UBS (NYSE: UBS) Pillar 3 report details Basel III and Swiss capital impact
Rhea-AI Filing Summary
UBS Group furnished its 31 December 2025 Pillar 3 report, detailing risk, capital and liquidity under the final Basel III standards in Switzerland. The adoption of these standards reduced Group risk‑weighted assets (RWA) by USD 8.6bn, as higher market risk RWA were more than offset by lower operational, credit and counterparty credit risk RWA.
Swiss regulatory proposals could require about USD 22bn of additional common equity tier 1 (CET1) capital at UBS AG, and around USD 37bn in total extra CET1 when including post‑acquisition capital needs for Credit Suisse. UBS reported CET1 capital of USD 71.3bn, a CET1 ratio of 14.44%, total RWA of USD 493.4bn, available TLAC of USD 187.3bn and a Basel III leverage ratio of 5.62%.
The Group’s average liquidity coverage ratio was 182.64% and its net stable funding ratio was 116.08%, both above prudential requirements. For 2025, the Board plans to propose a dividend of USD 1.10 per share, completed share repurchases of USD 3bn in 2025, and intends to repurchase a further USD 3bn of shares in 2026, with a stated commitment to progressive dividends.
Positive
- None.
Negative
- None.
Insights
UBS shows strong current capital and liquidity while flagging sizeable potential future capital needs from Swiss reforms.
UBS Group reports solid metrics: a CET1 ratio of 14.44% on RWA of USD 493.4bn, total TLAC of USD 187.3bn, a leverage ratio of 5.62%, an LCR of 182.64% and an NSFR of 116.08%. These levels sit above stated prudential benchmarks and support ongoing lending and market activities.
The report quantifies potential effects of Swiss capital proposals. UBS currently estimates about USD 22bn of extra CET1 at UBS AG from changes such as full deduction of foreign subsidiaries and adjustments for deferred tax assets, software and prudent valuation. Including capital effects tied to the Credit Suisse acquisition, total additional CET1 could reach roughly USD 37bn.
These figures are based on the 31 December 2025 balance sheet and assume measures are adopted as proposed, with phase‑ins extending into the next decade. Meanwhile, UBS continues capital returns, planning a USD 1.10 dividend per share for 2025 and targeting share repurchases of USD 3bn in 2026, calibrated to maintaining a CET1 ratio around 14% and to the eventual Swiss regime.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How much additional CET1 capital could UBS (UBS) need under proposed Swiss rules?
UBS currently estimates about USD 22bn of extra CET1 capital at UBS AG if Swiss capital measures are implemented as proposed. Including around USD 9bn from removing Credit Suisse regulatory concessions and USD 6bn from leverage and market share effects, total additional CET1 could reach USD 37bn.
What are UBS (UBS) key capital ratios and risk-weighted assets at 31 December 2025?
UBS reports CET1 capital of USD 71.3bn with total RWA of USD 493.4bn, giving a CET1 ratio of 14.44%. Tier 1 capital is USD 91.2bn, and total capital is the same. Available TLAC stands at USD 187.3bn, or 37.96% of RWA.
How did final Basel III implementation affect UBS (UBS) risk-weighted assets?
Implementing final Basel III standards in Switzerland produced a net USD 8.6bn reduction in RWA for UBS Group. A USD 6.5bn increase from the new market risk framework was more than offset by a USD 9.0bn reduction in operational risk RWA and a USD 6.1bn reduction in credit and counterparty credit risk RWA.
What are UBS (UBS) liquidity coverage ratio and net stable funding ratio?
UBS reports an average liquidity coverage ratio of 182.64% for the fourth quarter of 2025, supported by USD 331.6bn of high-quality liquid assets. Its net stable funding ratio is 116.08%, with available stable funding of USD 882.0bn versus required stable funding of USD 759.8bn.
How does UBS (UBS) view the Swiss Federal Council’s capital proposals?
UBS supports strengthening Switzerland’s regulatory framework but argues that full deduction of foreign subsidiaries from CET1 is excessive and not proportionate. It also says proposed treatments of capitalized software, deferred tax assets and prudent valuation combine maximum international requirements without fully considering overall impact or peer regimes.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Date: March 9, 2026
UBS Group AG
(Registrant's Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
(Address of principal executive office)
Commission File Number: 1-36764
UBS AG
(Registrant's Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
Aeschenvorstadt 1, 4051 Basel, Switzerland
(Address of principal executive offices)
Commission File Number: 1-15060
Indicate by check mark whether the registrants file or will file annual reports under cover of Form 20-F or Form
40-
F.
Form 20-F
☒
☐
This Form 6-K consists of the 31 December 2025 Pillar 3 Report of UBS Group and significant regulated subsidiaries
and sub-groups, which appears immediately following this page.
31 December 2025
Terms used in this report, unless the context requires otherwise
“UBS”, “UBS Group”, “UBS Group AG consolidated”, “Group”, “the Group”, “we”, “us” and “our”
UBS Group AG and its consolidated subsidiaries
“UBS AG” and “UBS AG consolidated”
UBS AG and its consolidated subsidiaries
“Credit Suisse Group” and “Credit Suisse”
Credit Suisse Group AG and its consolidated subsidiaries,
before the acquisition by UBS
“UBS Group AG” and “UBS Group AG standalone”
UBS Group AG on a standalone basis
“UBS AG standalone”
UBS AG on a standalone basis
“UBS Switzerland AG” and “UBS Switzerland AG standalone”
UBS Switzerland AG on a standalone basis
“UBS Europe SE” and “UBS Europe SE consolidated”
UBS Europe SE and its consolidated subsidiaries
“UBS Americas Holding LLC” and “UBS Americas Holding LLC consolidated”
UBS Americas Holding LLC and its consolidated subsidiaries
“1m”
One million, i.e. 1,000,000
“1bn”
One billion, i.e. 1,000,000,000
“1trn”
One trillion, i.e. 1,000,000,000,000
In this report, unless the context requires otherwise, references to any gender shall apply to all genders.
Table of contents
UBS Group
2
Section 1
Introduction and basis for preparation
14
Section 2
Key metrics
16
Section 3
Overview of risk-weighted assets
22
Section 4
Linkage between financial statements and
regulatory exposures
25
Section 5
Credit risk
55
Section 6
Counterparty credit risk
63
Section 7
Credit valuation adjustment
64
Section 8
Securitizations
71
Section 9
Market risk
72
Section 10
Operational risk
74
Section 11
Interest rate risk in the banking book
77
Section 12
Going and gone concern requirements
and eligible capital
84
Section 13
Total loss-absorbing capacity
85
Section 14
Leverage ratio
88
Section 15
Liquidity and funding
93
Section 16
Remuneration
94
Section 17
Requirements for global systemically
important banks and related indicators
Significant regulated subsidiaries and sub-groups
95
Section 1
Introduction
96
Section 2
UBS AG consolidated
100
Section 3
UBS AG standalone
104
Section 4
UBS Switzerland AG standalone
108
Section 5
UBS Europe SE consolidated
109
Section 6
UBS Americas Holding LLC consolidated
112
Section 7
Credit Suisse International standalone
Appendix
114
Abbreviations frequently used in our financial reports
116
Cautionary statement
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Publisher: UBS Group AG, Zurich, Switzerland | ubs.com
Language: English
© UBS 2026. The key symbol and UBS are among the registered and
unregistered trademarks of UBS. All rights reserved.
31 December 2025 Pillar 3 Report |
UBS Group | Introduction and basis for preparation 2
UBS Group
Introduction and basis for preparation
Scope of Basel III Pillar 3 disclosures
The Basel Committee on Banking Supervision (the BCBS) Basel III capital adequacy framework consists of three
complementary pillars. Pillar 1 provides a framework for measuring minimum capital requirements for the credit, market
and operational risks faced by banks. Pillar 2 addresses the principles of the supervisory review process, emphasizing the
need for a qualitative approach to supervising banks. Pillar 3 requires banks to publish a range of disclosures, mainly
covering risk, capital, leverage, liquidity and remuneration.
This report provides Pillar 3 disclosures for the UBS Group and prudential key figures and regulatory information for
UBS AG consolidated and standalone, UBS Switzerland AG standalone, UBS Europe SE consolidated, and UBS Americas
Holding LLC consolidated, as well as Credit Suisse International standalone, in the respective sections under “Significant
regulated subsidiaries and sub-groups”.
This Pillar 3 Report has been prepared in accordance with the Swiss Financial Market Supervisory Authority (FINMA)
Ordinance on the Disclosure Obligations of Banks and Securities Firms (the DisO-FINMA), the corresponding explanatory
notes and the underlying BCBS Basel framework disclosure requirements. The revised Capital Adequacy Ordinance (the
CAO) that incorporates the final Basel III standards into Swiss law, and the five new FINMA ordinances (including the
DisO-FINMA) that contain the implementing provisions for the revised CAO, entered into force on 1 January 2025. The
DisO-FINMA replaces FINMA Circular 2016/1 “Disclosure – banks” and incorporates in particular new and revised
disclosure tables on risks and capital requirements.
As UBS is a systemically relevant bank (an SRB) under Swiss banking law, UBS Group AG and UBS AG are required to
comply with regulations based on the Basel III framework as applicable to Swiss SRBs on a consolidated basis.
Local regulators may also require the publication of Pillar 3 information at a subsidiary or sub-group level. Where
applicable, these local disclosures are provided under “Holding company and significant regulated subsidiaries and sub-
groups” at
ubs.com/investors
.
Changes to Pillar 3 disclosure requirements
The DisO-FINMA includes new and revised annual tables as a result of the implementation of the final Basel III standards
in Switzerland.
›
Refer to “Changes to Pillar 3 disclosure requirements” in the “Introduction and basis for preparation” section of the 31 March
2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for information about new and revised quarterly
tables as a result of the implementation of the final Basel III standards in Switzerland
›
Refer to “Changes to Pillar 3 disclosure requirements” in the “Introduction and basis for preparation” section of the 30 June 2025
Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for information about new and revised semi-annual
tables as a result of the implementation of the final Basel III standards in Switzerland
New annual tables
The following new tables have been introduced on an annual basis.
–
CVAA: General qualitative disclosure requirements related to CVA
–
CVAB: Qualitative disclosures for banks using the SA-CVA
–
OR1: Historical losses
–
OR2: Business indicator and subcomponents
–
OR3: Minimum required operational risk capital
The new “MRB: Qualitative disclosures for banks using the internal models approach (IMA)” annual table is not applicable
to UBS, as UBS does not apply the IMA for market risk.
Revised annual tables
The following annual tables have been revised.
–
CR9: IRB – Backtesting of probability of default (PD) per portfolio. This table has been revised to reflect the amended
definition of asset classes included in the DisO-FINMA.
–
ORA: General qualitative information on a bank’s operational risk framework. This disclosure has been amended to
reflect the replacement of the advanced measurement method by the standardized approach for determining
operational risk regulatory capital.
›
Refer to “Amended FINMA-defined asset classes” in the “Introduction and basis for preparation” section of the 30 June 2025
Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for information about the amended definition of asset
classes as a result of the implementation of the final Basel III standards in Switzerland
31 December 2025 Pillar 3 Report |
UBS Group | Introduction and basis for preparation 3
Significant regulatory developments, disclosure requirements and other changes
Developments in Switzerland
In June 2025, the Swiss Federal Council published regulatory proposals that aim to further strengthen banking stability
in Switzerland. Proposed measures to be submitted to the Swiss Parliament for enactment would exclude from common
equity tier 1 (CET1) capital investments in foreign subsidiaries of systemically important banks (SIBs), include additional
requirements for the recovery and resolution of SIBs, add measures to increase the potential for obtaining liquidity via
the Swiss National Bank (the SNB), introduce a Senior Managers Regime for banks, and provide additional powers for
FINMA.
Proposed measures at the ordinance level would exclude capitalized software and deferred tax assets (DTAs) on temporary
differences from CET1 capital, add stricter requirements for prudential valuation adjustments (PVAs) of assets and
liabilities, require suspension of interest payments for additional tier 1 (AT1) 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 has proceeded towards implementation of
these recommendations through several legislative and regulatory packages.
A public consultation on proposed measures at the ordinance level ended in September 2025. The Swiss Federal Council
is expected to publish final amendments to the ordinance in the first half of 2026, with entry into force not expected
before January 2027.
A separate public consultation on proposed legislative amendments to capital requirements related to foreign subsidiaries
ended in January 2026. The proposed changes would require the deduction of investments in foreign subsidiaries of SIBs
from CET1 capital. The proposal states that the amendments would enter into force in 2028, at the earliest, starting with
a 65% deduction requirement in the first year and increasing to 100% by 5-percentage-point increments each year over
seven years. The Swiss Federal Council is expected to submit its proposal to the Swiss Parliament in the first half of 2026.
The Swiss Federal Council is also expected to launch consultations on additional legislative measures in the summer of
2026, including incremental requirements for the recovery and resolution plans of SIBs, measures aimed at increasing
the potential for obtaining liquidity via the SNB, the introduction of an enhanced accountability framework for senior
managers of banks, and the provision of additional powers for FINMA. Following the consultation, these measures are
expected to be submitted to the Parliament in the first half of 2027, with entry into force expected in 2028 or 2029. In
addition, a public consultation on amendments to the Liquidity Ordinance is expected to be launched in the summer of
2026. The proposals are expected to set minimum requirements for maintaining borrowing capacity for emergency
liquidity assistance
Estimated incremental capital from proposed changes to the capital framework
We currently estimate that UBS AG would be required to hold additional CET1 capital of around USD 22bn if all capital
measures were implemented as proposed by the Swiss Federal Council. This estimate includes around USD 20bn related
to the full deduction of UBS AG’s investments in foreign subsidiaries, of which approximately USD 6bn would be required
at the start of the proposed phase-in period and around USD 3bn from the potential deduction of DTAs on temporary
differences, capitalized software and PVAs.
The incremental CET1 capital of USD 22bn at UBS AG would increase UBS Group AG’s CET1 capital ratio to around
18.5%, calculated from its target ratio of around 14%. The proposed measures related to DTAs on temporary differences,
capitalized software and PVAs would eliminate around USD 11bn of net CET1 capital at UBS Group AG, which, as a
result of this elimination, would reduce the estimated CET1 capital ratio for the Group from 18.5% to 16.5%.
This current estimated incremental capital of USD 22bn resulting from the proposed changes in Swiss capital
requirements would be on top of the additional capital UBS is required to hold as a result of the acquisition of the Credit
Suisse Group. This includes around USD 9bn to remove the regulatory concessions granted to Credit Suisse and around
USD 6bn to meet the progressive add-on due to the increased leverage ratio denominator (LRD) and higher market share
of the combined business. The phase-in of the capital requirements relating to the increases in LRD and market share
commenced on 1 January 2026 and will be completed by 1 January 2030.
Altogether, if the proposed changes by the Swiss Federal Council were adopted as proposed, UBS would be required to
hold around USD 37bn in additional CET1 capital.
These estimates have been calculated based on our balance sheet at 31 December 2025, assume that all capital measures
are adopted as currently proposed and use an assumed CET1 capital ratio of 12.5% for UBS AG, the lower end of our
target range of 12.5–13.0%, and 14.0% for UBS Group overall. The estimates also reflect capital repatriations of
USD 3bn from UK subsidiaries planned for 2026.
The estimate of UBS AG‘s incremental capital requirements at 31 December 2025 is around USD 2bn lower than the
estimate of USD 24bn we published on 6 June 2025 in response to the Swiss Federal Council proposal, which was based
on our first quarter 2025 balance sheet (and USD 4bn lower than the estimate of USD 26bn based on UBS AG’s target
capital ratio of 12.5%). The reduction primarily results from accelerated repatriation of capital from UBS AG subsidiaries
enabled by the rapid wind-down of Non-core and Legacy, timely and successful execution of our integration plans, and,
in the case of the US, improving profitability expectations and improvements in our most recent Internal Capital Adequacy
Assessment Process (ICAAP) and Dodd-Frank Act Stress Test (DFAST) results.
31 December 2025 Pillar 3 Report |
UBS Group | Introduction and basis for preparation 4
UBS AG’s CET1 capital ratio of 14.2% at 31 December 2025 reflects these accelerated capital repatriations. As previously
communicated, we expect UBS AG’s CET1 capital ratio to remain above our target levels in the near term, mainly due to
leverage ratio considerations driven by the weakening of the US dollar.
UBS’s position
UBS has submitted responses to the consultations on the proposed measures at the ordinance level and on legislative
amendments. UBS overall supports the Swiss Federal Council's objective of drawing lessons from the Credit Suisse crisis
and strengthening the regulatory framework with targeted, proportionate and internationally aligned measures.
However, the proposed full deduction of foreign subsidiaries from CET1 capital clearly does not meet these criteria and
is excessive. In addition, UBS has outlined that the proposed regulatory treatment of capitalized software, DTAs on
temporary differences and PVAs is a combination of the maximum requirements of various jurisdictions and does not
give due consideration to the ultimate impact of the overall package, comparisons to the capital regimes in peer countries
or the cost of such extreme measures. Switzerland already has one of the strictest regulatory capital regimes, with
substantial progressive capital surcharges and a conservative and early implementation of the final Basel III rules. The
Swiss Federal Council’s proposals would significantly increase the requirements and would contrast sharply with
developments across Europe, and in the US, which have proposed, or are expected to implement, less restrictive capital
regimes.
›
Refer to “Developments in Switzerland” in the “Regulatory and legal developments” section of the UBS Group Annual Report
2025, available under “Annual reporting” at
ubs.com/investors
, for more information
Developments related to the implementation of the final Basel III standards
In Switzerland, the amendments to the CAO that incorporate the final Basel III standards into Swiss law entered into
force on 1 January 2025. The adoption of the final Basel III standards led to an USD 8.6bn reduction in the UBS Group’s
risk-weighted assets (RWA). A USD 6.5bn increase in market risk RWA resulting from the implementation of the
Fundamental Review of the Trading Book (the FRTB) framework was more than offset by a USD 9.0bn reduction in
operational risk RWA and a USD 6.1bn reduction in credit and counterparty credit risk RWA. The output floor, which is
being phased in until 2028, is currently not binding for the UBS Group. The final Basel III implementation in Switzerland
had a cumulative net impact on UBS Group of adding around USD 60bn of RWA since UBS started preparing for its
adoption with a series of model updates and methodology changes over the last ten years.
In January 2026, the Prudential Regulation Authority (the PRA) published its final policy statements implementing the
Basel 3.1 standards in the UK. Implementation remains set for 1 January 2027, with full phase-in by 1 January 2030,
except for the implementation of the internal model approach for market risk (the FRTB Internal Model Approach), which
has been postponed to 1 January 2028. The FRTB regulation for standardized and advanced standardized approaches
will apply from 1 January 2027. The impact of the UK Basel 3.1 regulations on UBS is expected to be immaterial.
In the EU, the final Basel III requirements became applicable as of 1 January 2025, except for the FRTB regulation, the
implementation of which has been delayed until 1 January 2027, as confirmed by the European Commission (the EC) in
September 2025. In addition, the EC conducted a public consultation, concluded in January 2026, on policy options to
temporarily mitigate negative impacts stemming from the absence of a level playing field with regard to the
implementation of FRTB rules. UBS Europe SE is subject to Basel III regulations in the EU. The impact on UBS can only be
determined once the EC publishes its final decision.
In the US, banking agencies, including the Federal Reserve Board, have been discussing amendments to their original
proposals regarding the implementation of the final Basel III standards. We expect that a re-proposal will be issued in the
first half of 2026. UBS Americas Holding LLC is subject to the US requirements. The impact on UBS can only be determined
once the US publishes its final rules.
Significant BCBS consultation papers
Machine-readable Pillar 3 disclosures
In December 2025, the BCBS issued a public consultation on machine-readable Pillar 3 disclosures. The consultation
proposes to make the data disclosed by banks available in a machine-readable format. Pillar 3 disclosures by
internationally active banks under the BCBS’s standards are an important source of their key risk metrics.
To make Pillar 3 disclosure data more accessible, the Committee is proposing that such data should be made available in
standardized machine-readable formats across its member jurisdictions. The proposed standard would introduce a
requirement and technical specifications to produce machine-readable quantitative Pillar 3 disclosures, without changing
the underlying disclosure requirements for banks. National supervisors would decide whether banks should publish
machine-readable Pillar 3 disclosures on their own websites or via a centralized data repository.
Other developments
Simplification of Pillar 3 disclosures
Starting with the 31 December 2025 Pillar 3 Report, we have discontinued the annual disclosure of the section
“Comparison of A-IRB approach and standardized approach for credit risk”. This section has been replaced by the
quarterly “CMS1 – Comparison of modelled and standardized RWA at risk level” table and the semi-annual “CMS2 –
Comparison of modelled and standardized RWA for credit risk at asset class level” table.
›
Refer to “Comparison of modelled and standardized RWA at risk level” in the “Overview of risk-weighted assets” section of this
report for more information
31 December 2025 Pillar 3 Report |
UBS Group | Introduction and basis for preparation 5
Starting with the 30 June 2025 Pillar 3 Report, we have replaced the “SEC2: Securitization exposures in the trading book”
semi-annual table with a qualitative statement, based on immateriality, as permitted by the DisO-FINMA general principles
of disclosure.
›
Refer to “Securitization exposures in the banking and trading books” in the “Securitizations” section of this report for more
information
Capital returns
For the 2025 financial year, the Board of Directors (the BoD) plans to propose a dividend to UBS Group AG shareholders
of USD 1.10 per share. Subject to approval at the Annual General Meeting, scheduled for 15 April 2026, the dividend
will be paid on 23 April 2026 to shareholders of record on 22 April 2026. The ex-dividend date will be 21 April 2026 on
the SIX Swiss Exchange and 22 April 2026 on the New York Stock Exchange. We are committed to progressive dividends
and plan to accrue for a mid-teens percent increase in dividend per share in 2026.
In the fourth quarter of 2025, we completed our planned share repurchases of USD 3bn. We intend to repurchase
USD 3bn of shares in 2026 with the aim to do more. The amount of additional repurchases is subject to further clarity
around the future regulatory regime in Switzerland, our financial performance and maintaining a CET1 capital ratio of
around 14%.
Beyond 2026, we intend to continue to pursue a progressive dividend complemented by share repurchases that will be
calibrated based on our financial results, our capital ratio and the final outcome and timing of the implementation of the
new regulatory regime in Switzerland.
Frequency and comparability of Pillar 3 disclosures
The table below summarizes the reporting frequency for each disclosure as per the current DisO-FINMA requirements
applicable to UBS.
In line with these FINMA-specified disclosure requirements, including with regard to comparative periods, we provide
quantitative comparative information as of 30 September 2025 for disclosures required on a quarterly basis, as of 30 June
2025 for disclosures required on a semi-annual basis and as of 31 December 2024, prepared in accordance with FINMA
Circular 2016/1 “Disclosure – banks”, for disclosures required on an annual basis. Where specifically required by FINMA
and / or the BCBS, we disclose comparative information for additional reporting dates.
Where required, movement commentary is aligned with the corresponding disclosure frequency required by FINMA and
always refers to the latest comparative period. Throughout this report, signposts are displayed at the beginning of a
section, table or chart –
Annual |
Semi-annual |
Quarterly |
quarterly. A triangle symbol –
›
Refer to the 31 March 2025, 30 June 2025 and 30 September 2025 Pillar 3 Reports, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about previously published quarterly movement commentary
›
Refer to the 30 June 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about
previously published semi-annual movement commentary
31 December 2025 Pillar 3 Report |
UBS Group | Introduction and basis for preparation 6
The table below outlines the annual, semi-annual and quarterly disclosure requirements that are satisfied in this report
for UBS Group and significant regulated subsidiaries and sub-groups as applicable. Certain disclosure requirements may
be met by inclusion in the UBS Group Annual Report 2025, as permitted by the DisO-FINMA general principles of
disclosure. In this case, references are provided to the respective pages in the UBS Group Annual Report 2025.
FINMA
reference
1
Disclosure title in this report
Section of this report
Page number
in this report
Annual disclosure requirements
OVA
Bank risk management approach
Section 1 Introduction and basis for preparation
10–11
LI1
Differences between accounting and regulatory scopes of consolidation and
mapping of financial statement categories with regulatory risk categories
Section 4 Linkage between financial statements and
regulatory exposures
23–24
LI2
Main sources of differences between regulatory exposure amounts and
carrying values in financial statements (under the regulatory scope of
consolidation)
Section 4 Linkage between financial statements and
regulatory exposures
25
LIA
–
Explanation of the differences between the IFRS Accounting Standards and
regulatory scopes of consolidation
–
Fair value measurement
Section 4 Linkage between financial statements and
regulatory exposures
22
23
CRA
General qualitative information about credit risk
Section 5 Credit risk
26
CRB
Additional disclosure related to the credit quality of assets:
–
Breakdown of exposures by industry
–
Breakdown of exposures by geographical area
–
Breakdown of exposures by residual maturity
–
Policies for past due, non-performing and credit-impaired claims
–
Credit-impaired exposures by industry
–
Credit-impaired exposures by geographical area
–
Past due exposures
–
Definition of restructured exposure
–
Breakdown of restructured exposures between credit-impaired and non-
credit-impaired
Section 5 Credit risk
28
28
29
29
29
30
30
30
30
CRC
Qualitative disclosure requirements related to credit risk mitigation
techniques
Section 5 Credit risk
31
CRD
Qualitative disclosures on banks’ use of external credit ratings under the
standardized approach for credit risk
Section 5 Credit risk
32
CRE
Qualitative disclosure related to IRB models:
–
Main features of our key credit risk models
–
Additional qualitative disclosure related to IRB models
Section 5 Credit risk
39–40
41
CR9
IRB – Backtesting of probability of default (PD) per portfolio
Section 5 Credit risk
50–53
CCRA
Qualitative disclosure related to CCR
Section 6 Counterparty credit risk
55
CVAA
General qualitative disclosure requirements related to CVA
Section 7 Credit valuation adjustment
63
CVAB
Qualitative disclosures for banks using the SA-CVA
Section 7 Credit valuation adjustment
63
SECA
Qualitative disclosure requirements related to securitization exposures
Section 8 Securitizations
64–65
MRA
Qualitative disclosure requirements related to market risk
Section 9 Market risk
71
ORA
General qualitative information on a bank’s operational risk framework
Section 10 Operational risk
72
OR1
Historical losses
Section 10 Operational risk
72–73
OR2
Business indicator and subcomponents
Section 10 Operational risk
73
OR3
Minimum required operational risk capital
Section 10 Operational risk
74
IRRBBA
IRRBB risk management objectives and policies
Section 11 Interest rate risk in the banking book
74
IRRBB1
Quantitative information on IRRBB
Section 11 Interest rate risk in the banking book
74–75
IRRBBA1
Quantitative disclosures relating to the position structure and interest rate
reset of IRRBB risk
Section 11 Interest rate risk in the banking book
75–76
PV1
Prudent valuation adjustments (PVA)
Section 12 Going and gone concern requirements and
eligible capital
83
LIQA
Liquidity risk management
Section 15 Liquidity and funding
88
REMA
REM1
REM2
REM3
Remuneration policy
Remuneration awarded during the financial year
Special payments
Deferred remuneration
Section 16 Remuneration
93
GSIB1
Disclosure of G-SIB indicators
Section 17 Requirements for global systemically important
banks and related indicators
94
31 December 2025 Pillar 3 Report |
UBS Group | Introduction and basis for preparation 7
FINMA
reference
1
Disclosure title in this report
Section of this report
Page number
in this report
Semi-annual disclosure requirements
CMS2
Comparison of modelled and standardized RWA for credit risk at asset class
level
Section 3 Overview of risk-weighted assets
20–21
CR1
Credit quality of assets
Section 5 Credit risk
27
CR2
Changes in stock of defaulted loans, debt securities and off-balance sheet
exposures
Section 5 Credit risk
27
CR3
Credit risk mitigation techniques – overview
Section 5 Credit risk
31–32
CR4
Standardized approach – credit risk exposure and credit risk mitigation (CRM)
effects
Section 5 Credit risk
33–34
CR5
Standardized approach – exposures by asset classes and risk weights
Section 5 Credit risk
35–38
CR5
Exposure amounts and CCFs applied to off-balance sheet exposures,
categorised based on risk bucket of converted exposures
Section 5 Credit risk
39
CR6
IRB – Credit risk exposures by portfolio and PD range
Section 5 Credit risk
41–47
CR7
Qualitative statement about the materiality of the impact on RWA of credit
derivatives used as CRM techniques
Section 5 Credit risk
48
CR10
IRB – specialized lending under the slotting approach
Section 5 Credit risk
54
CCR1
Analysis of counterparty credit risk (CCR) exposure by approach
Section 6 Counterparty credit risk
56
CCR3
Qualitative statement about the materiality of CCR exposures subject to the
standardized approach
Section 6 Counterparty credit risk
56
CCR4
IRB – CCR exposures by portfolio and PD scale
Section 6 Counterparty credit risk
57–59
CCR5
Composition of collateral for CCR exposure
Section 6 Counterparty credit risk
60
CCR6
Credit derivatives exposures
Section 6 Counterparty credit risk
61
CCR8
Exposures to central counterparties
Section 6 Counterparty credit risk
62
CVA2
The full basic approach for CVA (BA-CVA)
Section 7 Credit valuation adjustment
63–64
CVA3
The standardized approach for CVA (SA-CVA)
Section 7 Credit valuation adjustment
64
SEC1
SEC2
SEC3
SEC4
Securitization exposures in the banking book
Qualitative statement about the materiality of securitization exposures in the
trading book
Securitization exposures in the banking book and associated regulatory
capital requirements – bank acting as originator or as sponsor
Securitization exposures in the banking book and associated regulatory
capital requirements – bank acting as investor
Section 8 Securitizations
66
66
67–68
69–70
MR1
Market risk under standardized approach
Section 9 Market risk
71
CC1
Composition of regulatory capital
Section 12 Going and gone concern requirements and
eligible capital
81–82
CC2
Reconciliation of accounting balance sheet to balance sheet under the
regulatory scope of consolidation
Section 12 Going and gone concern requirements and
eligible capital
79–80
CCA
Main features of regulatory capital instruments and of other TLAC-eligible
instruments
n/a – The CCA table is published on our website. Refer to
the document titled “Capital and total loss-absorbing
instruments of UBS Group AG consolidated, UBS AG
consolidated and standalone – Key features”, available
under “Bondholder information” at
ubs.com/investors
, for
more information.
n/a
CCyB1
Geographical distribution of credit exposures used in the countercyclical
capital buffer
Section 12 Going and gone concern requirements and
eligible capital
78
TLAC1
TLAC composition for G-SIBs (at resolution group level)
Section 13 Total loss-absorbing capacity
84
TLAC2
Material sub-group entity – creditor ranking at legal entity level
Significant regulated subsidiaries and sub-groups:
Section 6 UBS Americas Holding LLC consolidated
Section 7 Credit Suisse International standalone
111
113
TLAC3
Creditor ranking at legal entity level for the resolution entity,
UBS Group AG
Section 13 Total loss-absorbing capacity
85
LIQ2
Net stable funding ratio (NSFR)
Section 15 Liquidity and funding
91
ENC
Asset encumbrance
Section 15 Liquidity and funding
92–93
–
Definitions of credit risk and counterparty credit risk RWA movement table
components for CR8 and CCR7
Section 5 Credit risk
48
31 December 2025 Pillar 3 Report |
UBS Group | Introduction and basis for preparation 8
FINMA
reference
1
Disclosure title in this report
Section of this report
Page number
in this report
Quarterly disclosure requirements
KM1
Key metrics
UBS Group:
Section 2 Key metrics
Significant regulated subsidiaries and sub-groups:
Section 2 UBS AG consolidated
Section 3 UBS AG standalone
Section 4 UBS Switzerland AG standalone
Section 5 UBS Europe SE consolidated
Section 6 UBS Americas Holding LLC consolidated
Section 7 Credit Suisse International standalone
14–15
96–97
100–101
104–105
108
109–110
112
KM2
Key metrics – TLAC requirements (at resolution group level)
Section 2 Key metrics
14–15
OV1
Overview of RWA
Section 3 Overview of risk-weighted assets
16–17
CMS1
Comparison of modelled and standardized RWA at risk level
Section 3 Overview of risk-weighted assets
17–20
CR8
RWA flow statements of credit risk exposures under IRB
Section 5 Credit risk
49
CCR7
RWA flow statements of CCR exposures under internal model method (IMM)
and value-at-risk (VaR)
Section 6 Counterparty credit risk
61
CVA4
RWA flow statements of CVA risk exposures under SA-CVA
Section 7 Credit valuation adjustment
64
LR1
Summary comparison of accounting assets vs leverage ratio exposure
measure
Section 14 Leverage ratio
85–86
LR2
Leverage ratio common disclosure
Section 14 Leverage ratio
87–88
LIQ1
Liquidity coverage ratio (LCR)
Section 15 Liquidity and funding
90
Annex 3
Swiss SRB going and gone concern requirements and information
UBS Group:
Section 12 Going and gone concern requirements and
eligible capital
Significant regulated subsidiaries and sub-groups:
Section 2 UBS AG consolidated
Section 3 UBS AG standalone
Section 4 UBS Switzerland AG standalone
77
98–99
101–103
106–107
–
High-quality liquid assets (HQLA)
Section 15 Liquidity and funding
89
1
Format of Pillar 3 disclosures
As defined by FINMA, certain Pillar 3 disclosures follow a fixed format, whereas other disclosures are flexible and may be
modified to a certain degree to present the most relevant information. Pillar 3 requirements are presented under the
relevant FINMA table / template reference (e.g. OVA, OV1, LI1, etc.). Pillar 3 disclosures may also include row labeling (1,
2, 3, etc.) as prescribed by FINMA. Naming conventions used in our Pillar 3 disclosures are based on FINMA guidance and
may not reflect UBS naming conventions.
31 December 2025 Pillar 3 Report |
UBS Group | Introduction and basis for preparation 9
Asset classes used in the Pillar 3 Report
The DisO-FINMA includes an amended definition of asset classes.
›
Refer to “Amended FINMA-defined asset classes” in the “Introduction and basis for preparation” section of the 30 June 2025
Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about the amended definition of
asset classes as a result of the implementation of the final Basel III standards in Switzerland
The amended FINMA-defined asset classes used within this Pillar 3 Report are as follows.
Asset classes under the standardized approach
–
Central governments, central banks and supranational organizations, consisting of exposures relating to governments
at the level of the nation state and their central banks, as well as supranational organizations. Supranational
organizations include the Bank for International Settlements, the International Monetary Fund, the European Central
Bank and the European Union.
–
Public sector entities, consisting of exposures to institutions established on the basis of public law in different forms,
such as administrative entities and public companies, as well as regional governments.
–
Multilateral development banks, consisting of exposures relating to supranational financial institutions recognized by
FINMA.
–
Banks and securities firms, consisting of exposures to financial institutions that are licensed to take deposits from the
public and are subject to appropriate prudential standards and levels of supervision. Non-Swiss financial institutions
other than banks may be assigned to this asset class if they are subject to prudential standards and a level of supervision
equivalent to that of banks.
–
Covered bonds, consisting of Swiss covered bonds issued under the Swiss covered bonds regulation (
Pfandbriefgesetz
)
and foreign covered bonds that meet the requirements for risk weighting as such.
–
Corporates, consisting of general corporate exposures, specialized lending exposures and exposures to small and
medium-sized entities (SMEs) that are considered corporate SMEs.
–
Retail, consisting of exposures to natural persons and to SMEs that meet the “regulatory retail” criteria.
–
Real estate, consisting of exposures secured directly or indirectly by real estate.
–
Equity, consisting of instruments that have no stated or predetermined maturity and represent a residual interest in the
net assets of an entity.
–
Subordinated claims, consisting of subordinated debt and capital instruments other than equities.
–
Defaulted exposures, consisting of exposures that are past due or are exposures to defaulted borrowers.
–
Other assets, consisting of the remainder of exposures that UBS is exposed to, mainly non-counterparty-related assets.
Asset classes under the advanced internal ratings-based approach
–
Central governments, central banks and supranational organizations.
–
Corporates: specialized lending, consisting of exposures relating to income-producing real estate lending, project
finance, object finance and commodities finance.
–
Corporates: other lending, consisting of all exposures to corporates that are not specialized lending. This asset class
includes private commercial entities, such as corporations, partnerships or proprietorships, insurance companies and
funds (including managed funds).
–
Retail: exposures secured by real estate, consisting of exposures secured directly or indirectly by mortgages that are
secured fully or partially by residential or commercial real estate.
–
Retail: qualifying revolving retail exposures (QRRE), consisting of unsecured and revolving credits to individuals,
including credit card receivables.
–
Retail: other retail, consisting primarily of Lombard lending that represents loans made against the pledge of eligible
marketable securities or cash, as well as exposures to small businesses, private clients and other retail customers,
excluding exposures secured by real estate.
Asset classes under the foundation internal ratings-based approach
–
Banks, consisting of exposures to banks, securities firms and other financial institutions treated as banks.
–
Public sector entities, multilateral development banks.
–
Corporates: other lending, consisting of exposures to large corporate clients.
Governance over Pillar 3 disclosures
The BoD and senior management are responsible for establishing and maintaining an effective internal control structure
over the disclosure of financial information, including Pillar 3 disclosures. In line with BCBS and FINMA requirements, UBS
has a BoD-approved Pillar 3 disclosure governance policy in place, which includes information about the key internal
controls and procedures designed to govern the preparation, review and sign-off of Pillar 3 disclosures. UBS’s Pillar 3
framework has been amended to take account of the Group structure after the acquisition of the Credit Suisse Group
and will continue to be refined as the integration progresses. This Pillar 3 Report has been verified and approved in line
with UBS’s Pillar 3 framework.
31 December 2025 Pillar 3 Report |
UBS Group | Introduction and basis for preparation 10
Risk management framework
Our Group-wide risk management framework is applied across all risk types. The table below presents an overview of
risk management disclosures that are provided separately in the UBS Group Annual Report 2025, available under “Annual
reporting” at
ubs.com/investors
.
