Annual Report 2025
1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
20-F
(Mark One)
☐
REGISTRATION STATEMENTPURSUANT TO SECTION 12(b) OR (g) OF THE
SECURITIES EXCHANGE ACT OF 1934
OR
☑
ANNUAL REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended
December 31, 2025
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
OR
☐
SHELL COMPANY REPORTPURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
UBS Group AG
Commission file number:
1-36764
(Exact name of registrant as specified in its charter)
Switzerland
(Jurisdiction of incorporation or organization)
Bahnhofstrasse 45
,
CH-8001
Zurich
,
Switzerland
(Address of principal executive office)
David Kelly
Uetlibergstrasse 231
8045
Zurich
,
Switzerland
Telephone:
203
719-5427
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol(s)
Name of each exchange on
which registered
Ordinary Shares (par value of USD 0.10 each)
UBS
New York Stock Exchange
Securities registered or to be registered pursuant to Section 12(g) of the Act:
None.
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
None.
Annual Report 2025
2
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of 31 December 2025:
UBS Group AG
Ordinary shares, par value USD 0.10 per share:
3,341,581,714
ordinary shares
(including 249,882,523 treasury shares)
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes
☐
No
☑
If this report is an annual or transition report, indicate by check mark if the registrant is not required to filereports pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934.
Yes
☐
No
☑
Note — Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 from their obligations under those Sections.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
☑
No
☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period
that the registrant was required to submit such files).
Yes
☑
No
☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or an
emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer” and “emerging growth company”
in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☑
Accelerated filer
☐
Non-accelerated filer
☐
Emerging growth company
☐
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark
if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards† provided pursuant to Section 13(a) of the Exchange Act.
☐
† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards
Board to its Accounting Standards Codification after April 5, 2012.
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the
effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.
7262(b)) by the registered public accounting firm that prepared or issued its audit report.
☑
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statementsof the
registrant included in the filing reflect the correction of an error to previously issued financial statements.
☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-
based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to
§240.10D-1(b).
☐
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this
filing:
U.S. GAAP
☐
International Financial Reporting Standards
as issued by the International Accounting
Standards Board
☑
Other
☐
Annual Report 2025
3
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the
registrant has elected to follow.
Item 17
☐
Item 18
☐
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act)
Yes
☐
No
☑
Annual Report 2025
4
Cautionary Statement:
Refer to the
Cautionary statement regarding forward-looking statements
section in the Annual Report
2025 (page 374).
Cross-reference table
Set forth below are the respective items of SEC Form 20-F, and the locations in this document where the corresponding
information can be found.
●
Annual Report
refers to the Annual Report 2025 of UBS Group AG annexed hereto, which forms an integral part
hereof.
●
Supplement
refers to certain supplemental information contained in this forepart of the Form 20-F, starting on page
11 following the cross-reference table.
●
Financial Statements
refers to the consolidated financial statements of UBS Group AG, contained in the Annual
Report.
In the cross-reference table below, page numbers refer either to the Annual Report or the Supplement, as noted.
Please see page 9 of the Annual Report for definitions of terms used in this Form 20-F relating to UBS.
Form 20-F item
Response or location in this filing
Item 1
.Identity of Directors,
Senior Management and
Advisors.
Not applicable.
Item 2
.Offer Statistics and
Expected Timetable.
Not applicable.
Item 3.
Key Information
B – Capitalization and
Indebtedness.
Not applicable.
C – Reasons for the Offer and
Use of Proceeds.
Not applicable.
D – Risk Factors.
Annual Report,
Risk factors
(50-61).
Item 4
.Information on the Company.
A
– History and Development of
the Company
1-3: Annual Report,
Corporate information
and
Contacts
(7). The registrants' agent is
Patrick T. Shilling, 11 Madison Avenue,New York, New York10010.
4: Annual Report,
Our evolution
(14);
Integration of Credit Suisse
(15);
Our strategy
(17-18);
Our businesses
(21-28); Note 28 to the Financial Statements (
Changes in
organization and acquisitions and disposals of subsidiaries and businesses
) (347-348).
5-6: Annual Report,
Our businesses
(21-28), Note 11 to the Financial Statements
(
Property, equipment and software)
(286), and
Note 28 to the Financial Statements
(
Changes in organization and acquisitions and disposals of subsidiaries and businesses
)
(347-348).
7: Annual Report,
Integration of Credit Suisse
(15), Note 28 to the Financial Statements
(
Changes in organization and acquisitions and disposals of subsidiaries and businesses
)
(347-348). See also Item 10.C below.
8: Annual Report, Appendix
Information sources
(373).
B – Business Overview.
1, 2 and 5: Annual Report,
Our strategy, business model and environment
(15-61), Note
2a to the Financial Statements (
Segment reporting)
(272-273)
and Note 2b to the
Financial Statements (
Segment reporting by geographic location)
(274). See also
Supplement (11).
3: Annual Report,
Seasonal characteristics
(69).
4: Not applicable.
6: None.
7: The basis for any statement generally accompanies the statement, except where
marked in the Annual Report as a statement based on publicly available information or
internal estimates. Annual Report,
Our businesses
(21-28),
Our stakeholders
(34-40).
8: Annual Report,
Regulation and supervision
(41-45),
Regulatory and legal
developments
(45-50),
Risk factors
(50-61).
Supplement (12).
C – Organizational Structure.
Annual Report,
Our evolution
(14) and Note 27 to the Financial Statements (
Interests in
subsidiaries and other entities
) (344-347).
Annual Report 2025
5
D – Property, Plant and
Equipment.
Annual Report,
Property, plant and equipment
(359)
,
Note 1a) 8) to the Financial
Statements (
Summary of material accounting policies, Material accounting policies:
Property, equipment and software
) (269), Note 11 to the Financial Statements (
Property,
equipment and software)
(286).
Information required by SEC
Regulation S-K Part 1400
Annual Report,
Information required by Subpart 1400 of Regulation S-K
(360-365),
Loss
history statistics
(110-111),and Note 9 to the Financial Statements (
Financial assets at
amortized cost and other positions in scope of expected credit loss measurement)
(280-
284).
Item 4A
.Unresolved Staff
Comments.
None.
Item 5
.Operating and Financial Review and Prospects.
A
– Operating Results.
1: Annual Report,
Our key figures
(8),
Targets,capital guidance and ambitions
(19-20),
Our businesses
(21-28),
Financial and operating performance
(62-85),
Income statement
(246), Note 1b to the Financial Statements (
Changes in IFRS Accounting Standards and
Interpretations
(271), Note 2a to the Financial Statements (
Segment reporting)
(272-273),
and
Selected financial data
(358-359). The Notes to the Financial Statements provide
additional detail on the components of revenue and expenses.
2: Not applicable
3: Annual Report,
Risk factors
(50-61),
Capital management
(131-141),
Currency
Management
(151) and Note 24 to the Financial Statements (
Hedge Accounting)
(332-
334).
4:
Annual Report,
Our environment
(28-33),
Regulation and supervision
(41-45)
and
Regulatory and legal developments
(45-50),
Accounting and financial reporting
(62),
Note 1 b) to the Financial Statements (
Changes to IFRS accounting standards and
interpretations
(271).
A discussion on the results for the year 2024 compared with 2023 can be found in UBS
annual report 2024 filed with the SEC on Form 20-F on March 17, 2025, under
Financial
and operating performance
and under
Financial statements
of UBS Group AG.
B – Liquidity and Capital
Resources.
1: Annual Report,
Risk factors
(50-61)
,
Financial and operating performance
(62-85),
Seasonal characteristics
(69),
Interest rate risk in the banking book
(115-117),
Risk
,
capital,
liquidity and funding, and balance sheet
(88-153)
,
Note 22 to the Financial
Statements (
Restricted and transferred financial assets)
(326-329), Note 23 to the
Financial Statements (
Maturity analysis of assets and liabilities
) (329-331) and Note 27
to the Financial Statements (
Interests in subsidiaries and other entities
) (344-347).
Liquidity and capital management is undertaken at UBS as an integrated asset and
liability management function. While we believe our 'working capital' is sufficient for the
company's present requirements, it is our opinion that, as a bank, our liquidity coverage
ratio (LCR) is the more relevant measure. For more information see, Annual Report,
Liquidity coverage ratio
(144).
2: Annual Report,
Risk
,
capital,
liquidity and funding, and balance sheet
(88-153),
Currency Management
(151), Note 10 to the Financial Statements (
Derivative
instruments)
(284-285), Note 15 to the Financial Statements (
Debt issued designated at
fair value)
(289), Note 16 to the Financial Statements (
Debt issued measured at
amortized cost
) (290), Note 18 to the Financial Statements (
Other liabilities
) (298), and
Note 24 to the Financial Statements (
Hedge Accounting
) (332-334).
3: Annual Report,
Material cash requirements
(149),
Liquidity and funding management
(142-145), Note 23 to the Financial Statements (
Maturity analysis of assets and
liabilities
) (329-331), and Note 11 to the Financial Statements (
Property, equipment and
software)
(286).
C—Research and Development,
Patents and Licenses, etc.
Not applicable.
D—Trend Information.
Annual Report,
Our businesses
(21-28),
Our environment
(28-33),
Regulatory and legal
developments
(45-50),
Risk factors
(50-61),
Financial and operating performance
(62-
85), and
Top and emergingrisks
(88-89).
E—Critical Accounting
Estimates
Not applicable.
Annual Report 2025
6
Item 6.
Directors, Senior Management and Employees.
A
– Directors and Senior
Management.
1, 2 and 3: Annual Report,
Board of Directors
(164-179) and
Group Executive Board
(180-188).
4, 5: None.
B – Compensation.
1: Annual Report,
Compensation
(194-237), Note 1a, 4) to the Financial Statements
(
Share-based and other deferred compensation plans
) (267-268), Note 26 to the Financial
Statements (
Employee benefits: variable compensation)
(340-343), and Note 29 to the
Financial Statements (
Related parties)
(349-350).
2: Annual Report,
Compensation
(194-237), and Note 25 to the Financial Statements
(
Post-employment benefit plans)
(334-339).
C – Board practices.
1: Annual Report,
Board of Directors
(164-179). The term of office for members of the
Board of Directors and its Chairman expires after completion of the next Annual General
Meeting. The next UBS Group AG Annual General Meeting is scheduled for 15 April
2026.
2: Annual Report,
Board of Directors
(164-179),
Compensation
(194-237),
Clauses on
change of control
(189), and Note 29 to the Financial Statements (
Related parties
) (349-
350).
3: Annual Report,
Audit Committee
(173),
Compensation Committee
(174) and
Auditors
189-191).
D—Employees.
Annual Report,
Employees
(36-38).
UBS’s Human Rights Statement and the Code of Conduct and Ethics of UBS (the Code)
reinforce the firm’s responsibility for respecting workers’ rights. We actively engage with
our formal employee representation groups and specifically the UBS European Employee
Forum, which includes representatives from all the EU member states where the UBS
Group has a presence. This forum considers topics related to performance, operations and
workplace conditions, while local works councils focus on topics such as benefits,
workplace conditions and potential reorganizations. Together, they represent 51.8% of
our global workforce (2024: 52.0%). Where applicable, our operations are subject to
collective bargaining agreements.
UBS Group AG
personnel by business division and Group functions:
As of
Full-time equivalents
31.12.25
31.12.24
31.12.23
Personnel (full-time equivalents)
103,177
108,648
112,842
Global Wealth Management
29,057
30,093
31,367
Personal & Corporate Banking
11,208
10,709
10,385
Asset Management
3,443
3,412
3,753
Investment Bank
11,559
11,235
11,305
Non-Core and Legacy
650
2,470
3,684
Group functions
47,261
50,728
52,348
E—Share Ownership.
1 and 2: Annual Report,
Compensation
(194-237), Note 26 to the Financial Statements
(
Employee benefits: variable compensation
) (340-343) and Note 29, b) to the Financial
Statements (Related Parties,
Equity holdings of key management personnel
)
(350).
F—Disclosure of a registrant’s
action to recover erroneously
awarded compensation.
Not applicable.
Annual Report 2025
7
Item 7.
Major Shareholders and Related Party Transactions.
A—Major Shareholders.
Annual Report,
Group structure and shareholders
(157-158),
Share capital structure
(158-162) and
Votingrights, restrictions and representation
(162).
According to the mandatory FMIA disclosure notifications filed with UBS Group AG and
SIX, the following entities held more than 3% of the total voting rights of UBS Group
AG, with the following number of shares:
Shareholder, date of last notification
Number of shares disclosed
BlackRock Inc., New York, on 30 November 2023
173,509,685
Shareholder
Percentage of shares held (according to last
notification received up to end of given year)
2025
2024
2023
Norges Bank, Oslo
4.90
5.00
4.79
BlackRock Inc., New York
5.01
5.01
5.01
On 17 February 2026, Norges Bank, Oslo, disclosed a holding of less than 3% of the total
share capital of UBS Group AG. No new disclosures of significant shareholdings have
been made since that date.
B—Related Party Transactions.
1, 2: Annual Report,
Loans granted to GEB members
(231)
, Loans granted to BoD
members
(232)
and
Note 29 to the Financial Statements (
Related parties
)
(349-350).
C—Interests of Experts and
Counsel.
Not applicable.
Item 8
.Financial Information.
A—Consolidated Statements
and Other Financial
Information.
1, 2, 3, 4: Please see Item 18 of this Form 20-F.
5: Not applicable.
6: Annual Report,
Our businesses
(21-28),
Financial and operating performance
(62-85)
and Note 2b to the Financial Statements (
Segment reporting by geographic location
)
(274).
7: Information on material legal and regulatory proceedings is in Note 17 to the Financial
Statements (
Provisions and contingent liabilities
) (290-298).
For developments during the year, please see also the note
Provisions and contingent
liabilities
in the Consolidated Financial Statements section in our respective quarterly
reports for the first, second and third quarters 2025, filed on Forms 6-K dated April 30,
2025, July 30, 2025 and October 29, 2025 (respectively), as well as the
Provisions and
contingent liabilities
section in the Fourth Quarter 2025 Report, filed on Form 6-K dated
February 4, 2026. The disclosures in each such quarterly report speak only as of their
respective dates.
8: Annual Report,
Dividend distribution
(151)
, Distributions to shareholders
(161).
B—Significant Changes.
None.
Item 9
.The Offer and Listing.
A
– Offer and Listing Details.
1, 2, 3, 5, 6, 7: Not applicable.
4: Annual Report,
Listing of UBS Group AG shares
(153).
B—Plan of Distribution.
Not applicable.
C—Markets.
Cover page (1).
Annual Report,
Listing of UBS Group AG shares
(153)
D—Selling Shareholders.
Not applicable.
E—Dilution.
Not applicable.
F—Expenses of the Issue.
Not applicable.
Annual Report 2025
8
Item 10
.Additional Information.
A—Share Capital.
Not applicable.
B—Memorandum and Articles
of Association.
1: Supplement (13-16).
2: Annual Report,
Compensation governance
(202-203),
Compensation for the
Board of
Directors
(221-223). Supplement (13-16).
3: Annual Report,
Share
capital structure
(158-162),
Shareholders' participation rights
(162-163),
Elections and terms of office
(172),
Change of control and defense measures
(189). Supplement (13-16).
4: Supplement (13-16).
5: Annual Report,
Shareholders' participation rights
(162-163). Supplement (13-16).
6: Annual Report,
Transferability, voting rights and nominee registration
(161-162),
Shareholders' participation rights
(162-163).
7: Annual Report,
Change of control and defense measures
(189).
8: Annual Report,
Significant Shareholders
(157-158).
9: Supplement (13-16) and Annual Report, D
ifferences from corporate governance
standards relevant to US-listed companies
(156-157),
Compensation governance
(202-
203),
Compensation for the
Board of Directors
(221-223),
Share
capital structure
(158-
162),
Shareholders' participation rights
(162-163),
Elections and terms of office
(172),
Transferability, voting rights and nominee registration
(161-162),
Change of control and
defense measures
(189),
Significant Shareholders
(157-158).
10:
Supplement (13-16).
C—Material Contracts.
The Terms & Conditions of the several series of capital instruments issued to date, and to
be issued pursuant to Deferred Capital Contingent Plans, are exhibits 4.1 through 4.25 to
this Form 20-F. These notes are described under
Swiss SRB total loss-absorbing capacity
framework
on pages 132-133 of the Annual Report and
Our deferred compensation plans
on pages 214-215 of the Annual Report.
The Asset Transfer Agreement by which certain assets and liabilities of UBS AG were
transferred to UBS Switzerland AG is filed as Exhibit 4.26, and is described under
Joint
liability of UBS AG and UBS Switzerland AG
on page 137 of the Annual Report.
For detailed information regarding material agreements concluded in connection with
litigation, please refer to Exhibits 4.27 and 4.28, the Annual Report, Note 17 to the
Financial Statements (
Provisions and Contingent Liabilities
) (290-298) and to the UBS
Group AG Annual Report 2024, Note 18 (
Provisions and Contingent Liabilities
) (304-
312). These sections contain information about material agreements executed by the
company or its subsidiaries during litigation matters in the 2025 and 2024 financial years,
respectively, which fall outside the usual business activities.
UBS AG entered into a definitive merger agreement with Credit Suisse AG on 7
December 2023, which was filed as Exhibit 4.22 to UBS's Annual Report on Form 20-F
for the fiscal year ended December 31, 2023. Also, UBS Switzerland AG and Credit
Suisse (Schweiz) AG entered into a merger agreement on 9 February 2024, which was
filed as Exhibit 4.23 to UBS's Annual Report on Form 20-F for the fiscal year ended
December 31, 2023. The mergers described in these agreements were carried out with
some procedural simplifications and without any consideration given that both companies
were, at the time of merger, wholly-owned by the same parent entity. Upon completion
on 31 May 2024 for UBS AG and on 1 July 2024 for UBS Switzerland AG, all assets and
liabilities of Credit Suisse AG and Credit Suisse (Schweiz) AG, respectively, were
transferred automatically to UBS AG and UBS Switzerland AG, respectively.
UBS Americas Inc and Credit Suisse (USA) LLC entered into a merger agreement on 2
February 2026 which became effective on that date. The merger was on a simplified basis
and without any consideration given that both companies were, at the time of merger,
wholly-owned by the same parent entity. Upon the effectiveness of the merger UBS
Americas Inc succeeded to all the assets and liabilities of Credit Suisse (USA) LLC in
accordance with the terms of the merger agreement.
Annual Report 2025
9
D—Exchange Controls.
Other than in relation to economic sanctions, there are no restrictions under the Articles
of Association of UBS Group AG, nor under Swiss law, as presently in force, that limit
the right of non-resident or foreign owners to hold UBS’s securities freely. There are
currently no Swiss foreign exchange controls or other Swiss laws restricting the import or
export of capital by UBS or its subsidiaries, nor restrictions affecting the remittance of
dividends, interest or other payments to non-resident holders of UBS securities. The
Swiss federal government may impose sanctions on particular countries, regimes,
organizations or persons which may create restrictions on exchange of control. A current
list, in German, French and Italian, of such sanctions can be found at www.seco-
admin.ch. UBS may also be subject to sanctions regulations from other jurisdictions
where it operates imposing further restrictions.
E—Taxation.
Supplement (17-19).
F—Dividends and Paying
Agents.
Not applicable.
G—Statement by Experts.
Not applicable.
H—Documents on Display.
UBS files periodic reports and other information with the Securities and Exchange
Commission. You may read and copy any document that we file with the SEC on the
SEC’s website,
www.sec.gov
. Much of this information may also be found on the UBS
website at
www.ubs.com/investors
.
I—Subsidiary Information.
Not applicable.
J—Annual Report to Security
Holders
Not applicable
Item 11
.Quantitative and Qualitative Disclosures About Market Risk.
(a) Quantitative Information
About Market Risk.
Annual Report,
Market risk
(111-118),
Total loss-absorbing capacity
(134-137), and
Currency management
(151).
(b) Qualitative Information
About Market Risk.
Annual Report,
Market risk
(111-118),
Total loss-absorbing capacity
(134-137), and
Currency management
(151).
(c) Interim Periods.
Not applicable.
Item 12.
Description of Securities Other than Equity Securities.
A
– Debt Securities
Not applicable.
B – Warrants and Rights
Not applicable.
C – Other Securities
Not applicable.
D – American Depositary Shares
Not applicable.
Item 13
.Defaults, Dividend
Arrearages and Delinquencies.
There has been no material default in respect of any indebtedness of UBS or any of its
significant subsidiaries or any arrearages of dividends or any other material delinquency
not cured within 30 days relating to any preferred stock of UBS Group AG or any of its
significant subsidiaries.
Item 14.
Material Modifications
to the Rights of Security Holders
and Use of Proceeds.
None.
Item 15.
Controls and Procedures.
(a)
Disclosure Controls and
Procedures
Annual Report,
US disclosure requirements
(192), and
Exhibit 12 to this Form 20-
F.
(b) Management’s Annual
Report on Internal Control over
Financial Reporting
Annual Report,
Management’sreport on internal control over financial reporting
(139).
(c) Attestation Report of the
Registered Public Accounting
Firm
Annual Report,
Reports of Independent Registered Public Accounting Firm
(240-245).
(d) Changes in Internal Control
over Financial Reporting
None.
Item 16A.
Audit Committee
Financial Expert.
Annual Report,
Audit Committee
(173).
All Audit Committee members have accounting or related financial management
expertise and, in compliance with the rules established pursuant to the US Sarbanes-
Oxley Act of 2002, at least one member, the Chairperson Jeremy Anderson, qualifies as a
financial expert.
Item 16B.
Code of Ethics.
Annual Report,
The Code of Conduct and Ethics of UBS
(40).
UBS's Code of Conduct and Ethics (the Code) is published on our website under
https://www.ubs.com/code.The Code does not include a waiver option, and no waiver
from any provision of the Code was granted to any employee in 2025. Minor adjustments
were made following our 2025 review, focused on updating language to reflect relevant
developments, not affecting key elements of the Code.
Annual Report 2025
10
Item 16C.
Principal Accountant
Fees and Services.
Annual Report,
Auditors
(189-191).
None of the non-audit services so disclosed were approved by the Audit Committee
pursuant to paragraph (c) (7)(i)(C) of Rule 2-01 of Regulation S-X.
Item 16D.
Exemptions from the
Listing Standards for Audit
Committees.
Not applicable.
Item 16E.
Purchases of Equity
Securities by the Issuer and
Affiliated Purchasers.
Annual Report,
Holding of UBS Group AG shares
(152-153),
Letter to Shareholders
(2-
6).
Item 16F.
Changes in
Registrant’s Certifying
Accountant.
Not applicable.
Item 16G.
Corporate
Governance.
Annual Report,
Differences from corporate governance standards relevant to US-listed
companies
(156-157).
Item 16H.
Mine Safety
Disclosure.
Not applicable.
Item 16I.
Disclosure Regarding
Foreign Jurisdictions that
Prevent Inspections
Not applicable.
Item 16J.
Insider trading
policies.
UBS has
adopted
the following policies governing the purchase, sale and other
dispositions of its securities by its employees and senior management, implementing
procedures designed to promote compliance with relevant insider trading rules and
regulations:
UBS Group Global Policy on Personal Investment
,
UBS Group Pre-
Clearance and Disclosure Requirements for Group Senior Management
, and
UBS Group
Dealing in UBS Shares and UBS Long TermDebt Securities by UBS
. These are filed as
Exhibits 11.1, 11.2 and 11.3 hereto.
Item 16K.
Cybersecurity.
Annual Report,
Operational risks affect our business
(53-54),
Risk management and
control
(88-130),
Board of Directors
(164-179),
Cybersecurity governance
(177), and
Group Executive Board
(180-188).
Item 17.
Financial Statements.
Not applicable.
Item 18.
Financial Statements.
Annual Report,
Financial statements
(238-354),
Significant regulated subsidiary and
sub-group information
(355-356) and
Additional regulatory information
(358-365).
Item 19.
Exhibits
Supplement (20-21).
Annual Report 2025
11
Supplemental information
Item 4. Information on the Company
B – Business Overview
Item 4.B.2.Geographic breakdown of total revenues of UBS Group AG consolidated
UBSGroupAG’sFinancialStatementsarepreparedinaccordancewithIFRSAccountingStandards,asissuedbythe
International Accounting Standards Board and are stated in USD. Theoperating regions shown in the table below correspond to
the regional management structure of UBS. The allocation of total revenues to these regions reflects, and is consistent with, the
basis on which the business is managed and its performance is evaluated. These allocations involve assumptionsand judgments
that management considersto be reasonableand may berefined to reflectchanges in estimatesor management structure.The
main principlesof theallocation methodologyare thatclient revenuesare attributedto thedomicile ofthe givenclient, and
trading and portfolio management revenuesare attributed to thecountry where the risk ismanaged. This revenue attribution is
consistent withthe mandateofthe regionalPresidents. Certainrevenues, suchas thoserelated toNon-coreand Legacyand
Group Items, are included in the
Global
column.
For 2023, the allocation of total revenues bygeographical region for Credit Suisse is not available onthe same allocation basis
as for the UBS Group and the costto develop this information would have been excessive.Therefore, as permitted under IFRS
8, the respective information is notdisclosed. UBS AG and Credit SuisseAG disclosed total revenues by geographicalregion in
their 2023 annual reports according to their respective allocation methodologies.
USD billion
Business Division
FY
Americas
1
Asia Pacific
EMEA
Switzerland
Global
2
Total
Global Wealth
Management
2025
12.2
4.0
4.9
4.2
0.7
26.0
2024
11.3
3.6
4.7
4.1
0.9
24.5
2023
3
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Personal &
Corporate Banking
2025
0.0
0.0
0.0
9.2
0.0
9.2
2024
0.0
0.0
0.0
9.3
0.0
9.3
2023
3
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Asset Management
2025
0.9
0.4
0.5
1.4
0.0
3.2
2024
0.8
0.4
0.4
0.9
0.7
3.2
2023
3
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Investment Bank
2025
4.5
3.6
3.1
1.1
0.0
12.3
2024
4.8
2.9
2.6
0.7
0.0
10.9
2023
3
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Non-core and
Legacy
2025
0.0
0.0
0.0
0.0
0.2
0.2
2024
0.0
0.0
0.0
0.0
1.6
1.6
2023
3
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Group Items
2025
0.0
0.0
0.0
0.0
(1.2)
(1.2)
2024
0.0
0.0
0.0
0.0
(1.0)
(1.0)
2023
3
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Group
2025
17.6
8.0
8.5
15.8
(0.4)
49.6
2024
16.8
6.8
7.7
15.1
2.2
48.6
2023
3
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1
Predominantly related to the US.
2
2025 includes certain revenues within Global WealthManagement that were not allocated
to geographical regions;2024 includes certainrevenues within AssetManagement and GlobalWealthManagement that were
not allocated to geographical regions.
3
For 2023, the allocation of total revenues bygeographical region for Credit Suisse is not
available on the sameallocation basis as forthe UBS Group andthe cost to developthis information would havebeen excessive.
Therefore, as permitted under IFRS 8, the respective information is not disclosed.
Annual Report 2025
12
Disclosure Pursuant To Section 219 of the Iran Threat Reduction And Syrian Human Rights Act
Section 219 of the US Iran Threat Reduction and Syria Human Rights Act of 2012 (“ITRA”) added Section 13(r) to the US
Securities Exchange Act of 1934, as amended (the “Exchange Act”) requiring each SEC reporting issuer to disclose in its
annual and, if applicable, quarterly reports whether it or any of its affiliates have knowingly engaged in certain activities,
transactions or dealings relating to Iran or with the Government of Iran or certain designated natural persons or entities
involved in terrorism or the proliferation of weapons of mass destruction during the period covered by the report. The required
disclosure may include reporting of activities not prohibited by US or other law, even if conducted outside the US by non-US
affiliates in compliance with local law. Pursuant to Section 13(r) of the Exchange Act, we note the following for the period
covered by this annual report:
UBS has a Group Sanctions Policy that prohibits transactions involving sanctioned countries, including Iran, andsanctioned
individuals and entities. However, UBS Switzerland AG maintains one account involving the Iranian government under the
auspices of the United Nations in Geneva after agreeing with the Swiss government that it would do so only under certain
conditions. These conditions include that payments involving the account must: (1) be made within Switzerland; (2) be
consistent with paying rent, salaries, telephone and other expenses necessary for its operations in Geneva; and (3) not involve
any Specially Designated Nationals (SDNs) blocked or otherwise restricted under US or Swiss law. In 2025, the gross
revenues for this UN-related account were approximately USD 75,383 (CHF 59,773). We do not allocate expenses to specific
client accounts in a way that enables us to calculate net profits with respect to any individual account. UBS SwitzerlandAG
intends to continue maintaining this account pursuant to the conditions it has established with the Swiss Governmentand
consistent with its Group Sanctions Policy.
In connection with former and now-closed trade finance arrangements, UBS Switzerland AG has maintained one existing
account relationship with an Iranian bank. This account was established prior to the US designation of this bank and
maintained due to the existing trade finance arrangements. In 2007, following the designation of the bank pursuant to sanctions
issued by the US, UN and Switzerland, the account was blocked under Swiss law and remained subject to blocking
requirements until January 2016. The blocking requirements under the Swiss law were re-introduced in October 2025
following the re-imposition of UN sanctions. Client assets as of 31 December 2025 were CHF 3,097.40. Gross revenues were
USD 16 equivalent (CHF 13).
In addition to the above, UBS Switzerland AG processed a small number of de minimis payments related to the operationof
Iranian diplomatic missions in Switzerland and related to fees for ministerial government functions such as issuing passports
and visas.
Annual Report 2025
13
Item 10.Additional Information.
B—Memorandum and Articles of Association.
Please see the Articles of Association of UBS Group AG (Exhibit 1.1 to this Form 20-F) and the Organization Regulations of
UBS Group AG (Exhibit 1.2 to this Form 20-F).
Set forth below is a summary of material provisions of the Articles of Association of UBS Group AG (the “Articles”),
Organization Regulations of UBS Group AG (the “Organization Regulations”) and relevant Swiss laws, in particular the Swiss
Code of Obligations, relating to the ordinary shares of UBS Group AG (the “shares”). This description does not purport to be
complete and is qualified in its entirety by references to Swiss law, including Swiss company law, and to the Articles and
Organization Regulations.
The principal legislation under which UBS Group AG operates, and under which the shares are issued, is the Swiss Code of
Obligations.
The Company
Registration and Business Purpose
UBS Group AG was incorporated and registered as a corporation limited by shares (
Aktiengesellschaft
) under the laws of
Switzerland. UBS Group AG was entered into the commercial register of Canton Zurich on June 10, 2014 under the
registration number CHE-395.345.924 and has its registered domicile in Zurich, Switzerland. The business purpose of UBS
Group AG, as set forth in article 2 of the Articles, is the acquisition, holding, management and sale of direct and indirect
participations in enterprises of any kind, in particular in the area of banking, financial, advisory, trading and service activities
in Switzerland and abroad. UBS Group AG may establish enterprises of any kind in Switzerland and abroad, hold equity
interests in these companies, and conduct their management. UBS Group AG is authorized to acquire, mortgage and sell real
estate and building rights in Switzerland and abroad. UBS Group AG may provide loans, guarantees and other types of
financing and security for group companies and borrow and invest capital on the money and capital markets.
Repurchase of Shares
Swiss law limits a corporation’s ability to hold or repurchase its own shares. UBS Group AG and its subsidiaries may
repurchase shares only if and to the extent that (i) UBS Group AG has freely distributable reserves in the amount of the
purchase price and (ii) the aggregate nominal value of all shares held by UBS Group AG and its subsidiaries does not exceed
10% of UBS Group AG’s nominal share capital (or 20% of UBS Group AG’s nominal share capital in specific circumstances).
Repurchases for cancellation purposes approved by the shareholders’ meeting are not subject to the 10% threshold for own
shares within the meaning of article 659 paragraph 2 of the Swiss Code of Obligations. UBS Group AG must record
repurchased shares in its standalone financial statements prepared in accordance with Swiss law as a negative equity item in an
amount equal to the purchase price of each repurchased share. Furthermore, in UBS Group AG’s consolidated financial
statements, own shares are recorded at cost and reported as treasury shares, resulting in a reduction in total shareholders’
equity. Shares held by UBS Group AG or its subsidiaries do not carry any rights to vote at shareholders’ meetings, but are
entitled to the economic benefits applicable to UBS Group AG’s shares generally.
Sinking Fund Provisions
There are no provisions in Swiss law or in the Articles requiring us to put resources aside for the exclusive purpose of
redeeming bonds or repurchasing shares.
Duration and Liquidation
UBS Group AG has an unlimited duration.
Under Swiss law, we may be dissolved at any time by way of liquidation or in the case of a merger in accordance with the
Swiss Federal Act on Merger, Demerger, Transformationof Assets of October 3, 2003, as amended, based on a resolution
passed at a shareholders’ meeting with the approval of at least two-thirds of the votes, and a majority of the aggregate nominal
value of shares, in each case represented at such meeting. As UBS Group AG is the Swiss parent of a financial group, the
Swiss Financial Market Supervisory Authority FINMA is the only competent authority to open restructuring or liquidation
(bankruptcy) proceedings with respect to UBS Group AG.
Under Swiss law, any surplus arising out of a liquidation (after the settlement of all claims of all creditors) must be used first to
repay the nominal share capital of UBS Group AG. Thereafter, any balance must be distributed to shareholders in proportion to
the paid-up nominal value of shares held.
Independent Auditors
Ernst & Young Ltd
, Aeschengraben 27, 4051
Basel, Switzerland
, PCAOB number
1460
, have been appointed as statutory
auditors and as auditors of the consolidated accounts of UBS Group AG. The auditors are subject to election each year by the
shareholders at the annual general meeting.
Annual Report 2025
14
Board of Directors
Conflicts of Interests
Swiss law requires directors and members of senior management to inform the BoD immediately and comprehensively of any
conflicts of interest affecting them. The BoD then has to take the measures required to safeguard the interests of the
corporation. Directors and officers are personally liable to the corporation for any breach of these provisions. In addition,
Swiss law contains a provision under which payments made to a shareholder, a director, a person involved in the corporation's
management activities and a member of the advisory board or any person associated therewith, other than at arm’s length, must
be repaid to the corporation if they were unduly taken.
In addition, the Organization Regulations provide that the member of the BoD or senior management with a conflict of interest
may participate in discussions and a double vote (meaning a vote with and a vote without the conflicted individual) shall take
place. A binding decision on the matter requires the same outcome in both votes. This is subject to exceptional circumstances
in which the best interests of UBS dictate that the member of the BoD or senior management with a conflict of interest shall
not participate in the discussions and decision-making involving the interest at stake.
Borrowing Power
Neither Swiss law nor the Articles restrict in any way our power to borrow and raise funds, provided that any such borrowing
is entered into on arms’ length terms.
UBS Group AG, as a listed company, may grant loans to members of its BoD based on the Articles. The Articles restrict UBS
Group AG’s ability to grant loans to BoD members as follows: First, loans to the independent members of the BoD shall be
made in accordance with the customary business and market conditions. Second, loans to the non-independent members of the
BoD shall be made in the ordinary course of business on substantially the same terms as those granted to UBS employees.
Third, the total amount of such loans shall not exceed CHF 20m per member.
Retirement of Board Members
There is no age-limit requirement for retirement of the members of the BoD. The term of office for each BoD member is until
the next annual general meeting of shareholders, and no BoD member may serve for more than 10 consecutive termsof office.
In exceptional circumstances the BoD can extend this limit.
Shares and Shareholders
Shares
The shares are registered shares
(Namenaktien)
with a nominal value of USD 0.10 per share and are issued as uncertificated
securities (
einfache Wertrechte
) (in the sense of the Swiss Code of Obligations). The shares are fully paid up, and there is no
liability of shareholders to further capital calls by UBS Group AG. The shares rank
pari passu
in all respects with each other,
including voting rights, entitlement to dividends, share of the liquidation proceeds in case of the liquidation of UBS Group AG,
preemptive rights in the event of a share issue (
Bezugsrechte
) and advance subscription rights in the event of the issuance of
equity-linked securities (
Vorwegzeichnungsrechte
).
The Articles provide that we may elect to print and deliver certificates for shares at any time. However, shareholders have no
right to request the printing and delivery of certificates for shares or the conversion of the shares into another form.
Net Profits and Dividends
Swiss law requires that at least 5% of the annual net profits of UBS Group AG must be retained and booked as statutory
retained earnings for so long as these retained earnings, together with the statutory capital reserve, amount to no less than 20%
of UBS Group AG’s share capital registered in the commercial register. Any remaining net profit may be allocated by the
shareholders represented at the applicable shareholders’ meeting.
Under Swiss law, dividends may be paid by UBS Group AG only if, based on its audited standalone statements prepared in
accordance with Swiss law, UBS Group AG has sufficient distributable profits from the previous financial years or sufficient
free reserves to allow the distribution of a dividend. In either event, dividends may be proposed by the BoD and will only be
paid by the corporation after approval by the shareholders’ meeting. UBS Group AG’s statutory auditors must confirm that any
dividend proposal of the BoD is in accordance with Swiss law and the Articles.
Dividends are usually due and payable after the shareholders’ resolution relating to the allocation of profits has been passed.
Under Swiss law, the statute of limitations in respect of dividend payments is five years (dividends not paid are allocated to a
special reserve of UBS Group AG).
Annual Report 2025
15
Share Register
Swiss law and the Articles require UBS Group AG to keep a share register in which the name, address and nationality (or
registered office in the case of legal entities) of the owners of the shares are recorded. The main function of the share register is
to register shareholders entitled to vote (and assert or exercise other rights relating to voting rights) and participate in
shareholders’ meetings. For such registration, shareholders must confirm that they have acquired UBS Group AG shares in
their own name and for their own account. If the shareholder refuses to make such declaration, it will be registered as a
shareholder without voting rights.
In order to register shares in UBS Group AG’s share register, a shareholder must file a share registration form with the share
register. Failing such registration, a shareholder may not vote at or participate in shareholders’ meetings, but will be entitled to
receive dividends and other rights with financial value, such as preemptive rights in the event of a share issue (
Bezugsrechte
)
and advance subscription rights in the event of the issuance of equity-linked securities (
Vorwegzeichnungsrechte
), and its share
of liquidation proceeds. Shareholders registered in our share register may at any time request from us a confirmation of the
shares that they hold according to our share register.
UBS Group AG’s share register is kept by UBS Shareholder Services, P.O.Box, 8098 Zurich, Switzerland. UBS Shareholder
Services is responsible for the registration of the shares. The share register is split into two parts – a Swiss register, which is
maintained by UBS Group AG, acting as Swiss share registrar, and a US register, which is maintained by Computershare Trust
Company NA, c/o Computershare Investor Services, P.O. Box 505000, Louisville, KY 40233-5000, United States, acting as
US transfer agent.
Transfer of Shares
The transfer of shares constituting intermediated securities (
Bucheffekten
) (within the meaning of the Swiss Federal
Intermediated Securities Act) is effected by entries in securities accounts in accordance with applicable law. The transfer of
shares that do not constitute intermediated securities is effected by way of a written declaration of assignment and may require
notice to UBS Group AG.
Shareholders’ Meetings
A shareholders’ meeting is convened by the Board of Directors (the “BoD”) or, if necessary, by the company’s statutory
auditors upon notification of the shareholders at least 20 days prior to such meeting. An invitation to any shareholders’ meeting
will be published in the Swiss Official Gazette of Commerce. The Articles do not require a minimum number of shareholders
to be present in order to hold a shareholders’ meeting.
Unless otherwise provided by Swiss law or the Articles (as indicated below), resolutions require the approval of a majority of
the votes represented, excluding blank and invalid ballots, at a shareholders’ meeting in order to be passed.
Under Swiss corporate law (or Swiss banking law, as the case may be), a resolution passed at a shareholders’ meeting with the
approval of at least two-thirds of the votes, and a majority of the aggregate nominal value of shares, in each caserepresented at
such meeting is required in order to approve:
●
A change in the corporation’s stated purpose in its articles of association;
●
The consolidation of shares, unless the consent of all the shareholders concerned is required;
●
The restriction or exclusion of preemptive rights in the event of a share issue (
Bezugsrechte
);
●
The conversion of participation certificates into shares;
●
The introduction of shares with preferential voting rights;
●
Any restriction on the transferability of registered shares;
●
Any change in the currency of the share capital;
●
The introduction of a casting vote for the person chairing the shareholders’ meeting;
●
A provision of the articles of association on holding the shareholders’ meeting abroad;
●
The delisting of the equity securities of the corporation;
●
The creation of conditional capital, the introduction of a capital band or, in accordance with Swiss banking law, the
introduction of reserve capital;
●
An increase in share capital in consideration of contributions in kind, or by off-set of a claim, or involving the
granting of special privileges, or from the transformation of reserves into share capital;
●
A change of domicile of the corporation;
●
The introduction of an arbitration clause in the articles of association;
●
Dissolution of the corporation.
Annual Report 2025
16
Under the Articles, a resolution passed at a shareholders’ meeting with the approval of at least two-thirds of the votes
represented at such meeting is required in order to approve:
●
A change to the provisions in the Articles regarding the number of members of the BoD;
●
Removal of one-quarter or more of the members of the BoD; or
●
The deletion or modification of the provision of the Articles establishing these supermajority requirements.
At shareholders’ meetings, a shareholder can be represented by a legal representative or under a written power of attorney by a
proxy who does not need to be a shareholder or, under a written or electronic power of attorney, by the independent proxy.
Votesand elections are generally conducted electronically to ascertain the exact number of votes cast. Voting by a show of
hands is possible if a clear majority is predictable. Shareholders representing at least 3% of the votes representedmay always
request that a vote or election take place electronically or by a written ballot.
Preemptive and Advance Subscription Rights
Under Swiss law, any share issue, whether for cash or non-cash consideration or for no consideration, is subject to the prior
approval of the shareholders’ meeting. Existing shareholders of a Swiss corporation have certain preemptive rights in the event
of a share issue (
Bezugsrechte
) and advance subscription rights in the event of the issuance of equity-linked securities
(
Vorwegzeichnungsrechte
) to subscribe for the new shares or equity-linked securities, as the case may be, in proportion to the
nominal amount of shares held. However, the articles of association of the corporation or a resolution approved at a
shareholders’ meeting by at least two-thirds of the votes and a majority of the aggregate nominal value of the shares, in each
case represented at the meeting, may limit or exclude such preemptive or advance subscription rights in certain limited
circumstances.
Notices
Notices to shareholders are made by publication in the Swiss Official Gazette of Commerce. The BoD may designate further
means of communication for publishing notices to shareholders.
Mandatory Tender Offer
Under the applicable provisions of the Swiss Financial Market Infrastructure Act, anyone who directly or indirectly or acting in
concert with third parties acquires more than 33 1/3% of the voting rights (whether exercisable or not) of a Swiss-listed
company will have to submit a takeover bid to acquire all other listed equity securities of such company. A waiver from the
mandatory bid rule may be granted by the Swiss Takeover Board or the Swiss Financial Market Supervisory Authority
FINMA. If no waiver is granted, the mandatory takeover bid must be made pursuant to the procedural rules set forth in the
Swiss Financial Market Infrastructure Act and its implementing ordinances.
Annual Report 2025
17
E—Taxation.
This section outlines the material Swiss tax and US federal income tax consequences of the ownership of UBS Group AG's
ordinary shares (defined as "UBS ordinary shares " in this section) by a US holder (as defined below) whoholds UBS ordinary
shares as capital assets. This discussion addresses only US federal income taxation and Swiss income and capital taxation and
does not discuss all of the tax consequences that may be relevant to holders in light of their individual circumstances, including
other foreign tax consequences, state or local tax consequences, estate and gift tax consequences,and tax consequences arising
under the Medicare contribution tax on net investment income or the alternative minimum tax.It is designed to explain the
major interactions between Swiss and US taxation for US persons who hold UBS ordinary shares.
The discussion does not address the tax consequences to persons who hold UBS ordinary shares in particular circumstances,
such as tax-exempt entities, banks, financial institutions, life insurance companies, broker-dealers, traders in securities that
elect to use a mark-to-market method of accounting for securities holdings, holders that actually or constructively own 10% or
more of the total combined voting power of the voting stock of UBS Group AG or of the total value of stock of UBS Group
AG, holders that hold UBS ordinary shares as part of a straddle or a hedging or conversion transaction, holders that purchase or
sell UBS ordinary shares as part of a wash sale for tax purposes or holders whose functional currency for US tax purposes is
not the US dollar. This discussion also does not apply to holders who acquired their UBS ordinary shares through a tax-
qualified retirement plan, nor generally to unvested UBS ordinary shares held under deferred compensation arrangements.
If a partnership (or other entity treated as a partnership for US federal income tax purposes) holds UBS ordinary shares, the US
federal income tax treatment of a partner will generally depend on the status of the partner and the tax treatment of the
partnership. A partner in a partnership holding the UBS ordinary shares should consult its tax advisor with regard to the US
federal income tax treatment of an investment in the ordinary shares.
The discussion is based on the tax laws of Switzerland and the United States, including the US Internal Revenue Code of 1986,
as amended, its legislative history, existing and proposed regulations under the Internal Revenue Code, published rulings and
court decisions, as in effect on the date of this document, as well as the Convention between the United States of America and
the Swiss Confederation for the Avoidance of Double Taxationwith Respect to Taxes on Income (the “Treaty”), all of which
may be subject to change or change in interpretation, possibly with retroactive effect.
For purposes of this discussion, a “US holder” is any beneficial owner of UBS ordinary shares that is for US federal income
tax purposes:
●
A citizen or resident of the United States;
●
A domestic corporation or other entity taxable as a corporation;
●
An estate, the income of which is subject to US federal income tax without regard to its source; or
●
A trust, if a court within the United States is able to exercise primary supervision over the administration of the trust
and one or more US persons have the authority to control all substantial decisions of the trust.
Holders of UBS ordinary shares are urged to consult their tax advisors regarding the US federal, state and local and the Swiss
and other tax consequences of owning and disposing of these shares in their particular circumstances.
(a) Ownership of UBS Ordinary Shares - Swiss Taxation
Dividends and Distributions
Dividends paid by UBS Group AG to a holder of UBS ordinary shares (including dividends on liquidation proceeds and stock
dividends) are in principle subject to a Swiss federal withholding tax at a rate of 35%.
Under the Capital Contribution Principle, the repayment of capital contributions, including share premiums made by the
shareholders after December 31, 1996 is in principle not subject to Swiss withholding tax if certain requirements regarding the
booking of these capital contributions are met.
Swiss companies listed on a Swiss stock exchange such as UBS Group AG can repay reserves from capital contributions to
their shareholders without deduction of Swiss withholding tax only if they distribute at least the same amount of taxable
dividends. For this reason UBS Group AG pays half of the dividend from capital contribution reserves and half of the dividend
from taxable dividends which is subject to 35% Swiss withholding tax.
Annual Report 2025
18
A US holder resident in the US that qualifies for Treaty benefits may apply for a refund of the withholding tax withheld in
excess of the 15% Treaty rate (or for a full refund in case of qualifying retirement arrangements). The claim for refund must be
filed with the Swiss Federal Tax Administration, Eigerstrasse 65, CH-3003 Berne, Switzerland no later than December 31 of
the third year following the end of the calendar year in which the income subject to withholding was due. The form used for
obtaining a refund is one of the Swiss Tax Forms 82 (82 C for US companies; 82 E for other US entities; 82 I for individuals;
82 R for regulated investment companies), which may be obtained from the Swiss Federal Tax Administration at the address
above or downloaded from the web page of the Swiss Federal tax Administration. The form must be filled out in triplicate with
each copy duly completed and signed before a notary public in the United States. The form must be accompanied by evidence
of the deduction of withholdingtax withheld at the source.
A US holder resident outside the US may be eligible for a withholding tax reclaim. If the US holder is resident in Switzerland,
a full reclaim based on the Swiss withholding tax Act is possible provided all necessary conditions are met. A US holder
resident neither in the US nor in Switzerland may be eligible for a partial reclaim provided that a Treaty between Switzerland
and the country of residence is applicable and that all necessary conditions are met.
Transfers of UBS Ordinary Shares
The purchase or sale of UBS ordinary shares, whether by Swiss resident or non-resident holders (including US holders), may
be subject to a Swiss securities transfer stamp duty of up to 0.15% calculated on the purchase price or sale proceeds if it occurs
through or with a bank or other securities dealer as defined in the Swiss Federal Stamp Tax Act in Switzerland or the
Principality of Liechtenstein. In addition to the stamp duty, the sale of UBS ordinary shares by or through a member of a
recognized stock exchange may be subject to a stock exchange levy.
Capital gains realized by a US holder upon the sale of UBS ordinary shares are not subject to Swiss income or gains taxes,
unless such US holder holds such shares as business assets of a Swiss business operation qualifying as a permanent
establishment. In the latter case, gains are taxed at ordinary Swiss individual or corporate income tax rates, as the casemay be,
and losses are deductible for purposes of Swiss income taxes. Furthermore, a US holder who is an individual resident in
Switzerland and holds such shares as business assets (as he qualifies as a professional trader of securities as per Swiss tax law)
may be liable to Swiss income taxes on gains.
(b) Ownership of UBS Ordinary Shares - US Federal Income Taxation
The tax treatment of the UBS ordinary shares will depend in part on whether or not UBS Group AG is classified as a passive
foreign investment company, or PFIC, for US federal income tax purposes. Except as discussed below under “—Passive
Foreign Investment Company (PFIC) Rules”, this discussion assumes that UBS Group AG is not classified as a PFIC for
United States federal income tax purposes.
Dividends and Distributions
A US holder will include in gross income and treat as a dividend the gross amount of any distribution paid, before reduction
for Swiss withholding taxes, by UBS Group AG out of its current or accumulated earnings and profits (as determined for US
federal income tax purposes), other than certain pro-rata distributions of UBS ordinary shares, when the distribution is actually
or constructively received by the US holder. Distributions in excess of current and accumulated earnings and profits (as
determined for US federal income tax purposes) will be treated as a return of capital to the extent of the US holder’s basis in its
UBS ordinary shares and thereafter as capital gain. However, UBS Group AG does not expect to calculate earnings and profits
in accordance with US federal income tax principles. Accordingly, a US holder should expect to generally treat distributions
made on UBS ordinary shares as dividends.
Dividends paid to a noncorporate US holder that constitute qualified dividend income will be taxable to the holder at
preferential rates, provided that the holder has a holding period in the shares of more than 60 days during the 121-day period
beginning 60 days before the ex-dividend date and meets other holding period requirements. Dividends paid by UBS Group
AG with respect to the ordinary shares will generally be qualified dividend income provided that, in the year that theUS holder
receives the dividend, the UBS ordinary shares are readily tradable on an established securities market in the United States.
The UBS ordinary shares are listed on the New York Stock Exchange, and UBS Group AG therefore expects that dividends
will be qualified dividend income.
For US federal income tax purposes, a dividend will include a distribution characterized under Swiss law as a repayment of
capital contributions if the distribution is made out of current or accumulated earnings and profits, as described above.
Dividends will generally be income from sources outside the United States for foreign tax credit limitation purposes, and will
generally be "passive" income for purposes of computing the foreign tax credit allowable to the holder. However, if (a) we are
50% or more owned, by vote or value, by US persons and (b) at least 10% of our earnings and profits are attributable to
sources within the United States, then for foreign tax credit purposes, a portion of our dividends would be treated as derived
from sources within the United States. With respect to any dividend paid for any taxable year, the US source ratio of our
dividends for foreign tax credit purposes would be equal to the portion of our earnings and profits from sources within the
United States for such taxable year, divided by the total amount of our earnings and profits for such taxable year. Special rules
apply in determining the foreign tax credit limitation with respect to dividends that are subject to preferential rates. The
dividend will not be eligible for the dividends-received deduction generally allowed to US corporations in respect of dividends
received from other US corporations.
Annual Report 2025
19
Dividends on the UBS ordinary shares are taxable to a US holder when the US holder receives the dividends, actually or
constructively.In the case of dividends that are paid in Swiss francs, the amount of the dividend distribution included in
income of a US holder will be the US dollar value of the Swiss franc payments made, determined at the spot Swiss franc/US
dollar rate on the date such dividend distribution is includible in the income of the US holder, regardless of whether the
payment is in fact converted into US dollars. Generally, any gain or loss resulting from currency exchange fluctuations during
the period from the date the dividend payment is included in income to the date such dividend payment is converted into US
dollars will be treated as ordinary income or loss and will not be eligible for the special tax rate applicable to qualified
dividend income. Such gain or loss will generally be income or loss from sources within the United States for foreign tax credit
limitation purposes.
Subject to US foreign tax credit limitations, the nonrefundable Swiss tax withheld and paid over to Switzerland will generally
be creditable or deductible against the US holder’s US federal income tax liability. Special rules apply in determining the
foreign tax credit limitation with respect to dividends that are subject to the preferential tax rates. To the extent a reduction or
refund of the tax withheld is available to a US holder under the laws of Switzerland or under the Treaty, the amount of tax
withheld that is refundable will not be eligible for credit against the US holder’s US federal income tax liability, whether or not
the refund is actually obtained. See “(a) Ownership of UBS Ordinary Shares – Swiss Taxation” above, for the procedures for
obtaining a tax refund.
Transfers of UBS Ordinary Shares
A US holder that sells or otherwise disposes of UBS ordinary shares generally will recognize capital gain or loss for US federal
income tax purposes equal to the difference between the US dollar value of the amount realized and its tax basis, determined in
US dollars, in such UBS ordinary shares. Capital gain of a non-corporate US holder is generally taxed at preferential rates if
the UBS ordinary shares were held for more than one year. The gain or loss will generally be income or loss from sources
within the United States for foreign tax credit limitation purposes. A US holder will not be allowed a foreign tax credit in
respect of any stamp duty or stock exchange levy that is imposed upon a transfer of UBS ordinary shares.
Passive Foreign Investment Company (PFIC) Rules
UBS Group AG believes that it should not currently be classified as a PFIC for US federal income tax purposes, and it does not
expect to become a PFIC in the foreseeable future.However, this conclusion is a factual determination made annually and
thus may be subject to change. In addition, UBS Group AG’s current position that it is not currently, and it does not expect to
become, a PFIC is based on the position that UBS Group AG qualifies for a special rule that treats income recognized by a
bank in the active conduct of a banking business as active income for PFIC purposes (the “active bank exception”). It is
possible, however, that UBS Group AG may not satisfy the requirements of the active bank exception in the current or a future
taxable year, or that the U.S. Internal Revenue Service may issue guidance in the future under which UBS Group AG would
not satisfy the requirements of the active bank exception. It is therefore possible that UBS Group AG could become a PFIC in
a future taxable year.In general, UBS Group AG will be a PFIC with respect to a US holder if, for any taxable year in which
the US holder held UBS ordinary shares, either (i) at least 75% of the gross income of UBS Group AG for the taxable year is
passive income or (ii) at least 50% of the value, determined on the basis of a quarterly average, of UBS Group AG’s assets is
attributable to assets that produce or are held for the production of passive income (including cash). “Passive income”
generally includes dividends, interest, gains from the sale or exchange of investment property rents and royalties and certain
other specified categories of income. If a foreign corporation owns at least 25% by value of the stock of another corporation,
the foreign corporation is treated for purposes of the PFIC tests as owning its proportionate share of the assets of the other
corporation, and as receiving directly its proportionate share of the other corporation's income.
If UBS Group AG were to be treated as a PFIC, special rules apply with respect to (i) any gain a US holder realizes on the sale
or other disposition of UBS ordinary shares, and (ii) any excess distribution that UBS Group AG makes to a US holder
(generally, any distributions to the US holder during a single taxable year, other than the taxable year in which the US holder’s
holding period in the UBS ordinary shares begins, that are greater than 125% of the average annual distributions received by
the US holder in respect of the UBS ordinary shares during the three preceding taxable years or, if shorter, the US holder’s
holding period for the UBS ordinary shares that preceded the taxable year in which the US holder receives the distribution).
Under these rules: (i) the gain or excess distribution will be allocated ratably over the US holder’s holding period for the UBS
ordinary shares, (ii) the amount allocated to the taxable year in which the US holder realized the gain or excess distribution or
to prior years before the first year in which UBS Group AG is a PFIC with respect to the US holder will be taxed as ordinary
income, (iii) the amount allocated to each other prior year will be taxed at the highest tax rate in effect for that year, and (iv)
the interest charge generally applicable to underpayments of tax will be imposed in respect of the tax attributable to each such
year.
Special rules apply for calculating the amount of the foreign tax credit with respect to excess distributions by a PFIC.With
certain exceptions, a US holder’s UBS ordinary shares will be treated as stock in a PFIC if UBS Group AG was a PFIC at any
time during the holder’s holding period in the UBS ordinary shares. In addition, dividends received from UBS Group AG
would not be eligible for the preferential tax rate applicable to qualified dividend income if UBS Group AG were to be treated
as a PFIC either in the taxable year of the distribution or the preceding taxable year, but would instead be taxable at rates
applicable to ordinary income. If a US holder owns UBS ordinary shares during any year that UBS Group AG is PFIC with
respect to the US holder, the US holder may be required to file Internal Revenue Service Form 8621.
Annual Report 2025
20
Item 19.Exhibits.
Exhibit
number
Description
1.1
. (Incorporated by reference to Form 6-K of UBS
Group AG filed on April 17, 2025)
1.2
2(b)
Instruments defining the rights of the holders of long-term debt issued by UBS Group AG and its subsidiaries.
We agree to furnish to the SEC upon request, copies of the instruments, including indentures, defining the rights of
the holders of our long-term debt and of our subsidiaries’ long-term debt.
2(d)
4.1
(Incorporated by reference to Exhibit 4.20 to UBS's Annual Report on Form 20-F for the fiscal year
ended December 31, 2020)
4.2
.
(Incorporated by reference to Exhibit 4.21 to UBS's Annual Report on Form 20-F for the fiscal year
ended December 31, 2020)
4.3
(Incorporated by reference to Exhibit 4.22 to UBS's Annual Report on Form 20-F for the fiscal year
ended December 31, 2020)
4.4
(Incorporated by reference to Exhibit 4.18 to UBS's Annual Report on Form 20-F for the fiscal year
ended December 31, 2021)
4.5
(Incorporated by reference to Exhibit 4.19 to UBS's Annual Report on Form 20-F for the fiscal year
ended December 31, 2021)
4.6
(Incorporated by reference to Exhibit 4.20 to UBS's Annual Report on Form 20-F for the fiscal year
ended December 31, 2021)
4.7
(Incorporated by reference to Exhibit 4.21 to UBS's Annual Report on Form 20-F for the fiscal year
ended December 31, 2021)
4.8
(Incorporated by reference to Exhibit 4.19 to UBS's Annual Report on Form 20-F for the fiscal year
ended December 31, 2022)
4.9
(Incorporated by reference to Exhibit 4.16 to UBS's Annual
Report on Form 20-F for the fiscal year ended December 31, 2023)
4.10
(Incorporated by reference to Exhibit 4.17 to UBS's Annual
Report on Form 20-F for the fiscal year ended December 31, 2023)
4.11
. (Incorporated by reference to Exhibit 4.18 to UBS's Annual Report on Form 20-F for the fiscal year
ended December 31, 2023)
4.12
. (Incorporated by reference to Exhibit 4.19 to UBS's Annual Report on
Form 20-F for the fiscal year ended December 31, 2023)
4.13
. (Incorporated by reference to Exhibit 4.20 to UBS's Annual Report on
Form 20-F for the fiscal year ended December 31, 2023)
4.14
(Incorporated by reference to Exhibit 4.19 to UBS's Annual Report on Form 20-F for the fiscal year
ended December 31, 2024)
Annual Report 2025
21
4.15
(Incorporated by reference to Exhibit 4.20 to UBS's Annual Report on Form
20-F for the fiscal year ended December 31, 2024)
4.16
(Incorporated by reference to Exhibit 4.21 to UBS's Annual
Report on Form 20-F for the fiscal year ended December 31, 2024)
4.17
(Incorporated by reference to Exhibit 4.22 to UBS's Annual Report on
Form 20-F for the fiscal year ended December 31, 2024)
4.18
(Incorporated by reference to Exhibit 4.23 to UBS's Annual Report on
Form 20-F for the fiscal year ended December 31, 2024)
4.19
4.20
4.21
4.22
4.23
4.24
4.25
4.26
(Incorporated by
reference to Form 6-K of UBS AG filed on June 17, 2015)
4.27
4.28
8
Significant Subsidiaries of UBS Group AG.
Please see Note 27 to the Financial Statements (
Interests in subsidiaries and other entities),
on pages 344-347 of
the Annual Report.
11.1
11.2
(Incorporated by
reference to Exhibit 11.2 to UBS Group AG's Annual Report on Form 20-F for the fiscal year ended December 31,
2024)
11.3
(Incorporated by reference to
Exhibit 11.3 to UBS Group AG's Annual Report on Form 20-F for the fiscal year ended December 31, 2024)
12
13
15
17
97
(Incorporated by reference to Exhibit 97 to UBS's Annual
Report on Form 20-F for the fiscal year ended December 31, 2023)
101
Interactive Data Files (sections of the Annual Report formatted in inline XBRL (Extensible Business Reporting
Language)). Furnished electronically herewith.
Annual Report 2025
22
SIGNATURES
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly
caused the undersigned to sign this annual report on its behalf.
UBS Group AG
_/s/Sergio Ermotti ____________
Name:Sergio Ermotti
Title:Group Chief Executive Officer
_/s/ Todd Tuckner______________
Name:Todd Tuckner
Title:Group Chief Financial Officer
_/s/ Steffen Henrich_____________
Name:Steffen Henrich
Title:Group Controller
Date: March 9, 2026
ubs-20251231p23i0
Annual Report
2025
UBS Group
ubs-20251231p24i0
Our external reporting approach
The scopeand content ofour external reportsare determinedby Swisslegal andregulatory requirements,accounting
standards,relevantstockanddebtlistingrules,includingregulationspromulgatedbytheSwissFinancialMarket
Supervisory Authority (FINMA), the SIXSwiss Exchange, the US Securitiesand Exchange Commission (the SEC)and other
regulatory requirements, as well as by our financial reporting policies.
At the center of our external reportingapproach is the annual report of theUBS Group, which consists of disclosures for
UBSGroup AGanditsconsolidatedsubsidiaries.WealsoprovideaseparateannualreportforUBS AGonasub-
consolidated basis. Both of the aforementioned annual reports are the basis for the corresponding 2025 SEC Form 20-F
filings forUBS Group AGand UBS AG.For filingpurposes inthe EuropeanUnion, theUBS AG AnnualReport alsoincludes
disclosures required by the EU Non-financial Reporting Directive (the NFRD) and the EU Taxonomy Regulation.
Annual Reports
The UBS Group Annual Report 2025 and the UBS AG AnnualReport 2025 include the consolidated financial statements
of UBS Group AGand UBS AG,respectively, andtogether providecomprehensive informationabout ourGroup, including
strategy, businesses, financial and operating performance, and other key information.
TheconsolidatedfinancialstatementsofUBS Group AGandUBS AGhavebeenpreparedinaccordancewithIFRS
AccountingStandards.Thesectionswithin“Risk,capital,liquidityandfunding,andbalancesheet“includecertain
audited financialinformation, whichforms partof theconsolidated financialstatements. TheUBS Groupand UBS AG
reports are presented in US dollars.
The UBS Group Annual Report 2025 is partly translated into German.
Sustainability Report
TheUBSGroupSustainability Report2025 providesour Swiss-law-governeddisclosuresonenvironmental,social and
governance (ESG) topics.
Standalone reports of UBS Group AG and significant regulated entities
Wepublishseparate2025statutoryfinancialstatementsforUBS Group AG,whicharethebasisforourproposed
appropriation of totalprofit and dividend distribution,subject to shareholderapproval at theAnnual General Meeting.
We alsopublish standalonereports forUBS AG andUBS Switzerland AG. Selected financialand regulatorykey figures
for our significant regulated subsidiaries and sub-groups are included in the UBS Group Annual Report.
Pillar 3 Report of UBS Group AG including significant regulated entities and sub-groups
The Pillar 3 Report asof 31 December 2025 providesdetailed quantitative and qualitativeinformation about risk,capital,
leverage, andliquidity andfunding forthe UBSGroup andprudential keyfigures andregulatory informationfor our
significant regulated subsidiaries and sub-groups. Scopes subject to disclosure are UBS Group AG consolidated, UBS AG
consolidated and standalone, UBS Switzerland AG standalone,UBS Europe SE consolidated, UBS AmericasHolding LLC
consolidated and Credit Suisse International standalone.
Annual Report 2025 |
Letter to shareholders2
Dear shareholders,
Theyear2025provedanotherpivotalchapterforUBS.Wehelpedclientsnavigateacomplexglobalenvironment,
deliveredexcellentfinancial performance,fulfilledourcommitments tostakeholdersandrewardedshareholders with
attractive capital returns. Our unique global business model was thebedrock for these achievements, enabling clients to
manage uncertainty and seize new opportunities.
We alsomade decisiveprogress withthe integrationof CreditSuisse, oneof themost complexmergers inbanking history.
This further strengthened our positionas the world’s only trulyglobal wealth manager and Switzerland’s leadingbank,
supported by strong capabilities in asset management and investment banking.
Our performance puts us firmly ontrack to meet our targets for theend of 2026 and beyond. Weare proud of what we
have accomplished together and remaincommitted to delivering sustainable growthand long-term value for our clients,
shareholders, employees and the communities where we live and work.
We advanced our integration of Credit Suisse at pace
In 2025,we achievedseveral ofthe mostimportant milestonesin integratingCredit Suisse,including thebulk ofthe
client account migrations.
WetransitionedallclientaccountsbookedoutsideofSwitzerlandand85%ofthosebookedinSwitzerlandtoUBS
platforms andare ontrack tocarry outthe remainingclient transfersby theend ofMarch.We alsofinished theintegration
of Asset Management (AM), including the final portfolio migrations onto UBS platforms.
Afterdelivering furtherefficiencyimprovements, weexceeded ourcost-reduction targets,withcumulativegrosscost
savings reachingUSD 10.7
billion in2025, aboveour guidanceof aroundUSD 10 billion.This reflectsour progressin
decommissioninglegacytechnologyapplicationsandinfrastructure,andinsimplifyingourlegalentitystructure.We
identifiedanadditionalUSD 0.5billionofincrementalgrosscostsavings,takingtheplannedcumulativetotalto
USD 13.5 billion by the end of 2026.
 
Our Non-coreand Legacy(NCL) unitcontinued towind downnon-strategic positionsand reduceexposures. Sinceits
inception in 2023,NCL has freedup USD
8
billion of capitaland reduced itsrisk-weighted assets bytwo-thirds and its
underlying operating expensesby around 80%compared with thefull-year
 
2022 baseline. Wealso exited thecostliest
debt inheritedfrom CreditSuisse, whichwas issuedat distressedspreads priorto theacquisition, and resolvedseveral
outstanding legacy litigation matters.
Oureffortsinstreamliningourpost-acquisitionbalancesheetarecomplete.Thisgivesusconfidencethatoverthe
economiccyclewewillbecapableofdeliveringrevenuesofaround10%onouraveragerisk-weighted assets.That
stronger footing, coupledwith the capitalefficiency embedded inhow we allocateresources across theGroup, means
wearewellpositionedtodeployincrementalbalancesheettosupportprofitablerevenuegrowthacrossourcore
businesses.
Our progress so farhas kept us ontrack to substantially completethe integration by theend of 2026 andmeet our 2026
exit-rate targets.
We achieved excellent financial results
Our 2025financial performance wasexcellent based onstrong operating leverage,with netprofit rising 53%year on
year to USD 7.8 billion and Group invested assetssurpassing USD
7
trillion for the first time. Underlying profit beforetax
rose by 33% to USD 11.7
billion, while reported profit before tax increased by 30% to USD 8.9
billion.
Total operating expenseson areported basisdecreased by around2.5% year-on-yearto USD
40.2
billion, andaround
2.3% toUSD 35.6
billion onan underlyingbasis. Thisreflects oursuccessful cost-reductioninitiatives indriving integration
synergies, which helped improve the Group’s reported cost / income ratio to 81.1%, or 74.4% on an underlying basis.
All regionsmade astrong contributionto ourfull-year performance,underscoring thepower ofour diversifiedmodel
and unrivaled globalconnectivity. Switzerland remainsour anchor, makingthe largest contributionto our underlyingpre-
tax profitacross corebusinesses andachieving solidyear-on-year growth.Outside ofSwitzerland, eachregion –Asia
Pacific,EMEAandtheAmericas–deliveredrobustunderlyingprofitabilityandgrowth.Theseresultsprovideclear
evidence that ourscale, reach anddisciplined integration arebuilding a morebalanced earnings profile,positioning us
to perform through the cycle and to capitalize on growth opportunities.
Global WealthManagement (GWM),our largestdivision, continuedto delivergrowth withreported profitbefore tax
rising to USD 5.2 billion and USD
6.3 billion on an underlying basis. GWM’s full-year underlying revenues grewby 7.4%
to USD
25.4
billion, aswe continuedto leverageour globalreach, regionalexpertise andconnectivity withthe Investment
Bank (IB), AM and Personal & Corporate Banking (P&C) to deliver advice and solutions to clients.
Annual Report 2025 |
Letter to shareholders3
The reported profitbefore tax forP&C was CHF 2.1
billion and CHF 2.4
billion on an underlyingbasis. Our custodyassets
increased, duein partto healthygrowth innet newinvestment productsin 2025.
 
P&C’s performancein 2025reflects
our commitmentto stayclose toclients whileexecuting oneof theindustry’s mostcomplex clientaccount migrations
ever.
In AM, reportedprofit before taxincreased to USD 719
million, and USD
975
million on anunderlying basis, reflecting
positive operatingleverage andthe substantialcompletion ofour integrationpriorities. Netnew moneyreached USD
30.4
billion.
The IBsaw reportedprofit beforetax riseby nearlyhalf toUSD 2.8 billionand USD
2.7
billion onan underlyingbasis.
Global Markets delivered its best full-year revenues since 2013, increasedits market share in equities, Foreign Exchange
and precious metals, and was recognized by
Euromoney
as Europe’s best FX bank in 2025.
We generated attractive capital returns
We maintaineda robustcapital position,with areported commonequity tier1 (CET1)ratio of14.4% anda CET1leverage
ratio of 4.4%, both comfortably above our guidance.
At the same time, our performanceenables us to fulfill our commitmentto you, our shareholders, to providesustainably
higher returns.In 2025,our shareholdersbenefited fromUSD 6.4 billionin totalcapital returns,withUSD 3.4 billion
coming in the form of planned dividends and the rest as share repurchases.
For the 2025 financialyear, the Board ofDirectors intends to proposea dividend of USD
1.10 per share, anincrease of
22% year over year, subject to approval at the Annual General Meeting.
In 2026, we are accruing for a mid-teen percentage increase in dividend per share. We also intend to repurchase USD 3
billion of shares in 2026,with the aim todo more. The amount ofadditional buybacks is subjectto further clarity around
the futureregulatory regime inSwitzerland, our financialperformance and maintaininga CET1 capitalratio ofaround
14%.
Beyond 2026, we intend to continue to pursue a progressive dividend, complemented by share repurchases that will be
calibrated based onour financial results, ourcapital ratio andthe final outcome, andtiming, of theimplementation of
the new regulatory regime in Switzerland.
We continued to be a pillar of Swiss prosperity
In 2025, we were a steadfast partnerto Swiss businesses and households. Our balance sheetfor all seasons enabled us
to grant orrenew around CHF 80 billionin loans, partof our continuedcommitment of approximately CHF 350
billion
in total lending to support growth and opportunities across Switzerland.
As the country’s third-largest private employer, and a purchaser of nearly CHF 4
billion of Swiss goods and services each
year, we play a vital role in supporting the Swisseconomy. Our longstanding presence has helped cultivate talent across
thefinancialsectorandbeyond,withmanyindustryleadershavingdevelopedtheirexpertiseatUBSoroneofits
predecessors. As a partner to the Swisseconomy, we stand at the center ofa vibrant and diversified financial ecosystem,
supporting innovativestart-ups andinvesting inthe future.By scalinginnovation andfostering partnerships,we help
create new jobs and ensure Switzerland continues to punch above its weight on many economic measures.
As the leading player in wealth managementin Switzerland, our firm, along with other financialinstitutions, contributes
to a healthy funding environmentin our home nation. Togetherwe attract international assets thatincrease the supply
of funds and help keep interest rates lower for Swiss families and businesses, directly supporting national prosperity.
The financialcenter provides otherbenefits toSwitzerland as well.It accountsfor over5% ofjobs andaround 9%of
gross domestic product.
 
And in recent yearsthe financial sector hasoften paid more thanone-third of all corporatetaxes
– a huge contribution to fiscal revenue. UBS,Credit Suisse and their employees have paid aroundCHF 24
billion in Swiss
taxes over the past decade alone.
ubs-20251231p28i1 ubs-20251231p28i0
Annual Report 2025 |
Letter to shareholders4
Colm Kelleher
Chairman of the Board of Directors
Sergio
P.
Ermotti
Group Chief Executive Officer
We support proportionate, targeted and internationally aligned regulation
In June 2025,the Swiss FederalCouncil published itsproposals for amendmentsto Switzerland’s bankingregulation. Our
firm fully supports the Council’s ambition for Switzerland to remain one of the world’s leading financial centers with an
internationally competitivelarge bankat itscore. Wealso recognizethat amendingSwiss bankingregulation isa complex,
multi-year political process, which, sincethe commencement of this process,has introduced uncertainty and negatively
impacted the relative performance of our share price compared to our peers.
Sofar,twopublic consultationshavetaken place,towhichwehave submittedresponses. Weremaincommittedto
engaging constructively on behalf of our clients, shareholders, employees and other stakeholders.
Robustoversightisessentialforahealthyfinancialcenter.Atthesametime,allpartiesagreethatanyregulatory
amendments must betargeted, proportionate andinternationally aligned. Experienceshows that pastidiosyncratic crises
in the bankingsector mostly stemmedfrom poor businessstrategy and riskmanagement, not frominsufficient capital
requirements.BygrantingsubstantialregulatoryconcessionsandnotpubliclycommunicatingearlyonaboutCredit
Suisse’s weaknesses,the Swissauthorities enabledCredit Suisseto muddlethrough andavoid themarket’s discipline,
forestalling timely action to adjust its business model.
 
Regulationworksbestwhenitfostersfinancialstabilitywithoutstiflinginnovationordamagingcompetitiveness.
Excessive ornarrowly focusedregulation risksundermining thevery strengthsthat havemade Swissbanking aglobal
benchmark.Overlyrestrictivemeasuresleadtohighercostsforclientsandthebroadereconomyandreducethe
internationalcompetitivenessofthecountry’sfinancialsector.ThegoalshouldbetopreserveSwitzerland’sunique
advantages while ensuring that its regulatory environment stays resilient and forward-looking.
With the integration ofCredit Suisse, we are creatingan even more resilient firm,not only for ourshareholders, clients
andemployees,butforallstakeholdersandthewholeofSwitzerland.ProtectingandexpandingSwitzerland’s
competitiveness isan obligationshared bybothpolitical andeconomic spheres.Ifwe walkdown thispath together,
Switzerland willremain successful.It willremain acountry thatproves timeand againhow muchcan beachieved by
acting with clarity, responsibility and foresight
We have positioned our firm for growth
Withmostoftheintegrationworkbehindus,wearewellplacedtoharvestthefullbenefitsoftheacquisitionand
producesustainablyhigherreturns,buildingtowardourambitiontorestoreandsurpasspre-acquisitionlevelsof
profitability.
Our strategy is stronger than ever. It is anchored in our unique, globally diversified business model, which underpins the
breadth and depth of our franchise and enables us to serveclients across regions and market cycles. We are committed
to remainingthe world’sonly trulyglobal wealthmanager andthe numberone Swissuniversal bank,with aleading
Asset Management franchise and a competitive and focused Investment Bank. This approach allows us to offer the best
service for clients while maintaining disciplined risk and cost management and delivering attractive capital returns.
With thatin mind,we haveset ourambitions for2028, includinga reportedreturn onCET1 capitalof approximately
18% and a reported cost / income ratioof around 67%, based on thecurrent capital framework and assuming a CET1
capital ratio of around 14%. Each core business division will play a part, and each has clear profitability ambitions.
To get there, we have reiterated ambitious 2026 exit-rate targets. These include achieving an underlying return on CET1
capital of approximately 15%and reducing our underlyingcost / income ratio to below70%. These targets reflectour
commitment to both profitability and efficiency.
Annual Report 2025 |
Letter to shareholders5
We also aimto maintain arobust capital position,with a CET1capital ratio ofaround 14% anda CET1 leverageratio
above 4%. These goalsunderscore our disciplined approachtoward a strong capitalizationof our firm aswe finish the
final stages of the Credit Suisse integration and continue to unlock new opportunities for growth.
In the US, we advanced our strategyin 2025 by applying for a nationalbank charter, an important step in improvingour
performance inthe world’slargest wealthmarket. Overtime, thiswill allowus tobuild aplatform offeringa broader
suite of bankingproducts to clients,including traditional bankaccounts. This applicationreceived conditional approval
in January 2026.
Crucially, our firmcontinues to deepencollaboration across divisions,regions and functions,strengthening our OneBank
concept tobring thefull powerof ourfranchise toclients. Thisintegrated approach,combined witha focuson high-
growthsegments,suchashighnetworthclients,alternativesandbanking,putsusinapositiontocapturenew
opportunities andexpand ourmarket sharein keyregions. Ourunified cultureis thecornerstone ofour long-termsuccess.
This risk-awaremindset empowersevery employeeto dothe rightthing, keepsclients atthe heartof ouractions and
fosters pride in being part of a trusted, resilient firm.
We are harnessing the power of AI and technology
In 2025, weaccelerated artificial intelligence (AI)implementation to increase employeeproductivity and enhance client
service. Using AI-powered chatbots we’redelivering seamless, instant mobile bankingsupport for 1.2
 
million clients, and
our analyticstools incall centersare providinginstant insightsto improveservice andboost efficiency.We’re enabling
our people to worksmarter and fasterthrough our in-houseAI assistant, Red,and Microsoft 365Copilot, which arenow
deployedacrossthefirm.Usingdigitalassistants,we’readvancingthepaceandscaleofsoftwaredevelopmentand
driving innovation and process reengineering. By the end of 2025, we had 380 live use cases.
We deepenedour strategicrelationships withtechnology companiesand academia,launching theOxford-UBS Centre
for Applied AI with theUniversity of Oxford to developpioneering AI research and solutionsto implement at scaleacross
UBS.
With aclient-led approachtodigital assets,weare buildingout coreinfrastructure andexploring targetedofferings,
focusing on tokenized real-worldassets and digital money.For example, we aredeveloping our tokenized moneymarket
fund, uMINT, using ourin-house UBS Tokenize service anddeveloping our UBS Digital Cashtokenized deposit solution.
We are also evaluating stablecoin use cases and exploring client access to cryptocurrencies.
We are rooted in responsibility
Long-term success is aboutmore than execution andgrowth. It is rootedin the responsibility weshare to help shapea
more sustainablefuture –for ourclients, forour peopleand forthe communitieswhere weoperate. In2025, webolstered
the foundations of our sustainability and impact agenda, as set out in our Sustainability Report.
We support clients asthey transition to alow-carbon economy, assessing climate-relatedrisks and opportunities across
our business to createvalue for clients, shareholdersand other stakeholders. In2025, we progressed towardour scope 1
and 2net zerotargets, reducingemissions by48% throughour energyreduction initiativesand renewableelectricity
usage. For scope3, we remaincommitted to ourlending decarbonizationtargets in keysectors andto further developing
our approach to transition finance.
At the same time, we continued to improveour climate risk management capabilities, including identifying, measuring,
monitoring,managingandreportingclimate-related risks,whilefurtherembeddingregulatoryrequirementsintoour
financial risk management and stress testing frameworks. Our efforts remain anchored in our ambition to be a leader in
sustainability. Ourprogress isreflected inkey ESGratings, withMSCI reaffirmingour AAscore andcontinued performance
in the S&P Global Corporate Sustainability Assessment.
ubs-20251231p30i2 ubs-20251231p30i0
Annual Report 2025 |
Letter to shareholders6
The 2026 Annual General Meeting
At the upcoming
 
Annual General Meeting, we will propose Markus Ronner to join theBoard of Directors of UBS Group
AGasViceChairman.WehavealsonominatedAgustínCarstensandLucaMaestriforelectiontotheBoard.Lukas
Gähwiler will notstand for re-election.After an exceptionallysuccessful career spanning45 years, hedecided to retire
from hisrole asVice Chairman,concluding hislong careerin banking,which includedseveral leadershiproles atUBS.
William C. Dudleyand Jeanette Wongalso decided tostep down afterseven years onthe Board. Weextend our deep
appreciation to those stepping down for their commitment and contributions over the past years.
Also at the
 
Annual General Meeting, you willbe asked to vote on theproposed increase in dividends, theCompensation
Report and the UBS Group Sustainability Report.
Buildingonourachievementsin2025,weenter2026confidentinourstrategyandourabilitytodeliver.Weare
positionedtogeneratesustainablyhigherreturnsandlong-termvalueforallstakeholders.Weareenergizedbythe
opportunities ahead and dedicated to building an even stronger firm.
Thank you foryour ongoing support.We look forwardto welcoming youto the 2026
 
Annual General Meeting, which
will take place on 15 April in Basel, Switzerland.
Yours sincerely,
Colm KelleherSergio P. Ermotti
Chairman of the Board of DirectorsGroup Chief Executive Officer
Annual Report 2025 |
Letter to shareholders7
Corporate information
UBS Group AG
is incorporated and domiciled in Switzerland and operates
under Art. 620ff. of the Swiss Code of Obligations as an Aktiengesellschaft, a
corporation limited by shares. Its registered office is at Bahnhofstrasse 45,
CH-8001 Zurich, Switzerland, telephone +41-44-234 11 11, and its corporate
identification number is CHE-395.345.924. UBS Group AG was incorporated
on 10 June 2014 and was established in 2014 as the holding company of the
UBS Group. UBS Group AG shares are listed on the SIX Swiss Exchange and
on the New York Stock Exchange (ISIN CH0244767585; CUSIP H42097107).
UBS Group AG owns 100% of the outstanding shares in UBS AG.
Contacts
Switchboards
For all general inquiries
ubs.com/contact
Zurich +41-44-234-1111
London +44-207-567-8000
New York +1-212-821-3000
Hong Kong SAR +852-2971-8888
Singapore +65-6495-8000
Investor Relations
UBS’s Investor Relations team manages
relationships with institutional investors,
research analysts and credit rating agencies.
ubs.com/investors
Zurich +41-44-234-4100
New York +1-212-882-5734
Media Relations
UBS’s Media Relations team manages
relationships with global media and
journalists.
ubs.com/media
Zurich +41-44-234-8500
London +44-20-7567-4714
New York +1-212-882-5858
Hong Kong SAR +852-2971-8200
Office of the Group Company Secretary
The Group Company Secretary handles
inquiries directed to the Chairman or to other
members of the Board of Directors.
UBS Group AG, Office of the
Group Company Secretary
P.O.Box, CH-8098 Zurich, Switzerland
Zurich +41-44-235-6652
Shareholder Services
UBS’s Shareholder Services team, a unit
of the Group Company Secretary’s office,
manages relationships with shareholders
and the registration of UBS Group AG
registered shares.
UBS Group AG, Shareholder Services
P.O.Box, CH-8098 Zurich, Switzerland
Zurich +41-44-235-6652
US Transfer Agent
For global registered share-related
inquiries in the US.
Computershare Trust Company NA
P.O.Box 43006
Providence, RI, 02940-3006, USA
Shareholder online inquiries:
www.computershare.com/us/
investor-inquiries
Shareholder website:
computershare.com/investor
Calls from the US
+1-866-305-9566
Calls from outside the US
+1-781-575-2623
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+1-800-231-5469
TDD for foreign shareholders
+1-201-680-6610
Corporate calendar UBS Group AG
Information about future publication dates is available at
ubs.com/global/en/investor-relations/events/calendar.html
Imprint
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.
Annual Report 2025
8
Our key figures
UBS Group key figures
As of or for the year ended
USD m, except where indicated
31.12.25
31.12.24
31.12.23
Group results
Total revenues
49,573
48,611
40,834
Negative goodwill
27,264
Credit loss expense / (release)
524
551
1,037
Operating expenses
40,197
41,239
38,806
Operating profit / (loss) before tax
8,853
6,821
28,255
Net profit / (loss) attributable to shareholders
7,767
5,085
27,366
Diluted earnings per share (USD)
1
2.36
1.52
8.30
Profitability and growth
2
Return on equity (%)
3
8.8
6.0
36.9
Return on tangible equity (%)
3
9.5
6.5
40.8
Underlying return on tangible equity (%)
3,4
12.1
8.5
4.1
Return on common equity tier 1 capital (%)
3
10.8
6.7
41.8
Underlying return on common equity tier 1 capital (%)
3,4
13.7
8.7
4.2
Revenues over leverage ratio denominator,gross (%)
3
3.1
3.0
2.9
Cost / income ratio (%)
3,5
81.1
84.8
95.0
Underlying cost / income ratio (%)
3,4,5
74.4
79.5
87.2
Effective tax rate (%)
11.9
24.6
3.1
Net profit growth (%)
3
52.7
(81.4)
258.7
Resources
2
Total assets
1,617,427
1,565,028
1,716,924
Equity attributable to shareholders
90,213
85,079
85,624
Common equity tier 1 capital
6
71,262
71,367
78,002
Risk-weighted assets
6
493,397
498,538
546,505
Common equity tier 1 capital ratio (%)
6
14.4
14.3
14.3
Going concern capital ratio (%)
6
18.5
17.6
16.8
Total loss-absorbing capacity ratio (%)
6
38.0
37.2
36.4
Leverage ratio denominator
6
1,622,438
1,519,477
1,695,403
Common equity tier 1 leverage ratio (%)
6
4.4
4.7
4.6
Liquidity coverage ratio (%)
7
182.6
188.4
215.7
Net stable funding ratio (%)
116.1
125.5
124.7
Other
Invested assets (USD bn)
3,8
7,005
6,087
5,714
Internal and external personnel
9
119,589
128,983
138,462
Internal personnel (full-time equivalents)
103,177
108,648
112,842
Market capitalization
10,11
155,760
105,719
107,355
Total book value per share (USD)
10
29.18
26.80
26.68
Tangible book value per share (USD)
10
26.93
24.63
24.34
Credit-impaired lending assets as a percentage of total lending assets, gross (%)
3
0.9
1.0
0.8
Cost of credit risk (bps)
3
8
9
19
1 Refer to “Share information and earnings per share” in the “Consolidated financial statements” section of this report for more information.2 Refer to the “Targets, capital guidance and ambitions” section of this
report for more informationabout our performance targets.3 Refer to “Alternativeperformance measures” in theappendix to this reportfor the relevant definition(s)and calculation method(s). Eachalternative
performance measure (APM) that qualifies as a non-GAAP measureas defined by US Securities and Exchange Commission (SEC)regulations is designated as such in the table of APMs inthe appendix to this report.
4 Refer to the “Group performance” sectionof this report for more information aboutunderlying results.5 Negative goodwill is not used in thecalculation as it is presented in aseparate reporting line and is not
part of total revenues.6 Based on the Swiss systemicallyrelevant bank framework. Referto the “Capital management” section ofthis report for more information.7 The disclosed ratiosrepresent averages for
the fourth quarter of each year presented,which were calculated based on anaverage of 64 data points inthe fourth quarter of 2025, 64data points in the fourth quarterof 2024 and 63 data pointsin the fourth
quarter of 2023. Refer to the “Liquidity and funding management” section of this report for more information.8 Consists of invested assets for Global Wealth Management, Asset Management (including invested
assets from associates) and Personal & Corporate Banking.Refer to “Note 30 Invested assets andnet new money” in the “Consolidatedfinancial statements” section of this reportfor more information.9 Represents
full-time equivalents for internal personnel and workforce count for external personnel.10 Refer to the “UBS shares” section of this report for more information.11 The calculation of market capitalization reflects
total shares issued multiplied by the share price at the end of the period.
Alternative performance measures
An alternativeperformance measure(an APM)is afinancial measureof historicalor futurefinancial performance,financial
positionorcashflowsotherthanafinancialmeasuredefinedorspecifiedintheapplicablerecognizedaccounting
standards or inother applicable regulations.We report anumber of APMsin the discussionof the financialand operating
performance of the Group, our businessdivisions and Group Items. We use APMsto provide a more complete picture of
ouroperatingperformanceandtoreflectmanagement’sviewofthefundamentaldriversofourbusinessresults.A
definition of each APM,the method used tocalculate it and theinformation content arepresented under “Alternative
performance measures” inthe appendix tothis report. EachAPM that qualifiesas a non-GAAPmeasure as definedby
US Securities and Exchange Commission (SEC) regulations is designated as such in the table of APMs in the appendix to
this report.
›
Refer to “Alternative performance measures” in the appendix to this report for additional information
›
Refer to the “Group performance” section of this report for additional information about underlyingresults
Annual Report 2025
9
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 sub-group”
All UBS Group entities, excluding Credit Suisse AG and its consolidated
subsidiaries, Credit Suisse Services AG, and other small former Credit
Suisse Group entities now directly held by UBS Group AG
“UBS AG” and “UBS AG consolidated“
UBS AG and its consolidated subsidiaries
“Credit Suisse AG”
Credit Suisse AG and its consolidated subsidiaries,before the merger
with UBS AG
“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
“Credit Suisse Group AG”
Credit Suisse Group AG on a standalone basis, before the merger with
UBS Group AG
“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 Europe SE standalone”
UBS Europe SE on a standalone basis
“UBS Americas Holding LLC”
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.
Comparability
Profit and lossand other flow-basedinformation forthe yearsended 31 December2025 and31 December 2024is based
entirely on consolidated data following the acquisition of theCredit Suisse Group. Comparative information for the year
ended 31 December2023 includesseven months(June toDecember 2023)of post-acquisitionconsolidated dataand
five months of UBS Group data only (January to May 2023).
Balance sheetinformation asat 31December 2025,as at31 December 2024and asat31 December 2023is based
entirely on post-acquisition consolidated information.
ubs-20251231p34i0
Our Board of Directors
ubs-20251231p35i0
The Boardof Directorsof UBSGroup AG(the BoD),led by the Chairman, consists of between 6 and 12 members, as perour
Articlesof Association.The BoDdecideson thestrategyof theGroup, uponrecommendationby theGroup ChiefExecutiveOfficer
(the Group CEO),and is responsiblefor the overalldirection, supervisionand control of theGroup and its management.It is also
responsible for supervisingcompliance with applicablelaws, rules and regulations. The BoD exercises oversightover UBS Group
AG and its subsidiariesand is responsible for establishinga clear Group governanceframework to provideeffective steeringand
supervision ofthe Group,taking intoaccount thematerial risks,opportunities and impactstowhich UBSGroup AGandits
subsidiariesare exposed
and mayaffect itsperformance,value creationand reputation.The BoDhas ultimateresponsibilityfor the
success of the Groupand for delivering sustainable shareholder value within a framework ofprudent and effective controls. It
approves allfinancialstatementsand appointsand removes allGroup ExecutiveBoard (GEB)members.
ubs-20251231p36i0
Our Group Executive Board
UBS GroupAG operatesunder astrict dual-boardstructure, asmandated bySwiss bankinglaw, and thereforethe BoDdelegates
themanagement ofthe businessto theGEB. Asof31 December2025, theGEB, underthe leadershipofthe GroupCEO,
consisted of 15 members. Ithas executive management responsibility forthe steering of the Groupand its business, develops
the strategies of the Group, business divisions and Group functions, and implements the BoD-approved strategies.
›
Refer to “Board of Directors” and “Group Executive Board”in the “Corporate governance” section of this report or to
ubs.com/bod
and
ubs.com/geb
for the full biographies of the members of the BoD and the GEB
ubs-20251231p37i0
ubs-20251231p38i0
Annual Report 2025
14
Our evolution
Since our origins in themid-19th century, more than 500 different firms have become part ofthe history of our firmand
helped shape ourdevelopment. 1998 wasa major turningpoint: two ofthe threelargest Swiss banks,Union Bank of
Switzerland and Swiss Bank Corporation(SBC), merged to form UBS.Both banks were well established andsuccessful in
their ownright. UnionBank ofSwitzerland hadgrown organicallyto becomethe largestSwiss bank.In contrast,SBC
had grown mainly through strategic partnerships and acquisitions, including S.G. Warburg in 1995.
In2000,weacquiredPaineWebber,aUSbrokerageandassetmanagementfirmwithrootsgoingbackto1879,
establishing us asa significant playerin the US.Since 1964, wehave been buildingour strong presencein the AsiaPacific
region, where we are by far the largest wealth manager,
1
with asset management and investment banking capabilities.
After incurring significantlosses in the2008 financial crisis,we sought toreturn to ourroots, emphasizing aclient-centric
model that requires less risk-taking and capital. In 2011, we starteda strategic transformation of our business model to
focus on our traditional businesses: wealth management globally, and personal and corporate banking in Switzerland.
In2014,webeganadaptingourlegalentitystructureinresponsetotoo-big-to-fail(TBTF)requirementsandother
regulatory initiatives.First, weestablished UBSGroup AGas the ultimateparent holdingcompany forthe Group.In 2015,
we transferred personal and corporate banking and Swiss-booked wealthmanagement businesses from UBS AG to the
newly establishedUBS SwitzerlandAG. Thatsame year,we setup UBSBusiness SolutionsAG asthe Group’sservice
company. In2016, UBSAmericas Holding LLCbecame theintermediate holding companyfor ourUS subsidiaries,and
ourwealthmanagementsubsidiariesacrossEuropeweremergedintoUBSEuropeSE,ourGermany-headquartered
European intermediate parentundertaking.In 2019, wemerged UBS Limited,our UK-headquartered subsidiary,into UBS
Europe SE.
2023 wasanother definingmoment inour history,as weacquired theCredit SuisseGroup, aglobal systemicallyimportant
financialinstitutionandamajorwealthmanagerheadquarteredinSwitzerland,whichwasfoundedin1856.The
acquisition followeda requestfrom theSwiss FederalDepartment ofFinance, theSwiss NationalBank andthe Swiss
Financial Market SupervisoryAuthority (FINMA), withsupport from othersupervisors, to UBSGroup AG andCredit Suisse
Group AGto givedue considerationto theacquisition inorder torestore necessaryconfidence inthe stabilityof the
Swiss economyand bankingsystem andto servethe bestinterests ofthe shareholdersand stakeholdersof UBSand
Credit Suisse.The acquisitionstrengthened ourposition todayas thelargest trulyglobal wealthmanager, theleading
bank in Switzerland, a global, large-scale and diversified asset manager, and a focused investment bank.
In 2024 and 2025, several mergers of subsidiaries and otherdevelopments in our legal entity structure were effected, as
the process of integratingCredit Suisse progressed further.The mergers included thoseof UBS AG and CreditSuisse AG,
and UBS Switzerland AG and Credit Suisse (Schweiz) AG, both in 2024, and that of UBS Americas Inc. and Credit Suisse
Holdings (USA), Inc. in 2025. Inaddition, the transition to asingle US intermediate holding company wascompleted in
2024,and, in2025,UBS Europe SE wasestablishedas thesingle EUintermediate parentundertaking.Also in2025,
Credit Suisse Internationaltransferred substantially allof its residualbusiness and therelated products toUBS AG London
Branch and UBSEurope SE. The chartbelow gives anoverview of ourprincipal legal entitiesand our legalentity structure
as of 31 December 2025.
›
Refer to
ubs.com/history
for more information
›
Refer to the “Integration of Credit Suisse” section of this report for more information
The legal structure of the UBS Group as of 31 December 2025
1
Asian Private Banker (April 2025) and UBS estimate.
Annual Report 2025 |
Our strategy, business model and environment | Integration of Credit Suisse15
Our strategy, business model and
environment
Management report
Integration of Credit Suisse
On 12 June2023, UBS GroupAG acquiredCredit SuisseGroup AG,succeedingby operationof Swiss lawto all assetsand
liabilitiesof CreditSuisse GroupAG.
Since theacquisition, wehave significantly simplifiedourlegal entitystructure acrosskeyjurisdictions, having merged
UBS AG andCredit Suisse AGinMay2024andhaving completedthetransition toasingle USintermediate holding
company andthe mergerof UBS SwitzerlandAG and CreditSuisse (Schweiz)AG in July2024.
In 2025,we mergedCreditSuisseHoldings(USA),Inc.withUBSAmericasInc,deregisteredCreditSuisseSecurities(USA) LLC
as abroker-dealerand establishedUBS EuropeSE asthe singleEU intermediateparentundertaking.Moreover,CreditSuisse
International transferredsubstantially all of its residual business and the related products to UBS AG London Branch and
UBS EuropeSE.
In the first quarter of 2025,we completedthe consolidationof ourbranch networkin Switzerland,having merged95
branches with existing ones since the merger of UBS Switzerland AG and Credit Suisse (Schweiz) AG.
Throughout2025,wealsocontinuedtomakeexcellentprogresswithrespecttoclientaccountmigrationsand
infrastructure decommissioning.By theend ofthe fourthquarter of2025, 85%of Swiss-bookedaccounts hadbeen
migrated, including substantially allof the targeted Personal& Corporate Banking clientaccounts. We remain ontrack
to complete the migrations of the Swiss-booked client accounts by the end of the first quarter of 2026.
In2025,werealizedatotalofUSD 3.2bningrosscostsavings.Cumulativegrosscostsavingsattheendof2025
amounted to USD 10.7bn compared with the 2022 combined costbase of UBS and Credit Suisse. In thefourth quarter
of 2025, weidentified additional synergies thatenabled us toincrease our ambition forannualized exit rategross cost
savings by the end of 2026 from around USD 13bn to approximately USD 13.5bn.
As of31 December 2025,our Non-coreand Legacydivision haddecommissioned 73%of itsapplications. Ithas also
delivered areduction ofaround 80%in underlyingoperating expenses(excluding litigation)compared withthe 2022
combinedbaselineanddelivereda67%reductioninrisk-weightedassets(RWA)sincethesecondquarterof2023.
Having already achieved a reduction of credit and market risk RWA to aroundUSD 5bn, we are well positioned to meet
our ambition ofaround USD 4bn by theend of 2026. Wealso have a2026 exit rateambition of around USD 0.5bnin
underlying operating expenses (excluding litigation).
In March 2025, we completed the sale of Select Portfolio Servicing,the US mortgage servicing business of Credit Suisse,
which was managedin Non-core andLegacy. We recognizeda gain ofUSD 97m upon thecompletion of thetransaction,
and thecompletion reducedthe Group’sRWA byaround USD 1.3bnand theGroup’s leverageratio denominatorby
around USD 1.7bn.
In October2024, weentered intoan agreementto sellto American ExpressSwiss Holdings GmbH(American Express)
our 50% interest in Swisscard AECS GmbH(Swisscard). At the same time, we enteredinto an agreement with Swisscard
totransition theCredit Suisse-brandedcard portfoliosto UBS.Thepurchase ofthecard portfolioswascompleted in
January 2025. InJanuary 2026,we completedthe saleof our50% interest inSwisscard toAmerican Express, andwe
expect to record a gain on sale in the first quarter of 2026. As previously disclosed, this gain is expected to largely offset
the effects related tothe prior Swisscard transactionsrecorded in the firstquarter of 2025 (anexpense of USD 180m and
a gain of USD 64m) and the fourth quarter of 2024 (an expense of USD 41m).
›
Refer to “Note 28 Changes in organization and acquisitions and disposals of subsidiaries and businesses” in the “Consolidated
financial statements” section of this report for more information
We expect to substantially complete the integration of Credit Suisse by the end of 2026.
Annual Report 2025 |
Our strategy, business model and environment | Integration of Credit Suisse16
Remediation of Credit Suisse material weaknesses
In March 2023, priorto the acquisition by UBSGroup AG, the CreditSuisse Group and CreditSuisse AG disclosed that
their management had identified materialweaknesses in internal control over financialreporting as a result of which the
Credit Suisse Group and Credit Suisse AG had concluded that, as of 31 December 2022 and 2021, their internal control
over financialreportingwas noteffective.Following theacquisition andmerger ofCreditSuisse GroupAG intoUBS
GroupAG inJune 2023,CreditSuisse AGconcluded thatas of31 December 2023its internalcontrolover financial
reporting continuedto beineffective. Aspermitted bySEC guidancein theyear ofan acquisition,UBS GroupAG excluded
Credit Suisse AG fromits assessment of internal controlover financial reporting forthe year ended 31 December2023
and concluded that its internal control over financial reporting was effective as of such date.
SincetheCreditSuisseacquisition,UBShasexecutedaremediationprogramtoaddresstheidentifiedmaterial
weaknesses and has implemented additional controls and procedures.
Asof31 December 2024,management assessedthat thechanges tointernalcontrols madetoaddressthe material
weaknessesrelatingtotheclassificationandpresentationoftheconsolidatedstatementofcashflows,aswellas
assessment and communicationof the severityof deficiencies, weredesigned and operatingeffectively. The remaining
materialweaknessrelatedtotheriskassessment ofinternalcontrols. During2024,UBSintegratedtheCredit Suisse
control framework intothe UBS internalcontrol framework andrisk assessment andevaluation processes. Inaddition,
UBS reviewed theprocesses, systems and internalcontrols in connection withthe integration ofCredit Suisse intoUBS
and implemented additional processes and controls to reflect the increase incomplexity of the accounting and financial
controlenvironmentfollowingtheacquisition.Managementassessedthattheriskassessmentprocesswasdesigned
effectively.
However,consideringtheincreasedcomplexityoftheinternalaccountingandcontrolenvironment,theremaining
migration efforts stillunderway and limitedtime to demonstrateoperating effectiveness andsustainability of thepost-
merger integratedcontrol environment, managementconcluded that additionalevidence ofeffective operation ofthe
remediatedcontrolswasrequiredtoconcludethattheriskassessmentprocesseswereoperatingeffectivelyona
sustainable basis. Inlight of theabove, management concludedthat there wasa material weaknessin internal control
over financial reporting at 31 December 2024.
Asof31 December2025,UBSmanagementhasassessedtheeffectivenessofUBS’sriskassessmentprocessand
concluded that changes made to the risk assessment processes were designed and operating effectively, with significant
integration and migration steps completed. UBS managementhas therefore concluded that the risk assessmentmaterial
weakness has been remediated.
›
Refer to “Management’s reporton internal control over financial reporting” in the “Consolidated financial statements” sectionof
this report for more information about management’sassessment of internal control over financial reporting as of 31 December
2025 and the remediation of Credit Suisse material weaknesses
Annual Report 2025 |
Our strategy, business model and environment | Our strategy17
Our strategy
UBS – who we are
We are theworld’s onlytruly globalwealth managerand theleading bankin Switzerland.These keypillars ofour strategy
are enhanced by ourfocused and competitive asset managementand investment banking capabilities. Stayingclose to
our clients, whether theyare individuals, institutions orbusinesses, and providing financialadvice and solutions tohelp
themtoachievetheirgoalsisattheheartofwhatwedo.Wehaveacapital-generativeandwell-diversifiedglobal
business model with strong competitive positions in our target markets and the regions in which we operate.
Our businessmodel, includingour regionaldiversification, withour deep-rooted,risk-aware culture,superior clientservice
and prudent capitalmanagement,is built onour respected brandand has madeit possible tosustainably grow profits
and deliver attractive capital returns to shareholders over the long term.
We are focused on driving sustainable long-term growth while maintaining risk and cost discipline
Our objective is to generate value for our stakeholders by driving sustainable long-term structural growth and attractive
capital returns. Toaccomplish this, weare building onour scale, contentand solutions, whileremaining disciplined on
capital, risk and costs. Maintaining a balance sheet for all seasons remains a foundation of our success and a significant
source of strengthand resilience.This provides uswith thecapacity toinvest strategicallyand enablesus todeliver against
our financial targets and ambitions, whichare outlined in the “Targets,capital guidance and ambitions” section of this
report.
Our growth plansare rootedin an attractivebusiness mix,that is alsoa source ofcompetitive strength,and are supported
by collaborationbetween ourbusinesses. Ourasset-gathering businessesgenerate closeto 60%of ourrevenues
1
and
are characterizedby beingstructurally attractivefrom acapital consumptionperspective,representing around39% of
our risk-weighted assets (RWA).
1
Around another third of our RWA
1
are in Personal & Corporate Banking in Switzerland,
our home market and an attractive, stable andwell-diversified economy, with low historic credit losses.Furthermore, we
operate a capital-efficient Investment Bank, which is limited to 25% of Group RWA.
1
Our aim is to create long-term sustainable value.We also have a responsibility to the communities inwhich we live and
operate, andto ouremployees. Wehave outlinedselected environmental,social andgovernance (ESG)aspirations, which
are aligned with our financial targets and ambitions.
We have a global, diversified business model
Our investedassets ofmore thanUSD 7trn areregionally diversifiedacross theglobe. Wegive ourclients accessto a
broad,relevantandcustomizablerangeofsolutions,which,togetherwithourthoughtleadershipandcapabilities,
position us wellto become theirpartner of choice.Our strategic ambitionsreflect the long-termoutlook on demographic
and social trends affecting wealth distribution, product demand and client experience.
We are amongthe market leadersin theAmericas, theworld’s largestwealth pooland one ofthe fastest-growingwealth
markets. Around half of theinvested assets our wealth managementclients entrusted us with arebooked in that region.
Following the acquisitionof Credit Suisse,the InvestmentBank hasinvested in growingits GlobalBanking and Global
Markets capabilities in the region, and is focused on cross-regional and cross-divisional collaboration to drive growth.
Asia Pacific is our fastest-growingregion, and where we continueto lead as thelargest wealth manager
2
and remain a
consistent top-tierinvestment bank.We arefurther investingin andgrowing ourbusinesses todeliver leadingcapabilities,
capitalizing on market momentum in the Hong Kong SAR and the mainland of China, leveraging strong cross-divisional
collaboration and global connectivity, anddriving growth through a diversifiedfootprint, with the HongKong SAR and
Singapore as the regionalhubs, as wellas strategic partnerships inmarkets such as Japanand India. In2025, our total
invested assets in Asia Pacific surpassed the USD 1trn milestone for the first time.
In EMEA, we are one of the largest wealthmanagers, and we are focused on deepening our shareof wallet with EMEA-
domiciled global clients, while further driving profitability in select key markets, including the Middle East.
Finally, in Switzerland we have a highly integratedbusiness model and aim to reinforce our positionas the leading bank.
We aredriving ourdigital transformation, enhancingthe clientexperience and improvingefficiency, whilefocusing on
capturing growth opportunities.In 2025, UBSwas again namedBest Bank inSwitzerland by
Euromoney
, for theeleventh
time since 2012. Ourrole as a trustedpartner to the Swisseconomy remains central toour strategy. This isreflected in
our substantialcontribution tothe Swisseconomy, including,among otheraspects, alending volumecommitment of
CHF 350bn.
We deliver integrated coverage for clients by collaborating as one UBS
We are committed to servingour clients as onefirm, with collaboration acrossour business divisions beinga cornerstone
of our strategyand a keydifferentiator,as we deliverthe full valueof the firmto clients. Forexample, our asset-gathering
businesses workin synergyto offerclients acomprehensive productsuite pairedwith exclusive,personalized services.
The Investment Bank complements these by delivering insights, execution capabilities and risk management expertise to
both wealth management clients with complex needs and Swiss corporate clients.
Annual Report 2025 |
Our strategy, business model and environment | Our strategy18
In today’sinterconnected world, ourwealth managementclients arebecoming increasinglyglobal andmobile inboth
their business and personallives, demanding comprehensive, seamless,multi-jurisdictional financial solutions. Withour
unmatched global footprint andbest-in-class solutions, we are wellpositioned to connect our clientsto the firm across
jurisdictions in a systematic and integrated manner.
We are investing in our technology to improve the client experience and enhance employee productivity
We continue to focus on investing in a resilient and secure technology infrastructure that is designed to help ensure the
stabilityofourservicesforourclientsandemployeesworldwide.Thisincludesinvestmentstostrengthenourcore
platforms, modernizeapplications and enhance system reliability,in an increasingly complex environment.
SinceouracquisitionoftheCreditSuisseGroupin2023,oneofourkeyfocusareashasbeentheintegrationof
technology andoperations. Wecontinue torapidly advancein thisspace, withapproximately 1,600Credit Suissebusiness
applicationsdecommissionedbytheendof2025(55%ofthoseinscope)andaround85%ofSwiss-bookedclient
accounts transferred. In addition, our strongtechnology foundation has facilitated an overallseamless integration across
the Group, including the migration of businesses and client accounts to the UBS platforms.
›
Refer to the “Integration of Credit Suisse” section of this report for more information
We also continueto strengthen ourtechnology position, witha focus onaccelerating our Groupartificial intelligence (AI)
strategytoachieveimpactfuloutcomesmorequicklyandincrementally.In2025,weappointedaChiefArtificial
Intelligence Officer tosupport UBS’s transformation intoa fully AI-enabledinstitution. We aremoving quickly to adopt
AI throughouttheGroup toreshapebusiness capabilitiesand enhanceemployee productivity,andwe areconstantly
developing and exploring newopportunities, from more traditional automationto agentic AI solutions.Our AI strategy
is centered around nine large-scaletransformational AI initiatives. These initiatives aredesigned to have a broadimpact
across the Group,increasing efficiency andimproving processes andsystems. For example,we are implementingthe next
generation of software development,which includes the widespreaddeployment of AI-augmented developmenttools,
enabling engineersto deliver faster,more innovativeand scalable solutionsand streamlining UBS’ssoftware development
cycle.
To support our employees, weare upskilling and reskilling employeesin AI and adjacent technologiesthrough specific AI
training toensure innovationis embeddedresponsibly andeffectively. Wealso continueto investin partnershipswith
leadingacademicinstitutionsworldwideandotherkeyplayers,todevelopideas,drivepositiveoutcomesacrossthe
Group andfoster pioneeringAI research.For example,we haveannounced thelaunch ofthe Oxford-UBSCentre for
Applied Artificial Intelligence, focusing on three key research areas (society, economy and thefuture of AI). This enables
us to explore pioneering applications and practical solutions that can be implemented at scale across the Group.
These effortsareunderpinned byanAI frameworkand policythat havebeen designedto safeguardthe interestsof
clients, employees and stakeholders. In parallel,we maintain a strong focuson operational resilience, cybersecurity and
data protection to support keeping our platforms secure, stable and available at all times.
›
Refer to the “Risk management and control” section of this report for moreinformation
Inaddition,weareactivelybuildingoutfoundationaldigitalassetinfrastructuretolauncharangeofnewproducts
addressing evolving client needs. For example,we are investing in our solutionsfor the tokenization of real-world assets,
such as
UBS Tokenize
. We arealso developing digitalmoney offerings, suchas our
UBS Digital Cash
tokenized deposit
solution, and we are evaluating stablecoins. Finally, we are also exploring access to cryptocurrencies.
Supporting sustainability
We are guided by our ambition tobe a leader in sustainability.This is reflected in our vision to bethe bank for the next
generation. Tohelp us realizethat vision, our sustainabilityand impact strategy isbased on threeoverarching strategic
pillars: Protect, Grow and Attract.
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more
information
1
Excluding Non-core and Legacy.
2
Asian Private Banker (April 2025) and UBS estimate.
ubs-20251231p43i0
Annual Report 2025 |
Our strategy, business model and environment | Targets, capital guidance and ambitions19
Targets, capital guidance and ambitions
We remain committed to the Group’s 2026 exit-rate financialtargets and long-term ambitions. We are targeting, bythe
end of 2026,an underlying returnon common equitytier 1 (RoCET1) capitalof around 15%(exit rate) andan underlying
cost / income ratio of less than 70% (exit rate). For 2028, ourambition is to deliver reported RoCET1 of around 18% in
2028 (based onthe current capitalframework and assuminga commonequity tier 1 (CET1)capital ratioof around14%).
Supporting this isa recently introducedambition to delivera reported cost / incomeratio of around67%. We arewell
positioned to deliver on thosetargets and ambitions, and webelieve that our scale andclient franchises, as well asthe
completion of the integration, will enable us to achieve sustainable higher returns.
The graphic below shows our Group financial targets, capital guidance and long-term ambitions.
As of the end of2025 our cumulative gross costsavings amounted to USD 10.7bn compared withthe 2022 combined
cost baseof UBSand CreditSuisse. Wehave identifiedadditional synergies,enabling usto increaseour ambitionfor
annualized exit-rate gross cost savings by the end of2026 from around USD 13bn to approximately USD 13.5bn. Gross
cost savingswill providethe necessarycapacity forinvestment incapabilities, talentand technologyto deliveron our
2028 ambitions.
Group targets, ambitions and guidance
We are on track to deliver on our exit-rate targets upon completion of the integration by the end of 2026:
–
an underlying RoCET1 of around 15%;
–
an underlying cost / income ratio of less than 70%; and
–
gross cost savings of around USD 13.5bn compared with the 2022 combined cost base of UBS and Credit Suisse.
As we completethe integration, webelieve our scaleand client franchiseswill position usto sustainably deliverhigher
returns.WeaimtodeliverreportedRoCET1ofaround18%in2028(basedonthecurrentcapitalframeworkand
assuming a CET1 capital ratio of around 14%) and a reported cost / income ratio of around 67% in 2028.
Our capital guidance remains unchanged, and we aim to maintain:
–
a CET1 capital ratio of around 14%;
–
a CET1 leverage ratio of greater than 4.0%; and
–
a UBS AG standalone CET1 capital ratio of between 12.5% and 13.0%.
For our business divisions we have the following ambitions:
–
for Global Wealth Management, more than USD 5.5trn of investedassets by the end of 2028, more than USD 200bn
of net new assets per annum from 2028 and a reported cost / income ratio of around 68%;
–
for Personal& CorporateBanking, areported cost / incomeratio ofaround 48%in 2028and areported returnon
attributed equity of around 19% over the medium term;
–
for Asset Management, a netnew money growth rate ofaround 3% (through the cycle)and a reported cost / income
ratio of around 65% in 2028;
–
for the Investment Bank, a reported return on attributed equity of around 15% (through the cycle); and
–
for Non-core and Legacy, underlying operating expenses (excluding litigation) of around USD 0.2bn in 2028.
Annual Report 2025 |
Our strategy, business model and environment | Targets, capital guidance and ambitions20
Our aspirationson environmental, socialand governance(ESG) mattersare set outin the UBSGroup SustainabilityReport
2025,
available under “Annual reporting” at
ubs.com/investors
.
Performanceagainstthesetargets,capitalguidanceandambitionsistakenintoaccountwhendeterminingvariable
compensation.
›
Refer to “Society” and “Our focus on sustainability”in the “Our stakeholders” section and to the “Corporate governance” section
of this report for more information about ESG matters
›
Refer to the “Compensation” section of this report for more information about variable compensation
›
Refer to “Alternative performance measures” in the appendix to this report for definitions of andfurther information about our
performance measures
Annual Report 2025 |
Our strategy, business model and environment | Our businesses21
Our businesses
Weoperatethroughfivebusinessdivisions:GlobalWealthManagement,Personal&CorporateBanking,Asset
Management,theInvestmentBankandNon-coreandLegacy.Withsignificantpresencesinthelargestandfastest-
growing markets, ourglobal reach andthe breadth anddepth of ourexpertise are majorassets that setus apart from
our competitors. We see collaboration, both within andbetween business divisions and regions, as key todelivering on
our growthobjectives. OurGroup functionsare supportand controlfunctions thatprovide servicesto theGroup. Virtually
all costs incurred by the Group functions are allocated to thebusiness divisions, leaving a residual amount that we refer
to as Group Items in our segment reporting.
Global Wealth Management
We are the world’s only trulyglobal wealth manager, dedicated to serving highand ultra high net worth individuals, as
wellasselectinstitutionalclients,throughtrustedadvisorandfinancialintermediaryrelationships.Ourglobalreach
combined with localexpertise, Chief InvestmentOffice (CIO)-led investmentapproach, comprehensive solutionsplatform
and premium brand are key differentiators.
GlobalWealth Managementisjointlymanaged bytwo Co-Presidentsandorganized intofiveregionalbusiness units
covering the US, Latin America, Asia Pacific, EMEA and Switzerland, as well as capability business units, such as the CIO
and GWM Solutions, and support units.Altogether, these units help to efficiently deliverresearch and solutions, tied to
the CIO-led value proposition,to our clients – leveraging our global scale and local implementation.
For regional financial reportingpurposes, we disclose selectedinformation about the Americas,Asia Pacific, EMEA and
Switzerland regions, and Divisional items.
Our business
We help clients to protect and grow their investmentsand pursue what matters most tothem through advice, expertise,
and tailored solutions.
We offer clientsadvice on wealth planningto sustainably increasetheir wealth overthe long term througha broad range
of solutions, including discretionary oradvisory mandates and investmentfunds where we have distributionagreements.
ThesesolutionsrepresentUSD 2.1trninfee-generatingassetsglobally,whichisasubsetoftotalinvestedassetsof
USD 4.8trn. The remaining invested assetsrepresent advisory assets or assets generatingprimarily transaction-based and
interest income,mainly from trading, cash, deposits and lending services.With discretionary mandates, clients delegate
investmentdecisionstoUBSandbenefitfromourfullinvestmentcapabilities,includingportfoliomanagement,
instrument selection and accessto leading external managersacross traditional, sustainable andalternative asset classes.
With advisorymandates, clientsmake theirown investmentdecisions, supportedby professionaladvice andportfolio
monitoring guided by the
UBS House View
. Our investment offering covers a broadrange of instruments, including cash
equities, cashbonds, moneymarket instruments,investment funds,structured productsand alternativesolutions that
provide accessto privatemarkets, hedge fundsand realestate assets.We typicallygenerate recurringnet feeincome,
which is primarily linked to the value of the fee-generating assets. This fee income includes portfolio management fees,
asset-based fund fees, custody fees and administrative fees. We also generate transaction-based income, whichconsists
primarilyofbrokeragerevenues,tradingrevenues,foreignexchangefeesandotherchargeslinkedtospecificclient
transactions.
›
Refer to “Alternative performance measures” in the appendix to this report for the definition andcalculation method of invested
assets, fee-generating assets, net new money and net new assets
›
Refer to “Note 30 Invested assets and net new money” in the “Consolidated financial statements” section of this reportfor more
information about invested assets and net new money
Beyond our investmentsolutions, we offer acomprehensive range of bankingservices, including lending anddeposits.
Our lending offeringincludes securities-based lending,mortgages, structured productsand tailored solutionsdesigned
to meet more sophisticated borrowing needs of ourclients – including select institutional clients – andtheir businesses.
Asof31 December2025,ourlendingportfolioamountedtoUSD 327bngloballyandgeneratedrevenuesprimarily
through net interest income.In terms of deposits, we provideclients with flexibility and convenientaccess to their funds.
These deposits, which also contribute to net interest income, totaled USD 479bn globally as of 31 December 2025. Our
broad-basedinvestmentandbankingsolutionshelpusattractnetnewmoneyfromnewandexistingclients.This,
combined with dividends and interest, drives net new assets.
ubs-20251231p46i1 ubs-20251231p46i0
Annual Report 2025 |
Our strategy, business model and environment | Our businesses22
Our CIO-ledvalue proposition isdesigned to identifyinvestment opportunities toprotect andgrow our clients’wealth
overthelongterm,formingthebasisofthe
UBSHouseView
.TheCIOgathersinsightsonfinancialplanning,
macroeconomics, multi-assetstrategies, stocks,bonds, currenciesand commodities,as wellas structured,sustainable,
and alternative investments. GWM Solutions brings all UBS products underone umbrella and efficiently and consistently
implements the CIO’s guidance, delivering integrated solutions that put the
UBS House View
into action for our clients.
We continueto investin ourplatforms toenhance theclient experienceand deliverthe fullvalue ofour CIO-ledapproach.
Clientscanaccessresearchandsolutions directlythroughourdigital bankingchannels,wherethe
DirectInvestment
Insights
function enables themto act on CIO-drivenideas seamlessly and efficiently.For clients who prefera personalized
discretionary solution,
UBS My Way
offers a flexible, digital-led platform thatenables them, together with their advisor,
to tailor portfoliosto their individualpreferences and objectives.For those seekingprofessional guidance whileremaining
actively involvedin decision-making,
UBS AdviceCompass
equips advisorsto workside-by-side withclients, reviewing
portfolios in depth and identifying actionable opportunities aligned with the
UBS House View
.
Weareembeddingadvancedartificialintelligence(AI)capabilitiesacrossourplatforms.AI-poweredtools,including
chatbots, intelligent searchfeatures and multi-mediafunctionalities, are enhancingboth client andadvisor experiences
by making the investment insights delivery more efficient and personalized.In addition, we connect clients with cutting-
edge research, innovative solutions and exclusive access to experts in the AI space and beyond, helping themto stay on
top of the latest innovations shaping today’s industries.
›
Refer to “We are investing in our technology to improve the clientexperience and enhance employee productivity” in the “Our
Strategy” section of this report for more information
Competition
Our main competitors fall into two categories: competitors with a strong position in the Americas but with more limited
global footprints, such as Morgan Stanley,JPMorgan Chase, Bank of Americaand Wells Fargo, as wellas some smaller
firms, suchas RaymondJames; andcompetitors withinternational footprints butwith asmaller presencethan UBSin
the US, such as Julius Baer, BNP Paribas, Deutsche Bank and HSBC. We also compete with fintech firms in some regions
and products.We havestrong positionsacross allkey regions,including thelargest wealthregion (theUS) andthe fastest-
growing wealth regions (Asia Pacific, the Middle East andLatin America), as well as the more mature markets inEurope,
including Switzerland. The scaleof our global franchise,our bespoke cross-divisionalsolutions and ourpremium brand
and reputation differentiate us from our competitors and would be difficult to replicate.
Annual Report 2025 |
Our strategy, business model and environment | Our businesses23
Personal & Corporate Banking
Personal & CorporateBanking is atthe core ofour operations inSwitzerland, the onlymarket in whichwe operate across
allofourbusinessareas,supportingourclientsandtheSwisseconomywithUBS’sunparallelledglobalreachand
capabilities.
We are the leading universal bank in Switzerland, and we provide anextensiverange offinancialproductsand servicesto
private, corporateand institutionalclients. Weare a go-tobank for entrepreneursin Switzerland,providing comprehensive
support atevery stageof the entrepreneurialjourney.With ournetwork ofaround 190branchesand highlyqualifiedclient
advisors,complementedby moderndigital bankingservicesand customerservice centers,we servemore thanone-thirdof
Swiss householdsand more than90% of largeSwiss companies.
In 2025, UBS was again named Best Bank inSwitzerland by
Euromoney
, for the eleventh time since 2012. Our role asa
trustedpartnerto theSwiss economyremainscentralto ourstrategy.This isunderpinnedby ourpledge toremain areliable
providerof creditto the Swisseconomy througha lendingvolume commitmentof aroundCHF 350bn.
Alignedwith theUBS Group’sartificialintelligence(AI) strategyand ambitionto becomean AI-enabledinstitution,Personal
& Corporate Banking is embedding AI into its operations to driveinnovation and enhance client experience. In addition,
Personal &CorporateBanking isactively shapingthe UBS digitalassets offeringto meet theemergingneeds of ourclients.
For example,we aredeveloping digital moneyofferings forcorporate clients andexploring access tocrypto assetsfor
individualclients.
›
Refer to “We are investing in our technology to improve the clientexperience and enhance employee productivity” in the “Our
Strategy” section of this report for more information
Our business
Personal &Corporate Bankingis composedof twobusiness areas: PersonalBanking andCorporate &Institutional Clients.
In Personal Banking, weprovide clients with acomprehensive suite oflife-cycle-oriented products and services.Financing
solutions, primarilymortgages, anddeposits formthe cornerstoneof ouroffering. Additionally,we provideour clients
with access toinvestment products andpension solutions. Ourclients also benefitfrom further services,such as payment
solutions, card transactions and foreign exchange operations.
In Corporate & Institutional Clients, weserve corporate and institutional clients with acomprehensive suite of solutions
backed bydeep expertise.Our financingoffering anddeposit productsare thecentral pillarof ouroffering. Asecond
pillarconsistsofservicesrelatedtoforeignexchange,paymentsandtradefinance.Athirdpillarincludesadditional
services, such as asset custody and the provision of investment fund products.
On an aggregate Personal &Corporate Banking level, netinterest income from ourfinancing and deposit offeringsis the
primaryincomecontributor,accountingformorethanhalfoftotalrevenues.Transaction-basedincomegenerated
through payments, cardtransactions, trade financeand foreign exchangeoperations is thesecond-largest contributor,
making up approximatelyone quarter oftotal revenues. Additionalrevenues are mainlyderived from recurringnet fee
income linked to our investment products, pension solutions, asset custody services and basic banking offerings.
In Personal &Corporate Banking, we workin close collaboration withother business areasto provide ourSwiss clients
seamless access to a broad range of capabilities and globalreach. In collaboration with Global Wealth Management, we
deliver leading wealthmanagement servicestailored to clients’individual needs. Inpartnership withthe Investment Bank,
we offercapital marketand foreignexchange products,hedging strategies,trading capabilitiesand corporatefinance
advice. Additionally,through ourcooperation withAsset Management,we providecomprehensive fundand portfolio
management solutions.
We supportour clientsin achievingtheir sustainabilitygoals, asboth corporateclients andindividuals havebeen exploring
effective strategies fortransitioning to alower-carbon economy.For example, wehave enhanced ourSwiss real estate
services tofurther support clientswith renovatingand refurbishingtheir propertiesto achievehigher energy efficiency
standards. Furthermore,we haveintroduced CO
2
portfolio reportingcapabilities forinstitutional investorson our
UBS
key4
mortgageplatform,enhancingtransparencyandfacilitatingmoreinformeddecision-makingregardingtheir
portfolios. Theseinnovations markimportant stepsin helpingour clientsimprove theenergy efficiencyand long-term
value of their properties.
We consider a strong partner network as essential for UBS’s success in Switzerland, enabling us to serve both corporate
andindividualclientsholisticallythroughbank-adjacentservices.Thesepartnershipsnotonlyfosterdeeperclient
relationships, accelerate time to market and offer flexible integration options, but also unlock new market opportunities
and revenue streams.
Ourpartnernetworkincludescollaborationswithplatformsforstart-ups,suchasFasoon,Startups.ch,andNewCo,
enabling us to activelysupport clients in takingtheir first entrepreneurial steps. Partnershipsaimed at building stronger
relationships with our mortgage clientsare another example. Our exclusivepartnership with the SMG SwissMarketplace
Group enables us to supportpotential property buyers in theirjourney toward owning a homethrough our integration
with Switzerland’s largest real estate portals, such as Homegate and Immoscout24.
ubs-20251231p48i0
Annual Report 2025 |
Our strategy, business model and environment | Our businesses24
Competition
In Personal Banking, our main competitors are the Swiss cantonal banks, Raiffeisen, PostFinance and other regional and
local Swiss banks; we also face competition from international neobanks and other national digital market participants.
In thecorporate and institutionalbusiness, the Swisscantonal banks andforeign banks areour maincompetitors. We
also support the internationalbusiness activities ofour Swiss corporateclients through localhubs in NewYork, Frankfurt,
Singapore and the Hong Kong SAR, where we compete with other foreign banks that have global operations. No other
Swiss bank offers its corporate clients local banking capabilities abroad.
Asset Management
We are a global, large-scale and diversified asset manager offeringinvestment capabilities and strategies to institutions,
wholesale intermediariesand GlobalWealth Managementclients. Withtotal investedassets ofover USD 2trn,we are
one of the leading Europe-based asset managers.
We are focused on meeting the evolving needs of ourclients by capitalizing on the products and areas wherewe have a
differentiated andscalable offeringand byenhancing ourpartnerships withthe otherbusiness divisionsacross theGroup.
In 2025, wehave integrated thebreadth of ourdirect public andprivate markets capabilitieswithin our Investmentsarea,
enabling us to leverage the best of our expertise and technology within a single platform.
Following thischange, AssetManagement isorganized intofour areas:Client Coverage;Investments, UnifiedGlobal
Alternatives; and the Chief Operating Officer area.
We cover the mainasset management marketsglobally and havea local presence in24 locations across fourregions: the
Americas; Asia Pacific;EMEA; and Switzerland.We also continue tobuild on our long-standingpresence in China,where
we have enhanced our onshore presence through the ICBC joint venture.
To supportsustainable growthacross ourbusiness, weare transformingour end-to-endplatform andembedding artificial
intelligence acrossour investment,front-to-back anddistribution processesto enhancescalability, efficiencyand client
outcomes. We also remain focused on capturing structural efficiencies and further sharpening our product offering.
›
Refer to “We are investing in our technology to improve the clientexperience and enhance employee productivity” in the “Our
Strategy” section of this report for more information
Our business
We are committed to delivering investment excellence and to creating value for our clients thatendures through cycles.
We offera rangeof investmentproducts andservices acrossall majortraditional andalternative assetclasses andinvesting
styles.
We have organized our direct investment capabilities across the following areas.
ActiveEquities
–investmentstrategieswithvaryingriskandreturnobjectives,includingglobal,region-focusedand
thematic strategies, as well as high alpha, growth and quantitative styles.
Active FixedIncome
– global,regional andlocal strategies,across sectors,including highyield, emergingmarket and
currencies, aswell asmoney marketfunds. Inaddition, ourCredit InvestmentsGroup specializesin syndicatedloans,
structured credit and upper-middle-market direct lending.
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Annual Report 2025 |
Our strategy, business model and environment | Our businesses25
ActiveMulti-Asset
–globalandregionalassetallocationandcurrencyinvestmentacrosstherisk / returnspectrum,
including balanced, growth, income, risk-managed and unconstrained strategies, as well as white label solutions.
PartnershipSolutions
–wedrawonourvaluechainacrosstheGrouptoprovidecustomizedfull-servicefiduciary,
investments and proprietary technologysolutions and also collaboratewith other business divisionsto serve the needsof
our clients. Forexample, our SeparatelyManaged Accounts (SMA)Advantage initiative withGlobal Wealth Management
in the US continues to gain momentum and reached a record USD 231bn in invested assets at the end of 2025.
Passive
– wecontinue tobuild onour positionas thelargest Europe-basedmanager ofindexed investmentsand our
expertise in customization. We offer awide range of indexed strategies acrossasset classes, along with exchange-traded
funds (ETFs), pooled funds andsegregated mandates. In 2025 weexpanded our ETF offering withthe launch of a new
cost-efficient
Core
range, as well as our first active ETFs, leveraging our active fixed-income capabilities.
Real Assets (includingreal estate andinfrastructure)
– a comprehensiverange of globaland regional strategies,from core
to value-add and opportunistic.
Tocapture thegrowth opportunityin alternatives, andin atransformational movefor ourclients andour partners,in
2025 we brought together our leading manager selectionfranchises from across Asset Management and Global Wealth
Managementtocreateour
UnifiedGlobalAlternatives(UGA)
business.UGAprovidesanopenarchitectureplatform
offeringclients customizedsolutions acrosshedgefunds, privateequity,private credit,realestate, infrastructureand
multi-alternative investment products,as wellas accessto co-investmentsand secondarymarket opportunities forour
more sophisticatedclients. With acombined USD 330bn ininvested assets, UGAis one ofthe leading limitedpartners
globally.
We supportour clients’ sustainabilityobjectives with awide range ofproducts and solutionsincorporating a varietyof
approaches, including impact- and transition-focused strategies.
We chargemanagement feeson ourfunds andmandates (asa percentageof investedassets) and,to alesser extent,
performance fees on ouractive investment capabilities.Our revenues therefore depend onboth total invested assetsand
the mix between higher fee strategies, such as active mandates, and lower fee passive strategies.
Competition
Our maincompetitors areglobal firmswith wide-rangingcapabilities anddistribution channels,such asAllianceBernstein,
AllianzAssetManagement,Amundi,BlackRock,DWS,FranklinTempleton,Invesco,J.P. MorganAssetManagement,
Morgan Stanley InvestmentManagement, Schroders,State Street GlobalAdvisors and T. RowePrice, as wellas firms with
a specific market or asset-class focus.
Investment Bank
TheInvestmentBankprovidesservicestoinstitutional,corporate,financialsponsorandGlobalWealthManagement
clients, helpingthem raisecapital, investand managerisks, whiletargeting attractiveand sustainablerisk-adjusted returns
fortheGroup’sshareholders.Ourtraditionalstrengthsareinequities,foreignexchange,preciousmetals,research,
advisory andcapital markets,complemented bya focusedrates andcredit platform.We useour data-drivenresearch
and technology capabilities to help clients adapt to evolving market structures and changes in regulatory, technological,
economic and competitive landscapes.
Annual Report 2025 |
Our strategy, business model and environment | Our businesses26
We aim todeliver market-leading solutionsby leveraging ourintellectual capital anddigital platforms, wework closely
with GlobalWealth Management,Personal &Corporate Bankingand AssetManagement tobring thebest ofthe Group’s
capabilities to our clients. We do so while being disciplined about risk, balance sheet deployment and costs.
Our business is regionally diversified, with a presence in more than30 countries. We cover the main investment banking
markets globally and have major financial hubs across four regions: the Americas; Asia Pacific; EMEA; and Switzerland.
Our business
The Investment Bank is composed of two business areas,Global Banking and Global Markets, both supported by Global
Research. Our global coveragemodel utilizes our internationalindustry expertise andproduct capabilities to meetclients’
emerging needs.
OurGlobalBankingbusinessarea,whichconsistsofAdvisoryandGlobalCapitalMarkets,offersabroadrangeof
investmentbankingproductsandservicestoourclients.GlobalBankingadvisesclientsonstrategicbusiness
opportunities, suchas mergers,acquisitions andrelated strategicmatters, andhelps themraise capital,in bothpublic
and private markets, to fund their activities. We positionourselves as trusted advisors via our client coverage andability
to provide accessto the widersuite of UBS’scapabilities. With teamslocated across theAmericas, Asia Pacific,EMEA and
Switzerland regions, our banking coverage offers clients local market expertisecoupled with access to a global network.
GlobalBankingprimarilygeneratesfee-basedrevenuesfromadvisory,origination,dealexecution,financingand
underwriting services provided to clients.
Our GlobalMarkets businesshelps clientsengage withinternational financialmarkets, providingfast, innovativeand
bespoke accessto solutions, frommarket andinsight toolsto trade strategiesand execution.Our capabilitiesare grouped
into three product verticals: Execution Services, Derivatives & Solutions and Financing. Global Marketsenables clients to
buy, sell and financesecurities on capitalmarkets worldwide andto manage theirrisks and liquidity.We distribute, trade,
finance and clear cash equitiesand equity-linked products, aswell as structuring, originatingand distributing new equity
and equity-linked issues. From origination and distribution to managing risk and providing liquidity in foreign exchange,
rates,creditandpreciousmetals,wehelpclientstorealizetheirfinancialgoals.Wegeneraterevenuefromfeesfor
trading services (e.g. execution, market making, clearing and providing liquidity) and interest on investment financing.
OurGlobalResearchbusinessdeliversdata-driveninsightstoclientsacrossmajorfinancialmarketsandsecurities
worldwide. With analystsbased in morethan 20 countriesand coverage ofover 3,800 stocksin 52 markets,we continue
tostrengthenourresearchcapabilities.Ourofferingincludesfundamentalcoverageacrossequities,economicsand
strategy, as wellas market-leading data insightsfrom Quant Research, EvidenceLab and HOLT,which are cornerstones
of the UBSInvestment Bank’sdata intelligence offering.UBS HOLT maintainsa database ofover 20,000 companyprofiles
around theworld, providing clientswith seamless benchmarking,screening and scoringof companies, eliminatingthe
need to sift through extensive global accounting data.
The Investment Bank also offersan array of sustainability-focusedadvice, products, research and events.We help meet
clients’ needs withrespect to environmental,social and governanceconsiderations and sustainablefinance, helping to
reshape businessmodels andinvestment opportunitiesand todevelop sustainablefinance productsand solutions.As
sustainability priorities and other secular themes,such as AI, continue toshape investor preferences, corporate strategy
andactions, weaimtodeliverintegrated advicethatconnectstheseevolvingtrendstoequity stories,financing and
investor engagement.
Our global reach presents a catalyst for continued and future profitable growth. In the Americas, the largest investment
bankingfeepoolglobally,wecontinuetofocusonincreasingmarketshareinourcoreGlobalBankingandGlobal
Markets businesses. InAsia Pacific, weplan to captureopportunities arising fromexpected market internationalization
and growth in Chinaand other marketsand to strengthen ourpresence in the region.In EMEA and Switzerland,we plan
to leverage our strong base and brand recognition to further gain market share.
Our priorityis providinghigh-quality executionand seamlessclient service,through anintegrated, solutions-ledapproach,
with disciplined growth in the advisory and execution businesses, while accelerating our digital transformation. We seek
todevelopnewproductsandsolutionsconsistentwithourcapital-efficientbusinessmodel,typicallyrelatedtonew
technologies or changing market standards.
The InvestmentBank strivesto bethe digitalinvestment bankof thefuture, focusedon deliveringinnovation-led solutions
and efficiencies for our clients.Our digital strategy harnesses technologyto provide access to sourcesof unique, global
liquidity, personalized advice and differentiated content.
Ourambition tobethemostclient-focused, efficientanddata-driveninvestment bankisbeingrealizedthroughthe
simplification of technologyarchitecture, increased speedand quality ofdelivery and theattraction of best-in-classtalent.
As we look forward tothe continued evolution ofour digital capabilities, wewill see increased adoptionof technologies,
such as generative AI, to scale efficiency and provide actionable insights into client portfolios.
›
Refer to “We are investing in our technology to improve the clientexperience and enhance employee productivity” in the “Our
Strategy” section of this report for more information
ubs-20251231p51i0
Annual Report 2025 |
Our strategy, business model and environment | Our businesses27
Our capabilities, core products and services enable us to deliverour strategy to an expanded institutional and corporate
clientbase.Inaddition,wearewellpositionedtoserveGlobalWealthManagement,offeringinvestmentbanking
capabilities,andtofurtherenhanceourconnectionswithwealthmanagementclients.Jointeffortsbetweenthe
Investment Bankand theother businessdivisions (forexample, ourwork withGlobal WealthManagement throughGWM
Solutions coverage) and, externally, strategic partnerships (for example, UBSBB jointly with Banco do Brasil, focusedon
LatinAmerica)continuetobekeystrategicpriorities.PartnershipswithGlobalWealthManagementandAsset
Management enable us to provide clients with broad access to financing, global capital markets and portfolio solutions.
We expectthese initiativesto continueto leadto growthby deliveringglobal productsto eachregion, leveragingour
global connectivity across borders and sharing and strengthening our best client relationships.
Competition
Competing firmsoperate inmany ofour markets,but ourstrategy differentiates us,with ourfocus onselective leadership
in the areas wherewe have chosen to competeand a business model thatleverages talent and technology ratherthan
balance sheet.Ourmaincompetitors aremajor globalinvestment banks,including MorganStanley,Goldman Sachs,
Bank of America, Barclays, Citigroup, BNPParibas, Deutsche Bank, Wells Fargoand JPMorgan Chase. In certainproducts
and regions, we also compete with boutique investment banks and fintech firms.
Non-core and Legacy
The Non-core andLegacy division was formedat the endof the secondquarter of 2023to incorporate selected assets
and liabilities originating fromthe former Credit Suissebusinesses not aligned withour long-term strategic prioritiesor
risk appetite, including associated financialand non-financial assets, operatingexpenses, and funding costs. Asmall part
of the division wasmade up of positions fromUBS’s former Non-core and LegacyPortfolio and some other legacyUBS
assets and liabilities that were assessed as non-strategic in the context of the acquisition of the Credit Suisse Group.
With the aim of exiting its positions over time, thedivision’s portfolio included the following businesses from the former
Credit Suisse Investment Bank:
–
loans primarily related to corporate clients and emerging markets;
–
the residual securitized products businesses;
–
the macro trading business, including rates and foreign exchange;
–
the legacy life-finance business;
–
theequitiesportfolio,includingtheremainingequityswaps,shareback-lendingpositionsandlegacystructured
renewables-linked positions; and
–
the residual credit business.
Since its inception, Non-coreand Legacy has madestrong progress in activelyreducing its portfolio. Inthe final year of
integration,weaimtocontinuetoreduceNon-coreandLegacy’soperatingcosts,withafocusoninfrastructure
simplification.Wealsoexpecttocontinuetowinddownsomeremainingpositionstoachievefurtherreductionsin
financial resource consumption.Incremental costs orlosses may arisein connection withthe reduction ofsuch assets and
liabilities.
›
Refer to the “Integration of Credit Suisse” section of this report for more information
Annual Report 2025 |
Our strategy, business model and environment | Our businesses28
Group functions
OurGroupfunctionsaresupportandcontrolfunctionsthatprovideservicestotheGroup,focusingonoperational
effectiveness, risk mitigation and efficiency. Themajor areas of these functions are Group Services and Group Treasury.
Group Servicesconsists ofGroup Technology,Group Compliance andOperational RiskControl, GroupFinance, Group
Risk Control, GroupHuman Resources andCorporate Services, GroupCorporate Communications andGroup Brand &
Marketing, Group Legal,the Group IntegrationOffice, Group Sustainabilityand Impact,and the ChiefStrategy Office.
The vast majority of these support and control functions arefully aligned with, or deliver shared services to, the business
divisions.
Group Treasury manages balance sheet structural risk (e.g. interest rate, structural foreign exchange and collateralrisks),
as wellas therisks associatedwith ourliquidity, capitaland fundingportfolios. GroupTreasury servesall fivebusiness
divisions, and its risk management is integrated into the Group risk governance framework.
Virtually all costs incurred by the Groupfunctions are allocated to the business divisions, leavinga residual amount that
we refer to as Group Items in our segment reporting in accordance with IFRS Accounting Standards. These include costs
or revenuesrelated tocertain activitiesthat areretained centrally,such asgroup hedgingand owndebt activitiesin Group
Treasury, as they are not directly related to the business divisions, as well as certain other costs that are mainly related to
deferred tax assets.
Most ofour employeesin theGroupfunctions areemployed byUBSBusiness SolutionsAG. Thecostsof theGroup
functions employees inUBS Business SolutionsAG are reflectedas compensation expensein UBS Groupreporting and
as general and administrative expense in UBS AG reporting.
Our environment
Market environment
Global economic developments in 2025
1
The globaleconomy remainedresilient in2025, withgrowth acceleratingto 3.5%from 3.4%in 2024,supported by
heavy investment inartificial intelligence (AI)and healthy demandfrom consumersacross manyof the world’sregions
and markets. Worries raisedearly in theyear over thepotential for aglobal trade conflictfaded as theUS and keytrading
partners agreed deals.
US grossdomestic product(GDP) grewby 2.2%,moderating afterabove averagegrowth in2023 and2024. Capital
spending on AI accounted for about half of US growth forthe year. US consumer spending continued to rise, backed by
increasing real incomes, and in spite of signs of weakness in the labor market.
China’s GDP grew by 5.0%, in line with the 5.0% growth recorded in2024. This was despite weakness in the property
marketandconsumerdemand.Neweconomicdrivers,includinginvestmentinAI,advancedmanufacturingand
renewables, gained momentum.
The Eurozone’s GDP growth picked up from 0.9% in2024 to 1.5% in 2025, as the regionbenefited from an easing of
monetary policy, theimproving health ofthe banking systemand rising demandfor goods. SwissGDP grew by1.2%,
slightly less than 1.4% recorded in 2024. While consumerspending was solid and the Swiss National Bank (theSNB) cut
interest rates to zero, worries over traderelations with the US weighed on business confidencethroughout most of the
year, until a trade deal was agreed in November 2025.
Inflation acrossmost majoreconomies continuedto normalize.Consumer pricesglobally increasedby 3.3%in 2025,
compared with 5.7% in 2024. The ebbing of inflationarypressure enabled many large central banks to cutinterest rates
further. The European Central Bank(the ECB) lowered its depositrate to 2.0%, down from3.0% at the start ofthe year,
as inflation forthe Eurozone movedcloser to its2% target. USinflation remained abovethe Federal Reserve’s2% target,
averaging 2.7% for theyear. But slowing inflation(down from 3.0% in2024) and a cooling labormarket led the Federal
Reserve to reduce interest rates in each of its last three policy meetings in 2025.
Amid interestrate cutsand solideconomic growth,most majorasset classesdelivered stronggains in2025 acrossregions.
Global stocks(the MSCIAll CountryWorld index)delivered athird straightyear ofgains inexcess of20%. Inthe US,
enthusiasm overthe outlookfor AIcontributed tobroader gains,with theS&P 500 indexdelivering atotal returnof
17.9%, while the equal-weighted S&P 500index, which dilutes the impactof large technology stocks, gained11.4%. In
the Eurozone, theMSCI EMU index ofstocks returned 24.7%,helped by expectationsof a boostto demand afterthe
German governmentapproved afiscal expansion.In AsiaPacific, theMSCI Chinaindex gained30.7% andthe MSCI
Japan index 24.7%.
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Annual Report 2025 |
Our strategy, business model and environment | Our environment29
The US dollarindex (DXY), whichtracks the USdollar against sixmajor peer currencies,decreased by 9.4%,its worst year
since 2017. The depreciation of the US dollar was partly drivenby the erosion of the US interest rate advantage over its
peers, as the Federal Reserve resumed cutting interest rates later in the year after other large central banks were near or
at the end of their easing cycles.
The combination offalling inflation andcentral bank interestrate reductions contributedto the bestannual returns in
global fixed income since 2020, basedon Bloomberg’s Global Bond Aggregate index.Finally, gold delivered a return of
63%inUS-dollarterms,itslargestgainsince1979,liftedbystrongdemandasmanycentralbanksdiversifiedtheir
reserves into gold, and strong investment demand supported the price.
Economic and market outlook for 2026
1
Weexpect theeconomic factorsthat supportedglobal growthin 2025to persistthrough2026, includingcontinued
investment in AI and generally healthy consumer spending across majorregions.Although most major central banks are
unlikely to cut interest rates further,we expect low interest rates to persist throughout the year,providing an economic
tailwind. Fiscal policy also appears set to stimulate growth in several leading economies, including the US, Germany and
Japan. Geopolitical developments have the potential to raise risk premiums, and higher energy prices, if sustained, pose
a potential downside risk tothe outlook. While uncertainty issignificant, our base case viewis that energy priceswill not
stay high enough for long enoughto materially weaken the globaleconomy. Our base case projection is for only a slight
slowing of global GDP growth in 2026, to a still healthy 3.3%.
We expectUS GDPto growby 2.6%,accelerating from2.2% in2025, withfiscal stimulusand thelagged effectof
interest rate cutsoffsetting the dragfrom a weakerlabor market. Consumerdemand should continueto be underpinned
by solid salary growth and healthy household balance sheets among middle- and upper-income class groups.
Forthe Eurozone,we expectGDP growthofjust over1%in 2026,down from1.5% in2025. Consumersentiment
remains cautious, highergas prices couldpresent a headwind,and we expectgrowth in certainlocal markets, suchas
Spain, todecrease tomore normallevels afterstrong growthin 2025.At thesame time,we expectGermany’s fiscal
stimulus andinfrastructure spendingto providea boost in2026. Ahealthier bankingsystem isnow betterable tosupport
lending, and weexpect an ongoingrecovery in demandfor goods, supportingthe manufacturing sectorin the Eurozone.
WeforecastSwissGDPgrowthof1.3%. AlthoughUStariffsandastrongSwissfrancrepresent headwinds,growth
should pick up in the second half of the year on the back of a rebound in the German economy.
We expect China to deliver GDP growthof 4.5%, with its five-year plan prioritizingtechnology innovation and industrial
upgrades. Therivalry withthe UShas thepotential tocreate headwinds,but China’songoing focuson domesticupgrades
and supply-chain diversification is expected to help support economic stability, despite external uncertainty.
Regarding inflation, provided energy price rises are not sustained, we expect the global average toslow further to 2.9%
in 2026. In the Eurozone, inflationcould fall below the central bank’starget, to average 1.8%, based onour forecasts.
We see consumer pricesin Switzerland rising byjust 0.3%, after 0.2%in 2025, at thebottom end of theSNB’s target
rate of between 0% and 2%. However, after interest rate cuts in 2024 and 2025, we are not forecasting further easing
from either the ECB or the SNB,although the SNB has signaled its willingnessto intervene in currency markets incase of
excess Swissfranc strength.We expectprices torise by2.7% inthe US,reflecting anunchanged inflationrate from
2025. Although this isabove the Federal Reserve’sgoal, we expect theUS central bank torespond to a subduedlabor
market by cutting rates twice in 2026.
