conditions, and changes to national trade policies on the
financial position or creditworthiness of UBS’s clients and counterparties, as well as on client sentiment and levels of activity; (v) changes in the availability of
capital and funding, including any adverse changes in UBS’s credit spreads and credit ratings of UBS, as well as availability and cost of funding to meet
requirements for debt eligible for total loss-absorbing capacity (TLAC); (vi) changes in central bank policies or the implementation of financial legislation and
regulation in Switzerland, the US, the UK, the EU and other financial centers that have imposed, or resulted in, or may do so in the future, more stringent or
entity-specific capital, TLAC, leverage ratio, net stable funding ratio, liquidity and funding requirements, heightened operational resilience requirements,
incremental tax requirements, additional levies, limitations on permitted activities, constraints on remuneration, constraints on transfers of capital and liquidity
and sharing of operational costs across the Group or other measures, and the effect these will or would have on UBS’s business activities; (vii) UBS’s ability to
successfully implement resolvability and related regulatory requirements and the potential need to make further changes to the legal structure or booking model
of UBS in response to legal and regulatory requirements including heightened requirements and expectations due to its acquisition of the Credit Suisse Group;
(viii) UBS’s ability to maintain and improve its systems and controls for complying with sanctions in a timely manner and for the detection and prevention of
money laundering to meet evolving regulatory requirements and expectations, in particular in the current geopolitical turmoil; (ix) the uncertainty arising from
domestic stresses in certain major economies; (x) changes in UBS’s competitive position, including whether differences in regulatory capital and other requirements
among the major financial centers adversely affect UBS’s ability to compete in certain lines of business; (xi) changes in the standards of conduct applicable to its
businesses that may result from new regulations or new enforcement of existing standards, including measures to impose new and enhanced duties when
interacting with customers and in the execution and handling of customer transactions; (xii) the liability to which UBS may be exposed, or possible constraints or
sanctions that regulatory authorities might impose on UBS, due to litigation, contractual claims and regulatory investigations, including the potential for
disqualification from certain businesses, potentially large fines or monetary penalties, or the loss of licenses or privileges as a result of regulatory or other
governmental sanctions, as well as the effect that litigation, regulatory and similar matters have on the operational risk component of its RWA; (xiii) UBS’s ability
to retain and attract the employees necessary to generate revenues and to manage, support and control its businesses, which may be affected by competitive
factors; (xiv) changes in accounting or tax standards or policies, and determinations or interpretations affecting the recognition of gain or loss, the valuation of
goodwill, the recognition of deferred tax assets and other matters; (xv) UBS’s ability to implement new technologies and business methods, including digital
services, artificial intelligence and other technologies, and ability to successfully compete with both existing and new financial service providers, some of which
may not be regulated to the same extent; (xvi) limitations on the effectiveness of UBS’s internal processes for risk management, risk control, measurement and
modeling, and of financial models generally; (xvii) the occurrence of operational failures, such as fraud, misconduct, unauthorized trading, financial crime,
cyberattacks, data leakage and systems failures, the risk of which is increased with persistently high levels of cyberattack threats; (xviii) restrictions on the ability
of UBS Group AG, UBS AG and regulated subsidiaries of UBS AG to make payments or distributions, including due to restrictions on the ability of its subsidiaries
to make loans or distributions, directly or indirectly, or, in the case of financial difficulties, due to the exercise by FINMA or the regulators of UBS’s operations in
other countries of their broad statutory powers in relation to protective measures, restructuring and liquidation proceedings; (xix) the degree to which changes
in regulation, capital or legal structure, financial results or other factors may affect UBS’s ability to maintain its stated capital return objective; (xx) uncertainty
over the scope of actions that may be required by UBS, governments and others for UBS to achieve goals relating to climate, environmental and social matters,
as well as the evolving nature of underlying science and industry and the increasing divergence among regulatory regimes; (xxi) the ability of UBS to access capital
markets; (xxii) the ability of UBS to successfully recover from a disaster or other business continuity problem due to a hurricane, flood, earthquake, terrorist attack,
war, conflict, pandemic, security breach, cyberattack, power loss, telecommunications failure or other natural or man-made event; and (xxiii) the effect that these
or other factors or unanticipated events, including media reports and speculations, may have on its reputation and the additional consequences that this may
have on its business and performance. The sequence in which the factors above are presented is not indicative of their likelihood of occurrence or the potential
magnitude of their consequences. UBS’s business and financial performance could be affected by other factors identified in its past and future filings and reports,
including those filed with the US Securities and Exchange Commission (the SEC). More detailed information about those factors is set forth in documents
furnished by UBS and filings made by UBS with the SEC, including the UBS Group AG and UBS AG Annual Reports on Form 20-F for the year ended 31 December
2024. UBS is not under any obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements, whether as a result of new
information, future events, or otherwise.
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
This Form 6-K is hereby incorporated by reference into (1) each of the registration statements on Form F-3
(Registration Number 333-283672), and on Form S-8 (Registration Numbers 333-200634; 333-200635; 333-200641;
333-200665; 333-215254; 333-215255; 333-228653; 333-230312; 333-249143 and 333-272975), and into each
prospectus outstanding under any of the foregoing registration statements, (2) any outstanding offering circular or
similar document issued or authorized by UBS AG that incorporates by reference any Forms 6-K of UBS AG that
are incorporated into its registration statements filed with the SEC, and (3) the base prospectus of Corporate Asset
Backed Corporation (“CABCO”) dated June 23, 2004 (Registration Number 333-111572), the Form 8-K of CABCO
filed and dated June 23, 2004 (SEC File Number 001-13444), and the Prospectus Supplements relating to the CABCO
Series 2004-101 Trust dated May 10, 2004 and May 17, 2004 (Registration Number 033-91744 and 033-91744-05).
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/ Sergio Ermotti
___
Name: Sergio Ermotti
Title: Group Chief Executive Officer
By: /s/ Todd Tuckner
_
Name: Todd Tuckner
Title: Group Chief Financial Officer
By: /s/ Steffen Henrich
____________
Name: Steffen Henrich
Title: Group Controller
UBS AG
By: /s/ Sergio Ermotti
_
Name: Sergio Ermotti
Title: President of the Executive Board
By: /s/ Todd Tuckner
_
Name: Todd Tuckner
Title: Chief Financial Officer
By: /s/ Steffen Henrich
_____________
Name: Steffen Henrich
Title: Controller
D
ate: July 30, 2025
UBS Group
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