Annual |
OVA: Bank risk management approach
Pillar 3 disclosure requirement
UBS Group Annual Report 2025 section
Disclosure
UBS Group Annual Report 2025
page number
Interaction between business
model, risk profile and risk
tolerance
Our strategy, business model and
environment
–
Market environment, Industry trends
–
Risk factors
28–33
50–61
Risk management and control
–
Top and emerging risks
–
Risk identification
–
Risk categories
–
Overview of risks arising from our business
activities
–
Risk appetite framework
–
Risk management and control principles
–
Risk measurement
–
Credit risk
–
of measurement, monitoring and management
techniques, Credit risk profile of the Group
–
Market risk
–
Overview of measurement, monitoring and
management techniques
–
Interest rate risk in the banking book
–
Other market risk exposures
–
Country risk framework, Country risk exposure
–
Non-financial risk framework
88–89
89
90–91
92
94–96
95
96–98
99
111–112
115–117
117–118
118–120
127
Risk governance structure
Risk management and control
–
Risk categories
–
Risk governance
–
Interest rate risk in the banking book
–
management and governance
90–91
92–94
115
Capital management
–
Capital management objectives, planning and
activities
131
Liquidity and funding management
–
Strategy, objectives and governance
142
Communication and enforcement
of risk culture within the bank
Risk management and control
–
Risk governance
–
Internal risk reporting
–
Risk appetite framework
–
Non-financial risk framework
92–94
94
94–96
127
Scope and main features of risk
measurement systems
Risk management and control
–
Risk measurement
–
Credit risk
–
and management techniques
–
Market risk
–
monitoring and management techniques
–
Country risk exposure measure
–
Non-financial risk capital measurement
96–98
99
112
119
129
Risk information reporting provided
to the BoD and senior
management
Risk management and control
–
Risk governance
–
Internal risk reporting
–
Risk management and control principles
92–94
94
95
Stress testing
Risk management and control
–
Risk appetite framework
–
Stress testing
–
Credit risk models
–
–
Market risk stress loss
–
Interest rate risk in the banking book
–
Other market risk exposures
94–96
97–98
108
112
115–117
117–118
Liquidity and funding management
–
Liquidity and funding stress testing
142–143
31 December 2025 Pillar 3 Report |
UBS Group | Introduction and basis for preparation 11
Pillar 3 disclosure requirement
UBS Group Annual Report 2025 section
Disclosure
UBS Group Annual Report 2025
page number
Strategies and processes applied to
manage, hedge and mitigate risks
Risk management and control
–
Risk management and control principles
–
Credit risk
–
and management techniques
–
Credit risk mitigation
–
Market risk
–
monitoring and management techniques
–
Market risk
–
–
Interest rate risk in the banking book
–
Other market risk exposures
–
Country risk exposure
–
Non-financial risk framework
95
99
104–106
112
112–115
115–117
117–118
119–120
127
Liquidity and funding management
–
Strategy, objectives and governance
–
Management of liquidity and funding risk
142
143–144
Currency management
–
Strategy, objectives and governance
151
Consolidated financial statements
–
Note 10 Derivative instruments
–
Note 20 h) Maximum exposure to credit risk for
financial instruments measured at fair value
–
Note 21 Offsetting financial assets and financial
liabilities
289–290
328
330–331
Our approach to measuring risk exposure and risk-weighted assets
Depending on the intended purpose, the measurement of risk exposure that we apply may differ. Exposures may be
measured for financial accounting purposes under IFRS Accounting Standards for deriving our regulatory capital
requirement or for internal risk management and control purposes. Our Pillar 3 disclosures are generally based on
measures of risk exposure used to derive the regulatory capital required under Pillar 1. Our RWA are calculated according
to the revised CAO that incorporates the BCBS final Basel III framework into Swiss law, including the new FINMA
ordinances containing the implementing provisions for the revised CAO.
The table below provides a summary of the approaches we use for the main risk categories to determine the regulatory
risk exposure and RWA.
Category
Definition of risk
Regulatory risk exposure
Risk-weighted assets
I. Credit risk
Credit risk
Credit risk is the risk of a loss resulting from
the failure of a counterparty to meet its
contractual obligations toward UBS arising
from transactions such as loans and debt
securities held in our banking book and
undrawn credit facilities. It also includes equity
positions in the banking book.
Refer to section 5, Credit risk.
Exposure at default (EAD) is the amount we
expect a counterparty to owe us at the time of
a possible default. For loans and other banking
products, the EAD generally equals the balance
sheet carrying amount in line with IFRS
Accounting Standards. The EAD is expected to
remain constant over the 12-month period. For
loan commitments, a credit conversion factor is
applied to model expected future drawdowns
over the 12-month period, irrespective of the
actual maturity of a particular transaction.
We apply the following approaches to measure credit
risk RWA.
–
Advanced internal ratings-based (A-IRB)
approach
, applied for the majority of our
businesses. Counterparty risk weights are
determined by reference to internal probability of
default (PD) and loss given default (LGD)
estimates.
–
Foundation internal ratings-based (F-IRB)
approach
, applied for exposures to banks, public
sector entities and multilateral development
banks, and large corporate clients. Counterparty
risk weights are determined by reference to
internal PD estimates but using regulatory-
prescribed values for LGD.
–
Standardized approach (SA)
, generally based on
external ratings for a sub-set of our credit portfolio
where internal measures are not available.
–
Supervisory slotting approach
, applied for
specialized lending exposures. Internal rating
grades are mapped to one of five supervisory
categories, each of which is associated with a
specific risk weight.
31 December 2025 Pillar 3 Report |
UBS Group | Introduction and basis for preparation 12
Category
Definition of risk
Regulatory risk exposure
Risk-weighted assets
Non-counterparty-
related risk
Non-counterparty-related risk (NCPA) denotes
the risk of a loss arising from changes in value
or from liquidation of assets not linked to any
counterparty, e.g. premises, equipment and
software.
Refer to section 3, Overview of risk-weighted
assets.
The balance sheet carrying amount in line with
IFRS Accounting Standards is used for
measuring NCPA exposure.
We measure NCPA RWA by applying prescribed
regulatory risk weights to the NCPA exposure.
II. Counterparty credit risk
Counterparty credit
risk (CCR)
CCR is the risk that a counterparty for over-
the-counter (OTC) derivatives, exchange-
traded derivatives (ETDs) or securities
financing transactions (SFTs) will default
before the final settlement of a transaction
and cause a loss to the firm if the transaction
has a positive economic value at the time of
default.
Refer to section 6, Counterparty credit risk.
We primarily use internal models to measure
CCR exposures to third parties. All internal
models are approved by FINMA.
–
For OTC derivatives and ETDs
,
we apply the
effective expected positive exposure and
stressed expected positive exposure as
defined in the Basel
III framework.
–
For SFTs
, we apply the repo value-at-risk
approach.
In certain instances where internal models are
not available:
–
Exposure on OTC derivatives and ETDs
calculated considering the net positive
replacement values and potential future
exposure under the standardized approach
for CCR; and
–
Exposure for SFTs
Accounting Standards carrying amount, net of
collateral mitigation under the comprehensive
approach.
We apply the following approaches to measure CCR
RWA.
–
Advanced internal ratings-based (A-IRB)
approach
, applied for the majority of our
businesses. Counterparty risk weights are
determined by reference to internal counterparty
ratings and LGD estimates.
–
Foundation internal ratings-based (F-IRB)
approach
, applied for exposures to banks, public
sector entities and multilateral development
banks, and large corporate clients. Counterparty
risk weights are determined by reference to
internal PD estimates but using regulatory-
prescribed values for LGD.
–
Standardized approach (SA)
,
generally based on
external ratings for a sub-set of our credit
portfolio, where internal measures are not
available.
III. Credit valuation adjustment
Credit valuation
adjustment (CVA)
The CVA capital charge covers the risk of
mark-to-market losses associated with the
deterioration of counterparty credit quality.
Refer to section 7, Credit valuation
adjustment.
We generally use internal models to measure
CCR exposures to third parties. All internal
models are approved by FINMA. In certain
instances where internal models are not
available, the standardized approach is used.
We apply two approaches to measure CVA RWA.
–
Standardized approach (SA-CVA)
, applied to
positions where we generally use internal models
to derive the EAD for derivatives.
–
Full basic approach (BA-CVA)
,
for all other
positions.
IV. Settlement risk
Settlement risk
Settlement risk is the risk of loss resulting from
transactions that involve exchange of value
(e.g. security versus cash) where we must
deliver without first being able to determine
with certainty that we will receive the
countervalue.
Refer to section 3, Overview of risk-weighted
assets.
The balance sheet carrying amount in line with
IFRS Accounting Standards is used for
measuring settlement risk exposure.
We measure settlement risk RWA through the
application of prescribed regulatory risk weights to
the settlement risk exposure.
31 December 2025 Pillar 3 Report |
UBS Group | Introduction and basis for preparation 13
Category
Definition of risk
Regulatory risk exposure
Risk-weighted assets
V. Securitization exposures in the banking book
Securitization
exposures in the
banking book
Exposures arising from traditional and
synthetic securitizations held in our banking
book.
Refer to section 8, Securitizations.
The balance sheet carrying amount in line with
IFRS Accounting Standards after eligible
regulatory credit risk mitigation and credit
conversion factors is used for measuring
securitization exposures. For synthetic
securitization transactions, the exposure is
equal to the net exposure at default on
retained positions. Exposure values consist of
securitization exposures that UBS has retained
or purchased into the banking book when
acting as originator and / or sponsor.
Consistent with the BCBS, we apply the FINMA-
defined hierarchy of approaches for banking book
securitizations to measure RWA.
–
Securitization internal ratings-based approach
(SEC-IRBA)
, considering the advanced IRB risk
weights, if the securitized pool largely consists of
IRB positions and internal ratings are available.
–
Securitization external ratings-based approach
(SEC-ERBA)
, if the IRB approach cannot be
applied, risk weights are applied based on
external ratings if we are able to demonstrate our
expertise in critically reviewing and challenging
the external ratings.
–
Securitization standardized approach (SEC-SA) or
1,250% risk weight factor
, if none of the
aforementioned approaches can be applied, we
apply the standardized approach where the
delinquency status of a significant portion of the
underlying exposure can be determined or
otherwise a risk weight of 1,250%.
For re-securitization exposures we apply either the
standardized approach or a risk weight factor of
1,250%.
VI. Market risk
Market risk
Market risk is the risk of loss resulting from
adverse movements in market variables.
Market variables include observable factors,
such as interest rates, foreign exchange rates,
equity prices, credit spreads and commodity
(including precious metal) prices, as well as
variables that may be unobservable or only
indirectly observable, such as volatilities and
correlations.
Refer to section 9, Market risk.
We apply the standardized approach which
encompasses three components: the sensitivities-
based method (the SBM), the default risk charge (the
DRC) and the residual risk add-on (the RRAO). The
SBM captures the delta, vega and curvature risk of
the underlying trading positions, and the DRC
captures the jump-to-default risk in positions subject
to equity and credit risk. In addition, positions that
may not be adequately capitalized by the SBM and
the DRC additionally attract an RRAO charge.
Securitization /
re-securitization in
the trading book
Risk arising from traditional and synthetic
securitizations held in our trading book.
Refer to section 8, Securitizations and
section 9, Market risk.
The exposure is equal to the fair value of the
net long or short securitization position.
We measure trading book securitization RWA using
the
standardized approach
.
VII. Operational risk
Operational risk
Operational risk is the risk of loss resulting
from inadequate or failed internal processes,
people or systems, or from external causes
(deliberate, accidental or natural), including
cybersecurity and information-security risk.
Operational risk includes, among others, legal
risk, conduct risk and compliance risk.
Refer to section 10, Operational risk.
We use the
standardized approach
operational risk RWA in accordance with FINMA
requirements.
31 December 2025 Pillar 3 Report |
UBS Group | Key metrics 14
Key metrics
Key metrics for the fourth quarter of 2025
Quarterly |
The KM1 and KM2 tables below are based on the Swiss Financial Market Supervisory Authority (FINMA) Ordinance
on the Disclosure Obligations of Banks and Securities Firms (DisO-FINMA) rules. The KM2 table includes a reference to
the total loss-absorbing capacity (TLAC) term sheet, published by the Financial Stability Board (the FSB). The FSB provides
this term sheet at
fsb.org/2015/11/total-loss-absorbing-capacity-tlac-principles-and-term-sheet
.
Our capital ratio decreased, reflecting a decrease in our tier 1 capital, partly offset by a decrease in risk-weighted assets
(RWA). Our leverage ratio decreased, reflecting a decrease in tier 1 capital, partly offset by a decrease in the leverage
ratio denominator (the LRD).
Our common equity tier 1 (CET1) capital decreased by USD 3.4bn to USD 71.3bn, mainly reflecting operating profit
before tax of USD 1.7bn, which was more than offset by the recognition of a new USD 3.0bn capital reserve for expected
future share repurchases in 2026, dividend accruals of USD 1.1bn, a negative USD 0.3bn impact from compensation-
and own-share-related capital components, a USD 0.3bn decrease in eligible deferred tax assets on temporary differences,
and current tax expenses of USD 0.3bn. Share repurchases of USD 0.9bn made under our 2025 share repurchase program
in the fourth 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 in 2025. The remaining capital reserve for expected future share
repurchases in 2025 was fully utilized in the fourth quarter of 2025 with the completion of our 2025 share repurchase
program on 20 November 2025.
Our tier 1 capital decreased by USD 3.8bn to USD 91.2bn, reflecting the aforementioned decrease in CET1 capital and a
USD 0.4bn decrease in additional tier 1 (AT1) capital. The AT1 capital decrease was mainly driven by the call of one AT1
capital instrument equivalent to USD 0.4bn.
The TLAC available as of 31 December 2025 included CET1 capital, AT1 capital, tier 2 capital and non-regulatory capital
elements of TLAC.
Our available TLAC decreased by USD 12.0bn to USD 187.3bn, mainly reflecting the aforementioned decrease in tier 1
capital and an USD 8.3bn decrease in non-regulatory capital elements of TLAC. The decrease in non-regulatory capital
elements of TLAC mainly reflected USD 5.8bn of TLAC-eligible senior unsecured debt instruments that we repurchased
in November 2025 under tender offers and the redemption of TLAC-eligible senior unsecured debt instruments for the
equivalent of USD 5.5bn (including one instrument, ISIN US902613AU26, that ceased to be eligible when we issued a
notice of redemption of the instrument in the fourth quarter of 2025). These decreases were partly offset by new
issuances of TLAC-eligible senior unsecured debt instruments totaling the equivalent of USD 3.3bn.
During the fourth quarter of 2025, RWA decreased by USD 11.5bn to USD 493.4bn, mainly driven by decreases of
USD 4.5bn from market risk RWA, USD 2.5bn from counterparty credit risk RWA, USD 2.3bn from credit valuation
adjustment RWA, USD 1.0bn from operational risk RWA and USD 0.9bn from RWA on securitization exposures in banking
book. The remaining variance was spread across other risk types.
During the fourth quarter of 2025, the LRD decreased by USD 18.0bn to USD 1,622.4bn, driven by an USD 18.9bn
decrease from asset size and other movements, partly offset by a USD 0.8bn increase from currency effects.
The quarterly average liquidity coverage ratio of the UBS Group remained broadly unchanged at 182.6%, remaining
above the prudential requirement communicated by FINMA. Average net cash outflows decreased by USD 8.7bn to
USD 181.7bn, reflecting higher net inflows from securities financing transactions and lower net outflows from derivatives.
The effect of the decrease in net cash outflows was offset by a USD 15.0bn decrease in average high-quality liquid assets,
mainly reflecting lower cash available, due to higher lending assets and brokerage receivables, and lower amounts due
to banks.
As of 31 December 2025, the net stable funding ratio of the UBS Group decreased 3.6 percentage points to 116.1%,
remaining above the prudential requirement communicated by FINMA. Available stable funding decreased by USD 16.7bn
to USD 882.0bn, mainly driven by decreases in debt issued measured at amortized cost and regulatory capital. Required
stable funding increased by USD 8.9bn to USD 759.8bn, mainly reflecting higher lending assets, partly offset by lower
derivatives and cash collateral receivables on derivative instruments.
31 December 2025 Pillar 3 Report |
UBS Group | Key metrics 15
KM1: Key metrics
USD m, except where indicated
31.12.25
30.9.25
30.6.25
31.3.25
31.12.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
71,262
74,655
72,709
69,152
71,367
2
Tier 1
91,176
94,950
91,721
87,837
87,739
3
Total capital
91,201
94,950
91,721
87,837
87,739
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
493,397
504,897
504,500
483,276
498,538
4a
Total risk-weighted assets (pre-floor)
493,397
504,897
504,500
483,276
4b
Minimum capital requirement
1
39,472
40,392
40,360
38,662
39,883
Risk-based capital ratios as a percentage of RWA
5
Common equity tier 1 ratio (%)
14.44
14.79
14.41
14.31
14.32
5b
Common equity tier 1 ratio (%) (pre-floor)
14.44
14.79
14.41
14.31
6
Tier 1 ratio (%)
18.48
18.81
18.18
18.18
17.60
6b
Tier 1 ratio (%) (pre-floor)
18.48
18.81
18.18
18.18
7
Total capital ratio (%)
18.48
18.81
18.18
18.18
17.60
7b
Total capital ratio (%) (pre-floor)
18.48
18.81
18.18
18.18
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
2.50
2.50
2.50
2.50
2.50
9
Countercyclical buffer requirement (%)
0.11
0.12
0.13
0.13
0.16
9a
Additional countercyclical buffer for Swiss mortgage loans (%)
0.38
0.32
0.33
0.31
0.37
10
Bank G-SIB and / or D-SIB additional requirements (%)
1.50
1.50
1.50
1.50
1.00
11
Total of bank CET1 specific buffer requirements (%)
2
4.11
4.12
4.13
4.13
3.66
12
CET1 available after meeting the bank’s minimum capital requirements (%)
3
9.94
10.29
9.91
9.81
9.60
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
1,622,438
1,640,464
1,658,089
1,561,583
1,519,477
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
4
5.62
5.79
5.53
5.62
5.77
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
5.62
5.79
5.53
5.62
14c
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
4
5.58
5.77
5.54
5.60
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
5.58
5.77
5.54
5.60
14e
Minimum capital requirements
5
48,673
49,214
49,743
46,848
Liquidity coverage ratio (LCR)
6
15
Total high-quality liquid assets (HQLA)
331,568
346,550
358,759
318,735
331,481
16
Total net cash outflow
181,693
190,359
196,846
176,190
176,008
16a
of which: cash outflows
390,134
388,343
385,105
362,013
347,761
16b
of which: cash inflows
208,441
197,984
188,259
185,823
171,753
17
LCR (%)
182.64
182.12
182.31
180.96
188.37
Net stable funding ratio (NSFR)
18
Total available stable funding
882,039
898,762
904,703
861,717
856,804
19
Total required stable funding
759,829
750,960
738,891
693,777
682,508
20
NSFR (%)
116.08
119.68
122.44
124.21
125.54
1 Calculated as 8% of total RWA, based on total capital minimum requirements, excluding CET1 buffer requirements. 2 Excludes non-BCBS capital buffer requirements for risk-weighted positions that are directly
or indirectly backed by residential properties in Switzerland. 3 Represents the CET1 ratio that is available to meet buffer requirements. Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and,
where applicable, minus the BCBS tier 2 capital requirement met with CET1 capital. 4 There is currently no temporary exemption of central bank reserves for UBS. 5 The higher of capital requirements based on
8% of RWA or 3% of LRD. 6 Calculated after the application of haircuts and inflow and outflow rates, as well as, where applicable, caps on Level 2 assets and cash inflows. Calculated based on an average of
64 data points in the fourth quarter of 2025 and 65 data points in the third quarter of 2025. For the prior-quarter data points, refer to the respective Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors, for more information.
KM2: Key metrics – TLAC requirements (at resolution group level)
1
USD m, except where indicated
31.12.25
30.9.25
30.6.25
31.3.25
31.12.24
1
Total loss-absorbing capacity (TLAC) available
2
Total RWA at the level of the resolution group
3
TLAC as a percentage of RWA (%)
4
Leverage ratio exposure measure at the level of the resolution group
5
TLAC as a percentage of leverage ratio exposure measure (%)
6a
Does the subordination exemption in the antepenultimate paragraph of
Section 11 of the FSB TLAC Term Sheet apply?
No
6b
Does the subordination exemption in the penultimate paragraph of
Section 11 of the FSB TLAC Term Sheet apply?
No
6c
If the capped subordination exemption applies, the amount of funding
issued that ranks pari passu with excluded liabilities and that is
recognized as external TLAC, divided by funding issued that ranks pari
passu with excluded liabilities and that would be recognized as external
TLAC if no cap was applied (%)
N/A – Refer to our response to 6b.
1 Resolution group level is defined as the UBS Group AG consolidated level.
31 December 2025 Pillar 3 Report |
UBS Group | Overview of risk-weighted assets 16
Overview of risk-weighted assets
Overview of risk-weighted assets and capital requirements
Quarterly |
The OV1 table below provides an overview of our risk-weighted assets (RWA) and the related minimum capital
requirements by risk type. The table presented is based on the respective Swiss Financial Market Supervisory Authority
(FINMA) template and empty rows indicate current non-applicability to UBS.
During the fourth quarter of 2025, RWA decreased by USD 11.5bn to USD 493.4bn, mainly driven by decreases of
USD 4.5bn from market risk RWA, USD 2.5bn from counterparty credit risk (CCR) RWA, USD 2.3bn from credit valuation
adjustment (CVA) RWA, USD 1.0bn from operational risk RWA and USD 0.9bn from RWA on securitization exposures in
banking book. The remaining variance was spread across other risk types.
Market risk RWA decreased by USD 4.5bn, due to asset size and other movements in the Investment Bank’s Global
Markets business and, to a lesser extent, from de-risking within Non-core and Legacy.
CCR RWA decreased by USD 2.5bn, mainly driven by decreases of USD 1.9bn related to asset size and other movements
and USD 0.6bn related to model updates and methodology changes. The decrease in asset size and other movements
largely reflected roll-offs and market-driven movements in the Investment Bank and Global Wealth Management.
CVA RWA decreased by USD 2.3bn, primarily due to risk mitigation, roll-offs and market-driven movements, primarily in
the Investment Bank.
Operational risk RWA decreased by USD 1.0bn to USD 135.4bn, mainly driven by a reduction in the business indicator
component.
RWA on securitization exposures in banking book decreased by USD 0.9bn, primarily driven by asset size and other
movements in Personal & Corporate Banking.
The flow tables for credit risk, CCR and CVA RWA in the respective sections of this report provide further details regarding
the movements in RWA in the fourth quarter of 2025.
›
Refer to the “Introduction and basis for preparation” section of this report for more information about the applied regulatory
standards
›
Refer to the “Capital management” section of the UBS Group Annual Report 2025, available under
”Annual reporting” at
ubs.com/investors
, for more information about capital management and RWA, including details regarding movements in RWA
during 2025
Material model updates and methodology changes
Model updates and methodology changes implemented during the second half of 2025 resulted in a USD 2.8bn
reduction in RWA. The decrease primarily reflected updates to Lombard lending and concentrated equity lending in
Global Wealth Management, as well as an update to loss given default (LGD) for cash and balances at central banks.
These reductions were partially offset by an increase in RWA following the migration of exposures from Credit Suisse
models. The updates also affected Pillar 3 tables, due to asset class reclassifications and the movement of exposures from
the internal ratings-based (IRB) approach to the standardized approach.
›
Refer to “Credit risk exposure and CRM effects” and “Credit risk exposures by portfolio and PD range” in the “Credit risk” section
of this report for more information
31 December 2025 Pillar 3 Report |
UBS Group | Overview of risk-weighted assets 17
OV1: Overview of RWA
Section or table
reference
Minimum
capital
requirements
1
USD m, except where indicated
31.12.25
30.9.25
30.6.25
31.3.25
31.12.24
31.12.25
1
Credit risk (excluding counterparty credit risk)
CMS1, CMS2, 5
2
of which: standardized approach (SA)
CMS1, CMS2, CR4
2a
of which: non-counterparty-related risk
2
3
of which: foundation internal ratings-based (F-IRB) approach
3
CR6
4
of which: supervisory slotting approach
CR10
5
of which: advanced internal ratings-based (A-IRB) approach
CR6
5a
of which: adjustments related to the Swiss sectoral real estate floor for
exposures secured by real estate in Switzerland
3,4
6
Counterparty credit risk
5
CMS1, 6
7
of which: SA for counterparty credit risk (SA-CCR)
8
of which: internal model method (IMM)
CCR7
8a
of which: value-at-risk (VaR)
CCR7
9
of which: other CCR
10
Credit valuation adjustment (CVA)
CMS1, 7
10a
of which: full basic approach (BA-CVA)
3
CVA2
10b
of which: standardized approach (SA-CVA)
3
CVA3, CVA4
11
Equity positions under the simple risk weight approach during the five-year
transitional period
6
12
Equity investments in funds – look-through approach
CMS1
13
Equity investments in funds – mandate-based approach
CMS1
14
Equity investments in funds – fallback approach
CMS1
15
Settlement risk
CMS1
16
Securitization exposures in banking book
CMS1, 8
17
of which: securitization internal ratings-based approach (SEC-IRBA)
18
of which: securitization external ratings-based approach (SEC-ERBA),
including internal assessment approach (IAA)
19
of which: securitization standardized approach (SEC-SA)
20
Market risk
CMS1, 9
21
of which: standardized approach (SA)
22
of which: internal models approach (IMA)
23
Capital charge for switch between trading book and banking book
24
Operational risk
CMS1, 10
25
Amounts below thresholds for deduction (250% risk weight)
7
CMS1
25a
26
Output floor applied (%)
3,8
27
Floor adjustment (before application of transitional cap)
3,9
28
Floor adjustment (after application of transitional cap)
10
29
Total
1 Calculated based on 8% of RWA. 2 Non-counterparty-related risk includes property, equipment, software and other items. 3 Disclosure is based on the final Basel III standards implemented with effect as of
1 January 2025. 4 The Swiss sectoral real estate floor is not applicable at the level of UBS Group AG consolidated. 5 Excludes settlement risk, which is separately reported in line 15 “Settlement risk”. Includes
RWA with central counterparties. The split between the sub-components of counterparty credit risk refers to the calculation of the exposure measure. 6 The simple risk-weight approach is no longer applicable at
UBS, and equity positions in the banking book are included in row 2. The five-year transitional period is effective as of 1 January 2025 but is not applicable to UBS. 7 Includes items subject to threshold deduction
treatment that do not exceed their respective threshold and are risk weighted at 250%. Items subject to threshold deduction treatment include significant investments in common shares of non-consolidated financial
institutions (banking, insurance and financial entities) and deferred tax assets arising from temporary differences. 8 The overall output floor of 72.5% is subject to a phase-in until 1 January 2028. As of 1 January
2025, the applicable overall output floor at the level of UBS Group AG consolidated is 60%. As of 1 January 2026, the output floor increased to 65%, and will increase to 70% in 2027. 9 FINMA has not opted to
implement a transitional cap that would limit the increase in RWA to 25% of a bank’s RWA before the application of the output floor. 10 The total of our actual final Basel III RWA is higher than 60% of our final
Basel III RWA calculated using the full standardized approach. Therefore, the overall output floor is not binding, and our RWA before and after the effects of the overall output floor are equal.
Comparison of modelled and standardized RWA at risk level
Quarterly |
full standardized approach. The table also provides the full standardized approach for RWA that are the base of the
phased-in overall output floor. The purpose of the overall output floor is to ensure that banks’ capital requirements based
on modelled approaches where permitted do not fall below a certain percentage of capital requirements based on the
full standardized approach, thereby reducing excessive variability of RWA and enhancing the comparability of risk-based
capital ratios across banks. The impact of the output floor, if applicable, will be disclosed in the “OV1: Overview of RWA”
table in rows 27 and 28. The applicable threshold pursuant to the reporting date is disclosed in row 26 of the OV1 table,
and in column e in the CMS1 table below. The output floor was set at 60% during 2025. As of 1 January 2026, the
output floor increased to 65% and will incrementally increase to a level of 72.5% by 2028. As of 31 December 2025,
the floor is not binding at the level of UBS Group, i.e. the total of our actual RWA shown in column c in the CMS1 table
below is greater than 60% of the RWA calculated under the full standardized approach shown in column e, and therefore
no adjustment is required. UBS is undertaking mitigating actions with respect to RWA under the standardized approach
to minimize a future floor adjustment required as the level of the output floor increases.
›
Refer to “Overview of risk-weighted assets and capital requirements” in this section for information about the OV1 table
The table below provides a summary of the key conceptual differences between the internal model approach and the
standardized approach.
31 December 2025 Pillar 3 Report |
UBS Group | Overview of risk-weighted assets 18
Key differences between the internal model approach and the standardized approach
Internal model approach
Standardized approach
Key impact
Risk weighting
Reliance on internal ratings where each
counterparty / transaction receives a rating.
Reliance on external credit assessment institutions
where permitted in the regulatory framework.
Modelled approach produces RWA that is more risk
sensitive.
Granular risk-sensitive risk weight differentiation
via individual probability of default (PD) and LGD
for mortgages.
Less granular risk weights based on loan-to-value
(LTV) bands for mortgages.
The Group’s residential mortgage portfolio is
focused on the Swiss market, and the Group has
robust review processes in place concerning
borrowers’ ability to repay. This results in the
Group’s residential mortgage portfolio having a low
average LTV and results in an average risk weight
of around 20% under the advanced IRB (A-IRB)
approach.
Modelled LGD captures transaction quality
features including collateralization. Under the
foundation internal ratings-based (F-IRB)
approach, the LGD values are calculated based
on the rules set by FINMA.
No differentiation for transaction features (except
where claim is subordinated).
Impact relevant across all asset classes.
Credit risk mitigation
Credit risk mitigation recognized via risk-sensitive
LGD or exposure at default (EAD).
Limited recognition of credit risk mitigation.
Standardized approach RWA is higher than
modelled RWA for most transaction types.
Wider variety of eligible collateral.
Restricted list of eligible collateral.
Limited recognition of collateral results in higher
RWA for Lombard lending and securities financing
transactions (SFTs).
Repo value-at-risk (VaR) permits the use of VaR
models to estimate exposure and collateral for
SFTs. Approach permits full diversification and
netting across all collateral types.
Conservative and crude regulatory haircuts with
limited risk sensitivity.
The effects of guarantees and credit derivatives
are considered through either adjusting PD
and / or LGD estimates. UBS applies the F-IRB
approach for guarantee recognition.
In case of eligible guarantees and credit derivatives,
substitution is applied and the risk weight
applicable to the protection provider can be
assigned to the protected portion of the underlying
exposure.
CCF
A credit conversion factor (CCF) is applied to
model expected future drawdowns over the
12-month period, irrespective of the actual
maturity of a particular transaction. The CCF
includes downturn adjustments and is the result
of analysis of internal data and expert opinion.
Credit exposure equivalents are determined by
applying CCFs to off-balance sheet items. The CCFs
vary based on product type, maturity and the
underlying contractual agreements.
Modelled CCFs can be more tailored and
differentiated.
EAD for derivatives
Internal model method (IMM) facilitates the use
of a Monte Carlo simulation to estimate
exposure.
The standardized approach for CCR is calculated as
the replacement costs plus regulatory add-ons that
take into account potential future market moves at
predetermined fixed rates.
For large, diversified derivatives portfolios,
standardized EAD is higher than modelled EAD.
Application of multiplier on IMM exposure
estimate.
Differentiates add-ons by five exposure types and
three maturity buckets only.
Variability in holding period applied to
collateralized transactions, reflecting liquidity
risks.
Limited netting can be recognized.
EAD for SFTs
The repo VaR approach is a model based on a
Monte Carlo simulation and historical calibration
to estimate exposure, computed as quantile
exposure.
The comprehensive approach considers the adjusted
exposure after applicable supervisory haircuts on
both the exposure and the collateral received to
take account of possible future fluctuations in the
value of either the exposure or the collateral.
For large, diversified SFT portfolios, standardized
EAD is higher than modelled EAD.
Maturity in risk weight
Regulatory RWA function considers maturity: the
longer the maturity, the higher the risk weight.
No differentiation for maturity of transactions,
except for interbank exposures.
Model approach produces lower RWA for high-
quality, short-term transactions.
Credit valuation
adjustment
Not applicable under the final Basel III standards.
UBS calculates the CVA risk capital requirement
using both the standardized approach (SA-CVA)
and the full basic approach (BA-CVA) in line with
the final Basel III standards. The SA-CVA uses
sensitivities to market risk factors (e.g. interest rates
and credit spreads) and uses those sensitivities with
regulatory-prescribed risk weights and correlations
to arrive at a capital charge. The BA-CVA approach
is simpler and less risk sensitive.
Where the BA-CVA and the SA-CVA are applied
under the output floor calculation, the application
of internal ratings is not permitted.
Securitization exposures
in the banking book
The regulatory capital requirements are
calculated using a hierarchy of approaches. First,
the securitization internal ratings-based approach
(SEC-IRBA) is applied, if possible. If this approach
cannot be applied, one of the standardized
approaches is applied.
If the SEC-IRBA cannot be applied, the regulatory
capital requirements are calculated using the
following hierarchy of approaches: the securitization
external ratings-based approach or the
securitization standardized approach (SEC-SA).
Otherwise, a 1,250% risk weight is applied as a
fallback.
31 December 2025 Pillar 3 Report |
UBS Group | Overview of risk-weighted assets 19
Key differences between the internal model approach and the standardized approach (continued)
Internal model approach
Standardized approach
Key impact
Market risk
UBS does not apply the internal model approach
for market risk.
UBS currently applies the standardized approach of
the Fundamental Review of the Trading Book (the
FRTB) framework, in which minimum market risk
capital requirements are computed on the basis of
three components: the sensitivities-based method
(the SBM), the default risk charge (the DRC) and
the residual risk add-on (the RRAO). The SBM
captures delta, vega and curvature risk of the
underlying trading positions, the DRC uses the
jump-to-default risk in positions subject to equity
and credit risk, and positions that may not be
adequately capitalized by the SBM and the DRC
additionally attract an RRAO charge.
Where the standardized approach is applied under
the output floor calculation, the application of
internal ratings is not permitted.
The new FRTB framework replaced the VaR - and
stressed VaR-based Basel 2.5 market risk
framework.
Operational risk
Not applicable under the final Basel III standards.
The standardized approach is based on the business
indicator component, derived from financial
statement metrics, as well as the internal loss
multiplier, derived from average historical
operational losses. The new framework replaced the
advanced measurement approach.
As of 31 December 2025, the output floor is set at USD 433.6bn, representing 60% of RWA calculated using the full
standardized approach effective for the full year 2025. This floor is USD 59.8bn below the actual RWA of USD 493.4bn.
During the fourth quarter of 2025, the difference between RWA calculated using the full standardized approach and
actual RWA decreased by USD 10.2bn, to USD 229.3bn from USD 239.6bn. This decrease was primarily driven by RWA
mitigation actions undertaken during the quarter, changes in asset size and other movements, which contributed to a
decrease in RWA calculated using the full standardized approach.
Credit risk RWA under the full standardized approach were higher than actual RWA. Under the standardized approach,
fixed risk weights are applied to residential mortgage exposures, depending on the LTV. The internal model-based
approach considers borrowers’ ability to service debt more accurately, including mortgage affordability and calibration
based on historic data. The Group’s residential mortgage portfolio is focused on the Swiss market, and the Group has
robust review processes in place concerning borrowers’ ability to repay. This results in the Group’s residential mortgage
portfolio having a low average LTV and consequently a lower average risk weight under the A-IRB approach compared
with the standardized approach. For Lombard lending, the average risk weight using internal models is lower than under
the standardized approach, primarily due to differences in collateral treatment. Additionally, corporate exposures have
higher risk weights under the standardized approach compared with the average risk density in the modelled approach.
CCR RWA under the full standardized approach were higher than actual RWA, primarily reflecting higher risk weights
under the standardized approach compared with the IRB risk weights mainly in the corporate asset class, especially on
managed funds. In addition to risk weights, exposures calculated under the standardized approach are higher, because
the standardized approach does not fully recognize the benefits of netting, portfolio diversification and collateral.
CVA RWA calculated using the full standardized approach were higher than actual RWA, as the application of internal
ratings is not permitted under the standardized approach for output floor calculations.
RWA on securitization exposure in banking book calculated using the full standardized approach were higher than actual
RWA, due to more conservative assumptions and less granular risk assessments permitted under the SEC-SA when
compared with the SEC-IRBA framework.
31 December 2025 Pillar 3 Report |
UBS Group | Overview of risk-weighted assets 20
CMS1: Comparison of modelled and standardized RWA at risk level
a
b
c
d
e
USD m
RWA for modelled
approaches that UBS has
FINMA approval to use
RWA for portfolios
where standardized
approaches are used
Total Actual RWA
(i.e. RWA which banks
report as current
requirements)
RWA calculated using
full standardized
approach
(i.e. used in the base
of the output floor)
Output floor base
(60% of RWA
calculated using full
standardized
approach)
31.12.25
1
Credit risk (excluding counterparty credit risk)
2
Counterparty credit risk
3
Credit valuation adjustment (CVA)
4
Securitization exposures in banking book
5
Market risk
6
Operational risk
7
Residual RWA
1
8
Total
2
30.9.25
1
Credit risk (excluding counterparty credit risk)
2
Counterparty credit risk
3
Credit valuation adjustment (CVA)
4
Securitization exposures in banking book
5
Market risk
6
Operational risk
7
Residual RWA
1
8
Total
2
30.6.25
1
Credit risk (excluding counterparty credit risk)
2
Counterparty credit risk
3
Credit valuation adjustment (CVA)
4
Securitization exposures in banking book
5
Market risk
6
Operational risk
7
Residual RWA
1
8
Total
2
31.3.25
1
Credit risk (excluding counterparty credit risk)
2
Counterparty credit risk
3
Credit valuation adjustment (CVA)
4
Securitization exposures in banking book
5
Market risk
6
Operational risk
7
Residual RWA
1
8
Total
2
1 Includes settlement risk, equity investments in funds and deferred tax assets arising from temporary differences. 2 The output floor is applied to total RWA, and not for each individual risk category.