A combinationofadecent economicbackdrop andcontinued optimismabout thepotential ofAI toboost earnings
should lead toanother year ofgains for globalstocks, in ourview, albeit withlikely volatility drivenby concerns about
geopolitical developments, AIcompetition and creditrisk. We expectearnings per sharegrowth for theMSCI All Country
World index ofalmost 12% in2026 to supportmarket upside, despitehistorically elevated valuations.We also expect
another positiveyear forfixed income,given solidheadline yieldsand thepotential formajor benchmarkyields tofall
should inflation slow and central bank rates remain low.
1
Based on the following sources: Haver Analytics, CEIC Data, Office for National Statistics (UK) and UBS.
Annual Report 2025 |
Our strategy, business model and environment | Our environment30
Industry trends
Technological transformation,product innovation and evolving clientexpectations continue to emerge askey drivers of
change today, increasingly affectingthe competitive landscape, as wellas our offering, service modelsand operations. In
parallel,thestateofourindustrycontinuestobemateriallydrivenbyregulatory,financial,macroeconomicand
geopolitical dynamics.
Emerging technologies
The continuousadoption ofemerging technologiesis acceleratingand transformingour industry.Artificial intelligence
(AI) remains akey driver inenhancing client serviceand employee efficiency, enablingnew business opportunities, and
transforming business models.
Generative AI is expanding AI’s reach across organizations, leading to newuse cases and driving productivity. Agentic AI
is gaining traction, creating the potential to reduce cognitive load and unlock speed, scaleand hyper-personalization by
enabling systems to act autonomously toward defined objectives. As these emerging technologies advance, so does the
associated risk landscape, making robust AI governance, risk control and data protection critical.
Across the industry, thefocus is on responsible adoptionof AI, ensuring robust riskand regulatory compliance, aswell as
ethical and sustainabilityrequirements. High-quality, well-governeddata remains a fundamentalrequirement for thesafe
and effectiveuse ofAI, ensuringthat advancedmodels aretrained onaccurate, trustedinformation andcan operate
reliablyatscale.AlthoughAIisapowerfultool,itcannotperformwithouthumaninteraction.Banksmustfoster
environments where humans and AI work together, attract top engineering talent and invest in their workforce.
Digital assets and distributedledger technology are drivinga structural transformationacross financial markets,gradually
reshaping howmoney isissued, assetsare settledand trustis established.This shifthas thepotential tounlock meaningful
economicgains: near-instantsettlement reducescounterparty andreconciliation risk;tokenization improvescollateral
mobility, real-time valuationand balance sheetefficiency; programmability embedsbusiness rules directlyinto assets; and
digital rails expand global reach.
Asaglobalplayer,UBSisinvestinginemergingtechnologiestoenhancetheclientandemployeeexperience,while
maintaining its high standards of security and compliance.
›
Refer to the “Our strategy” section of this report for more information about our technologystrategy
Generative AI in wealth management
AI has thepotential to transformthe entire wealthmanagement value chain,from internal processefficiencies to how
we interactwith ourclients. Webelieve generativeAI willcontinue toempower advisorsto delivermore personalized
advice and efficient solutions.
1
The most compelling opportunities liein tools to supportclient acquisition, onboarding,
servicingandadvisingourclients,aswellasininternalsupportfunctions.Forexample,inclientprospecting,early
adopters of generative AI have reported substantial benefits, multiplying their leads and doubling conversion rates.
2
At UBS, we enableclients and advisors to harnessthe power of AIthrough a robust operational backbonedesigned to
deploy and scale AI capabilities across our Global Wealth Management business.
Sustainable finance
In2025,sustainability-orientedpublicmarketinvestmentfundsandexchange-tradedfundsrecordedanewhighof
USD 3.9trn
3
as ofthe endof December2025, supportedby strongmarket performanceover thecourse ofthe year.
Europe remains byfar the largestmarket with an86% market share.Sustainability-oriented funds accounted for12%
of allglobal private marketsfundraising in 2025,reaching final-close sizeof USD 167bn andexceeding that of2024.
4
Demand was highest for energy-transition-relatedinfrastructure funds. Multiple industry surveys
5
conducted throughout
theyearconsistentlyconfirmedsustainedinvestorinterestandacommitmenttosustainableinvesting.Intheglobal
financing markets, the total issuance volumes of sustainable bonds grew 5% year on year (USD 849bn in 2025
6
). Green
bond issuance continued to dominate, accountingfor 59% of total sustainable financebond issuance in 2025.
6
A new
label, the European Green Bond, debuted in the labeled market last year.
Annual Report 2025 |
Our strategy, business model and environment | Our environment31
Finance has an important roleto play as companies andindividuals consider how best toapproach the global economy’s
transition toa moresustainable world.Banks andinvestment managerscan supportthis transitionby effectivelyand
efficiently allocating capital and helping to mobilize investment and financing.
Sustainable finance and our commercialsustainability related product and servicesoffering are a central partof our firm-
wide sustainabilityand impactstrategy. Ourbusiness divisionsare continuingto furtherdevelop thefirm’s sustainable
finance capabilitiesin linewith evolvingclient priorities.We supportour corporate,institutional andprivate clientsin
managing the risks and capturing the opportunities presented by the transition to a low-carbon economy.
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting”at
ubs.com/investors
, for more
information about sustainability matters
›
Refer to “Regulatory trends”in the “Regulation and supervision” section of this report for more informationabout regulatory
policy trends in sustainable finance
›
Refer to the “Regulatory and legal developments”section of this report for more information about developments related to
environmental, social and governance matters
Client expectations
Technological advancements continue toreshape client expectations towardbanks. Clients increasingly expecttailored,
seamless,on-timesolutions,whiletradetensionsandpolicyuncertaintyhaveincreaseddemandforcross-border
capabilities. Convenience and smooth userexperience and interfaces are essential.We expect the growing adoptionof
AI and digital assets to expeditethis change in expectations: the financial servicessector needs to continue evolving, as
clients measure us against new benchmarks.
Recent geopolitical, macroeconomic and societal shifts have re-emphasized values such as security, trust and stability, as
wellastheneedtohaveacredibleplantowardasustainablefuture,leadingtoanincreasedfocusoninvestment,
financing and advisory products and services that fit clients’ own sustainability preferences and ambitions.
Consolidation
The financialservices sectoris stillhighly fragmented.We expect furtherconsolidation, withthe keydrivers beingongoing
marginpressure,apushforcostefficienciesandincreasingscaleadvantagesresultingfromtechnologycostsand
regulatory requirements.Participants in thefinancial services sectorcontinue to seekincreased exposureand access to
regionswithattractivegrowthprofiles,suchasAsiaandotheremergingmarkets,throughlocalacquisitionsor
partnerships, as wellas acquiring newcapabilities addressingchanges in marketdynamics and overallclient demands.
The increasedfocus oncore capabilitiesand geographicalfootprint, aswell asthe ongoingsimplification ofbusiness
models to reduce operational andcompliance risks, is likely todrive further disposals of non-core businessesand assets
across the industry. While banks already faceincreasing challenges from digitalizationneeds and intensifiedcompetition,
uncertain macroeconomic and geopolitical conditions across major economies might create further pressure.
New competitors
Our competitiveenvironment isevolving. Inaddition totraditional competitorsin theasset-gathering businesses,new
entrantsaretargetingselectedpartsofthevaluechain,takingadvantageofmoderntechnologieswithoutlegacy
limitations andalighterregulatoryburdentochallengetraditional banks’operatingmodels.In addition,weobserve
traditional playerspursuing partnershipsor inorganicopportunities withemerging competitors,including fintechfirms
and non-bank financial institutions, to acquire technology capabilities or accelerate client acquisition.
Overthelongterm,webelieveemergingandestablishedtechnology companiesmayalsoposeathreattofinancial
services firms, given their strongclient franchises and access toclient data, if they decideto broaden the scope oftheir
services. While fintech firms continue to gainmomentum, we do not expect a material disruptionto our asset-gathering
businesses as longas we innovate.In addition, theirlong-term success will alsodepend on their abilityto navigate our
regulatory landscape, buildcustomer trust andmaintain innovation. Newcompetitors are notemerging in isolation;their
rise is closely intertwined with shiftingclient expectations and the advancing applicationof new technologies, such as AI
and digital assets.These forces aresimultaneously reinforcing oneanother, accelerating thepace of changeacross the
industry. As competitionintensifies, the wayvalue is deliveredand perceived isbeing reshaped, andwe need toadapt
accordingly.
Annual Report 2025 |
Our strategy, business model and environment | Our environment32
Growth of private markets
Overthepastdecade,private-marketproductshavegraduallyevolvedfromnichealternatives,accessibleonlyto
institutional investors andultra high networth individuals (UHNWIs),to reach a broaderinvestor base. In2025, this trend
accelerated, with highnet worth individuals(HNWIs), affluent andretail clients, andretirement planinvestors entering
the private market space or increasing their allocation, supported by regulatory changes reducing minimum investments
andimprovingliquidity.Novelfundstructuresofferingcontinuousaccess,coupledwithgreaterperformance
transparency,enable investors to break downthe silos between public and privatemarkets, in favor of atotal-portfolio
approach that blendspublic- and private-marketassets in asingle fund ormodel portfolio. Inthis context, weobserve
private-market asset managers increasingly partnering with traditional asset managers andbanks to jointly develop and
distribute new products specifically targetedat non-institutional investors. At thesame time, this expansion alsorequires
an understanding,assessment andmanagement ofrelevant risks,as privateassets typicallyinvolve lowerliquidity and
highervaluationcomplexitycomparedwithpublicsecurities.Asclientdemandforprivateassetsexpandsovertime,
banks’ abilityto thrivewill dependon theirability tonavigate theoperational, regulatoryand advisorycomplexities of
private markets.
We arewell positionedto serveclient needsin thisspace. Forexample, webrought togetherourmanager selection
franchises across AssetManagement and GlobalWealth Management, creatingour Unified GlobalAlternatives business,
one ofthe leadinglimited partnersglobally. Inaddition, weentered intoa strategicpartnership withGeneral Atlantic
Credit to enhance clients’ and borrowers’ access to a broader set of direct lending and other credit products.
Wealth development
General overview of wealth development
7
Personalfinancialassets,whichincludecash,deposits,securities,investmentfundunits,lifeinsurancepoliciesand
retirement plan capital awards, continued to grow,by around 7% in 2025, to anestimated USD 269trn as of theend of
2025. Absolutegains wereespecially strongin AsiaPacific, wherepersonal financialassets grewby USD 8trn,or 9%,
followed by North America, with a growth of USD 6trn,or 6%. EMEA saw growth of USD 3trn,or 5%. Looking ahead,
North America is projected to lead the expansion of personal financial wealth, withan expected growth rate of 7% per
annumuntil2030,followedbyAsiaPacific(6%)andEMEA(5%).Onaverage,globalpersonalfinancialassetsare
expected to grow at 6% per year until 2030.
North Americaremains thelargest personalfinancial wealthpool (with42% ofglobal personalfinancial wealth),followed
by Asia Pacific (35%) and EMEA (21%).
Looking at ourinvested assets asof the endof 2025, about halfwere booked inthe Americas (48%),with the remaining
half split between EMEA (34%) and Asia Pacific (17%).
Wealth segment view
7
Personal financial asset growth across the HNWI and UHNWI segments in 2025 was between 7.4% (for individuals with
personal financial assets between USD 1m andUSD 5m) and 8.8% (for theUHNWI client segment, i.e. individuals with
personal financial assets in excess of USD 30m).
TheclientsegmentwithpersonalfinancialassetsbetweenUSD 1mandUSD 5mcontinuestobethelargestHNWI
segment,withUSD 59trn,or68%ofglobalHNWIpersonalfinancialassets,withtheremainderofsuchassets(i.e.
USD 27trn, or 32%) with clients whose assets are between USD 5m and USD 30m.
Expected growth of personal financial assets across the HNWI and UHNWIsegments is very similar,with around 7% per
year until 2030. Looking ahead, we are building on our strong position in the UHNWI segment, while actively capturing
growth opportunities in the HNWI segment.
Wealth transfer
We expect a total global wealth transfer of over USD 83trn within the next 20 to 25 years, of which over USD74trn will
bebetweengenerations.MorethanUSD 50trninwealthtransfersisexpectedintheAmericas, followedbyroughly
USD 20trn inEMEA andUSD 10trn inAsia Pacific.
8
Recent surveysindicate thatover 80%of next-generationHNWIs
plan to change financial advisorswithin one to two yearsof receiving an inheritance. Theprimary reasons cited for this
shift are insufficient digital service offerings (46% of respondents) and limitedaccess to alternative investments (33%).
9
These findingshighlight theimportance ofwealth managersengaging earlywith thenext generationand proactively
addressingevolvingclient needsthroughout theintergenerational wealthtransferprocess. UBShasacomprehensive
globaloffering fromfamilyadvisorythroughbusiness successionand wealthplanning tophilanthropy, addressingall
aspects of the client situation and catering for a wide rangeof client and family needs related to succession. In addition,
werenewedourlong-standingpartnershipwiththeYoungInvestorsOrganization,theindustry’sfirstandlargest
communityofultrahighnetworthpeers(1,900+membersfrom75+countries),offeringtailor-madedigital andin-
person programs to develop members’ skills and give access to top leaders from business, government and academia.
Annual Report 2025 |
Our strategy, business model and environment | Our environment33
Female investors
10
Theglobalwealthmanagementindustryisseeingasignificantshiftaswomenincreasinglyaccumulateandcontrol
greater proportions of wealth. This trend is drivenby rising female participation in the workforce, entrepreneurship and
intergenerational wealth transfers. In 2025,there were 374female billionaires, with theiraverage wealth increasing by
8% to USD 5.2bnfrom 2024 to2025, primarily drivenby inheritance. Froma wealth perspective,female billionaires have
grown their combined assets to USD 1.9trn.
We havehad adedicated advisoryapproach tailoredto theneeds andgoals offemale investorssince 2017.We have
developed the Women’s Wealth Academyto help women acquire ordeepen their financial know-how. Inits fourth year,
the UBS FemaleFounder Project continuedto address thefemale funding gapand help early-stagewomen entrepreneurs
build networks and investor readiness, supporting 212 female founders across 26 countries in 2025. UBS was named as
the Best Private Bank for Wealthy Women at the
PWM
/
The Banker
awards in 2025.
Entrepreneurs
Self-made entrepreneurs area growing client groupwithin the UHNWI segment. OurGlobal Entrepreneur 2025 survey
found that55% ofentrepreneursconsider expertguidance fromtheir wealthadvisor tobe essentialwhen sellingor
exiting theirbusiness.
11
Wearecommitted tosupporting entrepreneursthroughdedicated communityplatforms and
strategic partnerships,giving themdirect accessto valuablepartners andresources. Additionally, we elevatedour thought
leadership efforts in 2025 by publishing our first Global Entrepreneur Report, whichprovides fresh insights into how the
world’s top entrepreneurs manage their private wealth.
WeofferentrepreneursexclusiveaccesstoourGrowthEntrepreneurNetworkandourIndustryLeaderNetwork,
facilitating meaningful connections among peers and industry veterans.
Trends in the asset management industry
Theassetmanagementindustrymaintainedstrongmomentumin2025,partlysupportedbyaconstructivemacro-
economic environment. Industry trends remain intact: clients continue to seek passive and alternative asset classes, with
growth in alternatives increasingly skewed toward the largest playersand exchange-traded funds (ETFs) that continueto
deliver record netnew money growth. Structuralheadwinds around asset managers’profit pools remain,as a resultof
rising costpressure coupled withcontinued margincompression, forcing assetmanagers torethink their operatingmodel
and toincreasingly leveragetechnology andAI asdifferentiators.These continuedstructural dynamicsand disruptors
point to signs of accelerating consolidation across the industry.
Passive investing continues to gain share
12,13
Passive investingcontinued tobe importantfor clients, reinforcedby fee sensitivity, thecontinued riseof model portfolios
andthegrowingclientpreferencefortransparentbuildingblocks.Aspassiveinvestingexpands,differentiation
increasinglyshiftsawayfrom“productonly”towardportfoliodesign,outcomes(income,realassets,anddownside
management) and advice-enabled solutions.
We havea longhistory ofsuccessfully managingindexed andrules-driven strategiesacross assetclasses. Ourflexible
investment platform enables us to create customized solutions to meet clients’ objectives.
ETFs are evolving into a primary distribution format
12,14
ETFs haveextended theirrole fromlow-cost indexaccess toa mainstreamwrapper foroutcomes, targetedexposures
(e.g. market factors,sectors or assetclasses) and, increasingly,active management. Multiplemarket trackers andindustry
commentariespointedtorecord-settingETFinflowsin2025andcontinuedexpansioninboththeequityandfixed-
income categories.
ActiveETFshavemovedfurtherintothecenterofthecompetitivelandscape,supportedbyanincreaseinproduct
launches and the adoption of ETFs within advisory channels and model portfolios.
We launchedthe UBSCore ETFsrange inthe firsthalf of2025, enablinginvestors tobuild cost-efficient,high-quality
foundations portfolios, as well as our first active ETFs.
1
AI@GWM, internal communication by Global Wealth Management.
2
BCG’s Global Wealth Report 2025.
3
Morningstar.
4
Preqin.
5
KPMG, BPN, Morgan Stanley, Bloomberg, UBS.
6
LSEG.
7
McKinsey Global Wealth Pools.
8
UBS Global Wealth Report 2025.
9
Capgemini Research Institute – World Report Series 2025: Wealth Management.
10
UBS Billionaire Ambitions Report 2025.
11
UBS Global Entrepreneur Report 2025.
12
BCG Global Asset Management Report 2025.
13
Investment Company Factbook 2025.
14
ETF book 2025.
Annual Report 2025 |
Our strategy, business model and environment | Our stakeholders34
Our stakeholders
Clients
Our clientsareat theheart ofour business.Wearecommitted toprovidingexcellent clientservice andbuilding and
sustaining long-termrelationships basedon mutualtrust, integrityand respect.Understanding ourclients’ needsand
expectations enables us to best serve their interests and to create value for them.
Our clients and what matters most to them
In Global WealthManagement, we arefocused on servingthe needs ofboth high networth and ultrahigh net worth
individuals andselected institutionalclients aroundthe worldthrough trustedrelationships withour advisorsand financial
intermediaries. Ourdistinctive approachto wealthmanagement,with cross-divisionalofferings, abroad arrayof solutions
and ourglobal network,is underpinnedby guidancefrom ourChief InvestmentOffice. During2025, therapidly changing
market,influencedbyglobalgeopoliticalshifts,themacroeconomiclandscapeandartificialintelligence(AI)-driven
transformation,prompted changesin ourclients’ needs.Our focuson offeringtailored advice,expertise andsolutions
helped our clients navigate this uncertainty and was bolstered by key developments within our business. This includeda
numberoftargetedinvestmentsinourAmericaswealthmanagementbusiness,designedtoenhanceourmulti-
disciplinary coverage model for ultra high net worth clients and strengthen how we deliverfor high net worth and core
affluent clients. With trillions of USdollars of wealth expected tobe passed from onegeneration to the next andclient
migration trends spanningthe next two decades,we have alsoexpanded our Strategic Clientsunit to includea Global
Connectivitymandatethatfocusesonenablingmulti-jurisdictionalaccess,partneringwithclientstotransferwealth
across generations and leveraging our global network to connect clients seamlessly across markets.
Personal &Corporate Bankingserves morethan one-thirdof Swisshouseholds andaround 200,000corporate clients.
We are theleading universal bankin Switzerland, supportingour clients viaour credit offeringand global capabilitiesand
footprint.WeareleveragingthestrengthofthemergedSwissbusinessestobroadenourservicesandtopromote
innovation to our clients.
In Asset Management, we manage relationships with institutionalclients (including sovereign institutions, central banks,
pension funds and insurers), wholesale intermediaries and Global Wealth Management and its clients. By building long-
term, personalized relationshipswith our clients,we aim toearn their trustand understand theirneeds. In 2025,their
key concerns centered aroundgeopolitical risk and theneed for diversification acrossasset classes and geographies,as
well asa continuedsearch foryield. Ourglobal scaleand thebreadth ofour investmentoffering –from traditionalto
alternatives, from active to passive – mean we can build the right solutions to meet our clients’ detailed needs.
The InvestmentBank providescorporate, institutional,financial sponsorand GlobalWealth Managementclients with
expert advice, financial solutions, execution and access to the world’s capital markets. Our business model is specifically
built around our clients and their needs, and to facilitate increased connectivity with our wealth management franchise.
Engaging with our clients
Ourclients’preferredcommunicationchannelscontinuallyevolve,andwestrivetoengagewiththeminthemost
convenient way.We usea varietyof channels,in particulardigital channelsand regularclient relationshipand service
meetings, as well as various corporate road shows and dedicated events, with a mix of hybrid and in-person events.
Global WealthManagement engageswith clientsthrough abroad rangeof forumsand channels,from personalized
private briefings with subjectmatter experts to segment-specificvirtual and in-person eventsand large-scale initiatives.
Through marketing and mediacampaigns, events, advertising,publications and digital-onlysolutions, we helpedto drive
a greater awareness ofthe firm among prospectiveclients and reinforced trust-basedrelationships between advisors and
clients. We have continuedto deliver capabilitiesto clients, for examplethrough digitally enablede-banking and advisory
tools,whilealsobringingthebestofUBStoourclientsviaunitssuchasUnifiedGlobalAlternatives, UnifiedGlobal
Banking and Unified Global Markets. We have also continued to leverage AI topositively impact our business and serve
ourclientsmoreefficiently.Examplesinclude
STAATInsights
,whichassistedourUSfinancialadvisorsintheirclient
interactionsthroughthedeliveryofover20millioninsightsin2025,andourAI-poweredchatbots,availableacross
regions. Webelieve AIwill continueto enablemore personalizedadvice andsolutions morequickly, ensuringa more
efficientexperienceforourclientsaroundtheglobe.Itdoesnotreplacetrustorhumaninteraction,whicharethe
cornerstones of our business.
Personal & Corporate Banking engages with clients via various means of communication,including regular client events
(leveraging a numberof formats, suchas webcasts andin-person, virtual orhybrid events), aswell as sustainingmany
events formerlyledbyCredit Suisse.In 2025,we furtherenhanced ourdigital engagementstrategies toreach more
clients andstrengthen relationshipswith existingones. Weutilize variouschannels, includingsocial media,online displays,
search engines and helplines, as well as our branch network.
Annual Report 2025 |
Our strategy, business model and environment | Our stakeholders35
In Asset Management, we use various channels to bring our clients the ideas, understanding and clarity to support their
investmentdecisions.Ourregularinvestorpublicationsprovidethematicperspectivesandactionableinsights,
supplemented by our globalprogram of events, whichincludes our annual
The Red Thread
market outlook road showin
key internationallocations, aswell asour flagship
UBS ReserveManagement Seminar(RMS)
in Switzerland
and
Sovereign
Investment Circle
in Singapore
.
These eventsbring togetherinstitutional investorsto debaterelevant topicsand share
best practices, whilethe annual
RMS
survey provides anauthoritative insight intocentral bank,sovereign and investor
sentiment andtrends. Wealso continuedto hosta broadrange ofhybrid andonline eventsto helpour clientsbetter
understandmarketchallengesandopportunities, aswellasourongoingengagementthroughoursocialmediaand
digital platforms.
The Investment Bank hosted more than 240 conferences globally in 2025, providing clients with access to corporations,
experts,researchandcapitalintroductions.Theeventscoveredadiverserangeoftopics,includingmacroeconomic,
geopolitical, technologyand AI,and sector-and region-specificthemes, inaddition toregulatory, productand market
trends.Morethan50,000clientstookpartinsucheventsovertheyear.Weleverageourintellectualcapitaland
relationships anduse ourexecution capabilities,differentiated researchcontent, bespokesolutions, clientfranchise model
and global platform to expand coverage across a broad set of clients.
UBS Live Desk
,
built within the
UBS Neo
platform,
providesclientswithastreamoffast-pacedcommentaryfromUBStraders.The
UBS AnalyticalResearchCommunity
(UBS-ARC)
is aproprietary, interconnectedresearch networkof industryleaders, subjectmatter specialists,executives,
academics and analysts in the Americas region.
Investors
We aimto drivesustainable,long-termvaluecreationfor ourinvestorsby executingon ourstrategy, growthand integration
plans, whilemaintainingrisk and costdiscipline,and deliveringattractiveshareholderreturns throughthe cycle.
Investor base
Our investor baseis well diversified.A substantial proportionof our institutionalshareholders arebased in theUS, the
UK and Switzerland.
›
Refer to the “Corporate governance” section of this report for more information about disclosedshareholdings
Our Investor Relations function is the primary point of contact between the firm and our investors
OurseniormanagementandtheInvestorRelationsfunctionregularlyinteractwithinstitutionalinvestors,financial
analysts, credit rating agencies and othermarket participants. Clear,transparent and relevant disclosures,supported by
regular directinteractions with existingand prospective investors,form the basisfor our communications.The Investor
RelationsfunctionregularlyrelaystheviewsandfeedbackonUBSfrominstitutionalinvestorsandothermarket
participants to our senior management.
TheInvestorRelationsand CorporateResponsibility functionsworktogetherandinteractwithinvestorsinterested in
sustainability topics relevant to UBS and the wider society.
›
Refer to the first part of the “Corporate governance” section of this report and “Information policy” in that section formore
information
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more
information
ubs-20251231p60i0
Annual Report 2025 |
Our strategy, business model and environment | Our stakeholders36
Employees
We seek tobe a world-classemployer for talentedindividuals across allour markets anda place wherepeople can unlock
their full potential. We therefore invest in measures to strengthen our culture and to provide a framework for employee
growth and well-being as part of our overarching people-management approach.
The infographicabove showsthat on31 December 2025UBS had105,236 employeesby headcount(internal personnel).
On that date, 62,205 or 59% ofour employee workforce were male and 42,958or 41% female, 18% under the ageof
30, 60% aged between 30and 50, and 22% over 50.Switzerland was where 33% ofour workforce were located, with
23% in the Americas, 24% in Asia Pacific and 20% in EMEA.Our employees come from 51 countries and jurisdictions,
hold 155nationalities, speak152 languages,and havean averageof 9years ofservice. Alldata wascalculated asof
31 December 2025on aheadcount basisof 105,236internal employeesonly (103,177FTE). Thenumber ofexternal
staffasof31 December2025wasapproximately16,412(workforcecount).Allquantitativeheadcount-related
disclosures includeall UBSemployees exceptthe employeesin theSavoy HotelBaur enVille AG,Ausbildungszentrum
SchlossWolfsbergAG,FidesandCard
Centersubsidiaries.Genderdataisself-reportedinHRsystemsanddoesnot
include those who havechosen not to discloseas a male orfemale employee. Therefore,gender-specific numbers donot
match the overall total.
The three keys and our corporate culture
Our culture, grounded in our three keys to success (our Pillars, Principles and Behaviors), guides how we work together,
supports our business decisions and steers our people management approach.
Following the acquisition of theCredit Suisse Group in 2023,we continued to embed ourculture across our combined
organization in 2025, to ensureit fully reflects our valuesand supports our strategy. Ourcultural integration efforts were
guided by a dedicatedCulture Integration Forum, whichwas instrumental in steeringthe firm’s cultural alignment;the
CorporateCultureandResponsibilityCommitteeoftheBoardofDirectorsmaintainedoversightbyreviewingand
monitoring activities across the Group related to corporate culture.
Our three keys tosuccess were amplified throughinitiatives such as ourglobal peer-to-peer recognition program,
Kudos
,
and through our
One UBS
referrals and ideasprogram, formerly knownas our
Group Franchise Awards
. The
One UBS
program rewardscross-divisional businesscollaboration andrecognizes employeesfor sharinginnovation orsimplification
ideas. Additionally, internal culture ambassadors played an active role in embedding our culture across the firm.
Throughout the year, globaltraining programs, such as
Crafting our Future
, which was aseries of interactive in-person
sessions sponsoredby theGroup ExecutiveBoard (theGEB), helpedalign managersat alllevels ofthe organizationaround
our strategy and culture and equip them to contribute to our future growth.
›
Refer to
ubs.com/global/en/our-firm/our-culture.html
for details about our three keys to success
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting”at
ubs.com/investors
, for more
information
Annual Report 2025 |
Our strategy, business model and environment | Our stakeholders37
Hiring, developing and retaining talent
We hired atotal of8,024 externalcandidates,including graduatesand apprentices,across theGroup in2025. Weactively
promote multi-year apprenticeship programs in Switzerland and the UK, alongwith summer internship programs in the
US, EMEA, AsiaPacific andSwitzerland. A totalof 2,117junior talents joinedone ofour variousfirm-wide internship,
graduate and apprenticeship programs.
›
Refer to
ubs.com/global/en/careers/awards.html
for employer ratings and recognitions
Personnel by region
As of
% change from
Full-time equivalents
31.12.25
31.12.24
31.12.23
31.12.24
Americas
24,016
26,360
27,638
(9)
of which: US
22,353
24,651
26,024
(9)
Asia Pacific
25,660
26,179
27,638
(2)
Europe, Middle East and Africa (excluding Switzerland)
20,285
21,927
22,686
(7)
of which: UK
7,889
8,685
8,970
(9)
of which: rest of Europe (excluding Switzerland)
11,826
12,656
13,085
(7)
of which: Middle East and Africa
570
586
631
(3)
Switzerland
33,216
34,182
34,880
(3)
Total
103,177
108,648
112,842
(5)
Talent management and development
In 2025,59.4% (2024:52.6%) ofall eligibleroleswerefilled byinternal candidates,reflectingour strongcultureof
internal mobilityand commitmentto employeedevelopment. Welaunched the
UBS MyCareer
talent hubin 2025to
connect employees withinternal jobs, mentoring,rotations andlearning opportunities andto facilitate targetedtalent
management. Line managers are expected to play an active role in supporting both individual development and internal
career progression.
Our Group-wide talent offering is supplemented by programs inthe business divisions, functions, and regions. Their aim
istocreateacultureofcross-divisionalandinternationalmobility,developingversatileleadersatalllevelsofthe
organization. Centralto thisapproach isan annualtalent andsuccession reviewto identifyfuture leaders,ensure business
continuity and proactively manage employee development.
Internaltrainingisdeliveredviaour
UBSUniversity
platform.Ourofferingincludesclientadvisorcertificationand
regulatory,business and line manager training, along with modules on culture, sustainable finance, artificial intelligence
(AI),dataliteracy,languagelearning,well-beingandothertopics.Inadditiontointernal training,wecontinuedour
partnershipwithaleadingexternalproviderin2025toofferemployeesaccesstothousandsofadditionallearning
opportunities. In 2025, permanent employees completed morethan 2.9 million learning activities (including mandatory
training), equating to an average of 22.9 training hours per employee.
Performance management
Our performancemanagement approach(
MyImpact
) reflectsour strategyand supportsour high-performance culture.
Performance and behavior objectives help the firm assessboth what an employee accomplishes and how our
Behaviors
(accountabilitywithintegrity,collaborationandinnovation)aredemonstrated.Regularcheck-ins,alongwithan
embeddedfeedbacktool,enableemployeestogiveandreceivereal-timefeedbackthroughouttheyear,supporting
continuous improvement.Although each linemanager retainsthe decision andownership of theperformance review,
they are supported by AI-enabled tools, including a summarization ofthe employee’s feedback, to support more holistic
and complete evaluations.
Fair and equitable pay
We pay forperformance,and we takepay equity seriously. Across allour locations, weapply the samefair pay standards,
reinforced by annual reviews ofour approach and policiesin line with establishedequal pay methodologies.In 2025, our
statistical pay gapanalyses reaffirmedthat paydifferences betweenmale andfemale employees insimilar rolesacross
our core financialhubs remained below1%, a difference consistentwith that for2024. If wefind any gapsnot explained
by business orby appropriate employee factors,such as role, responsibility, experience, performanceor location, welook
at the root causes and address them.
We also aim to ensure that all employees are paid at least a living wage. We regularly assess employees’ salaries against
local living wages,using benchmarks definedby the FairWage Network. Ourlatest review showedthat all employees’
salaries were at or above the respective benchmarks.
›
Refer to the “Compensation” section of this report
for more information
Workforce inclusion
We arecommitted tobeing aninclusive workplacebased onmeritocracy,and weaim tobuild aculture ofbelonging
where all employees are recognized and valued, and where everyone can be successful and thrive.
Ourstrategyisbuiltonfourpillars:inclusiveleadership,hiring,developmentandbelonging.Weleverageallfourto
support our workforce and create an inclusive culture for everyone.
Annual Report 2025 |
Our strategy, business model and environment | Our stakeholders38
Our governanceframework enablesleaders andemployees todeliver thestrategy andplay apart indelivering aninclusive
environment. This guiding principle startswith the oversight and commitmentof the GEB and is implementedby leaders
acrossthefirm.Ineverylocationinwhichweoperate,wecontinuetoactinaccordancewiththecurrentlawand
regulations and will monitor any changes to ensure we remain consistent.
This strategyis reinforcedby ourpublic commitmentsto supportall employees,including, butnot limitedto, theUN
Women’s Empowerment Principles, the Valuable 500 andthe Race at Work Charter (in the UK).Of particular note is our
commitmenttotheValuable500,aglobalbusinesscollectiveofCEOsandtheircompaniesfocusedonadvancing
disability inclusion that we have partnered with since 2021.
A sense of belonging drives employee engagement and is vital for both individual and organizational well-being. Acting
as an engine for engagement and belonging,our employee network chapters around theworld connect employees on
a variety of topics.These communities, which areopen to everyone, cometogether to celebrate allcultures, educate and
raiseawareness,offerpeersupport,allyship,andnetworkingopportunities,andhelpensurethefirm’ssustainable
growth by further strengthening our inclusive culture.
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting”at
ubs.com/investors
, and refer to
ubs.com/inclusion
for more information about inclusion topics and status
Employee engagement and support
Our multi-facetedemployee listeningstrategy, including short pulsesurveys, employeelife-cycle surveysand focusgroups
on topics suchas strategic alignment,work environment, AIand well-being, enabledus to gatherinsights from allthe
businessdivisions.OurGroup-wideemployeesurvey,conductedinSeptember2025,assessedorganizational-health
indicators, suchas line managereffectiveness, employee engagement,empowerment andculture. The responserate was
81%,withanengagementscoreof81%andanempowermentscoreof87%.Theseresultsexceededindustry
benchmarks
1
and reaffirmed our commitment to remaining an employer of choice in the financial services sector.
Our benefitsoffering, whichsupports employeesthrough everystage oflife, isaligned withlocal marketsand often
exceeds legal requirements. Employee assistanceprograms and internal teams helpemployees and their family members
manage personal or work-related issues that may affect theirwell-being. In addition, we promote employee health and
well-being througha rangeof programs,benefits andworkplace resources,along withspecialized e-learningcurriculums.
In2025,employeesineveryregionparticipatedincommunityvolunteeringactivities,mentalandphysicalhealth
initiatives,andfinancialeducationevents.Inadditiontomentorshipsandpeer-ledsessions,wedeepenedour
commitment to the
#WorkingWithCancer
pledge in 2025 by supportinga time off for screening initiativefor employees.
In 2025, most employees were eligible to work partially from home, depending on their role, regulatory restrictions and
location,alongwithdivisionalorfunctionalrequirements.Sucharrangements,alongwithoptionssuchaspart-time
schedules, flexible hours,job sharing andpartial retirement, supportemployee engagement andretention and helpus
attract a wider range of talent.
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting”at
ubs.com/investors
, for more
information about our workforce, our people management approach and relevantdata
1
Benchmarks provided by Ipsos Karian and Box as of the third quarter of 2025.
Society
UBS aims tosupport an economythat prioritizes thewell-being of peopleand planet. Throughthe UBS Optimusnetwork
offoundations(theUBSOptimusFoundation),andinpartnershipwithphilanthropists,employees,implementation
organizations and institutional partners, we work todeliver systemic and catalytic impact for marginalizedcommunities
globally andlocally, witha focuson childrenand youngpeople. TheUBS OptimusFoundation isa globalnetwork of
separatelyorganizedandregulated,tax-exempt,charitableorganizations,foundedandmanagedbyUBS,thatmake
grants and other financial contributions to implementing partner organizations aligned with their values and objectives.
In additionto mobilizingour clients’resources toadvance themissions ofour portfolioof partners,we also seekto ensure
boththefirmandemployeesareengagedinourSocialImpactstrategy.Wedothismainlythroughcharitable
contributions and employee volunteering.
In 2021, UBSset two goals:(i) mobilizing USD 1bn inphilanthropic capital, whichwas achieved, aheadof schedule, in
2024;and(ii) reachingmore than26.5millionpeoplebytheendof2025(cumulative since2021), whichhadbeen
exceeded by the end of 2025.
We knowthat workingtogether iskey toachieving thesetargets. Wewant togo beyondthese outputsto createsystemic
impact. That is why, in addition to providing insights, advice andexecution services to clients and prospective clients, we
have increased our efforts in the areas of blended finance, collaborative philanthropy and impact transparency.
1
In blendedfinance, wecontinue tofacilitate opportunitiesand partnershipsthat leveragepublic andprivate capitalin
innovative ways.
Annual Report 2025 |
Our strategy, business model and environment | Our stakeholders39
Incollaborativephilanthropy,wehavebroughttogetherclientsandpartnersonjointinitiativesaddressingglobal
challenges, most recently throughthe Resilio Fund, a boldinitiative designed to strengthenthe resilience of communities
responding to humanitariancrises. Thisfund backswhat local NGOsand community groupsare already doingto help
themselves by financinglocal mutual aid,scaling community servicesand supporting afaster, more accountableresponse
to crises. Wehave also continuedour collaboration withthe Lemann Foundation,supporting efforts toimprove public
educationoutcomesacrossLatinAmericathroughanecosystemapproachinvolvinglocalorganizations,research
institutions and public-sector partners.
On impact transparency, our impact ratingtool, which was introduced in 2024 andrates all grants and investments with
regardtointentionality,additionalityandmeasurability,isnowbeingdeployedacrossallgrantsandinvestments.In
collaborationwithImpactFrontiers,wehavepublishedthefirstresultsofthisexperienceandareworkingtoapply
artificial-intelligence-basedalgorithmstohelpourteamscompletethetoolmoreefficientlyandenhancingimpact
monitoring for swifter reporting and decision-making.
Ourclientsandpartnersareinvitedtobepartofourimpactecosystembysupportingandengaginginvarious
collaborative initiatives and approaches.
The UBS Optimus Foundation
In2025,theUBSOptimusFoundationraisedUSD 472mindonations(2024:USD 366m,bothfiguresincludeUBS
matching contributions).The 2025amount exceededthe ambitionof reachingby 2027USD 400m indonations each
year (including matching contributions). Going forward, the foundation aims to continue to raise a similar amount each
year. In 2025, the UBS Optimus Foundation committed USD 461m (2024: USD 310m) in grants from the foundations.
2
Investing for impact
In 2025, the UBS Optimus Foundation focusedon strengthening its existing portfolio bymobilizing funding from clients,
so investees canachieve meaningful results.In addition, thefoundation celebrated thesuccessful final closingof the SDG
OutcomesFundandadvancedoutcomes-basedfinancingthroughitsOutcomesAcceleratorProgram,reinforcingits
commitment to innovative approaches that deliver measurable impact.
UBS Collectives
Launched in 2020, the
UBS Collectives
focus on issues central to our impact strategy.
–
UBS Accelerate Collective: advancing innovative financing for education, health and climate outcomes.
–
UBS ClimateCollective: strengtheningcoastal resiliencethrough communityempowerment, ecosystemrestoration and
nature-based climate action.
–
UBS Transform Collective: promoting family-based care and transforming child protection systems.
Our three
UBS Collectives
unite philanthropists and social investorsto co-fund high-impact programs, shareknowledge
and embark on a structured learning journey, while building meaningful connections with peers. Members benefit from
expert-led modules, donor update calls, access to subject matterspecialists and immersive experiences that bring to life
impact on the ground.
Helping our clients structure their philanthropy:donor-advised funds
Donor-advisedfunds(DAFs)provideclientswithanalternativecharitable-givingvehicletosettinguptheirown
foundations,offeringgreaterchoiceandpersonalizationwhilebeingmanagedinlinewiththeirusualinvestment
approach.UBSoperatesitsownDAFentitiesinSwitzerland,Singapore,theUKandtheHongKongSAR.In2025,
USD 961m in donations was received into these UBS charitable entities (2024: USD 329m).
3
Supporting our communities
We haveprovided directcash contributionsthrough ouraffiliated foundationsin Switzerland,through partnershipsin
the communities where we operate and through contributions to theUBS Optimus Foundation. The combined value of
these contributions in 2025 was USD 84m (2024: USD 74m).
Employee volunteering
We have globaltargets for employeeengagement throughvolunteering, whichare built fromthe bottom upon the basis
of regional targets. In 2025, we successfully engaged 37% of our global workforce in volunteering (2024: 32%).
1
Currently, our impact transparency focus is on ensuring that all grants and investments supported by the UBS OptimusFoundation undergo consistent and transparent diligence, approval,management and reporting
processes, in line with industry standards.
2
The UBS Optimus Foundation receives donations from all of the business divisions,with the majority coming from Global Wealth Management.
3
The increase is primarily attributable to substantial inflows from a small number of clients.
Annual Report 2025 |
Our strategy, business model and environment | Our stakeholders40
Our focus on sustainability
We are guided by our ambition tobe a leader in sustainability.This is reflected in our vision to bethe bank for the next
generation. Tohelp us realizethat vision, oursustainability and impact strategyis based on threeoverarching strategic
pillars: Protect, Grow and Attract.
Sustainability and impact vision: be the bank for the next generation
Protect
Manage our business in alignment with our
sustainable, long-term Group strategy and
evolving standards
Grow
Embed an innovative sustainability and impact
offering across all our business divisions
Attract
Be the bank of choice for clients and employees
Our sustainability and impact strategy
Protect
As part of our continued commitment to protect our clients’ assets and those of our firm, we are focused on managing
our businessby aligningwith thesustainable long-term Groupstrategy andevolving standards.We maintaina strong
control andrisk framework tosupport ourrisk management processesand productoffering,in additionto complying
with regulatoryrequirements. In addition,we havea climatetransition planin placeto supportour clientsin thetransition
to a low-carbon world and to reduce their exposure to transition risks, while also mitigating related risks to UBS.
Grow
Wearecontinuing toexpand oursustainability andimpact productofferingacrossall businessdivisions tomeetour
clients’evolvingneedsandtosupportthemthroughtheworld’stransitiontoalow-carboneconomy.Innovationin
productdevelopment, clientreportingand engagement,as wellas exploringartificial-intelligence-driven usecases to
streamlineprocessesarekeytodeliveringcompetitivesolutions.Tofacilitatethis,wehaveadedicatedGroup
Sustainability andImpact BusinessDevelopment &Client Forum,which focuseson client,product andimpact approaches.
Attract
We aspireto bethe bankof choicefor clientsand employeesalike, maintainingtop-quartile sustainabilityratings and
positioning the firmas a go-toemployer through ourengagement and educationprograms. In 2025,our MSCI AArating
was reaffirmed,
1
and our S&P Global Corporate Sustainability Assessment (CSA) score remained at a high level.
2
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting” at
ubs.com/investors
, for detailed
information about UBS’s sustainability strategyand activities
Our sustainability and impact governance
Sustainability activities are overseenat the highest levelof UBS, by theBoard of Directors (the BoD)and the GEB, andare
grounded in the Code of Conduct and Ethics of UBS (the Code).
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more
information about UBS’s sustainability and impactgovernance
The Code of Conduct and Ethics of UBS
In our Code, the BoD and the GEBset out the principles and practices thatdefine our ethical standards, and the way we
do business, which apply to all aspects of our business. All employees must affirmannually that they have read and will
adhere tothe Codeand otherkey policies,supporting aculture whereethical andresponsible behavioris partof our
everyday operations. In our Code,we make a commitment toacting with the long termin mind and creatingvalue for
clients, employees,communities andinvestors. Weaspireto createa fairer,moreprosperoussociety,championing a
healthier environment, and to support addressing inequalities. Every year, the BoD and the GEB conduct a review of our
Code to ensure that developments key to our clients, employees and other stakeholders are reflected.
›
Refer to the Code of Conduct and Ethics of UBS, available at
ubs.com/code
, for more information,including recent updates
Reporting to our stakeholders on our sustainability strategy and activities
Further information about our sustainability efforts andcommitments is provided in the UBS Group SustainabilityReport
2025. The content ofthat report has beenprepared in accordance withthe Swiss Code ofObligations (Art. 964a etseq).
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting” at
ubs.com/investors
, for an overview of
non-financial disclosures in accordance with the Swiss Code of Obligations (Art.964a et seq)
›
Refer to “Sustainability and climate risk” in the “Risk management and control” section of thisreport for UBS’s climate risk
metrics disclosures as required by Annex 5 to FINMA Ordinanceon the Disclosure Obligations of Banks and Securities Firms
1
Source: MSCI ESG Ratings & Climate Search Tool, UBS Group AG ESG Rating 2025
.
2
Source: S&P Global, UBS Group AG CSA Score 2024 and 2025.
Annual Report 2025 |
Our strategy, business model and environment | Regulation and supervision41
Regulation and supervision
As a financial servicesprovider based in Switzerland,the UBS Group issubject to consolidated supervisionby the Swiss
Financial MarketSupervisory Authority(FINMA). Ourentities arealso regulatedand supervisedby authoritiesin each
countrywhereweconductbusiness.ThroughUBS AGand
UBSSwitzerland AG,whicharelicensedasbanksin
Switzerland, UBS may engage in a full range of financial services activities in Switzerland and abroad, includingpersonal
banking, commercial banking, investment banking and asset management.
As aglobal systemicallyimportant bank(a G-SIB),as designatedby theFinancial StabilityBoard, anda systemicallyrelevant
bank (an SRB) in Switzerland, we are subject to stricter regulatory requirements and supervision than other Swiss banks.
›
Refer to the “Our evolution” section of this report for more information
›
Refer to the “Integration of Credit Suisse” section of this report for moreinformation
›
Refer to the “Regulatory and legal developments” and “Risk factors” sections of this report for moreinformation
Regulation and supervision in Switzerland
Supervision
UBS Group AGand its subsidiariesare subjectto consolidated supervisionby FINMA underthe Swiss BankingAct and
related ordinances, which imposestandards for matters suchas capital adequacy and riskdiversification rules, liquidity,
internalcontrolsystems,businessconduct,andcorporategovernance.FINMAmeetsitsstatutorysupervisory
responsibilities through licensing, regulation, supervision and enforcement. It is responsible for prudential supervision. It
undertakes direct inspectionsand mandates auditfirms to performregulatory audits andother supervisory taskson its
behalf.
Capital adequacy and liquidity regulation
As an internationally active Swiss systemically important bank (an SIB), we are subject to capital and total loss-absorbing
capacity (TLAC) requirementsthat are basedon both risk-weighted assetsand the leverage ratiodenominator,and are
among the moststringent in theworld. We are also subjectto liquidity requirements andto minimum long-termfunding
requirements for Swiss SIBs.
›
Refer to the “Capital management” section of this report for more information about theSwiss SRB framework and the Swiss
too-big-to-fail (TBTF) requirements
›
Refer to the “Liquidity and funding management”section of this report for more information about liquidity coverage ratio, net
stable funding ratio requirements and the Swiss TBTF liquidity requirements
Regulation and supervision outside Switzerland
Regulation and supervision in the US
In theUS, UBSis subjectto regulationand supervisionby theBoard ofGovernors ofthe FederalReserve System(the
Federal Reserve Board) under a number of laws.UBS Group AG and UBS AG are subjectto the Bank Holding Company
Act, pursuant to which the Federal Reserve Board has supervisory authority over our US operations.
In addition tobeing a financialholding company underthe Bank HoldingCompany Act, UBS AGhas US branches,which
are authorized and supervised by the Office ofthe Comptroller of the Currency (the OCC).UBS AG is registered as swap
dealerwiththeCommodityFuturesTradingCommission(theCFTC)andassecurities-basedswapdealerwiththe
Securities and Exchange Commission (the SEC).
UBS AmericasHolding LLCis theintermediate holdingcompany forour operationsin theUS outsideof theUBS AG
branch network,as required underthe Dodd–Frank Act,and is subjectto requirements establishedby the FederalReserve
Board related torisk-based capital, liquidity,the Comprehensive CapitalAnalysis and Review(CCAR) stress-testing and
capital planning process, and resolution planning and governance.
UBS Bank USA, aFederal Deposit Insurance Corporation(FDIC)-insured depository institution subsidiary,is licensed and
regulated bystate regulatorsin Utahand isalso supervisedby theFDIC. Ithas receivedconditional approvalfrom the
OCC to convertto a nationalcharter and expectsto complete theconversion in 2026.Following conversion, theOCC
will be the primary banking regulator for UBS Bank USA.
UBS Financial ServicesInc., UBS SecuritiesLLC, Credit Suisse Securities(USA) LLC and severalother US subsidiariesof UBS
are subject to regulation by a number of different government agencies and self-regulatory organizations, including the
SEC,theFinancialIndustryRegulatoryAuthority,theCFTC,theMunicipalSecuritiesRulemakingBoardandnational
securities exchanges,depending onthe natureof theirbusiness. Certainof ouractivities inthe USare subjectto regulation
by the Consumer Financial Protection Bureau.
Regulation and supervision in the UK
Our regulated UK operations are mainly subject to the authority of the Prudential Regulation Authority (the PRA), which
is part of the Bank of England (the BoE), and the Financial Conduct Authority (the FCA). We are also subject to the rules
of the London Stock Exchange and other securities and commodities exchanges of which UBS AG is a member.
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UBS AG has aUK-registered branch, UBS AGLondon Branch, whichserves as aglobal booking centerfor our Investment
Bank.UBS AGalsohasregulatedsubsidiariesintheUKthatprovideassetmanagementservices.CreditSuisse
International and Credit Suisse (UK) Limited are authorized and regulated bythe FCA and subject to the authority of the
PRA.
Regulation and supervision in Europe
UBS Europe SE, headquartered in Germany,is subject to the direct supervision of theEuropean Central Bank (the ECB),
aswellastoconduct,consumerprotectionandanti-money-laundering-relatedsupervisionbytheGermanFederal
FinancialSupervisoryAuthorityandbytheGermanBundesbank.TheentityissubjecttoEUandGermanlawsand
regulations. UBS Europe SE maintains branchesin Denmark, France, Ireland, Italy, Luxembourg, the Netherlands,Poland,
Portugal, Spain, Sweden and Switzerland and is subject to conduct supervision by authorities in all those countries.
In Italy, Credit Suisse (Italy) SpA has beenintegrated into UBS Europe SE and UBS has relinquishedthe banking license of
Credit Suisse Bank (Europe) SA. In Spain, UBS AG Spain Branch is supervised by the Bank of Spain, the Servicio Ejecutivo
de la Comisión de Prevención del Blanqueo de Capitales and the Comisión Nacional del Mercado de Valores.
Regulation and supervision in Asia Pacific
We operate innumerous locations inAsia Pacific, including Singapore,the Hong KongSAR, mainland China, Australia
and Japan. The operationsin these locations aresubject to regulation andsupervision by local financial regulators.Our
Asia Pacific regional hubs are in Singapore and the Hong Kong SAR.
In Singapore,UBS AG SingaporeBranch andUBS SecuritiesPte Ltdare supervisedby theMonetary Authorityof Singapore
andtheSingaporeExchange.UBSAssetManagement(Singapore) LtdissupervisedbytheMonetaryAuthorityof
Singapore.
In the Hong Kong SAR,UBS AG Hong Kong Branch issupervised by the Hong KongMonetary Authority and the Hong
Kong Securities and Futures Commission. UBS Securities Hong Kong Limited, UBS Securities Asia Limited and UBS Asset
Management (HongKong) Limited aresupervised bythe Hong KongSecurities and FuturesCommission. Inaddition, UBS
Securities Hong Kong Limited is supervised by Hong Kong Exchanges and Clearing Limited.
In mainland China,we have multiplelicenses to operatethe business linesof UBS AG, andthe various entitiesare subject
to regulation by a number of different governmentagencies. The People’s Bank of China overseesChina’s macro capital
marketspolicies andensures coordinatedsupervisory approachesby theNational FinancialRegulatory Administration
(the China Banking and Insurance Regulatory Commission untilMay 2023), the China Securities Regulatory Commission
and a number of exchanges.
InAustralia,UBS AGAustraliaBranchissupervisedbytheAustralianPrudentialRegulationAuthority,theAustralian
SecuritiesandInvestments Commission,theAustralian TransactionReports andAnalysis Centre,theReserve Bankof
Australia, and theAustralian Securities Exchange.UBS Securities AustraliaLtd is supervisedby the AustralianSecurities
andInvestmentsCommission,theAustralianTransactionReportsandAnalysisCentreandtheAustralianSecurities
Exchange.UBSAssetManagement(Australia)LimitedissupervisedbytheAustralianSecuritiesandInvestments
Commission and the Australian Transaction Reports and Analysis Centre.
In Japan, UBSSecurities Japan Co.,Ltd. is supervisedby the FinancialServices Agency andthe Japan ExchangeGroup.
UBS AG TokyoBranch issupervised bythe FinancialServices Agencyand theBank ofJapan. UBSSuMi TRUSTWealth
Management Co., Ltd.is supervisedby theFinancial Services Agencyand theJapanese Ministry ofFinance. UBSAsset
Management (Japan) Ltd and UBS Japan Advisors Inc. are supervised by the Financial Services Agency.
Financial crime prevention
Combating money laundering andterrorist financing has beena major focus of manygovernments in recent years.Laws
and regulations requireeffective policies, procedures andcontrols to detect,prevent and reportmoney laundering and
terrorist financing, and the verification of client identities.
InSwitzerland,theintroductionofatransparencyregisterwillfurtherstrengthentheanti-moneylaundering(AML)
framework through increasedownership and controlinformation. At EUlevel, the AMLreform package, includingthe
Regulation establishingthe EUAnti-Money-Laundering Authority,is aimedat strengtheningEU-wide AMLrules, including
by harmonizingrequirements acrossEU MemberStates andimposing stricterdue diligenceobligations. TheUSAML
regulation isin anactive implementationphase, withthe Anti-Money-LaunderingAct of2020 drivingexpanded risk-
based obligations, enhanced informationsharing and the rolloutof new requirements thathave not yet beencodified.
At thesame time,regulators areincreasing supervisoryscrutiny andenforcement expectations,emphasizing effectiveness,
data quality and the accountability of senior management rather than mere technical compliance.
Failure to introduce andmaintain adequate programs to preventmoney laundering and terrorist financingcan result in
significant legal and reputational risk and fines.
We arealso subjectto lawsand regulationsprohibiting corruptor illegalpayments togovernment officialsand other
persons, including theUS Foreign CorruptPractices Act andthe UK BriberyAct. We maintainpolicies, procedures and
internal controls intended to comply with those regulations.
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Refer to “Non-financial risk” in the “Risk management and control” section of this reportfor more information
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Data protection
Wearesubjecttoregulationsconcerningtheuseandprotectionofcustomer,employeeandotherpersonaland
confidential information.This includesprovisions underSwiss law,the EU GeneralData ProtectionRegulation (the GDPR),
US laws and laws of other jurisdictions.
In2025,dataprotectiondevelopmentsweredominatedbynewartificialintelligence(AI)rules(includingthefirst
enforcement ofthe EUArtificial IntelligenceAct), tighterscrutiny ofcross-border datatransfers, andthe continuedspread
and toughening of privacy laws,and enforcement globally. As UBSis a global bank, these translateinto strategic themes
around AI and datagovernance, cross-border data and cloudrisk, regulatory fragmentation andrising expectations for
data sharing, transparency and customer control.
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Refer to the “Risk factors” section of this report for more information about regulatorychange
Recovery and resolution
TheexistingSwissregulationsrequireeachSRBtoestablishanemergencyplantomaintainsystemicallyimportant
functions in case ofimpending insolvency. Inresponse to these Swissrequirements and similarones in other jurisdictions,
UBS has developed the Global Recovery Plan(the GRP), the Global Resolution and Restructuring Strategyand the Swiss
Emergency Plan (the SEP), as well as other local recovery and resolution plans for its key regions (to the extent required).
The plansdescribe howto restructureand / or winddown businessesif theGroup couldnot otherwisebe stabilized.
FINMA evaluatesthe recoveryandresolutionplansof SwissSRBsonaregularbasis.Similarly,thelocalrecoveryand
resolution plans are evaluated by the respective local authorities.
Global Recovery Plan
The GRP setsforth measures torestore financial strength ifUBS comes undersevere capital orliquidity stress. Itsobjective
istosustainably stabilizetheGroupincaseofacrisiswithoutgovernment intervention.Quantitative andqualitative
triggers are monitoredand are subject topredefined governance and escalation processes.Recovery options are linked
to owners and checklists, with the objectives of preserving capital, raising capital or liquidity,or disposing of or winding
down businesses. In September 2025, FINMAannounced that a full assessment ofUBS’s recovery plan was not possible,
duetotheongoing integrationofCreditSuisseinto UBSandthe resultingrapid paceofchange. UBSsubmitted an
updated GRP in summer 2025, which is currently under review by FINMA.
Global Resolution and Restructuring Strategy
FINMA produces a global resolution plan for UBS setting out measures that FINMA can take to resolve UBS in an orderly
manner. FINMA’s preferred strategy for UBS is a single point of entry (SPE) strategy involving write-down of the Group’s
remainingequityandadditionaltier 1(AT1)andtier 2instruments,conversionofseniorunsecuredbondsof
UBS Group AG toequity,if required,and aninternal recapitalizationof undercapitalizedsubsidiaries toshift lossesto
UBS Group AG.Post-resolutionrestructuringmeasurescouldinclude disposalsand / orwind-downofbusinesses and
disposals of assets. Overthe years, UBSmade structural, financial andoperational changes to facilitatethese measures
and is confident thata resolution of theGroup is operationally executableand legally enforceable. FINMA’s September
2025 resolutionreport onUBS confirms thata bailin remainsoperationally executable forUBS, and anSPE resolution
strategy remains the preferred strategy for UBS.
Alternative Resolution Strategy
Following the Credit Suisse crisis,related parliamentary investigations andlessons learned, FINMAdetermined that UBS’s
resolutionplanningmustbefurtherdevelopedtoincreasethenumberofoptionsavailabletoFINMAincaseofa
resolution.These additionaloptions, whichwill bedocumented inthe AlternativeResolution Strategygoing forward,
should include a forced sale of the Group in its entirety and a solvent market exit (either via disposal or wind-down or a
combination ofboth). Incase ofan insolvencythreat, theadditional resolutionoptions wouldallow theauthorities to
choose theapproach withthe bestprospect ofsafeguarding financialstability internationallyand maintainingsystemically
importantfunctionsinSwitzerland,withouthavingrecoursetotaxpayers’money.Initialconcepts fortheAlternative
Resolution Strategy were developed byUBS and are under reviewby FINMA; however, their implementation is subjectto
the ongoing legislative change process.
Swiss Emergency Plan
The SEP demonstrates how UBS’s systemically important functionsand critical operations in Switzerland can continue if
the UBSGroup cannotbe restructured.This isachieved mainlyby operating thesefunctions ina separatelegal entity,
UBSSwitzerlandAG,andbyensuringitsfinancialandoperationalself-sufficiencytoenableitscontinuedoperation
throughout a crisis. Although UBS’sSEP was deemed largely compliantwith current regulatory requirements, FINMA has
determined that it will need tobe integrated into the newAlternative Resolution Strategy goingforward (which, in turn,
is subject to the ongoing legislative change process as noted under “Alternative Resolution Strategy” above).
Other local recovery and resolution plans
TheUSresolutionplan setsoutthe stepsthatcould betaken toresolvethe USintermediate holdingcompany,UBS
Americas Holding LLC,and its subsidiariesif it suffered materialfinancial distress andUBS Group was unableor unwilling
to provide financial support. As required by US regulations, UBS’s US plan contemplates that UBS Americas Holding LLC
will commence US bankruptcy proceedings. Prior tothis, the plan envisages UBS Americas Holding LLCdownstreaming
financial resources to its respective subsidiaries to facilitate an orderly wind-down or disposal of businesses. UBS filed its
updated US resolution plan in October 2025.
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UBS Europe SEupdatesalocalrecoveryplanannuallybasedonECBrequirementsaswellasresolutionplanning
informationandcapabilitiesbasedonSingleResolutionBoardrequirements.Onthebasisofsuchinformation,the
InternalResolutionTeam,composedofmembersoftheSingleResolutionBoard,producesaresolutionplanfor
UBS Europe SE.
Other local recovery and resolution planning is in place for various Group entities and jurisdictions.
Crisis management framework
The UBS Group’s crisis management framework assigns responsibility and actions depending on the nature of the stress
incident and the scale of the response needed.As such, it connects the recovery andresolution planning with the earlier
stages of crisis planning.
–
For incident,risk andcrisis management,the GroupCrisis TaskForce workswith incidentmanagement teamsthat
provide monitoring and early-warning indicators at the local / regional level,without needing to activate protocols at
the Grouplevel. Ifa localresponse isinsufficient, global taskforces andcrisis management teamsprovide decision-
makingguidanceandcoordination, includingcrisismanagement plans,protocols andplaybooks, andcontingency
funding plans.
–
The Group Executive Board (the GEB) and the Board of Directors (the BoD) would evaluate and decide upon the need
toactivatetheGRPifastresseventhasreachedaseverityrequiringactivationbasedontheGRP’srecoveryrisk
indicators.
–
FINMA has the authorityto determine whether thepoint of non-viability, asdefined by Swiss law,has been reached
and, as part of the Global Resolutionand Restructuring Plan for UBS,has the power to order thebail in of creditors to
recapitalize and stabilizethe Group, limitpayments of dividendsand interest, alterthe legal structureof the Group,
take actions to reduce business risk, and order a restructuring of the Group.
Regulatory trends
The regulatory environmentcontinues to evolve,with some policymakersaiming to simplifyand / or reduceregulatory
constraints, while othersremain focusedon addressingvulnerabilities revealedby theMarch 2023banking turmoil. In
Switzerland, for example, authorities are advancing reforms to the TBTF regime aimed at further strengthening financial
stability.Followingtheconsultationsonstrictercapitalandliquidityrequirements,thefocusisnowshiftingto
implementation through legislation and ordinances. This includes finalizingthe Capital Adequacy Ordinance and foreign
subsidiary capital rules, as wellas advancing consultation draftson other regulatory areas, such asenhanced governance
and strengthened recovery and resolution planning.
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Incontrast,othermajorjurisdictions,suchastheEU,theUKandtheUS,areincreasinglyshiftingtheirpolicyand
regulatoryapproachestowardpromotingapro-growthandcompetitivenessagenda.TheUSadministration’s
deregulatorystancehaspromptedreviewsofsupervisorystandardsforbanksandcauseddelaysinmajorregulatory
initiatives, including the implementation of Basel III, while the EUand the UK have postponed or streamlined regulatory
initiatives to reduceadministrative burdens oncompanies and mobilizeprivate capital. Thesedivergent approaches are
contributing to concerns over regulatory fragmentation, with differences in timelines and content posingchallenges for
globally active banks.
Digitalization and digital asset regulations continue to progress, with global policy responses adapting to rapid technical
developments.TheEUMarketsinCrypto-AssetsActandtheUSGENIUSActareestablishingnewframeworksfor
stablecoins and digital assets, andSwitzerland is consulting on newstablecoin and crypto service providerlicenses. The
Basel Committee on Banking Supervision (the BCBS) announced a targeted review of its prudential standards for banks’
crypto asset exposures. AI hasalso attracted heightened supervisoryand regulatory attention, with theEU’s expansive AI
Actenteringintoforce,whileotherjurisdictionsoptforsector-specificorincrementalapproaches.However,asan
expression of strategic technology competition, thefocus in many countries hasshifted from strict safety tosupporting
responsibleAIinnovation.Cybersecurityandthird-partyriskmanagementconcernsalsoremainprominent,with
expanded incidentreporting andcritical third-partyregimes underdevelopment inmany jurisdictions.At theinternational
level, the BCBS has approved its final principles for the sound management of third-party risk, and the Financial Stability
Board has finalized the common Format for Incident Reporting Exchange.
Sustainable finance was markedby important revisions ofregulations in certain jurisdictions,driven by competitiveness
and growthconsiderations, butwith verydifferent approachesleading tofurther fragmentation.The EUis seekingto
simplify and refine its framework to reduce the regulatory and reporting burden on businesses, while the US is pursuing
a path of deregulation. In this context, Switzerland haspaused its work on sustainability reporting and sustainabilitydue
diligence pending thefinalization of theEU review, whilethe UK iscautiously developing itsown framework witha focus
oninternationalalignmentandinteroperability.Incontrast,withthegrowingfrequencyofclimate-relateddisasters,
supervisory attentiontoimprove themanagementof climateandnature-related financialrisks continuesto increase,
especially inEurope. Inaddition, nature-relatedtopics, transitionfinance andcarbon marketsare increasinglygaining
policytractionglobally,withsignificanteffortsunderwaytosupporttheirglobalconvergencethroughstandardized
frameworks and regulations.
Financial stability risks in the non-bank financialintermediation (NBFI) sector are an increasingconcern, with global work
aiming to improve NBFI data availability to make risk assessments morecredible, starting with initial work in the areas of
leverage and private credit, dueto their high expected materialitywith regard to financial stability. Inthe UK, a system-
wide stress test hasbeen launched to furtherassess the systemic risk,mainly by private markets,in the eventof stress.
Anti-money-launderingreformsinSwitzerlandwillimpactourduediligenceprocesses,whiletheglobalsanctions
environment remains complex, including the continued implementation of additional sanctions measures against Russia
by theEU, theUS andSwitzerland. Inaddition, marketstructure reforms,such asshortening thestandard settlement
cycle for financialtrades to onebusiness dayafter the tradedate (T+1),from two businessdays after thetrade date (T+2),
are progressing in Europe.
Looking aheadto anenvironment markedby geopoliticaluncertainties, shiftingglobal dynamicsand therisk ofincreasing
regulatory fragmentation, we are convinced that our prudent adaptations in a dynamic environment and our diversified
business model put us in a solid position to absorb upcoming changes to the regulatory framework.
›
Refer to the “Regulatory and legal developments” section of this report for moreinformation
Regulatory and legal developments
Developments in Switzerland
In June 2025, theSwiss Federal Council publishedregulatory proposals that aimto further strengthen bankingstability
in Switzerland. Proposed measures to be submitted to theSwiss Parliament for enactment would exclude from common
equity tier 1(CET1) capital investmentsin foreign subsidiariesof systemically importantbanks (SIBs), includeadditional
requirements forthe recoveryand resolutionof SIBs,add measuresto increasethe potentialfor obtainingliquidity via
the Swiss NationalBank (the SNB),introduce a SeniorManagers Regime forbanks, and provideadditional powers forthe
Swiss Financial Market Supervisory Authority (FINMA).
Proposed measuresat theordinance levelwould excludecapitalized softwareand deferredtax assets(DTAs) ontemporary
differencesfromCET1capital,addstricterrequirementsforprudentialvaluationadjustments(PVAs)ofassetsand
liabilities,requiresuspensionofinterestpaymentsforadditionaltier1(AT1)capitalinstrumentsintheeventofa
cumulative lossover fourquarters, andintroduce measuresthat aimto enableFINMA andother authoritiesto better
assess thesituation ofbanks ina liquiditycrisis. TheSwiss FederalCouncil hasproceeded towardsimplementation of
these recommendations through several legislative and regulatory packages.
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A public consultation on proposed measuresat the ordinance level ended inSeptember 2025. The Swiss Federal Council
is expectedto publishfinal amendmentsto theordinance inthe firsthalf of2026, withentry intoforce notexpected
before January 2027.
A separate publicconsultation onproposed legislativeamendments tocapital requirementsrelated to foreignsubsidiaries
ended in January 2026.The proposed changes wouldrequire the deduction ofinvestments in foreign subsidiariesof SIBs
from CET1 capital. Theproposal states thatthe amendments wouldenter into force in2028, at the earliest,starting with
a 65% deduction requirement in thefirst year and increasing to 100%by 5-percentage-point increments each yearover
seven years. The Swiss FederalCouncil is expected to submitits proposal to the SwissParliament in the first halfof 2026.
The Swiss FederalCouncil is alsoexpected to launchconsultations on additionallegislative measures inthe summer of
2026, including incrementalrequirements for therecovery and resolutionplans of SIBs,measures aimed atincreasing the
potentialforobtainingliquidityviatheSNB,theintroductionofanenhancedaccountabilityframeworkforsenior
managers of banks,and the provisionof additional powersfor FINMA. Followingthe consultation, thesemeasures are
expected to be submitted to the Parliamentin the first half of 2027, with entryinto force expected in 2028 or 2029. In
addition, a public consultation on amendments to the Liquidity Ordinanceis expected to be launched in the summer of
2026.Theproposalsareexpectedtosetminimumrequirementsformaintainingborrowingcapacityforemergency
liquidity assistance.
Estimated incremental capital from proposed changes to the capital framework
We currently estimate that UBS AG wouldbe required to hold additional CET1 capitalof 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 fulldeduction ofUBS AG’s investmentsin foreign subsidiaries,of whichapproximately USD 6bn wouldbe required
at the start of theproposed phase-in period, and aroundUSD 3bn from the potentialdeduction of DTAson temporary
differences, capitalized software and PVAs.
TheincrementalCET1capitalofUSD 22bnatUBS AGwouldincreaseUBS Group AG’sCET1capitalratiotoaround
18.5%, calculatedfrom itstarget ratioof around14%. Theproposed measuresrelated toDTAs ontemporary differences,
capitalized softwareand PVAswould eliminatearound USD 11bnof net CET1capital atUBS GroupAG, which, asa result
of this elimination, would reduce the estimated CET1 capital ratio for the Group from 18.5% to 16.5%.
This currentestimated incrementalcapital ofUSD 22bn resultingfrom theproposed changesin Swisscapital requirements
would be on topof the additional capitalUBS is required tohold as a resultof the acquisition ofthe Credit Suisse Group.
This includesaround USD 9bnto removethe regulatoryconcessions grantedto CreditSuisse andaround USD 6bnto
meettheprogressiveadd-onduetotheincreasedleverageratiodenominator(LRD)andhighermarketshareofthe
combinedbusiness.Thephase-inofthecapitalrequirementsrelatingtotheincreasesinLRDandmarketshare
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 asproposed, UBS would be required to
hold around USD 37bn in additional CET1 capital.
These estimateshave beencalculated basedon our balancesheet at 31 December2025, assumethat all capitalmeasures
are adopted as currentlyproposed and use anassumed CET1 capital ratioof 12.5% for UBSAG, the lower endof our
target rangeof 12.5–13.0%,and 14.0%for UBSGroup overall.The estimatesalso reflectcapital repatriationsof USD 3bn
from UK subsidiaries planned for 2026.
The estimateof UBSAG‘s incrementalcapital requirementsat 31 December2025 isaround USD 2bnlower thanthe
estimate of USD 24bn we publishedon 6 June 2025 inresponse to the Swiss FederalCouncil proposal, which was based
on our first quarter 2025 balance sheet, (and USD 4bn lower than the estimate of USD 26bn basedon 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 thecase ofthe US,improving profitabilityexpectations andimprovements inour mostrecent InternalCapital Adequacy
Assessment Process (ICAAP) and Dodd-Frank Act Stress Test (DFAST) results.
UBS AG’s CET1capital ratio of14.2% at 31 December2025 reflects theseaccelerated capital repatriations.As previously
communicated, we expect UBS AG’s CET1 capitalratio to remain above our target levels inthe near term, mainly due to
leverage ratio considerations driven by the weakening of the US dollar.
UBS’s position
UBS hassubmitted responsesto theconsultations onthe proposedmeasures atthe ordinancelevel andon legislative
amendments. UBS overall supports the Swiss Federal Council's objective of drawing lessons from the Credit Suissecrisis
andstrengtheningtheregulatoryframeworkwithtargeted,proportionateandinternationallyalignedmeasures.
However,the proposed full deduction of foreignsubsidiaries from CET1 capital clearly does notmeet these criteria and
isexcessive.Inaddition,UBShasoutlinedthattheproposedregulatorytreatmentofcapitalizedsoftware,DTAson
temporary differencesand PVAsis acombination ofthe maximumrequirements ofvarious jurisdictionsand doesnot
give due considerationto the ultimateimpact ofthe overallpackage, comparisonsto the capitalregimes in peercountries
orthecostofsuchextrememeasures.Switzerlandalreadyhasoneofthestrictestregulatorycapitalregimes,with
substantial progressivecapital surchargesand aconservative andearly implementationof thefinal BaselIII rules.The
SwissFederalCouncil’sproposalswouldsignificantlyincreasetherequirementsandwouldcontrastsharplywith
developments across Europe, and in theUS, which have proposed, or areexpected to implement, less restrictive capital
regimes.
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FINMA resolution report on UBS
In September 2025,FINMA published its2025 resolution report onUBS related to the2024 fiscal year. FINMA concluded
that UBSremains resolvableunder UBS’sexisting preferredresolution strategy,which includesa recapitalizationvia a
bail-in at the Group holding company level.
›
Refer to “Recovery and resolution” in the “Regulation and supervision” section of this reportfor more information
Developments related to the implementation of the final Basel III standards
InSwitzerland,theamendmentstotheCapitalAdequacyOrdinance(theCAO)thatincorporatethefinalBasel III
standards intoSwiss lawentered intoforce on1 January 2025.The adoptionof thefinal Basel IIIstandards ledto an
USD 8.6bnreductionintheUBSGroup’sRWA.AUSD 6.5bnincreaseinmarketriskRWAresultingfromthe
implementationoftheFundamentalReviewoftheTradingBook(theFRTB)frameworkwasmorethanoffsetbya
USD 9.0bn reduction in operationalrisk RWA and a USD 6.1bnreduction in credit and counterpartycredit risk RWA. The
outputfloor,whichisbeingphasedinuntil2028,iscurrentlynotbindingfortheUBSGroup.ThefinalBasel III
implementation in Switzerlandhad acumulative net impacton UBSGroup ofadding aroundUSD 60bn of RWAsince
UBS started preparing for its adoption with a series of model updates and methodology changes over the last ten years.
In January2026, thePrudential RegulationAuthority (thePRA) publishedits finalpolicy statementsimplementing the
Basel 3.1 standardsin theUK. Implementationremains setfor 1 January2027, withfull phase-inby 1 January2030,
except for theimplementation of theinternal model approachfor market risk(the FRTB InternalModel Approach), which
has beenpostponed to1 January 2028.The FRTBregulation forstandardized andadvanced standardizedapproaches
will apply from 1 January 2027. The impact of the UK Basel 3.1 regulations on UBS is expected to be immaterial.
In theEU, thefinal Basel IIIrequirements becameapplicable asof 1 January2025, exceptfor theFRTB 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, theEC conducted a public consultation,concluded in January 2026, onpolicy options to
temporarilymitigatenegativeimpactsstemmingfromtheabsenceofalevelplayingfieldwithregardtothe
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.
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In theUS, bankingagencies, includingthe FederalReserve Board,have beendiscussing amendmentsto theiroriginal
proposals regarding the implementationof the final Basel III standards.We expect that a re-proposalwill be issued in the
first halfof 2026.UBS AmericasHolding LLCis subjectto theUS requirements.The impacton UBScan onlybe determined
once the US publishes its final rules.
US supervisory changes
In August 2025, the Federal Reserve Board reduced the stress capital buffer (the SCB) of UBS AmericasHolding LLC, our
US-basedintermediateholdingcompany,to5.2%,from9.3%,applicablefrom1 October2025undertheFederal
Reserve Board’s SCB rule, resulting in a total CET1 capital requirement of 9.7%. The SCB for UBS Americas Holding LLC
is derived from the results of the Federal Reserve Board’s 2025 DFAST released in June 2025.
Earlierin2025,theFederalReserveBoardproposedmeasurestoreducethevolatilityoftheSCBrequirementsby
averaging the capitalstress test resultsfrom the pasttwo years, withthe aim ofmaking capital planningmore predictable
for banks. In addition,the Federal Reserve Boardproposed moving the effectivedate for the annualSCB updates from
1 October to 1 January toallow more time tomeet the new requirements. Weexpect the final rules tobe published in
the first half of 2026.
US federal banking agencieshave undertaken several initiativesto reform supervisory standardswith the stated objective
of prioritizingmaterial financialrisks. InOctober 2025,the FederalDeposit InsuranceCorporation (theFDIC) andthe
Office of the Comptrollerof the Currency (theOCC) issued two proposals. Thefirst proposal aims toclarify supervisory
standardsregardingthecircumstancesunderwhichadeficiencywouldrisetothelevelofasupervisoryfindingor
enforcement action. The second proposal wouldprohibit examiners from criticizing or takingadverse action on the basis
of reputationalrisk. InNovember 2025,the FederalReserve Boardreleased astatement ofsupervisory operatingprinciples
that outlines objectives for supervision, expressingits focus on material financial risksover process-based concerns. The
FederalReserveBoardhasalsofinalizedaruletoamenditssupervisoryratingframeworkforlargebankholding
companies. Underthe rule,whichbecame effectiveon16 January 2026,the FederalReserve Boardwill takeamore
holistic approach in determining whetherit considers covered companies tobe well managed. The impactof these will
depend on the implementation by examination staff at these agencies.
In addition, inAugust 2025, apresidential executiveorder directed theUS federal bankingagencies to identifysupervised
institutions thathave previouslyengaged orare currentlyengaged in“politicized orunlawful debanking”,which the
order defined asrestrictions on accessto financialservices based ona customer’s politicalor religiousbeliefs or lawful
business activities.In December2025, theOCC releasedpreliminary findingsfrom itssupervisory reviewof debanking
activities atthe ninelargest nationalbanks thatit supervises.The OCCdetermined thatthe bankshad policiesor practices
that limitedaccess tobanking servicesfor certaincustomers andhas recommendeddocumentation ofindividualized,
objective, risk-based analysesfor any decisionto restrict accessto banking services. Thefull impact ofthis issue willbe
dependent on the outcome of ongoing debanking reviews of the OCC and other federal banking agencies.
In January 2026, the OCC issued a conditional approval for UBS Bank USA’s application to become a national bank.
Developments related to environmental, social and governance matters, and sustainable finance
Developments in the EU to simplify regulations regarding environmental, social and governance matters
InFebruary2025,theECpublishedproposalstosimplifytherequirementsoftheCorporateSustainabilityReporting
Directive (the CSRD), thereporting requirementsunder the TaxonomyRegulation and the CorporateSustainability Due
Diligence Directive (the CSDDD), with a viewto reducing the reporting and regulatory burden, in particularfor small and
medium-sizedenterprises,andtoenhancingtheEU’scompetitiveness.InApril2025,EUlegislatorsapprovedthe
directive,delayingcertainapplicationdatesoftheCSRDandtheCSDDD,withthatdirectiveenteringintoforceon
17 April 2025.
In July 2025, the EC adopted amendments to the European Sustainability Reporting Standards (the ESRS) to allow wave
one companies subject to CSRD reporting to omit certain of the ESRS disclosures for the 2025 and 2026 financial years.
Also in July2025, the ECadopted final measuresto simplify thedisclosure requirementsunder Art. 8 ofthe EU Taxonomy
Regulation.
In July 2025, Germany’s FederalMinistry of Justice andConsumer Protection published anew draft bill to implementthe
CSRD. While legislative stepswere taken, full enactmentbefore 31 December 2025, forapplication to the 2025financial
year, has not taken place. As a result, CSRD reportingwas not made mandatory in Germany for the 2025 financialyear
forlargecompaniesthataresubjecttowaveonereportingrequirementsoftheCSRD,whichwouldhaveincluded
UBS AG (having selected Germany as its EU home member state under the EU Transparency directive).
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Our strategy, business model and environment | Regulatory and legal developments49
In December 2025, EU legislators reached a final agreement on proposals to simplify the requirements of the CSRDand
the CSDDD. The agreement provides for a significantly reduced scope of application of both theCSRD and the CSDDD,
while maintaining their extra-territorial application.Companies within the scope of theCSDDD will be required to takea
risk-based approachwhen conductingdue diligenceand willno longer haveto adopta transition planfor climatechange
mitigation. EU Member States will have to transpose the revised CSRDinto national law within the 12 months following
its entry into force, which is expected in the first quarter of 2026. Withregard to the CSDDD, the transposition deadline
has been further postponed until July 2028, withcompliance to be achieved by July 2029. UBS AG andUBS Europe SE,
would remainwithin thescope ofthe revisedCSRD andbecome subjectto CSRDreporting onceGermany hastransposed
this directive. We are assessing the expected impact of scope changes of the revised CSDDD.
On 1 January 2026, simplification measuresto the reporting requirements underArt. 8 of the EUTaxonomy Regulation
becameeffective.Companies havetheoptionofimplementing thechangesfor the2025financialyearorthe2026
financialyear.Themeasuresaimtoreducetheburdenandcostsoftaxonomyreportingforcompaniespendingthe
completion ofthecomprehensive reviewofthe EUTaxonomyRegulation andrelated reportingrulesin 2026.UBSis
applying thechanges tothe taxonomyreporting ofUBS AG standalone andUBS Europe SE consolidated forthe 2025
financial year.
›
Refer to the “Sustainability statement” section of the UBS AG Annual Report 2025 (for filing in the EU), availableunder “Annual
reporting” at
ubs.com/investors
, for more information
US climate disclosure requirements
In March 2025, the US Securities and Exchange Commission (the SEC) announced that it would end its legal defense of
its 2024 climate disclosure regulation. The implementation of the regulation had previously been suspended by the SEC
as aresult of legalchallenges. CertainUS stateshave adoptedor intendto adoptspecific state-levelclimate riskdisclosure
requirements forcompanies operating in theirrespective states. UBSwill monitor these developmentsto assess impact
as rules are finalized.
The Swiss Federal Council pauses the revision of the Ordinance on Climate Disclosures
In June 2025, the Swiss Federal Council decided to pause the revision ofthe Ordinance on Climate Disclosures until the
approval ofthe ongoingrevision ofthe overarchinglegislation onsustainability reportingin theSwiss Codeof Obligations
or until 1 January 2027, at the latest.
Changes to the UK senior management function and material risk taker compensation schemes
InOctober2025,thePrudentialRegulationAuthorityandFinancialConductAuthorityadoptedchangestotheir
regulations on thecompensation of seniormanagers and materialrisk takers. Therevised regulationsgenerally reduce
the portion ofincentive compensation subjectto mandatory deferral,reduce the mandatorydeferral periodsfor incentive
compensation to a uniform four years, eliminate post-vesting blocked periods and permit awards to accrue interest and
dividends. Changes are generallyeffective immediately and companiesmay elect to applycertain elements ofthe revised
requirements toawards inthe currentcompensation year,as wellas tooutstanding deferredincentive compensation
plans. UBS is assessing the changes and the related impacts.
Mutual recognition agreement with the UK approved by the Swiss Parliament
In March2025, theSwiss Parliamentapproved theBerne Financial ServicesAgreement (theBFSA) withthe UK,which
facilitates cross-border financial activities based ona new model for regulatory cooperationand outcomes-based mutual
recognition of domestic rules. TheBFSA is supplemented by an enhanced andcloser supervisory process and additional
supervisoryarrangementswherenewmarketaccessisgranted.RegulationstoimplementtheBFSAintheUKwere
submitted to UK Parliament in July 2025 and entered into force on 1 January 2026.
Digital assets and artificial intelligence
Developments related to digital assets
In October2025, theSwiss FederalCouncil launcheda consultationon proposedamendments tothe FinancialInstitutions
Act aimedat improvingthe frameworkconditions formarket development,the attractivenessof the Swissfinancial center
and theintegration of innovativefinancial technologies into theexisting financial system.The proposalintroduces two
new license categories:a payment instrumentinstitution (PII)license, whichwould allow theholder to issuea 1:1-backed,
singlecurrencyregulatedstablecoin;andacrypto-institution (CI)licensetoprovidecryptocurrencyservices, including
staking, custodyandtrading. Undertheproposal, bankswould needtohave aseparate PII-licensedentity toissue a
regulated stablecoin.However,existing bankinglicenseswould allowbanks toconduct CIservices. TheSwiss Federal
Council plans tosubmit a draftbill to theSwiss Parliament,likely by theend of 2026.Separately, theSwiss Parliament
decided inNovember 2025to postponedebate onthe nationalimplementationof theCrypto AssetReporting Framework,
issuedbytheOrganisationforEconomicCo-operationandDevelopment,pushingimplementation beyond2026.In
September 2025, FINMA issued guidance onthe disclosure of crypto-based assets inthe annual financial statements of
banks and securitiesfirms.
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Our strategy, business model and environment | Regulatory and legal developments50
In the US, the Guiding and EstablishingNational Innovation for US Stablecoins Act(the GENIUS Act) was signed intolaw
in July 2025, establishing a federal framework for stablecoin issuers. The banking agencies and the US Treasury are now
working to implementthe law. In January2025, a presidential executiveorder (an EO) wasissued to promote thegrowth
and use of US digital assets. Federal agencies have taken some actions in response to the EO and the final report issued
following the EO, including the SEC rescinding its Staff Accounting Bulletin 121.
TheBankofEngland(theBoE)publishedaconsultationinNovember2025onaregulatoryframeworkforsterling-
denominated systemic stablecoins. The BoE sets out a proposedprudential and supervisory regime for non-bank issuers
of stablecoins deemed “systemic”. The final rules and supervisory approach are expected in the second half of 2026.
Developments related to artificial intelligence
In February2025, theSwiss FederalCouncil decidedon itsapproach to regulatingartificial intelligence(AI) inSwitzerland,
formally clarifying that ageneral cross-sector AIlaw will not beadopted. Under this approach,the Council of Europe’s
Framework Conventionon ArtificialIntelligence willbe incorporatedinto Swisslaw,and adjustmentsto existinglaws
shouldbesectorspecific.Onlykeyareasrelevanttofundamentalrights,suchasdataprotection,willbesubjectto
general,cross-sectoralregulation.ThegovernmentwilldraftabillforconsultationtoimplementtheFramework
Convention on ArtificialIntelligence by theend of 2026.Separately,non-legally binding measureswill be proposedby
the end of 2026.
Risk factors
Certain risks,including those describedbelow,may affectour ability toexecute ourstrategy or ourbusiness activities,
financial condition, results of operations and prospects. We are inherently exposed to multiple risks, many of whichmay
become apparent only withthe benefit ofhindsight. As a result,risks that we donot consider to bematerial, or of which
we are notcurrently aware, couldalso adversely affect us.Within each category,the risks that weconsider to be most
material are presented first.
Strategy, management and operational risks
Substantial changes in regulation may adversely affect our businesses and our ability to execute our strategic plans
Wearesubjecttosignificantregulatoryrequirements,includingcapitalandliquidity,legalstructurerequirements,
recovery and resolution planning, new and revised marketstandards and fiduciary duties, as wellas new and developing
environmental, social and governance(ESG) standards and requirements. In addition,measures adopted or proposed for
banking and other regulation differ significantly across the major jurisdictions, making it increasingly difficult to manage
a globalinstitution. Regulatoryreviews ofthe eventsleading tothe failuresof USbanks andour acquisitionof Credit
Suisse in 2023, aswell as regulatorymeasures to completethe implementation of theBasel III standards,may increase
capital, liquidityand otherrequirements applicable tobanks, includingUBS. Swissregulatory changes withregard to such
mattersascapitalandliquidityhaveoftenproceededmorequicklythanthoseinothermajorjurisdictions,and
Switzerland’srequirementsformajorinternationalbanksareamongthestrictestofthemajorfinancialcenters.
Switzerland hasimplemented thefinal BaselIII requirementseffective 1January 2025,while implementationin other
jurisdictions, including the United States, the EU and the UK, remains uncertain.
In June 2025,the Swiss FederalCouncil published forconsultation proposed amendmentsto the SwissCapital Adequacy
Ordinance. As currently proposed, such amendments would become effective in January2027. In September 2025, the
Swiss Federal Council begana second public consultationon legislative amendments tocapital requirements related to
foreign subsidiaries, which areintended to become effectivein 2028, atthe earliest, andare expected tobe phased in
over a periodof six toeight years. TheSwiss Federal councilis expected topublish for consultation,in the firsthalf of
2026, theremainder ofthe legislativechanges implementingthe recommendationsfrom thereview. Thecapital measures
proposed bythe SwissFederal Council, ifadopted as proposed,would require significantadditional capital atUBS AG
and have the effectof requiring a highercapital ratio at theUBS Group. Increased capitalor liquidity requirementswould
put usat adisadvantage whencompeting withpeer financialinstitutions subjectto lowercapital orliquidity requirements.
Ourimplementationofadditionalregulatoryrequirementsandchangesinsupervisorystandards,aswellasour
compliance with existing laws and regulations,has entailed significant implementation andongoing costs and continues
to receive heightened scrutiny from supervisors. If we do not meet supervisory expectations in relation to these or other
matters, or if additional supervisoryor regulatory issues arise,we would likely be subjectto further regulatory scrutiny,as
well as measures that may constrain our strategic flexibility.
Resolvability andresolution andrecovery planning:
We havemoved significantoperations intosubsidiaries toimprove
resolvability and meetother regulatory requirements,and this has resultedin substantial implementationcosts, increased
ourcapitalandfundingcostsandreducedoperationalflexibility.Forexample,wehavetransferredallofourUS
subsidiariesunderaUSintermediateholdingcompanytomeetUSregulatoryrequirementsandhavetransferred
substantially allthe operationsof Personal& CorporateBanking bookedin Switzerlandto UBSSwitzerland AGto improve
resolvability.
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Thesechangescreateoperational,capital,liquidity,fundingandtaxinefficiencies.Ouroperationsinsubsidiariesare
subject tolocal capital,liquidity, stablefunding, capitalplanning andstresstesting requirements.Theserequirements
have resulted in increasedcapital and liquidity requirementsin affected subsidiaries, whichlimit our operational flexibility
and negatively affectour ability tobenefit from synergiesbetween businessunits and todistribute earningsto the Group.
Under theSwiss too-big-to-fail (TBTF)framework, we arerequired to putin place aviable emergencyplan to preserve
the operation ofsystemically important functions inthe event ofa failure. Moreover,under this frameworkand similar
regulations in theUS, the UK,the EU andother jurisdictions inwhich we operate,we are requiredto preparecredible
recovery and resolution plans detailing themeasures that would be taken torecover in a significant adverse eventor in
the event of winding down the Group or the operations in a host country through resolution or insolvency proceedings.
If a recovery or resolution planthat we produce is determined bythe relevant authority to beinadequate or not credible,
relevant regulation may permit the authority to place limitations on the scope or size of our business in that jurisdiction,
or oblige us to hold higher amountsof capital or liquidity or tochange our legal structure or businessin order to remove
the relevant impediments to resolution.
TheauthoritiesinSwitzerlandandinternationallyhavepublishedlessonslearnedfromtheCreditSuisseandtheUS
regional bank failures,which are expectedto result inadditional requirementsregarding recovery andresolution planning
as well as early interventiontools for authorities. In September2025, FINMA published its 2025resolution report on UBS
related tothe 2024fiscal yearand FINMAconcluded thatUBS remainsresolvable underUBS’s existingpreferred resolution
strategy.However,giventhelessonslearnedfromtheCreditSuissecrisis,FINMAalsodeterminedthattheSwiss
emergency plan of UBS– although largely compliantwith the current legalrequirements – requires furtherdevelopment,
inparticularbetterintegrationintoUBS’sglobalresolutionplan,tomeettheobjectiveofmaintainingsystemically
important functions while also safeguarding financialstability at the international level.Due to the ongoing integration
of Credit Suisse into UBS, FINMA has refrained from assessing UBS’s recovery plan, which outlines measures that aim to
restore financial strength if UBS should come undersevere capital or liquidity stress. We expectto make adjustments to
our resolutionplans toreflect additionalguidance fromFINMA andmay berequired tomake furtheradjustments to
reflect any changes to law that are enacted.
Increases in capitaland changes inliquidity requirements may,in the aggregaterequire us tomaintain significantly higher
levels of capital, which may have an effect on ourability to achieve our strategic plans, to meet ambitions forreturn on
capital,andtoachieveourambitionsforcapitalreturnstoshareholders.Significantlyhighercapitalorliquidity
requirements appliedto theUBS Groupor UBSAG relativeto competitorsin Switzerlandor abroadmay affectUBS’s
ability to compete with firms subject to less stringent capital requirements and increase UBS’s costs to serve customers.
Market regulationand fiduciarystandards:
Our businessesoperate inan environmentof increasingregulatory scrutiny
and changing standards with respect to fiduciary and other standards of care and the focus on mitigating or eliminating
conflictsofinterestbetweenamanageroradvisorandtheclient,whichrequire effectiveimplementationacrossthe
global systems and processes ofinvestment managers and other industryparticipants. Future changes in the regulation
of ourduties tocustomers, includingany potentialchanges tobanking examinationand oversightpractices andstandards
as aresult ofinterpretations oflaw, mayrequire usto makefurther changesto ourbusinesses, whichwould resultin
additionalexpenseandmayadverselyaffectourbusiness.Wemayalsobecomesubjecttoothersimilarregulations
substantively limiting the types of activities in which we may engage or the way we conduct our operations.
In manyinstances, weprovide serviceson across-border basis,and weare thereforesensitive tobarriers restrictingmarket
access forthird-country firms. Inparticular, effortsin theEU toharmonize the regimefor third-countryfirms to access
the European market may have theeffect of creating new barriers thatadversely affect our ability to conductbusiness in
thesejurisdictionsfromSwitzerland.Inaddition,anumberofjurisdictionsareincreasinglyregulatingcross-border
activities basedon determinationsof equivalenceof homecountry regulation,substituted complianceor similarprinciples
ofcomity.Anegativedetermination withrespecttoSwissequivalence couldlimitouraccesstothemarketinthose
jurisdictions and may negatively influence our ability to act as a global firm.
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UBS’s acquisition of Credit Suisse Group AG exposes UBS to heightened litigation risk and regulatory scrutiny and
entails significant additional costs, liabilities and business integration risks
UBS acquiredCredit SuisseGroup AGunder exceptionalcircumstances andthe continuedoutflows anddeteriorating
overall financialposition ofCredit Suisse,in order toavert afailure ofCredit Suisseand thusdamage tothe Swissfinancial
center and toglobal financial stability.The acquisition waseffected througha merger ofCredit SuisseGroup AG with
andintoUBSGroupAG,withUBSGroupAGsucceedingtoallassetsandallliabilitiesofCreditSuisseGroupAG,
becomingthedirectorindirectshareholderoftheformerCreditSuisseGroupAG’sdirectandindirectsubsidiaries.
Therefore, on aconsolidated basis, all assets,risks and liabilities ofthe Credit SuisseGroup became apart of UBS. This
includes all ongoing and futurelitigation, regulatory and similar mattersarising out of the businessof the Credit Suisse
Group, thereby materially increasing UBS’s exposureto litigation and regulatory risks. UBS has, and expects tocontinue
to, incursubstantial coststomanageandresolvelitigation, regulatoryandother issuesarising fromCreditSuisse.In
additiontothelitigationandregulatoryrisksinherited fromCreditSuisseGroupAG,variouslegalchallengestothe
acquisition transactionhave beenbrought byformer securityholdersof CreditSuisse GroupAG. FormerCredit Suisse
shareholdershavebroughtclaimschallengingtheamountofmergerconsiderationreceivedandseekingavaluation
under theSwiss MergerAct. Formerholders ofCredit Suisseadditional tier 1capital instrumentshave broughtclaims
seekingadeterminationthatFINMA’sorderdirectingCreditSuisseGroupAGtowritedownsuchinstrumentswas
unauthorized and unlawful. In a partial ruling, the Swiss Federal Administrative Court has ruledthat FINMA’s order was
unlawful withoutaddressing anypotential remedy.This rulinghas beenappealed byFINMA andby UBSto theSwiss
Federal SupremeCourt. Although UBSbelieves these claimsare withoutmerit, a finaladverse decision inany of these
matters could be material to UBS.
UBShas alsoincurred andexpectsto continuetoincur coststomanage otherissues arisingfrom CreditSuisse. This
includessubstantialresourcesinconnectionwithourvoluntary reviewofhistoricalrecordsrelatingtoCreditSuisse’s
World War II-era conduct.
We have incurredand will continueto incur, substantialintegration and restructuringcosts as wecombine the operations
of UBS andCredit Suisse. Inaddition, we maynot realize allof the expectedcost reductions andother benefits ofthe
transaction. Wemay notbe ableto successfully executeour strategicplans orto achievethe expected benefitsof the
acquisition ofthe CreditSuisse Group.The successof thetransaction, includinganticipated benefitsand costsavings,
will depend, inpart, on theability tosuccessfully complete theintegration of theoperations of bothfirms rapidly and
effectively, while maintaining stability of operations and high levels of service to customers of the combined franchise.
Our ability to completethe integration of Credit Suissewill depend on anumber of factors, some ofwhich are outside
of our control, including our ability to:
–
combine the operations of the two firms in a manner that preserves client service, simplifies infrastructure and results
in operating cost savings,including successful completionof the transfer ofclients from legacy CreditSuisse platforms
to UBS platforms in Switzerland, our largest booking center;
–
maintain depositsand clientinvested assetsin ourGlobal WealthManagement divisionand inSwitzerland, andto
attract additional deposits and invested assets to the combined firm;
–
achieve cost reductions at the levels and in the timeframe we plan;
–
enhance, integrateand, wherenecessary, remediaterisk managementand financialcontrol andother systemsand
frameworks;
–
complete the simplificationof thelegal structure ofthe combined firmin an expeditedmanner, including obtaining
regulatory approvals and licenses required to implement these changes;
–
completethewind-downoftheassetsandliabilitiesinourNon-coreandLegacydivisionandreleasecapitaland
resources for other purposes;
–
decommission theinformation technologyand otherlegacy CreditSuisse operationalinfrastructure tosimplify our
infrastructure, reduce operational complexity and lower our operating expenses; and
–
resolve outstanding litigation, regulatoryand similar matters, includingmatters relating to CreditSuisse, on terms that
are not significantly adverse to us, aswell as to successfully remediate outstandingregulatory and supervisory matters
and meet other regulatory commitments.
The levelof successin theabsorption ofCredit Suisse,in theintegration ofthe twogroups andtheir businesses,the
execution of cost reductions and divestment of non-core assets, aswell as resulting impairments and write-downs, may
impacttheoperationalresults,sharepriceandthecreditratingofUBSentities.Inaddition,thefinancialeffectsof
management decisions and transactions will likelydiffer between UBS Group and UBSAG as a result ofthe application
of theacquisition methodof accountingunder theIFRS AccountingStandards bythe UBSGroup, includingvaluation
adjustmentsrecordedbytheUBSGroup.ThecombinedGroupwillberequiredtodevotesignificantmanagement
attentionandresourcestointegratingitsbusinesspracticesandsupportfunctions.Thediversionofmanagement’s
attention and any delays or difficulties encountered in connection withthe transaction and the coordination of the two
companies’ operationscould havean adverseeffect onthe business,financial results,financial conditionor theshare
price of the combined Group following the transaction.
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Our reputation is critical to our success
Our reputation is critical to the successof our strategic plans, businessand prospects. Reputational damage is difficult to
reverse,andimprovementstendtobeslowanddifficulttomeasure.Inthepast,ourreputationhasbeenadversely
affectedbyourlossesduringthe2008financialcrisis,investigationsintoourcross-borderprivatebankingservices,
criminal resolutionsof LondonInterbank OfferedRates (LIBOR)-relatedand foreignexchange matters, aswell asother
matters. We believethat reputational damageas a resultof these eventswas an importantfactor in ourloss of clients
and client assets across our asset-gathering businesses. The Credit Suisse Group was more recently subject to significant
litigation andregulatory mattersand tofinancial lossesthat adverselyaffected itsreputation andthe confidenceof clients,
which played a significant role in the events leading to the acquisition ofthe Credit Suisse Group in March 2023. These
events, or new events that cause reputationaldamage, could have a material adverse effecton our results of operation
and financial condition, as well as our ability to achieve our strategic goals and financial targets.
Operational risks affect our business
Ourbusinesses dependon ourability toprocessalarge numberof transactions,manyof whicharecomplex, across
multiple and diverse markets in different currencies, to comply with requirements of many different legal and regulatory
regimestowhichwearesubject andtoprevent,orpromptlydetectandstop,unauthorized, fictitiousorfraudulent
transactions. We also rely onaccess to, and onthe functioning of,systems maintained by thirdparties, including clearing
systems, exchanges,information processorsand centralcounterparties. Anyfailure ofour orthird-party systemscould
haveanadverseeffectonus.Theserisksmaybegreateraswedeploynewertechnologies,suchasblockchain,or
processes, platforms or products that rely on these technologies. Our operational risk management and control systems
and processesaredesigned tohelp ensurethat therisks associatedwith ouractivities –including thosearising from
process error,failed execution,misconduct, unauthorizedtrading, fraud,system failures,financial crime,cyberattacks,
breaches of information security, inadequate or ineffective access controls and failure of security and physical protection
– areappropriately controlled.If ourinternal controlsfail orprove ineffectivein identifyingand remedyingthese risks,
we could suffer operationalfailures that might resultin material losses. The acquisitionof the Credit SuisseGroup may
elevate theserisks, particularlyduring thefirst phasesof integration,as thefirms havehistorically operatedunder different
procedures, IT systems, risk policies and structures of governance.
We use automationas partof ourefforts to improveefficiency, reduce the risk oferror and improveour clientexperience.
We intend to expandthe use ofrobotic processing, machine learningand artificial intelligence(AI) to furtherthese goals.
Use of thesetools presentstheir own risks,including the needfor effectivedesign and testing;the quality ofthe data
used for development and operation ofmachine learning and AI tools may adverselyaffect their functioning and result
in errors and other operational risks.
Financial servicesfirms haveincreasingly beensubject tobreaches ofsecurity andto cyber-and otherforms ofattack,
some ofwhich aresophisticated andtargeted attacksintended togain accessto confidentialinformation orsystems,
disrupt service or steal or destroy data, which may result in business disruption or the corruption or loss of data at UBS’s
locations or thoseof third parties.Cyberattacks by hackers,terrorists, criminal organizations,nation states andextremists
havealsoincreasedinfrequencyandsophistication.Currentgeopoliticaltensionshavealsoledtoincreasedriskof
cyberattack from foreign stateactors. In particular, theRussia–Ukraine war and theimposition of significant sanctionson
Russia by Switzerland,the US, theEU, the UKand others hasresulted and maycontinue to result inan increase inthe
risk of cyberattacks. Such attacks may occur on our own systemsor on the systems that are operated by external service
providers, may be attempted through the introduction of ransomware, viruses or malware, phishing andother forms of
social engineering,distributed denialofservice attacksand othermeans. Theseattempts mayoccur directlyorusing
equipment or security passwordsof our employees, third-partyservice providers or otherusers. Cybersecurity risks also
haveincreasedduetothewidespreaduseofdigitaltechnologies,cloudcomputingandmobiledevicestoconduct
financial businessand transactions,aswell asdue togenerative AI,whichincreases thecapabilities ofadversaries to
mountsophisticatedphishingattacks,forexample,throughtheuseofdeepfaketechnologies,andpresentsnew
challenges to the protection ofour systems and networks andthe confidentiality and integrity ofour data. In addition to
external attacks, we have experienced loss of client data from failure by employees and others to followinternal policies
and procedures and from misappropriation of our data by employees and others.
We may not be able toanticipate, detect or recognize threatsto our systems or dataand our preventative measures may
notbeeffectivetopreventanattackorasecuritybreach.Intheeventofasecuritybreach,notwithstandingour
preventative measures, we may not immediately detecta particular breach or attack. The acquisitionof the Credit Suisse
Group may elevate and intensify theserisks, as would-be attackers have alarger potential target in the combinedbank
anddifferencesinsystems,policies,andplatformscouldmakethreatdetectionmoredifficult.Inaddition,the
implementationofthelarge-scaletechnologicalchangeprogramthatisnecessarytointegratethecombinedbank’s
systems at pacemay also resultin increasedrisks. Once aparticular attack isdetected, timemay be requiredto investigate
and assess the nature and extent of the attack, and to restore and test systems and data. If a successful attack occurs at
a service provider, as we have recently experienced, we may be dependent on the service provider’s abilityto detect the
attack, investigate andassess the attackand successfully restorethe relevant systemsand data. Asuccessful breach or
circumvention of security of our or a service provider’s systems or data could have significant negative consequences for
us,includingdisruptionofouroperations, misappropriationofconfidential informationconcerningusorourclients,
damage toour systems,financial lossesfor usor ourclients, violationsof dataprivacy andsimilar laws,litigation exposure,
and damage to our reputation.We may be subject toenforcement actions as regulatory focuson cybersecurity increases
and regulatorshave announcednew rules,guidance andinitiatives onransomware andother cybersecurity-relatedissues.
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We are subject to complexand frequently changing lawsand regulations governingthe protection of clientand personal
data, such as the EU General Data Protection Regulation. Ensuring that we comply with applicable laws and regulations
when we collect, use and transfer personal information requires substantial resources and may affect the ways in which
we conduct ourbusiness. In theevent that wefail to complywith applicable laws,we may beexposed to regulatoryfines
and penalties andother sanctions. Wemay also incursuch penalties if ourvendors or otherservice providers orclients
or counterparties fail to comply withthese laws or to maintain appropriatecontrols over protected data. In addition, any
loss or exposure of client or other data may adversely damage our reputation and adversely affect our business.
A major focus of US and other countries’ governmental policies relating to financial institutions in recent years has been
onfighting moneylaundering andterroristfinancing. Wearerequiredto maintaineffectivepolicies, proceduresand
controls to detect, preventand report money laundering andterrorist financing, and to verify theidentity of our clients
under thelaws ofmany ofthe countriesin whichwe operate.We arealso subjectto lawsand regulationsrelated to
corrupt and illegal payments to government officials by others, such as the US Foreign Corrupt Practices Act and the UK
Bribery Act. We have implementedpolicies, procedures and internal controls thatare designed to comply with suchlaws
and regulations. Failure to maintain and implementadequate programs to combat money laundering,terrorist financing
orcorruption,oranyfailureofourprogramsintheseareas,couldhaveseriousconsequencesbothfromlegal
enforcementactionandfromdamagetoourreputation.Frequentchangesinsanctionsimposedandincreasingly
complexsanctionsimposedoncountries,entitiesandindividuals,asexemplifiedbythebreadthandscopeofthe
sanctionsimposedinrelationtothewarinUkraine,increaseourcostofmonitoringandcomplyingwithsanctions
requirements and increase the risk that we will not identifyin a timely manner client activitythat is subject to a sanction.
Asaresultofnewandchangedregulatoryrequirementsandthechangeswehavemadeinourlegalstructure,the
volume, frequencyand complexityof ourregulatory andother reportinghas remainedelevated. Regulatorshave also
significantlyincreasedexpectationsregardingourinternalreportinganddataaggregation,aswellasmanagement
reporting.Wehaveincurred,andcontinuetoincur,significantcoststoimplementinfrastructuretomeetthese
requirements.Failuretomeetexternalreportingrequirementsaccuratelyandinatimelymannerorfailuretomeet
regulatory expectations of internal reporting, data aggregationand management reporting could result in enforcement
action or other adverse consequences for us.
In addition,despite thecontingency plansthat wehave inplace, ourability toconduct businessmay beadversely affected
by adisruption in theinfrastructure that supportsour businessesand thecommunities in whichwe operate.This may
includeadisruptionduetonaturaldisasters,pandemics,civilunrest,warorterrorismandinvolveelectrical,
communications, transportation orother services thatwe use orthat are usedby third partieswith whom weconduct
business.
We depend on our risk management and control processes to avoid or limit potential losses in our businesses
Controlled risk-taking isa major partof the businessof a financialservices firm. Somelosses fromrisk-taking activities
are inevitable,but, tobe successfulover time,we mustbalance therisks wetake againstthe returnsgenerated. Therefore,
we must diligently identify,assess, manage and control our risks,not only in normal market conditions butalso as they
might develop under more extreme, stressed conditions, when concentrations of exposures can lead to severe losses.
We havenot always beenable to preventserious losses arisingfrom riskmanagement failures andextreme orsudden
marketevents.Werecordedsubstantiallossesonfixed-incometradingpositionsinthe2008financialcrisis,inthe
unauthorized trading incident in 2011 and, more recently,positions resulting from the default of a US primebrokerage
client. Credit Suissehas sufferedvery significant lossesfrom the defaultof the USprime brokerage clientand losses in
supply chain finance funds managed by it, as well as other matters.
Weregularlyreviseandstrengthenourriskmanagementandcontrolframeworkstoseektoaddressidentified
shortcomings. Nonetheless, we could suffer further losses in the future if, for example:
–
we do not fully identify the risks in our portfolio, in particular risk concentrations and correlated risks;
–
ourassessmentoftherisksidentified,orourresponsetonegativetrends,provestobeuntimely,inadequate,
insufficient or incorrect;
–
our risk models prove insufficient to predict the scale of financial risks the bank faces;
–
markets movein waysthat wedo notexpect –in termsof theirspeed, direction,severity orcorrelation –and our
ability to manage risks in the resulting environment is, therefore, affected;
–
third partiesto whomwe havecredit exposureor whosesecurities wehold areseverely affectedby eventsand we
suffer defaults and impairments beyond the level implied by our risk assessment; or
–
collateral or other securityprovided by our counterparties andclients proves inadequate tocover their obligations at
the time of default.
We also hold legacy risk positions, primarilyin Non-core and Legacy, that, in manycases, are illiquid and may deteriorate
in value. The acquisition of the CreditSuisse Group has increased, materially, the portfolio ofbusiness that is outside of
our risk appetite and subject to exit in the Non-core and Legacy segment.
We also managerisk onbehalf of ourclients. The performanceof assetswe hold forour clients maybe adversely affected
by the aforementioned factors.If clients suffer lossesor the performance oftheir assets heldwith us is notin line with
relevantbenchmarks againstwhichclients assessinvestment performance,wemaysufferreducedfeeincome anda
decline in assets under management, or withdrawal of mandates.
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Investment positions, such as equity investmentsmade as part of strategic initiativesand seed investments made at the
inception of funds that we manage, may alsobe affected by market risk factors. These investments areoften not liquid
and generallyare intendedor requiredto beheld beyonda normaltrading horizon.Deteriorations inthe fairvalue of
these positions would have a negative effect on our earnings.
We may be unable to identify or capture revenue or competitive opportunities, or retain and attract qualified
employees
The financialservices industryis characterizedby intensecompetition, continuousinnovation, restrictive,detailed and
sometimes fragmentedregulationand ongoingconsolidation. Wefacecompetition atthe leveloflocalmarketsand
individual business lines and from globalfinancial institutions that are comparable tous in their size and breadth, aswell
as competition from new technology-based market entrants,which may not be subject tothe same level of regulation.
Barriers to entry in individual markets and pricing levels are being eroded by newtechnology. We expect these trends to
continue and competition toincrease. Our competitivestrength and marketposition could beeroded if weare unable
toidentifymarkettrendsanddevelopments,donotrespondtosuchtrendsanddevelopmentsbydevisingand
implementing adequate business strategies,do not adequately developor update ourtechnology,including our digital
channels andtools anddeployment ofartificial intelligence,or are unableto attractor retain thequalified peopleneeded.
Theamountandstructureofouremployeecompensationisaffectednotonlybyourbusinessresultsbutalsoby
competitive factors and regulatory considerations.
In responseto the demandsof various stakeholders,including regulatoryauthorities and shareholders,and in orderto
better align the interests of our staff with other stakeholders,
our compensation framework includes deferral periods for
stock awards, forfeiture provisions andclawback provisions for certain awardslinked to business performance. We also
have individual caps on the proportion offixed to variable pay for the members ofthe Group Executive Board (GEB), as
well as certain otheremployees. UBS is alsorequired to maintainand enforce provisionsrequiring UBS torecover from
GEBmembers aportionofperformance-based incentivecompensation intheeventthattheUBSGroup,oranother
entity with securities listed on a US national securities exchange, is required to restate its financial statements as a result
of a material error.
Constraints on the amount or structure of employee compensation, high levels of deferral, performance conditions and
other circumstances triggering theforfeiture of unvested awardsmay adversely affect ourability to retain andattract key
employees, particularly where wecompete with companies thatare not subject to theseconstraints. The loss ofkey staff
and the inability to attractqualified replacements could seriously compromise ourability to execute our strategyand to
successfullyimproveouroperatingandcontrolenvironment,andcouldaffectourbusinessperformance.Swisslaw
requires that shareholders approve the compensation ofthe Board of Directors of UBS Group AG(the BoD) and the GEB
each year. If our shareholdersfail to approve the compensationfor the GEB or theBoD, this could have anadverse effect
on our ability to retain experienced directors and our senior management.
As UBS Group AG is a holding company, its operating results, financial condition and ability to pay dividends and other
distributions and/or to pay its obligations in the future depend on funding, dividends and other distributions received
directly or indirectly from its subsidiaries, which may be subject to restrictions
UBS GroupAG’s ability topay dividends andother distributions, torepurchase sharesand to payits obligations inthe
future willdepend onthe levelof funding,dividends andother distributions,if any,received fromUBS AGand other
subsidiaries. The abilityof such subsidiariesto make loansor distributions, directlyor indirectly,to UBS GroupAG may
berestrictedasaresultofseveralfactors,includingrestrictionsinfinancingagreementsandtherequirementsof
applicable law and regulatory,fiscal or otherrestrictions. In particular,UBS Group AG’sdirect and indirectsubsidiaries,
including UBS AG, UBS Switzerland AG,UBS Americas Holding LLC, UBS EuropeSE and Credit Suisse International, are
subject to laws and regulations that requirethe entities to maintain minimum levels of capital andliquidity,that restrict
dividend payments, that authorize regulatory bodies to blockor reduce the flow of funds from those subsidiaries to UBS
Group AG or thatcould affect their abilityto repay any loansmade to, or other investmentsin, such subsidiary by UBS
Group AG or another member of the Group. Restrictions and regulatory actions could impede access to funds thatUBS
Group AG mayneed to meetits obligations,to pay dividendsto shareholders orto repurchaseour shares. Inaddition,
UBS Group AG’s right to participate in a distribution of assets upona subsidiary’s liquidation or reorganization is subject
to all prior claims of the subsidiary’s creditors.
Our capital instruments may contractually prevent usfrom proposing the distribution of dividendsto shareholders, other
than in the form of shares, and from engaging in repurchases of shares, if we do not pay interest on these instruments.
Furthermore, UBS Group AGmay guarantee some ofthe payment obligations ofcertain of the Group’ssubsidiaries from
time to time. These guarantees may require UBS Group AG to provide substantial funds or assets to subsidiaries or their
creditors or counterparties at a time when UBS Group AG is in need of liquidity to fund its own obligations.
The credit ratings of UBS Group AG or its subsidiariesused for funding purposes could be lower than the ratingsof the
Group’s operatingsubsidiaries, whichmay adverselyaffect themarket valueof thesecurities andother obligationsof
UBS Group AG or those subsidiaries on a standalone basis.
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Market, credit and macroeconomic risks
Performance in the financial services industry is affected by market conditions and the macroeconomic climate
Ourbusinessesaremateriallyaffectedbymarketandmacroeconomicconditions.Amarketdownturnandweak
macroeconomic conditionscan beprecipitated bya numberof factors,including geopoliticalevents, suchas international
armed conflicts,war,or actsof terrorism,the impositionof sanctions,global tradeor globalsupply chaindisruptions,
includingenergyshortagesandfoodinsecurity,changesinmonetaryorfiscalpolicy,changesintradepoliciesor
international tradedisputes, significantinflationary ordeflationary pricechanges, disruptionsin oneor moreconcentrated
economicsectors,naturaldisasters,pandemicsorlocalandregionalcivilunrest.Suchdevelopmentscanhave
unpredictable and destabilizing effects.
Adverse changes in interest rates, credit spreads, securities prices, market volatility and liquidity, foreign exchange rates,
commodity prices, and other market fluctuations,as well as changes in investorsentiment, can affect our earnings and
ultimately ourfinancial andcapital positions.As financialmarkets areglobal andhighly interconnected,local andregional
eventscanhavewidespreadeffectswellbeyondthecountriesinwhichtheyoccur.Anyofthesedevelopmentsmay
adversely affect our business or financial results.
In periodsof significantmarket volatility,our businessesmay experiencea decreasein clientactivity levelsand market
volumes, whichwould adverselyaffect ourability togenerate transactionfees andcommissions, particularlyin Global
Wealth Managementand theInvestment Bank.A marketdownturn wouldlikely reducethe volumeand valuationof
assets that we manage on behalf of clients, which would reduce recurringfee income that is charged based on invested
assets, primarily in Global Wealth Management and Asset Management. Such a downturn could also cause a decline in
the value ofassets that weown and accountfor as investmentsor trading positions.In addition, reducedmarket liquidity
or volatilitymay limittrading opportunitiesand thereforemay reducetransaction-based incomeand mayalso impede
our ability to manage risks.
Health emergencies, including pandemics and measures takenby governmental authorities to manage them, may have
effectssuchaslabormarketdisplacements, supplychain disruptions,andinflationarypressures,andadversely affect
globalandregionaleconomicconditions,resultingincontractionintheglobaleconomy,substantialvolatilityinthe
financial markets, crises in markets for goods andservices, disruptions in real estate markets, increasedunemployment,
increasedcreditandcounterpartyrisk,andoperationalchallenges,aswesawwiththeCOVID-19pandemic.Such
economic or marketdisruptions, includinginflationary pressures, maylead to reducedlevels of clientactivity and demand
forourproductsandservices,increasedutilizationoflendingcommitments,significantlyincreasedclientdefaults,
continuedandincreasingcreditandvaluation lossesin ourloanportfolios,loan commitmentsandotherassets, and
impairments of other financial assets.
Geopolitical events:
US – China tensions, conflict in the Middle East,the continuing Russia–Ukraine war, as well as other
geopolitical eventsmay havesignificant impactson globalmarkets, exacerbateglobal inflationarypressures andslow
globalgrowth.Inaddition,theongoingconflictsandothereventsmaycontinuetocausesignificantpopulation
displacement, and leadto shortages ofvital commodities,including energy shortagesor significantly higherenergy prices
and food insecurityoutside the areasimmediately involvedin armed conflict.Governmental responsesto armed conflicts,
including, with respectto theRussia–Ukraine war, coordinatedsuccessive setsof sanctionson Russiaand Belarus, and
Russian andBelarusian entitiesand nationals,and theuncertainty asto whetherthe ongoingconflicts willwiden and
intensify, maycontinue tohave significantadverse effectson themarket andmacroeconomic conditions,including in
ways that cannot beanticipated. If individual countriesimpose restrictions on cross-borderpayments or trade, orother
exchangeorcapitalcontrols,orchangetheircurrency,wecouldsufferadverseeffectsonourbusiness,lossesfrom
enforced default by counterparties, be unable to access our own assets or be unable to effectively manage our risks.
We couldbe materiallyaffected ifa crisisdevelops, regionallyor globally,as aresult ofdisruptions inmarkets dueto
macroeconomic or political developments, trade restrictions, or the failure of a major market participant. Over time, our
strategic planshave becomemore heavilydependent onour abilityto generategrowth andrevenue inemerging markets,
including China, causing us to be more exposed to the risks associated with such markets.
Global Wealth Management derives revenues from all the principal regions but has a greater concentration in Asia than
many peers and asubstantial presence in the US,unlike many European peers. TheInvestment Bank’s business is more
heavily weighted to Europe and Asia thanour peers, while its derivatives businessis more heavily weighted to structured
productsforwealthmanagementclients,inparticularwithEuropeanandAsianunderlyings.Ourperformancemay
therefore be more affected by political, economic and marketdevelopments in these regions and businesses than some
other financial service providers.
The extent to which ongoing conflicts, current inflationary pressures and related adverse economicconditions affect our
businesses, results of operations and financialcondition, as well as ourregulatory capital and liquidity ratios, willdepend
on futuredevelopments, includingthe effectsof thecurrent conditionson ourclients, counterparties,employees and
third-party service providers.
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Our strategy, business model and environment | Risk factors57
Our credit risk exposure to clients, trading counterparties and other financial institutions would increase under adverse
or other economic conditions
Credit risk is an integral part of many of our activities, including lending, underwriting and derivatives activities. Adverse
economic or market conditions, or the imposition of sanctions or other restrictions on clients, counterparties or financial
institutions, may lead toimpairments and defaults on thesecredit exposures. Lossesmay be exacerbated by declinesin
the valueof collateralsecuring loansand otherexposures. Inour primebrokerage, securitiesfinance andLombard lending
businesses, weextend substantialamounts ofcredit againstsecurities collateralthe valueor liquidityof whichmay decline
rapidly.Market closuresand theimposition ofexchange controls,sanctions orother measuresmay limitour abilityto
settle existing transactions orto realize oncollateral, which may resultin unexpected increasesin exposures. OurSwiss
mortgage and corporate lending portfolios area large part of ouroverall lending. We aretherefore exposed to therisk
of adverse economic developments in Switzerland, including property valuations inthe housing market, the strength of
the Swissfranc andits effecton Swissexports, lowor negativeinterest ratesapplied bythe SwissNational Bank,economic
conditions within theEurozone or theEU, and theevolution of agreementsbetween Switzerlandand the EUor European
EconomicArea,whichrepresentSwitzerland’slargestexportmarket.Althoughwebelievethisportfolioisprudently
managed, we could nevertheless be exposed to losses if a substantial deterioration in the Swissreal estate market were
to occur.
As we experienced in 2020, under the IFRS 9 expected credit loss (ECL)regime, credit loss expenses may increase rapidly
at the onset of an economic downturnas a result of higher levels ofcredit impairments (stage 3), as well as higherECL
from stages 1and 2.Substantial increasesin ECLcould exceedexpected lossfor regulatorycapital purposesand adversely
affect our common equity tier 1 (CET1) capital and regulatory capital ratios.
Interest rate trends and changes could negatively affect our financial results
UBS’s businessesare sensitiveto changesin interestrate trends.A prolongedperiod oflow ornegative interestrates,
particularly in Switzerland andthe Eurozone, adversely affectedthe net interestincome generated by UBS’sPersonal &
Corporate Bankingand GlobalWealth Managementbusinesses priorto 2022.The returnto azero policyrate bythe
Swiss National Bank in2025 has and, UBS expects,will continue to adverselyaffect our net interest income. Actionsthat
UBS took in the 2022 period to mitigate adverse effects on income, such as the introduction of selective deposit fees or
minimum lending rates, contributed to outflows of customer deposits, net new money outflows and a declining market
share in its Swiss lending business.
Higher interestrates generallybenefit UBS’snet interestincome. Wheninterest ratesincrease substantially,returns on
alternativestodeposits,suchasreturnsonmoneymarketfunds,mayincreaserelativetodepositrates,leadingto
outflows of customer deposits and shifts of deposits from lower-interest account types to higher interest products, such
as savings and certificates of deposit. Customer deposit outflows couldrequire UBS to obtain alternative funding, which
would likely be more costly than customer deposits.
Our shareholders’ equity and capital are also affected by changes in interest rates.
Currency
fluctuation may have an adverse effect on our profits, balance sheet and regulatory capital
Wearesubjecttocurrencyfluctuationrisksasasubstantialportionofourassetsandliabilitiesaredenominatedin
currencies other than our Group presentation currency, the US dollar. In order to hedge our CET1 capitalratio, our CET1
capital must have foreigncurrency exposure, which leadsto currency sensitivity.As a consequence, it isnot possible to
simultaneously fully hedge both CET1 capital and the CET1 capitalratio. Accordingly, changes in foreign exchange rates
may adversely affect our profits,balance sheet, and capital, leverage and liquidity coverageratios. During 2025, the US
dollar materiallydepreciated againstother majorcurrencies, includingthe Swissfranc andthe euro.This depreciation
resulted in an increaseof the US dollar valueof assets denominated in othercurrencies reflected on ourbalance sheet,
increasing our leverage ratio denominator.
Regulatory and legal risks
Material legal and regulatory risks arise in the conduct of our business
As a globalfinancial services firmoperating in morethan 50 countries,we are subjectto many differentlegal, tax and
regulatory regimes, includingextensive regulatory oversight,and are exposedto significant liability risk.We are subject
to a large numberof claims, disputes,legal proceedings and governmentinvestigations, and weexpect that ourongoing
business activities will continue to give rise to such matters inthe future. In addition, UBS inherited claims against Credit
Suisse entities as part ofthe acquisition, including matters thatmay be material to theoperating results of the combined
Group. Theextent ofour financialexposure tothese andother mattersis materialand couldsubstantially exceedthe
level ofprovisions thatwe haveestablished. Wearenot ableto predictthe financialand non-financialconsequences
these matters may have when resolved.
We may be subject to adverse preliminary determinationsor court decisions that may negatively affect publicperception
and ourreputation, resultin prudentialactions fromregulators, andcause usto recordadditional provisionsfor such
matters even when webelieve we have substantialdefenses and expect toultimately achieve a morefavorable outcome.
This risk isillustrated by theaward of aggregatepenalties and damagesof EUR 4.5bn againstUBS by thecourt of first
instance inFrance. Thisaward wasreduced toan aggregateof EUR 1.8bnby theCourt ofAppeal, and,in afurther
appeal, the French Supreme Court referred the case backto the Paris Court of Appeal to reconsider the amountafter a
newtrial.Ultimately, thecase wasresolvedin September2025and UBSAG agreedtopayafineofEUR 730mand
EUR 105m in civil damages to the French State.
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Litigation, regulatoryand similarmatters mayalsoresult innon-monetary penaltiesand consequences.Among other
things,aguiltypleato,orconvictionof,acrime(includingasaresultofterminationoftheDeferredProsecution
Agreement CreditSuisse enteredinto withthe USDepartment ofJustice in2021 toresolve itsMozambique matter)could
have material consequences for UBS.
Resolution of regulatory proceedings has required usto obtain waivers of regulatory disqualifications tomaintain certain
operations, may entitle regulatoryauthorities to limit, suspendor terminate licenses andregulatory authorizations, and
may permit financial market utilities to limit, suspendor terminate our participation in them. UBS and CreditSuisse have
each required waivers or exemptions in order to continue to act as investment manager to pension plans and registered
investment companiesin theUS, amongother things;failure toobtain suchwaivers, orany limitation,suspension or
termination oflicenses, authorizationsor participationsarising froma disqualifyingevent, couldhave materialadverse
consequences for us.
Our settlementswith governmentalauthorities inconnection withforeign exchange,LIBOR andother benchmarkinterest
rates starklyillustrate thesignificantly increasedlevel offinancial andreputational risknow associatedwith regulatory
mattersinmajorjurisdictions.Inconnectionwithinvestigations relatedtoLIBORandotherbenchmarkrates,andto
foreign exchangeand preciousmetals, verylarge finesand disgorgementamounts wereassessed againstus, andwe
were required to enter guilty pleas despite our full cooperation with the authorities in the investigations and despite our
receipt of conditional leniency or conditional immunity from anti-trust authorities in anumber of jurisdictions, including
the US and Switzerland.
For anumber ofyears, wehave been,and wecontinue tobe, subjectto avery highlevel ofregulatory scrutiny.We
believe we have remediatedthe deficiencies that ledto significant losses inthe past and madesubstantial changes in our
controlsandconductriskframeworkstoaddresstheissueshighlighted bypastregulatoryresolutions.Wehavealso
undertaken extensive efforts to implement new regulatory requirements and meet heightened supervisory expectations.
Prior toits acquisitionby UBS,Credit Suissewas alsosubject toa highlevel ofregulatory scrutinyand hadsignificant
regulatoryandotherremediationprogramstoaddressidentifiedissues,includingasaresultoftheArchegos,
Mozambique,supplychainfinanceandcross-bordertaxmatters.AspartoftheintegrationofCreditSuisse,UBSis
addressing these mattersand will likelyremain under additionalregulatory scrutiny untilthe integration issubstantially
completed.
Credit Suisse andUBS have becomethe target oflawsuits, and maybecome the targetof further litigation,in connection
with the merger transaction or theregulatory and other actions taken inconnection with the merger transaction, allof
whichcouldresultinsubstantialcosts.Sincethecloseoftheacquisition,variouslitigationclaimshavebeenlodged
against UBSunder Swissmerger lawalleging thatCredit SuisseGroup AGshareholders receiveddisadvantaged treatment
in theacquisition. Inaddition, numerouscases havebeen lodgedagainst theSwiss FinancialMarket SupervisoryAuthority
(FINMA) in respect of the write-down of the Credit SuisseGroup’s additional tier 1 (AT1) bonds ordered by FINMA. UBS
GroupAG,as thesuccessor toCredit SuisseGroupAG,isapartytotheproceedings. Thecumulative effectsofthe
litigations to whichUBS has succeededand the claimsrelated to theacquisition and thecircumstances surrounding it,
may have material adverse consequences for the combined Group.
We continue tobe in activedialogue with regulatorsconcerning the actionswe are takingto improve ouroperational
risk management, risk control, anti-money-laundering, data management and other frameworks, and otherwise seekto
meet supervisory expectations, but there can be noassurance that our efforts will have the desiredeffects. As a result of
this history, our level of risk with respect to regulatory enforcement may be greater than that of some of our peers.
If we experience severe financial difficulties, FINMA has the power to open restructuring or liquidation proceedings or
impose protective measures in relation to UBS Group AG, UBS AG or UBS Switzerland AG, and such proceedings or
measures may have a material adverse effect on our shareholders and creditors
Under the SwissBanking Act, FINMAis able toexercise broadstatutory powers withrespect to Swissbanks and Swiss
parentcompaniesoffinancialgroups,suchasUBSGroupAG,UBSAGandUBS Switzerland AG,ifthereisjustified
concern that anentity is over-indebted,has serious liquidityproblems or,after the expirationof any relevantdeadline,
nolongerfulfillscapitaladequacyrequirements.Suchpowersincludeorderingprotectivemeasures,instituting
restructuringproceedings(andexercisinganySwissresolutionpowersinconnectiontherewith),andinstituting
liquidation proceedings,all ofwhich may havea material adverseeffect onshareholders andcreditors ormay prevent
UBS Group AG, UBS AG or UBS Switzerland AG from paying dividends or making payments on debt obligations.
UBS wouldhave limitedability tochallenge anysuch protectivemeasures, andcreditors andshareholders wouldalso
have limited abilityunder Swiss lawor in Swisscourts to reject them,seek their suspension,or challenge theirimposition,
including measures that require or result in the deferment of payments.
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If restructuring proceedingsare opened withrespect to UBSGroup AG, UBSAG or UBSSwitzerland AG theresolution
powers that FINMA mayexercise include the powerto: (i) transfer all orsome of the assets,debt and other liabilities,and
contractsoftheentitysubject toproceedings toanotherentity;(ii) stayforamaximum oftwobusinessdays (a) the
termination of, orthe exercise ofrights to terminate,netting rights, (b) rightsto enforce ordispose of certaintypes of
collateralor(c) rightstotransferclaims, liabilitiesorcertain collateral,undercontractstowhichtheentitysubject to
proceedings isa party; and(iii) partially or fullywrite downthe equity capitaland regulatorycapital instruments,including
UBS Group seniordebt and additionaltier 1 capitalinstruments, and, ifsuch regulatory capitalis fullywritten down,write
down or convert into equity the other debt instruments of the entity subject to proceedings. Shareholders and creditors
would haveno rightto reject,or toseek thesuspension of,any restructuringplan pursuantto whichsuch resolution
powers are exercised. They wouldhave only limited rights tochallenge any decision to exerciseresolution powers or to
have that decision reviewed by a judicial or administrative process or otherwise.
Upon fullor partialwrite-down ofthe equityand regulatorycapital instrumentsof theentity subjectto restructuring
proceedings, the relevant shareholders and creditors would receive no payment in respect of the equity and debt that is
written down,thewrite-down wouldbe permanent,andthe investorswould likelynot,at suchtimeor atanytime
thereafter,receive any sharesor other participation rights,or be entitled toany write-up or anyother compensation in
the event of a potential subsequent recovery of the debtor.If FINMA orders the conversion of debt of the entity subject
to restructuring proceedings into equity,the securities received by the investors may be worth significantly less than the
original debt and mayhave a significantly different riskprofile. In addition, creditors receivingequity would be effectively
subordinated to all creditorsof the restructured entity inthe event of asubsequent winding up,liquidation or dissolution
of the restructured entity,which would increase the risk that investors would lose all or some of their investment.
FINMA has significant discretion in the exercise ofits powers in connection withrestructuring proceedings. Furthermore,
certain categories of debtobligations, such as certaintypes of deposits, are subjectto preferential treatment. As a result,
holders of obligations ofan entity subject toa Swiss restructuring proceedingmay have their obligations writtendown
or convertedinto equityeven thoughobligations rankingon parwith suchobligations arenot writtendown orconverted.
Developments in sustainability, climate, environmental and social standards and regulations may affect our business and
impact our ability to fully realize our goals
Wearesubjecttoseparate,andsometimesconflicting,ESGregulationsandregulatorexpectationsinthevarious
jurisdictions in which UBS operates. For example, in certain jurisdictions, we are required to set diversity targets or other
ESG-related goals that areconsidered illegal or contraryto regulatory expectations inother jurisdictions. Inaddition, with
respect to decarbonization mandates, there is substantial uncertainty as to the scope of actions that may be required of
us, governments and others to achieve the goals we have set, and many of our goals and objectives are only achievable
with a combinationof government andprivate action. Nationaland international standardsand expectations, industry
andscientificpractices,regulatorytaxonomies,anddisclosureobligationsaddressingthesemattersarerelatively
immatureandarerapidlyevolving.Inaddition,therearesignificantlimitationsinthedataavailabletomeasureour
climate and other goals. Although we have defined and disclosed our goals based on the standardsexisting at the time
ofdisclosure,therecanbenoassurance(i) thatthevariousESGregulatoryanddisclosureregimesunderwhichwe
operatewillnotcomeintofurtherconflictwithoneanother,(ii) thatthecurrentstandardswillnotbeinterpreted
differently than our understanding or change in a manner that substantially increases the cost oreffort for us to achieve
such goals or (iii) thatadditional data or methods,whether voluntary or required byregulation, may substantially change
our calculation of ourgoals and ambitions. Itis possible that suchgoals may proveto be considerably moredifficult or
evenimpossibletoachieve. Theevolvingstandardsmayalsorequireustosubstantially changethestated goalsand
ambitions. If we are not able to achievethe goals we have set, or can only do soat significant expense to our business,
wemayfailtomeetregulatoryexpectations,incurdamagetoourreputationorbeexposedtoanincreasedriskof
litigation or other adverse action.
While ESG regulatoryregimes and internationalstandards are beingdeveloped, including torequire consideration ofESG
risks in investment decisions, some jurisdictions, notably in the US, havedeveloped rules restricting the consideration of
ESG factors ininvestment and businessdecisions. Underthese anti-ESG rules,companies that areperceived as boycotting
or discriminating againstcertain industries maybe restricted from doingbusiness with certain governmentalentities. Our
businessesmaybeadverselyaffectedifweareconsideredasdiscriminatingagainstcompaniesbasedonESG
considerations, or if further anti-ESG rules are developed or broadened.
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Our financial results may be negatively affected by changes to assumptions and valuations, as well as changes to
accounting standards
WeprepareourconsolidatedfinancialstatementsinaccordancewithIFRSAccountingStandards.Theapplicationof
these accountingstandards requires theuse ofjudgment basedon estimatesand assumptionsthat mayinvolve significant
uncertainty at thetime theyare made.This is thecase, forexample, with respectto themeasurement offair value of
financialinstruments,therecognitionofdeferredtaxassets(DTAs),theassessmentoftheimpairmentofgoodwill,
expectedcreditlossesandestimationofprovisionsforlitigation,regulatoryandsimilarmatters.Suchjudgments,
including the underlying estimates and assumptions,which encompass historical experience, expectations ofthe future
and otherfactors, areregularly evaluatedto determinetheir continuingrelevance basedon currentconditions. Using
different assumptions could cause the reportedresults to differ. Changes in assumptions, or failure to make thechanges
necessary to reflect evolvingmarket conditions, may have asignificant effect on thefinancial statements in the periods
whenchangesoccur.Estimatesofprovisionsmaybesubjecttoawiderangeofpotentialoutcomesandsignificant
uncertainty.For example, the broad range of potential outcomes inour legal proceedings in France and in anumber of
CreditSuisse’slegalproceedingsincreasetheuncertaintyassociatedwithassessingtheappropriateprovision.Ifthe
estimates and assumptionsin future periodsdeviate from thecurrent outlook, ourfinancial results mayalso be negatively
affected.
Changes toIFRS AccountingStandards orinterpretations thereofmay causefuture reportedresults andfinancial positions
to differ fromcurrent expectations, orhistorical results todiffer from thosepreviously reported dueto the adoptionof
accountingstandardsonaretrospectivebasis.Suchchangesmayalsoaffectourregulatorycapitalandratios.For
example, the introductionof the ECLregime under IFRS 9in 2018 fundamentally changedhow credit riskarising from
loans, loan commitments, guarantees and certain revocable facilities is accountedfor. Under the ECL regime, credit loss
expenses may increaserapidly at theonset of aneconomic downturn asa result ofhigher levels ofcredit impairments
(stage 3), as well as higher ECLfrom stages 1 and 2, only graduallydiminishing once the economicoutlook improves. As
we observedin 2020,this effectmay bemore pronouncedin adeteriorating economicenvironment. Substantialincreases
in ECL couldexceed expected lossfor regulatory capitalpurposes and adverselyaffect our CET1capital and regulatory
capital ratios.
We may be unable to maintain our capital strength
Capital strengthenables ustogrow ourbusinesses andabsorbincreases inregulatory andcapital requirements.Our
ability tomaintain ourcapital ratiosis subjectto numerousrisks, includingthe financialresults ofour businesses,the
effect of changesto capital standards,methodologies and interpretationsthat may adverselyaffect the calculationof our
capital ratios,the impositionof riskadd-ons orcapital buffers,and theapplication ofadditional capital,liquidity and
similar requirements to subsidiaries. Our capital andleverage ratios are driven primarilyby RWA, LRD and eligible capital,
all of whichmay fluctuate basedon a numberof factors, someof which areoutside of ourcontrol. Theresults ofour
businesses may beadversely affected byevents arising fromother risk factorsdescribed herein. Insome cases, suchas
litigation and regulatoryrisk and operationalrisk events, lossesmay be suddenand large. Theserisks could reducethe
amount ofcapital availablefor returnto shareholdersand hinderour abilityto achieveour capitalreturns targetof a
progressive cash dividend coupled with a share repurchase program.
Our eligible capitalmay be reducedby losses recognizedwithin net profitor other comprehensiveincome. Eligible capital
may alsobe reducedfor other reasons,including acquisitions thatchange thelevel of goodwill,changes intemporary
differencesrelatedtoDTAsincludedincapital,adverse currencymovementsaffecting thevalue ofequity,prudential
adjustments that may be required due to the valuationuncertainty associated with certain types of positions,changes in
regulatory interpretationson theinclusion orexclusion ofitems contributingto ourshareholders
’
equity inregulatory
capital, andchanges inthe valueof certainpension fundassets and liabilitiesor inthe interestrate andother assumptions
used to calculate the changes in our net defined benefit obligation recognized in other comprehensive income.
RWAaredriven byourbusiness activities,bychanges intherisk profileofourexposures,by changesin ourforeign
currency exposures and foreign exchange rates, and by regulation. For instance, substantial market volatility, a widening
of credit spreads, adverse currencymovements, increased counterparty risk, deterioration inthe economic environment
or increased operationalrisk could resultin anincrease in RWA.Changes inthe calculation ofRWA, the impositionof
additional supplementalRWA chargesor multipliersapplied tocertain exposuresand othermethodology changes,as
well asthe finalizationof theBasel III frameworkand FundamentalReview ofthe TradingBook promulgatedby theBCBS,
which are expected to affect our RWA.
Theleverageratioisabalancesheet-drivenmeasureandthereforelimitsbalancesheet-intensiveactivities,suchas
lending, morethan activitiesthat areless balancesheet intensive,and itmay constrainour businesseven ifwe satisfy
otherrisk-basedcapital requirements.OurLRDis drivenby, amongotherthings, thelevel ofclientactivity, including
deposits and loans, foreignexchange rates, interest rates,other market factors andchanges in required liquidity.Many
of these factors are wholly or partly outside of our control.
Annual Report 2025 |
Our strategy, business model and environment | Risk factors61
The effect of taxes on our financial results is significantly influenced by changes in tax law, or reinterpretations of
existing laws by courts or tax authorities, reassessments of our deferred tax assets and operating losses of certain
entities with no associated tax benefit
Our effectivetaxrate ishighly sensitiveto ourperformance, ourexpectation offutureprofitabilityand anypotential
increases ordecreases in statutorytax rates, suchas any potentialincrease or decreasein the USfederal corporate tax
rate, and changesin the interpretationof tax law. Furthermore,based on prioryears’ tax lossesand deductible temporary
differences, we haverecognized DTAs reflecting theprobable recoverable levelbased onfuture taxableprofit as informed
by our business plans. If our performance is expected to produce diminished taxable profit in future years, particularly in
the US,we maybe requiredto writedown allor aportion ofthe currentlyrecognized DTAs throughthe incomestatement
in excess of anticipated amortization. This would have the effect of increasing our effective tax rate in the year in which
any write-downsaretaken. Conversely,if weexpect theperformance ofentities inwhich wehave unrecognizedtax
losses to improve, particularlyin the US orthe UK, we couldpotentially recognize additional DTAs.The effect ofdoing
so would beto reduce oureffective tax ratein years inwhich additionalDTAs are recognized andto increase oureffective
tax rate in future years. Oureffective tax rate is alsosensitive to any future reductionsin statutory tax rates, particularly
in the US, which would cause the expected futuretax benefit from items such as tax loss carry-forwardsin the affected
locations to diminish invalue. This, in turn,would cause awrite-down of the associatedDTAs. Conversely,an increase
in US corporate tax rates would result in an increase in the Group’s recognized DTAs.
Changes intax lawmay materiallyaffect oureffective taxrate and,in some cases,may substantiallyaffect theprofitability
of certain activities. In addition, statutory and regulatory changes, as wellas changes to the way in which courts and tax
authorities interpret taxlaws, including assertionsthat we arerequired to paytaxes in ajurisdiction as aresult of activities
connected to that jurisdiction constitutinga permanent establishment or similartheory, and changes inour assessment
ofuncertaintaxpositions,couldcausetheamountoftaxesweultimatelypaytomateriallydifferfromtheamount
accrued.
We may incur material future tax liabilities in connection with the acquisition of the Credit Suisse Group
Inthepast,theCreditSuisseGrouphasrecordedsignificantimpairmentsofthetaxvalueofitsparticipationsin
subsidiaries belowtheir taxacquisition costs.As aresult ofthe acquisitionof theCredit SuisseGroup, taxacquisition
costs of participations held by Credit Suisse Group AG and its subsidiaries have been transferred to the UBS Group. UBS
Group AGand itssubsidiaries maybecome subject toadditional Swisstax onfuture reversalsof suchimpairments for
Swiss taxpurposes. Reversalsof priorimpairments mayoccur tothe extentthat thenet assetvalue ofthe previously
impaired subsidiary increases, e.g.as a resultof an increasein retained earnings. Although itis difficult to quantifythis
additional futuretax exposure,as variouspotential mitigants(e.g. transfersof assetsand liabilities,business activities,
subsidiaryinvestments,aswellasotherrestructuringmeasureswithinthecombinedGroupinthecourseofthe
integration) exist, it may be material.
Liquidity and funding risk
Liquidity and funding management are critical to UBS’s ongoing performance
The viabilityof ourbusiness dependson theavailability offunding sources,and oursuccess dependson ourability to
obtain fundingat times,in amounts,for tenorsand atrates thatenable usto efficientlysupport ourasset basein all
market conditions. Our funding sourceshave generally been stable, butcould change in the futurebecause of, among
other things, generalmarket disruptions orwidening creditspreads, which couldalso influence thecost of funding.A
substantial part ofour liquidity andfunding requirements are metusing short-term unsecuredfunding sources, including
retail and wholesale deposits and theregular issuance of money market securities. Achange in the availability of short-
term funding could occur quickly.
Reductions in ourcredit ratings mayadversely affect themarket value ofthe securities andother obligations andincrease
our fundingcosts, inparticular withregard to fundingfrom wholesale unsecuredsources, and couldaffect the availability
of certain kinds offunding. In addition, asexperienced in connection withthe Moody’s Investors ServiceLtd. downgrade
of UBS AG’s long-term debt rating in June 2012, rating downgrades can require us to post additional collateral or make
additionalcashpaymentsundertradingagreements.Ourcreditratings,togetherwithourcapitalstrengthand
reputation, also contributeto maintainingclient and counterpartyconfidence, andit is possiblethat rating changescould
influence the performance of someof our businesses. The acquisitionof the Credit Suisse Group has elevatedthese risks
andmaycause theseriskstointensify.UponthecloseoftheacquisitioninJune2023,FitchRatingsIrelandLimited
downgraded the Long-TermIssuer Default Ratings (IDRs) of UBS Group AG to“A” from “A+” and of UBS AG to“A+”
from “AA–“. Fitch Ratings Ltd. also upgraded Credit Suisse AG’s Long-TermIDR to “A+” from “BBB+”.
The requirementto maintaina liquiditycoverageratio ofhigh-qualityliquidassetsto estimatedstressedshort-termnet cash
outflows,and othersimilarliquidityand fundingrequirements,oblige usto maintainhigh levelsof overallliquidity, limitour
ability to optimizeinterest incomeand expense,make certain linesof business lessattractive andreduce our overallability
to generate profits.The liquidity coverageratio and net stable fundingratio requirements are intendedto ensure that we
are not overly reliant on short-termfunding and that we havesufficient long-termfunding for illiquidassets. The relevant
calculations make assumptionsabout the relative likelihood and amount of outflows of funding and available sources of
additional funding in market-wide andfirm-specific stress situations. In anactual stress situation, however,our funding
outflowscould exceedthe assumedamounts.
Annual Report 2025 |
Financial and operating performance | Accounting and financial reporting62
Financial and operating
performance
Management report
Accounting and financial reporting
Critical accounting estimates and judgments
InpreparingourfinancialstatementsinaccordancewithIFRSAccountingStandards,asissuedbytheInternational
AccountingStandardsBoard(theIASB),weapplyjudgmentandmakeestimatesandassumptionsthatmayinvolve
significantuncertaintyatthetimetheyaremade.Weregularlyreassessthoseestimatesandassumptions,which
encompass historicalexperience, expectationsof thefuture andother pertinentfactors, todetermine theircontinuing
relevance based on current conditions, and update them as necessary.Changes in estimates and assumptions may have
significant effectson thefinancial statements.Furthermore,actual resultsmay differsignificantly fromour estimates,
which could result in significant losses to the Group, beyond what we expected or provided for.
Keyareasinvolvingahighdegreeofjudgmentandareaswhereestimatesandassumptionsaresignificanttothe
consolidated financial statements include the following(the Notes referred to below are in“Notes to the UBS Group AG
consolidated financial statements” in the “Consolidated financial statements” section of this report):
–
expected credit loss measurement(refer to “Note 1 Summaryof material accounting policies,item 2g Allowances and
provisions for expected credit losses“ and “Note 19 Expected credit loss measurement”);
–
fairvaluemeasurement(referto“Note 1Summaryofmaterialaccountingpolicies,item2fFairvalueoffinancial
instruments“ and “Note 20 Fair value measurement”);
–
income taxes (referto “Note 1 Summaryof material accountingpolicies, item 6Income taxes“ and“Note 8 Income
taxes”);
–
provisions and contingent liabilities (refer to “Note 1 Summaryof material accounting policies, item 10 Provisionsand
contingent liabilities”and “Note 17 Provisions and contingent liabilities”); and
–
goodwill (refer to “Note 1 Summary of materialaccounting policies, item 9 Goodwill andother separately identifiable
intangible assets“ and “Note 12 Goodwill and intangible assets”).
›
Refer to the “Risk factors” section of this report for more information
Accounting and financial reporting changes in 2025
Disclosures about Uncertainties in the Financial statements
In November2025, theIASB issuedillustrative examples
Disclosures aboutUncertainties inthe FinancialStatements
,
using
climate-related examples to illustratehow requirements in IFRS AccountingStandards are applied to report theeffects of
uncertainties in the financial statements.The guidance provided throughthese examples is consistent withthe manner
in which UBS preparesits financial statements.