Comparison of modelled and standardized RWA for credit risk at asset class level
Semi-annual |
The CMS2 table below elaborates on the comparison between RWA calculated under the full standardized and
the internally modelled approaches (including the IRB approach for credit risk and the supervisory slotting approach) by
focusing on RWA for credit risk at the asset class and sub-asset class levels.
During the second half of 2025, the difference between credit risk RWA calculated using the full standardized approach
and actual credit risk RWA decreased by USD 4.2bn, to USD 121.2bn from USD 125.3bn.
›
Refer to “Comparison of modelled and standardized RWA at risk level” in this section for information about the overall output
floor
RWA in the Retail asset class calculated using the full standardized approach were higher than actual such RWA. The
largest component of the difference is observed primarily within Retail: exposures secured by real estate and Retail: other
retail, which includes Lombard lending. Under the standardized approach, fixed risk weights are applied to exposures
secured by real estate, depending on the LTV. The internal model-based approach considers borrowers’ ability to service
debt more accurately, including calibration based on historic data. The Group’s residential mortgage portfolio is focused
on the Swiss market, and the Group has robust review processes in place concerning borrowers’ ability to repay. This
results in the Group’s residential mortgage portfolio having a low average LTV and consequently a lower average risk
weight under the A-IRB approach compared with the standardized approach. For Lombard lending the average risk
weight using internal models is significantly lower than under the standardized approach, primarily due to differences in
collateral treatment.
RWA in the Corporates: other lending asset class calculated using the full standardized approach were higher than actual
such RWA. The difference is primarily driven by exposures to large corporate clients, which have higher risk weights under
the standardized approach compared with the average risk weight under the modelled approach.
31 December 2025 Pillar 3 Report |
UBS Group | Overview of risk-weighted assets 21
RWA in the Corporates: specialized lending asset class calculated using the full standardized approach were higher than
actual such RWA. The difference is primarily driven by exposures related to income-producing real estate (IPRE) and object
financing. Under the standardized approach, fixed LTV-dependent risk weights are applied to exposures related to IPRE
resulting in a higher average risk weight than under the modelled approach.
CMS2: Comparison of modelled and standardized RWA for credit risk at asset class level
a
b
c
d
e
USD m
RWA for modelled
approaches that UBS
has FINMA approval
to use
RWA for column (a) if
re-computed using the
standardized approach
Total Actual RWA
(i.e. RWA which banks
report as current
requirements)
RWA calculated using
full standardized
approach
(i.e. used in the base
of the output floor)
Output floor base
(60% of RWA
calculated using full
standardized
approach)
1
31.12.25
1
Central governments, central banks and
supranational organizations
2
of which: Central governments, central banks and
supranational organizations (F-IRB)
3
of which: Central governments, central banks and
supranational organizations (A-IRB)
4
Banks
5
Public sector entities and multilateral development
banks
6
Corporates: specialized lending
7
of which: Corporates: specialized lending under the
supervisory slotting approach
8
of which: Corporates: specialized lending (F-IRB)
9
of which: Corporates: specialized lending (A-IRB)
10
Corporates: other lending
11
of which: Corporates: other lending (F-IRB)
12
of which: Corporates: other lending (A-IRB)
13
Retail
14
of which: Retail: exposures secured by real estate
15
of which: Retail: qualifying revolving retail
exposures (QRRE)
16
of which: Retail: other retail
17
Equity exposures
18
Other
19
Total
30.6.25
1
Central governments, central banks and
supranational organizations
2
of which: Central governments, central banks and
supranational organizations (F-IRB)
3
of which: Central governments, central banks and
supranational organizations (A-IRB)
4
Banks
5
Public sector entities and multilateral development
banks
6
Corporates: specialized lending
7
of which: Corporates: specialized lending under the
supervisory slotting approach
8
of which: Corporates: specialized lending (F-IRB)
9
of which: Corporates: specialized lending (A-IRB)
10
Corporates: other lending
11
of which: Corporates: other lending (F-IRB)
12
of which: Corporates: other lending (A-IRB)
13
Retail
14
of which: Retail: exposures secured by real estate
15
of which: Retail: qualifying revolving retail
exposures (QRRE)
16
of which: Retail: other retail
17
Equity exposures
18
Other
19
Total
1 Although the output floor is applied to total RWA, the output floor disclosed in the CMS2 table reflects only RWA attributable to credit risk exposures. Refer to the “CMS1: Comparison of modelled and standardized
RWA at risk level” table in this section for information about non-credit risk exposures.
31 December 2025 Pillar 3 Report |
UBS Group | Linkage between financial statements and regulatory exposures 22
Linkage between financial statements and regulatory
exposures
Annual |
This section provides information about the differences between our regulatory exposures and carrying amounts
presented in our financial statements prepared in accordance with IFRS Accounting Standards. Assets and liabilities
presented in our IFRS Accounting Standards financial statements may be subject to more than one risk framework, as
explained further below.
LIA: Explanation of the differences between the IFRS Accounting Standards and regulatory scopes of
consolidation
The scope of consolidation for the purpose of calculating Group regulatory capital is generally the same as the
consolidation scope under IFRS Accounting Standards and includes subsidiaries that are directly or indirectly controlled
by UBS Group AG and are active in banking and finance. However, subsidiaries consolidated under IFRS Accounting
Standards whose business is outside of banking and finance are generally excluded from the regulatory scope of
consolidation. Subject to the regulatory auditor’s consent, a subsidiary fully consolidated under IFRS Accounting
Standards may be proportionately consolidated under the regulatory scope of consolidation on an exceptional basis
provided that (i) the bank’s obligation to support the company subject to consolidation is limited to the bank’s own
holding quota and (ii) the remaining shareholders or partners are required to provide support in proportion to their
holding quota and are legally and financially able to fulfill their obligations. The key difference between the IFRS
Accounting Standards and regulatory scopes of consolidation as of 31 December 2025 relates to investments in
insurance, real estate and commercial companies, as well as investment vehicles, that are consolidated under IFRS
Accounting Standards but may be either proportionately consolidated or not consolidated for regulatory capital purposes,
in which case they are subject to risk weighting.
As of 31 December 2025, UBS Asset Management Life Ltd (total assets on a standalone basis as of 31 December 2025:
USD 21,036m; total equity on a standalone basis as of 31 December 2025: USD 33m) was the most significant entity
included in the IFRS Accounting Standards scope of consolidation but not in the regulatory scope of consolidation. This
life insurance entity accounts for most of the difference between the “Carrying values as reported in published financial
statements” and the “Carrying values under the scope of regulatory consolidation” columns in the LI1 table below, as
well as between the “Balance sheet in accordance with IFRS Accounting Standards scope of consolidation” and the
“Balance sheet in accordance with regulatory scope of consolidation” columns in the “CC2: Reconciliation of accounting
balance sheet to balance sheet under the regulatory scope of consolidation” table in the “Going and gone concern
requirements and eligible capital“ section of this report. The difference is mainly related to financial assets at fair value
not held for trading and other financial liabilities designated at fair value. Further differences are mainly related to other
entities that are not active in banking and finance and are, therefore, generally not consolidated under the regulatory
scope of consolidation. As of 31 December 2025, entities consolidated under either IFRS Accounting Standards or the
regulatory scope of consolidation did not report any significant capital deficiencies.
In the banking book, certain equity investments are not consolidated under either IFRS Accounting Standards or under
the regulatory scope. As of 31 December 2025, these investments mainly consisted of infrastructure holdings and joint
operations (e.g. settlement and clearing institutions, and stock and financial futures exchanges) and included our
participation in SIX Group. These investments are risk weighted based on applicable threshold rules.
More information about the legal structure of the UBS Group and the IFRS Accounting Standards scope of consolidation
is provided in the “Our evolution” section and in “Note 1 Summary of material accounting policies” in the “Consolidated
financial statements” section, respectively, of the UBS Group Annual Report 2025, available under “Annual reporting”
at
ubs.com/investors
.
31 December 2025 Pillar 3 Report |
UBS Group | Linkage between financial statements and regulatory exposures 23
Fair value measurement
Annual |
The table below refers to additional information about fair value measurement that is provided separately in the
UBS Group Annual Report 2025, available under “Annual reporting” at
ubs.com/investors
.
›
Refer to “Prudent valuation adjustments” in the “Going and gone concern requirements and eligible capital” section of this report
for information about prudent valuation adjustments to common equity tier 1 capital
LIA: Fair value measurement
Pillar 3 disclosure requirement
UBS Group Annual Report 2025 section
Disclosure
UBS Group Annual
Report 2025 page
number
Valuation methodologies applied,
including mark-to-market and
mark-to-model methodologies in
use
Consolidated financial statements
–
Note 20 a) Valuation principles
–
Note 20 c) Fair value hierarchy
–
Note 20 e) Level 3 instruments: valuation techniques and
inputs
316
317–321
323–325
Description of the independent
price verification process
Consolidated financial statements
–
Note 20 b) Valuation governance
316
Procedures for valuation
adjustments or reserves for valuing
trading positions by type of
instrument
Consolidated financial statements
–
Note 20 d) Valuation adjustments and other items
322–323
Differences between accounting and regulatory scopes of consolidation and mapping of financial statement
categories with regulatory risk categories
Annual |
The LI1 table below provides the differences between accounting and regulatory scopes of consolidation and a
breakdown of the IFRS Accounting Standards balance sheet categories into the risk types used to calculate our regulatory
capital requirements. Cash collateral receivables and payables on derivative instruments, derivative financial instruments
and financial assets at fair value not held for trading are subject to capital requirements under both market risk and
counterparty credit risk frameworks. In addition, other financial assets measured at amortized cost, financial assets
measured at fair value through profit or loss and financial assets measured at fair value through other comprehensive
income include securities that have been pledged as collateral. These securities are also considered in the counterparty
credit risk framework, as collateral pledged is subject to counterparty credit risk. Carrying values subject to the market
risk framework do not include foreign exchange risk on banking book positions.
›
Refer to “LIA: Explanation of the differences between the IFRS Accounting Standards and regulatory scopes of consolidation” in
this section for information about the differences between the accounting and regulatory scopes of consolidation
31 December 2025 Pillar 3 Report |
UBS Group | Linkage between financial statements and regulatory exposures 24
LI1: Differences between accounting and regulatory scopes of consolidation and mapping of financial statement
categories with regulatory risk categories
31.12.25
Carrying values
as reported in
published
financial
statements
Carrying values
under scope of
regulatory
consolidation
Carrying values of items:
USD m
Subject to
credit risk
framework
1
Subject to
counterparty
credit risk
framework
2
Subject to
securitization
framework
3
Subject to
market risk
framework
Not subject to
capital
requirements
or subject to
deduction
from capital
Assets
Cash and balances at central banks
Amounts due from banks
4
Receivables from securities financing transactions measured
at amortized cost
Cash collateral receivables on derivative instruments
Loans and advances to customers
4
Other financial assets measured at amortized cost
5
Total financial assets measured at amortized cost
Financial assets at fair value held for trading
6
5
of which: assets pledged as collateral that may be sold or
repledged by counterparties
Derivative financial instruments
Brokerage receivables
Financial assets at fair value not held for trading
7
5,8
Total financial assets measured at fair value through profit
or loss
Financial assets measured at fair value through other
comprehensive income
Investments in associates
Property, equipment and software
Goodwill and intangible assets
Deferred tax assets
9
Other non-financial assets
Total assets
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
Total financial liabilities measured at amortized cost
Financial liabilities at fair value held for trading
Derivative financial instruments
10
Brokerage payables designated at fair value
Debt issued designated at fair value
Other financial liabilities designated at fair value
Total financial liabilities measured at fair value through
profit or loss
Provisions and contingent liabilities
Other non-financial liabilities
Total liabilities
1 Includes non-counterparty -related risk, equity investments in funds and equity positions in the banking book which are excluded from the CR1, CR2, CR3 and CRB credit risk tables in section 5 of this report.
2 Includes settlement risk, which is not included in section 5 of this report. 3 This column only consists of securitization positions in the banking book. Trading book securitizations are included in the “Subject to
market risk framework” column. 4 Consists of margin loans, which are subject to counterparty credit risk. 5 Consists of default fund contributions and assets pledged as collateral, which are both subject to
counterparty credit risk. 6 Includes trading portfolio assets in the banking book and traded loans. 7 Funded collar trades without rehypothecation rights are treated as non-credit-bearing exposures and are excluded
from the “Subject to credit risk framework” column. 8 Includes securities financing transactions (SFTs), as well as other exposures subject to the counterparty credit risk framework. 9 Net of deferred tax liabilities,
which are offset against prudential filters (e.g. goodwill and intangibles, as well as cash flow hedges) in the regulatory capital calculation. 10 Relates to the carrying values of derivative loan commitments and
forward starting SFTs that are measured at fair value. The replacement values on these products represent a small fraction of the commitment amounts considered for RWA calculations.
31 December 2025 Pillar 3 Report |
UBS Group | Linkage between financial statements and regulatory exposures 25
Regulatory exposures
Annual |
The LI2 table below illustrates the key differences between regulatory exposure amounts and accounting carrying
amounts under the regulatory scope of consolidation. In addition to the accounting carrying amounts, the regulatory
exposure amounts include:
–
off-balance sheet amounts not related to derivatives and securities financing transactions (row 4);
–
potential future exposure for derivatives, offset by eligible financial collateral deductions (row 6);
–
effects from the model calculation of effective expected positive exposure applied to derivatives (row 6);
–
any collateral mitigation through the application of the close-out period approach or the comprehensive measurement
approach (row 7); and
–
effects of collateral mitigation in the banking book (row 8).
The regulatory exposure amount excludes prudential filters (row 5), consisting of items subject to deduction from capital,
which are not risk weighted.
LI2: Main sources of differences between regulatory exposure amounts and carrying values in financial statements
(under the regulatory scope of consolidation)
31.12.25
Total
Items subject to:
USD m
Credit risk
framework
Counterparty
credit risk
framework
Securitization
framework
Market risk
framework
1
Asset carrying value amount under scope of regulatory consolidation (as per template LI1)
2
Liabilities carrying value amount under scope of regulatory consolidation
3
Total net amount under regulatory scope of consolidation
4
Off-balance sheet amounts (post-CCF; e.g. guarantees, commitments)
5
Differences due to prudential filters
6
Derivatives: PFE and collateral mitigation (including off-balance sheet exposures)
7
SFTs: Collateral mitigation (including off-balance sheet exposures)
8
Other differences including collateral mitigation in the banking book
1
9
Exposure amounts considered for regulatory purposes
2
3
1 Mainly includes exposures subject to more than one risk framework in the LI1 table and net balances under market risk framewo rk. 2 Counterparty credit risk exposures include client-cleared exposures, whereas
such agency exposures are not reported in the financial statements. 3 Exposure amounts considered for regulatory purposes are generally not applicable under the market risk framework, with the exception of
securitization exposures in the trading book.
Credit risk
Introduction
Semi-annual |
The parameters applied under the internal ratings-based (IRB) approach are generally based on the same
methodologies, data and systems we use for internal credit risk quantification, except where certain treatments are
specified by regulatory requirements. These include, for example, the application of regulatory prescribed floors and
multipliers, and differences with respect to eligibility criteria and exposure definitions. The exposure information presented
in this section may thus differ from our internal management view disclosed in the “Risk management and control”
sections of the quarterly and annual reports. Similarly, the regulatory capital prescribed measure of credit risk exposure
also differs from how it is defined under IFRS Accounting Standards.
Credit risk exposure categories
The definitions of the Pillar 3 credit risk exposure categories “Loans” and “Debt securities” below as specified by the
Swiss Financial Market Supervisory Authority (FINMA), which are referred to in the “CR1: Credit quality of assets” and
“CR3: Credit risk mitigation techniques – overview” tables in this section, provide a link to the IFRS Accounting Standards
balance sheet structure.
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 26
The Pillar 3 category “Loans” consists of financial instruments held with the intent to collect their contractual payments
and includes the following IFRS Accounting Standards balances to the extent that they are subject to the credit risk
framework:
–
Cash and balances at central banks
;
–
Amounts due from banks
;
–
Loans and advances to customers
;
–
Other financial assets measured at amortized cost
, excluding money market instruments, checks and bills, and other
debt instruments;
–
traded loans in the banking book that are included within
Financial assets at fair value held for trading
;
–
Brokerage receivables
;
–
loans including structured loans that are included within
Financial assets at fair value not held for trading
;
and
–
Other non-financial assets
.
The Pillar 3 category “Debt securities” includes the following IFRS Accounting Standards balances to the extent that they
are subject to the credit risk framework:
–
money market instruments, checks and bills, and other debt instruments that are included within
Other financial assets
measured at amortized cost
;
–
Financial assets at fair value held for trading
, excluding traded loans;
–
Financial assets at fair value not held for trading
, excluding loans; and
–
Financial assets measured at fair value through other comprehensive income
.
General information about credit risk
Annual |
The table below presents an overview of Pillar 3 disclosures that are provided separately in the UBS Group Annual
Report 2025, available under “Annual reporting” at
ubs.com/investors
.
CRA: General qualitative information about credit risk
Pillar 3 disclosure requirement
UBS Group Annual Report 2025 section
Disclosure
UBS Group Annual
Report 2025 page
number
Translation of the business model
into the components of the bank’s
credit risk profile
Risk management and control
–
Risk identification
–
Risk categories
–
Key risks by business division and Group functions
–
Main sources of credit risk
–
Credit risk profile of the Group
89
90–91
92
99
99
Consolidated financial statements
–
Note 19 d) Maximum exposure to credit risk
309–310
Criteria and approach used for
defining credit risk management
policy and for setting credit risk
limits
Risk management and control
–
Risk governance
–
Risk appetite framework
–
Risk measurement
–
Credit risk
–
management techniques
92–94
94–96
96–98
99
Structure and organization of the
credit risk management and control
function
Risk management and control
–
Risk governance
92–94
Interaction between the credit risk
management, risk control,
compliance, and internal audit
functions
Risk management and control
–
Risk governance
–
Risk appetite framework
92–94
94–96
Scope and content of the reporting
on credit risk exposure to executive
management and to the Board of
Directors
Risk management and control
–
Risk governance
–
Internal risk reporting
–
Risk appetite framework
–
Credit risk profile of the Group
92–94
94
94–96
99
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 27
Credit quality of assets
Semi-annual |
The CR1 table below provides a breakdown of defaulted and non-defaulted loans, debt securities and off-
balance sheet exposures. The table also includes a breakdown of expected credit loss (ECL) accounting provisions on
exposures subject to the standardized approach and the IRB approach.
Compared with 30 June 2025, the net carrying amount of loans decreased by USD 17.9bn to USD 896.2bn, primarily
driven by a decrease in cash and balances at central banks, partly offset by an increase in lending assets mainly in Global
Wealth Management and the Investment Bank.
The net carrying amount of debt securities increased by USD 6.8bn to USD 122.5bn, primarily driven by purchases of
high-quality liquid asset (HQLA) portfolio securities.
The net carrying amount of off-balance sheet exposures increased by USD 4.2bn to USD 101.1bn, mainly driven by an
increase in loan commitments.
›
Refer to the “CR3: Credit risk mitigation techniques – overview” table in this section for more information about the net value
movements related to Loans and Debt securities shown in the table below
›
Refer to “Credit risk” in the “Risk management and control” section of the UBS Group Annual Report 2025, available under
”Annual reporting” at
ubs.com/investors
, for more information about the definitions of default and credit impairment and to
“Credit risk exposure categories” in this section for more information about the classification of Loans and Debt securities
CR1: Credit quality of assets
Gross carrying amounts of:
Allowances /
impairments
2
Of which: ECL accounting provisions
for credit losses on SA exposures
Of which: ECL
accounting
provisions for
credit losses on
IRB exposures
Net values
USD m
Defaulted
exposures
1
Non-defaulted
exposures
Allocated in
regulatory
category of
Specific
3
Allocated in
regulatory
category of
General
3
31.12.25
1
Loans
4
2
Debt securities
3
Off-balance sheet exposures
5
4
Total
30.6.25
1
Loans
4
2
Debt securities
3
Off-balance sheet exposures
5
4
Total
31.12.24
1
Loans
4
2
Debt securities
3
Off-balance sheet exposures
5
4
Total
1 Defaulted exposures include stage 3 and defaulted purchased credit-impaired (PCI) assets under IFRS 9. Refer to “Note 9 Financial assets at amortized cost and other positions in scope of expected credit loss
measurement” in the “Consolidated financial statements” section of the UBS Group Annual Report 2025, available under "Annual reporting" at ubs.com/investors, for more information about IFRS 9. 2 Expected
credit loss (ECL) allowances and provisions amounted to USD 3,058m as of 31 December 2025, as disclosed in “Note 9 Financial assets at amortized cost and other positions in scope of expected credit loss
measurement” in the “Consolidated financial statements” section of the UBS Group Annual Report 2025, available under "Annual reporting" at ubs.com/investors. This Pillar 3 table excludes ECL toward securitization
exposures, revocable off-balance sheet exposures, ECL on irrevocable committed prolongation of loans that do not give rise to additional credit exposures and exposures subject to counterparty credit risk. 3 Specific
provisions include stage 3 ECL allowances and additional ECL allowances on defaulted PCI assets. General provisions include stage 1 and 2 ECL allowances and additional ECL allowances on non-defaulted PCI assets.
4 Loan exposure is reported in line with the Pillar 3 definition. Refer to “Credit risk exposure categories” in this section for more information about the classification of Loans and Debt securities. 5 Off-balance sheet
exposures include unutilized credit facilities, guarantees provided and forward starting loan commitments but exclude prolongations of loans that do not increase the initially committed loan amount. Unutilized credit
facilities exclude unconditionally revocable and uncommitted credit facilities, even if they attract RWA.
Semi-annual |
The CR2 table below presents changes in stock of defaulted loans, debt securities and off-balance sheet
exposures for the second half of 2025. The total amount of defaulted loans and debt securities increased by USD 0.7bn
to USD 7.5bn compared with 30 June 2025.
CR2: Changes in stock of defaulted loans, debt securities and off-balance sheet exposures
USD m
For the half year
ended 31.12.25
1
For the half year
ended 30.6.25
1
1
Defaulted loans, debt securities and off-balance sheet exposures as of the beginning of the half year
2
Loans, debt securities and off-balance sheet exposures that have defaulted since the last reporting period
3
Returned to non-defaulted status
4
Amounts written off
5
Other changes
2
6
Defaulted loans, debt securities and off-balance sheet exposures as of the end of the half year
1 Off-balance sheet exposures include unutilized credit facilities, guarantees provided and forward starting loan commitments but exclude prolongations of loans that do not increase the initially committed loan
amount. Unutilized credit facilities exclude unconditionally revocable and uncommitted credit facilities, even if they attract RWA. 2 Includes primarily partial or full repayments, as well as currency effects.
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 28
Credit risk exposures
Amounts shown in the following tables relate to on-balance sheet IFRS Accounting Standards carrying amounts, as well as off-balance sheet items according to the regulatory
scope of consolidation that give rise to credit risk exposure under the Basel III framework.
Compared with 31 December 2024, credit risk exposure increased by USD 104.3bn to USD 1,119.8bn, mainly reflecting the weakening of the US dollar against other major
currencies and increases in HQLA portfolio securities, net new loans and loan commitments.
›
Refer to “Credit risk” in the “Risk management and control” section of the UBS Group Annual Report 2025, available under ”Annual reporting” at
ubs.com/investors
, for more information
Annual |
CRB: Breakdown of exposures by industry
1
USD m
Central
banks
Banks
Construc-
tion
Electricity,
gas, water
supply
Financial
services
Hotels and
restaurants
Manufac-
turing
2
Mining
Private
households
Public
authorities
Real estate
and rentals
Retail and
wholesale
3
Services
Other
4
Total carrying
amount
31.12.25
Loans
5
Debt securities
Off-balance sheet exposures
6
Total
31.12.24
Loans
5
Debt securities
Off-balance sheet exposures
6
Total
1 The classification of each industry is based on the Global Industry Classification Standard (GICS). 2 Includes the chemicals industry. 3 Includes the food and beverages industry. 4 Consists of transport, storage, communications and other. 5 Loan exposure is reported in line with the Pillar 3 definition. Refer to
“Credit risk exposure categories” in this section for more information about the classification of Loans and Debt securities. 6 Off-balance sheet exposures include unutilized credit facilities, guarantees provided and forward starting loan commitments but exclude prolongations of loans that do not increase the initially
committed loan amount. Unutilized credit facilities exclude unconditionally revocable and uncommitted credit facilities, even if they attract RWA.
Annual |
The table below provides a breakdown of our credit risk exposures by geographical area. The geographical distribution is based on the legal domicile of the counterparty or
issuer.
CRB: Breakdown of exposures by geographical area
USD m
Switzerland
Americas
Asia Pacific
EMEA
Total carrying amount
31.12.25
Loans
1
Debt securities
Off-balance sheet exposures
2
Total
31.12.24
Loans
1
Debt securities
Off-balance sheet exposures
2
Total
1 Loan exposure is reported in line with the Pillar 3 definition. Refer to “Credit risk exposure categories” in this section for more information about the classification of Loans and Debt securities. 2 Off-balance sheet exposures include unutilized credit facilities, guarantees provided and forward starting loan commitments
but exclude prolongations of loans that do not increase the initially committed loan amount. Unutilized credit facilities exclude unconditionally revocable and uncommitted credit facilities, even if they attract RWA.
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 29
Annual |
The table below provides a breakdown of our credit risk exposure by residual contractual maturity as of the
reporting date. The residual contractual maturity of assets includes the effect of callable features.
CRB: Breakdown of exposures by residual maturity
USD m
Due in
1 year or less
Due between
1 year and 5 years
Due over
5 years
Total carrying
amount
31.12.25
Loans
1
Debt securities
Off-balance sheet exposures
2
Total
31.12.24
Loans
1
Debt securities
Off-balance sheet exposures
2
Total
1 Loan exposure is reported in line with the Pillar 3 definition. Refer to “Credit risk exposure categories” in this section for more information about the classification of Loans and Debt securities. 2 Off-balance sheet
exposures include unutilized credit facilities, guarantees provided and forward starting loan commitments but exclude prolongations of loans that do not increase the initially committed loan amount. Unutilized credit
facilities exclude unconditionally revocable and uncommitted credit facilities, even if they attract RWA.
Past due, non-performing and credit-impaired exposures
Annual |
The table below refers to information about credit policies for distressed assets that is provided separately in the
UBS Group Annual Report 2025, available under “Annual reporting” at
ubs.com/investors
.
CRB: Policies for past due, non-performing and credit-impaired claims
Pillar 3 disclosure requirement
UBS Group Annual Report 2025 section
Disclosure
UBS Group Annual
Report 2025 page
number
Policies for past due, non-perfor-
ming and credit-impaired claims
Risk management and control
–
Credit risk: Non-performing
–
Credit risk: Default and credit-impaired
109
109–110
Annual |
The table below provides a breakdown of our credit-impaired exposures by industry. The amounts shown are IFRS
Accounting Standards carrying amounts.
CRB: Credit-impaired exposures by industry
1
USD m
Credit-impaired exposures,
gross
Allowances and
provisions for credit-
impaired exposures
Credit-impaired
exposures net of
allowances and
provisions
Write-offs for the
year ended
31.12.25
Central banks
Banks
Construction
Electricity, gas, water supply
Financial services
Hotels and restaurants
Manufacturing
2
Mining
Private households
Public authorities
Real estate and rentals
Retail and wholesale
3
Services
Other
4
Total
31.12.24
Central Banks
Banks
Construction
Electricity, gas, water supply
Financial services
Hotels and restaurants
Manufacturing
2
Mining
Private households
Public authorities
Real estate and rentals
Retail and wholesale
3
Services
Other
4
Total
1 The classification of each industry is based on the Global Industry Classification (GIC) standard. 2 Includes the chemicals industry. 3 Includes the food and beverages industry. 4 Consists of transport, storage,
communications and other.
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 30
Annual |
The table below provides a breakdown of our credit-impaired exposures by geographical area. The amounts shown
are IFRS Accounting Standards carrying amounts. The geographical distribution is based on the legal domicile of the
counterparty or issuer.
CRB: Credit-impaired exposures by geographical area
USD m
Credit-impaired exposures,
gross
Allowances and provisions for
credit-impaired exposures
Credit-impaired exposures net
of allowances and provisions
Write-offs for the year ended
31.12.25
Switzerland
Americas
Asia Pacific
EMEA
Total
31.12.24
Switzerland
Americas
Asia Pacific
EMEA
Total
Annual |
The table below provides a breakdown of total loan balances where payments have been missed. The past due
amounts increased to USD 3.0bn, compared with USD 2.2bn in 2024, primarily driven by migration of positions from
legacy Credit Suisse.
CRB: Past due exposures
USD m
31.12.25
31.12.24
1
1–30 days
31–60 days
61–90 days
>90 days
Total
1 For legacy Credit Suisse components excluding stage 3 exposures.
Restructured exposures
Annual |
The table below refers to additional information about restructured exposures that is provided separately in the
UBS Group Annual Report 2025, available under “Annual reporting” at
ubs.com/investors
.
CRB: Definition of restructured exposures
Pillar 3 disclosure requirement
UBS Group Annual Report 2025 section
Disclosure
UBS Group Annual
Report 2025 page
number
Definition of restructured exposures
Risk management and control
–
Credit risk: Forbearance (credit restructuring)
110
Annual |
The table below provides a breakdown of our restructured exposures between credit-impaired and non-credit-
impaired as of 31 December 2025.
The exposures decreased to USD 2.7bn, compared with USD 3.0bn in 2024.
CRB: Breakdown of restructured exposures between credit-impaired and non-credit -impaired
Credit-impaired
Non-credit-impaired
Total
USD m
31.12.25
31.12.24
31.12.25
31.12.24
31.12.25
31.12.24
Restructured exposures
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 31
Credit risk mitigation
Annual |
The table below presents an overview of Pillar 3 disclosures that are provided separately in the UBS Group Annual
Report 2025, available under “Annual reporting” at
ubs.com/investors
.
CRC: Qualitative disclosure requirements related to credit risk mitigation techniques
Pillar 3 disclosure requirement
UBS Group Annual Report 2025 section
Disclosure
UBS Group Annual
Report 2025 page
number
Core features of policies and
processes for, and an indication of
the extent to which the bank makes
use of, on- and off-balance sheet
netting
Risk management and control
–
Traded products
103–104
Consolidated financial statements
–
Note 1 a) item 2) i. Offsetting
–
Note 10 Derivative instruments
–
Note 21 Offsetting financial assets and financial liabilities
271
289–290
330–331
Core features of policies and
processes for collateral evaluation
and management
Risk management and control
–
Credit risk mitigation
104–106
Information about market or credit
risk concentrations under the credit
risk mitigation instruments used
Risk management and control
–
Risk concentrations
–
Credit risk mitigation
98
104–106
Consolidated financial statements
–
Note 10 Derivative instruments
–
Note 19 d) Maximum exposure to credit risk
–
Note 20 h) Maximum exposure to credit risk for financial
instruments measured at fair value
–
Note 21 Offsetting financial assets and financial liabilities
289–290
309–310
328
330–331
Additional information about counterparty credit risk mitigation (CRM) is provided in the “Counterparty credit risk”
section of this report.
Semi-annual |
The CR3 table below provides a breakdown of loans and debt securities into unsecured and partially or fully
secured exposures, with additional information about the security type.
Compared with 30 June 2025, the carrying amount of unsecured loans decreased by USD 32.1bn to USD 271.8bn,
primarily driven by decreases in cash and balances at central banks and loans in Personal & Corporate Banking.
The carrying amount of partially or fully secured loans increased by USD 14.2bn to USD 624.5bn, mainly due to an
increase in lending assets in Global Wealth Management.
The carrying amount of unsecured debt securities increased by USD 7.1bn to USD 121.9bn, primarily driven by increases
in HQLA portfolio securities.
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 32
CR3: Credit risk mitigation techniques – overview
1
Secured portion of exposures partially or fully secured:
USD m
Exposures fully
unsecured: carrying
amount
Exposures partially
or fully secured:
carrying amount
Total: carrying
amount
Exposures secured
by collateral
Exposures secured
by financial
guarantees
Exposures secured
by credit derivatives
31.12.25
1
Loans
2
1a
of which: cash and balances at central
banks
2
Debt securities
3
Total
3
4
of which: defaulted
4
30.6.25
1
Loans
2
1a
of which: cash and balances at central
banks
2
Debt securities
3
Total
3
4
of which: defaulted
4
31.12.24
1
Loans
2
1a
of which: cash and balances at central
banks
2
Debt securities
3
Total
4
of which: defaulted
4
1 Exposures in this table represent carrying amounts in accordance with the regulatory scope of consolidation. 2 Loan exposure is reported in line with the Pillar 3 definition. Refer to “Credit risk exposure categories”
in this section for more information about the classification of Loans and Debt securities. 3 Eligible financial collateral under the IRB approach is recognized in the LGD parameter. The exposure secured by collateral
for IRB represents the collateral amounts received prior to any haircuts but subject to the maximum of the exposure carrying value. 4 Includes purchased credit-impaired assets when subject to default.
Credit risk under the standardized approach
Introduction
Annual |
The standardized approach is generally applied where using the IRB approach is not feasible. Under the standardized
approach we use, where possible, credit ratings from external credit assessment institutions (ECAIs) to determine the risk
weightings applied to rated counterparties. We use three FINMA-recognized ECAIs to determine the risk weights for
certain counterparties according to the FINMA-defined asset classes: S&P, Moody’s Investors Service and Fitch Ratings.
The mapping of external ratings to the standardized approach risk weights is determined by FINMA and published on its
website. There were no changes in the ECAIs used compared with 31 December 2024.
Debt instruments are risk weighted in accordance with the specific issue ratings available. If there is no specific issue
rating published by an ECAI, the issuer rating is applied to the senior unsecured claims of that issuer subject to the
conditions prescribed by FINMA. For the Retail, Equity and Other assets asset classes, we apply the regulatory prescribed
risk weights independent of an external credit rating.
CRD: Qualitative disclosures on banks’ use of external credit ratings under the standardized approach for credit risk
31.12.25
External ratings used
Asset classes
Moody’s
S&P
Fitch
1
Central governments, central banks and supranational organizations
l
l
l
2
Banks
l
l
l
3
Public-sector entities
l
l
l
4
Multilateral development banks
l
l
l
5
Corporates
l
l
l
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 33
Credit risk exposure and CRM effects
Semi-annual |
The CR4 table below illustrates the credit risk exposure and effect of CRM on the calculation of capital
requirements under the standardized approach.
With the adoption of the final Basel III standards on 1 January 2025, including the FINMA Ordinance on the Disclosure
Obligations of Banks and Securities Firms (the DisO-FINMA), new standardized asset classes have been introduced.
Consequently, this semi-annually disclosed table is limited to the 2025 reporting period.
›
Refer to “Amended FINMA-defined asset classes” in the “Introduction and basis for preparation” section of the 30 June 2025
Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about the amended definition of
asset classes as a result of the implementation of the final Basel III standards in Switzerland
›
Refer to the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for information about
previously published CR4 disclosures
As of 31 December 2025, the asset class with the largest exposure, after applying credit conversion factors (CCF) and
CRM, was the Corporates asset class, mainly through loans and loan commitments within Global Wealth Management
and Personal & Corporate Banking, as well as debt securities managed by Group Treasury. Additionally, there are
significant exposures in the Central governments, central banks and supranational organizations asset class, primarily
consisting of cash and balances at central banks. Exposures to the Banks and Public sector entities asset classes largely
consist of holdings of debt securities. Exposures in Other assets primarily include non-counterparty-related items,
including property, equipment, and software.
Compared with 30 June 2025, on-balance sheet exposures before CCF and CRM decreased by USD 7.9bn, and on-
balance sheet exposures post-CCF and post-CRM decreased by USD 7.1bn. In addition, RWA increased by USD 0.8bn to
USD 62.0bn.
On-balance sheet exposures before CCF and CRM in the Central governments, central banks and supranational
organizations asset class decreased by USD 5.2bn to USD 19.7bn. On-balance sheet exposures post-CCF and post-CRM
decreased by USD 4.9bn to USD 20.0bn, mainly due to a decrease in cash and balances at central banks. The increase in
RWA of USD 0.6bn for this asset class was primarily due to methodology changes following the migration of exposures
from Credit Suisse models.
On-balance sheet exposures post-CCF and post-CRM in the Public sector entities asset class decreased by USD 3.1bn to
USD 9.0bn, mainly driven by decreases in HQLA.
RWA in the Subordinated debt, equity exposures and other capital instruments asset class increased by USD 0.9bn to
USD 4.8bn, primarily due to an increase in equity holdings in Global Wealth Management.
On-balance sheet exposures before CCF and CRM in the Retail asset class increased by USD 1.1bn to USD 6.1bn, and
RWA increased by USD 0.8bn to USD 6.3bn. On-balance sheet exposures before CCF and CRM in the Real estate asset
class increased by USD 1.3bn to USD 7.7bn, and RWA increased by USD 0.6bn to USD 2.8bn. These increases across the
Retail and Real estate asset classes were primarily due to methodology changes following the migration of exposures
from Credit Suisse models to the standardized approach. This resulted in an increase in exposures reported in the CR4
and CR5 tables below and a corresponding reduction in exposures reported in the CR6 table in this section.