Accounting and financial reporting changes after 2025
IFRS 18,
Presentation and Disclosure in Financial Statements
InApril2024,theIASBissuedanewstandard,IFRS 18,
PresentationandDisclosureinFinancialStatements
,which
replaces IAS 1,
Presentation of Financial Statements
and is effective from 1 January 2027. The main changes introduced
byIFRS 18relatetothestructureofincomestatements,newdisclosurerequirementsformanagementperformance
measures and enhanced guidance on aggregationand disaggregation of information. UBSis assessing the impact of the
new requirements on its reporting but expects it to be limited.
Amendments to IFRS 9,
Financial Instruments
, and IFRS 7,
Financial Instruments: Disclosures
InMay2024,theIASBissued
AmendmentstotheClassificationandMeasurementofFinancialInstruments–
Amendments toIFRS 9 andIFRS 7
(the Amendments).The Amendmentsrelate toclassification offinancial assetsand
derecognition offinancial instruments, includingintroduction of anaccounting policy electionto derecognizefinancial
liabilitiessettledthroughelectronictransfersystemsbeforethesettlementdate,ifcertainconditionsaremet.The
Amendmentsalsointroducenewdisclosurerequirementsforfinancialinstruments withcontractualtermsthatcould
change thetiming oramount ofcontractual cashflows. TheAmendments areeffective from1 January 2026and will
have limited impact on UBS’s financial statements.
Annual Report 2025 |
Financial and operating performance | Group performance63
Group performance
Income statement
For the year ended
% change from
USD m
31.12.25
31.12.24
31.12.23
31.12.24
Net interest income
7,747
7,108
7,297
9
Other net income from financial instruments measured at fair value through profit or loss
14,011
14,690
11,583
(5)
Net fee and commission income
27,912
26,138
21,570
7
Other income
(96)
675
384
Total revenues
49,573
48,611
40,834
2
Negative goodwill
27,264
Credit loss expense / (release)
524
551
1,037
(5)
Personnel expenses
27,861
27,318
24,899
2
General and administrative expenses
8,807
10,124
10,156
(13)
Depreciation, amortization and impairment of non-financial assets
3,529
3,798
3,750
(7)
Operating expenses
40,197
41,239
38,806
(3)
Operating profit / (loss) before tax
8,853
6,821
28,255
30
Tax expense / (benefit)
1,056
1,675
873
(37)
Net profit / (loss)
7,797
5,146
27,382
52
Net profit / (loss) attributable to non-controlling interests
30
60
16
(50)
Net profit / (loss) attributable to shareholders
7,767
5,085
27,366
53
Comprehensive income
Total comprehensive income
12,045
3,401
28,374
254
Total comprehensive income attributable to non-controlling interests
48
13
22
260
Total comprehensive income attributable to shareholders
11,998
3,388
28,352
254
Annual Report 2025 |
Financial and operating performance | Group performance64
Selected financial information of our business divisions and Group Items
For the year ended 31.12.25
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
25,960
9,154
3,156
12,340
154
(1,190)
49,573
of which: PPA effects and other integration items
1
624
1,016
570
2
4
(323)
3
1,892
of which: loss related to an investment in an associate
(62)
(168)
(230)
of which: items related to the Swisscard transactions
4
64
64
Total revenues (underlying)
25,398
8,242
3,156
11,769
150
(867)
47,848
Credit loss expense / (release)
48
339
1
133
(1)
2
524
Operating expenses as reported
20,705
6,318
2,436
9,387
1,353
(2)
40,197
of which: integration-related expenses and PPA effects
5
1,675
1,093
256
463
882
53
4,422
of which: items related to the Swisscard transactions
6
180
180
Operating expenses (underlying)
19,030
5,045
2,179
8,924
472
(56)
35,595
Operating profit / (loss) before tax as reported
5,207
2,497
719
2,819
(1,199)
(1,190)
8,853
Operating profit / (loss) before tax (underlying)
6,320
2,857
975
2,712
(321)
(813)
11,729
For the year ended 31.12.24
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
24,516
9,334
3,182
10,948
1,605
(975)
48,611
of which: PPA effects and other integration items
1
891
1,038
989
(41)
2,877
of which: loss related to an investment in an associate
(21)
(59)
(80)
Total revenues (underlying)
23,646
8,355
3,182
9,958
1,605
(933)
45,814
Credit loss expense / (release)
(16)
404
(1)
97
69
(2)
551
Operating expenses as reported
20,608
5,741
2,663
8,934
3,512
(220)
41,239
of which: integration-related expenses and PPA effects
5
1,807
749
351
717
1,154
(12)
4,766
of which: items related to the Swisscard transactions
7
41
41
Operating expenses (underlying)
18,802
4,951
2,312
8,217
2,359
(208)
36,432
Operating profit / (loss) before tax as reported
3,924
3,189
520
1,917
(1,976)
(752)
6,821
Operating profit / (loss) before tax (underlying)
4,860
3,000
871
1,644
(822)
(723)
8,831
1 Includes accretion of PPA adjustments on financialinstruments and other PPA effects, aswell as temporary and incremental items directly related to theintegration.2 Includes a USD 128m gain from the sale of
a stake in a subsidiary,Credit Suisse Securities (China) Limited.3 Includes a USD 457m net lossfrom the repurchase of legacy Credit Suissedebt instruments, as the repurchaseprice exceeded the amortized-cost
carrying value (the net loss reflects a loss of USD 885m before PPA adjustments,partly offset by a USD 427m gain from the release of PPA adjustments).4 Represents the gain related to UBS’s share of the income
recorded by Swisscard for the sale of the Credit Suisse card portfolios to UBS.5 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of intangibles resulting
from the acquisition ofthe Credit Suisse Group.6 Represents the expenserelated to the payment toSwisscard for the saleof the Credit Suissecard portfolios to UBS.7 Represents the terminationfee paid to
American Express related to the sale of our 50% holding in Swisscard.
Net integration-related expenses, by business division and Group Items
For the year ended
USD m
31.12.25
31.12.24
Global Wealth Management
1,665
1,845
Personal & Corporate Banking
988
654
Asset Management
256
351
Investment Bank
336
1
717
Non-core and Legacy
877
1,154
Group Items
890
2
36
Net integration-related expenses
5,013
4,757
of which: total revenues
705
1,2
104
of which: operating expenses
4,308
4,653
of which: personnel expenses
2,467
2,541
of which: general and administrative expenses
1,498
1,681
of which: depreciation, amortization and impairment of non-financial assets
343
430
1 Includes a USD 128m gain from the sale of a stake in a subsidiary,Credit Suisse Securities (China) Limited.2 Includes an USD 885m loss from the repurchase of legacy Credit Suisse debt instruments, excludinga
partly offsetting gain of USD 427m from the release of PPA adjustments (a net loss of USD 457mwas recognized on retirement of these instruments in 2025).
Underlying results
InadditiontoreportingourresultsinaccordancewithIFRSAccountingStandards,wereportunderlyingresultsthat
exclude items of profit or loss that management believes are not representative of the underlying performance.
In 2025,underlying revenuesexcluded purchaseprice allocation(PPA) effectsand otherintegration itemsof USD 1,892m,
which included a USD 457mnet loss from therepurchase of legacyCredit Suisse debt instrumentsand a USD 128m gain
from the saleof a stakein Credit SuisseSecurities (China) Limited(CSS). PPA effectsmainly consist ofPPA adjustments
on financial instruments measured atamortized cost, including off-balance sheet positions,arising from the acquisition
of theCredit SuisseGroup. Accretionof PPAadjustments onfinancial instrumentsis acceleratedwhen therelated financial
instrumentisderecognizedbeforeitscontractualmaturity.NoadjustmentismadeforaccretionofPPAonfinancial
instruments within Non-core andLegacy, due tothe nature ofits business model.Underlying revenues alsoexcluded a
net loss of USD230m related toan investment inan associate anda USD 64m gainrelated to theSwisscard transactions.
Annual Report 2025 |
Financial and operating performance | Group performance65
In 2025, underlying expenses excluded integration-related expenses and PPA effects of USD 4,422m. Integration-related
expenses are temporary, incremental anddirectly related to the integrationof Credit Suisse into UBS,including costs of
internalstaffandcontractorssubstantiallydedicatedtointegrationactivities,retentionawards,redundancycosts,
incremental expenses from the shortening of useful lives of property, equipment and software, and impairment charges
relatingtotheseassets.Classificationasintegration-relatedexpensesdoesnotaffectthetimingofrecognitionand
measurement ofthose expensesor thepresentation thereofin theincome statement.Underlying operatingexpenses
also excluded a USD 180m expense related to the Swisscard transactions.
Results 2025 vs 2024
In 2025, reported net profit attributable to shareholders increased by USD 2,682m to USD 7,767m. There was a net tax
expense of USD 1,056m in 2025.
Operating profit beforetax increased byUSD 2,032m to USD 8,853m,reflecting a decreasein operating expensesand
an increase in total revenues,as well as lower net creditloss expenses. Total revenues increasedby USD 962m, or 2%, to
USD 49,573m andincluded anincrease fromforeign currencyeffects anda decreaseof USD 985min PPAeffects and
otherintegrationitems.TheincreaseintotalrevenueswasdrivenbyanincreaseofUSD 1,774minnetfeeand
commission income, partly offset by a decrease of USD 771m in other income, mainly reflecting a net loss of USD457m
from therepurchase oflegacy CreditSuisse debtinstruments,and USD 40mlower combinednet interestincome and
other net income from financial instrumentsmeasured at fair value through profitor loss. Operating expenses decreased
by USD 1,042m,or 3%,to USD 40,197m,which includedan increasefrom foreigncurrency effectsand aUSD 344m
decreaseinintegration-relatedexpensesandPPAeffects.Theoveralldecreaseinoperatingexpensesreflected
USD 1,317mlowergeneralandadministrativeexpenses,mainlyreflectingan USD 821mincreaseinnetreleasesof
provisionsandacquisition-relatedcontingentliabilitiesresultingfromlitigation,regulatoryandsimilarmatters,anda
USD 269m decrease in expenses fordepreciation, amortization and impairmentof non-financial assets, partly offsetby a
USD 543m increase inpersonnel expenses. Netcredit loss expenseswere USD 524m, comparedwith USD 551m in2024.
Underlying results 2025 vs 2024
On an underlying basis, profitbefore tax increased by USD 2,898mto USD 11,729m, reflecting a USD 2,034m increase
in underlyingtotal revenuesand anUSD 837m decreasein underlyingoperating expenses,as wellas aUSD 27m decrease
in net credit loss expenses.
Total revenues
Net interest income and other net income from financial instruments measured at fair value through profit or loss
Totalcombined netinterestincome andother netincome fromfinancial instrumentsmeasured atfair valuethrough
profitorlossdecreasedbyUSD 40mtoUSD 21,758mandincludedadecreaseofUSD 341minaccretionimpacts
resulting from PPAadjustments on financial instruments and other PPA effects.
The year-on-year variance was primarily driven by Non-core and Legacy, which reported negative revenues of USD
24m,
compared with positiveUSD
1,163m in 2024,mainly due tolower net gainsfrom position exitsand lower netinterest
income fromsecuritized productand creditportfolios, partlyoffset bylower liquidityand fundingcosts. InPersonal &
Corporate Banking, revenuesdecreased by USD
301m to USD 6,178m,reflecting a decreaseof USD 328m innet interest
income, primarilydue tothe impactof lowercentral bankinterest rateson depositrevenues, partlyoffset bydeposit
pricing measures,positive foreigncurrency effectsand lowerliquidity andfunding costs.Global WealthManagement
revenues decreased by USD 177m to USD 8,854m, mainly reflecting USD340m lower net interest income, primarily due
to a USD 331m decrease in accretion of PPA adjustments on financial instruments and other PPA effects. This was partly
offset by an increaseof USD 163m in transaction-basedincome from foreign exchangeand other intermediary activity,
mainly reflecting higher client activity.
TheaforementioneddecreaseswerelargelyoffsetbyaUSD 1,372mincreaseintheInvestmentBank’srevenuesto
USD
7,536m, mainly drivenby Global Markets.The increase wasmostly due tohigher volatility andincreasedlevels of
client activityin Derivatives& Solutions,as wellas higherclient balancesin PrimeBrokerage withinFinancing. Additionally,
revenues inGroup Itemswere negativeUSD 771m, comparedwith negativeUSD 1,054m in2024, mainlydriven bylower
mark-to-market losses from Group hedging and own debt, including hedge accounting ineffectiveness.
›
Refer to “Note 3 Net interest income and other net income from financial instrumentsmeasured at fair value through profit or
loss” in the “Consolidated financial statements” section of this report for more information
›
Refer to the relevant business division and Group Items commentary in this section formore information about the specific
revenues of each of the business divisions and Group Items
Annual Report 2025 |
Financial and operating performance | Group performance66
Net interest income and other net income from financial instruments measured at fair value through profit or loss
For the year ended
% change from
USD m
31.12.25
31.12.24
31.12.23
31.12.24
Net interest income from financial instruments measured at amortized cost and fair value through other
comprehensive income
1,404
47
3,527
Net interest income from financial instruments measured at fair value through profit or loss and other
6,343
7,061
3,770
(10)
Other net income from financial instruments measured at fair value through profit or loss
14,011
14,690
11,583
(5)
Total
21,758
21,798
18,880
0
Global Wealth Management
8,854
9,031
8,484
(2)
of which: net interest income
7,018
7,358
7,082
(5)
of which: transaction-based income from foreign exchange and other intermediary activity
1
1,836
1,673
1,402
10
Personal & Corporate Banking
6,178
6,479
5,539
(5)
of which: net interest income
5,322
5,650
4,878
(6)
of which: transaction-based income from foreign exchange and other intermediary activity
1
856
829
661
3
Asset Management
(16)
16
(5)
Investment Bank
7,536
6,164
5,055
22
Non-core and Legacy
(24)
1,163
321
Group Items
(771)
(1,054)
(513)
(27)
1 Mainly includes spread-related income in connection with client-driven transactions,foreign currency translation effects and income and expenses from precious metals,which are included in the income statement
line Other net income from financial instrumentsmeasured at fair value through profitor loss. The amountsreported on this line are one componentof Transaction-based incomein the management discussion and
analysis in the “Global Wealth Management” and “Personal & Corporate Banking” sectionsof this report.
Net fee and commission income
Net feeand commissionincome increasedby USD 1,774mto USD 27,912mand includeda decreaseof USD 470min
accretion ofPPAadjustments onfinancial instrumentsand otherPPAeffects, predominantlyin GlobalBanking inthe
Investment Bank.
Fees for portfolio management,investment funds and relatedservices increased by USD 1,470mto USD 19,560m. The
increase was mostly drivenby Global Wealth Management,largely resulting fromhigher average levels offee-generating
assets,primarily frommandates,reflecting positivemarket performanceandnet newfee-generating assetinflows in
2025. These feesalso increased inAsset Management, mainlydriven by higheraverage levels ofinvested assets, primarily
resulting from positive market performance and foreign currency effects, partly offset by ongoing margin compression.
Net brokerage feesincreased by USD 870mto USD 5,094m, drivenby increased volumesin Cash Equitiesin Execution
Services inthe InvestmentBank andhigher levelsof clientactivity in GlobalWealth Management,across all regionsin
both of the aforementioned business divisions.
›
Refer to “Note 4 Net fee and commission income” in the “Consolidated financial statements” section of this reportfor more
information
›
Refer to the relevant business division commentary in this section for further information abouthow components of fee and
commission income are presented within the business division results
Other income
Other income wasnegative USD 96m comparedwith positive USD 675min 2024. Includedin
2025 werenet losses of
USD 574m relatedto repurchasesof UBS’sown debtinstruments, mainlyreflecting anet lossof USD 457mfrom the
repurchase of legacyCredit Suisse debtinstruments, anda net lossof USD 230mrelated to aninvestment inan associate,
compared with a lossof USD 80m in2024. These losseswere partly offset bygains of USD 128mfrom the sale ofa stake
in CSS,USD 97m fromthe saleof SelectPortfolio Servicingand USD 64mfrom theSwisscard transactions.There was
also arelease ofUSD 42m relatedto otherfinancial liabilitiesin GlobalWealth Managementand again ofUSD 33m
from the sale of our wealth managementbusiness in India. Included in 2024 werea USD 135m gain related to the sale
ofourinvestmentinanassociateandUSD 113mnetgainsfromthesaleofnon-strategicbusinessesinAsset
Management.
›
Refer to “Note 5 Other income” in the “Consolidated financial statements” section of this reportfor more information
›
Refer to “Note 28 Changes in organization and acquisitions and disposals of subsidiaries and businesses” in the“Consolidated
financial statements” section of this report for more information about disposalsof subsidiaries and businesses
Annual Report 2025 |
Financial and operating performance | Group performance67
Credit loss expense / release
Totalnetcreditlossexpensesin2025wereUSD 524m,reflectingnetcreditlossexpensesofUSD 6mrelatedto
performingpositionsandnetexpensesofUSD 518moncredit-impairedpositions.Netcreditlossexpenseswere
USD 551m in 2024.
›
Refer to “Note 9 Financial assets at amortized cost and other positions in scope of expected credit loss measurement”and
“Note 19 Expected credit loss measurement” in the “Consolidated financial statements”section of this report for more
information about credit loss expenses / releases
›
Refer to the “Risk factors” section of this report for more information
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Purchased
Total
For the year ended 31.12.25
Global Wealth Management
(12)
60
0
48
Personal & Corporate Banking
1
338
1
339
Asset Management
0
1
0
1
Investment Bank
17
116
0
133
Non-core and Legacy
(2)
0
2
(1)
Group Items
2
0
0
2
Total
6
516
2
524
For the year ended 31.12.24
Global Wealth Management
(60)
41
3
(16)
Personal & Corporate Banking
(63)
487
(21)
404
Asset Management
(1)
0
0
(1)
Investment Bank
56
42
0
97
Non-core and Legacy
(30)
42
57
69
Group Items
(2)
0
0
(2)
Total
(99)
612
39
551
For the year ended 31.12.23
Global Wealth Management
127
27
13
166
Personal & Corporate Banking
271
183
27
482
Asset Management
1
(1)
0
0
Investment Bank
110
78
2
190
Non-core and Legacy
78
91
25
193
Group Items
5
0
0
6
Total
593
378
67
1,037
Operating expenses
Personnel expenses
PersonnelexpensesincreasedbyUSD 543mtoUSD 27,861m,mainlydrivenbyaUSD 564mincreaseinvariable
compensation, primarilydue tohigher accrualsfor performanceawards, reflecting businessperformance,and anincrease
in financialadvisor compensation,resulting fromhigher compensablerevenues. Additionally,there wasan increasein
expenses for post-employment benefit plans, resulting from a one-timepre-tax loss of USD 190m due to the integration
of the Credit Suisse Swiss 1eplan into the Credit Suisse Swiss pensionplan as of 1 January 2027,with an offsetting gain
in othercomprehensive income.Salary expensesdecreased byUSD 274m, primarilyreflecting theimpact ofa smaller
workforce,partly offset by increases due to foreign currency effects.
›
Refer to the “Compensation”section of this report for more information
›
Refer to “Note 6 Personnel expenses”, “Note 25 Post-employment benefit plans” and “Note 26 Employeebenefits: variable
compensation” in the “Consolidated financial statements” section of this report for moreinformation
General and administrative expenses
General and administrativeexpenses decreasedby USD 1,317m toUSD 8,807m, largely dueto an USD 821mincrease
in net releases ofprovisions and acquisition-relatedcontingent liabilities resulting fromlitigation, regulatory and similar
matters,primarilyduetothecompletionofobligationsunderCreditSuisse’sresidentialmortgage-backedsecurities
settlement withthe USDepartment ofJustice andthe resolutionof alegacy matterconcerning cross-borderbusiness
activitiesinFrance.Consulting,legalandauditfeesdecreasedbyUSD 335m,predominantlyduetoadecreasein
integration-related expenses. There were also decreasesof USD 222m in outsourcing costs and USD 139m in real estate
and logistics costs. These decreases were partly offset by a USD 161m increase in technology costs, largely driven by the
recognition of provisions foronerous contracts. In addition,2025 included aUSD 180m expense related tothe Swisscard
transactions, compared with an expense of USD 41m in 2024.
›
Refer to “Note 7 General and administrative expenses” and “Note 17 Provisions and contingentliabilities” in the “Consolidated
financial statements” section of this report for more information
Annual Report 2025 |
Financial and operating performance | Group performance68
Depreciation, amortization and impairment of non-financial assets
Depreciation, amortizationand impairmentof non-financialassets decreasedby USD 269mto USD 3,529m,primarily
reflecting aUSD 204m decreasein depreciationof leasedreal estateas aresult ofhigher levelsof accelerateddepreciation
in2024,drivenbyintegrationactivities.Inaddition,therewasaUSD 35mdecreaseinthedepreciationofITand
communication equipment,mainly drivenby internallygenerated capitalizedsoftware, reflectinga lowercost baseof
software assets.
Operating expenses
For the year ended
% change from
USD m
31.12.25
31.12.24
31.12.23
31.12.24
Personnel expenses
27,861
27,318
24,899
2
of which: salaries
11,904
12,178
10,997
(2)
of which: variable compensation
11,434
10,870
9,845
5
of which: performance awards
4,912
4,456
3,986
10
of which: financial advisors
1
5,654
5,293
4,549
7
of which: other
867
1,121
1,310
(23)
of which: other personnel expenses
2
4,523
4,270
4,058
6
General and administrative expenses
8,807
10,124
10,156
(13)
of which: net expenses / (releases) for litigation, regulatory and similar matters
(949)
(128)
809
641
Depreciation, amortization and impairment of non-financial assets
3,529
3,798
3,750
(7)
Total operating expenses
40,197
41,239
38,806
(3)
1 Financial advisor compensation consists ofcash compensation, determined using aformulaic approach based on production,and deferred awards. Italso includes expenses related to compensationcommitments
with financial advisorsentered intoat the timeof recruitmentthat aresubject tovesting requirements.2 Consists of expensesrelated to contractors,social security,post-employment benefitplans, andother
personnel expenses. Refer to “Note 6 Personnel expenses” in the “Consolidatedfinancial statements” section of this report for more information.
Tax
Income taxexpenses ofUSD 1,056m wererecognized forthe Groupin 2025,representing aneffective taxrate of11.9%,
compared with USD 1,675m for 2024, which represented an effective tax rate of 24.6%.
The income tax expensesfor 2025 included aSwiss tax expenseof USD 920m, whichincluded current taxexpenses of
USD 597m inrespect oftaxable profitsof UBSSwitzerland AGand otherSwiss entitiesand deferredtax expensesof
USD 323m thatprimarily relatedto theamortization ofdeferred taxassets (DTAs)previously recognizedin relationto
deductible temporary differences.
Income tax expensesalso included anet non-Swiss taxexpense of USD 136m,which reflected currenttax expenses of
USD 841m that includedUSD 145m relating toUS corporate alternativeminimum tax, withan equivalent deferredtax
benefit for DTAsrecognized in respectof tax creditscarried forward, andUSD 696m in respectof other taxableprofits
ofnon-Swisssubsidiariesandbranches.ThesewerepartlyoffsetbyanetdeferredtaxbenefitofUSD 705m,which
included USD 145mrelated tothe aforementioneddeferred taxbenefit, USD 747min respectof anet upwardrevaluation
of DTAs and USD 215m in respectof an increase in DTAs thatresulted from an increase in theexpected value of future
tax deductions fordeferred compensation awardsdue to anincrease in theGroup’s share priceduring the year.These
benefits werepartlyoffset byanexpense ofUSD 402m thatprimarily relatedtothe amortizationofDTAs previously
recognized in relation to tax losses carried forward and deductible temporary differences.
For the full year 2026, we expect a tax rate of around 23%, excluding any potential effects from theremeasurement of
DTAs inconnection withthe businessplanning processfor 2026and anymaterial jurisdictionalstatutory taxrate and
other tax law changes that could be enacted.
›
Refer to “Note 8 Income taxes” in the “Consolidated financial statements” section of this reportfor more information
›
Refer to the “Risk factors” section of this report for more information
Total comprehensive income attributable to shareholders
In 2025,total comprehensiveincome attributableto shareholderswas USD 11,998m,reflecting netprofit ofUSD 7,767m
and other comprehensive income (OCI), net of tax, of USD 4,231m.
Foreign currency translation OCI wasUSD 3,333m, mainly due to the weakeningof the US dollar against theSwiss franc
and the euro.
OCIrelatedtocashflowhedgeswasUSD1,295m,mainlyreflectingnetlossesonhedginginstrumentsthatwere
reclassified from OCI to theincome statement and net unrealizedgains on US dollarhedging derivatives resulting from
decreases in the relevant US dollar long-term interest rates.
OCIrelatedtoowncreditonfinancialliabilitiesdesignatedatfairvaluewasnegativeUSD 499m,primarilyduetoa
tightening of our own credit spreads.
›
Refer to “Statement of comprehensive income” in the “Consolidated financial statements” section of thisreport for more
information
›
Refer to “Note 20 Fair value measurement” in the “Consolidated financial statements” sectionof this report for more information
about own credit on financial liabilities designated at fair value
›
Refer to “Note 24 Hedge accounting”in the “Consolidated financial statements” section of this report for more informationabout
cash flow hedges of forecast transactions
Annual Report 2025 |
Financial and operating performance | Group performance69
Sensitivity to interest rate movements
As of 31 December2025, it isestimated that aparallel shift inyield curves by+100 basis pointscould lead toa combined
increase in annual net interest incomefrom our banking book of approximately USD 1.4bnin the first year after sucha
shift. Of thisincrease, approximately USD 1.1bn,USD 0.2bn and USD 0.1bnwould result fromchanges in Swissfranc,
US dollar and euro interest rates, respectively.
A parallel shiftin yield curvesby –100 basispoints could leadto a combinedincrease in annualnet interest incomeof
approximately USD 0.9bn. Of thisincrease, approximately USD 1.2bn wouldresult from changes inSwiss franc interest
rates, driven by both contractualand assumed flooring benefitsunder negative interest rates.US dollar and euro interest
rates would lead to an offsetting decrease of USD 0.2bn and USD 0.1bn, respectively.
Theseestimatesdonotrepresentnetinterestincomeforecasts,astheyarebasedonahypotheticalscenarioofan
immediate change ininterest rates, equalacross all currenciesand relative toimplied forward ratesas of 31 December
2025 applied toour banking book.These estimates furtherassume no changeto balancesheet size andproduct mix,
stable foreign exchange rates, and no specific management action.
Seasonal characteristics
Our revenuesmay showseasonal patterns, notablyin theInvestment Bankand transaction-basedrevenues forGlobal
Wealth Management,and typicallyreflect thehighest clientactivity levelsin thefirst quarter, withlower levelsthroughout
the rest of the year, especially during the summer months and the end-of-year holiday season.
Key figures
Below we provide an overview of selected key figures of the Group. For further information about key figures related to
capital management, refer to the “Capital management” section of this report.
Cost / income ratio
Thecost / incomeratiowas81.1%,comparedwith84.8%,andonanunderlyingbasisthecost / incomeratiowas
74.4%, comparedwith 79.5%. Bothof these decreaseswere asa resultof higher totalrevenues andlower operating
expenses.
Return on common equity tier 1 capital
The return on common equitytier 1 (CET1) capital was 10.8%,compared with 6.7%. On an underlyingbasis, the return
on CET1 capital was 13.7%, compared with 8.7%. These increaseswere driven by an increase in net profitattributable
to shareholders and a decrease in average CET1 capital.
CET1 capital
CET1 capital decreased by USD 0.1bn to USD 71.3bn asof 31 December 2025, mainly as operating profit beforetax of
USD 8.9bn andforeign currencytranslation gainsof USD 3.1bnwere morethan offsetby dividendaccruals ofUSD 3.4bn,
share repurchases of USD 3.0bn under our 2024 and 2025 share repurchase programs, the recognition of a new capital
reserve of USD 3.0bnfor expected futureshare repurchasesin 2026, currenttax expenses ofUSD 1.4bn, and negative
effectsfrom compensation-and own-share-related capital components of USD 0.7bn and other items of USD 0.5bn.
Risk-weighted assets
During 2025, RWA decreased by USD 5.1bn to USD 493.4bn, driven bya USD 16.3bn decrease resulting from asset size
and othermovements, anUSD 8.6bn decreaseas aresult ofthe implementationof thefinal Basel IIIstandards anda
decreaseofUSD 4.2bnresultingfrommodelupdatesandothermethodologychanges.Thesedecreaseswerepartly
offset by a USD 24.0bn increase from currency effects.
CET1 capital ratio
Our CET1 capital ratio increased to 14.4% from 14.3%, predominantly due to a USD 5.1bn decrease in RWA.
Leverage ratio denominator
During2025,theLRDincreasedbyUSD 103.0bntoUSD 1,622.4bn,mainlydrivenbyaUSD 110.2bnincreasefrom
currency effects and a USD 28.8bn increase asa result of the implementation ofthe final Basel III standards, partly offset
by a USD 36.1bn decrease from asset size and other movements.
CET1 leverage ratio
OurCET1leverageratiodecreasedto4.4%from4.7%,duetotheUSD 103.0bnincreaseintheLRDandthe
aforementioned decrease in CET1 capital.
Personnel
The number of internal andexternal personnel employed was approximately119,589 (based on full-time equivalentsfor
internalpersonnelandworkforcecountforexternalpersonnel)asof31 December2025,anetdecreaseof9,394
compared with 31 December 2024. The number of internal personnel employed as of 31 December 2025 was 103,177
(full-time equivalents),a netdecrease of5,471 comparedwith 31 December2024. Thenumber ofexternal staffwas
approximately 16,412 (workforce count), a net decrease of 3,923 compared with 31 December 2024.
Annual Report 2025 |
Financial and operating performance | Group performance70
Equity, CET1 capital and returns
As of or for the year ended
USD m, except where indicated
31.12.25
31.12.24
31.12.23
Net profit
Net profit attributable to shareholders
7,767
5,085
27,366
Equity
Equity attributable to shareholders
90,213
85,079
85,624
less: goodwill and intangible assets
6,948
6,887
7,515
Tangible equity attributable to shareholders
83,265
78,192
78,109
less: other CET1 deductions
12,003
6,825
107
CET1 capital
71,262
71,367
78,002
Return on equity
Return on equity (%)
8.8
6.0
36.9
Return on tangible equity (%)
9.5
6.5
40.8
Underlying return on tangible equity (%)
12.1
8.5
4.1
Return on CET1 capital (%)
10.8
6.7
41.8
Underlying return on CET1 capital (%)
13.7
8.7
4.2
Annual Report 2025 |
Financial and operating performance | Global Wealth Management71
Global Wealth Management
Global Wealth Management
As of or for the year ended
% change from
USD m, except where indicated
31.12.25
31.12.24
31.12.24
Results
Net interest income
7,018
7,358
(5)
Recurring net fee income
13,671
12,625
8
Transaction-based income
1,2
5,208
4,503
16
Other revenues
1,3
62
31
101
Total revenues
25,960
24,516
6
Credit loss expense / (release)
48
(16)
Operating expenses
20,705
20,608
0
Business division operating profit / (loss) before tax
5,207
3,924
33
Underlying results
Total revenues as reported
25,960
24,516
6
of which: PPA effects and other integration items
4
624
891
(30)
of which: PPA effects recognized in net interest income
579
910
(36)
of which: PPA effects and other integration items recognized in transaction-based income
45
(19)
of which: loss related to an investment in an associate
(62)
(21)
200
Total revenues (underlying)
1
25,398
23,646
7
Credit loss expense / (release)
48
(16)
Operating expenses as reported
20,705
20,608
0
of which: integration-related expenses and PPA effects
1,5
1,675
1,807
(7)
Operating expenses (underlying)
1
19,030
18,802
1
of which: net expenses / (releases) for litigation, regulatory and similar matters
(173)
147
Business division operating profit / (loss) before tax as reported
5,207
3,924
33
Business division operating profit / (loss) before tax (underlying)
1
6,320
4,860
30
Performance measures and other information
Pre-tax profit growth (year-on-year,%)
1
32.7
13.9
Cost / income ratio (%)
1
79.8
84.1
Average attributed equity (USD bn)
6
34.2
33.3
3
Return on attributed equity (%)
1,6
15.2
11.8
Financial advisor compensation
7
5,654
5,292
7
Net new fee-generating assets (USD bn)
1
52.2
61.7
Fee-generating assets (USD bn)
1
2,108
1,816
16
Net new money (USD bn)
1
7.9
5.5
Net new assets (USD bn)
1
100.8
96.7
Net new assets growth rate (%)
1
2.4
2.5
Invested assets (USD bn)
1
4,753
4,182
14
Net new loan volumes (USD bn)
1,8
13.6
(11.8)
Loan volumes (USD bn)
1,9
327.2
300.5
9
Net new deposit volumes (USD bn)
1,10
(9.2)
0.9
Customer deposit volumes (USD bn)
1,11
479.1
470.1
2
Credit-impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,12
0.5
0.4
Advisors (full-time equivalents)
9,420
9,803
(4)
Underlying performance measures
Pre-tax profit growth (year-on-year,%)
1
30.0
30.3
Cost / income ratio (%)
1
74.9
79.5
Return on attributed equity (%)
1,6
18.5
14.6
1 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. Each alternative performance measure (APM) that qualifies as a non-GAAP measure as defined
by US Securities and Exchange Commission (SEC) regulations is designated as suchin the table of APMs in the appendix to thisreport. For more information about underlying results, refer to the “Group performance”
section of this report.2 Is composed of USD 3,399m (2024: USD 2,841m) of net fee and commission income, USD 1,803m (2024: USD 1,673m)of other net income from financial instruments measured at fair value
through profit or lossand USD 6m (2024: negativeUSD 11m) of other incomeas reflected in theGroup financial statements.Income related to certainfinancial instruments not directlylinked to clientactivity and
measured at fair value that was previouslypresented as transaction-based income is presented asother revenues from the fourth quarterof 2025 onward. This change has beenapplied prospectively.3 Are composed
of USD 33m (2024: USD 0m) of other net income fromfinancial instruments measured at fair value through profit or lossand USD 29m (2024: USD 31m) of other income asreflected in the Group financial statements.
Income related to certain financial instruments not directly linked to client activity and measured at fair value that was previously presented as transaction-based income is presented as other revenues from the fourth
quarter of 2025 onward. This change has been applied prospectively. The line was renamed “Other revenues” (previously “Other income”) in the fourth quarter of 2025.4 Includes accretion of PPA adjustments on
financial instruments and other PPAeffects, as well as temporaryand incremental items directly related tothe integration.5 Includes temporary, incrementaloperating expenses directly related tothe integration,
as well as amortization ofintangibles resulting from the acquisitionof the Credit Suisse Group.6 Refer to the “Capital management”section of this report formore information about the equityattribution framework.
7 Relates to licensed professionals with theability to provide investment advice to clientsin the Americas. Consists ofcash compensation, determined using a formulaicapproach based on production, and deferred
awards. Also includes expensesrelated to compensation commitments withfinancial advisors entered into at thetime of recruitment that are subjectto vesting requirements. Recruitmentloans to financial advisors
were USD 1,493m asof 31 December 2025.8 Is composed ofUSD 13.4bn (2024: negativeUSD 11.5bn) classified asLoans and advancesto customers andUSD 0.2bn (2024: negativeUSD 0.3bn) classified as
Brokerage receivables in the Group financial statements.9 Presented gross of expected credit losses. Is composed of USD 322.4bn (31 December 2024: USD 295.9bn) classified as Loans and advances to customers
and USD 4.8bn (2024: USD4.6bn) classified as Brokeragereceivables in theGroup financial statements.10 Is composed ofnegative USD 8.6bn (2024:negative USD 0.4bn) classifiedas Customer depositsand
negative USD 0.6bn (2024: USD 1.3bn) classified as Brokerage payablesin the Group financial statements.11 Is composed of USD 473.8bn (31 December 2024: USD 464.2bn) classified as Customer deposits and
USD 5.3bn (2024: USD 5.9bn) classified as Brokeragepayables in the Group financial statements.12 Refer to the “Risk management and control” section ofthis report for more information about credit-impaired
exposures. Excludes loans to financial advisors.
Annual Report 2025 |
Financial and operating performance | Global Wealth Management72
2025 compared with 2024
Results
Profit beforetax increasedby USD 1,283m, or33%, to USD 5,207m,mainly due tohigher total revenuesand broadly
stableoperatingexpenses.UnderlyingprofitbeforetaxwasUSD 6,320m,anincreaseof30%,afterexcludingfrom
operatingexpensesUSD 1,675mofintegration-relatedexpensesandpurchasepriceallocation(PPA)effectsand
excluding from totalrevenues USD 624m ofPPAeffects and otherintegration items anda USD 62m lossrelated to an
investment in an associate.
Total revenues
Total revenues increased by USD 1,444m, or 6%,to USD 25,960m, largelydriven by higherrecurring net feeincome and
transaction-based income, partly offset by lower net interest income, and included a USD 267m decrease in PPAeffects
and other integration items.Excluding USD 624m of PPA effects and other integrationitems and a USD 62mloss related
to an investment in an associate, underlying total revenues were USD 25,398m, an increase of 7%.
Net interest income decreased by USD 340m,or 5%, to USD 7,018m and includeda USD 331m decrease in accretion of
PPAadjustmentsonfinancialinstruments andotherPPAeffects.ExcludingPPAeffectsofUSD 579m,underlyingnet
interest incomewas broadlystable at USD6,439m. Net interestincome wasimpacted bylower centralbank interestrates
on depositrevenues, bylower loanrevenues, whichreflected lowermargins, andalso byhigher liquidityand funding
costs. These drivers were almost entirelyoffset by balance sheet optimization measures,the effects of favorable changes
in deposit mix and positive foreign currency effects.
Recurring net fee income increased by USD 1,046m, or 8%, to USD 13,671m, mainly driven by higher average levels of
fee-generating assets,primarily frommandates, reflectingpositive marketperformance andnet newfee-generating asset
inflows in 2025.
Transaction-based income increasedby USD 705m, or16%, to USD 5,208m. ExcludingPPA effects and otherintegration
items of USD 45m, underlying transaction-based income was USD 5,163m,an increase of 14%, mainly driven by higher
levelsofclientactivityacrossallregionsandalsodrivenbycontributionsfromStructuredSolutions,CashEquities,
Investment Funds and Wealth Planning revenues.
Other revenuesincreased byUSD 31m toUSD 62m andincluded arelease ofUSD 42m relatedto otherfinancial liabilities,
a USD 34m fairvalue gain froma strategic partnershipand a USD 33mgain from thesale of ourwealth management
business in India, partly offsetby a net loss ofUSD 62m related to an investmentin an associate. Other revenuesin 2024
included a lossof USD 21m related toan investment in anassociate. Excluding theaforementioned net lossof USD 62m,
underlying other revenues were USD 125m.
Credit loss expense / release
Net credit loss expenses were USD 48m, reflecting net expenses on credit-impaired positions and net releases relatedto
performing positions. Net credit loss releases were USD 16m in 2024.
Operating expenses
OperatingexpenseswerebroadlystableatUSD 20,705mandincludedaUSD 132mdecreaseinintegration-related
expenses. Excluding USD 1,675m ofintegration-related expenses and PPAeffects, underlying operatingexpenses were
USD 19,030m, an increaseof 1%,mainly driven byan increasein financial advisorcompensation as aresult ofhigher
compensablerevenues,partlyoffsetbyUSD 173mofnetreleasesinprovisionsforlitigation,regulatoryandsimilar
matters, primarily reflecting USD 284mof releases relatedto the resolutionof a legacy matterconcerning cross-border
business activities in France.
›
Refer to “Note 17 Provisions and contingent liabilities” in the “Consolidated financial statements” sectionof this report for more
information about litigation, regulatory and similar matters
Cost / income ratio
The cost / incomeratio decreased to 79.8%from 84.1%, mainly reflecting anincrease in total revenues,while operating
expenses werebroadly stable.The underlyingcost /income ratiodecreased to74.9% from79.5%, asan increasein
underlying total revenues more than offset an increase in underlying operating expenses.
Invested assets
Invested assetsincreased by USD 571bnto USD 4,753bn,mainly driven bypositive market performanceof USD 376.7bn,
positive foreign currencyeffects of USD 125.8bn andnet new asset inflows ofUSD 100.8bn, partly offset byeffects of
USD 27.5bn as a result of UBS’s strategic decisions to exit certain markets or cease offering certain services.
Loan volumes
Loan volumes increased by USD 26.7bn toUSD 327.2bn, mainly driven by positive foreigncurrency effects and positive
net new loan volumes of USD 13.6bn.
›
Refer to the “Risk management and control” section of this report for moreinformation
Annual Report 2025 |
Financial and operating performance | Global Wealth Management73
Customer deposit volumes
Customer deposit volumes increasedby USD 9.0bn to USD 479.1bn,mainly driven by positiveforeign currency effects,
partly offset by net new deposit volume outflows of USD 9.2bn.
Regional breakdown of performance measures
As of or for the year ended 31.12.25
USD m, except where indicated
Americas
1
Asia Pacific
EMEA
Switzerland
Divisional items
2
Global Wealth
Management
Net interest income
2,087
1,325
1,532
1,489
585
7,018
Recurring net fee income
8,373
1,151
2,268
1,831
48
13,671
Transaction-based income
3,4
1,773
1,531
1,056
881
(34)
5,208
Other revenues
3,4
10
(18)
(2)
(1)
73
62
Total revenues
12,243
3,988
4,855
4,201
673
25,960
Credit loss expense / (release)
50
5
21
(29)
0
48
Operating expenses
10,639
2,447
3,213
2,689
1,715
20,705
Operating profit / (loss) before tax
1,554
1,535
1,621
1,540
(1,043)
5,207
of which: PPA effects, integration-related items and other items
5
(1,113)
(1,113)
Cost / income ratio (%)
3
86.9
61.4
66.2
64.0
79.8
Net new fee-generating assets (USD bn)
3
11.7
14.5
20.7
5.7
(0.4)
52.2
Fee-generating assets (USD bn)
3
1,175
206
458
268
1
2,108
Net new money (USD bn)
3
(57.7)
46.2
16.5
5.2
(2.3)
7.9
Net new assets (USD bn)
3
(5.9)
62.5
28.4
18.1
(2.3)
100.8
Net new assets growth rate (%)
3
(0.3)
9.4
4.3
2.4
2.4
Invested assets (USD bn)
3
2,283
795
778
891
6
4,753
Net new loan volumes (USD bn)
3
5.9
3.0
2.7
2.2
(0.2)
13.6
Loan volumes (USD bn)
3
103.6
6
46.4
63.3
113.2
0.8
327.2
Net new deposit volumes (USD bn)
3
3.0
(7.5)
(0.5)
(3.3)
(0.9)
(9.2)
Customer deposit volumes (USD bn)
3
119.6
6
117.0
114.0
124.7
3.8
479.1
Advisors (full-time equivalents)
5,772
910
1,438
1,207
94
9,420
1 Includes theWealth ManagementUS (whichcovers theUSA andCanada) andWealth ManagementLatAm (whichcovers LatinAmerica) businessunits.2 Includes impactsfrom accretionof purchaseprice
allocation adjustments onfinancial instruments andother PPAeffects, integration-relatedexpenses, certaingains and lossesfrom investments inassociates and minorfunctions, thatare not includedin the four
regions individually presented in this table.3 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. Each alternative performance measure (APM) that
qualifies as anon-GAAP measureas defined byUS Securities andExchange Commission(SEC) regulations isdesignated assuch in thetable of APMsin the appendixto this report.For moreinformation about
underlying results, refer to the “Group performance” sectionof this report.4 From the fourth quarter of 2025 onward, incomerelated to certain financial instruments notdirectly linked to client activity and measured
at fair valuethat was previouslypresented as transaction-basedincome is nowpresented as otherrevenues. Thischange has beenapplied prospectively.The line hasbeen renamed “Otherrevenues” (previously
“Other income”).5 Items of profitor loss thatmanagement believes arenot representative ofthe underlying performance,namely impacts fromaccretion of purchaseprice allocation adjustmentson financial
instruments and otherPPA effects,integration-related expenses,amortization of intangiblesresulting from theacquisition of theCredit Suisse Group,and certain gainsand losses frominvestments in associates.
6 Loan volumes and Customer deposit volumes in this table include customer brokerage receivablesand payables, respectively, which are presented inseparate reporting lines on the balance sheet.
Regional comments: 2025 compared with 2024
Americas
ProfitbeforetaxincreasedbyUSD 510mtoUSD 1,554m.TotalrevenuesincreasedbyUSD 980m,or9%,to
USD 12,243m, mainlydriven byincreasesofUSD 661m inrecurringnetfeeincome, USD 191min transaction-based
income andUSD 153m innet interestincome. Operating expensesincreased byUSD 447m, or4%, toUSD 10,639m.
Thecost / incomeratiodecreasedto86.9%from90.5%.Loanvolumesincreasedby6%comparedwith2024,to
USD 103.6bn, mainlydriven bypositive netnew loanvolumes ofUSD 5.9bn. Customerdeposit volumesincreased by
3% compared with 2024, to USD 119.6bn, with netnew deposit volume inflows of USD 3.0bn. Netnew asset outflows
were USD 5.9bn.
Asia Pacific
ProfitbeforetaxincreasedbyUSD 353mtoUSD 1,535m.TotalrevenuesincreasedbyUSD 376m,or10%,to
USD 3,988m, mainlydriven byincreases ofUSD 311m intransaction-based income andUSD 96m inrecurring netfee
income.OperatingexpenseswerebroadlystableatUSD 2,447m.Thecost / incomeratiodecreasedto61.4%from
67.5%. Loan volumesincreased by 12%compared with 2024,to USD 46.4bn, mainlydriven by positivenet new loan
volumes ofUSD 3.0bn. Customerdeposit volumesdecreased by7% comparedwith 2024,to USD 117.0bn,with net
new deposit volume outflows of USD 7.5bn. Net new asset inflows were USD 62.5bn.
EMEA
ProfitbeforetaxincreasedbyUSD 387mtoUSD 1,621mandincludedUSD 150mofnetreleasesinprovisionsfor
litigation, regulatory and similar matters,primarily reflecting USD 213m of releasesrelated to the resolutionof a legacy
matterconcerningcross-borderbusinessactivitiesinFrance.TotalrevenuesincreasedbyUSD 178m,or4%,to
USD 4,855m, mainly driven by increasesof USD 164m in recurringnet fee income and USD 124min transaction-based
income, partly offsetby a USD 111mdecrease in netinterest income. Operatingexpenses decreased byUSD 247m, or
7%, to USD 3,213m and included the aforementioned release in litigation provisions. The cost / income ratio decreased
to 66.2% from 74.0%. Loan volumes increased by 10% compared with 2024, to USD 63.3bn,mainly driven by positive
foreign currency effectsand positive net newloan volumesof USD 2.7bn. Customer depositvolumes increased by3%
compared with 2024,to USD 114.0bn,mainly drivenby positiveforeign currency effects,partly offset bynet newdeposit
volume outflows of USD 0.5bn. Net new asset inflows were USD 28.4bn.
Annual Report 2025 |
Financial and operating performance | Global Wealth Management74
Switzerland
Profit before tax increased byUSD 98m to USD 1,540mand included USD 62mof net releases inprovisions for litigation,
regulatoryandsimilarmatters,primarilyreflectingUSD 71mofreleasesrelatedtotheresolutionofalegacymatter
concerning cross-borderbusiness activitiesin France.Totalrevenues increasedby USD 118m,or 3%,to USD 4,201m,
with an increase of USD 127m in recurring net fee income and USD 60m in transaction-based income, partly offset by a
decrease ofUSD 76m innet interestincome.Operating expensesincreased byUSD 27m, or1%, toUSD 2,689m and
included theaforementioned releasein litigation provisions.The cost / incomeratio decreasedto 64.0%from 65.2%.
Loan volumesincreased by 10%compared with 2024,to USD 113.2bn,mainly drivenby positive foreigncurrency effects
and positive net new loan volumes of USD 2.2bn. Customer deposit volumes increasedby 8% compared with 2024, to
USD 124.7bn, mainlydriven bypositive foreigncurrency effects,partly offsetby netnew depositvolume outflowsof
USD 3.3bn. Net new asset inflows were USD 18.1bn.
Divisional items
Operating loss beforetax wasUSD 1,043m and mainlyincluded USD 1,675m ofintegration-related expenses andPPA
effects, impacts fromagreements with certainclients, and aloss of USD 62mrelated to aninvestment in anassociate,
partly offset bythe aforementioned USD 624mrelated to PPAeffects and otherintegration items, USD 42m relatedto
other financial liabilities,a USD 34mfair value gaindriven froma strategicpartnership, and aUSD 33m gain fromthe
sale of our wealth management business in India.
Annual Report 2025 |
Financial and operating performance | Personal & Corporate Banking75
Personal & Corporate Banking
Personal & Corporate Banking – in Swiss francs
As of or for the year ended
% change from
CHF m, except where indicated
31.12.25
31.12.24
31.12.24
Results
Net interest income
4,403
4,987
(12)
Recurring net fee income
1,2
1,405
1,425
(1)
Transaction-based income
1,3
1,825
1,821
0
Other revenues
1,4
(50)
7
Total revenues
7,583
8,241
(8)
Credit loss expense / (release)
277
357
(22)
Operating expenses
5,235
5,070
3
Business division operating profit / (loss) before tax
2,071
2,814
(26)
Underlying results
Total revenues as reported
7,583
8,241
(8)
of which: PPA effects and other integration items
5
841
915
(8)
of which: PPA effects recognized in net interest income
757
841
(10)
of which: PPA effects and other integration items recognized in transaction-based income
84
74
13
of which: loss related to an investment in an associate
(133)
(54)
148
of which: items related to the Swisscard transactions
6
58
Total revenues (underlying)
1
6,817
7,379
(8)
Credit loss expense / (release)
277
357
(22)
Operating expenses as reported
5,235
5,070
3
of which: integration-related expenses and PPA effects
1,7
897
662
36
of which: items related to the Swisscard transactions
164
8
37
9
341
Operating expenses (underlying)
1
4,175
4,371
(4)
of which: net expenses / (releases) for litigation, regulatory and similar matters
(30)
1
Business division operating profit / (loss) before tax as reported
2,071
2,814
(26)
Business division operating profit / (loss) before tax (underlying)
1
2,365
2,651
(11)
Performance measures and other information
Pre-tax profit growth (year-on-year,%)
1
(26.4)
11.3
Cost / income ratio (%)
1
69.0
61.5
Average attributed equity (CHF bn)
10
17.8
19.0
(6)
Return on attributed equity (%)
1,10
11.6
14.8
Net interest margin (bps)
1
178
201
Loans, gross (CHF bn)
246.0
242.3
1
Customer deposits (CHF bn)
248.6
254.1
(2)
Credit-impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,11
1.2
1.3
Underlying performance measures
Pre-tax profit growth (year-on-year,%)
1
(10.8)
8.1
Cost / income ratio (%)
1
61.2
59.2
Return on attributed equity (%)
1,10
13.3
13.9
1 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. Each alternative performance measure (APM) that qualifies as a non-GAAP measure as defined
by US Securities and Exchange Commission (SEC) regulations is designated as suchin the table of APMs in the appendix to thisreport. For more information about underlying results, refer to the “Group performance”
section of this report.2 Is composed of net fee and commission incomeand other income as reflected in the Groupfinancial statements. For reconciliation information in US dollar amounts, refer to the corresponding
footnote in the table below.3 Is composed of net fee and commission income,other net income from financial instruments measured atfair value through profit or loss and otherincome as reflected in the Group
financial statements. For reconciliation information in US dollar amounts,refer to the corresponding footnote in the table below. Income related to certain financial instruments not directly linkedto client activity and
measured at fair value that was previouslypresented as transaction-based income is presented asother revenues from the fourth quarterof 2025 onward. This change has beenapplied prospectively.4 Are composed
of other net income from financial instruments measured at fairvalue through profit or loss and other income as reflectedin the Group financial statements. Forreconciliation information in US dollar amounts, refer
to the correspondingfootnote in thetable below.Income related tocertain financial instrumentsnot directly linkedto client activityand measured atfair value thatwas previously presentedas transaction-based
income is presented as other revenues from the fourth quarter of 2025 onward. This change has been applied prospectively. Theline was renamed “Other revenues” (previously “Other income”) in the fourth quarter
of 2025.5 Includes accretion of PPAadjustments on financial instruments andother PPA effects,as well as temporary andincremental items directly related tothe integration.6 Represents the gain related to
UBS’s share of the income recordedby Swisscard for thesale of the CreditSuisse card portfolios to UBS.7 Includes temporary, incremental operating expenses directly related tothe integration, as well asamortization
of intangibles resulting fromthe acquisition of theCredit Suisse Group.8 Represents the expenserelated to the paymentto Swisscard for thesale of the CreditSuisse card portfolios toUBS.9 Represents the
termination feepaid toAmerican Expressrelated tothe saleof our50% holdingin Swisscard.10 Refer tothe “Capitalmanagement” sectionof thisreport formore informationabout theequity attribution
framework.11 Refer to the “Risk management and control” section of this report for more information about credit-impaired exposures.
Annual Report 2025 |
Financial and operating performance | Personal & Corporate Banking76
2025 compared with 2024
Results
Profit before tax decreased by CHF 743m, or26%, to CHF 2,071m, reflecting lower totalrevenues and higher operating
expenses, partlyoffset bylower netcredit lossexpenses. Underlyingprofit beforetax wasCHF 2,365m, adecrease of
11%, predominantlydriven bylowernet interestincome, resultingfromlower marketinterestrates.This underlying
profit excludes fromtotal revenues CHF 841mof purchaseprice allocation (PPA)effects andother integration items,a
netlossofCHF 133mrelatedtoaninvestmentinanassociate,andagainofCHF 58mrelatedtotheSwisscard
transactions; it also excludes from operating expenses CHF 897m of integration-related expenses and PPAeffects and a
CHF 164m expense related to the Swisscard transactions.
Total revenues
Totalrevenues decreasedby CHF 658m, or8%, to CHF 7,583m,predominantly due tolower net interestincome, and
included a CHF 74m decrease in PPA effects and other integration items. Totalrevenues in 2025 also included a gain of
CHF 58m relatedto theSwisscard transactionsand anet lossof CHF 133mrelatedto aninvestment inan associate.
Excluding CHF 841m of PPA effects and other integration items and the aforementioned gain and a net loss, underlying
total revenues were CHF 6,817m, a decrease of 8%.
Net interest incomedecreased by CHF584m, or 12%,to CHF 4,403m, mainlyreflecting the impactof lower centralbank
interest rateson depositrevenues. Thisdecrease waspartly offsetby depositpricing measuresand lowerliquidity and
fundingcosts.NetinterestincomealsoincludedanCHF 84mdecreaseinaccretionofPPAadjustmentsonfinancial
instruments and other PPAeffects. Excluding PPA effectsof CHF 757m, underlyingnet interest income wasCHF 3,647m,
a decrease of 12%.
Recurring netfee incomedecreased byCHF 20m, or1%, toCHF 1,405m, asthe impactfrom areclassification ofrecurring
net fee incometo transaction-based incomeas a resultof aligning CreditSuisse presentation tothat of UBSin the second
half of 2024, as well as lower revenues related to our share of Swisscard profit, was partly offset by higher custodyfees,
mainly reflecting net new inflows and positive market performance.
Transaction-basedincomewasbroadlystableatCHF 1,825m,asthepositiveimpactfromtheaforementioned
reclassification and a CHF 10mincrease in accretion ofPPA adjustments on financialinstruments and otherPPA effects
were offset bylower corporate clientrevenues. ExcludingCHF 84m of PPAeffects andother integrationitems, underlying
transaction-based income was broadly stable at CHF 1,741m.
Other revenues were negative CHF 50m, compared with positive CHF 7m, andincluded a net loss of CHF 133m related
to an investmentin an associate,partly offset bya gain ofCHF 58m related tothe Swisscard transactions.Other revenues
in 2024 included aloss of CHF 54m relatedto an investment inan associate. Excluding theaforementioned net loss of
CHF 133m and the gain of CHF 58m, underlying other revenues were positive CHF 25m.
Credit loss expense / release
Net credit lossexpenses were CHF 277m,mainly reflecting netexpenses on credit-impairedpositions, compared withnet
credit loss expenses of CHF 357m in 2024.
Operating expenses
Operating expenses increasedby CHF 165m, or3%, to CHF 5,235mand included aCHF 164m expense relatedto the
Swisscard transactionsand aCHF 240m increasein integration-relatedexpenses. ExcludingCHF 897m ofintegration-
related expensesand PPAeffects andthe aforementioned expenseof CHF 164m, underlyingoperating expenses were
CHF 4,175m, a decrease of 4%, mainlydriven by lower personnel expenses,including lower variable compensation,and
by CHF 29m of netreleases in provisions for litigation,regulatory and similar mattersrelated to the resolution ofa legacy
matter concerning cross-border business activities in France.
›
Refer to “Note 17 Provisions and contingent liabilities” in the “Consolidated financial statements” sectionof this report for more
information about litigation, regulatory and similar matters
Return on attributed equity
Return on attributed equity was 11.6%, compared with 14.8% in 2024. The underlyingreturn on attributed equity was
13.3%, compared with 13.9% in 2024.
Cost / income ratio
The cost / income ratioincreased to 69.0%from 61.5%, dueto a decreasein total revenuesand an increasein operating
expenses. The underlyingcost / income ratio increased to61.2% from 59.2%, asa decrease in underlyingtotal revenues
more than offset a decrease in underlying operating expenses.
Annual Report 2025 |
Financial and operating performance | Personal & Corporate Banking77
Personal & Corporate Banking – in US dollars
As of or for the year ended
% change from
USD m, except where indicated
31.12.25
31.12.24
31.12.24
Results
Net interest income
5,322
5,650
(6)
Recurring net fee income
1,2
1,698
1,614
5
Transaction-based income
1,3
2,207
2,061
7
Other revenues
1,4
(73)
10
Total revenues
9,154
9,334
(2)
Credit loss expense / (release)
339
404
(16)
Operating expenses
6,318
5,741
10
Business division operating profit / (loss) before tax
2,497
3,189
(22)
Underlying results
Total revenues as reported
9,154
9,334
(2)
of which: PPA effects and other integration items
5
1,016
1,038
(2)
of which: PPA effects recognized in net interest income
915
954
(4)
of which: PPA effects and other integration items recognized in transaction-based income
101
84
21
of which: loss related to an investment in an associate
(168)
(59)
184
of which: items related to the Swisscard transactions
6
64
Total revenues (underlying)
1
8,242
8,355
(1)
Credit loss expense / (release)
339
404
(16)
Operating expenses as reported
6,318
5,741
10
of which: integration-related expenses and PPA effects
1,7
1,093
749
46
of which: items related to the Swisscard transactions
180
8
41
9
340
Operating expenses (underlying)
1
5,045
4,951
2
of which: net expenses / (releases) for litigation, regulatory and similar matters
(37)
1
Business division operating profit / (loss) before tax as reported
2,497
3,189
(22)
Business division operating profit / (loss) before tax (underlying)
1
2,857
3,000
(5)
Performance measures and other information
Pre-tax profit growth (year-on-year,%)
1
(21.7)
13.4
Cost / income ratio (%)
1
69.0
61.5
Average attributed equity (USD bn)
10
21.4
21.6
(1)
Return on attributed equity (%)
1,10
11.7
14.8
Net interest margin (bps)
1
178
200
Loans, gross (USD bn)
310.2
266.9
16
Customer deposits (USD bn)
313.5
279.9
12
Credit-impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,11
1.2
1.3
Underlying performance measures
Pre-tax profit growth (year-on-year,%)
1
(4.8)
9.3
Cost / income ratio (%)
1
61.2
59.3
Return on attributed equity (%)
1,10
13.4
13.9
1 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. Each alternative performance measure (APM) that qualifies as a non-GAAP measure as defined
by US Securities and Exchange Commission (SEC) regulations is designatedas such in the table of APMs inthe appendix to this report. For more information about underlying results, refer to the“Group performance”
section of this report.2 Is composed of USD 1,669m (2024: USD 1,541m) of netfee and commission income and USD 29m (2024: USD 73m)of other income as reflected in the Group financialstatements.3 Is
composed of USD 1,303m(2024: USD 1,182m) ofnet fee and commissionincome, USD 896m (2024:USD 843m) of other netincome from financialinstruments measured atfair value throughprofit or lossand
USD 8m (2024:USD 36m) ofother income asreflected inthe Group financialstatements. Incomerelated tocertain financial instrumentsnot directlylinked toclient activity andmeasured at fairvalue thatwas
previously presented as transaction-based income is presented as other revenues from the fourth quarter of 2025 onward. This change has been applied prospectively.4 Are composed of negative USD 40m (2024:
negative USD 14m) of other net income from financial instruments measuredat fair value through profit or loss and negativeUSD 33m (2024: USD 24m) of other income as reflected in theGroup financial statements.
Income related to certain financial instruments not directly linked to client activity and measured at fair value that was previously presented as transaction-based income is presented as other revenues from the fourth
quarter of 2025 onward. Thischange has been applied prospectively.The line was renamed“Other revenues” (previously “Other income”)in the fourth quarter of 2025.5 Includes accretion of PPAadjustments
on financial instruments and other PPAeffects, as well as temporary andincremental items directly related to the integration.6 Represents the gain related to UBS’sshare of the income recorded by Swisscard for
the sale of the Credit Suisse cardportfolios to UBS.7 Includes temporary, incrementaloperating expenses directly related to theintegration, as well as amortization ofintangiblesresulting from the acquisition of
the Credit Suisse Group.8 Represents the expense related to the payment toSwisscard for the sale of the Credit Suisse cardportfolios to UBS.9 Represents the termination fee paid to American Expressrelated
to the sale of our 50%holding in Swisscard.10 Refer to the “Capital management”section of this report formore information about the equityattribution framework.11 Refer to the “Risk managementand
control” section of this report for more information about credit-impaired exposures.
Annual Report 2025 |
Financial and operating performance | Asset Management78
Asset Management
Asset Management
As of or for the year ended
% change from
USD m, except where indicated
31.12.25
31.12.24
31.12.24
Results
Net management fees
1,2
2,991
2,921
2
Performance fees
195
149
31
Net gain / (loss) from disposal
(30)
113
Total revenues
3,156
3,182
(1)
Credit loss expense / (release)
1
(1)
Operating expenses
2,436
2,663
(9)
Business division operating profit / (loss) before tax
719
520
38
Underlying results
Total revenues as reported
3,156
3,182
(1)
Total revenues (underlying)
1
3,156
3,182
(1)
Credit loss expense / (release)
1
(1)
Operating expenses as reported
2,436
2,663
(9)
of which: integration-related expenses
1
256
351
(27)
Operating expenses (underlying)
1
2,179
2,312
(6)
of which: net expenses / (releases) for litigation, regulatory and similar matters
0
7
Business division operating profit / (loss) before tax as reported
719
520
38
Business division operating profit / (loss) before tax (underlying)
1
975
871
12
Performance measures and other information
Pre-tax profit growth (year-on-year,%)
1
38.3
56.3
Cost / income ratio (%)
1
77.2
83.7
Average attributed equity (USD bn)
3
2.5
2.7
(9)
Return on attributed equity (%)
1,3
29.2
19.2
Gross margin on invested assets (bps)
1
16
18
Underlying performance measures
Pre-tax profit growth (year-on-year,%)
1
12.0
62.2
Cost / income ratio (%)
1
69.1
72.7
Return on attributed equity (%)
1,3
39.6
32.1
Information by business line / asset class
Net new money (USD bn)
1
Equities
4
3.0
20.7
Fixed Income
4
22.7
18.0
of which: money market
12.7
18.5
Multi-asset & Solutions
4
1.7
(1.5)
Hedge Fund Businesses
1.8
(3.5)
Real Estate & Private Markets
0.9
0.1
Total net new money excluding associates
30.1
33.8
of which: net new money excluding money market
17.5
15.4
Associates
5
0.3
10.8
Total net new money
30.4
44.6
Invested assets (USD bn)
1
Equities
4
904
755
20
Fixed Income
4
506
464
9
of which: money market
176
157
12
Multi-asset & Solutions
4
372
268
39
Hedge Fund Businesses
62
58
7
Real Estate & Private Markets
160
143
12
Total invested assets excluding associates
2,005
1,689
19
of which: passive strategies
1,040
807
29
Associates
5
93
84
11
Total invested assets
2,098
1,773
18
Annual Report 2025 |
Financial and operating performance | Asset Management79
Asset Management (continued)
As of or for the year ended
% change from
USD m, except where indicated
31.12.25
31.12.24
31.12.24
Information by region
Invested assets (USD bn)
1
Americas
489
443
10
Asia Pacific
6
256
224
14
EMEA (excluding Switzerland)
540
435
24
Switzerland
813
670
21
Total invested assets
2,098
1,773
18
Information by channel
Invested assets (USD bn)
1
Third-party institutional
1,193
1,008
18
Third-party wholesale
212
169
25
UBS’s wealth management businesses
601
512
17
Associates
5
93
84
11
Total invested assets
2,098
1,773
18
1 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. Each alternative performance measure (APM) that qualifies as a non-GAAP measure as defined
by US Securities and Exchange Commission (SEC) regulations is designated as suchin the table of APMs in the appendix to thisreport. For more information about underlying results, refer to the “Group performance”
section of this report.2 Net management fees include transaction fees,fund administration revenues (including net interestand trading income from lending activities andforeign-exchange hedging as part of the
fund services offering), distribution fees, incremental fund-related expenses, gains or losses from seed money and co-investments, funding costs, the negative pass-through impact of third-party performance fees, and
other items that arenot Asset Management’sperformance fees. Netmanagement fees are composedof USD 69m (2024: USD 63m)of interest expense,USD 2,800m (2024: USD 2,710m) ofrecurring net fee and
commission income, USD 79m (2024: USD 77m) of transaction-based net fee and commission income, USD 53m (2024: USD 80m) of other net income from financial instruments measured at fair value through profit
or loss, and USD 128m (2024: USD 117m) of other incomeas reflected in the Group financial statements.3 Refer to the “Capital management” section ofthis report for more information aboutthe equity attribution
framework.4 In the thirdquarter of 2025,certain portfolios werereclassified from Equitiesand Fixed Incometo Multi-asset &Solutions, asa result ofaligning Credit Suissepresentation to thatof UBS.These
changes were applied prospectively.5 The invested assets and net new money amountsreported for associates are prepared in accordancewith their local regulatory requirements and practices.6 Includes invested
assets from associates.
2025 compared with 2024
Results
Profit beforetax increasedby USD 199m,or 38%,to USD 719m,reflecting lower operatingexpenses, partly offsetby
lower total revenues, which included anet loss of USD 30m from disposalsin 2025, predominantly reflecting a netloss
of USD 29m related tothe sale of our O’Connorbusiness to Cantor Fitzgerald. Profitbefore tax in 2024 includeda net
gain of USD 113m from the sale ofnon-strategic businesses. Underlying profit before taxwas USD 975m, an increase of
12%, after excluding integration-related expenses of USD 256m.
Total revenues
Totalrevenues decreasedby USD 26m,or 1%,to USD 3,156m,primarily dueto theeffects fromthe aforementioned
sales. The gross margin was 16 basis points.
Net management fees increasedby USD 70m, or 2%,to USD 2,991m, mainly drivenby higher average levels ofinvested
assets, primarily from positive market performance and foreign currencyeffects, and by an increase reflecting ourshare
ofthenetprofitofassociates,partlyoffsetbytheongoingmargincompression.Netmanagementfeeswerealso
impactedbyareductioninrevenuesrelatedtoHedgeFundBusinesses(linkedtotheincreaseinperformancefees
mentioned below), while 2024 included a revaluation of a real estate fund co-investment.
Performancefeesincreased byUSD 46m,or31%,toUSD 195m,mainlyduetoaUSD 57mincreaseinHedgeFund
Businesses, partly offset by decreases in the Real Estate business and Fixed Income.
Operating expenses
Operating expenses decreased by USD 227m, or 9%, toUSD 2,436m and included a USD 95m decrease inintegration-
relatedexpenses.Excludingintegration-relatedexpensesofUSD 256m,underlyingoperatingexpenseswere
USD 2,179m, a decrease of 6%, reflecting decreases in non-personnel and personnel expenses.
Annual Report 2025 |
Financial and operating performance | Asset Management80
Cost / income ratio
The cost / income ratio decreasedto 77.2% from 83.7%,with a decrease onan underlying basis to69.1% from 72.7%,
as decreases in operating expenses and underlying operating expenses more than offset a decrease in total revenues.
Invested assets
Invested assetsincreased byUSD 325bn, or18%, toUSD 2,098bn, reflectingpositive marketperformance ofUSD 171bn,
positive foreigncurrency effectsof USD 131bnand netnew moneyof USD 30bn,partly offsetby areduction ofUSD 7bn,
which includedUSD 4bn relatedto thefirst stageof thetransfer ofour O’Connorbusiness. Excludingmoney market
flows and associates, net new money was USD 17bn.
Investment performance
As of the end of2025, Morningstar assigned a four-or five-star rating to 62%of our traditional retail andinstitutional
funds assetsunder management(AuM) (bothactively managedand passive),on anAuM-weighted basis.In addition,
62% ofour activelymanaged traditionalopen-ended retailand institutionalfunds AuMare ranked,on anAuM-weighted
basis over a three-year investment period, above their respective peer median.
Investment performance as of 31 December 2025
In %
Total traditional
investments
Equities
Fixed Income
Multi-asset
Percentage of UBS Asset Management fund assets rated as 4- or 5-star
1,2
62
76
42
22
Percentage of UBS Asset Management fund assets above peer median over a 3-year investment period
1,3
62
64
72
46
1 Morningstar® Essentials Quantitative Star Rating & Rankings; © Morningstar 2026, extract date 13 January 2026. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and / or its
content providers; (2) maynot be copied ordistributed; (3) is notwarranted to beaccurate, completeor timely; and (4)does not constitute adviceof any kind, whetherinvestment, tax, legalor otherwise. Useris
solely responsible for ensuring that it complieswith all laws, regulations and restrictionsapplicable to it. Neither Morningstar nor itscontent providers are responsible for any damagesor losses arising from any use
of this information, except wheresuch damages or losses cannotbe limited or excluded bylaw in your jurisdiction. Pastperformance is no guaranteeof future results. Referto “The Morningstar Ratingfor Funds”,
available at morningstar.com/business/insights/research/methodology-documents, for more detailedinformation about the Morningstar Rating,including the methodology therefor.2 Percentage of AuM towhich
Morningstar has assigned a four- or five-starrating. AuM reflect the AuM of Asset Management’sretail and institutional funds (both actively managed and passive)across all domiciles for which Asset Management
owns the investment performance, i.e. Asset Management is either the sole portfolio manager or co-portfolio manager. Universe is approximately 36% of all active and passive traditional assets of Asset Management
(Equities, Fixed Income excluding money market, andMulti-asset) as of 31 December 2025.3 Percentage of AuM above peer medianover a three-year investment period.AuM reflect the AuMof Asset Management’s
actively managed open-endedretail and institutionalfunds across alldomiciles for whichAsset Management ownsthe investment performance,i.e. AssetManagement is eitherthe sole portfoliomanager or co-
portfolio manager. Universe is approximately 27% of all activetraditional assets of Asset Management (Equities, Fixed Income excluding money market,and Multi-asset) as of 31 December 2025.
Annual Report 2025 |
Financial and operating performance | Investment Bank81
Investment Bank
Investment Bank
As of or for the year ended
% change from
USD m, except where indicated
31.12.25
31.12.24
31.12.24
Results
Advisory
1,003
907
11
Capital Markets
2,195
2,547
(14)
Global Banking
3,198
3,454
(7)
Execution Services
2,186
1,719
27
Derivatives & Solutions
4,256
3,478
22
Financing
2,700
2,297
18
Global Markets
9,141
7,494
22
of which: Equities
6,647
5,588
19
of which: Foreign Exchange, Rates and Credit
2,494
1,906
31
Total revenues
12,340
10,948
13
Credit loss expense / (release)
133
97
38
Operating expenses
9,387
8,934
5
Business division operating profit / (loss) before tax
2,819
1,917
47
Underlying results
Total revenues as reported
12,340
10,948
13
of which: PPA effects and other integration items
1
570
989
(42)
of which: PPA effects
443
989
(55)
of which: PPA effects recognized in the Global Banking revenue line
468
972
(52)
of which: other integration items
128
2
Total revenues (underlying)
3
11,769
9,958
18
Credit loss expense / (release)
133
97
38
Operating expenses as reported
9,387
8,934
5
of which: integration-related expenses
3
463
717
(35)
Operating expenses (underlying)
3
8,924
8,217
9
of which: net expenses / (releases) for litigation, regulatory and similar matters
20
9
129
Business division operating profit / (loss) before tax as reported
2,819
1,917
47
Business division operating profit / (loss) before tax (underlying)
3
2,712
1,644
65
Performance measures and other information
Pre-tax profit growth (year-on-year,%)
3
47.1
n.m.
Cost / income ratio (%)
3
76.1
81.6
Average attributed equity (USD bn)
4
18.4
17.1
8
Return on attributed equity (%)
3,4
15.3
11.2
Underlying performance measures
Pre-tax profit growth (year-on-year,%)
3
64.9
n.m.
Cost / income ratio (%)
3
75.8
82.5
Return on attributed equity (%)
3,4
14.8
9.6
1 Includes accretion of PPA adjustments on financial instruments and other PPAeffects, as well as temporary and incremental items directly related to the integration.2 Represents the gain from the sale of a stake
in a subsidiary, Credit Suisse Securities (China) Limited.3 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. Each alternative performance measure
(APM) that qualifies as a non-GAAP measureas defined by US Securities and ExchangeCommission (SEC) regulations is designated as suchin the table of APMs in the appendixto this report. For more information
about underlying results, refer to the “Group performance” section of this report.4 Refer to the “Capital management” section of this report for more information about the equity attribution framework.
Annual Report 2025 |
Financial and operating performance | Investment Bank82
2025 compared with 2024
Results
Profit before tax increased by USD 902m, or 47%, to USD 2,819m, due to higher total revenues, partly offset by higher
operating expensesand netcreditloss expenses.Underlying profitbefore taxwas USD 2,712m,an increaseof 65%,
afterexcluding fromtotalrevenuesUSD 570mofpurchasepriceallocation(PPA)effectsandotherintegration items
(including again fromthe saleof astake ina subsidiary,Credit SuisseSecurities (China)Limited (CSS))and excluding
from operating expenses USD 463m of integration-related expenses.
Total revenues
Totalrevenues increasedby USD 1,392m, or13%, to USD 12,340m,mainly due tohigher revenuesin Global Markets
and aUSD 128m gain fromthe saleof astake inCSS, partlyoffset bya USD 546mdecrease inPPAaccretion effects.
Excluding this gain and such accretion effects, underlying total revenues were USD 11,769m, an increase of 18%.
Global Banking
Global Bankingrevenues decreasedby USD 256m,or 7%,to USD 3,198m,mostly drivenby aUSD 504m decreasein
PPA accretioneffects on financial instruments and other PPAeffects, partly offset by the aforementionedgain from the
sale of astake in CSS.Excluding this gainand such accretion andother effects, underlyingGlobal Banking revenueswere
USD 2,615m, an increase of USD 133m, or 5%, driven by higher revenues in Advisory and Capital Markets.
Advisory revenuesincreased byUSD 96m, or11%, toUSD 1,003m, largelydriven byan increasein mergerand acquisition
transaction revenues.
Capital Markets revenues decreased by USD 352m,or 14%, to USD 2,195m, mostly driven by a USD 504mdecrease in
PPA accretioneffects on financial instruments and other PPAeffects, partly offset by the aforementionedgain from the
sale ofa stakein CSS.Excluding thisgain andsuch accretionand othereffects, underlyingCapital Marketsrevenues
increased by USD 37m, or 2%.
Global Markets
Global Markets revenuesincreased by USD 1,647m,or 22%, toUSD 9,141m, driven by higherDerivatives & Solutions,
Execution Services and Financing revenues,and included a gain of USD 102m on a strategic investment,which was split
equally across product verticals.
Execution Servicesrevenues increasedby USD 467m,or 27%,to USD 2,186m,mainly drivenby higherCash Equities
revenues across all regions, reflecting higher volumes.
Derivatives & Solutions revenues increasedby USD 778m, or 22%, to USD 4,256m,driven by higher volatility and higher
levels of client activity.
Financing revenuesincreased byUSD 403m, or18%, toUSD 2,700m, ledby PrimeBrokerage revenues,supported by
higher client balances. Included in 2024 was a gain of USD 67m on the sale of our investment in an associate.
Equities
Global Markets Equities revenues increased by USD 1,059m, or 19%, to USD 6,647m, mainly driven by higher revenues
in PrimeBrokerage, CashEquities andEquity Derivatives.Included in2024 wasa gainof USD 67mon thesale ofour
investment in an associate.
Foreign Exchange, Rates and Credit
Global Markets Foreign Exchange, Rates and Creditrevenues increased by USD 588m, or31%, to USD 2,494m, mainly
driven by increases in Foreign Exchange revenues and included a gain of USD 102m on a strategic investment.
Credit loss expense / release
Net creditloss expenseswere USD 133m,mainly reflectingnet expenseson credit-impairedpositions, comparedwith
net credit loss expenses of USD 97m in 2024.
Operating expenses
Operating expenses increased by USD 453m, or 5%, to USD 9,387m and included a USD 254m decrease in integration-
relatedexpenses.Excludingintegration-relatedexpensesofUSD 463m,underlyingoperatingexpenseswere
USD 8,924m, an increase of 9%, mainly due to higher personnel expenses and adverse foreign exchange effects.
Return on attributed equity
Return on attributed equity was 15.3%, compared with 11.2% in 2024. The underlyingreturn on attributed equity was
14.8%, compared with 9.6% in 2024.
Cost / income ratio
The cost / income ratio decreasedto 76.1% from 81.6%,with a decrease onan underlying basisto 75.8% from 82.5%,
as increasesin totalrevenues andunderlying totalrevenues, respectively, more thanoffset increasesin operatingexpenses
and underlying operating expenses.
Annual Report 2025 |
Financial and operating performance | Non-core and Legacy83
Non-core and Legacy
Non-core and Legacy
As of or for the year ended
% change from
USD m, except where indicated
31.12.25
31.12.24
31.12.24
Results
Total revenues
154
1,605
(90)
Credit loss expense / (release)
(1)
69
Operating expenses
1,353
3,512
(61)
Operating profit / (loss) before tax
(1,199)
(1,976)
(39)
Underlying results
Total revenues as reported
154
1,605
(90)
of which: other integration items
1
4
Total revenues (underlying)
2
150
1,605
(91)
Credit loss expense / (release)
(1)
69
Operating expenses as reported
1,353
3,512
(61)
of which: integration-related expenses
2
882
1,154
(24)
Operating expenses (underlying)
2
472
2,359
(80)
of which: net expenses / (releases) for litigation, regulatory and similar matters
(833)
(300)
178
Operating profit / (loss) before tax as reported
(1,199)
(1,976)
(39)
Operating profit / (loss) before tax (underlying)
2
(321)
(822)
(61)
Performance measures and other information
Average attributed equity (USD bn)
3
5.4
9.5
(43)
Risk-weighted assets (USD bn)
28.8
41.4
(30)
Leverage ratio denominator (USD bn)
19.1
53.5
(64)
1 Includes temporary and incremental items directly related to the integration.2 Refer to “Alternative performance measures” in the appendix to this report for the definitionand calculation method. Each alternative
performance measure (APM) that qualifies as a non-GAAP measureas defined by US Securities and Exchange Commission (SEC)regulations is designated as such in the table of APMsin the appendix to this report.
For more information about underlying results, refer to the “Group performance” section of this report.3 Refer to the “Capital management” section of this report for more information about the equity attribution
framework.
Composition of Non-core and Legacy
Total assets
RWA
LRD
31.12.25
31.12.24
31.12.25
31.12.24
31.12.25
31.12.24
Exposure category
Equities
0.8
2.6
0.3
0.9
0.3
2.0
Macro
9.2
26.3
1.9
4.4
3.7
10.2
Loans
0.7
3.2
0.8
2.8
0.7
4.0
Securitized products
2.8
7.4
1.5
5.2
2.9
8.8
Credit
0.2
0.2
0.1
0.3
0.1
0.2
High-quality liquid assets
10.6
27.2
10.6
27.2
Operational risk
24.0
27.1
Other
1.1
1.4
0.4
0.7
0.9
1.1
Total
25.4
68.3
28.8
41.4
19.1
53.5
2025 compared with 2024
Results
LossbeforetaxwasUSD 1,199m,comparedwithalossbeforetaxofUSD 1,976m.Underlyinglossbeforetaxwas
USD 321m, after excludingfrom operating expensesUSD 882m of integration-relatedexpenses and excludingfrom total
revenues USD 4m of other integration items, compared with an underlying loss before tax of USD 822m.
Annual Report 2025 |
Financial and operating performance | Non-core and Legacy84
Total revenues
Totalrevenues wereUSD 154m, adecrease ofUSD 1,451m, or90%, mainlyreflecting lowernet gainsfrom position
exits andlower netinterest incomefrom securitizedproduct andcredit portfolios,partly offsetby lowerliquidity and
funding costs, as aresult of thesmaller portfolio. Totalrevenues in 2025included a gainof USD 97m fromthe sale of
SelectPortfolioServicing,theUSmortgageservicingbusinessofCreditSuisse.Totalrevenuesin2024includeda
USD 67m gain from the sale of ourinvestment in an associate, as well as anet gain of USD 272m, after accounting for
the purchase price allocation adjustments recorded at the closingof the acquisition of the Credit Suisse Group, from the
sale ofassets from theformer Credit Suissesecuritized products groupto ApolloManagement Holdingsand certainother
entities.
Credit loss expense / release
Net credit loss releases were USD 1m, compared with net credit loss expenses of USD 69m in 2024.
Operating expenses
Operating expenses were USD 1,353m, a decreaseof USD 2,159m, or 61%, and included USD 833m of netreleases in
provisions and acquisition-related contingent liabilities resultingfrom litigation, regulatory and similarmatters, primarily
dueto USD 673mofnet releasesin thethirdquarter of2025relatedtothe completionof obligationsunder Credit
Suisse’s residentialmortgage-backed securitiessettlement withthe USDepartment ofJustice anda USD 427mnet release
recordedin thesecond quarterof 2025related tothe resolutionof alegacy CreditSuisse cross-bordermatter,partly
offset by expenses related to increases in other litigation provisions.The decrease also reflected lower technology costs,
premisesandfacilitiescosts,personnelexpenses,andriskmanagementcostsandincludedaUSD 272mdecreasein
integration-related expenses. Excluding integration-related expenses of USD 882m, underlying operating expenses were
USD 472m, a decrease of 80%.
›
Refer to “Note 17 Provisions and contingent liabilities” in the “Consolidated financial statements” sectionof this report for more
information about litigation, regulatory and similar matters
Risk-weighted assets and leverage ratio denominator
Risk-weighted assets(RWA)decreasedbyUSD 12.6bntoUSD 28.8bn, andtheleverageratiodenominator(theLRD)
decreased by USD 34.4bn to USD 19.1bn. The active unwinding of Non-core and Legacy assets resulted in a decrease in
RWA, mainly related to thesecuritized product, macro and loanportfolios, and a decrease inthe LRD, mainly driven by
reductions in high-quality liquidassets, which decreased by USD 16.6bn,primarily as a result ofa reduction in the overall
Non-core and Legacy balance sheet, as well as reductions in the macro, securitized product and loan portfolios.
Annual Report 2025 |
Financial and operating performance | Group Items85
Group Items
Group Items
As of or for the year ended
% change from
USD m
31.12.25
31.12.24
31.12.24
Results
Total revenues
(1,190)
(975)
22
Credit loss expense / (release)
2
(2)
Operating expenses
(2)
(220)
(99)
Operating profit / (loss) before tax
(1,190)
(752)
58
Underlying results
Total revenues as reported
(1,190)
(975)
22
of which: PPA effects and other integration items
1
(323)
2
(41)
681
Total revenues (underlying)
3
(867)
(933)
(7)
Credit loss expense / (release)
2
(2)
Operating expenses as reported
(2)
(220)
(99)
of which: integration-related expenses
3
53
(12)
Operating expenses (underlying)
3
(56)
(208)
(73)
of which: net expenses / (releases) for litigation, regulatory and similar matters
75
9
704
Operating profit / (loss) before tax as reported
(1,190)
(752)
58
Operating profit / (loss) before tax (underlying)
3
(813)
(723)
13
1 Includes accretion ofPPA adjustmentson financial instrumentsand other PPAeffects, as wellas temporary andincremental items directlyrelated to theintegration.2 Includes a USD 457mnet loss fromthe
repurchase of legacy Credit Suisse debt instruments, as the repurchase price exceeded the amortized-cost carrying value (the net loss reflects a loss of USD 885m before PPA adjustments,partly offset by a USD 427m
gain from the release of PPA adjustments).3 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method. Each alternative performance measure (APM) that
qualifies as anon-GAAP measureas definedby USSecurities and ExchangeCommission (SEC)regulations isdesignated assuch inthe table ofAPMs inthe appendix tothis report.For moreinformation about
underlying results, refer to the “Group performance” section of this report.
2025 compared with 2024
Results
Loss before tax was USD 1,190m, mainlydriven by a net lossof USD 457m from the repurchase oflegacy Credit Suisse
debt instruments (which included the release of purchase price allocation (PPA) adjustments of USD 427m), deferred tax
assetfundingcosts,mark-to-marketlossesfromGrouphedgingandowndebt,includinghedgeaccounting
ineffectiveness, and an increase inprovisions for litigation, regulatoryand similar matters. The USD 438mincrease in loss
before taxbetween theperiods waslargely dueto theaforementioned drivers,except fordeferred taxasset funding
costs, which were broadly stable.
Underlying loss beforetax wasUSD 813m, after excludingfrom total revenuesnegative USD 323m ofPPA effects and
other integration items,which included theaforementioned net lossof USD 457m, andalso excluding fromoperating
expenses USD 53m ofintegration-related expenses. Thiscompared with anunderlying loss beforetax ofUSD 723m in
2024.
Income from Grouphedging and owndebt, including hedgeaccounting ineffectiveness, wasnet negative USD 101m,
compared with net negativeincome of USD 175m in 2024.The losses in 2025were driven by mark-to-marketeffects on
own credit and portfolio-level economic hedges.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet86
Risk, capital, liquidity and
funding, and balance sheet
Management report
Audited information according to IFRS 7 and IAS 1
Risk and capitaldisclosures provided inline with therequirements of IFRS 7,
Financial Instruments: Disclosures,
and IAS 1,
Presentationof
FinancialStatements,
formpartofthefinancialstatementsincludedinthe“Consolidatedfinancial
statements” section of this report andare audited by the independent registeredpublic accounting firm Ernst & Young
Ltd, Basel. This information is marked as “Audited” within this section of the report.
Signposts
The
Audited |
signpost that is displayed at the beginning of a section, table or chart indicates that those items have been audited. A triangle symbol –
–
indicates the end of the audited section, table or chart.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control88
Risk management and control
In the initial phases of the integration of Credit Suisse, the risk management focus was on the alignment of governance
structures and frameworks, including the harmonization of CreditSuisse policies with UBS standards. In 2025,with the
exposurereductionsinNon-coreandLegacyandthesignificantachievementsmadewithrespecttoclientaccount
migrations (as part of the overall integration), we have substantially reducedthe proportion of risks managed on legacy
Credit Suisse platforms. We also transitioned to a single model risk management framework.
Top and emerging risks
An overviewof ourtop andemerging risks,from arisk managementperspective, isdisclosed below.Investors should
also carefully review all information set outin the “Risk factors” sectionof this report, where we discuss these andother
materialrisksthatcouldhaveaneffectonourabilitytoexecuteourstrategyandmayaffectourbusiness activities,
financial condition, results of operations and business prospects.
Top and emerging risk
Description
Geopolitical uncertainty
We remain watchful of a broad range of geopolitical developments and political changes in a number of countries,
including intensifying rivalries among major powers, the re-emergence of regional spheres of influence and continued
stress on multi-lateral economic and security institutions. Global trade relations remain fragile, as tariff-related policies
persist. In addition, structural challenges in the US–China relationship remain significant. In parallel, the reshaping of
international trade relationships is driving significant changes in global supply chains, adding further uncertainty and
potential disruption to cross-border trade flows.
Macroeconomic risks
We are exposed to a number of macroeconomic risks, as well as general market conditions. As noted in “Market,
credit and macroeconomic risks” in the “Risk factors” section of this report, these external pressures may have a
significant adverse effect on our business activities and related financial results, primarily through reduced margins and
revenues, asset impairments and other valuation adjustments. Accordingly,these macroeconomic factors are
considered in the development of stress-testing scenarios for our ongoing risk management activities.
Inflation has remained broadly stable in major Western economies, though there are still concerns that inflation could
return, including upward pressure on interest rates. Central banks’ monetary policies therefore continue to be a key
driver of financial market conditions. In parallel, concerns around developed market sovereign debt sustainability have
heightened, with fiscal deterioration in several advanced economies contributing to volatility in long-term bond yields.
We are closely monitoring foreign exchange volatility and currency valuations, including the weakening of the US
dollar and the appreciation of the Swiss franc against other major currencies.
Elevated valuations across various assets classes, alongside accelerated capital flows into artificial intelligence (AI)- and
technology-related equities, present the risk of a potential bubble, particularly if adoption trends in these areas slow or
macroeconomic conditions weaken.
Non-bank financial institutions
and private markets
Non-bank financial institutions (NBFIs) and private markets, in particular, have come further into focus in 2025,
expanding their role in credit provision, liquidity transformation and risk transfer across the financial system. We
remain watchful of the growing systemic and economic relevance of this sector,especially as its interconnectedness
with the financial sector has further deepened through funding relationships, derivatives exposures and the collateral
channel, heightening the potential for spillovers under stress.
Limited transparency around leverage, asset valuations and liquidity profiles may further obscure underlying risk
dynamics and complicate a comprehensive assessment of sector-wide vulnerabilities. These developments reinforcethe
importance of disciplined monitoring and proactive risk management of exposures and concentrations, and the
channels through which stress in NBFIs or private markets could transmit to the broader financial system.
Regulatory and legal risks
We are exposed to substantial changes in the regulation of our businesses that could have a material adverse effect on
our business, as discussed in the “Regulatory and legal developments” section of this report and in “Regulatory and
legal risks” in the “Risk factors” section of this report.
As a global financial services firm, we are subject to many different legal, tax and regulatory regimes and extensive
regulatory oversight. We are exposed to the risk that regulatory requirements acrossdifferent jurisdictions impose
inconsistent or conflicting requirements, or may do so in the future. We are also exposed to significant liability risk, and
we are subject to various claims, disputes, legal proceedings and government investigations, as noted in “Regulatory
and legal risks” in the “Risk factors” section of this report. Information about litigation, regulatory and similar matters
we consider significant is disclosed in “Note 17 Provisions and contingent liabilities” in the “Consolidated financial
statements” section of this report.
Cyber risks, third-party risks and
operational resilience
Global geopolitical trends increase the likelihood of external state-driven cyber activity. Combined with a broader shift
toward more sophisticated forms of ransomware and other cyber threats, there is a risk of operational disruption to
business activities at our locations and those of third-party suppliers, including potential corruption or loss of data. At
the same time, the dynamic and material nature of recent geopolitical and environmental events, combined with the
operational complexity of all our businesses, leads to the risk of disruption through operational resilience scenarios,
such as system failures or loss of third-party services.
›
Refer to “Non-financial risk” and “Cybersecurity and information security” in this section for moreinformation
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control89
Top and emerging risk
Description
Conduct risks
Conduct risks are inherent in our businesses. Achieving fair outcomes for our clients, upholding market integrity and
cultivating the highest standards of employee conduct are of critical importance to us. Management of conduct risks is
an integral part of our risk management framework.
›
Refer to “Non-financial risk” in this section and “Strategy,management and operational risks” in the “Risk factors”
section of this report for more information
Financial crime risks
Financial crime (including money laundering, terrorist financing, sanctions violations, fraud, bribery, and corruption)
presents significant risk and is subject to heightened regulatory expectations and attention. Emerging technologies and
changing geopolitical risks further increase the complexity of identifying and preventing financial crime, in particular
managing the continuously evolving sanctions environment, and requireinvestment in people, systems and
technology.
›
Refer to “Non-financial risk” in this section for more information
Sustainability and climate risks
Sustainability and climate risks continue to be in focus for UBS, for regulators and for stakeholders. Toaddress these
emerging risks, UBS has further enhanced its transition and physical risk methodologies, integrated climate-related
financial risks into key risk frameworks and updated its sustainability and climate risk policy to align with the
requirements of FINMA Circular 2026/1 “Nature-related financial risks”.
›
Refer to “Sustainability and climate risk” in this section for more information
›
Refer to “Appendix 1 – Governance” to the UBS Group Sustainability Report 2025, available under “Annual reporting”
at ubs.com/investors
, for a full description of our sustainability and climate risk policy framework
Regulatory requirements and industry guidelines are emerging simultaneously in various jurisdictions, leading to an
increased risk of divergence, which in turn increases the risk that UBS may not comply with all relevant regulations.
New technologies
New risks related to client demand for distributed ledger technology, blockchain-based assets and virtual currencies
continue to emerge. Our exposure to these risks is still relatively limited, and relevant control frameworks are
continuously being enhanced and implemented. Technological developments in the areas of AI anddigitalization will
have a significant impact in 2026 and create not only opportunities but also heightened operational risks.
With the ongoing digitalization and the adoption of new technologies, we continue to emphasize the responsible use
of AI and ethical data practices, in line with evolving regulatory requirements and client expectations. With rapidly
advancing technology and changing communication preferences, there is heightened focus on electronic
communications, including the use of approved channels and appropriate recordkeeping.
›
Refer to “Non-financial risk” in this section for more information
Risk identification
Risk identificationat UBSis theprocess ofsystematically identifying,assessing andcataloging risksacross allbusiness
activities and riskcategories.It is afundamental component ofour risk management approach,helping to ensurethat
thefirmmaintainsacomprehensiveunderstandingofitsriskexposure.Ourstructuredriskidentificationframework
integrates both bottom-upand top-down riskidentification approaches andenhances our abilityto capture,measure,
monitor and controlrisks, in alignment with global regulatoryexpectations. The process involves subject matter experts
from both the first and second linesof defense, including senior managementacross the organization, and is conducted
periodically, complementing day-to-day risk identificationand risk managementframeworks. By anchoringto a common
risk taxonomy and risk materiality approach, we aim to ensure consistent categorization andprioritization of risks across
business divisionsand significantGroup entities.Additionally,documenting root-causedrivers andearly-warning signs
strengthens our ability to monitor emerging risks.
Various reviewand approval stepsare embedded throughoutthe risk identificationprocess tomaximize risktransparency,
including presentation to seniorgovernance bodies for eachbusiness division, applicable significantGroup entities and
at the Group level. The output ofthe process helps ensure that UBS stress-testingexercises take into account the firm’s
key vulnerabilities, while also supporting broader risk management activity.
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Risk categories
We categorize our riskexposures as outlined inthe table below.Our risk appetite framework isdesigned to capture all
risk categories.
›
Refer to “Risk appetite framework” in this section for more information
Risk
managed by
Independent
oversight by
Financial risks
Audited |
Credit risk:
the risk of loss resulting from the failure of a client or counterparty (including an issuer) to meet its
contractual obligations toward UBS. This includes loan underwriting risk and settlement risk.
Loan underwriting risk:
the risk of loss arising during the holding period of financing transactions that are intended
for further distribution.
Settlement risk:
the short-term form of credit risk arising when UBS delivers its side of an agreed-upon transaction
but does not receive an expected value in return from the counterparty.
›
Refer to “Credit risk” in this section for more information
Business
divisions
Risk Control
Audited |
Market risk:
the risk of loss resulting from adverse movements in market variables. Market risks are actively
taken as part of trading activities but can also arise from non-trading activities. 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. Market risk also includes issuer risk.
Issuer risk:
the risk of loss that would occur if an issuer to which we are exposed through tradable securities or
derivatives referencing the issuer was subject to a credit-related event.
›
Refer to “Market risk” in this section for more information
Business
divisions and
Group
Treasury
Risk Control
Investment risk:
The risk of losses relative to the expected return on any particular investment (i.e. achieving lower actual
returns compared with expected returns).
›
Refer to “Market risk” in this section for more information
Business
divisions and
Group
Treasury
Risk Control
Treasury risk:
the risks associated with asset and liability management and our liquidity and funding positions, as well as
structural exposures.
Audited |
Liquidity risk:
the risk that UBS is unable to meet business-as-usual or stress cash / collateral flows.
Audited |
Funding risk:
the risk that UBS is unable to borrow funds to support its current business and desired
strategy.
›
Refer to the “Liquidity and funding management” section of this report for more information
Interest rate risk in the banking book:
the risk to the firm’s capital and earnings arising from the adverse effects of
interest rate movements on the firm’s banking book positions. The risk is transferred from the originating business
divisions, i.e. Global Wealth Management and Personal & Corporate Banking, to Group Treasuryto risk-manage this
centrally and benefit from Group-wide netting, while leaving the business divisions with margin management.
›
Refer to “Market risk” in this section for more information
Structural foreign exchange risk:
the risk of decreases in our capital or capital ratios due to adverse impacts from
changes in foreign exchange rates.
Group
Treasury
Risk Control
Pension risk:
the risk of a negative impact on our capital as a result of deteriorating funded status from decreases in the
fair value of assets held in defined benefit pension funds and / or changes in the value of defined benefit pension
obligations due to changes in actuarial assumptions (e.g. discount rate, life expectancy and rate of pension increase)
and / or changes to plan designs.
›
Refer to “Market risk” in this section for more information
Group
Treasury and
Human
Resources
Risk Control
and Finance
Country risk:
the risk of loss resulting from country-specific events. This includes the risk of sovereign default and also
transfer risk, which involves a country’s authorities preventing or restricting the payment of an obligation, as well as
systemic risk events arising from country-specific political or macroeconomic developments.
›
Refer to “Country risk” in this section for more information
Business
divisions
Risk Control
Sustainability and climate risk:
the risk that UBS negatively impacts, or is impacted by, climate change, nature, human
rights and other relevant environmental and social matters. Sustainability and climate risks may materialize as credit,
market, liquidity, business or non-financial risks for UBS, potentially leading to adverse financial, liability orreputational
impacts. These risks extend to the value of investments and may also affect the value of collateral (e.g. real estate).
Sustainability and climate risk includes transition risk and physical risk.
Transition risk:
climate-driven transition risks arise from the transition to a sustainable economy, in particular its
decarbonization, for example due to changes in policy, case law,technology or in the behavior of market participants.
This may contribute to a structural change across economies and consequently affect banks and the stability of the
wider financial sector.
Physical risk:
climate-driven physical risks arise from acute hazards, which are increasing in severity and frequency,
and chronic risks that arise from an incrementally changing climate. Climate-driven physical risks may contribute to
structural changes across economies and consequently affect banks and the stability of the wider financial sector.
›
Refer to “Sustainability and climate risk” in this section for more information
Business
divisions
Risk Control
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Risk, capital, liquidity and funding, and balance sheet | Risk management and control91
Risk
managed by
Independent
oversight by
Financial risks (continued)
Capital risk:
the risk that UBS does not maintain adequate capital to support its activities and maintain the minimum
capital requirements.
›
Refer to the “Capital management” section of this report for more information
Group
Treasury
Risk Control
and Finance
Business risk:
the potential negative impact on earnings from lower-than-expected business volumes and / or margins, to
the extent they are not offset by a decrease in expenses. For example, changes in the competitive landscape, client
behavior or market conditions can have a negative impact.
Business
divisions
Risk Control
and Finance
Strategic risk:
the idiosyncratic risk arising from the impact of strategic decisions on UBS, which can be driven by
exogenous factors, such as changes in the industry or regulatory environments, or by endogenous factors, such as
constraints related to or execution of strategic decisions.
›
Refer to “Strategy, management and operational risks”in the “Risk factors” section of this report for more information
Business
divisions and
Group
functions
Finance, Chief
Strategy Office
and Risk
Control
Non-financial risks
Compliance risk:
the risk of failure to comply with laws, rules and regulations, internal policies and procedures, and the
firm’s Code of Conduct and Ethics.
›
Refer to “Non-financial risk” in this section for more information
Business
divisions
GCORC
Employment risk:
the risks arising from acts inconsistent with laws, rules and regulations or the firm‘s policies
governing employment practices, health and well-being, discrimination, performance and compensation, and
employee-related taxes and benefits. Also includes risks arising from loss of key staff, excessive turnover,inadequate
resourcing and failure to implement comprehensive succession plans for key positions, as well as those arising from
failure to perform an appropriate vetting process including stringent due diligence and background checks, in orderto
ensure on-boarded staff are fit and proper.
Human
Resources
Conduct risk:
the risk that the conduct of the firm or its individuals unfairly impacts clients or counterparties,
undermines the integrity of the financial system or impairs effective competition to the detriment of consumers.
GCORC
Market conduct risk:
the risk of failure to maintain appropriate standards to ensure fair and effective markets and
meet legal / regulatory requirements and expectations governing activities undertaken on or through a market or in
pricing- / transaction-related bilateral interactions between counterparties.
GCORC
Client suitability risk:
the risk that clients are provided with products or services that do not match their investor
profile, including their investment objectives, financial situation, time horizon, risk tolerance, and knowledge and
experience, resulting in the client receiving a productor service that is not suitable for their individual circumstances.
GCORC
Financial crime risk:
the risk of failure to prevent financial crime (including money laundering, terrorist financing,
sanctions or embargo violations, internal and external fraud, bribery, and corruption).
›
Refer to “Non-financial risk” in this section for more information
Business
divisions
GCORC
Operational risk:
the risk resulting from inadequate or failed internal processes,people or systems, or from external
causes (deliberate, accidental or natural).
›
Refer to “Non-financial risk” in this section for more information
Business
divisions
GCORC
Cybersecurity and information-security risk:
the risk that a malicious internal or external act, a failure of
technology, or human error materiallycompromises the confidentiality, integrity or availability of UBS’s data, systems
or services.
›
Refer to “Non-financial risk” in this section for more information
Business
divisions and
Group
Technology
GCORC
Third-party risk:
the risk arising from consuming goods or services from third parties (from a Group or legal entity
perspective) and their subcontractors, including inadequate oversight or non-compliance with policy or regulatory
requirements that may lead to operational disruption, data compromise or reputational harm.
›
Refer to “Non-financial risk” in this section for more information
Business
divisions and
Group
functions
GCORC
Model risk:
the risk of adverse consequences (e.g. financial loss, due to legal matters, operational loss, biased
business decisions, or reputational damage) resulting from decisions based on incorrect,inadequate or misused model
outputs and reports.
›
Refer to “Model risk” in this section for more information
Business
divisions and
Group
functions
Risk Control
Legal risk:
the risk of: (i) being held liable for a breach of applicable laws, rules or regulations; (ii) being held liable for a
breach of contractual or other legal obligations; (iii) an inability or failure to enforce or protect contractual rightsor non-
contractual rights sufficiently to protect UBS’s interests; and (iv) being party to a claim or investigated by a regulator or
public authority in respect of any of the above (and the risk of loss of attorney–client privilege in the context of any such
claim).
Business
divisions
Legal
Reputational risk:
the risk of an unfavorable perception of UBS or a decline in the firm’s reputation from the point of
view of clients, shareholders, regulators, employees or society,which may lead to potential financial loss and / or loss of
market share.
›
Refer to “Non-financial risk” in this section for more information
All business
divisions and
Group
functions
All control
functions
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Overview of risks arising from our business activities
Key risks by business division and Group functions
Business divisions and Group functions
Key financial risks arising from business activities
Global Wealth Management
Credit risk
from collateralized lending primarily against securities, residential and commercial real estate,
other real assets (such as ships and aircraft), private market and hedge fund interest, and investors’ uncalled
capital commitments, as well as from collateralized clients’ derivatives trading. Also includes unsecured
lending, i.e. recourse-based lending and cash-flow-based corporate lending to entities owned and controlled
by our Global Wealth Management clients.
Limited contribution to
market risk
from municipal securities and taxable fixed-income securities. Interest
rate risk in the banking book related to Global Wealth Management is transferred to and managed by Group
Treasury.
Personal & Corporate Banking
Credit risk
from mortgages (owner-occupied and income-producing), secured and unsecured corporate
lending, commodity trade finance, trade and export finance, consumer finance, and lending to banks and
other regulated clients, as well as a small amount of derivatives trading activity.
Minimal contribution to
market risk
. Interest rate risk in the banking book related to Personal & Corporate
Banking is transferred to and managed by Group Treasury.
Asset Management
Limited exposure to
credit risk
and
market risk
from on-balance sheet positions such as seed capital and co-
investments in funds managed by Asset Management.
Indirect exposure to credit risk and market risk from client assets invested in Asset Management funds, which
can adversely impact management and performance fees and cause heightened fund outflows and liquidity
risk.
Investment Bank
Credit risk
from lending (take-and-hold, as well as temporary loan underwriting activities) and counterparty
credit risk from derivatives trading and securities financing.
Market risk
from secondary trading and primary underwriting activities.
Non-core and Legacy
Credit risk
arising from a residual portfolio of less-liquid structured financing transactions, including some
with residential and commercial real estate collateral and a small number of trades remaining from a
corporate loan portfolio.
Market risk
is limited and resultsfrom a largely hedged portfolio of both complex and simple credit, interest
rate and equity derivative transactions.
Group functions
Credit risk
,
market risk
and
treasury risk
arising from Group Treasury’smanagement of the Group’s
balance sheet (asset and liability management), capital, profit or loss, and liquidity and funding.
All the business divisions and Group functions are exposed to
country risk
,
sustainability and climate risk
and
non-financial risk
.
Non-financial risk is an
inevitable consequence of being an operating firm and can arise as a result of our past and current business activities.
Risk oversight
Risk governance
Our risk governance framework operates along three lines of defense.
Our first line ofdefense, business and Groupfunctions management, owns itsrisks and is accountablefor maintaining
effective processesand systemsto managethem incompliance withapplicable laws,rules andregulations, aswell as
internal standards, including identifying control weaknesses and inadequate processes.
Oursecondlineofdefense, controlfunctions,isseparatefromthebusinessandreportsdirectlytotheGroupChief
Executive Officer(theGroup CEO).Control functionsprovide independentoversight, challengefinancial andnon-financial
risks arising from thefirm’s business activities, andestablish independent frameworks forrisk assessment, measurement,
aggregation, control and reporting, protecting against non-compliance with applicable laws, rules and regulations.
Ourthirdline ofdefense, GroupInternal Audit,reports totheChairman andtotheAuditCommittee. Thisfunction
assesses the designand operating effectivenessand sustainability ofprocesses to definerisk appetite, governance,risk
management, internalcontrols, remediationactivities andprocesses tocomply withlegal andregulatory requirements
and internal governance standards.
The key roles andresponsibilities for risk managementand control are shownin the chart belowand described further
below.
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Audited |
The Board ofDirectors (the BoD)approves the riskmanagement and control frameworkof the Group,including
the Group andbusiness division overallrisk appetite. TheBoD is supported byits Risk Committee, whichmonitors and
oversees the Group’s risk profile andthe implementation of the risk framework approvedby the BoD and approves the
Group’s risk appetite methodology.
›
Refer to the “Corporate governance” section of this report for more information about the responsibilities of the Risk Committee
and other BoD committees
The Group ExecutiveBoard (the GEB)has overall responsibilityfor establishing andimplementing a riskmanagement and
control framework in the Group, managing the risk profile of the Group as a whole.
TheGroupCEOhasresponsibilityandaccountabilityforthemanagementandperformanceoftheGroup,hasrisk
authority over transactions,positions and exposures,and allocates riskauthority delegated bythe BoD tothe business
divisions and Group functions.
The business divisionPresidents and Groupfunction heads areresponsible for theoperation and managementof their
business divisions and Group functions, including controlling the risk appetite of the business divisions.
The regional Presidents ensure cross-divisional collaboration in their regions and are mandated to inform the GEB about
any regional activities and issues that may give rise to actual or potentially material regulatory or reputational concerns.
The Group ChiefRisk Officer (theGroup CRO) isresponsible for developingthe Group’s riskmanagement and control
framework (including risk principles and risk appetite) forcredit, market, country, treasury, model and sustainability and
climate risks. This includes risk measurement and aggregation, portfolio controls, risk reporting, and taking decisions on
transactions,positions,exposures,portfoliolimitsandallowancesinaccordancewiththeriskcontrolauthorities
delegated to the Group CRO.
TheGroupChiefComplianceandOperationalRiskControlOfficerisresponsiblefordevelopingtheGroup’srisk
managementandcontrolframework(includingtaxonomiesandriskappetite)fornon-financialrisks.Thisincludes
implementing independent control frameworks forcompliance and conduct, financialcrime, and operational risks.The
Group Chief Complianceand Operational RiskControl Officer isalso responsible formanaging the Group’snew business
governance process and governing the Group’s internal and external investigations portfolio.
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The Group Chief Financial Officer (the Group CFO) is responsible fortransparency in assessing the financial performance
ofthe Groupand thebusiness divisionsand formanaging theGroup’s financialaccounting, controlling,forecasting,
planning and reporting.The Group CFOalso ensures assetand liability managementby balancing consumptionof the
Group’s financial resources. The Group CFOis, in addition, responsible for developingthe Group’s governmental policy
andregulatoryapproach,coordinatingexternalgovernmentalandregulatoryrelations,andoverseeingimportant
regulatory matters.
The Group Chief Operating Officer(the Group COO) developsand coordinates the Group-wide operationalintegration
and alignment of the businessdivisions in support of the implementationof the Group’s strategy andis responsible for
drivingdigitalization,deliveringtechnologyservices,infrastructureandoperations,includingcybersecurityand
information security,and providingGroup-wide datagovernance. TheGroup COOis alsoresponsible forcoordinating
and supporting the Group’s efforts to deliver on its Group-wide sustainability and impact ambitions.
The Group General Counselmanages the Group’slegal affairs, includingeffective and timelyassessment of legalmatters
impacting the Group or its businesses, and managing and reporting all litigation matters.
The HeadGroup HumanResources andCorporate Services
defines and executes ahuman resources strategy alignedto UBS’s
objectives, supplies realestate infrastructure andcontrols supply anddemand management activities
.
Some of theseroles and responsibilitiesare replicated onthe level ofthe business divisions,regions and / or significant
entities of theGroup. Designated entityrisk officers overseeand control financialand non-financial risks forsignificant
entities of UBSas part ofthe entity controlframework, which complements theGroup’s risk management andcontrol
framework.
Internal risk reporting
Comprehensive andtransparent reportingof risksis centralto ourrisk governanceframework’s controland oversight
responsibilities andrequired by ourrisk managementand control principles.Accordingly, risks are reportedat afrequency
and levelof detailcommensurate withthe extentand variabilityof therisk andthe needsof thevarious governance
bodies, regulatorsand riskauthority holders.Data usedto producerisk reportsis generallyaligned withthat usedby
both the business divisions and control functions formanaging and monitoring risks. This alignmentensures consistency
in risk assessment and decision-making across the organization.
The GroupRisk Reportprovides adetailed qualitativeand quantitativemonthly overviewof developmentsin financial
and non-financial risks at the firm-wide level, includingthe status of our risk appetite objectives andthe results of firm-
widestresstesting.TheGroupRiskReportisdistributedinternallytotheBoD,theGEBandseniormembersofRisk
Control, Group Internal Audit, Finance and Legal. Risk reports are also produced covering significant Groupentities and
branches (i.e. entities and branches subject to enhanced standards of corporate governance).
Monthly business division andGroup Items risk reportsare supplemented with dailyor weekly reports, atvarious levels
of granularity, covering market,credit and treasury risksto enable risk officersand senior management tomonitor and
control the Group’s risk profile.
Our internalrisk reporting coversfinancial andnon-financial risksand is supportedby risk dataand measurement systems
that areused for riskmanagement and monitoringpurposes and alsofor external disclosureand regulatoryreporting.
DedicatedunitswithinRiskControlassumeresponsibilityformeasurement,analysisandreportingofriskandfor
overseeing the quality and integrity of risk-relateddata. Our risk data and measurementsystems are subject to periodic
review by Group Internal Audit, which applies a risk-based audit approach.
Risk appetite framework
Our riskappetite isdefined atthe aggregateGroup leveland reflectsthe riskthat weare willingto acceptor wishto
avoid. It is set via complementaryqualitative and quantitative risk appetitestatements defined at a Group-wide leveland
is embeddedthroughout ourbusiness divisionsand legalentities byGroup, businessdivision andlegal entitypolicies,
limits and authorities. Ourrisk appetite isreviewed and recalibratedannually,with the aimof ensuring thatrisk-taking
at every level ofthe organization isin line with ourstrategic priorities, ourcapital and liquidityplans, our
Pillars, Principles
and Behaviors
, and minimum regulatory requirements. It is governed by a single overarching policy and conforms to the
Financial StabilityBoard’s Principlesfor anEffective RiskAppetite Framework.The “Riskappetite framework”chart below
shows the key elements of the framework, which is described in detail in this section.
ubs-20251231p119i0 ubs-20251231p119i1
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Risk principles and risk culture
Qualitative risk appetite statements aim to ensure we maintain the desired risk culture. Maintaining a strong risk culture
is aprerequisite forsuccess intoday’s highlycomplex operatingenvironment anda sourceof sustainablecompetitive
advantage.
Our risk appetiteframework combines all theimportant elements of ourrisk culture, expressed inour
Pillars, Principles
andBehaviors
,ourriskmanagementandcontrolprinciples,ourCodeofConductandEthics,andourTotalReward
Principles. Theyhelp tocreate asolid foundationfor promotingrisk awareness,leading toappropriate risk-takingand
the establishing of robust risk management and control processes.
›
Refer to “Employees” in the “Our stakeholders” section of this report for more informationabout our Pillars, Principles and
Behaviors
›
Refer to the Code of Conduct and Ethics of UBS, available at
ubs.com/code
, for more information
Risk management and control principles
Protection of financial strength
Protecting our financial strength by controlling our risk exposure and avoiding potential risk concentrations at
individual exposure levels, at specific portfolio levels and at an aggregate firm-wide level across all risk types.
Protection of reputation
Protecting our reputation through a sound risk culture characterized by a holistic and integrated view of risk,
performance and reward, and through full compliance with our standards and principles, particularly our Code
of Conduct and Ethics.
Business management accountability
Maintaining management accountability, whereby business management owns all risks assumed throughoutthe
Group and is responsible for the continuous and active management of all risk exposures to provide for
balanced risk and return.
Independent controls
Independent control functions that monitor the effectiveness of the businesses’ risk management and oversee
risk-taking activities.
Risk disclosure
Disclosure of risks to senior management, the BoD, investors, regulators, credit rating agencies and other
stakeholders with an appropriate level of comprehensiveness and transparency.
Quantitative risk appetite objectives
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We useboth scenario-based stresstests andeconomic capitalrisk measurementtechniques tostress testour business
activities. The quantitative risk appetite objectives are supported by a comprehensive suite of risk limits set at a portfolio
leveltomonitorspecificportfoliosandtoidentifypotentialriskconcentrations.Theportfoliolimitsandassociated
approvalauthoritiesaresubjecttoperiodicreviewsandchanges,particularlyinthecontextofourannualbusiness
planning process. The status of our quantitative risk appetite objectives andportfolio limits is evaluated each month and
reported to the BoD and the GEB.
›
Refer to “Risk measurement” in this section for more information about stresstesting and our economic capital measures
Quantitative risk appetite objectives
Minimum capital objectives
CET1 capital is sufficient to meet minimum RWA-based capital requirements even if a severe stressevent were
to occur.
Minimum leverage ratio objectives
CET1 capital is sufficient to meet minimum leverage-ratio-based capital requirements even if a severe stress
event were to occur.
Solvency objectives
CET1 capital plus contingent capital is sufficient to ensure that the probability of loss for the firm’s debt holders
is consistent with the firm’s target credit rating.
Earnings objectives
Losses do not exceed average historical earnings even if a severe stress event were to occur.
Liquidity objectives
Ensure that the firm has sufficient liquidity to survive a severe three-month idiosyncratic and market-wide
liquidity stress event without government support, allowing for discrete management actions.
Funding objectives
Ensure that the firm has sufficient long-term funding to maintain franchise assets at a constant level under
stressed market conditions for up to one year without government support, allowing for discrete management
actions.
These objectives are complementedby a standardized setof quantitative non-financial riskappetite objectives, expressed
aspercentagesofthemonetaryimpactsfromnon-financialriskeventsrelativetototalrevenueandoperationalrisk
regulatory capital,respectively. Ifthese percentagesare exceeded,a reviewof keyloss driversand requiredmitigation
measures is triggered.
Risk appetite statements atthe business-division level arederived from the firm-widerisk appetite. They mayalso include
business-division-specific strategicgoals relatedto thatbusiness division’sactivities andrisks. Riskappetite statements
are also set for certain legal entities,which must be consistent with thefirm-wide risk appetite framework andapproved
inaccordancewithGroupandlegalentityregulations.Differencesmayexistthatreflectthespecificnature,size,
complexity and regulations applicable to the relevant legal entity.
Portfolio and position limits
We maintaina comprehensiveset ofrisk limitsacross ourmajor riskportfolios. Theseportfolio limitsare setbased on
our risk appetite and periodically reviewed and adjusted as part of the business planning process.
Firm-wide stressand statisticalmetrics arecomplemented bymore granularportfolio andposition limits,triggers and
indicators. Combining these measures providesa comprehensive framework for controlof the key risksof our business
divisions, as well as significant legal entities.
We apply limits to a variety of exposures at the portfoliolevel, using statistical and stress-based measures, such as value-
at-risk, liquidity-adjusted stress, loan underwriting limits, economic value sensitivity and portfolio default simulations for
loan books. These are complemented with a set of controls for net interestincome sensitivity, mark-to-market losses on
available-for-sale portfolios, and the effect of foreign exchange movements on capital and capital ratios.
Portfolio measures are supplemented with counterparty- and position-levelcontrols. Risk measures for position controls
arebasedonmarketrisksensitivitiesandcounterparty-levelcreditriskexposures.Marketrisksensitivitiesinclude
sensitivities to changes in general market riskfactors (e.g. equity indices, foreign exchange ratesand interest rates) and
sensitivitiestoissuer-specificfactors(e.g.changesinanissuer’screditspreadordefaultrisk).Wemonitornumerous
marketandtreasuryriskcontrolsonadailybasis.Counterpartymeasurescapturethecurrentandpotentialfuture
exposure to an individual counterparty, considering collateral and legally enforceable netting agreements.
›
Refer to
“
Credit risk
”
in this section for more information about counterparty limits
Risk measurement
Audited |
We apply avariety of methodologies and measurementsto quantify the risks ofour portfolios and potential risk
concentrations. Risks that are not fully reflected within standard measures are subject to additional controls, which may
includepreapprovalofspecifictransactionsandtheapplicationofspecificrestrictions.Modelstoquantifyriskare
generally developed by dedicated units within control functions and are subject to independent validation.
›
Refer to “Credit risk”, “Market risk” and “Non-financial risk” in this section for more informationabout model confirmation
procedures
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Stress testing
We perform stress testingto estimate lossesthat could resultfrom extreme yetplausible macroeconomic andgeopolitical
stress eventsto identify, betterunderstand andmanage ourpotential vulnerabilitiesand riskconcentrations. Stresstesting
has akey rolein ourlimits frameworkat thefirm-wide, businessdivision, legalentity andportfolio levels.Stresstest
results are regularly reported to the BoD and theGEB. We also provide detailed stress loss analysesto the Swiss Financial
MarketSupervisoryAuthority(FINMA)andregulatorsofourlegalentitiesinaccordancewiththeirrequirements.As
described in “Risk appetiteframework”, stress testing,along with economic capitalmeasures, has acentral role inour
risk appetite and business planning processes.
Our stress-testingframework hasthree pillars:(i) combined stresstests; (ii) anextensive setof portfolio-and risk-type-
specific stress tests; and (iii) reverse stress testing.
The combined stress-testing(CST) framework is scenariobased and aims toquantify overall firm-wideimpacts that could
resultfromvariouspotentialglobalsystemicevents.Theframeworkcapturesallmaterialrisks,ascoveredin“Risk
categories”, to the extent the risk is consistent with the narrative and main assumptions of the framework.
Scenarios are forward lookingand encompass macroeconomic andgeopolitical stress events calibratedto different levels
of severity. Ineach scenario, we assumechanges in a widerange of macroeconomic andmarket variables to stressthe
key risk drivers of our portfolios. We also capture the business risk resulting from lower fee, interest and trading income
net of lowerexpenses. These effectsare measured forall businesses andmaterial risk typesto calculate theaggregate
estimated effect of the given scenario on profit or loss,other comprehensive income, risk-weighted assets, the leverage
ratiodenominatorand,ultimately,capitalandleverageratios.Theassumedchangesinmacroeconomicandmarket
variables are updated periodically to account for changes in the current and possible future market environment.
At least once a year, the Risk Committee approves the most relevantscenario, known as the binding scenario, for use as
the main scenario for regular CST reportingand for monitoring risk exposure againstour minimum capital, earnings and
leverage ratioobjectives inour riskappetite framework. In2025, thebinding scenariofor CSTwas theinternal
global
crisis scenario
. Thisscenario assumesa fallin globaltrade, whichparticularly hitsChina andleads toa hardlanding.
Combined withpolitical, solvencyand liquidityconcerns, thisresults ina sharpsell-off ofemerging marketssovereign
debt and someemerging markets default.The macroeconomic andmarket impacts amplifyconcerns about peripheral
European sovereign debt, causing Greece and Cyprus to default.
As part of the CST framework, we routinely monitored the following three additional stress scenarios throughout 2025.
–
The
stagflationary geopolitical crisis scenario
assumes that a geopolitical event leads to economic regionalization and
fearsofprolongedstagflation.Centralbankssignalafirmcommitmenttopricestabilityandcontinuetotighten
monetary policy, triggering a broad rise in interest rates and impacting economic activity and asset values.
–
The
global depression scenario
explores a global risk-off market with a combination of political, solvency and liquidity
concernsaroundemergingmarketssovereigndebt,causingseverallargeemergingmarketstodefault.Several
Europeaneconomiesalsodefault,andsomeleavetheEurozone.Anegativefeedbackloopbetweencollapsing
demand,decliningassetvaluesandcommodityprices,anddisruptioninthebankingsystemleadstoadeepand
prolonged recession across the globe.
–
The
USmonetarycrisisscenario
exploresalossofconfidenceintheUS,whichleadstoasell-offofUS dollar-
denominated assets,sparking anabrupt andsubstantial depreciationof theUS dollar. TheUS economyis hithard,
financial markets enter a period ofhigh volatility and other industrialized countriesreplicate the cyclical pattern of the
US. Regionalinflation trendsdiverge asthe USexperiences significantinflationary pressureswhile otherdeveloped
markets experience deflation.
From thebeginning of 2026the binding scenariofor CSThas changed tothe global tradewar scenario. Thisscenario
assumes heightenedgeopolitical tensionsand explorestail risksconcerning USprotectionist policiesand retaliationby
the US’s trading partners. USpolicies solidify Switzerland as a safe-havencountry and the US dollardepreciates against
the Swiss franc. The scenario assumes that disruptions inglobal trade contribute to rising inflation and a large economic
contraction. Despiterising inflation,the FederalReserve makesmeasured interestrate cuts,and othermajor centralbanks
in advanced economies follow the same course.
Portfolio-specific stress tests aremeasures tailored to therisks of specific portfolios.Our portfolio stress lossmeasures are
derivedfromdataonpastevents,butalsoincludeforward-lookingelements(e.g.wederivetheexpectedmarket
movements in our liquidity-adjustedstress metric using acombination of historical marketbehavior, based on ananalysis
of historical events,and forward-looking analysis,including consideration ofdefined scenarios thathave never occurred).
Resultsofportfolio-specificstresstestsmaybesubjecttolimitstoexplicitlycontrolrisk-takingormaybemonitored
without limits to identify vulnerabilities.
Reverse stress testing starts froma defined stress outcome (e.g.a specified loss amount, reputational damage,a liquidity
shortfallorabreachofminimumcapitalratios)andworksbackwardtoidentifymacroeconomicscenariosand / or
idiosyncraticeventsthatcouldresultinsuchanoutcome.Assuch,reversestresstestingisintendedtocomplement
scenario-based stress testsby assuming “whatif” outcomes thatcould extend beyondthe range normallyconsidered,
and thereby potentially challenge assumptions regarding severity and plausibility.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control98
With regard to treasury risk, we routinely analyze the effect of movements in interest rates and changes in the structure
ofyieldcurves.Wealsoperformstresstestingtodeterminetheoptimalassetandliabilitystructure,enablingusto
maintain anappropriately balancedliquidity andfunding positionunder variousscenarios. Thesescenarios differfrom
thoseoutlinedabove,becausetheyfocusonspecificsituationsthatcouldgenerateliquidityandfundingstress,as
opposed to the scenarios used in the CST framework, which focus on the effect on profit or loss and capital.
›
Refer to “Credit risk” and “Market risk” in this section for more information aboutstress loss measures
›
Refer to the “Capital management” and “Liquidity and funding management” sections of this report formore information about
stress testing
›
Refer to “Note 19 Expected credit loss measurement” in the “Consolidated financialstatements” section of this report for more
information about scenarios used for expected credit loss measurement
Economic capital measures
Wecomplement thescenario-based CSTmeasureswith economiccapital stressmeasuresto calculateand aggregate
risks using statistical techniques to derive stress events at chosen confidence levels.
This economic capital framework is used to derive a loss distribution, considering effects on both income and expenses,
based on thesimulation of financialand economicrisk factors incombination withthe firm’s actualearnings and relevant
riskexposures.Fromthescenario-consistentlossdistribution,wedetermineearnings-at-risk(EaR),measuringthe
potential shortfall in earnings (i.e. the deviation from forecast earnings) at a 95% confidence level and evaluated over a
one-year horizon. EaR is used for the assessment of the earnings objectives in our risk appetite framework.
WeextendtheEaRmeasure,incorporatingtheeffectsofgainsandlossesrecognizedthroughothercomprehensive
income, toderive adistribution ofpotential effectsof stressevents oncommon equitytier 1 capital.From thisdistribution,
we derive our capital-at-risk (CaR) buffer measure at a 95% confidence level to assess our capital and leverage ratio risk
appetite objectives,and wederive ourCaR solvencymeasure ata 99.9% confidencelevel toassess oursolvency risk
appetite objective.
We use the CaR solvency measure as a basis for deriving the contributions of the business divisionsto risk-based capital
(RBC). RBC measures the potential capital impairment from an extreme stress event at a 99.9% confidence level.
Risk concentrations
Audited |
Risk concentrations may exist where one or several positions within or across different risk categories could result
in significant losses relative to UBS’s financial strength. Identifying such riskconcentrations and assessing their potential
impact is a critical component of our risk management and control process.
For financial risks, we considera number of elements, suchas shared characteristics of positions,the size of the portfolio
and the sensitivityof positions to changesin the underlyingrisk factors. We takeinto account directexposure from credit
and issuerrisk, aswell asindirect exposures,such asreliance oncollateral. Alsoimportant inour assessmentis theliquidity
of the markets wherethe positions are traded,as well as theavailability and effectiveness ofhedges or other potential
risk-mitigating factors. Particular attention is givento identification of wrong-way risk andrisk on risk. Wrong-way risk is
defined asa positivecorrelation betweenthe sizeof theexposure andthe likelihoodof aloss. Riskon riskrefers toa
situation where a position and its risk mitigation can be impacted by the same event.
For non-financial risks, risk concentrations may result from, for example, asingle non-financial risk issue that is large on
its own (i.e. it hasthe potential to producea single high-impact loss ora number of lossesthat together are highimpact)
or related non-financial risk issues that may link togetherto create a high impact. For example, we considerthe level of
risk arising from concentrationto a single counterparty,subcontractor or country inconnection with the managementof
third-party risk.
Risk concentrationsare subjectto increasedoversight byGroup RiskControl andGroup Complianceand Operational
Risk Control, andassessed to determinewhether they shouldbe reduced ormitigated, dependingon the availablemeans
to do so.It is possiblethat material lossescould occur onfinancial or non-financialrisks, particularly ifthe correlations
that emerge in a stressed environment differ markedly from those envisaged by risk models.
›
Refer to “Credit risk” and “Market risk” in this section for more information aboutthe composition of our portfolios and how risk
concentrations are monitored and mitigated
›
Refer to the “Risk factors” section of this report for more information
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control99
Credit risk
Audited |
Main sources of credit risk
–
In Global WealthManagement, credit riskarises from collateralizedlending, primarilyagainst securities, residentialand
commercialrealestate,otherrealassets(suchasshipsandaircraft),privatemarketandhedgefundinterest,and
investors’ uncalledcapital commitments, aswell asfrom collateralizedclients’ derivatives trading.In addition,credit
risk also arises from unsecured lending, i.e. recourse-based lending and cash-flow-based corporate lending to entities
owned and controlled by our Global Wealth Management clients.
–
AsubstantialportionofourcreditriskarisesfromPersonal&CorporateBanking’slendingexposure,including
mortgage loans, secured mainly by owner-occupiedproperties and income-producing real estate,as well as corporate
loans, that depends on the performance of the Swiss economy and real estate market.
–
The InvestmentBank’s creditrisk arisesmainly fromlending, derivatives tradingand securitiesfinancing. Derivatives
trading and securities financing are mainly investment grade. Loan underwriting activity can be lower rated and gives
rise to temporary concentrated exposure.
–
CreditriskinNon-coreandLegacyrelatestoaresidualportfolioofless-liquidstructuredfinancingtransactions,
including some with residential andcommercial real estate collateral anda small number oftrades remaining from a
corporate loan portfolio.
Audited |
Overview of measurement, monitoring and management techniques
–
Credit riskfrom transactionswith individualcounterparties isbased onour estimatesof probabilityof default(PD),
exposure at default (EAD) and loss given default(LGD). Limits are established for individual counterpartiesand groups
ofrelatedcounterpartiescoveringbankingandtradedproducts,andforsettlementamounts.Riskauthoritiesare
approved bythe Boardof Directorsand aredelegated tothe GroupCEO, theGroup ChiefRisk Officer(the Group
CRO) and divisional CROs, based on risk exposure amounts, internal credit rating and potential for losses.
–
Limits apply not onlyto the current outstandingamount but also tocontingent commitments and thepotential future
exposure of traded products.
–
The Investment Bank monitoring, measurement and limit frameworkdistinguishes between exposures intended to be
held to maturity (take-and-hold exposures) and those intended for distribution or risk transfer (temporary exposures).
–
We use models toderive portfolio credit riskmeasures of expected loss,statistical loss and stressloss at Group-wide
and business division levels, and to establish portfolio limits.
–
Credit risk concentrations can arise if clients are engaged in similar activities, located in the same geographical region
or havecomparable economiccharacteristics, e.g.if theirability tomeet contractualobligations wouldbe similarly
affected by changes in economic,political or other conditions. Toavoid credit risk concentrations, weestablish limits
and operational controls that constrain risk concentrations at portfolio, sub-portfolio or counterparty levels for sector
exposure, country risk exposure and specific product exposures.
Credit risk profile of the Group
Internally,we classifycredit riskexposures intotwo broadcategories: bankingproducts andtraded products.Banking
products include drawn loans, guarantees and loan commitments, amounts duefrom banks, balances at central banks,
and otherfinancial assetsat amortizedcost. Traded productsinclude over-the-counter (OTC)derivatives, exchange-traded
derivatives(ETD)andsecuritiesfinancingtransactions(SFTs),whichconsistofsecuritiesborrowingandlending,and
repurchase and reverse repurchase agreements.
The exposuresdetailed inthis sectionare basedon management’s viewof creditrisk, whichdiffers incertain respects
from the requirements of IFRS Accounting Standards.
›
Refer to “Note 1 Summary of material accounting policies” in the “Consolidated financial statements” section of this reportfor
more information about our accounting policy for allowances and provisions for ECL
›
Refer to “Note 9 Financial assets at amortized cost and other positions in scope of expected credit loss measurement”and
“Note 19 Expected credit loss measurement” in the “Consolidated financial statements”section of this report for more
information about ECL measurement requirements under IFRS
Accounting Standards
›
Refer to “Note 13 Other assets” in the “Consolidated financial statements” section of this reportfor more information about other
assets at amortized cost
›
Refer to “Note 21 Offsetting financial assets and financial liabilities” in the “Consolidated financialstatements” section of this
report for more information about our traded products exposure
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control100
Banking products
Banking products exposure in our business divisions and Group Items
31.12.25
USD m
Global
Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core
and Legacy
Group
Items
Total
Banking products exposure, gross
1,2
480,229
462,237
2,060
108,659
8,908
24,207
1,086,300
of which: loans and advances to customers (on-balance sheet)
322,441
310,207
7
21,158
601
1,921
656,336
of which: guarantees and irrevocable loan commitments (off-balance sheet)
20,400
48,469
2
35,901
674
23,777
129,223
Committed unconditionally revocable credit lines
3
69,537
49,495
0
528
4
115
119,679
Total credit-impaired exposure, gross
1
1,748
4,112
0
641
863
0
7,363
of which: stage 3
1,715
3,786
0
604
72
0
6,176
of which: PCI
33
326
0
36
791
0
1,187
Total allowances and provisions for expected credit losses
301
1,969
1
479
299
9
3,058
of which: stage 1
105
346
0
115
1
9
576
of which: stage 2
53
245
1
129
0
0
428
of which: stage 3
135
1,326
0
232
62
0
1,756
of which: PCI
9
51
0
2
236
0
298
31.12.24
USD m
Global
Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core
and Legacy
Group
Items
Total
Banking products exposure, gross
1,2
452,053
424,994
1,530
72,964
33,150
17,478
1,002,169
of which: loans and advances to customers (on-balance sheet)
295,856
266,869
9
17,497
1,163
551
581,944
of which: guarantees and irrevocable loan commitments (off-balance sheet)
18,978
46,986
5
34,516
2,211
17,164
119,859
Committed unconditionally revocable credit lines
3
79,460
65,749
0
452
4
0
145,665
Total credit-impaired exposure, gross
1
1,397
3,714
0
595
930
0
6,637
of which: stage 3
1,324
3,358
0
549
69
0
5,300
of which: PCI
73
356
0
46
861
0
1,337
Total allowances and provisions for expected credit losses
292
1,512
0
379
318
6
2,507
of which: stage 1
97
269
0
110
4
6
487
of which: stage 2
68
247
0
142
2
0
459
of which: stage 3
121
960
0
124
48
0
1,253
of which: PCI
7
36
0
2
264
0
309
1 IFRS 9 gross exposure for banking products includes the following financial instruments in scope of expected credit loss requirements: balances at centralbanks, amounts due from banks, loans and advances to
customers, other financial assets at amortized cost, guarantees and irrevocable loan commitments.2 Internal management view of credit risk, which differs in certain respects from IFRS Accounting Standards.
3 Commitments that can be canceled by UBS at any time but expose UBS to credit risk if the client has the ability to draw the facilitybefore UBS can take action. These commitments are subject to expectedcredit
loss requirements.
Global Wealth Management, Personal & Corporate Banking, and Investment Bank: banking products exposure, by
internal UBS ratings
1,2
USD m, except where indicated
31.12.25
31.12.24
Investment
grade /
Rating
1–5
Sub-investment grade
Defaulted /
Credit-
impaired
Banking
products
exposure,
gross
Investment
grade /
Rating
1–5
Sub-investment grade
Defaulted /
Credit-
impaired
Banking
products
exposure,
gross
Business divisions
Rating
6–9
Rating
10–13
Rating
6–9
Rating
10–13
Global Wealth Management
293,036
54,613
4,463
1,748
353,860
277,091
46,664
2,154
1,397
327,307
Personal & Corporate Banking
228,621
122,897
12,082
4,112
367,712
227,099
84,197
8,547
3,714
323,556
Investment Bank
29,624
19,034
16,442
641
65,742
26,347
16,692
15,582
595
59,216
1 Excluding balances at central banks and Group Treasuryreallocations.2 The ratings of the major credit rating agencies,and their mapping to our internal rating scale, are shownin the “Internal UBS rating scale
and mapping of external ratings” table in this section.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control101
Global Wealth Management
Gross banking products exposure increased byUSD 28bn to USD 480bn as of31 December 2025, predominantly dueto
theweakeningoftheUSdollaragainstothermajorcurrenciesandalsoduetonetnewloans.OurGlobalWealth
Management loanportfolio ismainly securedby adiversified portfolioof securities(standardLombardloans) andby
residential real estate.
As of 31 December 2025,94% of our USD 184bnof standard Lombardloans, including traded productscollateralized
bysecurities,wereratedasinvestmentgradebasedonourinternalratings.Moreover,standardLombardloansare
typically uncommitted,short-term innature andcan becanceled immediatelyif thecollateral qualitydeteriorates and
margin calls are notmet. Lending valuesin the Lombard bookare derived by applyingdiscounts (haircuts) to thepledged
collateral’smarketvalueinlinewithapossibleadversechangeinmarketvalueoveragivenclose-outperiodand
confidence level. Less-liquid or more volatilecollateral will typically have larger haircuts.In 2025, the standard Lombard
book, including traded products,grew by approximately 11%.
The residential real estate portfolio increased by approximately 6% in 2025, mainly driven by our Swiss mortgage book,
in line with the weakening of the US dollar against the Swiss franc by 15% over the course of 2025.
Specializedfinancingsasof31 December2025totaledUSD 59bn,includingtradedproducts.Thisportfoliomainly
consistsofnon-standardLombardlending,commercialrealestateloans,financingforships,yachtsandaircraft,
unsecuredlending,andloanscollateralizedwithuncalledcapitalcommitments.Thesefinancingsdecreasedby
approximately 6% in 2025, largely due to the wind down of non-strategic portfolios.
›
Refer to “Lending secured by real estate” and “Lombard lending” inthis section for further information about these types of
lending
Collateralization of Loans and advances to customers
1
Global Wealth Management
Personal & Corporate Banking
USD m, except where indicated
31.12.25
31.12.24
31.12.25
31.12.24
Secured by collateral
317,041
290,053
277,635
232,913
Residential real estate
106,816
106,124
222,369
184,404
Commercial / industrial real estate
9,535
9,312
39,755
36,682
Cash
31,220
28,418
4,428
2,624
Equity and debt instruments
141,203
120,223
3,234
2,778
Other collateral
2
28,267
25,977
7,849
6,424
Subject to guarantees
268
1,715
5,449
6,886
Uncollateralized and not subject to guarantees
5,132
4,088
27,123
27,070
Total loans and advances to customers, gross
322,441
295,856
310,207
266,869
Allowances
(235)
(221)
(1,702)
(1,271)
Total loans and advances to customers, net of allowances
322,206
295,635
308,505
265,598
Collateralized loans and advances to customers as a percentage of total loans and advances to customers, gross (%)
98.3
98.0
89.5
87.3
1 Collateral arrangements generally incorporate a range of collateral, including cash, equity and debt instruments, real estate, and other collateral. For the purpose of this disclosure, UBS applies a risk-based approach
that generallyprioritizes collateralaccording to itsliquidity profile.In the caseof loan facilitieswith funded andunfunded elements thecollateral isfirst allocatedto the fundedelement. Forlegacy Credit Suisse
infrastructure a risk-basedapproach is appliedthat generally prioritizesreal estate collateraland prioritizes othercollateral according toits liquidity profile.In the caseof loan facilitieswith funded andunfunded
elements the collateralis proportionately allocated.2 Includes but is notlimited to life insurancecontracts, rightsin respect ofsubscription or capitalcommitments from fundpartners, inventory,gold and other
commodities.
Personal & Corporate Banking
Gross bankingproducts exposureincreasedby USD 37bn toUSD 462bn as of 31 December 2025,predominantlydue
to the weakeningof the US dollaragainst theSwiss francand net newloans.
The exposureis mainlydriven byour Swissmortgage portfolio,our Swisscorporate bankingportfolio and,to alesser
extent, our commodity trade finance portfolio. As of31 December 2025, the majority of the banking productsexposure
was rated investment grade, and 90% of loans and advancesto customers were secured by collateral, mainly residential
andcommercialproperty.Thetotalunsecuredamountmainlyconsistsofcash-flow-basedlendingtocorporate
counterparties.
Our Swiss corporate banking products take-and-hold portfolio exposure increased by USD 2bnto USD 75bn (CHF 59bn)
as of 31 December2025, primarily reflectingthe appreciationof the Swissfranc against theUS dollar,partly offsetby
negative netnew loans.The portfolioconsists ofloans, guaranteesand loancommitments tomulti-national anddomestic
counterparties. The small andmedium-sized entity portfolio, inparticular,is well diversified acrossindustries. However,
such companies are reliant on the domestic economy andthe economies to which they export, in particular the EU and
the US.
Ourcommoditytradefinanceportfoliofocusesonenergyandbase-metaltradingcompanies,wheretherelated
commodity pricerisk ishedged toa largeextent bythe commoditytrader.The majorityof limitsin thisbusiness are
uncommitted,transactionalandshort-terminnature.OurportfoliosizewasUSD 9bn(CHF 7bn)asof31 December
2025, compared with USD 9bn (CHF 8bn) as of 31 December 2024. A considerable part of the exposure correlates with
commodity prices.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control102
Swiss mortgage loan portfolio
Our Swiss mortgage loan portfolio secured by residential and commercial real estate in Switzerland continued to be our
largest loan portfolio. Thesemortgage loans (including loanson owner-occupied commercial real estate, also includedin
theaforementionedSwisscorporatebankingproductsexposure),amountingtoUSD 362bn(CHF 287bn)asof
31 December 2025, mainly originated fromPersonal & Corporate Banking, withcontributions also from GlobalWealth
Management Region Switzerland.
OftheaggregateamountofSwissresidentialmortgages,99.9%wouldcontinuetobecoveredbytherealestate
collateral even ifthe collateral valuewere to decrease20%, and morethan 99% wouldremain covered bythe real estate
collateral if the collateral value were to decrease 30%.
›
Refer to “Credit risk mitigation” in this section for more information about lending securedby real estate
Swiss mortgages: exposure by exposure segments and loan-to-value (LTV)buckets
1
USD bn, except where indicated
31.12.25
31.12.24
LTV buckets
Exposure segment
≤30%
31–50%
51–60%
61–70%
71–80%
81–100%
>100%
Total
Total
Residential mortgages
Exposure
187.2
74.4
16.0
6.1
1.6
0.2
0.1
285.5
237.6
Income-producing real estate
Exposure
36.7
13.5
2.5
0.8
0.2
0.1
0.0
53.9
57.7
Corporates
Exposure
12.2
4.4
1.0
0.5
0.2
0.1
0.1
18.3
15.7
Other segments
Exposure
2.8
1.0
0.2
0.1
0.1
0.0
0.0
4.2
2.2
Mortgage-covered exposure
Exposure
238.8
93.3
19.7
7.5
2.0
0.4
0.2
361.9
313.2
as a percentage of total
66
26
5
2
1
0
0
100
100
Mortgage-covered exposure 31.12.24
Exposure
206.0
80.0
17.7
6.9
1.9
0.5
0.3
313.2
as a percentage of total
66
26
6
2
1
0
0
100
1 The amount of each mortgage loan is allocatedacross the LTV bucketsto indicate the portion at risk at the variousvalue levels shown; for example, a loanof 75 with an LTV ratioof 75% (i.e. a collateral value of
100) would result in allocations of 30 in the ≤30% LTV bucket,20 in the 31–50% bucket, 10 in the 51–60% bucket, 10 in the61–70% bucket and 5 in the 71–80% bucket.
Investment Bank
The InvestmentBank’s lendingactivities arelargely associatedwith corporateand non-bankfinancial institutions.The
business is broadly diversified across industry sectors but concentrated in North America.
Gross banking products exposure increased by USD 36bn to USD 109bn as of 31 December 2025, due to an increase in
balancesatcentralbanksand,toalesserextent,duetoariseinallotherbankingproducts.Thebankingproducts
exposureisalmostequallydistributedbetweeninvestmentgradeandsub-investmentgraderating,withaslight
predominance of the latter.
Mandated loan underwriting commitments on a notional basis were USD 5.9bn as of 31 December 2025 (31 December
2024: USD 4.6bn),reflecting newmandates duringthe year.As of 31December 2025,USD 0.4bn ofthese commitments
had not yet been distributed as originallyplanned. Of the USD 4.6bn loan underwritingcommitments reported as of the
end of 2024, an amount of USD 4.5bn was syndicated or canceled in 2025.
Loan underwriting exposuresare classified asheld for trading,with fair valuesreflecting the marketconditions at theend
of 2025. Credit hedges are in place to help protect against fair value movements in the portfolio.
›
Refer to “Credit risk models” in this section for more information about rating grades and ratingagency mappings
Investment Bank: banking products exposure, by geographical region
1
31.12.25
31.12.24
USD m
%
USD m
%
Asia Pacific
7,189
10.9
5,813
9.8
Latin America
733
1.1
778
1.3
Middle East and Africa
759
1.2
392
0.7
North America
39,799
60.5
37,568
63.4
Switzerland
472
0.7
132
0.2
Rest of Europe
16,788
25.5
14,533
24.5
Exposure
65,742
100.0
59,216
100.0
1 Excluding balances at central banks and Group Treasury reallocations.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control103
Investment Bank: banking products exposure, by industry sector
1
31.12.25
31.12.24
2
USD m
%
USD m
%
Banks
1,799
2.7
1,419
2.4
Electricity, gas, water supply
501
0.8
634
1.1
Financial institutions, excluding banks
3
33,207
50.5
26,757
45.2
Manufacturing
4
7,962
12.1
9,106
15.4
Mining
849
1.3
1,461
2.5
Public authorities
14
0.0
12
0.0
Real estate and construction
2,399
3.6
2,063
3.5
Retail and wholesale
4,726
7.2
3,369
5.7
Technology and communications
7,119
10.8
7,323
12.4
Transport and storage
954
1.5
868
1.5
Other
5
6,211
9.4
6,204
10.5
Exposure
65,742
100.0
59,216
100.0
1 Excludingbalances atcentral banksand GroupTreasuryreallocations.2 Comparative-periodinformation hasbeen restatedto reflectchanges inindustry classification.3 Includescentral counterparties.
4 Includes the chemicals industry.5 Includes other business services, health and social services, as wellas other minor industries.
Non-core and Legacy
Gross bankingproducts exposure decreasedby USD 24bnto USD 9bnas of31 December 2025,mainly dueto adecrease
in high-quality liquid asset requirements,in combination with the ongoing de-risking of the portfolio.
›
Refer to “Balance sheet assets” in the “Balance sheet and off-balance sheet” section of this reportfor more information
›
Refer to the “Our businesses” section of this report for more information
›
Refer to the “Non-core and Legacy” section of this report for more information
Group Items
Gross banking products exposure,which arises primarily in connection with treasury activities,increased by USD 7bn to
USD 24bn as of31 December 2025, predominantlydriven by increasesin guarantees andirrevocable loan commitments.
›
Refer to “Balance sheet assets” in the “Balance sheet and off-balance sheet” section of this reportfor more information
›
Refer to the “Group Items” section of this report for more information
Traded products
Audited
Counterparty creditrisk (CCR)arising fromtraded products,which includeOTC derivatives,ETD exposuresand
SFTs originating in the Investment Bank, Non-core and Legacy, and Group Treasury, is generallymanaged on a close-out
basis, as well as a stressed basis. This takes into account possible effects of market movements on the exposure and any
associated collateral over the time it would take to close out our positions. Limits are applied to the potential future and
stressedexposurepercounterparty,withthesizeofthelimitdependentonthecounterparty’screditworthiness(as
determined by RiskControl). Limit frameworksare also used tocontrol overall exposureto specific sectors.Such portfolio
limits are monitored and reported to senior management.
TradinginOTCderivativesisconductedthroughcentralcounterpartieswherepracticableorrequired.Wherecentral
counterparties arenot used,we haveclearly definedpolicies andprocesses fortrading ona bilateralbasis. Tradingis
typically conducted under bilateral International Swaps and Derivatives Association agreementsor similar master netting
agreements, whichgenerally permitclose-out and nettingof transactionsin caseof default,subject toapplicable law.