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 34
CR4: Standardized approach – credit risk exposure and credit risk mitigation (CRM) effects
Exposures
before CCF and CRM
Exposures
post-CCF and post-CRM
RWA and RWA density
USD m, except where indicated
On-balance
sheet
amount
Off-balance
sheet
amount
Total
On-balance
sheet
amount
Off-balance
sheet
amount
Total
RWA
RWA density
in %
31.12.25
Asset classes
1
Central governments, central banks and supranational
organizations
2
Public sector entities
3
Multilateral development banks
4
Banks
4a
of which: Swiss account-holding securities firms and other
non-bank financial institutions subject to equivalent
prudential standards and supervision
5
Covered bonds
1
5a
of which: Swiss covered bonds
6
Corporates
6a
of which: Swiss non-account-holding securities firms and
other financial institutions not subject to equivalent
prudential standards and supervision
6b
of which: specialized lending
7
Subordinated debt, equity exposures and other capital
instruments
8
Retail
9
Real estate
9a
of which: own-used RRE
9b
of which: IPRRE
9c
of which: own-used CRE
9d
of which: IPCRE
9e
of which: land acquisition, development and construction
10
Defaulted exposures
11
Other assets
12
Total
30.6.25
Asset classes
1
Central governments, central banks and supranational
organizations
2
Public sector entities
3
Multilateral development banks
4
Banks
4a
of which: Swiss account-holding securities firms and other
non-bank financial institutions subject to equivalent
prudential standards and supervision
5
Covered bonds
1
5a
of which: Swiss covered bonds
6
Corporates
6a
of which: Swiss non-account-holding securities firms and
other financial institutions not subject to equivalent
prudential standards and supervision
6b
of which: specialized lending
7
Subordinated debt, equity exposures and other capital
instruments
8
Retail
9
Real estate
9a
of which: own-used RRE
9b
of which: IPRRE
9c
of which: own-used CRE
9d
of which: IPCRE
9e
of which: land acquisition, development and construction
10
Defaulted exposures
11
Other assets
12
Total
1 Covered bond exposures reported under the preferential risk weight treatment relate exclusively to Swiss covered bonds issued under the Swiss covered bonds regulation (Pfandbriefgesetz). All other covered bonds
are presented in the asset classes based on the issuer counterparty.
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 35
Exposures by asset classes and risk weights
Semi-annual |
weights changed with the adoption of the final Basel III standards on 1 January 2025. Consequently, this semi-annually disclosed table is limited to the 2025 reporting period. The
credit risk exposures in the CR5 table are post-CCF and post-CRM credit risk exposures.
›
Refer to “Amended FINMA-defined asset classes” in the “Introduction and basis for preparation” section of the 30 June 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about the amended definition of asset classes as a result of the implementation of the final Basel III standards in Switzerland
›
Refer to the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for information about previously published CR5 disclosures
CR5: Standardized approach – exposures by asset classes and risk weights – excluding Real estate
USD m
Risk weight
0%
10%
15%
20%
25%
30%
35%
40%
45%
50%
65%
75%
80%
85%
100%
130%
150%
250%
400%
1,250%
Other
Total
credit
exposures
amount
31.12.25
Asset class
1
Central governments, central banks
and supranational organizations
2
Public sector entities
3
Multilateral development banks
4
Banks
4a
of which: Swiss account-holding
securities firms and other non-bank
financial institutions subject to
equivalent prudential standards and
supervision
5
Covered bonds
5a
of which: Swiss Covered Bonds
6
Corporates
6a
of which: Swiss non-account-
holding securities firms and other
financial institutions not subject to
equivalent prudential standards and
supervision
6b
of which: specialized lending
7
Subordinated debt, equity exposures
and other capital instruments
8
Retail
10
Defaulted exposures
11
Other assets
12
Total
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 36
CR5: Standardized approach – exposures by asset classes and risk weights – Real estate (continued)
USD m
Risk weight
0%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
85%
90%
100%
105%
110%
115%
150%
Other
Total
credit
exposures
amount
31.12.25
Asset class
9
Real estate
9a
of which: own-used RRE
9b
of which: IPRRE
9c
of which: own-used CRE
9d
of which: IPCRE
9e
of which: land acquisition,
development and construction
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 37
CR5: Standardized approach – exposures by asset classes and risk weights – excluding Real estate (continued)
USD m
Risk weight
0%
10%
15%
20%
25%
30%
35%
40%
45%
50%
65%
75%
80%
85%
100%
130%
150%
250%
400%
1,250%
Other
Total
credit
exposures
amount
30.6.25
Asset class
1
Central governments, central banks
and supranational organizations
2
Public sector entities
3
Multilateral development banks
4
Banks
4a
of which: Swiss account-holding
securities firms and other non-bank
financial institutions subject to
equivalent prudential standards and
supervision
5
Covered bonds
5a
of which: Swiss Covered Bonds
6
Corporates
6a
of which: Swiss non-account-
holding securities firms and other
financial institutions not subject to
equivalent prudential standards and
supervision
6b
of which: specialized lending
7
Subordinated debt, equity exposures
and other capital instruments
8
Retail
10
Defaulted exposures
11
Other assets
12
Total
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 38
CR5: Standardized approach – exposures by asset classes and risk weights – Real estate (continued)
USD m
Risk weight
0%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
85%
90%
100%
105%
110%
115%
150%
Other
Total
credit
exposures
amount
30.6.25
Asset class
9
Real estate
9a
of which: own-used RRE
9b
of which: IPRRE
9c
of which: own-used CRE
9d
of which: IPCRE
9e
of which: land acquisition,
development and construction
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 39
Semi-annual |
buckets, including what average CCFs are applied to off-balance sheet exposures.
CR5: Exposure amounts and CCFs applied to off-balance sheet exposures, categorised based on risk bucket of
converted exposures
USD m, except where indicated
On-balance sheet
exposure (pre-CRM)
Off-balance sheet
exposure (pre-CCF and
pre-CRM)
Weighted average CCF
in %
Exposure (post-CCF and
post-CRM)
31.12.25
Risk weight
1
Less than 40%
2
40-70%
3
75%
4
85%
5
90-100%
6
105-130%
7
150%
8
250%
9
400%
10
1,250%
11
Total
30.6.25
Risk weight
1
Less than 40%
2
40-70%
3
75%
4
85%
5
90-100%
6
105-130%
7
150%
8
250%
9
400%
10
1,250%
11
Total
Credit risk under the IRB approach
Introduction
Annual |
2025 onward, the foundation IRB (F-IRB) approach for exposures to banks, public sector entities and multilateral
development banks, and large corporate clients. Under the A-IRB approach the required capital for credit risk is quantified
through empirical models that we have developed to estimate the probability of default (PD), loss given default (LGD),
exposure at default (EAD) and other parameters, subject to FINMA approval. Under the F-IRB approach banks are
permitted to use their own internal estimates for the PD.
The table below shows the main features of our key credit risk models, including numbers of key models used by portfolio
and the main differences between models, as well as the description of the main characteristics of approved models.
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 40
CRE: Qualitative disclosure related to IRB-models – Main features of our key credit risk models
1
Portfolio in scope
Major asset classes
Model
approach
Number of key
models
Main drivers
Number of
years of loss
data
Probability of
default
Sovereigns and central banks
Central governments,
central banks and
supranational organizations
– A-IRB; Public sector
entities, multilateral
development banks – F-IRB
Scorecard
1
Political, institutional and economic indicators including
qualitative factors
>15
Banks and other financial
institutions
Banks – F-IRB; Corporates:
other lending – F-IRB
Scorecard
3
Financial data including balance sheet ratios, profit and
loss data and qualitative factors
>15
Funds
Corporates: other lending –
F-IRB
Scorecard
3
Financial data and ratios constructed from it (such as net
asset value, volatility of returns), qualitative factors
>15
Large corporates and
internationals
Corporates: other lending –
F-IRB; Corporates: other
lending – A-IRB
Scorecard,
market data
2
Financial data including balance sheet ratios and profit
and loss, market data
>15
Enterprises in Switzerland
Corporates: other lending –
A-IRB; Retail: other retail –
A-IRB
Scorecard
1
Financial data including balance sheet ratios and profit
and loss, behavioral data
>25
Commodity traders
Corporates: specialized
lending – A-IRB
Scorecard
1
Financial data including balance sheet ratios and profit
and loss, as well as non-financial criteria
>25
Ship finance
Corporates: specialized
lending – A-IRB
Scorecard
1
Freight rates, ship market values, operational expenses
and group information
>15
Owner-occupied mortgages in
Switzerland
Retail: exposure secured by
real estate – A-IRB
Scorecard
1
Behavioral data, affordability relative to income, property
type, loan-to-value
>25
Income producing real estate
mortgages in Switzerland
Retail: exposure secured by
real estate – A-IRB;
Corporates: specialized
lending – A-IRB
Scorecard
1
Loan-to-value, debt-service-coverage, behavioral data,
financial data (for large corporates only)
>25
Owner-occupied mortgages in the
US, and other wealth-
management financing
Retail: exposure secured by
real estate – A-IRB;
Corporates: specialized
lending – A-IRB;
Scorecard
2
Behavioral data, affordability relative to income, property
type, loan-to-value, assets and qualitative factors
>15
Commercial real estate in the US
Corporates: specialized
lending – A-IRB
Scorecard
1
Financial data and ratios constructed from it, qualitative
characteristics
>10
Lombard lending and
concentrated equity-based
lending
Retail: other retail – A-IRB;
Corporates: other lending –
A-IRB
Simulation
approach based
on historical
returns
3
Lending value ratio, collateral asset class, historical asset
returns, counterparty factors
>15
Credit cards, consumer loans and
leases in Switzerland
Retail: qualifying revolving
retail exposures (QRRE) –
A-IRB; Retail: other retail –
A-IRB
Scorecard
2
Client type and characteristics and behavioral data
>10
Other portfolios
Central governments,
central banks and
supranational organizations
– A-IRB; Public sector
entities, multilateral
development banks – F-IRB
Scorecard,
pooled rating
approach,
rating template
3
Financial data including balance sheet ratios and profit
and loss, qualitative factors and reference data. Separate
models for Public sector entities, Public sector
institutions, and Supranationals.
>25
Loss given default
2
Large corporates, internationals,
financial institutions, and
sovereigns
Corporates: other lending –
A-IRB; Central
governments, central banks
and supranational
organizations – A-IRB
Statistical
model
3
Counterparty and facility specific, including industry
segment, region, collateral, seniority, legal environment,
bankruptcy procedures and macro-economic factors
>15
Swiss corporate and mortgage
lending portfolios
Corporates: other lending –
A-IRB; Corporates:
specialized lending – A-
IRB; Retail: exposure
secured by real estate – A-
IRB; Retail: other retail – A-
IRB
Statistical
model
2
Collateral type and client segment, loan-to-value, time
since last valuation, location indicator
>15
Commodity traders
Corporates: specialized
lending – A-IRB
Statistical
model
1
Collateral type, loan-to-value
>25
Ship finance
Corporates: specialized
lending – A-IRB
Statistical
model
1
Loan-to-value of ship and financial collaterals
>15
Owner-occupied mortgages in the
US, and other wealth-
management financing
Retail: exposure secured by
real estate – A-IRB;
Corporates: specialized
lending – A-IRB
Statistical
model
2
Loan-to-value, market value shock
>15
Commercial real estate in the US
Corporates: specialized
lending – A-IRB
Statistical
model
1
Loan-to-value, debt-service-coverage, occupancy,
property type and region
>10
Lombard lending and
concentrated equity-based
lending
Retail: other retail – A-IRB;
Corporates: other lending –
A-IRB
Simulation
approach based
on historical
returns
3
Loan-to-value, collateral asset class and liquidity,
historical asset returns, counterparty factors
>15
Credit cards, consumer loans and
leases in Switzerland
Retail: qualifying revolving
retail exposures (QRRE) –
A-IRB; Retail: other retail –
A-IRB
Statistical
model
2
Collateral, accrued interests, client & product
characteristics, changes in original payment plan
>10
Exposure at default
2
Banking products
Across the A-IRB asset
classes
Statistical
model
3
Facility type, commitment type, client segment, drawn
amount, undrawn amount, and limit amount
>15
Traded products
Across the A-IRB and F-IRB
asset classes
Statistical
model
2
Product specific market drivers, e.g. interest rates.
Separate models for OTC/ETD and SFT that generate the
simulation of risk factors used for the credit exposure
measure.
n/a
1 Table captures the model landscape of UBS Group AG, excluding non-key models that are applied to certain remaining exposure in legacy Credit Suisse infrastructure. 2 LGD models and EAD models relating to
banking products apply only to A-IRB portion of portfolios. For portfolios under F-IRB asset classes, supervisory LGDs and CCFs are applied in line with regulation.
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 41
The table below presents an overview of additional Pillar 3 disclosures that are provided separately in the UBS Group
Annual Report 2025, available under “Annual reporting” at
ubs.com/investors
.
CRE: Additional qualitative disclosures related to IRB models
Pillar 3 disclosure requirement
UBS Group Annual Report 2025 section
Disclosure
UBS Group Annual
Report 2025 page
number
Internal model development,
controls and changes
Risk management and control
–
Risk governance
–
Risk measurement
–
Credit risk models
–
Model risk
92–94
96–98
106–109
130
Relationships between risk
management and internal audit and
independent review of IRB models
Risk management and control
–
Risk governance
–
Risk measurement
–
Model risk
92–94
96–98
130
Scope and content of the reporting
related to credit risk models
Risk management and control
–
Risk measurement
–
Credit risk
–
management techniques
–
Credit risk models
–
Model risk
96–98
99
106–109
130
Supervisor approval of applied
approaches
Risk management and control
–
Risk measurement
–
Changes to models and model parameters during the period
–
Stress testing
96–98
109
97–98
Credit risk exposures by portfolio and PD range
Semi-annual |
The CR6 table below provides information about credit risk exposures under the IRB approach, including a
breakdown of the main parameters used in IRB models to calculate the capital requirements, presented by portfolio and
PD range across FINMA-defined asset classes. EAD in the following comments represents exposure at default post credit
conversion factors and credit risk mitigation.
With the adoption of the final Basel III standards on 1 January 2025, including the DisO-FINMA, new IRB asset classes
have been introduced, including asset classes subject to the F-IRB approach, such as ”Banks – F-IRB” and ”Corporates:
other lending – F-IRB” reflecting large corporate clients. Consequently, this semi-annually disclosed table is limited to the
2025 reporting period.
›
Refer to “Amended FINMA-defined asset classes” in the “Introduction and basis for preparation” section of the 30 June 2025
Pillar 3 report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about the amended definition of
asset classes as a result of the implementation of the final Basel III standards in Switzerland
›
Refer to the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for information about
previously published CR6 disclosures
As of 31 December 2025, the asset class with the largest exposure, after applying CCF and CRM, was the Retail:
exposures secured by real estate – A-IRB asset class, reflecting our residential mortgage lending activity within Personal
& Corporate Banking and Global Wealth Management. The UBS Group also has a significant portion of exposures in the
Central governments, central banks and supranational organizations – A-IRB asset class, reflecting balances with central
banks in Group Treasury. In addition, there are significant exposures in the Retail: other retail – A-IRB asset class,
representing our Lombard lending business in Global Wealth Management. The F-IRB approach, which UBS has
implemented as part of the final Basel III standards, predominantly applies to exposures against Banks and other financial
institutions, including public sector entities, as well as large
corporate clients
in the Corporates: other lending asset class
in Personal & Corporate Banking and the Investment Bank.
Compared with 30 June 2025, EAD decreased by USD 44.9bn to USD 1,022.2bn, and RWA decreased by USD 1.5bn to
USD 193.8bn across various asset classes.
In the Central governments, central banks and supranational organizations – A-IRB asset class, EAD decreased by
USD 10.3bn to USD 271.3bn, primarily driven by lower cash and balances at central banks. RWA were unchanged at
USD 7.0bn.
In the Corporates: specialized lending – A-IRB asset class, EAD decreased by USD 2.4bn to USD 63.4bn, and RWA
decreased by USD 2.6bn to USD 27.6bn, primarily due to decreases in loan balances mainly in Global Wealth
Management and Personal & Corporate Banking.
In the Corporates: other lending – A-IRB asset class, EAD increased by USD 8.2bn to USD 51.6bn, and RWA increased by
USD 2.4bn to USD 29.2bn, driven by updates to the model for concentrated equity lending in Global Wealth
Management.
In the Retail: exposures secured by real estate – A-IRB asset class, EAD increased by USD 0.6bn to USD 325.8bn, and RWA
increased by USD 0.9bn to USD 62.3bn following the migration of exposures from Credit Suisse models.
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 42
In the Retail: qualifying revolving retail exposures (QRRE) – A-IRB asset class, EAD decreased by USD 1.5bn to USD 7.4bn,
and RWA decreased by USD 0.4bn to USD 1.6bn following the migration of exposures from Credit Suisse models. This
resulted in a decrease in exposure reported in the CR6 table below and a corresponding increase in exposures reported
in the CR4 and CR5 tables in this section.
In the Retail: other retail – A-IRB asset class, EAD decreased by USD 38.1bn to USD 219.6bn, and RWA decreased by
USD 3.8bn to USD 25.3bn. The decreases were mainly driven by methodology changes impacting Lombard lending in
Global Wealth Management. Additionally, the decreases were due to the aforementioned updates to the model for
concentrated equity lending.
In the Banks – F-IRB asset class, EAD decreased by USD 1.2bn to USD 12.9bn, and RWA increased by USD 0.3bn to
USD 6.0bn.
In the Public sector entities, multilateral development banks – F-IRB asset class, EAD decreased by USD 0.3bn to
USD 4.9bn, and RWA were unchanged at USD 1.4bn.
In the Corporates: other lending – F-IRB asset class, EAD increased by USD 0.2bn to USD 65.4bn, and RWA increased by
USD 1.9bn to USD 33.3bn, primarily driven by increases in loans and loan commitments in the Investment Bank.
›
Refer to the “CR8: RWA flow statements of credit risk exposures under IRB” table in this section for more information about the
movement of credit risk exposures under the IRB approach
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 43
CR6: IRB – Credit risk exposures by portfolio and PD range
USD m, except where indicated
Original on-
balance sheet
gross exposure
Off-balance
sheet
exposures pre-
CCF
Total
exposures
pre-CCF
Average CCF
in %
EAD post-CCF
and post-CRM
Average PD
in %
Number of
obligors (in
thousands)
1
Average LGD
in %
2
Average
maturity
in years
2
RWA
RWA density
in %
EL
Provisions
3
Central governments, central banks and supranational organizations –
A-IRB as of 31.12.25
0.00 to <0.15
<0.1
0.15 to <0.25
<0.1
0.25 to <0.50
<0.1
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
<0.1
10.00 to <100.00
<0.1
100.00 (default)
4
<0.1
Subtotal
<0.1
Central governments, central banks and supranational organizations –
A-IRB as of 30.6.25
0.00 to <0.15
<0.1
0.15 to <0.25
<0.1
0.25 to <0.50
<0.1
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
<0.1
10.00 to <100.00
<0.1
100.00 (default)
4
<0.1
Subtotal
<0.1
Corporates: specialized lending – A-IRB as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
4
<0.1
Subtotal
Corporates: specialized lending – A-IRB as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
4
<0.1
Subtotal
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 44
CR6: IRB – Credit risk exposures by portfolio and PD range (continued)
USD m, except where indicated
Original on-
balance sheet
gross exposure
Off-balance
sheet
exposures pre-
CCF
Total
exposures
pre-CCF
Average CCF
in %
EAD post-CCF
and post-CRM
Average PD
in %
Number of
obligors (in
thousands)
1
Average LGD
in %
2
Average
maturity
in years
2
RWA
RWA density
in %
EL
Provisions
3
Corporates: other lending – A-IRB as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
4
Subtotal
Corporates: other lending – A-IRB as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
4
Subtotal
Retail: exposures secured by real estate – A-IRB as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
4
Subtotal
Retail: exposures secured by real estate – A-IRB as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
4
Subtotal
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 45
CR6: IRB – Credit risk exposures by portfolio and PD range (continued)
USD m, except where indicated
Original on-
balance sheet
gross exposure
Off-balance
sheet
exposures pre-
CCF
Total
exposures
pre-CCF
Average CCF
in %
EAD post-CCF
and post-CRM
Average PD
in %
Number of
obligors (in
thousands)
1
Average LGD
in %
2
Average
maturity
in years
2
RWA
RWA density
in %
EL
Provisions
3
Retail: qualifying revolving retail exposures (QRRE) – A-IRB
as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
4
Subtotal
Retail: qualifying revolving retail exposures (QRRE) – A-IRB as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
4
Subtotal
Retail: other retail – A-IRB as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
4
Subtotal
Retail: other retail – A-IRB as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
4
Subtotal
Total – A-IRB 31.12.25
Total – A-IRB 30.6.25
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 46
CR6: IRB – Credit risk exposures by portfolio and PD range (continued)
USD m, except where indicated
Original on-
balance sheet
gross exposure
Off-balance
sheet
exposures pre-
CCF
Total
exposures
pre-CCF
Average CCF
in %
EAD post-CCF
and post-CRM
Average PD
in %
Number of
obligors (in
thousands)
1
Average LGD
in %
2
Average
maturity
in years
2
RWA
RWA density
in %
EL
Provisions
3
Banks – F-IRB as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
<0.1
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
4
Subtotal
Banks – F-IRB as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
<0.1
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
4
<0.1
Subtotal
Public sector entities, multilateral development banks – F-IRB
as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
<0.1
10.00 to <100.00
100.00 (default)
4
<0.1
Subtotal
Public sector entities, multilateral development banks – F-IRB
as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
<0.1
10.00 to <100.00
<0.1
100.00 (default)
4
<0.1
Subtotal
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 47
CR6: IRB – Credit risk exposures by portfolio and PD range (continued)
USD m, except where indicated
Original on-
balance sheet
gross exposure
Off-balance
sheet
exposures pre-
CCF
Total
exposures
pre-CCF
Average CCF
in %
EAD post-CCF
and post-CRM
Average PD
in %
Number of
obligors (in
thousands)
1
Average LGD
in %
2
Average
maturity
in years
2
RWA
RWA density
in %
EL
Provisions
3
Corporates: other lending – F-IRB as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
4
<0.1
Subtotal
Corporates: other lending – F-IRB as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
4
<0.1
Subtotal
Total – F-IRB 31.12.25
Total – F-IRB 30.6.25
Total (all asset classes under A-IRB and F-IRB) 31.12.25
Total (all asset classes under A-IRB and F-IRB) 30.6.25
1 Numbers of obligors represent an aggregation of the number of client relationships in the UBS infrastructure, along with the number of client relationships in the Credit Suisse infrastructure. RWA calculations are based on the applicable rules and models approved by FINMA for the respective legal entities and
infrastructures. 2 Defaulted exposures disclosed in the table are excluded from average loss given default and average maturity information as not relevant for risk weighting. Furthermore, Retail asset classes are excluded from the average maturity, as maturity is not relevant for risk weighting. 3 In line with BCBS
Pillar 3 disclosure requirements, provisions are only provided for the sub-totals by asset class. Provisions reflect IFRS Accounting Standards expected credit losses accounting provisions for credit losses on IRB exposures. 4 Includes defaulted purchased credit-impaired assets.
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 48
Credit derivatives used as CRM techniques
Semi-annual |
Where credit derivatives are used as CRM techniques, the PD of the obligor is in general replaced with the PD of
the hedge provider. The impact of credit derivatives used as CRM techniques on IRB credit risk has been immaterial for past
reporting periods and continued to be immaterial for this reporting period. Therefore, we have discontinued the disclosure
of the “CR7: IRB – Effect on RWA of credit derivatives used as CRM techniques” table, starting with the 31 December 2022
Pillar 3 Report, as permitted by the general principles of disclosure of FINMA Circular 2016/1 (for periods up to 31 December
2024) and the general principles of disclosure of the DisO-FINMA (for periods from 1 January 2025).
›
Refer to the “CCR6: Credit derivatives exposures” table in the “Counterparty credit risk” section of this report for notional and fair
value information about credit derivatives used as CRM techniques
Credit risk RWA development in the fourth quarter of 2025
The CR8 table below provides a breakdown of the credit risk RWA movements in the fourth quarter of 2025 under the
IRB approach across movement categories defined by the Basel Committee on Banking Supervision. These categories are
defined below.
Definitions of credit risk and counterparty credit risk RWA movement table components for CR8 and CCR7
The references in the table below refer to the line numbers provided in the CR8 movement table below and in the CCR7 movement table in the
“Counterparty credit risk” section of this report.
Reference
Description
Definition
2
Asset size
Movements arising in the ordinary course of business, such as new transactions, sales and write-offs.
3
Asset quality / Credit
quality of counterparties
Movements resulting from changes in the underlying credit quality of counterparties. These are caused
by changes to risk parameters, e.g. counterparty ratings, LGD estimates or credit hedges.
4
Model updates
Movements arising from the implementation of new models and from parameter changes to existing
models. The RWA effect of model updates is estimated based on the portfolio at the time of the
implementation of the change.
5
Methodology and policy
Movements due to methodological changes in calculations driven by regulatory policy changes,
including revisions to existing regulations, new regulations and add-ons mandated by the regulator.
The effect of methodology and policy changes on RWA is estimated based on the portfolio at the time
of the implementation of the change.
6
Acquisitions and disposals
Movements as a result of disposal or acquisition of business operations, quantified based on the credit
risk exposures as of the end of the quarter preceding a disposal or following an acquisition. Purchases
and sales of exposures in the ordinary course of business are reflected under
Asset size
.
7
Foreign exchange
movements
Movements as a result of exchange rate changes of transaction currencies against the US dollar.
8
Other
Movements due to changes that cannot be attributed to any other category.
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 49
Quarterly |
2025. This balance reflects credit risk under the IRB approach, including the F-IRB approach under the final Basel III
standards from 1 January 2025 onward, as well as credit risk under the supervisory slotting approach.
Movements in asset size increased RWA by USD 1.0bn, primarily driven by net new loans in Global Wealth Management
and a reduction in synthetic securitization in Personal & Corporate Banking resulting in exposures moving to credit risk.
Movements in asset quality decreased RWA by USD 0.1bn.
Model updates increased RWA by USD 0.7bn, mainly reflecting harmonization of models, primarily in Personal &
Corporate Banking.
Methodology and policy changes resulted in an RWA decrease of USD 2.6bn, mainly on Lombard lending in Global
Wealth Management and migration of exposures from Credit Suisse models.
Currency effects, driven by the weakening of the US dollar against other major currencies, resulted in a USD 0.5bn
increase of in RWA.
CR8: RWA flow statements of credit risk exposures under IRB
USD m
For the quarter
ended 31.12.25
For the quarter
ended 30.9.25
For the quarter
ended 30.6.25
For the quarter
ended 31.3.25
1
RWA as of the beginning of the quarter
2
Asset size
3
Asset quality
4
Model updates
5
Methodology and policy
5a
of which: impact from the implementation of final Basel III standards
5b
of which: others
6
Acquisitions and disposals
7
Foreign exchange movements
8
Other
9
RWA as of the end of the quarter
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 50
Backtesting
Annual |
The following tables provide backtesting data to validate the reliability of PD calculations for all Pillar 1 PD models that are approved by FINMA for the UBS Group. This
excludes non-key models still operational on legacy Credit Suisse platforms for positions yet to migrate to UBS platforms and models. These models will be decommissioned in due
course after the migration has been completed. The estimated PDs are forward -looking average PDs from mid-2025 across the final Basel III A-IRB / F-IRB asset classes and are
compared with the simple average of historical default rates.
›
Refer to the “CRE: Qualitative disclosure related to IRB-models – Main features of our key credit risk models” table in this section for more information about our key credit risk models
›
Refer to “Backtesting” in the “Risk management and control” section of the UBS Group Annual Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more information about
backtesting of credit models
With the adoption of the final Basel III standards on 1 January 2025, including the DisO-FINMA, new IRB asset classes have been introduced, including asset classes subject to the
F-IRB approach. Consequently, this annual disclosed table is limited to the current reporting period, with no comparative figures presented.
›
Refer to “Amended FINMA-defined asset classes” in the “Introduction and basis for preparation” section of the 30 June 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about the amended definition of asset classes as a result of the implementation of the final Basel III standards in Switzerland
›
Refer to the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for information about previously published CR9 disclosures
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 51
CR9: IRB – Backtesting of probability of default (PD) per portfolio
UBS Group
1
PD range
External rating
equivalent
Moody’s
External rating
equivalent
S&P
External rating
equivalent
Fitch
Weighted
average PD
in %
Arithmetic
average PD
by obligors
in %
Number of obligors
(in thousands)
Defaulted obligors
in the year
of which: new
defaulted obligors
in the year
Average historical
annual default rate
in %
End of the
previous year
End of the
year
Central governments, central banks and supranational organizations –
A-IRB as of 31.12.25
0.00 to <0.15
Aaa to A3
AAA to A–
AAA to AA–
<0.1
0.15 to <0.25
Baa1 to Baa2
BBB+ to BBB
BBB+ to BBB
<0.1
0.25 to <0.50
Baa3
BBB–
BBB–
<0.1
0.50 to <0.75
Ba1
BB+
BB+
<0.1
0.75 to <2.50
Ba2 to Ba3
BB to BB–
BB to BB–
<0.1
2.50 to <10.00
B1 to B3
B+ to B–
B+ to B–
<0.1
10.00 to <100.00
Caa1 to C
CCC to C
CCC to C
<0.1
Subtotal
<0.1
Corporates: specialized lending – A-IRB as of 31.12.25
0.00 to <0.15
Aaa to A3
AAA to A–
AAA to AA–
0.15 to <0.25
Baa1 to Baa2
BBB+ to BBB
BBB+ to BBB
0.25 to <0.50
Baa3
BBB–
BBB–
0.50 to <0.75
Ba1
BB+
BB+
0.75 to <2.50
Ba2 to Ba3
BB to BB–
BB to BB–
2.50 to <10.00
B1 to B3
B+ to B–
B+ to B–
10.00 to <100.00
Caa1 to C
CCC to C
CCC to C
<0.1
Subtotal
Corporates: other lending – A-IRB as of 31.12.25
0.00 to <0.15
Aaa to A3
AAA to A–
AAA to AA–
0.15 to <0.25
Baa1 to Baa2
BBB+ to BBB
BBB+ to BBB
0.25 to <0.50
Baa3
BBB–
BBB–
0.50 to <0.75
Ba1
BB+
BB+
0.75 to <2.50
Ba2 to Ba3
BB to BB–
BB to BB–
2.50 to <10.00
B1 to B3
B+ to B–
B+ to B–
10.00 to <100.00
Caa1 to C
CCC to C
CCC to C
Subtotal
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 52
CR9: IRB – Backtesting of probability of default (PD) per portfolio (continued)
UBS Group
1
PD range
External rating
equivalent
Moody’s
External rating
equivalent
S&P
External rating
equivalent
Fitch
Weighted
average PD
in %
Arithmetic
average PD
by obligors
in %
Number of obligors
(in thousands)
Defaulted obligors
in the year
of which: new
defaulted obligors
in the year
Average historical
annual default rate
in %
End of the
previous year
End of the
year
Retail: exposures secured by real estate – A-IRB as of 31.12.25
0.00 to <0.15
Aaa to A3
AAA to A–
AAA to AA–
0.15 to <0.25
Baa1 to Baa2
BBB+ to BBB
BBB+ to BBB
0.25 to <0.50
Baa3
BBB–
BBB–
0.50 to <0.75
Ba1
BB+
BB+
0.75 to <2.50
Ba2 to Ba3
BB to BB–
BB to BB–
2.50 to <10.00
B1 to B3
B+ to B–
B+ to B–
10.00 to <100.00
Caa1 to C
CCC to C
CCC to C
Subtotal
Retail: qualifying revolving retail exposures (QRRE) – A-IRB
as of 31.12.25
0.00 to <0.15
Aaa to A3
AAA to A–
AAA to AA–
0.15 to <0.25
Baa1 to Baa2
BBB+ to BBB
BBB+ to BBB
0.25 to <0.50
Baa3
BBB–
BBB–
0.50 to <0.75
Ba1
BB+
BB+
0.75 to <2.50
Ba2 to Ba3
BB to BB–
BB to BB–
2.50 to <10.00
B1 to B3
B+ to B–
B+ to B–
10.00 to <100.00
Caa1 to C
CCC to C
CCC to C
Subtotal
Retail: other retail – A-IRB as of 31.12.25
0.00 to <0.15
Aaa to A3
AAA to A–
AAA to AA–
0.15 to <0.25
Baa1 to Baa2
BBB+ to BBB
BBB+ to BBB
0.25 to <0.50
Baa3
BBB–
BBB–
0.50 to <0.75
Ba1
BB+
BB+
0.75 to <2.50
Ba2 to Ba3
BB to BB–
BB to BB–
2.50 to <10.00
B1 to B3
B+ to B–
B+ to B–
10.00 to <100.00
Caa1 to C
CCC to C
CCC to C
Subtotal
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 53
CR9: IRB – Backtesting of probability of default (PD) per portfolio (continued)
UBS Group
1
PD range
External rating
equivalent
Moody’s
External rating
equivalent
S&P
External rating
equivalent
Fitch
Weighted
average PD
in %
Arithmetic
average PD
by obligors
in %
Number of obligors
(in thousands)
Defaulted obligors
in the year
of which: new
defaulted obligors
in the year
Average historical
annual default rate
in %
End of the
previous year
End of the
year
Banks – F-IRB as of 31.12.25
0.00 to <0.15
Aaa to A3
AAA to A–
AAA to AA–
0.15 to <0.25
Baa1 to Baa2
BBB+ to BBB
BBB+ to BBB
0.25 to <0.50
Baa3
BBB–
BBB–
<0.1
0.50 to <0.75
Ba1
BB+
BB+
<0.1
0.75 to <2.50
Ba2 to Ba3
BB to BB–
BB to BB–
<0.1
2.50 to <10.00
B1 to B3
B+ to B–
B+ to B–
10.00 to <100.00
Caa1 to C
CCC to C
CCC to C
<0.1
Subtotal
Public sector entities, multilateral development banks – F-IRB
as of 31.12.25
0.00 to <0.15
Aaa to A3
AAA to A–
AAA to AA–
0.15 to <0.25
Baa1 to Baa2
BBB+ to BBB
BBB+ to BBB
0.25 to <0.50
Baa3
BBB–
BBB–
0.50 to <0.75
Ba1
BB+
BB+
<0.1
0.75 to <2.50
Ba2 to Ba3
BB to BB–
BB to BB–
<0.1
2.50 to <10.00
B1 to B3
B+ to B–
B+ to B–
<0.1
10.00 to <100.00
Caa1 to C
CCC to C
CCC to C
<0.1
Subtotal
Corporates: other lending – F-IRB as of 31.12.25
0.00 to <0.15
Aaa to A3
AAA to A–
AAA to AA–
0.15 to <0.25
Baa1 to Baa2
BBB+ to BBB
BBB+ to BBB
0.25 to <0.50
Baa3
BBB–
BBB–
0.50 to <0.75
Ba1
BB+
BB+
0.75 to <2.50
Ba2 to Ba3
BB to BB–
BB to BB–
2.50 to <10.00
B1 to B3
B+ to B–
B+ to B–
10.00 to <100.00
Caa1 to C
CCC to C
CCC to C
<0.1
Subtotal
1 The estimated PDs are forward-looking average PDs from mid-2025 across the final Basel III A-IRB / F-IRB asset classes. The number of obligors at the end of the previous year is left blank accordingly. Average historical default rates cover a period starting in 2008 and ending at the end of 2025. The historical default
rates pre-2025 are not retroactively mapped to the final Basel III A-IRB / F-IRB asset classes. Furthermore, it has to be noted that the average historical annual default rates incorporate both credit risk and counterparty credit risk, in line with our scope of the PD models. The other metrics in the table reflect credit risk
only.
31 December 2025 Pillar 3 Report |
UBS Group | Credit risk 54
Specialized lending
Semi-annual |
approach.
CR10: IRB – specialized lending under the slotting approach
USD m, except where indicated
On-balance sheet
amount
Off-balance sheet
amount
Risk weight
in %
Exposure amount
1
RWA
EL
31.12.25
Other than high-volatility commercial real estate
Regulatory categories and remaining maturity
Strong
Less than 2.5 years
Equal to or more than 2.5 years
Good
Less than 2.5 years
Equal to or more than 2.5 years
Satisfactory
Weak
Default
Total
30.6.25
Other than high-volatility commercial real estate
Regulatory categories and remaining maturity
Strong
Less than 2.5 years
Equal to or more than 2.5 years
Good
Less than 2.5 years
Equal to or more than 2.5 years
Satisfactory
Weak
Default
Total
31.12.24
Other than high-volatility commercial real estate
Regulatory categories and remaining maturity
Strong
Less than 2.5 years
Equal to or more than 2.5 years
Good
Less than 2.5 years
Equal to or more than 2.5 years
Satisfactory
Weak
Default
Total
1 Exposure amounts in connection with income-producing real estate.
31 December 2025 Pillar 3 Report |
UBS Group | Counterparty credit risk 55
Counterparty credit risk
Introduction
Semi-annual I
This section provides information about the exposures subject to the final Basel III counterparty credit risk (CCR)
framework. CCR arises from over-the-counter derivatives and exchange-traded derivatives, securities financing
transactions (SFTs), and long settlement transactions. We determine the regulatory credit exposure on the majority of
derivatives by applying the internal model method (the IMM). For the remainder we apply the standardized approach for
counterparty credit risk (SA-CCR). For the majority of SFTs we determine the regulatory credit exposure using the value-
at-risk (VaR) approach. For the remainder we apply the comprehensive approach for credit risk mitigation (CRM).
General information about CCR
Annual |
The table below presents an overview of Pillar 3 disclosures that are provided separately in the UBS Group Annual
Report 2025, available under “Annual reporting” at
ubs.com/investors
.
CCRA: Qualitative disclosure related to CCR
Pillar 3 disclosure requirement
UBS Group Annual Report 2025 section
Disclosure
UBS Group Annual
Report 2025 page
number
Risk management objectives and
policies related to counterparty
credit risk
Risk management and control
–
Traded products
–
Credit hedging
–
Mitigation of settlement risk
103–104
106
106
Consolidated financial statements
–
Note 1 a) item 2) j. Hedge accounting
–
Note 10 Derivative instruments
271–272
289–290
The method used to assign the
operating limits defined in terms of
internal capacity for counterparty
credit exposures and for central
counterparties exposures
Risk management and control
–
Risk governance
–
Portfolio and position limits
–
Credit risk
–
management techniques
–
Credit hedging
–
Credit risk models
92–94
96
99
106
106–109
Policies relating to guarantees and
other risk mitigants, and
assessments concerning
counterparty risk, including
exposures towards central
counterparties
Risk management and control
–
Credit risk mitigation
104–106
Consolidated financial statements
–
Note 10 Derivative instruments
–
Note 21 Offsetting financial assets and financial liabilities
289–290
330–331
Policies with respect to wrong-way
risk exposures
Risk management and control
–
Risk concentrations
–
Exposure at default
98
107
The effect on the firm of a credit
rating downgrade (i.e. the amount
of collateral the firm would be
required to provide) and the
disclosure on rating actions
Liquidity and funding management
–
Credit ratings
143
31 December 2025 Pillar 3 Report |
UBS Group | Counterparty credit risk 56
CCR exposure
Semi-annual I
The CCR1 table below presents the methods used to calculate CCR exposure. Compared with 30 June 2025,
derivative exposures subject to the IMM increased by USD 4.1bn, mainly due to higher levels of client activity in the
Investment Bank. Exposures related to the comprehensive approach for CRM for SFTs increased by USD 0.7bn, mainly in
Group Treasury. These increases were partly offset by a decrease of USD 2.5bn in derivative exposures subject to SA-CCR,
primarily from decreases in Global Wealth Management and the Investment Bank, and a decrease of USD 2.1bn in
exposure at default (EAD) post-CRM on SFTs under the VaR approach, mainly driven by roll-offs in Group Treasury.