Forcertaincounterparties,initialmarginistakentocoversomeorallofthecalculatedclose-outand / orstressed
exposure. Thisis inaddition tothe variationmargin takento settlechanges inmarket valueof transactions.For most
major market participantcounterparties, we usetwo-way collateral agreementsunder which eitherparty can berequired
to provide collateral inthe form ofcash or marketable securitieswhen the exposure exceedsspecified levels. Non-cash
collateral typically consists ofwell-rated government debt or othercollateral acceptable to RiskControl and permitted by
applicable regulations.
Inthetablesbelow,OTCderivativesexposuresaregenerallypresentedasnetpositivereplacementvaluesafterthe
applicationoflegallyenforceablenettingagreementsandthedeductionofcashandmarketablesecuritiesheldas
collateral.SFTexposuresarereportedtakingintoaccountcollateralreceived,andETDexposurestakeintoaccount
collateral margin calls.
›
Refer to “Note 10 Derivative instruments”in the “Consolidated financial statements” section of this report for more information
about OTC derivatives settled through central counterparties
›
Refer to “Note 21 Offsetting financial assets and financial liabilities” in the “Consolidated financialstatements” section of this
report for more information about the effect of netting and collateral arrangementson derivative exposures
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control104
Investment Bank, Non-core and Legacy,and Group Treasury:traded products exposure, by internal UBS ratings
1
USD m, except where indicated
31.12.25
31.12.24
Investment
grade /
Rating
1–5
Sub-investment grade
Defaulted /
Credit-impaired
Traded
products
exposure,
net
2
Investment
grade /
Rating
1–5
Sub-investment grade
Defaulted /
Credit-impaired
Traded
products
exposure,
net
2
Product
Rating
6–9
Rating
10–13
Rating
6–9
Rating
10–13
OTC derivatives
7,856
849
16
14
8,735
16,266
841
40
211
17,357
ETD
8,380
147
0
0
8,526
10,245
109
0
0
10,353
SFTs
18,022
463
0
0
18,486
18,063
289
0
0
18,352
Traded products exposure,net
2
34,258
1,459
16
14
35,747
44,573
1,239
40
211
46,062
1 The ratingsof the major creditrating agencies, andtheir mapping to ourinternal rating scale,are shown in the“Internal UBS ratingscale and mapping ofexternal ratings” tablein this section.2 After credit
valuation adjustments and hedges.
Investment Bank, Non-core and Legacy,and Group Treasury:net OTC derivatives and SFT exposure, by geographical
region
Net OTC derivatives exposure
Net SFT exposure
31.12.25
31.12.24
31.12.25
31.12.24
USD m
%
USD m
%
USD m
%
USD m
%
Asia Pacific
1,337
15.3
5,126
29.5
2,834
15.3
2,307
12.6
Latin America
46
0.5
88
0.5
59
0.3
27
0.1
Middle East and Africa
248
2.8
111
0.6
958
5.2
511
2.8
North America
3,066
35.1
4,165
24.0
5,009
27.1
4,946
27.0
Switzerland
1,070
12.3
2,522
14.5
570
3.1
494
2.7
Rest of Europe
2,968
34.0
5,345
30.8
9,056
49.0
10,066
54.9
Exposure
8,735
100.0
17,357
100.0
18,486
100.0
18,352
100.0
Investment Bank, Non-core and Legacy,and Group Treasury:net OTC derivatives and SFT exposure, by industry sector
Net OTC derivatives exposure
Net SFT exposure
31.12.25
31.12.24
1
31.12.25
31.12.24
1
USD m
%
USD m
%
USD m
%
USD m
%
Banks
969
11.1
1,914
11.0
4,642
25.1
5,808
31.6
Electricity, gas, water supply
111
1.3
132
0.8
3
0.0
2
0.0
Financial institutions, excluding banks
2
6,940
79.4
14,454
83.3
13,191
71.4
11,883
64.8
Manufacturing
3
65
0.7
34
0.2
0
0.0
1
0.0
Mining
125
1.4
58
0.3
1
0.0
0
0.0
Public authorities
335
3.8
391
2.3
551
3.0
542
3.0
Real estate and construction
8
0.1
144
0.8
0
0.0
0
0.0
Retail and wholesale
35
0.4
9
0.1
0
0.0
0
0.0
Technology and communications
25
0.3
38
0.2
0
0.0
0
0.0
Transport and storage
65
0.7
22
0.1
0
0.0
1
0.0
Other
58
0.7
160
0.9
97
0.5
114
0.6
Exposure
8,735
100.0
17,357
100.0
18,486
100.0
18,352
100.0
1 Comparative-period information has been restated to reflect changes in industry classification.2 Includes central counterparties.3 Includes the chemicals industry.
Credit risk mitigation
Audited |
We manage credit risk in our portfolios by taking collateral against exposures and by utilizing credit hedging.
Lending secured by real estate
Audited |
Weuseascoringmodel aspartofastandardizedfront-to-backprocessforcreditdecisionsonoriginating or
modifying Swiss mortgage loans. The model’s two key factors are the LTV ratio and an affordability calculation.
The calculation of affordability takes into account interest payments, minimum amortization requirements and potential
property maintenance costs in relation to grossincome or rental income for rental properties.The imputed interest rate
is set at 5% per annum, independently of the current interest rate environment.
For residentialproperties occupiedby theborrower, themaximum LTVfor thestandard approvalprocess is80%. For
income-producing real estate (IPRE), themaximum LTV allowed within thestandard approval process ranges from40%
to 80%, depending on the type and age of the property.
Audited |
The value we assignto each property isan estimate based onmodel-derived valuations, the purchase priceand,
dependingonthepropertytypeandownershippurpose,avaluationatcost.Insomecases,anadditionalexternal
valuation is considered.
Totakemarketdevelopmentsintoaccountforexternalvaluationmodels,anexternalvendorregularlyupdatesthe
parameters and / or refinesthe architecture foreach model. Modelchanges and parameterupdates are subjectto the
same validation procedures as our internally developed models.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control105
Audited |
We similarly applyunderwriting guidelines forour Global WealthManagement Region Americasmortgage loan
portfolio,takingintoaccountloanaffordabilityandcollateralsufficiency.LTVstandardsaredefinedforthevarious
mortgage types,such asresidential mortgagesor investmentproperties, basedon associatedrisk factors,such asproperty
type and loansize and purpose.The maximum LTVallowed within thestandard approval processranges from
45
% to
80
%. In additionto LTV, othercredit risk metrics,such as debt-to-incomeratios, credit scoresand required clientreserves,
are also part of our underwriting guidelines.
A risk limit frameworkis applied to theGlobal Wealth Management RegionAmericas mortgage loan portfolio.Limits are
settogovernexposureswithinLTVcategories,geographicconcentrations,portfoliogrowthandhigh-riskmortgage
segments, suchas interest-onlyloans. Theselimits aremonitored bya specializedcredit riskmonitoring teamand reported
to seniormanagement. Supplementing thislimit frameworkis areal estatelending policyand proceduresframework,
set up to governreal estate lending activities.Quality assurance and quality controlprograms monitor compliance with
mortgage underwriting and documentation requirements.
For our mortgageloan portfolio inthe Global WealthManagement regions ofEMEA and AsiaPacific, we applyglobal
underwriting guidelines with regional variations to allow for regulatory and market differentials. As in other regions, the
underwriting guidelinestake intoaccount affordabilityand collateralsufficiency. Affordabilityis assessedat astressed
interestrateusing,forresidentialrealestate,theborrowers’sustainableincomeanddeclaredliabilities,andfor
commercial real estate thequality and sustainability ofrental income. For interest-onlyloans, a declared andevidenced
repayment strategy must bein place. The applicableLTV for each mortgageis based on thequality and liquidity ofthe
property andassessed againstvaluations frombank-appointed third-partyvaluers. MaximumLTV variesfrom
30
% to
70
%, dependingon thetype andlocation ofthe property,as wellas otherfactors. Serviceabilitymay befurther supported
by personalguarantees fromrelated thirdparties. Theoverall portfoliois centrallyassessed againsta numberof stress
scenarios to ensure that exposures remain within predefined stress limits.
›
Refer to “Swiss mortgage loan portfolio” in this section for more information about LTVin our Swiss mortgage portfolio
Lombard lending
Audited |
Lombard loans are secured by pledgesof marketable securities, guarantees and other forms of collateral. Eligible
financialsecuritiesareprimarilyliquidandactivelytradedtransferablesecurities(suchasbonds,equitiesandcertain
hybrid securities),and othertransferable securities,such asapproved structuredproducts forwhich regularprices are
available and the issuer of the security provides a market. To a lesser degree,less-liquid collateral is also used.
We derivelending valuesby applyingdiscounts (haircuts)to thepledged collateral’smarket value.Haircuts formarketable
securities are calculated to covera possible adverse change inmarket value over agiven close-out period and confidence
level. Less-liquid or more volatile collateral will typically have larger haircuts.
We assessconcentration andcorrelation risksacross collateralposted ata counterpartylevel, andat adivisional level
across counterparties.We alsoperform targetedGroup-wide reviewsofconcentration. Concentrationofcollateral in
single securities, issuersor issuer groups,industry sectors, countries,regions or currenciesmay result inhigher risk and
reducedliquidity.Insuchcases,thelendingvalueofthecollateral,margincallandclose-outlevelsareadjusted
accordingly.
Exposures andcollateral marketvalues aremonitored daily,with theaim ofensuring thatthe creditexposure always
remains within theestablished risk tolerance. Ashortfall occurs when thelending value drops belowthe exposure; if it
exceeds a defined triggerlevel, a margin callis initiated, requiring theclient to provide additionalcollateral, reduce the
exposure or take other action to bringexposure in line with the agreed lendingvalue of the collateral. If a shortfallis not
correctedwithintherequiredperiod,aclose-outisinitiated,throughwhichcollateralisliquidated,openderivative
positions are closed and guarantees are called.
Weconductstresstestingofcollateralizedexposurestosimulatemarketeventsthatreducecollateralmarketvalue,
increase exposure oftraded products, ordo both.For certain classesof counterparties, limitson such calculatedstress
exposures are applied andcontrolled at a counterpartylevel. Also, portfolio limitsare applied across certainbusinesses or
collateral types.
›
Refer to “Stress loss” in this section for more information about our stresstesting
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control106
Credit hedging
Audited |
We use single-name creditdefault swaps (CDSs), credit-indexCDSs, structured portfolio hedges(SPHs), bespoke
protection and other instruments to actively manage credit risk. The aim is to reduce concentrationsof risk from specific
counterparties,sectorsorportfoliosand,forCCR,theprofitorlosseffectarisingfromchangesincreditvaluation
adjustments.
We haveguidelines withregard totaking credithedges intoaccount forcredit riskmitigation purposes.For example,
when monitoringexposures againstcounterparty limits,we donot usuallyapply certaincredit riskmitigants, suchas
proxyhedges(creditprotectiononacorrelatedbutdifferentname)orcredit-indexCDSs,toreducecounterparty
exposures. SPHsare structuredto achievetrue risktransfer byproviding explicitprotection againstevents thatcould cause
a loss in the referenced hedged positions, with the hedge payoff matched to theactual loss incurred on those positions
(i.e.nobasisrisk).Buyingcreditprotection,ifunfunded,alsocreatescreditexposurewithregardtotheprotection
provider.Wemonitorandlimitexposurestocreditprotectionprovidersandalsomonitortheeffectivenessofcredit
hedges.
›
Refer to “Note 10 Derivative instruments”in the “Consolidated financial statements” section of this report for more information
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
,
for more information
about risk transfer through synthetic securitizations
Mitigation of settlement risk
Tomitigate settlementrisk, wereduce actualsettlement volumesby usingmulti-lateral andbilateral agreementswith
counterparties, including payment netting.In relation tothe exchange of cashor securities, transactions canbe settled
on a delivery-versus-payment basis.
Foreign exchangetransactions areour mostsignificant sourceof settlementrisk. Weare amember ofCLSSettlement
(operatedbyCLS,formerlyknownasContinuousLinkedSettlement),anindustryutilitythatprovidesamulti-lateral
framework to settletransactions on apayment-versus-payment basis, thusreducing foreign-exchange-related settlement
risk relativeto thevolume ofbusiness. However,mitigation ofsettlement riskthrough CLSand othermeans doesnot
fully eliminate credit risk in foreignexchange transactions resulting from changes in exchangerates prior to settlement,
which is managed as part of our overall credit risk management of OTC derivatives.
Credit risk models
Basel III – IRB credit risk models
Audited |
We have developed tools and models to estimate future credit losses thatmay be implicit in our current portfolio.
Exposures to individual counterparties are measuredusing three generally accepted parameters:PD, EAD and LGD. For a
given credit facility, the product of these three parameters results in the expected loss (the EL). These parameters are the
basis for the majorityof our internal measuresof credit risk, andkey inputs for regulatorycapital calculation under the
internal ratings-based(IRB) approachof theBasel III framework.We alsouse modelsto derivethe portfoliocredit risk
measures of EL, statistical loss and stress loss.
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
,
for more information
about the regulatory capital calculation under the IRB approach and our key creditrisk models
Audited |
Internal UBS rating scale and mapping of external ratings
Internal UBS rating
1-year PD range, in %
Description
Moody’s Investors
Service mapping
S&P mapping
Fitch mapping
0 and 1
0.00–0.02
Investment grade
Aaa
AAA
AAA
2
0.02–0.05
Aa1 to Aa3
AA+ to AA–
AA+ to AA–
3
0.05–0.12
A1 to A3
A+ to A–
A+ to A–
4
0.12–0.25
Baa1 to Baa2
BBB+ to BBB
BBB+ to BBB
5
0.25–0.50
Baa3
BBB–
BBB–
6
0.50–0.80
Sub-investment grade
Ba1
BB+
BB+
7
0.80–1.30
Ba2
BB
BB
8
1.30–2.10
Ba3
BB–
BB–
9
2.10–3.50
B1
B+
B+
10
3.50–6.00
B2
B
B
11
6.00–10.00
B3
B–
B–
12
10.00–17.00
Caa1 to Caa2
CCC+ to CCC
CCC+ to CCC
13
>17
Caa3 to C
CCC– to C
CCC– to C
Counterparty is in default
Default
Defaulted
D
D
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control107
Probability of default
PD estimatesthe likelihoodof acounterparty defaultingon itscontractual obligationsover thenext 12 monthsand is
assessed using rating tools tailored to the various categories of counterparties.
The ratings of major credit rating agencies, andtheir mapping to the UBS masterscale and internalPD bands, are shown
in the“Internal UBSrating scaleand mappingof externalratings” tableabove. ForMoody’s andS&P, themapping is
based on the long-term averageof one-year default rates availablefrom these rating agencies, withFitch ratings being
mapped to the equivalent S&P ratings. For eachexternal rating category, the average default rate is comparedwith our
internal PD bands to derive a periodically reviewed mapping to our internal rating scale.
Exposure at default
EAD is the amount we expect to beowed by a counterparty at the timeof possible default. We derive EAD from current
exposure to the counterparty and possible future exposure development.
The EAD of anon-balance sheetloan is itsnotional amount,while for off-balancesheet commitmentsthat are notdrawn,
credit conversionfactors (CCFs)are used inorder toobtain anexpected on-balancesheet amount.
For tradedproductsunder theinternalmodel methodfor derivativesand therepo value-at-riskapproachfor SFTs,we derive
EAD bymodelingthe rangeof possibleexposureoutcomesat variouspointsin timeusing asimulationbased ona scenario-
consistenttechnique.We assessthe netamountthat maybe owedto usor thatwe mayowe toothers,takinginto account
the effectof marketmovementsover the potentialtime it wouldtake to closeout positions.
Weassessexposureswherethereisamaterialcorrelationbetweenthefactorsdrivingthecreditqualityofthe
counterparty and thosedriving the potentialfuture value ofour traded productsexposure (wrong-way risk),and we have
established specific controls to mitigate such risks.
Loss given default
LGD isthe magnitudeof thelikely lossif thereis adefault. OurLGD estimates,which considerdownturn conditions,
include lossof principal,interestand otheramountsless recoveredamounts. WedetermineLGD basedon thelikely
recoveryrateofclaimsagainstdefaultedcounterparties,whichdependsonthetypeofcounterpartyandanycredit
mitigation due tocollateral or guarantees.Our estimates aresupported by internal lossdata and externalinformation,
where available. If we hold collateral, such as marketable securities or a mortgage on a property,LTV ratios aretypically
a key parameter in determining LGD.
Expected loss
We use the concept of EL to quantify future credit losses that may be implicit in our current portfolio. The EL for a given
credit facility isthe product ofthe three componentsdescribed above, i.e. PD,EAD and LGD.We aggregate theEL for
individual counterparties to derive expected portfolio credit losses.
IFRS 9 – ECL credit risk models
Expected credit loss
ECL isdefined asthe differencebetween contractualcash flowsand thoseUBS expectsto receive,discounted atthe
effective interest rate(EIR) or contractual interestrate. For loan commitmentsand other credit facilitiesin scope of ECL
requirements, expected cash shortfalls are determined byconsidering expected future drawdowns. Ratherthan focusing
on anaverage through-the-cycle (TTC)expected annualloss, thepurpose ofECL isto estimatethe amountof losses
inherent ina portfolio basedon currentconditions and futureoutlook (a point-in-time(PIT) measure),whereby sucha
forecast has to beunbiased (i.e. exclude conservative adjustments)and include all information availablewithout undue
costandeffort,andaddressmultiplescenarioswherethereisperceivednon-linearitybetweenchangesineconomic
conditionsandtheireffectoncreditlosses.Fromacreditriskmodelingperspective,ECLparametersaregenerally
derivations of the factors assessed for regulatory Basel III EL.
Comparison of Basel III EL and IFRS 9 ECL credit risk models
The IFRS 9 ECL concept has a number of key differences from our Basel III credit risk models, both in the loss estimation
processandtheresultthereof.Mostnotably,regulatoryBasel IIIELparametersareTTC / downturn estimates,which
include a marginof conservatism, whileIFRS 9 ECL parametersare typically PIT,reflecting currenteconomic conditions
andfutureoutlook.Thetablebelowsummarizesthemaindifferences.Stage 1 and 2ECLexpensesin2025were
USD 6m, andthe respectiveallowances andprovisions asof 31 December2025 wereUSD 1,004m. Thisincluded ECL
allowances andprovisions ofUSD 892m relatedto positionsunder theBasel III IRBapproach. Basel IIIEL fornon-defaulted
positions was USD 1,769m.
›
Refer to “Note 1 Summary of material accounting policies” in the “Consolidated financial statements” section of this reportfor
more information about our accounting policy for allowances and provisions for ECL includingkey definitions relevant for the ECL
calculation under IFRS 9
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control108
The table below shows the main differences between the two expected loss measures.
Basel III EL (IRB approach)
IFRS 9 ECL
Scope
The Basel III IRB approach applies to most credit risk exposures. It
includes transactions measured at amortized cost, at fair value
through profit or loss and at fair value through OCI, including
loan commitments and financial guarantees.
The IFRS 9 ECL calculation mainly applies to financial assets
measured at amortized cost and debt instruments measured at
fair value through OCI, as well as loan commitments and financial
guarantees not at fair value through profit or loss.
12-month versus
lifetime
expected loss
The Basel III IRB approach takes into account expected losses
resulting from expected default events occurring within the next
12 months.
In the absence of a significant increase in credit risk (an SICR), a
maximum 12-month ECL is recognized. Once an SICR event has
occurred, a lifetime ECL is recognized considering expected
default events over the life of the transaction.
Exposure at
default
(EAD)
EAD is the amount we expect a counterparty to owe us at the
time of a possible default. For on-balance sheet banking products,
EAD equals the book value as of the reporting date; for traded
products, the vast majority of EAD is modeled. For lending, EAD is
expected to remain constant over a 12-month period. For loan
commitments, a credit conversion factor (a CCF) is applied to
model expected future drawdowns. The CCF accounts for
downturn effect, includes a margin of conservatism and is aligned
with regulatory floors.
EAD is generally calculated on the basis of the cash flows that are
expected to be outstanding at the individual points in time during
the life of the transaction. For loan commitments, a CCF is applied
to model expected future drawdowns. The CCF’s target is the
best estimate of expected undrawn line usage at default without
any conservative adjustments.
Probability of
default
(PD)
PD estimates are determined on a through-the-cycle (TTC) basis
including conservative adjustments and floors in line with
regulation. They represent historical average PDs, taking into
account observed losses over a prolonged historical period, and
therefore are less sensitive to movements in the underlying
economy.
PD estimates are determined on a point-in-time (PIT) basis, based
on current conditions and incorporating forecasts for future
economic conditions at the reporting date.
Loss given
default
(LGD)
LGD includes prudential adjustments, such as downturn LGD
assumptions and floors. Similar to PD, LGD is determined on a
TTC basis.
LGD should reflect the losses that are reasonably expected to be
incurred and prudential adjustments should therefore not be
applied. Similar to PD, LGD is determined on the basis of a PIT
approach.
Use of scenarios
No use of scenarios.
Multiple forward-looking scenarios have to be taken into account
to determine a probability-weighted ECL.
Further key aspects of credit risk models
Stress loss
We complement our statisticalmodeling approach withscenario-based stress loss measures.Stress tests are runregularly
to monitor potential effects of extreme, but nevertheless plausible, events on our portfolios, under which key creditrisk
parameters are assumed to deteriorate substantially. Where we consider it appropriate,we apply limits on this basis.
Stressscenariosandmethodologies aretailoredtotheportfolios’natures,rangingfromregionallyfocusedtoglobal
systemic events and varying in time horizon.
›
Refer to “Stress testing” in this section for more information about our stress-testing framework
Credit risk model confirmation
Our approach to model confirmationinvolves both quantitative methods, such asmonitoring compositional changes in
portfolios andresults ofbacktesting, andqualitative assessments,such asfeedback fromusers onmodel outputas a
practicalindicatorofamodel’sperformanceandreliability.Inaddition,changesinmarket,regulatoryandbusiness
practices are assessed.
Material changes inportfolio composition mayinvalidate the conceptualsoundness of amodel. We thereforeperform
regular analyses of the evolution of portfolios to identify such changes in the structure and credit quality of portfolios.
›
Refer to “Model risk” in this section for more information
Backtesting
We monitor the performance of models by backtestingand benchmarking them, with model outcomes compared with
actual results, based on our internal experience and externally observedresults. Toassess the predictive power of credit
exposure modelsfor tradedproducts, suchas OTCderivatives andETD products,we statisticallycompare predicted future
exposure distributions at different forecast horizons with realized values.
For PD, we derive a predicted distribution of the numberof defaults. The observed number of defaults is comparedwith
the upper tail of the predicted distribution. If the observed number of defaults is higher than a given upper tailquantile,
we concludethere isevidence thatthe modelmay underpredictthe numberof defaults.Based onhistorical long-run
average defaultrates and,if required,additional marginof conservatism,we alsoderive PDcalibration targetsand a
lower boundary. Asa general rule,follow-up actions, suchas a recalibrationof the ratingtool, are definedif the portfolio
average PD lies below the derived lower boundary.
ForLGD,backtestingstatisticallyteststhemeandifferencebetweentheobservedandpredictedLGDs.Wecompare
predicted LGDs with actual outcomes and if any statistically significant deviation is identified, follow-up actions, suchas
a recalibration of the models, are taken.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control109
CCFs,usedforthecalculationofEADforundrawnfacilities,aredependentonseveralcreditfacilitycontractual
dimensions.Wecomparethepredictedamountdrawnwithobservedhistoricaluseofsuchfacilitiesbydefaulted
counterparties. If anystatistically significant deviationis observed, follow-upactions, such asan update ofthe relevant
CCFs, are performed.
Changes to models and model parameters during the period
Aspartofourcontinuouseffortstoenhancemodelstoreflectmarketdevelopmentsandnewlyavailabledata,we
updated several models in 2025.
InPersonal&CorporateBankingandGlobalWealthManagement,werefinedthemodelsfortheintegratedSwiss
income-producing and residential real estate mortgage portfolios.
InGlobalWealthManagement,anewdedicatedPDandLGDmodelforconcentratedequity-basedlendingwas
implemented, and aconservative RWA bufferfor concentrated equity-basedlending was releasedaccordingly. Moreover,
the derivative exposure modeling within the PD and LGD calculation for standard Lombard loans was further enhanced.
Also,followingareviewofregulatoryrequirementsandwordingofclientcontracts,theSwissFinancialMarket
Supervisory Authority (FINMA)agreed todescope the undrawnamount ofuncommitted Lombard loansfrom theEAD
calculation. This changewas implemented forthe US portfolioin 2025, withimplementation for otherportfolios planned
for 2026.
In Global Wealth Management, we havealso deployed a new version ofthe ship finance PD and LGDmodel, replacing
thepreviousversionimplementedonthelegacyCreditSuisseinfrastructure.Additionally,theUSprivateequity
subscription loans were moved from the standardized approach for credit risk to the foundation IRB approach.
In the InvestmentBank, we recalibratedthe PD modelfor corporate clients.We also updatedthe LGD modelfor sight
deposits at selected central banks.
Most of the legacy Credit Suisse modelshave already been decommissioned, with anyremaining exposure moved to the
standardized approachfor thecalculation ofrisk-weighted assets.The fewmodels stillin useon legacyCredit Suisse
infrastructure havebeen integratedinto theUBS modelrisk managementframework andare scheduledto beretired
during the first halfof 2026. For positionsthat have migratedfrom the legacyCredit Suisse toUBS infrastructure, UBS
models have been adopted accordingly.
Where required, changes to models and model parameters were approved by FINMA before implementation.
›
Refer to “Risk-weighted assets” in the “Capital management” section of this report for moreinformation about the effect of the
changes to models and model parameters on credit risk RWA
Credit-risk-model-related regulatory capital developments
In Switzerland,the amendmentsto theCapital AdequacyOrdinance thatincorporate thefinal Basel IIIstandards into
Swiss law entered into force on 1 January 2025. The adoption led to a number of revisions to the internal ratings-based
(IRB) approaches, namely removing the option ofusing the A-IRB approach for certain assetclasses, introducing certain
floors forthe IRBrisk parameters,and variousrequirements toreduce RWAvariability.In addition,the removalof the
internal model approach for credit valuation adjustment became effective.
›
Refer to “Capitalmanagement objectives,planning andactivities”in the “Capitalmanagement”section ofthis report formore
informationabout the developmentof RWA
›
Refer to the “Regulatory and legal developments” section of this report for moreinformation
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors,
for more information
Credit policies for distressed assets
Non-performing
Audited |
In line with theregulatory definition, we reporta claim as non-performing when:(i) it is more than90 days past
due; (ii) it is subject to restructuring proceedings, where preferential conditions concerning interest rates, subordination,
tenor, etc. have been granted in order to avoid default of the counterparty (forbearance); (iii) the counterparty is subject
tobankruptcy / enforcedliquidationproceedingsinanyform,evenifthereissufficientcollateraltocoverthedue
payment; or (iv) there is other evidence that payment obligations will not be fully met without recourse to collateral.
Default and credit impaired
UBSusesasingledefinition ofdefaultforclassifying assetsanddetermining thePDofitsobligorsforrisk modeling
purposes.Thedefinitionofdefaultisbasedonquantitativeandqualitativecriteria.Acounterpartyisclassifiedas
defaulted whenmaterial paymentsof interest,principal orfees areoverdue formore than90 days, ormore than180 days
for certain exposuresin relation toloans to privateand commercial clientsin Personal& Corporate Bankingand to private
clients of GlobalWealth Management RegionSwitzerland. UBS doesnot consider thegeneral 90-day presumptionfor
default recognition appropriatefor those portfolios,given the curerates, which showthat strict applicationof the 90-
day criterion wouldnot accurately reflectthe inherentcredit risk.Counterparties are alsoclassified as defaultedwhen:
bankruptcy,insolvencyproceedingsorenforcedliquidationhavecommenced;obligationshavebeenrestructuredon
preferential terms(forbearance); orthere isother evidencethat paymentobligations willnot befully metwithout recourse
to collateral. Thelatter may bethe case evenif, to date,all contractual paymentshave been madewhen due. Ifone claim
against a counterparty is defaulted on, generally all claims against the counterparty are treated as defaulted.
ubs-20251231p134i0
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control110
An instrumentis classifiedas creditimpairedif thecounterpartyis classifiedas defaultedand / orthe instrumentis identified
as purchasedcredit impaired(PCI). An instrumentis PCI if it hasbeen purchasedat a deep discountto its carryingamount
following ariskevent oftheissuer ororiginated withadefaulted counterparty. Onceafinancial assetisclassified as
defaulted/ credit impaired (exceptPCI), itisreported asastage 3 instrument andremains assuch unlessallpast due
amountshavebeenrectified,additionalpaymentshavebeenmadeontime,thepositionisnotclassifiedascredit
restructured,and there is general evidenceof credit recovery. A three-monthprobation periodis applied before a transfer
back to stages1 or 2 canbe triggered.However, mostinstrumentsremain instage 3 fora longerperiod oftime.
Forbearance (credit restructuring)
Audited |
If paymentdefault isimminent ordefault hasalready occurred,we maygrant concessionsto borrowersin financial
difficulties that we would otherwise not considerin the normal course of business, suchas offering preferential interest rates,
extendingmaturity,modifyingthescheduleofrepayments,debt / equityswap,subordination,etc.Whenaforbearance
measure takes place,each case isconsidered individually,and the exposureis generally classifiedas defaulted. Forbearance
classificationremainsuntiltheloanisrepaidorwrittenoff,non-preferentialconditionsaregrantedthatsupersedethe
preferential conditions or the counterpartyhas recovered, and the preferentialconditions no longer exceedour risk tolerance.
Contractualadjustmentswhenthereisnoevidenceofimminentpaymentdefault,orwherechangestotermsand
conditions are within our usual risk tolerance, are not considered to be forborne.
Loss history statistics
Aninstrumentisclassifiedascreditimpairedifthecounterpartyhasdefaulted.Thisalsoincludescredit-impaired
exposures for which no loss has occurred or for which no allowance has been recognized (e.g. where we expect to fully
recover the exposures via collateral held).
Coverage ratios are calculatedfor the coreloan portfolio by takingECL allowances and provisionsdivided by thegross
carrying amount ofthe exposures. Coreloan exposure isdefined as thesum of Loansand advances tocustomers and
Loans to financial advisors.
The total combinedon- and off-balancesheet coverage ratiowas 31 basis pointsas of 31 December2025, 4 basis points
higherthantheratioasof31 December2024.Thecombinedstage 1and2ratiowas10 basispoints,unchanged
compared with the ratio as of 31 December 2024;the stage 3 ratio was 27%, 5 percentage pointshigher than the ratio
as of 31 December 2024, and the PCI ratio was 27%.
›
Refer to “Note 9 Financial assets at amortized cost and other positions in scope of expected credit loss measurement”and
“Note 19 Expected credit loss measurement” in the “Consolidated financial statements”section of this report for more
information about ECL measurement and the calculation of the coverage ratio
›
Refer to “Note 13 Other assets” in the “Consolidated financial statements” section of this reportfor more details
›
Refer to the “Group performance” section of this report for more informationabout credit loss expense / release
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control111
Loss history statistics
USD m, except where indicated
31.12.25
31.12.24
31.12.23
Banking products, core exposure and off-balance sheet, gross
1
927,652
869,171
966,279
of which: amounts due from banks and loans and advances to customers, gross
675,999
600,884
662,525
Credit-impaired exposure, gross (stage 3 and PCI)
7,363
6,637
6,200
of which: credit-impaired amounts due from banks and loans and advances to customers (stage 3 and PCI)
6,421
5,793
5,367
Non-performing amounts due from banks and loans and advances to customers
6,538
6,044
5,806
ECL allowances and provisions for credit losses
2
3,058
2,507
2,261
of which: core loan exposure (all stages)
2,882
2,339
2,097
of which: amounts due from banks and loans and advances to customers (all stages)
2,504
2,014
1,710
of which: amounts due from banks and loans and advances to customers (stage 3 and PCI)
1,866
1,408
990
Write-offs (stage 3 and PCI)
374
348
93
of which: write-offs for amounts due from banks and loans and advances to customers
361
329
78
Credit loss expense / (release)
3
524
551
1,037
Ratios
Credit-impaired lending assets as a percentage of total lending assets, gross (%)
4
0.9
1.0
0.8
Non-performing lending assets as a percentage of total lending assets, gross (%)
4
1.0
1.0
0.9
ECL allowances for lending assets as a percentage of total lending assets, gross (%)
4
0.4
0.3
0.3
Write-offs as a percentage of average gross lending assets outstanding during the period (%)
4
0.1
0.1
0.0
1 Includes amounts duefrom banks, coreloan exposure (Loans andadvances to customersand Loans to financialadvisors) and off-balance sheetitems defined as guaranteesand loan commitments.2 Includes
provisions for ECL of guaranteesand loan commitments and allowancesfor securities financing transactions.3 Includes credit loss expense / (release)for other financial assets at amortizedcost, guarantees, loan
commitments, and securities financing transactions.4 Lending assets include amounts due from banks and loans and advances to customers.
Market risk
Audited |
Main sources of market risk
Market risks arise from both trading and non-trading business activities.
–
Trading market risksarise primarily inthe Investment Bank,Non-core and Legacyand, to alesser extent, GlobalWealth
Management.IntheInvestmentBanktheserisksaremainlyconnectedwithsecuritiesandderivativestradingfor
market-making and client facilitation, aswell as Global Bankingactivity for primary debt andequity underwriting. In
Non-core and Legacy,market riskis limitedand results froma largelyhedged portfolioof bothcomplex andsimple
credit,interestrateandequityderivativetransactions.AlimitedcontributiontomarketriskinGlobalWealth
Management comes from municipal securities and taxable fixed-income securities.
–
Non-trading market risks arisepredominantly in the formof interest rate andforeign exchange risks connectedwith
personal banking and lending in our wealth management businesses, the Swiss business of our Personal & Corporate
Banking business division, the Investment Bank’s lending business, and treasury activities.
–
Group Treasury assumesmarket risks inthe process ofmanaging interest raterisk, structural foreignexchange risk and
the Group’s liquidity and funding profile, including high-quality liquid assets (HQLA).
–
Equity anddebt investmentscan alsogive riseto marketrisks, ascan someaspects ofemployee benefits,such as
defined benefit pension schemes.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control112
Audited |
Overview of measurement, monitoring and management techniques
–
Market risklimits areset forthe Group,the businessdivisions andGroup Treasuryat granularlevels inthe various
business lines, reflecting the nature and magnitude of the market risks.
–
Management value-at-risk (VaR) measures exposures under the market risk framework, including trading market risks
and some non-tradingmarket risks. Non-tradingmarket risks notincluded in VaRare covered inthe risks controlled
by the Market and Treasury Risk Control functions.
–
Our primary portfolio measures of market risk are liquidity-adjusted stress loss and VaR. Both are subject to limitsthat
are approvedby theBoard ofDirectors (theBoD). Marketrisk measurementfor certainlegacy CreditSuisse components
can differfrom theUBS Groupexcluding theaforementioned legacyCredit Suissecomponents, asset outbelow. These
positions continue to be managed on legacy Credit Suisse infrastructure until full migration of these positions to UBS
infrastructure or the liquidation of the positions.
–
These measures arecomplemented by concentration andgranular limits forgeneral and specific marketrisk factors.
Our trading businessesare subject to multiplemarket risk limits,which take intoaccount the extentof market liquidity
and volatility, business outlook and growth,and, for our single-name exposures, issuer credit quality.
–
Tradingmarketrisksaremanagedatportfoliolevel.Asriskfactorsensitivitieschangeduetonewtransactions,
transaction expiries or changes in marketlevels, risk factors are dynamically rehedgedto remain within limits. Wedo
not generally seek to distinguish in the trading portfolio between specific positions and associated hedges.
–
Issuerriskforcreditproductsiscontrolledbylimitsappliedatthebusiness-divisionlevelbasedonjump-to-zero
measures, which estimate maximum default exposure (the default event loss assuming zero recovery).
–
Non-tradingforeignexchangerisksaremanagedundermarketrisklimits,withtheexceptionofGroupTreasury
management of consolidated capital activity.
Our CRO Treasury function applies a holisticrisk framework, setting the appetite for treasury-relatedrisk-taking activities
across theGroup. Keyelements ofthe frameworkinclude anoverarching regulatory(interest raterisk inthe banking
book (IRRBB)) delta economic value of equity(EVE) target, set by the BoD.Limits are also set by theBoD to balance the
effect of foreign exchange movementson our common equity tier1 (CET1) capital andCET1 capital ratio. Non-trading
interest rate and foreign exchange risks are included in Group-wide statisticaland stress-testing metrics, which flow into
our risk appetite framework.
Equityanddebtinvestmentsaresubjecttoarangeofriskcontrols,includingpreapprovalofnewinvestmentsfor
commercial purposes bybusiness managementand Risk Controland regular monitoringand reporting byGroup Finance.
They are also included in Group-wide statistical and stress-testing metrics.
›
Refer to the “Currency management” section of this report for moreinformation about Group Treasury’smanagement of foreign
exchange risks
›
Refer to the “Capital management” section of this report for more information about thesensitivity of our CET1 capital and CET1
capital ratio to currency movements
Market risk stress loss
Themeasurementandmanagementofmarketrisksincludeanextensivesetofstresstestsandscenarioanalyses,
continuously evaluatedto ensurethat lossesresulting from anextreme yetplausible eventdo notexceed ourrisk appetite.
Liquidity-adjusted stress
Liquidity-adjustedstressisourprimarystresslossmeasureforGroup-widemarketrisk.Theframeworkcapturesthe
economiclossesthatcouldariseunderspecifiedstressscenarios.Shocksareappliedtopositions basedonexpected
market movements in the liquidity-adjusted holding periods resulting from the specified scenario.
Holding periods are used for liquidity-adjusted stress toreflect the time needed to reduce orhedge the risk of positions
in each major risk factor in a stressed environment. We apply minimum holding periods, regardless of observed liquidity
levels, as identification of and reaction to a crisis may not always be immediate.
The expected market movementsare derived using historical marketbehavior (based on analysis ofhistorical events) and
forward-looking analysis including consideration of defined scenarios that have not occurred in the past.
Stress-based limits apply at several levels of the organizational hierarchy. Liquidity-adjusted stress is also the core market
risk component of our combined stress test framework and therefore integral to our overall risk appetite framework.
›
Refer to “Risk appetite framework” in this section for more information
›
Refer to “Stress testing” in this section for more information about our stress-testing framework
Value-at-risk
VaR definition
Audited
VaRis astatistical measureof marketrisk, quantifyingthe potentialmarket risklosses overa settime horizon
(holding period) at an established level of confidence. VaR assumes no change in the Group’s trading positions over the
set time horizon.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control113
We calculate VaRdaily. The profitor loss distributionfrom which VaRis estimated isderived from ourinternally developed
VaR model,which simulatesreturns overthe holdingperiod forrisk factorsour tradingpositions aresensitive to,and
subsequently quantifiesthe profit / loss effectof these riskfactor returnson our tradingpositions. Systematiccommodity,
credit,equity,foreignexchangerateandinterestrateriskfactorreturnsarebasedonapurehistoricalsimulation
approach. An unweighted five-year look-back window isused for the UBS Group excludingcertain legacy Credit Suisse
components and an exponentially weightedtwo-year window for the aforementionedlegacy Credit Suisse components.
Modeling idiosyncratic andspecific risks forequity and creditrisk factors usinghistorical simulation ischallenging, due
to thelimited availability ofcontinuous good-quality historicaldata. Whereverpossible, historical simulationto model-
specific risk is usedfor the legacy CreditSuisse components; however,both traded market riskportfolios rely upon factor
modelstodistinguishsystematicandidiosyncraticreturns.FortheUBSGroupexcludingcertainlegacyCreditSuisse
components, idiosyncratic returns are simulatedthrough a Monte Carlo model,aggregating the sum of systematicand
residual returnsin sucha waythat systematicand residualrisk areconsistently captured.For thelegacy CreditSuisse
components, the available distribution ofidiosyncratic returns is used todetermine an extreme scenario fora given risk
factor’s specificrisk; theresultant VaRand extremescenario lossfor agiven riskfactor areaggregated usingazero-
correlation assumption.
VaR models are used for internal management purposes, with exposures measuredusing VaR at a
95
% confidence level
fortheUBS GroupexcludingcertainlegacyCreditSuissecomponents,anda
98
%confidencelevelforthe
aforementioned legacy Credit Suisse components,and applying a 1-day holding period, aligned to the way we consider
the risks associated withour trading activities. From2026, VaR limits are establishedfor the UBS Group excludingcertain
legacy Credit Suissecomponents only; VaRlimits for legacyCredit Suisse componentshave been decommissioned,as the
remaining exposure is immaterial.
Management VaR for the period
AveragemanagementVaR(1-day,95%confidencelevel)oftheUBS GroupexcludingcertainlegacyCreditSuisse
components in2025decreasedtoUSD 10m fromUSD 12min 2024,mainlydriven bytheInvestment Bank’sGlobal
Markets business.
AveragemanagementVaR(1-day,98%confidencelevel)oftheaforementioned legacyCreditSuissecomponentsin
2025 decreasedto USD 3mfrom USD 12min 2024,driven bycontinued strategicmigration ofpositions toUBS and
exposure reduction in Non-core and Legacy.
Audited |
Management value-at-risk (1-day, 95% confidence level, 5 years of historical data) of the business divisions and Group
Items excluding certain legacy Credit Suisse components, by general market risk type
1,2
For the year ended 31.12.25
USD m
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Min.
0
8
6
1
0
Max.
9
21
14
9
8
Average
3
15
9
5
2
31.12.25
1
13
8
9
1
Total management VaR
2
19
10
9
Average (per business division and risk type)
Global Wealth Management
1
3
2
2
0
2
2
0
0
Personal & Corporate Banking
0
0
0
0
0
0
0
0
0
Asset Management
0
0
0
0
0
0
0
0
0
Investment Bank
1
17
9
8
3
14
8
5
2
Non-core and Legacy
1
3
1
2
0
1
0
0
0
Group Items
3
6
4
4
1
3
2
1
0
Diversification effect
3,4
(6)
(7)
(1)
(4)
(4)
(1)
0
For the year ended 31.12.24
USD m
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Min.
0
11
6
1
2
Max.
12
24
16
9
14
Average
4
16
9
4
4
31.12.24
1
20
10
3
4
Total management VaR
5
23
12
11
Average (per business division and risk type)
Global Wealth Management
1
2
2
1
0
1
2
0
0
Personal & Corporate Banking
0
0
0
0
0
0
0
0
0
Asset Management
0
0
0
0
0
0
0
0
0
Investment Bank
3
23
11
10
4
15
8
3
4
Non-core and Legacy
1
3
1
1
0
1
1
0
0
Group Items
4
12
5
6
1
4
3
1
0
Diversification effect
3,4
(6)
(8)
(1)
(5)
(4)
(1)
0
1 The legacy Credit Suissecomponents not included inthe UBS Group managementVaR reflect the portfolio managedon legacy Credit Suisseinfrastructure based on legacy CreditSuisse management VaR methodology
until fullmigration ofthese positionsto UBSinfrastructure orthe liquidationof thepositions. Thisprocess isongoing, andthe managementVaR ofthe legacyCredit Suissecomponents isexpected tocontinue
decreasing over time.2 Statistics at individual levels may not be summed to deduce the corresponding aggregate figures.The minima and maxima for each level may occur on different days,and, likewise, the VaR
for each business line or risktype, being driven bythe extreme loss tail of thecorresponding distribution of simulated profitsand losses for that businessline or risk type, maywell be driven by different daysin the
historical time series, rendering invalid the simple summation of figures to arriveat the aggregate total.3 The difference between the sum of the standalone VaRfor the business divisions and Group Items and the
total VaR.4 As the minima and maxima for different business divisions and Group Items occur on different days, it is not meaningfulto calculate a portfolio diversification effect.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control114
Management value-at-risk (1-day, 98% confidence level, 2 years of historical data) of certain legacy Credit Suisse
components of the business divisions and Group Items, by general market risk type
1,2
For the year ended 31.12.25
USD m
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Min.
1
0
0
0
0
Max.
2
3
4
3
0
Average
1
1
1
1
0
31.12.25
1
0
0
0
0
Total management VaR
1
6
3
1
Average (per business division and risk type)
Global Wealth Management
0
1
1
0
1
0
0
0
0
Personal & Corporate Banking
0
1
0
0
0
0
0
0
0
Asset Management
0
0
0
0
0
0
0
0
0
Investment Bank
1
2
1
1
1
0
0
0
0
Non-core and Legacy
0
5
2
0
0
1
1
0
0
Group Items
0
0
0
0
0
0
0
0
0
Diversification effect
3,4
(1)
(1)
0
0
0
0
0
For the year ended 31.12.24
USD m
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Min.
1
2
4
0
0
Max.
13
12
14
5
1
Average
5
6
9
1
0
31.12.24
1
2
4
1
0
Total management VaR
5
21
12
5
Average (per business division and risk type)
Global Wealth Management
1
3
2
1
1
0
1
0
0
Personal & Corporate Banking
0
0
0
0
0
0
0
0
0
Asset Management
0
0
0
0
0
0
0
0
0
Investment Bank
1
11
3
1
2
1
1
0
0
Non-core and Legacy
4
16
10
4
4
4
9
1
0
Group Items
0
0
0
0
0
0
0
0
0
Diversification effect
3,4
(3)
(1)
(2)
1
(2)
0
0
1 The legacy Credit Suissecomponents not included inthe UBS Group managementVaR reflect the portfolio managedon legacy Credit Suisseinfrastructure based on legacy CreditSuisse management VaR methodology
until fullmigration ofthese positionsto UBSinfrastructure orthe liquidationof thepositions. Thisprocess isongoing, andthe managementVaR ofthe legacyCredit Suissecomponents isexpected tocontinue
decreasing over time.2 Statistics at individual levels may not be summed to deduce the corresponding aggregate figures.The minima and maxima for each level may occur on different days,and, likewise, the VaR
for each business line or risktype, being driven bythe extreme loss tail of thecorresponding distribution of simulated profitsand losses for that businessline or risk type, maywell be driven by different daysin the
historical time series, rendering invalid the simple summation of figures to arriveat the aggregate total.3 The difference between the sum of the standalone VaRfor the business divisions and Group Items and the
total VaR.4 As the minima and maxima for different business divisions and Group Items occur on different days, it is not meaningfulto calculate a portfolio diversification effect.
VaR limitations
Audited |
Actual realized market risk losses may differ from those implied by VaR for a variety of reasons.
–
VaR is calibrated to a specified level of confidence and may not indicate potential losses beyond this confidence level.
–
The 1-day time horizon usedfor VaR for internal managementpurposes may not fully capturemarket risk of positions
that cannot be closed out or hedged within the specified period.
–
Insomecases,VaRcalculationsapproximatetheeffectofchangesinriskfactorsonthevaluesofpositionsand
portfolios.
–
Effectsofextrememarketmovementsaresubjecttoestimationerrors,whichmayresultfromnon-linearrisk
sensitivities,andthepotentialforactualvolatilityandcorrelationlevelstodifferfromassumptionsimplicitinVaR
calculations.
–
The choice of a longer historical window meanssudden increases in market volatility will tend notto increase VaR as
quickly asthe useof shorterhistorical observationperiods, butsuch increaseswill affectVaR fora longerperiod of
time. Similarly, after periods of increased volatility, as markets stabilize, VaR predictions will remain moreconservative
for a period of time, influenced by the length of the historical observation period.
We recognizethat nosingle measurecan encompassall risksassociated witha positionor portfolio.We usea setof
metricswithbothoverlappingandcomplementarycharacteristicstocreateaholisticframeworkthataimstoensure
material completeness of risk identification and measurement. As a statisticalaggregate risk measure, VaR supplements
our comprehensive stress-testing framework.
We also have a framework to identify and quantify potential risks not fully captured by our VaR model and refer to such
risks as risks not in VaR.
VaR model confirmation
VaR backtestingis a performance measurementprocess in which a1-day VaRprediction is comparedwith the realized
1-day profit or loss. We conduct backtesting for internal model confirmation purposes.
VaR model developments in 2025
Audited |
In 2025, nomaterial changes weremade to theVaR model used forthe UBS Groupexcluding certain legacyCredit
Suisse components or to the VaR model used for those certain legacy Credit Suisse components.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control115
Market-risk-related regulatory capital developments
The Basel Committeeon Banking Supervision(the BCBS) finalBasel III standardson the minimumcapital requirements
for market risk,known as theFundamental Review ofthe Trading Book (the FRTB),entered into force on1 January 2025.
FINMA issued implementing ordinancesto support thesechanges. These ordinancesare effectivefrom 1 January 2025
andprovidetechnicaldetailsfortherevisedCapitalAdequacyOrdinance,ensuringalignmentwithinternational
standards. Key elements ofthe revised market riskframework include: (i) changesto the internalmodel-based approach,
includingchangestothemodelapprovalandperformancemeasurementprocess;(ii) changestothestandardized
approach with the aim of providinga credible fallback method for an internal model-based approach;and (iii) a revised
boundary between the trading book and the banking book.
As part of goinglive with the FRTB,UBS has adopted thestandardized approach for allFINMA-regulated legal entities,
including the UBS Group.
›
Refer to “Risk-weighted assets” in the “Capital management” section of this report for moreinformation about the development
of RWA,including the regulatory add-on
›
Refer to the “Regulatory and legal developments” section of this report for moreinformation
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
,
for more information
Interest rate risk in the banking book
Sources of interest rate risk in the banking book
Audited |
IRRBB arisesfrom balancesheet positionssuch asAmounts duefrom banks,Loans andadvances tocustomers,
Financial assets at fair value notheld for trading, Financial assets measuredat amortized cost, Customer deposits, Debt
issued measuredat amortizedcost, andDerivative financialinstruments, includingthose subjectto hedgeaccounting.
Fair value changes to thesepositions may affect other comprehensive income(OCI) or the income statement,depending
on their accounting treatment.
Our largestbanking bookinterest rateexposures arisefrom customerdeposits andlending productsin GlobalWealth
Management and Personal& Corporate Banking, aswell as from debtissuance, liquidity buffers andinterest rate hedges
in Group Treasury. The inherentinterest rate risks stemming fromGlobal Wealth Management andPersonal & Corporate
Banking are generally transferred toGroup Treasury, to manage themcentrally together with our modeledinterest rate
duration assigned to equity,goodwill and real estate. Thismakes the netting of interestrate risks across different sources
possible, whileleaving theoriginating businesseswith commercialmargin andvolume management.The residualinterest
rate risk is mainly hedged withinterest rate swaps, to the vast majorityof which we apply hedge accounting.Short-term
exposures and HQLA classifiedas Financial assets atfair value not heldfor trading are hedgedwith derivatives accounted
for on a mark-to-market basis. Long-term fixed-rate debt issued and HQLA hedged with external interest rate swaps are
designated in fair value hedge accounting relationships.
Risk management and governance
IRRBB is measured using several metrics, the most relevant of which are the following.
–
EVE sensitivity toyield curve movesis calculated aschanges in thepresent value offuture cash flowsirrespective of
accounting treatment. These yieldcurve moves are alsothe key risk factorsfor statistical and stress-basedmeasures,
e.g. VaR and stress scenarios, as well as the regulatory interest rate scenarios. These are measured and reported daily.
The regulatoryIRRBB EVE exposureis themost adverseregulatory interestrate scenariothat is nettedacross currencies.
It excludes the sensitivity from additional tier 1 (AT1) capital instruments (as per specificFINMA requirements) and the
modeled interest rate duration assigned to equity, goodwill and real estate. UBS also applies granular internal interest
rate shock scenarios to its banking book positions to monitor its specific risk profile.
–
Net interestincome (NII)sensitivities toyield curvemoves arecalculated aschanges ofbaseline NIIover aset time
horizon, which we internallycompute by assuming interestrates in allcurrencies develop according totheir market-
implied forward rates andassuming constant business volumesand product mix andno specific management actions.
The sensitivities are measured and reported monthly.
We activelymanage IRRBB,with theaim ofreducing thevolatility ofNII subjectto limitsand triggersfor EVEand NII
exposure at consolidated and significant legal entity levels.
The Group Asset andLiability Committee (the GroupALCO) and, where relevant,ALCOs at alegal entity level perform
independentoversightoverthemanagementofIRRBB,whichisalsosubjecttoGroupInternalAuditandmodel
governance.
›
Refer to “Group Internal Audit” in the “Corporate governance” section of this report and to “Risk measurement”in this section for
more information
Key modeling assumptions
The cashflows fromcustomer deposits andlending productsused in calculationof EVEsensitivity exclude commercial
margins andother spreadcomponents, areaggregated bydaily timebuckets and arediscounted using risk-freerates.
Our external issuances arediscounted using UBS’s seniordebt curve, and capital instrumentsare modeled to the firstcall
date. NII sensitivity,which includes commercialmargins, is calculatedover a one-yeartime horizon, assumingconstant
balance sheet structure and volumes, and considers embedded interest rate options.
The averagerepricing maturityof non-maturingdeposits andloans isdetermined viatarget replicationportfolios designed
to protectproduct margins.Optimal replicatingportfolios aredetermined atgranular currency-and product-specificlevels
by simulating and applying a real-world market rate model to historically calibrated client rate and volume models.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control116
We use aneconometric prepayment modelto forecast prepaymentrates on USmortgage loans inUBS BankUSA and
agency mortgage-backed securities (MBSs)held in various liquidity portfoliosof UBS Americas HoldingLLC consolidated.
TheseprepaymentratesareusedtoforecastbothmortgageloanandMBSbalancesundervariousmacroeconomic
scenarios. Theprepaymentmodelisused foravariety ofpurposes, includingriskmanagement andregulatory stress
testing. Swiss mortgages and fixed-term deposits generally do not carry similar optionality, due to prepayment and early
redemption penalties.
Effect of interest rate changes on shareholders’ equity and CET1 capital
The “Accounting and capital effectof changes in interestrates” table below shows theeffects on shareholders’equity
and CET1capital ofgains andlosses fromchanges ininterest ratesin themain bankingbook positions.We usederivatives
to hedgeinterest raterisks inthe bankingbook andthese reflectchanges ininterest ratesas animmediate fairvalue
gain or loss, recognized either in the income statement or through OCI. Where hedged itemsare accrual accounted, we
aim to minimize accounting asymmetries by applying hedge accounting to reflect the economic hedge relationship.
In a rising ratescenario, we would have aninitial decrease in shareholders’ equityas a result offair value losses onour
derivatives recognized in OCI,while we would expecthigher NII over timeas rates increase. Theeffect on CET1capital
would be much lower, as gains and losses on interest rate swaps designated as cash flow hedges are not recognized for
regulatory capital purposes.
Accounting and capital effect of changes in interest rates
1
Recognition
Shareholders’ equity
CET1 capital
Timing
Income statement / OCI
Gains
Losses
Gains
Losses
Loans and deposits at amortized cost
2,3
Gradual
Income statement
l
l
l
l
Other financial assets and liabilities measured at amortized cost
2
Gradual
Income statement
l
l
l
l
Debt issued measured at amortized cost
2,3
Gradual
Income statement
l
l
l
l
Receivables and payables from securities financing transactions
2
Gradual
Income statement
l
l
l
l
Financial assets at fair value not held for trading
Immediate
Income statement
l
l
l
l
Financial assets at fair value through other comprehensive income
Immediate
OCI
l
l
l
Derivatives designated as cash flow hedges
Immediate
OCI
4
l
l
Derivatives designated as fair value hedges
5
Immediate
Income statement
l
l
l
l
Derivatives transacted as economic hedges
Immediate
Income statement
l
l
l
l
1 Refer to the “Reconciliation ofequity under IFRS Accounting Standards toSwiss SRB common equity tier 1capital” table in the “Capital management”section of this report for moreinformation about the differences
between shareholders’ equity and CET1 capital.2 For fixed-rate financial instruments,changes in interest rates affect the incomestatement when these instruments roll over andreprice.3 For hedge-accounted
items, a fairvalue adjustmentis applied inline with thetreatment of thehedging derivatives.4 Excluding hedgeineffectiveness that isrecognized in theincome statement inaccordance with IFRSAccounting
Standards.5 The fair value ofthe derivatives is offset bythe fair value adjustment ofthe hedged items. Under thefair value hedge program appliedto cross-currency swaps and foreigncurrency debt, the foreign
currency basis spread is excluded from the hedge designation and accounted for through OCI, which is included in CET1.
Economic value of equity sensitivity
Audited |
The EVE sensitivity inthe UBS Groupbanking book to a+1-basis-point parallel shift inyield curves was negative
USD
43.9
m as of 31 December2025, compared with negativeUSD
37.3
m as of 31 December2024. This excluded the
sensitivity of USD
8.0
m fromAT1capital instruments (asper specific FINMArequirements) incontrast to generalBCBS
guidance.TheexposureinthebankingbookoftheUBSGroupincreasedin2025,drivenbynetinterestincome
stabilization initiatives and interest rate hedges in connection with issuances of AT1 capital instruments.
The majority of ourIRRBB as of 31 December2025 was a reflectionof the net assetduration that we ranto offset our
modeled sensitivity of netUSD
33.2
m (31 December 2024: USD
29.4
m) assigned to ourequity, goodwill and real estate,
with theaim ofgenerating astable NIIcontribution. Ofthis, USD
19.7
m andUSD
11.6
m wereattributable tothe US
dollar and the Swiss franc portfolios, respectively, (31 December 2024: USD
17.1
m and USD
10.6
m, respectively).
In addition to the aforementioned sensitivity, we calculate the six interest rate shock scenarios prescribed by FINMA. The
“Parallel up” scenario, assuming all positionswere measured at fair value, was themost severe as of 31 December 2025
and would haveresulted in achange in EVEof negative USD
8.1
bn, or
8.9
% of ourtier 1 capital (31 December2024:
negative USD
6.7
bn, or
7.6
%), which is well below the
15
% threshold as per the BCBS supervisory outliertest for high
levels of IRRBB.
The immediateeffect onour tier 1capital inthe “Parallelup” scenarioas of31 December 2025would havebeen a
decrease of approximatelyUSD
0.8
bn, or
0.9
%, in ourtier 1 capital (31 December2024: USD
0.9
bn, or
1.0
%), reflecting
the fact thatthe vast majorityof our bankingbook is accrualaccounted or subjectto hedge accounting.The “Parallel
up” scenario would subsequently have a positive effect on NII, assuming a constant balance sheet.
Astheoverallinterestraterisksensitivityshowsagreaterimpactfromslowerassetrepricingcomparedwithfaster
liabilitiesrepricing,the“Paralleldown”scenariowasthemostbeneficialasof31 December2025andwouldhave
resultedinachangeinEVEofpositiveUSD
8.3
bn(31 December2024:positiveUSD
7.2
bn)andasmallpositive
immediate effect on our tier 1 capital.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control117
Net interest income sensitivity
The main NII sensitivityin the banking bookresides in GlobalWealth Management and Personal& Corporate Banking.
Weassign atarget durationto ourinvestment ofequity portfolio,and GroupTreasuryactively managesthe residual
IRRBB. Thissensitivity isassessed usinga numberof scenariosassuming paralleland non-parallelshifts inyield curves,
with variousdegreesof severity,and wehave setand monitorthresholdsfor theNII sensitivityto immediateparallel
shocks of –200 and +200 basis points under the assumption ofno change to balance sheet size and product mix, stable
foreign exchange rates, and no specific management action.
›
Refer to the “Group performance”section of this report for more information about sensitivity to interest ratemovements
Audited |
Interest rate risk – banking book
31.12.25
USD m
Effect on EVE
1
– FINMA
Effect on EVE
1
– BCBS
Scenarios
CHF
EUR
GBP
USD
Other
Total
Additional tier 1 capital
instruments
Total
+1 bp
(12.5)
(1.7)
(0.2)
(28.5)
(1.0)
(43.9)
8.0
(35.9)
Parallel up
2
(1,770.1)
(315.7)
(50.4)
(5,698.0)
(239.3)
(8,073.4)
1,492.1
(6,581.3)
Parallel down
2
1,971.6
355.5
46.5
5,622.8
264.8
8,261.3
(1,751.2)
6,510.1
Steepener
3
(889.8)
(20.6)
(10.4)
(1,371.3)
6.8
(2,285.2)
336.0
(1,949.2)
Flattener
4
552.3
(31.4)
1.7
61.1
(58.9)
524.8
2.7
527.5
Short-term up
5
(169.8)
(126.5)
(14.6)
(2,226.1)
(145.6)
(2,682.7)
644.8
(2,037.8)
Short-term down
6
167.9
127.7
9.2
2,308.9
144.6
2,758.2
(671.8)
2,086.5
31.12.24
USD m
Effect on EVE
1
– FINMA
Effect on EVE
1
– BCBS
Scenarios
CHF
EUR
GBP
USD
Other
Total
Additional tier 1 capital
instruments
Total
+1 bp
(10.5)
(1.4)
(0.3)
(24.6)
(0.5)
(37.3)
5.5
(31.7)
Parallel up
2
(1,509.7)
(263.7)
(65.5)
(4,758.9)
(95.6)
(6,693.4)
1,000.4
(5,693.0)
Parallel down
2
1,643.9
295.9
76.2
5,068.6
101.1
7,185.8
(1,173.0)
6,012.8
Steepener
3
(749.1)
(10.4)
(12.7)
(1,255.4)
(9.7)
(2,037.3)
168.0
(1,869.3)
Flattener
4
464.0
(33.3)
(0.2)
161.0
(10.5)
581.0
61.0
642.1
Short-term up
5
(149.4)
(112.2)
(22.8)
(1,820.7)
(46.1)
(2,151.1)
484.4
(1,666.7)
Short-term down
6
132.6
112.2
23.3
1,931.8
46.6
2,246.5
(504.4)
1,742.2
1 Economic valueof equity.2 Rates acrossall tenors moveby ±150 bpsfor Swiss franc,±200 bps foreuro and USdollar,and ±250 bpsfor pound sterling.3 Short-term ratesdecrease and long-termrates
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.
Other market risk exposures
Own credit
Weare exposedto changesin ourown creditreflected inthe valuationof financialliabilities designatedat fairvalue
when ourown creditrisk wouldbe consideredby marketparticipants, exceptfor fullycollateralized liabilitiesor other
obligations for which it is established market practice to not include an own-credit component.
›
Refer to “Note 20 Fair value measurement” in the “Consolidated financial statements” sectionof this report for more information
about own credit
Structural foreign exchange risk
Upon consolidation, assetsand liabilities heldin foreign operationsare translated intoUS dollars atthe closing foreign
exchange rate onthe balance sheetdate. Value changes (inUS dollars) ofnon-US-dollar assets orliabilities due toforeign
exchange movements are recognized in OCI and therefore affect shareholders’ equity and CET1 capital.
GroupTreasuryusesstrategiestomanagethisforeigncurrencyexposure,includingmatchedfundingofassetsand
liabilities and net investment hedging.
›
Refer to “Sensitivity to currency movements” in the “Capital management”section and to the “Currency management” section of
this report for more information about our exposure to and managementof structural foreign exchange risk
›
Refer to “Note 24 Hedge accounting”in the “Consolidated financial statements” section of this report for more informationabout
our hedges of net investments in foreign operations
Investment risk
Weareexposedtoinvestmentriskbyholdingowninvestmentsinequitysecurities,investmentfundunitsanddebt
instruments.
Equity investments and investment fund units
Audited |
We make direct investments in a variety of entitiesand buy equity holdings in both listedand unlisted companies,
with the aim of supporting our business activities and deliveringstrategic value to the firm. This includes investments in
exchangeandclearinghousememberships,aswellasminorityinvestmentsinearly-stagefintechsandtechnology
companies. We mayalso make investmentsin funds thatwe manage inorder to fundor seed themat inception orto
demonstrate that our interests align with those of investors. Wealso buy,and are sometimes required by agreementor
regulation to buy, securities and units frominvestment vehicles that we have sold to clients.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control118
Thefairvalueofequityinvestmentstendstobeinfluencedbyfactorsspecifictotheindividualinvestments.Equity
investments are generally intended to be held for themedium or long term and may be subjectto lock-up agreements.
For thesereasons, wegenerally donot controlthese exposuresby usingmarket riskmeasures appliedto tradingactivities.
However, such equity investments are subject to a different range of controls, including preapproval of new investments
forcommercialpurposesbybusinessmanagementandRiskControl,portfolioandconcentrationlimits,andregular
monitoring and reporting to senior management. They are alsoincluded in our Group-wide statistical and stress-testing
metrics, which flow into our risk appetite framework.
As of31 December 2025,we heldequity investmentsand investmentfund unitstotaling USD
6.0
bn (31 December2024:
USD
6.8
bn), of which USD
3.7
bn (31 December 2024: USD
4.5
bn) was classified as Financialassets at fair value notheld
for trading and USD
2.3
bn (31 December 2024: USD
2.3
bn) as Investments in associates
.
›
Refer to “Note 20 Fair value measurement”and “Note 27 Interests in subsidiaries and other entities”in the “Consolidated
financial statements” section of this report for more information
›
Refer to “Note 1 Summary of material accounting policies” in the “Consolidated financial statements” section of this reportfor
more information about the classification of financial instruments
Debt investments
Audited |
Debt investments classified as Financialassets measured at fairvalue through other comprehensiveincome as of
31 December2025canbroadlybecategorizedasmoneymarketinstrumentsanddebtsecuritiesprimarilyheldfor
statutory, regulatoryor liquidity reasons.
The risk control frameworkapplied to debt instrumentsclassified as Financialassets measured at fair value throughother
comprehensiveincome dependson the natureof the instrumentsand thepurposefor whichwe holdthem. Ourexposures
may be includedin market risklimits or besubject to specificmonitoringand interestrate sensitivityanalysis. Theyare also
includedin our Group-widestatisticaland stress-testingmetrics,which flowinto our riskappetite framework.
Debt instrumentsclassified asFinancial assetsmeasured atfair valuethrough othercomprehensive incomehad afair
value of USD
13.9
bn as of 31 December2025 (31 December 2024: USD
2.2
bn). The increase mainlyreflects purchases
of HQLA.
›
Refer to “Note 20 Fair value measurement”in the “Consolidated financial statements” section of this report for more information
›
Refer to “Economic value of equity sensitivity” in this section for more information
›
Refer to “Note 1 Summary of material accounting policies” in the “Consolidated financial statements” section of this reportfor
more information about the classification of financial instruments
Pension risk
We provide a number of pension plans for past and current employees, some classified as defined benefit pension plans
under IFRS AccountingStandards, which canhave an effecton our equityunder IFRS AccountingStandards andCET1
capital.
Pension risk is the riskthat defined benefit plans’ fundedstatus might decrease, negativelyaffecting our capital. This can
result fromdecreases inthe valueof aplan’s assets,increases indefined benefitobligations orcombinations ofthe above.
Important risk factors affecting the fair value of pension plans’ assets include equity market returns, interest rates, bond
yields,andrealestateprices.Importantriskfactorsaffectingthepresentvalueofexpectedfuturebenefitpayments
include high-grade bond yields, interest rates, inflation rates, and life expectancy.
PensionriskisincludedinourGroup-widestatisticalandstress-testingmetrics,whichflowintoourriskappetite
framework. The potential effects are thus captured in the post-stress capital ratio calculations.
›
Refer to “Note 1 Summary of material accounting policies” and “Note 25 Post-employment benefit plans” inthe “Consolidated
financial statements” section of this report for more information about defined benefitplans
UBS own share exposure
Group Treasuryholds UBS Group AG shares to hedge future share delivery obligations related to employee share-based
compensation awards andalso holds sharespurchased under theshare repurchase programs. Inaddition, the Investment
BankholdsalimitednumberofUBSGroup AGshares,primarilyinitscapacityasamarket-makerwithregardto
UBS Group AG shares and related derivatives, and to hedge certain issued structured debt instruments.
›
Refer to the “UBS shares” section of this report for more information
Country risk
Country risk framework
Country risk includesall country-specific eventsoccurring in asovereign jurisdictionthat may leadto impairment ofUBS’s
exposures. Itmay takethe formof: (i) sovereignrisk, whichis theability andwillingness of agovernment tohonor its
financialcommitments;(ii) transferrisk,whicharisesifacounterpartyorissuercannotacquireforeigncurrencies
following amoratorium by acentral bank onforeign exchange transfers;or (iii) “other”country risk. “Other”country
risk maymanifest itselfthrough increasedand multiplecounterparty andissuer defaultrisk (systemicrisk) orthrough
events thatmay affecta country’sstanding, suchas adverseshocks affectingpolitical stabilityor institutionaland / or
legal frameworks.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control119
We assigna countryrating toeach country,which reflectsour viewof itscreditworthiness andof theprobability ofa
country riskevent occurring.Country ratingsare mappedto statisticallyderived defaultprobabilities, describedunder
“Probability of default” in this section. We use this internal analysis to set the credit ratings of governments and central
banks, estimate theprobability of a transferevent occurring, andestablish rules on howaspects of country riskshould
be incorporated in counterparty ratings of non-sovereign entities domiciled in the respective country.
Country ratings are also usedto define our riskappetite regarding foreign countries. Acountry risk limit (i.e.maximum
aggregate exposure) applies to exposures to counterparties or issuers of securities and financial investments in the given
foreign country. We may limit the extension of credit, transactions in traded products orpositions in securities based on
a country risk ceiling, even if our exposure to a counterparty is otherwise acceptable. Country limits are approvedby the
Board ofDirectors and aredelegated to theGroup CEO andthe Group CROaccording to thecountry rating andlimit
size.
Our country riskframework differsacross the UBS Group,and alignment ofapproaches ispart of theongoing integration
of Credit Suisse.
For internal measurement and control of country risk, we alsoconsider the financial effect of market disruptions arising
prior to, during and aftera country crisis. These maytake the form of asevere deterioration in a country’sdebt, equity
or other asset markets,or a sharp depreciation ofits currency. We use stresstesting to assess potential financialeffects
of severe country orsovereign crises. Thisinvolves the developingof plausible stress scenariosfor combined stresstesting
andtheidentificationofcountriesthatmaypotentially besubjecttoacrisisevent,determiningpotentiallossesand
making assumptionsaboutrecovery ratesdepending onthe typesofcredit transactionsinvolved andtheir economic
importance to the affected countries.
Country risk exposure
Country risk exposure measure
The presentation of country risk follows our internal risk view, where the basis for measuring exposures depends on the
product category in which we classify the exposures. In addition to the classification of exposures into banking products
and traded products,covered in “Creditrisk profile ofthe Group” inthis section, forthe UBS Group excludingcertain
legacy Credit Suisse components the trading inventory is also shown.
Banking products exposure representsnotional amounts. Traded productspotential exposure reflects thepossible impact
of market movementson both theexposure and anyrelated collateral overthe period requiredto close outour positions.
We donot recognizeany expectedrecovery valueswhen reportingcountry exposure;we recognizethe risk-reducing
effects ofmaster netting agreementsand collateral held,which we deductfrom thepotential exposure values.Within
banking products and traded products, risk-reducing effects of credit protection are also taken into account.
Trading inventory includes issuer riskon securities (such as bonds andequities) and risk relating tounderlying reference
assets forderivative positions.Trading inventoryis managedon anet basis,and thevalue oflong positionsis netted
against that of short positions withthe same underlying issuer. Net exposures arefloored at zero per issuer. Asa result,
potentially offsetting benefits of certain hedges and short positions across issuers are not recognized.
Country risk exposure allocation
In general,exposuresare shownagainstthe countryof domicileof thecontractualcounterpartyor theissuer ofthe
security.Forsomecounterpartieswhoseeconomicsubstanceintermsofassetsorsourceofrevenuesisprimarily
located in a different country, the exposure is allocated to the risk domicile of those assets or revenues.
In the case of derivatives, we showthe counterparty’s risk potentialexposure against the counterparty’scountry of risk
(presentedwithintradedproducts).Inaddition,riskassociatedwithaninstantaneousfallinvalueofunderlying
reference assets to zero(assuming no recovery) is shownagainst the country of riskof the issuer of the referenceasset
(presented within the trading inventory for the UBS Groupexcluding certain legacy Credit Suisse components only). This
approach enables us to capture both counterparty and, whereapplicable, issuer elements of risk arising from derivatives
and applies comprehensivelyfor all derivatives, includingsingle-name credit default swapsand other credit derivatives.
Top 20 country risk exposures
The tablebelow showsour 20largest countryexposures byproduct type,excluding ourhome country, asof 31 December
2025 compared with 31 December 2024.
Compared with 2024, ournet exposure was largelystable. The list ofour top 20 countriesremained broadly unchanged,
with two new entries (Braziland Austria) and the exposureto each of those twonot exceeding USD 2.0bn. Basedon the
sovereignratingcategories,asof31 December2025,84%ofouremergingmarketcountryexposurewasrated
investment grade, compared with 85% as of 31 December 2024.
Venezuela
As of 31 December 2025, our direct country risk exposure to Venezuela was USD 4m, solely from issuer risk exposure in
the Investment Bank.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control120
Israel and Middle East
As of31 December 2025,our directcountry riskexposure toIsrael wasUSD 375m, mainlyfrom lendingand collateralized
over-the-counterderivativesexposurewithintheInvestmentBank.OurdirectexposuretoGulfCooperationCouncil
countries as of 31 December 2025was USD 4.1bn, while our directexposure to Egypt, Jordan and Lebanonwas limited,
and we had no direct exposure to Iran, Iraq or Syria.
Russia
Our direct country risk exposure to Russia contributedUSD 382m to our total emerging marketexposure of USD 26.9bn
as of31 December 2025.This includedcash accountbalances andlending exposuresfrom Non-coreand Legacy.We
had nomaterial directcountry risk exposureto Belarus orto Ukraine asof 31 December 2025.Potential second-order
impacts, such as European energy security, continue to be monitored.
Top20 country risk net exposures, by product type
USD m
Banking products
1,2
Traded products
3
Trading inventory
4,5
Total
2
31.12.25
31.12.24
31.12.25
31.12.24
31.12.25
31.12.24
31.12.25
31.12.24
United States
142,740
156,763
26,308
28,847
62,232
42,744
231,281
228,353
United Kingdom
15,383
15,745
13,981
18,112
4,294
1,880
33,658
35,737
Germany
15,054
15,247
5,891
7,162
9,067
7,796
30,012
30,205
Japan
23,439
20,131
5,147
4,757
953
931
29,539
25,819
France
2,027
2,007
3,820
4,936
8,118
7,786
13,965
14,729
Singapore
3,988
3,568
2,235
3,565
6,842
5,127
13,065
12,260
Australia
6,763
6,357
4,054
8,404
2,112
2,158
12,928
16,920
Canada
1,750
835
3,134
2,839
5,825
4,843
10,708
8,516
Luxembourg
5,730
6,360
528
1,191
107
99
6,365
7,649
China
2,063
1,662
876
1,278
2,247
1,971
5,186
4,911
Netherlands
1,447
1,830
1,732
2,572
1,868
1,044
5,047
5,446
Hong Kong
1,329
1,490
1,690
1,190
1,065
1,111
4,084
3,792
South Korea
1,232
602
679
666
2,026
3,100
3,938
4,368
Italy
1,719
1,542
897
909
1,074
904
3,689
3,355
Sweden
332
413
898
1,479
1,435
1,442
2,665
3,334
Norway
144
70
426
440
2,048
1,299
2,617
1,809
Spain
1,178
937
533
661
681
502
2,392
2,099
Brazil
439
576
644
410
804
391
1,887
1,377
Austria
271
261
468
535
1,110
654
1,850
1,450
Finland
81
76
188
303
1,341
1,335
1,610
1,713
Total top 20
6
227,109
236,472
74,129
90,256
115,249
87,117
416,486
413,842
1 Includes loans, guarantees and loancommitments.2 Net of hedges andbefore deduction of IFRS 9ECL allowances and provisions.3 Includes counterparty risk fromderivatives and securities financing transactions
measured using potential exposure, after master netting agreements, net of collateral and net of hedges.4 Represents an issuer’s net long position, including securities and tradable obligations, such as derivatives,
which are referencedto that issuer.5 Tradinginventory exposures arefor UBS Groupexcluding legacy CreditSuisse components only.6 Excluding Switzerland,supranationals, globalfunds and shipfinance
exposures.
Emerging markets net exposure, by internal UBS country rating category
1,2
USD m
31.12.25
31.12.24
Investment grade
22,610
23,170
Sub-investment grade
4,325
4,155
Total
26,935
27,325
1 We classify countries as emerging markets based on per capita GDP,historical real GDP growth, alignment with international institutions (such as the BIS, the World Bank, the IMF and the MSCI) andother factors.
2 Net of credit hedges(for banking products andfor traded products); netlong per issuer (fortrading inventory) for theUBS Group excluding legacyCredit Suisse components only.Before deduction of IFRS9 ECL
allowances and provisions.
Sustainability and climate risk
We definesustainability andclimate risksas therisks thatUBS negativelyimpacts, oris impactedby,climate change,
nature, human rights and other environmental and social matters. Such risks may materialize as credit, market, liquidity,
business or non-financial risks for UBS, potentially leading to adverse financial, liability or reputational impacts.
Group Risk Control is responsible for our firm-wide sustainability and climate risk framework and for managingfinancial
exposure tothese risksas asecond lineof defense.Group Complianceand OperationalRisk Controlprovides independent
oversightofournon-financialriskcontrolenvironment,ensuringitsadequacyandeffectiveness.Wemanage
sustainabilityandclimaterisksthroughadedicatedriskmanagementframework,whichcontinuestoevolveandis
focused on meeting emerging regulatory requirementsand enhancing core processes, such as reportingand disclosures.
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Overseen by senior management, the framework is applied across client onboarding, transaction due diligence, product
development, our own operationsand our supplychain. It is acontinuous process, consisting offour phases described
inthefollowingsections:(i) riskidentificationandmeasurement;(ii) monitoringandriskappetitesetting;(iii) risk
management and control; and (iv) risk reporting and disclosure.
›
Refer to the UBS Group Sustainability Report 2025, available under “Annual reporting”at
ubs.com/investors
, for more
information about our sustainability and climate risk framework and our investment approach
›
Refer to “Sustainability and climate risk policy framework” in the Supplement to the UBS Group SustainabilityReport 2025,
available under “Annual reporting” at
ubs.com/investors
, for more information
Risk identification and measurement
Sustainability and climate risksare identified at divisionaland cross-divisional levels.Our climate-related risk identification
methodologiesandmaterialityassessmentcollectivelydefinekeyfocusareasandriskdrivers.Theinsightsgained
contribute to our overall sustainability and climate risk strategy by:
–
identifying concentrationsof climate-sensitiveexposure, whichmay increasevulnerability tofinancial andnon-financial
risks, thereby guiding resource prioritization for enhanced risk quantification and management; and
–
enabling usto assistclients withtheir low-carbontransition andidentify thosewho maybenefit fromour sustainability-
focused products and services.
The outcomes ofthis process guide seniormanagement decision-making andprovide stakeholders withvaluable insights
through our external disclosures.
›
Refer to “Managing sustainability and climate risks” in the UBS Group Sustainability Report 2025,available under “Annual
reporting” at
ubs.com/investors
, for more information
Our approach to climate-related risk identification
Our methodologiesare designedto assesshow susceptibleclients andassets areto climaterisks, focusingon thepotential
financial impacts that could arise from policy changes, technological shifts, market evolution in the context of transition
riskandclimate-relatedhazardeventsinthecontextofphysicalrisk.Theseassessmentsevaluatethemagnitudeof
climate-related riskdrivers affectinga counterpartyor assetclass, helpingus determinehow suchrisks mayinfluence
creditworthiness, collateral values and broader portfolio exposure.
1
For corporateclients, whencounterparty-level informationis availableand ofsufficient quality,a bottom-upmethodology
isused.Themethodologyincludesthecounterparty’smeasuresandactionsinplacetomitigatetransitionrisks
summarized throughUBS’s internalCompany TransitionAssessment Scorecardand theexposure oftheir assetsto physical
hazards.Whencounterparty-levelinformationisnotavailable,atop-downmethodologyisusedfortransitionand
physicalrisksbasedonboththecountry ofriskdomicileandtheinternalUBSindustryclassification(GroupIndustry
Code 2).
ForLombard lending,an overallportfolio ratingis assignedbased onthe averageriskinessof thecollaterals thatare
posted securingthe loans.In 2025,UBS developeda global realestate modelto providea counterparty-levelrating across
transition andphysical risksin thereal estateportfolio. Together,these methodologiesenable UBSto assesshow transition
and physical risks mayinfluence the risk profilesof clients and providea consolidated view ofthe UBS Group exposure
to climate-related risks.
Transition risk
Climate-driven transitionrisks arisefrom thetransition toa sustainableeconomy,in particularits decarbonization,for
example due to changes in policy, case law, technology or in the behavior of market participants.This may contribute to
a structural change across economies and consequently affect banks and the stability of the wider financial sector.
In 2025, thekey sectors contributingto theUBS Group’s transition-risk-sensitiveexposure continued tobe real estate,
industrials and transportation, unchanged from 2024.
Physical risk
Climate-driven physical risks arise from acute hazards, whichare increasing in severity and frequency,and chronic risks,
which arise from an incrementally changing climate.Climate-driven physical risks may contribute to a structural change
across economies and consequently affect banks and the stability of the wider financial sector.
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In 2025, Switzerland and the Americaswere the largest contributors to theUBS Group’s physical-risk-sensitive exposure,
withbothregionsdemonstratingrelativelyhighadaptivecapacitytomanagephysicalriskhazards,resultingina
moderately low overall physical risk rating.
›
Refer to “Managing sustainability and climate risks” in the UBS Group Sustainability Report 2025,available under “Annual
reporting” at
ubs.com/investors
, for more information about the UBS Group’sclimate risk profile
Climate scenario analysis and stress testing
We apply scenario-based approaches to assess our exposure to transition and physical risks arising from climate change.
We have introduced several in-house assessments leveraging industry collaborations to tailorapproaches for addressing
methodologicalanddatachallenges.Weemploydedicatedclimateriskmodelsthataredesignedtocaptureboth
systematic and idiosyncratic effects to perform stress-testing exercises across short-, medium- and long-term horizons.
The workperformed includesregulatory scenarioanalysis andstress-testing exercises.These include,for example,the
Bank ofEngland 2021Climate BiennialExploratory Scenario,the 2022European CentralBank climaterisk stresstest
(which assesses banks’preparedness for dealingwith financial andeconomic shocks stemmingfrom climate risk)and the
2024 Swiss FinancialMarket Supervisory Authority(FINMA) and SwissNational Bank climatescenario analysis exercise.
These exercises facilitated the identification of financial risks from climate change. They also made it possible for UBS to
assess management actions in response to different scenarioresults and perform a counterparty-level analysis. Although
the results indicated mild lossesand low exposure for theentities and portfolios in scope,they provided valuable insights
to strengthen UBS’s climate risk scenario analysis and stress testing.
In 2025,we furtherrefined andexpanded ourinternal climaterisk scenariosand enhancedthe dedicatedclimate risk
methodologies. Furthermore, we conducted a Group-wide climate scenario analysis toguide the materiality assessment
ofclimate-relatedrisks,meetingtheFINMACircular2026/1“Nature-relatedfinancialrisks”(publishedbyFINMAin
December 2024) requirements on nature-related financial risks. A rangeof climate scenarios in line with UBS’s business
model were used, includinga stress scenario, underwhich the lack ofcoordinated mitigation effortsplaces the planet on
a 3°C-warming trajectory by 2100.
Over the last few years, we havealso leveraged industry-wide initiatives, such as the ParisAgreement Capital Transition
Assessment exerciselaunched bythe SwissFederal Officefor theEnvironment in2020, 2022and 2024.Through this
exercise,weassessedtheclimatealignment ofourlistedinvestments (includingequitiesandbonds),mortgages and
direct real estate portfolios.The assessment enabledus to compareour results with theaggregated performance of all
participating banks’ portfolios, showing the progress made over time and the efforts still needed.
Materiality of climate-related risks across risk categories
UBSconductsafinancialriskmaterialityassessmentofclimate-relatedriskdrivers,complementingitsregularrisk
identification processesdescribed above.This climate-relatedmateriality assessmentevaluates howtransition andphysical
risk drivers may affect UBS’s risk categories: credit, market, liquidity, business and non-financial risks.
In 2025, the materialityassessment for climate riskswas enhanced and performedbased on a combinationof qualitative
andquantitativeinputs(includingclimatescenarioanalysisandexposurestoclimate-sensitivesectors),frombothan
inherent and residual perspective. Inherent risk refers to the level of risk that exists in the absence of any climate-related
controls or mitigation actions, whereas residual risk refers to the level of risk after taking them into account.
Materiality was assessed across the short (one year), medium (two to five years) andlong term (more than five years) to
capture the dynamic nature of climate risk exposure.
The table below summarizes whether transition andphysical risks are considered material or notmaterial on an inherent
basis, for each risk category and time horizon under a stress case scenario.
Overview of inherent material risks under stress case scenarios
Risk type
Time horizon
Credit
Market
1
Liquidity
2
Business
3
Non-financial risk
Physical risk
Short-term
Not material
Not material
Not material
Not material
Not material
Medium-term
Not material
Not material
Not material
Long-term
Material
Not material
Transition risk
Short-term
Material
Not material
Material
Material
Not material
Medium-term
Material
Material
Material
Long-term
Material
Material
1
The trading book is assessed using a short-term stress scenario time horizon due to the dynamic risk profile and high liquidity of trading book instruments,which make them sensitive to short-term shocks rather than
long-term climate transition.The banking bookscenario time horizonis aligned with theliquidity portfolio (high-qualityliquid assets) andexisting internal liquidityadequacy assessment process(ILAAP) stress tests,
which operate on a one-year horizon. Thisalignment ensures consistency with regulatory expectations and reflectsthe relatively stable nature of banking book exposures.Therefore, market riskhas not been assessed
in the medium and long terms.
2
The time horizon for the climate risk assessment of liquidity risk isaligned with existing ILAAP stress tests. Liquidity risk is assessedbased on a one-year stress time horizon, which is
considered long term for liquidity purposes and is inalignment with the time horizon of the funding regulatory metric,the net stable funding ratio (one year). Therefore, liquidity risk has not been assessed inthe medium
and long terms.
3
Business risk is assessed for a three-year time horizon in line with the three-year strategic plan. Therefore,business risk has not been assessed in the long term.
Inherent credit riskis assessed asmaterial under stress-case scenarios,primarily due tothe expected long-term impacts
ofchronicphysicalhazardsonmacroeconomicdevelopmentsintherealestatesector(physical risk)andalsodueto
regulatory uncertainty, which may require significant investments and impact credit quality for the real estate sector and
for corporate lending exposures to sectors deemed climate-sensitive (transition risk).
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Inherent liquidity riskis assessed asmaterial under stress-casescenarios, reflecting potentialfor abrupt shiftsin regulatory
conditions, resulting in economic disruptionsthat could trigger significant outflows,elevated funding costs orimpaired
access to capital markets (transition risk).
Inherent business risk is assessed as material under stress-case scenarios, considering the potential financial impacts of a
sudden and disorderlyclimate transition resultingin economic disruptions,which could reducethe value ofassets and
recurringfeeincome,andincreasedmarketuncertainty,whichcouldlowerdealflowandtransaction-basedfees
(transition risk).
All material financial risks are primarily drivenby indirect climate impacts, such as macroeconomic impactsfrom climate
change, as opposed to direct climate impacts on counterparties or assets.
Inherent non-financial risk isassessed as material under stress-casescenarios, due to ongoingregulatory scrutiny and the
evolvinglegallandscapearoundclimateandsustainabilityrequirementsanddisclosures,whichcanexposeUBSto
litigation risk, regulatory penalties and reputational damage in theevent of non-compliance or perceived greenwashing
(transition risk).
Across all risk types, climate-related risks are assessed as not material ona residual basis (after considering our standard
climate-related controls / mitigationactions), withthe exceptionofnon-financial riskin thelongterm.Thelatter risk
remainsmaterialevenaftermitigatingcontrolsaretakenintoaccount,duetopersistentpoliticaluncertaintyand
diverging regulatory requirements across jurisdictions, which leadto heightened legal and litigation risks (transition risk).
Material riskswere fedinto theregular riskidentification process,and aclimate rootcause driverwas added,where
relevant.
›
Refer to “Managing sustainability and climate risks” in the UBS Group Sustainability Report 2025,available under “Annual
reporting” at
ubs.com/investors
, for more information
Monitoring and risk appetite setting
UBShasestablishedaqualitativeandquantitativeriskappetite,whichissubjecttoperiodicmonitoringand
enhancements. The risk appetiteguides decision-making and supportsproactive management of exposuresto climate-
sensitive sectors.
Theclimate-related riskmetrics belowhelpusmonitor ourexposure tokeytransition andphysicalrisk driversacross
portfolios, highlightingwhere climate-relatedvulnerabilities may influenceour overallrisk profile.UBS willcontinue to
develop these metrics, ensuring alignment with regulatory expectations and industry-leading practices.
›
Refer to “Managing sustainability and climate risks” in the UBS Group Sustainability Report 2025,available under “Annual
reporting” at
ubs.com/investors
, for more information about the transition and physical risk drivers
Climate-related risk metrics
The table below includes climate-related riskmetrics for the UBS Group, UBS AG ona standalone basis, UBS Switzerland
AG on a standalone basis and UBS Europe SE on a standalone basis.
In 2025,UBS developedthe globalreal estate(GRE) model,enabling asset-levelsensitivity assessmentsfor realestate
financingandtheprivateclientswithmortgagesportfolio,impactingbothtransition-andphysical-risk-sensitive
exposures.
Climate-driven transition-risk-sensitive exposure accounted for 24.6% ofthe UBS Group’s total gross lending exposure,
upfrom 21.0%based onthe revised
2
2024 figures,reflecting theGRE modelenhancement. TheGRE modelapplies
UBS’s Swissresidential and commercialreal estatedecarbonization targets toidentify properties thatrely onfossil fuel
heating systems and are not progressing in line with UBS’s decarbonization pathway as sensitive.
Climate-driven physical-risk-sensitive exposureaccounted for 13.8%of the UBS Group’stotal gross lendingexposure, up
from 12.8%based onthe revised
2
2024 figures,reflecting theGRE modelenhancement. TheGRE modelcalculates a
physical risk rating by assessing building-level exposures to a physical risk hazard.
Carbon-related assets accounted for 9.7% ofthe UBS Group’s total gross lending exposure,down from 10.9% in 2024.
However, on an absolute basis, carbon-related assets remained largely flat year on year.
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Risk management – Climate-related metrics
For the year ended
31.12.25
31.12.24
Climate-related metrics (USD bn)
Total exposure to climate-sensitive sectors, transition risk UBS Group AGconsolidated
1,2
192.9
147.5
Climate-sensitive sectors, transition risk, proportion of total gross lending exposure, UBS Group AG consolidated (%)
1,2
24.6
21.0
Total exposure to climate-sensitive sectors, transition risk UBS AG (standalone)
1,2
31.6
36.2
Total exposure to climate-sensitive sectors, transition risk UBS Switzerland AG (standalone)
1,2
154.5
103.5
Total exposure to climate-sensitive sectors, transition risk UBS Europe SE (standalone)
1,2
0.0
0.0
Exposure to climate-sensitive sectors, transition risk: Tradedproducts, UBS Group AG consolidated
3
1.4
2.1
Exposure to climate-sensitive sectors, transition risk: Issuer risk, UBS Group AG consolidated
4
8.8
6.8
Total exposure to climate-sensitive sectors, physical risk: UBS Group AGconsolidated
1,2,5
108.5
89.6
Climate-sensitive sectors, physical risk, proportion of total gross lending exposure, UBS Group AG consolidated gross (%)
1,2
13.8
12.8
Total exposure to climate-sensitive sectors, physical risk UBS AG (standalone)
1,2,5
64.4
65.0
Total exposure to climate-sensitive sectors, physical risk UBS Switzerland AG (standalone)
1,2
56.9
43.5
Total exposure to climate-sensitive sectors, physical risk UBS Europe SE (standalone)
1,2
0.0
0.0
Exposure to climate-sensitive sectors, physical risk: Tradedproducts, UBS Group AG consolidated
3
2.9
3.3
Exposure to climate-sensitive sectors, physical risk: Issuer risk, UBS Group AG consolidated
4
14.4
12.6
Carbon-related assets: UBS Group AG consolidated
1,6
76.1
76.5
Carbon-related assets proportion of total gross lending exposure, UBS Group AG consolidated gross (%)
1,6
9.7
10.9
Carbon-related assets: UBS AG (standalone)
1,6
26.2
30.3
Carbon-related assets: UBS Switzerland AG (standalone)
1,6
51.6
46.6
Carbon-related assets: UBS Europe SE (standalone)
1,6
0.0
0.0
1
Gross lending exposureconsists of totalon-balance sheet loansand advances tocustomers and off-balancesheet guarantees andirrevocable loan commitments(within the scopeof expected creditloss) and is
based on consolidatedand standalone informationreported under IFRSAccounting Standards (inclusiveof purchase priceallocation adjustments recordedin UBS asa result ofthe acquisition ofthe Credit Suisse
Group in compliance with IFRS 3, BusinessCombinations).
2
Comparative figures have been revisedfollowing the development of the globalreal estate model. The revisionapplies to the exposure bookedon the
UBS platform only andnot to the exposure onthe legacy Credit Suisseplatform. Consequently, the previously reported transition riskexposure has been revised asfollows: UBS Group AG (consolidated) toUSD 147.5bn
from USD
120.3bn; UBS AG(standalone) to USD 36.2bnfrom USD 36.6bn; UBSSwitzerland AG (standalone)to USD 103.5bn fromUSD 83bn; and UBSEurope SE (standalone)remained unchanged followingthe
revision. The transition riskproportion of total gross lending exposure,UBS Group AG consolidated (%) wasrevised to 21% from 17.1%. In addition,the previously reported physical risk exposurehas been revised
as follows: UBS Group AG (consolidated) to USD 89.6bn from USD 68.9bn; UBSAG (standalone) to USD 65.0bn from USD 65.7bn; UBS Switzerland AG (standalone) to USD 43.5bn fromUSD 22.6bn; and UBS Europe
SE (standalone) to USD 28.3mfrom USD 24.3m. Thephysical risk proportionof total gross lendingexposure, UBS GroupAG consolidated gross(%) was revisedto 12.8% from 9.8%.
3
For traded productsthe
metric iscalculated usingover-the-counterderivatives,exchange-traded derivativesand securitiesfinancing transactions,consisting ofsecurities borrowingand lending,and repurchaseand reverserepurchase
agreements.
4
For issuerrisk the metricis calculated basedon high-qualityliquid assets,debt securities,bonds and liquiditybuffer securities.
5
Climate-driven sensitiveexposure to physicalrisk for UBSAG
(standalone) includes loans and advances to UBS subsidiaries that are classified as sensitive based on its sector and country of riskin the absence of asset-level data. These subsidiaries transact with third parties and
the sensitivity of that exposure facing external counterparties isassessed and included in the banking products,traded products or issuer risk exposure metrics inthe UBS Group disclosure.
6
Carbon-related assets
are defined asconcentrations ofcredit exposureto assetstied tothe fournon-financial sectorgroups asdefined bythe TaskForce onClimate-related FinancialDisclosures (theTCFD), usingthe GlobalIndustry
Classification Standard. These four groups are: (i) energy; (ii) transportation; (iii) materials and buildings;and (iv) agriculture, food and forest products. Thismetric is agnostic of risk rating.
Risk management and control
UBS has integrated climaterisk considerations into itstraditional risk management andcontrol framework to ensure that
materialrisksaresystematicallyassessed,monitoredandmitigatedacrosstraditionalriskcategories.Thisintegration
supportsaconsistentandforward-lookingapproach,alignedwithregulatoryexpectationsandinternationalbest
practices.
Our approach isdesigned to supportthe ongoing managementof climate-related risksas they manifestacross traditional
risk categoriesand hasbeen builtin linewith principlesoutlined bythe BaselCommittee onBanking Supervision(the
BCBS)andtheTaskForceonClimate-relatedFinancialDisclosures(theTCFD).AsFINMAhasmandatedfinancial
institutions incategories 1and 2to implementmaterial climate-relatedfinancial risksin theirdue diligenceprocesses
from 1 January2026, atthe latest,(Circular 2026/1“Nature-related financial risks”,published byFINMA inDecember
2024), UBS hasembedded the managementof these riskswithin each traditionalrisk category. Thefollowing outlines
how UBS manages climate-related risks within each risk category.
Credit risk
Creditriskreferstopotentialcreditlossesthatmayarisefromclimate-relatedrisks(bothtransitionandphysical)
materializing due tothe impacts ofa changing climateand the globalshift toward alow-carbon economy.These risks
can affect the financial position of UBS’s counterparties,for example when such impacts impair a borrower’s capacityto
meet its financial obligations the likelihood of credit losses increases.
Atthetransactionlevel,proprietaryclimateriskratingmethodologiesandcompany-specificduediligencequestions
support theidentification andassessment ofclimate-related risksin creditapprovals andreviews. In2025, integration
efforts centeredon lendingto corporateclients. Targetedtraining equippedthe firstand secondlines ofdefense with
the tools and capabilities to incorporateclimate-related risk into their creditassessments. Another important priority was
embedding counterparty-level climaterisk rating modeloutputs into strategicIT systems, facilitatingseamless integration
within the credit approval workflow.
At the portfoliolevel, an enhancedapproach for concentrationmonitoring of collateralin climate-sensitive sectorshas
beenintroducedforGlobalWealthManagementandrelevantpartsoftheInvestmentBank.Wearecontinuingto
enhance and automate quarterly risk reporting to strengthen oversight and transparency
.
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Liquidity risk
Liquidityriskreferstothepotentialimpactonliquidityadequacydrivenbyrisksfromthetransitiontoalow-carbon
economy anda changingphysical climate.These risksrepresent anadditional driverof liquidityrisk andcan influence
our ability to raise funds, liquidate assets or respond tochanges in clients’ liquidity demands. Such impacts couldlead to
increased net cash outflows or depletion of our liquidity buffer.
Climate-relatedriskconsiderationshavebeenintegratedintoUBS’sliquiditymanagementframeworkbyintroducing
climate riskstress-testing andreporting, leveragingthe heatmapsand counterparty-levelclimate riskrating modelsto
assesspotentialimpacts.Theidentificationandintegrationofmaterialclimate-relatedrisksintoourliquidityrisk
management framework is an iterativeprocess, reflecting the evolving natureof climate science, regulatory expectations
and dataavailability. Asmethodologiesmature andindustry-wide data qualityimproves, UBS continuesto enhanceits
approachthroughadvancedanalyticsandscenario-basedinsights.Liquidityriskisfurthermitigatedthroughthe
maintenance of robust high-quality liquid asset buffers, comprehensive stress-testing under diverse scenarios and access
to diversified funding sources.
Business risk
Business riskmay beaffected byclimate-related impacts,which caninfluence performancethrough severalchannels.
Theseincludepotentialreductioninnetinterestincome,decreasesinassetvalueandrecurringfeeincome,and
heightenedmarketuncertaintythatcouldlowerdealflowandtransaction-basedfees.Suchfactorsunderscorethe
potential financial implications of climate change on our business model.
These risks are managed and mitigated through UBS’s Group-wide sustainabilityand impact strategy, which aligns long-
term commercial objectives with climate-relatedgoals and regulatory expectations. Thisstrategic alignment helps ensure
that UBS remainsresilient in theface of evolvingsustainability challenges andmarket dynamics. Finally,climate-related
risks, issuesand opportunitiesand theirimpact onbusiness andstrategy areincorporated intothe firm’sfinancial planning
process.
Non-financial risk
Non-financial risk,including reputationalrisk, canbe influencedby climate-relatedrisks. Thesemay stemfrom inadequate
or failed internalprocesses, systems orhuman error, or from externalfactors, such asphysical climate events,stakeholder
legal actionsrelatedto climateissues orconcerns aboutour responseto climatechange andthe transitionto alow-
carboneconomy.Suchrisks canimpact compliance,operational resilienceandfinancialcrimeprevention,potentially
resulting in significant non-financial consequences for UBS.
InlinewiththeBCBS’sprinciples,UBShasintegratedclimate-relatedrisksintothenon-financialriskframework.
Environmental,socialandgovernance(ESG)risks,includingclimate,areconsideredwithinUBS’sGroup-widenon-
financial risk identification model.UBS is continuing todevelop this framework inalignment with its commercialstrategy
and industry expectations,including the integrationof ESG risksinto the non-financialrisk taxonomy andrisk appetite
statements.Additionally,UBSmaintainsareputationalriskframeworkwithclearlydefinedrolesandresponsibilities,
escalationrequirementsandreviewandapprovalauthorities.Reputationalrisk(includingsustainability-related
reputational risks, such as greenwashing risk) is considered across all business activities, transactions and decisions.
›
Refer to “Integration of climate risk into the traditional risk management framework” in the UBS GroupSustainability Report
2025, available under “Annual reporting” at
ubs.com/investors
, for more information about the progress regardingour
sustainability and climate risk framework in 2025
Risk reporting and disclosure
Sustainability andclimate riskconsiderations areembedded inUBS’s quarterlyrisk reportingcycles, facilitatingtransparent
reporting across the firm, key legal entities and the business divisions. This process includes:
–
transactions referred to the Sustainability and Climate Risk unit;
–
climate-sensitivesectoractivitiesleveragingourproprietaryclimateriskheatmapsandratingmodelsthroughan
automated reporting process;
–
financed emissionsand emissionsintensities andtheir utilizationagainst definedrisk tolerancethresholds atthe Group,
business division and sector levels; and
–
regulatory monitoring on sustainability and climate risks.
UBS prepares annualexternal disclosures onsustainability and climaterisks, inalignment withregulatory requirements
including the recommendations of the TCFD.
›
Refer to the “Sustainability and climate risk policy framework” section of the Supplement to the UBS GroupSustainability Report
2025, available
at ubs.com/sustainability-reporting
for more information
1
UBS’s methodologies for assessing climate-driven transition and physical risks are emerging and may change over time. As the methodologies, tools and industry-wide data availability improve, we will further develop
our risk identification and measurement approaches.
2
The revised 2024 figures do not include the revision of legacy Credit Suisse exposure integrated into the targetUBS platform during 2025.
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Non-financial risk
Non-financial risk includes ourmain risk categories:compliance risk, financial crimerisk, operational risk, legalrisk and
reputationalrisk.Compliancerisk,financialcrimeriskandoperationalriskareindependentlyoverseenbyGroup
ComplianceandOperationalRiskControl(GCORC)andarecoveredinthissection.Legalandreputationalriskscan
materializeacrossthesethreeriskclusters,withlegalrisksoverseenbyGroupLegalandreputationalriskbycontrol
functions.
›
Refer to “Risk categories” in this section for more information about our main non-financial riskcategories
›
Refer to “Top and emergingrisks” in this section for more information about legal and reputational risk
Compliance risk
Wearecommittedtoachievingfairoutcomesforourclients,upholdingmarketintegrityandcultivatingthehighest
standards ofemployee conduct.To supportthese objectives,we maintaina Group-wideconduct riskframework designed
to promote consistent standards and foster a strong culture of accountability.
Wecontinuetoprioritizeareassuchassuitabilityrisk,marketconduct,productgovernance,cross-divisionalservice
offerings, quality of advice and pricetransparency. These remain key focus areas forUBS and the wider financial sector.
Cross-border risk (including the risk of unintendedpermanent establishment) remains an area ofregulatory attention for
global financialinstitutions, includinga focuson marketaccess, suchas third-countrymarket accessto theEuropean
Economic Area. We maintain a series of controls designed to address these risks.
Regulatory fragmentation related toenvironmental, social and governancetopics, and the elevatedrisk of greenwashing
arising from our service offering, disclosures and commitments remain key risks for 2026.
›
Refer to “Top and emergingrisks” in this section for more information
Financial crime risk
Financialcrime,includingmoneylaundering,terroristfinancing,sanctionsviolations,fraud,briberyandcorruption,
presentsamajorrisk,astechnologicalinnovationandgeopoliticaldevelopmentsincreasethecomplexityofdoing
business and heightened regulatory attention continues.
An effective financial crimeprevention program therefore remainsessential, and we continue tofocus on enhancements
to ourglobal anti-money-laundering,know-your-client andsanctions programs.Money launderingand financialfraud
techniques are becomingincreasingly sophisticated, andheightened geopolitical volatilitymakes the sanctionslandscape
more complex. Wecontinue to takeinto consideration therisks of illicitfinance proceeds andsanctions circumvention
typologies stemmingfrom geopoliticaldevelopments, politicalchanges inanumber ofcountries andevolving armed
conflicts.
›
Refer to “Top and emergingrisks” in this section for more information
Operational risk
There is an increased risk of cyber-relatedoperational disruption to business activities atour locations and those of third-
party suppliers due to the increasingly dynamic threat environment. This is intensified by current geopolitical factors and
evidencedbythecontinuinghighvolumesandincreasingsophisticationofcyberattacksagainstfinancialinstitutions
globally and on third-party service providers. A notable example of this is a previously disclosed data breach at Chain IQ,
one of ourthird-party suppliers. Ourincident review hasnot identified anyimpact on UBS’sclients or systems,but the
data breach included the exposure of certain non-sensitive UBS employee and vendor information.
We remain onheightened alert to respondto and mitigate elevatedcyber- and information-securitythreats and continue
to invest in improving our technologyinfrastructure and information-security governance to strengthen our prevention,
detectionandresponsecapabilitiesagainstattacks.Inaddition,weoperateaglobalframeworkdesignedtodrive
enhancements in operationalresilience across allbusiness divisions, andwe work withthe third-party serviceproviders
that areof criticalimportance to ouroperations toassess theiroperational resiliencein linewith ourstandards andto
mitigate any identified risks.
UBS manages cyber and other risks associated with the use of third parties (includingoutsourcing) through policies such
as the ThirdParty Risk Management(TPRM) Policy andthe Global Procurementand Vendor ManagementPolicy. These
aimatmanagingthird-partyriskbyappropriateriskcontrolsandindependentarrangements.UBSalsotransfersrisk
centrally, bymeans ofinsurance contracts,analyzing andsecuring insurancecoverage thatmeets theGroup’s global
needs and complies with local requirements.
Theincreasinginterestindata-drivenadvisoryprocessesandtheuseofformsofartificialintelligence(AI),suchas
generative AI andmachine learning, areintroducing new questionsrelated to thefairness of AIalgorithms, data life-cycle
management, dataethics, dataprivacy andsecurity, andrecords management.We haveestablished anAI framework
and policy including risk appetite metrics and enhanced controls to support the mitigation of these risks.
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Further progress has beenmade with client anddata migration, and thewind-down of legacy CreditSuisse businesses
and infrastructure. The risks relating to the operational complexityand the effective management of businesses in wind-
down and applicationdecommissioning continue tobe carefully monitored,in addition tothe delivery ofconsolidated
financial and regulatory reporting submissions.
›
Refer to “Top and emergingrisks” in this section for more information
Non-financial risk framework
WefollowaGroup-widenon-financialriskframeworkthatestablishesrequirementsforidentifying,controlling,
managing, assessing and mitigating compliance risk, financial crime riskand operational risk to maintain the safety and
soundness of the firmand to protect its financialposition and reputation. Theframework is built onthe following pillars:
–
classifying inherentrisks through19 non-financialrisk taxonomies,which definethe universeof non-financialrisks
that can arise as a consequence of our business activities and external factors;
–
performing controlassurance activities,includingself-assessing thedesignandoperatingeffectiveness ofcontrols,
first- and second-line-of-defense control reviews, and independent control testing;
–
definingthenon-financialriskappetite(includingrelevantindicatorsforeachnon-financialrisktaxonomy)and
assessing risk exposure against appetite;
–
assessing inherentand residualrisk throughrisk assessmentprocesses anddetermining whetheradditional remediation
plans are required to address identified deficiencies; and
–
reporting transparently and objectively on non-financial risks.
Divisional Presidentsare accountable forthe effectiveness ofnon-financial riskmanagement and forthe robustnessof
the front-to-backcontrol environmentwithin theirbusiness divisions,and legal-entity-responsibleexecutives arein charge
of non-financialrisk managementwithin theirlegal entities. Groupfunction heads areaccountable forsupporting the
divisional Presidents and legal-entity-responsible executives of our legal entities inthe discharge of this responsibility, by
ensuringcompleteness andeffectiveness ofthecontrol environmentandnon-financial riskmanagement withintheir
Group functions. Collectively, divisional Presidents, central Groupfunction heads and legal-entity-responsible executives
are in charge of implementing the non-financial risk framework.
GCORC owns the firm’snon-financial risk frameworkand is responsiblefor providing anindependent and objectiveview
of the adequacy ofnon-financial risk management acrossthe Group and ensuringthat compliance risk, financialcrime
risk andoperational riskare understood,owned andmanaged inaccordance withour riskappetite. Business-or function-
aligned Complianceand OperationalRisk Controlteams areembedded withinthe GCORCfunction, reportingto the
Group Chief Compliance and Operational Risk Control Officer, a member of the Group Executive Board (the GEB).
All functions withinUBS are requiredto periodically assessthe design andoperating effectiveness ofkey internalnon-
financial risk controls. Key controldeficiencies identified during the internalcontrol and risk assessment processesmust
be reported in thenon-financial risk inventory, andsustainable remediation mustbe defined and executed.These control
deficiencies areassigned toowners atsenior managementlevel andthe remediationprogress isreflected inthe respective
managers’annualperformancemeasurementandobjectives.Toassistwithprioritizingthemostmaterialcontrol
deficiencies andmeasuring aggregatedrisk exposure,irrespective oforigin, acommon ratingmethodology isapplied
across all three lines of defense, as well as by external audit.
UBSiscommittedtotransparentreportingofnon-financialrisks,providingclearandreliableinformationtosupport
decision-makingbyexecutivemanagementandtheboardofdirectors.KeyreportscovertheGroupandrisk-taking
business divisions andsignificant groupentities, with strongdata governancestandards ensuringhigh-quality, timely, and
comprehensive reporting.
The non-financial risk frameworkforms the common basisfor managing and assessingcompliance risk, financial crime
risk and operational risk, and there are additionalGCORC activities intended to demonstrate compliance withapplicable
laws, rulesand regulations.Furthermore, non-financialrisk mitigationis supportedby acomprehensive setof policies
and procedures(including riskculture, riskappetite andoutsourcing) thatare governedunder ourglobal governance
document framework.
›
Refer to “Risk appetite framework” in this section for more information about risk appetite and risk culture
›
Refer to “Operational risk” in this section for more information about outsourcing
Reputational risk management
Our reputationis ultimatelydefined byour abilityto adhereto thethree keys:our
Pillars
,
Principles
and
Behaviors
. In
accordance withour Codeof Conductand Ethics,it isthe responsibilityof theBoard ofDirectors (theBoD) andeach
employee to refrain from any conduct which may pose a risk to our reputation.
›
Refer to “Employees” in the “Our stakeholders” section of this report for more informationabout our Pillars, Principles and
Behaviors
›
Refer to the Code of Conduct and Ethics of UBS, available at
ubs.com/code
, for more information
All employees are responsible for carefully evaluatingthe risk to UBS’s own reputation that mayresult from any business
activities. Reputationalrisk isconsidered aspart ofstandard riskidentification andassessment processesgoverned by
relevant frameworks relating to new and existing clients, transactions, products andservices. The business divisions and
Group functions have primary responsibility for identifying,assessing and managing reputational risk.
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Cybersecurity and information security
Risk management and strategy
Cybersecurity andinformation-security (CIS)risk isthe riskthat amalicious internalor externalact, afailure of technology,
or human error materially compromises the confidentiality, integrity or availability of UBS’s data, systems or services.
CIS risk is a key operational risk for UBS and is managed within our enterprise risk management framework. We apply a
layered defensemodel, spanningprevention, detection,response andrecovery, supportedby ourglobal Cybersecurity
OperationsCenters,advancedtechnologyandindependentoversight.Ourapproachintegratesgovernance,risk
assessment, controls testing,incident management andcontinuous training ofour workforce (i.e.our internal employees
and external staff) to strengthen our ability to manage the assets of clients and of the firm.
›
Refer to “Risk governance” in this section for information about our risk governance framework
Governance
In linewith ouroverall non-financialrisk managementframework, wetake across-functional approachto addressing
CIS risk. Our risk control framework follows the three-lines-of-defense model.Group Technology establishes the policies
and procedures designedto safeguard our informationsystems and the information thosesystems collect and process.
Thebusinessdivisions,togetherwithGroupTechnology,arethenresponsibleforimplementingthosepoliciesand
procedures aspart ofthe firstline ofdefense. GCORCleads thesecond lineof defense,by conveningand consulting
with additionalcontrol functionsto provideindependent oversight,and challengesthe firstline’s CISframework and
implementation. As the third line of defense, Group InternalAudit conducts independent reviews and validates the first-
line and second-line processes and functions.
The Cyber and Information Security Committee
(the CIS-C)is theprimary decision-making bodywith oversightof and
accountability forthe Group-wideCIS program.The CIS-Cis jointlychaired bythe GroupChief OperatingOfficer (the
Group COO)and theGroup ChiefCompliance andOperational RiskControl Officer.The GroupChief InformationSecurity
Officer (the GroupCISO), who reportsto both theGroup COO andthe Group ChiefCompliance and OperationalRisk
ControlOfficer,isapermanentmemberoftheCIS-C.Thecommitteemeetsmonthlyandservesasaplatformfor
interactionacross thethree linesofdefense fortheidentification andeffectivegovernance ofCISstrategy,risks and
regulatory obligations.
The CIS-C governance structure helps streamline decision-making and, where necessary, escalation
to the BoD and the GEB.
CIS program
OurCISprogramisledbytheGroupCISO.TheCISprogramisdesignedtoprotectandmaintaintheintegrityand
availability ofour technologyinfrastructure andthe confidentialityand integrityof ourinformation. Itis alignedto an
industry standardframework established bythe CyberRisk Institute acrossseven functional domains:govern, identify,
protect, detect, respond, recoverand extend. This framework providesa comprehensive model for financialinstitutions
to assess, manage and mature their cyber-risk posture, connecting controls to compliance and operational needs.
Our Group CISO, seniormanagement within GroupTechnology and managementpersonnel overseeing theCIS program
all have substantialrelevant expertise inthe areas ofcybersecurity and informationsecurity. Our CISprogram includes,
but is not limited to, the following capabilities.
–
Threat intelligence:
We systematically gather threat information andmonitor threat alerts from external sources.Our
cyber-threatintelligenceteamanalyzessuchinformationandusesittoenhanceexistingdefensecapabilities,to
respondtoidentifiedthreatsandtoadjustourCISstrategywhereneeded.Theteam’sremitincludesproviding
research, analysis and advice on CIS risks associated with emerging technologies, including AI. This threat intelligence
capability was strengthenedin 2025 withthe formation ofa cross-function GeopoliticalRisk Intelligence Forum and
the introduction of an AI-led horizon scanning capability.
–
Preventativeanddetectioncontrols:
Weuselayeredfirm-widecontrolsthataredesignedtopreventanddetect
cyberattacks.Defensesincludesystemhardening,firewalls,intrusionpreventionanddetectionsystems,andother
controls.Externalnetworkconnectionsareidentifiedandrecordedinaninventory.Accessrightsaredefinedfor
information assets, and IT systems andapplications enforce authentication. We maintain accesscontrols and approval
processes designed to prevent unauthorized access.
–
Cyber-defense and incident response capabilities:
The Cybersecurity Operations Centersare responsible for providing
24/7 real-time monitoring, detection and responsecapabilities for cyberattacks and acting asthe primary interface for
cybersecurity events. Incidentsassessed as havingthe potential toadversely affect ourcritical operations aresubject
tomandatorymanagementnotification.Ifassessedaspotentiallysignificant,cybersecurityanddataincidentsare
managed under our crisis management framework.
–
Third-party risk: Vulnerabilities in the cyber-risk environment of third parties represent a particular threat to our CIS
program and our ability to maintain our business services. We follow a risk-based approach to assess and mitigate CIS
risks related to third parties. Third-party services and processes are monitored and checked on an ongoing basis, with
appropriate supervision from the CIS-C. This is a key component of our third-party risk management program,
notwithstanding the challenges we face in imposing the same levels of protection to the systems and data of third
parties that we rely on ourselves.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control129
–
Monitoringandtesting:
Effectiveincidentresponseandproblemmanagementprocessesarecomplementedby
vulnerability assessments,penetration andtesting engagementsbased onspecific threatscenarios thatsimulate tactics,
techniques and procedures that might be used againstour systems, as mandated by our policies. Thisincludes testing
byinternalandexternalredteams(simulatingattacksbypotentialadversaries).Actualsecurity-relatedeventsare
directlycorrelatedwiththreatscenariostomonitoranddetectpotentialthreats,suchasnetwork-intrusionand
malware-driven events.Our deployedsecurity measuresare designedwith theobjective ofisolating andcontaining
threats that are detected to allow for effective incident response and analysis.
–
Education andtraining:
All UBSstaff, includingour externalpersonnel, receiveappropriate CISawareness training,
commensurate with their roles and responsibilities.
CIS assessment framework
Our CISassessment frameworkincludes internal andexternal cybersecurity riskassessments forapplications andbank
processes alongside a structuredrisk assessment process ofthird-party service providers.These processes aredesigned,
along with our security capabilities, to support business objectives and priorities.
We conductassessments to evaluateand testour CISprogram andprovide guidanceon operatingand improvingthe
program, includingthe designand operationaleffectiveness ofthe securityand resiliencyof ourinformation systems.
Our assessments,along withour threatintelligence capabilities,are usedto assessand prioritizeprograms toimprove
our security, our incident responsecapabilities and our operational resilience.As the cyber-threat landscape evolvesat an
increasingpace,wecontinuouslyseektoenhanceourCIScontrolstomeetdevelopingthreats.Wehaveongoing
programs that are intended to increase our CIS maturity across various dimensions,including governance, identification,
protection and detection, as well as cyberattack response and recovery, and risk from third-party service providers.
We recognize that intoday’s world it isnot feasible to completelyeliminate the risk ofa future cyberattack, but,by using
arisk-basedapproach,weworktowardreducingthelikelihoodofasuccessfulattackandtowardmitigationofthe
potential business impact of such an attack.
The BoD, its Risk Committee andthe GEB receive regular updates andreports throughout the year from ourGroup COO
and our Group CISOon internal and externalCIS developments, threats and risks.In addition, on aquarterly basis, the
BoD receives reports on the performance of CIS risk appetite metrics, including metrics on vulnerabilities and third-party
CIS risks and incidents, and is notified promptlyif a BoD-level CIS risk limit is breached.The Risk Committee of the BoD
and the GEB also receive regular updates on CIS strategy, risks and alignment with regulatory requirements.
Operational resilience and incident response
Our business continuity and resilience framework is designed to limit the disruption a potential CIS event may cause to
our business activities. In accordance with the firm’s cyber-incident response framework, the CIS-C, including the incident
response team, tracks, documents, responds to and analyzes CIS threats and incidents, including those experienced by
the firm’s third-party service providers that may impact the firm. Additionally, we maintain established procedures for
responding to, and escalating, CIS and other system availability incidents. These are regularly practiced, including tabletop
exercises, at all levels of seniority.
Our Group Cyber Contingency Plan includes cyber event playbooks and escalation procedures designed to support a
structured assessment of potential incidents and timely escalation and reporting of incidents based on the assessed
potential impact. Incidents assessed to have the potential to adversely affect our critical operations are subject to
mandatory management notification. If assessed as potentially significant, cybersecurity and data incidents are managed
under our crisis management framework, which provides pre-established cross-functional task forces to manage the
incident, with escalation frameworks to inform and ensure oversight by the GEB and the BoD.
›
Refer to “Crisis management framework” in the “Regulation and supervision” section of this report formore information about
our crisis management framework
Non-financial risk capital measurement
The non-financial risk framework underpins thecalculation of regulatory capital for operationalrisk, which enables us to
quantify non-financial risks and defineeffective risk-mitigating management incentives aspart of the related operational
risk capital allocation approach to the business divisions.
The advanced measurementapproach (AMA), previouslyutilized to determineregulatory capital requirements fornon-
financial risks, was replacedby the standardized approachfor determining regulatory capital on1 January 2025, based
on the final Basel Committee on BankingSupervision (BCBS) Basel III standards and related FINMAguidance. In line with
the implementedstandards, wecontinue toupdate annuallythe relatedregulatory capital.Revenue dataand information
on non-financial risk events are sourced from our financial accounting and risk systems.
›
Refer to “Risk-weighted assets” in the “Capital management” section of this report for moreinformation about the capital
impacts from the adoption of the final Basel III standards on 1 January 2025
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control130
Model risk
Main sources of model risk
We rely on modelsto inform risk managementand control decisions, tomeasure risks or exposures,to value instruments
or positions, to conduct stress testing,to assess adequacy of capital, andto manage clients’ assets and ourown assets.
Models may also be used to measure and monitorcompliance with rules and regulations, for surveillance activities, and
to meet financial or regulatoryreporting requirements. Our artificialintelligence (AI)-based solutions mayrely on models,
and models may include functionalities defined as AI.
Model riskis definedas therisk ofadverse consequences(e.g. financiallosses orreputational damage)resulting from
incorrect ormisused models.AI-specific risksare managedin conjunctionwith otherrelevant riskframeworks,and specific
guidelines for the recognition of those risks apply.
Overview of measurement, monitoring and management techniques
Our modelgovernance frameworkestablishes requirementsfor identifying,measuring, monitoring,reporting, controlling
and mitigating modelrisk. All the modelsthat we use aresubject to governanceand controls throughouttheir life cycles,
with rigor, depthand frequencydetermined by themodel’s materiality andcomplexity. This isdesigned toensure that
risks arising from model use are identified, understood, managed, monitored,controlled and reported on both a model-
specific and an aggregated level. Before approval for use is granted, models are independently validated.
Onceapprovedforuse,amodelissubjecttoongoingmodelmonitoring,regularmodelconfirmationandperiodic
revalidation, ensuring that the model is only used if it continues to be fit for purpose.
Ourmodelriskgovernanceframeworkfollowsouroverarchingriskgovernanceframeworkalongthethreelinesof
defense, with:(i) the businessdivisions andGroup functions(including RiskControl, Financeand Compliance)responsible
forthedevelopment,maintenance andappropriateuseofthemodels;(ii) theModelRiskManagementandControl
function, headedby theChief ModelRisk Officer,responsible forindependent review,oversight andchallenge ofthe
models;and(iii) GroupInternalAudit,responsiblefortheassessmentofthedesignandoperatingeffectivenessand
sustainability of the related processes.
Model risk is included in the Group-wide risk appetite framework.
Modeloversightcommitteesandforumsensurethatmodelriskisoverseenatdifferentlevelsoftheorganization,
appropriate model risk management andcontrol actions are taken and,where necessary, escalated to thenext level. The
Group ModelGovernance Committeeis ourmost senioroversight andescalation bodyfor allmodels inscope ofour
model governance framework. It isco-chaired by the Group ChiefRisk Officer and the GroupCFO and is responsible for:
(i) reviewing and approving changesto the framework;(ii) approving the model riskappetite statement; (iii) overseeing
adherence to the UBS model risk governance framework; and (iv) monitoring model risk at a Group-wide level.
The legacyCredit Suissemodels wereeither retiredor integratedinto theUBS modelrisk managementframework in
2025.
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Risk, capital, liquidity and funding, and balance sheet | Capital management131
Capital management
Capital management objectives, planning and activities
Capital management objectives
Audited |
An adequate level of common equitytier 1 (CET1) capital and totalloss-absorbing capacity (TLAC) meeting both
internal assessment and regulatory requirements is a prerequisite for conducting our business activities.
We are therefore committed to maintaining a strong CET1 capital and TLAC position atall times, in line with our target
capitalratios,inordertoensurecompliancewithregulatorycapitalrequirementsandtosupportthegrowthofour
businesses.
Asof31 December2025,ourCET1capitalratiowas14.4%andourCET1leverageratio4.4%,eachabovethe
requirementsforSwisssystemicallyrelevantbanks(SRBs)andBaselCommitteeonBankingSupervision(BCBS)
requirementsandalsoaboveourcapitalguidance.Webelievethatourcapitalstrength,consistentwithourcapital
guidance,isasourceofconfidenceforourstakeholders,contributestooursoundcreditratingsandisoneofthe
foundations of our success.
InSwitzerland,theamendmentstotheCapitalAdequacyOrdinance(theCAO)thatincorporatethefinalBasel III
standards intoSwisslaw, includingthe newordinances containingtheimplementing provisionsfor therevised CAO,
entered into force on 1 January 2025.
›
Refer to the “Our strategy” and “Targets,capital guidance and ambitions” sections of this report for more information aboutour
capital and resource guidelines
›
Refer to “We may be unable to maintain our capital strength”in the “Risk factors” section of this report for more information
about capital-ratio-related risks
›
Refer to “Developments related to the implementation of the final Basel III standards”in the “Regulatory and legal
developments” section of this report for more information about the incorporation of finalBasel III standards
›
Refer to “Risk-weighted assets” and “Leverage ratio denominator” in this section for more informationabout the impacts
resulting from the adoption of the final Basel III standards on risk-weightedassets (RWA) and the leverage ratio denominator (the
LRD), respectively
Capital planning and activities
Audited |
We manage our balance sheet, RWA, LRD and TLACratio levels based on our regulatory requirements,within our
internal limits and targets, and our externally provided guidance.
Our strategic focus ison achieving an optimalattribution and use of financialresources between our business divisions
and Group functions, as well as between our legal entities, while remaining within the limits defined for theGroup and
allocated to the business divisions by the Board of Directors (the BoD).
Audited |
These resourceallocations arebased onour businessplans andearnings projections,which arereflected inour
capitalplans.TheequitydoubleleverageratioattheUBSGroup AGstandalonelevel(calculatedasinvestmentsin
subsidiaries divided bytotal equity) isa key considerationwhen planning fordistributions from UBS AGto UBS Group AG
and from UBS Group AG to its shareholders.
The annualstrategic planningprocess includesa capitalplanning componentthat iskey indefining ourtarget capital
levels andreturns. Thecapital planningcomponent isbased onan attributionof GroupRWA andLRD capacityto the
business divisions and Group Items.
Limits and targetsare established atthe Group andbusiness-division levels andare approved bythe BoD atleast annually.
Inthetarget-settingprocess,wetakeintoaccount,amongotherfactors,thecurrentandpotentialfutureTLAC
requirements, ouraggregate riskexposure intermsofthecombined stresstest(the CST)and theeffect ofexpected
accounting policy changes.
Monitoring is based on these internal limitsand targets and provides indications if anychanges are required. Any breach
of limits in place triggers a series of remediating actions.
Group Treasury plans for andmonitors consolidated TLAC informationon an ongoing basis, reflectingbusiness and legal
entityrequirements,aswellasregulatorydevelopmentsincapitalregulations.Inaddition,capitalplanningand
monitoringareperformedatthelegalentitylevelforoursignificantsubsidiariesandsub-groupsthataresubjectto
prudential supervision and must meet capital and other supervisory requirements.
›
Refer to “Capital and capital ratios of our significant regulated subsidiaries” in this section formore information
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management132
Swiss SRB total loss-absorbing capacity framework
The disclosures inthis section areprovided for UBSGroup AG on aconsolidated basis andfocus on keydevelopments
during the reporting period and information in accordance with the Basel III framework, as applicable to Swiss SRBs.
Additional regulatorydisclosures forUBS Group AGon aconsolidated basisare providedin our31 December 2025Pillar 3
Report.ThePillar 3Reportalsoincludesinformation relatingtooursignificantregulatedsubsidiaries andsub-groups
(UBS AG consolidated, UBS AG standalone,UBS Switzerland AG standalone,UBS Europe SE consolidated, UBS Americas
Holding LLC consolidatedand CreditSuisse Internationalstandalone) asof 31 December2025 andis availableunder
“Pillar 3 disclosures”at
ubs.com/investors
.
CapitalandotherregulatoryinformationforUBS AGconsolidatedinaccordancewiththeBasel IIIframework,as
applicabletoSwissSRBs,isprovidedintheUBS AGAnnualReport2025,availableunder“Annualreporting”at
ubs.com/investors
.
Regulatory framework
The Basel III framework came into effectin Switzerland on 1 January 2013 and is embeddedin the CAO. The CAO also
includes the too-big-to-fail (TBTF) provisions applicable to Swiss SRBs.
Under the Swiss SRB framework, going and gone concern requirements represent the Group’s TLAC requirement.RWA
calculations are based on the applicable rules and models approved by the Swiss Financial Market Supervisory Authority
(FINMA) for the respective legal entities.
Capital and other instruments contributing to our total loss-absorbing capacity
CET1capitalmainlyconsistsofsharecapital,sharepremiumandretainedearnings. InadditiontoCET1capital,the
following instruments contribute to our TLAC:
–
loss-absorbing additionaltier 1(AT1) capitalinstruments (hightrigger), includingDeferred ContingentCapital Plan
(DCCP) awards;
–
45% of unrealizedgains from financialassets measured atfair value throughother comprehensive income(such gains
can be recognized as tier 2 capital); and
–
TLAC-eligible senior unsecured debt instruments.
UndertheSwissSRBrules,goingconcerncapitalincludesCET1capitalandhigh-triggerloss-absorbingAT1capital
instruments.
Outstanding TLAC-eligible senior unsecured debt instruments areeligible to meet gone concern requirementsuntil one
year before maturity.A maximum of25% of thegone concern requirements canbe met withinstruments that havea
remaining maturity of between one andtwo years (i.e. are in thelast year of eligibility). However, once atleast 75% of
the minimum gone concern requirement has been met with instruments that have a remaining maturity of greater than
two years, all instruments thathave a remaining maturity ofbetween one and two years remaineligible to be included
in the total gone concern capital.
›
Refer to the “Compensation” section of this report for more information about the DCCP awards
›
Refer to “Bondholder information”, available at
ubs.com/investors
, for more information about the eligibility of capital and senior
unsecured debt instruments and key features and terms and conditions of capitalinstruments
Total loss-absorbing capacity and leverage ratio requirements
Going concern capital requirements
UndertheSwissSRBrequirements,totalgoingconcern minimumrequirementsforallSwissSRBsareacapitalratio
requirement of 12.86% of RWA and a leverage ratio requirement of 4.5%. In addition tothese minimum requirements,
an add-onreflecting thedegree ofsystemic importanceis applied,based onmarket shareand LRD.The applicablemarket
share andLRD add-on requirementsfor UBSwere bothunchanged at0.72% of RWAand 0.25% ofLRD, resultingin
add-ons of1.44% ofRWA and0.50% ofLRD. Asa resultof theacquisition ofthe CreditSuisse Groupin 2023,the
capital add-onsapplicable toUBS SRBsbased onmarket shareand LRDfor UBSGroup AGconsolidated willincrease
commensuratewiththeGroup’sincreasedmarketshareandhigherLRDaftertheacquisition.Basedontheexisting
regulations, wecurrently estimatethat thiswill addaround USD 6bnto theGroup’s tier 1capital requirement,when
fully phased in.
The phase-in of theincreased capital requirements commencedon 1 January 2026 andwill be completed by1 January
2030. Phase-inrequirements arecomposed ofthe existingadd-ons andthe phased-inincreases, resultingin phase-in
add-ons as of 1 January 2026 for RWA-based requirements of 0.86% for increased market shareand 0.79% for higher
LRD and add-ons for LRD-based requirements of 0.30% for increased market share and 0.28% for higher LRD.
TheSwisscountercyclicalcapitalbuffer,atamaximumlevelof2.5%onrisk-weightedpositionsthataredirectlyor
indirectly backed byresidential properties inSwitzerland, increased ourminimum CET1 capitalrequirement by 38 basis
points asof 31 December2025. Wealso continuedto applycountercyclical bufferrequirements introducedin otherBCBS
member jurisdictions,which resultedin anadditional bufferrequirement of11 basis pointsas of31 December 2025.
Overall,countercyclicalcapitalbufferscontributed49 basispointstoourminimumCET1capitalrequirementasof
31 December 2025.
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Risk, capital, liquidity and funding, and balance sheet | Capital management133
Effective 1 January 2025, a Pillar 2 capital add-on has been introduced for residual exposures (after collateral mitigation)
to hedge funds, private equity and family offices. This resulted in an increase of 20 basis points in the RWA-based going
concern capital requirement as of 31 December 2025.
Thetotalgoingconcerncapitalrequirementsapplicableare14.99%ofRWA(includingcountercyclicalbuffer
requirements andthe Pillar 2add-on) and5.00% of theLRD. Furthermore,of the totalgoing concerncapital requirement
of 14.99% of RWA, at least 10.63% mustbe met with CET1 capital, while a maximumof 4.36% can be met with high-
trigger loss-absorbing AT1 capital instruments.
Similarly, of the totalgoing concern leverageratio requirement of5.00%, at least 3.50%must be met withCET1 capital,
while a maximum of 1.50% can be met with high-trigger loss-absorbing AT1 capital instruments.
Gone concern loss-absorbing capacity requirements
As aninternationally activeSwiss SRB,UBS isalso subjectto goneconcern loss-absorbingcapacity requirements.The
gone concern requirements also include add-ons for market share and LRD.
Systemically importantbanks (SIBs),such asUBS, aresubject tobase goneconcern capitalrequirements equivalentto
75% of the total going concern requirements (excluding countercyclical buffer requirements and the Pillar 2 add-on). In
addition, FINMA has the authority to imposea surcharge of up to 25% ofthe total going concern capital requirements
(excludingcountercyclicalbufferrequirementsandthePillar 2add-on)basedonobstaclestoanSIB’sresolvability
identified in future resolvability assessments. Our total gone concern requirements remained substantially unchanged in
2025.
Ourgoneconcernrequirementscanbereducedwhenhigher-qualitycapitalinstruments(CET1capital,low-trigger
loss-absorbing AT1 or certain low-trigger tier 2 capital instruments) areused to meet gone concern requirements. As of
31 December 2025, UBS did not use any higher-quality capital instruments to fulfill gone concern requirements.
The goneconcern requirement afterthe potentialreduction forthe useof higher-quality capitalinstruments hasbeen
floored at 10.0% and 3.75% for the RWA- and LRD-based requirements, respectively.
Inthisreport,werefertotheRWA-basedgoneconcernrequirementsasgoneconcernloss-absorbingcapacity
requirements and the RWA-based gone concern ratio is referred to as the gone concern loss-absorbing capacity ratio.
The table below provides the RWA- and LRD-based requirements and information as of 31 December 2025.
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
14.99
1
73,955
5.00
1
81,122
Common equity tier 1 capital
10.63
2
52,448
3.50
3
56,785
of which: minimum capital
4.50
22,203
1.50
24,337
of which: buffer capital
5.50
27,137
2.00
32,449
of which: countercyclical buffer
0.49
2,433
Maximum additional tier 1 capital
4.36
2
21,507
1.50
24,337
of which: additional tier 1 capital
3.50
17,269
1.50
24,337
of which: additional tier 1 buffer capital
0.80
3,947
Eligible going concern capital
Total going concern capital
18.48
91,176
5.62
91,176
Common equity tier 1 capital
14.44
71,262
4.39
71,262
Total loss-absorbing additional tier 1 capital
4.04
19,914
1.23
19,914
of which: high-trigger loss-absorbing additional tier 1 capital
4.04
19,914
1.23
19,914
Required gone concern capital
Total gone concern loss-absorbing capacity
4,5,6
10.73
7
52,917
3.75
7
60,841
of which: base requirement including add-ons for market share and LRD
10.73
52,917
3.75
60,841
Eligible gone concern capital
Total gone concern loss-absorbing capacity
19.48
96,130
5.93
96,130
Total tier 2 capital
8
0.01
25
0.00
25
of which: non-Basel III-compliant tier 2 capital
0.00
0
0.00
0
TLAC-eligible senior unsecured debt
19.48
96,105
5.92
96,105
Total loss-absorbing capacity
Required total loss-absorbing capacity
25.71
126,872
8.75
141,963
Eligible total loss-absorbing capacity
37.96
187,307
11.54
187,307
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
493,397
Leverage ratio denominator
1,622,438
1 Includes applicable add-ons of 1.64% for risk-weightedassets (RWA) and 0.50% for leverageratio denominator (LRD), of which 20 basispoints for RWA reflect a Pillar 2 capitaladd-on for the residual exposure
(after collateral mitigation) tohedge funds, privateequity and family offices,effective 1 January 2025.2 Includes the Pillar 2add-on for the residual exposure(after collateral mitigation) tohedge funds, private
equity and family offices of 0.14% forCET1 capital and 0.06% for AT1capital, effective 1 January 2025. ForAT1 capital under Pillar 1requirements a maximum of 4.3% of AT1capital can be used to meet going
concern requirements; 4.36% includes the aforementioned Pillar2 capital add-on.3 Our CET1 leverage ratio requirement of3.50% consists of a 1.5% base requirement, a1.5% base buffer capital requirement,
a 0.25% LRD add-on requirement anda 0.25% market shareadd-on requirement based on ourSwiss credit business.4 A maximum of 25% of thegone concern requirements can bemet with instruments that
have a remaining maturity of between one and two years. Once at least 75% of the minimum gone concern requirementhas been met with instruments that have a remaining maturity of greater than two years, all
instruments that have a remaining maturity ofbetween one and two years remain eligibleto be included in the total goneconcern capital.5 Systemically important banks (SIBs) aresubject 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’sresolvability
be identified in future resolvability assessments.7 Includes applicable add-ons of 1.08% forRWA and 0.38% for LRD.8 Reflects an add-back of 45%of unrealized gains from financial assetsmeasured at fair
value through other comprehensive income. Such gains do not qualify as CET1 capital but 45% of thesegains can be recognized as tier 2 capital.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management134
Total loss-absorbing capacity
Swiss SRB going and gone concern information
USD m, except where indicated
31.12.25
31.12.24
Eligible going concern capital
Total going concern capital
91,176
87,739
Total tier 1 capital
91,176
87,739
Common equity tier 1 capital
71,262
71,367
Total loss-absorbing additional tier 1 capital
19,914
16,372
of which: high-trigger loss-absorbing additional tier 1 capital
19,914
15,126
of which: low-trigger loss-absorbing additional tier 1 capital
1,245
Eligible gone concern capital
Total gone concern loss-absorbing capacity
96,130
97,655
Total tier 2 capital
25
1
207
of which: non-Basel III-compliant tier 2 capital
0
207
TLAC-eligible senior unsecured debt
96,105
97,449
Total loss-absorbing capacity
Total loss-absorbing capacity
187,307
185,394
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
493,397
498,538
Leverage ratio denominator
1,622,438
1,519,477
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
18.5
17.6
of which: common equity tier 1 capital ratio
14.4
14.3
Gone concern loss-absorbing capacity ratio
19.5
19.6
Total loss-absorbing capacity ratio
38.0
37.2
Leverage ratios (%)
Going concern leverage ratio
5.6
5.8
of which: common equity tier 1 leverage ratio
4.4
4.7
Gone concern leverage ratio
5.9
6.4
Total loss-absorbing capacity leverage ratio
11.5
12.2
1 Reflects an add-back of45% of unrealized gains fromfinancial assets measured at fair valuethrough other comprehensive income. Such gains donot qualify as CET1 capital but45% of these gains canbe recognized
as tier 2 capital.
Audited |
Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital
USD m
31.12.25
31.12.24
Total equity under IFRS Accounting Standards
90,484
85,574
Equity attributable to non-controlling interests
(271)
(494)
Defined benefit plans, net of tax
(957)
(833)
Deferred tax assets recognized for tax loss carry-forwards
(2,434)
(2,288)
Deferred tax assets for unused tax credits
(827)
(688)
Deferred tax assets on temporary differences, excess over threshold
(1,242)
(803)
Goodwill, net of tax
1
(5,787)
(5,702)
Intangible assets, net of tax
(683)
(702)
Compensation-related components (not recognized in net profit)
(2,441)
(2,800)
Expected losses on advanced internal ratings-based portfolio less provisions
(876)
(568)
Unrealized (gains) / losses from cash flow hedges, net of tax
1,339
2,585
Own credit related to (gains) / losses on financial liabilities measured at fair value that existed at the balance sheet date, net of tax
1,660
1,178
Own credit related to (gains) / losses on derivative financial instruments that existed at the balance sheet date
(65)
(62)
Prudential valuation adjustments
(148)
(167)
Accruals for dividends to shareholders for 2024
(2,835)
Accruals for proposed dividends to shareholders for 2025
(3,449)
Capital reserve for expected future share repurchases in 2026
(3,000)
Other
(40)
(25)
Total common equity tier 1 capital
71,262
71,367
1 Includes goodwill related to significant investments in financial institutions of USD
34
m as of 31 December 2025 (31 December 2024: USD
19
m) presented on the balance sheet line Investments in associates.
Total loss-absorbing capacity and movement
Our TLAC increased by USD 1.9bn to USD 187.3bn as of 31 December 2025.
Going concern capital and movement
Audited|
Our CET1capitalmainlyconsistsof: sharecapital;share premium,whichprimarilyconsistsof additionalpaid-incapital
related toshares issued;and retainedearnings.A detailedreconciliationof equityunder IFRSAccountingStandardsto CET1
capital is provided inthe “Reconciliation of equity under IFRSAccounting Standards to Swiss SRBcommon equity tier 1
capital”table.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management135
Our CET1 capital decreasedby USD
0.1
bn to USD
71.3
bn as of 31 December2025, mainly as operatingprofit before tax
ofUSD
8.9
bnandforeigncurrencytranslationgainsofUSD
3.1
bnweremorethanoffsetbydividendaccrualsof
USD
3.4
bn, share repurchases of USD
3.0
bn under our 2024 and 2025 share repurchase programs, the recognition of a
new capital reserveof USD
3.0
bn for expectedfuture share repurchasesin 2026, currenttax expenses ofUSD
1.4
bn, and
negativeeffectsfromcompensation-andown-share-relatedcapitalcomponentsofUSD
0.7
bnandotheritemsof
USD
0.5
bn.
›
Refer to the “UBS shares” section of this report for more informationabout our share repurchase programs
Our loss-absorbingAT1 capitalincreased byUSD
3.5
bn toUSD
19.9
bn, mainlyreflecting newissuances ofAT1 capital
instrumentsofUSD
5.8
bnandpositiveimpactsfrominterestrateriskhedge,foreigncurrencytranslationandother
effects, partly offset by a call of USD
3.2
bn equivalent of AT1 capital instruments.
Following the approvalof a maximumamount of conversioncapital by UBSGroup AG’s shareholders atthe 2024 Annual
GeneralMeeting,AT1capitalinstrumentsissuedfromthebeginningofthefourthquarterof2023are,uponthe
occurrence of a trigger event or a viability event, subject to conversion into UBS Group AG ordinary shares rather than a
write-down. AT1 capital instruments issued prior to the fourth quarter of 2023 remain subject to a write-down.
›
Refer to “Conversion capital” in the “Corporate governance” section of this report for more informationabout conversion capital
Gone concern loss-absorbing capacity and movement
Audited |
Our total gone concern loss-absorbingcapacity decreased by USD
1.5
bn to USD
96.1
bn as of 31 December 2025
and largelyreflected USD
96.1
bn of TLAC-eligiblesenior unsecureddebt.
The decrease of USD 1.5bnmainly reflected the redemptionof USD 14.0bn equivalent ofTLAC-eligible senior unsecured
debtinstrumentsandUSD 5.8bn TLAC-eligiblesenior unsecureddebtinstruments thatwerepurchased inNovember
2025undertenderoffers,aswellasUSD 5.5bnequivalentofTLAC-eligibleseniorunsecureddebtinstrumentsand
USD 0.2bnoftier 2instrumentsceasingtobeeligibleasgoneconcerncapitalastheyenteredthefinalyearbefore
maturity.The aforementioneddecreases werelargely offsetby newissuances ofTLAC-eligible seniorunsecured debt
instruments totaling theequivalent of USD 17.8bnand positive impactsfrom interest raterisk hedge, foreigncurrency
translation and other effects.
Loss-absorbing capacity and leverage ratios
Our CET1 capital ratio increased to 14.4% from 14.3%, predominantly due to a USD 5.1bn decrease in RWA.
›
Refer to “Risk-weighted assets” in this section for more information about RWAmovements
OurCET1leverageratiodecreasedto4.4%from4.7%,duetoaUSD 103.0bnincreaseintheLRDandthe
aforementioned decrease in CET1 capital.
›
Refer to “Leverage ratio denominator” in this section for more information about LRD movements
Our goingconcern capitalratio increasedto 18.5%from 17.6%,reflecting aUSD 3.4bn increasein goingconcern capital
and the aforementioned decrease in RWA.
Ourgoing concernleverage ratiodecreased to5.6% from5.8%, reflectingthe aforementionedincrease intheLRD,
partly offset by the aforementioned increase in going concern capital.
Our goneconcern loss-absorbingcapacity ratiodecreased to19.5% from19.6%, reflectinga USD 1.5bndecrease in
gone concern loss-absorbing capacity, partly offset by the aforementioned decrease in RWA.
Our gone concern leverage ratio decreased to5.9% from 6.4%, driven by theaforementioned increase in the LRD and
the aforementioned decrease in gone concern loss-absorbing capacity.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management136
Swiss SRB total loss-absorbing capacity movement
USD m
Going concern capital
Swiss SRB
Common equity tier 1 capital as of 31.12.24
71,367
Operating profit / (loss) before tax
8,853
Current tax (expense) / benefit
(1,438)
Foreign currency translation effects, before tax
3,070
Accruals for proposed dividends to shareholders for 2025
(3,449)
Share repurchase program
(3,000)
Capital reserve for expected future share repurchases in 2026
(3,000)
Compensation- and own-share-related capital components
(687)
Other
(454)
Common equity tier 1 capital as of 31.12.25
71,262
Loss-absorbing additional tier 1 capital as of 31.12.24
16,372
Issuance of high-trigger loss-absorbing additional tier 1 capital
5,827
Call of high-trigger loss-absorbing additional tier 1 capital
(1,921)
Call of low-trigger loss-absorbing additional tier 1 capital
(1,250)
Interest rate risk hedge, foreign currency translation and other effects
887
Loss-absorbing additional tier 1 capital as of 31.12.25
19,914
Total going concern capital as of 31.12.24
87,739
Total going concern capital as of 31.12.25
91,176
Gone concern loss-absorbing capacity
Tier 2 capital as of 31.12.24
207
Debt no longer eligible as gone concern loss-absorbing capacity due to residual tenor falling to below one year
(203)
Interest rate risk hedge, foreign currency translation and other effects
21
Tier 2 capital as of 31.12.25
25
TLAC-eligible unsecured debt as of 31.12.24
97,449
Issuance of TLAC-eligible senior unsecured debt
17,816
Call of TLAC-eligible senior unsecured debt
1
(13,988)
Instruments repurchased under the tender offers
(5,824)
Debt no longer eligible as gone concern loss-absorbing capacity due to residual tenor falling to below one year
(5,525)
Interest rate risk hedge, foreign currency translation and other effects
6,177
TLAC-eligible unsecured debt as of 31.12.25
96,105
Total gone concern loss-absorbing capacity as of 31.12.24
97,655
Total gone concern loss-absorbing capacity as of 31.12.25
96,130
Total loss-absorbing capacity
Total loss-absorbing capacity as of 31.12.24
185,394
Total loss-absorbing capacity as of 31.12.25
187,307
1 Includes one debt instrument (ISIN US902613AU26) that ceased to be eligible as gone concern capital when we issued a noticeof redemption of the instrument in the fourth quarter of 2025.
Additional information
Active management of sensitivity to foreign exchange movements
GroupTreasuryis mandatedto minimizeadverse effectsfromchanges inforeigncurrencyrates onour CET1capital
and / orCET1 capitalratio. Asignificant portionof ourCET1 capitalandRWAisdenominated inSwissfrancs, euro,
pounds sterlingand othercurrencies. Inorder tohedge theCET1 capitalratio, CET1capital needsto haveforeign currency
exposure, leading to foreign currency rates sensitivity of CET1 capital.
Consequently, it is not possible to simultaneously fully hedge CET1 capital and the CET1 capital ratio. As the proportion
ofRWAdenominatedincurrenciesother thantheUSdollaroutweighsCET1capitalinsuchcurrencies, asignificant
appreciation of the USdollar against such currencies couldbenefit our capital ratios, whilea significant depreciation of
the US dollar against these currencies could adversely affect our capital ratios.
The Group Asset and Liability Committee, acommittee of the Group Executive Board, hasmandated Group Treasury to
adjust thecurrency mixof CET1capital, withinlimits setby theBoD, tobalance theeffect offoreign exchangemovements
on CET1 capitaland the CET1capital ratio. Limitsare in placefor the sensitivityof both CET1capital and theCET1 capital
ratio to an appreciation or depreciation of 10% in the value of the US dollar against other currencies.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management137
Sensitivity to currency movements
Risk-weighted assets
Weestimatethata10%depreciationoftheUSdollaragainstothercurrencieswouldhaveincreasedourRWAby
USD 23bn and our CET1 capital byUSD 2.7bn as of 31 December 2025(31 December 2024: USD 22bn and USD 2.4bn,
respectively) and decreased our CET1 capital ratio by 13 basis points(31 December 2024: 14 basis points). Conversely, a
10% appreciation of the US dollar against other currencies would have decreased our RWA by USD 21bn and our CET1
capital by USD 2.4bn (31 December 2024: USD 20bn and USD 2.2bn, respectively)and increased our CET1 capital ratio
by 13 basis points (31 December 2024: 14 basis points).
Leverage ratio denominator
Weestimatethata10%depreciationoftheUSdollaragainstothercurrencieswouldhaveincreasedourLRDby
USD 109bn as of 31December 2025 (31 December2024: USD 97bn) and decreasedour CET1 leverage ratioby 12 basis
points (31December 2024: 13 basispoints). Conversely,a 10%appreciation ofthe USdollar againstother currencies
would have decreased our LRD by USD 98bn(31 December 2024: USD 88bn) and increased our CET1leverage ratio by
12 basis points (31 December 2024: 14 basis points).
The aforementionedsensitivities donot considerforeign currencytranslation effectsrelated todefined benefitplans other
than those related to the currency translation of the net equity of foreign operations.
Capital and capital ratios of our significant regulated subsidiaries
UBSGroup AGisaholdingcompanyconductingsubstantiallyallofitsoperationsthroughUBS AGandsubsidiaries
thereof.UBS Group AG andUBS AG havecontributed asignificant portion oftheir respectivecapital to,and provided
substantialliquidityto,subsidiaries.Manyofthesesubsidiariesaresubjecttoregulationsrequiringcompliancewith
minimum capital,liquidity andsimilar requirements.Supervisory authoritiesgenerally havediscretion toimpose higher
requirements,ortootherwiselimittheactivitiesofsubsidiaries.Supervisoryauthoritiesalsomayrequireentitiesto
measure capital and leverage ratios on a stressed basis, and may limit the ability ofthe entity to engage in new activities
or take capital actions based on the results of those tests.
›
Refer to the “Significant regulated subsidiary and sub-group information”section of this report for more information about the
regulatory capital components and capital ratios of our significant regulated subsidiaries determinedunder the regulatory
framework of each subsidiary’s home jurisdiction
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
,
for more capital and
other regulatory information about our significant regulated subsidiaries andsub-groups
Joint liability of UBS AG and UBS Switzerland AG
In June2015, uponthe transferof thePersonal &Corporate Bankingand GlobalWealth Managementbusinesses booked
inSwitzerlandfromUBS AGtoUBSSwitzerland AG,UBS AGandUBSSwitzerland AGassumedjointliabilityfor
obligations transferredto UBSSwitzerland AG andexisting atUBS AG, respectively.Under certaincircumstances, the
SwissBankingActandFINMA’sBankingInsolvencyOrdinanceauthorizeFINMAtomodify,extinguishorconvertto
common equity liabilities of a bank in connection with a resolution or insolvency of such bank.
The joint liability amountshave declined asobligations matured, terminatedor were novated followingthe transfer date.
Asof31 December2025,theliabilityofUBSSwitzerland AGamountedtoCHF 1.5bn(USD 1.9bn),adecreaseof
CHF 0.9bn(USD 0.7bn)comparedwith31 December2024.TherespectiveliabilityofUBS AGhasbeensubstantially
extinguished.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management138
Risk-weighted assets
RWA development in 2025
During 2025, RWA decreased by USD 5.1bn to USD 493.4bn, driven by aUSD 16.3bn decrease resulting from asset size
and othermovements,an USD 8.6bndecrease asa resultof theimplementation ofthe finalBasel III standardsand a
decrease ofUSD 4.2bn resultingfrom modelupdates andother methodologychanges. Thesedecreases werepartly offset
by a USD 24.0bn increase from currency effects.
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
about RWA movements and definitions of RWAmovement key drivers
Movement in risk-weighted assets, by key driver
USD bn
RWA as of
31.12.24
Currency
effects
Impact from the
implementation
of final Basel III
standards
Model updates
and other
methodology
changes
Asset size and
other
1
RWA as of
31.12.25
Credit and counterparty credit risk
2
292.2
22.4
(6.1)
(4.2)
(4.3)
299.9
Non-counterparty-related risk
3
33.7
1.6
(1.1)
34.3
Market risk
27.2
6.5
(9.9)
23.8
Operational risk
145.4
(9.0)
(1.0)
135.4
Total
498.5
24.0
(8.6)
(4.2)
(16.3)
493.4
1 Includes the Pillar3 categories “Assetsize”, “Credit qualityof counterparties”, “Acquisitionsand disposals” and“Other”. Formore information, referto the 31 December2025 Pillar 3Report, available under
“Pillar 3 disclosures” at ubs.com/investors.2 Includes settlement risk, credit valuation adjustments, equity and investments in funds exposures in the banking book, and securitization exposures inthe banking book.
3 Non-counterparty-related risk includes deferred tax assets recognized for temporary differences,property, equipment, software and other items.
Credit and counterparty credit risk
Credit and counterparty credit risk RWAincreased by USD 7.8bn to USD 299.9bn as of31 December 2025, driven by a
USD 22.4bn increase from currency effects,partly offset by aUSD 6.1bn decrease due tothe implementation ofthe final
Basel III standards,a decrease of USD 4.3bn from asset size and other movements, and a USD 4.2bn decrease reflecting
model updates and other methodology changes.
In Switzerland,the amendmentsto the CAOthat incorporatethe finalBasel III standardsinto Swisslaw enteredinto force
on 1 January 2025. The main changes relate to restrictions on using internal ratings-based (IRB) models for exposures to
financial institutions and large corporate clients, a revised standardized approachwith more granular risk weights, and a
revised credit valuation adjustment framework.
The aforementioned impactfrom the implementationof the finalBasel III standards oncredit and counterpartycredit risk
RWA ofUSD 6.1bn wasprimarily dueto theremoval of a1.06 multiplieron riskweights calculated usingIRB models,
which more than offset other changes, including the establishing of floors and the introduction of regulatory-mandated
loss given default parameters to financial institutions and large corporate clients.
Asset size and other movements,by business division and Group Items
–
Non-core and Legacy RWA decreasedby USD 8.4bn, primarily driven byour actions to actively unwindthe portfolio,
in addition to the natural roll-off.
–
Group Items RWA decreased byUSD 1.0bn, primarily due to higherallocation of high-quality liquid assets(HQLA) to
the business divisions.
–
Asset Management RWA decreased by USD 0.1bn.
–
Personal & Corporate Banking RWA increased by USD 3.3bn, primarily due to higher HQLA and higher RWA on loans
and loan commitments.
–
GlobalWealthManagementRWAincreasedbyUSD 1.3bn,mainlyreflectinghigherHQLAandincreasesinequity
holdings, partly offset by lower RWA from loans and loan commitments.
–
Investment BankRWA increasedby USD 0.6bn,mainly dueto increasesin loansand loancommitments and higher
RWAonsecuritiesfinancingtransactions,partlyoffsetbylowerRWAonderivativesreflectingmarket-driven
movements, roll-offs and risk mitigation.
Model updates andother methodologychanges not relatedto the implementationof the finalBasel III standards resulted
in aRWA decreaseof USD4.2bn, mainlyreflecting lowerRWA onLombard lending,improvements inthe modelfor
concentrated equitylending, theestablishment ofa newmodel forprivate equitysubscription loansin GlobalWealth
Management and an update in lossgiven default models for cash andbalances at central banks. Thesedecreases were
partly offset by increases in RWA following the migration of exposures from Credit Suisse models.
›
Refer to “Credit risk” in the “Risk management and control”section of this report for more information about credit and
counterparty credit risk developments
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
about credit and counterparty credit risk developments
Market risk
Market riskRWAdecreased byUSD 3.4bn toUSD 23.8bn asof 31 December2025, primarilydriven bya decreaseof
USD 9.9bnduetoassetsizeandothermovementsintheInvestmentBank’s GlobalMarketsbusinessandde-risking
within Non-coreand Legacy, partly offsetby aUSD 6.5bn increasedue tothe implementationof theFundamental Review
of the Trading Book (the FRTB) framework.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management139
The finalBasel III standardson theminimum capitalrequirements formarket riskfrom theBCBS, knownas theFRTB
framework, entered into force inSwitzerland on 1 January 2025. UBScurrently applies the standardized approachof the
FRTB framework, in whichminimum market risk capital requirementsare computed on thebasis 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 SBMand theDRC additionally attractan RRAOcharge. Thenew FRTB frameworkreplaced the value-at-risk(VaR)-
and stressed VaR-based Basel 2.5 market risk framework.
›
Refer to “Market risk” in the “Risk management and control” section of this report for moreinformation about market risk
developments
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
about market risk developments
Operational risk
Operational risk RWA decreasedby USD 10.0bnto USD 135.4bn asof 31 December 2025,primarily driven bya decrease
of USD 9.0bn as a resultof the implementation of thestandardized approach for determiningregulatory capital, and a
decrease of USD 1.0bn from asset size and other movements. The allocation methodology for operational risk RWA has
been adjustedto betterreflect thecontributions ofeach divisionto theRWA calculation underthe finalBasel III standards.
Under therevised approach,allocations arebased onhistorical lossesand revenuesin approximateproportion tothe
weight that these factors have in the standardized approach calculation.
The finalBasel III standards onthe operationalrisk capital requirementsentered into forcein Switzerland on1 January
2025. The standardized approachis based on the businessindicator component, which isderived from average revenue-
based indicatorsover aperiod ofthree years,as wellas theinternal lossmultiplier, whichis derivedfrom averagehistorical
operational losses over a period of ten years. The new framework replaced the advanced measurement approach.
›
Refer to “Non-financial risk capital measurement”in the “Risk management and control”section of this report for more
information about the standardized approach,which has been used to measure Group operational risk exposureand calculate
operational risk regulatory capital
Outlook
We expectmodel updatesand methodologychanges willincrease creditand counterpartycredit riskRWA byaround
USD 2bn during2026. Theextent andtiming ofRWA changesmay varyas modelupdates arecompleted andreceive
regulatory approval, along with changes in the composition of the relevant portfolios.
Risk-weighted assets, by business division and Group Items
USD bn
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group
Items
Total
RWA
31.12.25
Credit and counterparty credit risk
1
99.3
130.3
6.9
55.1
3.8
4.6
299.9
Non-counterparty-related risk
2
7.2
2.9
0.8
4.6
0.2
18.6
34.3
Market risk
0.5
0.0
22.4
0.9
0.0
23.8
Operational risk
59.4
17.2
6.1
25.4
24.0
3.3
135.4
Total
166.4
150.4
13.8
107.4
28.8
26.5
493.4
31.12.24
Credit and counterparty credit risk
1
93.6
120.6
7.2
56.2
10.7
3.9
292.2
Non-counterparty-related risk
2
6.4
2.9
0.7
3.6
1.5
18.7
33.7
Market risk
2.7
0.2
0.0
22.1
2.2
0.0
27.2
Operational risk
63.2
19.3
7.2
24.4
27.1
4.2
145.4
Total
165.8
143.0
15.1
106.4
41.4
26.8
498.5
31.12.25 vs 31.12.24
Credit and counterparty credit risk
1
5.7
9.8
(0.3)
(1.2)
(6.9)
0.6
7.8
Non-counterparty-related risk
2
0.8
0.0
0.1
1.0
(1.3)
(0.1)
0.5
Market risk
(2.1)
(0.3)
0.0
0.3
(1.3)
0.0
(3.4)
Operational risk
(3.8)
(2.1)
(1.1)
1.0
(3.1)
(0.8)
(10.0)
Total
0.6
7.4
(1.3)
1.0
(12.6)
(0.3)
(5.1)
1 Includes settlement risk, credit valuation adjustments,equity and investments in funds exposures in thebanking book, and securitization exposures in the bankingbook.2 Non-counterparty-related risk includes
deferred tax assets recognizedfor temporary differences (31 December2025: USD 18.1bn; 31 December 2024:USD 18.1bn), as well asproperty, equipment, software and other items(31 December 2025: USD 16.1bn;
31 December 2024: USD 15.7bn).
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management140
Leverage ratio denominator
LRD development in 2025
During2025,theLRDincreasedbyUSD 103.0bntoUSD 1,622.4bn,mainlydrivenbyaUSD 110.2bnincreasefrom
currency effects and a USD 28.8bn increase asa result of the implementation ofthe final Basel III standards, partly offset
by a USD 36.1bn decrease from asset size and other movements.
Movement in leverage ratio denominator, by key driver
USD bn
LRD as of
31.12.24
Currency
effects
Impact from the
implementation
of final Basel III
standards
Asset size and
other
LRD as of
31.12.25
On-balance sheet exposures (excluding derivatives and securities financing transactions)
1
1,140.6
92.5
(1.9)
26.8
1,258.1
Derivative exposures
132.0
5.0
37.5
(23.2)
151.2
Securities financing transaction exposures
177.1
8.0
(0.2)
(36.7)
148.2
Off-balance sheet items
1
69.8
4.7
(6.5)
(3.0)
64.9
Total exposures
1,519.5
110.2
28.8
(36.1)
1,622.4
1 From the first quarter of 2025 onward, wehave included the assets deducted from tier1 capital items in On-balance sheet exposuresand Off-balance sheet items. Comparative-period information has been amended
to reflectthe disclosureformat changesfor thenew finalBasel IIIstandards. Referto theUBS GroupAnnual Report2024, availableunder “Annualreporting” atubs.com/investors,for moreinformation about
previously published disclosure.
TheimpactfromtheimplementationofthefinalBasel IIIstandardsontheLRDwasanincreaseofUSD 28.8bn.In
Switzerland, the amendments to the CAO that incorporate the final Basel III standards into Swiss law entered intoforce
on 1 January2025. Theincrease wasmainly inderivatives, asa resultof thestandardized approachfor counterparty
credit risk, including the application of theprescribed 1.4× multiplier to address risks,for example wrong-way risk, that
are notdirectly capturedin theframework. This waspartly offsetby decreasesin off-balancesheet positions resulting
from achange tocredit conversionfactors andon-balance sheetexposures dueto analignment ofthe consolidation
scope between RWA and LRD.
Asset size and other movements resulted in a USD 36.1bn decrease in the LRD.
On-balance sheetexposures (excludingderivatives and securitiesfinancing transactions)increased by USD 26.8bn,mainly
due toincreases inhigh-quality liquidasset portfoliosecurities, increasesin lendingassets drivenby positivenet new
loans, mainly in GlobalWealth Management,and higher trading assets reflectinghigher inventory held tohedge client
positions, as well as market-driven increases in theInvestment Bank. These increases were partly offset bya decrease in
cash and balances at central banks.
Derivatives exposures decreased by USD 23.2bn, mainly due to roll-offs of foreign currency contracts and higher netting
in the Investment Bank. There was also a decrease from unwinding activities in Non-core and Legacy.
SecuritiesfinancingtransactionexposuresdecreasedbyUSD 36.7bn,mainlyreflectingroll-offsofcashreinvestment
trades inGroup Treasury,partly offsetby anincrease inbrokerage receivablesmainly reflectinghigherlevels ofclient
activity in the Investment Bank.
Off-balance sheet items exposures decreased by USD 3.0bn, mainly driven by a decrease in commitments.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for moreinformation about balance sheet and off-
balance sheet movements
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Capital management141
Leverage ratio denominator, by business division and Group Items
USD bn
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
31.12.25
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
1
514.0
441.8
5.0
272.1
12.3
12.9
1,258.1
Derivative exposures
26.7
6.1
0.0
115.2
3.0
0.1
151.2
Securities financing transaction exposures
49.8
36.3
0.1
58.7
3.5
0.0
148.2
Off-balance sheet items
1
17.6
29.9
0.1
16.8
0.3
0.3
64.9
Total exposures
608.0
514.0
5.2
462.9
19.1
13.3
1,622.4
31.12.24
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
1
474.7
397.5
4.2
211.5
39.9
12.8
1,140.6
Derivative exposures
11.9
5.6
0.0
104.6
9.5
0.4
132.0
Securities financing transaction exposures
71.6
44.8
0.1
59.2
2.3
(0.9)
177.1
Off-balance sheet items
1
18.4
30.9
0.1
18.2
1.8
0.2
69.8
Total exposures
576.6
478.9
4.5
393.5
53.5
12.5
1,519.5
31.12.25 vs 31.12.24
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
39.3
44.2
0.8
60.7
(27.6)
0.1
117.5
Derivative exposures
14.9
0.5
0.0
10.7
(6.5)
(0.3)
19.2
Securities financing transaction exposures
(21.8)
(8.5)
0.0
(0.6)
1.2
0.9
(28.9)
Off-balance sheet items
(0.9)
(1.1)
(0.1)
(1.4)
(1.5)
0.1
(4.8)
Total exposures
31.5
35.1
0.7
69.4
(34.4)
0.7
103.0
1 From the first quarter of 2025 onward, wehave included the assets deducted from tier1 capital items in On-balance sheet exposuresand Off-balance sheet items. Comparative-period information has been amended
to reflectthe disclosureformat changesfor thenew finalBasel IIIstandards. Referto theUBS GroupAnnual Report2024, availableunder “Annualreporting” atubs.com/investors,for moreinformation about
previously published disclosure.
Equity attribution
Underourequityattributionframework,tangibleequityisattributedbasedonequallyweightedaverageRWAand
average LRD, which both include resource allocations from our Group functions to the business divisions. Average RWA
and LRD are converted to CET1 capital equivalents using target capital ratios. If the attributed tangible equity calculated
under the weighted-driver approach is less than theCET1 capital equivalent of risk-based capital (RBC) for anybusiness
division, the CET1 capital equivalent of RBC is used as afloor for that business division. In 2025 and 2024, the floorwas
applicable for Asset Management and Non-core and Legacy.
In addition to tangible equity, we allocate equity to the business divisions to support goodwill and intangible assets. We
also allocate tothe business divisionsattributed equity relatedto CET1capital deduction itemsthat are attributableto
divisional activities, suchas compensation-related componentsor expected losseson the advancedinternal ratings-based
portfolio less provisions.We attribute allremaining capital deductionitems to GroupItems. These primarilyinclude equity
related to deferred tax assets, accruals for shareholder returns, and unrealized gains / losses from cash flow hedges.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for moreinformation about movements in equity
attributable to shareholders
Average attributed equity
For the year ended
USD bn
31.12.25
31.12.24
Global Wealth Management
34.2
33.3
Personal & Corporate Banking
21.4
21.6
Asset Management
2.5
2.7
Investment Bank
18.4
17.1
Non-core and Legacy
5.4
9.5
Group Items
1
6.7
1.1
Average equity attributed to business divisions and Group Items
88.5
85.2
1 Includes average attributed equity related to capital deduction items for deferred tax assets, accrualsfor shareholder returns and unrealized gains / losses from cash flow hedges.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Liquidity and funding management142
Liquidity and funding management
Wemanage thestructural risksof ourbalance sheet,including interestrate risk,structural foreignexchange riskand
collateralrisk,aswellasliquidityandfundingrisk.Thissectionprovidesinformationaboutliquidityandfunding
governance, stress testing, management, contingency planning, and regulatory requirements.The balances disclosed in
thissectionrepresentyear-endpositions,unlessindicatedotherwise.Intra-periodbalancesfluctuateintheordinary
course of business and may differ from year-end positions.
Strategy, objectives and governance
Audited |
Our management of liquidity andfunding ensures that our businessfranchises are protected and that ourinternal
and regulatory liquidity and funding requirementsare prudently managed. We measureliquidity and funding risk using
internalandregulatorymodelsandmetrics.Wedefineandimplementinternalstresstestingacrossdifferenttime
horizons, scenariosand currenciesto ensurewe havesufficient liquidityand funding,while remainingcompliant with
regulatoryliquidityand fundingrequirements.Ourliquidity andfunding strategyis proposedby GroupTreasuryand
approved by the GroupAsset and Liability Committee (theGroup ALCO), which isa committee of the GroupExecutive
Board (the GEB) and is overseen by the Board of Directors (the BoD).
Liquidity and fundinglimits and otherconstraints (including early-warningindicators) are setat Group and,where
appropriate, atlegal entityand business-divisionlevels. Keylimits (whichare underthe authorityof theBoD) and
constraints linked to these limits are reviewed and reconfirmed at least once a year by the BoD, the GEB, the Group
ALCO,theGroupChiefFinancialOfficer,theGroupChiefRiskOfficerandtheGroupTreasurer,takinginto
consideration the Group’s business strategy and risk appetite. Treasury Risk Control provides independent oversight
over liquidityand fundingrisk, includingthe settingof keyinternal limitsand early-warningindicators associated
with these limits.
›
Refer to the “Corporate governance” and “Risk management and control” sections of this reportfor more information
GroupTreasurymonitorsandoverseestheimplementationandexecutionofourliquidityandfundingstrategyand
manages liquidity and funding risk within thelimits and other relevant constraints, thereby adheringto the internal risk
appetite and regulatory requirements. Group Treasury manages our stock of high-quality liquid assets (HQLA), including
ouroperationalcashposition,andourshort-andlong-termdebtissuances.Tosafeguardourliquidityandfunding
position in timesof stress, GroupTreasury maintains aContingency Funding Planand contributes toplans for recovery
and resolution,defining crisismanagement processesthroughout thecrisis continuum.Group Treasuryreports onthe
Group’s liquidity and fundingstatus and position, atleast monthly, to theGroup ALCO and theRisk Committee of the
BoD, with more frequent reporting in times of stress.
Liquidity and funding stress testing
Audited |
Our liquidity and fundingrisk appetite objective isto ensure that the firmhas sufficient liquidity tosurvive a severe
three-monthidiosyncratic andmarket-wide liquiditystressevent andto ensurethat thefirm hassufficientlong-term
funding tomaintain franchiseassets ata constantlevel understressed marketconditions forup toone year,in both
cases without government support and allowing for discrete management actions.
Group Treasurymaintains adiversified, high-qualitypool of unencumberedliquid assetsunder Treasury control.The liquid
asset portfolio is managed dynamically, in orderto remain at all times within the internalrisk appetite and other relevant
Group, UBS AG and subsidiary liquidity and funding requirements.
Ourliquidity andfunding stresstesting coversthree mainstress scenarios:acombined (i.e.market andidiosyncratic)
scenario, an idiosyncratic scenario and a structural market-wide scenario.
›
Refer to “Risk measurement” in the “Risk management and control” section of this reportfor more information about stress
testing
Combined (market and idiosyncratic) scenario
Inthisscenario,UBSfacestheconsequencesofbothaseverelydeterioratedmacroeconomicandfinancialmarket
environment anda UBS-specificevent, resultingin anacute lossof liquidityover arelatively shortperiod oftime. This
scenario representssevereyet plausibleevents encompassingboth market-wideand idiosyncraticelements, inwhich,
however, franchise client relationships arematerially maintained.
UBS ensures thatits liquidity riskappetite objective ismet by maintaininga cumulative liquiditysurplus on eachday in
the three-month stresshorizon. The liquiditygap is assessedby modeling thestressed liquidity valueof the liquiditybuffer
and stressed liquidity inflows and outflows under the scenario.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Liquidity and funding management143
Idiosyncratic scenario
In this three-monthstress scenario, UBSis subject toa significant and unforeseenevent specific to UBS.This materially
damages the market’s perception ofthe reputation and creditworthinessof UBS. The event occurs inotherwise benign
macroeconomic and financialmarket conditions. UBS’sdifficulties throughout the scenarioare limited to UBSand do not
trigger material market moves.
Structural market-wide scenario
In this scenario, UBS is subject to a significant deterioration of macroeconomic and financialmarket conditions globally.
Macroeconomic shocksresult indeteriorated financial marketconditions over thescenario horizon ofone year.UBS is
assumed to be affected equally relative to other global financial institutions.
UBS ensures thatits funding risk appetiteobjective is metby maintaining a positivecumulative behavioral liquidity gap
across the3-month, 6-month,9-month and12-month tenors.The liquiditygap isassessed bymodeling thestressed
liquidity value of the liquidity buffer and the stressed liquidity inflows and outflows under the scenario.
Management of liquidity and funding risk
Audited|
Group Treasurymonitors theGroup’s fundingposition, includingconcentration risk,aiming toensure thatthe
Group maintainsa well-balancedand diversifiedliability structure. GroupTreasury also looks to createthe optimalliability
structure to financeour businesses ina reliable andcost-efficient manner. Our funding activitiesare planned byanalyzing
the overall liquidity and funding requirements, taking into account the amount of stable funding that would be needed
to support ongoing business activities through periods of difficult market conditions.
The funding strategy of UBS Groupis set annually in the FundingPlan and is reviewed on anongoing basis. The Funding
Plan is developed by Group Treasury and approved by the Group ALCO.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for moreinformation about the development of our
short- and long-term debt during 2025
Global Wealth Management andPersonal & CorporateBanking provide significant,cost-efficient and stablesources of
funding.TheseincludedepositsanddebtissuedthroughtheSwisscentralmortgageinstitution(Pfandbriefbank
schweizerischer HypothekarinstituteAG) and UBS’scovered bondprograms, whichuse a portionof ourportfolio ofSwiss
residential mortgagesas collateral togenerate long-termfunding. In addition,we have severalshort-, medium- andlong-
term funding programsunder which weissue senior unsecureddebt and structurednotes, as wellas short-term debt.
These programs enable UBS tosource funding from institutional and privateinvestors who are active inEurope, the US
and Asia Pacific. Collectively, thesebroad product offerings and fundingsources, together with the globalscope of our
business activities, support our funding stability.
Internal funding and funds transfer pricing
We use ourglobal liquidityand funding frameworkto governthe liquidity managementof our branchesand subsidiaries.
Group Treasurymeets internal demands for funding by channeling funds from entities generating surplus cash to those
in need of financing, considering existing transfer restrictions.
Funding costsand benefits areallocated to ourbusiness divisionsaccording to ourliquidity andfunding risk management
framework. Our internal funds transfer pricing system aims to balance funding supply and demand.
Credit ratings
Credit ratings canaffect the costand availability offunding, especially fromwholesale unsecured sources.UBS’s credit
ratings can alsoinfluence the performanceof some ofits businesses andthe levels ofclient and counterpartyconfidence.
Rating agencies takeinto account arange of factorswhen assessing creditworthinessand setting creditratings. These
includethefirm’sstrategyandbusinessmodel,itsfranchisevalueandcompetitiveposition,stabilityandqualityof
earnings, capital adequacy, risk profile and management, liquidity management,diversification of funding sources, asset
quality, and corporate governance. Credit ratings reflect theopinions of the ratingagencies and can changeat any time.
In evaluatingour liquidityand fundingrequirements, weconsider thepotential effectof areduction inour long-term
credit ratings anda corresponding reductionin short-term ratings.If our creditratings were tobe downgraded, rating
trigger clauses could result in an immediate cash settlement or the need to deliver additional collateral to counterparties
from contractual obligations relatedto over-the-counter (OTC)derivative positions and otherobligations. Based on our
credit ratings as of 31 December 2025, in the event of a one-notch reduction inour long-term credit ratings, we would
have been requiredto provide USD 0.3bnin cash orother collateral. Inthe event ofa two-notch reduction,it would have
beenUSD 0.6bnandforathree-notchdowngrade,USD 0.9bn.Inthetwo-andthree-notchscenariosthecollateral
requirements predominantly relate to OTC derivative positions.
During 2025,rating agenciestook thefollowing actions regardingUBS GroupAG’s ratings:Moody’s InvestorsService
Limited (Moody’s) upgradedits long-term seniorunsecured debt ratingto A2 fromA3 and changedthe outlook tostable
from developing. FitchRatings Ireland Limited(Fitch) changed theoutlook on theLong-Term Issuer DefaultRating of UBS
Group AG toPositive from Stable.Additionally, Moody’s changed theoutlook on thelong-term senior unsecured debt
ratings ofUBS AG fromnegative tostable, andFitch changedthe Outlookon Long-TermIssuer DefaultRatings ofUBS AG
to Positive from Stable.
›
Refer to “Liquidity and funding management are critical to UBS’songoing performance” in the “Risk factors” section of this report
for more information
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Liquidity and funding management144
Contingency Funding Plan
Audited |
We maintain ourContingency Funding Plan in preparation andas anaction plan, aiming toensure wemaintain
sufficient liquidityto meet payment obligationsin a liquidity and fundingstress scenario. Theplan specifies theprocesses,
tools and responsibilities that wehave available toeffectively manage liquidity and funding throughthese periods. Our
fundingdiversificationand globalscope helpto protectour liquiditypositionin theevent ofa crisis.Our contingentfunding
sourcesincludeour HQLAportfolios,availablecentralbank-eligiblenon-HQLAcollateralfor liquidityfacilitiesat severalmajor
central banks,contingentreductionsof tradingportfolioassets, andother actionsavailableto management.
Liquidity coverage ratio
The liquidity coverage ratio(the LCR) measures theshort-term resilience of abank’s liquidity profile byassessing whether
sufficient HQLA areavailable to meet expectednet cash outflows froma significant liquidity stressscenario, as defined
by the relevant regulator.
For UBS, HQLAare low-risk unencumberedassets under thecontrol of GroupTreasury that areeasily and immediately
convertible intocash atlittle orno lossof value,in orderto meetliquidity needs.Our HQLApredominantly consistof
assets that qualify as Level 1 in theLCR framework, including cash, central bankreserves and government bonds. Group
HQLA are held byUBS AG and its subsidiaries andmay include amounts thatare available to meetfunding and collateral
needs in certain jurisdictions but are not readily available for use by the Group as a whole. These limitations are typically
the resultof localregulatory requirements,including localLCR andlarge exposurerequirements. Fundsthat areeffectively
restricted in subsidiariesand branches areexcluded from thecalculation of GroupHQLA. On thisbasis, USD 51.8bn of
assets were excluded fromour daily average UBSGroup HQLA for thefourth quarter of2025. Amounts held inexcess
oflocalliquidityrequirementsthatarenotsubjecttootherrestrictionsaregenerallyavailablefortransferwithinthe
Group.
ConsistentwiththestandardssetbytheBaselCommitteeonBankingSupervision(theBCBS),theSwissLiquidity
Ordinance requiresSwiss banksto maintaina minimumLCR requirementof atleast 100%at alltimes. Ina periodof
financial stress, the Swiss Financial MarketSupervisory Authority (FINMA) may permitbanks to use their HQLA andallow
their LCR totemporarily fall below theminimum threshold. We monitorthe LCR in allsignificant currencies in orderto
manage any currency mismatches between HQLA and the net expected cash outflows in times of stress.
Our dailyaverage LCRfor thefourth quarterof 2025was 182.6%,compared with188.4% inthe fourthquarter of
2024, remaining above the prudential requirement communicated by FINMA.
The decreasein theaverage LCRwas primarilydriven bya USD 5.7bnincrease innet cashoutflows, toUSD 181.7bn,
mainly attributableto higheroutflows fromcustomer deposits,partly offsetby highernet inflowsfrom securitiesfinancing
transactions. Group HQLA were broadly stable at USD 331.6bn.
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
,
for more information
about the LCR
›
Refer to the “Significant regulated subsidiary and sub-group information”section of this report
for more information about the
LCR of UBS AG and UBS Switzerland AG
Liquidity coverage ratio
USD bn, except where indicated
Average 4Q25
1
Average 4Q24
1
High-quality liquid assets
331.6
331.5
Total net cash outflows
2
181.7
176.0
Liquidity coverage ratio (%)
3
182.6
188.4
1 Calculated based on an average of 64 data pointsin the fourth quarter of 2025 and 64 data points in the fourthquarter of 2024.2 Represents the net cash outflows expected over a stress periodof 30 calendar
days.3 Calculated after the application of haircuts and inflow and outflow rates, as well as,where applicable, caps on Level 2 assets and cash inflows.
Too-big-to-fail liquidity requirements
UBS Group and the affected legalentities of the UBS Group remainedcompliant throughout 2025 with the too-big-to-
fail (TBTF) liquidity requirements communicated byFINMA. These additional liquidity requirements considerliquidity risks
overa90-daytimehorizonthatarenotcoveredornotsufficientlycoveredbythe30-dayLCRstressscenario.The
additional liquidity requirements arecovered by eligible assets,which include, but arenot limited to, availableHQLA over
and above the LCR requirements.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Liquidity and funding management145
Net stable funding ratio
The net stable funding ratio (the NSFR) framework is intended to limit overrelianceon short-term wholesale funding, to
encourage abetter assessmentof fundingrisk acrossall on-and off-balancesheet itemsand topromote fundingstability.
TheNSFRhastwocomponents:availablestablefunding(ASF),asnumerator,andrequiredstablefunding(RSF),as
denominator.ASF isthe portionof capitaland liabilitiesexpected tobe availableover theperiod ofone year.RSF isa
measureofthestablefundingrequirementofassetsandoff-balancesheetexposuresbasedontheirmaturity,
encumbrance andother characteristics.Both theSwiss LiquidityOrdinance andthe BCBSNSFR regulatoryframework
require a ratio of at least 100% at all times.
As of 31 December 2025, theNSFR of the UBS Groupdecreased 9.5 percentage points to 116.1%,remaining above the
prudential requirement communicated by FINMA.
ASFincreasedbyUSD 25.2bntoUSD 882.0bn,predominantlyreflectinghighercustomerdeposits,largelydueto
currency effects.
RSF increasedby USD 77.3bnto USD 759.8bn,mainly drivenby higherlending assets,largely dueto currencyeffects,
and highertrading assets,partly offsetby decreasesin derivatives
and cashcollateral receivableson derivativeinstruments.
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
,
for more information
about the NSFR
›
Refer to the “Significant regulated subsidiary and sub-group information”section of this report
for more information about the
NSFR of UBS AG and UBS Switzerland AG
Net stable funding ratio
USD bn, except where indicated
31.12.25
31.12.24
Available stable funding (ASF)
882.0
856.8
Required stable funding (RSF)
759.8
682.5
Net stable funding ratio (%)
116.1
125.5
Balance sheet and off-balance sheet
Thebalancesdisclosedinthissectionrepresentyear-endpositions,unlessindicatedotherwise.Intra-periodbalances
fluctuate in the ordinary course of business and may differ from year-end positions. Refer to the “Consolidated financial
statements” section of this report for more information about the development of our financial position.
Balance sheet
Balance sheet assets
Asof31 December2025,balancesheetassetstotaledUSD 1,617.4bn,anincreaseofUSD 52.4bncomparedwith
31 December 2024.
Lending assets increased by USD 74.6bn, primarily driven by currencyeffects of approximately USD 59.4bn and positive
net new loans, mainlyin Global Wealth Management. Otherfinancial assets measured at fairvalue and Other financial
assets measured at amortized costincreased by USD 23.7bn and USD 13.1bn,respectively, primarily reflecting purchases
of securitiesin ourhigh-quality liquidasset (HQLA)portfolio andcurrency effects.Trading assetsincreased byUSD 15.6bn,
mainly in theInvestment Bank, dueto an increasein inventory heldto hedge clientpositions, as wellas market-driven
increases. Brokerage receivables increased by USD 9.7bn, primarily reflecting higher levels of client activity.
These increases werepartly offset bya decrease ofUSD 40.2bn in Derivativesand cash collateralreceivables on derivative
instruments, mainly inthe Investment Bank.The decrease wasdriven by foreigncurrency contracts, mainlydue to roll-
offs, partly offset by an increase in equity contracts, reflecting market-drivenincreases. In addition, there was a decrease
fromunwindingactivitiesinNon-coreandLegacy.Securitiesfinancingtransactionsatamortizedcostdecreasedby
USD 34.6bn, mainly reflectingroll-offs of cash reinvestmenttrades in GroupTreasury. Cash andbalances at centralbanks
decreased by USD 13.4bn, primarilydue to outflows frompurchases of securities inour HQLA portfolio, netredemptions
and therepurchase oflong-term debtissued measuredat amortizedcost, higherlending activitylevels, andnet new
customer depositoutflows, partlyoffset byinflows fromnet roll-offsof securitiesfinancing transactionsmeasured at
amortized cost and also by currency effects.
›
Refer to “Note 22 Restricted and transferred financial assets” in the “Consolidated financial statements”section of this report and
to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
,
for more information about
on- and off-balance sheet assets that are pledged, restricted or unencumbered
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Balance sheet and off-balance sheet146
Assets
As of
% change from
USD bn
31.12.25
31.12.24
31.12.24
Cash and balances at central banks
209.9
223.3
(6)
Lending
1
673.5
598.9
12
Securities financing transactions at amortized cost
83.7
118.3
(29)
Trading assets
174.7
159.1
10
Derivatives and cash collateral receivables on derivative instruments
189.3
229.5
(18)
Brokerage receivables
35.6
25.9
38
Other financial assets measured at amortized cost
71.9
58.8
22
Other financial assets measured at fair value
2
121.4
97.7
24
Non-financial assets
57.5
53.6
7
Total assets
1,617.4
1,565.0
3
1 Consists of Loans and advances to customers and Amounts due from banks.2 Consists of Financial assets at fair value not held for trading and Financial assets measured atfair value through other comprehensive
income.
Balance sheet liabilities
Totalliabilities as of 31 December 2025 wereUSD 1,526.9bn, an increase of USD 47.4bn comparedwith 31 December
2024.
CustomerdepositsincreasedbyUSD 42.6bn,primarilyreflectingcurrencyeffects,partlyoffsetbynetnewdeposit
outflows, mainlyin GlobalWealth Management.Trading liabilitiesincreased byUSD 18.5bn, mainlyin theInvestment
Bank,duetoanincreaseininventoryheldtohedgeclientpositions,aswellasmarket-drivenincreases.Brokerage
payables increased by USD 13.2bn, primarily reflecting higher levels of client activity.
These increases were partly offset by adecrease of USD 25.6bn in Derivatives and cashcollateral payables on derivative
instruments, mainly reflecting the same drivers as on the asset side.
Equity
Equity attributable to shareholders increased by USD 5,134m to USD 90,213m as of 31 December 2025.
TheincreaseofUSD 5,134mwasmainlydrivenbytotalcomprehensiveincomeattributabletoshareholdersof
USD 11,998m, reflecting netprofit of USD 7,767mand other comprehensiveincome (OCI)of USD 4,231m. OCIprimarily
included OCIrelated toforeign currencytranslation ofUSD 3,333m andcash flowhedge OCIof USD 1,295m,partly
offset by negativeown credit OCIof USD 499m. Inaddition, deferred share-basedcompensation awards ofUSD 1,107m
were expensed in the income statement, increasing share premium.
Theseincreaseswerepartlyoffsetbynettreasuryshareactivity,whichreducedequitybyUSD 5,169m.Thiswas
predominantlyduetosharerepurchaseswithanacquisitioncostofUSD 3,000munderour2024and2025share
repurchase programsand thepurchasing ofUSD 2,365m ofshares inrelation toemployee share-basedcompensation
plans.Inaddition,distributionstoshareholdersreducedequitybyUSD 2,866m,reflectingadividendpaymentof
USD 0.90 per share for the 2024 financial year.
In the second quarter of 2025, wecanceled 120,506,008 shares purchased under our 2022 sharerepurchase program,
asapprovedbytheshareholdersatthe2025AnnualGeneralMeeting.Thecancellationofsharesresultedin
reclassifications within equity but had no net effect on our total equity attributable to shareholders.
›
Refer to the “Group performance”and “Consolidated financial statements” sections of this report for more informationabout OCI
›
Refer to the “Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equitytier 1 capital” table in the
“Capital management” section of this report for more information about the effectsof OCI on common equity tier 1 capital
›
Refer to the “UBS shares” section of this report for more informationabout our share repurchase programs
ubs-20251231p171i0
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Balance sheet and off-balance sheet147
Liabilities and equity
As of
% change from
USD bn
31.12.25
31.12.24
31.12.24
Short-term borrowings
1,2
58.3
53.9
8
Securities financing transactions at amortized cost
16.2
14.8
9
Customer deposits
788.4
745.8
6
Debt issued designated at fair value and long-term debt issued measured at amortized cost
2
294.6
291.6
1
Trading liabilities
53.7
35.2
52
Derivatives and cash collateral payables on derivative instruments
190.5
216.1
(12)
Brokerage payables
62.2
49.0
27
Other financial liabilities measured at amortized cost
15.9
21.0
(25)
Other financial liabilities designated at fair value
28.2
28.7
(2)
Non-financial liabilities
19.0
23.2
(18)
Total liabilities
1,526.9
1,479.5
3
Share capital
0.3
0.3
(3)
Share premium
9.2
12.0
(23)
Treasury shares
(7.9)
(6.4)
23
Retained earnings
82.7
78.0
6
Other comprehensive income
3
5.8
1.1
434
Total equity attributable to shareholders
90.2
85.1
6
Equity attributable to non-controlling interests
0.3
0.5
(45)
Total equity
90.5
85.6
6
Total liabilities and equity
1,617.4
1,565.0
3
1 Consists of short-term debt issued measured at amortized cost and Amounts due to banks, which includes amounts due to central banks.2 The classification of debt issued measured at amortized cost into short-
term and long-term isbased on original contractualmaturity and therefore long-termdebt also includes debtwith a remaining timeto maturity of lessthan one year.This classification doesnot consider any early
redemption features.3 Excludes other comprehensive income related to defined benefit plans and own credit, which is recorded directly in Retained earnings.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Balance sheet and off-balance sheet148
Liabilities, by product and currency
USD equivalent
All currencies
of which: USD
of which: CHF
of which: EUR
USD bn
31.12.25
31.12.24
31.12.25
31.12.24
31.12.25
31.12.24
31.12.25
31.12.24
Short-term borrowings
58.3
53.9
25.6
22.5
5.8
5.7
13.5
11.7
of which: amounts due to banks
24.4
23.3
7.2
8.1
5.2
5.4
3.8
3.1
of which: short-term debt issued
1,2
33.9
30.5
18.4
14.5
0.6
0.3
9.7
8.6
Securities financing transactions at amortized cost
16.2
14.8
8.6
7.9
5.8
3.8
0.8
2.9
Customer deposits
788.4
745.8
301.6
310.3
341.4
297.2
74.7
71.1
of which: demand deposits
259.4
221.8
52.8
54.0
139.1
107.8
36.2
32.8
of which: retail savings / deposits
230.8
182.3
38.1
34.9
187.5
143.3
5.1
4.0
of which: sweep deposits
41.5
41.9
41.5
41.9
0.0
0.0
0.0
0.0
of which: time deposits
256.8
299.8
169.3
179.4
14.8
46.1
33.4
34.3
Debt issued designated at fair value and long-term debt issued measured at
amortized cost
2
294.6
291.6
157.4
165.7
44.1
41.5
71.5
62.1
Trading liabilities
53.7
35.2
20.3
14.4
1.5
1.3
15.5
10.0
Derivatives and cash collateral payables on derivative instruments
190.5
216.1
165.0
182.9
2.9
4.4
13.2
18.0
Brokerage payables
62.2
49.0
49.2
38.1
0.8
0.5
3.4
3.4
Other financial liabilities measured at amortized cost
15.9
21.0
7.0
11.7
3.8
3.7
1.8
2.0
Other financial liabilities designated at fair value
28.2
28.7
3.6
4.1
0.1
0.1
2.3
4.3
Non-financial liabilities
19.0
23.2
9.3
13.0
4.3
4.1
1.5
2.8
Total liabilities
1,526.9
1,479.5
747.6
770.7
410.4
362.3
198.2
188.3
1 Short-term debt issued consists of certificates of deposit, commercial paper,acceptances and promissory notes, and other money market paper.2 The classification of debt issued measured at amortized cost into
short-term and long-term is basedon original contractual maturity,and therefore long-term debt alsoincludes debt with a remainingtime to maturity of lessthan one year.This classification does notconsider any
early redemption features.
Off-balance sheet
In thenormal courseof business,we enterinto transactionswhere, pursuantto IFRSAccounting Standards,the maximum
contractual exposure may not be recognized inwhole or in part on ourbalance sheet. Therefore, in certain instancesthe
amount recognized on the balance sheet does not represent the full gain or loss potential inherent in such transactions.
These transactions include derivative instruments, guarantees, loan commitments and similar arrangements.
Thefollowingparagraphsprovidemoreinformationaboutcertainoff-balancesheetarrangements.Additionaloff-
balance sheetinformation isprimarily providedin Notes 9,10, 17,19, 20h,22 and27 inthe “Consolidatedfinancial
statements” section of this report and in the 31 December 2025 Pillar 3 Report, availableunder “Pillar 3 disclosures” at
ubs.com/investors
.
Guarantees, loan commitments and similar arrangements
We issue variousforms of guarantees,commitments toextend credit, standbyand other lettersof credit, forwardstarting
transactions,noteissuancefacilities,andrevolvingunderwritingfacilities.Withtheexceptionofrelatedpremiums,
generallytheseguaranteesandsimilarobligationsarekeptasoff-balancesheetitems,unlessaprovisiontocover
probable losses or expected credit losses is required.
Guarantees represent irrevocable assurances that, subject to the satisfying of certain conditions, we will make payments
if our clientsfail to fulfilltheir obligations tothird parties. Asof 31 December 2025,the net exposure(i.e. gross values
lesssub-participations)fromguaranteesandsimilarinstrumentswasUSD 45.8bn,comparedwithUSD 38.4bnasof
31 December 2024.The increaseof USD 7.4bnwas mainlydriven byan increasein sponsoredrepo clearingin Group
Treasury. Fee income from issuing guarantees compared with total net fee and commission income was insignificant for
2025 and 2024.
We alsoenter intocommitments toextend creditin theform ofcredit linesavailable tosecure theliquidity needsof
clients.Forthemajorityofirrevocableloancommitments,UBSiscommittedtoprovidecreditatanytimewithina
contractualmaturityperiodofuptothreeyearsfromthebalancesheetdate,i.e.31 December2025.During2025,
Irrevocable loancommitments increasedby USD 2.5bn,mainly drivenby currencyeffects. Committedunconditionally
revocable credit lines decreased by USD 26.0bn,mainly driven by decreases in facilitiesprovided to clients in Personal &
Corporate Bankingand GlobalWealth Management,partly offsetby currencyeffects. Forwardstarting reverserepurchase
and securities borrowingagreements decreased byUSD 14.2bn, reflecting adecrease in levelsof business divisionactivity
in short-dated securities financing transactions.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Balance sheet and off-balance sheet149
Off-balance sheet
As of
% change from
USD bn
31.12.25
31.12.24
31.12.24
Guarantees
1,2
45.8
38.4
19
Irrevocable loan commitments
1
82.1
79.6
3
Committed unconditionally revocable credit lines
119.7
145.7
(18)
Forward starting reverse repurchase and securities borrowing agreements
10.7
24.9
(57)
1 Guarantees and irrevocable loan commitments are shown net of sub-participations.2 Includes guarantees measured at fair value through profit or loss.
If customers failto meet theirobligations, our maximumexposure to creditrisk is generallythe contractual amountof
theseinstruments.Theriskissimilartotheriskinvolvedinextendingloanfacilitiesandissubjecttothesamerisk
management and control framework.In 2025, we recognizednet credit loss expensesof USD 36m related to irrevocable
loan commitments,guarantees andother creditfacilities inthe scopeof expectedcredit lossmeasurement, compared
with netcredit loss releasesof USD 14min 2024.Provisions recognized forirrevocable loancommitments, guarantees
and other creditfacilities in thescope of expectedcredit loss measurementwere USD 347m asof 31 December 2025,
compared with USD 320m as of 31 December 2024.
›
Refer to “Note 9 Financialassets at amortizedcost and otherpositions inscope of expectedcredit loss measurement”and “Note 19
Expected creditloss measurement”in the “Consolidatedfinancial statements”section of this report for more information about
provisions for expected credit losses
For certain obligations, we enter into partial sub-participations to mitigate various risks from guarantees and irrevocable
loan commitments. A sub-participation isan agreement by another party totake a share of the lossin the event that the
obligationisnotfulfilledbytheobligorand,whereapplicable,tofundapartofthecreditfacility.Weretainthe
contractual relationshipwith theobligor, andthe sub-participanthas onlyan indirectrelationship. Generally,we only
enter intosub-participation agreements withbanks towhich weascribe acredit ratingequal to orbetter than thatof
the obligor.
We also provide representations, warranties and indemnifications to third parties in the normal course of business.
Support provided to non-consolidated investment funds
In 2025, the Groupdid not provide materialsupport, financial or otherwise, tounconsolidated investment funds when
the Group was not contractually obligated to do so, nor does it currently have an intention to do so.
Clearing house and exchange memberships
Wearea memberof numeroussecurities andderivative exchangesand clearinghouses. Inconnection withsome of
these memberships, we may be required to pay a share of the financial obligations of another member that defaults, or
we may be otherwise exposed to additionalfinancial obligations. While the membership rulesvary, obligations generally
would arise only if theexchange or clearing house hadexhausted its resources. We consider the probability ofa material
loss due to such obligations to be remote.
Deposit insurance
Swiss banking lawand thedeposit insurance systemrequire Swissbanks and securitiesdealers to jointlyguarantee an
amount ofup toCHF 7.9bn forprivileged clientdeposits inthe eventthat aSwiss bankor securitiesdealer becomes
insolvent. As of31 December 2025, FINMAestimates our sharein the depositinsurance system tobe CHF 1.5bn. This
represents a contingent payment obligation and exposes usto additional risk. As of 31 December 2025,we considered
the probability of a material loss from our obligations to be remote.
UBS is also subjectto, or is amember of, other deposit protectionschemes in other countries. However,no contingent
payment obligation existed as of 31 December 2025 from any other material scheme.
Material cash requirements
The Group’s material cash requirements as of 31 December 2025are represented by the residualcontractual maturities
for non-derivative and non-tradingfinancial liabilities included inthe table presentedin “Note 23b Maturityanalysis of
financial liabilities on an undiscounted basis” in the “Consolidated financial statements” section of this report. Included
inthetableareDebtissuedmeasuredatamortizedcost(USD 257.6bn)andDebtissueddesignatedatfairvalue
(USD 134.4bn). The amounts represent estimated future interest and principal payments on an undiscounted basis.
In the normal course of business, we also issue or enter into various forms of guarantees, irrevocable loan commitments
andothersimilararrangementsthatmayresultinanoutflowofcashinthefuture.Thematurityprofileofthese
obligations, which are presented off-balance sheet, are included in “Note 23b Maturity analysis of financial liabilitieson
an undiscountedbasis” inthe “Consolidatedfinancial statements”section ofthis report.Refer to“Guarantees, loan
commitments and similar arrangements” in this section for more information.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Balance sheet and off-balance sheet150
Cash flows
As we are a global financial institution, our cash flowsare complex and often may bear little relation to our netearnings
and netassets. Consequently,we believethat atraditional cashflow analysisis lessmeaningful whenevaluating our
liquidity position than the liquidity,funding and capital management frameworks and measures describedelsewhere in
this section.
›
Refer to the “Liquidity and funding management” section of this report for more information
Cash and cash equivalents
As of31 December 2025,cash andcash equivalentstotaled USD 231.4bn,a decreaseof USD 12.7bncompared with
31 December 2024,driven bynet cash outflowsused ininvesting andfinancing activities.These effects werepartly offset
by net cashinflows from operatingactivities and USD 19.1bnof positive foreigncurrency effects,largely reflecting the
weakening of the US dollar against the Swiss franc in 2025.
Operating activities
Net cash inflowsfrom operating activitieswere USD 21.9bn in2025, compared withUSD 3.3bn in 2024.The net positive
change in operating assetsand liabilities of USD 21.7bnwas mainly driven bya USD 40.5bn decrease inreceivables from
securities financing transactionsmeasured atamortized cost anda USD 25.2bnpositive change infinancial assets and
liabilities at fairvalue held fortrading and derivativefinancial instruments. These effectswere partly offsetby outflows
of USD 16.3bn onloans and advances tocustomers, a USD 13.4bnnegative change in financialassets and liabilities at
fair value not held for trading and other financial assets and liabilities, and outflows of USD 12.9bndue to a decrease in
customer deposits. Non-cash items included in net profit and other adjustments are mainly to remove the net impact of
non-cash effects on the balance sheet, such as foreign currency effects.
Investing activities
Investing activities resulted in netcash outflows of USD 22.8bn in 2025,compared with USD 0.7bn of netcash inflows
in 2024, primarilyreflecting USD 11.5bn ofnet cash outflowsfrom financial assetsmeasured at fairvalue and USD 9.8bn
of net cash outflows from debt securities measured at amortized cost, both largely reflecting net purchases of securities
in our HQLA portfolio.
Financing activities
Financingactivitiesresultedin netcash outflowsof USD30.9bnin 2025,comparedwith USD84.2bnin 2024,mainlydriven
by a USD 23.1bnnet repaymentof debt issueddesignatedat fair value andlong-term debtissued measuredat amortized
cost, USD 5.2bn of net cash used to purchase treasury shares,and a dividend distribution to shareholders of USD2.9bn.
Theseeffectswerepartlyoffsetby inflowsofUSD 1.7bnfrom netissuancesof short-termdebtissuedmeasuredat amortized
cost.
›
Refer to “Primary financial statements and share information” in the “Consolidated financialstatements” section of this report for
more information about cash flows
Statement of cash flows (condensed)
For the year ended
USD bn
31.12.25
31.12.24
Net cash flow from / (used in) operating activities
21.9
3.3
Net cash flow from / (used in) investing activities
(22.8)
0.7
Net cash flow from / (used in) financing activities
(30.9)
(84.2)
Effects of exchange rate differences on cash and cash equivalents
19.1
(15.9)
Net increase / (decrease) in cash and cash equivalents
(12.7)
(96.1)
Cash and cash equivalents at the end of the year
231.4
244.1
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | Currency management151
Currency management
Strategy, objectives and governance
Group Treasury focuses on three main areas of currency risk management: (i) currency-matched funding and hedging of
non-US-dollar net investments; (ii) the sell-downof foreign currency profits and losses under IFRSAccounting Standards;
and(iii) selectivehedgingofexpectednon-US-dollarprofitsandlossestofurthermitigatetheeffectofstructural
imbalances in the balance sheet.
Currency-matched funding and hedging of non-US-dollar net investments
For monetary balance sheet itemsand other investments, as faras it is practical andefficient, UBS follows theprinciple
of matching the currencies ofits assets and liabilitiesfor funding purposes. Thisavoids profits and losses arisingfrom the
translation of non-US-dollar assets and liabilities.
UBS Group AGand UBS AG applynet investment hedgeaccounting to non-US-dollarcore investmentsto balance the
effect of foreign exchange movements on both common equity tier 1 (CET1) capital and the CET1 capital ratio.
›
Refer to “Note 1 Summary of material accounting policies” and “Note 24 Hedge accounting” in the “Consolidatedfinancial
statements” section of this report for more information
›
Refer to the “Capital management” section of this report for more information about our activemanagement of sensitivity to
currency movements and the effect thereof on our key ratios
Sell-down of non-US-dollar profits and losses
Incomestatement itemsof Groupentities withafunctional currencyotherthan theUSdollar aretranslated intoUS
dollars at averageexchange rates. Toreduce theprofit-and-loss volatilityfrom thetranslation of previouslyrecognized
earnings inforeign currencies, GroupTreasury centralizes the profits andlosses (underIFRS AccountingStandards) arising
in UBS AGand itsbranches andsells orbuys theprofit orloss forUS dollarson amonthly basis.UBS Group AG and
UBS AGsubsidiariesfollowasimilarmonthlysell-downprocessintotheirownfunctionalcurrencies.Theequityin
subsidiaries and branches with afunctional currency other thanthe US dollar is integratedand managed as part ofthe
UBS Group’s net investment hedge accounting program.
Hedging of expected non-US-dollar profits and losses
Although UBS did nothave hedges for expectedfuture profits andlosses in place asof 31 December 2025, theGroup
Asset andLiability Committeemay atany timeinstruct GroupTreasuryto executehedges toprotect expectedfuture
profits and losses in foreign currencies against potential adverse movements of foreign exchange rates.
Dividend distribution
UBS Group AG declaresdividends in US dollars. Shareholders holdingshares through SIX SIS AG will receive dividends in
Swiss francs, basedon a publishedexchange rate calculatedup to fivedecimal places, onthe day priorto the ex-dividend
date. Shareholders holding shares through DTC or Computershare will be paid dividends in US dollars.
›
Refer to the UBS Group AG Standalone financial statements and regulatory informationfor 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 the proposed dividend distribution of UBS Group AG for the 2025financial year
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | UBS shares152
UBS shares
UBS Group AG shares
Audited |
Asof31 December 2025,equityattributable toshareholders underIFRSAccounting Standardsamountedto
USD
90,213
m, representedby
3,341,581,714
shares issued.Shares issueddecreasedby
120,506,008
shares in2025 asthe
shares acquiredunder our 2022share repurchaseprogram were canceledby means ofa capitalreduction,as approved by
shareholdersat the 2025Annual GeneralMeeting (theAGM).
Each share hasa nominal valueof USD
0.10
, carries one voteif entered intothe share registeras having the rightto vote,
and entitles theholder toa proportionate share ofdistributed dividends. All shares arefully paid up.As theArticles of
Associationof UBS GroupAG indicate,there areno other classesof sharesand no preferentialrights forshareholders.
›
Refer to the “Corporate governance” section of this report for more information about UBS shares
UBS Group share information
As of or for the year ended
% change from
31.12.25
31.12.24
31.12.24
Shares issued
3,341,581,714
3,462,087,722
(3)
Treasury shares
1
249,882,523
287,262,471
(13)
of which: related to share repurchase program 2022
120,506,008
of which: related to share repurchase program 2024
63,776,550
32,962,298
93
of which: related to share repurchase program 2025
52,582,575
Shares outstanding
3,091,699,191
3,174,825,251
(3)
Basic earnings per share (USD)
2
2.46
1.59
55
Diluted earnings per share (USD)
2
2.36
1.52
56
Equity attributable to shareholders (USD m)
90,213
85,079
6
Less: goodwill and intangible assets (USD m)
6,948
6,887
1
Tangible equity attributable to shareholders (USD m)
83,265
78,192
6
Ordinary cash dividends per share (USD)
3,4
1.10
0.90
22
Total book value per share (USD)
29.18
26.80
9
Tangible book value per share (USD)
26.93
24.63
9
Share price (USD)
5
46.61
30.54
53
Market capitalization (USD m)
6
155,760
105,719
47
1 Based on a settlement date view.2 Refer to “Share information and earnings per share” in the “Consolidated financial statements” section of this report for more information.3 Dividends and / or distributions
out of the capital contribution reserveare normally approved and paid inthe year subsequent to the reportingperiod.4 Refer to the “Statement ofproposed appropriation of total profit anddividend distribution
out of total profit and capitalcontribution reserve” section of theUBS Group AG Standalone financialstatements and regulatory information forthe year ended 31 December 2025report, available under “Holding
company and significantregulated subsidiaries andsub-groups” at ubs.com/investors,for more information.5 Represents theshare price aslisted on theSIX Swiss Exchange,translated to USdollars using the
closing exchange rate as of the respective date.6 The calculation of market capitalization reflects total shares issued multipliedby the share price at the end of the period.
Holding of UBS Group AG shares
Group Treasuryholds UBS Group AG shares to hedge future share delivery obligations related to employee share-based
compensation awards, and also holdsshares purchased under share repurchase programs. As of31 December 2025, we
held a total of 249,882,523 treasury shares (31 December 2024: 287,262,471).
Our 2022 share repurchase program was concluded on 28 March 2024.The shares acquired under this program totaled
121 million asof 31 December 2024for a totalacquisition cost ofUSD 2,277m (CHF 2,138m). The121 million shares
were canceled by means of a capital reduction in 2025 as approved by shareholders at the 2025 AGM.
On 3 April 2024, we launched a 2024 share repurchase program of up to USD 2bn over two years, which concluded on
23 May 2025. Shares acquiredunder this program totaled64 million as of 31 December2025 for a total acquisitioncost
of USD 2,000m(CHF 1,739m). Those64 millionshares willbe canceledby meansof acapital reduction,pending approval
by the shareholders at a future AGM.
On1 July2025,welaunchedanew,2025sharerepurchaseprogramtorepurchaseuptoUSD 2bnshares,which
concluded on 20 November 2025. Shares acquired under this program totaled 53 million as of 31 December 2025 for a
totalacquisitioncostofUSD 2,000m(CHF 1,602m).Those53millionshareswillbecanceledbymeansofacapital
reduction, pending approval by the shareholders at a future AGM.
On 4 February2026, welaunched ashare repurchaseprogram ofup toUSD 3bn ofshares. Theprogram startedon
5 February 2026 and will end at the latest on 4 February 2028 or earlier if either the maximum amount of USD 3bn has
been reached or 10% of the registered share capital has been repurchased. We intend to repurchase USD 3bn of shares
in 2026with theaim todo more.The amountof additionalrepurchases issubject to furtherclarity around thefuture
regulatoryregimeinSwitzerland,ourfinancialperformanceandmaintainingacommonequitytier 1capitalratioof
around 14%.Beyond 2026,weintend tocontinue topursue sharerepurchases thatwill becalibrated basedon our
financial results, our capital ratio and the final outcome and timing of the implementation of the new regulatory regime
in Switzerland.
Annual Report 2025 |
Risk, capital, liquidity and funding, and balance sheet | UBS shares153
Treasurysharesheldtohedgeoursharedeliveryobligationsrelatedtoemployeeshare-basedcompensationawards
totaled 133 million shares as of 31 December 2025 (31 December 2024: 133million). Share delivery obligations related
to employee share-basedcompensation awards totaled159 million shares asof 31 December 2025(31 December 2024:
183million)andarecalculatedonthebasisofundistributednotionalshareawards,takingapplicableperformance
conditions into account. Treasuryshares held are deliveredto employees at exerciseor vesting. As of 31 December2025,
upto122million UBS Group AGshares(31 December 2024:122million) couldhave beenissued outofconditional
capital to satisfy share delivery obligations of any future employee share option programs or similar awards.
The Investment Bankalso holds alimited number ofUBS Group AG shares,primarily in itscapacity as amarket-maker
with regard to UBS Group AG shares and related derivatives, and to hedge certain issued structured debt instruments.
ThetablebelowoutlinesthemarketpurchasesofUBS GroupAGsharesbyGroupTreasury.Itdoesnotincludethe
activities of the Investment Bank.
Treasury sharepurchases
Share repurchase programs
1
Other treasury shares purchased
2
Month of purchase
3
Number of shares
Average price
in USD
Remaining volume of
2024 share repurchase
program in USD m
at month-end
Remaining volume of
2025 share repurchase
program in USD m
at month-end
Number of shares
Average price
in USD
January 2025
1,000
February 2025
5,345,315
33.81
819
March 2025
9,670,074
33.59
494
12,000,000
32.73
April 2025
5,301,742
29.32
339
May 2025
10,497,121
32.29
0
June 2025
7,220,334
31.89
July 2025
19,604,593
36.50
1,284
August 2025
9,779,206
38.90
904
4,669,630
40.06
September 2025
904
12,323,620
41.11
October 2025
16,045,575
39.21
275
November 2025
7,153,201
38.42
0
1,106,608
38.29
December 2025
8,893,392
40.98
1 In April 2024, UBS launched a share repurchase program to buy back up to USD 2bn of its own shares over a two-year period and this program was concluded on 23 May 2025. In July 2025, UBS launched a share
repurchase program to buy backup to USD 2bn of its ownshares and this program wasconcluded on 20 November 2025.The share buybacks were transactedin Swiss francs on a separatetrading line on the SIX
Swiss Exchange.2 This tableexcludes purchases for thepurpose of hedging derivativeslinked to UBSGroup AG sharesand for market-makingin UBS Group AGshares. Thetable also excludes UBSGroup AG
shares purchased bypost-employment benefit fundsfor UBS employees,which are managedby a boardof UBS managementand employee representativesin accordance withSwiss law.UBS’s post-employment
benefit funds purchased 776,495 UBS Group AG shares during2025 and held 12,027,577 UBS Group AG shares as of31 December 2025.3 Based on the transaction date of therespective treasury share purchases.
Trading volumes
For the year ended
1,000 shares
31.12.25
31.12.24
31.12.23
SIX Swiss Exchange total
1,717,522
1,480,816
2,102,613
SIX Swiss Exchange daily average
6,898
5,923
8,377
New York Stock Exchange total
122,766
114,583
170,875
New York Stock Exchange daily average
491
455
684
Source: Reuters.
Listing of UBS Group AG shares
UBS Group AG sharesare listed onthe SIX SwissExchange (SIX). They arealso listed on theNew YorkStock Exchange
(the NYSE)as globalregistered shares.As such,they canbe tradedand transferredacross applicableborders, without
the need for conversion, with identical shares traded on different stock exchanges in different currencies.
During 2025,the averagedaily trading volumeof UBS GroupAG shareswas 6.9 millionshares on SIXand 0.5million
shares on the NYSE.SIX is expected toremain the main venuefor determining the movementin our share price,because
of the high volume traded on this exchange.
During the hours in which bothSIX and the NYSE are simultaneouslyopen for trading, price differences between these
exchanges are likelyto be arbitragedaway by professionalmarket-makers. Accordingly, the shareprice will typicallybe
similar between the twoexchanges when considering theprevailing US dollar / Swiss francexchange rate. When SIXis
closedfortrading,globallytradedvolumeswilltypicallybelower.However,thespecialistfirmmakingamarketin
UBS Group AGshares onthe NYSEis requiredto facilitatesufficient liquidityand maintainan orderlymarket inUBS Group
AG shares throughout normal NYSE trading hours.
Ticker symbols UBS Group AG
Security identification codes
Trading exchange
SIX / NYSE
Bloomberg
Reuters
ISIN
CH0244767585
SIX Swiss Exchange
UBSG
UBSG SW
UBSG.S
Valoren
24 476 758
New York Stock Exchange
UBS
UBS UN
UBS.N
CUSIP
CINS H42097 10 7
Annual Report 2025 |
Corporate governance and compensation154
Corporate governance and
compensation
Management report
Audited information according to Swiss law and applicable regulatory requirements
and guidance
DisclosuresprovidedareinlinewiththerequirementsoftheSwissCodeofObligations(tablescontainingsuch
information are marked as “Audited” throughout this section), as well as other applicable regulations and guidance.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance156
Corporate governance
UBS Group AG is subject to, and complieswith, all relevant Swiss legal and regulatory requirements regarding corporate
governance, includingthe SIX SwissExchange’s Directive onInformation relating toCorporate Governance(the SIX Swiss
Exchange CorporateGovernance Directive)and thestandards establishedin theSwiss Codeof BestPractice forCorporate
Governance.
As a non-US company with shares listedon the New York Stock Exchange (theNYSE), UBS Group AG also complieswith
all relevant corporate governance standards applicable to foreign private issuers.
The Organization Regulations of UBS Group AG, adopted by the Board of Directors (the BoD) based on Art. 716b of the
Swiss Code of Obligationsand articles 25 and27 of the Articlesof Association of UBSGroup AG (the AoA),constitute
UBS Group AG’s primary corporate governance guidelines.
›
Refer to the Articles of Association of UBS Group AG and to the Organization Regulations of UBS GroupAG, available at
ubs.com/governance,
for more information
›
The SIX Swiss Exchange Corporate Governance Directive is available at
ser-
ag.com/dam/downloads/regulation/listing/directives/dcg-en.pdf,
the Swiss Code of Best Practice for Corporate Governance at
economiesuisse.ch/en/publications/swiss-code-best-practice-corporate-governance
and the NYSE rules at
nyseguide.srorules.com/listed-company-manual
Differences from corporate governance standards relevant to US-listed companies
The NYSE standardson corporategovernancerequire foreign privateissuers to discloseany significantways in whichtheir
corporate governance practices differfromthose thathave tobefollowed byUScompanies. Thekeydifferences are
discussedbelow.
Responsibility of the Audit Committee regarding independent auditors
Our AuditCommitteeis responsiblefor the compensation,retention andoversightof independentauditors.It assessesthe
performance andqualificationsof external auditorsand submits proposalsfor appointment,reappointment or removalof
independent auditors totheBoD.Asrequired bytheSwiss CodeofObligations, theBoDsubmits itsproposals fora
shareholder vote
at the Annual General Meeting (the AGM).Under NYSE standards audit committeesare responsible for
appointingindependentauditors.
Discussion of risk assessment and risk management policies by the Risk Committee
As perthe OrganizationRegulations ofUBS GroupAG, theRisk Committee,instead ofthe AuditCommittee, asper
NYSE standards, overseesour risk principlesand risk capacityon behalf ofthe BoD. TheRisk Committee isresponsible
formonitoringouradherencetothoseriskprinciplesandmonitoringwhetherbusinessdivisionsandcontrolunits
maintain appropriate systems of risk management and control.
Supervision of the internal audit function
Although under NYSE standards only audit committees supervise internalaudit functions, the Chairman of the BoD (the
Chairman) and the Audit Committee share the supervisory responsibility and authority with respect to the internal audit
function.
Responsibility of the Compensation Committee for performance evaluations of senior management of UBS Group AG
In line with Swiss law,our Compensation Committee, together with the BoD,proposes for shareholder approvalat the
AGMthemaximumaggregateamountofcompensationfortheBoD,themaximumaggregateamountoffixed
compensation for theGroup Executive Board(the GEB) andthe aggregate amountof variable compensationfor the GEB.
The members of the Compensation Committee are elected by the AGM. Under NYSE standards it is the responsibility of
compensation committeesto evaluatesenior management’sperformance andto determineand approve, asa committee
or together with the other independent directors, the compensation thereof.
Proxy statement reports of the Audit Committee and the Compensation Committee
NYSE standards require the aforementioned committeesto submit their reports directlyto shareholders. However, under
Swiss lawall reportsto shareholders,including thosefrom theaforementioned committees,are provided toand approved
by the BoD, which has ultimate responsibility to the shareholders.
Shareholder votes on equity compensation plans
NYSE standards require shareholderapproval for establishing equity compensation plans andmaterial revisions thereto.
However,as perSwiss law,the BoDapprovescompensation plans.Shareholder approvalis onlymandatory ifequity-
based compensation plans require an increase in capital. No shareholder approval is required if shares for such plans are
purchased in the market.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance157
Independence of board members
NYSE standardsrequirea majorityof themembers ofthe boardof directorsof alisted companyto beindependent,
which includes the requirementnot to havebeen an employee ofthe company within thelast three years.In contrast,
FINMACircular2017/1“CorporateGovernance–Banks”requiresatleastonethirdoftheBoDmemberstobe
independent, which includes the requirement not to have been employed in any other function within the Group in the
two yearsprior totaking office.
Swiss rulesalso donot require usto publishthe criteriafor determiningthe independence
of board members on our website.
Independence requirements of committee members
NYSEstandardsrequiretheAuditCommittee,CompensationCommitteeandtheGovernanceandNominating
Committeetobecomposedentirelyofindependentmembers.However,underSwisslawandregulationsonlythe
majority of the Audit Committee membersneed to be independent, and thereis no independence requirement forthe
members of the Compensation Committee and the Governance and Nominating Committee.
Group structure and shareholders
Operational Group structure
As at 31 December 2025, the operationalstructure of the UBS Group iscomposed of the Global Wealth Management,
Personal &Corporate Banking,Asset Management,Investment Bank,and Non-coreand Legacybusiness divisions,as
well as Group functions.
›
Refer to the “Our businesses” section of this report for more information about our businessdivisions and Group functions
›
Refer to “Financial and operating performance” and to
in the “Consolidated financial statements”
section of this report for more information
›
Refer to the “Our evolution” section of this report for more information
Listed and non-listed companies belonging to the Group
The Group includes a number of consolidated entities, of which only UBS Group AG shares are listed.
UBS Group AG’s registered office is at Bahnhofstrasse 45, CH-8001 Zurich, Switzerland. UBS Group AGshares are listed
on the SIX Swiss Exchange (ISIN CH0244767585) and on the NYSE (CUSIP H42097107).
›
Refer to the “UBS shares” section of this report for information about UBS GroupAG’s market capitalization and sharesheld by
Group entities
›
Refer to “Note 27 Interests in subsidiaries and other entities” in the “Consolidated financial statements”section of this report for
more information about the significant subsidiaries of the Group
Significant shareholders
General rules
Under the SwissFederal Act onFinancial Market Infrastructuresand Market Conductin Securities andDerivatives Trading
of 19 June 2015 (theFMIA), anyone who directly,indirectly or acting inconcert with thirdparties, acquires or disposes
of sharesin acompany listedin Switzerlandor holdsother purchaseor salepositions relatingto suchshares, and,thereby,
reaches, falls below orexceeds one of the followingpercentage thresholds: 3, 5,10, 15, 20, 25, 33
1
⁄
3
, 50 or 66
2
⁄
3
% of
the voting rights in such company,regardless of whether or not such rights may be exercised, must notify the company
and the Swiss stock exchange on whichsuch shares are listed. Nomineesthat cannot autonomously decide how voting
rights are exercised arenot required to notify thecompany and such stock exchange if they reach,exceed or fall below
the aforementioned thresholds.
Shareholders subject to FMIA disclosure notifications
According to the mandatory FMIA disclosurenotifications filed with UBS Group AGand the SIX Swiss Exchange(SIX), on
31 December 2025, the following entities held more than3% of the total voting rights of UBS Group AG: NorgesBank,
Oslo, which disclosed a holdingof 4.90% on 22 January 2025;and BlackRock Inc., New York, which disclosed aholding
of 5.01% on 30 November 2023.
On 17 February2026, Norges Bank,Oslo, discloseda holdingof less than3% of thetotal sharecapital of UBSGroup AG.
No new disclosures of significant shareholdings have been made since that date.
In accordance with the FMIA, the aforementioned holdings are calculatedin relation to the voting rights associated with
the totalshare capitalof UBS GroupAG enteredinto thecommercial registerat thetime ofthe respectivedisclosure
notification.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance158
AsregistrationintheUBSshareregisterisoptional,theaforementionedshareholdersthatcrossedtheindicated
percentagethresholdsandwererequiredtonotifytheirholdingtoUBSandSIXdonotnecessarilyappearinthe
“Distribution of UBS shares” table below, as such table only discloses registered shareholders.
InformationondisclosuresundertheFMIAisavailableat
ser-ag.com/en/resources/notifications-market-
participants/significant-shareholders.html.
Cross-shareholdings
UBS GroupAG hasno cross-shareholdingswhere reciprocalownership wouldbe inexcess of5% ofcapital orvoting
rights with any other company.
Share capital structure
Ordinary share capital
Attheendof2025,UBSGroupAGhad3,341,581,714issuedfullypaidregisteredshareswithanominalvalueof
USD 0.10 each, equating to a share capital of USD 334,158,171.40.
Under Swiss company law,shareholders must approve, ina general meeting ofshareholders, any increase orreduction
in the ordinary share capital, thecreation of conditional capital or the introduction ofa capital band. In addition, under
the SwissBanking Act,shareholders ofa Swisstop holdingcompany ofa financialgroup orof aSwiss bankmust approve,
in a general meeting of shareholders, the introduction of, or changes to, conversion capital or reserve capital.
In 2025, the shareholders of UBS GroupAG were not asked to approvethe creation of conditional or conversioncapital,
or the introduction of a capital band or reserve capital. As of the date of this report, UBS Group AG has no capital band
or reserve capital.
No shares were issued out of UBS Group AG’s existing conditional or conversion capital in 2025.
Distribution of UBS Group AG shares
As of 31 December 2025
Shareholders registered
Shares registered
Number of shares registered in the UBS share register
Number
%
Number
% of shares issued
1–100
59,443
25.9
2,368,604
0.1
101–1,000
107,676
46.9
46,439,844
1.4
1,001–10,000
56,670
24.7
156,862,549
4.7
10,001–100,000
5,022
2.2
116,805,923
3.5
100,001–1,000,000
463
0.2
134,513,778
4.0
1,000,001–5,000,000
89
0.0
193,201,547
5.8
5,000,001–33,415,817 (1%)
20
0.0
206,454,273
6.2
1–2%
2
0.0
84,281,740
2.5
2–3%
0
0.0
0
0.0
3–4%
2
0.0
217,044,887
6.5
4–5%
0
0.0
0
0.0
Over 5%
1
1
0.0
257,042,707
7.7
Total shares registered
229,388
100.0
1,415,015,852
2
42.3
Shares not registered
3
1,926,565,862
57.7
Total
100.0
3,341,581,714
100.0
1 On 31 December 2025, the US securities clearingorganization DTC (Cede & Co.), NewYork, was registeredwith 7.69% of all UBS Group AG sharesissued and is not subject to the 5% votinglimit as a securities
clearing organization.2 Of the total shares registered, 93,121,130 shares did not carry voting rights.3 Shares not entered in the UBS share register as of 31 December 2025.
Conditional capital
At the end of 2025, the following conditional capital was available to the BoD.
–
ConditionalcapitalintheamountofUSD 38,000,000fortheissuanceofamaximumof380,000,000fullypaid
registered shares with a nominal valueof USD 0.10 each, to be issuedthrough the voluntary or mandatoryexercise of
conversion rights and / or warrantsgranted in connection with the issuanceof bonds or similar financial instruments
byUBSGroupAGoranothermemberoftheGrouponnational orinternational capitalmarkets. Thisconditional
capital allowance was approved at the Extraordinary General Meeting (the EGM) held on 26 November 2014, having
originally been approved at the AGM of UBS AG on 14 April 2010. The BoD has not made use of such allowance.
–
ConditionalcapitalintheamountofUSD 12,170,583fortheissuanceofamaximumof121,705,830fullypaid
registered shares with anominal value of USD 0.10each, to beissued upon exercise ofemployee options and stock
appreciation rights issued to employeesand members of the managementand of the BoD ofUBS Group AG and its
subsidiaries;however,therewerenoemployeeoptionsorstockappreciationrightsoutstanding.Thisconditional
capital allowance was approved by the shareholders at the same EGM in 2014.
›
Refer to article 4a of the AoA for more information about the terms and conditions of the issue of sharesout of existing
conditional capital. The AoA are available at
ubs.com/governance
›
Refer to the “Our evolution” section of this report for more information
Annual Report 2025 |
Corporate governance and compensation | Corporate governance159
Conversion capital
On 31 December 2025, UBS GroupAG had conversion capital in the amountof USD 70,000,000, for the issuance ofa
maximum of 700,000,000 fully paid registered shares with a nominal value of USD 0.10 each. The issuance of fully paid
registered sharesonly occurs throughthe mandatory conversionof claims arisingupon the occurrenceof one ormore
trigger eventsunder financialmarket instrumentswith contingentconversion featuresissued byUBS GroupAG. The
creation of this conversion capital was approved at the AGM held on 24 April 2024.
›
Refer to article 4b of the AoA for more information about the terms and conditions of the issue of sharesout of existing
conversion capital – the AoA are available at
ubs.com/governance
Capital band and reserve capital
As of the date of this report, UBS Group AG had not introduced any capital band or any reserve capital.
Changes in capital
InaccordancewithIFRSAccountingStandards,GroupequityattributabletoshareholderswasUSD 90.2bnon
31 December 2025 (2024: USD 85.1bn;2023: USD 85.6bn). The equityof UBS Group AG shareholders wasrepresented
by3,341,581,714issuedshareson31 December2025(31 December2024:3,462,087,722;31 December2023:
3,462,087,722 issued shares).
›
Refer to “Statement of changes in equity” in the “Consolidated financial statements” section of this reportfor more information
about changes in shareholders’ equity over the last three years
Ownership
Ownership of UBSGroup AG shares iswidely spread. Thetables in thissection provide informationabout the distribution
ofUBSGroupAGshareholdersbycategoryandgeographiclocation.Thisinformationrelatesonlytoshareholders
registered in the UBS share register and cannot be assumed tobe representative of UBS Group AG’s entire investor base
or the actualbeneficial ownership. Onlyshareholders registeredin the UBSshare registeras “shareholders withvoting
rights” are entitled to exercise voting rights.
›
Refer to “Shareholders’ participation rights” in this section for more information
On 31 December 2025,1,321,894,722 UBSGroup AGshares wereregistered inthe UBSshare registerand carriedvoting
rights, 93,121,130shares wereregistered inthe UBS shareregister withoutvoting rights,and 1,926,565,862shares were
not registered inthe UBS shareregister. As ofthe same date,all such shareswere fully paidand eligible fordividends.
There are no preferential rights for shareholders, and no other classes of shares have been issued by UBS Group AG.
Shareholders, legal entities and nominees: type and geographical distribution (Shareholders registered)
Shareholders registered
As of 31 December 2025
Number
%
Individual shareholders
224,832
98.0
Legal entities
4,433
1.9
Nominees, fiduciaries
123
0.1
Total shareholders registered
229,388
100.0
Individual shareholders
Legal entities
Nominees
Total
Number
%
Number
%
Number
%
Number
%
Americas
2,275
1.0
121
0.1
68
0.0
2,464
1.1
of which: US
1,774
0.8
81
0.0
62
0.0
1,917
0.8
Asia Pacific
6,419
2.8
107
0.0
2
0.0
6,528
2.8
Europe, Middle East and Africa
14,970
6.5
288
0.1
21
0.0
15,279
6.7
of which: Germany
4,425
1.9
56
0.0
2
0.0
4,483
2.0
of which: UK
5,439
2.4
4
0.0
4
0.0
5,447
2.4
of which: rest of Europe
4,676
2.0
221
0.1
14
0.0
4,911
2.1
of which: Middle East and Africa
430
0.2
7
0.0
1
0.0
438
0.2
Switzerland
201,168
87.7
3,917
1.7
32
0.0
205,117
89.4
Total shareholders registered
224,832
98.0
4,433
1.9
123
0.1
229,388
100.0
Annual Report 2025 |
Corporate governance and compensation | Corporate governance160
Shareholders, legal entities and nominees: type and geographical distribution (Shares registered)
Shares registered
As of 31 December 2025
Number
%
Individual shareholders
329,945,577
9.9
Legal entities
516,336,356
15.5
Nominees, fiduciaries
568,733,919
17.0
Total shares registered
1,415,015,852
42.3
Total shares not registered
1,926,565,862
57.7
Total shares
3,341,581,714
100.0
Individual shareholders
Legal entities
Nominees
Total
Number
%
Number
%
Number
%
Number
%
Americas
2,075,663
0.1
58,596,540
1.8
368,260,304
11.0
428,932,507
12.8
of which: US
975,373
0.0
48,312,950
1.4
367,958,058
11.0
417,246,381
12.5
Asia Pacific
17,754,277
0.5
7,671,071
0.2
9,979,683
0.3
35,405,031
1.1
Europe, Middle East and Africa
37,162,280
1.1
33,497,648
1.0
183,707,201
5.5
254,367,129
7.6
of which: Germany
10,741,558
0.3
1,522,356
0.0
4,849,594
0.1
17,113,508
0.5
of which: UK
15,901,167
0.5
15,822
0.0
143,674,230
4.3
159,591,219
4.8
of which: rest of Europe
8,967,558
0.3
31,571,060
0.9
35,118,117
1.1
75,656,735
2.3
of which: Middle East and Africa
1,551,997
0.0
388,410
0.0
65,260
0.0
2,005,667
0.1
Switzerland
272,953,357
8.2
416,571,097
12.5
6,786,731
0.2
696,311,185
20.8
Total shares registered
329,945,577
9.9
516,336,356
15.5
568,733,919
17.0
1,415,015,852
42.3
Total shares not registered
0
0
0
1,926,565,862
57.7
Total shares
329,945,577
9.9
516,336,356
15.5
568,733,919
17.0
3,341,581,714
100.0
At year-end 2025, UBS owned249,882,523 UBS Group AG treasury shares, which correspondedto 7.48% of the total
share capital of UBS Group AG.At the same time, UBShad acquisition positions relating to275,102,479 voting rights of
UBS Group AG,including theaforementioned treasury shares,and disposalpositions relating to643,775,392 suchrights,
corresponding to 8.23% and 19.27%of the total votingrights of UBS Group AG,respectively. Of the disposal positions,
160,092,701 related to voting rights on shares deliverable in respect of employee awards. The calculation methodology
for the acquisition and disposal positions is based on the Ordinanceof the Swiss Financial Market Supervisory Authority
on Financial Market Infrastructuresand Market Conduct inSecurities and DerivativesTrading, which states that all future
potential share delivery obligations, irrespective of the contingent nature of the delivery, must be considered.
›
Refer to the “UBS shares” section of this report for more informationabout UBS Group shares
Employee share ownership
Employee share ownership is encouraged andmade possible in a varietyof ways. Our Equity Plus Planis a voluntary plan
that provides eligible employees with the opportunity to purchase UBS Group AG shares at market value and receive, at
no additionalcost, onenotional UBSGroup AGshare forevery threeshares purchased.Additional sharesvest aftera
maximumofthreeyears,providedtheemployeeremainsemployedbyUBSandhasretainedthepurchasedshares
throughout the holding period. The Equity Ownership Plan (the EOP) is a mandatory deferral plan for all employees that
are subjectto deferral requirements(regulatory-driven or totalcompensation greater thanUSD / CHF300,000) but do
notreceiveLTIPawards.EOPrecipientsreceiveaportionoftheirdeferredperformance awardinnotionalshares(or
notionalfundsundertheFundOwnershipPlanforemployeesinInvestmentAreaswithinAssetManagement).GEB
members andmost ManagingDirectors reportingto theGEB andtheir directreports atMD level
1
receive theequity-
based Long-Term Incentive Plan (the LTIP) instead of the EOP. Both the EOP and LTIP include employment conditions and
malus conditionsthat allowthe firmto reduceor fullyforfeit unvesteddeferred awardsunder certaincircumstances,
pursuant to performance and harmful acts provisions. Inaddition, forfeiture is triggered in cases where employment has
been terminated for cause. Underliningour emphasis on sustainable performanceand risk management, and to support
delivering on our ambitious integration goals and business /financial targets, LTIP awards will only vest if predetermined
performance conditions are met.
On 31 December 2025, UBS employees held at least 6.94% of UBS shares outstanding (including approximately 4.55%
in unvested deferred notional sharesfrom our compensation programs).These figures are based onknown shareholding
information from employee participation plans, personal holdings withUBS and selected individual retirement plans. At
the end of2025, at least28.24% ofall employeesheld UBSshares throughthe firm’semployee shareparticipation plans.
›
Refer to the “Compensation” section of this report for more information
Trading restrictions in UBS shares
UBSemployeeswithregularaccesstounpublishedprice-sensitiveinformationaboutthefirmaresubjecttospecific
restrictions in respect to UBS financial instruments, including, but not limited to,pre-clearance requirements and regular
blackout periods. Such UBS employees arenot permitted to trade UBSfinancial instruments in the periodstarting from
the closeof businessin NewYork on theseventh businessday ofthe finalmonth ofthe financialquarter ofUBS Group AG
and ending at close of business on the day of the publication of the quarterly financial results.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance161
Shares and participation certificates
UBS GroupAG hasa singleclass ofshares, whichare registeredshares inthe formof uncertificatedsecurities (inthe
sense ofthe SwissCode ofObligations). Eachregistered sharehas anominal valueof CHF 0.10and carriesone vote,
subject to the restrictions set out under “Transferability,voting rights and nominee registration” below.
We have no participation certificates outstanding.
UBS Group AG shares are listed on SIX and also onthe New York Stock Exchange (the NYSE)as global registered shares.
As such, theycan betraded and transferredacross applicable borders,without the needfor conversion, withidentical
shares traded on different stock exchanges in different currencies.
›
Refer to the “UBS shares”section of this report for more information
Distributions to shareholders
The decision to paya dividend and theamount of any dividenddepend on a varietyof factors, including ourprofits, cash
flow generation and capital ratios.
At the2026 AGM,the BoDis proposingto shareholdersfor approvala dividendof USD 1.10per sharefor the2025
financial year. Shareholders whose shares are held throughSIX SIS AG will receive dividends in Swiss francs,based on an
exchange rate published on theday prior to theex-dividend date. Shareholders holding sharesthrough The Depository
Trust Company in New York or Computershare will be paid dividends in US dollars.
In compliance with Swiss tax law, 50%of the dividend will be paidout of retained earnings and thebalance will be paid
outofthecapitalcontributionreserve.DividendspaidoutofcapitalcontributionreservesarenotsubjecttoSwiss
withholding tax. Theportion of thedividend paid outof retained earningswill be subjectto a 35%Swiss withholding
tax. For US federalincome tax purposes,we expect that thedividend will be paidout of current oraccumulated earnings
and profits.
If the proposed dividend distribution outof retained earnings and out ofthe capital contribution reserve isapproved at
the AGM on 15 April 2026, the payment of USD 1.10 (or the Swiss franc equivalent) per share will be made on 23 April
2026 toholders ofshares onthe recorddate 22 April2026 onSIX andthe NYSE.However, onSIX theshares willbe
traded ex-dividendas of21 April 2026,and, accordingly,the last dayon whichthe sharesmay betraded withentitlement
to receive the dividendwill be 20 April 2026.On the NYSE the shareswill be traded ex-dividendas of 22 April 2026,and
the last day on which the shares may be traded with entitlement to receive the dividend will be 21 April 2026.
The2022sharerepurchaseprogramwasconcludedattheendofitstwo-yeartermon28 March2024.Intotal,
298,537,950UBSGroupAGshareswererepurchased,representing8.62%oftheregisteredsharecapitalofUBS
Group AG at the time.The total repurchase volumeamounted to CHF 5,009,665,264 (USD5,244,697,247). On 12 April
2023, theSwiss TakeoverBoard hadapproved theuse ofup to178,031,942 sharesrepurchased underthe 2022program,
and originallyintended forcancellation, forthe acquisitionof the CreditSuisse Group.The remaining120,506,008 shares
repurchased were canceledby means ofa capital reduction,as approved bythe shareholders atthe 2025 AnnualGeneral
Meeting (the AGM). On 3 April 2024, UBSlaunched a two-year 2024 share repurchaseprogram of up to USD 2bnand
completed it on 23 May 2025. In total, 63,776,550UBS Group AG shares were repurchased, representing1.91% of the
currentregisteredsharecapitalofUBSGroupAG.ThetotalrepurchasevolumeamountedtoCHF 1,738,798,331
(USD 1,999,932,111). Allshares repurchasedunder thisprogram areintended tobe canceledby wayof capitalreduction,
which will be subject to shareholder approval at the AGM on 15 April 2026.
On 1 July2025, UBS launcheda two-year 2025share repurchase programof upto USD 2bn inUBS Group AGshares
and completedit on20 November 2025.In total,52,582,575 UBSGroup AGshares wererepurchased, representing
1.6%ofthecurrentregisteredsharecapitalofUBSGroupAG.Thetotalrepurchasevolumeamountedto
CHF 1,601,650,555 (USD 1,999,994,509).All sharesrepurchased underthis programare intendedto becanceled by
way of capital reduction, which will be subject to shareholder approval at a future AGM.
On 4 February 2026,UBS launched ashare repurchase programof up toUSD 3bn in UBSGroup AG shares.The program
started on5 February 2026and willend atthe lateston 4 February2028 orearlier ifeither themaximum amountof
USD 3bnhas beenreached or10% ofthe registeredsharecapital hasbeen repurchased.UBS intendsto repurchase
USD 3bn of sharesin 2026 withthe aim todo more. Theamount of additionalrepurchases is subjectto further clarity
around the future regulatory regime in Switzerland, UBS’s financial performanceand maintaining a CET1 capital ratio of
around 14%. Beyond 2026, UBS intends to continue to pursue share repurchases that will be calibrated based on UBS’s
financial results and capital ratio and the final outcome and timing of the implementation of the new regulatory regime
in Switzerland.
›
Refer to the “UBS shares” section of this report for more informationabout the share repurchase programs
Transferability, voting rights and nominee registration
Wedonotapplyanyrestrictionsorlimitationsonthetransferability ofUBSGroupAGshares.Votingrights maybe
exercised withoutany restrictionsby shareholdersentered intothe UBSshare registerif theyexpressly rendera declaration
of beneficial ownership according to the provisions of the AoA.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance162
We have special provisions for the registration of nominees. Nominees are entered in the UBS share register with voting
rights up toa total of5% ofall issued UBSGroup AG sharesif they agreeto disclose,upon our request,beneficial owners
holding 0.3%or moreof allissued UBSGroup AGshares. Anexception tothe 5%voting limitrule isin placefor securities
clearing organizations, such as The Depository Trust Company in New York.
›
Refer to “Shareholders’ participation rights” in this section for more information
Convertible bonds and options
UBS Group AG has issued additional tier 1 (AT1) instruments that have terms providing an equity conversion feature;on
31 December 2025, such instruments with an aggregate principal amount of USD 12.9bn equivalent were outstanding.
›
Refer to the “Capital management”section of this report for more information about our outstanding capital instruments
On31 December2025,therewerenoemployeeoptionsorstockappreciationrightsoutstanding.Option-based
compensation plansaresourcedbyissuingnewsharesoutofUBSGroupAG’sconditional capital.On31 December
2025, UBSGroup AGhad USD 12,170,583in conditionalcapital availablefor theissuance ofnew sharesfor thispurpose.
›
Refer to “Conditional capital” in this section for more information
›
Refer to “Note 26 Employee benefits: variable compensation” in the “Consolidated financial statements” section of thisreport for
more information about outstanding options and stock appreciation rights
1
Includes senior managerswho received LTIPawards for the2023 and 2024performance year andwho are nolonger reporting tothe GEB ortheir direct reportsat MD level,excludes MDs inAsset Management
Investment Areas (who receive the Fund Ownership Plan instead of the LTIP).
Shareholders’ participation rights
We are committedto shareholderparticipation indecision-making processes.Our onlinevoting platformoffers registered
shareholders a convenient log-in and online voting process. For the 2026 AGM, registeredshareholders will for the first
timebesentapersonalinvitationwithoutthecomprehensiveinvitationmaterialsbutcontainingtheformsforan
admission cardand votinginstructions, aswell asa personalone-time passwordand aQR codeto easilylog intothe
online voting platform,where they can entertheir voting instructionsor order an admissioncard for the generalmeeting
electronically.
Shareholderswhodonotexplicitlychoosetoreceivetheinvitation withtheformsforanadmissioncardandvoting
instructions, as wellas the personalone-time password areinformed of upcominggeneral meetings bya short letteronly
containingapersonalone-timepassword,aQRcodeforonlinevotingandareferenceto
ubs.com/agm
,
whereall
information for the upcoming meeting is available.
General meetings offer shareholdersthe opportunity to raisequestions for theBoD, the GEBand internal andexternal
auditors.
Voting rights, restrictions and representation
We place no restrictions on share ownership and voting rights. However,certain limitations apply to nominees pursuant
to general principles formulatedby the BoD. Nomineesnormally represent a large numberof individual shareholders and
may holdan unlimitednumber ofshares. Nomineeshave votingrights limitedto amaximum of5% ofall issuedUBS
Group AG shares if they agreeto disclose, upon our request, beneficial owners holding 0.3% ormore of all issued UBS
GroupAG shares.Any sharesabove the5% limit,or forwhich noagreement existsto disclosethe beneficiaries,are
entered in theshare register withoutvoting rights.This 5%limit has beenimplemented toavoid large shareholdersbeing
entered in theUBS shareregister vianominees so asto exercise influencewithout directly registeringtheir shares with
UBS. Anexception tothe 5%voting limitrule isin placefor securitiesclearing organizations,such asThe Depository
Trust Company in New York.
Shareholders canexercise votingrights conferredby sharesonly ifthey areregistered inour shareregister withvoting
rights. To register, shareholders mustconfirm that they have acquiredUBS Group AG shares intheir own name and for
their own account.
All shareholders registered with votingrights are entitled toparticipate in generalmeetings. If theydo not wish toattend
in person, theymay issue instructionsto support, reject orabstain for eachindividual item onthe meeting agenda,either
by giving instructions to an independent proxy in accordance with article 14of the AoA or by granting a written power
ofattorneytoathirdpersonoftheirchoice(whichdoesnotneedtobeashareholder)tovoteontheirbehalf.
Alternatively, registered shareholders may issue their voting instructions to the independent proxy electronically through
ouronlinevotingplatform.Nomineesnormallysubmittheproxymaterialtothebeneficialownersandforwardthe
collected votes to the independent proxy.
›
Refer to article 14 of the AoA, available at
ubs.com/governance
, for more information about the issuing of instructions to
independent voting right representatives
Annual Report 2025 |
Corporate governance and compensation | Corporate governance163
Statutory quorums
Motions are decided at a generalmeeting by a majority ofthe votes represented, excluding blank andinvalid ballots. For
the approval of certain specific issues,the Swiss Code of Obligations requiresa positive vote from a two-thirdsmajority
of the votesrepresented atthe given generalmeeting and froma majority ofthe nominal valueof shares represented
thereat. Such issues include creating shares with privileged votingrights, introducing restrictions on the transferability of
registered shares, creating conditional capital or introducing a capital bandor reserve capital and restricting or excluding
shareholders’ preemptive rights.
The AoA also require a two-thirds majority of votes represented for approval of any change to their provisions regarding
the number of BoD members,any decision to remove one-quarteror more of the BoDmembers and any modification to
the provision establishing this qualified quorum.
Votes and elections are generally conducted electronically to ascertain the exactnumber of votes represented. Voting by
ashowofhandsispossibleifaclearmajorityispredictable.Shareholdersrepresentingatleast3%ofthevotes
represented may requestthat a vote orelection be carried out electronicallyor by written ballot. Toallow shareholders
to clearly express their views on all individual topics, each agenda item is separately put to a vote and BoD members are
elected on a person-by-person basis.
Convocation of general meetings of shareholders
The AGMmust beheld within sixmonths ofthe closeof thefinancial year(i.e. 31 December). In2026, theAGM will
take place on 15 April.
Extraordinarygeneralmeetings(EGMs)maybeconvenedwhenevertheBoDortheauditorsconsideritnecessary.
Shareholders individuallyor jointlyrepresenting atleast 5%of theshare capitalmay atany time,including duringan
AGM, require, by way of a written statement, that an EGM be convened to address a specific issue they put forward.
Apersonalinvitation, includingadetailed agenda,is madeavailableto everyregisteredshareholderatleast20days
ahead of each scheduledgeneral meeting. The itemson the agenda arealso published in theSwiss Official Gazetteof
Commerce, as well as at
ubs.com/agm.
Placing of items on the agenda
Pursuant to the AoA, shareholders individually or jointly representing shares with an aggregate minimum nominal value
of USD 62,500 may submit requests for items to be placed on the agendafor consideration at the next general meeting
of shareholders or for motions relating to agenda items to be included in the notice to convene the general meeting.
In January of eachyear,the invitation to submitsuch agenda items or motionsrelating to agenda itemsis published in
the Swiss Official Gazette ofCommerce and at
ubs.com/agm.
Requests for motions relating to agenda itemsand items
to be placed on the agenda must include the actual motions to be put forward, together with a short explanation. Such
requests must besubmitted to theBoD no laterthan the deadlinepublished by UBSGroup AG, includinga statement
from the depository bankconfirming the number of sharesheld by the requesting shareholder(s)and that these shares
are blockedfrom saleuntil theend ofthe generalmeeting ofshareholders. TheBoD formulatesopinions onsuch requests
from shareholders, which are published together with the motions from the BoD.
Registrations in the UBS share register
The UBS share register, where around 241,578 UBS Group AG shareholders are directly registered on 24 February 2026,
isaninternal,non-publicregistersubjecttostatutoryconfidentiality,secrecy,privacyanddataprotectionregulations
protecting registeredshareholders. Ingeneral, thirdparties andshareholders haveno inspectionrights withregard to
data related to other shareholders. Disclosure of suchdata is permitted only in specific and limitedinstances. In line with
the Swiss Federal Act on Data Protection, the disclosure of personal data as defined thereunder is only allowed with the
consent ofthe registered shareholderand incases wherethere is anoverriding private orpublic interest orif explicitly
provided forby Swisslaw. TheSwiss FederalAct onFinancial MarketInfrastructures andMarket Conductin Securities
andDerivativesTradingcontainsspecificreportingduties,suchasinrelationtosignificantshareholders(referto
“Significant shareholders” in this section for more information). Disclosure may also be required or requested by a court
of a competentjurisdiction, by anyregulatory body thatregulates the conductof UBS GroupAG or byother statutory
provisions.
The general rules forentry into our Swissshare register with voting rightsare described in article 5of our AoA. Thesame
rulesapplyto ourUStransfer agentthatoperatesthe USshareregisterfor allUBS GroupAG sharesin acustodian
account in the US,where some 634,439US shareholders are indirectlyregistered via nominees on22 January 2026. In
order to determine the voting rights of each shareholder, our share register generally closes two business days prior to a
general meeting.Our independentproxy agentprocesses votinginstructions fromshareholders aslong astechnically
possible, generallyalso untiltwo businessdays beforea generalmeeting. Suchtechnical closureof ourshare register
facilitates the determination of the actual voting rights of every shareholder that issued a voting instruction. Irrespective
of this technical closure, shares that are registered in our share register are never immobilized and such closure does not
affect the tradability of such shares at any time, irrespective of any issued voting instructions.
›
Refer to article 5 of our AoA, available at
ubs.com/governance
, for more information about the general rules for entry into the
UBS share register
Annual Report 2025 |
Corporate governance and compensation | Corporate governance164
Board of Directors
The Board of Directors of UBS Group AG (theBoD), led by the Chairman,consists of between 6 and 12members, as per
our AoA.
The BoD decides on the strategy of theGroup, upon recommendation by the Group Chief Executive Officer(the Group
CEO), andis responsiblefor theoverall direction,supervision andcontrol ofthe Groupand itsmanagement. Itis also
responsible for supervising compliance with applicable laws,rules and regulations. The BoD exercises oversight overUBS
Group AGand itssubsidiaries, andis responsiblefor establishinga clearGroup governanceframework toprovide effective
steering and supervision of theGroup, taking into account thematerial risks to which UBSGroup AG and its subsidiaries
are exposed. The BoD has ultimate responsibility for the success of the Group and for delivering sustainable shareholder
value withina frameworkof prudentand effectivecontrols. Itapproves allfinancial statementsand appointsand removes
all members of the Group Executive Board.
Members of the Board of Directors
At theAGM on10 April2025, ColmKelleher wasre-electedas Chairmanof theBoardand LukasGähwiler,Jeremy
Anderson, WilliamC. Dudley, Patrick Firmenich,Fred Hu, MarkHughes, GailKelly, Julie G. Richardsonand JeanetteWong
werere-electedasmembersoftheBoD.RenataJungoBrünggerandLilaTretikovwereelectedtotheBoDasnew
members. At that sameAGM, Julie G. Richardsonand Jeanette Wong were re-electedand Gail Kelly electedas members
of theCompensation Committee.
ADB AltorferDuss &Beilstein AGwas re-electedas independentproxy agent.Following
their election, theBoD appointed LukasGähwiler as ViceChairman and JeremyAnderson as SeniorIndependent Director
of UBS GroupAG. On 1 July2025, Markus Baumannretired asthe GroupCompany Secretaryof UBS GroupAG, and
the BoD appointed Michael Schoch as the new Group Company Secretary of UBS Group AG.
On 24 October 2025, theBoD announced that LukasGähwiler would not standfor re-election at theforthcoming AGM,
deciding toretire aftera45-year careerin financialservices andserving onthe BoDforfour years,and thatMarkus
Ronner would be nominated for election to the BoD at the sameAGM. Markus Ronner has been a member of the GEB
since 2018 and was Group Chief Compliance and Governance Officer until 31 December 2025.
On 27 February 2026, the BoD announced thatWilliam C. Dudley and Jeanette Wonghad decided to not stand forre-
election, each after seven years of service on the BoD. At the forthcoming AGM, Agustín Carstens and LucaMaestri will
benominatedforelectiontotheBoD.AgustínCarstensservedasGeneralManageroftheBankofInternational
Settlements from2017 to2025 andformerly wasGovernor ofthe Bankof Mexico.Luca Maestricurrently holdsthe
position of Vice President of Corporate Services at Apple Inc. and earlier served as its CFO for over 10 years.
Article 31of ourAoA limitsthe numberof mandatesthat membersof theBoD mayhold outsideUBS Groupto four
mandates inlisted companiesand fiveadditional mandatesin non-listedcompanies. Mandatesin companiesthat are
controlled by us or that control us are not subject to this limitation. In addition, members of the BoD may hold no more
than 10 mandates atUBS’s request and 10mandates in associations, charitable organizations,foundations, trusts, and
employee welfare foundationswithout commercial purpose.On 31 December 2025,no member ofthe BoD reachedany
of these thresholds.
ThefollowingbiographiesprovideinformationabouttheBoDmemberswhowereinofficeafterthe2025AGM.In
additiontoinformationonmandates,thebiographiesincludeinformationonmembershipsorotheractivitiesor
functions, as required by the SIX Swiss Exchange Corporate Governance Directive.
ubs-20251231p189i0
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Corporate governance and compensation | Corporate governance165
Colm Kelleher
Chairman of the Board of Directors,independent and non-
executive member of the Board since 2022
–
Chairperson of the Corporate Culture and Responsibility Committee
of UBS Group AG since 2022
–
Chairperson of the Governance and Nominating Committee of UBS
Group AG since 2022
Nationality:
Irish |
Year of birth:
1957
Colm Kelleher waselected Chairman ofUBS in April2022. In March2023,
heledthesuccessfulnegotiationsfor UBStoacquiretheCreditSuisse
Group. He servedas President ofMorgan Stanley untilretiring from that
firmin2019,overseeingboththeInstitutionalSecuritiesBusinessand
WealthManagement.Beforethat,hewasCo-Presidentandthen
PresidentofMorganStanleyInstitutionalSecurities.Duringtheglobal
financialcrisis,heheldthepositionofCFOandCo-HeadCorporate
Strategy from 2007 to 2009. Mr. Kelleher is a well-respected leader inthe
financial services sector. His 30-year career with Morgan Stanley atteststo
hissolidleadershipexperienceinbankingandexcellentrelationships
aroundthe world.He hasa deepunderstanding ofthe globalbanking
landscapeandbroadbankingexperienceacrossallthegeographical
regions and major business areas in which UBS operates.
Professional experience
2016 – 2019
President,Morgan Stanley, responsiblefor Institutional
Securities and Wealth Management
2011 – 2016
CEO of Morgan Stanley International, Morgan Stanley
2013 – 2015
President, Institutional Securities, Morgan Stanley
2010 – 2012
Co-President, Institutional Securities, Morgan Stanley
2007 – 2009
CFO and Co-Head Corporate Strategy,Morgan Stanley
2006 – 2007
Head Global Capital Markets, Morgan Stanley
2004 – 2006
Co-Head Fixed Income, Europe, Morgan Stanley
1989 – 2004
Various roles, Morgan Stanley
Education
–
Master’s degree, modern history, theUniversity of Oxford
–
Fellow of the Institute of Chartered Accountants in England and
Wales
Other activities and functions
–
Chairman of the Board of Directors of UBS AG
–
Member of the Board of Directors of the Bretton WoodsCommittee
–
Member of the Board of the Swiss Finance Council
–
Member of the Board of the International Monetary Conference
–
Member of the Board of the Bank Policy Institute
–
Member of the Board of Americans for Oxford
–
Visiting Professor of Banking and Finance, Loughborough Business
School
–
Member of the European Financial Services Round Table
–
Member of the European Banking Group
–
Member of the International Advisory Council of the China Securities
Regulatory Commission
–
Member of the Chief Executive’s Advisory Council (Hong Kong)
Key competencies
–
Banking (wealth management, asset management, personal and
corporate banking)and insurance
–
Investment banking, capital markets
–
Finance, audit, accounting
–
Risk management, compliance and legal
Leadership experience
–
CEO, Chairman
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Lukas Gähwiler
Vice Chairman, non-independent and non-executive
member of the Board since 2022
–
Member of theGovernanceand NominatingCommittee ofUBS Group
AG since 2023
–
Member of the Risk Committee of UBS Group AG and UBS AG
since 2023
Nationality:
Swiss |
Year of birth:
1965
Lukas Gähwilerbrings awealth ofindustry experienceandanin-depth
understanding ofUBStotheBoardofDirectorsofUBS.Heservedas
Chairman oftheBoardofUBSSwitzerland AGforfiveyearsandwas
previously a member ofthe Group Executive Boardof UBS andPresident
UBS Switzerland, responsible for theprivate clients, wealth management,
corporateandinstitutionalclients,investmentbanking,andasset
management businesses inUBS’s homemarket. Beforejoining UBS,Mr.
Gähwiler workedfor Credit Suisse forover twenty years,his last role being
Chief Credit Officer, Global Private andCorporate Banking. In addition to
hisleadershipandindustryexperienceacrossallpartsofthebanking
business, his strong connections andnetwork, particularly in Switzerland,
are instrumentalfor thefirm.Afterthe acquisitionof theCreditSuisseGroup
in 2023, Mr. Gähwilerserved as Chairmanof Credit SuisseAG.
Professional experience
2023 – 2024
Chairman of the Board of Directors of Credit Suisse AG
2017 – 2022
Chairman of the Board of Directorsof UBS Switzerland AG
2010 – 2016
Member of the Group Executive Board,
UBS and President UBS Switzerland
2003 – 2010
Chief Credit Officer,Global Private and Corporate
Banking, Credit Suisse
2002 – 2003
Head Credit Risk Management, Corporate Clients
Switzerland, Credit Suisse
1998 – 2001
Chief of Staff to CEO, Private and Corporate Clients,
Credit Suisse
1990 – 1998
Various senior front office rolesin Corporate Clients in
Switzerland and North America, Credit Suisse
1981 – 1986
Client Advisor Retail and Wealth Management,
St.Galler Kantonalbank
Education
–
Advanced Management Program, Harvard Business School
–
MBA program, International Bankers School, New York
–
Bachelor’s degree, business administration, University of Applied
Sciences, St. Gallen
Non-listed company boards
–
Vice Chairman of the Board of Directors of Pilatus Aircraft Ltd
–
Member of the Board of Directors of Ringier AG
Other activities and functions
–
Vice Chairman of the Board of Directors of UBS AG
–
Member of the Board and Board Committee of economiesuisse
–
Chairman of the Employers Association of Banks in Switzerland
–
Member of theBoard of Directorsof the SwissEmployers Association
–
Member of the Board of Directors and the Board of Directors
Committee of the Swiss Bankers Association
–
Member of the Board of the Swiss Finance Council
–
Member of the Board of Trusteesof Avenir Suisse
Key competencies
–
Banking (wealth management, asset management, personal and
corporate banking)and insurance
–
Finance, audit, accounting
–
Risk management, compliance and legal
–
Human resources management, including compensation
Leadership experience
–
CEO, Chairman
Jeremy Anderson
Senior Independent Director since 2020,independent and non-
executive member of the Boardsince 2018
–
Chairperson of the Audit Committee of UBS Group AG and UBS AG
since 2018
–
Member of the Governance and Nominating Committee of UBS
Group AG since 2019
Nationality:
British |
Year of birth:
1958
Jeremy Anderson is a financial services veteran,with more than 30 years’
experienceworking inthe bankingand insurancesector inan advisory
capacity,covering abroad rangeof topics,including strategy,audit and
risk management, technology-enabledtransformation, mergers, andbank
restructuring. Before retiring from KPMG in 2017, he was its Chairman of
Global Financial Services. Mr. Anderson is also an ITexpert, having started
outasasoftwaredeveloperintheearly1980s,beforeworkinginIT
consulting and developing a broad knowledge of systems integration and
IT outsourcing services, aswell as software development.He cemented his
reputation as a techspecialist by becominga founding sponsorof KPMG’s
Global Fintech Network in 2014.
Professional experience
2010 – 2017
Chairman of Global Financial Services, KPMG International
2008 – 2011
Head of Clients and Markets KPMG Europe, KPMG
International
2006 – 2011
Head of Financial Services KPMG Europe, KPMG
International
2004 – 2006
Head of Financial Services KPMG UK, KPMG International
2002 – 2004
Member of the Group Management Board and Head of
UK operations, Atos Origin SA
1985 – 2002
KPMG consulting UK, KPMG
1980 – 1985
Software developer,Triad Computing Systems
Education
–
Bachelor’s degree, economics, University College London
Listed company boards
–
Member of the Board of Prudential plc (chair of the risk committee)
Non-listed company boards
–
Chairman of Lamb’s Passage Holding Ltd
Other activities and functions
–
Member of the Board of Directors of UBS AG
–
Member of the Board of Credit Suisse International
–
Trustee of the UK’s ProductivityLeadership Group
Key competencies
–
Banking (wealth management, asset management, personal and
corporate banking)and insurance
–
Finance, audit, accounting
–
Risk management, compliance and legal
–
Technology,including artificial intelligence and cybersecurity
Leadership experience
–
Executive board leadership
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William C. Dudley
Independent and non-executive member of the Board since 2019
–
Member of the Corporate Culture and Responsibility Committee of
UBS Group AG since 2019
–
Member of the Risk Committee of UBS Group AG and UBS AG
since 2019
Nationality:
American (US) |
Year of birth:
1953
William C. Dudley served as the President and CEO of the Federal Reserve
Bank of New York for nine years. He demonstratedexceptional leadership
in monetarypolicy andas atop regulator,including duringthe yearsof
the global financial crisis.During that period, his additionalarea of focus
includedculturalbehaviorandsocialandgovernancetopicsinthe
financialservicesindustry.HealsoservedastheViceChairmananda
permanent member of theFederal Open Market Committee.Mr. Dudley
brings a wealthof experience inbanking and researchthanks to hisformer
management positionsat GoldmanSachs Groupand MorganGuaranty
Trust.
Professional experience
2009 – 2018
President and CEO, the Federal Reserve Bank of New York
2007 – 2009
Executive Vice President and Head Markets Group,
the Federal Reserve Bank of New York
2006
Senior advisor (part-time), Goldman Sachs Group
2002 – 2005
Partner and Director US Economic Research Group,
Goldman Sachs Group
1996 – 2002
Managing Director and Director US Economic Research
Group, Goldman Sachs Group
1983 – 1996
Economist at Goldman Sachs Group, Morgan Guaranty
Trust Company,and Board of Governors of the Federal
Reserve System
Education
–
Bachelor of Arts, New College of Florida
–
Doctorate, economics, University of California, Berkeley
Listed company boards
–
Member of the Global Advisory Council of Coinbase
Non-listed company boards
–
Member of the Advisory Board of Suade Labs
Other activities and functions
–
Member of the Board of Directors of UBS AG
–
Senior Advisor to the Griswold Center for Economic Policy Studies,
Princeton University
–
Member of the Group of Thirty
–
Member of the Council on Foreign Relations
–
Chairman of the Bretton Woods Committee Board of Directors
–
Member of the Board of the Council for Economic Education
Key competencies
–
Investment banking, capital markets
–
Risk management, compliance and legal
–
Regulatory authority, central bank
–
Environmental, social and governance (ESG)
Leadership experience
–
CEO, Chairman
Patrick Firmenich
Independent and non-executive member of the Board since 2021
–
Member of the Audit Committee of UBS Group AG and UBS AG
since 2021
–
Member of the Corporate Culture and Responsibility Committee
of UBS Group AG since 2021
Nationality:
Swiss |
Year of birth:
1962
Patrick Firmenichwas Chairmanof theBoard ofFirmenich International
SA, a privatelyowned fragrances andflavorings company,from 2016 to
2023 andits CEOfor 12years.In2023,he becameVice Chairmanof
dsm–firmenich,alistedcompany.Hehasdemonstratedhis
entrepreneurialleadershipbysignificantlyadvancingtheFirmenich
group’sglobalpositionthroughorganicandin-organicgrowthand
succeededin transformingthe organizationto continuouslyrespondto
clientneedsandthemarketenvironment.Hedevelopedanambitious
sustainability strategy forthe group tolead the industryin health, safety
and environmental performance. Before joiningFirmenich, he held several
positionsinthelegalandbankingsectors,includingworkingasan
international investment banking analyst.
Professional experience
2016 – 2023
Chairman of the Board of Firmenich International SA,
Geneva
2014 – 2016
Vice Chairman of the Board, Firmenich International SA,
Geneva
2002 – 2014
CEO, Firmenich SA, Geneva
2001 – 2002
Corporate Vice President, Special Operations,
Firmenich SA, Geneva
1997 – 2001
Vice President Fine Fragrance worldwide and
Président Directeur Général, Firmenich & Cie, Paris,
and Firmenich Inc, New York
1993 – 1997
Vice President Fine Fragrance North America,
Firmenich Inc, New York
1990 – 1993
Account Manager, Firmenich & Cie, Paris
1988 – 1989
Analyst, International Investment Banking, Credit Suisse
First Boston
1988
Production administrator,Firmenich SA de CV,Mexico
1984 – 1986
Attorney, Business Law,Patry, Junet, Simon & Le Fort,
Geneva
Education
–
Master’s degree, law, University of Geneva, admittedto the bar
in Geneva
–
MBA, INSEAD Fontainebleau
Listed company boards
–
Vice Chairman of the Board of dsm–firmenich (chair of the
governance and nomination committee)
Other activities and functions
–
Member of the Board of Directors of UBS AG
–
Member of the Advisory Council of the Swiss Board Institute
Key competencies
–
Finance, audit, accounting
–
Risk management, compliance and legal
–
Human resources management, including compensation
–
Environmental, social and governance (ESG)
Leadership experience
–
CEO, Chairman
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Fred Hu
Independent and non-executive member of the Board since 2018
–
Member of the Governance and Nominating Committee of UBS
Group AG since 2020
Nationality:
Chinese |
Year of birth:
1963
Fred Hu has been the Chairman and CEO of PrimaveraCapital Group, an
Asia-based private investment firmfocused on emerging technologyand
innovative industries,since foundingit in2010. Inthat rolehe oversees
theoverallstrategy,talentdevelopment,andcultureandassumesthe
primaryresponsibilitiesforestablishingandmaintainingthelong-term
partnershipswithglobalinvestors.Priortothat,hewasaPartnerand
Chairman forGreater Chinaat GoldmanSachs. Mr.Hu hasa profound
understandingofChina’seconomyandrapidlydevelopingfinancial
system,andavastamountofexperienceinfounding,advisingand
investing in leading firms in the tech, consumer and health-care sectors in
China andglobally.He hasworked atthe IMFand advisedthe Chinese
government on economic policy.
Professional experience
2010 – date
Founder, Chairman and CEO, PrimaveraCapital Group,
China
2008 – 2010
Partner and Chairman of Greater China, Goldman Sachs
2004 – 2008
Partner and Co-Head, Investment Banking, China,
Goldman Sachs
Education
–
Master’s degree, engineering science, TsinghuaUniversity
–
Master’s degree and doctorate, economics, Harvard University
Listed company boards
–
Non-executive Chairman of the Board of YumChina Holdings (chair of
the nomination and governance committee)
–
Member of the Board of Chubb Limited
Non-listed company boards
–
Chairman of Primavera Capital Ltd
Other activities and functions
–
Member of the Board of Directors of UBS AG
–
Trustee of the China Medical Board
–
Member of the Global Board of The Nature Conservancy and Co-
Chairman of its Asia Pacific Council
–
Member of the Board of Trustees,the Institute for Advanced Study
Key competencies
–
Banking (wealth management, asset management, personal and
corporate banking)and insurance
–
Investment banking, capital markets
–
Technology,including artificial intelligence and cybersecurity
–
Regulatory authority, central bank
Leadership experience
–
CEO, Chairman
Mark Hughes
Independent and non-executive member of the Board since 2020
–
Chairperson of the Risk Committee of UBS Group AG and UBS AG
since 2020
–
Member of the Corporate Culture and Responsibility Committee
of UBS Group AG since 2020
Nationality:
Canadian, British and American (US) |
Year of birth:
1958
Mark Hughes is a highly experienced professionalin the financial services
sector, having spent more than 35 years working for RBC (the Royal Bank
of Canada) in Canada, the US and the UK. In his final role as Group Chief
Risk Officer of RBC,he was responsiblefor the strategic managementof
risk on an enterprise-wide basis and oversaw all risk functions. During his
career, Mr. Hughes has also heldsenior management positionsin thefront
office and key operational roles. Currently, he is a frequent lecturer at the
Universityof Leedsand theUniversityofManchester(bothin England)
and is Director Emeritusof the Global RiskInstitute, bringing an enormous
amount of experience as a risk specialist to the Board of Directors of UBS.
Professional experience
2014 – 2018
Group Chief Risk Officer and member
Group Executive Committee, RBC
2013
Deputy Chief Risk Officer,RBC
2008 – 2013
COO, RBC Capital Markets, RBC
2001 – 2008
Head of Global Credit, RBC
1999 – 2001
Head of Debt Products, RBC
1998 – 1999
Senior Vice President and General Manager USA, RBC
1997 – 1998
Senior Vice President Financial Services, RBC
1982 – 1996
Various positions, RBC
Education
–
Bachelor of Laws (LL.B.), University of Leeds
–
MBA, finance, University of Manchester
Other activities and functions
–
Member of the Board of Directors of UBS AG
–
Senior advisor to McKinsey & Company
Key competencies
–
Banking (wealth management, asset management,
personal and corporate banking) and insurance
–
Investment banking, capital markets
–
Risk management, compliance and legal
–
Technology,including artificial intelligence and cybersecurity
Leadership experience
–
Executive board leadership
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Renata Jungo Brüngger
Independent and non-executive member of the Board since 2025
–
Member of the Corporate Culture and Responsibility Committee of
UBS Group AG since 2025
Nationality:
Swiss |
Year of birth:
1961
Renata JungoBrüngger isa highlyrespected professionalwith extensive
experienceinlegalaffairs,governance,integrityandsustainability.She
wasamemberoftheBoardofManagementofDaimlerAG(now
Mercedes-BenzGroupAG)from2016toOctober2025.Her
responsibilities include theareas of integrity, governanceand sustainability
throughout theMercedes-Benz GroupAG, itsgroup’s legaldepartment
and thecompliance, legalproduct andtechnology organization,as well
ascorporatedataprotectionandcorporateaudit.Shewasalso
responsibleforoverseeingtheimplementationofintegrityand
sustainabilitymanagementacrossthecompany.Ms.JungoBrüngger
joinedtheformerDaimlerAGasHeadofLegalandExecutiveVice
Presidentin2011.Previously,shewasGeneralCounselforCorporate
EMEAandVicePresident/GeneralCounselforEmersonProcess
Management EMEA, EmersonElectric (Switzerland andthe US) andbefore
that worked for the legal department of Metro Holding AG and the Swiss
law firm Bär & Karrer.
Professional experience
2019 –
October 2025
Member of the Board of Management for Integrity,
Governance & Sustainability, MercedesBenz Group AG
(formerly Daimler AG) and Mercedes Benz AG
2016 – 2019
Member of the Board of Management for Integrity & Legal
Affairs, Daimler AG
2011 – 2015
Head of Legal and Executive Vice President, Daimler AG
2000 – 2011
General Counsel Corporate EMEA & Vice
President / General Counsel Emerson Process Management
EMEA, Emerson Electric
1995 – 2000
Corporate Legal Counsel, Divisional Director,Metro
Holding AG
1994
Secondment, Sidley & Austin
1990 – 1994
Lawyer (associate), Bär & Karrer
Education
–
Masters of Laws (LL.M.) in international commercial law, University
of Zurich
–
Admission to the bar
–
Licentiate (bilingual German / French) in Law (Lic. iur.),University
of Fribourg
Listed company boards
–
Member of the Supervisory Board of Daimler TruckHolding AG
–
Member of the Supervisory Board of Daimler TruckAG
–
Member of the Supervisory Board of Munich Re (chair of
remuneration committee)
Other activities and functions
–
Member of the Board of Directors of UBS AG
–
Member of the Board of Trusteesof Internationale Bachakademie
Stuttgart
–
Member of the Board of Trusteesof Gesellschaft der Freunde von
Bayreuth e. V.(Friends of Bayreuth)
Key competencies
–
Finance, audit, accounting
–
Risk management, compliance and legal
–
Human resources management, including compensation
–
Environmental, social and governance (ESG)
Leadership experience
–
Executive board leadership
Gail Kelly
Independent and non-executive member of the Board since 2024
–
Member of the Compensation Committee of UBS Group AG and UBS
AG since 2025
–
Member of the Governance and Nominating Committee of UBS
Group AG since 2024
Nationality:
Australian |
Year of birth:
1956
Gail Kellybrings tothe boardmore than35 yearsof executivefinancial
services experience in South Africa andAustralia. She served as the Group
CEO and Managing Director for two banks in Australia: St. GeorgeBank,
from2002to2007,followedbyWestpacBankingCorporation,from
2008 to2015. Duringher tenureas CEO,Ms. Kellynavigated Westpac
through the challenges of the global financialcrisis in 2008 and 2009and
the successful merger withSt. George Bank in2008, the largest in-market
financialservicesmergerinAustralia.Westpac’smarketcapitalization
more thandoubled overher tenureas CEO.After herexecutive career,
Ms. Kelly continues to hold a portfolio of roles, leveraging her experience
and insights asa global leader.She was aSenior Global Advisorfor UBS
from 2016 to 2023.
Professional experience
2008 – 2015
Group CEO and Managing Director,
Westpac Banking Corporation
2002 – 2007
Group CEO and Managing Director,St. George Bank
1999 – 2001
Group Executive, Customer Service Division,
Commonwealth Bank of Australia
1997 – 1999
Group Manager,Strategic Marketing, Commonwealth
Bank of Australia
1990 – 1997
Various General Manager positions, Nedbank Group,
South Africa
Education
–
Bachelor of Arts, the University of Cape Town
–
MBA, University of Witwatersrand,Johannesburg
Listed company boards
–
Member of the Board of Singtel Communications (chair of the
executive resource and compensation committee)
Other activities and functions
–
Member of the Board of Directors of UBS AG
–
Member of the Group of Thirty
–
Member of the Board of Directors of the Bretton WoodsCommittee
–
Member of the Australian American Leadership Dialogue Advisory
Board
–
Senior advisor to McKinsey & Company
Key competencies
–
Banking (wealth management, asset management, personal and
corporate banking) and insurance
–
Investment banking, capital markets
–
Human resources management, including compensation
–
Regulatory authority, central bank
Leadership experience
–
CEO, Chairman
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Julie G. Richardson
Independent and non-executive member of the Board since 2017
–
Chairperson of the Compensation Committee of UBS Group AG and
UBS AG since 2019
–
Member of the Risk Committee of UBS Group AG and UBS AG since
2017
Nationality:
American (US) |
Year of birth:
1963
Julie G.Richardson spentmore than25 yearson WallStreet asa senior
investment bankerand privateequity investor,with afocus ontelecom,
mediaandtechnology.ShebeganhercareeratMerrillLynch,before
moving to JPMorganChase, where sheheaded the telecommunications,
media and technologyinvestment banking group.Later,she moved into
private equity, as head, and subsequently senior advisor,of the New York
officeofProvidenceEquityPartners,whereshespearheadedmany
importantinvestmentsandbuyouts.Throughouthercareer,Ms.
Richardson hasspent substantialamounts oftime withboth incumbent
and new technology companies, actingas an independent board member
of a digitalknowledge management company, a leadingcloud monitoring
firm and a cyber insurance company.
Professional experience
2012 – 2014
Senior advisor, ProvidenceEquity Partners, New York
2003 – 2012
Partner and Head of the New Yorkoffice,
Providence Equity Partners, New York
1998 – 2003
Vice Chairman of the Investment Banking division of
JPMorgan Chase & Co. and Head of its Global
Telecommunications,Media and Technologygroup
1986 – 1998
Various positions at Merrill Lynch, finalposition: Managing
Director Media and Communications Investment Banking
Education
–
Bachelor’s degree, business administration, University of
Wisconsin–Madison
Listed company boards
–
Member of the Board of BXP
–
Member of the Board of Datadog (chair of the audit committee)
Non-listed company boards
–
Member of the Board of Fivetran
–
Member of the Board of Coalition, Inc.
Other activities and functions
–
Member of the Board of Directors of UBS AG
Key competencies
–
Investment banking, capital markets
–
Risk management, compliance and legal
–
Human resources management, including compensation
–
Technology,including artificial intelligence and cybersecurity
Lila Tretikov
Independent and non-executive member of the Board since 2025
–
Member of the Audit Committee of UBS Group AG and UBS AG since
2025
Nationality:
American (US) and French |
Year of birth:
1978
LilaTretikoviswidelyrecognizedasaleadingauthorityonartificial
intelligence(AI)andtechnology-drivenbusinesstransformation.She
currently servesas aPartner atNew EnterpriseAssociates, Inc.(NEA), a
prominent Silicon Valley venture capital firm, where she leads AI strategy.
From 2018 to 2024, Ms. Tretikovheld senior executive roles at Microsoft
Corporation,culminatinginherpositionasDeputyChiefTechnology
Officer,overseeingmajorAIinitiativesthatdrovesignificantstrategic
transformation.Priortothat,sheservedasSeniorVicePresidentand
CEO &ViceChairTerrawattatEngieSA,aglobalenergycompany
headquartered inFrance. Earlierin hercareer,Ms. Tretikovwas CEOof
the WikimediaFoundation & WikipediaEndowment, where shepioneered
Wikipedia’sAIstrategy.Adistinguishedsoftwareengineerand
programmer,shecontinuestoshapethelandscapeofAIadoption,
innovation and policy worldwide.
Professional experience
2024 – date
Partner and Head of Artificial Intelligence Strategy,New
Enterprise Associates, Inc.
2020 – 2024
Corporate Vice President and Deputy Chief Technology
Officer, MicrosoftCorporation
2018 – 2020
Corporate Vice President, Artificial Intelligence, Perception
and Mixed Reality, MicrosoftCorporation
2016 – 2018
Senior Vice President and CEO & Vice Chair
Terrawatt, EngieSA / Terrawatt initiative
2014 – 2016
CEO, WikimediaFoundation& WikipediaEndowment
2007 – 2014
Chief Product Officer and Chief Officer of product,
marketing, cloud infrastructure, IT,support and services,
SugarCRM
2005 – 2007
General Manager, mobileand software,Evolving Systems
2004 – 2005
General Manager, risk & compliance,SOX digital, Bank of
America Corporation
1993 – 2004
Various technical roles, early career
Education
–
Computer science (specializing in AI) and visual art, the University of
California, Berkeley
–
Post-graduate-level studies at the University of Oxford Saïd Business
School and University of Stanford Directors’College
Listed company boards
–
Member of the Board of Capgemini SE
–
Member of the Board of Volvo Car Corporation
–
Member of the Board of Xylem Inc.
Non-listed company boards
–
Member of the Board of Zendesk Inc.
–
Member of the Board of Backflip AI, Inc.
–
Member of the Board of Cusp AI Limited
–
Member of the Board of Horizon 3 AI, Inc.
Other activities and functions
–
Member of the Board of Directors of UBS AG
Key competencies
–
Finance, audit, accounting
–
Risk management, compliance and legal
–
Technology,including artificial intelligence and cybersecurity
–
Environmental, social and governance (ESG)
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Jeanette Wong
Independent and non-executive member of the Board since 2019
–
Member of the Audit Committee of UBS Group AG and UBS AG since
2019
–
Member of the Compensation Committee of UBS Group AG and UBS
AG since 2020
Nationality:
Singaporean |
Year of birth:
1960
Jeanette Wonghas morethan 30 yearsof operationalexperience inthe
financial sector in Singapore. She retired from DBS Group in 2019, where
shewasGroupExecutiveresponsiblefortheinstitutionalbanking
business, a post that encompassed corporatebanking, global transaction
services,strategicadvisory,andmergersandacquisitions.Shehasalso
held the positions ofDirector of DBS Bank (China) Limited,Chairperson of
DBS Bank(Taiwan)Ltd andCFO ofDBS Group.During a16-year career
with JPMorgan, Ms. Wonghelped build up itsAsia FX, fixed incomeand
emerging markets business. She brings extensive experience from serving
as a member ofthe board of directors oftwo high-value listed companies.
Professional experience
2008 – 2019
Group Executive institutional banking business, DBS Bank,
Singapore
2003 – 2008
CFO, DBS Bank, Singapore
2003
Chief Administration Officer,DBS Bank, Singapore
1997 – 2002
Country Manager Singapore, JPMorgan, Singapore
1986 – 1997
Various roles in Global Markets and Emerging Markets
Sales and Trading business, Asia,JPMorgan, Singapore
1984 – 1986
Manager, Private Banking, Citibank,Singapore
1982 – 1984
Manager, Corporate Banking,Paribas, Singapore
Education
–
Bachelor’s degree, business administration, the National University
of Singapore
–
MBA, University of Chicago
Listed company boards
–
Member of the Board of Prudential plc (chair of the audit committee)
–
Member of the Board of Singapore Airlines Limited (chair of the board
compensation and industrial relations committee)
Non-listed company boards
–
Member of the Board of GIC Pte Ltd
–
Member of the Board of PSA International
Other activities and functions
–
Member of the Board of Directors of UBS AG
–
Chairman of the CareShield Life Council
–
Member of the Securities Industry Council
–
Member of the Board of Trusteesof the National University
of Singapore
Key competencies
–
Banking (wealth management, asset management,
personal and corporate banking) and insurance
–
Investment banking, capital markets
–
Finance, audit, accounting
–
Environmental, social and governance (ESG)
Leadership experience
–
Executive board leadership
Annual Report 2025 |
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Elections and terms of office
ShareholdersannuallyelecteachmemberoftheBoDindividually,aswellastheChairmanandthemembersofthe
Compensation Committee, based on proposals from the BoD.
As setout inthe OrganizationRegulations, BoD membersare normallyexpected toserve forat leastthree years.BoD
members are limited to serving for a maximum of 10 consecutive terms of office; in exceptional circumstances, the BoD
may extend that limit.
›
Refer to “Skills, expertise and training of the Board of Directors” in this sectionfor more information
Organizational principles and structure
Following eachAGM, theBoD meetsto appointone ormore ViceChairmen, aSenior IndependentDirector,the BoD
committee members (other than the Compensation Committee members,who are elected by the shareholders) and the
respectivecommitteeChairpersons.Atthesamemeeting,theBoDappointstheGroupCompanySecretary,who,
pursuant to the Organization Regulations, acts as secretary to the BoD and its committees.
Pursuant to the AoA andthe Organization Regulations, theBoD meets as often asbusiness requires but at leastsix times
a year. The presence ofeither the Chairman, one ofthe Vice Chairmen or theSenior Independent Director, as wellas the
majority of the members ofthe BoD, is required topass valid BoD resolutions. In2025, the majority of themeetings of
the BoD wereheld in person.During 2025, atotal of 38BoD meetings wereheld, 13 ofwhich were attendedby GEB
members. The averageparticipation in theBoD meetings was97%. In additionto the BoDmeetings attended byGEB
members, the GroupCEO regularly attendedsome of themeetings of theBoD without theparticipation of otherGEB
members. The meetings had an average duration of 110 minutes.
The BoD held a two-daystrategy workshop, which focused onreconfirming the firm’s key strategic priorities,including
the integration of CreditSuisse. These werefurther discussed in meetingsthroughout the year, withdeep dives on the
Asia Pacific and Americas regions. The progress of the integration of Credit Suisse was covered regularly.
Board of Directors
Members in 2025
Meeting attendance
without GEB
1
Meeting attendance
with GEB
Key responsibilities include:
Colm Kelleher, Chairman
25/25
100%
13/13
100%
The BoD has ultimate responsibility for the success of the Group and for
delivering sustainable shareholder value within a framework of prudent
and effective controls. It decides on the Group’s strategy and the
necessary financial and human resources,upon recommendation of the
Group CEO, and sets the Group’s values and standards to ensure that
the Group’s obligations to shareholders and other stakeholders are met.
›
Refer to the Organization Regulations of UBS Group AG,
available at
ubs.com/governance
, for more information
Lukas Gähwiler
25/25
100%
13/13
100%
Jeremy Anderson
25/25
100%
13/13
100%
Claudia Böckstiegel
2
4/5
80%
4/6
67%
William C. Dudley
25/25
100%
13/13
100%
Patrick Firmenich
25/25
100%
13/13
100%
Fred Hu
23/25
92%
10/13
77%
Mark Hughes
25/25
100%
13/13
100%
Renata Jungo Brüngger
3
21/21
100%
8/8
100%
Gail Kelly
23/25
92%
13/13
100%
Nathalie Rachou
2
5/5
100%
6/6
100%
Julie G. Richardson
25/25
100%
13/13
100%
Lila Tretikov
3
20/21
95%
7/8
88%
Jeanette Wong
25/25
100%
13/13
100%
1
Additionally, five ad hoc video calls took place in 2025.
2
At the 2025 AGM, Claudia Böckstiegel and Nathalie Rachou did not stand for re-election;indicated are their attended and total meetings.
3
At the 2025
AGM, Renata Jungo Brüngger and Lila Tretikovwere newly elected to the Board of Directors; indicated are their attended and total meetings.
At the BoDmeetings, each committeechair provides theBoD with anupdate on thecommittee’s activities andimportant
issues. We also continued withthe coordination and exchange ofinformation between the BoD ofUBS Group AG and
its significant group entities, including between the respective chairs of the risk and audit committees. Asin prior years,
an annual workshop was held for non-executive board members of all significant group entities.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance173
Performance assessment
In spring 2025, theBoD self-assessment was conductedin-house, with an extensivequestionnaire. The results confirmed
that the BoDoperated efficiently andeffectively.Every three years,an external review assessesthe effectiveness ofthe
BoD.Themostrecentreviewwasconductedwiththesupportofanexternal vendorbetweenSeptember2025and
January 2026. The process included interviews with selected members of the GEB and the Head Group Internal Audit, a
detailed questionnaire completed by all members of the BoD and in-depth individual interviews with all members of the
BoD andthe GroupCompany Secretary.In addition,a detailedbenchmarking ofthe compositionof theBoD against
relevantpeer companieswasconducted. Drawingontheseanalyticalinputsanditsexperience frommorethan300
comparableprojectsacrossEurope,thevendorassessedtheBoDasrankinginthetop10%ofboardsintermsof
effectiveness. Overall BoD and committee composition isconsidered fit for purpose. TheBoD is characterized by strong
corporateoversight,proactiveriskanticipation,in-depthstrategicdiscussionsandasustainedcommitmenttobest
practices through regular evaluations and external benchmarking. Its cultureis characterized by high levels of trust. The
BoD hasstrong relationshipswith management,maintains aneffective Chairman–CEOpartnership andtakes asystematic
approach to CEO andBoD succession. The BoDalso ensures sustained engagementwith investors, reflecting itsfocus on
transparency and alignment.
BoD committees
The committeeslisted belowassist theBoD withfulfilling itsresponsibilities. Thesecommittees andtheir chartersare
describedinourOrganizationRegulations,availableat
ubs.com/governance.
Thecommitteesmeetasoftenastheir
business requiresbut noless thanfour timesa yearin thecase ofthe AuditCommittee, theRisk Committeeand the
CompensationCommitteeandnolessthantwiceayearinthecaseoftheCorporateCultureandResponsibility
Committee (the CCRC) and the Governance and Nominating Committee.
Topics of commoninterest or affectingmore than onecommittee are discussedat joint committeesessions. During2025,
a total of 12 joint committee sessionswere held. The Audit Committee metfour times with the Risk Committeeand five
times with the CCRC. The Risk Committee met twice with the CCRC and once with the Compensation Committee.
Audit Committee
Throughout 2025, the Audit Committee consisted of fourindependent BoD members; after the 2025 AGMLila Tretikov
joined thecommittee andNathalie Rachoustepped down.All AuditCommittee membershave accountingor related
financial management expertise and, in compliance with the rules established pursuantto the 2002 US Sarbanes–Oxley
Act,atleastonememberqualifiesasafinancialexpert.TheNYSEstandardsoncorporategovernanceregarding
independence ofboard members areapplicable tothe AuditCommittee ofUBS GroupAG. Inaddition, Rule10A-3 under
the US SecuritiesExchange Act setsmore stringent independencerequirements for membersof audit committees,in that
they shouldnot receive,directly orindirectly,any consulting,advisory orcompensatory feesfrom anymember ofthe
Group otherthan intheir capacityas aBoD member,should nothold, directlyor indirectly,UBS GroupAG sharesin
excess of 5% of the outstanding capitalthereof and should not serve onthe audit committees of morethan two other
public companies. Throughout 2025 all members of the Audit Committee satisfied the applicable requirements.
During 2025, the Audit Committeeheld 12 committee meetings, witha participation rate of 98%.The meetings had an
average durationof approximately145 minutes.Additional attendeesincluded theGroup CFO,the GroupController,
the ChiefAccounting Officer, theHead Group InternalAudit and theexternal auditors. TheChairman of theBoD, the
Vice Chairman and the GroupCEO attended most meetings. TheChairperson and the committee continuedto maintain
regular contact with core supervisory authorities.
Audit Committee
Members in 2025
Meeting attendance
Key responsibilities include:
Jeremy Anderson (Chairperson)
12/12
100%
The function of the Audit Committee is to support the BoD in fulfilling its oversight duty relating
to financial reporting and internal controls over financial reporting, the effectiveness of the
external and internal audit functions, and the effectiveness of whistleblowing procedures.
Management is responsible for the preparation, presentation and integrity of the financial
statements, while the external auditors are responsible for auditing financial statements. The Audit
Committee’s responsibility is one of oversight and review.
›
Refer to the Organization Regulations of UBS Group AG,
available at
ubs.com/governance
, for more information
Patrick Firmenich
12/12
100%
Nathalie Rachou
1
4/4
100%
Lila Tretikov
2
7/8
88%
Jeanette Wong
12/12
100%
1
Nathalie Rachou steppeddown at the2025 AGM; indicatedare her attendedand total meetings.
2
Lila Tretikovbecame a memberof this committeeafter the 2025AGM; indicated areher attended andtotal
meetings.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance174
Compensation Committee
Throughout 2025,the Compensation Committeeconsisted of threemembers; at the2025 AGM GailKelly was newly
electedtothecommitteereplacingFredHu.Inadditiontothekeyresponsibilitiesindicatedinthetablebelow,the
Compensation Committee reviews the compensation disclosures included in this report.
During 2025, the Compensation Committee held eightmeetings, with a participation rate of 100%.The meetings had
an average duration of approximately 75 minutes. All meetings in 2025 were held in the presence of the Chairman and
theGroupCEO.Externaladvisorswerepresentwhenrequired.In2025,theChairpersonmetregularlywithcore
supervisory authorities.
›
Refer to “Compensation for the Board of Directors” in the “Compensation” sectionof this report for more information about the
Compensation Committee’s decision-makingprocedures
Compensation Committee
Members in 2025
Meeting attendance
Key responsibilities include:
Julie G. Richardson (Chairperson)
8/8
100%
The Compensation Committee is responsible for:
(i)
supporting the BoD in its duties to set guidelines on compensation and benefits;
(ii)approving the total compensation for the Chairman and the non-independent BoD members;
(iii) proposing, upon proposal of the Chairman, financial and non-financial performance targets
and objectives for the Group CEO for approval by the BoD and reviewing, upon the proposal
of the Group CEO, the performance framework for the other GEB members;
(iv) proposing, upon proposalof the Chairman, the Group CEO’s performance assessment for
approval by the BoD, as well as informing the BoD of the performance assessments of
all GEB members;
(v)proposing, upon proposal of the Chairman, the total compensation for the Group CEO for
approval by the BoD; and
(vi)proposing, upon proposal of the Group CEO, the individual total compensation for the other
GEB members for approval by the BoD.
›
Refer to the Organization Regulations of UBS Group AG,
available at
ubs.com/governance
, for more information
Fred Hu
1
2/2
100%
Gail Kelly
2
6/6
100%
Jeanette Wong
8/8
100%
1
At the 2025 AGM,Fred Hu stepped downfrom this committee; indicatedare his attended and totalmeetings.
2
At the 2025 AGM,Gail Kelly waselected to this committee;indicated are her attendedand total
meetings.
Corporate Culture and Responsibility Committee
Throughout 2025, the CCRC consisted of five independent BoD members; after the 2025 AGM Renata Jungo Brüngger
joined thecommittee, replacingClaudia Böckstiegel.The Chairmanchaired thecommittee. Additionalattendees included
the GroupCEO, the GroupChief Risk Officer,the GEB Leadfor Sustainability andImpact, the GroupGeneral Counsel
andtheChiefSustainabilityOfficer.During2025,sevenmeetingswereheld,withaparticipationrateof97%.The
average duration of each of the meetings was approximately 65 minutes.
Corporate Culture and Responsibility Committee
Members in 2025
Meeting attendance
Key responsibilities include:
Colm Kelleher (Chairperson)
7/7
100%
The CCRC supports the BoD in its duties to safeguard and advance the Group’s reputation for
responsible and sustainable conduct. Its function is forward-looking in that it monitors and reviews
societal trends and transformational developments and assesses their potential relevance for the
Group.
In undertaking this assessment, it reviews stakeholder concerns and expectations pertaining to the
societal performance of UBS and to the development of its corporate culture. The CCRC’s function
also encompasses the monitoring of the current state and implementation of the programs and
initiatives within the Group pertaining to corporate culture and corporate responsibility,including
sustainability.
›
Refer to the Organization Regulations of UBS Group AG,
available at
ubs.com/governance
, for more information
Claudia Böckstiegel
1
3/4
75%
William C. Dudley
7/7
100%
Patrick Firmenich
7/7
100%
Mark Hughes
7/7
100%
Renata Jungo Brüngger
2
3/3
100%
1
At the 2025AGM, Claudia Böckstiegelstepped down fromthis committee;indicated are herattended and totalmeetings.
2
Renata Jungo Brünggerbecame a memberof this committeeafter the 2025AGM;
indicated are her attended and total meetings.
Annual Report 2025 |
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Governance and Nominating Committee
Beforethe2025AGM,theGovernanceandNominatingCommittee,chairedbytheChairman,consistedoffour
independent members and theVice Chairman, and, atthe 2025 AGM, NathalieRachou stepped down. During2025, six
meetings were held, with a participation rate of 97%. The average duration of each of the meetings was approximately
30 minutes. The Group CEO attended meetings as appropriate.
Governance and Nominating Committee
Members in 2025
Meeting attendance
1
Key responsibilities include:
Colm Kelleher (Chairperson)
6/6
100%
The function of the Governance and Nominating Committee is to support the BoD in fulfilling its
duty to establish best practices in corporate governance across the Group, including conducting a
BoD assessment, establishing and maintaining a process for appointing new BoD and GEB
members, as well as for the annual performance assessment of the BoD.
›
Refer to the Organization Regulations of UBS Group AG,
available at
ubs.com/governance
, for more information
Lukas Gähwiler
6/6
100%
Jeremy Anderson
6/6
100%
Fred Hu
5/6
83%
Gail Kelly
6/6
100%
Nathalie Rachou
2
2/2
100%
1
Additionally, one ad hoc call took place in 2025.
2
Nathalie Rachou did not stand for re-election; indicated are her attended and total meetings.
Risk Committee
Throughout 2025, the RiskCommittee consisted of threeindependent members and the ViceChairman.It held eleven
committee meetings,with aparticipation rateof 100%.The averageduration ofeach ofthe meetingswas approximately
165 minutes. The Chairman of the BoD, the Group CEO, the Group CFO, the Group Chief Risk Officer, the Group Chief
OperationsandTechnologyOfficer,theGroupTreasurer,theGroupChiefComplianceandGovernance Officer,the
Group GeneralCounsel, theHead GroupInternal Audit, andthe external auditorsattended themeetings asrequired.
The Chairperson and the committee continued to maintain regular contact with core supervisory authorities.
Risk Committee
Members in 2025
Meeting attendance
Key responsibilities include:
Mark Hughes (Chairperson)
11/11
100%
The function of the Risk Committee is to oversee and support the BoD in fulfilling its duty to set
and supervise an appropriate risk management and control framework in the areas of:
(i)
financial and non-financial risks;
(ii)balance sheet, treasury and capital management, including funding,
liquidity and equity attribution.
›
Refer to the Organization Regulations of UBS Group AG,
available at
ubs.com/governance
, for more information
Lukas Gähwiler
11/11
100%
William C. Dudley
11/11
100%
Julie G. Richardson
11/11
100%
Ad hoc committees
The Strategy Committee is an ad hoc committee, which holds meetings as and when required.Its primary purpose is to
support theBoD withthe assessmentof strategicconsiderations. TheStrategy Committeeheld onemeeting in2025.
The Special Committee was an ad hoc committee, whichheld meetings as and when required.Its primary purpose was
to support the BoD with overseeing activities related to selected litigation matters. In 2025, the Special Committee held
no meetings and was dissolved.