CCR1: Analysis of counterparty credit risk (CCR) exposure by approach
Replacement
cost
Potential future
exposure
Effective
EPE
Alpha used for
computing
regulatory EAD
EAD
post-CRM
RWA
31.12.25
1
SA-CCR (for derivatives)
2
Internal model method (for derivatives)
1
3
Simple approach for credit risk mitigation (for SFTs)
4
Comprehensive approach for credit risk mitigation (for SFTs)
5
VaR (for SFTs)
6
Total
30.6.25
1
SA-CCR (for derivatives)
2
Internal model method (for derivatives)
1
3
Simple approach for credit risk mitigation (for SFTs)
4
Comprehensive approach for credit risk mitigation (for SFTs)
5
VaR (for SFTs)
6
Total
31.12.24
1
SA-CCR (for derivatives)
2
Internal model method (for derivatives)
1
3
Simple approach for credit risk mitigation (for SFTs)
4
Comprehensive approach for credit risk mitigation (for SFTs)
5
VaR (for SFTs)
6
Total
1 A conservative treatment for the purpose of calculating exposure profiles is applied to material trades with wrong-way risk features, along with an alpha factor of 1.0.
CCR exposure subject to the standardized approach
Semi-annual |
Starting with the 31 December 2022 Pillar 3 Report, we have discontinued the disclosure of the “CCR3:
Standardized approach – CCR exposures by regulatory portfolio and risk weights” table, based on immateriality, as
permitted by the general principles of disclosure of Swiss Financial Market Supervisory Authority (FINMA) Circular 2016/1
(for periods up to 31 December 2024) and the general principles of disclosure of the FINMA Ordinance on the Disclosure
Obligations of Banks and Securities Firms (the DisO-FINMA) (for periods from 1 January 2025). The majority of our CCR
exposures are subject to internal ratings-based (IRB) risk weights or disclosed separately when related to central
counterparties (CCPs).
›
Refer to the “CCR4: IRB – CCR exposures by portfolio and PD scale” and the “CCR8: Exposures to central counterparties” tables in
this section for more information about CCR exposures subject to IRB risk weights and CCPs, respectively
31 December 2025 Pillar 3 Report |
UBS Group | Counterparty credit risk 57
CCR exposure subject to the IRB approach
Semi-annual |
The CCR4 table below provides a breakdown of the key parameters used for the calculation of capital
requirements under the IRB approach , including the foundation IRB (F-IRB) approach under the final Basel III standards
from 1 January 2025 onward, across FINMA-defined asset classes. EAD in this section represents exposure at default post
credit risk mitigation.
With the adoption of the final Basel III standards on 1 January 2025, including the DisO-FINMA, new IRB asset classes
have been introduced, including asset classes subject to the F-IRB approach, such as “Banks – F-IRB” and “Corporates:
other lending – F-IRB” reflecting large corporate clients. Consequently, this semi-annually disclosed table is limited to the
2025 reporting period.
›
Refer to “Amended FINMA-defined asset classes” in the “Introduction and basis for preparation” section of the 30 June 2025
Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about the amended definition of
asset classes as a result of the implementation of the final Basel III standards in Switzerland
›
Refer to the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for information about
previously published CCR4 disclosures
As of 31 December 2025, the asset class with the largest exposure, after applying credit risk mitigation, was the
Corporates: other lending – F-IRB asset class, reflecting derivatives and securities financing transaction exposures within
the Investment Bank. In addition, UBS Group has significant exposures in the Retail: other retail – A-IRB asset class,
representing derivatives in Global Wealth Management.
Compared with 30 June 2025, EAD increased by USD 1.3bn to USD 115.0bn across the various asset classes, and risk-
weighted assets (RWA) increased by USD 1.5bn to USD 25.1bn.
In the Central governments, central banks and supranational organizations – A-IRB asset class, EAD decreased by
USD 5.3bn to USD 5.3bn, primarily due to roll-offs in Group Treasury. RWA increased by USD 0.1bn to USD 0.3bn.
In the Corporates – A-IRB asset class, EAD increased by USD 0.2bn to USD 5.3bn. RWA increased by USD 0.1bn to
USD 2.3bn.
In the Retail: other retail – A-IRB asset class, EAD decreased by USD 1.5bn to USD 18.1bn, and RWA decreased by
USD 0.4bn to USD 2.1bn, mainly due to a decrease in derivative exposures in Global Wealth Management.
In the Banks – F-IRB asset class, EAD increased by USD 3.8bn to USD 27.4bn, and RWA increased by USD 0.5bn to
USD 5.9bn, primarily driven by higher SFT and derivative exposures in Group Treasury and the Investment Bank.
In the Public sector entities, multilateral development banks – F-IRB asset class, EAD decreased by USD 0.3bn to
USD 2.2bn. RWA were unchanged at USD 0.3bn.
In the Corporates: other lending – F-IRB asset class, EAD increased by USD 4.3bn to USD 56.7bn, and RWA increased by
USD 1.2bn to USD 14.3bn, mainly due to an increase in derivative exposures in the Investment Bank.
›
Refer to the “CCR7: RWA flow statements of CCR exposures under internal model method (IMM) and value-at-risk (VaR)” table in
this section for more information about RWA, including details of movements in CCR RWA
31 December 2025 Pillar 3 Report |
UBS Group | Counterparty credit risk 58
CCR4: IRB – CCR exposures by portfolio and PD scale
USD m, except where indicated
EAD post-CRM
Average PD
in %
Number of obligors
(in thousands)
1
Average LGD
in %
2
Average maturity
in years
2
RWA
RWA density
in %
Central governments, central banks and supranational organizations
– A-IRB as of 31.12.25
0.00 to <0.15
<0.1
0.15 to <0.25
<0.1
0.25 to <0.50
<0.1
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
Subtotal
<0.1
Central governments, central banks and supranational organizations
– A-IRB as of 30.6.25
0.00 to <0.15
<0.1
0.15 to <0.25
<0.1
0.25 to <0.50
<0.1
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
<0.1
10.00 to <100.00
100.00 (default)
Subtotal
<0.1
Corporates – A-IRB as of 31.12.25
3
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
<0.1
Subtotal
Corporates – A-IRB as of 30.6.25
3
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
<0.1
Subtotal
Retail: other retail – A-IRB as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
<0.1
Subtotal
Retail: other retail – A-IRB as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
<0.1
Subtotal
Total – A-IRB 31.12.25
Total – A-IRB 30.6.25
31 December 2025 Pillar 3 Report |
UBS Group | Counterparty credit risk 59
CCR4: IRB – CCR exposures by portfolio and PD scale (continued)
USD m, except where indicated
EAD post-CRM
Average PD
in %
Number of obligors
(in thousands)
1
Average LGD
in %
2
Average maturity
in years
2
RWA
RWA density
in %
Banks – F-IRB as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
<0.1
10.00 to <100.00
100.00 (default)
Subtotal
Banks – F-IRB as of 30.6.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
<0.1
10.00 to <100.00
<0.1
100.00 (default)
Subtotal
Public sector entities, multilateral development banks – F-IRB
as of 31.12.25
0.00 to <0.15
<0.1
0.15 to <0.25
<0.1
0.25 to <0.50
<0.1
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
10.00 to <100.00
100.00 (default)
<0.1
Subtotal
Public sector entities, multilateral development banks – F-IRB
as of 30.6.25
0.00 to <0.15
0.15 to <0.25
<0.1
0.25 to <0.50
<0.1
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
<0.1
Subtotal
Corporates: other lending – F-IRB as of 31.12.25
3
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
Subtotal
Corporates: other lending – F-IRB as of 30.6.25
3
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
<0.1
Subtotal
Total – F-IRB 31.12.25
Total – F-IRB 30.6.25
Total (all asset classes under A-IRB and F-IRB) 31.12.25
Total (all asset classes under A-IRB and F-IRB) 30.6.25
1 Numbers of obligors represent an aggregation of the number of client relationships in the UBS infrastructure, along with the number of client relationships in the Credit Suisse infrastructure. RWA calculations are
based on the applicable rules and models approved by FINMA for the respective legal entities and infrastructures. 2 Defaulted exposures disclosed in the table are excluded from average loss given default and
average maturity information as not relevant for risk weighting. Furthermore, Retail asset classes are excluded from the average maturity, as they are not subject to maturity treatment. 3 Includes exposures to
managed funds.
31 December 2025 Pillar 3 Report |
UBS Group | Counterparty credit risk 60
Composition of collateral for CCR exposure
Semi-annual |
The CCR5 table below presents a breakdown of collateral posted or received relating to CCR exposures from
derivative transactions and SFTs.
Compared with 30 June 2025, the fair value of collateral received for SFTs increased by USD 61.1bn to USD 883.3bn,
and the fair value of posted collateral for SFTs increased by USD 11.9bn to USD 643.4bn. The increases in collateral
received for SFTs were mainly related to equity securities, due to higher levels of client activity, primarily in the Investment
Bank. This was partly offset by decreases in sovereign debt securities.
The increase in posted collateral for SFTs was mainly related to increases in equity securities, due to higher levels of client
activity, primarily in the Investment Bank. This increase was also driven by other debt securities, as well as sovereign debt
securities, and partly offset by decreases in cash collateral driven by overall reduction in balance sheet.
The fair value of collateral received for derivatives decreased by USD 6.5bn to USD 110.5bn. The fair value of posted
collateral for derivatives decreased by USD 0.9bn to USD 84.4bn.
CCR5: Composition of collateral for CCR exposure
1
Collateral used in derivative transactions
Collateral used in SFTs
Fair value of collateral received
2
Fair value of posted collateral
Fair value of
collateral received
Fair value of
posted collateral
USD m
Segregated
Unsegregated
Total
Segregated
Unsegregated
Total
31.12.25
Cash – domestic currency
Cash – other currencies
Sovereign debt
Other debt securities
Equity securities
Other collateral
3
Total
30.6.25
Cash – domestic currency
Cash – other currencies
Sovereign debt
Other debt securities
Equity securities
Other collateral
3
Total
31.12.24
Cash – domestic currency
Cash – other currencies
Sovereign debt
Other debt securities
Equity securities
Other collateral
3
Total
1 This table includes collateral received and posted with and without the right of rehypothecation but excludes securities placed with central banks related to undrawn credit lines and for payment, clearing and
settlement purposes for which there were no associated liabilities or contingent liabilities. 2 Includes collateral received from retail clients supporting Lombard lending and other retail products, where such collateral
is recognized under the full standardized approach for derivatives. 3 Includes fund investments, asset-backed securities and mortgage-backed securities.
31 December 2025 Pillar 3 Report |
UBS Group | Counterparty credit risk 61
Credit derivatives exposures
Semi-annual |
The CCR6 table below presents an overview of credit risk protection bought or sold through credit derivatives.
Compared with 30 June 2025, notionals for credit derivatives for protection bought increased by USD 23.4bn to
USD 102.8bn and notionals for derivatives for protection sold increased by USD 13.8bn to USD 79.9bn, primarily driven
by index credit default swaps, mostly due to higher trading volumes in the Investment Bank, partly offset by single-name
credit default swaps reflecting compression activity in the Investment Bank and Group Treasury.
CCR6: Credit derivatives exposures
31.12.25
30.6.25
31.12.24
USD m
Protection
bought
Protection
sold
Protection
bought
Protection
sold
Protection
bought
Protection
sold
Notionals
1
Single-name credit default swaps
Index credit default swaps
Total return swaps
Credit options
Total notionals
Fair values
Derivative financial assets
Derivative financial liabilities
1 Includes notional amounts for client-cleared transactions.
CCR RWA development in the fourth quarter of 2025
Quarterly |
The CCR7 table below presents a flow statement explaining movements in CCR RWA determined under the IMM
for derivatives and the VaR approach for SFTs across movement categories defined by the Basel Committee on Banking
Supervision.
CCR RWA on derivatives under the IMM decreased by USD 0.3bn to USD 14.6bn during the fourth quarter of 2025.
Asset size movements contributed to an RWA increase of USD 1.0bn, primarily in the Investment Bank. Credit quality
movements contributed to a decrease of USD 0.9bn mainly due to changes in the portfolio mix in the Investment Bank.
Model updates resulted in a decrease of USD 0.4bn.
CCR RWA on SFTs under the VaR approach decreased by USD 1.5bn to USD 6.8bn during the fourth quarter of 2025.
Asset size movements contributed to an RWA decrease of USD 1.1bn, reflecting market-driven movements, mainly in the
Investment Bank. Credit quality movements contributed to a USD 0.3bn decrease in RWA, primarily due to decreases in
risk density in the Investment Bank.
›
Refer to “Definitions of credit risk and counterparty credit risk RWA movement table components for CR8 and CCR7” in the
“Credit risk” section of this report for definitions of CCR RWA movement table components
CCR7: RWA flow statements of CCR exposures under internal model method (IMM) and value-at-risk (VaR)
For the quarter ended 31.12.25
For the quarter ended 30.9.25
For the quarter ended 30.6.25
For the quarter ended 31.3.25
USD m
Derivatives
SFTs
Total
Derivatives
SFTs
Total
Derivatives
SFTs
Total
Derivatives
SFTs
Total
Subject to
IMM
Subject
to VaR
Subject to
IMM
Subject
to VaR
Subject to
IMM
Subject
to VaR
Subject to
IMM
Subject
to VaR
1
RWA as of the beginning of
the quarter
2
Asset size
3
Credit quality of counterparties
4
Model updates
5
Methodology and policy
5a
of which: impact from the
implementation of final
Basel III standards
5b
of which: others
6
Acquisitions and disposals
7
Foreign exchange movements
8
Other
9
RWA as of the end of the
quarter
31 December 2025 Pillar 3 Report |
UBS Group | Counterparty credit risk 62
Exposures to CCPs
Semi-annual |
The CCR8 table below presents a breakdown of exposures to CCPs and related RWA. Compared with 30 June
2025, exposures to qualifying CCPs increased by USD 3.2bn to USD 36.1bn, primarily in the Investment Bank.
CCR8: Exposures to central counterparties
31.12.25
30.6.25
31.12.24
USD m
EAD (post-CRM)
RWA
EAD (post-CRM)
RWA
EAD (post-CRM)
RWA
1
Exposures to QCCPs (total)
1
2
Exposures for trades at QCCPs (excluding initial margin and default fund
contributions); of which
3
(i) OTC derivatives
4
(ii) Exchange-traded derivatives
5
(iii) Securities financing transactions
6
(iv) Netting sets where cross-product netting has been approved
7
Segregated initial margin
8
Non-segregated initial margin
2
9
Pre-funded default fund contributions
10
Unfunded default fund contributions
11
Exposures to non-QCCPs (total)
12
Exposures for trades at non-QCCPs (excluding initial margin and default fund
contributions); of which
13
(i) OTC derivatives
14
(ii) Exchange-traded derivatives
15
(iii) Securities financing transactions
16
(iv) Netting sets where cross-product netting has been approved
17
Segregated initial margin
18
Non-segregated initial margin
2
19
Pre-funded default fund contributions
20
Unfunded default fund contributions
3
1 Qualifying central counterparties (QCCPs) are entities that are licensed by regulators to operate as CCPs and meet the requirements outlined in the FINMA Ordinance on the Credit Risk of Banks and Securities Firms
(the CreO-FINMA). 2 Exposures associated with initial margin, where the exposures are measured under the IMM or the VaR approach, have been included within the exposures for trades (refer to line 2 for QCCPs
and line 12 for non-QCCPs). The exposures for non-segregated initial margin (refer to line 8 for QCCPs and line 18 for non-QCCPs), i.e. not bankruptcy remote in accordance with the CreO-FINMA, reflect the
replacement costs under the standardized approach for CCR (SA-CCR) multiplied by an alpha factor of 1.4. The RWA reflect the exposure multiplied by the applied risk weight of derivatives. Under the SA-CCR,
collateral posted to a segregated, bankruptcy-remote account does not increase the value of replacement costs. 3 Excludes unfunded default fund contributions that are not subject to RWA calculations in line with
current regulatory guidance.
31 December 2025 Pillar 3 Report |
UBS Group | Credit valuation adjustment 63
Credit valuation adjustment
Introduction
The credit valuation adjustment (CVA) capital charge covers the risk of mark-to-market losses associated with the
deterioration of counterparty credit quality. We apply the standardized approach for calculating CVA capital requirements
(SA-CVA) on positions where we generally use the internal model method to derive the exposure at default for derivatives
and the full basic approach (BA-CVA) for all other positions. As we have introduced the full BA-CVA and the SA-CVA
from 1 January 2025, no comparative-period information for 31 December 2024 is available.
›
Refer to “Overview of risk-weighted assets and capital requirements” in the “Overview of risk-weighted assets” section of this
report for the materiality of BA-CVA and SA-CVA risk-weighted assets (RWA) and capital requirements
CVAA: General qualitative disclosure requirements related to CVA
Risk management objectives and policies related to CVA risk
Annual |
UBS has implemented a comprehensive framework to identify, measure, monitor and control CVA risks in line with
industry practice and the regulatory standards of the Basel Committee on Banking Supervision (the BCBS).
Measurement and monitoring of CVA risks are supported by the SA-CVA calculator, which captures eligible exposures
and hedges. Hedging policies adhere to the BCBS CVA framework, with eligibility criteria for CVA hedges clearly specified
and subject to extensive governance controls.
Hedging strategies, which include utilizing credit default swaps (CDS) and index CDS instruments, are implemented in
line with regulatory standards. All eligible external CVA hedges are excluded from market risk capital calculations, while
ineligible hedges are treated as trading book instruments. UBS enforces strict booking controls, requiring appropriate
approval and additional governance for new or complex trades. The effectiveness of hedges is continuously monitored
through UBS’s control framework, ensuring alignment with both regulatory obligations and internal risk appetite.
›
Refer to “Risk governance” in the “Risk management and control” section of the UBS Group Annual Report 2025, available
under “Annual reporting” at
ubs.com/investors
, for more information
CVAB: Qualitative disclosures for banks using the SA-CVA
Description of the bank’s CVA risk management framework
Annual |
CVA risk is identified through a combination of quantitative models and qualitative assessments. UBS utilizes
advanced risk analytics to estimate potential credit exposures and the impact of counterparty credit spreads on the
valuation of derivative portfolios. CVA is measured using market-standard methodologies, incorporating both current
and potential future exposure, as well as market-implied credit spreads.
›
Refer to “Risk appetite framework” and “Stress testing” in the “Risk management and control” section of the UBS Group Annual
Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more information
Overview of the governance of the CVA risk management framework
Monitoring and governance are maintained through dedicated committees and policies, ensuring continuous oversight
of CVA risks.
Senior management at UBS play an active and integral role in the CVA risk management framework. They periodically
review CVA risk exposures, hedging strategies, regulatory capital allocation and key regulatory submissions, and ensure
adherence to internal policies, controls and procedures.
›
Refer to “Risk governance”, “Internal risk reporting” and “Model risk” in the “Risk management and control” section of the UBS
Group Annual Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more information
Full basic approach for CVA
Semi-annual |
The CVA2 table below shows the components used for the computation of capital requirements under the full
BA-CVA for CVA risk. BA-CVA RWA decreased by USD 1.3bn to USD 4.3bn in the second half of 2025, primarily reflecting
risk mitigation, roll-offs and market-driven movements.
31 December 2025 Pillar 3 Report |
UBS Group | Credit valuation adjustment 64
CVA2: The full basic approach for CVA (BA-CVA)
USD m
Capital
requirements
under BA-CVA
RWA
31.12.25
1
K
Reduced
2
K
Hedged
3
Total
1
30.6.25
1
K
Reduced
2
K
Hedged
3
Total
1
1 Total is calculated as the sum of 75% K
Hedged
Reduced
.
Standardized approach for CVA
Semi-annual |
The CVA3 table below provides the components used for the computation of capital requirements under the
SA-CVA for CVA risk.
CVA3: The standardized approach for CVA (SA-CVA)
USD m, except where indicated
Capital
requirements
under SA-CVA
RWA
Number of
counterparties
31.12.25
1
Interest rate risk
2
Foreign exchange risk
3
Reference credit spread risk
4
Equity risk
5
Commodity risk
6
Counterparty credit spread risk
7
Total
30.6.25
1
Interest rate risk
2
Foreign exchange risk
3
Reference credit spread risk
4
Equity risk
5
Commodity risk
6
Counterparty credit spread risk
7
Total
SA-CVA RWA development in the fourth quarter of 2025
Quarterly |
The CVA4 table below shows the movements in RWA for CVA risk determined under the SA-CVA. SA-CVA RWA
decreased by USD 0.7bn to USD 4.6bn during the fourth quarter of 2025, due to an increase in hedges and a decrease
in counterparty exposures.
CVA4: RWA flow statements of CVA risk exposures under SA-CVA
USD m
Total RWA
1
RWA as of 31.3.25
2
RWA as of 30.6.25
3
RWA as of 30.9.25
4
RWA as of 31.12.25
Securitizations
SECA: Qualitative disclosure requirements related to securitization exposures
Introduction
Annual |
This section provides details of traditional and synthetic securitization exposures in the banking and trading book
based on the Basel
III securitization framework.
31 December 2025 Pillar 3 Report |
UBS Group | Securitizations 65
In a traditional securitization a pool of loans (or other debt instruments) is typically transferred to structured entities that
have been established to own the pool and to issue tranched securities to third-party investors referencing this pool of
loans. In a synthetic securitization legal ownership of securitized pools of assets is typically retained, but associated credit
risk is transferred to structured entities, typically through guarantees, credit derivatives or credit-linked notes. In both
traditional and synthetic securitizations risk is dependent on the seniority of the retained interest and the performance of
the underlying asset pool.
Objectives, roles and involvement
Securitization in the banking book
UBS is active in various roles in relation to securitization activity, including originator and investor, mainly via its Investment
Bank and Personal & Corporate Banking business divisions. Securitization exposures in the banking book are aimed at
reducing or limiting risk and commensurately releasing capital in accordance with the Basel rules by securitizing the
underlying assets. Structures originated by UBS typically provide protection against loss related to specific credit exposures
(e.g. loans, loan commitments or debt instruments) by creating synthetic securitization tranches on the underlying
reference portfolio. Such transactions usually consist of first loss protection provided by a third party and typically a senior
tranche retained by UBS. Structures may additionally entail a mezzanine tranche. First loss and mezzanine tranches may
be fully funded or partially funded. Significant risk transfers through synthetic securitization are subject to separate
specific risk limits under the authority of the Board of Directors for the overall Group, with sub-limits under the authority
of the Group Chief Risk Officer for Personal & Corporate Banking and the Investment Bank. Synthetic securitization
exposure originated by UBS in the banking book was USD 6.4bn at the end of the fourth quarter of 2025, with the
majority of the risk-weighted assets (RWA) impact reflected in the Investment Bank.
As originator, we create or purchase financial assets (e.g. commercial mortgages or corporate loans), and then securitize
them in a traditional or synthetic transaction that achieves significant risk transfer to third-party investors. As an investor,
we have securitization transactions in the banking book referencing different types of underlying assets, predominantly
real estate loans (commercial and residential).
Securitization in the trading book
Securitizations held in the trading book are part of trading activities, including market-making and client facilitation.
These holdings may also result from the retention of certain securitization positions held as an investor, including from
securitizations we may have originated or sponsored. In the trading book, securitization and re-securitization positions
are measured at fair value, reflecting market prices where available, or based on our internal pricing models.
Type of structured entities and affiliated entities involved in securitization transactions
For securitization transactions, the type of structured entities including special purpose vehicles employed is selected as
appropriate based on the type of transaction undertaken. Examples include limited liability companies, common law
trusts and depositor entities.
›
Refer to “Note 27 Interests in subsidiaries and other entities” in the “Consolidated financial statements” section of the UBS Group
Annual Report 2025, available under ”Annual reporting” at
ubs.com/investors
, for more information about interests in structured
entities
Managing and monitoring of the
credit
and market risk of
securitization
The banking book securitization portfolio is subject to risk monitoring, which may include interest rate and credit spread
sensitivity analysis, as well as inclusion in firm-wide stress-testing metrics.
Trading book securitization positions are subject to multiple risk limits, such as management value-at-risk (VaR) and stress
limits, as well as market value limits. However, regulatory VaR excludes credit spread risks from the securitization portfolio,
which are treated instead under the securitization approach for regulatory purposes.
›
Refer to the “Risk management and control” section of the UBS Group Annual Report 2025, available under ”Annual reporting” at
ubs.com/investors
, for more information about management and monitoring of credit and market risk
Accounting policies
Refer to “Consolidation” in “Note
1 Summary of material accounting policies” in the “Consolidated financial
statements” section of the UBS Group Annual Report 2025, available under ”Annual reporting” at
ubs.com/investors
,
for information about accounting policies that relate to securitization activities.
Regulatory capital treatment of securitization structures
For banking book securitizations, the regulatory capital requirements are calculated using the following hierarchy of
approaches: the securitization internal ratings-based approach, the securitization external ratings-based approach or the
securitization standardized approach. Otherwise, a 1,250% risk weight is applied as a fallback. External ratings used in
regulatory capital calculations for securitization risk exposures in the banking book are obtained from Fitch, Moody’s or
S&P.
For trading book securitizations, the regulatory capital requirements are calculated using the market risk framework.
31 December 2025 Pillar 3 Report |
UBS Group | Securitizations 66
Securitization exposures in the banking and trading books
Semi-annual |
The SEC1 table shows the balance sheet carrying values of securitization exposures in the banking book as of
31 December 2025, 30 June 2025 and 31 December 2024, respectively. For synthetic securitizations, the amounts
disclosed reflect the net exposure at default on retained positions. The securitization activity is further broken down by
role (originator, sponsor or investor) and by securitization type (traditional or synthetic). The SEC3 and SEC4 tables provide
the regulatory capital requirements associated with the banking book securitization exposures differentiated by our role
in the securitization.
Securitization exposures in the trading book resulted in USD 0.1bn RWA as of 31 December 2025. Due to the low
materiality, we have discontinued the disclosure of the “SEC2: Securitization exposures in the trading book” table,
starting with the 30 June 2025 Pillar 3 Report, as permitted by the general principles of disclosure of the Swiss Financial
Market Supervisory Authority (FINMA) Ordinance on the Disclosure Obligations of Banks and Securities Firms.
›
Refer to “Market risk under standardized approach” in the “Market risk” section of this report for more information about RWA
of trading book securitizations
Development of securitization exposures in the second half of 2025
Compared with 30 June 2025, securitization exposures in the banking book decreased by USD 7.9bn to USD 23.6bn,
primarily due to the reduction in synthetic securitization in Personal & Corporate Banking.
SEC1: Securitization exposures in the banking book
1
Bank acts as originator
Bank acts as sponsor
Bank acts as investor
Total
USD m
Traditional
Synthetic
Subtotal
Traditional
Synthetic
Subtotal
Traditional
Synthetic
Subtotal
31.12.25
Asset classes
1
Retail (total)
2
of which: residential mortgage
3
of which: credit card receivables
4
of which: other retail exposures
2
5
Wholesale (total)
6
of which: loans to corporates or SME
7
of which: commercial mortgage
8
of which: lease and receivables
9
of which: other wholesale
10
Re-securitization
11
Total securitization / re-securitization
(including retail and wholesale)
30.6.25
Asset classes
1
Retail (total)
2
of which: residential mortgage
3
of which: credit card receivables
4
of which: other retail exposures
2
5
Wholesale (total)
6
of which: loans to corporates or SME
7
of which: commercial mortgage
8
of which: lease and receivables
9
of which: other wholesale
10
Re-securitization
11
Total securitization / re-securitization
(including retail and wholesale)
31.12.24
Asset classes
1
Retail (total)
2
of which: residential mortgage
3
of which: credit card receivables
4
of which: other retail exposures
2
5
Wholesale (total)
6
of which: loans to corporates or SME
7
of which: commercial mortgage
8
of which: lease and receivables
9
of which: other wholesale
10
Re-securitization
11
Total securitization / re-securitization
(including retail and wholesale)
1 From the second quarter of 2025 onward, we have refined our disclosure approach by reclassifying certain exposures where the bank acts as an investor previously reported under “other wholesale” into more
granular asset classes. 2 Includes unsecured consumer loans, solar leases and automobile loans.
31 December 2025 Pillar 3 Report |
UBS Group | Securitizations 67
SEC3: Securitization exposures in the banking book and associated regulatory capital requirements – bank acting as originator or as sponsor
USD m
Total
exposure
values
Exposure values (by RW bands)
Exposure values (by regulatory approach)
Total
RWA
RWA (by regulatory approach)
Total
capital
charge
after cap
Capital charge after cap
31.12.25
≤20% RW
>20% to
50% RW
>50% to
100%
RW
>100% to
<1,250%
RW
1,250%
RW
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
Asset classes
1
Total exposures
2
Traditional securitization
3
of which: securitization
4
of which: retail underlying
5
of which: wholesale
6
of which: re-securitization
7
of which: senior
8
of which: non-senior
9
Synthetic securitization
10
of which: securitization
11
of which: retail underlying
12
of which: wholesale
13
of which: re-securitization
14
of which: senior
15
of which: non-senior
30.6.25
Asset classes
1
Total exposures
2
Traditional securitization
3
of which: securitization
4
of which: retail underlying
5
of which: wholesale
6
of which: re-securitization
7
of which: senior
8
of which: non-senior
9
Synthetic securitization
10
of which: securitization
11
of which: retail underlying
12
of which: wholesale
13
of which: re-securitization
14
of which: senior
15
of which: non-senior
31 December 2025 Pillar 3 Report |
UBS Group | Securitizations 68
SEC3: Securitization exposures in the banking book and associated regulatory capital requirements – bank acting as originator or as sponsor (continued)
USD m
Total
exposure
values
Exposure values (by RW bands)
Exposure values (by regulatory approach)
Total
RWA
RWA (by regulatory approach)
Total
capital
charge
after cap
Capital charge after cap
31.12.24
≤20% RW
>20% to
50% RW
>50% to
100%
RW
>100% to
<1,250%
RW
1,250%
RW
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
Asset classes
1
Total exposures
2
Traditional securitization
3
of which: securitization
4
of which: retail underlying
5
of which: wholesale
6
of which: re-securitization
7
of which: senior
8
of which: non-senior
9
Synthetic securitization
10
of which: securitization
11
of which: retail underlying
12
of which: wholesale
13
of which: re-securitization
14
of which: senior
15
of which: non-senior
31 December 2025 Pillar 3 Report |
UBS Group | Securitizations 69
SEC4: Securitization exposures in the banking book and associated regulatory capital requirements – bank acting as investor
USD m
Total
exposure
values
Exposure values (by RW bands)
Exposure values (by regulatory approach)
Total
RWA
RWA (by regulatory approach)
Total capital
charge after
cap
Capital charge after cap
31.12.25
≤20% RW
>20% to
50% RW
>50% to
100%
RW
>100% to
<1,250%
RW
1,250%
RW
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
Asset classes
1
Total exposures
2
Traditional securitization
3
of which: securitization
4
of which: retail underlying
5
of which: wholesale
6
of which: re-securitization
7
of which: senior
8
of which: non-senior
9
Synthetic securitization
10
of which: securitization
11
of which: retail underlying
12
of which: wholesale
13
of which: re-securitization
14
of which: senior
15
of which: non-senior
30.6.25
Asset classes
1
Total exposures
2
Traditional securitization
3
of which: securitization
4
of which: retail underlying
5
of which: wholesale
6
of which: re-securitization
7
of which: senior
8
of which: non-senior
9
Synthetic securitization
10
of which: securitization
11
of which: retail underlying
12
of which: wholesale
13
of which: re-securitization
14
of which: senior
15
of which: non-senior
31 December 2025 Pillar 3 Report |
UBS Group | Securitizations 70
SEC4: Securitization exposures in the banking book and associated regulatory capital requirements – bank acting as investor (continued)
USD m
Total
exposure
values
Exposure values (by RW bands)
Exposure values (by regulatory approach)
Total
RWA
RWA (by regulatory approach)
Total capital
charge after
cap
Capital charge after cap
31.12.24
≤20% RW
>20% to
50% RW
>50% to
100%
RW
>100% to
<1,250%
RW
1,250%
RW
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
Asset classes
1
Total exposures
2
Traditional securitization
3
of which: securitization
4
of which: retail underlying
5
of which: wholesale
6
of which: re-securitization
7
of which: senior
8
of which: non-senior
9
Synthetic securitization
10
of which: securitization
11
of which: retail underlying
12
of which: wholesale
13
of which: re-securitization
14
of which: senior
15
of which: non-senior
31 December 2025 Pillar 3 Report |
UBS Group | Market risk 71
Market risk
Introduction
The final Basel III standards on the minimum capital requirements for market risk of the Basel Committee on Banking
Supervision, known as the Fundamental Review of the Trading Book (the FRTB) framework, entered into force in
Switzerland on 1 January 2025. We currently apply the standardized approach of the FRTB framework, in which the
minimum market risk capital requirements are computed on the basis of three components: the sensitivities-based
method (the SBM), the default risk charge (the DRC) and the residual risk add-on (the RRAO). The SBM captures the
delta, vega and curvature risk of the underlying trading positions, and the DRC captures the jump-to-default risk in
positions subject to equity and credit risk. In addition, positions that may not be adequately capitalized by the SBM and
the DRC also attract an RRAO charge. The new FRTB framework replaced the value-at-risk (VaR)- and stressed VaR-based
Basel 2.5 market risk framework.
General information about market risk
Annual |
The table below presents an overview of Pillar 3 disclosures that are provided separately in the UBS Group Annual
Report 2025, available under “Annual reporting” at
ubs.com/investors
.
MRA: Qualitative disclosure requirements related to market risk
Pillar 3 disclosure requirement
UBS Group Annual Report 2025 section
Disclosure
UBS Group Annual
Report 2025 page
number
Strategies and processes of the
bank for market risk
Risk management and control
–
Risk appetite framework
–
Market risk
–
management techniques
–
Market risk stress loss, Value -at-risk
94–96
112
112–115
Consolidated financial statements
–
Note 10 Derivative instruments
289–290
Structure and organization of the
market risk management function
Risk management and control
–
Risk governance
–
Key risks by business division and Group functions
–
Market risk
–
management techniques
92–94
92
112
Scope and nature of risk reporting
and measurement systems
Risk management and control
–
Internal risk reporting
–
Main sources of market risk, Overview of measurement,
monitoring and management techniques
94
111–112
Market risk under standardized approach
Semi-annual |
The MR1 table below shows the components of market risk risk-weighted assets (RWA) under the standardized
approach. Market risk RWA under the standardized approach decreased by USD 6.7bn to USD 23.8bn in the second half
of 2025, mainly driven by asset size and other movements in the Investment Bank’s Global Markets business and de-
risking within Non-core and Legacy. As we have introduced the standardized approach of the FRTB framework from
1 January 2025, no comparative-period information for 31 December 2024 is available.
›
Refer to the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for information about
previously published MR1 disclosures
MR1: Market risk under standardized approach
RWA in standardized approach
USD m
31.12.25
30.6.25
1
General interest rate risk
2
Equity risk
3
Commodity risk
4
Foreign exchange risk
5
Credit spread risk – non-securitizations
6
Credit spread risk – securitizations (non-correlation trading portfolio)
7
Credit spread risk – securitizations (correlation trading portfolio)
8
Default risk – non-securitizations
9
Default risk – securitizations (non-correlation trading portfolio)
10
Default risk – securitizations (correlation trading portfolio)
11
Residual risk add-on
12
Internal risk transfers
1
13
Total
1 Internal risk transfer charge refers to the capital requirement calculated for the risk transferred between the banking book and the trading book, typically for hedging purposes.
31 December 2025 Pillar 3 Report |
UBS Group | Operational risk 72
Operational risk
Introduction
The final Basel III standards on the operational risk capital requirements entered into force in Switzerland on 1 January
2025. With the adoption of these standards the standardized approach for determining operational risk regulatory capital
was implemented. The standardized approach is based on the business indicator component, which is derived from
average revenue-based indicators over a period of three years, and the internal loss multiplier, which is derived from
average historical operational losses over a period of ten years. The new framework replaced the advanced measurement
approach.
General information about operational risk
Annual |
The table below presents an overview of Pillar 3 disclosures that are provided separately in the UBS Group Annual
Report 2025, available under ”Annual reporting” at
ubs.com/investors
.
ORA: General qualitative information on a bank’s operational risk framework
Pillar 3 disclosure requirement
UBS Group Annual Report 2025 section
Disclosure
UBS Group Annual
Report 2025 page
number
Policies, frameworks and guidelines
for the management of operational
risk
Risk management and control
–
Risk appetite framework
–
Non-financial risk
–
–
Non-financial risk framework
–
Cybersecurity and information security
94–96
126–127
127
128–129
Structure and organization of the
operational risk management and
control function
Risk management and control
–
Risk governance
–
Non-financial risk framework
92–94
127
Operational risk measurement
system
Risk management and control
–
Non-financial risk capital measurement
129
Scope and context of the reporting
on operational risk to executive
management and to the Board of
Directors
Risk management and control
–
Internal risk reporting
–
Non-financial risk framework
94
127
Material inherent risks that the bank
is exposed to
Risk management and control
–
Top and emerging risks
–
Risk categories
–
Non-financial risk framework
88–89
90–91
127
Risk mitigation and risk transfer
used
Risk management and control
–
Risk appetite framework
–
Non-financial risk
–
–
Non-financial risk framework
94–96
126–127
127
Operational risk regulatory capital
Historical losses
Annual |
The OR1 table presents the aggregate operational losses incurred over the past 10 years, based on the accounting
date of the loss incurred.