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Roles and responsibilities of the Chairman of the Board of Directors
At the2025 AGM,Colm Kelleher wasre-elected asthe Chairman ofthe BoD.The Chairmancoordinates taskswithin
the BoD, calls BoD meetingsand sets the meeting agendas. Hepresides over all general meetings ofshareholders, chairs
theGovernanceandNominatingCommittee,aswellastheCCRC,andworkswiththecommitteeChairpersonsto
coordinate the workof all BoDcommittees. Togetherwith the GroupCEO, the Chairmanundertakes responsibility for
UBS’s reputation,and isresponsible foreffectivecommunication withshareholders andother stakeholders,including
government officials,regulators andpublic organizations.This isin additionto establishingand maintainingclose working
relationships with the Group CEO and other GEB members, and providing advice and support when appropriate.
›
Refer to “Employees” in the “Our stakeholders” section of this report for information about our Pillars,Principles and Behaviors
In 2025, the Chairmanmet regularly withcore supervisors in allmajor locations whereUBS is active.Meetings with other
important supervisory authorities were scheduled on an ad hoc or needs-driven basis.
Roles and responsibilities of the Vice Chairmen and the Senior Independent Director
The BoDappoints oneor moreVice Chairmen anda SeniorIndependent Director.If theBoD appoints morethan one
Vice Chairman, at least oneof them must be independent.Both the Vice Chairmanand the Senior IndependentDirector
support and advise theChairman. In conjunction withthe Chairman and theGovernance and Nominating Committee,
they facilitate good Group-wide corporategovernance, as well asbalanced leadership and control withinthe Group, the
BoD and the committees.
After the 2025 AGM, LukasGähwiler was re-appointed by theBoD as Vice Chairman and hasheld that post since 2022.
Jeremy Anderson wasre-appointed the SeniorIndependent Directorafter that samemeeting and hasheld that postsince
2020. The Vice Chairman isrequired to lead meetings ofthe BoD in thetemporary absence of the Chairman.Together
with the Governance andNominating Committee, eitherthe Senior Independent Directoror the Vice Chairmanis tasked
with theongoing monitoringand theannual evaluationof theChairman. TheVice Chairmanalso representsUBS on
behalf of the Chairmanin meetings with internalor external stakeholders. In particular,Lukas Gähwiler represents UBS
across a broad range of associations and industry bodies in Switzerland.
TheSeniorIndependentDirectorenablesandsupportscommunicationandtheflowofinformationamongthe
independent BoD members. Atleast twice ayear, he organizes andleads a meeting ofthe independent BoD members
without the participation of the Chairman. In 2025, two independent BoD meetings were held with a participation rate
of90%andanaveragedurationofapproximately100minutes.TheSeniorIndependentDirectoralsorelaystothe
Chairman any issuesor concerns raisedby the independentBoD members andacts as apoint of contactfor shareholders
and stakeholders seeking discussions with an independent BoD member
.
Important business connections of independent members of the Board of Directors
As aglobal financialservices provider anda majorSwiss bank,UBS hasbusiness relationships withmany largecompanies,
including some inwhich BoD membershave management orindependent board responsibilities.The Governance and
Nominating Committee determines in each instance whetherthe nature of the Group’sbusiness relationship with such
a company might compromise our BoD members’ capacity to express independent judgment.
Our OrganizationRegulations requirethree-quarters ofthe membersof theBoD tobe independent.For thispurpose,
independence isdetermined inaccordance withFINMA Circular2017/1 “Corporategovernance –banks” andtaking
into account the relevant NYSE rules.
›
Refer to the “Differences from corporate governance standardsrelevant to US-listed companies” section of this report for more
information
In 2025, our BoD met the standards of the Organization Regulationsfor the percentage of directors who are considered
independentunderthecriteriadescribedabove.NocurrentBoDmemberhaseitheranemploymentcontractora
significantbusinessconnectiontoUBSoranyofitssubsidiaries.NoBoDmembercurrentlycarriesoutoperational
management tasks within the Group. On 31 December 2025, except for the Vice Chairman, who was Chairman of UBS
Switzerland AG until April 2022, no BoD member has carried out operational management tasks within the Group over
the past three years.
All relationships and transactionswith UBS Group AG’s independentBoD members are conductedin the ordinary course
of businessand areon thesame termsas thoseprevailing atthe timefor comparabletransactions withnon-affiliated
persons. All relationships and transactions with BoD members’ associated companies are conducted at arm’s length.
›
Refer to “Note 29 Related parties” in the “Consolidated financial statements” section of this report formore information
Annual Report 2025 |
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Checks and balances: the Board of Directors and the Group Executive Board
We operateunder astrict dualboard structure,as mandatedby Swissbanking law.The separationof responsibilities
between the BoD and the GEBis clearly defined in the OrganizationRegulations. The BoD decides on thestrategy of the
Group, uponrecommendations bythe GroupCEO, and exercisesultimate supervision overmanagement; whereas the
GEB, headed by theGroup CEO, has executivemanagement responsibility.The functions of Chairman andGroup CEO
are assigned to two different persons, leading to a separation ofpowers. This structure establishes checks and balances
andpreservestheinstitutionalindependenceoftheBoDfromtheexecutivemanagementoftheGroup,forwhich
responsibility is delegated to the GEB. No member of one board may simultaneously be a member of the other.
SupervisionandcontroloftheGEBremainwiththeBoD.Theauthoritiesandresponsibilitiesofthetwobodiesare
governed by the AoA and the Organization Regulations.
Skills, expertise and training of the Board of Directors
TheBoDiswell-diversifiedandcomposedofmemberswithabroadspectrumofskills,educationalbackgrounds,
experience, andexpertise froma rangeof sectorsthat reflectthe natureand scopeof thefirm’s business.The Governance
and Nominating Committee maintainsa competencies and experiencematrix to identify gapsin the competencies and
experiences consideredmost relevantto theBoD, takinginto considerationthe firm’sbusiness exposure,risk profile,
strategy and geographic reach.
Inrecentyears,thecompositionoftheBoDhasbeensystematicallyshapedtomeetchangingrequirements.Recent
nominations, including GailKelly in 2024,Renata Jungo Brünggerand Lila Tretikovin 2025, andadditional candidates
proposed in February2026, reflect acontinuous process thataims to strengthenand ensure thelong-term and enhanced
composition of the Board.
Key competencies
–
banking (wealth management, asset management, personal and corporate banking) and insurance
–
investment banking, capital markets
–
finance, audit, accounting
–
risk management,compliance and legal
–
human resources management, including compensation
–
technology, including artificial intelligence and cybersecurity
–
regulatory authority, central bank
–
environmental, social and governance (ESG)
Leadership experience
–
experience as a CEO or chairperson
–
executive board leadership experience (e.g. as CFO, chief risk officer or COO of a listed company)
TheGovernanceandNominatingCommitteereviewsthesecategoriesandratingsannuallytoconfirmthattheBoD
continues to possess the most relevant experience and competencies to perform its duties.
With regard tothe composition ofthe BoD afterthe 2025 AGM,the BoD membersthereof identified allof the target
competencies asbeing theirkey competencies.Particularly stronglevels ofexperience andexpertise existedin theseareas:
–
financial services;
–
risk management, compliance and legal; and
–
finance, audit, accounting.
Furthermore, 10of the12 BoDmembers haveheld orcurrently holdchairperson, CEOor otherexecutive board-level
leadership positions.
Moreover, weconsider thecontinuous educationof ourBoD memberstobe animportant priorityandsupport their
attendanceofvarioustrainingsessions.InadditiontoacomprehensiveinductionprogramfornewBoDmembers,
continuous training and topical deep dives are part of the BoD agenda.
Cybersecurity governance
Cybersecurity, as one of theinherently highest and most rapidlyevolving non-financial risks, is akey focus for the BoD.
It isprimarily covered atthe joint meetingsbetween the RiskCommittee and theAudit Committee withthe Quarterly
Cyber Risk Updates.These quarterly updates,combined with dedicateddeep dives for thefull BoD, providethe BoD with
assessments of the firm’scyber-risk posture, cyber-attacksurfaces and vectors andsecurity measures, cybermaturity, and
associated improvement measures, as well as updates on the cybersecuritythreat environment and lessons learned from
cybersecurity incidents across the globe and industries. Cyber risk is also covered in the quarterly Group Technology Risk
Taxonomies Report discussed at the Risk Committee.
›
Refer to “Risk governance” in the “Risk management and control” section of this report for informationabout our risk
governance framework
›
Refer to “Non-financial risk” in the “Risk management and control” section of this reportfor information about cybersecurity
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Succession planning
Succession planning is oneof the key responsibilitiesof both the BoDand the GEB. Acrossall divisions and regions,an
inclusive talent developmentand succession planningprocess isin placethat aimsto fosterthe personaldevelopment
and Group-widemobility ofour employees.Although therecruiting processfor BoDand GEBmembers takesinto account
a broad spectrum of factors, such as skills,backgrounds, experience and expertise, our approach with regard to diversity
considerations does not constitute a diversity policy within the meaning of the EU Directive on Non-FinancialReporting,
and Swiss law does not require UBS to maintain such a policy.
With theclose involvementof theBoD, theGEB continuesto furtherstrengthen internalsuccession planningat UBS.
Thisincludestheearlyidentificationoftalentsandtheirsystematicdevelopment,includinginternationalandcross-
divisional rotations. The succession plans for the GEB and the management layersbelow it are managed under the lead
of the Group CEO and are reviewed and approved annually by the BoD.
For the BoD, the Chairman leads a systematic succession planning process as illustrated in the chart below. Our strategy
and the business environment constitute the maindrivers in our succession planning process fornew BoD members, as
theydefinethekeycompetenciesrequiredontheBoD.TakingthediversityandthetenureoftheexistingBoDinto
account, theGovernance andNominating Committeedefines therecruiting profilefor thesearch. Bothexternal and
internal sourcescontribute toidentifying suitable candidates.The Chairmanand themembers ofthe Governanceand
Nominating Committee meetwith potential candidatesand, with thesupport of thefull BoD, nominationsare submitted
totheAGMforapproval.NewBoDmembersfollowanin-depthonboardingprocessdesignedtoenablethemto
integrate efficiently and become effective in their new role. Due to this succession planning process, the composition of
the BoD is in line with the demanding requirements of a leading global financial services firm.
Thesmooth andeffective successionat theGEB leveland theappointments ofinternal talentasnew GEBmembers
demonstrates the strengthof the successionplanning at UBS.The BoD andthe GEB remaincommitted to thecontinuous
focus on developing a high-quality bench of succession candidates at all levels in the organization.
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Information and control instruments with regard to the Group Executive Board
The BoDis informed aboutthe GEB’sactivities in variousways, including meetingsbetween the Chairman,the Group
CEO andGEB members.At BoDmeetings theGroup CEOand otherGEB membersprovide updatesabout significant
issues. TheBoD receivesreports aboutmajor developments,performance andforecasts andits membersare updated
between meetingsabout highlyimportant matters.TheChairman reviewsthe meetingmaterial andminutes ofGEB
meetings. BoD members mayrequest from otherBoD or GEB membersany information about mattersthat they need.
TheBoDissupportedwithitsresponsibilitiesbyGroupInternalAudit,whichindependentlyassesseswhetherrisk
management, control and governance processes are designed and operating sustainably and effectively.
TheHeadGroupInternalAuditreportsdirectlytotheChairmanandthefunctionhasareportinglinetotheAudit
Committee, as per our Organization Regulations. The Audit Committee assesses the independence and performance of
the function andthe effectiveness ofboth its Headand its organization, approvesits annual auditplan and objectives,
and monitors its delivery thereof.
Group Internal Audit issues quarterly and annual reports about significant audit resultsand key issues, as well as themes
andtrends,basedonindividualaudits,continuousriskassessmentandissueassurance.Thereportsaresenttothe
Chairman, the Audit andthe Risk Committees, theGEB and other stakeholders.The function Head regularlyupdates the
Chairman andthe AuditCommittee aboutits activities,processes, auditplan execution,resourcing requirementsand
other important developments.
›
Refer to “Group Internal Audit” in this section for more information
›
Refer to “Internal risk reporting” in the “Risk management and control” section of this reportfor information about reporting to
the BoD
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Group Executive Board
The BoD delegates the management of the business to the Group Executive Board (the GEB).
Responsibilities, authorities and organizational principles of the Group Executive Board
On 31 December2025, theGEB, underthe leadershipof theGroupCEO, consistedof 15members. Ithas executive
management responsibility for the steeringof the Group and its business, developsthe strategies of the Group, business
divisionsandGroupfunctions,andimplementstheBoD-approvedstrategies.TheGEBisalsotheriskcouncilofthe
Group, withoverall responsibility forestablishing and supervisingthe implementation ofrisk management andcontrol
principles, as well as for managing the risk profile of the Group, as determined by the BoD and the Risk Committee.
In 2025, the GEB held a total of 27 meetings.
›
Refer to the Organization Regulations of UBS Group AG, available at
ubs.com/governance
, for more information about the
authorities of the Group Executive Board
Changes to the Group Executive Board
On 24 October 2025, UBS announced a number of changes to the GEB,effective on 1 January 2026. As covered in the
BoD section, Markus Ronner stepped down as Group Chief Compliance and Governance Officer and will be nominated
as a memberof the BoDat the AGMin April2026. MichelleBereaux, previouslyGroup IntegrationOfficer, becameGroup
Chief Compliance and OperationalRisk Control Officer. BeatrizMartin took on therole of Group Chief OperatingOfficer
in additionto herexisting responsibilitiesand continuedto actas PresidentEMEA. TheGovernmental andRegulatory
Affairs andGroup Securityfunctions, previouslypart ofthe GroupCompliance, Regulatoryand Governancefunction,
nowreportstoGroupCFOToddTucknerandHeadGroupHumanResourcesandCorporateServicesStefanSeiler,
respectively.
On 15December 2025,UBS announcedthat MikeDargan haddecided tostep downas GroupChief Operationsand
Technology Officerat theend ofDecember topursue anopportunity outsideof UBS.The GroupTechnology function
now reports to Beatriz Martin after she took up her new role as Group Chief Operating Officer on 1 January 2026.
ThebiographiesbelowprovideinformationabouttheGEBmembersinofficeon31 December2025.Inadditionto
information on mandates, the biographies include memberships and other activities or functions, as required bythe SIX
Swiss Exchange Corporate Governance Directive.
In linewith Swisslaw, article36 ofour AoA limitsthe numberof mandatesthat GEBmembers may holdoutside UBS
Group toone mandatein alisted companyand fiveadditional mandatesin non-listedcompanies. Mandatesin companies
that are controlled by UBS or that control UBS are not subject to this limitation. In addition, GEB members may not hold
morethan10mandatesatonetimeattherequestofthecompanyandmorethaneightmandatesinassociations,
charitableorganizations,foundations,trustsandemployeewelfarefoundationswithoutcommercialpurpose.On
31 December 2025, no member of the GEB reached the aforementioned thresholds.
Responsibilities and authorities of the Asset and Liability Committee
The Asset and LiabilityCommittee of UBS Group AG(the GALCO) is responsiblefor managing assets andliabilities in line
with the strategy,risk appetite, regulatorycommitments and theinterests of shareholdersand other stakeholders.The
GALCO proposes the frameworkfor capital management,capital allocation, andliquidity and fundingrisk, and proposes
limits and indicators for the Group to the BoD for approval. It oversees the balance sheet management of the Group, its
business divisions and Group functions. In 2025, the GALCO held 12 meetings.
Management contracts
Wehavenotenteredintomanagement contractswithanycompanies ornatural personsthatdonotbelong tothe
Group.
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Sergio P.Ermotti
Group Chief Executive Officer,
member of the GEB
from 2011 to 2020 and since 2023
Nationality:
Swiss |
Year of birth:
1960
Sergio P. Ermotti has been Group CEO of UBS Group AG and President of
the Executive Boardof UBS AGsince 2023. Hewas also theGroup CEO
from2011to2020.Here-joinedUBSfromSwissRe,wherehewas
ChairmanoftheBoardofDirectorsuntil2023.PriortojoiningUBSin
2011, he was at UniCredit Group,where from 2007 to 2010 he served as
GroupDeputyCEOandHeadofCorporate&InvestmentBankingand
PrivateBanking,priortowhichheservedasHeadoftheMarkets&
InvestmentBankingDivision.Beforethat,heheldvariouspositionsat
Merrill Lynch & Co. in the areasof equity derivatives and capital markets.
HebecameCo-HeadofGlobalEquityMarketsandamemberofthe
ExecutiveManagementCommitteeforGlobalMarkets&Investment
Banking in 2001.
Professional experience
2023 – date
Group CEO, UBS Group AG, and
President of
the Executive Board,
UBS AG
2021 – 2023
Chairman of the Board of Directors, Swiss Re
2020 – 2021
Member of the Board of Directors, Swiss Re
2011 – 2020
Group CEO, UBS
2011
Chairman and CEO UBS Group Europe, Middle East and
Africa, and member of the Group Executive Board, UBS
2007 – 2010
Group Deputy CEO and Head Corporate & Investment
Banking and Private Banking, UniCredit
2005 – 2007
Head Markets & Investment Banking Division, UniCredit
1987 – 2004
Various senior management positions, Merrill Lynch& Co
Education
–
Swiss-certified banking expert
–
Advanced Management Programme, the University of Oxford
Listed company boards
–
Member of the Board of Ermenegildo Zegna N.V.(Lead Non-Executive
Director)
Non-listed company boards
–
Member of the Board of Società Editrice del Corriere del Ticino SA
Other activities and functions
–
President of the Executive Board of
UBS AG
–
Member of the Board of Innosuisse,the Swiss Innovation Agency
–
Member of Institut International d’Etudes Bancaires
–
Member of the WEF International Business Council and Governor of
the Financial Services / Banking Community
–
Member of the MAS International Advisory Panel
–
Member of the Board of the Institute of International Finance
–
Member of the Board of the Swiss-American Chamber of Commerce
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George Athanasopoulos
Co-President Investment Bank,
member of the GEB since 2024
Nationality:
Greek and British |
Year of birth:
1969
George Athanasopoulos becameCo-President of theInvestment Bank in
2024. He jointly manages the InvestmentBank with Marco Valla across all
regions to ensure anunparalleled global offering forour client franchise.
Since joiningUBS in2010, Mr.Athanasopouloshas heldvarious senior
roles, including Co-Head of Global Markets from 2020 to 2024 and Head
ofGlobalFamilyandInstitutionalWealthfrom2022to2024.Before
joiningUBSin2010,hewasGeneralManageratEurobankEFGand
previouslyworkedforBarclaysCapital,mostrecentlyresponsiblefor
Global ForeignExchange andGlobal EmergingMarkets Distribution.He
startedhiscareerin1992,workinginEuropeandAsiaforNatWest
Markets and Merrill Lynch.
Professional experience
2024 – date
Co-President of the Investment Bank,
UBS Group AG and UBS AG
2022 – 2024
Head Global Family and Institutional Wealth, UBS
2020 – 2024
Co-Head of Global Markets, UBS
2016 – 2019
Global Head of Foreign Exchange, Rates and Credit and
Head of Non-Core, UBS
2013 – 2016
Global Co-Head of Foreign Exchange,
Rates and Credit, UBS
2011 – 2013
Co-Head of Global Foreign Exchange and
Precious Metals, UBS
2010 – 2011
Head of Global Foreign Exchange Distribution, UBS
2009 – 2010
General Manager, GroupHead of Trading, Salesand
Structuring, Eurobank EFG
2008 – 2009
Global Head of Foreign Exchange and Emerging
Markets Distribution, Barclays Capital
2004 – 2008
Various management positions in FX Markets,
Barclays Capital
Education
–
Master’s degree, shipping, trade and finance, Bayes Business School
–
Diploma in mechanical engineering, the National TechnicalUniversity
of Athens
Other activities and functions
–
Member of the Executive Board of
UBS AG
Michelle Bereaux
Group
Integration Officer until December 2025, Group Chief
Compliance and Operational Risk Control Officer since January
2026, member of the GEB since 2023
Nationality:
British and Trinidadian & Tobagonian|
Year of birth:
1964
MichelleBereauxwasappointedGroupChiefComplianceand
OperationalRiskControlOfficerinJanuary2026.Inthisrole,sheis
responsible for developingUBS’s risk managementand control framework
fornon-financialrisksandimplementingtheindependentcontrol
framework for these non-financial risks. Ms. Bereaux has been at UBS for
more than 25 years and hasheld various leadership roles acrossthe firm.
ShehasbeenamemberoftheGEBsince2023andactedasGroup
Integration Officer from 2023 to 2025to integrate Credit Suisse into UBS.
Previously,sheservedasbothCOOandUKCountryHeadofAsset
Management and, prior to that, as COO and Head HR for our Investment
Bank.
Professional experience
January
2026
–
date
Group Chief Compliance and Operational Risk Control
Officer, UBS GroupAG and Chief Compliance and
Operational Risk Control Officer,UBS AG
2023 –
December 2025
Group Integration Officer,UBS Group AG and Integration
Officer, UBS AG
2021 – 2023
Country Head UBS Asset Management UK and
CEO Asset Management UK Ltd
2020 – 2023
COO, UBS Asset Management
2018 – 2020
Head of Group Efficiency and Cost Management,
UBS Business Solutions AG
2015 – 2018
Non-Executive Director and Chairman Remuneration
Committee, UBS Limited
2011 – 2014
Global Head Human Resources, UBS Investment Bank
2011
Global Strategic Projects at CEO Management Office,
UBS Investment Bank
2009 – 2010
Chief of Staff and Joint Global COO, UBS Investment Bank
Education
–
Bachelor’s degree,law, the University of Cambridge
–
Bachelor’s degree,politics, economics and law, the University of
Buckingham
Other activities and functions
–
Member of the Executive Board of
UBS AG
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Mike Dargan
Group Chief Operations and TechnologyOfficer, memberof the
GEB since 2021 (stepped down on 31 December 2025)
Nationality:
British |
Year of birth:
1977
MikeDarganwasappointedGroupChiefOperationsandTechnology
Officerin2023andwasaccountablefordeliveringdigitalplatforms,
technology services, infrastructure and operations, includingcybersecurity
and information security. until he stepped down in December 2025.In his
role, he drove Group-wide innovative and emerging technology solutions
anddigitalizationanddeliveredtechnologyservices,toolsand
infrastructure,includingcyberprotectionandtechnologysecurity.
Previously,hewasGroupChiefDigitalandInformationOfficer(CDIO),
having lead Group Technologysince joining UBS in 2016. Prior tojoining
UBS, heheld varioussenior rolesin technology,corporate strategyand
investment banking at Standard Chartered Bank, Merrill Lynchand Oliver
Wyman.
Professional experience
2023 –
December 2025
Group Chief Operations and TechnologyOfficer,
UBS Group AG, and Chief Operations and
Technology Officer,UBS AG
2021 –
December 2025
President of the Executive Board,
UBS Business Solutions AG
2021 – 2023
Group CDIO, UBS Group AG, and CDIO, UBS AG
2016 – 2021
Head Group Technology,UBS
2015 – 2016
CIO for Corporate and Institutional Banking,
Standard Chartered Bank
2014 – 2015
Global Group Technologyand Operations Head for
Global Markets, Wealth Management, Private Banking
and Securities Services, Group Technologyand Operations
Engineering, Standard Chartered Bank
2013 – 2014
CIO for Financial Markets, Standard Chartered Bank
2009 – 2013
Global Head of Strategy and Corporate M&A,
Global Markets, Standard Chartered Bank
2005 – 2009
Head Corporate Strategy & M&A, EMEA and Pacific Rim,
Merrill Lynch
Education
–
Master’s degree, politics, philosophy and economics,
St. John’s College, the University of Oxford
Other activities and functions
–
Member of the Executive Board of
UBS AG
–
Member of the Board of Directors and President of the Executive
Board of UBS Business Solutions AG
–
Member of the Board of the UBS Optimus Foundation
–
Member of the Advisory Board of SCION Association
Aleksandar Ivanovic
President Asset Management, member of the GEB since 2024
Nationality:
Swiss |
Year of birth:
1976
Aleksandar Ivanovic was appointedPresident Asset Management in 2024.
WithhisexperienceandbroadnetworkacrosstheUBSGroup,heis
leadingtheAssetManagementbusinessdivisionforward,creatingan
even strongerorganization throughintegration andoffering investment
capabilities andinvestment styleswith industry-leadingcapabilities ona
truly globalscale. Beforejoining theGEB, hewas HeadClient Coverage
and Head of the Europe,Middle East and Africa andSwitzerland regions
for Asset Management at UBS. Starting asan apprentice at UBS in 1992,
hehasworkedinallourbusinessdivisionsandlaterheldvarious
leadership roles at Credit Suisse and Morgan Stanley.
Professional experience
2024 – date
President Asset Management, UBS Group AG and
UBS AG
2019 – 2024
Head Region Europe, Middle East and Africa, Asset
Management, UBS
2018 – 2024
Head Client Coverage, Asset Management, UBS
2018 – 2024
Head Region Switzerland, Asset Management, UBS
2017 – 2018
Head Institutional Client Coverage,
Asset Management, UBS
2011 – 2016
Head of Europe, Middle East and Africa, Distribution,
Financial Engineering, Structured Products,
Institutional Equity Derivatives, London,
Morgan Stanley
2008 – 2011
Head of Distribution Northern Europe, Structured
Products, Institutional Equity Derivatives, London,
Credit Suisse
2000 – 2008
Various positions in Global Markets,
UBS Investment Bank, London / Switzerland, UBS
Education
–
Master’s degree,finance, London Business School
–
Bachelor’s degree, Economics and Business Administration,
Hochschule für Wirtschaft Zurich
Other activities and functions
–
Member of the Executive Board of
UBS AG
–
Chairman of UBS Asset Management AG
–
Chairman of UBS Asset Management Switzerland AG
–
Member of the Board of the UBS Optimus Foundation
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Robert Karofsky
Co-President Global Wealth Management and
President UBS Americas, member of the GEB since 2018
Nationality:
American (US) |
Year of birth:
1967
Robert KarofskybecameCo-PresidentGlobal WealthManagementand
PresidentUBSAmericasin2024.HejointlymanagesGlobalWealth
Management across allregions to ensurean unparalleled global offering
for our wealth managementclient franchise. As PresidentUBS Americas,
he is responsiblefor the cross-divisionalcollaboration and representsthe
Group to the broader publicin the Americas. Mr.Karofsky was President
InvestmentBankfrom2021to2024andpreviouslyCo-President
Investment Bank from2018 to 2021.Before that,he was PresidentUBS
Securities LLC from 2015to 2021. Prior tojoining UBS, he acquiredknow-
how in investment banking asan analyst and trader,working for various
financialinstitutions,includingMorganStanley,DeutscheBankand
AllianceBernstein.
Professional experience
2024 – date
Co-President Global Wealth Management and President
UBS Americas, UBS Group AG and UBS AG
2021 – 2024
President Investment Bank, UBS
2018 – 2021
Co-President Investment Bank, UBS
2015 – 2021
President UBS Securities LLC, UBS
2014 – 2018
Global Head Equities, UBS
2011 – 2014
Global Head of Equity Trading, AllianceBernstein
2008 – 2010
Co-Head of Global Equities, Deutsche Bank
2005 – 2008
Head of North American Equities, Deutsche Bank
Education
–
Bachelor’s degree, economics, Hobart and William Smith Colleges,
New York
–
MBA, finance and statistics, the University of Chicago Booth School of
Business
Other activities and functions
–
Member of the Executive Board of
UBS AG
–
Member of the Board of UBS Americas Holding LLC
–
Chair of the Board of the UBS Optimus Foundation US
–
Member of the Board of the American Swiss Foundation
Sabine Keller-Busse
President Personal & Corporate Banking and
President UBS Switzerland, member of the GEB since 2016
Nationality:
Swiss and German |
Year of birth:
1965
SabineKeller-BussewasappointedPresidentPersonal&Corporate
BankingandPresidentUBSSwitzerlandin2021,headingtheleading
universal bank in Switzerland.In her role, she overseesour comprehensive
offering inretail andcorporate andinstitutional bankingin Switzerland,
selected financial services to businesses and financial institutions globally,
and wealth management services to individuals in Switzerland, whichare
providedjointlywithGlobalWealthManagement.Shehasbeena
member of the GEBsince 2016 and hasserved as Group COO, overseeing
technology,operations, humanresources andcorporate services,and as
President UBS Europe, Middle East and Africa.
Professional experience
2021 – date
President Personal & Corporate Banking and
President UBS Switzerland, UBS Group AG
2021 – date
President of the Executive Board, UBS Switzerland AG
2019 – 2021
President UBS Europe, Middle East and Africa, UBS
2018 – 2021
Group COO of UBS and President of the Executive Board,
UBS Business Solutions AG
2016 – 2021
Member of the Executive Board of UBS AG
2014 – 2017
Group Head Human Resources, UBS
2010 – 2014
COO UBS Switzerland, UBS
Education
–
Master’s degree, economic sciences, University of St. Gallen
–
Ph.D., economic sciences (Dr. oec.),University of St. Gallen
Listed company boards
–
Member of the Board of Zurich Insurance Group
Other activities and functions
–
President of the Executive Board of UBS Switzerland AG
–
Chairwoman of the Foundation Board of the Pension Fund of UBS
–
Chairwoman of the Board of the UBS Optimus Foundation
–
Member of the Board and Board Committee of Zurich Chamber of
Commerce
–
Member of the Foundation Council of the UBS Center for Economics
in Society, University of Zurich
–
Member of the Board of Trusteesof the HSG Foundation (University
of St. Gallen)
–
Member of the Foundation Board of Deep TechNation Switzerland
–
Member of the Board of the University Hospital Zurich Foundation
ubs-20251231p209i1 ubs-20251231p209i0
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Iqbal Khan
Co-President Global Wealth Management and
President UBS Asia Pacific, member of the GEB since 2019
Nationality:
Swiss |
Year of birth:
1976
IqbalKhanbecameCo-PresidentGlobalWealthManagementand
PresidentUBSAsiaPacificin2024.HejointlymanagesGlobalWealth
Management across allregions to ensurean unparalleled global offering
for ourwealth managementclient franchise.As RegionalPresident UBS
AsiaPacific,heisresponsibleforthecross-divisionalcollaborationand
representstheGrouptothebroaderpublicintheAsiaPacificregion.
Previously,he wasPresidentGlobal WealthManagement from2022 to
2024andPresidentUBSEurope,MiddleEastandAfricafrom2021to
2023.HejoinedUBSin2019asCo-PresidentGlobalWealth
Management. Prior to UBS, Mr. Khan was at Credit Suisse, holding senior
leadership positionsas CFO PrivateBanking & WealthManagement and
CEO International WealthManagement. He joinedErnst &Young in 2001,
whereheheldnumerousleadershippositionsand,uponleavingthat
company, he served as leadauditor of UBS.
Professional experience
2024 – date
President UBS Asia Pacific, UBS Group AG and UBS AG
2024 – date
Co-President Global Wealth Management, UBS Group
AG and UBS AG
2022 – 2024
President Global Wealth Management, UBS
2021 – 2023
President UBS Europe, Middle East and Africa, UBS
2019 – 2022
Co-President Global Wealth Management, UBS
2015 – 2019
CEO International Wealth Management, Credit Suisse
2013 – 2015
CFO Private Banking & Wealth Management,
Credit Suisse
2011 – 2013
Managing Partner Assurance and Advisory Services –
Financial Services, Ernst & Young
2009 – 2011
Industry Lead Partner Banking and Capital Markets,
Switzerland and EMEA Private Banking, Ernst & Young
2001 – 2009
Various positions in Ernst & Young
Education
–
Swiss Certified Public Accountant
–
Advanced Master of International Business Law (LL.M.) degree,
University of Zurich
Other activities and functions
–
Member of the Executive Board of
UBS AG
Barbara Levi
Group General Counsel, member of the GEB since 2021
Nationality:
Italian |
Year of birth:
1971
Barbara Levi has been Group General Counsel since 2021. In her role, she
provideslegaladviceandmanagestheGroup’slegalaffairs,ensuring
effective and timely assessment of legal matters impacting the Group and
itsbusinesses.BeforejoiningUBS,sheservedasChiefLegalOfficer&
External Affairs at Rio Tinto Groupand, before that, asGeneral Counsel,
basedinLondon.Inbothroles,shewasamemberofthatcompany’s
executive committee.Ms. Levibegan hercorporate careerwith Novartis
Group in 2004 and workedthere for 16 years, holdinga number of senior
legal roles across Europe.
Professional experience
2021 – date
Group General Counsel, UBS Group AG, and
General Counsel, UBS AG
2021
Chief Legal Officer & External Affairs, Rio Tinto Group
2020 – 2021
Group General Counsel, Rio Tinto Group
2019
Group Legal Head, M&A and Strategic Transactions,
Novartis
2016 – 2019
Global General Counsel, Sandoz International GmbH,
Novartis
2014 – 2016
Global Legal Head, Product Strategy & Commercialization,
Novartis
2013 – 2014
Global Legal Head, TechOps,Primary Care and Established
Medicines, Novartis
2009 – 2013
Head of Legal & Compliance, Region Asia-Pacific, Middle
East, and African Countries, Region Group Emerging
Markets, Novartis
Education
–
Law degree, the University of Milan
–
Master of Laws (LL.M.), banking, corporate and finance law, Fordham
University School of Law, New York
Other activities and functions
–
Member of the Executive Board of
UBS AG
–
Member of the Board of Directors of the European General Counsel
Association
–
Member of the Legal Committee of the Swiss-American Chamber of
Commerce
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Beatriz Martin Jimenez
Group Chief Operating Officer since January 2026, Head Non-Core
and Legacy and President UBS
Europe, Middle East and Africa
since 2023, member of the GEB since 2023
Nationality:
Spanish |
Year of birth:
1973
BeatrizMartinJimenezbecameGroupCOOinJanuary2026,withthe
Group Technologyfunction reporting toher.Since 2023, shehas served
as President UBS Europe, Middle East, andAfrica and Head Non-Core and
Legacy.AsGroupCOO,herresponsibilitiesencompassdevelopingand
coordinating the Group-wide operational integration, driving Group-wide
innovative technologysolutions anddigitalization, deliveringtechnology
services, and overseeingtechnology enabled changeinitiatives. The Group
COOisalsoresponsiblefortheimplementationoftheGroup’s
sustainabilityandimpactstrategy,whichhasbeenledbyMs.Martin
Jimenez since 2024.Her regional positionas President UBSEurope, Middle
East and Africa involves promoting collaboration across business divisions
andrepresentingUBSthroughouttheregion.Inaddition,Ms.Martin
Jimenez alsoserves asthe ChiefExecutivefor UBSin theUK. AsHead
Non-CoreandLegacy,shefocusesonmanagingderiskingandcost-
reduction efforts tiedto the integration process. Before joiningUBS, Ms.
Martin Jimenez held a variety of leadership roles infixed income sales and
trading at both Morgan Stanley and Deutsche Bank.
Professional experience
January 2026 –
date
Group Chief Operating Officer; UBS Group AG and
Chief Operating Officer, UBSAG
2023 – date
President UBS Europe, Middle East and Africa, UBS
Group AG and UBS AG
2023 – date
Head Non-core and Legacy,UBS Group AG and UBS
AG
2019 – date
UK Chief Executive, UBS AG London Branch
2024 – 2026
UBS GEB Lead for Sustainability and Impact, UBS
Group AG (transitioned to Group COO responsibilities
in 2026)
2022 – 2023
Chief Transformation Officer,UBS Group AG
2020 – 2023
Group Treasurer,UBS Group AG
2015 – 2020
COO, UBS Investment Bank
2015 – 2019
UK COO, UBS AG London Branch and UBS Limited
2012 – 2015
Chief of Staff to CEO, UBS Investment Bank
1996 – 2012
Various positions in Global Markets, Morgan Stanley
and Deutsche Bank
Education
–
Master of Business Administration, Universidad Autónoma de Madrid,
Madrid
–
Erasmus Exchange programme, Hochschule für Bankwirtschaft,
Frankfurt
Other activities and functions
–
Member of the Executive Board of
UBS AG
–
Member of the Board of Directors and President of the Executive
Board of UBS Business Solutions AG (as of February 2026)
–
Member of the Supervisory Board of UBS Europe SE
–
Member of the Board of Directors of Credit Suisse International
Markus Ronner
Group Chief Compliance and Governance Officer,member of the
GEB since 2018 (stepped down on 31 December 2025)
Nationality:
Swiss |
Year of birth:
1965
Markus Ronnerhas servedas GroupChief Complianceand Governance
Officer from2018 toDecember 2025,overseeing compliance,financial
crimepreventionand operationalriskcontrolaswell asregulatoryand
governance functionsat theGroup level.In morethan 40years atUBS,
heacquireddeepexpertiseacrossbusinessesandinnon-financialrisk
management and control. In thattime, Mr. Ronner held a variety ofsenior
positions across the firm, including managing the Group-wide too-big-to-
fail program, COOWealth Management & SwissBank, Head Productsand
Services of Wealth Management & Swiss Bank, COO Asset Management,
andHeadGroupInternalAudit.From2022until2023,heservedas
Chairman of UBS Switzerland AG, the leading Swiss universal bank.
Professional experience
2018 –
December 2025
Group Chief Compliance and Governance Officer,
UBS Group AG, and Chief Compliance and Governance
Officer,UBS AG
2022 – 2023
Chairman of UBS Switzerland AG
2012 – 2018
Head Group Regulatory and Governance, UBS
2011 – 2013
Manager Group-wide too-big-to-fail program, UBS
2010 – 2011
COO Wealth Management & Swiss Bank, UBS
2009 – 2010
Head Products and Services of Wealth Management &
Swiss Bank, UBS
2007 – 2009
COO Asset Management, UBS
2001 – 2007
Head Group Internal Audit, UBS
Education
–
Swiss Banking Diploma
Other activities and functions
–
Member of the Executive Board of
UBS AG
ubs-20251231p211i1 ubs-20251231p211i0
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Stefan Seiler
Head Group Human Resources and Corporate Services,
member of the GEB since 2023
Nationality:
Swiss |
Year of birth:
1974
Stefan Seiler wasappointed Head GroupHuman Resources andCorporate
Services in 2023. In thisrole, he manages thepeople, real estate, vendor
management,communications,brandingandmarketing,andsecurity
functions that supportthe firm’s long-termsuccess. Since joiningUBS in
2011,hehasheldseveralkeyleadershiproles,includingHeadHRfor
Switzerland and Group Functions, GlobalHead Talent and Recruiting, and
GroupHeadHRsince2018.Hestarted hiscareerattheSwissMilitary
Academy at the Swiss Federal Institute of Technology (ETH) Zurich, where
he later returned as Department Head of Leadership and Communication
afterbroadeninghisexperienceinthefinancialsectoratCreditSuisse
from 2002to 2006.He hasworked inSwitzerland, theUK, theUS and
Singapore.
Professional experience
2023 – date
Head Group Human Resources and Corporate Services,
UBS Group AG and Head Human Resources & Corporate
Services, UBS AG
2018 – 2023
Group Head Human Resources, UBS
2016 – 2018
Global Head Talent& Recruiting, UBS
2014 – 2016
Head HR UBS Switzerland and Global Head HR Group
Control & CEO Functions, UBS
2012 – 2016
Head HR UBS Switzerland, UBS
2011 – 2012
Global Head HR Corporate Center, UBS
2010 – 2011
Visiting Professor,Nanyang Business School, Singapore
2006 – 2011
Department Head of Leadership and Communication,
Swiss Military Academy, ETHZurich
2002 – 2006
Assessment specialist, HR TransformationManager and
Global Lead for Human Capital Management
Implementation Group Functions, Credit Suisse, Zurich and
New York
Education
–
Master of Science (lic. Phil.), Educational Psychology,University of
Fribourg
–
PhD in Educational Psychology,University of Fribourg
Other activities and functions
–
Member of the Executive Board of
UBS AG
–
Member of the Board of the UBS Optimus Foundation
–
Member of the Foundation Board of the Pension Fund of UBS
–
Member of the Foundation Council of the UBS Center for Economics
in Society, University of Zurich
–
Chairman of the Foundation Board of the Swiss Finance Institute
–
Member of the IMD Foundation Board
–
Adjunct Professor for Leadership and Strategic Human Resource
Management, Nanyang TechnologicalUniversity (NTU), Singapore
ToddTuckner
Group Chief Financial Officer,member of the GEB since 2023
Nationality:
American (US) |
Year of birth:
1965
Todd Tucknerbecame Group CFO in 2023. In January 2026, he also took
overresponsibilityforoverseeingtheGroup’sgovernmentaland
regulatoryaffairs,includingdevelopingandmaintainingtheGroup’s
recoveryand resolutionplans.As GroupCFO, heoverseesthe Group’s
financialaccounting,controlling,forecasting,planningandreporting
processes,ensuringthetransparencyinandtheassessmentofthe
financial performance of theGroup and the businessdivisions. He is also
responsible for managing and controlling the Group’s tax affairs, treasury
andcapitalmanagement,includingfundingandliquidityrisk,and
regulatorycapitalratios.Additionally,hecoordinatesrelationswith
analysts and investorsalongside the GroupCEO. He waspreviously CFO
andHeadBusinessPerformanceandRiskManagementforourGlobal
WealthManagementbusiness.Mr.TucknerjoinedUBSin2004after
working for KPMG for 17years and has since heldvarious leadership roles
across the Group Finance function.
Professional experience
2023 – date
Group CFO, UBS Group AG and CFO, UBS AG
2020 – 2023
CFO and Head Business Performance and Risk
Management, Global Wealth Management, UBS
2016 – 2021
Group Controller and Chief Accounting Officer,UBS
2012 – 2019
Group Finance COO, UBS
2009 – 2012
Group Head Tax& Accounting Policy, UBS
2004 – 2009
Group Head Tax– Americas, UBS
1987 – 2004
Various management positions, KPMG LLP,New York
Education
–
Bachelor’s degree, economics, Princeton University
–
MBA, accounting, New York University
Other activities and functions
–
Member of the Executive Board of
UBS AG
–
Member of the Financial Services Chapter Board of the Swiss-
American Chamber of Commerce
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Corporate governance and compensation | Corporate governance188
Marco Valla
Co-President Investment Bank, member of the GEB since 2024
Nationality:
American (US) |
Year of birth:
1972
MarcoVallabecameCo-Presidentof theInvestmentBankin 2024and
HeadofGlobalBankinginSeptember2025.Hejointlymanagesthe
Investment Bank withGeorge Athanasopoulos across allregions to ensure
anunparalleledglobalofferingforourclientfranchise.Hebeganhis
careeratCreditSuisseFirstBostonin1994asanInvestmentBanking
analyst,beforeworkingforLehmanBrothersandBarclays.Duringhis
tenureatBarclays,hewastheGlobalHeadofTechnology,Mediaand
Telecommunications(TMT)andConsumerRetailInvestmentBanking,
overseeingthecoverageoftechnology,media,telecommunications,
consumerandretailclients,andamemberoftheInvestmentBanking
Management Committee.
Professional experience
2024 – date
Co-President of the Investment Bank, UBS Group AG
and UBS AG
September 2025 –
date
Head of Global Banking
2023 – 2024
Co-Head of Global Banking, Investment Banking, UBS
2020 – 2023
Global Head of TMT and Consumer Retail, Investment
Banking
Member of the Investment Banking Management
Committee, Barclays
2013 – 2019
Global Co-Head of Consumer Retail Group, Investment
Banking, Barclays
2008 – 2013
Managing Director, RetailGroup, Investment Banking,
Barclays
2005 – 2008
Managing Director, RetailGroup, Investment Banking,
Lehman Brothers
1994 – 2005
Investment Banking, Credit Suisse First Boston
Education
–
Bachelor’s degree, economics and Italian literature, University of
California, Berkeley
Other activities and functions
–
Member of the Executive Board of
UBS AG
–
Member of the Board of Directors of Good Shepherd Services
–
Member of the Board of the Mount Sinai Department of Urology
Damian Vogel
Group Chief Risk Officer,member of the GEB since 2024
Nationality:
Swiss |
Year of birth:
1972
DamianVogelwasappointedGroupChiefRiskOfficerin2024andis
responsibleforthedevelopmentoftheGroup’sriskmanagementand
control frameworkfor various riskcategories and theimplementation of
its independentcontrol frameworks.Since joiningUBS in2010, heheld
various risk-relatedleadership rolesacrossGlobal WealthManagement,
Personal &Corporate Bankingand theSwitzerland regionbefore being
appointedChiefRiskOfficerforCreditSuisseandGroupRiskControl
Head ofIntegration in2023. Previously,he workedfor CreditSuisse as
Credit Risk Manager and Head Structured Lombard Solutions.
Professional experience
2024 – date
Group Chief Risk Officer,UBS Group AG and Chief Risk
Officer, UBS AG
2023 – 2024
Chief Risk Officer,Credit Suisse AG
Group Risk Control Head Integration, UBS
2018 – 2023
Chief Risk Officer Global Wealth Management, UBS
2016 – 2018
Chief Risk Officer Personal & Corporate Banking and
Region Switzerland, Zurich, UBS
2012 – 2016
Portfolio Underwriter and Head Risk Control Swiss
Corporates, Zurich, UBS
2010 – 2011
Project Manager within Chief Risk Officer Wealth
Management and Swiss Bank, Zurich, UBS
2009 – 2010
Credit Risk Manager,Credit Risk Management
Investment Banking, New York, CreditSuisse
2008 – 2009
Head Structured Lombard Solutions, Credit Risk
Management Private Banking, Zurich, Credit Suisse
1999 – 2008
Various management positions in Credit Suisse
Education
–
Bachelor’s degree, business and administration, University of Applied
Sciences, Visp
–
Executive Program, Stanford University Graduate School of Business
–
Master of Advanced Study, corporatefinance, University of Lucerne
Other activities and functions
–
Member of the Executive Board of
UBS AG
–
Member of the Board of Directors of UBS Switzerland AG
–
Member of Foundation Board of the International Financial Risk
Institute
Annual Report 2025 |
Corporate governance and compensation | Corporate governance189
Change of control and defense measures
Our Articlesof Association(the AoA)do notprovide anymeasures fordelaying, deferringor preventinga changeof
control.
Duty to make an offer
Pursuant to the SwissFederal Act on FinancialMarket Infrastructures andMarket Conduct in Securitiesand Derivatives
Tradingof 19 June 2015,anyone who hasacquired (whether directly,indirectly oracting in concertwith thirdparties)
more than33
1
⁄
3
% ofall votingrights ofa companywith atleast oneclass ofequity securitieslisted ona Swissstock
exchange, whethersuch rightsare exercisableor not,is requiredto submita takeoveroffer toacquire allother listed
equity securities of such company. We have not elected to change or opt out of this rule.
Clauses on change of control
Neither theterms regulatingthe BoDmembers’ mandatenor anyemployment contractswith GEBmembers oremployees
holding key functions within the Group contain change of control clauses.
All employment contracts withGEB members stipulate anotice period of six totwelve months. During thenotice period,
GEB members are entitled to their salaries and thecontinuation of existing employment benefits and may be eligible to
be considered for a discretionary performance award based on their contribution during their tenure.
In caseof achange ofcontrol, wemay, atour discretion,accelerate thevesting ofand /or relaxapplicable forfeiture
provisions of employees’ awards.
›
Refer to the
section of this report for more information
Auditors
Audit is an integralpart of corporate governance. While safeguardingtheir independence, the external auditors closely
coordinatetheirworkwithGroupInternalAudit.TheAuditCommitteeand,ultimately,theBoDsupervisesthe
effectiveness of audit work.
›
Refer to
in this section for more information about the Audit Committee
External independent auditors
The 2025 Annual General Meeting (the AGM) re-elected Ernst & Young Ltd(EY) as auditors for the Group for the 2025
financial year. EYassumes virtually allauditing functions accordingto laws, regulatoryrequests and theAoA. In2025,
Isabelle Santenac becamethe EY leadpartner in chargeof the UBSGroup financial andregulatory audits andthe lead
audit partner for the Group financialstatement audit, with an incumbencylimit of five years. Since 2023,Robert Wadley
has been a partner onthe financial statement audit, andin 2025 he became theco-signing partner, with an incumbency
limit of seven years. In 2021, Hannes Smit became the Lead Auditor to the Swiss Financial Market Supervisory Authority
(FINMA),with anincumbency limit ofseven years.Daniel Martinhas beenthe co-signingpartner forthe FINMAaudit
since 2019, with an incumbency limit of seven years. Mr. Martin will be succeeded in 2026 by Martin Waurick, who will
assume the role of co-signing partner for the FINMA audits, with an incumbency limit of seven years.
During 2025, the Audit Committee held 12 meetings with the external auditors.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance190
Audit effectiveness assessment
The Audit Committee assesses theperformance, effectiveness and independence ofthe external auditors on an annual
basis. The assessment is generally based on interviews with senior management and survey feedback from stakeholders
across the Group. Assessment criteriainclude quality of servicedelivery, quality and competence of the auditteam, value
addedaspartoftheaudit,insightfulness,andtheoverallrelationshipwithEY.Basedonitsownanalysisandthe
assessment results, including feedback receivedas part of the reviewof the Group auditengagement described above,
the Audit Committee concluded that EY’s audit has been effective.
Services performed by EY and related fees
The Audit Committee overseesall services providedto UBS by theexternal auditors. For services requiringthe approval
fromtheAuditCommittee, apreapprovalmaybegrantedeitherforaspecificmandate orintheformofablanket
preapproval authorizing a limitedand well-defined type and scopeof services. The fees (includingexpenses) paid to EY
are set forth in the table below.
Audit workincludes allservices necessaryto performthe auditfor theGroup inaccordance withapplicable lawsand
generallyacceptedauditingstandards,aswellasotherassuranceservicesthatconventionallyonlytheauditorcan
provide. These include statutory and regulatory audits, attestation services and the review of documents to be filed with
regulatory bodies.The additionalservices classifiedas auditin 2025included severalengagements forwhich EYwas
mandated at the request of FINMA.
Audit-relatedworkconsistsofassuranceandrelatedservicestraditionallyperformedbyauditors,suchasattestation
services related to financial reporting,internal control reviews and performancestandard reviews, as well as consultation
concerning financial accounting and reporting standards.
TaxworkinvolvesservicesperformedbyprofessionalstaffinEY’staxdivisionandincludestaxcomplianceandtax
consultation with respect to our own affairs.
“Other” services are permitted services, which include technical IT security control reviews and assessments.
In addition, EY received USD 53m in 2025(USD 52m in 2024) for services performed onbehalf of our investment funds,
many of which have independent fund boards or trustees.
Fees paid to EY
UBS Group AG and its subsidiaries paid the following fees (including expenses) to EY.
For the year ended
USD m
31.12.25
31.12.24
Audit
Global audit fees
100
121
Additional services classified as audit (services required by law or statute, including work of a non-recurring nature mandated by regulators)
51
24
Total audit
151
145
Non-audit
Audit-related fees
20
18
of which: assurance and attestation services
13
14
of which: control and performance reports
7
5
of which: consultation concerning financial accounting and reporting standards
0
0
Tax fees
2
3
All other fees
0
1
Total non-audit
22
22
Special auditors for potential capital increases
AttheAGMon24 April2024,BDOAGwasreappointedasspecialauditorsforathree-yeartermofoffice.Special
auditors provide audit opinions in connection with potential capital increases independently from other auditors.
Group Internal Audit
GroupInternalAuditperformstheinternalauditingrolefortheGroup.Itisanindependentfunctionthatprovides
expertise andinsights toconfirm controlsarefunctioning correctlyand highlightwhereUBS needsto bettermanage
currentandemergingrisks.In2025,GroupInternalAuditoperatedwithanaverageheadcountof775full-time
equivalent employees.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance191
Group InternalAudit supportsthe BoDin dischargingits governanceresponsibilities bytaking adynamic approachto
audit, issue assurance and riskassessment, confirming where controls arefunctioning well and highlighting whereUBS
needs to better manage current and emerging risks. By doingso, it drives action to prevent unexpected loss ordamage
to the firm’s reputation. To supportthe achievement of UBS’s objectives,Group Internal Audit independently, objectively
and systematically assesses the:
(i)
soundness of the Group’s risk and control culture;
(ii)
reliability and integrity of financial and operational information, including whether activities are properly, accurately
and completely recorded, and the quality of underlying data and models; and
(iii)
design, operating effectiveness and sustainability of:
–
processes to define strategy and risk appetite, as well as the overall adherence to the approved strategy;
–
governance processes;
–
risk management, including whether risks are appropriately identified and managed;
–
internal controls, specifically whether they are commensurate with the approved risk appetite;
–
remediation activities; and
–
processestocomplywithlegalandregulatoryrequirements,internalpolicies,andtheGroup’sconstitutional
documents and contracts.
Audit reports thatinclude significant issuesare provided tothe Group CEO,relevant GEB membersand other responsible
management. The Chairman, theAudit Committee and theRisk Committee of theBoD are regularlyinformed of such
issues.
In addition, GroupInternal Audit providesindependent assurance onthe effective andsustainable remediation ofcontrol
deficiencies within itsmandate, taking aprudent and conservativerisk-based approach andassessing at theissue level
whether the root cause and the potential exposure forthe firm have been holistically and sustainably addressed.Group
Internal Audit alsocooperates closely withrisk control functionsand internal andexternal legal advisorson investigations
into major control issues.
ToensureGroupInternalAudit’sindependencefrommanagement,theHeadGroupInternalAuditreportstothe
Chairman of the BoD and to the Audit Committee, which assesses annually whether Group Internal Audit has sufficient
resources to performits function, aswell as itsindependence and performance. Inthe Audit Committee’sassessment,
Group Internal Auditis sufficientlyresourced tofulfill its mandateand completeits auditingobjectives. GroupInternal
Audit’s role, position, responsibilities and accountability are set out inour Organization Regulations and the Charter for
GroupInternalAudit,availableat
ubs.com/governance.
GroupInternalAudithasunrestrictedaccesstoallaccounts,
books, records,systems, propertyand personnel,and mustbe providedwith allinformation anddata thatit needsto
fulfill itsauditing responsibilities.Group InternalAudit alsoconducts specialaudits atthe requestof theAudit Committee,
or other BoD members, committees or the Group CEO in consultation with the Audit Committee.
Group Internal Audit enhancesthe efficiency of itswork through coordination andclose cooperation with theexternal
auditors.
Information policy
We provide regular information to our shareholders and to the wider financial community.
Financial reports for UBS Group AG are expected to be published on the following dates:
First quarter 2026
29 April 2026
Second quarter 2026
29 July 2026
Third quarter 2026
28 October 2026
The annual general meetings of the shareholders of UBS Group AG will take place on the following dates:
2026
15 April 2026
2027
8 April 2027
›
Refer to the corporate calendar available at
ubs.com/investors
for the dates of the publication of financial reports and other key
dates, including the dates of the publication of UBS AG’sfinancial reports
We meet with institutional investors worldwidethroughout the year and regularly hold results presentations, attendand
present atinvestor conferences,and, fromtime totime, hostinvestor days.When appropriate,investor meetingsare
hosted bysenior managementand areattended bymembers ofour InvestorRelations team.We usevarious technologies,
such as webcasting, audio links and cross-location videoconferencing, to widen ouraudience and maintain contact with
shareholders globally.
Annual Report 2025 |
Corporate governance and compensation | Corporate governance192
We make our publications available toall shareholders simultaneously to provide themwith equal access to our financial
information.
Our annualand quarterlypublications areavailable ina fullydigital and .pdfformat at
ubs.com/investors
, under“Financial
information”. We nolonger provide printedcopies of ourAnnual Report andour Compensation Reportin any language.
›
Refer to
ubs.com/investors
for a complete set of published reporting documents and a selection of senior management industry
conference presentations
›
Refer to the
section of this report for more information
›
Refer to
in this report for more information
Financial disclosure principles
We fullysupport transparencyand consistentand informativedisclosure. Weaim tocommunicate ourstrategy andresults
inamannerthatenablesstakeholders togainagood understandingofhowour Groupoperates,whatourgrowth
prospects are, and the risks that ourbusinesses and our strategy entail. We assess feedback from analysts andinvestors
on a regular basis and,where appropriate, reflect this in ourdisclosures. To continue achieving these goals, we applythe
following principles in our financial reporting and disclosure:
–
transparency
, which enhances the understanding of economic drivers and builds trust and credibility;
–
consistency
, within each reporting period and between reporting periods;
–
simplicity
, which enables readers to gain a good understanding of the performance of our businesses;
–
relevance
,byfocusingnotonlyonwhatisrequiredbyregulationorstatutebutalsoonwhatisrelevanttoour
stakeholders; and
–
best practice
, which leads to improved standards.
We regard the continuous improvement of our disclosures as an ongoing commitment.
Financial reporting policies
WereportourGroup’sresultsforeachfinancialquarter,includingabreakdownofresultsbybusinessdivisionand
disclosures orkey developmentsrelating torisk managementand control,capital, liquidityand fundingmanagement.
Each quarter, we publish quarterly financial reports for UBS Group AG, on the same day as the earnings releases.
TheconsolidatedfinancialstatementsofUBSGroupAGandUBSAGarepreparedinaccordancewithInternational
Financial Reporting Standards as issued by the International Accounting Standards Board.
›
Refer to
in the
section of this report for
more information about the basis of accounting
We are committed to maintaining thetransparency of our reported results and allowinganalysts and investors to make
meaningful comparisons withprior periods. Ifthere is amajor reorganization ofour business divisionsor if changesto
accounting standards or interpretationslead to a materialchange in the Group’sreported results, our resultsare restated
for previousperiods asrequired byapplicable accountingstandards. Theserestatements showhow ourresults would
have been reported on the new basis and provide clear explanations of all relevant changes.
US disclosure requirements
As aforeign privateissuer,we mustfile reportsand other information,including certain financialreports, withthe US
Securities and Exchange Commission (the SEC) under the US federal securities laws.
An evaluation of the effectivenessof our disclosure controls andprocedures (as defined in Rule13a–15e) under the US
Securities Exchange Act of 1934 has been carried out, under thesupervision of management, including the Group CEO,
the Group CFOand the GroupController. Based onthat evaluation, andreflecting the determinationthat our internal
control over financialreporting was effectiveas of 31 December2025, the GroupCEO and theGroup CFO concluded
that our disclosure controls and procedures were effective as of 31 December 2025.
No significant changeshave been madeto our internalcontrols or toother factors thatcould significantly affectthese
controls subsequent to the date of their evaluation.
›
Refer to the
section of this report for more information
ubs-20251231p218i0
Advisory vote
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Corporate governance and compensation | Compensation194
Compensation
Julie G. Richardson
Chairperson of the
Compensation Committee
of the Board of Directors
Dear Shareholders,
TheBoardof Directors(the BoD)andIwishtothank youforyour supportonce againatlast year’sAnnual General
Meeting (the AGM) and for sharing your views on our compensation practices over the past year.
Throughout 2025, the BoDCompensation Committee continuedto oversee the compensationprocess, aiming toensure
thatrewardreflectsperformance,risk-takingisappropriateandemployees’interestsarealignedwiththoseofour
stakeholders. Following these reviews, weconcluded that our compensationframework remains well suitedto support
us inachieving ourambitions forthe Groupand thatit providesstrong alignmentwith shareholders’interests. Asthe
Chairperson of the Compensation Committee, I am pleased to present our Compensation Report for 2025.
Key achievements highlight the power of our globally diversified business model
In2025,wedeliveredexcellentfinancialperformance,demonstratingstrongclientrelationshipsandourfranchise
strengthaswecapturedclientmomentumanddroverevenuegrowth.Wehelpedclientsnavigateanunpredictable
market environment while making significantprogress on one of themost complex integrations in bankinghistory and
facingongoingregulatoryuncertaintyinSwitzerland.OurGroupinvestedassetsrose15%comparedwith2024,
exceeding the USD 7trn mark for the first time.
As a key pillar of our strategy,our balance sheet remains strong, as wecontinue to make further progress on integration
while creating value bycapturing long-term growth opportunities. Ourrisk aware approach andhighly robust business
model is reflected in the Group’s loan-to-deposit ratio of 83% and low credit risk.
We also maintained our commitment to being a reliable partner for the Swiss economy. We granted orrenewed around
CHF 80bn of loans during 2025.Throughout the year, we continued tosupport clients and the communities wherewe
liveandwork,whilefurtherinvestingintalentandcapabilities.Thisincludesartificialintelligence,wherewehave
transformational projects thatare designedto bolster ouroperational resilience, enhanceclient experience andunlock
higher levels of efficiency and effectiveness acrossthe organization. We remain firmly focused ondisciplined execution,
bringing thefull powerof UBSto ourclients andinvesting tosustain growth momentum,supporting continued value
creation in the years ahead.
On track to substantially complete the integration of Credit Suisse by the end of 2026
This yearwill be animportantmilestonein our integrationprogresswith complextasks at handand focuson fully realizing
the combined synergies resultingfrom theintegration of CreditSuisse. Building onour successin 2023and 2024,we
continuedto makeexcellentprogresson theintegration,which weexpect tosubstantiallycompleteby theend of2026. By
the end of 2025,85% of Swiss-bookedaccounts hadbeen migrated,and the migrationof Personal& Corporate Banking
client accounts wassubstantiallycomplete. We remainon track to complete the Swiss-bookedaccount migrationsby the
end of the firstquarter of 2026.In addition,we have completedthe integrationof Asset Management,including thefinal
portfoliomigrationsonto UBS platforms.
In 2025,we realizedan additional USD 3.2bnin grosscost savings.Cumulative gross costsavings atthe endof 2025
amounted toUSD 10.7bn compared withthe 2022combined costbase ofUBS andCredit Suisse. Wehave identified
additionalsynergies thathave enabledus to increaseour ambitionfor annualizedexit rate grosscost savingsby the end of
2026 fromaround USD13bn to approximatelyUSD 13.5bn.
At the end of 2025, our Non-core and Legacybusiness divisionhad reduced its risk weightedassets (RWA) by 67% since
the second quarter of 2023and its underlying operating expenses excluding litigation by approximately 80%compared
with thefull-year 2022 combined baseline.We achieved ourambition to reducecredit andmarket risk RWAto below
USD 8bn,and we arewell positionedto meet ourambition ofaround USD4bn by theend of 2026.
Leadership Development
Over thelast fewyears, significantprogresshas beenmade indevelopingthe depthof keytalent atseniorleadershiplevels.
Our GroupChief ExecutiveOfficer (theGroup CEO)has successfullyadjustedthe compositionof theGroupExecutiveBoard
(the GEB) inline withthe future strategic demands,as wellas makingseveral proactive moves thathave increasedthe
strength ofour seniorleadership.
ubs-20251231p219i0
Advisory vote
|
Corporate governance and compensation | Compensation195
Thesechangeshavesupportedthe successof bothour operationaland integrationinitiativeswhilealsoenhancingcapability
throughinternalmobilityand exposurein theorganization.This concertedeffort todevelopsenior leadershiphas produced
an even strongerand more cohesivesenior leadershipteam andGEB.
Financial performance
Underlying profitbeforetaxexcluding litigationincreased inallcoreregions, demonstrating thepowerofourglobal
franchiseand positioningthe firm forcontinuedsuccess. Netprofit attributableto shareholderswas USD 7,767m,up 53%
YoY.During 2025,we successfullyresolved severalsignificantlegal matters.
Underlying revenues from ourcore businesses increased 8%,reflecting the enduring advantagesof our diversified global
platform andbroad-based clientmomentum amidconstructive markets.Underlying revenuesin Non-coreand Legacy
decreasedbyUSD 1,455mfrom2024,drivenbytheprogressbythatdivisioninsignificantlyreducingthesizeofits
portfolio.
Commitment to return capital to shareholders
We remain committedto maintaining abalance sheet forall seasons. Ourcapital position wasfurther strengthened in
2025.Bothourcommonequitytier 1(CET1)capitalratio(14.4%)andourCET1leverageratio(4.4%)remained
comfortably above our guidance of ~14% and >4.0%, respectively.
Our business momentumfurther supported ourcapital position, enablingus todeliver on ourcapital return plans.For
2025, the BoD plansto propose a dividendto UBS Group AGshareholders of USD 1.10per share, an increaseof 22%
YoY.
In 2025, we completedour planned sharerepurchases of USD 3bn.In 2026, weintend to repurchaseUSD 3bn of shares,
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 ~14%.
2025 Group performance award pool
For 2025, theGroup performance awardpool was determinedbased on financialperformance, along withconsideration
of other non-financialfactors, such asspecific focus onrisk management, achievingof strategic objectivesand market
position and trends. As a result, theoverall pool of USD 5.1bn reflects our strongfinancial performance compared with
2024,theprogresswiththeintegrationandtheresolutionoflitigationmatters,aswellasmarket-competitive
considerations.
In line withour long-standing approach, ourpool determination includesconsideration of theimpact of bothfinancial
and non-financial risk (including reputation)matters. We further consider thefirm’s risk profile and culture,the extent to
and the success of risk reduction initiatives at apool level. In 2025, we reviewed certain significant events indetail with
respecttoindividualaccountabilityandperformanceandcompensationoutcomes,includingindividualdisciplinary
consequences where relevant.
ubs-20251231p220i1
Advisory vote
|
Corporate governance and compensation | Compensation196
Compensationdecisionscontinuedtobeguidedbyourrobustpay-for-performancephilosophy,ensuringsignificant
differentiation of compensation that reflects individualand business performance. This is essentialto support driving our
high performance culture,as well asattracting and retaininga talented workforcethat delivers onour integration and
strategic objectives.
Compensation for each GEB member is based ona robust assessment of their financial and non-financial performance,
which ispredominantly basedon theachievements relativeto concretequantitative andmeasurable keyperformance
indicators. Awards for 2025 reflectthe outstanding performance of theGEB, including the Group CEO,in the context of
excellentoverallGroupperformance,significantprogressonourintegrationandtheresolutionoflegacylitigation
matters.
Continuity of our overall compensation framework
Since 2012,ourcompensation frameworkhasbeenfundamentally consistentand isconsidered wellestablishedand
tested overtime. Aftera carefulreview ofinvestor feedbackand competitivepractice, theCompensation Committee
confirmed that ourTotal Reward Principlesand overall compensationframework continue tosupport the alignmentof
compensation with the executionof our strategy, sustainableperformance and the deliveryof our integration objectives.
Overall,theGEBcompensationframeworkremainsconsistentwithprioryears.WithrespecttotheGroupCEO,the
significant deferral level, structure and vesting schedule over five years remain unchanged.
For theother GEBmembers, thevesting schedule alsoremains unchanged.We havealigned thedeferral leveltoward
the competitivemarket, introducingan approachwhere deferrallevels increaseprogressively withhigher performance
award levels, as well as differentiatingthe deferral mix between the Long-TermIncentive Plan (the LTIP) andthe Deferred
Contingent Capital Plan.
ThisapproachprovidesgreaterpotentialfordeferralintotheLTIP,which,coupledwithoursignificantGEBshare
ownership requirements, supportsstrong long-term alignmentwith our strategyand shareholder interests.We believe
our revised deferral regime continues to be morestringent than the competitive market, with deferral levelsand delivery
schedules that exceed those typically observed in the industry.
Regarding ourLTIP awardsgranted for2025 performance,we havereviewed ourthree-year average(2026 through2028)
reportedreturnonCET1(RoCET1)performancemetrictoappropriatelyincentivizemanagementtodeliveronour
evolvingreturnambitionsreflectingourprogressontheintegration.WehavethereforeincreasedtheRoCET1
performance range to require higher return levels for vesting:
–the required performance threshold for theminimum payout has been raised to8%, compared with 7.5% last year;
and
–the required performance for a maximum payout has been increased to 16%, compared with 14% last year.
Resolution of the French cross-border matter and impact on GEB deferred compensation
In 2019, theCompensation Committeedetermined that upto 30% (CHF 7.9m)of the 2019LTIP awards forrelevant GEB
members and the share awardof the former Chairmanwould remain at risk andheld back from deliveryuntil the French
cross-border matterwas resolved.Following itsresolution andthe betteroutcome relativeto thepreviously disclosed
potential outcomes, theCompensation Committeeapplied a fact-basedreduction to thefinal value ofthe award of10%
of the shares at risk.As previously disclosed in the2019 Compensation Report, the reductionis based on the finalcost
associatedwiththeresolutionofthematter,ensuringcompensationoutcomesreflectedthefinalimpact.The
CompensationCommitteealsoconcludedthattherewasnonewinformationthatwouldhaveimpactedour
compensation decision in 2019.
These mechanisms underscore UBS’s commitment to aligning management accountability with shareholder interests.
The 2026 Annual General Meeting
At the 2026 AGM on 15 April, we will seek your support on the following compensation-related items:
–the maximum aggregate amount of compensationfor the BoD for the periodfrom the 2026 AGM to the 2027AGM;
–the maximum aggregate amount of fixed compensation for the GEB for 2027;
–the aggregate amount of variable compensation for the GEB for 2025; and
–shareholder endorsement in an advisory vote for this Compensation Report.
On behalf ofthe Compensation Committee andthe BoD, Ithank you againfor your feedbackand we respectfullyask
for your continued support at the upcoming AGM.
Julie G. Richardson
Chairperson of the Compensation Committee of the Board of Directors
Advisory vote
|
Corporate governance and compensation | Compensation197
2025 key compensation themes
The feedback that we seek fromour shareholders about compensation-related topics is veryimportant to us, as we are
committedtomaintainingastronglinkbetweentheinterestsofouremployeesandthoseofourshareholders.We
continuedengagingwithshareholdersduring2025andreceivedoverallpositivefeedbackaboutourcompensation
framework. The below summarizes key compensation themes for 2025 and provides answers to the questions we most
frequently receive from shareholders.
Summary of 2025 key compensation themes / responses to frequently asked questions
How does UBS reflect environmental and sustainability themes in the compensation determination process?
Environmental and sustainability objectives continueto be an integral partof our compensation determination process.
Since 2011we haveembedded environmental,social andgovernance (ESG)-relatedobjectives inour Pillarsand Principles,
and since2021 wehave explicitsustainability-related objectivesin thenon-financial goalcategory ofthe GroupChief
Executive Officer and Group ExecutiveBoard (GEB) scorecards. Over time,we have refined our approach; forexample, in
2023 we enhanced the GEB scorecardby establishing separate categories for Environmentaland Sustainability as well as
People and Governance. Thesecategories are unchanged since2023. This structure, withtwo out of fivenon-financial
categoriescoveringESG-relatedobjectives,underscorestheimportanceandimpactofsustainabilityonGEB
compensation. All five non-financial categories are equally weighted (6% per category) and have a combined weight of
30% in the GEB performance assessment. This provides a combined weight of 12% for ESG-related themes.
For the2025 performanceassessment ofthe GEB,we maintainour strongfocus onsupporting ourclients’ activities
related to the environment and sustainability. The following achievements demonstrate the strong progressmade in this
area:
–
we exceeded ourambition of raisingUSD 400m per annumin donations (includingUBS matching contributions)by
2027 with the UBS Optimus network of foundations raising USD 472m in such donations in 2025; and
–
weexceeded ourambitionof20%with23.4%ofAssetManagement’s fundofferinggloballybeingsustainable-
investing products, providing choice for clients (over a three-year rolling basis).
In addition,we achieveda topquartile positionversus directpeers inthree keyESG ratingsin 2025.Furthermore, the
following achievements demonstrate our2025 progress toreducing our scope 1and 2 emissionsto net zeroby 2035,
as well as delivering against our lending sector decarbonization and financed emissions reduction targets:
–
scope 1 and market-based scope 2 emissions reduced by 48% compared with 2023 baseline;
–
absolute own energy consumption reduced by 19% compared with 2023 baseline;
–
reduced emissionsintensity associatedwith in-scopelending comparedwith 2021levels –Swiss commercialreal estate
down 10%,Swiss residentialreal estatedown 15%,power generation down55%, ironand steeldown 14%, and
cement down 4%; and
–
reduced absolutefinanced emissionsassociated within-scope lendingfor fossilfuels by83% comparedwith 2021
baseline.
How does UBS support pay fairness?
We pay forperformance, and wetake pay equityseriously. Across allour locations, weapply the samefair pay standards,
reinforced by annual reviewsof our approach andpolicies in line withestablished equal pay methodologies.In 2025, our
statistical paygap analysesreaffirmed thatpay differencesbetween maleand femaleemployees insimilar rolesacross
our core financialhubs remained below1%, a differenceconsistent with thatfor 2024. Ifwe find anygaps not explained
by business or byappropriate employee factors, suchas role, responsibility, experience,performance or location, welook
at the root causes and address them.
›
Refer to the “Compensation philosophy and governance” section of this report for more information aboutpay fairness
›
Refer to the “People and culture make the difference“ section ofthe UBS Group Sustainability Report 2025, available under
“Annual reporting” at
ubs.com/investors
, for more information about workforce inclusion
How is UBS supporting employees during the ongoing integration period?
We are committed to being a responsible employer. We promote employee health and well-being, and, where possible,
we offerflexible workingarrangements. Social, physical,mental andfinancial well-beingelements arewoven intoour
HR policies and practices. For example, our support for employee well-being includes a range of programs, benefits and
workplace resources, alongwith specialized eLearningcurriculums and toolkitsto help employeesbetter manage their
health, foster well-being andstrengthen their resilience. Adedicated well-being portalconsolidates our global offering
and promotes regional networks, initiatives and resources.
To support employees during the integration,UBS offers a wide rangeof well-being sessions with internal andexternal
experts on the themes of resilience, growth mindset, dealing with uncertainty and burnoutprevention. Employees have
ongoing access to confidential support from our global Employee Assistance and Care Programs.
Advisory vote
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Corporate governance and compensation | Compensation198
Shouldbusinessororganizationalcircumstancesarisethatleadtoemployeeredundancy,weofferprofessional
reorientation services witha focuson redeployment withinUBS. We alsohave extensive actionplans forredundancies
that include provision for coaching services, reskilling programs, placements and / or redundancy payments.
›
Refer to the “Health and Safety Statement”, available at
ubs.com/sustainability-reporting
, for information about UBS’s health and
safety statement
›
Refer to
ubs.com/employees
for more information about benefits and assistance
How does the 2025 Long-Term Incentive Plan work and what does the grant level of 50% of the maximum
opportunity mean?
Consistent with our approach applied in2023 and 2024, a portion ofvariable compensation granted to a broadgroup
of senior leaders (including the GEB) is deferred intoour Long-Term Incentive Plan (the LTIP) award. The LTIPis an equity-
based award and the final value is subject to performance conditions as well as share price development. The 2025 LTIP
continues withthe sametwo equallyweighted performancemetrics (reportedreturn oncommon equitytier 1capital
(RoCET1) and relative total shareholder return (rTSR)), which are assessed over a three-year performance period.
At grant, the value of thedeferred portion is converted intoan initial allocation of shares basedon the grant share price.
This initialshare allocationrepresents 50%of themaximum opportunity,which iscapped at100%. Thefinal performance
outcome will range from 0% to 100% of this maximum, subject to the outlined performance conditions.
If the final performance outcomeis 50%, the participant wouldreceive exactly the initially allocatedshares, which is also
the same number of shares as for an individual who deferred compensation into equity shares.
Each participant has the potential todouble the number of shares initiallyallocated, if reported RoCET1 over the three-
year performance period is at or above 16% and relative total shareholder return (rTSR) is 25 percentage points or more
above the peer group index.Similarly, each participant would lose100% of the allocated sharesif reported RoCET1 over
the three-year performance period is less than 8% and rTSR is below the peer group index by more than 25 percentage
points.
Theinitialshareallocationat50%ofthemaximumopportunityisnotasharepricediscountbutratherreflectsthe
inherent risk of losing 100% of the initially allocated shares.
›
Refer to “2025 Group performance outcomes” in the “Group compensation” section of thisreport for more information
Illustrative example
An employee receives a deferralof compensation into an LTIPaward with a value ofCHF 100,000 granted at a share
price of CHF32.924 per share(based onthe averageclosing priceof UBS sharesover the lastten tradingdays leading
uptoandincludingtheawarddateinFebruary).Thisrepresentstheawardallocationof50%ofthemaximum
opportunity. The actual LTIP value at the end of the performance period may vary between:
–
CHF 0, i.e. no value,if the achievement levelof the performance metricsat the end ofthe three-year performance
period produce a weighted outcome that is below 33%; and
–
CHF 200,000, ifthe achievementlevel ofthe performancemetrics atthe endof thethree-year performanceperiod
produce a weighted outcome that is at or above 100%, assuming no change in share price.
Ultimately, thevalueofthedeferral atthe endofthe performanceperiodisdetermined byconsideration ofthe
performance achievement coupled withshare price development (positiveor negative). In this manner,management
is incentivized to deliver on strategy, integrationtargets and financial objectives and todrive long-term growth while
also being fully aligned with shareholders on share price development and relative shareholder returns.
What is the achievement level of the LTIP granted in 2023 for 2022 performance?
The performance award grantedin 2023 for the2022 financial performanceyear (the 2022 LTIP)to members of theGEB
was in part delivered through theLTIP award. This award has beendesigned to support alignment of compensationwith
the execution of our strategy, financial performance and long-term growth.
Theperformancemetricsofthe2022LTIPareaveragereportedRoCET1andrTSR,bothmeasuredoverathree-year
performance period from 2023 to 2025.
In2022,whentheCompensationCommitteesettherelevantperformancerangeofthereportedRoCET1metric
(i.e. 8%–18% for the performance period 2023–2025), itconsidered several factors including our strategic plan,which
atthattimereflectedacommunicatedreportedRoCET1targetrangeof15%–18%.However,theacquisitionand
integration of the Credit Suisse Group significantly impacted the financial results of UBSduring the performance period
of the 2022 LTIP.
Against thisbackground, theCompensation Committee hascarefully considered theseintegration-related aspects and
made the following adjustments to the reported RoCET1 for 2023, 2024and 2025 in order to determine the 2022 LTIP
achievement levelin linewith ourstrict pay-for-performanceapproach andto removeboth thepositive andnegative
impacts related to the integration.
ubs-20251231p223i0
Advisory vote
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Corporate governance and compensation | Compensation199
–
For the assessmentof the 2023RoCET1 outcome, asalready communicated inthe Compensation Report2023, we
used UBS sub-groupresults as astarting point andexcluded the positiveand negative one-timefinancial impacts of
the acquisition of the Credit Suisse Group (such as the negative goodwill, or gain, of USD 27.7bn for 2023).
–
For the assessment of the 2024 and 2025 RoCET1outcomes, we used UBS Group results and applied an adjustment
based on a review of theplans before and after the integrationin order to align the RoCET1performance relative to
the plan applicable at the time of grant.
The Compensation Committee has consistently applied the adjustment approach outlined above for the RoCET1 metric.
As disclosed in 2023 and 2024, these adjustments reduced the three-year average RoCET1 metric outcomes and overall
achievement levelsof the2020 and2021 LTIPawards. Forthe 2022LTIP, theCommittee appliedthe sameconsistent
approach, which resulted in a negative impact to the three-year average RoCET1 metric, which nonetheless still resulted
in a 100% achievement level. Noadjustments were made to the rTSRmetric, which is –17.45 percentage points below
the index, resulting in a rTSR achievement level of 43.12%.
Consequently, thecombined achievementlevel ofthe 2022LTIP resultedin 71.56%of themaximum opportunity(100%),
aligned withthe grantfair valueof 71.45%in 2022.This outcomeis 21.8 percentagepoints belowthe achievement
level ofthe 2021LTIP, primarilydriven bythe lowerrTSR performance.This developmentdemonstrates howour LTIP
designconsistentlyenforcesastrictpay-for-performanceapproachandensuresalignmentwiththeshareholder
experience.
Advisory vote
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Corporate governance and compensation | Compensation200
Say-on-pay
Say-on-pay votes at the AGM
InlinewiththeSwissCodeofObligations,weseekbindingshareholderapprovalfortheaggregatecompensation
awarded to the Group Executive Board (the GEB) and the Board of Directors (the BoD). Prospective approval of the fixed
compensation oftheBoDandGEBprovides thefirmanditsgoverningbodies withthecertainty neededtooperate
effectively. Retrospective approval of the GEB’svariable compensation aligns their compensation withperformance and
contribution.
The tablebelow outlinesour compensationproposals, includingsupporting rationales,that weplan tosubmit tothe
2026 Annual General Meeting (the AGM) forbinding votes, in line with the SwissCode of Obligations and our Articles
of Association.
These bindingvotes oncompensation andthe advisoryvote onour CompensationReport reflectour commitmentto
shareholders having their say on pay.
›
Refer to “Provisions of the Articles of Association related to compensation” in the “Supplementalinformation” section of this
report for more information
Audited |
Approved GEB fixed compensation and BoD compensation
At the 2024AGM, the shareholdersapproved a maximumaggregate fixed compensationamount of CHF 33.0mfor GEB
members forthe 2025performance year.Thisamount reflectsbase salariesand estimatedstandardcontributions to
retirement benefit plans, as wellas other benefits. Theaggregate fixed compensation paidin 2025 to GEBmembers was
below the approved amount for 2025.
At the2025 AGM,the shareholdersapproved amaximum aggregateamount ofcompensation ofCHF 15.0m forthe
members of the BoD for the period from the 2025 AGM to the 2026 AGM.
›
Refer to “2025 total compensation for the GEB members” in the “Compensation for GEB members” section of this report
›
Refer to “Remuneration details and additional information for BoD members” in the “Compensation for the Boardof Directors”
section of this report
Compensation-related proposals for binding and advisory votes at the 2026 AGM
Item
Approved at the 2025
AGM
BoD proposals for the
2026 AGM
Rationale
GEB variable
compensation
Shareholders approved
CHF 114,185,176 for the
2024 financial year
1,2,3
(vote “for”: 89.71%)
The BoD proposes an
aggregate amount of
variable compensation of
CHF 118,857,500
4
for the
members of the GEB for
the 2025 financial year.
The GEB performanceaward pool reflects theoutstanding performance ofthe GEB,
includingtheGroupChiefExecutiveOfficer(theGroupCEO),inthecontextof
excellent overallGroup performance,significant progresson ourintegration and
the resolution of legacy litigation matters.The 2025 GEB performance award pool
increased by4%, whichis belowthe Groupperformance awardpool increaseof
10% year on year.
GEB fixed
compensation
Shareholders approved
CHF 32,000,000 for the
2026 financial year
1,2,3
(vote “for”: 92.68%)
The BoD proposes a
maximum aggregate
amount of fixed
compensation of
CHF 30,000,000 for the
members of the GEB for
the 2027 financial year.
The proposed amountfor 2027 has beenreduced by CHF 2mcompared with the
approved 2026 aggregate amount.This reduction is driven bychanges in the GEB
composition resulting in fewerGEB roles. The proposedamount includes the base
salaries of the GroupCEO and other GEB members,as well as estimated standard
contributions toretirement benefitplans andother benefits.The amountfurther
providesflexibilityinlightofpotentialchangesinGEBcompositionorroles,
competitiveconsiderationsandotherfactors(e.g.changesinforeignexchange
rates or benefits).
BoD
compensation
Shareholders approved
CHF 15,000,000 for the
period from the 2025
AGM to the 2026
AGM
1,2,5
(vote “for”: 90.91%)
The BoD proposes a
maximum aggregate
amount of compensation
of CHF 15,000,000 for the
members of the BoD for
the period from the 2026
AGM to the 2027 AGM.
Theproposedamountisunchangedcomparedwiththeapprovedaggregate
amount for theprevious period fromthe 2025 AGMto the 2026AGM. The amount
includes thetotal compensationfor theChairman andthe ViceChairman, both
withunchangedfixedfees.ThefeestructurefortheotherBoDmembersalso
remainsunchanged.
Advisory vote
on the
Compensation
Report
Shareholders approved the
UBS Group AG
Compensation Report
2024 in an advisory vote
(vote “for”: 86.70%)
The BoD proposes that the
UBS Group AG
Compensation Report
2025 be ratified in an
advisory vote.
Our Total Reward Principlesand compensation framework continue to support the
alignmentofcompensationwiththeexecutionofourstrategyandsustainable
performance. Overall,the GEBcompensation frameworkremains consistentwith
prior years. Forthe GroupCEO the frameworkremains unchanged,while for the
other GEB members wehave introduced an approach wheredeferral levels increase
progressively withhigher performanceaward levels,as wellas differentiatingthe
deferralmixbetweentheLong-TermIncentivePlan(theLTIP)andtheDeferred
Contingent Capital Plan. This approachprovides greater potential fordeferral into
theLTIP,whichsupportsstronglong-termalignmentwithourstrategyand
shareholder interests. In addition, our compensation policies continueto reflect our
strong commitment to pay for performance and pay equity.
1
Local currencies are converted into Swiss francs at the 2025 performance awardcurrency exchange rates.
2
Excludes the portion related to the legally required employer’ssocial security contributions.
3
As stated
in “Group Executive Board” in the “Corporate governance” section of this report, 15 GEB members were in office on 31 December 2025 and on 31 December 2024.
4
Includes LTIP awards for the 2025 performance
year with a communicated value of 50% of the maximum opportunity (100%).
5
Twelve BoD members were in office on 31 December 2025 and on 31 December 2024.
ubs-20251231p225i0
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Compensation philosophy and governance
Our compensation philosophy
Total Reward Principles
Our TotalReward Principles are fully aligned with our strategy and encourage employees to live our strong and inclusive
culturethatisgroundedinourthreekeystosuccess:our
Pillars,PrinciplesandBehaviors.
Theseguidingprinciples
underpin our approach tocompensation and define our compensationframework. In 2025, wekept our TotalReward
Principles largely unchanged, reaffirming their continued alignmentwith our strategy and our three keysto success. This
aims to ensurethat the interestsof our employeesare alignedwith those ofour clients andother stakeholders. Inthe
short-to-medium term,they also enableUBS to drivethe economic andcultural integration ofCredit Suisse andthe long-
term value creation of the combined firm.
Therefore,ourcompensationapproachsupportsourcapitalstrengthandriskmanagement,andprovidesfor
simplification and efficiency. It encourages employees tofocus on client centricity, connectivity and sustainable impactin
everything wedo. Moreover,we rewardbehaviors andconduct thathelp buildand protectthe firm’sreputation, including
Accountability withintegrity,CollaborationandInnovation. Compensationforeachemployeeisbasedonindividual,
team, business division and Group performance,within the context of the markets in which we operate.
Total Reward Principles
Our TotalReward Principles apply to all employees globally but vary in certain locations according to local legal
requirements, regulations and practices. The table below provides a summary of our TotalReward Principles.
Reinforce our culture and strategy
Compensation reinforces and aligns with the firm’s culture and strategy,fosters engagement among
employees and aligns their long-term interests with those of clients and stakeholders.
Attract, retain and motivate a talented
workforce
We provide competitive and fair pay to support our global workforce based on meritocracy.Pay at UBS
reflects fair and equal treatment and is competitive. Our investment in a motivated workforce supports the
sustainability of the organization.
Foster pay-for-performance aligned with
sustainable achievement and our ways of
working
We pay for sustainable and holistic performance. Clear objectives, as well as a thorough evaluation of
what was achieved and how it was achieved, combined with effective communication, promote clarity,
accountability and establish a strong link between pay and performance. This approach emphasizes
behaviors and conduct, including Accountability with integrity, Collaboration and Innovation.
Reinforce sustainable long-term value
creation and growth
Compensation is appropriately balanced between fixed and variable elements and delivered over an
adequate period to support our growth ambitions and sustainable performance.
Support risk awareness and appropriate
risk-taking
Our compensation structure encourages employees to have a focus on risk management and behave
consistently with the firm’s risk framework and appetite, thereby anticipating and managing risks
effectively to protect our capital and reputation.
Our Total Reward approach
WeapplyaholisticTotalRewardapproach,generallyconsistingoffixedcompensation(basesalaryandrole-based
allowances,ifapplicable),performanceawards,pensioncontributionsandbenefits.OurTotalRewardapproachis
structured to support sustainable results and growth ambitions.
For employees whose total compensation exceedscertain levels, performance awards aredelivered in a combination of
cash, deferred contingent capital awards and deferred share-based awards.
A substantialportion ofperformance awardsis deferredand vests overa five-year period.This deferralapproach supports
alignment of employee and investor interests, our capital base and the creation of sustainable shareholder value.
›
Refer to “Compensation elements for all employees” in the “Group compensation” section ofthis report for more information
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Fair and equitable pay
Pay equity and equal opportunity are fundamental to support our strategy. Being an employer of choice and inclusive of
all experiences,perspectives andbackgrounds iscritical toour success.Factors suchas gender,culture, race,ethnicity,
sexualorientationandidentity,disability,family,veteranstatus,generationsandpart-timestatusshouldnotimpact
opportunities available to our employees.
Fair and consistentpay practicesare designedto ensure thatemployees areappropriately rewardedfor their contribution.
We pay for performance,and we take pay equityseriously. Across all ourlocations we apply the samefair pay standards,
reinforced by annual reviews of our approach and policies in line with established equal pay methodologies.
In 2025, our statisticalpay gap analyses reaffirmedthat pay differences betweenmale and female employeesin similar
roles across our core financial hubs remained below 1%, a difference consistent with that for 2024. Ifwe find any gaps
not explainedby businessor byappropriate employeefactors, suchas role,responsibility, experience,performance or
location, we look at the root causes and address them.
We also aim to ensure that all employees are paid at least a living wage. We regularly assess employees’ salaries against
local living wages, using benchmarksdefined by the FairWage Network. Our analysis in2025 showed that employees’
salaries were at or above the respective benchmarks.
›
Refer to the “People and culture make the difference“ section ofthe UBS Group Sustainability Report 2025, available under
“Annual reporting” at
ubs.com/investors
, for more information about workplace inclusion
Compensation governance
Board of Directors and Compensation Committee
TheBoardofDirectors(theBoD)isultimatelyresponsibleforapprovingthecompensationstrategyandprinciples
proposed by the CompensationCommittee, which determines compensation-related mattersin line with theprinciples
set forth in the Articles of Association (the AoA).
As determined inthe AoA andthe firm’s OrganizationRegulations, the CompensationCommittee supports theBoD with
itsdutiestosetguidelinesoncompensationandbenefits,tooverseeimplementationthereof,toapprovecertain
compensationandtoscrutinizeexecutiveperformance.TheCompensationCommitteeconsistsofindependentBoD
members, whoare electedannually byshareholders atthe AnnualGeneral Meeting(the AGM),and isresponsible for
governanceandoversight ofourcompensation processandpractices.Thisincludesthealignmentbetweenpayand
performance, and ensuring thatthe compensation framework supportsappropriate risk awareness andmanagement, as
well as appropriate risk-taking. In 2025,to additionally support the connection between theCompensation Committee
and the Risk Committee, the Compensation Committee Chairperson was also a member of the Risk Committee.
Annually, and on behalf of the BoD, the Compensation Committee:
–
reviews our Total Reward Principles;
–
approves key features of the compensation framework for the members of the Group Executive Board (the GEB);
–
reviews performance award funding throughout the year andproposes, upon proposal of the Group ChiefExecutive
Officer (the Group CEO), the final annual Group performance award pool to the BoD for approval;
–
upon proposal of the Group CEO, approves the performance assessment framework for the other GEB members;
–
upon proposal ofthe Group CEO,proposes the performanceassessments and theindividual total compensationfor
the other GEB members for approval by the BoD;
–
upon proposalof theChairman, forthe GroupCEO, proposesthe financialperformance targetsand non-financial
objectives, the performance assessment and the total compensation for approval by the BoD;
–
approves the total compensation for the Chairman and the non-independent BoD members;
–
proposes the remuneration / fee framework for BoD members for approval by the BoD;
–
uponproposaloftheChairmanandtheGroupCEO,approvestheremuneration/feeframeworksforexternal
supervisory boardmembers ofSignificant GroupEntities andis informedof remuneration/ feeframeworks forexternal
supervisory board members of Significant Regional Entities;
–
proposes to the BoD forapproval the annual compensation reportand approves other material publicdisclosures on
UBS compensation matters; and
–
proposes tothe BoD,for approvalby theAGM, themaximum aggregateamounts ofBoD compensationand GEB
fixed compensation and the aggregate amount of variable compensation for the GEB.
The Compensation Committee isrequired to meetat least fourtimes each year.All meetings in2025 were heldin the
presence of the Chairman and the Group CEO. Externaladvisors were present when required. Individuals, including the
ChairmanandtheGroupCEO,arenotpermittedtoattendameetingorparticipateinadiscussionontheirown
performance and compensation.
Afterthemeetings,theChairpersonoftheCompensationCommitteereportstotheBoDontheCompensation
Committee’s activities anddiscussions and, ifnecessary, submits proposalsfor approval bythe full BoD.Compensation
CommitteemeetingminutesarealsosenttoallmembersoftheBoD.On31 December2025,themembersofthe
Compensation Committee were Julie G. Richardson (Chairperson), Gail Kelly and Jeanette Wong.
›
Refer to “Board of Directors” in the “Corporate governance”section of this report for more information
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External advisors
The CompensationCommittee mayretain externaladvisors tosupport itin fulfillingits duties.In 2025,HCM International
Ltd.(HCM)providedindependentadviceoncompensationmatters.HCMholdsnoothermandateswithUBS.
Additionally,Willis TowersWatson plc(WTW) provided theCompensation Committee with dataon market trendsand
pay levels. Various subsidiaries of WTW providesimilar information to UBS’s human resources department in relation to
compensation for employees,including advisory servicesand secondments toUBS to supportthe ongoing integration.
WTW holds no other compensation-related mandates with UBS.
The Risk Committee’s role in compensation
The RiskCommittee, acommittee ofthe BoD,works closelywith theCompensation Committeewith thegoal ofensuring
that our compensationframework appropriately reflectsrisk awareness andmanagement,and supports appropriaterisk-
taking. It supervises andsets appropriate risk managementand risk control principles andis regularly briefed onhow risk
is factored into the compensation process.It also monitors the involvement of GroupRisk Control and Compliance and
Operational Risk Control in compensation and reviews risk-related aspects of the compensation process.
›
Refer to
ubs.com/governance
for more information
Compensation Committee 2025 / 2026 key activities and timeline
July
Sept
Oct
Nov
Dec
1
Jan
1
Feb
Strategy, policy and governance
Total Reward Principles
l
Integration-related compensation matters
l
l
l
l
l
Pay fairness and sustainability in the compensation process
l
l
l
l
Compensation disclosure and stakeholder communication matters
l
l
l
l
AGM reward-related items
l
l
Compensation Committee governance
l
l
Annual compensation review
Accruals and full-year forecast of the performance award pool funding
l
l
l
l
l
Performance targets and performance assessment of the Group CEO and GEB members
l
l
l
Group CEO and GEB members’ salaries and individual performance awards
l
l
Update on market practice, trends and peer group matters
l
l
Pay for performance, including governance on certain higher-paid employees,and formulaic compensation
arrangements
l
l
l
l
l
l
l
Board of Directors remuneration
l
Compensation framework
Compensation framework and deferred compensation matters
l
l
l
l
l
Risk and regulatory
Risk management in the compensation approach
l
l
l
l
l
Joint meeting with the BoD Risk Committee
l
Regulatory activities impacting employees and engagement with regulators
l
l
l
l
l
l
1 The Compensation Committee held two meetings in December 2025 and in January 2026.
Compensation governance
The table below provides an overview of compensation governance by specific role.
Recipients
Compensation recommendations proposed by
Approved by
Chairman of the BoD and
Vice Chairman of the BoD
Compensation Committee
Compensation Committee
1
Other BoD members
Compensation Committee and Chairman of the BoD
BoD
1
Group CEO
Compensation Committee and Chairman of the BoD
BoD
1
Other GEB members
Compensation Committee and Group CEO
BoD
1
Key Risk Takers (KRTs)/
senior employees
Respective GEB member and functional management
team
Individual compensation for KRTs and senior employees:
Group CEO
1
Aggregate variable compensation and the maximum aggregate amount of fixed compensation for the GEB,as well as maximum aggregate remuneration for the BoD, are subject to shareholder approval.
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Performance award pool funding
Ourcompensationphilosophyfocusesonbalancingperformancewithappropriaterisk-taking,retainingtalented
employees andsupporting shareholderreturns. Ouroverall performanceaward poolfunding percentagedecreases as
financialperformanceincreases.Inyearsofstrongfinancialperformance,thispreventsexcessivecompensationand
results in an increased proportion of profitbefore performance awardsbeing available for distributionto shareholders or
growing the Group’s capital. In years where performance declines, the performance award pool will generally decrease;
however, the funding percentage may increase.
OurperformanceawardpoolfundingframeworkisbasedonGroupandbusinessdivisionperformance,including
achievements against definedperformance measures. Inassessing performance, wealso consider relativeperformance
versuspeers,marketcompetitivenessofourpayposition,aswellasprogressagainstourstrategicandintegration
objectives, includingreturns, risk-weightedassets andcost efficiency.The Riskand Compliancefunctions supportour
holistic reflection andconsideration of the financialand non-financial impact (includingreputation) of risk matters.We
furtherconsiderthefirm’sriskprofileandculture,theextenttowhichoperationalrisksandauditissueshavebeen
identified and resolved, and the success of risk reduction initiatives including accountability for significant events.
The funding for Group functions is linked to overall Group performance and also reflects factors such as headcount and
workforcelocation.Foreachfunctionalarea,quantitativeandqualitativeassessmentsevaluateservicequality,risk
management and financial achievements.
Our decisionsregarding thetotal Groupperformance awardpool alsobalance considerationof financialperformance
with a range of factors, including the impact of litigation, regulatory costs, the effect of changes in financial accounting
standards, capital returns and relative total shareholder return.
For 2025, the performance award pool was determined by applyingour usual approach described above. Our decision-
making reflects the progress and complexity of the economicand cultural integration and supports the creation of long-
term value in the combined firm for our shareholders.
Sustainability is wellembedded into the cultureof our organizationand our employee baseacross all levels.These topics,
includingservingourclients’needs,deliveringonourreportingrequirementsandsupportinganinclusiveworkplace
basedonmeritocracywhereallemployeescanbesuccessfulandthrive,continuetobeapriority.Consideringour
standing in these areas over the last several years, for 2025 these had no impact in our decision-making.
Before making itsfinal proposal tothe BoD, theCompensation Committee considersthe Group CEO’sproposals and can
apply a positive or negative adjustment to the performance award pool.
›
Refer to “2025 Group performance outcomes” in the “Group compensation” section of thisreport
›
Refer to the “Group performance” section of this report for more informationabout our results
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1
Business division financial
performance
The starting point for the funding process is the business division financial performance, which may be adjusted
for items that are not reflective of the underlying business division performance.
2
Risk-adjusted business
division performance
award pool
Predetermined business division-specific funding rates are applied to risk-adjusted performance, which excludes
items that are not reflective of the underlying business performance.
3
Strategic / integration /
business division measures
Each division is assessed based on specific measures (e.g. net new fee generating assets, return on attributed
equity). In the short-to-medium term, to support the economic and cultural integration of Credit Suisse and the
creation of long-term value of the combined firm for our shareholders, our decision-making also reflects the
progress on and the complexity of the transaction, including the need to retain key talent, support pay fairness
across the entire organization and stabilize the franchise during the integration period.
Qualitative, risk and
regulatory assessment
Decision-making considers the firm’s risk profile and the extent to which operational risks and audit issues have
been identified and resolved, as well as other items, such as the impact of litigation and regulatory costs. The Risk
and Compliance functions support our holistic reflection and consideration of the financial and non-financial
impact (including reputation) of risk matters.
Relative performance
versus peers
Performance is assessed relative to our peers, including financial performance, returns and relative total
shareholder return.
Market position and trends
Market intelligence, based on information from external advisors, helps assess the competitiveness of our pay
levels and compensation structure. It also provides a prospective view of market trends in terms of absolute
compensation levels, compensation framework and industry practice.
4
Recommended business
division performance
award pools
The business division performance award pool determination process, based on quantitative and qualitative
assessments, results in a proposal from the Group CEO (after consultation with the GEB) to the Compensation
Committee for consideration.
5
Final Group performance
award pool
The Compensation Committee considers the proposal in the context of the factors outlined above and verifies that
it is in line with our strategy and our Total Reward Principles to create sustainable shareholder value and support
our growth ambitions. The Committee may alter the proposal of the Group CEO (upward or downward, including
proposing a zero award) before making its final proposal to the BoD.
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Compensation for GEB members
GEB compensation framework
After a careful review ofinvestor feedback and competitive practice, theCompensation Committee confirmed that our
Total Reward Principlesand overall compensation frameworkcontinue to supportthe alignment ofcompensation with
the execution of our strategy, sustainable performance and the delivery of our integration objectives.
Overall, thecompensation frameworkremains consistentwith prioryears. Withrespect tothe GroupChief Executive
Officer (the Group CEO), thesignificant deferral level, structure andvesting schedule over five yearsremains unchanged.
For the other Group Executive Board (GEB)members the vesting schedule also remains unchanged.We have aligned the
deferral level toward thecompetitive market, introducing anapproach where deferral levelsincrease progressively with
higher performance awardlevels, as wellas differentiating thedeferral mix betweenthe Long-Term IncentivePlan (the
LTIP) and the Deferred Contingent Capital Plan (the DCCP).
Both the LTIP and theDCCP remain mandatory deferral planswith the majority of thedeferral continuing to be equity-
based(minimumof62.5%).WhileourrevisedapproachprovidesgreaterpotentialfordeferralintotheLTIP,which,
coupled with our significant GEB share ownership requirements, supports strong long-term alignment with our strategy
and shareholderinterests, aportion ofthe variablecompensation continues tobe deferredinto theDCCP. Webelieve
our revised deferral regime continues to be morestringent than the competitive market, with deferral levelsand delivery
schedules that exceed those typically observed in the industry.
In context of the evolving UK remuneration rules, we have aligned the compensation framework for GEB members who
are UKMaterial RiskTakers (UKMRTs) and UKSenior ManagementFunctions (UKSMFs) withthat of otherGEB members.
Over thecourse of2025, twoGEB membersheld aUK SMFrole forone ofour UKentities, andone additionalGEB
member was identified as a UK MRT.
›
Refer to “Our deferred compensation plans” in the “Group compensation” section of thisreport for more information
›
Refer to the “Group compensation” section of this report for moreinformation
›
Refer to “Regulated staff”in the “Supplemental information” section of this report for more information
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Pay-for-performance safeguards for GEB members
Performance
award caps
–
Cap on the total GEB performance award pool (2.5% of profit before tax)
1
–
Caps on individual performance awards for all GEB members, including the Group CEO, of seven times their annual fixed compensation
rate; where the annual fixed compensation rate (i.e. salary) is delivered in currencies other than the Swiss franc, the maximum total
compensation is aligned to the Swiss franc determined GEB members
–
Cap of 20% of performance award in cash for the Group CEO and 35% for other GEB members
Delivery and
deferral
–
65% to 80% of performance awards are at risk of forfeiture
–
Long-term deferral over five years
–
Alignment with shareholders (through the LTIP) and bondholders (throughthe DCCP)
–
Final payout of equity-based / LTIP awardssubject to absolute and relative performance conditions (three-year performance period)
Contract
terms
–
No severance terms
–
Notice period between six and twelve months
Other
safeguards
–
Share ownership requirements
–
No hedging allowed
–
GEB variable compensation subject to clawback in line with US regulatory requirements
1
The Compensation Committee may consider adjustments to profit for items that are not reflective of underlying performance includingintegration items.
Current and formerGEB members aresubject to aclawback policy basedon the USSecurities and ExchangeCommission
(SEC) requirement for listed companieson US national securities exchanges/ associations. This clawbackpolicy is applied
if UBSis requiredto preparean accountingrestatement offinancial statementsdue tomaterial non-compliancewith
financial reporting requirements.In that event,UBS would considerrecovering the amountof variable compensationthat
exceeds the amount that would have been determined based on therestated financial statements (the final amount will
be determined at the discretion of the Compensation Committee).
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GEB share ownership requirements
Toalign the interests of GEB members with those of our shareholders and to demonstrate personal commitment to the
firm, we require allGEB members including the GroupCEO to hold a substantialnumber of UBS shares. GEBmembers
must reach their minimum shareholding requirements within five years from their appointment and retain it throughout
their tenure. The total number of UBSshares held by a GEB member consistsof any vested or unvested shares, including
privately held shares. At the end of 2025, all GEB members met their share ownership requirements, except for some of
those appointed within the last three years, who still have time to build up and meet the required share ownership.
As of 31 December 2025, our GEB members held shares with an aggregate value of approximately USD 547m.
Share ownership requirements
Group CEO
min. 1,000,000 shares
Must be built up within five years from their appointment and retained throughout
their tenure
Other GEB members
min. 500,000 shares
GEB base salary
Each GEB member receivesa fixed base salary,which is reviewed annuallyby the Compensation Committee.The 2025
annual base salary for the Group CEO role was CHF 2.5m and has remained unchanged since 2011.
At the Annual General Meeting(the AGM), the shareholders areasked to approve the maximumaggregate amount of
fixed compensation for GEB members for the following financial year.
›
Refer to the “Supplemental information” section of this report for more information aboutMRTsand SMFs
›
Refer to the “Say-on-pay” section of this report for more information about theAGM vote on fixed compensation for the GEB
Caps on the GEB performance award pool
The size ofthe GEB performanceaward pool maynot exceed 2.5%of the Group’sprofit before tax.This limits theoverall
GEB compensation based on thefirm’s profitability. For 2025, thetotal GEB performance award pool wasCHF 118.9m
and below the 2.5% cap.
InlinewiththeindividualcompensationcapsontheproportionoffixedpaytovariablepayforallGEBmembers
(introduced in 2013), grantedperformance awards (at communicatedvalue) of GEB members(including the Group CEO)
are capped at seventimes their annual fixed compensationrate. Where the annual fixedcompensation rate (i.e. salary)
is deliveredin currenciesotherthan theSwissfranc, themaximum totalcompensation isalignedtothe Swissfranc-
determined GEB members.To the extentthat local regulatoryrequirements on compensationcaps apply, wewill consider
equivalentratiostocomplywiththerespectiveregulatoryregime.For2025,performanceawards(atcommunicated
value) granted toall GEB membersincluding the GroupCEO were, onaverage, 5.2 timestheir fixed compensation(in
Swiss franc terms, excluding one-time replacement awards, benefits and contributions to retirement plans).
›
Refer to “Performance award pool funding” in the “Compensation philosophy and governance” section of this reportfor more
information
GEB employment contracts
GEB members’employment contractsdo notinclude severanceterms andare subjectto asix-to-twelve-month notice
period. A GEB member leaving UBS before the end of a performance year may be considered for a performance award.
Such awards are subject to approval by the Board of Directors (the BoD) and ultimately bythe shareholders at the AGM.
Benchmarking for GEB members
WhenrecommendingperformanceawardsfortheGroupCEOandtheotherGEBmembers,theCompensation
Committee reviewsthe respectivetotal compensationfor eachroleagainst afinancial industrypeer group.The peer
group is selectedbased on comparability of theirsize, business mix, geographic presenceand the extent towhich they
compete withus fortalent. TheCompensation Committee considersour peers’strategies, practicesand paylevels, as
wellastheirregulatoryenvironment;italsoperiodicallyreviewsotherfirms’paylevelsorpractices,includingboth
financial and non-financialsector peers, asapplicable. The totalcompensation for aGEB member’s specificrole considers
the compensationpaid byour peersfor acomparable roleand performancewithin thecontext ofour organizational
profile. The Compensation Committee periodically reviews and approves the peer group composition.
The table below presents the composition ofour unchanged peer group as approved bythe Compensation Committee
for the 2025 performance year.
Bank of America
HSBC
Barclays
JPMorgan Chase
BlackRock
Julius Baer
BNP Paribas
Morgan Stanley
Citigroup
Standard Chartered
Deutsche Bank
State Street
Goldman Sachs
ubs-20251231p233i0
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GEB performance assessments
We assess each GEB member’sperformance against a set offinancial targets, non-financial objectivesand Behaviors. For
2025, thenon-financial objectivescontinue tobe assessedpredominantly basedon achievementsrelative toconcrete
quantitative and measurable key performance indicators and are focused on delivering integration- and strategy-related
initiatives,clientcentricity,riskandregulatory,environmentalandsustainability,andpeople-andgovernance-related
objectives. This approach continuesto foster a focuson GEB priorities, includingdelivering the integrationobjectives and
the success of the Group, and promotes strong individual accountability.
All five non-financial categoriesare equally weighted (6%per category) and havea combined weight of30% in the GEB
performance assessment.Two ofthe fivenon-financial categories(12%) coverenvironmental, socialand governance
(ESG)-relatedobjectives,whichunderscorestheimportanceandimpactofsustainabilityonGEBcompensation.Ifa
category is not applicable based on a GEB member’s role, the remaining categories continue to be equally weighted for
a total of 30%.
The Compensation Committee exercisesits judgment with respectto the performance achievedrelative to the prioryear,
ourstrategicplanandourcompetitors,andconsiderstheGroupCEO’sproposals.TheCompensationCommittee’s
proposals are subject to approval by the BoD.
For the GroupCEO, a similarprocess is followedby the CompensationCommittee, and thenthe full BoD,except that
the proposal comes from the Chairman of the BoD.
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Overview of performance assessment measures
WeapplyarangeofquantitativemeasurestoassessGEBmemberperformanceagainstfinancialandnon-financial
objectives, while Behaviors are assessed qualitatively.Our approach for 2025 remains unchanged, with allcategories in
the non-financial section beingequally weighted, for atotal weight of 30%.The table below provides asummary of the
main metrics andmeasures used for2025. For GEBmembers other than theGroup CEO financialmetrics reflect 30%
Group metrics and30% Divisional / Functionalmetrics, whereas forthe Group CEOall 60% ofthe financial measures
reflectsGroup metrics.
Financial measures
(60%)
–
Group profit before tax
–
Group cost / income ratio
–
Group return on common equity tier 1 (CET1) capital
–
Divisional and functional measures (30%, as applicable)
Non-
financial
measures
(30%)
Integration and Strategy
(6%)
–
Progress on Group strategic and integration priorities
–
Delivery on division- / function-specific strategic programs and initiatives
Clients
(6%)
–
Foster delivery of the whole firm to our clients
–
Promoting collaboration across the combined organization
–
Delivery on specific key client initiatives
Risk and Regulatory
(6%)
–
Operating within risk appetite
–
Progress on delivering on risk initiatives and regulatory commitments
Environmental and
Sustainability
(6%)
–
Supporting clients’ activities related to the environment and sustainability
–
Management of required external sustainability reporting, including consideration of investor feedback
People and Governance
(6%)
–
People development, mobility, turnover and succession plan metrics
–
Employee listening / sentiment results and feedback on engagement and culture
Behaviors
(10%)
Accountability with integrity
Qualitative assessment
against expected
Behaviors:
–
Responsible for what they say and do
–
Takes ownership and makes things happen
–
Steps up and acts when something is not right
Collaboration
–
Trusts others and helps them to be successful
–
Delivers One UBS, together with their colleagues
–
Fosters an inclusive and equitable work environment
Innovation
–
Challenges perspectives and looks at every opportunity to improve
–
Actively seeks and provides feedback
–
Learns from every success and failure
Performance assessment categories
The performance ofnon-financial objectives andBehaviors is assessedagainst threeperformance categories, Excellent
contribution / Exemplary behavior, Goodcontribution / Expected behavior, andNeeds focus,relative todefined measures
andoutcomes.Theachievementlevelforeachmeasureresultsinacumulativeassessmentscorefornon-financial
objectives and Behaviors, respectively, and cannot exceed 100%.
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Corporate governance and compensation | Compensation211
2025 performance for the Group CEO
TheperformanceawardfortheGroupCEOisbasedontheachievementoffinancialperformance targetsandnon-
financial objectives and Behaviors, as described earlier in this section.
These objectives were set to reflect the strategic priorities determined by the Chairman and the BoD.
›
Refer to “GEB compensation framework”in this section of this report for more information
Performance assessment for the Group CEO
The Boardof Directors(the BoD)recognizes Mr.Ermotti’s continuedexcellent performanceand exemplaryleadership
throughout 2025.He deliveredstrong financialresults andcontinued tofocus thefirm onhelping clientsnavigate an
unpredictable marketenvironment. UnderMr. Ermotti’sleadership, UBSmade greatprogress onone ofthe mostcomplex
integrations in banking history.In particular, we achievedall of our veryambitious 2025 integrationmilestones, including
migrating ~85% of 1.1million client accounts bookedin Switzerland and reducingthe size andoperating expenses of
our Non-coreand Legacy division.In addition,Mr. Ermotti successfullypositioned UBS todeliver further sustainable,long-
termgrowthandefficiencygains,aswecompletetheintegration,leveragethebenefitsofourglobalscale,
interconnectedfranchisesandregionalexpertise,andtakeadvantageofthestructuraltrendsthatareshapingour
industry.
For thefull year2025, UBSdelivered areported profitbefore tax(PbT) ofUSD 8,853m, up30% yearover year(YoY),
while thenet profitattributable toshareholders increasedby 53%and Returnon CET1(RoCET1) capitalincreased to
10.8%, a4.1 percentage pointincrease from2024. Bothour CET1capital ratioof 14.4%and CET1leverage ratioof
4.4% remain comfortably above our guidanceof ~14% and >4%, respectively. Thisrobust capital situation enables UBS
to proposea dividendof USD 1.10per share,up 22%YoY. Furthermore,we planto accruefor mid-teenspercent increase
in dividend per share in 2026; and intend to repurchase USD 3bn of shares in 2026.
The BoD also acknowledges Mr. Ermotti’s continued significant personal engagement with clients. This focus on serving
clients, combined with thestrength of our franchise,resulted in Group investedassets exceeding USD 7trn forthe first
time (up15% YoY).We alsocontinued tosupport theSwiss economyand thecommunities wherewe liveand work,
while further investingin talent andcapabilities. In addition,Mr. Ermotti wasinstrumental in advancing oursupport to
clients in the transition to a low-carbon world in line with our sustainability ambitions.
Furthermore, Mr. Ermotticonsistently set astrong and cleartone from thetop on thefirm’s risk managementand control
culture. He also demonstratedstrong leadership bysuccessfully reducing the litigationportfolio in the bestinterest of the
firm and shareholders. He remainedthe most important ambassadorfor a constructive and balancedpublic discussion in
the ongoing too-big-to-fail (TBTF) debate,with a significant personal engagementmarked by transparent and consistent
communication with all stakeholders.
The BoDalso recognizesMr. Ermotti’srelentless driveto focusthe organizationon innovativesolutions thatbenefit clients
andemployees.Hewasinstrumentalinacceleratinginvestmentsinpeople,offering,capabilitiesandtechnology,
including artificialintelligence (AI),to supportour growthplans. Inthis context,he initiatedtransformational projects
that are designedto bolster ouroperational resilience, enhanceclient experience andunlock higher levelsof efficiency
and effectiveness across the organization.
At the sametime, Mr. Ermottisuccessfully adjusted thecomposition of theGEB in linewith the futurestrategic demands.
Hecontinuedtochampionourstrongcultureandvalues,whichisreflectedinconsistentlystrongemployeesurvey
outcomesthatdemonstratepositivefeedbackonpeopleintegration,thestrongteamcultureandtheinclusiveand
collaborative work environment.
The table below illustrates the assessment criteria used to evaluate the achievements of Mr. Ermotti in 2025.
Financial performance
Weight
Performance
measures
2025 targets
2025 results
Achieve-
ment
1
Assess-
ment
2025 commentary
20%
Reported Group PbT
USD 6,789m
USD 8,853m
100%
20.0%
–
Reported Group PbT significantly exceeded plan and
increased 30% YoY,driven by continued strong client
momentum and integration progress.
20%
Reported Group C / I
ratio
2
84.1%
81.1%
100%
20.0%
–
Cost / Income ratio was better than plan and continued to
improve YOY,demonstrating ongoing strong cost discipline
20%
Reported Group
RoCET1
8.0%
10.8%
100%
20.0%
–
Return on CET1 capital exceeded plan and increased
significantly YoY
1
Achievement score capped at 100%.
2
For the assessment of the cost / income ratio, the percentage change of result versus plan is subtracted from the maximum achievement level (100%).
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Corporate governance and compensation | Compensation212
Performance assessment for the Group CEO (continued)
Non-financial performance and Behaviors
Weight
Performance
measures
Achieve-
ment
Assess-
ment
2025 performance outcomes and key measures
30%
6%
Integration and
Strategy
Excellent
contribution
30.0%
–
Strong integration progress,with
~
85% of Swiss client accounts migrated without client
disruption, on track to complete Swiss migration in early 2026.
–
Non-core and Legacy portfolio de-risked well ahead of plan, supporting stability and
reducing legacy risk exposure faster than expected.
–
Strong business momentum across regions, including a record USD 1trn invested assets in
Asia Pacific and a 17.5% YoY increase in US Wealth Management net interestincome.
–
Strengthened cross-divisional revenue generation, with significant progress in applying our
One Bank approach across the entire organization.
–
Strong personal client engagement, embedded a client-centric culture and improved client
solution delivery resulting in invested assets exceeding USD 7trn (up 15% YoY).
–
Continued high focus on risk management, with internal risk remediation metrics exceed
targets.
–
Significant reduction in litigation portfolio resulting in the release of USD ~949m.
–
Promoted strong risk culture, with an increase in proactive risk identification across the
organization.
–
Successfully steered UBS through a demanding ESG environment and delivered well-
respected sustainability reporting with strong shareholder support (89.5% approval rate).
–
Strong sustainability offering, e.g. with USD 634bn in sustainable financing and USD 716m
revenue in sustainable finance, and Asset Management delivering 23.4% of funds via
sustainable offerings (exceeding the target of 20%).
–
Exceeded our ambition of raising USD 400m per annum in donations (including UBS
matching contributions) by 2027 with the UBS Optimus network of foundations raising
USD 472m in such donations in 2025.
–
Successfully adjusted the composition of the GEB and supported strong internal talent
pipeline resulting in improved succession plans and quality metrics for senior managers that
exceed the internal targets.
–
Successfully made progress with the cultural integration and achieved continued positive
results in employee surveys (exceeding internal targets) with excellent employee feedback.
6%
Clients
6%
Risk and
Regulatory
6%
Environmental
and
Sustainability
6%
People and
Governance
10%
Behaviors
(Accountability
with Integrity,
Collaboration,
Innovation)
Exemplary
behavior
10.0%
–
Continued strong tone from the top on UBS behaviors, consistently promoting
transparency, responsibility and accountability acrossthe organization.
–
Continued to be a role model with exemplary collaboration across the GEB and the
organization.
–
Championed innovation and technological transformation, particularly in AI adoption and
digital capabilities to enhance client experience.
Total assessment
(maximum 100%)
100.0%
TheBoDapprovedtheproposalbytheCompensationCommitteetograntMr.Ermottiaperformanceawardof
CHF 12.1m,resultinginatotalcompensationfor2025ofCHF 14.6m(excludingbenefitsandcontributionstohis
retirement benefit plan).
Aligned with the GEBcompensation framework, theGroup CEO’s performanceaward will be delivered20% (CHF 2.4m)
in cash and the remaining80% (CHF 9.7m) subject to deferraland forfeiture provisions, as wellas meeting performance
conditions over the next five years.
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Corporate governance and compensation | Compensation213
2025 total compensation for the GEB members
At the 2026AGM, shareholders willvote on theaggregate 2025 totalvariable compensation forthe GEB inSwiss francs.
The tables below provide the awarded compensation for the Group CEO and the GEB members in Swiss francs and, for
reference,thetotalamountsinUSdollarsforcomparabilitywithfinancialperformance.Theindividualvariable
performance awards for each GEB member will only be confirmed upon shareholder approval at the AGM.
›
Refer to “Deferred compensation” in the “Supplemental information” section of this reportfor more information about the
vesting of outstanding awards for GEB members
›
Refer to “Provisions of the Articles of Association related to compensation” in the “Supplementalinformation” section of this
report for more information
Audited |
Total compensation for GEB members
CHF, except where indicated
USD (for reference)
1
For the
year
Base salary
Contribution
to retirement
benefit plans
Benefits
2
Total fixed
compensation
Cash
3
Performance
award under
LTIP
4
Performance
award under
DCCP
5
Total
variable
compensation
Total fixed
and variable
compensation
6
Total fixed
compensation
Total
variable
compensation
Total fixed
and variable
compensation
6
Highest Paid Executive (for 2025 and for 2024 Sergio P.Ermotti, Group CEO)
2025
2,500,000
247,708
73,485
2,821,193
2,420,000
6,050,000
3,630,000
12,100,000
14,921,193
3,405,868
14,607,651
18,013,519
2024
2,500,000
248,320
91,647
2,839,967
2,420,000
6,050,000
3,630,000
12,100,000
14,939,967
Aggregate of all GEB members
7,8,9
2025
22,903,225
2,720,143
861,513
26,484,882
31,558,250
59,288,450
28,010,800
118,857,500
145,342,383
31,973,712
143,489,991
175,463,703
2024
25,461,247
2,684,041
1,246,777
29,392,065
26,438,714
53,490,910
34,255,553
114,185,176
143,577,241
1 Swiss franc amounts have been translated into USdollars for reference at the 2025 performance award currencyexchange rate of CHF / USD 1.207244.2 All benefits are valued at market price.3 For 2024, for
GEB members who were also MRTs or SMFs,the cash portion includes blocked shares.For 2025, the cash portion does not includeblocked shares as these have been eliminatedper the changes to the UK regulatory
regime.4 LTIP awardsfor the 2025 performance year wereawarded at a value of50.0% of maximum, which reflectsour best estimate of the valueof the award. Themaximum number of shares is determinedby
dividing the awarded amount by the estimated value of the award at grant, divided by CHF 32.924 or USD 43.044, the average closing price of UBS shares over the last ten trading days leading up to and including the
award date in February.5 The amounts reflect the amount of the notional additional tier 1 (AT1) capital instrument excluding futurenotional interest.6 Excludes the portion related to the legally required employer’s
social security contributions for2025 and 2024, whichare estimated at grantat CHF 9,700,000 and CHF 9,990,000,respectively, of whichCHF 1,075,100 and CHF 1,333,000, respectively,are for the highest-paid
GEB member (excludingreplacement awards). Thelegally required employees’social security contributionsare included in theamounts shown in thetable above, asappropriate.7 As stated in “GroupExecutive
Board” in the “Corporate governance” section of this report, 15 GEB members werein office on 31 December 2025 and 15 GEB members were in office on 31 December2024.8 Includes compensation paid under
employment contracts duringnotice periods for GEBmembers who steppeddown during the respectiveyears.9 Includes compensation fornewly appointed GEB membersfor their time inoffice as GEB members
during the respective years.
Total realized compensation for the Group CEO
The realized compensation for the Group CEOreflects the total amount paid out inthe year. It includes the basesalary,
cash performance award payments and all deferredperformance awards vested in the year. Assuch, realized pay is the
natural culmination of awards granted and approved by shareholders in previous years.
To illustrate theeffect of ourlong-term deferral approach, whichhas been inplace since 2012, wedisclose the annual
realized compensation of Mr. Ermotti, including a comparison with his total awarded compensation.
Total realizedcompensation vs awarded compensation for Sergio P.Ermotti
CHF
Realized
Awarded
For the year
Base salary
Cash award
1
Performance
award under
equity plans
1
Performance
award under
DCCP
1
Total realized
fixed and variable
compensation
Total awarded
fixed and variable
compensation
2
2025
2,500,000
2,420,000
0
0
4,920,000
14,600,000
2024
2,500,000
2,450,000
0
0
4,950,000
14,600,000
2023
3
1,875,000
0
0
0
1,875,000
14,125,000
1 Excludes dividend / interest payments.2 Excludes contributions to retirement benefit plans and benefits. Includes social security contributions paid by Sergio P. Ermotti but excludes the portion related to the legally
required social security contributions paid by UBS.3 Includes compensation for nine months, as Sergio P.Ermotti joined UBS in April 2023.
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Corporate governance and compensation | Compensation214
Group compensation
Compensation elements for all employees
All elementsof payare consideredwhen makingour compensationdecisions. Weregularly reviewour principlesand
compensationframeworkinordertoremaincompetitiveandalignedwithstakeholders’interests.In2025,our
compensationframeworkremainedbroadlyunchanged.Wewillcontinuetoreviewourapproachtosalariesand
performance awards,considering marketdevelopments, ourperformance andour commitmentto deliversustainable
returns to shareholders.
Base salary and role-based allowance
Employees’ fixed compensation (e.g. basesalary) reflects theirlevel of skill, roleand experience, as wellas local market
practice. Basesalaries areusually paidmonthly orfortnightly,in linewith localmarket practice.We offercompetitive
base salaries thatreflect location, functionand role. Salaryincreases generally considerpromotions, skill set,performance
and overall responsibility.
In addition to base salary, and as part of fixed compensation, someemployees may receive a role-based allowance. This
allowanceisashiftinthecompensationmixbetweenfixedandvariablecompensation,notanincreaseintotal
compensation. It reflectsthe market valueof a specificrole and isfixed, non-forfeitable compensation.Unlike salary, a
role-based allowanceis paidonly ifthe employeeis ina specificrole. Similarto previousyears, 2025role-based allowances
consisted of a cash portion and, where applicable, a blocked UBS share award.
Pensions and benefits
Weprovideaccesstoarangeofbenefitplans,suchasretirementbenefitsandhealthinsurance,aimingtoprovide
financial protection incase ofsignificant lifeevents andsupport ouremployees’ well-beingand diverseneeds. Retirement
and other benefits are set in the context of local market practice and regularly reviewed for competitiveness.
Pension plan rulesin any onelocation are generallythe same forall employees insimilar circumstances, includingGEB
members and other management.Under the Switzerland PensionFund rules, there areno enhanced or supplementary
pension contributions for the GEB.
Performance award
Most of ouremployees are eligiblefor an annualperformance award.The level ofthis award, where applicable,generally
dependsonthefirm’soverallperformance,theemployee’sbusinessdivision,teamandindividualperformance,and
behavior,reflectingtheiroverallcontributiontothefirm’sresults.Theseawardsareinlinewithapplicablelocal
employment conditions and at the discretion of the firm.
Inadditiontothefirm’sPillarsandPrinciples,BehaviorsrelatedtoAccountabilitywithintegrity,Collaborationand
Innovation arepart ofthe performancemanagement approach.Therefore, whenassessing performance,we consider
not only what was achieved but also how it was achieved.
Our deferred compensation plans
Underlining ouremphasis onsustainable performanceand riskmanagement,and ourfocus onachieving ourgrowth
ambitions, we deliverpart of ouremployees’ annual variablecompensation through deferredcompensation plans. We
believe thatour approach,with asingle incentive decisionand mandatory deferralframework, is transparentand well
suited to implementingour compensation philosophyand delivering sustainableperformance. This alignsthe interests of
our employees and shareholders and appropriately links compensation to longer-term sustainable performance.
Ourmandatorydeferralapproachappliestoallemployeeswithregulatory-drivendeferralrequirementsortotal
compensation greaterthanUSD / CHF 300,000. Certainregulatedemployees, suchasSeniorManagement Functions
(SMFs) and Material Risk Takers (MRTs), are subject to additional requirements (e.g. clawback requirements).
The deferred amountincreases at highermarginal rates inline with thevalue of theperformance award. Theeffective
deferral rate therefore depends on the amount of the performance award and the amount of total compensation.
We believeour deferralregime hasone ofthe longestvesting periodsin theindustry. Theweighted averagedeferral
period for non-regulated employees is 4.4 years for GEB members,3.8 years for Managing Directors (MDs) receiving the
Long-TermIncentivePlan(LTIP)and3.5yearsforotheremployees.Additionally,fromtimetotime,wemayutilize
alternative deferred compensation arrangements to remain competitive in specific business areas.
To further promote sustainableperformance, all of ourdeferred compensation plans includeemployment conditions and
malus conditions. These enable the firm to reduce or fully forfeit unvesteddeferred awards under certain circumstances,
pursuant to performance and harmful acts provisions. In addition, forfeitureis triggered in cases where employment has
been terminated for cause.
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Corporate governance and compensation | Compensation215
Upon vestingof thenotional shareawards, wefulfill ourshare deliveryobligations bydelivering treasuryshares purchased
in the market.
›
Refer to “Note 26 Employee benefits: variable compensation” in the “Consolidated financial statements” section of this reportfor
more information
›
Refer to the “Supplemental information” section of this report for more information aboutMRTsand SMFs
Variable compensation elements by employee category
Deferred compensation elements
Employee category
Cash
LTIP
EOP
DCCP
GEB members and Managing Directors reporting to the GEB and their direct reports at
Managing Director level (as applicable)
✔
✔
1
✔
Employees subject to mandatory deferral framework
✔
✔
1
1
Employees in investmentareas within AssetManagement typicallyreceive notionalfunds (FundOwnership Plan)in lieu ofEquity Ownership Plan(EOP) / LTIPto align theircompensation moreclosely with fund
performance, industry standards and regulatory requirements.
Long-Term Incentive Plan
The LTIPgranted for 2025performance is amandatory deferral planfor GEB membersand MDs reportingto the GEB
and their direct reports at MD level.
1
These senior leaders receive the equity portion of their 2025 performanceaward in
LTIPto support delivering onour ambitious integration goalsand business / financialtargets. This further mitigatesthe
need for a distinctintegration award typical fora transaction of thisnature. For the 2025performance year, we awarded
the LTIP to 15 GEB members and 965 MDs in office during 2025, at a communicated value of 50% of the maximum.
Theperformancemetricsoftheshare-basedLTIPawardsareaveragereportedreturnonCET1capital(RoCET1)and
relative total shareholderreturn (rTSR) overa three-year performance periodstarting on 1 January inthe year ofgrant.
Performance outcomes and actual payout levels will be disclosed at the end of the performance period.
For the 2025LTIP granted in2026, we haveincreased the performancerange of thethree-year average reportedRoCET1
metric (50% weighting)to 8–16% fromthe previous 7.5–14%.This adjustment reflectsthe progress ofour ambitious
integration objectives, and to appropriately incentivize management to deliver on our evolving return ambitions:
–
the maximum reported RoCET1 of 16% corresponds with a 100% payout;
–
theminimumreportedRoCET1of8%correspondswitha33%payoutandsupportsourfocusondelivering
sustainable results and appropriate risk taking, there is zero payout if RoCET1 is below 8%; and
–
the linearpayout betweenthe thresholdand maximumlevels supportsour focuson deliveringsustainable performance
without encouraging excessive risk-taking.
The rTSR performance metric (50% weighting) over the three-year period further aligns theinterests of employees with
thoseofshareholders.Thismetriccomparesthetotalshareholderreturn(theTSR)ofUBSwiththeTSRofanindex
consisting of listed Global Systemically Important Banks (G-SIBs):
–
the maximum payout outcomeis reached when rTSRis 25 percentage points ormore above the index,to mitigate the
potential for excessive risk-taking;
–
there is zero payout if rTSR is more than 25 percentage points below the index; and
–
the linear payout between the threshold and maximum levels further supports appropriate risk-taking.
ThisG-SIBindexisindependentlydeterminedbytheFinancialStabilityBoard(excludingtheUBSGroup),ourindex
includesallpubliclytradedG-SIBsandreflectscompanieswithacomparableriskprofileandimpactontheglobal
economy. Theindex isequally weighted,calculated inSwiss francsand maintainedby anindependent indexprovider,
ensuring independence of the TSR calculation.
1
Includes senior managers who were previouslyLTIP recipients andwho are no longer reporting tothe GEB or their direct reportsat MD level, excludes MDs in AssetManagement Investment Areas (who receivethe
Fund Ownership Plan (FOP) instead of the LTIP).
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Corporate governance and compensation | Compensation216
G-SIBs that are listed companies
1
Agricultural Bank of China
Goldman Sachs
Santander
Bank of America
Groupe Crédit Agricole
Société Générale
Bank of China
HSBC
Standard Chartered
Bank of Communications
ICBC
State Street
Bank of New York Mellon
ING
Sumitomo Mitsui FG
Barclays
JPMorgan Chase
Toronto-Dominion
BNP Paribas
Mitsubishi UFJ FG
Wells Fargo
China Construction Bank
Mizuho FG
Citigroup
Morgan Stanley
Deutsche Bank
Royal Bank of Canada
1
As of November 2025. Excludes the UBS Group.
Dividend equivalents (granted where applicable regulation permits) are subject to the same terms as theunderlying LTIP
award.
LTIP awardsreflect thelong-term focusof ourcompensation framework. Thefinal numberof sharesas determinedat
the endof thethree-year performance periodwill vestin threeequal installments ineach ofthe threeyears following
the performance period for GEB members (i.e. years 3,4 and 5 after grant) and willcliff-vest for other award recipients
after the performanceperiod (i.e. year3 after grant),although longer deferralperiods mayapply for certainUK-regulated
employees.
LTIP payout illustration
–
The final number of notional shares
vesting will vary based on the
achievement versus the performance
metrics.
–
Linear payout between threshold and
maximum performance.
–
Achievement levels are a percentage
of the maximum opportunity of the
LTIP and cannot exceed 100%.
–
Full forfeiture for performance below
the predefined threshold levels.
–
UK Senior Management Function
holders (SMFs) and UK Material Risk
Takers (UK MRTs)are subject to an
additional non-financial metric based
on a conduct assessment with a
potential downward adjustment of
up to 100% of the entire award.
Performance metric:
average RoCET1 (50% of award)
Below threshold (<8%)
Threshold (8%) up to
maximum (<16%)
Maximum and above (>16%)
Full forfeiture
(payout 0%)
Partial vest
(payout between 33% and <100%)
Full vest
(payout 100%)
Performance metric
: rTSR vs G-SIBs index (50% of award)
Below threshold (<–25 ppts)
Threshold (–25 ppts) up to
maximum (<+25 ppts)
Maximum and above (>+25 ppts)
Full forfeiture
(payout 0%)
Partial vest
(payout between 33% and <100%)
Full vest
(payout 100%)
Performance achievement of the 2022 LTIP granted in 2023
The 2022 LTIP was granted in 2023 (for 2022 performance) at a fairvalue of 71.45% of a maximum of 100%. The final
performance achievedis 71.56%of amaximum of100%. Thisachievement reflectsthe outcomeof thetwo equally
weighted performancemetrics, RoCET1and rTSR,both measuredover thethree-year performanceperiod from1 January
2023 to 31 December 2025.The achievement level ofthis 2022 LTIP award(granted in 2023) appliesto 4 current GEB
members.
We achieved a three-year averageRoCET1 performance of 18.17% against theperformance range of 8% to 18%and
an rTSR performance of –17.45 percentage points versus the index of listed G-SIBs.
As explained in the2025 key compensation themessection of this report,the Compensation Committee madecertain
adjustments tothe reported2023, 2024and 2025RoCET1 outcomesto determinethe 2022LTIP achievementlevel.
These adjustmentsresulted ina negative impactto thethree-year averageRoCET1 metric,which nonethelessstill resulted
in a 100% achievement level. No adjustments were made to the rTSR metric.
For GEB members, the first of the three equal installments of the 2022 LTIP vests on 9 March 2026, and the second and
third installments will vest in March 2027 and 2028.
ubs-20251231p223i0
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Corporate governance and compensation | Compensation217
Equity Ownership Plan / Fund Ownership Plan
TheEquityOwnershipPlan(theEOP)isthedeferredcompensationplanforemployeesthataresubjecttodeferral
requirementsbutdonotreceiveLTIPawards.Forthe2025performanceyear,wegrantedEOPawardsto4,087
employees.
Delivering sustainableresults isa keyobjective forUBS. OurEOP createsa directlink withshareholder returnsas anotional
equity award andhas no upwardleverage.This approach promotesgrowth and sustainableperformance.EOP awards
generally vest over three years.
In placeof EOP,348 employeesin investmentareas withinAsset Managementreceive notionalfunds underthe Fund
Ownership Plan (the FOP),to align their compensationmore closely with industrystandards. This plan isdelivered in cash
and vests over three years.
›
Refer to “Vesting of outstanding awards grantedin prior years subject to performance metrics and thresholds” in the
“Supplemental information” section of this report for more information
Deferred Contingent Capital Plan
The DeferredContingent CapitalPlan (theDCCP) isa keycomponent ofour compensationframework andsupports
alignment of the interests of our senior employees with those of our stakeholders.
Generally,allemployeessubjecttodeferralrequirementsreceiveDCCPawards.Forthe2025performanceyear,we
granted DCCP awards to 5,317 employees.
The DCCP is consistentwith many ofthe features ofthe loss-absorbing bondsthat we issueto investors andmay be paid
at vesting incash or, atthe discretion ofthe firm, asa perpetual, marketable additionaltier 1 (AT1) capitalinstrument.
Employees can elect to have their DCCP awards denominated in Swiss francs or US dollars.
DCCP awardsvest infull afterfive years.DCCP awardsbear notionalinterest paidannually (exceptas limitedby regulation
for MRTs), subject to review andconfirmation by the Compensation Committee. The notional interestrate for grants in
2026 was3.05% forawards denominatedin Swissfrancs and6.7% forawards denominatedin USdollars. Theseinterest
rates are based on the current market rates for similar AT1 capital instruments issued by the UBS Group.
Awards are forfeitedif a viabilityevent occurs (i.e.if FINMA notifiesthe firm thatthe DCCP awardsmust be writtendown
to mitigate the risk of an insolvency, bankruptcy or failure of UBS)or if the firm receives a commitment of extraordinary
support from the public sectorthat is necessary to preventsuch an event. DCCP awardsare also written down forGEB
members if the Group’s CET1 capital ratio falls below 10% and for all other employees if it falls below 7%.
In addition, GEB members forfeit 20% of DCCP awards for eachloss-making year during the vesting period. This means
100% of theaward is subjectto risk offorfeiture. The forfeiturefeatures of DCCPcreate a strongalignment with our
debt holders and support the sustainability of the firm.
Overthe lastfiveyears, USD 2.40bnofDCCP awardshavebeenissued. DCCPcontributes totheGroup’s totalloss-
absorbing capacity (TLAC). Therefore, DCCP awards not only support competitive pay but also provide a loss absorption
buffer thatprotects thefirm’s capital position.The followingtable illustrates thecontribution of theDCCP toour AT1
capital and the effect on our TLAC ratio.
›
Refer to the “Supplemental information” section of this report for more information aboutperformance award and personnel-
related expenses
›
Refer to the “Supplemental information” section of this report for more information about longervesting and clawback periods
for MRTsand SMFs
Contribution of the Deferred Contingent Capital Plan to our loss-absorbing capacity
1
USD m, except where indicated
31.12.25
31.12.24
Deferred Contingent Capital Plan (DCCP), eligible as high-trigger loss-absorbing additional tier 1 capital
2,365
2,044
DCCP contribution to the total loss-absorbing capacity ratio (%)
0.5
0.4
1 Refer to “Bondholder information” at ubs.com/investors for more information about the capital instruments ofUBS Group AG and UBS AG both on a consolidated and a standalone basis.
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Corporate governance and compensation | Compensation218
Other variable compensation components
Tosupport hiring and retention, particularly at senior levels, we may offer other compensation components,such as:
–
retention payments to key employees to induce them to stay, particularly during critical periods for the firm, such as a
sale or wind-down of a business;
–
on alimited basis,guarantees thatmay berequired toattract individualswith certainskills andexperience, theseawards
are fixed incentives subject to our standard deferral rules and limited to the first full year of employment;
–
awards grantedto employeeshired latein theyear toreplace performanceawards thatthey wouldhave earnedat
their previous employer buthave foregone by joiningUBS, these awards aregenerally structured with thesame level
of deferral as for employees at a similar level at UBS; and
–
in exceptional cases,sign-on awards may beoffered to candidatesto increase the chancesof them accepting ouroffer.
These other variable compensation components are subject to a comprehensive governance process, which may involve
the Compensation Committee, depending on the amount or type of such payments.
Employees outside of theGEB that are maderedundant may receive severancepayments. Our severance termscomply
with the applicable local laws(legally obligated severance). In certainlocations, we may provide severancepackages that
are negotiated with ourlocal social partners andmay go beyond theapplicable minimum legal requirements(standard
severance). Suchpayments aregoverned bylocation-specific severancepolicies. Inaddition, wemay makeseverance
payments that exceed legally obligated orstandard severance payments where we believethese are aligned with market
practiceandappropriateunderthecircumstances(supplementalseverance).GEBmembersdonotreceiveseverance
payments.
Replacement awards and forfeitures
In line with industrypractice, our compensation framework andplans include provisions generallyrequiring reduction /
forfeiture of a terminated employee’sunvested or deferred awards. Inparticular, these provisions apply if the terminated
employee joins another financialservices organization and/ or violates restrictivecovenants, such as solicitationof clients
or employees.
Conversely, toattract externaltop talent,market practicedictates thatwe considerreplacing theirforfeited compensation
from their prioremployer. In selectsituations and basedon careful consideration,we replace thelost compensation of
senior hires. The replacement awards are subject toUBS’s harmful acts provisions. Their value is subjectto independent
review as part of the “Report of the statutory auditor on the compensation report” to support the like-for-like nature of
the replacement and to confirm that these awards do not represent sign-on payments (i.e. there are no golden hellos).
Based ona thoroughreview ofavailable documentation,we aimto mirrorthe type,conditions andtiming ofthe forfeited
compensation,basedonactualfactsandcircumstances.Replacementawardscanincludecashpaymentsand/or
deferred awards, including EOP shareawards and DCCP awards. Wherepayments are made in cash,there is typically a
clawback period if the employee leavesUBS voluntarily within 12 months ofthe start of employment. The replacement
awards do not exceed the commercial or fair valueof the compensation actually forfeited by the individual and, incase
of GEBmembers, aredisclosed transparently.The total2025 forfeituresof USD 456mof previouslyawarded deferred
compensation offset the 2025 total sign-on payments, replacement payments and guarantees of USD 145m.
Sign-on payments, replacement payments, guarantees and severance payments
Total 2025
of which: non-deferred
cash
of which: deferred
compensation
awards
Total 2024
Number of beneficiaries
USD m, except where indicated
2025
2024
Total sign-on payments
1
0
0
0
0
0
0
of which: Key Risk Takers
2
0
0
0
0
0
0
Total replacement payments
3
91
31
60
108
257
244
of which: Key Risk Takers
2
4
1
3
29
7
9
Total guarantees
4
55
28
27
36
53
21
of which: Key Risk Takers
2
4
2
2
19
3
3
Total severance payments
1,5
942
942
0
735
7,538
5,696
of which: Key Risk Takers
2
5
5
0
5
19
21
1 GEB members arenot eligible for sign-onor severance payments.Sign-on awards excludeone-time payments forjunior associate hires intothe Investment Bank. Includingthese, the totalsign-on payments are
USD 1m for 2025 and USD 1m for 2024. All one-time payments for junior associate hires are subject to a 12-month clawback condition.2 Expenses for Key Risk Takersare full-year amounts for individuals in office
on 31 December 2025. Prior period informationhas been adjusted to exclude employees witha total compensation exceeding USD / CHF 2.5m who werenot otherwise identified as KRTs.3 No GEB member received
a replacement payment in 2025 or 2024. Totalamounts include awards granted to employees hiredlate in the year to replace performance awards thatthey would have earned at their previous employers but have
foregone by joining UBS.4 No GEB member received a guarantee in 2025 or 2024.5 Includes legally obligated and standard severance payments, as well as payments in lieuof notice.
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Corporate governance and compensation | Compensation219
Forfeitures
1
Total 2025
Total 2024
USD m, except where indicated
Total forfeitures
456
256
of which: Key Risk Takers
2
16
2
1 Fornotional share awards,forfeitures are calculatedas units forfeitedduring the year,valued at theshare price on31 December 2025 (USD 46.31)for 2025. The2024 data isvalued using theshare price on
31 December 2024 (USD 30.32). For LTIPthe forfeited units reflect the fair value awarded at grant. For the notional funds awardedto Asset Management employees under the AM EOP / FOP in 2025 and 2024, and
CS Legacy notionalfunds for 2025,this represents thefair value atthe time ofthe employee forfeiture.For the DCCP,the fair valueat grant ofthe forfeited awardsduring the yearis reflected. Allvalues shown
exclude DCCP interest. Value also excludes the previously forfeited uplift value of the CS legacy Strategic Delivery Plan. Numbers presented may differ from the effect on the income statement in accordance with IFRS.
2 Key Risk Takersas defined by UBS,including former GEB memberswho forfeited awards in2025 or 2024. Priorperiod informationhas been adjusted toexclude employees with atotal compensation exceeding
USD / CHF 2.5m who were not otherwise identified as KRTs.
Employee share ownership
Employee share ownershipis encouraged and,in addition toour mandatory deferredshare-based compensation plans
LTIP and EOP, made possible through our Equity Plus Plan (the EPP). The EPP is our employee share purchaseprogram. It
allowsemployeesuptoExecutiveDirectorleveltovoluntarilyinvestupto30%oftheirbasesalaryand / orregular
commission payments to purchaseUBS shares. In addition(where offered), eligible employees caninvest up to 35%of
their performance award under the program. Participation in the program is capped at USD / CHF 20,000 annually.
Eligible employees may purchaseUBS shares at marketprice and receive, atno additional cost, oneadditional notional
share forevery threeshares purchasedthrough theprogram. Additionalshares vestafter amaximum ofthree years,
provided the employee remains employedby UBS and has retainedthe purchased shares throughout theholding period.
On 31 December 2025, UBS employees held at least 6.94% of UBS shares outstanding (including approximately 4.55%
in unvested deferred notional sharesfrom our compensation programs).These figures are based onknown shareholding
information from employee participation plans, personal holdings withUBS and selected individual retirement plans. At
the end of 2025, at least 28% of all employees held UBS shares through the firm’s employee share participation plans.
›
Refer to “Note 26 Employee benefits: variable compensation” in the “Consolidated financial statements” section of this reportfor
more information
Compensation for US financial advisors in Global Wealth Management
In line with market practice for US wealthmanagement businesses, the compensation for USfinancial advisors in Global
Wealth Management consists of cash compensation, determined using a formulaic approach basedon production, and
deferred awards. The compensation approach for USfinancial advisors is set in the context of local market practice and
is regularly reviewed for competitiveness by the Compensation Committee.
The monthlycash compensationis determinedusing anoverall percentagerate foreach financialadvisor.It reflectsa
percentageofthecompensableproductionthateachfinancialadvisorgeneratesduringthatmonth.Compensable
production is generally based on transaction revenue and investment advisory fees and may reflect further adjustments.
Thepercentagerategenerallyvariesbasedontheleveloftheproductionandfirmtenure,supportinggrowthand
alignment with the investment strategy and goals of our clients.
Financial advisorsmay alsobe granteddeferred awards. Theseamounts generallyvest overa six-yearperiod. Thedeferred
awardsmay take into account the overall percentage rate and production, as previously outlined.
Cash compensation and deferred awards maybe reduced for, among other things, errors, negligence or carelessness, or
failure tocomply withthe firm’srules, standards,practices and/ orpolicies, and/ orapplicable lawsand regulations.
Similar as withour deferred compensation plans,any cash compensationor deferred awards for USfinancial advisors are
subject to harmful acts provisions.
Financial advisorsmay alsoparticipate inadditional programsto supportpromotingand developingtheir businessor
supporting the transition of client relationships where appropriate.
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Corporate governance and compensation | Compensation220
2025 Group performance outcomes
Performanceawards grantedfor the 2025performanceyear
The “Variablecompensation” table belowshows the amountof variable compensationawarded toemployees for the
2025 performanceyear, together withthe numberof beneficiariesfor eachtype ofaward granted.In thecase ofdeferred
awards,thefinalamountpaidtoanemployeedependsonperformanceconditionsandconsiderationofrelevant
forfeiture provisions.The deferredshare awardamount isbased onthe marketvalue ofthese awardson thedate of
grant.
Variable compensation
Expenses recognized
in the IFRS
Accounting
Standards income
statement
Expenses deferred to
future periods
1
Adjustments
1
Total
Number of beneficiaries
2
USD m, except where indicated
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
Non-deferred cash
3,609
3,290
0
0
32
2
3,641
3,292
88,799
94,086
Deferred compensation awards
625
563
901
813
(18)
30
1,508
1,406
5,382
5,517
of which: Equity Ownership Plan
131
180
322
280
39
3
42
3
492
501
4,101
4,228
of which: Deferred Contingent Capital Plan
236
197
348
336
0
0
584
533
5,329
5,378
of which: Long-Term Incentive Plan
228
161
196
166
(57)
4
(12)
4
368
314
973
948
of which: Fund Ownership Plan
29
26
35
32
0
0
65
58
348
360
Variable compensation – performance award pool
4,234
3,853
901
813
14
32
5,149
4,698
88,812
94,105
Variable compensation – financial advisors
5
4,874
4,485
1,059
1,028
0
0
5,934
5,512
5,514
5,812
Variable compensation – other
6
617
539
206
229
(156)
7
(175)
7
667
593
Total variable compensation
9,725
8,876
2,167
2,070
(141)
(143)
11,750
10,803
1 Estimates as of 31 December 2025 and 2024. Actual amounts to be expensedin future periods may vary; e.g. due to forfeitureof awards.2 Excludes number of beneficiaries who received awards that form part
of Variable compensation –other.3 Represents estimated post-vesting transfer restrictionand permanent forfeiture discounts.4 Net adjustments for LTIPare negative USD 57m (2024: negativeUSD 12m) and
include the estimated amounts for (i) the differenceof negative USD 130m (2024: negative USD 66m) betweenthe IFRS 2 expense and the communicated valueincluded in the performance award pool, and(ii) the
post-vesting transfer restriction andpermanent forfeiture discounts ofUSD 74m (2024: USD 54m).5 Financial advisor compensation consistsof cash compensation, determined usinga formulaic approach based
on production, and deferred awards. It also includes expenses related tocompensation commitments with financial advisors entered into at thetime of recruitment that are subject to vestingrequirements.6 Includes
severance payments, replacementand retention awards and interestexpense related to the DeferredContingent Capital Plan.7 Included in expenses deferred to futureperiods is an amount of USD 156m(2024:
USD 175m) in interest expense related to the Deferred ContingentCapital Plan. As the amount recognized as performance awardrepresents the present value of the awardat the date it is granted to the employee,
this amount is excluded.
2025
performance award pool and expenses
The performance award pool, whichreflects performance-based variable awards for2025, was USD 5.1bn, reflecting an
increase of10% comparedwith 2024.Performance awardexpenses for2025 increasedto USD 4.9bn,which reflects
expenses accrued inrelation to 2025performance awards, aswell as deferredexpenses from priorperformance years.
The“Performance awardpoolandexpenses” tablebelowcomparestheperformance awardpoolwithperformance
award expenses.
Performance award pool and expenses
USD m, except where indicated
2025
2024
% change
Performance award pool
1
5,149
4,698
10
of which: expenses deferred to future periods and adjustments
2,3
915
845
8
Performance award expenses accrued in the performance year
4,234
3,853
10
Performance award expenses related to prior performance years
678
603
12
Total performance award expenses recognized for the year
4
4,912
4,456
10
1 Excluding employer-paid taxes andsocial security.2 Estimate as of the end of the performanceyear. Actual amountsexpensed in future periods may vary,e.g. due to forfeiture ofawards.3 Refer to details in
the preceding"Variable compensation"table formore information.4 Refer to“Note 26 Employeebenefits: variablecompensation” inthe “Consolidatedfinancial statements”section ofthis reportfor more
information
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Corporate governance and compensation | Compensation221
Compensation for the Board of Directors
Chairman of the BoD
Under the leadership of the Chairman,Colm Kelleher, the Board of Directors (the BoD) determines, among other things,
the strategy for the Group,based on recommendations by the Group Chief Executive Officer (the Group CEO),exercises
ultimate supervision over management and appoints all Group Executive Board (GEB) members.
The Chairman leads all generalmeetings and BoD meetings andworks with the committee Chairpersons tocoordinate
the work of all BoDcommittees. Together with the GroupCEO, the Chairman is responsiblefor effective communication
withshareholdersandstakeholders,includingclients,governmentofficials,regulatorsandpublicorganizations.The
Chairman works closely with the Group CEO and other GEB members, providing advice and support when appropriate,
andcontinuestostrengthenandpromoteourculturethroughthethreekeystosuccess:our
Pillars,Principlesand
Behaviors.
As an independent director, the Chairman’stotal compensation for the periodfrom Annual General Meeting (AGM) to
AGM consists ofa fixed feewithout any variablecomponent, which isdelivered 50% incash and 50%in shares (blocked
for four years). For thecurrent period, from the 2025AGM to the 2026 AGM,his fixed fee was CHF 5.5mand consisted
of a cash paymentof CHF 2.75m and ashare component of CHF 2.75m,consisting of 83,525 UBSshares at CHF 32.924
per share. Theshare component alignsthe Chairman’s paywith the Group’slong-term performance. TheChairman does
not receive performance awards,severance payments or pension contributionsin addition to his fixedfee, but, given the
full-time nature of his role, he is eligible for employee conditions on UBS products and services.
›
Refer to “Board of Directors” in the “Corporate governance” section of this report for moreinformation about the responsibilities
of the Chairman
Vice Chairman of the BoD
As the Vice Chairman of the BoD, Lukas Gähwiler leads the BoD in the absence of the Chairman and, together with the
Senior Independent Director, he also supports the Chairman in all aspects of corporate governance and oversight across
the Group. In particular, he represents UBS across a broad range of associations and industry bodies in Switzerland.
The Vice Chairman’s total compensation for hisservices in the UBS Group AGBoard for the period from AGMto AGM
consists of a fixed fee without anyvariable component, which is delivered 50% in cashand 50% in shares (blocked for
four years).For thecurrent period,from the2025 AGMto the2026 AGM,his fixedfee wasCHF 1.5m, excludingbenefits
and pensionfund contributions.The fixedfee consistedof acash paymentof CHF 0.75mand ashare componentof
CHF 0.75m, consisting of 22,779 UBS shares at CHF 32.924 per share.
As a non-independent director, Mr. Gähwileris entitled to pension fund contributionsand benefits. Including these, his
total reward for his service as Vice Chairman for the current period was CHF 1,937,864.
The Vice Chairmanis not eligiblefor performance awards,severance terms orsupplementary contributions topension
plans. Thepension contributionsand benefitsfor theVice Chairman,in hiscapacity asnon-independent director,are
consistent with all UBS employees and aligned with local market practice.
In 2025,the BoDannounced thatLukas Gähwilerwould notstand forre-election atthe forthcomingAGM andthat
Markus Ronner would be nominated as a newmember of the BoD. After his election,he would assume the role ofthe
Vice Chairman.The fixedfee forthe ViceChairman rolewill remainunchanged, atCHF 1.5m forthe periodfrom the
2026 AGM to the 2027 AGM and continue to be delivered 50% in cash and 50% in shares (blocked for four years).
›
Refer to “Board of Directors” in the “Corporate governance” section of this report for moreinformation about the responsibilities
of the Vice Chairman
›
Refer to the “Say-on-pay” section of this report for more information aboutcompensation-related proposals at the 2026 AGM
ubs-20251231p246i0
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Corporate governance and compensation | Compensation222
Other BoD members
OtherBoDmembersreceivefixedfeesfortheirservicesontheBoDanditscommittees.Thefeestructureremains
unchanged compared with the last AGM-to-AGM period. BoD members do not receive performance awards, severance
payments, benefits orpension contributions (thebenefit eligibility ofthe Chairman andthat ofthe ViceChairman are
described above).
BoD membersother thanthe Chairmanand theVice Chairmanreceive atminimum 50%of theirfees inUBS shares,
which areblocked forfour years,and theymay electto receiveup to100% oftheir feesin blockedUBS shares.The
number of shares is calculated basedon the average closing price ofthe 10 trading days leading up toand including the
grant date.
Since 2023, in order to facilitate the integration of CreditSuisse into UBS, a number of independent BoD members have
served on the boardsof directors of significantsubsidiaryentities. UBS Group AGBoard members who haveadditional
rolesontheboardsofsignificantsubsidiaryentitiesreceiverespectivefeesforthesignificantincreaseinthescope,
responsibilityandcomplexityoftheirmandates.Thesefeesarealignedwithothernon-executivedirectorsofthe
respective subsidiary entities. The total remuneration of other UBSGroup AG members, including fees from subsidiaries,
is summarized in the “Remuneration details and additional information for BoD members” table below.
AteachAGM,shareholdersareinvitedtoapprovetheaggregateamountofBoDremuneration,includingthe
compensation for the Chairman and Vice Chairman,which applies until the next AGM. Thechart and the tables below
provide details on the fee structure for the BoD members.
Approval governance for BoD compensation
TheChairpersonoftheCompensationCommitteeproposesandtheCompensationCommitteeapprovesthe
compensation of the Chairman and that ofthe Vice Chairman annually for the upcomingAGM-to-AGM period, taking
into consideration fee or compensation levels for comparable roles based on our core financial industrypeers and other
relevant leading Swiss companies included in the Swiss Market Index.
The feestructure forthe otherBoD membersis reviewedannually basedon theChairman’s proposalto theCompensation
Committee, which in turn submits aproposal to the BoD for approval.In our regular review of theBoD fee structure, we
concluded that our overall approach for BoD member compensation remains appropriate and therefore unchanged.
›
Refer to “Compensation Governance” in the “Compensation philosophy and governance” section of this report for more
information about the remuneration responsibilities of the BoD and Compensation Committee
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Corporate governance and compensation | Compensation223
Audited |
Remuneration details and additional information for BoD members
Period 2025 AGM to 2026 AGM
CHF, except where indicated
Name, function
1
Audit Committee
Compensation Committee
Corporate Culture and
Responsibility Committee
Governance and Nominating
Committee
Risk Committee
Base fee
Committee
fee(s)
Additional
payments
2
Benefits
3
Total
4
Share
percentage
5
Number of
shares
6,7
Subsidiary
entity board
fees
Total
including
subsidiary
fees
Colm Kelleher, Chairman
8
C
C
5,500,000
28,633
5,528,633
50
83,525
5,528,633
Lukas Gähwiler, Vice
Chairman
8
M
M
1,500,000
437,864
1,937,864
50
22,779
1,937,864
Jeremy Anderson, Senior
Independent Director
C
M
300,000
400,000
150,000
850,000
100
20,424
163,641
1,013,641
William C. Dudley, member
M
M
300,000
250,000
550,000
50
8,352
550,000
Patrick Firmenich, member
M
M
300,000
250,000
550,000
100
12,373
550,000
Fred Hu, member
M
300,000
100,000
400,000
100
8,984
400,000
Mark Hughes, member
M
C
300,000
400,000
700,000
50
10,630
700,000
Renata Jungo Brüngger,
member
M
300,000
50,000
350,000
50
5,315
350,000
Gail Kelly, member
M
M
300,000
200,000
500,000
50
7,593
500,000
Julie G. Richardson, member
C
M
300,000
400,000
700,000
50
10,630
700,000
Lila Tretikov, member
M
300,000
200,000
500,000
50
7,593
500,000
Jeanette Wong, member
M
M
300,000
300,000
600,000
100
13,584
600,000
Aggregate of all BoD members 2025/2026
13,166,497
13,330,139
Aggregate of all BoD members 2025/2026 in USD (for reference)
9
15,895,173
16,092,729
Period 2024 AGM to 2025 AGM
CHF, except where indicated
Name, function
1
Audit Committee
Compensation Committee
Corporate Culture and
Responsibility Committee
Governance and
Nominating Committee
Risk Committee
Base fee
Committee
fee(s)
Additional
payments
2
Benefits
3
Total
4
Share
percentage
5
Number of
shares
6,7
Subsidiary
entity board
fees
Total
including
subsidiary
fees
Colm Kelleher, Chairman
8
C
C
5,500,000
16,915
5,516,915
50
90,675
5,516,915
Lukas Gähwiler, Vice
Chairman
8
M
M
1,500,000
369,051
1,869,051
50
24,729
250,000
2,119,051
Jeremy Anderson, Senior
Independent Director
C
M
300,000
400,000
150,000
850,000
50
14,013
368,755
1,218,755
Claudia Böckstiegel, member
M
300,000
50,000
350,000
50
5,770
350,000
William C. Dudley, member
M
M
300,000
250,000
550,000
50
9,067
550,000
Patrick Firmenich, member
M
M
300,000
250,000
550,000
100
13,432
550,000
Fred Hu, member
M
M
300,000
200,000
500,000
100
12,206
500,000
Mark Hughes, member
M
C
300,000
400,000
700,000
50
11,540
210,607
910,607
Gail Kelly, member
M
300,000
100,000
400,000
50
6,594
400,000
Nathalie Rachou, member
M
M
300,000
300,000
600,000
50
9,891
600,000
Julie G. Richardson, member
C
M
300,000
400,000
700,000
50
11,540
700,000
Jeanette Wong, member
M
M
300,000
300,000
600,000
100
14,658
600,000
Aggregate of all BoD members 2024/2025
13,185,966
14,015,328
Legend: C = Chairperson of the respective Committee, M = Member of the respective Committee
1 Twelve BoD members werein office on 31 December 2025 and on31 December 2024.2 These payments are associated withthe Senior Independent Director role.3 For the period from the 2025AGM to the
2026 AGM, benefitsamount is an estimate.For the Vice Chairman, thebenefits include theportion related toUBS’s contributionto the statutorypension scheme.4 Excludes UBS’sportion related tothe legally
required social security contributions, which for the period from the 2025 AGM to the 2026 AGM (including the Chairman, Vice Chairman and UBS GroupAG members with a role in subsidiaries) is estimated at grant
at CHF 650,000 and which for the periodfrom the 2024 AGM to the2025 AGM was estimated atgrant at CHF 753,000. Thelegally required social security contributions paidby the independent BoD members are
included in the amounts shown in this table, as appropriate.5 For the Chairman and Vice Chairman, fees are paid 50% in cash and 50% in blocked UBS shares. Other BoDmembers must use a minimum of 50% of
their fees to purchase UBS shares, which are blocked for four years.6 For 2025, UBS shares were valued at CHF 32.924 (average closing price of UBS shares over the last 10 trading days leading up to and including
the grant date). For 2024, UBS shares were valued at CHF 30.328 (average closing price of UBS shares over the last 10 trading days leading up to and including the grant date). These shares are blocked for four years.
7 Number of shares is reduced in case of the 100% election to deduct legallyrequired contributions. All remuneration payments are,where applicable, subject to social security contributions and / orwithholding tax.
8 The Chairman and the Vice Chairman donot receive committee fees in addition to their annual fixed fee.9 Swiss franc amounts have been translated into US dollarsfor reference at the 2025 performance award
currency exchange rate of CHF / USD 1.207244.
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Corporate governance and compensation | Compensation224
Supplemental information
Fixed and variable compensation forGEB members
Fixed and variable compensation for GEB members
1,2,3
Total for 2025
Not deferred
Deferred
4
Total for 2024
CHF m, except where indicated
Amount
%
Amount
%
Amount
%
Amount
Total compensation
Amount
5
142
100
47
33
95
67
140
Number of beneficiaries
15
20
Fixed compensation
5,6
23
16
23
100
0
0
25
Cash-based
23
16
25
Equity-based
0
0
0
Variable compensation
119
84
24
20
95
80
114
Cash
7
24
17
26
Long-Term Incentive Plan (LTIP)
8
59
42
53
Deferred Contingent Capital Plan (DCCP)
8
36
25
34
1 The figures include all GEB members in officeduring the respective years.2 Includes compensation paid under the employment contract duringthe notice period for GEB members who stepped down duringthe
respective years.3 Includes compensation for newlyappointed GEB members fortheir time in officeas a GEB memberduring the respective years.4 Based on the specificplan vesting and reflectingthe total
award value at grant, which may differ fromthe expense recognized in the income statement in accordancewith IFRS Accounting Standards.5 Excludes benefits and employer’s contributionsto retirement benefit
plans. Includes social security contributions paid by GEB members but excludes the portion related to the legally required social security contributions paid by UBS.6 Includes base salary and role-based allowances,
rounded to the nearest million.7 Includes allocation of vested but blocked shares, in line with the remunerationsection of the UK Prudential Regulation Authority Rulebook.8 For the GEB members who are also
EU MRTs, theawards do not includedividend and interest payments.Accordingly, the amountsreflect for the LTIPthe fair value of thenon-dividend-bearing awards and forthe DCCP the fair valueof the granted
non-interest-bearing awards.
Regulated staff
Key Risk Takers
Key RiskTakers (KRTs)are definedas thoseemployees that,by thenature oftheir roles,have beendetermined tomaterially
set, commit or control significant amounts of the firm’s resources and / or exert significant influence over its risk profile.
This includes employees workingin front-office roles, logisticsand control functions. Identifying KRTsglobally is part of
our risk control framework and an important element inensuring we incentivize only appropriate risk-taking. For 2025,
in addition to GEB members, 755 employees were classified as KRTs throughout the UBS Group globally.
In linewith regulatoryrequirements, theperformance ofemployees identifiedas KRTsduring theperformance yearis
evaluated by the control functions. In addition, KRTs’ performance awards are subject to a mandatory deferral rate of at
least50%, regardlessofwhetherthedeferral thresholdhasbeenmet(excluding KRTswithdeminimisperformance
awards below a predetermined threshold where standard deferral rates apply). Consistent with all other employees, the
deferred portion of a KRT’s compensation is also subject to forfeiture or reduction if the KRT commits harmful acts.
Fixed and variable compensation for Key Risk Takers
1
Total for 2025
Not deferred
Deferred
2
Total for 2024
3
USD m, except where indicated
Amount
%
Amount
%
Amount
%
Amount
Total compensation
Amount
1,554
100
943
61
611
39
1,650
Number of beneficiaries
755
818
Fixed compensation
3,4
488
31
488
100
0
0
540
Cash-based
485
31
485
538
Equity-based
3
0
3
3
Variable compensation
1,066
69
455
43
611
57
1,110
Cash
5
455
29
455
467
Long-Term Incentive Plan (LTIP)/ Equity Ownership
Plan (EOP) / Fund Ownership Plan (FOP)
6
370
24
370
386
Deferred Contingent Capital Plan (DCCP)
6
241
16
241
256
1 Excludes payments made to individuals related to their time as a GEB member.Prior-period information has been adjusted to exclude employees with a total compensation exceedingUSD / CHF 2.5m who were not
otherwise identified as KRTs.2 Based on the specific plan vesting and reflectingthe total value at grant, whichmay differ from the expense recognized inthe income statement in accordance with IFRSAccounting
Standards.3 Excludes benefits and employer’s contributions to retirementbenefits plan. Includes social security contributions paid by KRTs butexcludes the legally required social security contributions paid by UBS.
4 Includes base salary and role-based allowances.5 Includes allocation of vested but blockedshares, in line with regulatory requirementswhere applicable.6 KRTs who are also EU MRTsdo not receive dividend
and interest payments.
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Corporate governance and compensation | Compensation225
Deferred compensation of the GEB and KRTs
Thetablebelowshowsthecurrenteconomicvalueofunvestedoutstandingdeferredvariablecompensationawards
subject to ex postadjustments. For share-based plans,the economic valueis determined basedon the closingshare price
on 31 December2025. Fornotional funds,it isdetermined usingthe latestavailable marketprice forthe underlying
funds at the end of 2025, and for deferred cash plans, it is determined based on the outstanding amount of cash owed
to award recipients.
Deferred compensation of the GEB and KRTs
1,2,3
USD m, except where indicated
Relating to awards
for 2025
4
Relating to
awards for prior
years
5
Total
of which: exposed to
ex post explicit and /
or implicit adjustments
Total deferred
compensation
year-end 2024
Total amount of
deferred compensation
distributed in 2025
6
GEB
Deferred Contingent Capital Plan
34
150
184
100%
185
45
Equity Ownership Plan (including notional funds
and Credit Suisse legacy plans)
0
36
36
100%
43
21
Long-Term Incentive Plan
72
276
348
100%
335
98
KRTs
Deferred Contingent Capital Plan
241
954
1,195
100%
1,153
112
Equity Ownership Plan (including notional funds)
129
732
861
100%
1,014
422
Long-Term Incentive Plan
241
583
824
100%
519
88
Credit Suisse legacy plans
31
31
100%
100
42
Total GEB and KRTs
717
2,762
3,479
3,349
828
1 Basedon thespecific planvesting andreflecting theeconomic valueof theoutstanding awards,which maydiffer fromthe expenserecognized inthe incomestatement inaccordance withIFRS. Year-to-year
reconciliations would also needto consider the impactsof additional items includingoff-cycle awards,FX movements, populationchanges and dividend equivalentreinvestments. Prior periodinformation has been
adjusted to exclude employees with a total compensationexceeding USD / CHF 2.5m who were nototherwise identified as KRTs.2 Refer to “Note 26 Employee benefits: variable compensation”in the “Consolidated
financial statements” section of this report for more information.3 GEB members and KRTs who are also EU MRTs do not receive dividend and interestpayments.4 Where applicable, amounts are translated into
US dollars at the performance award currencyexchange rate. LTIPvalues reflect the communicated valueawarded at grant.5 Takesinto account the ex post implicit adjustments,given the share price movements
since grant.Where applicable,amounts are translatedfrom awardcurrency intoUS dollars usingFX ratesas of 31December 2025.LTIPvalues reflectthe fair valueawarded atgrant orcommunicated valueas
applicable.6 Valued at distribution price and FX rate for all awards distributedin 2025 (this excludes interests on DCCP).
The tablebelow showsthe valueof actualex postexplicit andimplicit adjustmentsto outstandingdeferred compensation
in the 2025 financial year for GEB members and KRTs.
Ex post adjustmentsoccur after anaward has beengranted. Explicit adjustmentsoccur when weadjust compensation
by forfeiting deferred awards. Implicit adjustments are unrelated to any action taken by the firm and occuras a result of
price movements that affect the value of an award.
GEB and KRTsex post explicit and implicit adjustments to deferred compensation
Ex post explicit adjustments
to unvested awards
1
Ex post implicit adjustments
to unvested awards
2
USD m
31.12.25
31.12.24
31.12.25
31.12.24
GEB
Deferred Contingent Capital Plan
0
0
0
0
Equity Ownership Plan (including notional funds and Credit Suisse legacy
plans, if applicable)
0
0
16
13
Long-Term Incentive Plan
(2)
0
136
94
KRTs
3
Deferred Contingent Capital Plan
(4)
(1)
0
0
Equity Ownership Plan (including notional funds)
(8)
(1)
332
261
Long-Term Incentive Plan
0
0
287
98
Credit Suisse legacy plans
0
(1)
12
15
Total GEB and KRTs
(14)
(2)
783
481
1 For notional shareawards, ex postexplicit adjustments are calculated asunits forfeited during the year,valued at the shareprice on 31 December 2025 (USD 46.31)for 2025 (which may differfrom the expense
recognized in the income statement in accordance with IFRS). The 2024 data is valued using the share price on 31 December 2024 (USD 30.32). For LTIP,the forfeited units reflect the fair value awarded at grant. For
the notional funds awarded to Asset Managementemployees under the AM EOP/FOP in 2025and 2024, and CS Legacy notional fundsfor 2025, this represents the fair valueat the time of the employee forfeiture.
For DCCP,the fair value atgrant of the forfeitedawards during the yearis reflected. All valuesshown exclude DCCP interest.2 Ex post implicit adjustmentsfor UBS shares are calculatedbased on the difference
between the weighted average grant date fair value and the share price at year-end. The amount for UBS and CS legacy notional funds is calculated using the mark-to-market change during 2025 and 2024.3 Prior
period information has been adjusted to exclude employees with a total compensation exceeding USD / CHF 2.5m who were not otherwise identified asKRTs.
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Corporate governance and compensation | Compensation226
UK Material Risk Takers and the UK Senior Managers and Certification Regime
For relevant UK-regulatedentities, we identifyindividuals who aredeemed to beMaterial Risk Takers(UK MRTs) based
onsectorialand/orlocalregulatoryrequirements,includingequivalentUKrequirements,asapplicable.Thisgroup
consists of senior management,risk takers, selected staffin control or supportfunctions and certain highlycompensated
employees.Inaddition,theSeniorManagersandCertificationRegime(theSMCR)oftheUKPrudentialRegulation
Authority (thePRA) andFinancial ConductAuthority (theFCA) requiresthat individualswith specifiedresponsibilities,
performingcertainsignificantfunctionsand/orthoseincertainotheridentifiedcategoriesbedesignatedasSenior
Management Functions (UKSMFs). For 2025,UBS identified 772UK MRTs andSMFs in relationto its relevantUK entities.
For UK-regulatedMRTs andSMFs, UBSapplies therequirements setby thePRA andthe FCAunder thereformed UK
remuneration rules, and where relevant, the FCA’s Investment Firms Prudential Regime (MIFIDPRU) Remuneration Code,
ensuringcompliancewiththerelevantregulatorystandardsgoverningvariablecompensationstructures,deferral
arrangements and the use of share-based instruments.
Additionally, UK MRTsand UK SMFsare subject toa maximum ratiobetween fixed andvariable pay, whichwas set by
UBS taking into account thebusiness activities and prudentialand conduct risks ofthe relevant legal entities. Inaddition,
themaximumratiosweresetconsideringthescenariothattherelevantlegalentitiesmightexceedtheirfinancial
objectives, and to align with the ratios applicable for GEB members on a communicated value basis.
The maximum ratio for all UK-regulated MRTs and SMFs was approved by the compensation committees of the relevant
entities.
Performance awards granted to UK MRTsand UK SMFs are subject to clawbackprovisions, which allow the firm to claim
repayment of boththe upfront andthe vested deferredelement of anyperformance award if anindividual is found to
have contributedsubstantially tosignificantfinancial lossesfor theGrouporcorporate structurein scope,a material
downwardrestatement ofdisclosedresults, orengaged inmisconductand/orfailedtotake expectedactions,thus
contributing to significant reputational harm.
Long-TermIncentivePlan(LTIP)awardsgrantedtoUKMRTsandUKSMFsaresubjecttoanadditionalnon-financial
conduct-related metric as required by UK regulation.
EU Material Risk Takers
For relevant EU-regulated entities,we identify individuals whoare deemed to be MaterialRisk Takers (EU MRTs)based on
sectorial and /or local regulatoryrequirements, including therespective EU CommissionDelegated Regulation andthe
fifth iterationof theEU CapitalRequirements Directive(CRD V),the Undertakingsfor CollectiveInvestment inTransferable
Securities Directive(UCITS V)and theAlternative InvestmentFund ManagersDirective (theAIFMD), asapplicable. This
groupconsistsofseniormanagement,risktakers,selectedstaffincontrolorsupportfunctionsandcertainhighly
compensated employees. For 2025, UBS identified 262 EU MRTs in relation to its relevant EU entities.
Subject to individual or legal-entity level proportionality considerations, variable compensation awarded to EU-regulated
MRTs is subject to additional deferraland other requirements under Art. 94 ofthe Capital Requirements Directive, UCITS
V andthe AIFMD,as furtherin theapplicable EuropeanSecurities andMarkets Authority(ESMA) remunerationguidelines.
Additionally,whereapplicable,EUMRTsaresubjecttoamaximumratiobetweenfixedandvariablepay.AcrossEU
locations, the maximum variableto fixed compensation ratiofor EU-regulated MRTs isset to 200%, basedon approval
through relevant shareholder votes.
Australian Material Risk Takers
For UBSAG, AustraliaBranch, weidentified individualswho areAustralian MaterialRisk Takers(AUSMRTs)under the
Australian Prudential Regulation Authority Prudential Standard CPS511 requirements. The Prudential Standardoutlines
that AUSMRTsare individualswhose professional activitieshave a materialpotential impact onthe entity’s riskprofile,
performance and long-term soundness. Variable compensation for these individuals is subject to additional deferral and
other requirements under Prudential Standard CPS 511 and harmful acts provisions.
Control functions and Group Internal Audit
Ourcontrolfunctionsmustbeindependentinordertomonitorriskeffectively.Therefore,theircompensationis
determined separately from the revenue areas that they oversee, supervise or monitor.Their performance award pool is
based not on the performance of these businesses, buton the performance of the Group asa whole. We also consider
otherfactors,suchashoweffectivelythefunctionhasperformedandourmarketposition.Decisionsonindividual
compensation forthe seniormanagers ofthe controlfunctions aremade bythe functionheads andapproved bythe
Group CEO. Decisions on individual compensation forthe members of Group Internal Audit (GIA)are made by the Head
GIA andapprovedby theChairman. Followingaproposalby theChairman, totalcompensation forthe HeadGIA is
approved by the Compensation Committee.
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Corporate governance and compensation | Compensation227
2025 Group personnel expenses
Thenumberofinternalpersonnelemployedasof31 December2025decreasedby5,471to103,177(full-time
equivalents) compared with 31 December 2024.
Thetablebelowshowsourtotalpersonnelexpensesfor2025,includingsalaries,pensionexpenses,socialsecurity
contributions,variablecompensationandotherpersonnelcosts.Variablecompensationincludescashperformance
awards paid in 2026for the 2025 performanceyear, amortization of unvesteddeferred awards granted inprevious years
and the cost ofdeferred awards grantedto employees that areeligible for retirement inthe context of thecompensation
framework at the date of grant.
The performance award poolreflects the value ofperformance awards granted relatingto the 2025performance year,
including awardsthat arepaid outimmediately andthose thatare deferred.To determineour variablecompensation
expenses,thefollowingadjustmentsarerequiredinordertoreconciletheperformanceawardpooltotheexpenses
recognized in the Group’s financial statements prepared in accordance with IFRS Accounting Standards:
–
a reduction forexpenses deferred tofuture periods (amortizationof unvested awardsgranted in 2026for the 2025
performance year) and accounting adjustments; and
–
an addition for the 2025 amortization of unvested deferred awards granted in prior years.
As a large part of compensation consists of deferred awards, theamortization of unvested deferred awards granted for
prior yearsforms asignificant partof theIFRS AccountingStandards expensesin both2025 and2026. Theexpenses
related to prior performance years and total expensesrecognized in 2025 include deferred compensation grantedunder
Credit SuisseGroup compensationplans inprevious years,which havebeen expensedfrom 2023onward dueto the
integration of Credit Suisse into UBS.
›
Refer to “Note 6 Personnel expenses” and “Note 26 Employee benefits: variable compensation” in the “Consolidatedfinancial
statements” section of this report for more information
Personnel expenses
Expenses recognized in the IFRS Accounting Standards income statement
USD m
Related to the 2025
performance year
Related to prior
performance years
Total expenses
recognized in
2025
Total expenses
recognized in
2024
Total expenses
recognized in
2023
Salaries
1
11,904
0
11,904
12,178
10,997
Non-deferred cash
3,609
(61)
3,548
3,206
2,807
Deferred compensation awards
625
740
1,364
1,250
1,179
of which: Equity Ownership Plan
131
260
391
458
485
of which: Deferred Contingent Capital Plan
236
316
552
487
421
of which: Long-Term Incentive Plan
228
132
360
237
204
of which: Fund Ownership Plan
29
31
60
68
69
Variable compensation – performance awards
4,234
678
4,912
4,456
3,986
Variable compensation – financial advisors
2
4,874
780
5,654
5,293
4,549
Variable compensation – other
3
617
250
867
1,121
1,310
Total variable compensation
4
9,725
1,709
11,434
10,870
9,845
Contractors
301
0
301
325
334
Social security
1,547
149
1,696
1,622
1,473
Post-employment benefit plans
5
1,499
0
1,499
1,310
1,361
Other personnel expenses
988
39
1,027
1,013
890
Total personnel expenses
25,964
1,896
27,861
27,318
24,899
1 Includes role-basedallowances.2 Financial advisorcompensation consists ofcash compensation, determinedusing a formulaicapproach based onproduction, and deferredawards. Italso includes expenses
related to compensation commitmentswith financialadvisors entered into atthe time of recruitmentthat are subject tovesting requirements.3 Includes severance payments,replacement and retention awards,
existing deferred awards granted to Credit Suisse employees, interest expense related to the DeferredContingent Capital Plan and forfeiture credits.4 Refer to “Note 26 Employee benefits: variable compensation”
in the “Consolidated financial statements” section of this report for more information.5 Refer to “Note 25 Post-employment benefit plans” in the “Consolidated financial statements” section of this report for more
information.
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Corporate governance and compensation | Compensation228
Deferred compensation
Vesting of outstanding awards granted in prior years subject to performance metrics and thresholds
The tablesbelow showthe extentto whichthe performancemetrics andthresholds forawards grantedin prioryears
have been met and the related vesting in 2026.
Long-Term Incentive Plan (LTIP)2019 (performance period 2020–2022)
Performance metrics
Performance achievement
1
Vesting
Return on common equity tier 1 capital
(RoCET1) and relative Total Shareholder
Return (rTSR)
The overall achievement level is 98.0% of
the maximum opportunity (of up to
100%), based on outcomes for rTSR
(weighted 50%) and RoCET1 (weighted
50%).
–
For GEB, the first, second and third installments vested in 2023,
2024 and 2025, respectively.
–
As outlined in our 2019 Compensation Report, up to CHF 7.3m,
or 30%, of the 2019 LTIP awardsat grant for GEB members active
in March 2017 was at risk and directly linked to the final
resolution of the French cross-border matter.Following its
resolution and considering the final financial impact, the
Compensation Committee applied a fact-based reduction to the
final value of the award of 10% of the shares at risk.
–
For other selected senior management, the full award vested in
2023.
1
As disclosed in our Compensation Report 2019, LTIPawards for the 2019 performance year were awardedat a value of 62.25% of maximum, whichreflected our best estimate of the fair value of theaward. The
maximum number of shares was determined by dividing the awardedamount by the fair value of the award at the date ofgrant, divided by CHF 12.919 or USD 13.141, the average closing priceof UBS shares over
the last ten trading days leading up to and including the grant date.
Long-Term Incentive Plan (LTIP)2020 (performance period 2021–2023)
Performance metrics
Performance achievement
1
Vesting
Return on common equity tier 1 capital
(RoCET1) and relative Total Shareholder
Return (rTSR)
The overall achievement level is 92.55%
of the maximum opportunity (of up to
100%), based on outcomes for rTSR
(weighted 50%) and RoCET1 (weighted
50%).
–
For GEB, the first, second and third installments vested in 2024,
2025 and 2026, respectively.
–
For other selected senior management, the full award vested in
2024.
1
As disclosed in our Compensation Report 2020, LTIPawards for the 2020 performance year were awardedat a value of 65.90% of maximum, whichreflected our best estimate of the fair value of theaward. The
maximum number of shares was determinedby dividing the awarded amountby the fair value of the awardat the date of grant, divided byCHF 13.81 or USD 15.411, the averageclosing price of UBS shares over
the last ten trading days leading up to and including the grant date.
Long-Term Incentive Plan (LTIP)2021 (performance period 2022–2024)
Performance metrics
Performance achievement
1
Vesting
Return on common equity tier 1 capital
(RoCET1) and relative Total Shareholder
Return (rTSR)
The overall achievement level is 93.33%
of the maximum opportunity (of up to
100%), based on outcomes for rTSR
(weighted 50%) and RoCET1 (weighted
50%).
–
For GEB, the first installments vested in 2025 and the second will
vest in 2026. The remaining third tranche will vest in 2027
accordingly.
–
For other selected senior management, the full award vested in
2025.
1
As disclosed in our Compensation Report2021, LTIP awardsfor the 2021 performance yearwere awarded at a valueof 67.7% of maximum, whichreflected our best estimate ofthe fair value of theaward. The
maximum number of shares was determined by dividing the awarded amountby the fair value of the award at the date of grant,divided by CHF 19.194 or USD 20.700, the average closing price of UBSshares over
the last ten trading days leading up to and including the grant date.
Long-Term Incentive Plan (LTIP)2022 (performance period 2023–2025)
Performance metrics
Performance achievement
1
Vesting
Return on common equity tier 1 capital
(RoCET1) and relative Total Shareholder
Return (rTSR)
The overall achievement level is 71.56%
of the maximum opportunity (of up to
100%), based on outcomes for rTSR
(weighted 50%) and RoCET1 (weighted
50%).
–
For GEB, the first installment will vest in 2026 and the remaining
tranches will vest in 2027 and 2028 accordingly.
–
For other selected senior management, the full award vests in
2026.
1
As disclosed in our Compensation Report 2022, LTIPawards for the 2022 performance year were awardedat a value of 71.45% of maximum, whichreflected our best estimate of the fair value of theaward. The
maximum number of shares was determined by dividing the awarded amountby the fair value of the award at the date of grant,divided by CHF 20.092 or USD 21.790, the average closing price of UBSshares over
the last ten trading days leading up to and including the grant date.
›
Refer to “Performance achievement of the 2022 LTIPgranted in 2023” in the “Group compensation” section of this report for more
information
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Corporate governance and compensation | Compensation229
ThebelowEOPandDCCPthresholdshavebeensettosupportthesustainabilityoftheorganizationandrepresent
minimum performance levels to retain the awards.
Equity Ownership Plan (EOP) 2020 / 2021, EOP 2021 / 2022
Thresholds
Threshold achievement
1
Vesting
EOP 2020 / 2021 and EOP 2021 / 2022:
Return on common equity tier 1 capital
(RoCET1)
The Group thresholds have been satisfied.
The following installments vest in full:
–
for EOP 2020 / 2021, the third and final installment for employees
with extended vesting periods (e.g. as required by applicable
regulators) covered under the plan; and
–
for EOP 2021 / 2022, the second installment for employees with
extended vesting periods (e.g. as required by applicable
regulators) covered under the plan.
1
Performance may be adjusted for disclosed items generally not representative of underlying business performance.
Deferred Contingent Capital Plan (DCCP) 2020 / 2021
Thresholds
Threshold achievement
1
Vesting
2
Common equity tier 1 (CET1) capital ratio,
viability event and, additionally for GEB,
Group profit before tax
The thresholds have been satisfied.
–
DCCP 2020 / 2021 vests in full.
1
Performance may be adjusted for disclosed items generally not representative of underlying business performance.
2
Certain regulated employees are subject to extended vesting periods.
Outstanding Credit Suisse Group awards granted in prior years subject to performance conditions
The tablesbelow showthe extentto whichthe performancemetrics andthresholds forawards grantedby theCredit
Suisse Group in prior years have been met and the related impact of the 2025 results.
As a result of the acquisition by UBS Group AGof Credit Suisse Group AG in 2023, many of thefinancial measurements
applicabletolegacyCreditSuisseGroupawardsarenolongeravailableorarenotfullycomparabletoprevious
performance periods, therefore revised metrics have been adopted as disclosed in the Compensation Report 2023.
Performance Share Awards (PSA) 2018/2019, 2019/2020, 2020/2021, 2021/2022
Threshold
Threshold achievement
1
Vesting
2
Negative adjustment if reported UBS Group AG
return on CET1 capital (RoCET1) is negative
The amended threshold has been satisfied.
–
No negative adjustment applied in respect of
PSAs outstanding on 31 December 2025. The
respective installments will vest in 2026.
1
Performance may be adjusted for disclosed items generally not representative of underlying business performance.
2
Certain regulated employees, such as Senior Management Functions (SMFs) and Material Risk
Takers (MRTs),are subject to extended vesting periods.
Transformation Awards sharecomponent 2022/23
Thresholds
Threshold achievement
Vesting
Underlying UBS Group AG RoCET1 of 8%
minimum (FY 2025)
UBS Group AG share price of CHF 85.87 (on
31 December 2025)
The underlying RoCET1 threshold has been
satisfied; however, the share price threshold has
not been achieved.
–
The Transformation Awards arefully forfeited.
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Corporate governance and compensation | Compensation230
Audited |
Share ownership / entitlements of GEB members
1
Name, function
on
31 December
Number of
unvested
shares / at
risk
2
Number of
vested shares
Total number
of shares
Potentially
conferred
voting
rights in %
Sergio P. Ermotti, Group Chief Executive Officer
2025
675,066
2,255,862
2,930,928
0.222
2024
1,023,411
1,732,094
2,755,505
0.215
George Athanasopoulos, Co-President Investment Bank
2025
317,190
359,865
677,055
0.051
2024
468,793
203,756
672,549
0.053
Michelle Bereaux, Group Integration Officer
2025
149,504
54,483
203,987
0.015
2024
164,063
12,824
176,887
0.014
Mike Dargan, Group Chief Operations and Technology Officer
2025
497,801
63
497,864
0.038
2024
465,358
26,815
492,173
0.038
Aleksandar Ivanovic, President Asset Management
2025
188,402
0
188,402
0.014
2024
143,704
65,697
209,401
0.016
Robert Karofsky, President UBS Americas and Co-President Global Wealth Management
2025
765,382
492,663
1,258,045
0.095
2024
1,139,539
424,520
1,564,059
0.122
Sabine Keller-Busse, President Personal & Corporate Bankingand President UBS Switzerland
2025
708,724
602,859
1,311,583
0.099
2024
982,710
425,317
1,408,027
0.110
Iqbal Khan, Co-President Global Wealth Management and President UBS Asia Pacific
2025
1,043,565
253,268
1,296,833
0.098
2024
1,140,180
179,433
1,319,613
0.103
Barbara Levi, Group General Counsel
2025
503,567
234,490
738,057
0.056
2024
539,142
99,876
639,018
0.050
Beatriz Martin Jimenez, Head Non-core and Legacy and President UBS EMEA
2025
373,335
149,455
522,790
0.040
2024
426,691
180,706
607,397
0.047
Markus Ronner, Group Chief Compliance and Governance Officer
2025
518,931
202,968
721,899
0.055
2024
613,246
4,436
617,682
0.048
Stefan Seiler, Head Group Human Resources & Corporate Services
2025
232,913
177,155
410,068
0.031
2024
299,428
91,393
390,821
0.031
Todd Tuckner,Group Chief Financial Officer
2025
255,864
259,379
515,243
0.039
2024
279,344
279,647
558,991
0.044
Marco Valla, Co-President Investment Bank
2025
325,291
50,623
375,914
0.028
2024
244,051
13,847
257,898
0.020
Damian Vogel, Group Chief Risk Officer
2025
115,331
50,886
166,217
0.013
2024
74,256
23,919
98,175
0.008
Total
2025
6,670,866
5,144,019
11,814,885
0.894
2024
8,003,916
3,764,280
11,768,196
0.920
1 Includes all vested and unvestedshares of GEB members, including those held byrelated parties. No options were held in 2025 and2024 by any GEB member orany of its related parties. Refer to “Note26 Employee
benefits: variable compensation” in the “Consolidated financial statements”section of this report for more information.2 Includes shares granted under variable compensationplans with forfeiture provisions. For
the 2019/20, 2020/21, 2021/22 and2022/23 LTIPawards, the valuesreflect the final value.For all other LTIPawards, the valuesreflect the fair value awardedat grant. The actualnumber of shares vesting inthe
future will be calculated under the terms of the plans. Refer to the “Group compensation” section of this report formore information about the plans.
Audited |
Total of all vested and unvested sharesof GEB members
1,2
Total
of which: vested
of which: vesting
2026
2027
2028
2029
2030
2031
Shares on 31 December 2025
11,814,885
5,144,019
1,907,359
1,569,151
1,449,822
1,085,996
613,413
45,126
2025
2026
2027
2028
2029
2030
Shares on 31 December 2024
11,768,196
3,764,280
3,154,169
1,873,398
1,536,132
872,036
514,292
53,887
1 Includes shares held by related parties.2 Includes shares granted under variable compensation plans with forfeiture provisions. The actual number of shares vesting in the future will be calculated under the terms
of the plans. Refer to the “Group compensation” section of this report for more information.
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Corporate governance and compensation | Compensation231
Audited |
Number of shares of BoD members
1
Name, function
on 31 December
Number of shares held
Voting rights in %
Colm Kelleher,Chairman
2025
642,893
0.049
2024
552,218
0.043
Lukas Gähwiler, Vice Chairman
2025
408,570
0.031
2024
385,609
0.030
Jeremy Anderson, Senior Independent Director
2025
181,449
0.014
2024
167,436
0.013
William C. Dudley, member
2025
83,654
0.006
2024
74,587
0.006
Patrick Firmenich, member
2025
84,442
0.006
2024
71,010
0.006
Fred Hu, member
2025
136,576
0.010
2024
124,370
0.010
Mark Hughes, member
2025
91,779
0.007
2024
80,239
0.006
Gail Kelly, member
2025
6,594
0.000
2024
0
0.000
Renata Jungo Brüngger, member
2025
0
0.000
2024
–
Julie G. Richardson, member
2025
157,486
0.012
2024
157,946
0.012
Lila Tretikov,member
2025
0
0.000
2024
–
Jeanette Wong, member
2025
148,419
0.011
2024
133,761
0.010
Total
2025
1,941,862
0.147
2024
1,747,176
0.137
1 Includes blocked and unblocked shares held by BoD members,including those held by related parties. No options were granted in 2025 and 2024.
Audited |
Total of all blocked andunblocked shares of BoD members
1
Total
of which:
unblocked
of which: blocked until
2026
2027
2028
2029
Shares on 31 December 2025
1,941,862
1,052,630
153,472
286,945
240,361
208,454
2025
2026
2027
2028
Shares on 31 December 2024
1,747,176
828,950
237,448
153,472
286,945
240,361
1 Includes shares held by related parties.
Audited |
Loans granted to GEB members
Pursuant to article38 of theArticles of Associationof UBS GroupAG (the AoA),GEB members maybe granted loans.
Suchloansaremadeintheordinarycourseofbusinessonsubstantiallythesametermsasthosegrantedtoother
employees,includinginterestratesandcollateral,andneitherinvolvemorethanthenormalriskofcollectabilitynor
contain any other unfavorable features for the firm. The total amount of such loans must not exceed CHF 20m per GEB
member.
Loans granted to GEB members
CHF, except where indicated
1
USD
(for reference)
Name, function
on 31 December
Loans
2,3,4
Loans
2,3,4
Mike Dargan, Group Chief Operations and Technology Officer (highest loan in 2025)
2025
10,447,500
13,175,980
Mike Dargan, Group Chief Operations and Technology Officer (highest loan in 2024)
2024
10,694,500
Aggregate of all GEB members
2025
46,810,000
59,034,946
2024
43,547,875
1 Swiss franc and US dollar amountsdisclosed represent local currency amounts translatedat the relevant year-endclosing exchange rate.2 All loans granted are secured loans.3 No unused uncommitted credit
facilities in 2025 and 2024.4 No loans have been granted to related parties of the GEB members at conditions not customary in the market.
Advisory vote
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Corporate governance and compensation | Compensation232
Audited |
Loans granted to BoD members
Pursuant to article33 of theAoA, loansto independent BoDmembers aremade in theordinary courseof business at
general marketconditions. TheVice Chairman,given thefull-time nature ofhis role, maybe granted loansin theordinary
course of business on substantiallythe same terms as thosegranted to employees, including interestrates and collateral.
Such loans neither involve more than the normal risk of collectability nor contain any other unfavorable features for the
firm. The total amount of such loans must not exceed CHF 20m per BoD member.
Loans granted to BoD members
CHF, except where indicated
1
USD
(for reference)
on 31 December
Loans
2,3,4
Loans
2,3,4
Aggregate of all BoD members
2025
0
0
2024
2,377,500
1 Swiss franc and US dollar amounts disclosed represent local currency amounts translated at therelevant year-end closing exchange rate.2 All loans granted are secured loans.3 CHF 2,377,500 (USD 2,618,108)
for Claudia Böckstiegel (independent BoD member) in 2024.4 No loans have been granted to related parties of the BoD members at conditions not customary in the market.
Audited |
Compensation paid to former BoD and GEB members
1
The compensation and benefits in the table below relate to payments made to former BoD and GEB members.
Variable compensation paid to GEB members who stepped down during the respective years is included in the GEB
performance award pool (see table “Totalcompensation for GEB members“).
CHF, except where indicated
2,3
USD
(for reference)
2
For the year
Compensation
Benefits
Total
Total
Former BoD members
2025
0
0
0
0
2024
0
0
0
Aggregate of all former GEB members
4
2025
0
68,050
68,050
82,153
2024
0
1,951,200
1,951,200
Aggregate of all former BoD and GEB members
2025
0
68,050
68,050
82,153
2024
0
1,951,200
1,951,200
1 Compensation or remuneration that is related to theformer members’ activity on the BoD or GEBor that is not at market conditions.2 Swiss franc and US dollar amounts disclosed represent localcurrency amounts
translated at the relevant year-end closing exchange rate.3 Includes benefit payments in 2025 for one former GEB members and in 2024 to four former GEB members.4 Excludes the portion related to the legally
required employer’s social security contributions for 2025 and 2024; however,the legally required employees’ social security contributions are included in the amounts shown in the table above, as appropriate.
Advisory vote
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Corporate governance and compensation | Compensation233
GEB and BoD member mandates outside the Group
In line with the Swiss Code of Obligations, we disclosethe mandates of GEB and BoD members outside of theGroup in
the tables below. Further information on background and biographies, including mandates in UBS entities,are available
in the “Corporate governance” section of this report.
Audited |
BoD member mandates outside the Group
Name, function
Company boards /
other activities
Mandates
Colm Kelleher,
Chairman
Other activities and
functions
–
Member of the Board of Directors of the Bretton Woods Committee
–
Member of the Board of the Swiss Finance Council
–
Member of the Board of the International Monetary Conference
–
Member of the Board of the Bank Policy Institute
–
Member of the Board of Americans for Oxford
–
Visiting Professor of Banking and Finance, Loughborough Business School
–
Member of the European Financial Services Round Table
–
Member of the European Banking Group
–
Member of the International Advisory Council of the China Securities Regulatory Commission
–
Member of the Chief Executive’s Advisory Council (Hong Kong)
Lukas Gähwiler, Vice
Chairman
Non-listed
–
Vice Chairman of the Board of Directors of Pilatus Aircraft Ltd
–
Member of the Board of Directors of Ringier AG
Other activities and
functions
–
Member of the Board and Board Committee of economiesuisse
–
Chairman of the Employers Association of Banks in Switzerland
–
Member of the Board of Directors of the Swiss Employers Association
–
Member of the Board of Directors and the Board of Directors Committee of the Swiss Bankers Association
–
Member of the Board of the Swiss Finance Council
–
Member of the Board of Trustees of Avenir Suisse
Jeremy Anderson,
Senior Independent
Director
Listed
–
Member of the Board of Prudential plc (chair of the risk committee)
Non-listed
–
Chairman of Lamb’s Passage Holding Ltd
Other activities and
functions
–
Trustee of the UK’s Productivity Leadership Group
William C. Dudley,
member
Listed
–
Member of the Global Advisory Council of Coinbase
1
Non-listed
–
Member of the Advisory Board of Suade Labs
Other activities and
functions
–
Senior Advisor to the Griswold Center for Economic Policy Studies, Princeton University
–
Member of the Group of Thirty
–
Member of the Council on Foreign Relations
–
Chairman of the Bretton Woods Committee Board of Directors
–
Member of the Board of the Council for Economic Education
Patrick Firmenich,
member
Listed
–
Vice Chairman of the Board of dsm–firmenich (chair of the governance and nomination committee)
Other activities and
functions
–
Member of the Advisory Council of the Swiss Board Institute
Fred Hu, member
Listed
–
Non-executiveChairman ofthe Boardof YumChina Holdings(chair ofthe nominationand governance
committee)
–
Member of the Board of Chubb Limited
1
Non-listed
–
Chairman of Primavera Capital Ltd
Other activities and
functions
–
Trustee of the China Medical Board
–
Member of the Global Board of The Nature Conservancy and Co-Chairman of its Asia Pacific Council
–
Member of the Board of Trustees, the Institute for Advanced Study
Mark Hughes,
member
Other activities and
functions
–
Senior advisor to McKinsey & Company
Renata Jungo
Brüngger, member
Listed
–
Member of the Supervisory Board of Daimler Truck Holding AG
–
Member of the Supervisory Board of Daimler Truck AG
–
Member of the Supervisory Board of Munich Re (chair of remuneration committee)
Other activities and
functions
–
Member of the Board of Trustees of Internationale Bachakademie Stuttgart
–
Member of the Board of Trustees of Gesellschaft der Freundevon Bayreuth e. V.(Friends of Bayreuth)
Gail Kelly, member
Listed
–
MemberoftheBoardofSingtelCommunications(chairoftheexecutiveresourceandcompensation
committee)
Other activities and
functions
–
Member of the Group of Thirty
–
Member of the Board of Directors of the Bretton Woods Committee
–
Member of the Australian American Leadership Dialogue Advisory Board
–
Senior advisor to McKinsey & Company
Julie G. Richardson,
member
Listed
–
Member of the Board of BXP
1
–
Member of the Board of Datadog (chair of the audit committee)
Non-listed
–
Member of the Board of Fivetran
–
Member of the Board of Coalition, Inc.
1
New 2025 mandate compared with 2024.
Advisory vote
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Corporate governance and compensation | Compensation234
Audited |
BoD member mandates outside the Group (continued)
Name, function
Company boards /
other activities
Mandates
Lila Tretikov,member
Listed
–
Member of the Board of Volvo Car Corporation
–
Member of the Board of Xylem Inc.
–
Member of the Advisory Board of Capgemini SE (changed to Board mandate in January 2026)
Other activities and
functions
–
Member of the Board of Zendesk Inc.
–
Member of the Board of Backflip AI, Inc.
–
Member of the Board of Cusp AI Limited
–
Member of the Board of Horizon 3 AI, Inc.
Jeanette Wong,
member
Listed
–
Member of the Board of Prudential plc (chair of the audit committee)
–
Member of the Board of Singapore Airlines Limited(chair of the board compensation and industrial relations
committee)
Non-listed
–
Member of the Board of GIC Pte Ltd
–
Member of the Board of PSA International
Other activities and
functions
–
Chairman of the CareShield Life Council
–
Member of the Securities Industry Council
–
Member of the Board of Trustees of the National University of Singapore
›
Refer to “Board of Directors” in the “Corporate governance” section of this report for moreinformation
Advisory vote
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Corporate governance and compensation | Compensation235
Audited |
GEB member mandates outside the Group
Name, function
Company boards /
other activities
Mandates
Sergio P.Ermotti, Group Chief
Executive Officer
Listed
–
Member of the Board of Ermenegildo Zegna N.V.(Lead Non-Executive Director)
Non-listed
–
Member of the Board of Società Editrice del Corriere del Ticino SA
Other activities and
functions
–
Member of the Board of Innosuisse, the Swiss Innovation Agency
–
Member of Institut International d’Etudes Bancaires
–
Member ofthe WEFInternational BusinessCouncil andGovernor ofthe FinancialServices /
Banking Community
–
Member of the MAS International Advisory Panel
–
Member of the Board of the Institute of International Finance
–
Member of the Board of the Swiss-American Chamber of Commerce
George Athanasopoulos, Co-
President Investment Bank
None
Michelle Bereaux, Group
Integration Officer until December
2025, Group Chief Compliance
and Operational Risk Control
Officer since January 2026
None
Mike Dargan, Group Chief
Operations and Technology
Officer (stepped down on
31
December
2025)
Other activities and
functions
–
Member of the Advisory Board of SCION Association
Aleksandar Ivanovic, President
Asset Management
None
Robert Karofsky, Co-President
Global Wealth Management and
President UBS Americas
Other activities and
functions
–
Member of the Board of the American Swiss Foundation
1
Sabine Keller-Busse, President
Personal & Corporate Banking and
President UBS Switzerland
Listed
–
Member of the Board of Zurich Insurance Group
Other activities and
functions
–
Chairwoman of the Foundation Board of the Pension Fund of UBS
–
Member of the Board and Board Committee of Zurich Chamber of Commerce
–
Member of theFoundation Council ofthe UBS Centerfor Economics inSociety,University of
Zurich
–
Member of theBoard of Trustees ofthe Swiss EntrepreneursFoundation (stepped downJanuary
2026)
–
Member of the Board of Trustees of the HSG Foundation (University of St. Gallen)
–
Member of the Foundation Board of Deep TechNation Switzerland
–
Member of the Board of the University Hospital Zurich Foundation
Iqbal Khan, Co-President Global
Wealth Management and
President UBS Asia Pacific
None
Barbara Levi, Group General
Counsel
Other activities and
functions
–
Member of the Board of Directors of the European General Counsel Association
–
Member of the Legal Committee of the Swiss-American Chamber of Commerce
Beatriz Martin Jimenez, Group
Chief Operating Officer (since
January 2026), Head Non-core
and Legacy and President UBS
EMEA
None
Markus Ronner, Group Chief
Compliance and Governance
Officer (stepped down on
31
December
2025)
None
Stefan Seiler, Head Group Human
Resources and Corporate Services
Other activities and
functions
–
Member of the Foundation Board of the Pension Fund of UBS
–
Member of theFoundation Council ofthe UBS Centerfor Economics inSociety,University of
Zurich
–
Chairman of the Foundation Board of the Swiss Finance Institute
–
Member of the IMD Foundation Board
–
AdjunctProfessorforLeadershipandStrategicHumanResourceManagement,Nanyang
Technological University (NTU), Singapore
Todd Tuckner,Group Chief
Financial Officer
Other activities and
functions
–
Member of theFinancial Services ChapterBoard of theSwiss-American Chamber ofCommerce
1
Marco Valla, Co-President
Investment Bank
Other activities and
functions
–
Member of the Board of Directors of Good Shepherd Services
–
Member of the Board of the Mount Sinai Department of Urology
Damian Vogel, Group Chief Risk
Officer
Other activities and
functions
–
Member of Foundation Board of the International Financial Risk Institute
1
New 2025 mandate compared with 2024.
›
Refer to “Group Executive Board” in the “Corporate governance” section of this reportfor more information
Advisory vote
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Corporate governance and compensation | Compensation236
Provisions of the Articles of Association related to compensation
Swiss say-on-payprovisions giveshareholdersof companieslisted inSwitzerland significantinfluence overboardand
management compensation. At UBS,this is achieved by means ofan annual binding say-on-pay votein accordance with
the following provisions of the AoA.
Say on pay
In line with article 43 of the AoA, the General Meeting approves proposals from the BoD in relation to:
a) the maximum aggregate amount of compensation of the BoD for the period until the next AGM;
b) the maximum aggregate amount of fixed compensation of the GEB for the following financial year; and
c) the aggregate amount of variable compensation of the GEB for the preceding financial year.
TheBoDmaysubmitforapprovalbytheGeneralMeetingdeviatingoradditionalproposalsrelatingtothesameor
different periods. If the General Meeting doesnot approve a proposal from the BoD, the BoDwill determine, taking into
account all relevant factors, the respective (maximum) aggregate amount or (maximum) partial amounts and submit the
amount(s) so determined for approval by the General Meeting. UBS Group AG or companiescontrolled by it may pay or
grant compensation prior to approval by the General Meeting, subject to subsequent approval.
Principles of compensation
In line witharticles 45 and46 ofthe AoA, compensationof the membersof the BoDincludes base remunerationand
mayincludeothercompensationelementsandbenefits.CompensationofthemembersoftheBoDisintendedto
recognize the responsibility and governance nature of theirrole, to attract and retain qualified individuals, andto ensure
alignment with shareholders’ interests.
CompensationofthemembersoftheGEBincludesfixedandvariablecompensationelements.Fixedcompensation
includes thebase salaryand mayinclude othercompensation elementsand benefits.Variable compensationelements
are governed byfinancial and non-financialperformance measuresthat take intoaccount theperformance of UBSGroup
AG and/ orparts thereof,targets inrelation tothe market,other companiesor comparablebenchmarks, short-and
long-termstrategicobjectives,and / orindividualtargets.TheBoDor,wheredelegatedtoit,theCompensation
Committee, determines the respective performance measures, the overalland individual performance targets, and their
achievement.TheBoDor,wheredelegatedtoit,theCompensationCommittee,aimstoensurealignmentwith
sustainableperformanceandappropriaterisk-takingthroughadequatedeferrals,forfeitureconditions,capson
compensation, harmfulacts provisionsand similarmeans withregard toparts ofor allof thecompensation. Partsof
variable compensation are subject to a multi-year vesting period.
Additional amount for GEB members appointed after the vote on the aggregate amount of compensation by the AGM
In linewith article46 ofthe AoAof UBSGroup AG,if themaximum aggregateamount ofcompensation alreadyapproved
by theGeneral Meetingis notsufficient toalso coverthe compensationof aperson thatbecomes amember ofor is
being promotedwithin theGEB afterthe GeneralMeeting hasapproved thecompensation, UBSGroup AG,or companies
controlled by it, is authorizedto pay or grant eachsuch GEB member asupplementary amount during thecompensation
period(s) alreadyapproved. Theaggregate poolfor suchsupplementary amountsper compensationperiod cannotexceed
40% of the average of total annual compensation paid or granted to the GEB during the previous three years.
›
Refer to
ubs.com/governance
for more information
ubs-20251231p261i0
Advisory vote
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Corporate governance and compensation | Compensation237
Annual Report 2025 |
Financial statements | Consolidated financial statements238
Financial statements
Consolidated financial statements
Table of contents
1
2a
2b
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Annual Report 2025 |
Financial statements | Consolidated financial statements239
Management’s report on internal control over financial reporting
Management’s responsibility for internal control over financial reporting
The Boardof Directorsand managementof UBSGroup AG(UBS)are responsiblefor establishingand maintainingadequate
internalcontrolsover financialreporting.UBS’s internalcontrols overfinancialreportingare designedto providereasonable
assurance regardingthepreparationandfairpresentation ofpublished financialstatements inaccordancewithIFRS
AccountingStandards, asissued bythe InternationalAccountingStandards Board(IASB).
UBS’s internal controls over financial reporting include those policies and procedures that:
–
pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflecttransactionsand
dispositions of assets;
–
provide reasonable assurance that transactions arerecorded as necessary to permit preparationand fair presentation
of financial statements, andthat receipts and expendituresof the company arebeing made only inaccordance with
authorizations of UBS management; and
–
providereasonableassuranceregardingthepreventionortimelydetectionofunauthorizedacquisition,useor
disposition of the company’s assets that could have a material effect on the financial statements.
Because ofits inherentlimitations, internalcontrol overfinancial reportingmay notprevent ordetect misstatements.
Also, projectionsof anyevaluation ofeffectiveness tofuture periodsare subjectto therisk thatcontrols maybecome
inadequatebecauseofchangesinconditions, orthatthedegreeof compliancewiththepolicies orprocedures may
deteriorate.
Management’sassessmentof internalcontrol overfinancialreportingas of 31 December2025
UBS managementhas assessedthe effectivenessof UBS’sinternal controlover financialreporting asof 31 December
2025 based onthe criteria setforth by theCommittee of SponsoringOrganizations of theTreadway Commission (COSO)
in Internal Control – Integrated Framework (2013 Framework). Based on this assessment, management believes that, as
of 31 December 2025, UBS’s internal control over financial reporting was effective.
The effectiveness of UBS’s internal control over financial reporting asof 31 December 2025 has been audited by Ernst &
Young Ltd, UBS’s independent registered public accounting firm, as stated in their Report of the independent registered
publicaccountingfirmoninternalcontroloverfinancialreporting,whichexpressesanunqualifiedopiniononthe
effectiveness of UBS’s internal control over financial reporting as of 31 December 2025.
Remediation of Credit Suisse material weaknesses
In March 2023, priorto the acquisition by UBSGroup AG, the CreditSuisse Group and CreditSuisse AG disclosed that
their management had identified materialweaknesses in internal control over financialreporting as a result of which the
Credit Suisse Group and Credit Suisse AG had concluded that, as of 31 December 2022 and 2021, their internal control
over financialreportingwas noteffective.Following theacquisition andmerger ofCreditSuisse GroupAG intoUBS
GroupAG inJune 2023,CreditSuisse AGconcluded thatas of31 December2023 itsinternal controlover financial
reporting continuedto beineffective. Aspermitted bySEC guidancein theyear ofan acquisition,UBS GroupAG excluded
Credit Suisse AG fromits assessment of internal controlover financial reporting forthe year ended 31 December2023
and concluded that its internal control over financial reporting was effective as of such date.
SincetheCreditSuisseacquisition,UBShasexecutedaremediationprogramtoaddresstheidentifiedmaterial
weaknesses and has implemented additional controls and procedures.
As of31 December2024, managementassessed thatthe changesto internalcontrols madeto addressthe material
weaknessesrelatingtotheclassificationandpresentationoftheconsolidatedstatementofcashflows,aswellas
assessment and communicationof the severityof deficiencies, weredesigned and operatingeffectively. The remaining
materialweaknessrelatedtotheriskassessment ofinternalcontrols. During2024,UBSintegratedtheCredit Suisse
control framework intothe UBS internalcontrol framework andrisk assessment andevaluation processes. Inaddition,
UBS reviewed theprocesses, systems and internalcontrols in connection withthe integration ofCredit Suisse intoUBS
and implemented additional processes and controls to reflect the increase incomplexity of the accounting and financial
controlenvironmentfollowingtheacquisition.Managementassessedthattheriskassessmentprocesswasdesigned
effectively.
However,consideringtheincreasedcomplexityoftheinternalaccountingandcontrolenvironment,theremaining
migration efforts stillunderway and limitedtime to demonstrateoperating effectiveness andsustainability of thepost-
merger integratedcontrol environment, managementconcluded that additionalevidence ofeffective operation ofthe
remediatedcontrolswasrequiredtoconcludethattheriskassessmentprocesseswereoperatingeffectivelyona
sustainable basis. Inlight of theabove, management concludedthat there wasa material weaknessin internal control
over financial reporting at 31 December 2024.
Asof31December2025,UBSmanagementhasassessedtheeffectivenessofUBS’sriskassessmentprocessand
concluded that changes made to the risk assessment processes were designed and operating effectively, with significant
integration and migration steps completed. UBS managementhas therefore concluded that the risk assessmentmaterial
weakness has been remediated.
Annual Report 2025 |
Financial statements | Consolidated financial statements240
Reports of the independent registered public accounting firm included in this report
The accompanying reportsof the independentregistered public accountingfirm on theconsolidated financialstatements
Report ofindependent registered publicaccounting firmon theconsolidated financialstatements and
internal control
overfinancialreporting
Reportofindependentregisteredpublicaccountingfirmoninternalcontroloverfinancial
reporting
of UBSGroup areincluded inour filingon 9 March2026 withthe Securitiesand ExchangeCommission on
Form 20-F pursuant to US reporting obligations.
ubs-20251231p265i0
Annual Report 2025 |
Financial statements | Consolidated financial statements241
ubs-20251231p266i0
Annual Report 2025 |
Financial statements | Consolidated financial statements242
ubs-20251231p267i0
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ubs-20251231p268i0
Annual Report 2025 |
Financial statements | Consolidated financial statements244
ubs-20251231p269i0
Annual Report 2025 |
Financial statements | Consolidated financial statements245
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements246
UBS Group AG consolidated financial statements
Primary financial statements and share information
Audited |
Income statement
For the year ended
USD m
Note
31.12.25
31.12.24
31.12.23
Interest income from financial instruments measured at amortized cost and fair value through
other comprehensive income
3
27,948
35,994
31,743
Interest expense from financial instruments measured at amortized cost
3
(26,544)
(35,947)
(28,216)
Net interest income from financial instruments measured at fair value through profit or loss and other
3
6,343
7,061
3,770
Net interest income
3
7,747
7,108
7,297
Other net income from financial instruments measured at fair value through profit or loss
3
14,011
14,690
11,583
Fee and commission income
4
30,581
28,730
23,766
Fee and commission expense
4
(2,669)
(2,592)
(2,195)
Net fee and commission income
4
27,912
26,138
21,570
Other income
5
(96)
675
384
Total revenues
49,573
48,611
40,834
Negative goodwill
28
27,264
Credit loss expense / (release)
19
524
551
1,037
Personnel expenses
6
27,861
27,318
24,899
General and administrative expenses
7
8,807
10,124
10,156
Depreciation, amortization and impairment of non-financial assets
11, 12
3,529
3,798
3,750
Operating expenses
40,197
41,239
38,806
Operating profit / (loss) before tax
8,853
6,821
28,255
Tax expense / (benefit)
8
1,056
1,675
873
Net profit / (loss)
7,797
5,146
27,382
Net profit / (loss) attributable to non-controlling interests
30
60
16
Net profit / (loss) attributable to shareholders
7,767
5,085
27,366
Earnings per share (USD)
Basic
2.46
1.59
8.68
Diluted
2.36
1.52
8.30
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements247
Statement of comprehensive income
For the year ended
USD m
Note
31.12.25
31.12.24
31.12.23
Comprehensive income attributable to shareholders
Net profit / (loss)
7,767
5,085
27,366
Other comprehensive income that may be reclassified to the income statement
Foreign currency translation
Foreign currency translation movements related to net assets of foreign operations, before tax
1
5,623
(4,726)
3,762
Effective portion of changes in fair value of hedging instruments designated as net investment hedges, before tax
(2,262)
2,957
(2,320)
Foreign currency translation differences on foreign operations reclassified to the income statement
(48)
24
58
Effective portion of changes in fair value of hedging instruments designated as net investment hedges reclassified to
the income statement
25
(33)
(28)
Income tax relating to foreign currency translations, including the effect of net investment hedges
(5)
24
(17)
Subtotal foreign currency translation, net of tax
3,333
2
(1,754)
1,456
Financial assets measured at fair value through other comprehensive income
Net unrealized gains / (losses), before tax
69
1
7
Net realized (gains) / losses reclassified to the income statement from equity
0
0
(3)
Income tax relating to net unrealized gains / (losses)
3
0
0
Subtotal financial assets measured at fair value through other comprehensive income, net of tax
72
1
4
Cash flow hedges of interest rate risk
24
Effective portion of changes in fair value of derivative instruments designated as cash flow hedges, before tax
464
(1,450)
(323)
Net (gains) / losses reclassified to the income statement from equity
1,134
2,000
1,905
Income tax relating to cash flow hedges
(302)
(69)
(308)
Subtotal cash flow hedges, net of tax
1,295
481
1,275
Cost of hedging
24
Cost of hedging, before tax
74
(146)
(19)
Income tax relating to cost of hedging
0
0
0
Subtotal cost of hedging, net of tax
74
(146)
(19)
Total other comprehensive income that may be reclassified to the income statement, net of tax
4,774
(1,417)
2,715
Other comprehensive income that will not be reclassified to the income statement
Defined benefit plans
25
Gains / (losses) on defined benefit plans, before tax
(16)
(307)
110
Income tax relating to defined benefit plans
(28)
45
(70)
Subtotal defined benefit plans, net of tax
(44)
(261)
40
Own credit on financial liabilities designated at fair value
20
Gains / (losses) from own credit on financial liabilities designated at fair value, before tax
(502)
(10)
(1,850)
Income tax relating to own credit on financial liabilities designated at fair value
2
(9)
82
Subtotal own credit on financial liabilities designated at fair value, net of tax
(499)
(19)
(1,769)
Total other comprehensive income that will not be reclassified to the income statement, net of tax
(543)
(280)
(1,729)
Total other comprehensive income
4,231
(1,698)
986
Total comprehensive income attributable to shareholders
11,998
3,388
28,352
Comprehensive income attributable to non-controlling interests
Net profit / (loss)
30
60
16
Total other comprehensive income that will not be reclassified to the income statement, net of tax
17
(47)
5
Total comprehensive income attributable to non-controlling interests
48
13
22
Total comprehensive income
Net profit / (loss)
7,797
5,146
27,382
Other comprehensive income
4,248
(1,744)
991
of which: other comprehensive income that may be reclassified to the income statement
4,774
(1,417)
2,715
of which: other comprehensive income that will not be reclassified to the income statement
(526)
(327)
(1,723)
Total comprehensive income
12,045
3,401
28,374
1 Includes foreign currency translation differences as incurred by UBS’s associates where UBS has recorded its share in these differences. The year ended 31 December 2025 includes aUSD
93
m gain from UBS’s share
of a reclassification of foreign currency translation differences to the income statement as recorded by an associate of UBS.2 Mainly reflects a weakening of the US dollar against the Swiss franc and theeuro.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements248
Balance sheet
USD m
Note
31.12.25
31.12.24
Assets
Cash and balances at central banks
209,858
223,329
Amounts due from banks
9
19,649
18,903
Receivables from securities financing transactions measured at amortized cost
9, 21
83,656
118,301
Cash collateral receivables on derivative instruments
9, 21
41,552
43,959
Loans and advances to customers
9
653,846
579,967
Other financial assets measured at amortized cost
9, 13a
71,897
58,835
Total financial assets measured at amortized cost
1,080,458
1,043,293
Financial assets at fair value held for trading
20
174,699
159,065
of which: assets pledged as collateral that may be sold or repledged by counterparties
44,627
38,532
Derivative financial instruments
10, 20, 21
147,778
185,551
Brokerage receivables
20
35,579
25,858
Financial assets at fair value not held for trading
20
107,575
95,472
Total financial assets measured at fair value through profit or loss
465,631
465,947
Financial assets measured at fair value through other comprehensive income
20
13,868
2,195
Investments in associates
27b
2,332
2,306
Property, equipment and software
11
16,057
15,498
Goodwill and intangible assets
12
6,948
6,887
Deferred tax assets
8
11,525
11,134
Other non-financial assets
13b
20,609
17,766
Total assets
1,617,427
1,565,028
Liabilities
Amounts due to banks
14
24,434
23,347
Payables from securities financing transactions measured at amortized cost
21
16,225
14,833
Cash collateral payables on derivative instruments
21
34,222
35,490
Customer deposits
14
788,367
745,777
Debt issued measured at amortized cost
16
214,706
214,219
Other financial liabilities measured at amortized cost
18a
15,862
21,033
Total financial liabilities measured at amortized cost
1,093,816
1,054,698
Financial liabilities at fair value held for trading
20
53,700
35,247
Derivative financial instruments
10, 20, 21
156,243
180,636
Brokerage payables designated at fair value
20
62,202
49,023
Debt issued designated at fair value
15, 20
113,794
107,909
Other financial liabilities designated at fair value
18b, 20
28,184
28,699
Total financial liabilities measured at fair value through profit or loss
414,123
401,514
Provisions and contingent liabilities
17a
5,035
8,409
Other non-financial liabilities
18c
13,970
14,834
Total liabilities
1,526,944
1,479,454
Equity
Share capital
334
346
Share premium
9,217
12,012
Treasury shares
(7,891)
(6,402)
Retained earnings
82,740
78,035
Other comprehensive income recognized directly in equity, net of tax
5,813
1,088
Equity attributable to shareholders
90,213
85,079
Equity attributable to non-controlling interests
271
494
Total equity
90,484
85,574
Total liabilities and equity
1,617,427
1,565,028
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements249
Statement of changes in equity
USD m
Share
capital
Share
premium
Treasury
shares
Retained
earnings
Balance as of 31 December 2022
304
13,546
(6,874)
50,004
Purchase price consideration for the acquisition of the Credit Suisse Group, before consideration of share-based
compensation awards
619
2,928
Impact of share-based compensation awards from the acquisition of the Credit Suisse Group
162
Impact of the settlement of pre-existing relationships from the acquisition of the Credit Suisse Group
(61)
Acquisition of treasury shares
(3,070)
2
Delivery of treasury shares under share-based compensation plans
(858)
970
Other disposal of treasury shares
10
196
2
Cancellation of treasury shares related to the 2021 share repurchase program
(7)
(554)
1,115
(554)
Share-based compensation expensed in the income statement
1,097
Tax (expense) / benefit
19
Dividends
(839)
3
(839)
3
Equity classified as obligation to purchase own shares
11
Translation effects recognized directly in retained earnings
150
Share of changes in retained earnings of associates and joint ventures
(1)
Share capital currency change
49
(49)
New consolidations / (deconsolidations) and other increases / (decreases)
53
4
Total comprehensive income for the year
25,637
of which: net profit / (loss)
27,366
of which: OCI, net of tax
(1,729)
Balance as of 31 December 2023
346
13,216
(4,796)
74,397
Acquisition of treasury shares
(3,091)
2
Delivery of treasury shares under share-based compensation plans
(1,286)
1,364
Other disposal of treasury shares
4
121
2
Share-based compensation expensed in the income statement
1,104
Tax (expense) / benefit
23
Dividends
(1,128)
3
(1,128)
3
Equity classified as obligation to purchase own shares
(6)
Translation effects recognized directly in retained earnings
(44)
Share of changes in retained earnings of associates and joint ventures
(3)
New consolidations / (deconsolidations) and other increases / (decreases)
86
7
Total comprehensive income for the year
4,805
of which: net profit / (loss)
5,085
of which: OCI, net of tax
(280)
Balance as of 31 December 2024
346
12,012
(6,402)
78,035
Acquisition of treasury shares
(5,436)
2
Delivery of treasury shares under share-based compensation plans
(1,387)
1,569
Other disposal of treasury shares
(1)
100
2
Cancellation of treasury shares related to the 2022 share repurchase program
6
(12)
(1,133)
2,277
(1,133)
Share-based compensation expensed in the income statement
1,107
Tax (expense) / benefit
160
Dividends
(1,433)
3
(1,433)
3
Equity classified as obligation to purchase own shares
(15)
Translation effects recognized directly in retained earnings
50
Share of changes in retained earnings of associates and joint ventures
(2)
New consolidations / (deconsolidations) and other increases / (decreases)
(93)
0
Total comprehensive income for the year
7,223
of which: net profit / (loss)
7,767
of which: OCI, net of tax
(543)
Balance as of 31 December 2025
334
9,217
(7,891)
82,740
1 Excludes other comprehensive income related to defined benefit plans and own credit, which is recorded directly in Retained earnings.2 Includes treasury shares acquired and disposed of by the Investment Bank
in its capacity as a market-maker with regard to UBS Group AG shares and related derivatives, and to hedge certain issued structured debt instruments. These acquisitions and disposals are reported based on the sum
of thenet monthlymovements.3 Reflects thepayment ofan ordinarycash dividendof USD
0.90
(2024: USD
0.70
; 2023:USD
0.55
) perdividend-bearing share.Swiss taxlaw requiresSwitzerland-domiciled
companies with shareslisted on aSwiss stock exchangeto pay nomore than
50
% of dividendsfrom capital contributionreserves, withthe remainder requiredto be paidfrom retained earnings.4 Includes an
increase of USD
45
m related to the issuance of high-trigger loss-absorbing additionaltier 1 capital with an equity conversion feature.5 Includes an increase of USD
285
m in the second quarter of 2023 due to the
acquisition of the Credit Suisse Group.6 Reflects the cancellation of
120,506,008
shares purchased under UBS’s 2022 share repurchase program as approved by shareholders at the 2025 Annual GeneralMeeting.
Swiss tax law requires Switzerland-domiciled companies withshares listed on a Swissstock exchange to reduce capital contribution reservesby at least
50
% of the total capital reductionamount exceeding the nominal
value upon cancellation ofthe shares.7 Mainly reflects effectsfrom UBS’s increasein its stake inUBS Securities China from
67
% to
100
% and UBS’ssale of a
36.01
% stake in anothersubsidiary, Credit Suisse
Securities (China) Limited. Refer to Note 28 for more information.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements250
Other comprehensive
income recognized
directly in equity,
net of tax
1
of which:
foreign currency
translation
of which:
financial assets at
fair value through OCI
of which:
cash flow
hedges
of which:
cost of hedging
Total equity
attributable to
shareholders
Non-controlling
interests
Total equity
(103)
4,128
(4)
(4,234)
7
56,876
342
57,218
3,547
3,547
162
162
(61)
(61)
(3,070)
(3,070)
112
112
206
206
0
0
1,097
1,097
19
19
(1,679)
(4)
(1,683)
11
11
(150)
0
(150)
0
0
0
(1)
(1)
0
0
53
172
5
224
2,715
1,456
4
1,275
(19)
28,352
22
28,374
27,366
16
27,382
2,715
1,456
4
1,275
(19)
986
5
991
2,462
5,584
(1)
(3,109)
(13)
85,624
531
86,156
(3,091)
(3,091)
78
78
124
124
1,104
1,104
23
23
(2,256)
(30)
(2,285)
(6)
(6)
44
0
44
0
0
0
(3)
(3)
93
(20)
73
(1,417)
(1,754)
1
481
(146)
3,388
13
3,401
5,085
60
5,146
(1,417)
(1,754)
1
481
(146)
(1,698)
(47)
(1,744)
1,088
3,830
0
(2,585)
(158)
85,079
494
85,574
(5,436)
(5,436)
182
182
99
99
0
0
1,107
1,107
160
160
(2,866)
(28)
(2,894)
(15)
(15)
(50)
0
(50)
0
0
0
(2)
(2)
(93)
(243)
7
(337)
4,774
3,333
72
1,295
74
11,998
48
12,045
7,767
30
7,797
4,774
3,333
72
1,295
74
4,231
17
4,248
5,813
7,163
73
(1,339)
(84)
90,213
271
90,484
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements251
Share information and earnings per share
Ordinary share capital
As of 31 December 2025, UBS Group AG had
3,341,581,714
issued fully paid registered shares with a nominal value of
USD
0.10
each (31 December 2024:
3,462,087,722
shares) leading to a share capital of USD
334,158,171.40
.
Conditional capital
Asof31 December2025,thefollowingconditionalcapitalwasavailabletotheBoardofDirectors(theBoD)of
UBS Group AG.
–
ConditionalcapitalintheamountofUSD
38,000,000
fortheissuanceofamaximumof
380,000,000
fullypaid
registered shares with a nominal valueof USD
0.10
each, to be issued through thevoluntary or mandatory exercise of
conversion rights and / or warrantsgranted in connection with the issuanceof bonds or similar financial instruments
byUBSGroupAGoranothermemberoftheGrouponnational orinternationalcapitalmarkets. Thisconditional
capital allowance was approved at the Extraordinary General Meeting (the EGM) held on 26 November 2014, having
originally been approvedat theAnnual GeneralMeeting (the AGM)of UBSAG on14 April 2010.The BoDhas not
made use of such allowance.
–
ConditionalcapitalintheamountofUSD
12,170,583
fortheissuanceofamaximumof
121,705,830
fullypaid
registered shares with anominal value of USD
0.10
each, to beissued upon exercise ofemployee options and stock
appreciation rights issued to employeesand members of the managementand of the BoD ofUBS Group AG and its
subsidiaries; however,there wereno employeeoptions orstock appreciationrights outstandingas of31 December
2025. This conditional capital allowance was approved by the shareholders at the same EGM in 2014.
Conversion capital
As of 31 December 2025, UBS Group AG had conversion capital inthe amount of USD
70,000,000
, for the issuance of
a maximumof
700,000,000
fully paidregistered shareswith anominal valueof USD
0.10
each. Theissuance offully
paid registeredshares onlyoccurs throughthe mandatoryconversion ofclaims arisingupon theoccurrence ofone or
more triggerevents under financialmarket instruments withcontingent conversion featuresissued by UBSGroup AG.
The creation of this conversion capital was approved at the AGM held on 24 April 2024.
Capital band and reserve capital
As of 31 December 2025, UBS Group AG had not introduced any capital band or any reserve capital.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements252
Share repurchase programs
In March 2022,UBS commenced atwo-year share repurchaseprogram of upto USD
6
bn, which concludedon 28 March
2024. Under thisprogram, UBS repurchased
121
m shares fora total acquisitioncost of USD
2,277
m (CHF
2,138
m). A
total of
120,506,008
shares repurchased under this program were canceled by means of a capital reduction in 2025, as
approved by shareholders at the 2025 AGM.
On 3 April 2024,UBS launched a2024 share repurchase program,which concluded on23 May 2025. Shares acquired
under this program totaled
64
m as of 31 December 2025 for a total acquisition cost of USD
2,000
m (CHF
1,739
m).
On1 July2025,UBSlauncheda2025sharerepurchaseprogram,whichconcludedon20 November2025.Shares
acquiredunderthisprogramtotaled
53
masof31 December2025foratotalacquisitioncostofUSD
2,000
m
(CHF
1,602
m).
Shares outstanding and earnings per share
As of or for the year ended
31.12.25
31.12.24
31.12.23
Shares outstanding
Shares issued
Balance at the beginning of the year
3,462,087,722
3,462,087,722
3,524,635,722
Shares canceled
(120,506,008)
1
(62,548,000)
2
Balance at the end of the year
3,341,581,714
3,462,087,722
3,462,087,722
Treasury shares
Balance at the beginning of the year
287,262,471
253,233,437
416,909,010
Acquisitions
149,978,076
102,499,468
138,791,939
Deliveries under share-based compensation plans and disposals
(66,852,016)
(68,470,434)
(64,270,031)
Cancellation of second trading line treasury shares
(120,506,008)
1
(62,548,000)
2
Shares transferred to Credit Suisse Group shareholders as consideration for the acquisition of
the Credit Suisse Group
(175,649,481)
Balance at the end of the year
249,882,523
287,262,471
253,233,437
Shares outstanding
3,091,699,191
3,174,825,251
3,208,854,285
Basic and diluted earnings (USD m)
Net profit / (loss) attributable to shareholders for basic EPS
7,767
5,085
27,366
Less: (profit) / loss on own equity derivative contracts
0
0
0
Net profit / (loss) attributable to shareholders for diluted EPS
7,767
5,085
27,366
Weighted average shares outstanding
Weighted average shares outstanding for basic EPS
3
3,151,644,447
3,198,481,827
3,152,579,449
Effect of dilutive potential shares resulting from notional employee shares, in-the-money options and warrants
outstanding
4
138,600,855
152,630,143
143,416,753
Weighted average shares outstanding for diluted EPS
3,290,245,302
3,351,111,970
3,295,996,202
Earnings per share (USD)
Basic
2.46
1.59
8.68
Diluted
2.36
1.52
8.30
Potentially dilutive instruments
5
Employee share-based compensation awards
20,171,877
11,003,130
2,807,589
Other equity derivative contracts
3,799,522
3,121,746
2,831,228
Total
23,971,399
14,124,877
5,638,817
1 Reflects the cancellationof shares purchasedunder UBS’s2022 share repurchaseprogram as approvedby shareholders atthe 2025 AnnualGeneral Meeting (theAGM).2 Reflects the cancellationof shares
purchased under UBS’s 2021share repurchase program as approved byshareholders at the 2023 AGM.3 The weighted average shares outstandingfor basic EPS are calculated by takingthe number of shares at
the beginning of the period, adjusted by the number of shares acquired or issued during the period, multiplied bya time-weighted factor for the period outstanding. As a result, balances are affected by the timing of
acquisitions and issuances duringthe period.4 The weighted averagenumber of shares fornotional employee awardswith performance conditions reflectsall potentially dilutive sharesthat are expected tovest
under the terms of the awards.5 Reflects potential shares that could dilute basic earnings per share in the future but were not dilutive for the periods presented.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements253
Statement of cash flows
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Cash flow from / (used in) operating activities
Net profit / (loss)
7,797
5,146
27,382
Non-cash items included in net profit and other adjustments
Depreciation, amortization and impairment of non-financial assets
3,529
3,798
3,750
Credit loss expense / (release)
524
551
1,037
Share of net (profit) / loss of associates and joint ventures and impairment related to associates
(77)
(144)
348
Deferred tax expense / (benefit)
(382)
(495)
(694)
Net loss / (gain) from investing activities
(485)
101
(102)
Net loss / (gain) from financing activities
17,866
(5,314)
8,534
Negative goodwill
(27,264)
Other net adjustments
1
(28,570)
22,379
(15,175)
Net change in operating assets and liabilities
1
Amounts due from banks and amounts due to banks
(77)
(2,353)
3,291
Receivables from securities financing transactions measured at amortized cost
40,504
(23,884)
(3,503)
Payables from securities financing transactions measured at amortized cost
800
(552)
(2,014)
Cash collateral on derivative instruments
1,590
242
96
Loans and advances to customers
(16,316)
27,019
27,877
Customer deposits
(12,939)
(15,072)
52,786
Financial assets and liabilities at fair value held for trading and derivative financial instruments
25,196
(13,594)
3,674
Brokerage receivables and payables
2,928
2,179
(5,962)
Financial assets at fair value not held for trading and other financial assets and liabilities
(13,411)
5,327
9,938
Provisions and other non-financial assets and liabilities
(4,577)
(116)
3,920
Income taxes paid, net of refunds
(2,049)
(1,938)
(1,852)
Net cash flow from / (used in) operating activities
2
21,851
3,279
86,068
Cash flow from / (used in) investing activities
Cash and cash equivalents acquired upon the acquisition of the Credit Suisse Group
3
108,406
Purchase of subsidiaries, businesses, associates and intangible assets
(17)
(64)
(4)
Disposal of subsidiaries, businesses, associates and intangible assets
4
653
5
256
121
Purchase of property, equipment and software
(2,362)
(2,008)
(1,685)
Disposal of property, equipment and software
209
108
65
Purchase of financial assets measured at fair value
6
(16,717)
(4,638)
(4,157)
Disposal and redemption of financial assets measured at fair value
6
5,210
4,635
4,187
Purchase of debt securities measured at amortized cost
(21,569)
(5,962)
(14,244)
Disposal and redemption of debt securities measured at amortized cost
11,791
8,384
10,435
Net cash flow from / (used in) investing activities
(22,802)
709
103,124
Statement of cash flows (continued)
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements254
Statement of cash flows (continued)
Table continues below.
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Cash flow from / (used in) financing activities
Repayment of Swiss National Bank funding
7
(42,587)
(56,516)
Net issuance (repayment) of short-term debt measured at amortized cost
1,692
(7,407)
3,169
Net movements in treasury shares and own equity derivative activity
(5,178)
(2,923)
(2,779)
Distributions paid on UBS Group AG shares
(2,866)
(2,256)
(1,679)
Issuance of debt designated at fair value and long-term debt measured at amortized cost
131,476
100,145
109,735
Repayment of debt designated at fair value and long-term debt measured at amortized cost
(154,614)
(129,683)
(109,471)
Inflows from securities financing transactions measured at amortized cost
8
2,319
6,273
Outflows from securities financing transactions measured at amortized cost
8
(2,734)
(4,740)
Net cash flows from other financing activities
(959)
(987)
(721)
Net cash flow from / (used in) financing activities
(30,863)
(84,165)
(58,262)
Total cash flow
Cash and cash equivalents at the beginning of the year
244,090
340,207
195,321
Net cash flow from / (used in) operating, investing and financing activities
(31,815)
(80,176)
130,931
Effects of exchange rate differences on cash and cash equivalents
1
19,098
(15,940)
13,955
Cash and cash equivalents at the end of the year
9,10
231,375
244,090
340,207
of which: cash and balances at central banks
10
209,858
223,329
313,976
of which: amounts due from banks
10
18,292
17,383
19,212
of which: money market paper
10,11
3,224
3,117
7,018
Additional information
Net cash flow from / (used in) operating activities includes:
Interest received in cash
42,589
53,498
44,581
Interest paid in cash
37,749
48,252
35,969
Dividends on equity investments, investment funds and associates received in cash
4
3,204
2,864
2,296
1 Foreign currencytranslation and foreignexchange effects onoperating assets andliabilities and oncash and cashequivalents are presentedwithin the Othernet adjustments line,with the exceptionof foreign
currency hedge effects related toforeign exchange swaps, whichare presented on the lineFinancial assets and liabilities atfair value held for tradingand derivative financial instruments.2 Includes cash receipts
from the sale of loans and loan commitments as of 31 December2025 of USD
780
m (31 December 2024: USD
13,210
m; 31 December 2023: USD
4,289
m) within Non-core and Legacy.3 Refer to Note 28 for more
information.4 Includes dividends received fromassociates.5 Includes cash proceeds ofUSD
767
m, net of outflowsrelated to cash andcash equivalents of USD
276
m, mainly from: thesale of Select Portfolio
Servicing, the US mortgage servicing business ofCredit Suisse; the sale of a stakein Credit Suisse Securities (China) Limited; andthe sale of a wealth management business inIndia. For the comparative periodsthe
cash proceeds receivedwere not materiallydifferent from thecash flows netof cash and cashequivalents disposed fromlosing control ofsubsidiaries and otherbusinesses as reported.Refer to Note28 for more
information.6 Includes cashflows in relationto financial assetsmeasured at fairvalue throughother comprehensiveincome and financialassets measured atfair valuethrough profit orloss.7 Reflects the
repayment of the Emergency Liquidity Assistance facility tothe Swiss National Bank, which was recognized in theAmounts due to banks balance sheet line.8 Reflects cash flows from securities financing transactions
measured at amortized cost that use UBSdebt instruments as the underlying.9 As of 31 December 2025, the balance included USD
19,118
m (31 December 2024: USD
16,584
m; 31 December 2023: USD
11,996
m)
of Cash and cash equivalents not availablefor general use by the Group,which consisted of USD
5,169
m (31 December 2024: USD
4,730
m; 31 December 2023: USD
4,944
m) considered by the Group as restricted
(refer toNote 22for moreinformation) andUSD
13,950
m (31 December2024: USD
11,855
m; 31 December2023: USD
7,052
m) placedat centralbanks tomeet localstatutory minimumreserve requirements.
10 Includes only balances withan original maturity ofthree months or less.11 Money market paperis included in thebalance sheet under Financialassets at fair valuenot held for trading(31 December 2025:
USD
2,779
m; 31 December 2024: USD
2,589
m; 31 December 2023: USD
6,345
m), Other financial assets measured at amortized cost (31 December 2025: USD
437
m; 31 December 2024: USD
402
m; 31 December
2023: USD
415
m) and Financial assets at fair value held for trading (31 December 2025: USD
8
m; 31 December 2024: USD
126
m; 31 December 2023: USD
259
m).
Changes in liabilities arising from financing activities
USD m
Debt issued
measured at
amortized
cost
of which:
short-term
1
of which:
long-term
2
Securities
financing
transactions
measured at
amortized
cost
3
Swiss
National
Bank
funding
4
Debt issued
designated at
fair value
Over-the-
counter
debt
instruments
5
Total
Balance as of 31 December 2023
237,817
38,530
199,288
7,659
44,854
128,289
5,625
424,245
Cash flows
(17,469)
(7,407)
(10,062)
1,533
(42,587)
(19,194)
(281)
(77,998)
Non-cash changes
(6,129)
(613)
(5,516)
(411)
(2,267)
(1,186)
192
(9,801)
of which: foreign currency translation
(6,630)
(613)
(6,017)
(376)
(2,267)
(3,245)
(260)
(12,778)
of which: fair value changes
2,388
(87)
2,301
of which: hedge accounting and other effects
501
501
(35)
(329)
539
676
Balance as of 31 December 2024
214,219
30,509
183,709
8,782
107,909
5,536
336,446
Cash flows
(15,687)
1,692
(17,379)
(416)
(4,482)
(1,277)
(21,861)
Non-cash changes
16,174
1,669
14,506
710
10,367
(981)
26,269
of which: foreign currency translation
13,002
1,669
11,333
719
4,765
121
18,606
of which: fair value changes
5,343
(23)
5,320
of which: hedge accounting and other effects
3,172
3,172
(9)
259
(1,080)
2,342
Balance as of 31 December 2025
214,706
33,870
180,836
9,076
113,794
3,277
340,854
1 Debt with an original contractual maturity of less than one year.2 Debt with an original maturity greater than or equal to one year. The classification of debt issued into short-term and long-term does not consider
any early redemption features.3 Reflects securities financing transactions measured atamortized cost that use UBS debt instruments as the underlying.4 Reflects the Emergency Liquidity Assistance facility from
the Swiss National Bank, which was recognized in the Amounts due to banks balance sheet line.5 Included in the balance sheet line Other financial liabilities designated at fair value.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements256
Note 1Summary of material accounting policies (continued)
a) Material accounting policies
This Note describes thematerial accounting policies applied inthe preparation of theconsolidated financial statements
(the FinancialStatements) ofUBS Group AGand itssubsidiaries (UBSor theGroup). On6 March2026, theFinancial
Statements were authorized for issue by the Board of Directorsof UBS Group AG (the BoD) and are subject toapproval
by the Annual General Meeting of Shareholders on 15 April 2026.
Basis of accounting
TheFinancialStatementshavebeenpreparedinaccordancewithIFRSAccountingStandards,asissuedbythe
International Accounting Standards Board (the IASB), and are presented in US dollars.
Disclosures marked as audited in the “Risk, capital, liquidity and funding, and balance sheet” section of this report form
an integral part of the FinancialStatements. These disclosures relate torequirements under IFRS 7,
Financial Instruments:
Disclosures
, and IAS 1,
Presentation of Financial Statements
, and are not repeated in this section.
Theaccounting policiesdescribed inthisNotehavebeenappliedconsistently inallyearspresented unlessotherwise
stated in Note 1b.
Critical accounting estimates and judgments
Preparation of theseFinancial Statementsunder IFRS AccountingStandards requiresmanagement toapply judgmentand make estimatesand assumptionsthat
affect reportedamounts ofassets, liabilities,income andexpenses,and disclosureof contingentassets andliabilities,and mayinvolve significantuncertaintyat the
time theyare made.Such estimatesand assumptionsare basedon thebest availableinformation.UBS regularlyreassessessuch estimatesand assumptions,which
encompass historical experience,expectations of the future and other pertinent factors, to determine their continuing relevance based on current conditions,
updating them as necessary.Changes in thoseestimates and assumptionsmay have a significanteffect on the FinancialStatements. Furthermore,actual results
may differ significantlyfrom UBS’sestimates,which couldresult in significantlosses to theGroup, beyondwhat was anticipatedor providedfor.
The followingareas containestimation uncertaintyor requirecritical judgmentand havea significanteffect onamounts recognizedin theFinancial
Statements:
–
expected credit loss measurement (refer to item 2g in this Note and to Note 19);
–
fair value measurement (refer to item 2f in this Note and to Note 20);
–
income taxes (refer to item 6 in this Note and to Note 8);
–
provisions and contingent liabilities (refer to item 10 in this Note and to Note 17); and
–
goodwill (refer to item 9 in this Note and to Note 12).
Comparability
The income statement, the statement of comprehensive income, thestatement of changes in equity and thestatement
of cashflows forthe yearsended 31 December2025 and31 December 2024are basedentirely onconsolidated data
following theacquisition ofthe CreditSuisse Group.The incomestatement, thestatement ofcomprehensive income,
the statement of changesin equity and thestatement of cash flowsfor the year ended31 December 2023 include seven
monthsofpost-acquisitionconsolidateddatafollowingtheacquisitionoftheCreditSuisseGroup(Junethrough
December 2023) and five months of UBS Group data only (January through May 2023).
The balance sheetinformation as at31 December 2025 andas at 31 December2024 is basedentirely on post-merger
consolidated information.
›
Refer to Note 28 for more information
1) Consolidation and business combinations
Consolidation
The FinancialStatements includethe financialstatements ofthe parentcompany (UBS GroupAG) andits subsidiaries,
presented as a single economic entity;intercompany transactions and balances have been eliminated.UBS consolidates
all entities thatit controls, includingstructured entities (SEs),which is thecase when ithas: (i) power overthe relevant
activities of the entity; (ii) exposure to the variable returns from involvement with the entity; and (iii) the ability to use its
power to affect its own returns.
Consideration is given to all factsand circumstances to determine whether theGroup has power over another entity,i.e.
the current ability to direct the relevant activities of an entity when decisions about those activities need to be made.
Subsidiaries, includingSEs, areconsolidated fromthe datewhen controlis gainedand deconsolidatedfrom thedate
when control ceases. Control, or the lack thereof, is reassessed if facts and circumstances indicate that there isa change
to one or more elements required to establish that control is present.
›
Refer to Note 27 for more information
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements257
Note 1Summary of material accounting policies
(continued)
Business combinations
Business combinations are accounted for using the acquisition method, as prescribed by IFRS3,
Business Combinations
.
Under this method, any excess of the acquisition-date amounts of the identifiable net assets acquired over the fair value
of the considerationtransferred resultsin negative goodwillthat is recognizedin the incomestatement on thedate of
the acquisition, with transaction costs expensed as incurred.
2) Financial instruments
a. Recognition
UBS generally recognizes financial instruments when it becomes a party to contractual provisions of an instrument.
However,UBS doesnot recognizeassets receivedin transfersthat donotqualify forderecognitionby thetransferor
(symmetrically applying derecognitionprinciples under IFRSAccounting Standardsas describedin item 2ebelow). UBS
applies settlement date accounting to all standard purchases and sales of non-derivative financial instruments.
UBSmayactinafiduciarycapacityforindividuals,trusts,retirementbenefitplansandotherinstitutions,holdingor
placing assets ontheir behalf.Unless these activitiesqualify for recognition,applying the abovecriteria such assetsare
not recognized on UBS’s balance sheet.
Client cash balances associated with derivatives clearing and execution services are not recognized on the balance sheet
if,throughcontractualagreement,regulationorpractice,UBSneitherobtainsbenefitsfromnorcontrolssuchcash
balances.
b. Classification, measurement and presentation
Financial assets
Wherethe contractualterms ofa debtinstrument heldresultin cashflows thataresolely paymentsof principaland
interest (SPPI) on the principalamount outstanding, the debt instrument isclassified as measured at amortized costif it
is held withina business modelthat has anobjective of holdingfinancial assets tocollect contractual cashflows, or at
fair value through other comprehensiveincome (FVOCI) if itis held within a businessmodel that has an objectiveof both
collecting contractual cash flows and selling financial assets.
All otherfinancial assetsare measuredat fairvalue throughprofit orloss (FVTPL),including thoseheld fortrading or
those managed on a fair valuebasis, except for derivatives designatedin certain hedge accounting relationships(refer to
item 2j in this Note for more information).
UBS determinesthe natureof abusiness modelby consideringthe wayportfolios offinancial assetsare managedto
achieve a particular business objective at the time an asset is recognized.
In assessing whether contractual cash flowsare SPPI, the Group considers whether thecontractual terms of the financial
assetcontainatermthatcouldchangethetimingoramountofcontractualcashflowsarisingoverthelifeofthe
instrument by a significantamount. This assessment includescontractual cash flowsthat may vary dueto environmental,
social and governance (ESG) triggers.
Financial liabilities
Financial liabilities measured at amortized cost
Debtissued measuredat amortizedcost
includes contingentcapital instrumentsissued priorto November2023 that
containcontractualprovisionsunderwhichtheprincipalamountswouldbewrittendownuponeitheraspecified
common equitytier 1 (CET1) ratiobreach or adetermination bythe Swiss FinancialMarket Supervisory Authority(FINMA)
that a viability eventhas occurred. Suchcontractual provisions arenot derivatives, as theunderlying is deemed tobe a
non-financial variablespecific toa partyto thecontract. Issuancesafter November2023 includea contractualequity
conversion feature withthe same triggers,i.e. a CET1ratio breach or aFINMA-determined viability event.When the debt
is issued in US dollars,these conversion features areclassified as equity and arepresented in
Share premium
separately
from the amortized cost debt host.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements258
Note 1Summary of material accounting policies
(continued)
When the legal bail-in mechanism for write-down or conversion into equity does not form part of the contractual terms
of issued debt instruments, it does not affect the accounting classification of these instruments as debt or equity.
If a debt were to be written down or convertedinto equity in a future period, it would be partiallyor fully derecognized,
withthedifferencebetweenitscarryingamountandthefairvalueofanyequityissuedrecognizedintheincome
statement, with the conversion features classified as equity always remaining in
Equity attributable to shareholders
.
Financial liabilities measured at fair value through profit or loss
UBS designates certain issued debt instrumentsas financial liabilities at fair value through profit orloss, on the basis that
suchfinancialinstrumentsincludeembeddedderivativesthatarenotcloselyrelatedtothehostcontractandthat
significantly impact the cash flows of the instrument and / orare managed on a fair value basis (refer to the table below
for moreinformation). Financialinstruments includingembedded derivativesarise predominantlyfrom theissuance of
certain structured debt instruments.
Measurement and presentation
On initial recognition, financial instrumentsare measured at fair value adjusted fordirectly attributable transaction costs,
unless the instrument is classified at FVTPL, in which case transaction costs are excluded.
After initial recognition, UBS classifies,measures and presents its financialassets and liabilities in accordance withIFRS 9,
as described in the table below.
Classification, measurement and presentation of financial assets
Financial assets classification
Significant items included
Measurement and presentation
Measured at
amortized cost
This classification includes:
–
cash and balances at central banks;
–
amounts due from banks;
–
receivables from securities financing transactions;
–
cash collateral receivables on derivative
instruments;
–
residential and commercial mortgages;
–
corporate loans;
–
secured loans, including Lombard loans, and
unsecured loans; and
–
debt securities held as high-quality liquid assets
(HQLA).
Measured at amortized cost using the effective interest
method less allowances for expected credit losses (ECL)
(refer to items 2d and 2g in this Note for more information).
The following items are recognized in the income
statement:
–
interest income, which is accounted for in accordance
with item 2d in this Note;
–
ECL and reversals;and
–
foreign exchange (FX) translation gains and losses.
When a financial asset at amortized cost is derecognized,
the gain or loss is recognized in the income statement.
For amounts arising from daily settlement of certain
derivatives, see below in this table.
Measured at
FVOCI
Debt
instruments
measured at
FVOCI
This classification primarily includes debt securities
held as HQLA.
Measured at fair value, with unrealized gains and losses
reported in
Other comprehensive income
, net of applicable
income taxes, until such instruments are derecognized.
Upon derecognition, any accumulated balances in
Other
comprehensive income
are reclassified to the income
statement and reported within
Other income.
The following items, which are determined on the same
basis as for financial assets measured at amortized cost, are
recognized in the income statement:
–
interest income, which is accounted for in accordance
with item 2d in this Note;
–
ECL and reversals; and
–
FX translation gains and losses.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements259
Note 1Summary of material accounting policies (continued)
Classification, measurement and presentation of financial assets
Financial assets classification
Significant items included
Measurement and presentation
Measured at
FVTPL
Held for
trading
Financial assets held for trading include:
–
all derivatives with a positive replacement value, except
those that are designated and effective hedging
instruments; and
–
other financial assets originated or acquired principally
for the purpose of selling or repurchasing in the near
term, or that are part of a portfolio of identified
financial instruments that are managed together and
for which there is evidence of a recent actual pattern of
short-term profit taking. Included in this category are
debt instruments (including those in the form of
securities, money market paper, and traded corporate
and bank loans) and equity instruments.
Measured at fair value, with changes recognized in the
income statement.
Derivative assets (including derivatives that are designated
and effective hedging instruments) are generally
presented as
Derivative financial instruments
, except those
exchange-traded derivatives (ETD) and over-the-counter
(OTC)-cleared derivatives that are legally settled on a daily
basis or economically net settled on a daily basis, which
are presented within
Cash collateral receivables on
derivative instruments.
Changes in fair value, initial transaction costs, dividends
and gains and losses arising on disposal or redemption are
recognized in
Other net income from financial
instruments measured at fair value through profit or loss
,
except interest income on instruments other than
derivatives (refer to item 2d in this Note), interest on
derivatives designated as hedging instruments in hedges
of interest rate risk and forward points on certain short-
and long-duration FX and interest rate contracts acting as
economic hedges, which are reported in
Net interest
income.
Changes in the fair value of derivatives that are
designated and effective hedging instruments are
presented either in the income statement or
Other
comprehensive income
, depending on the type of hedge
relationship (refer to item 2j in this Note for more
information).
Mandatorily
measured at
FVTPL – Other
Financial assets mandatorily measured at FVTPL that are
not held for trading include:
–
certain structured instruments and receivables from
securities financing transactions that are managed on a
fair value basis;
–
loans managed on a fair value basis, including those
hedged with credit derivatives;
–
certain debt securities held as HQLA and managed on a
fair value basis;
–
brokerage receivables, for which contractual cash flows
do not meet the SPPI criterion because the aggregate
balance is accounted for as a single unit of account,
with interest being calculated on the individual
components;
–
equity instruments; and
–
assets held under unit-linked investment contracts.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements260
Note 1Summary of material accounting policies (continued)
Classification, measurement and presentation of financial liabilities
Financial liabilities classification
Significant items included
Measurement and presentation
Measured at amortized cost
This classification includes:
–
demand and time deposits;
–
retail savings / deposits;
–
sweep deposits;
–
payables from securities financing transactions;
–
non-structured debt issued;
–
subordinated debt;
–
commercial paper and certificates of deposit; and
–
cash collateral payables on derivative instruments.
Measured at amortized cost using the effective interest
method.
When a financial liability at amortized cost is
derecognized, the gain or loss is recognized in the income
statement.
Interest income generated from client deposits
derecognized pursuant to certain deposit sweep programs
is presented within
Net interest income from financial
instruments measured at fair value through profit or loss
and other
.
For amounts arising from daily settlement of certain
derivatives, see below in this table.
Measured at
FVTPL
Held for trading
Financial liabilities held for trading include:
–
all derivatives with a negative replacement value
(including certain loan commitments), except those
that are designated and effective hedging
instruments; and
–
obligations to deliver financial instruments, such as
debt and equity instruments, that UBS has sold to
third parties but does not own (short positions).
Measurement and presentation of financial liabilities
classified at FVTPL follow the same principles as for
financial assets classified at FVTPL, except that the amount
of change in the fair value of a financial liability
designated at FVTPL that is attributable to changes in
UBS’s own credit risk is presented in
Other comprehensive
income
directly within
Retained earnings
and is never
reclassified to the income statement.
Derivative liabilities (including derivatives that are
designated and effective hedging instruments) are
generally presented as
Derivative financial instruments
,
except those ETD and OTC-cleared derivatives that are
legally settled on a daily basis or economically net settled
on a daily basis, which are presented within
Cash
collateral payables on derivative instruments.
Designated at
FVTPL
Financial liabilities designated at FVTPL include:
–
issued hybrid debt instruments, primarily equity-
linked, credit-linked and rates-linked bonds or notes;
–
issued debt instruments managed on a fair value
basis;
–
certain payables from securities financing
transactions;
–
amounts due under unit-linked investment contracts,
the cash flows of which are linked to financial assets
measured at FVTPL and eliminate an accounting
mismatch; and
–
brokerage payables, which arise in conjunction with
brokerage receivables and are measured at FVTPL to
achieve measurement consistency.
c. Loan commitments and financial guarantees
Loancommitmentsarearrangementstoprovidecreditunderdefinedtermsandconditions.Irrevocableloan
commitments areclassifiedas:(i) derivativeloancommitmentsmeasuredatfairvaluethroughprofitorloss;(ii) loan
commitments designatedat fairvalue throughprofitor loss;or (iii) loancommitments notmeasuredat fairvalue, in
which case the ECL requirements as set out in item 2g in this Note apply.
Financial guarantee contracts are contracts that require UBS to make specified payments toreimburse the holder for an
incurred loss becausea specified debtorfails to makepayments when duein accordance withthe terms ofa specified
debt instrument. TheECL requirementsas setout initem 2gin thisNote applyto financialguarantees issued thatare
not accounted for at FVTPL.
FinancialguaranteecontractsheldbyUBSforcreditriskmitigationpurposesthatareassessedtobeintegraltothe
guaranteedexposureareaccountedforasacomponentofthatexposurewithcashflowsexpectedfromthecredit
enhancement included in the measurement of the ECL of the respectiveexposure. Rights to reimbursement arising from
financialguaranteesheldthatarenotintegraltothetermsoftheexposuretheycoverarerecognizedwhentheir
realization is considered to be virtually certain.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements261
Note 1Summary of material accounting policies (continued)
d. Interest income and expense
Interest incomefrom financialinstruments measuredat amortizedcost andFVOCI andinterest expensefrom financial
instruments measured at amortized costare recognized in the incomestatement based on theeffective interest method.
Whencalculatingtheeffectiveinterestrate(theEIR)forfinancialinstruments(otherthancredit-impairedfinancial
instruments), UBSestimates future cashflows consideringall contractualterms ofthe instrument,but not expectedcredit
losses, with theEIR applied tothe gross carryingamount of thefinancial asset orthe amortized costof a financialliability.
However,whenafinancialassetbecomescreditimpairedafterinitialrecognition,interestincomeisdeterminedby
applying the EIR tothe amortized costof the instrument, whichrepresents the grosscarrying amount adjusted forany
credit loss allowance.
Upfront fees, including fees on loan commitments notmeasured at fair value where a loan is expectedto be issued, and
direct costs areincluded within theinitial measurement of afinancial instrument measured atamortized cost or FVOCI
and recognized over the expected life of the instrument as part of its EIR.
Interestincome onfinancial assets,excluding derivatives,is includedininterestincome whenpositive andin interest
expensewhennegative.Similarly,interestexpenseonfinancialliabilities,excludingderivatives,isincludedininterest
expense, except when interest rates are negative, in which case it is included in interest income.
›
Refer to item 2b in this Note and Note
3
for more information
e. Derecognition
Financial assets
UBS derecognizes atransferred financial asset,or a portionof a financialasset, if thepurchaser has obtainedsubstantially
all the risks and rewards of theasset or a significant partof the risks and rewards combined witha practical ability to sell
or pledge the asset.
Wherefinancialassetshave beenpledgedascollateral orinsimilararrangements, theyareconsidered tohave been
transferred ifthe counterpartyhas receivedthe contractualrights tothe cashflows ofthe pledgedassets, asmay be
evidenced by,for example,the counterparty’sright tosell orrepledge theassets. Intransfers wherecontrol overthe
financial asset is retained, UBS continues to recognize the assetto the extent of its continuing involvement, determined
by the extent to which it is exposed to changes in the value of the transferred asset following the transfer.
›
Refer to Note
22
for more information
Financial liabilities
UBSderecognizesafinancialliabilitywhenitisextinguished,i.e.whentheobligationspecifiedinthecontractis
discharged, canceled or expires. When an existing financialliability is exchanged for a new one from the samelender on
substantiallydifferentterms,orthetermsofanexistingliabilityaresubstantiallymodified,theoriginalliabilityis
derecognizedandanewliabilityrecognizedwithanydifferenceintherespectivecarryingamountsrecordedinthe
income statement.
Most OTC derivative contracts and ETD futures and optioncontracts cleared through central clearing counterpartiesand
exchanges are considered to be settled ona daily basis, as the paymentor receipt of a variation marginon a daily basis
represents a legal or economic settlement, which results in derecognition of the associated derivatives.
›
Refer to Note 21 for more information
f. Fair value of financial instruments
UBSaccounts forasignificantportionofitsfinancialassetsandliabilitiesatfairvalue.Fairvalueisthepriceonthe
measurement date that would be receivedfor the sale of an asset orpaid to transfer a liability in an orderlytransaction
between market participants in theprincipal market, or in themost advantageous market in theabsence of a principal
market.
›
Refer to Note 20 for more information
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements262
Note 1Summary of material accounting policies (continued)
Critical accounting estimates and judgments
The use of valuationtechniques, modeling assumptions andestimates of unobservable marketinputs in the fairvaluation of financial instrumentsrequires
significantjudgmentandcouldaffecttheamountofgainorlossrecordedforaparticularposition.Valuationtechniquesthatrelymoreheavilyon
unobservable inputsand sophisticatedmodels inherentlyrequirea higherlevel ofjudgment andmay requireadjustmentto reflectfactors thatmarket
participants would consider in estimating fair value, such as close-out costs, which are presented in Note 20d.
UBS’s governance framework overfair value measurement is describedin Note 20b, and UBSprovides a sensitivity analysis ofthe estimated effects arising
from changing significant unobservable inputs in Level 3 financial instruments to reasonably possible alternative assumptions in Note 20f.
›
Refer to Note 20 for more information
g. Allowances and provisions for expected credit losses
ECL arerecognized forfinancial assetsmeasured atamortized cost,financial assetsmeasured atFVOCI, feeand lease
receivables,financialguarantees, andloancommitments notmeasuredatfairvalue.ECLarealsorecognizedonthe
undrawn portion of committed unconditionally revocablecredit lines, which include UBS’scredit card limits andmaster
credit facilities, as UBS is exposedto credit risk because the borrower hasthe ability to draw down fundsbefore UBS can
take credit risk mitigation actions.
Recognition of expected credit losses
ECL are recognized on the following basis.
–
Stage 1 – thoseinstruments for whichno significant increasein credit risk(SICR) has beenobserved (see
Significant
increase in credit risk
below): maximum 12-month ECLare recognized from initialrecognition, reflecting the portion
of lifetime ECL that would result if a default occurs in the 12months after the reporting date, weighted by the risk of
a default occurring.
–
Stage 2–thoseinstrumentsforwhichanSICRisobservedbutwhicharenotcreditimpaired:lifetimeECLare
recognized reflecting lifetime cashshortfalls that would resultfrom all possible defaultevents over the expectedlife of
a financialinstrument, weightedby therisk ofa defaultoccurring. Whenan SICRis nolonger observed,the instrument
will move back to stage 1.
–
Stage 3 – credit-impaired financial instruments (as determined by the occurrence of one or more loss events): lifetime
ECL arealways recognizedby estimatingexpected cashflows basedon achosen recoverystrategy. Credit-impaired
exposures mayinclude positionswith nilallowance, forexample becausethey areexpected tobe fullyrecoverable
through collateral held.
–
Purchased credit-impaired(PCI) –those financialinstruments thatare purchasedat adeep discountor newlyoriginated
with a defaulted counterparty; theyremain a separate category untilderecognition, with changes in lifetimeECL from
initial recognition recognized as a loss allowance.
Consistent withthe requirementsof IFRS 3and IFRS 9,immediately afterthe applicationof theacquisition methodto
the business combination, acquired financial instruments carried at amortized cost or FVOCIthat are not deemed credit
impaired areclassified asstage 1 financialinstruments anda maximum12-month ECLis recognized,resulting ina carrying
amount of the respective financial instruments below their acquisition-date fair value. As and when significant increases
in credit risk subsequently arise, these exposures will move to stage 2, and if assessed to be credit impaired, to stage 3.
All orpart ofa financialasset iswritten offif itis deemeduncollectible orforgiven. Write-offsreduce theprincipal amount
of a claimand are chargedagainst related allowancesfor credit losses.Recoveries, in partor in full,of amounts previously
written off are credited to
Credit loss expense / (release)
.
ECL are recognized inthe income statement in
Credit loss expense /(release)
. A corresponding ECLallowance is reported
as a decrease inthe carrying amount offinancial assets measured at amortizedcost on the balancesheet. For financial
assets thatare measuredat FVOCI,the carryingamount isnot reduced,but anaccumulated amountis recognizedin
Other comprehensiveincome
. Foroff-balance sheet financialinstruments and othercredit lines,provisions forECL are
presented in
Provisions.
Default and credit impairment
UBSapplies asingledefinition ofdefault forcreditriskmanagement purposes,regulatoryreportingand ECL,with a
counterparty classified as defaulted based on quantitative and qualitative criteria.
›
Refer to the “Risk management and control”section of this report for more information
Measurement of expected credit losses
IFRS 9 ECL reflectan unbiased, probability-weighted estimatebased on loss expectationsresulting from defaultevents.
The method usedto calculate ECLapplies the followingprincipal factors: probabilityof default (PD),loss givendefault
(LGD) andexposure atdefault (EAD). Parametersare generallydetermined on anindividual financialasset level.Based
on the materiality of theportfolio, for credit cardexposures and personal account overdraftsin Switzerland, a portfolio
approach is appliedthat derivesan average PDand LGD forthe entire portfolio.PDs and LGDsused in theECL calculation
are point-in-time (PIT)based for key portfoliosand consider both currentconditions and expected cyclicalchanges. For
material portfolios,PDs andLGDs are determinedfor different scenarios,whereas EAD projectionsare treated asscenario
independent.
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Note 1Summary of material accounting policies (continued)
For the purpose ofdetermining the ECL-relevant parameters, UBSleverages its Basel III advanced internalratings-based
(A-IRB) modelsthat are alsoused in determiningexpected loss (EL)and risk-weighted assetsunder the Basel IIIframework
andPillar 2stresslossmodels.AdjustmentshavebeenmadetothesemodelsandIFRS-9-relatedmodelshavebeen
developed that consider the complexity, structure and risk profile of relevantportfolios and take account of the fact that
PDs and LGDsused in theECL calculationare PIT based,as opposedto the correspondingBasel III through-the-cycle(TTC)
parameters. All models that are relevant formeasuring expected credit losses are subject toUBS’s model validation and
oversight processes.
Probability of default:
PD represents the probability of a default over a specified time period. A 12-month PD represents
the probability of default determined for the next 12 months and alifetime PD represents the probability of default over
the remaininglifetime ofthe instrument.PIT PDsare derivedfrom TTCPDs andscenario forecasts.The modelingis region,
industry and clientsegment specific andconsiders both macroeconomicscenario dependencies andclient-idiosyncratic
information.
Exposure at default:
EAD represents anestimate of theexposure to creditrisk at thetime of apotential default occurring,
considering expected repayments, interest payments and accruals, discounted at the EIR. Future drawdowns on facilities
are considered through acredit conversion factor (aCCF) that isreflective of historical drawdownand default patterns
and the characteristics of the respective portfolios.
Loss given default:
LGD representsan estimate ofthe loss at thetime of a potentialdefault occurring,taking into account
expectedfuturecashflowsfromcollateralandothercreditenhancements,orexpectedpayoutsfrombankruptcy
proceedingsfor unsecuredclaims and,where applicable,time to realizationof collateraland the seniorityof claims.LGD is
commonlyexpressedas a percentageof EAD.
Estimation of expected credit losses
Number of scenarios and estimation of scenario weights
Determinationof probability-weightedECL requiresevaluatinga range ofdiverse andrelevant futureeconomicconditions,
especiallywith a viewto modelingthe non-lineareffect of assumptionsabout macroeconomicfactors onthe estimate.
Toaccommodatethisrequirement,UBSusesdifferenteconomicscenariosintheECLcalculation.Eachscenariois
represented bya specificscenario narrative,which isrelevant consideringthe exposureof keyportfolios toeconomic
risks, andfor whicha set ofconsistent macroeconomicvariables isdetermined. Theestimation ofthe appropriateweights
forthesescenariosispredominantlyjudgmentbased.Theassessmentisbasedonaholisticreviewoftheprevailing
economic orpolitical conditions,which mayexhibit differentlevels ofuncertainty. Ittakes intoaccount theimpact of
changes in the nature and severity of the underlying scenario narratives and the projected economic variables.
The determined weights constitute the probabilities thatthe respective set of macroeconomic conditions willoccur and
not that the chosen particular narratives with the related macroeconomic variables will materialize.
Macroeconomic and other factors
The range ofmacroeconomic, marketand other factorsthat is modeledas part ofthe scenario determinationis wide,
and historical information is used tosupport the identification of the keyfactors. As the forecast horizonincreases, the
availability ofinformation decreases,requiring anincrease injudgment. Forcycle-sensitive PDand LGDdetermination
purposes, UBS projects therelevant economic factors fora period of threeyears before reverting, overa specified period,
to cycle-neutral PD and LGD for longer-term projections.
Factors relevantfor ECLcalculation varyby typeof exposure.Regional andclient-segment characteristics aregenerally
taken into account, with a specific focus on Switzerland and the US, considering UBS’s key ECL-relevant portfolios.
For UBS, the followingforward-looking macroeconomic variables representthe most relevant factorsfor ECL calculation:
–
gross domestic product (GDP) growth rates, given their significant effect on borrowers’ performance;
–
unemployment rates, given their significant effect on private clients’ ability to meet contractual obligations;
–
house price indices, given their significant effect on mortgage collateral valuations;
–
interest rates, given their significant effect on counterparties’ abilities to service debt;
–
consumer priceindices, giventheir overallrelevance forcompanies’ performance,private clients’purchasing power
and economic stability;
–
equity indices, given that they are an important factor in UBS’s corporate rating tools; and
–
commodity price indices, given their overall relevance for entities’ performance due to the impact on operating costs.
›
Refer to Note 19 for more information
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Note 1Summary of material accounting policies (continued)
ECL measurement period
The period forwhich lifetime ECLare determinedis based onthe maximum contractualperiod that UBSis exposed to
creditrisk,takingintoaccountcontractualextension,terminationandprepaymentoptions.Forirrevocableloan
commitments andfinancial guaranteecontracts, themeasurement periodrepresents themaximum contractualperiod
for which UBS has an obligation to extend credit.
Additionally, some financial instruments includeboth an on-demand loan and arevocable undrawn commitment, where
the contractualcancellation rightdoes notlimit UBS’sexposure tocredit riskto thecontractual noticeperiod, asthe
borrower has the abilityto draw down fundsbefore UBS can takerisk-mitigating actions. In such casesUBS is required
to estimate the period over which it isexposed to credit risk. This applies to UBS’scredit card limits, which do not have a
defined contractual maturitydate, are callableon demand andwhere the drawnand undrawn componentsare managed
as one exposure. The exposure arising from UBS’s credit card limits is not significant and is managed at a portfolio level,
with credit actionstriggered when balancesare past due.An ECL measurement periodof seven years isapplied for credit
card limits, capped at 12 months for stage 1 balances, as a proxy for the period that UBS is exposed to credit risk.
Customary mastercredit agreementsin theSwiss corporatemarket alsoinclude on-demandloans andrevocable undrawn
commitments.Forsmallercommercialfacilities,arisk-basedmonitoring(RbM)approachisinplacethathighlights
negativetrendsasriskevents,atanindividualfacilitylevel,basedonacombinationofcontinuouslyupdatedrisk
indicators. Therisk eventstrigger additionalcredit reviewsby arisk officer,enabling informedcredit decisionsto be taken.
Larger corporate facilities are not subject to RbM but are reviewed at least annually througha formal credit review. UBS
has assessed these credit risk management practices and considers both the RbM approach and formal credit reviews as
substantivecreditreviewsresultinginare-originationofthegivenfacility.Followingthis,a12-monthmeasurement
period from the reporting dateis used for both typesof facilities as an appropriateproxy of the period overwhich UBS
is exposed tocredit risk, with12 monthsalso used asa look-back periodfor assessingan SICR, alwaysfrom therespective
reporting date.
Significant increase in credit risk
FinancialinstrumentssubjecttoECLaremonitoredonanongoingbasis.Todeterminewhethertherecognitionof
stage 1maximum12-monthECLcontinuestobeappropriate,anassessmentismadeastowhetheranSICRhas
occurred sinceinitial recognitionof the financialinstrument,applying bothquantitativeand qualitativefactors.
Primarily, UBSassesses changesin aninstrument’s riskof defaulton aquantitative basisby comparingthe annualized
forward-looking and scenario-weighted lifetime PD of an instrument determined at two different dates:
–
at the reporting date; and
–
at inception of the instrument.
If, based on UBS’s quantitativemodeling, an increase exceeds aset threshold, an SICR isdeemed to have occurred and
the instrument is transferred to stage 2 with lifetime ECL recognized.
The threshold appliedvaries depending onthe original creditquality of theborrower, with ahigher SICR thresholdset
for thoseinstruments witha lowPD atinception. TheSICR assessmentbased onPD changesis madeat anindividual
financial asset level.A high-level overviewof theSICR trigger, whichis a multipleof theannualized remaining lifetime
PIT PDexpressed inrating downgrades,is providedin the“SICR thresholds”table below.The actualSICR thresholds
applied are defined on a more granular level by interpolating between the values shown in the table.
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Note 1Summary of material accounting policies (continued)
SICR thresholds
Internal rating at origination
of the instrument
Rating downgrades /
SICR trigger
0–3
3
4–8
2
9–13
1
›
Refer to the “Risk management and control” section of this report for moredetails about UBS’s internal rating system
Irrespective ofthe SICRassessment basedon defaultprobabilities, creditrisk isgenerally deemedto havesignificantly
increased for an instrument if contractual payments are more than 30 days past due. For certain less material portfolios,
specifically theSwiss credit cardportfolio, the 30-daypast due criterionis used asthe primary indicatorof an SICR.Where
instruments are transferred tostage 2 due to the30-day past due criterion,a minimum period ofsix months is applied
before a transferback to stage 1can be triggered,where applicable. Forinstruments in Personal& Corporate Banking
and GlobalWealth ManagementRegion Switzerlandthat arebetween 90and 180days pastdue buthave notbeen
reclassified to stage 3, a one-year period is applied before a transfer back to stage 1 can be triggered.
Additionally,basedonindividualcounterparty-specificindicators,externalmarketindicatorsofcreditriskorgeneral
economic conditions, counterparties may be movedto a watch list, which is usedas a secondary qualitative indicator for
anSICR.Exceptionmanagementisfurtherapplied,allowingforindividualandcollectiveadjustmentsonexposures
sharing the same credit risk characteristics to take account of specific situations that are not otherwise fully reflected.
In general, the overallSICR determination process doesnot apply to Lombardloans, securities financing transactionsand
certainotherasset-basedlendingtransactions,becauseoftheriskmanagementpracticesadopted,includingdaily
monitoring processeswith strictmargining. Ifmargin callsare notsatisfied, aposition isclosed outand classifiedas a
stage 3 position. In exceptional cases,an individual adjustment and atransfer into stage 2 may be madeto take account
of specific facts.
Credit riskofficers areresponsible forthe identification ofan SICR,which foraccounting purposesis insome respects
differentfrominternalcreditriskmanagementprocesses.ThisdifferencemainlyarisesbecauseECLaccounting
requirements are instrumentspecific, such thata borrower canhave multiple exposuresallocated to differentstages, and
maturing loans in stage 2 will migrate to stage 1 upon renewal irrespectiveof the actual credit risk at that time. Under a
risk-basedapproach,aholisticcounterpartycreditassessmentandtheabsolutelevelofriskatanygivendatewill
determine what risk-mitigating actions may be warranted.
›
Refer to the “Risk management and control”section of this report for more information
Critical accounting estimates and judgments
The calculation of ECL requires management to apply significant judgment andmake estimates and assumptions that can result in significant changesto the
timing and the amount of ECL recognized.
Determination of a significant increase in credit risk
IFRS 9 doesnot includea definitionof whatconstitutes anSICR, withUBS’s assessmentconsidering qualitativeand quantitativecriteria. AnIFRS 9 ECL
Management Forum has been established to review and challenge the SICR results.
Scenarios, scenario weights and macroeconomic variables
ECL reflect an unbiased and probability-weighted amount, whichUBS determines by evaluating a rangeof possible outcomes. Management selects forward-
lookingscenariosthatincluderelevantmacroeconomicvariablesandmanagement’sassumptionsaroundfutureeconomicconditions.IFRS 9Scenario
Sounding Sessions, in addition tothe IFRS 9 ECL Management Forum,are in place to derive,review and challenge thescenario selection and weights, and
to determine whether any additional post-model adjustments are required that may significantly affect ECL.
ECL measurement period
Lifetime ECL are generally determined based uponthe contractual maturity of the transaction,which significantly affects ECL. For credit card limits andSwiss
callable master credit facilities, judgment is required,as UBS must determine the period over which it is exposed to credit risk. A seven-year period is applied
for credit card limits, capped at 12 months for stage 1 positions, and a 12-month period applied for master credit facilities.
Modeling and post-model adjustments
A numberof complexmodels have beendeveloped ormodified tocalculate ECL,with additionalpost-model adjustmentsrequired thatmay significantly
affect ECL. The models are subject toUBS’s Governance of Models policy and the related controlframework. The post-model adjustments are approved by
the ECL Management Forum and ratified by the Group Chief Financial Officer and Group Chief Risk Officer.
A sensitivity analysis covering key macroeconomic variables, scenario weights and SICR trigger points on ECL measurement is provided in Note 19f.
›
Refer to Note 19 for more information
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Note 1Summary of material accounting policies
(continued)
h. Restructured and modified financial assets
When paymentdefault isexpected, orwheredefault hasalreadyoccurred,UBS maygrant concessionsto borrowers
experiencing financialdifficultiesthatit wouldnot considerin thenormal courseofits business,such aspreferential
interest rates, extension of maturity, modifying the schedule of repayments, debt / equity swap, subordination, etc.
›
Refer to the “Risk management and control” section of this report for moreinformation
Modifications mayresult inan alterationof futurecontractual cashflows andcan occurwithin UBS’snormal risktolerance
or as part of a credit restructuringwhere a counterparty is in financial difficulties. The restructuring ormodification of a
financial assetcould leadto asubstantial changein theterms andconditions, resultingin theoriginal financialasset
being derecognized and a new financial asset being recognized, measured initially at fair value. Where the modification
does not result in derecognition, any difference between the modified contractualcash flows discounted at the original
EIR and theexisting gross carryingamount of thegiven financial assetis recognized inthe income statement asof the
date of modification.
i. Offsetting
UBS presents recognized financial assets and liabilities net on its balance sheet only if (i) it has a legally enforceable right
to set offthe recognized amountsand (ii) it intendseither to settleon a netbasis or torealize theasset and settlethe
liability simultaneously. Netted positions include, for example, certain derivatives and repurchase and reverse repurchase
transactions with various counterparties, exchanges and clearing houses.
InassessingwhetherUBSintendstoeithersettleonanetbasis,ortorealizetheassetandsettletheliability
simultaneously, emphasis is placed on the effectivenessof operational settlement mechanics in eliminatingsubstantially
all credit and liquidity exposure between the counterparties. Thiscondition precludes offsetting on the balance sheet for
substantial amountsofUBS’s financialassetsandliabilities, eventhoughtheymaybesubject toenforceablenetting
arrangements.Securitiesfinancingtransactionsarepresentednetonlytotheextentthatthesettlementmechanism
eliminates,orresultsininsignificant,creditandliquidityrisk,andprocessesthereceivablesandpayablesinasingle
settlement process or cycle.
›
Refer to Note 21
for more information
j. Hedge accounting
TheGroupapplieshedgeaccountingrequirementsofIFRS 9wherethecriteriafordocumentationandhedge
effectiveness aremet. Ifa hedgerelationship nolonger meetsthe criteriafor hedgeaccounting, hedgeaccounting is
discontinued. Voluntary discontinuation of hedge accounting is not permitted under IFRS 9.
Fair value hedges of interest rate risk related to debt instruments and loan assets
The fairvalue change ofthe hedgeditem attributable toa hedgedrisk isrecognized asan adjustment tothe carrying
amountofahedgeditemmeasuredatamortizedcostandalreadyreflectedinthemeasurementofahedgeditem
measured at FVOCI,with such changesrecognized in theincome statement (asopposed to
Other comprehensive income
for a hedged item measured at FVOCI) along with the change in the fair value of the hedging instrument.
Fair value hedges of FX risk related to debt instruments
The fair value change of the hedged item attributable to the hedged risk is reflected in the measurement of the hedged
item andrecognized inthe incomestatement alongwith thechange inthe fairvalue ofthe hedginginstrument. The
foreign currency basis spreadof cross-currency swaps designatedas hedging derivativesis excluded fromthe designation
and accountedfor asa costof hedgingwith amountsdeferredin
Other comprehensiveincome
within
Equity
. These
amounts are released to the income statement over the term of the hedged item.
Discontinuation of fair value hedges
When fair value hedges are discontinued for reasons other than derecognition of the hedgeditem, the effective interest
rate of the hedged itemis adjusted to amortize thefair value of the hedgerisk at the point ofdiscontinuation through
the income statement over the remaining life of thehedged item. If the hedged item is derecognized, thederecognition
gain or loss includes the impact ofany fair value hedge adjustments. The deferredcost of hedging amount is reclassified
from
Othercomprehensiveincome
within
Equity
totheincomestatementregardlessofthehedgeditembeing
derecognized.
Cash flow hedges of forecast transactions
Fair value gainsor losses associatedwith the effectiveportion of derivativesdesignated as cashflow hedges forcash flow
repricingrisk arerecognized initiallyin
Other comprehensiveincome
within
Equity
and reclassifiedto
Interest income
from financial instrumentsmeasured at amortizedcost and fairvalue through othercomprehensive income
or
Interest
expense fromfinancialinstruments measuredatamortized cost
in theperiodswhen thehedged forecastcashflows
affect profitor loss, includingdiscontinued hedges forwhich forecast cashflows are expectedto occur.If the forecast
transactions areno longerexpected tooccur,the deferredgains orlosses areimmediately reclassifiedto theincome
statement.
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Note 1Summary of material accounting policies
(continued)
Hedges of net investments in foreign operations
Gains or losseson the hedginginstrument relating tothe effective portionof a hedgeare recognizeddirectly in
Other
comprehensive income
within
Equity
, while any gains or losses relatingto the ineffective and / orundesignated portion
(for example,the interestelement ofa forward contract)are recognized inthe incomestatement. Upondisposal orpartial
disposal of the foreignoperation, the cumulative value ofany such gains or lossesrecognized in
Equity
associated with
the entity
is reclassified to
Other income
.
›
Refer to Note 24 for more information
3) Fee and commission income and expenses
UBS earnsfee incomefrom thediverse rangeof servicesit providesto itsclients. Feeincome canbe dividedinto two
broadcategories: feesearned fromservices thatareprovidedover acertain periodof time,such asmanagement of
clients’ assets, custodyservices and certainadvisory services; andfees earnedfrom PIT services,such as underwritingfees,
deal-contingent merger and acquisitionsfees, and brokerage fees (e.g.securities and derivatives executionand clearing).
UBS recognizesfees earnedfromPIT serviceswhen ithas fullyprovided theservice tothe client.Where thecontract
requires services to be providedover time, incomeis recognized on asystematic basis over thelife of theagreement. This
includes fees related toloan commitments where itis not probable thata specific lending arrangement willbe entered
into, which are recognized over the life of the commitment.
Consideration receivedis allocatedto theseparately identifiableperformance obligationsin acontract. Owingto the
nature of UBS’s business, contracts that include multiple performance obligations are typically those that are considered
to include aseries of similarperformance obligations fulfilled overtime with thesame pattern of transferto the client,
e.g.managementofclientassetsandcustodialservices.Asaconsequence,UBSisnotrequiredtoapplysignificant
judgment in allocating the consideration received across the various performance obligations.
PIT servicesare generallyfor afixed priceor dependenton dealsize, e.g. afixed numberof basispoints oftrade size,
where the amount of revenue isknown when the performance obligationis met. Fixed-over-time fees are recognizedon
a straight-linebasis overthe performanceperiod. Custodialand assetmanagement feescan bevariable throughreference
tothesizeofthecustomerportfolio.However,theyaregenerallybilledonamonthlyorquarterlybasisoncethe
customer’sportfoliosizeisknownorknownwithnearcertaintyandthereforealsorecognizedratablyoverthe
performance period. UBS does not recognize performance feesrelated to management of clients’ assets orfees related
to contingencies beyond UBS’s control until such uncertainties are resolved.
UBS’sfeesaregenerallyearnedfromshort-termcontracts.Asaresult,UBS’scontractsdonotincludeafinancing
component orresult inthe recognitionof significantreceivables orprepayment assets.Furthermore, dueto theshort-
term nature of such contracts, UBS has not capitalized any material costs to obtain or fulfill a contract or generated any
significant contract assets or liabilities.
UBS presents expenses primarily in linewith their nature in the income statement,differentiating between expenses that
are directlyattributable tothe satisfactionof specificperformance obligationsassociated withthe generationof revenues,
whicharegenerallypresentedwithin
Totalrevenues
as
Feeandcommissionexpense
,andthosethatarerelatedto
personnel, general and administrativeexpenses, or depreciation andamortization, which are presentedwithin
Operating
expenses
. For derivativesexecution and clearingservices (where UBSacts as anagent), UBS onlyrecognizes its specific
fees in the income statement, with fees payable toother parties not recognized as an expense butinstead directly offset
against the associated income collected from the given client.
›
Refer to Note 4 for more information, including the disaggregation of revenues
4) Share-based and other deferred compensation plans
UBS recognizesexpenses fordeferred compensationawards overthe periodthat theemployee isrequiredto provide
service tobecome entitledto theaward. Wherethe serviceperiod isshortened, for examplein thecase ofemployees
affected by restructuring programs ormutually agreed termination provisions,recognition of such expenseis accelerated
to thetermination date.Where nofuture serviceis required,such asfor employeeswho areeligible forretirement or
whohavemetcertainageandlength-of-servicecriteria,theservicesarepresumedtohavebeenreceivedand
compensation expense is recognized overthe performance year or,in the case of off-cycle awards, immediately onthe
grant date.
Share-based compensation plans
Share-based compensation expense ismeasured by referenceto the fair valueof the equity instruments onthe date of
grant, takinginto accountthe termsand conditionsinherent inthe award,including, whererelevant, dividendrights,
transfer restrictions in effect beyond the vesting date, market conditions, and non-vesting conditions.
For equity-settled awards, fair value isnot remeasured unless the terms ofthe award are modified such thatthere is an
incrementalincreaseinvalue.Expensesarerecognized,onaper-tranchebasis,overtheserviceperiodbasedonan
estimate ofthe numberof instrumentsexpected tovest andare adjustedto reflectthe actualoutcomes ofservice or
performance conditions.
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Note 1Summary of material accounting policies (continued)
For equity-settledawards, forfeitureevents resultingfrom abreach ofa non-vestingcondition (i.e.one thatdoes not
relate to a service or performance condition) do not result in any adjustment to the share-based compensation expense.
For cash-settledshare-based awards,fair valueis remeasuredat eachreporting date,so thatthe cumulativeexpense
recognized equals the cash distributed.
Other deferred compensation plans
Compensationexpenseforotherdeferredcompensationplansisrecognizedonaper-trancheorstraight-linebasis,
depending onthe natureof theplan. Theamount recognizedis measuredbased onthe presentvalue ofthe amount
expected to be paidunder the planand is remeasured ateach reporting date, sothat the cumulativeexpense recognized
equals the cash or the fair value of respective financial instruments distributed.
›
Refer to Note 26 for more information
5) Post-employment benefit plans
Defined benefit plans
Defined benefit plans specifyan amount of benefitthat an employee willreceive, which usually depends onone or more
factors, such asage, years ofservice and compensation. Thedefined benefit liability recognizedin the balancesheet is
the present value of the defined benefit obligation, measured using the projected unitcredit method, less the fair value
of theplan’s assetsat thebalance sheetdate, withchanges resultingfromremeasurementsrecordedimmediately in
Other comprehensive income
. If the fair value of the plan’s assets ishigher than the present value of the defined benefit
obligation, the recognition of the resulting net asset is limited to the present value of economic benefits available in the
form of refundsfrom theplan or reductionsin futurecontributions to theplan. Calculation ofthe net definedbenefit
obligation or assettakes into accountthe specific featuresof eachplan, including risksharing between employeeand
employer, and is calculated periodically by independent qualified actuaries.
Defined contribution plans
Adefinedcontributionplanpaysfixedcontributionsintoaseparateentityfromwhichpost-employmentandother
benefits are paid. UBS has no legal or constructive obligation to pay further amounts if the plan does not hold sufficient
assets topay employeesthe benefitsrelating to employeeservice inthe current andprior periods.Compensation expense
is recognized when theemployees have renderedservices in exchange for contributions.This is generally inthe year of
contribution. Prepaid contributions arerecognized as anasset to the extentthat a cash refundor a reductionin future
payments is available.
›
Refer to Note 25 for more information
6) Income taxes
UBS is subject to the income tax laws of Switzerland and those of the non-Swiss jurisdictions in which UBS has business
operations.
The Group’s provision for income taxes iscomposed of current and deferred taxes.Current income taxes represent taxes
to be paid or refunded for the current period or previous periods.
Deferred taxassets (DTAs)and deferredtax liabilities(DTLs) arerecognized fortemporary differencesbetween thecarrying
amounts andtax basesof assetsand liabilitiesthat willresult indeductible ortaxable amounts,respectively infuture
periods. DTAs may also arise from other sources, including unused tax losses and unused tax credits. DTAs andDTLs are
measured usingthe applicabletax ratesand lawsthat havebeen enactedor substantivelyenacted bythe endof the
reporting period and that will be in effect when such differences are expected to reverse.
DTAs are recognized only tothe extent it isprobable that sufficient taxable profitswill be available againstwhich these
differences canbe used.When anentity ortax grouphas ahistory ofrecent losses,DTAs areonly recognizedto the
extent that there are sufficient taxable temporarydifferences or there is convincingother evidence that sufficient taxable
profit will be available against which the unused tax losses can be utilized.
Deferred and currenttax assets andliabilities are offsetwhen: (i) they arisein the sametax reporting group;(ii) they relate
to the sametax authority; (iii) thelegal right tooffset exists; and(iv) with respect tocurrent taxes theyare intended to
be settled net or realized simultaneously.
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Note 1Summary of material accounting policies (continued)
Current and deferred taxes are recognized as income tax benefit or expensein the income statement, except for current
and deferred taxes recognized in relation to: (i) the acquisition of a subsidiary (for which such amounts would affect the
amount ofgoodwill arisingfrom theacquisition); (ii) gainsand losseson thesale oftreasury shares(for whichthe tax
effectsarerecognizeddirectlyin
Equity
);(iii) unrealizedgainsorlossesonfinancialinstrumentsthatareclassifiedat
FVOCI; (iv) changes infair value ofderivative instruments designatedas cash flowhedges; (v) remeasurements ofdefined
benefit plans; or(vi) certain foreign currency translationsof foreign operations.Amounts relating to points(iii) through
(vi) above are recognized in
Other comprehensive income
within
Equity
.
UBSreflectsthepotentialeffectofuncertaintaxpositionsforwhichacceptancebytherelevanttaxauthorityisnot
considered probableby adjusting currentor deferred taxes,as applicable, usingeither the mostlikely amountor expected
value methods, depending onwhich method isdeemed a betterpredictor of thebasis on which,and extent towhich,
the uncertainty will be resolved.
Critical accounting estimates and judgments
Tax lawsare complex, and judgment and interpretationsabout the application of such laws arerequired when accounting for incometaxes. UBS considers
the performanceof itsbusinesses andthe accuracyof historicalforecasts andother factorswhen evaluatingthe recoverabilityof itsDTAs,including the
remaining tax loss carry-forwardperiod, and its assessmentof expected future taxableprofits in the forecastperiod used for recognizingDTAs. Estimating
future profitability and business plan forecasts is inherently subjective and is particularly sensitive to future economic, market and other conditions.
Forecasts arereviewed annually,but adjustmentsmay be madeat other times,if required.If recentlosses havebeen incurred,convincing evidenceis
required toprove thereis sufficient futureprofitability giventhat the valueof UBS’s DTAsmay be affected,with effects primarilyrecognized throughthe
income statement.
In addition, judgment is required to assess the expected valueof uncertain tax positions and the related probabilities, includinginterpretation of tax laws,
the resolution of any income-tax-related appeals and litigation.
›
Refer to Note 8 for more information
7) Investments in associates
Interests in entitieswhere UBS hassignificant influenceover the financialand operating policiesof these entitiesbut does
not have controlare classified asinvestments inassociates and areaccounted forunder the equitymethod of accounting.
Typically,UBS has significantinfluence when itholds, or hasthe ability tohold, between 20%and 50% ofan entity’s
voting rights. Investments inassociates are initially recognized atcost, and the carryingamount is increased or decreased
afterthedateofacquisitiontorecognizetheGroup’sshareoftheinvestee’scomprehensiveincomeanddividends
receivedandadjustedforanyimpairmentlosses.Thenetinvestmentinanassociateisimpairedifthereisobjective
evidence of a loss event and the carrying amount of the investment in the associate exceeds its recoverable amount.
›
Refer to Note 27 for more information
8) Property, equipment and software
Property,equipment and software
is measuredat costless accumulated depreciationand impairment losses.Software
development costs are capitalized only when the costs can be measured reliably and it is probable that future economic
benefitswillarise.Depreciationofproperty,equipmentandsoftwarebeginswhentheyareavailableforuseandis
calculated on a straight-line basis over an asset’s estimated useful life.
Property,equipmentandsoftwarearegenerallytestedforimpairmentattheappropriatecash-generatingunitlevel,
alongside goodwill andintangible assets asdescribed in item 9 inthis Note. Animpairment charge isrecognized for such
assetsiftherecoverableamountisbelowitscarryingamount.Therecoverableamountsofsuchassets,otherthan
property that has a marketprice, are generally determined using areplacement cost approach that reflects theamount
that would be currently required by amarket participant to replace the service capacityof the asset. If such assets areno
longer used, they are tested individually for impairment.
›
Refer to Note 11 for more information
9) Goodwill and other separately identifiable intangible assets
Goodwill representstheexcess oftheconsideration overthefairvalue ofidentifiable assets, liabilitiesandcontingent
liabilitiesacquiredthat arisesin abusinesscombination.Goodwillis notamortizedbut isassessedfor impairmentat theend
of each reporting period,or when indicators of impairmentexist.UBS tests goodwillfor impairment annually,irrespective
of whether thereis anyindication of impairment.An impairmentcharge isrecognizedin theincome statementif the
carrying amount exceeds the recoverable amount of a cash-generating unit.
Negativegoodwill,generallydeterminedbasedonthedifferencebetweenthefairvaluesfortheidentifiableassets
acquired and liabilities assumed and consideration transferred, is recognized in the income statement on the acquisition
date.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements270
Note 1Summary of material accounting policies (continued)
Separately from goodwill, UBS recognizesthe identifiable intangible assetsacquired in a business combination,including
those that werenot previously recognizedin the financialstatements of theacquiree. Amortization ofthese intangible
assets is recognized on a straight-line basis over their estimated useful life. These assets are tested for impairment at the
appropriate cash-generating-unit level.
Critical accounting estimates and judgments
UBS‘s methodologyfor goodwillimpairment testingis based ona model thatis mostsensitive to thefollowing keyassumptions: (i) forecastsof earnings
available to shareholders (typicallyestimated on a discrete basisfor years one to three);(ii) changes in the discount rates;and (iii) changes in the long-term
growth rate.