Litigation, regulatory and similar matters (LRSM) notably contributed to the non-financial risk loss profile and related
bookings in 2025. In conformance with regulatory guidance, loss exclusions have been made on an exceptional basis and
mainly relate to residential mortgage-backed securities (RMBS) losses that were incurred prior to 2021. Losses from other
discontinued businesses within Non-Core and Legacy currently remain in the 10-year loss history window, with the
majority of these scheduled to roll off only after 2030, assuming no accelerated release.
›
Refer to “Note 17 Provisions and contingent liabilities” in the “Consolidated financial statements” section of the UBS Group
Annual Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more information about the portfolio of
disclosed LRSM
31 December 2025 Pillar 3 Report |
UBS Group | Operational risk 73
OR1: Historical losses
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
Ten-year
average
Using CHF 25,000 threshold
1
Total amount of operational losses net of
recoveries (no exclusions)
2
Total number of operational risk losses
3
Total amount of excluded operational risk
losses
4
Total number of exclusions
5
Total amount of operational losses net of
recoveries and net of excluded losses
Using CHF 125,000 threshold
6
Total amount of operational losses net of
recoveries (no exclusions)
7
Total number of operational risk losses
8
Total amount of excluded operational risk
losses
9
Total number of exclusions
10
Total amount of operational losses net of
recoveries and net of excluded losses
Details of operational risk capital calculation
11
Are losses used to calculate the ILM
(yes / no)?
yes
12
If “no” in row 11, is the exclusion of internal
loss data due to non-compliance with the
minimum loss data standards (yes / no)?
13
Loss event threshold: CHF 25,000 or CHF
125,000 for the operational risk capital
calculation if applicable
CHF 25,000
Business indicator and subcomponents
Annual |
The OR2 table outlines the business indicator and its sub-components that guide the operational risk capital
calculation.
OR2: Business indicator and subcomponents
2025
2024
2023
BI and its subcomponents
1
Interest, lease and dividend component
1a
Interest and lease income
1b
Interest and lease expense
1c
Interest earning assets
1d
Dividend income
2
Services component
2a
Fee and commission income
2b
Fee and commission expense
2c
Other operating income
2d
Other operating expense
3
Financial component
3a
Net P&L on the trading book
3b
Net P&L on the banking book
4
Business indicator (BI)
5
Business indicator component (BIC)
Disclosure on the BI:
6a
BI gross of excluded discontinued operations
6b
Reduction in BI due to excluded discontinued operations
31 December 2025 Pillar 3 Report |
UBS Group | Operational risk 74
Minimum required operational risk capital
Annual |
The OR3 table outlines the operational risk capital requirements based on the business indicator component and
the internal loss multiplier.
As of 31 December 2025, operational risk RWA amounted to USD 135.4bn, with the business indicator component of
USD 7.5bn resulting in operational risk RWA of USD 93.3bn. The internal loss multiplier (ILM) of 1.45 contributed an
additional USD 42.1bn operational risk RWA. The current application of the ILM is driving materially higher operational
risk RWA than we would expect under the corresponding implementations in the UK, the EU and the US, where
authorities are expected to set the ILM at 1. In that scenario, operational risk RWA would be driven by the revenue-based
business indicators alone, which would decrease operational risk RWA by USD 42.1bn.
OR3: Minimum required operational risk capital
31.12.25
1
Business indicator component (BIC)
2
Internal loss multiplier (ILM)
3
Minimum required operational risk capital (ORC)
4
Operational risk RWA (ORC*12.5)
Interest rate risk in the banking book
General information about interest rate risk in the banking book
Annual |
The table below presents an overview of Pillar 3 disclosures related to interest rate risk in the banking book (IRRBB)
that are provided separately in the UBS Group Annual Report 2025, available under “Annual reporting” at
ubs.com/investors
.
IRRBBA: IRRBB risk management objectives and policies
Pillar 3 disclosure requirement
UBS Group Annual Report 2025 section
Disclosure
UBS Group Annual
Report 2025 page
number
Definition of IRRBB for the purposes
of risk management and risk
measurement
Risk management and control
–
Sources of interest rate risk in the banking book
115
Description of the overall IRRBB
management and mitigation
strategies
Risk management and control
–
Interest rate risk in the banking book
–
and governance
115
Frequency of the calculation of the
key IRRBB measures and a
description of the specific measures
used to estimate the sensitivity to
IRRBB
Risk management and control
–
Interest rate risk in the banking book
–
and governance
115
Description of the interest rate
shock and stress scenarios
Risk management and control
–
Interest rate risk in the banking book
–
equity sensitivity, Net interest income sensitivity
116–117
Description of how the bank hedges
its IRRBB, including the associated
accounting treatment
Risk management and control
–
Interest rate risk in the banking book
–
changes on shareholders
’
116
Description of significant modelling
and parameter assumptions used in
the calculation of ΔEVE and ΔNII
Risk management and control
–
Interest rate risk in the banking book
–
assumption
115–116
Economic value and net interest income sensitivity
The interest rate risk sensitivity figures presented in the IRRBB1 table below represent the effect of six interest rate
scenarios defined by the Swiss Financial Market Supervisory Authority (FINMA) on the economic value of equity (EVE),
which represents the present value of future cash flows related to the banking book irrespective of accounting treatment.
EVE sensitivity excludes any modeled duration assigned to equity, goodwill, real estate and, as prescribed by FINMA, also
excludes additional tier 1 capital instruments that otherwise would be included under general Basel Committee on
Banking Supervision (BCBS) guidance.
31 December 2025 Pillar 3 Report |
UBS Group | Interest rate risk in the banking book 75
As of 31 December 2025, the “Parallel up” scenario, assuming all positions were measured at fair value, was the most
severe and would have resulted in a change in EVE of negative USD 8.1bn, or 8.9%, of our tier 1 capital (31 December
2024: negative USD 6.7bn, or 7.6%), 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 31 December 2025
would have been a decrease of approximately USD 0.8bn, or 0.9% (31 December 2024: USD 0.9bn or 1.0%), reflecting
the fact that the vast majority of our banking book is accrual accounted or subject to hedge accounting.
UBS also applies granular internal interest rate shock scenarios to its banking book positions to monitor its specific risk
profile.
The more adverse of the two parallel interest rate scenarios with regard to net interest income over the next 12 months
was the “Parallel down” scenario, resulting in a potential change of positive USD 1.3bn driven by contractual and
assumed flooring benefits under negative interest rates. Both “Parallel up” and “Parallel down” scenarios assume no
change to balance sheet size and product mix, stable foreign exchange rates, and no specific management action.
IRRBB1: Quantitative information on IRRBB
USD m
Delta EVE – Change of economic value of
equity
Delta NII – Change of Net interest
income
1
End of period
31.12.25
31.12.24
31.12.25
31.12.24
Parallel up
2
Parallel down
2
Steepener
3
Flattener
4
Short-term up
5
Short-term down
6
Maximum
7
End of period
31.12.25
31.12.24
Tier 1 capital
1 Disclosure of NII sensitivity is only required for the two parallel shock scenarios. The NII sensitivity estimates reflect the impact of immediate changes in interest rates, relative to constant rates, and assume no change
to balance sheet size and structure, constant foreign exchange rates and no specific management action. 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. 7 “Maximum” indicates the most adverse interest rate scenario as shown in the table.
IRRBBA1: Quantitative disclosures relating to the position structure and interest rate reset of IRRBB risk
As of 31.12.25
Volume
1
Average interest rate
repricing period (in years)
Maximum interest rate
repricing period (in years)
for exposures with
modeled interest rate
repricing dates
USD m, except where indicated
Total
of which: CHF
of which: EUR
of which: USD
Total
of which: CHF
Total
of which: CHF
Determined
repricing period
Amounts due from banks
Loans and advances to customers
Money market mortgages
Fixed-rate mortgages
Financial investments
Other receivables
2
Receivables from interest rate
derivatives
3
Amounts due to banks
Customer deposits
Medium-term notes
Bonds and covered bonds
4
Other liabilities
2
Liabilities from interest rate derivatives
3
Undetermined
repricing period
5
Amounts due from banks
Loans and advances to customers
Variable-rate mortgages
Other receivables on sight
Liabilities on sight in personal and
current accounts
Other liabilities on sight
Liabilities from customer deposits,
callable but not transferable
Total
1 The volume figures cover only banking book positions and are risk-based measures that differ from the accounting values on the IFRS Accounting Standards balance sheet. 2 Receivables and payables from securities
financing transactions are reported on a gross basis under Other receivables and Other liabilities, consistent with our interest rate risk management and monitoring process. 3 For technical reasons, receivables and
liabilities from interest rate derivatives are shown as gross figures. 4 Additional tier 1 capital instruments are excluded. 5 Swiss franc variable-rate mortgages and balances booked in UBS AG consolidated and
associated with loans and advances to banks with a combined volume below USD 1bn are reported under Loans and advances to customers, consistent with our interest rate risk management and monitoring process.
31 December 2025 Pillar 3 Report |
UBS Group | Interest rate risk in the banking book 76
IRRBBA1: Quantitative disclosures relating to the position structure and interest rate reset of IRRBB risk (continued)
As of 31.12.24
Volume
1
Average interest rate
repricing period (in years)
Maximum interest rate
repricing period (in years)
for exposures with
modeled interest rate
repricing dates
USD m, except where indicated
Total
of which: CHF
of which: EUR
of which: USD
Total
of which: CHF
Total
of which: CHF
Determined
repricing period
Amounts due from banks
Loans and advances to customers
Money market mortgages
Fixed-rate mortgages
Financial investments
Other receivables
2
Receivables from interest rate
derivatives
3
Amounts due to banks
Customer deposits
Medium-term notes
Bonds and covered bonds
4
Other liabilities
2
Liabilities from interest rate derivatives
3
Undetermined
repricing period
5
Amounts due from banks
Loans and advances to customers
Variable-rate mortgages
Other receivables on sight
Liabilities on sight in personal and
current accounts
Other liabilities on sight
Liabilities from customer deposits,
callable but not transferable
Total
1 The volume figures cover only banking book positions and are risk-based measures that differ from the accounting values on the IFRS Accounting Standards balance sheet. 2 Receivables and payables from securities
financing transactions are reported on a gross basis under Other receivables and Other liabilities, consistent with our interest rate risk management and monitoring process. 3 For technical reasons, receivables and
liabilities from interest rate derivatives are shown as gross figures. 4 Additional tier 1 capital instruments are excluded. 5 Swiss franc variable-rate mortgages and balances booked in UBS AG consolidated and
associated with loans and advances to banks with a combined volume below USD 1bn are reported under Loans and advances to customers, consistent with our interest rate risk management and monitoring process.
31 December 2025 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 77
Going and gone concern requirements and eligible
capital
Swiss SRB going and gone concern requirements and information
Quarterly |
The table below provides details of the Swiss systemically relevant bank (SRB) going and gone concern capital
requirements as required by the Swiss Financial Market Supervisory Authority (FINMA).
›
Refer to the “Capital management” section of the UBS Group Annual Report 2025, available under ”Annual reporting” at
ubs.com/investors
, for more information about capital management
Swiss SRB going and gone concern requirements and information
As of 31.12.25
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
of which: low-trigger loss-absorbing additional tier 1 capital
Required gone concern capital
Total gone concern loss-absorbing capacity
4,5,6
of which: base requirement including add-ons for market share and LRD
7
7
Eligible gone concern capital
Total gone concern loss-absorbing capacity
Total tier 2 capital
8
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 1.64% for risk-weighted assets (RWA) and 0.50% for leverage ratio denominator (LRD), of which 20 basis points for RWA reflect a Pillar 2 capital add-on for the residual exposure
(after collateral mitigation) to hedge funds, private equity and family offices, effective 1 January 2025. 2 Includes the Pillar 2 add-on for the residual exposure (after collateral mitigation) to hedge funds, private
equity and family offices of 0.14% for CET1 capital and 0.06% 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; 4.36% 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 Systemically important banks (SIBs) are subject to 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 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. 8 Reflects an add-back of 45% of unrealized gains from financial assets measured at fair
value through other comprehensive income. Such gains do not qualify as CET1 capital but 45% of these gains can be recognized as tier 2 capital.
31 December 2025 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 78
Countercyclical capital buffer
Semi-annual |
countercyclical capital buffer (the CCyB) requirement applicable to private-sector exposures in UBS Group
AG consolidated. In the second half of 2025, the CCyB for Spain was increased to 0.5%, effective from 1 October 2025.
Our bank-specific CCyB requirement decreased by 2 basis points to 11 basis points, primarily driven by a reduction in
RWA.
›
Refer to the “Risk management and control” section of the UBS Group Annual Report 2025, available under ”Annual reporting” at
ubs.com/investors
, for more information about the methodology of geographical allocation used
CCyB1: Geographical distribution of credit exposures used in the countercyclical capital buffer
USD m, except where indicated
31.12.25
Geographical breakdown
Countercyclical capital
buffer rate, %
Risk-weighted assets
used in the computation
of the countercyclical
capital buffer
1
Bank-specific
countercyclical capital
buffer rate, %
Countercyclical capital
buffer amount
Australia
Belgium
France
Germany
Hong Kong SAR
Luxembourg
Netherlands
South Korea
Spain
Sweden
United Kingdom
Sum
Total
1 Includes private-sector exposures in the countries that are Basel Committee on Banking Supervision (BCBS)-member jurisdictions, under the following categories: “Credit risk”, “Counterparty credit risk”, “Settlement
risk”, “Securitization exposures in the banking book” and “Amounts below thresholds for deduction (250% risk weight)”, as well as the corresponding trading book charges included under “Market risk”.
31 December 2025 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 79
Balance sheet reconciliation
Semi-annual |
The CC2 table below provides a reconciliation of the balance sheet under IFRS Accounting Standards to the
balance sheet according to the regulatory scope of consolidation as defined by the Basel Committee on Banking
Supervision (the BCBS) and FINMA. Lines in the balance sheet under the regulatory scope of consolidation are expanded
and referenced where relevant to display all components that are used in the CC1 table in this section.
›
Refer to “LIA: Explanation of the differences between the IFRS Accounting Standards and regulatory scopes of consolidation” in
the “Linkage between financial statements and regulatory exposures” section of this report for more information about the most
significant entities consolidated under IFRS Accounting Standards but not included in the regulatory scope of consolidation
CC2: Reconciliation of accounting balance sheet to balance sheet under the regulatory scope of consolidation
As of 31.12.25
Balance sheet in
accordance with
IFRS Accounting
Standards scope
of consolidation
Effect of
deconsolidated,
proportionally
consolidated or
additional consolidated
entities for regulatory
consolidation
Balance sheet in
accordance with
regulatory scope of
consolidation
References
1
USD m, except where indicated
Assets
Cash and balances at central banks
Amounts due from banks
Receivables from securities financing transactions measured at amortized cost
Cash collateral receivables on derivative instruments
Loans and advances to customers
Other financial assets measured at amortized cost
Total financial assets measured at amortized cost
Financial assets at fair value held for trading
of which: assets pledged as collateral that may be sold or repledged by counterparties
Derivative financial instruments
Brokerage receivables
Financial assets at fair value not held for trading
Total financial assets measured at fair value through profit or loss
Financial assets measured at fair value through other comprehensive income
Investments in associates
of which: goodwill
Property, equipment and software
Goodwill and intangible assets
of which: goodwill
of which: intangible assets
Deferred tax assets
of which: deferred tax assets recognized for tax loss carry-forwards and unused tax credits
carried forward
of which: deferred tax assets on temporary differences
Other non-financial assets
of which: net defined benefit pension and other post-employment assets
Total assets
31 December 2025 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 80
CC2: Reconciliation of accounting balance sheet to balance sheet under the regulatory scope of consolidation
(continued)
As of 31.12.25
Balance sheet in
accordance with
IFRS Accounting
Standards scope
of consolidation
Effect of
deconsolidated,
proportionally
consolidated or
additional consolidated
entities for regulatory
consolidation
Balance sheet in
accordance with
regulatory scope of
consolidation
References
1
USD m, except where indicated
Liabilities
Amounts due to banks
Payables from securities financing transactions measured at amortized cost
Cash collateral payables on derivative instruments
Customer deposits
Debt issued measured at amortized cost
of which: amount eligible for high-trigger loss-absorbing additional tier 1 capital
Other financial liabilities measured at amortized cost
Total financial liabilities measured at amortized cost
Financial liabilities at fair value held for trading
Derivative financial instruments
Brokerage payables designated at fair value
Debt issued designated at fair value
Other financial liabilities designated at fair value
Total financial liabilities measured at fair value through profit or loss
Provisions and contingent liabilities
Other non-financial liabilities
of which: amount eligible for high-trigger loss-absorbing capital (Deferred Contingent
Capital Plan (DCCP))
2
of which: deferred tax liabilities related to goodwill
of which: deferred tax liabilities related to other intangible assets
Total liabilities
Equity
Share capital
Share premium
Treasury shares
Retained earnings
Other comprehensive income recognized directly in equity, net of tax
of which: unrealized gains / (losses) from cash flow hedges
Equity attributable to shareholders
Equity attributable to non-controlling interests
Total equity
Total liabilities and equity
1 References link the lines of this table to the respective reference numbers provided in the “References” column in the CC1 table in this section. 2 The IFRS Accounting Standards carrying amount of total DCCP
liabilities was USD 2,130m as of 31 December 2025. Refer to the “Compensation” section of the UBS Group Annual Report 2025, available under ”Annual reporting” at ubs.com/investors, for more information
about the DCCP.
31 December 2025 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 81
Composition of regulatory capital
Semi-annual |
The CC1 table below provides the composition of capital in the format prescribed by the BCBS and FINMA, and
is based on BCBS Basel III rules, unless stated otherwise. Reference is made to items reconciling to the balance sheet
under the regulatory scope of consolidation as disclosed in the CC2 table in this section.
›
Refer to the documents titled “Capital and total loss-absorbing instruments of UBS Group AG consolidated, UBS AG consolidated
and standalone – Key features” and “UBS Group AG consolidated capital instruments and TLAC-eligible senior unsecured debt”,
available under “Bondholder information” at
ubs.com/investors
, for an overview of the main features of our regulatory capital
instruments, as well as their full terms and conditions
CC1: Composition of regulatory capital
As of 31.12.25
Amounts
References
1
USD m, except where indicated
Common Equity Tier 1 capital: instruments and reserves
1
Directly issued qualifying common share (and equivalent for non-joint stock companies) capital plus related stock surplus
2
Retained earnings
3
Accumulated other comprehensive income (and other reserves)
5
Common share capital issued by subsidiaries and held by third parties (amount allowed in group CET1)
6
Common Equity Tier 1 capital before regulatory adjustments
Common Equity Tier 1 capital: regulatory adjustments
7
Prudent valuation adjustments
8
Goodwill (net of related tax liability)
9
Other intangibles other than mortgage servicing rights (net of related tax liability)
10
Deferred tax assets that rely on future profitability, excluding those arising from temporary differences (net of related tax liability)
2
11
Cash flow hedge reserve
12
Shortfall of provisions to expected losses
13
Securitization gain on sale
14
Gains and losses due to changes in own credit risk on fair valued liabilities
15
Defined benefit pension fund net assets
16
Investments in own shares (if not already subtracted from paid-in capital on reported balance sheet)
3
17
Reciprocal cross-holdings in common equity
17a
17b
18
Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, where the bank
does not own more than 10% of the issued share capital (amount above 10% threshold)
19
Significant investments in the common stock of banking, financial and insurance entities that are outside the scope of regulatory consolidation
(amount above 10% threshold)
20
Mortgage servicing rights (amount above 10% threshold)
21
Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability)
22
Amount exceeding the 15% threshold
23
of which: significant investments in the common stock of financials
24
of which: mortgage servicing rights
25
of which: deferred tax assets arising from temporary differences
26
National specific regulatory adjustments
26a
of which: adjustments to financial statements in accordance with a recognized international accounting standard
26b
Other adjustments
4
27
Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2 to cover deductions
28
Total regulatory adjustments to Common Equity Tier 1
29
Common Equity Tier 1 capital (CET1)
31 December 2025 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 82
CC1: Composition of regulatory capital (continued)
As of 31.12.25
Amounts
References
1
USD m, except where indicated
Additional Tier 1 capital: instruments
30
Directly issued qualifying additional Tier 1 instruments plus related stock surplus
31
of which: classified as equity under applicable accounting standards
32
of which: classified as liabilities under applicable accounting standards
33
Directly issued capital instruments subject to phase-out from additional Tier 1
34
Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by subsidiaries and held by third parties (amount allowed in
group AT1)
36
Additional Tier 1 capital before regulatory adjustments
Additional Tier 1 capital: regulatory adjustments
37
Investments in own additional Tier 1 instruments
5
38
Reciprocal cross-holdings in additional Tier 1 instruments
38a
Qualified holdings where a significant influence is exercised with other owners (AT1 instruments)
38b
Immaterial investments (AT1 instruments)
39
Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, where the bank
does not own more than 10% of the issued common share capital of the entity (amount above 10% threshold)
40
Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation
41
National specific regulatory adjustments
42
Regulatory adjustments applied to additional Tier 1 due to insufficient Tier 2 to cover deductions
42a
Regulatory adjustments applied to CET1 capital due to insufficient additional Tier 1 to cover deductions
43
Total regulatory adjustments to additional Tier 1 capital
44
Additional Tier 1 capital (AT1)
45
Tier 1 capital (T1 = CET1 + AT1)
Tier 2 capital: instruments and provisions
46
Directly issued qualifying Tier 2 instruments plus related stock surplus
6
48
Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 34) issued by subsidiaries and held by third parties (amount
allowed in group Tier 2)
50
Provisions
51
Tier 2 capital before regulatory adjustments
Tier 2 capital: regulatory adjustments
52
Investments in own Tier 2 instruments
53
Reciprocal cross-holdings in Tier 2 instruments and other TLAC liabilities
53a
Qualified holdings where a significant influence is exercised with other owners (T2 instruments and other TLAC instruments)
53b
Immaterial investments (T2 instruments and other TLAC instruments)
54
Investments in the capital and other TLAC liabilities of banking, financial and insurance entities that are outside the scope of regulatory
consolidation, where the bank does not own more than 10% of the issued common share capital of the entity (amount above 10% threshold)
55
Significant investments in the capital and other TLAC liabilities of banking, financial and insurance entities that are outside the scope of
regulatory consolidation (net of eligible short positions)
56
National specific regulatory adjustments
56a
Excess of the adjustments, which are allocated to the AT1 capital
57
Total regulatory adjustments to Tier 2 capital
58
Tier 2 capital (T2)
59
Total regulatory capital (TC = T1 + T2)
60
Total risk-weighted assets
Capital ratios and buffers
61
Common Equity Tier 1 (as a percentage of risk-weighted assets)
62
Tier 1 (as a percentage of risk-weighted assets)
63
Total capital (as a percentage of risk-weighted assets)
64
Institution-specific buffer requirement (capital conservation buffer plus countercyclical buffer requirements plus higher loss absorbency
requirement, expressed as a percentage of risk-weighted assets)
7
65
of which: capital conservation buffer requirement
66
of which: bank-specific countercyclical buffer requirement
67
of which: higher loss absorbency requirement
68
Common Equity Tier 1 (as a percentage of risk-weighted assets) available after meeting the bank’s minimum capital requirements
Amounts below the thresholds for deduction (before risk weighting)
72
Non-significant investments in the capital and other TLAC liabilities of other financial entities
73
Significant investments in the common stock of financial entities
74
Mortgage servicing rights (net of related tax liability)
75
Deferred tax assets arising from temporary differences (net of related tax liability)
Applicable caps on the inclusion of provisions in Tier 2
76
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardized approach (prior to application of cap)
77
Cap on inclusion of provisions in Tier 2 under standardized approach
78
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based approach (prior to application of cap)
79
Cap for inclusion of provisions in Tier 2 under internal ratings-based approach
1 References link the lines of this table to the respective reference numbers provided in the “References” column in the CC2 table in this section. 2 IFRS Accounting Standards netting for deferred tax assets and
liabilities is reversed for items deducted from CET1 capital. 3 Includes USD 3,000m capital reserves for expected future share repurchases. 4 Includes USD 1,031m in a compensation-related charge for regulatory
capital purposes. 5 Under IFRS Accounting Standards, debt issued and subsequently repurchased is treated as extinguished. 6 Reflects an add-back of 45% of unrealized gains from financial assets measured at
fair value through other comprehensive income. Such gains do not qualify as CET1 capital but 45% of these gains can be recognized as tier 2 capital. 7 BCBS requirements are exceeded by UBS’s Swiss SRB
requirements. Refer to the “Capital management“ section of the UBS Group Annual Report 2025, available under ”Annual reporting” at ubs.com/investors, for more information about the Swiss SRB requirements.
31 December 2025 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 83
Prudent valuation adjustments
Annual |
The PV1 table below provides a breakdown of prudent valuation adjustments (PVAs) to common equity tier 1
capital. These adjustments are incremental to those made under IFRS Accounting Standards, which include adjustments
for liquidity and model uncertainty, as well as credit, funding and debit valuation adjustments.
Instruments that are measured as part of a portfolio of combined long and short positions are valued at mid-market levels
in an effort to ensure consistent valuation of the long and short component risks. A liquidity valuation adjustment is then
made to the overall net long or short exposure to move the fair value to bid or offer, as appropriate, reflecting current
market liquidity levels.
Uncertainties associated with the use of model-based valuations are incorporated into the measurement of fair value
through the use of model reserves. These reserves reflect the amounts that the Group estimates should be deducted from
valuations produced directly by models to incorporate uncertainties in the relevant modeling assumptions, in the model
and market inputs used, or in the calibration of the model output to adjust for known model deficiencies.
In an effort to ensure compliance with the prudent valuation requirements, UBS has established systems, controls and
governance around the valuation of positions measured at fair value.
As of 31 December 2025, the PVA had decreased by USD 19m to USD 148m compared with 2025, driven by lower
exposure from exits, mainly in Non-core and Legacy.
›
Refer to “Note 20 Fair value measurement” in the “Consolidated financial statements” section of the UBS Group Annual Report
2025, available under “Annual reporting” at
ubs.com/investors
, for more information about the valuation adjustments in the
financial accounts and related governance
PV1: Prudent valuation adjustments (PVA)
USD m
Equity
Interest rates
FX
Credit
Commodities
Total
Of which: In
the trading
book
Of which: In
the banking
book
As of 31.12.25
1
Closeout uncertainty, of which:
(24)
(17)
0
(81)
0
(121)
(64)
(58)
2
Mid-market value
3
Closeout cost
4
Concentration
(24)
(17)
0
(81)
0
(121)
(64)
(58)
5
Early termination
6
Model risk
7
Operational risk
8
Investing and funding costs
9
Unearned credit spreads
0
0
0
(27)
0
(27)
(27)
0
10
Future administrative costs
11
Other
12
Total adjustment
1
(24)
(17)
0
(108)
0
(148)
(91)
(58)
As of 31.12.24
1
Closeout uncertainty, of which:
(26)
(23)
0
(69)
0
(118)
(59)
(58)
2
Mid-market value
3
Closeout cost
4
Concentration
(26)
(23)
0
(69)
0
(118)
(59)
(58)
5
Early termination
6
Model risk
7
Operational risk
8
Investing and funding costs
9
Unearned credit spreads
0
0
0
(49)
0
(49)
(49)
0
10
Future administrative costs
11
Other
12
Total adjustment
1
(26)
(23)
0
(118)
0
(167)
(109)
(58)
1 Valuation adjustments already recognized under the financial accounting standards were USD 820m as of 31 December 2025 (31 December 2024: USD 1,428m), of which valuation adjustments account for
USD 524m (31 December 2024: USD 746m) for liquidity and USD 217m (31 December 2024: USD 460m) for model uncertainty. Refer to “Note 20 Fair Value measurement” in the “Consolidated financial statements”
section of the UBS Group Annual Report 2025, available under “Annual reporting” at ubs.com/investors, for more information.
31 December 2025 Pillar 3 Report |
UBS Group | Total loss-absorbing capacity 84
Total loss-absorbing capacity
Resolution group – composition of total loss-absorbing capacity
Semi-annual |
The TLAC1 table below is based on Basel Committee on Banking Supervision rules and only applicable to
UBS Group AG as the ultimate parent entity of the defined UBS resolution group, to which, in case of resolution,
resolution tools (e.g. a bail in) are expected to be applied.
In the second half of 2025, our eligible additional tier 1 (AT1) instruments increased by USD 0.9bn, mainly driven by the
issuance of new AT1 capital instruments equivalent to USD 2.8bn, partly offset by the call of AT1 capital instruments
equivalent to USD 1.9bn.
Non-regulatory capital elements of total loss-absorbing capacity (TLAC) decreased by USD 3.3bn, mainly due to the
redemption of USD 7.0bn equivalent of TLAC-eligible senior unsecured debt instruments (including one instrument, ISIN
US902613AU26, that ceased to be eligible when we issued a notice of redemption of the instrument in the fourth quarter
of 2025) and USD 5.8bn of TLAC-eligible senior unsecured debt instruments that we repurchased in November 2025
under tender offers. In addition, there was a USD 1.7bn decrease related to the last non-Basel III-compliant tier 2
instrument and one TLAC-eligible senior unsecured debt instrument ceasing to be eligible as non-regulatory capital
elements of TLAC, as those instruments entered the final year before maturity. These effects were partly offset by new
issuances of USD 11.2bn equivalent of TLAC-eligible senior unsecured debt instruments.
TLAC1: TLAC composition for G-SIBs (at resolution group level)
31.12.25
30.6.25
31.12.24
USD m, except where indicated
Regulatory capital elements of TLAC and adjustments
1
Common Equity Tier 1 capital (CET1)
2
Additional Tier 1 capital (AT1) before TLAC adjustments
3
AT1 ineligible as TLAC as issued out of subsidiaries to third parties
4
Other adjustments
5
Total AT1 instruments eligible under the TLAC framework
6
Tier 2 capital (T2) before TLAC adjustments
1
7
Amortized portion of T2 instruments where remaining maturity > 1 year
8
T2 capital ineligible as TLAC as issued out of subsidiaries to third parties
9
Other adjustments
10
Total T2 instruments eligible under the TLAC framework
11
TLAC arising from regulatory capital
Non-regulatory capital elements of TLAC
12
External TLAC instruments issued directly by the bank and subordinated to excluded liabilities
13
External TLAC instruments issued directly by the bank which are not subordinated to excluded liabilities but meet all other TLAC
term sheet requirements
14
of which: amount eligible as TLAC after application of the caps
15
External TLAC instruments issued by funding vehicles prior to 1 January 2022
16
Eligible ex ante commitments to recapitalize a G-SIB in resolution
17
TLAC arising from non-regulatory capital instruments before adjustments
Non-regulatory capital elements of TLAC: adjustments
18
TLAC before deductions
19
Deductions of exposures between multiple-point-of-entry (MPE) resolution groups that correspond to items eligible for TLAC (not
applicable to SPE G-SIBs)
20
Deduction of investments in own other TLAC liabilities
2
21
Other adjustments to TLAC
22
TLAC after deductions
Risk-weighted assets and leverage exposure measure for TLAC purposes
23
Total risk-weighted assets adjusted as permitted under the TLAC regime
24
Leverage exposure measure
TLAC ratios and buffers
25
TLAC (as a percentage of risk-weighted assets adjusted as permitted under the TLAC regime)
26
TLAC (as a percentage of leverage exposure)
27
CET1 (as a percentage of risk-weighted assets) available after meeting the resolution group’s minimum capital and TLAC
requirements
28
Institution-specific buffer requirement (capital conservation buffer plus countercyclical buffer requirements plus higher loss
absorbency requirement, expressed as a percentage of risk-weighted assets)
29
of which: capital conservation buffer requirement
30
of which: bank-specific countercyclical buffer requirement
31
of which: higher loss absorbency requirement
1 Reflects an add-back of 45% of unrealized gains from financial assets measured at fair value through other comprehensive income. Such gains do not qualify as CET1 capital but 45% of these gains can be recognized
as tier 2 capital. 2 Under IFRS Accounting Standards, debt issued and subsequently repurchased is treated as extinguished.
31 December 2025 Pillar 3 Report |
UBS Group | Total loss-absorbing capacity 85
Resolution entity – creditor ranking at legal entity level
Semi-annual |
The TLAC3 table below provides an overview of the creditor ranking structure of the resolution entity,
UBS Group AG, on a standalone basis.
UBS Group AG issues loss-absorbing AT1 capital instruments and TLAC-eligible senior unsecured debt.
UBS Group AG grants Deferred Contingent Capital Plan awards to UBS Group employees which qualify as Basel III AT1
capital on a UBS Group consolidated basis and totaled USD 2,365m as of 31 December 2025 (30 June 2025:
USD 2,405m). The related liabilities of UBS Group AG on a standalone basis of USD 1,727m (30 June 2025: USD 1,589m)
are not included in the table below, as these do not give rise to any current claims until the awards are legally vested.
As of 31 December 2025, the TLAC available on a UBS Group AG consolidated basis amounted to USD 187,307m
(30 June 2025: USD 191,171m).
›
Refer to the UBS Group AG Standalone financial statements and regulatory information for the year ended 31 December 2025,
available under “Holding company and significant regulated subsidiaries and sub-groups” at
ubs.com/investors
, for more
information about UBS Group AG standalone for the year ended 31 December 2025
›
Refer to “Bondholder information” at
ubs.com/investors
›
Refer to the “TLAC1: TLAC composition for G-SIBs (at resolution group level)” table in this section for more information about
TLAC for UBS Group AG consolidated
TLAC3: Creditor ranking at legal entity level for the resolution entity, UBS Group AG
As of 31.12.25
Creditor ranking
Total
USD m
1
2
3
1
Description of creditor ranking
Common shares
(most junior)
2
Additional Tier 1
Bail-in debt and
pari passu
liabilities
(most senior)
2
Total capital and liabilities net of credit risk mitigation
1
3
Subset of row 2 that are excluded liabilities
4
Total capital and liabilities less excluded liabilities (row 2 minus row 3)
3,4
5,6,7
5
Subset of row 4 that are potentially eligible as TLAC
8
6
Subset of row 5 with 1 year ≤ residual maturity < 2 years
9
7
Subset of row 5 with 2 years ≤ residual maturity < 5 years
8
Subset of row 5 with 5 years ≤ residual maturity < 10 years
9
Subset of row 5 with residual maturity ≥ 10 years, but excluding perpetual securities
10
Subset of row 5 that is perpetual securities
1 No credit risk mitigation is applied to capital and liabilities for UBS Group AG standalone. 2 Common shares including the associated reserves are equal to the equity of UBS Group AG standalone attributable to
shareholders. 3 Includes interest expense accrued on AT1 capital instruments, which is not eligible as TLAC. 4 AT1 instruments in a total amount of USD 1.9bn were redeemed and AT1 instruments in a total
amount of USD 2.8bn were issued during the six months ended 31 December 2025. 5 Includes interest expense accrued on bail-in debt, interest-bearing liabilities that consist of loans from UBS AG and UBS
Switzerland AG, negative replacement values, and tax and other liabilities that are not excluded liabilities under Swiss law and that rank pari passu to bail-in debt. 6 Bail-in debt of USD 13.9bn was redeemed and
bail-in debt of USD 11.3bn was issued during the six months ended 31 December 2025. 7 Includes bail-in debt in the amount of USD 1.8bn, the call of which was announced on 19 December 2025 and executed
on 12 January 2026. 8 Bail-in debt of USD 7.4bn has residual maturity of less than one year and is not potentially eligible as TLAC. 9 Includes bail-in debt in the amount of USD 1.3bn the call of which was
announced on 8 January 2026 and executed on 30 January 2026, USD 2bn the call of which was announced on 15 January 2026 and executed on 2 February 2026 and USD 0.05bn the call of which was announced
on 23 January 2026 and executed on 9 February 2026.
Leverage ratio
Basel III leverage ratio
Quarterly |
The Basel Committee on Banking Supervision (the BCBS) leverage ratio, as summarized in the “KM1: Key metrics“
table in section 2 of this report, is calculated by dividing the period-end tier 1 capital by the period-end leverage ratio
denominator (the LRD).
The LRD consists of on-balance sheet assets and off-balance sheet items based on IFRS Accounting Standards. Derivative
exposures are adjusted for netting of replacement values and eligible cash variation margin, potential future exposure
and net notional amounts for written credit derivatives. The LRD also includes an additional charge for counterparty credit
risk related to securities financing transactions (SFTs).
On-balance sheet items (excluding derivatives and securities financing transactions (SFTs) but including collateral), as
disclosed in the LR2 table, differ from IFRS Accounting Standards total assets due to adjustments for the application of
the regulatory scope of consolidation and due to the carrying amounts for derivative financial instruments and SFTs,
which are removed and replaced with exposures, as per the leverage ratio rules, in separate line items in the LR2 table.
31 December 2025 Pillar 3 Report |
UBS Group | Leverage ratio 86
Difference between the Swiss systemically relevant bank leverage ratio and the BCBS leverage ratio
The LRD is the same under Swiss systemically relevant bank (SRB) and BCBS rules. However, there is a difference in the
capital numerator between the two frameworks. Under BCBS rules only common equity tier 1 and additional tier 1 (AT1)
capital are included in the numerator. Under Swiss SRB rules UBS is required to meet going and gone concern leverage
ratio requirements. Therefore, depending on the requirement, the numerator includes tier 1 capital instruments, tier 2
capital instruments and / or total loss-absorbing capacity-eligible senior unsecured debt.
The difference between the total leverage ratio exposures of USD 1,622.4bn and total consolidated assets as per the
published financial statements of USD 1,617.4bn was USD 5.0bn, reflecting the sum of lines 2 to 12 in the following
table.
LR1: Summary comparison of accounting assets vs leverage ratio exposure measure
1
USD m
31.12.25
30.9.25
31.12.24
1
Total consolidated assets as per published financial statements
2
Adjustment for investments in banking, financial, insurance or commercial entities that are consolidated for accounting
purposes but outside the scope of regulatory consolidation
3
Adjustment for securitized exposures that meet the operational requirements for the recognition of risk transference
4
Adjustments for temporary exemption of central bank reserves (if applicable)
5
Adjustment for fiduciary assets recognized on the balance sheet pursuant to the operative accounting framework but excluded
from the leverage ratio exposure measure
6
Adjustments for regular-way purchases and sales of financial assets subject to trade date accounting
7
Adjustments for eligible cash pooling transactions
8
Adjustments for derivative financial instruments
9
Adjustment for securities financing transactions (i.e. repos and similar secured lending)
10
Adjustment for off-balance sheet items (i.e. conversion to credit equivalent amounts of off-balance sheet exposures)
11
Adjustments for prudent valuation adjustments and specific and general provisions which have reduced Tier 1 capital
2
12
Other adjustments
12a
of which: asset amounts deducted in determining Tier 1 capital
12b
of which: consolidated entities under the regulatory scope of consolidation
13
Leverage ratio exposure
1 The comparative-period information for 31.12.2024 has been amended to reflect the LR1 disclosure format effective from 1 January 2025 under the final Basel III standards. Refer to the 31 December 2024 Pillar 3
report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information about previously published LR1 disclosures. 2 Reflects the shortfall to expected losses on advanced internal ratings-based
(IRB) portfolio less general provisions. Deduction items other than the IRB shortfall are disclosed in row 12a.
31 December 2025 Pillar 3 Report |
UBS Group | Leverage ratio 87
LR2: Leverage ratio common disclosure
1
USD m, except where indicated
31.12.25
30.9.25
31.12.24
On-balance sheet exposures
1
On-balance sheet items (excluding derivatives and securities financing transactions (SFTs), but including collateral)
2
Gross-up for derivatives collateral provided where deducted from balance sheet assets pursuant to the operative accounting
framework
3
(Deductions of receivable assets for cash variation margin provided in derivatives transactions)
4
(Adjustment for securities received under securities financing transactions that are recognised as an asset)
5
(Specific and general provisions associated with on-balance sheet exposures that are deducted from Tier 1 capital)
6
(Asset amounts deducted in determining Tier 1 capital)
7
Total on-balance sheet exposures (excluding derivatives and SFTs)
Derivative Exposures
8
Replacement cost associated with all derivatives transactions (where applicable net of eligible cash variation margin and/or
with bilateral netting)
9
Add-on amounts for potential future exposure associated with all derivatives transactions
10
(Exempted qualifying central counterparty (QCCP) leg of client-cleared trade exposures)
11
Adjusted effective notional amount of all written credit derivatives
2
12
(Adjusted effective notional offsets and add-on deductions for written credit derivatives)
3
13
Total derivative exposures
Securities financing transaction exposures
14
Gross SFT assets (with no recognition of netting), after adjusting for sale accounting transactions
15
(Netted amounts of cash payables and cash receivables of gross SFT assets)
16
Counterparty credit risk exposure for SFT assets
17
Agent transaction exposures
18
Total securities financing transaction exposures
Other off-balance sheet exposures
19
Off-balance sheet exposure at gross notional amount
20
(Adjustments for conversion to credit equivalent amounts)
21
(Specific and general provisions associated with off-balance sheet exposures deducted in determining Tier 1 capital)
22
Total off-balance sheet items
Capital and total exposures (leverage ratio denominator), phase-in
23
Tier 1 capital
24
Total exposures (leverage ratio denominator)
Leverage ratio
25
4
25a
Basel III leverage ratio (%) (excluding the impact of any applicable temporary exemption of central bank reserves)
4
26
Leverage ratio minimum requirement (%)
5
27
Leverage ratio buffers (%)
5
Disclosure of mean values
28
Mean value of gross SFT assets, after adjustment for sale accounting transactions and netted of amounts of associated cash
payables and cash receivables
29
Quarter-end value of gross SFT assets, after adjustment for sale accounting transactions and netted of amounts of associated
cash payables and cash receivables
30
Total exposures (including the impact of any applicable temporary exemption of central bank reserves) incorporating mean
values from row 28 of gross SFT assets (after adjustment for sale accounting transactions and netted of amounts of associated
cash payables and cash receivables)
4
30a
Total exposures (excluding the impact of any applicable temporary exemption of central bank reserves) incorporating mean
values from row 28 of gross SFT assets (after adjustment for sale accounting transactions and netted of amounts of
associated cash payables and cash receivables)
4
31
Basel III leverage ratio (%) (including the impact of any applicable temporary exemption of central bank reserves)
incorporating mean values from row 28 of gross SFT assets (after adjustment for sale accounting transactions and netted of
amounts of associated cash payables and cash receivables)
4
31a
Basel III leverage ratio (%) (excluding the impact of any applicable temporary exemption of central bank reserves)
incorporating mean values from row 28 of gross SFT assets (after adjustment for sale accounting transactions and netted of
amounts of associated cash payables and cash receivables)
4
1 The comparative-period information for 31.12.2024 has been amended to reflect the LR2 disclosure format effective from 1 January 2025 under the final Basel III standards. Specifically, collateral for derivative
positions has been included in row 1 of the LR2 table and has been adjusted as applicable under leverage ratio rules in the subsequent rows. Refer to the 31 December 2024 Pillar 3 report, available under “Pillar 3
disclosures” at ubs.com/investors, for more information about previously published LR2 disclosures. 2 Includes protection sold, including agency transactions. 3 Protection sold can be offset with protection bought
on the same underlying reference entity, provided that the conditions according to the Basel III leverage ratio framework and disclosure requirements are met. 4 There is currently no temporary exemption of central
bank reserves for UBS. 5 The buffer is based on Swiss SRB requirements, as per the Capital Adequacy Ordinance. These requirements are above BCBS requirements for G-SIBs.
31 December 2025 Pillar 3 Report |
UBS Group | Leverage ratio 88
LRD development during the fourth quarter of 2025
Quarterly |
During the fourth quarter of 2025, the LRD decreased by USD 18.0bn to USD 1,622.4bn, driven by an USD 18.9bn
decrease from asset size and other movements, partly offset by a USD 0.8bn increase from currency effects.
On-balance sheet exposures (excluding derivatives and securities financing transactions) increased by USD 0.2bn, mainly
due to currency effects of USD 1.3bn, partly offset by asset size and other movements of USD 1.1bn. The asset size
movement mainly reflected decreases in cash and balances at central banks in Group Treasury and trading assets in the
Investment Bank, driven by a decrease in inventory held to hedge client positions due to lower levels of client activity.
These decreases were partly offset by increases in lending assets, mainly driven by net new loans in Global Wealth
Management, and high-quality liquid asset portfolio securities in Group Treasury.
Derivative exposures decreased by USD 10.9bn, mainly due to asset size and other movements of USD 10.7bn and
currency effects of USD 0.2bn. The asset size movement primarily reflected roll-offs and higher netting, partly offset by
market-driven movements.
Securities financing transaction exposures decreased by USD 8.9bn, mainly due to asset size and other movements of
USD 8.4bn and currency effects of USD 0.4bn. The asset size movement was mainly due to roll-offs of cash reinvestment
trades in Group Treasury, partly offset by increases in brokerage receivables, mostly resulting from higher levels of client
activity in the Investment Bank.
Off-balance sheet items increased by USD 1.5bn, mainly due to asset size and other movements of USD 1.4bn and
currency effects of USD 0.1bn. The asset size movement was mainly due to increases in commitments.
›
Refer to “Leverage ratio denominator” in the “Capital management” section of the UBS Group fourth quarter 2025 report,
available under “Quarterly reporting” at
ubs.com/investors
, for more information
Liquidity and funding
Liquidity risk management
Annual |
The table below presents an overview of risk management disclosures related to risks resulting from liquidity and
funding activities that are provided separately in the UBS Group Annual Report 2025, available under “Annual reporting”
at
ubs.com/investors
.
LIQA: Liquidity risk management
Pillar 3 disclosure requirement
UBS Group Annual Report 2025 section
Disclosure
UBS Group Annual
Report 2025 page
number
Liquidity risk management,
including risk tolerance and target /
limit setting, monitoring and
reporting, including policies and
practices, as well as governance and
governance structure
Liquidity and funding management
–
Strategy, objectives and governance
142
Funding risk strategy and
management: objective,
diversification of funding sources,
limits and targets approach
Liquidity and funding management
–
Strategy, objectives and governance
–
Management of liquidity and funding risk
142
143–144
Liquidity risk management and
strategy: objective, diversification of
liquid assets, limits and targets
approach
Liquidity and funding management
–
Strategy, objectives and governance
–
Liquidity and funding stress testing
142
142–143
Stress-testing approach and stress
scenario description
Liquidity and funding management
–
Liquidity and funding stress testing
142–143
Contingency funding plan
Liquidity and funding management
–
Contingency funding plan
144
Limitations on the transferability of
liquidity
Liquidity and funding management
–
Liquidity coverage ratio: Trapped liquidity at Group level
(High-quality liquid assets paragraph)
144
Maturity of assets and liabilities to
provide a view on the balance sheet
and off-balance sheet structure
Consolidated financial statements
–
Note 23 Maturity analysis of assets and liabilities
334–336
31 December 2025 Pillar 3 Report |
UBS Group | Liquidity and funding 89
Liquidity coverage ratio
Quarterly |
We monitor the liquidity coverage ratio (the LCR) in all significant currencies in order to manage any currency
mismatch between high-quality liquid assets (HQLA) and the net expected cash outflows in times of stress.
The table below presents an overview of the Pillar 3 disclosures that are provided separately in the UBS Group Annual
Report 2025, available under “Annual reporting” at
ubs.com/investors
.
Pillar 3 disclosure requirement
UBS Group Annual Report 2025 section
Disclosure
UBS Group Annual
Report 2025 page
number
Concentration of funding sources
Balance sheet and off-balance sheet
–
Liabilities, by product and currency
148
Currency mismatch in the LCR
Liquidity and funding management
–
Liquidity coverage ratio
144
High-quality liquid assets
Quarterly |
HQLA must be easily and immediately convertible into cash at little or no loss of value, especially during a period
of stress. HQLA are assets that are of low risk and are unencumbered. Other characteristics of HQLA are ease and certainty
of valuation, low correlation with risky assets, listing of the assets on a developed and recognized exchange, existence of
an active and sizable market for the assets, and low volatility. Our HQLA predominantly consist of assets that qualify as
Level 1 in the LCR framework, including cash, central bank reserves and government bonds. In the fourth quarter of
2025, our HQLA decreased by USD 15.0bn to USD 331.6bn, mainly reflecting lower cash available, due to higher lending
assets and brokerage receivables, and lower amounts due to banks. The overall composition of HQLA remained
unchanged.
High-quality liquid assets (HQLA)
Average 4Q25
1
Average 3Q25
1
USD m
Level 1
weighted
liquidity
value
2
Level 2
weighted
liquidity
value
2
Total
weighted
liquidity
value
2
Level 1
weighted
liquidity
value
2
Level 2
weighted
liquidity
value
2
Total
weighted
liquidity
value
2
Cash balances
3
219,658
219,658
232,503
232,503
Securities (on- and off-balance sheet)
82,454
29,456
111,910
86,366
27,681
114,047
Total HQLA
4
302,112
29,456
331,568
318,869
27,681
346,550
1 Calculated based on an average of 64 data points in the fourth quarter of 2025 and 65 data points in the third quarter of 2025. 2 Calculated after the application of haircuts and, where applicable, caps on Level 2
assets. 3 Includes cash and balances with central banks and other eligible balances as prescribed by FINMA. 4 Calculated in accordance with FINMA requirements.
31 December 2025 Pillar 3 Report |
UBS Group | Liquidity and funding 90
LCR development during the fourth quarter of 2025
Quarterly |
In the fourth quarter of 2025, the quarterly average LCR of the UBS Group remained broadly unchanged at
182.6%, remaining above the prudential requirement communicated by the Swiss Financial Market Supervisory Authority
(FINMA).
Average net cash outflows decreased by USD 8.7bn to USD 181.7bn, reflecting higher net inflows from securities
financing transactions and lower net outflows from derivatives. The effect of the decrease in net cash outflows was offset
by a USD 15.0bn decrease in average HQLA, mainly reflecting lower cash available, due to higher lending assets and
brokerage receivables, and lower amounts due to banks.
LIQ1: Liquidity coverage ratio (LCR)
Average 4Q25
1
Average 3Q25
1
USD m
Unweighted
value
Weighted
value
2
Unweighted
value
Weighted
value
2
High-quality liquid assets (HQLA)
1
Total HQLA
337,688
331,568
351,663
346,550
Cash outflows
2
Retail deposits and deposits from small business customers
389,513
44,968
388,660
45,003
3
of which: stable deposits
31,732
1,149
31,133
1,130
4
of which: less stable deposits
357,781
43,819
357,527
43,873
5
Unsecured wholesale funding
302,854
154,390
304,482
154,199
6
of which: operational deposits (all counterparties)
62,134
15,533
68,313
17,078
7
of which: non-operational deposits (all counterparties)
225,757
123,894
219,859
120,811
8
of which: unsecured debt
14,963
14,963
16,309
16,309
9
Secured wholesale funding
103,944
102,570
10
Additional requirements:
165,260
45,780
162,537
45,424
11
of which: outflows related to derivatives and other transactions
78,927
26,841
78,826
26,754
12
of which: outflows related to loss of funding on debt products
3
552
552
391
391
13
of which: committed credit and liquidity facilities
85,780
18,386
83,320
18,280
14
Other contractual funding obligations
28,190
25,936
30,828
27,086
15
Other contingent funding obligations
344,743
15,116
342,554
14,062
16
Total cash outflows
390,134
388,343
Cash inflows
17
Secured lending
372,511
136,266
346,121
127,808
18
Inflows from fully performing exposures
81,016
37,809
79,194
36,796
19
Other cash inflows
34,366
34,366
33,380
33,380
20
Total cash inflows
487,892
208,441
458,695
197,984
Average 4Q25
1
Average 3Q25
1
USD m, except where indicated
Total adjusted
value
4
Total adjusted
value
4
Liquidity coverage ratio (LCR)
21
Total HQLA
331,568
346,550
22
Net cash outflows
181,693
190,359
23
LCR (%)
1 Calculated based on an average of 64 data points in the fourth quarter of 2025 and 65 data points in the third quarter of 2025. 2 Calculated after the application of haircuts and inflow and outflow rates.
3 Includes outflows related to loss of funding on asset-backed securities, covered bonds, other structured financing instruments, asset-backed commercial papers, structured entities (conduits), securities investment
vehicles and other such financing facilities. 4 Calculated after the application of haircuts and inflow and outflow rates, as well as, where applicable, caps on Level 2 assets and cash inflows.
31 December 2025 Pillar 3 Report |
UBS Group | Liquidity and funding 91
Net stable funding ratio
Net stable funding ratio development during the fourth quarter of 2025
Semi-annual |
points to 116.1%, remaining above the prudential requirement communicated by FINMA.
Available stable funding decreased by USD 16.7bn to USD 882.0bn, mainly driven by decreases in debt issued measured
at amortized cost and regulatory capital.
Required stable funding increased by USD 8.9bn to USD 759.8bn, mainly reflecting higher lending assets, partly offset
by lower derivatives and cash collateral receivables on derivative instruments.
›
Refer to the “Liquidity and funding management” section of the UBS Group Annual Report 2025, available under ”Annual
reporting” at
ubs.com/investors
, for more information about the NSFR
LIQ2: Net stable funding ratio (NSFR)
31.12.25
30.9.25
Unweighted value by residual maturity
Unweighted value by residual maturity
USD m, except where indicated
No Maturity
< 6 months
6 months to
< 1 year
≥ 1 year
Weighted
Value
No Maturity
< 6 months
6 months to
< 1 year
≥ 1 year
Weighted
Value
Available stable funding (ASF) item
1
Capital:
89,841
12,171
102,012
86,617
18,257
104,874
2
Regulatory Capital
89,841
12,084
101,925
86,617
18,125
104,742
3
Other Capital Instruments
87
87
132
132
4
Retail deposits and deposits from small business
customers:
401,148
8,078
15,340
385,265
405,959
6,764
16,161
389,196
5
Stable deposits
32,391
55
5
30,829
31,633
45
6
30,101
6
Less stable deposits
368,757
8,023
15,334
354,436
374,326
6,719
16,154
359,096
7
Wholesale Funding:
517,300
48,999
217,917
389,499
507,452
60,200
222,202
399,247
8
Operational Deposits
60,584
30,295
66,668
33,348
9
Other wholesale funding
456,717
48,999
217,917
359,204
440,784
60,200
222,202
365,899
10
Liabilities with matching interdependent assets
10,629
8,848
11
Other liabilities:
52,974
122,139
4,560
5,263
55,748
159,895
3,009
5,444
12
NSFR derivative liabilities
58
1
13
All other liabilities and equity not included in the
above categories
52,974
122,139
4,502
5,263
55,748
159,895
3,009
5,444
14
Total ASF
882,039
898,762
Required stable funding (RSF) item
15
Total NSFR high-quality liquid assets (HQLA)
43,755
42,923
16
Deposits held at other financial institutions for
operational purposes
13,815
7,139
13,773
7,088
17
Performing loans and securities:
68,668
272,429
51,505
519,566
593,474
66,582
278,359
62,752
503,463
580,653
18
Performing loans to financial institutions secured by
Level 1 HQLA or Level 2a HQLA
44,536
891
7,370
47,584
1,632
1
7,080
19
Performing loans to financial institutions secured by
Level 2b HQLA or non-HQLA and unsecured
performing loans to financial institutions
85,731
7,550
49,747
69,821
80,933
12,308
39,835
61,787
20
Performing loans to non-financial corporate clients,
loans to retail and small business customers, and
loans to sovereigns, central banks and PSEs, of which:
942
113,051
16,960
153,006
186,437
938
122,850
26,023
149,223
189,442
21
With a risk weight of less than or equal to 35%
under Basel II standardized approach for credit risk
942
27,820
1,977
1,955
7,902
938
38,292
6,863
1,882
12,224
22
Performing residential mortgages, of which:
24,761
22,566
294,098
248,848
23,114
19,525
289,055
241,160
23
With a risk weight of less than or equal to 35%
under Basel II standardized approach for credit risk
19,585
18,486
235,214
191,888
19,233
17,061
240,181
195,220
24
Securities that are not in default and do not qualify as
HQLA, including exchange-traded equities
67,726
4,349
3,537
22,715
80,998
65,644
3,878
3,264
25,349
81,184
25
Assets with matching interdependent liabilities
10,629
8,848
26
Other assets:
43,746
36,491
216
118,295
109,753
48,516
76,169
566
119,716
114,885
27
Physical traded commodities, including gold
2,355
2,002
2,072
1,761
28
Assets posted as initial margin for derivative contracts
and contributions to default funds of CCPs
39,340
1
33,439
38,664
1
32,864
29
NSFR derivative assets
1,334
1
1,334
30
NSFR derivative liabilities before deduction of variation
margin posted
63,955
1
12,791
65,875
1
13,175
31
All other assets not included in the above categories
41,390
36,491
216
15,000
61,521
46,445
76,169
566
13,843
65,751
32
Off-balance sheet items
41,384
11,319
72,490
5,707
41,218
11,138
66,872
5,411
33
Total RSF
759,829
750,960
34
Net stable funding ratio (%)
1 The ≥ 1 year maturity bucket includes balances for which differentiation by maturity is not required.
31 December 2025 Pillar 3 Report |
UBS Group | Liquidity and funding 92
Asset encumbrance
Semi-annual |
The ENC table below provides a breakdown of on- and off-balance sheet assets between encumbered assets,
central bank facilities and unencumbered assets. The table is based on the regulatory scope of consolidation.
Excluding assets positioned at central banks, assets are presented as encumbered if they have been pledged as collateral
against an existing liability or are otherwise not available for securing additional funding. Assets pledged as collateral
mainly include assets pledged for securities financing transactions, derivative transactions or financial guarantees, and
mortgage loans, which serve as collateral against loans from Swiss mortgage institutions and US Federal Home Loan
Banks or issued covered bonds. Assets otherwise not available for securing additional funding mainly include assets
protected under client asset segregation rules and assets held in certain jurisdictions to comply with explicit minimum
local asset maintenance requirements.
Central bank facilities represent assets in use or remain available to secure transactions in a central bank facility. These
assets are positioned as collateral with central banks and mainly secure undrawn credit lines for payment, clearing and
settlement purposes, as well as undrawn contingency funding facilities.
All other assets are presented as unencumbered. This category consists of cash and securities readily realizable in the
normal course of business, which include our HQLA and unencumbered positions in our trading portfolio, and other
realizable assets that are not intended for obtaining secured funding in the normal course of business, but may be
considered potential sources of liquidity to meet medium or longer-term funding needs, such as loans and advances to
customers and banks, as well as certain non-financial assets. Unencumbered assets that are considered to be available to
secure funding at the legal-entity level may be subject to restrictions that limit the total amount of assets available to the
Group as a whole. Assets that cannot be pledged as collateral represent assets that by their nature are not considered
available to secure funding or meet collateral needs.
Compared with 30 June 2025, encumbered on-balance sheet assets remained largely unchanged at USD 192.6bn and
encumbered off-balance sheet assets increased by USD 40.5bn to USD 514.8bn, mainly due to higher client activities
driving non-cash collateral demand in the Investment Bank. Off-balance sheet central bank facilities increased by
USD 5.1bn to USD 15.3bn, primarily reflecting higher intraday collateral pledges held by Group Treasury with Bank of
Japan and Bank of England, and additional mortgage loans pledged with Federal Reserve Bank Of New York. Total
unencumbered on-balance sheet assets decreased by USD 52.4bn to USD 1,361.2bn, mainly driven by a USD 50.5bn
decrease from financial assets measured at amortized cost, primarily from roll-offs of securities financing transactions in
Group Treasury, and lower cash and balances at central banks as a result of net new customer deposit outflows and
higher lending activity. Unencumbered off-balance sheet decreased by USD 18.2bn to USD 144.0bn, mainly reflecting
lower security collateral available for encumbrance in Group Treasury.
›
Refer to the “CC2: Reconciliation of accounting balance sheet to balance sheet under the regulatory scope of consolidation” table
in the “Going and gone concern requirements and eligible capital” section of this report for more information about the
reconciliation of the balance sheet under IFRS Accounting Standards to the balance sheet according to the regulatory scope of
consolidation
31 December 2025 Pillar 3 Report |
UBS Group | Liquidity and funding 93
ENC: Asset encumbrance
USD m
Encumbered assets excluding central bank
facilities
Central bank
facilities
Unencumbered assets
Total Group
of which
assets
pledged
as collateral
of which
assets
otherwise
restricted and
not available
to secure
funding
Total
encumbered
assets
of which
unencumbered
assets
of which
assets that
cannot be
pledged as
collateral
Total
unencumbered
assets
Balance sheet
Cash and balances at central banks
1
2
Amounts due from banks
Receivables from securities financing transactions measured
at amortized cost
Cash collateral receivables on derivative instruments
Loans and advances to customers
3
Other financial assets measured at amortized cost
4
5
Total financial assets measured at amortized cost
Financial assets at fair value held for trading
4
Derivative financial instruments
Brokerage receivables
Financial assets at fair value not held for trading
4
Total financial assets measured at fair value through
profit or loss
Financial assets measured at fair value through other
comprehensive income
Non-financial assets
Total balance sheet assets as of 31 December 2025
6
Total balance sheet assets as of 30 June 2025
1,008,106
6
1,413,626
1,651,011
Off-balance sheet
Fair value of securities accepted as collateral
as of 31 December 2025
Fair value of securities accepted as collateral
as of 30 June 2025
1 Predominantly reflects assets pledged to the depositor protection system in Switzerland. 2 Includes cash placed at central banks to meet local statutory minimum reserve requirements (31 December 2025:
USD 14.6bn; 30 June 2025: USD 13.4bn). 3 Mortgage loans that serve as collateral against outstanding loans from Swiss mortgage institutions, US Federal Home Loan Banks and issued covered bonds. 4 Includes
assets pledged as collateral that may be sold or repledged by counterparties. 5 Mainly includes cash collateral provided to exchanges and clearing houses to secure securities trading activity through those
counterparties. 6 Includes high-quality liquid assets (31 December 2025: USD 328.2bn; 30 June 2025: USD 359.8bn).
Remuneration
Annual |
Pillar 3 disclosures on remuneration are separately provided on pages 173–174 and pages 193–237 in the
UBS Group Annual Report 2025, available under “Annual reporting” at
ubs.com/investors
.
31 December 2025 Pillar 3 Report |
UBS Group | Requirements for global systemically important banks and related indicators 94
Requirements for global systemically important banks
and related indicators
GSIB1: Disclosure of G-SIB indicators
Semi-annual |
The Financial Stability Board (the FSB) has determined that UBS is a global systemically important bank (a G-SIB),
using an indicator-based methodology adopted by the Basel Committee on Banking Supervision (the BCBS). Banks that
qualify as G-SIBs are required to disclose 13 high-level indicators annually for assessing the systemic importance of G-SIBs
as defined by the BCBS. These indicators are used for the G-SIB score calculation and cover five categories: size, cross-
jurisdictional activity, interconnectedness, substitutability / financial institution infrastructure, and complexity.
In November 2025, the FSB, in consultation with the BCBS and national authorities, published the 2025 list of G-SIBs.
Based on the published indicators, G-SIBs are subject to additional common equity tier 1 (CET1) capital buffer
requirements in a range from 1.0% to 3.5%. In November 2025, the FSB confirmed that, based on the 31 December
2024 indicators, the additional CET1 capital buffer requirement for the UBS Group will remain at 1.5% as of 1 January
2027. As our Swiss systemically relevant bank (SRB) Basel III capital requirements remain above the BCBS requirements,
including the G-SIB buffer, we are not affected by these additional G-SIB requirements.
The BCBS introduced a leverage ratio buffer for G-SIBs as a part of the finalization of the Basel III framework announced
in December 2017. The leverage ratio buffer is set at 50% of risk-weighted higher-loss absorbency requirements. In
Switzerland, the amendments to the Capital Adequacy Ordinance that incorporate the final Basel III standards into Swiss
law entered into force on 1 January 2025. As our Swiss SRB requirements remain above the BCBS requirements, these
changes did not increase our requirements.
We provide our G-SIB indicators as of 31 December 2024 under “Pillar 3 disclosures” at
ubs.com/investors
. Our G-SIB
indicators as of 31 December 2025 will be published in July 2026 under “Pillar 3 disclosures” at
ubs.com/investors
.
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | Introduction 95
Significant regulated subsidiaries
and sub-groups
Introduction
Scope of disclosures in these sections
The sections below include capital and other regulatory information as of 31 December 2025 for UBS AG consolidated,
UBS AG standalone, UBS Switzerland AG standalone, UBS Europe SE consolidated, UBS Americas Holding LLC
consolidated and Credit Suisse International standalone. Capital information in the following sections is based on Pillar 1
capital requirements. Entities may be subject to significant additional Pillar 2 requirements, which represent additional
amounts of capital considered necessary and are agreed with regulators based on the risk profile of the respective entity.
UBS AG consolidated, UBS AG standalone, UBS Switzerland AG standalone and UBS Europe SE consolidated
Developments related to the implementation of the final Basel III standards
In Switzerland, the amendments to the Capital Adequacy Ordinance (the CAO) that incorporate the final Basel III
standards into Swiss law, including the new ordinances containing the implementing provisions for the revised CAO,
entered into force on 1 January 2025.
In the EU, the final Basel III requirements became applicable as of 1 January 2025, except for the Fundamental Review of
the Trading Book (the FRTB) regulation, the implementation of which has been delayed until 1 January 2027, as confirmed
by the European Commission (the EC) in September 2025. In addition, the EC conducted a public consultation, concluded
in January 2026, on policy options to temporarily mitigate negative impacts stemming from the absence of a level playing
field with regard to the implementation of FRTB rules. UBS Europe SE is subject to Basel III regulations in the EU. The
impact on UBS can only be determined once the EC publishes its final decision.
UBS Americas Holding LLC consolidated
Updated Federal Reserve Board stress capital buffer requirements
In August 2025, the Federal Reserve Board reduced the stress capital buffer (the SCB) of UBS Americas Holding LLC, our
US-based intermediate holding company, to 5.2%, from 9.3%, applicable from 1 October 2025 under the Federal
Reserve Board’s SCB rule, resulting in a total common equity tier 1 capital requirement of 9.7%. The SCB for UBS
Americas Holding LLC is derived from the results of the Federal Reserve Board’s 2025 Dodd
–
Frank Act Stress Test (DFAST)
released in June 2025.
Earlier in 2025, the Federal Reserve Board proposed measures to reduce the volatility of the SCB requirements by
averaging the capital stress test results from the past two years, with the aim of making capital planning more predictable
for banks. In addition, the Federal Reserve Board proposed moving the effective date for the annual SCB updates from
1 October to 1 January to allow more time to meet the new requirements. We expect the final rules to be published in
the first half of 2026.
In February 2026, the Federal Reserve Board voted to maintain the current SCB until 2027, from which point onward
requirements can be calculated based on models that take public feedback into consideration.
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG consolidated 96
UBS AG consolidated
Key metrics for the fourth quarter of 2025
Quarterly |
Obligations of Banks and Securities Firms (DisO-FINMA) rules and IFRS Accounting Standards.
During the fourth quarter of 2025, tier 1 capital decreased by USD 1.4bn to USD 90.0bn. Common equity tier 1 (CET1)
capital decreased by USD 1.1bn to USD 70.4bn, mainly as operating profit before tax of USD 0.4bn was more than offset
by additional dividend accruals of USD 1.0bn and a current tax expense of USD 0.2bn. As of 31 December 2025, accruals
for dividends to UBS Group AG amounted to USD 9.0bn, reflecting a proposed ordinary dividend distribution of
USD 4.5bn and the appropriation of USD 4.5bn to a special dividend reserve, both subject to approval at the Annual
General Meeting in the second quarter of 2026. The decision on the distribution of the special dividend is intended to
be made at an Extraordinary General Meeting in the second half of 2026 and is subject to UBS AG meeting its capital
requirements on a standalone and consolidated level, as well as the outcome and timing of the implementation of the
new regulatory regime in Switzerland.
Additional tier 1 (AT1) capital issued by the Group and on lent to UBS AG decreased by USD 0.4bn to USD 19.6bn, mainly
reflecting the call of one AT1 capital instrument equivalent to USD 0.4bn that was on lent from the Group.
Risk-weighted assets (RWA) decreased by USD 12.6bn to USD 489.8bn, primarily driven by a decrease of USD 12.0bn
from asset size and other movements and a decrease of USD 1.3bn from model updates and methodology changes,
partly offset by an increase of USD 0.7bn from currency effects.
The leverage ratio denominator (the LRD) decreased by USD 19.9bn to USD 1,622.9bn, driven by a USD 20.8bn decrease
from asset size and other movements, partly offset by a USD 0.8bn increase from currency effects. The decrease in asset
size and other movements was mainly due to derivative exposures and securities financing transaction exposures. There
were also decreases in cash and balances at central banks and trading portfolio assets, partly offset by increases in lending
balances and high-quality liquid asset (HQLA) portfolio securities.
Correspondingly, the CET1 capital ratio of UBS AG consolidated increased to 14.4% from 14.2%, reflecting the
aforementioned decrease in RWA, partly offset by the aforementioned decrease in CET1 capital. The Basel III leverage
ratio decreased to 5.5% from 5.6%, reflecting the aforementioned decrease in tier 1 capital, partly offset by the
aforementioned decrease in the LRD.
The quarterly average liquidity coverage ratio (the LCR) of UBS AG consolidated decreased 2.7 percentage points to
176.2%, remaining above the prudential requirement communicated by FINMA. The movement in the quarterly average
LCR was primarily driven by a decrease in average HQLA of USD 15.0bn to USD 331.7bn, mainly reflecting lower cash
available, due to higher lending assets and brokerage receivables, and lower amounts due to banks. The effect of the
decrease in HQLA was partly offset by a USD 5.4bn decrease in average net cash outflows to USD 188.4bn, reflecting
higher net inflows from securities financing transactions and lower net outflows from derivatives, partly offset by higher
outflows from intercompany deposits.
As of 31 December 2025, the net stable funding ratio of UBS AG consolidated decreased 2.9 percentage points to
115.7%, remaining above the prudential requirement communicated by FINMA. Available stable funding decreased by
USD 13.9bn to USD 873.5bn, mainly driven by decreases in debt issued measured at amortized cost and regulatory
capital. Required stable funding increased by USD 7.0bn to USD 755.3bn, mainly reflecting higher lending assets, partly
offset by lower derivatives and cash collateral receivables on derivative instruments.
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG consolidated 97
KM1: Key metrics
USD m, except where indicated
31.12.25
30.9.25
30.6.25
31.3.25
31.12.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4a
Total risk-weighted assets (pre-floor)
4b
Minimum capital requirement
1
Risk-based capital ratios as a percentage of RWA
5
Common equity tier 1 ratio (%)
5b
Common equity tier 1 ratio (%) (pre-floor)
6
Tier 1 ratio (%)
6b
Tier 1 ratio (%) (pre-floor)
7
Total capital ratio (%)
7b
Total capital ratio (%) (pre-floor)
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
9a
Additional countercyclical buffer for Swiss mortgage loans (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
2
11
Total of bank CET1 specific buffer requirements (%)
3
12
CET1 available after meeting the bank’s minimum capital requirements (%)
4
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
5
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
14c
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
5
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
14e
Minimum capital requirements
6
Liquidity coverage ratio (LCR)
7
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
16a
of which: cash outflows
16b
of which: cash inflows
17
LCR (%)
176.24
178.96
179.45
180.28
186.08
Net stable funding ratio (NSFR)
18
Total available stable funding
19
Total required stable funding
20
NSFR (%)
115.65
118.59
120.91
122.81
124.10
1 Calculated as 8% of total RWA, based on total capital minimum requirements, excluding CET1 buffer requirements. 2 Swiss SRB going and gone concern requirements and information for UBS AG consolidated
are provided below in this section. 3 Excludes non-BCBS capital buffer requirements for risk-weighted positions that are directly or indirectly backed by residential properties in Switzerland. 4 Represents the CET1
ratio that is available to meet buffer requirements. Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and, where applicable, minus the BCBS tier 2 capital requirement met with CET1 capital.
5 There is currently no temporary exemption of central bank reserves for UBS. 6 The higher of capital requirements based on 8% of RWA or 3% of LRD. 7 Calculated after the application of haircuts and inflow
and outflow rates, as well as, where applicable, caps on Level 2 assets and cash inflows. Calculated based on an average of 64 data points in the fourth quarter of 2025 and 65 data points in the third quarter of
2025. For the prior-quarter data points, refer to the respective Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information.
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG consolidated 98
Swiss systemically relevant bank going and gone concern requirements and information
Quarterly |
The tables below provide details of the Swiss systemically relevant bank RWA- and LRD-based going and gone
concern requirements and information as required by FINMA; details regarding eligible gone concern instruments are
also provided below.
Effective 1 January 2025, a Pillar 2 capital add-on for residual exposures (after collateral mitigation) to hedge funds,
private equity and family offices has been introduced. This resulted in an increase of 20 basis points in the RWA-based
going concern capital requirement as of 31 December 2025.
More information about the going and gone concern requirements and information is provided in the “Total loss-
absorbing capacity” section of the UBS AG Annual Report 2025, available under “Annual reporting” at
ubs.com/investors.
Swiss SRB going and gone concern requirements and information
As of 31.12.25
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
of which: low-trigger loss-absorbing additional tier 1 capital
Required gone concern capital
Total gone concern loss-absorbing capacity
4,5,6
of which: base requirement including add-ons for market share and LRD
7
7
Eligible gone concern capital
Total gone concern loss-absorbing capacity
Total tier 2 capital
8
of which: non-Basel III-compliant tier 2 capital
TLAC-eligible unsecured debt
Total loss-absorbing capacity
Required total loss-absorbing capacity
Eligible total loss-absorbing capacity
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
1 Includes applicable add-ons of 1.66% for risk-weighted assets (RWA) and 0.51% for leverage ratio denominator (LRD), of which 2 basis points for RWA and 1 basis point for LRD reflect a Pillar 2 capital add-on of
USD 107m related to the supply chain finance funds matter at Credit Suisse. An additional 20 basis points for RWA reflect a Pillar 2 capital add-on for the residual exposure (after collateral mitigation) to hedge funds,
private equity and family offices, effective 1 January 2025. 2 Includes the Pillar 2 add-on for the residual exposure (after collateral mitigation) to hedge funds, private equity and family offices of 0.14% for CET1
capital and 0.06% 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; 4.36% includes the
aforementioned Pillar 2 capital add-on. 3 Our CET1 leverage ratio requirement of 3.51% consists of a 1.5% base requirement, a 1.5% base buffer capital requirement, a 0.25% LRD add-on requirement, a 0.25%
market share add-on requirement based on our Swiss credit business and a 0.01% Pillar 2 capital add-on related to the supply chain finance funds matter at Credit Suisse. 4 A maximum of 25% of the gone concern
requirements can be met with instruments that have a remaining maturity of between one and two years. Once at least 75% of the minimum gone concern requirement has been met with instruments that have a
remaining maturity of greater than two years, all instruments that have a remaining maturity of between one and two years remain eligible to be included in the total gone concern capital. 5 Systemically important
banks (SIBs) are subject to base gone concern capital requirements equivalent to 75% of the total going concern requirements (excluding countercyclical buffer requirements and the Pillar 2 add-ons). 6 FINMA has
the authority to impose a surcharge of up to 25% of the total going concern capital requirements (excluding countercyclical buffer requirements and the Pillar 2 add-ons) should obstacles to an SIB’s resolvability be
identified in future resolvability assessments. 7 Includes applicable add-ons of 1.08% for RWA and 0.38% for LRD. 8 Reflects an add-back of 45% of unrealized gains from financial assets measured at fair value
through other comprehensive income. Such gains do not qualify as CET1 capital but 45% of these gains can be recognized as tier 2 capital.
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG consolidated 99
Swiss SRB going and gone concern information
USD m, except where indicated
31.12.25
30.9.25
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
1
of which: non-Basel III-compliant tier 2 capital
TLAC-eligible unsecured debt
Total loss-absorbing capacity
Total loss-absorbing capacity
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
of which: common equity tier 1 capital ratio
Gone concern loss-absorbing capacity ratio
Total loss-absorbing capacity ratio
Leverage ratios (%)
Going concern leverage ratio
of which: common equity tier 1 leverage ratio
Gone concern leverage ratio
Total loss-absorbing capacity leverage ratio
1 Reflects an add-back of 45% of unrealized gains from financial assets measured at fair value through other comprehensive income. Such gains do not qualify as CET1 capital but 45% of these gains can be recognized
as tier 2 capital.
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG standalone 100
UBS AG standalone
Key metrics for the fourth quarter of 2025
Quarterly |
The table below is based on the Swiss Financial Market Supervisory Authority (FINMA) Ordinance on the Disclosure
Obligations of Banks and Securities Firms (DisO-FINMA) rules and IFRS Accounting Standards.
During the fourth quarter of 2025, tier 1 capital increased by USD 0.4bn to USD 93.7bn. Common equity tier 1 (CET1)
capital increased by USD 0.7bn to USD 74.1bn, mainly reflecting operating profit before tax of USD 1.6bn, partly offset
by additional accruals for capital returns to UBS Group AG of USD 1.0bn. As of 31 December 2025, accruals for capital
returns to UBS Group AG amounted to USD 9.0bn, reflecting a proposed ordinary dividend distribution of USD 4.5bn
and the appropriation of USD 4.5bn to a special dividend reserve, both subject to approval at the Annual General Meeting
in the second quarter of 2026. The decision on the distribution of the special dividend is intended to be made at an
Extraordinary General Meeting in the second half of 2026 and is subject to UBS AG meeting its capital requirements on
a standalone and consolidated level, as well as the outcome and timing of the implementation of the new regulatory
regime in Switzerland.
Additional tier 1 (AT1) capital issued by the Group and on lent to UBS AG decreased by USD 0.4bn to USD 19.6bn, mainly
reflecting the call of one AT1 capital instrument equivalent to USD 0.4bn that was on lent from the Group.
Risk-weighted assets (RWA) decreased by USD 26.3bn to USD 491.6bn during the fourth quarter of 2025, primarily driven
by lower RWA on investments in subsidiaries following capital repatriations, and decreases in credit and counterparty
credit risk RWA, as well as market risk RWA. This was partly offset by an increase in operational risk RWA, mainly due to
the higher business indicator component.
The leverage ratio denominator (the LRD) decreased by USD 22.1bn to USD 930.0bn, driven by a USD 20.9bn decrease
from asset size and other movements and a USD 1.3bn decrease from currency effects. The change in asset size and
other movements was mainly due to capital repatriations reducing investments in subsidiaries, lower lending balances,
and disposals of high-quality liquid asset (HQLA) portfolio securities and trading assets, along with lower securities
financing transactions and derivative exposures, partly offset by increases in cash and balances at central banks and off-
balance sheet items.
Correspondingly, the CET1 capital ratio of UBS AG standalone increased to 15.1% from 14.2%, reflecting the
aforementioned decrease in RWA and the aforementioned increase in CET1 capital. The firm’s Basel III leverage ratio
increased to 10.1% from 9.8%, reflecting the aforementioned decrease in the LRD and the aforementioned increase in
tier 1 capital.
The quarterly average liquidity coverage ratio (the LCR) of UBS AG standalone decreased 6.0 percentage points to
234.9%, remaining above the prudential requirement communicated by FINMA. The movement in the quarterly average
LCR was primarily driven by a decrease in average HQLA of USD 13.2bn to USD 149.3bn, mainly reflecting lower cash
available due to lower customer deposits and higher funding to subsidiaries. Average net cash outflows decreased by
USD 3.9bn to USD 63.7bn, mainly reflecting higher inflows from intercompany loans.
As of 31 December 2025, the net stable funding ratio decreased 5.5 percentage points to 90.7%, remaining above the
prudential requirement communicated by FINMA. Available stable funding decreased by USD 14.2bn to USD 404.8bn,
mainly driven by decreases in debt issued measured at amortized cost and intercompany deposits. Required stable funding
increased by USD 10.9bn to USD 446.5bn, mainly reflecting higher intercompany funding to subsidiaries, partly offset by
a decrease in investments in subsidiaries due to capital repatriations.
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG standalone 101
KM1: Key metrics
USD m, except where indicated
31.12.25
30.9.25
30.6.25
31.3.25
31.12.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
1
4
Total risk-weighted assets (RWA)
4a
Total risk-weighted assets (pre-floor)
4b
Minimum capital requirement
2
Risk-based capital ratios as a percentage of RWA
1
5
Common equity tier 1 ratio (%)
5b
Common equity tier 1 ratio (%) (pre-floor)
6
Tier 1 ratio (%)
6b
Tier 1 ratio (%) (pre-floor)
7
Total capital ratio (%)
7b
Total capital ratio (%) (pre-floor)
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
9a
Additional countercyclical buffer for Swiss mortgage loans (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
3
11
Total of bank CET1 specific buffer requirements (%)
4
12
CET1 available after meeting the bank’s minimum capital requirements (%)
5
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
6
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
14c
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
6
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
14e
Minimum capital requirements
7
Liquidity coverage ratio (LCR)
8
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
16a
of which: cash outflows
16b
of which: cash inflows
17
LCR (%)
234.90
Net stable funding ratio (NSFR)
9
18
Total available stable funding
19
Total required stable funding
20
NSFR (%)
90.68
96.20
96.73
98.05
97.25
1 Based on phase-in rules for RWA. Refer to “Swiss systemically relevant bank going and gone concern requirements and information” below for more information. 2 Calculated as 8% of total RWA, based on total
capital minimum requirements, excluding CET1 buffer requirements. 3 Swiss SRB going and gone concern requirements and information for UBS AG standalone are provided below in this section. 4 Excludes non-
BCBS capital buffer requirements for risk-weighted positions that are directly or indirectly backed by residential properties in Switzerland. 5 Represents the CET1 ratio that is available to meet buffer requirements.
Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and, where applicable, minus the BCBS tier 2 capital requirement met with CET1 capital. 6 There is currently no temporary exemption of
central bank reserves for UBS. 7 The higher of capital requirements based on 8% of RWA or 3% of LRD. 8 Calculated after the application of haircuts and inflow and outflow rates, as well as, where applicable,
caps on Level 2 assets and cash inflows. Calculated based on an average of 64 data points in the fourth quarter of 2025 and 65 data points in the third quarter of 2025. For the prior-quarter data points, refer to the
respective Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information. 9 In accordance with Art. 17h para. 3 and 4 of the Liquidity Ordinance, UBS AG standalone is required to
maintain a minimum NSFR of at least 80% without taking into account excess funding of UBS Switzerland AG and 100% after taking into account such excess funding.
Swiss systemically relevant bank going and gone concern requirements and information
Quarterly |
UBS AG standalone is considered a systemically relevant bank (an SRB) under Swiss banking law and is subject to
capital regulations on a standalone basis.
The going concern requirements include the FINMA Pillar 2 add-on related to the supply chain finance funds matter at
Credit Suisse. This Pillar 2 add-on results in an additional CET1 capital ratio requirement of 2 basis points and an additional
CET1 leverage ratio requirement of 1 basis point as of 31 December 2025.
Effective 1 January 2025, a Pillar 2 capital add-on for residual exposures (after collateral mitigation) to hedge funds,
private equity and family offices has been introduced. This resulted in an increase as of 31 December 2025 of 18 basis
points in the RWA phase-in-based going concern capital requirement and 17 basis points in the RWA fully applied-based
going concern capital requirement.
The capital requirements based on RWA include a minimum CET1 capital requirement of 10.27%, including a
countercyclical buffer of 0.12% and the Pillar 2 add-ons, and a total going concern capital requirement of 14.62%,
including a countercyclical buffer of 0.12% and the Pillar 2 add-ons. The capital requirements based on the LRD include
a minimum CET1 capital requirement of 3.51% and a total going concern leverage ratio requirement of 5.01%.
CET1 capital and high-trigger AT1 capital instruments are eligible as going concern capital.
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG standalone 102
UBS AG standalone is subject to a gone concern capital requirement based on the sum of: (i) the nominal value of the
gone concern instruments issued by UBS entities and held by the parent firm; (ii) 75% of the going concern capital
requirements resulting from third-party exposure on a standalone basis; and (iii) a buffer requirement equal to 30% of
the Group’s gone concern capital requirement on UBS AG’s consolidated exposure. The gone concern capital requirement
is the higher of RWA- and LRD-based requirements, calculated separately. The gone concern capital coverage ratio reflects
how much gone concern capital is available to meet the gone concern requirement. Outstanding total loss-absorbing
capacity-eligible unsecured debt instruments are eligible to meet gone concern requirements until one year before
maturity.
›
Refer to “Capital and capital ratios of our significant regulated subsidiaries” in the “Capital management” section of the UBS
Group Annual Report 2025, available under “Annual reporting” at
ubs.com/investors
, for information about the joint liability of
UBS AG and UBS Switzerland AG
The tables below provide details of the Swiss SRB RWA- and LRD-based going and gone concern requirements and
information as required by FINMA; details regarding eligible gone concern instruments are provided below.
Swiss SRB going and gone concern requirements and information
As of 31.12.25
RWA, phase-in
RWA, fully applied as of 1.1.28
1
LRD
USD m, except where indicated
in %
in %
in %
Required going concern capital
Total going concern capital
2
2
2
Common equity tier 1 capital
3
3
of which: minimum capital
of which: buffer capital
of which: countercyclical buffer
Maximum additional tier 1 capital
3
3
of which: additional tier 1 capital
of which: additional tier 1 buffer capital
Eligible going concern capital
Total going concern capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
of which: high-trigger loss-absorbing additional tier 1 capital
of which: low-trigger loss-absorbing additional tier 1 capital
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
Required gone concern capital
4
Higher of RWA- or LRD-based
Total gone concern loss-absorbing capacity
Eligible gone concern capital
Total gone concern loss-absorbing capacity
Total tier 2 capital
5
TLAC-eligible unsecured debt
Gone concern capital coverage ratio
1 Fully applied relates to participation RWA. Direct and indirect investments including holding of regulatory capital instruments in Switzerland-domiciled subsidiaries and for direct and indirect investments including
holding of regulatory capital instruments in foreign-domiciled subsidiaries were risk weighted at 235% and 340%, respectively, for 2025. As per current rules, risk weights will gradually increase by 5 percentage
points per year for Switzerland-domiciled investments and 20 percentage points per year for foreign-domiciled investments until the fully applied risk weights of 250% and 400%, respectively, are applied. 2 Includes
applicable add-ons of 1.64% for risk-weighted assets (RWA, phase-in), 1.63% for risk-weighted assets (RWA, fully applied) and 0.51% for leverage ratio denominator (LRD), of which 2 basis points for RWA phase-
in, 2 basis points for RWA fully applied and 1 basis point for LRD reflect a Pillar 2 capital add-on of USD 107m related to the supply chain finance funds matter at Credit Suisse. An additional 18 basis points for RWA
phase-in and 17 basis points for RWA fully applied reflect a Pillar 2 capital add-on for the residual exposure (after collateral mitigation) to hedge funds, private equity and family offices, effective 1 January 2025.
3 Includes the Pillar 2 add-on for the residual exposure (after collateral mitigation) to hedge funds, private equity and family offices of 0.13% for CET1 capital and 0.05% for AT1 capital for RWA phase-in and 0.12%
for CET1 capital and 0.05% for AT1 capital for RWA fully applied, effective 1 January 2025. For AT1 capital under Pillar 1 requirements a maximum of 4.3% of AT1 capital can be used to meet going concern
requirements; 4.35% for RWA phase-in and 4.35% for RWA fully applied include the aforementioned Pillar 2 capital add-on. 4 A maximum of 25% of the gone concern requirements can be met with instruments
that have a remaining maturity of between one and two years. Once at least 75% of the minimum gone concern requirement has been met with instruments that have a remaining maturity of greater than two years,
all instruments that have a remaining maturity of between one and two years remain eligible to be included in the total gone concern capital. 5 Reflects an add-back of 45% of unrealized gains from financial assets
measured at fair value through other comprehensive income. Such gains do not qualify as CET1 capital but 45% of these gains can be recognized as tier 2 capital.
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG standalone 103
Swiss SRB going and gone concern information
USD m, except where indicated
31.12.25
30.9.25
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
1
of which: non-Basel III-compliant tier 2 capital
TLAC-eligible unsecured debt
Total loss-absorbing capacity
Total loss-absorbing capacity
Denominators for going and gone concern ratios
Risk-weighted assets, phase-in
of which: investments in Switzerland-domiciled subsidiaries
2
of which: investments in foreign-domiciled subsidiaries
2
Risk-weighted assets, fully applied as of 1.1.28
of which: investments in Switzerland-domiciled subsidiaries
2
of which: investments in foreign-domiciled subsidiaries
2
Leverage ratio denominator
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio, phase-in
of which: common equity tier 1 capital ratio, phase-in
Going concern capital ratio, fully applied as of 1.1.28
of which: common equity tier 1 capital ratio, fully applied as of 1.1.28
Leverage ratios (%)
Going concern leverage ratio
of which: common equity tier 1 leverage ratio
Capital coverage ratio (%)
Gone concern capital coverage ratio
1 Reflects an add-back of 45% of unrealized gains from financial assets measured at fair value through other comprehensive income. Such gains do not qualify as CET1 capital but 45% of these gains can be recognized
as tier 2 capital. 2 Fully applied relates to participation RWA. Direct and indirect investments including holding of regulatory capital instruments in Switzerland-domiciled subsidiaries and for direct and indirect
investments including holding of regulatory capital instruments in foreign-domiciled subsidiaries were risk weighted at 235% and 340%, respectively, for 2025. As per current rules, risk weights will gradually increase
by 5 percentage points per year for Switzerland-domiciled investments and 20 percentage points per year for foreign-domiciled investments until the fully applied risk weights of 250% and 400%, respectively, are
applied.
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Switzerland AG standalone 104
UBS Switzerland AG standalone
Key metrics for the fourth quarter of 2025
Quarterly |
The table below is based on the Swiss Financial Market Supervisory Authority (FINMA) Ordinance on the Disclosure
Obligations of Banks and Securities Firms (DisO-FINMA) rules and IFRS Accounting Standards.
During the fourth quarter of 2025, common equity tier 1 capital decreased by CHF 0.3bn to CHF 21.2bn, mainly as the
operating profit was more than offset by additional dividend accruals.
Total risk-weighted assets (RWA) decreased by CHF 4.2bn to CHF 164.1bn, mainly driven by lower credit and counterparty
credit risk RWA.
The leverage ratio denominator (the LRD) decreased by CHF 9.5bn to CHF 538.3bn, mainly due to a reduction in the
exposure to the Swiss National Bank, driven by treasury activities.
The quarterly average liquidity coverage ratio (the LCR) of UBS Switzerland AG decreased 8.4 percentage points to
132.0%, remaining above the prudential requirement communicated by FINMA. The movement in the quarterly average
LCR was primarily driven by a CHF 4.3bn increase in the average net cash outflows to CHF 87.3bn, mainly due to higher
outflows from intercompany funding from UBS AG and customer deposits. Average high-quality liquid assets decreased
by CHF 1.2bn to CHF 115.2bn, mainly reflecting lower cash available due to an increase in lending assets, partly offset
by higher cash available from funding received from UBS AG.
As of 31 December 2025, the net stable funding ratio decreased 0.8 percentage points to 125.2%, remaining above the
prudential requirement communicated by FINMA. Available stable funding increased by CHF 5.6bn to CHF 357.0bn,
mainly driven by higher intercompany funding and customer deposits. Required stable funding increased by CHF 6.2bn
to CHF 285.0bn, predominantly reflecting higher lending assets.
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Switzerland AG standalone 105
KM1: Key metrics
CHF m, except where indicated
31.12.25
30.9.25
30.6.25
31.3.25
31.12.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4a
Total risk-weighted assets (pre-floor)
4b
Minimum capital requirement
1
Risk-based capital ratios as a percentage of RWA
5
Common equity tier 1 ratio (%)
5b
Common equity tier 1 ratio (%) (pre-floor)
6
Tier 1 ratio (%)
6b
Tier 1 ratio (%) (pre-floor)
7
Total capital ratio (%)
7b
Total capital ratio (%) (pre-floor)
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
9a
Additional countercyclical buffer for Swiss mortgage loans (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
Total of bank CET1 specific buffer requirements (%)
2
12
CET1 available after meeting the bank’s minimum capital requirements (%)
3
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
4
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
14c
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
4
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
14e
Minimum capital requirements
5
Liquidity coverage ratio (LCR)
6
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
16a
of which: cash outflows
16b
of which: cash inflows
17
LCR (%)
Net stable funding ratio (NSFR)
7
18
Total available stable funding
19
Total required stable funding
20
NSFR (%)
125.24
126.02
128.55
128.51
132.20
1 Calculated as 8% of total RWA, based on total capital minimum requirements, excluding CET1 buffer requirements. 2 Excludes non-BCBS capital buffer requirements for risk-weighted positions that are directly
or indirectly backed by residential properties in Switzerland. 3 Represents the CET1 ratio that is available to meet buffer requirements. Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and,
where applicable, minus the BCBS tier 2 capital requirement met with CET1 capital. 4 There is currently no temporary exemption of central bank reserves for UBS. 5 The higher of capital requirements based on
8% of RWA or 3% of LRD. 6 Calculated after the application of haircuts and inflow and outflow rates, as well as, where applicable, caps on Level 2 assets and cash inflows. Calculated based on an average of
64 data points in the fourth quarter of 2025 and 65 data points in the third quarter of 2025. For the prior-quarter data points, refer to the respective Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors, for more information. 7 UBS Switzerland AG is required to maintain a minimum NSFR of at least 100% on an ongoing basis, as set out in Art. 17h para. 1 of the Liquidity Ordinance. A portion of
the excess funding is used to fulfill the NSFR requirement of UBS AG standalone.
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Switzerland AG standalone 106
Swiss systemically relevant bank going and gone concern requirements and information
Quarterly |
gone concern requirements and information as required by FINMA; details regarding eligible gone concern instruments
are provided below.
UBS Switzerland AG is considered an SRB under Swiss banking law and is subject to capital regulations on a standalone
basis. As of 31 December 2025, the going concern capital and leverage ratio requirements for UBS Switzerland AG
standalone were 15.26% (including a countercyclical buffer of 0.96%) and 5.00%, respectively.
The Swiss SRB framework and going concern requirements applicable to UBS Switzerland AG standalone are the same
as those applicable to UBS Group AG consolidated. The gone concern requirement corresponds to 62% of the Group’s
going concern requirements, excluding the countercyclical buffer requirements and Pillar 2 add-ons. Outstanding total
loss-absorbing capacity-eligible unsecured debt instruments are eligible to meet gone concern requirements until one
year before maturity.
The gone concern requirements were 8.87% for the RWA-based requirement and 3.10% for the LRD-based requirement.
›
Refer to “Capital and capital ratios of our significant regulated subsidiaries” in the “Capital management” section of the UBS
Group Annual Report 2025, available under “Annual reporting” at
ubs.com/investors
, for information about the joint liability of
UBS AG and UBS Switzerland AG
Swiss SRB going and gone concern requirements and information
As of 31.12.25
RWA
LRD
CHF m, except where indicated
in %
in %
Required going concern capital
Total going concern capital
1
1
Common equity tier 1 capital
of which: minimum capital
of which: buffer capital
of which: countercyclical buffer
Maximum additional tier 1 capital
of which: additional tier 1 capital
of which: additional tier 1 buffer capital
Eligible going concern capital
Total going concern capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
of which: high-trigger loss-absorbing additional tier 1 capital
Required gone concern capital
2
Total gone concern loss-absorbing capacity
of which: base requirement including add-ons for market share and LRD
3
3
Eligible gone concern capital
Total gone concern loss-absorbing capacity
TLAC-eligible unsecured debt
Total loss-absorbing capacity
Required total loss-absorbing capacity
Eligible total loss-absorbing capacity
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
1 Includes applicable add-ons of 1.44% for risk-weighted assets (RWA) and 0.50% for leverage ratio denominator (LRD). 2 A maximum of 25% of the gone concern requirements can be met with instruments that
have a remaining maturity of between one and two years. Once at least 75% of the minimum gone concern requirement has been met with instruments that have a remaining maturity of greater than two years, all
instruments that have a remaining maturity of between one and two years remain eligible to be included in the total gone concern capital. 3 Includes applicable add-ons of 0.89% for RWA and 0.31% for LRD.
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Switzerland AG standalone 107
Swiss SRB going and gone concern information
CHF m, except where indicated
31.12.25
30.9.25
31.12.24
Eligible going concern capital
Total going concern capital
Total tier 1 capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
of which: high-trigger loss-absorbing additional tier 1 capital
Eligible gone concern capital
Total gone concern loss-absorbing capacity
TLAC-eligible unsecured debt
Total loss-absorbing capacity
Total loss-absorbing capacity
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
of which: common equity tier 1 capital ratio
Gone concern loss-absorbing capacity ratio
Total loss-absorbing capacity ratio
Leverage ratios (%)
Going concern leverage ratio
of which: common equity tier 1 leverage ratio
Gone concern leverage ratio
Total loss-absorbing capacity leverage ratio
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Europe SE consolidated 108
UBS Europe SE consolidated
Key metrics for the fourth quarter of 2025
Quarterly |
liquidity of UBS Europe SE consolidated based on Basel Committee on Banking Supervision (BCBS) Pillar 1 requirements
and in accordance with EU regulatory rules and IFRS Accounting Standards.
During the fourth quarter of 2025, available capital increased by EUR 0.1bn to EUR 3.7bn, mainly driven by the
integration of Credit Suisse (Deutschland) AG. Risk-weighted assets were stable. The leverage ratio exposure increased
by EUR 0.3bn to EUR 56.0bn in line with balance sheet movements.
The average liquidity coverage ratio remained well above the regulatory requirement of 100%, at 141.5%. The ratio was
stable, with a EUR 0.3bn decrease in high-quality liquid assets offset by a EUR 0.3bn decrease in total net cash outflows.
The net stable funding ratio remained well above the regulatory requirements of 100%, at 137.3%. Available stable
funding increased by EUR 1.3bn, mainly due to higher intercompany funding and external issuances. Required stable
funding increased by EUR 0.8bn, mainly driven by higher levels of client-driven activity in the Investment Bank in Asian
markets.
KM1: Key metrics
1,2
EUR m, except where indicated
31.12.25
30.9.25
3
30.6.25
31.3.25
31.12.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4a
Total risk-weighted assets (RWA) (pre-floor)
4b
Minimum capital requirement
4
Risk-based capital ratios as a percentage of RWA
5
CET1 ratio (%)
5b
CET1 ratio (%) (pre-floor)
6
Tier 1 ratio (%)
6b
Tier 1 ratio (%) (pre-floor)
7
Total capital ratio (%)
7b
Total capital ratio (%) (pre-floor)
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
Total of bank CET1 specific buffer requirements (%)
12
CET1 available after meeting the bank’s minimum capital requirements (%)
5
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
6,7
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
14e
Minimum capital requirements
8
Liquidity coverage ratio (LCR)
9
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
17
LCR (%)
Net stable funding ratio (NSFR)
18
Total available stable funding
19
Total required stable funding
20
NSFR (%)
1 Based on applicable EU regulatory rules. 2 Row 9a of the FINMA template is applicable to the FINMA-regulated scope only and rows 14c and 14d have been removed because the EU does not require the disclosure
of mean values for SFTs. 3 Comparative figures have been restated to align with the regulatory reports as submitted to the European Central Bank. 4 Calculated as 8% of total RWA, based on total capital minimum
requirements, excluding CET1 buffer requirements. 5 Represents the CET1 ratio that is available for meeting buffer requirements. Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and after
considering, where applicable, CET1 capital that has been used to meet tier 1 and / or total capital ratio requirements under Pillar 1. 6 Calculated on the basis of tier 1 capital. 7 There is currently no temporary
exemption of central bank reserves for UBS Europe SE. 8 The higher of capital requirements based on 8% of RWA or 3% of LRD. 9 Figures are calculated based on a 12
‑
month average.
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Americas Holding LLC consolidated 109
UBS Americas Holding LLC consolidated
Key metrics for the fourth quarter of 2025
Quarterly |
accordance with US Basel III rules and generally accepted accounting principles in the US (US GAAP).
Effective 1 October 2025 until 2027, UBS Americas Holding LLC is subject to a stress capital buffer (an SCB) of 5.2%, in
addition to the minimum risk-based capital requirements. The SCB, subject to a floor of 2.5%, was determined by the
Federal Reserve Board following the completion of the 2025 Comprehensive Capital Analysis and Review (the CCAR)
based on Dodd–Frank Act Stress Test (DFAST) results and planned future dividends.
›
Refer to “Updated Federal Reserve Board stress capital buffer requirements” in the “Introduction” section of this report for more
information
During the fourth quarter of 2025, the common equity tier 1 (CET1) capital ratio decreased 3.0 percentage points to
18.1% and the tier 1 capital ratio decreased 2.7 percentage points to 21.8%. Both CET1 capital and tier 1 capital
decreased by USD 3.5bn, driven primarily by a USD 3.0bn return of capital to UBS AG and a net increase in deductions,
primarily from deferred tax assets (DTAs). Risk-weighted assets (RWA) decreased by USD 5.8bn to USD 75.7bn, driven by
a USD 5.2bn decrease in credit risk RWA, mainly in DTAs, derivatives and securities financing transactions, and a
USD 0.6bn decrease in market risk RWA due to a decrease of specific risk.
The tier 1 leverage ratio decreased 1.9 percentage points to 8.3%, primarily driven by the aforementioned capital
movements, and leverage ratio exposure, which increased by USD 3.1bn to USD 198.1bn. Similarly, the tier 1
supplementary leverage ratio (the SLR) decreased 1.6 percentage points to 7.1%, primarily driven by the aforementioned
capital movements and a USD 3.1bn increase in the SLR exposure.
The average liquidity coverage ratio decreased 1.3 percentage points to 127.4%, as net cash outflows increased by
USD 0.5bn and high-quality liquid assets increased by USD 0.4bn. The average net stable funding ratio decreased
1.3 percentage points to 127.3%. This was due to a USD 0.4bn increase in available stable funding and a USD 1.1bn
increase in required stable funding.
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Americas Holding LLC consolidated 110
KM1: Key metrics
1
USD m, except where indicated
31.12.25
30.9.25
30.6.25
31.3.25
31.12.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4b
Minimum capital requirement
2
Risk-based capital ratios as a percentage of RWA
5
CET1 ratio (%)
6
Tier 1 ratio (%)
7
Total capital ratio (%)
Additional CET1 buffer requirements as a percentage of RWA
8
BCBS capital conservation buffer requirement (%)
8a
US stress capital buffer requirement (%)
9
Countercyclical buffer requirement (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
BCBS total of bank CET1 specific buffer requirements (%)
11a
US total bank specific capital buffer requirements (%)
12
CET1 available after meeting the bank’s minimum capital requirements (%)
3
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
4
14
Basel III leverage ratio (%)
5
14a
Total Basel III supplementary leverage ratio exposure measure
4
14b
Basel III supplementary leverage ratio (%)
5
Liquidity coverage ratio (LCR)
15
Total high-quality liquid assets (HQLA)
4
16
Total net cash outflow
4,6
17
LCR (%)
Net stable funding ratio (NSFR)
18
Total available stable funding
4
19
Total required stable funding
4,6
20
NSFR (%)
1 As the final Basel III standards have not been implemented in the US, rows that are not applicable have been removed from the FINMA template. 2 Calculated as 8% of total RWA, based on total minimum capital
requirements, excluding CET1 buffer requirements. 3 Represents the CET1 ratio that is available to meet buffer requirements. Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and, where
applicable, minus the BCBS additional tier 1 and tier 2 capital requirements met with CET1 capital. 4 Figures are calculated on a quarterly average. 5 Calculated on the basis of tier 1 capital. 6 Reflected at 85%
of the full amount in accordance with the Federal Reserve tailoring rule.
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Americas Holding LLC consolidated 111
Material sub-group entity – creditor ranking at legal entity level
Semi-annual |
The TLAC2 table below provides an overview of the creditor ranking structure of UBS Americas Holding LLC on
a standalone basis.
As of 31 December 2025, UBS Americas Holding LLC had a total loss-absorbing capacity (TLAC) of USD 24.3bn after
regulatory capital deductions and adjustments. This amount included tier 1 capital of USD 16.5bn and USD 7.8bn of
internal long-term debt that is eligible as internal TLAC issued to UBS AG, a wholly owned subsidiary of the UBS Group
AG resolution entity.
TLAC2: Material sub-group entity – creditor ranking at legal entity level
As of 31.12.25
Creditor ranking
Total
USD m
1
2
3
4
1
Is the resolution entity the creditor / investor?
No
No
No
No
2
Description of creditor ranking
Common Equity
(most junior)
1
Preferred Shares
(Additional tier 1)
Subordinated
debt
Unsecured loans and
other pari passu
liabilities (most senior)
3
Total capital and liabilities net of credit risk mitigation
4
Subset of row 3 that are excluded liabilities
5
Total capital and liabilities less excluded liabilities (row 3 minus row 4)
6
Subset of row 5 that are eligible as TLAC
7
Subset of row 6 with 1 year ≤ residual maturity < 2 years
8
Subset of row 6 with 2 years ≤ residual maturity < 5 years
9
Subset of row 6 with 5 years ≤ residual maturity < 10 years
10
Subset of row 6 with residual maturity ≥ 10 years, but excluded perpetual
securities
11
Subset of row 6 that is perpetual securities
1 Equity attributable to shareholders, which includes share premium and reserves.
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | Credit Suisse International standalone 112
Credit Suisse International standalone
Key metrics for the fourth quarter of 2025
Quarterly |
accordance with UK Prudential Regulatory Authority regulations and IFRS Accounting Standards.
During the fourth quarter of 2025, the common equity tier 1 capital of Credit Suisse International standalone decreased
by USD 3.7bn to USD 3.0bn due to a USD 1.4bn capital repatriation and a USD 2.4bn dividend payment. Risk-weighted
assets (RWA) decreased by USD 2.6bn to USD 3.2bn. All risk types decreased, with the largest reduction in market risk
RWA due to the transferring of / exiting from trades. Leverage ratio exposure decreased by USD 9.7bn to USD 5.7bn, as
a result of decreases in reverse repos, money market loans and derivatives.
The average liquidity coverage ratio was 341.5%, compared with 353.1% in the third quarter of 2025. The quarterly
variance was driven by a decrease of USD 2.2bn in high-quality liquid assets, reflecting a decrease in treasury-controlled
assets and a USD 0.6bn decrease in net cash outflows.
The net stable funding ratio (the NSFR) of Credit Suisse International standalone remained above the regulatory
requirement of 100%, at 385.0%, compared with 310.8% in the third quarter of 2025. The movement in the NSFR,
aligned with the reduction in balance sheet exposures, was driven by a decrease of USD 1.7bn in available stable funding,
mainly reflecting a decrease in capital due to the repatriation. This was partly offset by a decrease of USD 0.8bn in required
stable funding, mainly driven by a decrease in derivative exposures, unsecured lending and other assets.
KM1: Key metrics
1
USD m, except where indicated
31.12.25
30.9.25
30.6.25
31.3.25
31.12.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4b
Minimum capital requirement
2
Risk-based capital ratios as a percentage of RWA
5
CET1 ratio (%)
6
Tier 1 ratio (%)
7
Total capital ratio (%)
Additional CET1 buffer requirements as a percentage of RWA
8
BCBS capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
BCBS total of bank CET1 specific buffer requirements (%)
12
CET1 available after meeting the bank’s minimum capital requirements (%)
3
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%)
4
Liquidity coverage ratio (LCR)
5
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
17
LCR (%)
Net stable funding ratio (NSFR)
18
Total available stable funding
19
Total required stable funding
20
NSFR (%)
1 As the final Basel III standards have not been implemented in the UK, rows that are not applicable have been removed from the FINMA template. 2 Calculated as 8% of total RWA, based on total minimum
capital requirements, excluding CET1 buffer requirements. 3 Represents the CET1 ratio that is available to meet buffer requirements. Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and,
where applicable, minus the BCBS additional tier 1 and tier 2 capital requirements met with CET1 capital. 4 On the basis of tier 1 capital. 5 Based on Pillar 1 requirements; calculated using a 12-month average.
31 December 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | Credit Suisse International standalone 113
Material sub-group entity – creditor ranking at legal entity level
Semi-annual |
a standalone basis.
As of 31 December 2025, Credit Suisse International had a total loss-absorbing capacity of USD 3.0bn after regulatory
capital deductions and adjustments. This amount represents tier 1 capital of USD 3.0bn.
TLAC2: Material sub-group entity – creditor ranking at legal entity level
As of 31.12.25
Creditor ranking
Total
USD m
1
2
3
4
1
Is the resolution entity the creditor / investor?
No
No
No
No
2
Description of creditor ranking
Common Equity
(most junior)
1
Preferred Shares
(Additional tier 1)
Subordinated
debt
Unsecured loans and
other pari passu
liabilities (most senior)
3
Total capital and liabilities net of credit risk mitigation
4
Subset of row 3 that are excluded liabilities
5
Total capital and liabilities less excluded liabilities (row 3 minus row 4)
6
Subset of row 5 that are eligible as TLAC
7
Subset of row 6 with 1 year ≤ residual maturity < 2 years
8
Subset of row 6 with 2 years ≤ residual maturity < 5 years
9
Subset of row 6 with 5 years ≤ residual maturity < 10 years
10
Subset of row 6 with residual maturity ≥ 10 years, but excluded perpetual
securities
11
Subset of row 6 that is perpetual securities
1 Equity attributable to shareholders, which includes share premium and reserves.
31 December 2025 Pillar 3 Report |
Appendix 114
Appendix
Abbreviations frequently used in our financial reports
A
ABS asset-backed securities
AG Aktiengesellschaft
AGM Annual General Meeting of
shareholders
AI artificial intelligence
A-IRB advanced internal ratings-
based
ALCO Asset and Liability
Committee
AMA advanced measurement
approach
AML anti-money laundering
AoA Articles of Association
APM alternative performance
measure
ARR alternative reference rate
ARS auction rate securities
ASF available stable funding
AT1 additional tier 1
AuM assets under management
B
BCBS Basel Committee on
Banking Supervision
BIS Bank for International
Settlements
BoD Board of Directors
C
CAO Capital Adequacy
Ordinance
CCAR Comprehensive Capital
Analysis and Review
CCF credit conversion factor
CCP central counterparty
CCR counterparty credit risk
CCRC Corporate Culture and
Responsibility Committee
CDS credit default swap
CEO Chief Executive Officer
CET1 common equity tier 1
CFO Chief Financial Officer
CGU cash-generating unit
CHF Swiss franc
CIO Chief Investment Office
CORC Compliance and
Operational Risk Control
CRM credit risk mitigation
CRO Chief Risk Officer
CST combined stress test
CUSIP Committee on Uniform
Security Identification
Procedures
CVA credit valuation adjustment
D
DBO defined benefit obligation
DCCP Deferred Contingent
Capital Plan
DFAST Dodd–Frank Act Stress Test
DisO-FINMA FINMA Ordinance on the
Disclosure Obligations of
Banks and Securities Firms
DM discount margin
DOJ US Department of Justice
DTA deferred tax asset
DVA debit valuation adjustment
E
EAD exposure at default
EB Executive Board
EC European Commission
ECB European Central Bank
ECL expected credit loss
EGM Extraordinary General
Meeting of shareholders
EIR effective interest rate
EL expected loss
EMEA Europe, Middle East and
Africa
EOP Equity Ownership Plan
EPS earnings per share
ESG environmental, social and
governance
ETD exchange-traded derivatives
ETF exchange-traded fund
EU European Union
EUR euro
EURIBOR Euro Interbank Offered Rate
EVE economic value of equity
EY Ernst & Young Ltd
F
FCA UK Financial Conduct
Authority
FDIC Federal Deposit Insurance
Corporation
FINMA Swiss Financial Market
Supervisory Authority
FMIA Swiss Financial Market
Infrastructure Act
FRTB Fundamental Review of the
Trading Book
FSB Financial Stability Board
FTA Swiss Federal Tax
Administration
FVA funding valuation
adjustment
FVOCI fair value through other
comprehensive income
FVTPL fair value through profit or
loss
FX foreign exchange
G
GAAP generally accepted
accounting principles
GBP pound sterling
GDP gross domestic product
GEB Group Executive Board
GHG greenhouse gas
GCORC Group Compliance and
Operational Risk Control
GRI Global Reporting Initiative
G-SIB global systemically
important bank
H
HQLA
high-quality liquid assets
I
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
31 December 2025 Pillar 3 Report |
Appendix 115
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.
31 December 2025 Pillar 3 Report |
Appendix 116
Cautionary statement |
of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating
to securities of or relating to UBS Group AG, UBS AG or their affiliates should be made on the basis of this report. Refer to UBS’s most recent annual report on
Form 20-
F,
quarterly reports and other information furnished to or filed with the US Securities and Exchange Commission (the SEC) on Form 6-K, available at
ubs.com/investors
, for additional information.
Rounding |
disclosed in text and tables are calculated on the basis of unrounded figures. Absolute changes between reporting periods disclosed in the text, which can be
derived from numbers presented in related tables, are calculated on a rounded basis.
Tables |
available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis. Values
that are zero on a rounded basis can be either negative or positive on an actual basis.
Websites |
of any such websites into this report.
UBS Group AG
PO Box
CH-8098 Zurich
ubs.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this
report to be signed on their behalf by the undersigned, thereunto duly authorized.
UBS Group AG
By: _/s/ David Kelly _____________
Name: David Kelly
Title: Managing Director
By: _/s/ Ella Copetti-Campi ______________
Name: Ella Copetti-Campi
Title: Executive Director
UBS AG
By: _/s/ David Kelly _____________
Name: David Kelly
Title: Managing Director
By: _/s/ Ella Copetti-Campi ______________
Name: Ella Copetti-Campi
Title: Executive Director
Date: March 9, 2026