Earnings available to shareholders are estimated on thebasis of forecast results, which arepart of the business plan approved bythe BoD. The discount
rates andgrowth ratesare determinedusing externalinformation, andalso consideringinputs fromboth internaland externalanalysts andthe viewof
management.
The key assumptions used todetermine the recoverable amounts ofeach cash-generating unit aretested for sensitivity by applyingreasonably possible
changes to those assumptions.
›
Refer to Notes
2
and
12
for more information
10) Provisions and contingent liabilities
Provisions areliabilities ofuncertain timingor amount,and aregenerally recognizedin accordancewith IAS 37,
Provisions,
Contingent Liabilities andContingent Assets
, when: (i) UBShas apresent obligation asa resultof apast event; (ii) itis
probable that an outflow of resources will be required to settle the obligation; and (iii) a reliable estimate of the amount
of theobligation canbe made.IAS 37 provisionsare measuredconsidering thebest estimateof theconsideration required
to settle the present obligation at the balance sheet date.
When conditions required to recognize aprovision are not met, a contingentliability is disclosed, unless the likelihoodof
an outflowof resourcesis remote.Contingent liabilitiesare alsodisclosed forpossible obligationsthat arisefrom past
events, the existence of which will be confirmed only by uncertain future events not wholly within the control of UBS.
Contingentliabilities,morespecificallyinrelationtolitigations,recognizedinabusinesscombinationareinitially
measured at fair value. Subsequently,they are measured at thehigher of the initial fairvalue and the amountthat would
be recognized in accordance with the requirements for provisions outlined above, until the contingency is resolved.
Critical accounting estimates and judgments
Recognition of provisions often involvessignificant judgment in assessing the existenceof an obligation that resultsfrom past events and inestimating the
probability, thetiming and the amount of any outflows of resources.This is particularly the case for litigation, regulatory and similar matters, which, dueto
their nature, are subject to many uncertainties, making their outcome difficult to predict.
The amount of anyprovision recognized issensitive to the assumptionsused, and therecould be a widerange of possible outcomesfor any particular
matter.
Management regularly reviews all the available informationregarding such matters, including legal advice, to assesswhether the recognition criteria for
provisions have been satisfied and to determine the timing and the amount of any potential outflows.
›
Refer to Note
17
for more information
11) Foreign currency translation
Transactions denominated in a foreign currencyare translated into the functional currency of the reporting entity at the
spot exchangerate onthe dateof thetransaction. Atthe balancesheet date,all monetaryassets, includingthose at
FVOCI, andmonetary liabilitiesdenominated inforeign currencyaretranslated intothe functionalcurrencyusing the
closing exchange rate. Translationdifferences are reported in
Other net income from financial instruments measured at
fair value through profit or loss
.
Non-monetary items measured at historical cost are translated at the exchange rate on the date of the transaction.
Upon consolidation,assets andliabilitiesof foreignoperationsare translatedinto USdollars,UBS’s presentationcurrency,at
the closingexchange rateon the balancesheet date,and income andexpense itemsand other comprehensiveincome are
translatedat the averagerate for theperiod. Theresulting foreigncurrency translationdifferencesare recognizedin
Equity
and reclassifiedto the incomestatement whenUBS disposesof the foreignoperation,either partiallyor in its entirety,and
UBS no longercontrols theforeign operation.
Sharecapital issued,share premiumand treasuryshares heldare translatedat the historicaverage rate,with the difference
between thehistoric averagerate and thespot rate realizedupon repaymentof share capitalor disposalof treasuryshares
reportedas
Sharepremium.
Cumulativeamountsrecognizedin
Othercomprehensiveincome
in respectof cashflowhedges
and financialassets measuredat FVOCI aretranslatedat the closingexchange rateas of the balancesheet dates,with any
translationeffects adjustedthrough
Retained earnings
.
›
Refer to Note 31 for more information
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements271
Note 1Summary of material accounting policies
(continued)
12) UBS Group AG shares held (treasury shares)
UBS Group AG sharesheld by the Group,including those purchased aspart of market-making activities,are presented
in
Equity
as
Treasuryshares
at theiracquisition costand arededucted from
Equity
until theyare canceledor reissued.
The difference between the proceeds from sales of treasury shares and their weighted average cost (net of tax, if any) is
reported as
Share premium
.
13) Cash and cash equivalents
For the purposes of the statement of cash flows, cash and cash equivalents consist of balances with an original maturity
of three months or less including cash, money market paper and balances with central and other banks.
In certain circumstancescash and cash equivalentbalances held by UBSare not availablefor the useby the Group,for
example amountsplaced atcentral bankstomeetlocal statutoryminimum reserverequirements, balancesprotected
under client asset segregation rules and balances pledged under the depositor protection schemes.
b) Changes in IFRS Accounting Standards and Interpretations
Disclosures about Uncertainties in the Financial statements
In November2025, theIASB issuedillustrative examples
Disclosures aboutUncertainties inthe FinancialStatements,
using
climate-related examples to illustratehow requirements in IFRS AccountingStandards are applied to report theeffects of
uncertainties in the financial statements. Exampleshave no stated effectivedate. The guidance provided throughthese
examples is consistent with the manner in which UBS prepares its financial statements.
IFRS 18,
Presentation and Disclosure in Financial Statements
InApril2024,theIASBissuedanewstandard,IFRS 18,
PresentationandDisclosureinFinancialStatements
,which
replaces IAS 1,
Presentation of Financial Statements
. The main changes introduced by IFRS 18 relate to:
–
the structure of income statements;
–
new disclosure requirements for management performance measures; and
–
enhanced guidance on aggregation and disaggregation of information on the face of financial statements and in the
notes thereto.
IFRS 18iseffectivefrom1 January2027andwillalsoapplytocomparativeinformation.UBSwillapplythesenew
requirements from 1 January 2027.UBS is assessing the impactof the new requirements onits reporting but expects it
to be limited. UBS will evaluate the grouping of items inthe primary financial statements and in the notes thereto based
on new principles of aggregation and disaggregation in IFRS 18.
Amendments to IFRS 9,
Financial Instruments
, and IFRS 7,
Financial Instruments: Disclosures
InMay2024,theIASBissuedAmendmentstotheClassificationandMeasurementofFinancialInstruments–
Amendments to IFRS 9 and IFRS 7 (the Amendments).
The Amendments relate to:
–
assessment of contractual cash flow characteristics in classifying financialassets, including those with environmental,
social and corporate governance and similar features, non-recourse features, and contractually linked instruments;
–
derecognitionoffinancialinstruments,includingtheintroductionofanaccountingpolicyelectiontoderecognize
financial liabilities settled through electronic transfer systems, if certain conditions are met; and
–
disclosureofinformationaboutfinancialinstrumentswithcontingentfeaturesthatcanchangetheamountof
contractual cash flows, as well as equity instruments designated at fair value through other comprehensive income.
TheAmendmentsareeffectivefrom1 January2026andareexpectedtohavelimitedimpactonUBS’sfinancial
statements.
Other amendments to IFRS Accounting Standards
The IASB has issued anumber of minor amendments to IFRSAccounting Standards, effective from1 January 2025 and
later. These amendments do not have or are not expected to have a significant effect on UBS when they are adopted.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements272
Note 2aSegment reporting
UBS’s businesses areorganized globally into fivebusiness divisions: Global WealthManagement, Personal & Corporate
Banking, Asset Management,the Investment Bank,and Non-coreand Legacy.All five businessdivisions are supported
by theGroup functionsand qualifyas reportablesegments forthe purposeof segmentreporting. Togetherwith the
Group functions,the five business divisions reflect the management structure of the Group.
–
Global WealthManagement
provides financialservices, adviceand solutionsto privatewealth clients,as wellas
select institutional clients. Its offering ranges from investment management to estate planning and corporate finance
advice, in addition to specific wealth management and banking products and services.
–
Personal&CorporateBanking
providesanextensiverangeoffinancialproductsandservices,frombankingto
retirement,financing,investmentsandstrategictransactions,toprivate,corporateandinstitutionalclients,in
Switzerland, through its branch network and digital channels.
–
AssetManagement
isaglobal,large-scaleanddiversifiedassetmanager,offeringinvestmentcapabilitiesand
strategiesacrossallmajortraditionalandalternativeassetclassesandinvestingstylestoinstitutions,wholesale
intermediaries and Global Wealth Management clients.
–
The
Investment Bank
provides services to institutional,corporate, financial sponsor andGlobal Wealth Management
clients, helping them raisecapital, invest and managerisks. Its offering includesequities, foreign exchange, precious
metals, research, advisory and capital markets, complemented by a focused rates and credit platform.
–
Non-core and Legacy
incorporates selected assets andliabilities originating from the formerCredit Suisse businesses
not aligned withUBS’s long-term strategic prioritiesor risk appetite,including associated financial andnon-financial
assets, operating expenses, and funding costs. A small part of the division is made up of positions from UBS’s former
Non-core and Legacy Portfolio and some other legacy UBS assets and liabilities that were assessed as non-strategic in
the context of the acquisition of the Credit Suisse Group.
–
The Group functions are supportand control functions that provideservices to the Group. Virtuallyall costs incurred
by the Group functions are allocated to thebusiness divisions, leaving a residual amount referred to as
Group Items
in the segment reporting.Group functions include thefollowing major areas: GroupServices (which consists ofGroup
Technology,GroupComplianceandOperationalRiskControl,GroupFinance,GroupRiskControl,GroupHuman
Resources andCorporate Services,Group CorporateCommunications andGroup Brand& Marketing,Group Legal,
the Group Integration Office, Group Sustainability and Impact, and the Chief Strategy Office) and Group Treasury.
Financial information about the five business divisions andGroup Items is presented separately in internalmanagement
reports to theGroup Executive Board(the GEB), whichis considered the“chief operating decision-maker” pursuantto
IFRS 8,
Operating Segments
.
UBS’sinternalaccountingpolicies,whichincludemanagementaccountingpoliciesandservicelevelagreements,
determinetherevenuesandexpensesdirectlyattributabletoeachreportablesegment.Transactionsbetweenthe
reportable segments are carried out at internally agreed rates and are reflected in the operating results of thereportable
segments.Revenue-sharingagreementsareusedtoallocateexternalclientrevenuestoreportablesegmentswhere
severalreportablesegmentsareinvolvedinthevaluecreationchain.TotalintersegmentrevenuesfortheGroupare
immaterial, as the majority of the revenues are allocated across the segments by means of revenue-sharing agreements.
InterestincomeearnedfrommanagingUBS’sconsolidatedequityisallocatedtothereportablesegmentsbasedon
average attributed equityand currency composition.Assets and liabilities ofthe reportable segmentsare funded through
and invested with Group functions, and the net interest margin is reflected in the results of each reportable segment.
Segmentassetsarebasedonathird-partyviewanddonotincludeintercompanybalances.Thisviewisinlinewith
internalreportingtotheGEB.Ifoneoperatingsegmentisinvolvedinanexternaltransaction togetherwithanother
operating segmentor Groupfunction, additional criteriaare considered todetermine the segmentthat willreport the
associatedassets.Thiswillincludeaconsiderationofwhichsegment’sbusinessneedsarebeingaddressedbythe
transactionandwhichsegmentisprovidingthefundingand/orresources.Allocationofliabilitiesfollowsthesame
principles.
Non-current assetsdisclosed forsegment reportingpurposes representassets thatare expectedto berecovered more
than12monthsafterthereportingdate,excludingfinancialinstruments,deferredtaxassetsandpost-employment
benefits.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements273
Note 2aSegment reporting (continued)
Segment reporting
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
UBS
For the year ended 31 December 2025
Net interest income
7,018
5,322
(69)
(2,938)
(72)
(1,514)
7,747
Non-interest income
18,941
3,832
3,224
15,278
226
325
41,826
Total revenues
25,960
9,154
3,156
12,340
154
(1,190)
49,573
Credit loss expense / (release)
48
339
1
133
(1)
2
524
Operating expenses
20,705
6,318
2,436
9,387
1,353
(2)
40,197
Operating profit / (loss) before tax
5,207
2,497
719
2,819
(1,199)
(1,190)
8,853
Tax expense / (benefit)
1,056
Net profit / (loss)
7,797
Additional information
Total assets
578,394
479,956
27,357
488,964
25,376
17,380
1,617,427
Additions to non-current assets
1,169
485
159
971
16
0
2,800
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
UBS
For the year ended 31 December 2024
Net interest income
7,358
5,650
(63)
(3,597)
126
(2,365)
7,108
Non-interest income
17,158
3,684
3,246
14,544
1,480
1,391
41,503
Total revenues
24,516
9,334
3,182
10,948
1,605
(975)
48,611
Credit loss expense / (release)
(16)
404
(1)
97
69
(2)
551
Operating expenses
20,608
5,741
2,663
8,934
3,512
(220)
41,239
Operating profit / (loss) before tax
3,924
3,189
520
1,917
(1,976)
(752)
6,821
Tax expense / (benefit)
1,675
Net profit / (loss)
5,146
Additional information
Total assets
559,601
447,068
22,702
453,422
68,260
13,975
1,565,028
Additions to non-current assets
889
361
100
768
88
0
2,206
USD m
Global
Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Negative
goodwill
UBS
For the year ended 31 December 2023
Net interest income
7,082
4,878
(40)
(2,915)
437
(2,144)
7,297
Non-interest income
14,474
2,810
2,726
11,619
260
1,648
33,536
Total revenues
21,556
7,687
2,686
8,703
697
(495)
40,834
Negative goodwill
27,264
27,264
Credit loss expense / (release)
166
482
0
190
193
6
1,037
Operating expenses
17,945
4,394
2,353
8,585
5,091
438
38,806
Operating profit / (loss) before tax
3,445
2,811
332
(72)
(4,587)
(938)
27,264
28,255
Tax expense / (benefit)
873
Net profit / (loss)
27,382
Additional information
Total assets
567,648
483,794
21,804
428,269
201,131
14,277
1,716,924
Additions to non-current assets
2,584
3,279
709
530
3,062
550
10,714
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements274
Note 2bSegment reporting by geographic location
The operatingregions shownin thetable belowcorrespond tothe regionalmanagement structureof theGroup. The
allocation of total revenues to these regions reflects, and is consistent with, the basis on which the business is managed
and its performanceis evaluated. Theseallocations involve assumptions andjudgments that managementconsiders to
be reasonable and maybe refined to reflectchanges in estimates ormanagement structure. The main principlesof the
allocationmethodologyarethatclientrevenuesareattributedtothedomicileofthegivenclient,andtradingand
portfoliomanagementrevenuesareattributedtothecountrywheretheriskismanaged.Thisrevenueattributionis
consistent with the mandate of the regional Presidents. Certain revenues, such as those related to Non-core and Legacy
and Group Items, are included in the
Global
line.
Thegeographicalanalysisofnon-currentassetsisbasedonthelocationoftheentityinwhichthegivenassetsare
recorded.
For 2023, the allocation oftotal revenues by geographical regionfor Credit Suisse is notavailable on the same allocation
basis as for the UBS Group and the cost to develop this information would have been excessive. Therefore, as permitted
underIFRS8,therespectiveinformationisnotdisclosed.UBS AGandCreditSuisse AGdisclosedtotalrevenuesby
geographical region in their 2023 annual reports according to their respective allocation methodologies.
›
Refer to “UBS AG consolidated financial information” in the “Consolidated financial statements” section of the UBS AGAnnual
Report 2023 for more information on total revenues by geographical regionfor UBS AG
›
Refer to the Credit Suisse AG consolidated financial statements 2023, available at
https://www.ubs.com/global/en/investor-
relations/complementary-financial-information/disclosure-legal-entities/credit-suisse-ag-consolidated.html
, for more information
on total revenues by geographical region for Credit Suisse AG
Segment reporting by geographic location
For the year ended 31 December 2025
Total revenues
Total non-current assets
USD bn
Share %
USD bn
Share %
Americas
1
17.6
36
8.5
34
Asia Pacific
8.0
16
1.3
5
EMEA (excluding Switzerland)
8.5
17
3.2
12
Switzerland
15.8
32
12.3
49
Global
2
(0.4)
(1)
0.0
0
Total
49.6
100
25.3
100
For the year ended 31 December 2024
Total revenues
Total non-current assets
USD bn
Share %
USD bn
Share %
Americas
1
16.8
35
8.6
35
Asia Pacific
6.8
14
1.4
6
EMEA (excluding Switzerland)
7.7
16
3.1
12
Switzerland
15.1
31
11.6
47
Global
3
2.2
5
0.0
0
Total
48.6
100
24.7
100
For the year ended 31 December 2023
Total revenues
Total non-current assets
USD bn
Share %
USD bn
Share %
Americas
1
9.4
34
Asia Pacific
1.7
6
EMEA (excluding Switzerland)
3.3
12
Switzerland
13.3
48
Global
0.0
0
Total
27.7
100
1 Predominantly related to the US.2 Includes certain revenues in Global Wealth Management that were not allocated togeographical regions.3 Includes certain revenues in Asset Management and Global Wealth
Management that were not allocated to geographical regions.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements275
Income statement notes
Note 3Net interest income and other net income from financial instruments measured at fair value through
profit or loss
Net interest income and Other net income from financial instruments measured at fair value through profit or loss
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Net interest income from financial instruments measured at fair value through profit or loss and other
6,343
7,061
3,770
Other net income from financial instruments measured at fair value through profit or loss
1
14,011
14,690
11,583
Total net income from financial instruments measured at fair value through profit or loss and other
20,353
21,752
15,353
Net interest income
Interest income from loans and deposits
2
23,865
32,494
28,569
Interest income from securities financing transactions measured at amortized cost
3
3,399
4,074
3,948
Interest income from other financial instruments measured at amortized cost
1,622
1,371
1,187
Interest income from debt instruments measured at fair value through other comprehensive income
291
104
103
Interest resulting from derivative instruments designated as cash flow hedges
(1,229)
(2,049)
(2,064)
Total interest income from financial instruments measured at amortized cost and fair value through other comprehensive income
27,948
35,994
31,743
Interest expense on loans and deposits
4
13,854
19,653
15,011
Interest expense on securities financing transactions measured at amortized cost
5
2,074
2,051
1,968
Interest expense on debt issued
10,456
14,053
11,072
Interest expense on lease liabilities
161
191
166
Total interest expense from financial instruments measured at amortized cost
26,544
35,947
28,216
Total net interest income from financial instruments measured at amortized cost and fair value through other comprehensive income
1,404
47
3,527
Total net interest income from financial instruments measured at fair value through profit or loss and other
6,343
7,061
3,770
Total net interest income
7,747
7,108
7,297
1 Includes net losses from financial liabilities designated at fair value of USD
7,546
m (net losses of USD
1,836
m in 2024 and net losses of USD
4,843
m in 2023). These amounts exclude fair value changes on hedges
related to financial liabilities designated at fairvalue, and foreign currencytranslation effects arising from translatingforeign currency transactions into therespective functional currency, bothof which are reported
within Other net incomefrom financial instruments measured atfair value through profit orloss. Net losses from financial liabilitiesdesignated at fair value includednet losses of USD
2,827
m (net losses ofUSD
1,844
m
and net losses ofUSD
2,045
m in 2024 and2023, respectively) from financialliabilities related to unit-linkedinvestment notes issuedby UBS’s AssetManagement business division.These gains /(losses) are fully
offset within Othernet income fromfinancial instruments measuredat fair valuethrough profit orloss by thefair value changeon the financialassets hedging theunit-linked investmentcontracts, whichare not
disclosed as part of net losses fromfinancial liabilities designated at fair value.2 Consists of interest income from cash andbalances at central banks,amounts due from banks and customers,and cash collateral
receivables on derivative instruments,as well as negative interest on amountsdue to banks, customer deposits,and cash collateral payables onderivative instruments.3 Includes negative interest, including fees,
on payables from securities financing transactionsmeasured at amortized cost.4 Consists of interest expense on amounts dueto banks, cash collateral payableson derivative instruments, andcustomer deposits,
as well asnegative intereston cash andbalances atcentral banks,amounts duefrom banks,and cashcollateral receivableson derivativeinstruments.5 Includes interestexpense on payablesfrom securities
financing transactions and negative interest, including fees, on receivables fromsecurities financing transactions measured at amortized cost.
Note 4Net fee and commission income
Net fee and commission income
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Underwriting fees
957
786
568
M&A and corporate finance fees
1,105
1,049
840
Brokerage fees
5,426
4,586
3,542
Portfolio management, investment fund and related services fees
1
19,560
18,090
15,510
Other
3,533
4,217
3,306
Total fee and commission income
2
30,581
28,730
23,766
of which: recurring
19,562
18,208
15,911
of which: transaction-based
10,823
10,371
7,761
of which: performance-based
195
150
94
Fee and commission expense
3
2,669
2,592
2,195
Net fee and commission income
27,912
26,138
21,570
of which: recurring net fee and commission income
18,015
16,690
14,670
of which: Global Wealth Management
13,671
12,625
10,988
of which: Personal & Corporate Banking
1,669
1,541
1,240
of which: Asset Management
2,800
2,710
2,452
of which: transaction-based net fee and commission income
9,702
9,299
6,807
of which: Global Wealth Management
3,399
2,841
2,219
of which: Personal & Corporate Banking
1,303
1,182
1,060
of which: Asset Management
79
77
60
of which: performance-based net fee and commission income
195
149
94
of which: Asset Management
195
149
94
1 Fees for portfolio management and related services and investment fund feesare presented on a combined basis. Comparative-period information has been aligned with the information presentedfor the year ended
31 December 2025. This category includes fees earned on portfolio management mandates withclients and management and performance fees earned on UBS-managed funds and third-party-managed funds.2 For
the year ended 31December 2025 reflects third-partyfee and commission incomeof USD
17,920
m for Global WealthManagement, USD
3,175
m for Personal & CorporateBanking, USD
4,089
m for Asset Management,
USD
5,248
m for theInvestment Bank, USD
88
m for Non-coreand Legacy,and USD
62
m for GroupItems (for theyear ended 31 December2024: USD
16,341
m for GlobalWealth Management, USD
2,996
m for
Personal & Corporate Banking, USD
3,737
m for Asset Management, USD
5,235
m for the Investment Bank, USD
428
m for Non-core and Legacy, and negative USD
7
m for Group Items; for the yearended 31 December
2023: USD
13,950
m for Global Wealth Management, USD
2,417
m for Personal & Corporate Banking, USD
3,376
m for Asset Management, USD
3,979
m for the Investment Bank, USD
128
m for Non-core and Legacy,
and negative USD
85
m for Group Items).3 Includes brokerage expense for the year ended 31 December 2025 ofUSD
332
m (for year ended 31 December 2024: USD
362
m; for the year ended 31 December 2023:
USD
327
m).
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements276
Note 5Other income
Other income
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Associates, joint ventures and subsidiaries
Net gains / (losses) from acquisitions and disposals of subsidiaries
1
253
2
9
24
Net gains / (losses) from disposals of investments in associates and joint ventures
3
135
4
Share of net profits of associates and joint ventures
79
3
144
(348)
Impairments related to associates
(2)
Total
333
288
(319)
Net gains / (losses) from disposals of financial assets measured at fair value through other comprehensive income
0
0
3
Income from properties
4
34
49
39
Net gains / (losses) from properties held for sale
20
(17)
12
Other
5
(483)
6
354
7
648
Total other income
(96)
675
384
1 Includes foreign exchange gains / (losses) reclassified from other comprehensiveincome related to the disposal or closure of foreign operations.Refer to Note 28 for more information about UBS’sacquisitions and
disposals of subsidiaries and businesses.2 Includes a gain of USD
128
m from the sale of a stake in a subsidiary,Credit Suisse Securities (China) Limited, and a gain of USD
97
m recognized upon the completion of
the sale of the US mortgage servicing business of Credit Suisse, Select Portfolio Servicing, which was managed in Non-core and Legacy.Refer to Note 28 for more information.3 Includes a gain of USD
64
m related
to UBS’s share of the income recorded by Swisscard AECS GmbHfor the sale of the Credit Suisse cardportfolios to UBS. Refer to Note 28 for more information.4 Includes rent received from third parties.5 Included
in 2025 are net losses ofUSD
574
m related to the repurchase ofUBS’s own debt instruments(compared with net gains of USD
21
m in 2024 and net gainsof USD
160
m in 2023). Thenet losses in 2025 include a
USD
457
m net loss from the repurchase of legacy Credit Suisse debt instruments, as the repurchase price exceeded the amortized-cost carrying value (the net loss reflects a loss of USD
885
m before PPA adjustments,
partly offset by a USD
427
m gain from the release of PPA adjustments).6 Includes a USD
33
m gain from the sale of UBS’s wealth management business in India. Refer to Note 28 for more information.7 Includes
USD
113
m net gains in Asset Management from the sale of the Brazilian real estate fund management business.
Note 6Personnel expenses
Personnel expenses
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Salaries
1
11,904
12,178
10,997
Variable compensation
2
11,434
10,870
9,845
of which: performance awards
4,912
4,456
3,986
of which: financial advisors
3
5,654
5,293
4,549
of which: other
867
1,121
1,310
Contractors
301
325
334
Social security
1,696
1,622
1,473
Post-employment benefit plans
4
1,499
1,310
1,361
of which: defined benefit plans
921
731
847
of which: defined contribution plans
579
578
514
Other personnel expenses
1,027
1,013
890
Total personnel expenses
27,861
27,318
24,899
1 Includes role-based allowances.2 Refer to Note 26for more information.3 Financial advisor compensationconsists of cash compensation,determined using a formulaicapproach based on production,and
deferred awards. It also includes expenses related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements.4 Refer to Note 25 for more
information. Includes curtailment gains of USD
120
m for the year ended 31 December 2025 (for the year ended 31 December2024: USD
104
m; for the year ended 31 December 2023: USD
29
m), which represent a
reduction in the defined benefit obligation related to the Swiss pension plans resulting from a decrease in headcount following restructuring activities.
Note 7General and administrative expenses
General and administrative expenses
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Outsourcing costs
1,594
1,816
1,492
Technology costs
2,517
2,356
1,851
Consulting, legal and audit fees
1,281
1,616
1,619
Real estate and logistics costs
1,061
1,200
1,342
Market data services
696
749
684
Marketing and communication
563
575
408
Travel and entertainment
362
337
278
Litigation, regulatory and similar matters
1
(949)
(128)
809
Other
1,682
2
1,604
1,673
3
Total general and administrative expenses
8,807
10,124
10,156
1 Reflects thenet increase /(decrease) in provisionsfor litigation, regulatoryand similar mattersrecognized in theincome statement, includingreleases of IFRS3 acquisition-related contingentliabilities. Referto
Note 17 for moreinformation.2 Includes a USD
180
m expense relatedto the paymentto Swisscard AECSGmbH for thesale of theCredit Suisse cardportfolios to UBS.Refer to Note28 for moreinformation.
3 Includes USD
296
m attributable to setting up a provision related to onerous contracts.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements277
Note 8Income taxes
Income taxes
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Tax expense / (benefit)
Swiss
Current
597
672
883
Deferred
323
296
152
Total Swiss
920
968
1,035
Non-Swiss
Current
841
1,498
684
Deferred
(705)
(791)
(846)
Total non-Swiss
136
707
(162)
Total income tax expense / (benefit) recognized in the income statement
1,056
1,675
873
Income tax recognized in the income statement
The Swiss current tax expenses related to taxable profits of UBS Switzerland AG and other Swiss entities.
The Swiss deferred tax expenses primarily related to the amortization of deferredtax assets (DTAs) previously recognized
in relation to deductible temporary differences.
The non-Swiss current taxexpenses included USD
145
m that related toUS corporate alternative minimum tax,with an
equivalent deferred tax benefit for DTAsrecognized in respect of tax credits carriedforward and USD
696
m in respect of
other taxable profits of non-Swiss subsidiaries and branches.
Thenetnon-SwissdeferredtaxbenefitincludedUSD
145
mrelatedtotheaforementioneddeferredtaxbenefit,
USD
747
m in respect of a net upwardrevaluation of DTAs and USD
215
m in respect of an increase inDTAs that resulted
from an increase in the expected value of future tax deductions for deferred compensation awards due toan increase in
the Group’sshare priceduring theyear. Thesebenefits werepartly offsetby anexpense ofUSD
402
m thatprimarily
relatedtotheamortizationofDTAspreviouslyrecognizedinrelationtotaxlossescarriedforwardanddeductible
temporary differences.
Income tax expense / (benefit)
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Operating profit / (loss) before tax
8,853
6,821
28,255
of which: Swiss
4,162
3,002
32,237
of which: non-Swiss
4,691
3,819
(3,981)
Income taxes at Swiss tax rate of
18.5
% for 2025,
18.5
% for 2024 and
18.5
% for 2023
1,638
1,262
5,227
Increase / (decrease) resulting from:
Non-Swiss tax rates differing from Swiss tax rate
186
(197)
(224)
Tax effects of losses not recognized
301
1,012
1,584
Previously unrecognized tax losses now utilized
(155)
(454)
(401)
Non-taxable and lower-taxed income
1
(827)
(447)
(5,641)
Non-deductible expenses and additional taxable income
1,220
1,774
1,651
Adjustments related to prior years, current tax
(110)
(102)
(87)
Adjustments related to prior years, deferred tax
(4)
9
(1)
Change in deferred tax recognition
(1,306)
(1,480)
(1,288)
Adjustments to deferred tax balances arising from changes in tax rates
11
(40)
26
Other items
103
338
25
Income tax expense / (benefit)
1,056
1,675
873
1 The reconciling item for non-taxable and lower-taxedincome for 2023 primarily reflects that the negative goodwill gain thatwas recorded in the income statement in relation to theacquisition of the Credit Suisse
Group did not result in any tax expense.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements278
Note 8Income taxes (continued)
The componentsof operatingprofit before tax,and thedifferences between incometax expensereflected in thefinancial
statements and the amounts calculated at the Swiss tax rate, are provided in the table above and explained below.
Component
Description
Non-Swiss tax rates
differing from the Swiss
tax rate
To the extent that Groupprofits or losses arise outside Switzerland, the applicable local tax rate may differ from the Swiss
tax rate. This item reflects, for such profits, an adjustment from the tax expense that would arise at the Swiss tax rate to
the tax expense that would arise at the applicable local tax rate. Similarly, it reflects, for such losses, an adjustment from
the tax benefit that would arise at the Swiss tax rate to the tax benefit that would arise at the applicable local tax rate.
Tax effects of losses not
recognized
This item relates to tax losses of entities arising in the year that are not recognized as DTAs andwhere no tax benefit
arises in relation to those losses. Therefore, the tax benefit calculated by applying the local tax rate to those losses as
described above is reversed.
Previously
unrecognized tax losses
now utilized
This item relates to taxable profits of the year that are offset by tax losses of previous years for which no DTAswere
previously recorded. Consequently,no current tax or deferred tax expense arises in relation to those taxable profits and
the tax expense calculated by applying the local tax rate on those profits is reversed.
Non-taxable and lower-
taxed income
This item relates to tax deductions for the year in respect of permanent differences. These include deductions in respect of
profits that are either not taxable or are taxable at a lower rate of tax than the local tax rate. They also include deductions
made for tax purposes, which are not reflected in the accounts.
Non-deductible
expenses and
additional taxable
income
This item relates to additional taxable income for the year in respect of permanent differences. These include income that
is recognized for tax purposes by an entity but is not included in its profit that is reported in the financial statements, as
well as expenses for the year that are non-deductible (e.g. client entertainment costs are not deductible in certain
locations).
Adjustments related to
prior years, current tax
This item relates to adjustments to current tax expense for prior years (e.g. if the tax payable for a year is agreed with the
tax authorities in an amount that differs from the amount previously reflected in the financial statements).
Adjustments related to
prior years, deferred
tax
This item relates to adjustments to deferred tax positions recognized in prior years (e.g. if a tax loss for a year is fully
recognized and the amount of the tax loss agreed with the tax authorities is expected to differ from the amount
previously recognized as DTAs in the accounts).
Change in deferred tax
recognition
This item relates to changes in DTAs, including changes in DTAspreviously recognized resulting from reassessments of
expected future taxable profits. It also includes changes in temporary differences in the year,for which deferred tax is not
recognized.
Adjustments to
deferred tax balances
arising from changes in
tax rates
This item relates to remeasurements of DTAs and liabilities recognizeddue to changes in tax rates. These have the effect
of changing the future tax saving that is expected from tax losses or deductible tax differences and therefore the amount
of DTAs recognized or,alternatively, changing the tax cost of additional taxable income from taxable temporary
differences and therefore the deferred tax liability.
Other items
Other items include other differences between profits or losses at the local tax rate and the actual local tax expense or
benefit, including movements in provisions for uncertain positions in relation to the current year and other items.
Income tax recognized directly in equity
A net tax expenseof USD
330
m was recognized in
Other comprehensive income
(2024: net tax expenseof USD
9
m) and
a net tax benefit of USD
160
m was recognized in
Share premium
(2024: net tax benefit of USD
23
m).
Deferred tax assets and liabilities
The Group has gross DTAs,valuation allowances and recognized DTAs relatedto tax loss carry-forwards and deductible
temporary differences, as well asdeferred tax liabilities inrespect of taxable temporary differences, asshown in the table
below. Thevaluation allowances reflectDTAsthat were notrecognized because, asof the lastremeasurement period,
management didnot considerit probablethat therewould besufficientfuture taxableprofits availableto utilizethe
related tax loss carry-forwards and deductible temporary differences.
The recognition of DTAsis supported by forecasts of taxable profits for the entities concerned. In addition, tax planning
opportunities are availablethat would resultin additional futuretaxable income andthese would beutilized, if necessary.
Deferred tax liabilities arerecognized in respect ofinvestments in subsidiaries, branches and associates,and interests in
joint arrangements, except to the extent that the Groupcan control the timing of the reversalof the associated taxable
temporary difference and it is probable that suchwill not reverse in the foreseeable future. However, as of 31 December
2025, this exception was not considered to apply to any taxable temporary differences.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements279
Note 8Income taxes (continued)
Deferred tax assets and liabilities
USD m
31.12.25
31.12.24
Deferred tax assets
1
Gross
Valuation
allowance
Recognized
Gross
Valuation
allowance
Recognized
Tax loss carry-forwards
20,261
(17,743)
2,518
19,940
(17,663)
2,277
Unused tax credits
808
0
808
675
0
675
Temporary differences
10,356
(2,157)
8,198
10,841
(2,659)
8,182
of which: related to real estate costs capitalized for US tax purposes
2,907
0
2,907
2,971
0
2,971
of which: related to compensation and benefits
2,240
(250)
1,991
1,984
(503)
1,482
of which: related to cash flow hedges
107
1
108
529
0
529
of which: other
5,101
(1,909)
3,193
5,358
(2,156)
3,201
Total deferred tax assets
31,425
(19,901)
11,525
2
31,456
(20,322)
11,134
2
of which: related to the US
10,063
9,340
of which: related to other locations
1,461
1,794
Deferred tax liabilities
Total deferred tax liabilities
471
340
1 After offset of DTLs, as applicable.2 As of 31 December 2025, the Group recognized DTAs of USD
399
m (31 December 2024: USD
697
m) in respect of entities that incurred losses in either 2025 or 2024.
In general, US federal tax losses incurred prior to 31 December 2017 can be carried forward for 20 years. US federal tax
losses incurred afterthat date canbe carried forwardindefinitely, although theutilization of suchlosses is limitedto 80%
of theentity’s futureyear taxableprofits. UK taxlosses canalso becarried forward indefinitely;they canshelter up to
either 25% or 50% of futureyear taxable profits, depending on when thetax losses arose. The amounts ofUS tax loss
carry-forwards that areincluded in thetable below arebased on theiramount for federaltax purposes ratherthan for
state and local tax purposes.
Unrecognized tax loss carry-forwards
USD m
31.12.25
31.12.24
Within 1 year
384
387
From 2 to 5 years
8,350
9,491
From 6 to 10 years
3,440
3,127
From 11 to 20 years
3,007
3,760
No expiry
47,717
50,838
Total
62,898
67,603
of which: related to the US
1
16,932
19,213
of which: related to the UK
39,640
38,293
of which: related to other locations
6,325
10,097
1 Mainly related to UBS AG’s US branch.
Pillar Two top-up taxes under Global Anti-Base Erosion rules
Certain countriesin whichthe Groupoperates haveenacted legislationimplementing thePillar TwoGlobal Anti-Base
Erosion rules published by the Organisation for EconomicCo-operation and Development that introduced domestic top-
up taxes that applied to UBS Group entities during 2025, including Switzerland, which introduced non-domestic top-up
taxes with effect from 1 January 2025, that applies to the Group’s worldwide entities.
The exception that was introduced bythe amendments to IAS 12,
Income Taxes
, issued in May 2023, hasbeen applied
forthepurposesofthesefinancialstatements,whichrequiresthatdeferredtaxassetsanddeferredtaxliabilitiesbe
neither recognized nor disclosed in respect of such top-up taxes.
The Group’s profits are primarily generated in countries that have effective tax rates of 15% or more and, as a result, its
current tax expenses for 2025 that related to top-up taxes were only USD
8
m.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements280
Balance sheet notes
Note 9Financial assets at amortized cost and other positions in scope of expected credit loss measurement
The tablesbelow provideinformation aboutfinancial instrumentsand certaincredit linesthat aresubject toexpected
credit loss (ECL)requirements.UBS’s ECL disclosuresegments, or “ECL segments”,are aggregated portfoliosbased on
shared riskcharacteristics andon thesame orsimilar ratingmethods applied.The keysegments arepresented inthe
table below.
›
Refer to Note 19 for more information about expected credit loss measurement
›
Refer to Note 19f for more information about sensitivity
Segment
Segment description
Description of credit risk sensitivity
Business division
Private clients with
mortgages
Lending to private clients secured by
owner-occupied real estate and personal
account overdrafts of those clients
Sensitive to Swiss GDP,interest rate
environment, unemployment levels, real
estate collateral values and other regional
aspects
–
Personal & Corporate Banking
–
Global Wealth Management
Real estate financing
Rental or income-producing real estate
financing to private and corporate clients
secured by real estate
Sensitive to Swiss GDP,unemployment
levels, the interest rate environment, real
estate collateral values and other regional
aspects
–
Personal & Corporate Banking
–
Global Wealth Management
–
Investment Bank
Large corporate
clients
Lending to large corporate and multi-
national clients
Sensitive to GDP developments,
unemployment levels, credit default swap
(CDS) indices, seasonality, business cycles,
collateral values (diverse collateral,
including real estate and other collateral
types) and commodity prices
–
Personal & Corporate Banking
–
Investment Bank
–
Global Wealth Management
–
Non-core and Legacy
SME clients
Lending to small and medium-sized
corporate clients
Sensitive to GDP developments,
unemployment levels, the interest rate
environment and, to some extent,
seasonality, business cycles and collateral
values (diverse collateral, including real
estate and other collateral types)
–
Personal & Corporate Banking
Lombard
Loans secured by pledges of marketable
securities, guarantees and other forms of
collateral
Sensitive to equity and debt markets (e.g.
changes in collateral values)
–
Global Wealth Management
–
Non-core and Legacy
Credit cards
Credit card exposures in Switzerland and
the US
Sensitive to unemployment levels
–
Personal & Corporate Banking
–
Global Wealth Management
Commodity trade
finance
Working capital financing of commodity
traders, generally extended on a self-
liquidating transactional basis
Sensitive primarily to the strength of
individual transaction structures and
collateral values (price volatility of
commodities), as the primary source for
debt service is directly linked to the
shipments financed
–
Personal & Corporate Banking
Consumer financing
Consumer loans and car leasing
Sensitive to unemployment levels
–
Personal & Corporate Banking
Ship financing
Ship financing mainly includes bulk
carriers, oil tankers, containers and
liquefied natural gas carriers
Sensitive to real GDP,earnings of tankers
and earnings of bulk carriers
–
Global Wealth Management
Aircraft financing
Corporate aircraft financing
Sensitive to collateral values
–
Global Wealth Management
Financial
intermediaries and
hedge funds
Lending to financial institutions and
pension funds, including exposures to
broker-dealers and clearing houses
Sensitive to GDP development, CDS
indices, the interest rate environment,
price and volatility risks in financial
markets, regulatory and political risk, and
collateral values (diverse collateral,
including real estate and other collateral
types)
–
Personal & Corporate Banking
–
Investment Bank
–
Global Wealth Management
–
Non-core and Legacy
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements281
Note 9Financial assets at amortized cost and other positions in scope of expected credit loss measurement
(continued)
The tables below provide exposureand ECL allowance andprovision information about financialinstruments and certain
non-financial instruments that are subject to ECL requirements.
ECL-relevant balance sheet and off-balance sheet positions
USD m
31.12.25
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Cash and balances at central banks
209,858
209,606
21
0
231
(81)
0
(29)
0
(52)
Amounts due from banks
19,649
19,525
124
0
0
(14)
(9)
(5)
0
0
Receivables from securities financing transactions measured at
amortized cost
83,656
83,656
0
0
0
(1)
(1)
0
0
0
Cash collateral receivables on derivative instruments
41,552
41,552
0
0
0
0
0
0
0
0
Loans and advances to customers
653,846
624,137
25,155
3,947
607
(2,490)
(353)
(271)
(1,629)
(237)
of which: Private clients with mortgages
287,424
276,377
9,599
1,400
49
(124)
(44)
(18)
(55)
(6)
of which: Real estate financing
92,334
86,954
5,261
111
8
(67)
(26)
(30)
(11)
0
of which: Large corporate clients
26,752
22,954
2,886
700
213
(762)
(116)
(94)
(413)
(139)
of which: SME clients
23,805
19,883
2,521
1,238
163
(1,068)
(80)
(81)
(872)
(36)
of which: Lombard
165,320
164,874
169
212
64
(64)
(6)
0
(27)
(31)
of which: Credit cards
2,408
1,860
501
47
0
(48)
(7)
(12)
(29)
0
of which: Commodity trade finance
4,849
3,570
1,274
5
0
(94)
(8)
0
(80)
(6)
of which: Ship / aircraft financing
8,753
7,609
1,025
119
0
(17)
(9)
(8)
0
0
of which: Consumer financing
2,966
2,677
130
92
67
(136)
(19)
(24)
(92)
0
Other financial assets measured at amortized cost
71,897
70,427
1,247
220
3
(124)
(29)
(9)
(86)
0
of which: Loans to financial advisors
2,716
2,567
53
95
0
(34)
(3)
(1)
(30)
0
Total financial assets measured at amortized cost
1,080,458
1,048,903
26,546
4,167
841
(2,711)
(392)
(314)
(1,715)
(289)
Financial assets measured at fair value through other comprehensive
income
13,868
13,868
0
0
0
0
0
0
0
0
Total on-balance sheet financial assets in scope of ECL requirements
1,094,326
1,062,771
26,546
4,167
841
(2,711)
(392)
(314)
(1,715)
(289)
Notional exposure
ECL provisions
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Guarantees
47,102
45,512
1,448
120
22
(50)
(15)
(22)
(13)
0
of which: Large corporate clients
7,388
6,446
916
17
9
(17)
(7)
(6)
(4)
0
of which: SME clients
3,134
2,834
228
67
5
(24)
(5)
(15)
(4)
0
of which: Financial intermediaries and hedge funds
29,411
29,288
123
0
0
(1)
(1)
0
0
0
of which: Lombard
3,537
3,505
1
31
0
(2)
0
0
(1)
0
of which: Commodity trade finance
2,252
2,152
100
0
0
(1)
(1)
0
0
0
Irrevocable loan commitments
82,122
77,976
3,938
174
35
(227)
(114)
(77)
(27)
(9)
of which: Large corporate clients
50,000
46,556
3,292
118
35
(184)
(91)
(72)
(19)
(2)
Forward starting reverse repurchase and securities borrowing
agreements
10,723
10,723
0
0
0
0
0
0
0
0
Committed unconditionally revocable credit lines
119,679
115,982
3,449
248
0
(67)
(51)
(16)
0
0
of which: Real estate financing
6,433
5,291
1,041
101
0
(3)
(5)
1
0
0
of which: Large corporate clients
11,393
10,737
650
6
0
(15)
(7)
(6)
(2)
0
of which: SME clients
11,814
11,278
418
118
0
(31)
(24)
(7)
0
0
of which: Lombard
60,500
60,435
63
1
0
0
0
0
0
0
of which: Credit cards
12,943
12,361
578
4
0
(9)
(7)
(2)
0
0
Irrevocable committed prolongation of existing loans
8,178
8,141
32
5
0
(3)
(3)
0
0
0
Total off-balance sheet financial instruments and other credit lines
267,803
258,333
8,867
546
57
(347)
(184)
(115)
(40)
(9)
Total allowances and provisions
(3,058)
(576)
(428)
(1,756)
(298)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respectiveECL allowances.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements282
Note 9Financial assets at amortized cost and other positions in scope of expected credit loss measurement
(continued)
ECL-relevant balance sheet and off-balance sheet positions
USD m
31.12.24
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Cash and balances at central banks
223,329
223,201
13
0
114
(47)
0
(21)
0
(25)
Amounts due from banks
18,903
18,704
198
0
0
(36)
(1)
(5)
0
(30)
Receivables from securities financing transactions measured at
amortized cost
118,301
118,301
0
0
0
(2)
(2)
0
0
0
Cash collateral receivables on derivative instruments
43,959
43,959
0
0
0
0
0
0
0
0
Loans and advances to customers
579,967
553,532
22,049
3,565
820
(1,978)
(276)
(323)
(1,134)
(244)
of which: Private clients with mortgages
249,756
239,540
8,987
1,146
84
(160)
(46)
(70)
(30)
(14)
of which: Real estate financing
82,602
78,410
3,976
195
20
(58)
(24)
(27)
(7)
0
of which: Large corporate clients
25,286
20,816
3,462
707
301
(573)
(72)
(123)
(277)
(100)
of which: SME clients
20,768
17,403
2,265
952
148
(742)
(55)
(47)
(613)
(26)
of which: Lombard
147,504
147,136
260
48
61
(42)
(6)
0
(18)
(18)
of which: Credit cards
1,978
1,533
406
39
0
(41)
(6)
(11)
(25)
0
of which: Commodity trade finance
4,203
4,089
106
8
0
(81)
(9)
0
(71)
0
of which: Ship / aircraft financing
7,848
6,974
874
0
0
(31)
(14)
(16)
0
0
of which: Consumer financing
2,820
2,480
114
159
67
(93)
(15)
(19)
(62)
4
Other financial assets measured at amortized cost
58,835
58,209
436
178
12
(125)
(25)
(7)
(84)
(8)
of which: Loans to financial advisors
2,723
2,568
59
95
0
(41)
(4)
(1)
(37)
0
Total financial assets measured at amortized cost
1,043,293
1,015,906
22,697
3,743
946
(2,187)
(304)
(357)
(1,218)
(307)
Financial assets measured at fair value through other comprehensive
income
2,195
2,195
0
0
0
0
0
0
0
0
Total on-balance sheet financial assets in scope of ECL requirements
1,045,488
1,018,102
22,697
3,743
946
(2,187)
(304)
(357)
(1,218)
(307)
Notional exposure
ECL provisions
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Guarantees
40,279
38,858
1,242
151
27
(64)
(16)
(24)
(24)
0
of which: Large corporate clients
7,817
7,096
635
78
8
(17)
(7)
(9)
(2)
0
of which: SME clients
2,524
2,074
393
41
15
(26)
(5)
(15)
(7)
0
of which: Financial intermediaries and hedge funds
21,590
21,449
141
0
0
(1)
(1)
0
0
0
of which: Lombard
3,709
3,652
24
29
4
(6)
(1)
0
(5)
0
of which: Commodity trade finance
2,678
2,676
2
0
0
(1)
(1)
0
0
0
Irrevocable loan commitments
79,579
75,158
4,178
187
56
(177)
(105)
(61)
(10)
(2)
of which: Large corporate clients
47,381
43,820
3,393
125
43
(155)
(91)
(54)
(8)
(2)
Forward starting reverse repurchase and securities borrowing
agreements
24,896
24,896
0
0
0
0
0
0
0
0
Committed unconditionally revocable credit lines
145,665
143,262
2,149
250
5
(76)
(59)
(17)
0
0
of which: Real estate financing
7,674
7,329
345
0
0
(6)
(4)
(2)
0
0
of which: Large corporate clients
14,690
14,089
584
14
3
(22)
(14)
(7)
(2)
0
of which: SME clients
9,812
9,289
333
190
0
(34)
(28)
(6)
0
0
of which: Lombard
73,267
73,181
84
0
1
0
0
0
0
0
of which: Credit cards
10,074
9,604
467
3
0
(8)
(6)
(2)
0
0
Irrevocable committed prolongation of existing loans
4,608
4,602
4
2
0
(3)
(3)
0
0
0
Total off-balance sheet financial instruments and other credit lines
295,027
286,776
7,572
590
89
(320)
(183)
(102)
(34)
(2)
Total allowances and provisions
(2,507)
(487)
(459)
(1,253)
(309)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respectiveECL allowances.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements283
Note 9Financial assets at amortized cost and other positions in scope of expected credit loss measurement
(continued)
Coverage ratios are calculatedfor the coreloan portfolio by takingECL allowances and provisionsdivided by thegross
carrying amount ofthe exposures. Coreloan exposure isdefined as thesum of
Loans and advancesto customers
and
Loans to financial advisors
.
These ratios are influenced by the following key factors:
–
Lombard loans are generally secured withmarketable securities in portfolios that are,as a rule, highly diversified, with
strict lending policies that are intended to ensure that credit risk is minimal under most circumstances;
–
mortgage loans toprivate clients andreal estate financingare controlled byconservative eligibility criteria,including
low loan-to-value ratios and strong debt service capabilities;
–
the amount of unsecured retail lending (including credit cards and consumer financing) is not material;
–
contractual maturitiesin theloan portfolio,which area factorin thecalculation ofECLs, aregenerally short,with
Lombard lendingtypically havingaverage contractualmaturities of12 monthsor less,real estatelending generally
between twoand threeyears inSwitzerland, withlong-dated maturitiesin theUS, andcorporate lendingbetween
one and two years with related loan commitments up to four years; and
–
write-offs ofECL allowancesagainst thegross loanbalances whenall orpart ofa financialasset isdeemed uncollectible
or forgiven reduce the coverage ratios.
The totalon- andoff-balance sheet coverageratio was
31
basis points asof 31 December 2025,
4
basis pointshigher
than theratio asof 31 December2024. The combinedstage 1 and2 ratiowas
10
basis points, unchangedcompared
with 31 December 2024;the stage 3 ratiowas
27
%,
5
percentage points higherthan the ratioas of 31 December 2024,
and the PCI ratio was
27
%.
Coverage ratios for core loan portfolio
31.12.25
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
287,548
276,421
9,617
1,455
55
4
2
19
2
380
1,162
Real estate financing
92,401
86,979
5,292
122
8
7
3
57
6
871
540
Total real estate lending
379,949
363,401
14,908
1,577
64
5
2
32
3
418
1,079
Large corporate clients
27,514
23,069
2,980
1,113
352
277
50
315
80
3,711
3,956
SME clients
24,873
19,964
2,602
2,109
198
429
40
310
71
4,132
1,793
Total corporate lending
52,387
43,033
5,581
3,222
550
349
46
313
76
3,986
3,177
Lombard
165,384
164,880
169
239
95
4
0
0
0
1,140
3,246
Credit cards
2,456
1,867
513
76
0
197
37
234
80
3,867
0
Commodity trade finance
4,943
3,584
1,274
86
0
190
22
2
17
9,379
0
Ship / aircraft financing
8,771
7,618
1,033
119
0
20
12
77
20
0
0
Consumer financing
3,102
2,696
154
184
68
439
70
1,590
152
5,012
58
Other loans and advances to customers
39,344
37,402
1,792
73
77
28
10
17
10
6,779
2,484
Loans to financial advisors
2,750
2,571
54
125
0
125
12
141
15
2,431
0
Total other lending
226,750
220,618
4,990
903
239
22
4
97
6
3,425
2,328
Total
1
659,086
627,051
25,479
5,702
853
38
6
107
10
2,911
2,782
Notional exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
13,016
12,757
245
13
0
3
2
16
3
0
0
Real estate financing
7,743
6,591
1,051
101
0
7
13
0
7
0
0
Total real estate lending
20,758
19,348
1,296
114
0
4
6
0
4
0
0
Large corporate clients
68,798
63,753
4,860
141
43
31
17
173
28
1,718
377
SME clients
16,511
15,531
732
242
5
46
23
386
39
275
9,581
Total corporate lending
85,308
79,284
5,592
383
48
34
18
201
30
807
1,353
Lombard
65,395
65,298
64
33
0
2
0
0
0
2,151
0
Credit cards
12,943
12,361
578
4
0
7
6
34
7
0
0
Commodity trade finance
2,613
2,512
101
0
0
5
5
6
5
0
0
Ship / aircraft financing
1,968
1,770
198
0
0
11
2
89
11
0
0
Consumer financing
153
153
0
0
0
0
0
0
0
0
0
Financial intermediaries and hedge funds
34,281
33,880
401
0
0
1
1
5
1
0
0
Other off-balance sheet commitments
33,659
33,004
635
12
8
6
5
19
5
1,781
2,438
Total other lending
151,013
148,978
1,978
48
8
3
2
26
2
1,882
2,438
Total
2
257,080
247,610
8,867
546
57
13
7
129
12
733
1,510
Total on- and off-balance sheet
3
916,166
874,662
34,346
6,248
910
31
6
112
10
2,720
2,703
1 Includes Loans andadvances to customers andLoans to financial advisors,which are presented onthe Other financial assetsmeasured at amortized costbalance sheet line.2 Excludes Forward startingreverse
repurchase and securities borrowing agreements.3 Includes on-balance sheet exposure, gross and off-balance sheet exposure (notional) and the relatedECL coverage ratio (bps).
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements284
Note 9Financial assets at amortized cost and other positions in scope of expected credit loss measurement
(continued)
Coverage ratios for core loan portfolio
31.12.24
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
249,916
239,586
9,056
1,176
98
6
2
77
5
257
1,447
Real estate financing
82,660
78,434
4,003
202
20
7
3
67
6
353
2
Total real estate lending
332,576
318,020
13,059
1,378
118
7
2
74
5
271
1,203
Large corporate clients
25,859
20,888
3,585
983
402
222
35
344
80
2,814
2,500
SME clients
21,510
17,459
2,312
1,565
174
345
32
205
52
3,918
1,474
Total corporate lending
47,369
38,347
5,897
2,549
576
278
33
290
67
3,492
2,190
Lombard
147,547
147,141
260
66
79
3
0
8
0
2,719
2,317
Credit cards
2,019
1,539
416
64
0
205
39
256
85
3,857
0
Commodity trade finance
4,284
4,098
106
79
0
189
22
40
23
8,984
4,226
Ship / aircraft financing
7,879
6,988
891
0
0
39
20
184
39
0
0
Consumer financing
2,912
2,495
133
221
63
318
62
1,449
132
2,786
0
Other loans and advances to customers
37,359
35,179
1,610
342
228
42
8
57
10
917
3,909
Loans to financial advisors
2,764
2,571
60
132
0
149
14
159
17
2,785
0
Total other lending
204,764
200,012
3,477
905
370
24
4
164
7
2,691
2,804
Total
1
584,708
556,380
22,433
4,831
1,064
35
5
145
10
2,424
2,294
Notional exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
8,473
8,271
176
25
1
4
4
22
4
84
0
Real estate financing
8,694
8,300
394
0
0
7
6
33
7
0
0
Total real estate lending
17,167
16,571
570
25
1
6
5
30
6
84
0
Large corporate clients
69,892
65,009
4,612
217
54
28
17
150
26
588
290
SME clients
13,944
12,788
842
287
27
53
30
324
48
281
0
Total corporate lending
83,837
77,797
5,454
504
81
32
19
177
30
413
186
Lombard
80,390
80,235
120
30
4
1
0
1
0
1,764
0
Credit cards
10,074
9,604
467
3
0
8
6
36
8
0
0
Commodity trade finance
3,487
3,464
23
0
0
3
3
51
3
0
0
Ship / aircraft financing
2,669
2,663
6
0
0
13
13
49
13
0
0
Consumer financing
134
134
0
0
0
6
6
0
6
0
0
Financial intermediaries and hedge funds
19,609
19,145
464
0
0
1
1
8
1
0
0
Other off-balance sheet commitments
52,765
52,268
468
27
2
4
2
28
2
2,903
0
Total other lending
169,127
167,512
1,549
61
6
2
1
23
2
2,171
0
Total
2
270,131
261,880
7,572
590
89
12
7
135
11
580
171
Total on- and off-balance sheet
3
854,839
818,260
30,006
5,421
1,153
27
6
142
10
2,223
2,131
1 Includes Loans andadvances to customers andLoans to financial advisors,which are presented onthe Other financial assetsmeasured at amortized costbalance sheet line.2 Excludes Forward startingreverse
repurchase and securities borrowing agreements.3 Includes on-balance sheet exposure, gross and off-balance sheet exposure (notional) and the relatedECL coverage ratio (bps).
Note 10Derivative instruments
Overview
Over-the-counter (OTC) derivative contracts are usually traded under a standardized International Swaps and Derivatives
Association (ISDA) master agreement or otherrecognized local industry-standard master agreementsbetween UBS and
its counterparties. Terms are negotiated directly with counterpartiesand the contracts haveindustry-standard settlement
mechanisms prescribed byISDA or similarindustry-standard solutions. OtherOTC derivatives arecleared through clearing
houses, in particular interest rate swapswith London Clearing House (LCH),where a settled-to-market method has been
generally adopted, under which cashcollateral exchanged on a dailybasis is considered to legally settlethe market value
of the derivatives. Regulators in various jurisdictions have introduced rules requiring the paymentand collection of initial
and variation margins on certain OTC derivative contracts, which may have a bearing on price and other relevant terms.
Exchange-traded derivatives (ETD) are standardized in terms of their amounts and settlement dates,and are bought and
soldonregulatedexchanges.Exchangesofferthebenefitsofpricingtransparency,standardizeddailysettlementof
changes in value and, consequently, reduced credit risk.
MostoftheGroup’sderivativetransactionsrelatetosalesandmarket-makingactivity.Salesactivitiesincludethe
structuring and marketing of derivativeproducts to customers to enablethem to take, transfer, modifyor reduce current
or expectedrisks. Market-makingaims todirectly supportthe facilitationand executionof clientactivity, andinvolves
quotingbidandofferpricestoothermarketparticipantswiththeaimofgeneratingrevenues basedonspread and
volume. The Group also uses various derivative instruments for hedging purposes.
›
Refer to Notes 15 and 20 for more information about derivative instruments
›
Refer to Note 24 for more information about derivatives designated in hedge accounting relationships
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements285
Note 10Derivative instruments (continued)
Risks of derivative instruments
ThederivativefinancialassetsshownonthebalancesheetcanbeanimportantcomponentoftheGroup’scredit
exposure; however, the positive replacement valuesrelated to a respective counterpartyare rarely an adequate reflection
of theGroup’s creditexposure inits derivativesbusiness with thatcounterparty. This isgenerally thecase because,on
the one hand, replacement valuescan increase over time (potentialfuture exposure), while, on theother hand, exposure
may be mitigatedby entering intomaster netting agreementsand bilateral collateral arrangements.Both the exposure
measures used internallyby the Groupto control creditrisk and thecapital requirements imposedby regulators reflect
these additional factors.
›
Refer to Note 21 for more information about derivative financial assets and liabilities after consideration ofnetting potential
permitted under enforceable netting arrangements
›
Refer to the “Risk management and control” section of this report for moreinformation about the risks arising from derivative
instruments
Derivative instruments
31.12.25
31.12.24
USD bn
Derivative
financial
assets
Derivative
financial
liabilities
Notional
amounts
1
Derivative
financial
assets
Derivative
financial
liabilities
Notional
amounts
1
Interest rate
34.8
30.9
25,425.9
41.4
36.6
20,487.3
of which: forwards (OTC)
2
0.1
0.0
1,426.2
0.1
0.0
944.4
of which: swaps (OTC)
22.9
17.7
20,721.6
26.5
20.3
16,328.3
of which: options (OTC)
11.8
13.1
2,080.8
14.7
16.1
2,189.1
of which: futures (ETD)
938.0
827.5
Foreign exchange
48.7
49.9
8,150.6
100.9
94.6
7,476.1
of which: forwards (OTC)
18.7
18.2
3,143.7
36.9
32.3
2,267.7
of which: swaps (OTC)
23.8
25.3
3,988.1
55.2
53.5
4,052.4
of which: options (OTC)
6.2
6.3
1,004.0
8.6
8.7
1,145.2
Equity / index
50.8
62.6
1,789.0
36.9
42.7
1,458.1
of which: swaps (OTC)
6.1
12.5
469.3
5.9
8.2
352.8
of which: options (OTC)
7.6
12.9
405.4
4.4
8.3
226.1
of which: futures (ETD)
90.9
84.6
of which: options (ETD)
16.7
16.4
800.8
13.4
13.5
793.4
Credit derivatives
3.9
4.4
162.9
3.1
3.7
143.8
Commodities
9.2
8.0
250.0
2.6
2.2
172.5
Other
3
0.4
0.5
95.5
0.6
0.8
86.9
Total derivative instruments,
based on netting under IFRS Accounting Standards
4
147.8
156.2
35,873.7
185.6
180.6
29,824.8
1 In cases where derivative financial instruments arepresented on a net basis on the balance sheet, therespective notional amounts of the netted derivativefinancial instruments are still presented on a gross basis.
Includes notional amounts related to derivatives that are cleared through either a central counterparty or an exchange and settled on a daily basis.The fair value of these derivatives is presented on the balance sheet
net of the corresponding cash margin under Cash collateral receivables on derivative instruments and Cash collateral payables on derivative instrumentsand was not material for any of the periods presented. Notional
amounts of client-cleared ETDand OTC transactionsthrough central clearingcounterparties are not disclosed,as they have asignificantly different risk profile.2 Includes certain forwardstarting repurchase and
reverse repurchase agreements that are classified as measured at fairvalue through profit or loss and are recognized within derivative instruments.3 Includes mainly derivative loan commitments measured at FVTPL,
as well asunsettled purchases andsales of non-derivativefinancial instruments forwhich the changesin the fairvalue between tradedate and settlementdate are recognizedas derivative financialinstruments.
4 Derivative financial assets andliabilities are presented net onthe balance sheet if UBShas the unconditional and legallyenforceable right to offset therecognized amounts, both inthe normal course of business
and in the event of default, bankruptcy or insolvency of the entity and all of the counterparties, and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. Refer to Note 21
for more information about netting arrangements.
Onanotionalamountbasis,approximately
44
%ofOTCinterestratecontractsheldasof31 December2025
(31 December 2024:
55
%) mature within oneyear,
34
% (31 December 2024:
27
%) within one to fiveyears and
22
%
(31 December 2024:
18
%) after five years.
Notional amounts of interest rate contracts cleared through eithera central counterparty or an exchange that are legally
settled oreconomically netsettled ona dailybasis arepresented under
Notional amounts
in thetable aboveand are
categorized intomaturity bucketson thebasis ofcontractual maturitiesof thecleared underlying derivativecontracts.
Notional amounts related to interestrate contracts increased by USD
4.9
trn compared with 31 December 2024,mainly
reflecting higher business volumes in the Investment Bank.
Annual Report 2025
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Note 11Property, equipment and software
At historical cost less accumulated depreciation
USD m
Owned
properties and
equipment
1
Leased
properties and
equipment
2
Software
Projects in
progress
2025
2024
Historical cost
Balance at the beginning of the year
15,721
6,467
12,421
776
35,385
35,913
Additions
303
366
48
2,028
2,744
2,199
Disposals / write-offs
3
(1,411)
(441)
(470)
(1)
(2,323)
(1,108)
Reclassifications
4
300
0
1,487
(1,895)
(107)
(94)
Foreign currency translation
1,660
375
622
113
2,769
(1,525)
Balance at the end of the year
16,573
6,767
14,107
1,020
38,468
35,385
Accumulated depreciation
Balance at the beginning of the year
9,139
3,212
7,536
19,887
18,064
Depreciation
872
733
1,734
3,339
3,605
Impairment
5
6
1
63
69
52
Disposals / write-offs
3
(1,408)
(441)
(470)
(2,318)
(1,105)
Reclassifications
4
(45)
0
0
(45)
20
Foreign currency translation
913
179
386
1,479
(749)
Balance at the end of the year
9,477
3,684
9,249
22,411
19,887
Net book value
Net book value at the beginning of the year
6,582
3,255
4,884
776
15,498
17,849
Net book value at the end of the year
7,096
3,083
4,858
1,020
6
16,057
15,498
1 Includes leasehold improvementsand IT hardware.2 Represents right-of-useassets recognized byUBS as lessee.UBS predominantly entersinto lease contracts,or contracts thatinclude lease components,in
relation to realestate, includingoffices, retailbranches and salesoffices. Thetotal cash outflowfor leases during2025 was USD
947
m (2024: USD
1,138
m). Interest expenseon lease liabilitiesis included within
Interest expense from financial instruments measured at amortized cost, and lease liabilitiesare included within Other financial liabilities measured at amortized cost. Refer toNotes 3 and 18a, respectively. There were
no material gains or losses arisingfrom sale-and-leaseback transactions in 2025 and in 2024.3 Includes write-offs of fully depreciated assets.4 The total reclassification amount for the respective periodsrepresents
net reclassifications from / toOther non-financial assets.5 Impairment charges recorded in 2025generally relate to assets thatare no longer used, ofwhich USD
61
m for Group Items,USD
6
m for Global Wealth
Management and USD
1
m for Non-core and Legacy. The recoverable amount based on a value-in-use approach was determined to be zero.6 Consists of USD
535
m related to Owned properties and equipment and
USD
485
m related to Software.
Note 12Goodwill and intangible assets
Introduction
UBS performs an impairment test on its goodwill assets on an annual basis or when indicators of impairment exist.
UBS considers AssetManagement, as reportedin Note 2a,as a separate cash-generatingunit (a CGU),as that is thelevel
at which the performanceof investment (and therelated goodwill) is reviewedand assessed by management.Given that
a significant amount of goodwill in Global WealthManagement relates to the acquisition of PaineWebberGroup, Inc. in
2000, whichmainly affectedthe Americasportion ofthe business,this goodwillremains separatelymonitored bythe
Americas,despitetheformationofGlobalWealthManagementin2018.Therefore,goodwillforGlobalWealth
ManagementisseparatelyconsideredforimpairmentattheleveloftwoCGUs:Americas;andSwitzerlandand
International (consisting of EMEA, Asia Pacific and Global).
The impairmenttest isperformed foreach CGUto whichgoodwill isallocated bycomparing therecoverable amount
with the carrying amount of the respective CGU. UBS determines the recoverable amount of the respective CGUs based
on their value in use. An impairment charge is recognized if the carrying amount exceeds the recoverable amount.
Asof31 December 2025,totalgoodwillrecognizedonthebalancesheetwasUSD
6.1
bn,ofwhichUSD
3.7
bnwas
carried by theGlobal Wealth ManagementAmericas CGU, USD
1.2
bn was carriedby the GlobalWealth Management
Switzerland and International CGU,and USD
1.1
bn was carried by AssetManagement. Based on the impairmenttesting
methodology describedbelow, UBSconcluded thatthe goodwillbalances asof 31 December2025 allocatedto these
CGUs were not impaired. For each of the CGUs, the recoverable amount substantially exceeded the carrying value as of
31 December2025,andtherewasnoindicationofasignificantriskofgoodwillimpairmentbasedonthetesting
performed as of 31 December 2025.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements287
Note 12Goodwill and intangible assets (continued)
Methodology for goodwill impairment testing
The recoverableamounts aredetermined usinga discountedcash flowmodel, whichhas beenadapted touse inputs
that consider features of the banking business and its regulatoryenvironment. The recoverable amount of a CGU is the
sum ofthe discounted earningsattributable to shareholdersfrom thefirst threeforecast yearsand theterminal value,
adjusted for the effectof the capital assumedto be needed overthe next three yearsand to support growthbeyond that
period. The terminalvalue, which coversall periods beyondthe thirdyear,is calculated onthe basis ofthe forecastof
the third-year profit,the discount rateand the long-termgrowth rate, aswell as theimplied perpetual capital growth.
FortheGlobalWealthManagementAmericasCGU,themethodologyisconsistentlyapplied.ThatCGU’sextended
forecastperiodoffiveyears(withaterminalvaluethereafter),whichwasappliedinthe2024and2023goodwill
impairment testing to providefor that CGU’s specificplanning assumptions, namelythe ongoing investments inthe core
banking infrastructure inthe US toenhance the productcapabilities and offeringsin this market,has been reducedto
three years (witha terminal valuethereafter) following theimplementation ofmajor parts ofthese planningassumptions.
The extended forecast period of five years didnot trigger,defer or avoid an impairment of goodwill as of 31 December
2024 or 31 December 2023.
The carrying amount for each CGU is determined by reference to the Group’s equity attribution framework. Withinthis
framework,UBSattributesequitytothebusinessesonthebasisoftheirrisk-weightedassetsandleverageratio
denominator(bothmetricsincluderesourceallocationsfromGroupfunctionstothebusinessdivisions),orbytheir
common equity tier 1 (CET1) capitalequivalent of risk-based capital ifhigher, their goodwill and theirintangible assets,
aswellasattributedequityrelatedtocertainCET1capitaldeductionitems.Theframeworkisprimarilyusedforthe
purposeofmeasuringtheperformanceofthebusinessesandincludescertainmanagementassumptions.Attributed
equityisequaltothecapitalaCGUrequirestoconductitsbusinessandiscurrentlyconsideredareasonable
approximation of thecarrying amount ofthe CGUs.The attributedequity methodology isalso appliedin thebusiness
planning process, the inputs from which are used in calculating the recoverable amounts of the respective CGU.
Assumptions
Valuation parameters usedwithin the Group’s impairment testmodel are linked to external marketinformation, where
applicable. The modelused to determinethe recoverableamount is mostsensitive to changesin the forecastearnings
available to shareholders in years one to three, to changes in thediscount rates and to changes in the long-termgrowth
rate. The applied long-term growthrate is based on long-termeconomic growth rates fordifferent regions worldwide.
Earnings availabletoshareholdersareestimated onthe basisofforecastresults,whicharepart ofthe businessplan
approved by the Board of Directors.
Thediscountratesaredeterminedbyapplyingacapitalassetpricingmodel-basedapproach,aswellasconsidering
quantitative and qualitative inputs fromboth internal and external analystsand the view of management.They also take
into account regionaldifferences in risk-freerates at thelevel of theindividual CGUs. Inline with discountrates, long-
term growth rates are determined at the regional level based on nominal GDP growth rate forecasts.
KeyassumptionsusedtodeterminetherecoverableamountsofeachCGUaretestedforsensitivitybyapplyinga
reasonably possible changeto those assumptions.Forecast earnings availableto shareholders werechanged by
20
%, the
discount rateswere changedby
1.5
percentage points,and thelong-term growthrates werechanged by
0.75
percentage
points. Under all scenarios, reasonably possible changes inkey assumptions did not result inan impairment of goodwill
orintangible assetsreported byGlobal WealthManagement Americas,Global WealthManagement Switzerlandand
International, and Asset Management.
If the estimatedearnings and otherassumptions in futureperiods deviate fromthe current outlook,the value ofgoodwill
attributable toGlobal WealthManagement Americas, GlobalWealth ManagementSwitzerland andInternational, and
Asset Management maybecome impaired inthe future, giving riseto losses in theincome statement. Recognitionof any
impairment ofgoodwill wouldreduce IFRSAccounting Standardsequity andnet profit.It wouldnot affectcash flows
and,asgoodwillisrequiredtobedeductedfromcapitalundertheBasel IIIcapitalframework,noeffectwouldbe
expected on the Group’s capital ratios.
Discount and growth rates
Discount rates
Growth rates
In %
31.12.25
31.12.24
31.12.25
31.12.24
Global Wealth Management Americas
9.5
9.5
3.7
3.8
Global Wealth Management Switzerland and International
9.5
9.5
3.6
3.7
Asset Management
9.0
9.0
3.4
3.3
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements288
Note 12Goodwill and intangible assets (continued)
Goodwill and intangible assets
USD m
Goodwill
Intangible
assets
1
2025
2024
Historical cost
Balance at the beginning of the year
5,990
2,451
8,441
9,006
Additions
0
0
0
7
Disposals
2
(2)
0
(2)
(1)
Reclassifications
3
0
0
0
(384)
Write-offs
0
(76)
(76)
0
Foreign currency translation
79
180
259
(187)
Balance at the end of the year
6,067
2,555
8,622
8,441
Accumulated amortization and impairment
Balance at the beginning of the year
0
1,554
1,554
1,491
Amortization
0
140
140
190
Impairment / (reversal of impairment)
0
0
0
1
Reclassifications
3
0
0
0
(96)
Write-offs
0
(76)
(76)
0
Foreign currency translation
0
57
57
(32)
Balance at the end of the year
0
1,674
1,674
1,554
Net book value at the end of the year
6,067
880
6,948
6,887
of which: Global Wealth Management Americas
3,716
29
3,745
3,734
of which: Global Wealth Management Switzerland and International
1,205
107
1,312
1,271
of which: Personal & Corporate Banking
0
644
644
657
of which: Asset Management
1,146
0
1,146
1,127
of which: Investment Bank
0
100
100
98
of which: Non-core and Legacy
0
1
1
1
1 Intangible assets mainly include customer relationships, core deposits, contractual rights andthe fully amortized branch network intangible asset recognized inconnection with the acquisition of PaineWebber Group,
Inc. in 2000.2 Reflects the derecognition of goodwill allocated tobusinesses and intangible assets held by entities thathave been disposed of.3 In 2024, certain intangible assets were reclassifiedto Assets of
disposal groups held for sale. Refer to Note 28 for more information.
Note 13Other assets
a) Other financial assets measured at amortized cost
USD m
31.12.25
31.12.24
Debt securities
53,214
41,585
Loans to financial advisors
2,716
2,723
Fee-and commission-related receivables
2,422
2,242
Finance lease receivables
6,646
5,879
Settlement and clearing accounts
382
430
Accrued interest income
2,275
2,115
Other
1
4,243
3,862
Total other financial assets measured at amortized cost
71,897
58,835
1 Predominantly includes cash collateral provided to exchanges and clearing houses to secure securities trading activity throughthose counterparties.
Effective 1 April2022, UBS reclassifieda portfolio ofhigh-quality liquid financialassets from
Financial assets measured
at fair value through other comprehensive income
with a fair value of USD
6.9
bn (the Portfolio) to
Other financial assets
measuredatamortizedcost
.
ThePortfolio’scumulativefairvaluepre-taxlossofUSD
449
mandpost-taxlossof
USD
333
m, previously recognized in
Other comprehensive income
, were removed from equity and adjustedagainst the
valueoftheassetsonthereclassificationdate,sothatthePortfolio wasmeasuredasiftheassetshadalwaysbeen
classified at amortized cost, with a value of USD
7.4
bn as on 1 April 2022. The reclassification has hadno effect on the
income statement. At the time,the accounting reclassification aroseas a direct resultof the planned transformation of
UBS’sGlobalWealthManagementAmericasbusiness,involvingsignificantgrowthandextensionofthebusiness,
generating substantial cash balances,with a number ofnew saving and deposit productsbeing launched that are longer
induration.Additionallending,andabroaderrangeofcustomersegmentsweretargeted.Asaconsequence,the
Portfolio is nolonger held ina business modelto collect thecontractual cash flowsand sell theassets but isinstead solely
held to collect the contractual cash flows until the assetsmature, requiring a reclassification ofthe Portfolio in line with
IFRS 9 with effect from 1 April 2022.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements289
Note 13Other assets (continued)
b) Other non-financial assets
USD m
31.12.25
31.12.24
Precious metals and other physical commodities
12,996
7,341
Deposits and collateral provided in connection with litigation, regulatory and similar matters
1
769
1,946
Prepaid expenses
1,731
1,679
Current tax assets
1,516
1,546
VAT,withholding tax and other tax receivables
1,533
1,233
Properties and other non-current assets held for sale
2
425
196
Assets of disposal groups held for sale
3
1,705
Other
1,638
2,119
Total other non-financial assets
20,609
17,766
1 Refer to Note 17 for moreinformation.2 Refer to Note 28 for moreinformation about the agreement to sellSwisscard AECS GmbH.3 Refer to Note 28 for moreinformation about the sale of SelectPortfolio
Servicing.
Note 14Amounts due to banks and Customer deposits
Amounts due to banks and Customer deposits
USD m
31.12.25
31.12.24
Amounts due to banks
24,434
23,347
Customer deposits
788,367
745,777
of which: demand deposits
259,372
221,797
of which: retail savings / deposits
230,770
182,274
of which: sweep deposits
41,460
41,935
of which: time deposits
1
256,764
299,771
Total amounts due to banks and customer deposits
812,801
769,124
1 Includes customer deposits in UBS AG Jersey Branch and UBS AG Guernsey Branchplaced by UBS Switzerland AG and UBS AG Swiss Branch on behalf of their clients.
Customerdepositsincreased,mainlyreflectingforeigncurrencyeffects.Thiswaspartlyoffsetbynetnewdeposit
outflows, whichmainlyreflectedmaturities oftime depositsthat resultedin ashift offunds fromtimedeposits into
demand deposits and retail savings / deposits.
Note 15Debt issued designated at fair value
USD m
31.12.25
31.12.24
Issued debt instruments
Equity-linked
1
60,303
54,069
Rates-linked
26,324
23,641
Fixed-rate
11,627
14,250
Credit-linked
3,597
5,225
Commodity-linked
3,030
3,592
Other
8,913
7,131
of which: debt that contributes to total loss-absorbing capacity
6,366
4,934
Total debt issued designated at fair value
2
113,794
107,909
of which: issued by UBS AG standalone with original maturity greater than one year
3
90,071
82,491
1 Includes investmentfund unit-linkedinstruments issued.2 As of31 December 2025,
100
% of Totaldebt issued designatedat fair valuewas unsecured(31 December 2024:
100
%).3 Based onoriginal
contractual maturity without considering any early redemption features.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements290
Note 16Debt issued measured at amortized cost
USD m
31.12.25
31.12.24
Short-term debt
1
33,870
30,509
Senior unsecured debt
122,574
133,159
of which: contributes to total loss-absorbing capacity (TLAC)
89,739
92,515
of which: issued by UBS AG standalone with original maturity greater than one year
24,648
32,664
Covered bonds
11,651
8,762
Subordinated debt
17,878
15,030
of which: eligible as high-trigger loss-absorbing additional tier 1 capital instruments
2
17,551
13,084
of which: eligible as low-trigger loss-absorbing additional tier 1 capital instruments
1,245
of which: eligible as non-Basel III-compliant tier 2 capital instruments
207
Debt issued through the Swiss central mortgage institutions
28,278
26,335
Other long-term debt
456
424
Long-term debt
3
180,836
183,709
Total debt issued measured at amortized cost
4,5
214,706
214,219
1 Debt with an original contractual maturity of less than one year, includes mainly certificates of deposit and commercial paper.2 For 31 December 2025 includes USD
13.0
bn (31 December 2024: USD
6.9
bn) that
is, upon the occurrence of a trigger event or a viability event, subject to conversion into ordinary UBS shares.3 Debt with an original contractual maturity greater than or equal to one year. Theclassification of debt
issued into short-term and long-term doesnot consider any early redemption features.4 Net of bifurcated embedded derivatives,the fair value of which wasnot material for the periods presented.5 Except for
Covered bonds (
100
% secured; 31 December 2024:
100
% secured), Debt issued through the Swiss central mortgage institutions (
100
% secured; 31 December 2024:
100
% secured) and Other long-term debt (
97
%
secured; 31 December 2024:
91
% secured),
100
% of the balance was unsecured as of 31 December 2025 (31 December 2024:
100
% unsecured).
The Group uses interestrate and foreign exchangederivatives to manage the risksinherent in certain debtinstruments
held at amortized cost.In some cases, theGroup applies hedgeaccounting for interestrate risk asdiscussed in item 2j
in Note 1a and Note 24.As a result of applying hedgeaccounting, the life-to-date adjustment tothe carrying amount of
debt issuedwas adecrease ofUSD
1.8
bn asof 31December 2025and adecrease ofUSD
3.1
bn asof 31December
2024, reflecting changes in fair value due to interest rate movements.
Subordinated debt consists of unsecureddebt obligations that are contractuallysubordinated in right of paymentto all
otherpresentandfuturenon-subordinatedobligationsoftherespectiveissuingentity.Allofthesubordinateddebt
instruments outstanding as of 31 December 2025 pay a fixed rate of interest.
›
Refer to Note 23 for maturity information
UBSGroupAG,togetherwithUBSAG,hasfullyandunconditionallyguaranteedtheoutstandingUSSecuritiesand
ExchangeCommission(SEC)-registereddebtsecuritiesofCreditSuisse(USA)LLC,whichasof31 December2025
consisted of a singleoutstanding issuance with abalance of USD
742
m maturing in July2032. Credit Suisse (USA)LLC
is an indirect, wholly owned subsidiary of UBS Group AG. UBS GroupAG assumed Credit Suisse Group AG’s obligations
under the guarantee as of 12 June 2023 (i.e. the date on whichthe UBS Group completed the acquisition of the Credit
Suisse Group).In accordancewith theguarantee, ifCredit Suisse(USA) LLCfails tomake atimely paymentunder the
agreements governingsuch debtsecurities, theholders ofthe debtsecurities maydemand paymentfrom eitherUBS
Group AG or UBS AG, without first proceeding against Credit Suisse (USA) LLC.
Note 17Provisions and contingent liabilities
a) Provisions
The table below presents an overview of total provisions and contingent liabilities.
Overview of total provisions and contingent liabilities
USD m
31.12.25
31.12.24
Provisions related to expected credit losses (IFRS 9,
Financial Instruments
)
1
347
320
Provisions related to Credit Suisse loan commitments (IFRS 3,
Business Combinations
)
371
997
Provisions related to litigation, regulatory and similar matters (IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
)
2,200
3,602
Acquisition-related contingent liabilities relating to litigation, regulatory and similar matters (IFRS 3,
Business Combinations
)
531
2,122
Restructuring, real-estate and other provisions (IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
)
1,586
1,368
Total provisions and contingent liabilities
5,035
8,409
1 Refer to Note 9 for more information about ECL provisions recognized for off-balance sheet financial instruments and credit lines.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements291
Note 17Provisions and contingent liabilities (continued)
ThetablebelowpresentsadditionalinformationforprovisionsunderIAS 37,
Provisions,ContingentLiabilitiesand
Contingent Assets
.
Additional information for provisions under IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
USD m
Litigation,
regulatory and
similar matters
1
Restructuring
2
Real estate
3
Other
4
Total 2025
Balance at the beginning of the year
3,602
813
240
315
4,969
Increase in provisions recognized in the income statement
934
5
1,320
17
291
2,561
Release of provisions recognized in the income statement
(555)
6
(297)
(8)
(91)
(952)
Provisions used in conformity with designated purpose
(2,259)
7
(1,016)
(40)
(101)
(3,416)
Reclassifications
295
8
0
0
0
295
Foreign currency translation and other movements
185
71
36
35
328
Balance at the end of the year
2,200
891
245
449
3,785
1 Consists of provisions for losses resultingfrom legal, liability and compliance risks.2 Includes USD
493
m of personnel-related restructuring provisions asof 31 December 2025 (31 December 2024:USD
334
m),
USD
270
m of provisions for onerous contracts related to real estate as of 31 December 2025 (31 December 2024: USD
383
m) and USD
128
m of restructuring provisions for onerous contracts related to technology as
of 31 December 2025 (31 December 2024:USD
96
m).3 Mainly includes provisions for reinstatementcosts with respect to leasedproperties.4 Mainly includes provisions inrelation to employee benefits,VAT,
onerous contracts related to technology,and operational risks.5 Includes a provision for the estimated costsof UBS’s ongoing obligations withthe US Department of Justice as described initem 1 of section b) of
this Note.6 Mainly includes the releases ofprovisions regarding the resolution of the legacymatter related to UBS’s cross-borderbusiness activities in Francein the third quarter of 2025 asdescribed in item 1 of
section b) of this Note andthe resolution reached with the US Departmentof Justice in the second quarter of2025 as described in item 1 ofsection b) of this Note.7 Mainly includes provisions used for thesettlement
of the legacy matter relatedto UBS’s cross-borderbusiness activities in Franceas described in item 1of section b) of thisNote and for theresolutions reached with theUS Department of Justicein the second and
third quarters of 2025 as described in item 1 and item 4 of section b) of this Note.8 Includes reclassifications from IFRS 3 contingent liabilities to IAS 37 provisions.
Restructuring provisions aregenerally recognized asa consequence ofmanagement agreeing tomaterially change the
scope of thebusiness or themanner in whichit is conducted,including changesin managementstructures. Restructuring
provisions relateto onerouscontracts andpersonnel-related provisions.Onerous contractsfor propertyare recognized
when UBSis committedto pay fornon-lease components,such as utilities,service charges, taxesand maintenance,when
aproperty isvacated ornot fullyrecovered fromsub-tenants. Personnel-relatedrestructuring provisionsare generally
usedwithinashortperiodoftime.Thelevelofpersonnel-relatedprovisionscanchangewhen naturalstaffattrition
reduces the number of people affected by a restructuring event, and therefore results in lower estimated costs.
Other provisions mainlyinclude provisionsrelated to onerouscontracts, employeebenefits andoperational risks.Onerous
contracts are recognizedfor certain contractualarrangements where thecosts exceed theeconomic benefits expected
to be received.
Information about provisionsand contingent liabilitieswith respect tolitigation, regulatory andsimilar matters, asa class,
is included in Note 17b. There are no material contingent liabilities associated with the other classes of provisions.
b) Litigation, regulatory and similar matters
The Group operates in a legal and regulatory environment that exposes it to significant litigation and similar risks arising
from disputes and regulatory proceedings. As a result, UBS(which for purposes of this Note may refer to UBSGroup AG
and/oroneormoreofitssubsidiaries,asapplicable)isinvolvedinvariousdisputesandlegalproceedings,including
litigation, arbitration, and regulatory and criminal investigations.
Such mattersare subjectto many uncertainties,and the outcomeand the timingof resolutionare oftendifficultto predict,
particularlyin theearlierstagesof acase. Thereare alsosituationswhere theGroup mayenter intoa settlementagreement.
This mayoccur inorder toavoid theexpense,managementdistractionor reputationalimplicationsof continuingto contest
liability,even for thosematters forwhich the Groupbelieves itshould be exonerated.The uncertaintiesinherent inall such
mattersaffectthe amountand timingof anypotentialoutflowsfor bothmatterswithrespectto whichprovisionshave been
established and other contingentliabilities. The Group makes provisionsfor such matters brought against it when, in the
opinionof managementafterseekinglegaladvice,it ismorelikelythannotthattheGrouphasa presentlegalor constructive
obligation as a result of past events, it is probable that an outflow of resources will be required, and the amount can be
reliably estimated.Where these factorsare otherwise satisfied,a provision may be establishedfor claims that havenot yet
beenassertedagainstthe Group,but areneverthelessexpectedto be,basedon theGroup’sexperiencewithsimilarasserted
claims. If anyof those conditions isnot met, suchmatters result in contingent liabilities. If theamount of anobligation
cannot bereliablyestimated,a liabilityexists thatis not recognizedeven ifan outflowof resourcesis probable.Accordingly,
no provision isestablished even ifthe potential outflowof resources withrespect tosuch matters couldbe significant.
Developments relating toamatter thatoccur afterthe relevantreporting period, butprior tothe issuanceof financial
statements,whichaffectmanagement’sassessmentoftheprovisionforsuchmatter(because,forexample,the
developmentsprovide evidenceof conditionsthat existedat the endof the reportingperiod),are adjustingevents afterthe
reportingperiod underIAS 10 andmust be recognizedin the financialstatementsfor the reportingperiod.
Specificlitigation,regulatoryandothermattersaredescribedbelow,includingallsuchmattersthatmanagement
considerstobematerialandothersthatmanagementbelievestobeofsignificancetotheGroupduetopotential
financial, reputational and other effects. The amount of damages claimed, thesize of a transaction or other information
is provided where available and appropriate in order to assist users in considering the magnitude of potential exposures.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements292
Note 17Provisions and contingent liabilities (continued)
In the case of certain matters below, we state that we have established a provision, and for the other matters, we make
no such statement.When we makethis statement and weexpect disclosure ofthe amount ofa provision toprejudice
seriously our position with other parties in the matter because itwould reveal what UBS believes to be the probable and
reliably estimable outflow,we do notdisclose that amount.In some caseswe are subjectto confidentiality obligations
that precludesuch disclosure.With respectto thematters forwhich wedo notstate whetherwe haveestablished a
provision, either: (a) we have not established a provision; or (b) we have established aprovision but expect disclosure of
that factto prejudiceseriously ourposition withother partiesin thematter becauseit wouldreveal thefact thatUBS
believes an outflow of resources to be probable and reliably estimable.
With respect to certain litigation,regulatory and similar matters forwhich we have established provisions,we are able to
estimate the expected timingof outflows. However, theaggregate amount of theexpected outflows for those matters
for whichwe areable toestimate expected timingis immaterialrelative toour current andexpected levels ofliquidity
over the relevant time periods.
The aggregate amount provisioned for litigation,regulatory and similar matters as a class is disclosed in the “Provisions”
table in Note 17a)above. UBS providesbelow an estimateof the aggregateliability forits litigation,regulatory andsimilar
matters as a classof contingentliabilities.Estimates ofcontingentliabilitiesare inherentlyimprecise anduncertain asthese
estimatesrequire UBSto make speculativelegal assessmentsas to claimsand proceedingsthat involveunique factpatterns
or novellegaltheories,that havenot yetbeen initiatedor areat earlystagesof adjudication,or asto whichallegeddamages
have not beenquantifiedby the claimants.Taking intoaccount theseuncertaintiesand the otherfactors describedherein,
UBS estimatesthe futurelosses thatcould arisefrom litigation,regulatoryand similarmatters disclosedbelow forwhich an
estimateis possible,that arenot coveredby existingprovisions(includingacquisition-relatedcontingentliabilitiesestablished
under IFRS3 in connectionwith theacquisitionof CreditSuisse),are in therange of USD
0
bn to USD
1.5
bn.
Litigation, regulatory and similar matters may alsoresult in non-monetary penalties and consequences. A guiltyplea to,
or conviction of,a crimecould have materialconsequences for UBS.Resolution ofregulatory proceedings mayrequire
UBS to obtain waivers of regulatory disqualifications to maintain certainoperations, may entitle regulatory authorities to
limit,suspendorterminatelicensesandregulatoryauthorizations,andmaypermitfinancialmarketutilitiestolimit,
suspend or terminate UBS’s participation in such utilities. Failure to obtain such waivers, or any limitation, suspension or
termination of licenses, authorizations or participations, could have material consequences for UBS.
The amounts shown inthe table below reflectthe provisions recorded under IFRSAccounting Standards. In connection
with the acquisition of Credit Suisse, UBS Group AG additionally has reflected in its purchase accounting under IFRS 3 a
valuation adjustmentreflecting anestimate ofoutflows relatingto contingentliabilities forall presentobligations included
in the scope of the acquisition at fair value upon closing, even if it is not probable that the contingent liability will result
in anoutflow ofresources, significantlydecreasing therecognition thresholdfor litigationliabilities beyondthose that
generally applyunder IFRSAccounting Standards.The IFRS3 acquisition-relatedcontingent liabilitiesof USD
0.5
bn at
31 December 2025reflect adecrease ofUSD
1.6
bn from31 December 2024mainly asa resultof releasesupon resolution
of the relevant matters.
Provisions for litigation, regulatory and similar matters by business division and in Group Items
1
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core
and Legacy
Group Items
Total 2025
Balance at the beginning of the year
1,271
147
1
266
1,779
139
3,602
Increase in provisions recognized in the income statement
137
2
0
56
662
2
76
934
Release of provisions recognized in the income statement
(309)
3
(39)
3
0
(37)
(169)
3
(1)
(555)
Provisions used in conformity with designated purpose
(913)
4
(111)
4
(1)
(26)
(1,190)
4
(19)
(2,259)
Reclassifications
5
2
0
0
0
293
0
295
Foreign currency translation and other movements
129
18
0
23
14
1
185
Balance at the end of the year
317
16
0
283
1,388
196
2,200
1 Provisions, if any, forthe matters described in items 2 and 9 ofthis Note are recorded in Global WealthManagement. Provisions, if any,for the matters described in items 4, 5, 6,7, 8, 11 and 12 of this Note are
recorded in Non-coreand Legacy.Provisions, ifany, forthe matters describedin item 1of this Noteare allocated betweenGlobal Wealth Management,Personal & CorporateBanking and Non-coreand Legacy.
Provisions, if any,for the matters described initem 3 of this Noteare allocated between theInvestment Bank, Non-core andLegacy and Group Items.Provisions, if any,for the matters describedin item 10 of this
Note are allocated between the Investment Bank and Non-coreand Legacy.2 Includes a provision for the estimated costs of UBS’songoing obligations with the US Department of Justice as describedin item 1 of
this Note.3 Mainly includes the releases of provisionsregarding the resolution of the legacy matterrelated to UBS’s cross-borderbusiness activities in France inthe third quarter of 2025 as describedin item 1 of
this Note and the resolution reached with the USDepartment of Justice in the second quarter of2025 as described in item 1 of thisNote.4 Mainly includes provisions used for the settlementof the legacy matter
related to UBS’s cross-border business activitiesin France as described in item1 of this Note and for the resolutions reached withthe US Department of Justice in the second andthird quarters of 2025 as described
in item 1 and item 4 of this Note.5 Includes reclassifications from IFRS 3 contingent liabilities to IAS 37 provisions.
1. Inquiries regarding cross-border wealth management businesses
Tax and regulatory authorities ina number ofcountries have madeinquiries, servedrequests for informationor examined
employees located in their respective jurisdictions relatingto the cross-border wealth managementservices provided by
UBS, Credit Suisse and other financial institutions, including Credit Suisse offices in the Netherlands and Belgium.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements293
Note 17Provisions and contingent liabilities (continued)
In proceedings in France, UBSAG was found guilty inlower courts of unlawful solicitationof clients on French territory
and aggravated laundering ofthe proceeds oftax fraud in theperiod between 2004 and2012. On appeal, theFrench
Supreme Court,in November2023, upheldthe lowercourt’s decisionregarding unlawfulsolicitation andaggravated
laundering of the proceedsof tax fraud, butoverturned the awards ofpenalties, confiscation and civildamages by the
lowercourt,aggregatingEUR
1.8
bn,andremandedthecasetotheCourtofAppealforaretrialregardingthese
overturned elements.In September2025, UBSAG resolvedthe caseand subsequentlypaid afine ofEUR
730
m and
EUR
105
m in civil damages to the French State.
In May 2014, Credit Suisse AG entered into settlement agreements with theSEC, the Federal Reserve and the New York
Department of FinancialServices and agreedwith the USDepartment of Justice(the DOJ) toplead guilty toconspiring
to aid and assist UStaxpayers in filing false tax returns(the 2014 Plea Agreement). Credit Suisse continuedto report to
andcooperatewithUSauthoritiesinaccordancewithitsobligationsunderthe2014PleaAgreement,includingby
conductingareviewofcross-borderservicesprovidedbyCreditSuisse.Inthisconnection,CreditSuisseprovided
information to US authoritiesregarding potentially undeclared USassets held by clientsat Credit Suisse sincethe 2014
Plea Agreement. In May 2025, Credit Suisse Services AG entered intoa plea agreement (the 2025 Plea Agreement) with
the DOJunder whichit agreedto pleadguilty toone countof conspiracyto aidand assistin thepreparation offalse
incometaxreturnsrelatingtolegacyCreditSuisseaccountsbookedinCreditSuisse’sSwissbookingcenter,thereby
settlingtheinvestigationintoCreditSuisse’simplementationofthe2014PleaAgreement.Inaddition,CreditSuisse
Services AGentered intoa non-prosecutionagreement withthe DOJ(the2025 NPA)relatingto legacyCredit Suisse
accounts booked in Credit Suisse’sSingapore booking center. The 2025Plea Agreement and the 2025NPA provide for
penalties, restitution and forfeiture of USD
511
m in the aggregate. The 2025Plea Agreement and the 2025 NPAinclude
ongoingobligationsofUBStofurnishinformationandcooperatewithDOJ’sinvestigationsoflegacyCreditSuisse
accounts heldby USpersons inits Switzerlandand Singaporebooking centersand relatedaccounts inother booking
centers.
Our balance sheetat 31 December 2025reflected provisions inan amount thatUBS believes tobe appropriate underthe
applicable accountingstandard. Asin thecase ofother mattersfor whichwe haveestablished provisions,the future
outflowofresourcesinrespectofsuchmatterscannotbedeterminedwithcertaintybasedoncurrentlyavailable
information and accordingly may ultimately prove to be substantially greater (or may be less) than the provision that we
have recognized.
2. Madoff
In relation to the Bernard L. Madoff Investment Securities LLC (BMIS) investmentfraud, UBS AG, UBS (Luxembourg) S.A.
(now UBS EuropeSE, Luxembourg branch) andcertain other UBS subsidiarieswere subject toinquiries by a numberof
regulators,includingtheSwissFinancialMarketSupervisoryAuthority(FINMA)andtheLuxembourgCommissionde
Surveillance du SecteurFinancier.Those inquiries concernedtwo third-partyfunds established underLuxembourg law,
substantially all assets of which were with BMIS,as well as certain funds established in offshorejurisdictions with either
direct or indirectexposure to BMIS.These funds faced severelosses, and theLuxembourg funds arein liquidation. The
documentationestablishingbothfundsidentifiesUBSentitiesinvariousroles,includingcustodian,administrator,
manager, distributor and promoter,and indicates that UBS employees served as board members.
In 2009 and 2010, theliquidators of the two Luxembourg fundsfiled claims against UBS entities, non-UBSentities and
certain individuals,including currentand formerUBS employees,seeking amountstotaling approximatelyEUR
2.1
bn,
which includes amounts that the funds may be held liable to pay the trustee for the liquidation of BMIS (BMIS Trustee).
A large number of alleged beneficiarieshave filed claims against UBS entities(and non-UBS entities) for purported losses
relating tothe Madofffraud. Themajority ofthese caseshave beendecided infavor ofUBS ordismissed forwant of
prosecution.
In the US, theBMIS Trustee filed claimsagainst UBS entities, amongothers, in relation tothe two Luxembourg fundsand
one of the offshore funds. The total amount claimed against all defendants in these actions was not less than USD
2
bn.
In 2014,the USSupreme Courtrejected theBMIS Trustee’smotion forleave toappeal decisions,dismissing allclaims
against UBS defendants except those for therecovery of approximately USD
125
m of payments alleged to be fraudulent
conveyances andpreference payments.Similar claimshave beenfiled againstCredit Suisseentities seekingto recover
redemption payments.In 2016,the bankruptcycourt dismissedthese claimsagainst theUBS entitiesand mostof the
Credit Suisse entities. In2019, the Court ofAppeals reversed the dismissalof the BMIS Trustee’sremaining claims. The
cases were remanded to the Bankruptcy Court for further proceedings.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements294
Note 17Provisions and contingent liabilities (continued)
3. Foreign exchange, LIBOR and benchmark rates, and other trading practices
Foreign-exchange-relatedregulatorymatters:
Beginningin2013,numerousauthoritiescommencedinvestigations
concerningpossiblemanipulationofforeignexchangemarketsandpreciousmetalsprices.Asaresultofthese
investigations, UBS entered intoresolutions with Swiss, USand UK regulators andthe European Commission. UBSwas
granted conditional immunity by the Antitrust Division of the DOJ and by authorities in other jurisdictions in connection
with potentialcompetition lawviolations relatingto foreignexchange andprecious metalsbusinesses. InDecember 2021,
the European Commission issued a decision imposing a fine of EUR
83.3
m on Credit Suisse entities based on findings of
anticompetitive practices inthe foreign exchangemarket. UBS receivedleniency and accordinglyno fine wasassessed.
CreditSuisseappealedthedecisiontotheEuropeanGeneralCourtand,inJuly2025,thecourtissuedajudgment
reducing the fine to EUR
28.9
m. The judgment is now final.
Foreign-exchange-related civillitigation:
Putative classactions havebeen filedsince 2013in USfederal courtsand inother
jurisdictionsagainstUBS,CreditSuisseandotherbanksonbehalfofpersonswhoengagedinforeigncurrency
transactions with any ofthe defendant banks. UBSand Credit Suisse have resolvedUS federal court classactions relating
toforeigncurrencytransactionswiththedefendantbanksandpersonswhotransactedinforeignexchangefutures
contracts and options on suchfutures. Certain class members haveexcluded themselves from that settlement andfiled
individual actionsinUSand Englishcourts againstUBS, CreditSuisse andother banks,alleging violationsofUSand
European competition lawsand unjust enrichment.UBS, Credit Suisseand the otherbanks have resolvedthose individual
matters.In addition,Credit SuisseandUBS, togetherwithother financialinstitutions, werenamedin aconsolidated
putative class action in Israel, which made allegations similar to those made in the actions pursued in other jurisdictions.
CreditSuisseandUBSenteredintoagreementstosettleallclaimsinthisactioninApril2022andFebruary2024,
respectively. Credit Suisse’s settlement received court approval and became final in May 2025. UBS’s settlement remains
subject to court approval.
LIBORandotherbenchmark-relatedregulatorymatters:
Numerousgovernmentagenciesconductedinvestigations
regarding potential improperattempts by UBS,among others, tomanipulate LIBOR andother benchmark ratesat certain
times. UBS andCredit Suisse reachedsettlements or otherwiseconcluded investigations relating tobenchmark interest
rates with theinvestigating authorities. UBSwas granted conditional leniencyor conditional immunityfrom authorities
in certain jurisdictions, including the Antitrust Divisionof the DOJ, in connection with potentialantitrust or competition
law violations related to certain rates.In December 2025, the Swiss CompetitionCommission (WEKO) announced that it
had reached a final resolution with UBS.
LIBOR and other benchmark-related civillitigation:
A number of putativeclass actions and otheractions are pending in
the federalcourts inNew Yorkagainst UBSand numerousother bankson behalfof partieswho transactedin certain
interest rate benchmark-basedderivatives. Alsopending in theUS and inother jurisdictionsare a numberof otheractions
asserting losses related tovarious products whose interestrates were linked toLIBOR and other benchmarks,including
adjustableratemortgages,preferredanddebtsecurities,bondspledgedascollateral,loans,depositoryaccounts,
investmentsandotherinterest-bearinginstruments.Thecomplaintsallegemanipulation,throughvariousmeans,of
certainbenchmarkinterestrates,includingUSD LIBOR,YenLIBOR,EURIBOR,CHF LIBOR,andGBPLIBORandseek
unspecified compensatory and other damages under various legal theories.
USD LIBOR class andindividual actions inthe US:
Beginning in 2013,putative class actionswere filed inUS federal district
courts (and subsequently consolidated inthe US District Court forthe Southern District of NewYork (SDNY)) by plaintiffs
whoengagedinover-the-counterinstruments,exchange-tradedEurodollarfuturesandoptions,bondsorloansthat
referenced USD LIBOR. The complaintsallege violations of antitrustlaw and theCommodities Exchange Act, aswell as
breach of contractand unjust enrichment.Following various rulingsby the SDNYand the USCourt of Appealsfor the
Second Circuit dismissing certainof the causes of actionand allowing others to proceed,one class action withrespect to
transactions in over-the-counter instruments and several actions brought by individual plaintiffs proceeded in the district
court.InSeptember2025,thedistrictcourtgranteddefendants’motionforsummaryjudgmentastoallremaining
actions. Plaintiffs have appealed. UBS and CreditSuisse previously entered into settlement agreements inrespect of the
classactionsrelatingtoexchange-tradedinstruments,bondsandloans.Thesesettlementshavereceivedfinalcourt
approval, and the actions have been dismissed as to UBS and Credit Suisse.
Other benchmarkclass actionsin theUS:
The YenLIBOR/Euroyen TIBOR,EURIBOR andGBP LIBORactions havebeen
dismissed. Plaintiffshave appealedthe dismissals.In August2025, theSecond Circuitaffirmed inpart andreversed in
part thedistrict court’sdismissal ofthe complaintin theEURIBOR action,returning theaction tothe districtcourt. In
September 2025,the SecondCircuit affirmedthe dismissalof thecomplaint inthe GBPLIBOR action;the matterhas
concluded.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements295
Note 17Provisions and contingent liabilities (continued)
In January2023, defendantsmoved todismiss thecomplaint inthe CHFLIBOR action.In 2023,the courtapproved a
settlement by Credit Suisse of the claims against it in this matter. In September 2025, the court dismissed the complaint
against the remaining defendants, including UBS.
Government bonds:
In 2021, the European Commissionissued a decision finding that UBSand six other banks breached
EuropeanUnionantitrustrulesbetween2007and2011relatingtoEuropeangovernmentbonds.TheEuropean
Commission finedUBS EUR
172
m, whichamount wasconfirmed onappeal inMarch 2025.UBS hasappealed tothe
European Court of Justice.
Credit default swap auction litigation –
In June 2021, Credit Suisse, alongwith other banks and entities, wasnamed in a
putative class action filed infederal court in New Mexicoalleging manipulation of creditdefault swap (CDS) finalauction
prices. Defendants fileda motion toenforce a previousCDS classaction settlement inthe SDNY. InJanuary 2024,the
SDNY ruled that, to the extent claimsin the New Mexico action arisefrom conduct prior to 30 June 2014, thoseclaims
are barredby theSDNY settlement.The plaintiffsappealed and,in May2025, theSecond Circuitaffirmed theSDNY
decision.
Defendants filed a motion for judgment on the pleadings in December 2025.
With respect toadditional matters andjurisdictions not encompassed bythe settlements andorders referred toabove,
UBS’s balance sheet at 31 December 2025 reflected a provision in an amount that UBS believes to beappropriate under
the applicable accounting standard. As in the case of other matters for which we have establishedprovisions, the future
outflowofresourcesinrespectofsuchmatterscannotbedeterminedwithcertaintybasedoncurrentlyavailable
information and accordingly may ultimately prove to be substantially greater (or may be less) than the provision that we
have recognized.
4. Mortgage-related matters
Government and regulatory related matters: DOJ RMBS settlement – In January 2017, Credit Suisse Securities (USA) LLC
(CSS LLC) andits currentand former USsubsidiaries and USaffiliates reacheda settlement withthe DOJrelated toits
legacyResidentialMortgage-BackedSecurities(RMBS)business,abusinessconductedthrough2007.Thesettlement
resolvedpotentialcivilclaimsbytheDOJrelatedtocertainofthoseCreditSuisseentities’packaging,marketing,
structuring,arrangement,underwriting,issuanceandsaleofRMBS.Pursuanttothetermsofthesettlementacivil
monetary penalty was paid tothe DOJ in January 2017.The settlement also required the Credit Suisseentities to provide
certain levelsof consumerrelief measures,including affordablehousing paymentsand loanforgiveness, andthe DOJ
and CreditSuisse agreedto theappointment ofan independentmonitor tooversee thecompletion ofthe consumer
relief requirements of the settlement. In August 2025, CSS LLC entered into an agreement withthe DOJ to resolve all of
Credit Suisse’s outstanding Consumer Relief Obligations under the 2017 settlement by paying USD
300
m.
Civil litigation: Repurchase litigations –Credit Suisse affiliates are defendantsin various civil litigation mattersrelated to
their roles asissuer, sponsor, depositor,underwriter and/or servicer ofRMBS transactions. These casescurrently include
repurchaseactionsbyRMBStrustsand/ortrustees,inwhichplaintiffsgenerallyallegebreachedrepresentationsand
warranties in respect of mortgage loans and failure to repurchase such mortgage loans as required under the applicable
agreements. The amounts disclosed below do not reflect actual realized plaintiff losses to date. Unless otherwise stated,
these amounts reflect the original unpaid principal balance amounts as alleged in these actions.
DLJ MortgageCapital, Inc. (DLJ)is a defendantin New YorkState court infive actions: Anaction brought byAsset Backed
SecuritiesCorporationHomeEquityLoanTrust,Series2006-HE7allegesdamagesofnotlessthanUSD
374
m.In
December 2023, the trial courtgranted in part DLJ’s motionto dismiss, dismissing with prejudiceall notice-based claims.
On appeal, the appellatecourt modified the trialcourt’s dismissal in April 2025to reinstate certain ofplaintiff’s notice-
based claims and otherwisedismissed plaintiff’s claims. Plaintiffhas sought leave fromthe New York Courtof Appeals to
further appeal thedismissal of certainof its claims.An action byHome Equity AssetTrust, Series 2006-8,alleges damages
of not less than USD
436
m. An action by Home Equity Asset Trust 2007-1 alleges damages of not lessthan USD
420
m.
In August 2025, the partiesagreed to a settlement toresolve this litigation for USD
66.39
m. The settlement has received
court approval and isfinal. An actionby Home EquityAsset Trust 2007-2alleges damages of notless than USD
495
m.
An action by CSMC Asset-Backed Trust 2007-NC1 does not allege a damages amount.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements296
Note 17Provisions and contingent liabilities (continued)
5. ATA litigation
Since November 2014, a series of lawsuits have been filed against a number of banks, including Credit Suisse, in the US
District Court forthe Eastern Districtof NewYork(EDNY) andthe SDNYalleging claimsunder the UnitedStates Anti-
TerrorismAct (ATA) and the Justice Against Sponsors of TerrorismAct. The plaintiffs in each of these lawsuitsare, or are
relativesof,victimsofvariousterroristattacksinIraqandallegeaconspiracyand/oraidingandabettingbasedon
allegationsthatvariousinternationalfinancialinstitutions,includingthedefendants,agreedtoalter,falsifyoromit
informationfrompaymentmessagesthatinvolvedIranianpartiesfortheexpresspurposeofconcealingtheIranian
parties’ financialactivities andtransactions fromdetection byUS authorities.The lawsuitsallege thatthis conducthas
made it possible for Iran to transfer funds to Hezbollahand other terrorist organizations actively engaged in harming US
militarypersonnel andcivilians.InJanuary2023,theSecondCircuitaffirmedaSeptember2019rulingbytheEDNY
granting defendants’ motion to dismiss the first filed lawsuit. In October 2023, the USSupreme Court denied plaintiffs’
petition for a writ of certiorari,and in September 2025 the EDNY deniedplaintiffs’ motion to vacate the judgment;the
matter hasconcluded. Of theother sevencases, fourare stayed,including onethat wasdismissed asto CreditSuisse
and most ofthe bank defendantsprior to entryof the stay,and in threecases defendants movedto dismiss plaintiffs’
amended complaints.
6. Customer account matters
Several clients have claimed that a former relationship manager in Switzerland had exceeded his investment authority in
the managementof theirportfolios, resultingin excessiveconcentrations ofcertain exposuresand investmentlosses.
Credit Suisse AG has investigated the claims, as well as transactions among the clients. Credit Suisse AGfiled a criminal
complaintagainsttheformerrelationshipmanagerwiththeGenevaProsecutor’sOfficeuponwhichtheprosecutor
initiated acriminal investigation.Several clientsof theformer relationshipmanager alsofiled criminalcomplaints with
the Geneva Prosecutor’s Office. In February 2018, theformer relationship manager was sentenced to fiveyears in prison
bytheGenevacriminalcourtforfraud,forgeryandcriminalmismanagementandorderedtopaydamagesof
approximately USD
130
m. Onappeal, theCriminal Courtof Appealsof Genevaand, subsequently,the SwissFederal
Supreme Court upheld the main findings of the Geneva criminal court.
Civil lawsuits have been initiated against Credit Suisse AG and / or certain affiliates in various jurisdictions, based on the
findings established in the criminal proceedings against the former relationship manager.
InSingapore,inanow-concludedcivillawsuit,CreditSuisseTrustLimitedwasorderedtopayUSD
461
m,including
interest and costs.
In Bermuda, in the civil lawsuit brought against Credit Suisse Life (Bermuda) Ltd., the Supreme Court of Bermuda issued
a judgment awarding damages of USD
607.35
m to the plaintiff. Credit SuisseLife (Bermuda) Ltd. appealed thedecision.
In June2023, theBermuda Courtof Appealconfirmed theaward andthe SupremeCourt ofBermuda’s findingthat
Credit SuisseLife (Bermuda)Ltd. breachedits contractualand fiduciaryduties, butoverturned thefinding thatCredit
Suisse Life(Bermuda) Ltd.made fraudulentmisrepresentations. InMarch 2024,Credit SuisseLife (Bermuda)Ltd. was
granted leave toappeal the judgmentto the JudicialCommittee of thePrivy Council anda hearing onthe appeal was
held in June 2025. The Bermuda Court ofAppeal also ordered that the current stay continuepending determination of
the appeal on the condition that the damages awarded, plus interest calculated at the Bermuda statutory rate of
3.5
%,
remain in the escrow account. InNovember 2025, the Judicial Committee ofthe Privy Council issued itsfinal judgment
on the appeal, denying Credit Suisse Life (Bermuda) Ltd.’s appeal on liability, but partially granting its appeal concerning
the quantum of damages and directing the parties to recalculate damages.
In Switzerland,certain civillawsuits havebeen commencedagainst CreditSuisse AG andUBS AG(as thesuccessor of
Credit Suisse AG) in the Court of First Instance of Geneva since March 2023.
7. Mozambique matter
Credit Suisse was subject to investigationsby regulatory and enforcement authorities, aswell as civil litigation, regarding
certainCreditSuisseentities’arrangementofloanfinancingtoMozambiquestateenterprises,ProindicusS.A.and
EmpresaMoçambicanadeAtumS.A.(EMATUM),adistributiontoprivateinvestorsofloanparticipationnotes(LPN)
related tothe EMATUMfinancing inSeptember 2013,and certainCredit Suisseentities’ subsequentrole inarranging
the exchange of thoseLPNs for Eurobondsissued by the Republicof Mozambique. In 2019,three former CreditSuisse
employees pleaded guilty inthe EDNY to acceptingimproper personal benefits in connectionwith financing transactions
carried out with two Mozambique state enterprises.
In October 2021, CreditSuisse reached settlements withthe DOJ, the USSecurities and ExchangeCommission (SEC), the
UK FinancialConduct Authority(FCA) andFINMA toresolve inquiries bythese agencies,including findingsthat Credit
Suisse failed to appropriately organize and conductits business with due skill andcare, and manage risks. Credit Suisse
Group AG entered intoa three-year Deferred ProsecutionAgreement (DPA) with theDOJ in connection with thecriminal
information charging Credit Suisse GroupAG with conspiracy to commit wirefraud and Credit Suisse Securities(Europe)
Limited (CSSEL) enteredinto a PleaAgreement and pleaded guiltyto one countof conspiracy toviolate the USfederal
wirefraudstatute. UnderthetermsoftheDPA, UBSGroupAG(as successortoCreditSuisse GroupAG)continued
compliance enhancementand remediationefforts agreedby CreditSuisse, andundertake additionalmeasures asoutlined
in the DPA.In January 2025, aspermitted under the termsof the DPA,the DOJ electedto extend theterm of theDPA
until January 2026.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements297
Note 17Provisions and contingent liabilities (continued)
8. ETN-related litigation
XIV litigation:Since March2018, threeclass actioncomplaints werefiled inthe SDNYon behalfof aputative classof
purchasers of VelocityShares Daily Inverse VIX Short-TermExchange Traded Notes linked to the S&P 500 VIX Short-Term
Futures Index (XIVETNs). The complaintshave been consolidatedand asserts claimsagainst Credit Suissefor violations
of various anti-fraudand anti-manipulation provisionsof US securitieslaws arising froma decline inthe value ofXIV ETNs
in February2018. Onappeal froman orderof theSDNY dismissingall claims,the SecondCircuit issuedan orderthat
reinstated a portion of theclaims. In decisions inMarch 2023 and February2025, the court grantedclass certification for
two of the three classes proposed by plaintiffs and denied class certification of the third proposed class.
9. Credit Suisse anti-money laundering matters
In December 2020, the Swiss Office of theAttorney General brought charges against Credit SuisseAG and other parties
concerning the diligence andcontrols applied toa historical relationshipwith Bulgarian formerclients who arealleged
tohavelaunderedfundsthroughCreditSuisseAGaccounts.InJune2022,followingatrial,CreditSuisseAGwas
convictedintheSwissFederalCriminalCourtofcertainhistoricalorganizationalinadequaciesinitsanti-money-
laundering frameworkand orderedto paya fineof CHF
2
m. Inaddition, thecourt seizedcertain clientassets inthe
amountofapproximatelyCHF
12
mandorderedCreditSuisseAGtopayacompensatoryclaimintheamountof
approximately CHF
19
m. Credit SuisseAG appealedthe decisionto theChamber ofAppeals ofthe SwissFederal Criminal
Court (Chamber of Appeals). Following themerger of UBS AG andCredit Suisse AG, UBS AGconfirmed the appeal. In
November 2024, the Chamber of Appeals acquitted UBS AG and annulled the fine andcompensatory claim ordered by
the first instancecourt. Subsequently, the Office of theAttorney Generalhas appealed thejudgment to theSwiss Federal
Supreme Court.UBS hasalso appealed, limitedto theissue ofwhether asuccessor entity bymerger canbe criminally
liable for acts ofthe predecessor entity.In July 2025, theSwiss Federal SupremeCourt remanded thecase back to the
Chamber of Appealsfor a fulland reasoned judgment. InMarch 2026, theChamber of Appealsissued a judgmentagain
acquitting UBSAG. Thisjudgment maybe appealedby theparties tothe SwissFederal SupremeCourt. Separately,in
November 2025, the Swiss Office of the Attorney General filed criminal charges against UBS Group and UBS AG, as the
successors to CreditSuisse GroupAG andCredit SuisseAG, respectively,alleging thatCredit Suissefailed tomaintain
appropriatecontrolstodetect andpreventmoneylaundering inconnectionwith certainpayments fromaccounts at
Credit Suisse by parties associated with the Mozambique transactions between 2013and 2016.
10. Archegos
Credit Suisse and UBS have receivedrequests for documents and informationin connection with inquiries, investigations
and / oractionsrelatingto theirrelationshipswithArchegosCapital Management(Archegos),includingfromFINMA
(assisted bya thirdparty appointedby FINMA),the DOJ,the SEC,the USFederal Reserve,the USCommodity Futures
Trading Commission (CFTC), the US Senate Banking Committee,the Prudential Regulation Authority (PRA),the FCA, the
WEKO, the Hong Kong CompetitionCommission and other regulatoryand governmental agencies. UBS is cooperating
with theauthorities inthese matters.In July2023, CSIand CSSELentered intoa settlementagreement withthe PRA
providingfortheresolutionofthePRA’sinvestigation.AlsoinJuly2023,FINMAissuedadecreeorderingremedial
measures and the FederalReserve Board issuedan Order to Ceaseand Desist. Underthe terms ofthe order, Credit Suisse
paidacivilmoneypenaltyandagreedtoundertakecertainremedialmeasuresrelatingtocounterpartycreditrisk
management, liquidityrisk managementand non-financialrisk management,as wellas enhancementsto boardoversight
and governance.UBS Group, asthe legalsuccessor toCredit Suisse GroupAG, isa partyto theFINMA decree andFederal
Reserve Board Cease and Desist Order.
Civil actions relatingto Credit Suisse’srelationship with Archegoshave been filedagainst Credit Suisseand / or certain
officers and directors, including claims for breaches of fiduciary duties. In one such case, the parties agreed in July 2025
to a settlement ofUSD
115
m that remains subjectto court approval. Becausethe action was broughtby shareholders on
behalf of and for the benefit of Credit Suisse, after deducting any Court-awarded attorneys’ fees and expenses and any
applicable taxes, the cashrecovery for the settlement willgo to UBS, as successorto Credit Suisse, and willresult in a net
recovery for UBS.
11. Credit Suisse financial disclosures
CreditSuisseGroupAGandcertaindirectors,officersandexecutiveshavebeennamedinsecuritiesclassaction
complaints pendingin theSDNY andNew Jerseyfederal court.These complaints,filed since2023 onbehalf ofpurchasers
ofCreditSuisseshares,additionaltier 1capitalnotes,andothersecurities,allegethatdefendantsmademisleading
statements regarding:(i) customer outflowsin late2022 andearly 2023;(ii) the adequacyof CreditSuisse’s financial
reporting controls; and (iii) theadequacy of Credit Suisse’s riskmanagement processes, and include allegationsrelating
to Credit Suisse Group AG’s merger withUBS Group AG. As of November 2025,the SDNY certified classes intwo cases.
CreditSuissehasreceivedrequestsfordocumentsandinformationfromregulatoryandgovernmentalagenciesin
connection withinquiries, investigationsand/or actionsrelating tothese matters,as wellas forother statementsregarding
Credit Suisse’s financial condition, including from the SEC, the DOJ andFINMA. UBS is cooperating with the authorities
in these matters.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements298
Note 17Provisions and contingent liabilities (continued)
12. Merger-related litigation
Certain Credit Suisse GroupAG affiliates and certaindirectors, officers and executiveshave been named in classaction
complaints pending inthe SDNY.One complaint, broughton behalf ofCredit Suisseshareholders, alleges breachesof
fiduciarydutyunderSwisslawandcivilRICOclaimsunderUSfederallaw.InFebruary2024,thecourtgranted
defendants’ motionsto dismissthe civilRICO claimsand conditionallydismissed theSwiss lawclaims pendingdefendants’
acceptanceofjurisdictioninSwitzerland.InMarch2024,havingreceivedconsentstoSwissjurisdictionfromall
defendants servedwith thecomplaint, thecourt dismissedthe Swisslaw claimsagainst thosedefendants. InFebruary
2026,theSecondCircuitCourtofAppealsaffirmedthedismissal.Plaintiffshaveappealedthedismissal.Additional
complaints, brought onbehalf ofholders ofCredit Suisse additionaltier 1 capital notes(AT1 noteholders) allegebreaches
of fiduciaryduty underSwiss law,arising froma seriesof scandalsand misconduct,which ledto CreditSuisse Group
AG’smergerwithUBSGroupAG,causinglossestoshareholdersandAT1noteholders.Motionstodismissthese
complaints weregrantedin March2024 andSeptember 2024on thebasisthatSwitzerland isthemost appropriate
forum for litigation. Plaintiffs in two of these cases appealed the dismissal and in January 2026 withdrew their appeals.
Note 18Other liabilities
a) Other financial liabilities measured at amortized cost
USD m
31.12.25
31.12.24
Other accrued expenses
2,973
3,140
Accrued interest expenses
4,778
5,876
Settlement and clearing accounts
1,508
1,944
Lease liabilities
4,257
4,597
Other
2,346
5,476
Total other financial liabilities measured at amortized cost
15,862
21,033
b) Other financial liabilities designated at fair value
USD m
31.12.25
31.12.24
Financial liabilities related to unit-linked investment contracts
21,052
17,203
Securities financing transactions
3,848
5,798
Over-the-counter debt instruments and other
3,284
5,698
Total other financial liabilities designated at fair value
28,184
28,699
c) Other non-financial liabilities
USD m
31.12.25
31.12.24
Compensation-related liabilities
10,484
9,592
of which: Deferred Contingent Capital Plan
2,130
1,847
of which: financial advisor compensation plans
1,799
1,621
of which: cash awards and other compensation plans
4,731
4,393
of which: net defined benefit liability
710
763
of which: other compensation-related liabilities
1
1,114
969
Current tax liabilities
1,152
1,671
Deferred tax liabilities
471
340
VAT,withholding tax and other tax payables
1,040
1,156
Deferred income
683
555
Liabilities of disposal groups held for sale
2
1,199
Other
140
320
Total other non-financial liabilities
13,970
14,834
1 Includes liabilities for payroll taxes and untaken vacation.2 Refer to Note 28 for more information about the sale of Select Portfolio Servicing.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements299
Additional information
Note 19Expected credit loss measurement
a) Expected credit losses in the period
Total net creditloss expenseswere USD
524
m in2025, reflectingnet creditloss expensesof USD
6
m relatedto stage1 and
2 positions and net credit loss expenses of USD
518
m related to credit-impaired (stage 3 and purchased credit-impaired)
positions,predominantlyin the corporatelending portfolios.
›
Refer to Note 19b for more information regarding changes to ECL models,scenarios, scenario weights and post-model
adjustments and to Note 19c for more information regarding thedevelopment of ECL allowances and provisions
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Purchased
Total
For the year ended 31.12.25
Global Wealth Management
(12)
60
0
48
Personal & Corporate Banking
1
338
1
339
Asset Management
0
1
0
1
Investment Bank
17
116
0
133
Non-core and Legacy
(2)
0
2
(1)
Group Items
2
0
0
2
Total
6
516
2
524
For the year ended 31.12.24
Global Wealth Management
(60)
41
3
(16)
Personal & Corporate Banking
(63)
487
(21)
404
Asset Management
(1)
0
0
(1)
Investment Bank
56
42
0
97
Non-core and Legacy
(30)
42
57
69
Group Items
(2)
0
0
(2)
Total
(99)
612
39
551
For the year ended 31.12.23
Global Wealth Management
127
27
13
166
Personal & Corporate Banking
271
183
27
482
Asset Management
1
(1)
0
0
Investment Bank
110
78
2
190
Non-core and Legacy
78
91
25
193
Group Items
5
0
0
6
Total
593
378
67
1,037
b) Changesto ECL models,scenarios,scenario weightsand key inputs
Refer toNote 1a forinformation about theprinciples governing expected creditloss (ECL)models, scenarios, scenario
weights andkey inputs.
Governance
Comprehensivecross-functionaland cross-divisionalgovernanceprocessesare inplace andare usedto discussand approve
scenario updates and weights, toassess whether significant increases in credit riskresulted in stage transfers, toreview
model outputsand to reachconclusionsregarding post-modeladjustments.
Model changes
During2025,theregularandtheCreditSuisseintegration-relatedmodelreviewandenhancementprocessesledto
adjustments inthe probabilityof default(PD), lossgiven default(LGD) andcredit conversionfactor (CCF)models, resulting
in net releases ofUSD
13
m. This included USD
22
m releases relatedto real estate lending,driven by USD
33
m releases
inSwitzerland,partlyoffsetbyUSD
11
mexpensesintheUS.ThecorporatelendingportfoliocontributedUSD
3
m
expenses (USD
11
m expenses inPersonal & CorporateBanking, partly offsetby USD
8
m releases inthe Investment Bank),
with USD
6
m expenses in the remaining segments.
Scenario andkey inputupdates
During 2025, the scenarios and related macroeconomic factors were updated from those applied at the end of 2024 by
consideringtheprevailingeconomicandpoliticalconditionsanduncertainty.Thereviewfocusedoneventsthat
significantly changedthe economicoutlook duringthe year:an escalationof tradeand geopoliticaltensions globally,
along with uncertainty regarding the inflation and growth outlook leading to divergent monetary policy paths.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements300
Note 19Expected credit loss measurement (continued)
Baseline scenario:
the projections of thebaseline scenario, which arealigned to the economicand market assumptions
used for UBS’s business planning purposes, are broadly in linewith external benchmarks, such as those from Bloomberg
Consensus, Oxford Economics and the InternationalMonetary Fund World Economic Outlook. The expectationfor 2026
is that the global economy will navigate a soft patch in the first half of the year, as tariffs still feed through to prices and
exports, but accelerate inthe second half ofthe year, supported byimproved confidence, a positivecredit impulse and
several major advanced economies benefiting from fiscalstimulus. In the US, inflationis likely to remain elevatedin the
first half ofthe year andweigh on realincomes, but thesupport from theOne Big BeautifulBill should emergeover time.
Weakness in thelabor market shouldprompt the FederalReserve to delivermore cuts inthe next fewmeetings, although
in ameasured fashion,as inflationhovering aboveits targetremains arisk.
Long-term interestrates inkey developed
markets are expected to riseslightly over the rest ofthe year. House price growthfor 2026 is supported bystrong data
in 2025. However, less price upside is expected in the following months as the economy weakens.
Moderatestagflationcrisis scenario:
The firsthypotheticaldownsidescenariois themoderatestagflationcrisis scenario.The
moderatestagflationcrisis scenarioassumesheightenedgeopoliticaland tradetensionsthat disruptsupplychains anddrive
inflationarypressures. Despitesigns of slowingglobal demand,resilient labormarkets sustainupward wage pressuresand
escalating geopoliticaltensions prompt central banks to hike interest ratesand actively reduce their balance sheets.Yield
curves steepenand the globaleconomy andfinancialmarkets arenegativelyaffected.
Global trade warscenario:
The second downsidescenario is alignedwith the 2026 Groupbinding stressscenario and was
updated in2025 toreflect relevantrisks. Theglobal tradewar scenarioassumes heightened geopolitical tensionsand
explores tailrisksconcerning USprotectionistpolicies andretaliation bytheUS’strading partners.USpolicies solidify
Switzerland asasafe-haven country andthe USdollar depreciates againstthe Swissfranc. Thescenario assumes that
disruptionsin globaltradecontributeto risinginflationand alargeeconomiccontraction.Despiterisinginflation,the Federal
Reserve makes measuredrate cuts,and othermajor centralbanks in advancedeconomiesfollow thesame course.
Asset priceappreciationscenario:
The upside scenariois based on positivedevelopments,such as an easingof geopolitical
tensions acrossthe globe,less fear of a Chinese hardlanding, fallingoil prices and resilientlabor markets,which enhance
economicstabilityand confidence.Under thesecircumstances,the adoptionof productivity-enhancingtechnologiesboosts
economicgrowth andstrengthensrisk appetite.As a result,asset pricesrise sustainably.
The table below details the key assumptions for the four scenarios applied as of 31 December 2025.
Scenario generation, review process and governance
A team of economists within Group Risk Control develops the forward-looking macroeconomic assumptions, supported
and challenged by experts from relevant functions.
The scenarios,their weightsand thekey macroeconomicand otherfactors aresubject toa criticalassessment bythe
IFRS 9 ScenarioSounding Sessionsand ECLManagement Forum,which includesenior managementfrom GroupRisk
and Group Finance. Animportant consideration in thereview is whether theremay be particular creditrisk concerns that
are not possible to address systematically, requiring post-model adjustments for stage allocation and ECL allowances.
The Group ChiefFinancial Officer andthe Group ChiefRisk Officer ratifythe decisions takenby the ECLManagement
Forum.
Scenario weights and post-model adjustments
The assetprice appreciationscenario was added,two scenarios weresubstituted and-weights wereadjusted over the
courseof2025.Themilddebtcrisisscenariowasreplacedbythemoderatestagflationcrisisscenario,andthe
stagflationary geopolitical crisis scenario was replaced by the global trade war scenario. Scenario weights were adjusted
during2025in linewiththeshiftin risksandtheircoverage inthe scenarios.Theassetprice appreciation,baseline,
moderate stagflationcrisis andglobal tradewar scenarioshad a
5
%,
50
%,
30
% and
15
% weight,respectively,as of
31 December 2025.
However, unquantifiable risks continueto be relevant, asgeopolitical risks remained highin 2025, and theimpact on the
world economyfrom escalationswith unforeseeableconsequences couldbe severe.In thenear term,this uncertainty
relates primarilyto developmentsin USdomestic andforeign policies,the Russia–Ukrainewar, Europeansecurity, and
regional conflicts.
Models, whichare basedon supportablestatistical informationfrom pastexperiences regardinginterdependencies of
macroeconomic factors andtheir implications forcredit risk portfolios,cannot comprehensively reflectsuch extraordinary
events, such asa pandemic ora fundamental changein the worldpolitical order. Ratherthan creating multipleadditional
scenarios to attempt to gauge these risks and applying model parameters that lack supportable information and cannot
be robustly validated, management continued to also apply post-modeladjustments.
Totalstage1 and2allowancesandprovisionswereUSD
1,004
masof31 December2025andincludedpost-model
adjustments of USD
237
m (31 December 2024: USD
235
m). Post-model adjustments were made to address uncertainty
levels, including those arising fromthe broad geopolitical uncertaintyand US trade tariffs, andmainly relate to corporate
lending books in Switzerland. In 2024, post-model adjustments also addressed uncertainty levels to align Credit Suisse’s
model outputs with those expected under the comparable UBS models.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements301
Note 19Expected credit loss measurement (continued)
Scenario weights were as illustrated in the table below.
Economic scenarios and weights applied
Assigned weights in %
ECL scenario
31.12.25
31.12.24
Asset price appreciation / inflation
5.0
0.0
Baseline
50.0
60.0
Mild debt crisis
0.0
15.0
Moderate stagflation crisis
30.0
0.0
Stagflationary geopolitical crisis
0.0
25.0
Global trade war
15.0
0.0
Scenario assumptions
One year
Three years cumulative
31.12.25
Asset price
appreciation
Baseline
Moderate
stagflation
crisis
Global trade
war
Asset price
appreciation
Baseline
Moderate
stagflation
crisis
Global trade
war
Real GDP growth (percentage change)
United States
3.5
2.0
(1.4)
(6.8)
8.6
6.6
0.5
(2.7)
Eurozone
2.5
1.5
(1.6)
(7.9)
5.6
3.8
(0.6)
(4.6)
Switzerland
2.7
1.9
(1.2)
(6.3)
6.2
5.2
0.0
(3.0)
Consumer price index (percentage change)
United States
2.0
2.6
6.0
4.8
7.7
7.0
14.6
11.0
Eurozone
1.8
1.8
5.2
4.5
7.0
6.0
12.9
10.5
Switzerland
1.4
0.6
4.0
3.7
5.7
2.4
10.3
9.0
Unemployment rate (end-of-period level, %)
United States
3.2
4.5
6.8
11.0
3.0
4.3
8.4
10.8
Eurozone
6.0
6.4
7.7
11.0
6.0
6.3
8.4
10.4
Switzerland
2.7
3.1
3.7
5.1
2.6
2.7
4.1
5.4
Fixed income: 10-year government bonds (change in yields, basis points)
USD
0
11
198
99
48
40
171
15
EUR
0
15
198
110
38
40
180
15
CHF
0
13
173
76
38
35
153
5
Equity indices (percentage change)
S&P 500
20.0
12.5
(25.0)
(50.0)
51.7
26.0
(5.2)
(33.0)
EuroStoxx 50
16.0
7.2
(25.0)
(50.0)
41.7
19.4
(13.9)
(33.5)
SPI
14.0
2.5
(25.0)
(50.0)
37.9
13.3
(9.0)
(29.0)
Swiss real estate (percentage change)
Single-Family Homes
4.5
2.5
(3.4)
(18.5)
12.0
7.7
(4.2)
(25.6)
Other real estate (percentage change)
United States (S&P / Case–Shiller)
6.3
1.7
(6.2)
(25.6)
17.0
8.2
(7.3)
(33.0)
Eurozone (House Price Index)
4.5
4.1
(5.1)
(12.4)
12.9
12.7
(6.7)
(18.8)
Scenario assumptions
One year
Three years cumulative
31.12.24
Asset price
inflation
Baseline
Mild debt
crisis
Stagflationary
geopolitical
crisis
Asset price
inflation
Baseline
Mild debt
crisis
Stagflationary
geopolitical
crisis
Real GDP growth (percentage change)
United States
3.5
2.0
(1.4)
(4.8)
8.6
5.5
0.8
(4.4)
Eurozone
2.5
0.9
(1.7)
(5.6)
5.6
3.2
(0.1)
(5.7)
Switzerland
2.7
0.9
(1.1)
(4.8)
6.2
4.2
0.4
(4.9)
Consumer price index (percentage change)
United States
2.3
2.6
0.0
10.0
8.1
7.8
2.5
15.8
Eurozone
2.0
2.2
0.0
9.6
7.3
5.9
2.0
14.8
Switzerland
1.4
0.7
(0.2)
5.8
5.7
2.7
1.4
10.7
Unemployment rate (end-of-period level, %)
United States
3.1
4.3
6.8
9.8
3.0
4.1
8.1
12.4
Eurozone
6.0
7.0
7.9
10.5
6.0
6.8
8.3
11.7
Switzerland
2.3
2.6
3.4
4.6
2.3
2.5
4.2
5.5
Fixed income: 10-year government bonds (change in yields, basis points)
USD
0
77
(137)
270
45
82
(77)
245
EUR
0
25
(113)
245
38
35
(68)
215
CHF
0
(4)
(22)
195
38
11
(1)
180
Equity indices (percentage change)
S&P 500
20.0
12.0
(28.1)
(56.5)
51.7
26.7
(14.0)
(51.2)
EuroStoxx 50
16.0
(0.6)
(27.9)
(56.6)
41.7
9.9
(18.3)
(52.7)
SPI
14.0
(0.6)
(26.0)
(56.6)
37.9
8.0
(13.0)
(52.7)
Swiss real estate (percentage change)
Single-Family Homes
4.5
3.2
(4.3)
(18.5)
10.7
8.8
(3.0)
(28.6)
Other real estate (percentage change)
United States (S&P / Case–Shiller)
6.3
3.4
(7.6)
(20.2)
16.8
11.9
(5.2)
(30.5)
Eurozone (House Price Index)
4.5
3.7
(6.1)
(8.4)
10.7
11.6
(5.6)
(12.9)
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements302
Note 19Expected credit loss measurement (continued)
c) Development of ECL allowances and provisions
The ECL allowances and provisions recognized in the period are impacted by a variety of factors, such as:
–
the effect of selecting and updating forward-looking scenarios and the respective weights;
–
origination of new instruments during the period;
–
the effectof passageof time(lower residuallifetime PDand theeffect ofdiscount unwind)as theECL onan instrument
for the remaining lifetime decreases (all other factors remaining the same);
–
derecognition of instruments in the period;
–
change in individual asset quality of instruments;
–
movements froma maximum12-month ECLto therecognition oflifetime ECL(and viceversa) followingtransfers
between stages 1 and 2;
–
movements from stages 1 and2 to stage 3 (credit-impairedstatus) when default hasbecome certain and PDincreases
to 100% (or vice versa);
–
changes in models or updates to model parameters;
–
write-offs; and
–
foreign exchange translation for assets denominated in foreign currencies.
ThetablebelowexplainsthechangesintheECLallowancesandprovisionsforon-andoff-balancesheetfinancial
instruments and credit lines withinthe scope of ECL requirementsbetween the beginning and theend of the period due
to the factors listed above.
Development of ECL allowances and provisions
USD m
Total
Stage 1
Stage 2
Stage 3
PCI
Balance as of 31 December 2024
(2,507)
(487)
(459)
(1,253)
(309)
Net movement from new and derecognized transactions
1
1
(31)
32
0
0
of which: Private clients with mortgages
2
0
2
0
0
of which: Real estate financing
1
(3)
4
0
0
of which: Large corporate clients
(12)
(22)
10
0
0
of which: Ship and aircraft financing
(2)
(2)
0
0
0
of which: SME clients
6
3
3
0
0
of which: Other
6
(8)
14
0
0
of which: Loans to financial advisors
1
0
1
0
0
Remeasurements with stage transfers
2
(284)
26
2
(309)
(4)
of which: Private clients with mortgages
43
2
40
0
0
of which: Real estate financing
(3)
2
1
(7)
0
of which: Large corporate clients
(88)
20
(32)
(76)
0
of which: SME clients
(149)
0
(6)
(144)
0
of which: Other
(87)
1
(1)
(82)
(4)
Remeasurements without stage transfers
3
(253)
(52)
4
(206)
1
of which: Private clients with mortgages
(19)
(9)
3
(12)
0
of which: Real estate financing
(24)
(5)
0
(19)
0
of which: Large corporate clients
(61)
(20)
(1)
(38)
(2)
of which: Ship and aircraft financing
19
9
10
0
0
of which: SME clients
(142)
(22)
(8)
(116)
3
of which: Other
(26)
(5)
0
(20)
(1)
of which: Financial intermediaries and hedge funds
(8)
(6)
0
(3)
0
of which: Loans to financial advisors
(6)
0
1
(7)
0
Model changes
4
13
11
1
0
0
Movements with profit or loss impact
5
(524)
(46)
40
(515)
(2)
Movements without profit or loss impact (write-off, FX and other)
6
(27)
(44)
(8)
11
14
Balance as of 31 December 2025
(3,058)
(576)
(428)
(1,756)
(298)
1 Represents theincrease and decreasein allowances andprovisions resulting fromfinancial instruments (includingguarantees and facilities)that were newlyoriginated, purchased orrenewed and fromthe final
derecognition of loansor facilities ontheir maturitydate or earlier.2 Represents theremeasurement between12-month andlifetime ECL dueto stage transfers.3 Represents thechange in allowancesand
provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposureprofile, PD and LGD changes, and unwinding of the time value.
4 Represents the change in the allowances and provisions related to changes in modelsand methodologies.5 Includes ECL movements from new and derecognized transactions, remeasurement changes, and model
and methodology changes.6 Represents the decrease in allowances andprovisions resulting from write-offs of the ECL allowanceagainst the gross carrying amount when all or partof a financial asset is deemed
uncollectible or forgiven and movements in foreign exchange rates.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements303
Note 19Expected credit loss measurement (continued)
Movements with profit or lossimpact:
stage 1 and 2 ECLallowances and provisions increased on a netbasis by USD
6
m.
–
Net movement from new and derecognized transactions
includes stage 1 increases of USD
31
m and stage 2 releases
of USD
32
m. Stage 1increases weremainly drivenby growthin thecorporate lendingportfolios, whilestage 2 releases
were predominantly due to repayments in other smaller segments.
–
Remeasurements withstage transfers
include USD
26
m inreleases in stage1, primarilydriven bythe corporatelending
portfolio andUSD
2
m releasesin stage 2.Movements instage 2 includeexpenses ofUSD
38
m followingcorporate
credit reviews. These expenses were offset by releases of USD
41
m in the real estate lending portfolio.
–
Stage 3 exposures which were already defaulted as of 31 December 2025 contributed approximately
40
% to stage 3
expenses.
–
For model changes
, refer to Note 19b for more information.
Movements withoutprofit or lossimpact
: stage 1 and2 allowances increasedby USD
52
m, almost entirelydue to foreign
exchange effects.
Stage 3andPCIallowancesdecreasedbyUSD
24
m,drivenbynetwrite-offsofUSD
374
m,partlyoffsetbyforeign
exchange effects and other movements totaling USD
350
m.
Development of ECL allowances and provisions
USD m
Total
Stage 1
Stage 2
Stage 3
PCI
Balance as of 31 December 2023
(2,261)
(700)
(416)
(993)
(153)
Net movement from new and derecognized transactions
1
37
30
(21)
29
0
of which: Private clients with mortgages
2
(6)
8
0
0
of which: Real estate financing
8
5
3
0
0
of which: Large corporate clients
(12)
(6)
(34)
28
0
of which: SME clients
10
4
5
0
0
of which: Other
30
33
(3)
0
1
of which: Loans to financial advisors
(2)
(2)
0
0
0
Remeasurements with stage transfers
2
(509)
32
(53)
(488)
0
of which: Private clients with mortgages
(6)
0
(7)
0
0
of which: Real estate financing
(8)
2
(4)
(5)
0
of which: Large corporate clients
(100)
21
(20)
(101)
0
of which: SME clients
(295)
3
(11)
(287)
0
of which: Other
(100)
6
(10)
(96)
1
Remeasurements without stage transfers
3
(30)
127
36
(153)
(40)
of which: Private clients with mortgages
27
18
18
(7)
(2)
of which: Real estate financing
44
16
5
6
17
of which: Large corporate clients
29
55
31
(25)
(32)
of which: SME clients
(90)
5
2
(97)
0
of which: Other
(40)
32
(19)
(29)
(23)
of which: Sovereign
(9)
12
(21)
0
0
Model changes
4
(49)
(14)
(35)
0
0
Movements with profit or loss impact
5
(551)
175
(74)
(612)
(39)
Movements without profit or loss impact (write-off, FX and other)
6
305
37
31
353
(116)
Balance as of 31 December 2024
(2,507)
(487)
(459)
(1,253)
(309)
1 Represents theincrease and decreasein allowances andprovisions resulting fromfinancial instruments (includingguarantees and facilities)that were newlyoriginated, purchased orrenewed and fromthe final
derecognition of loansor facilities ontheir maturitydate or earlier.2 Represents theremeasurement between12-month andlifetime ECL dueto stage transfers.3 Represents thechange in allowancesand
provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposureprofile, PD and LGD changes, and unwinding of the time value.
4 Represents the change in the allowances and provisions related to changes in modelsand methodologies.5 Includes ECL movements from new and derecognized transactions, remeasurement changes, and model
and methodology changes.6 Represents the decrease in allowances andprovisions resulting from write-offs of the ECL allowanceagainst the gross carrying amount when all or partof a financial asset is deemed
uncollectible or forgiven and movements in foreign exchange rates.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements304
Note 19Expected credit loss measurement (continued)
As explained in Note 1a, theassessment of a significantincrease in credit risk (an SICR)considers a number of qualitative
and quantitativefactors todetermine whethera stagetransfer betweenstage 1 andstage 2 isrequired, althoughthe
primary assessmentconsiders changes inPD based onrating analysesand economic outlook.Additionally, UBS takes into
consideration counterparties thathave moved toa creditwatch list andthose with paymentsthat areat least 30days
past due.
ECL stage 2 (“significant deterioration in credit risk”) allowances / provisions as of 31 December 2025 – classification by
trigger
USD m
Total
of which:
PD layer
of which:
watch list
of which:
≥30 days
past due
Private clients with mortgages
(18)
(11)
0
(7)
Real estate financing
(27)
(26)
0
(1)
Large corporate clients
(178)
(79)
(95)
(5)
SME clients
(119)
(97)
(19)
(3)
Ship / aircraft financing
(10)
(9)
0
(1)
Loans to financial advisors
(1)
0
0
(1)
Consumer financing / credit cards
(39)
0
(16)
(23)
Other
(35)
(34)
(1)
(1)
On- and off-balance sheet
(428)
(255)
(131)
(42)
d) Maximum exposure to credit risk
ThetablesbelowprovidetheGroup’smaximumexposuretocreditriskforfinancialinstrumentssubjecttoECL
requirementsandtherespectivecollateralandothercreditenhancementsmitigatingcreditriskfortheseclassesof
financial instruments.
The maximum exposure to creditrisk includes the carrying amountsof financial instruments recognized onthe balance
sheet subject tocredit risk andthe notional amountsfor off-balance sheetarrangements. Where informationis available,
collateral is presented at fair value. For other collateral, such as real estate, a reasonable alternative value is used. Credit
enhancements,suchascreditderivativecontractsandguarantees,areincludedattheirnotionalamounts.Bothare
capped atthe maximumexposure tocredit riskfor whichthey serveas security.The “Riskmanagement andcontrol”
section of thisreport describes management’sview of creditrisk and therelated exposures, whichcan differ incertain
respects from the requirements of IFRS Accounting Standards.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements305
Note 19Expected credit loss measurement (continued)
Maximum exposure to credit risk
31.12.25
Collateral
1,2
Credit enhancements
1
Exposure to
credit risk
after collateral
and credit
enhancements
USD bn
Maximum
exposure to
credit risk
Cash
collateral
received
Collateralized
by equity
and debt
instruments
Secured by
real estate
Other
collateral
3
Netting
Credit
derivative
contracts
Guarantees
and sub-
participations
Financial assets measured at
amortized cost on the balance sheet
Cash and balances at central banks
209.9
209.9
Amounts due from banks
19.6
0.0
0.0
0.0
0.1
19.5
Receivables from securities financing transactions
measured at amortized cost
83.7
0.0
78.1
4.5
1.0
Cash collateral receivables on derivative instruments
4,5
41.6
25.8
15.7
Loans and advances to customers
653.8
36.1
151.5
379.5
47.4
0.0
7.3
32.1
Other financial assets measured at amortized cost
71.9
0.2
0.7
0.0
6.7
0.0
64.3
Total financial assets measured at amortized cost
1,080.5
36.3
230.3
379.5
58.6
25.8
0.0
7.4
342.5
Financial assets measured at fair value
through other comprehensive income – debt
13.9
13.9
Total maximum exposure to credit risk
reflected on the balance sheet within the scope of ECL
1,094.3
36.3
230.3
379.5
58.6
25.8
0.0
7.4
356.3
Guarantees
6
47.1
1.6
28.6
0.3
1.8
0.0
2.6
12.1
Irrevocable loan commitments
81.9
0.3
4.9
2.2
23.9
0.0
3.1
47.6
Forward starting reverse repurchase and securities
borrowing agreements
10.7
10.7
0.0
Committed unconditionally revocable credit lines
119.6
14.9
48.2
11.9
1.5
1.3
41.7
Total maximum exposure to credit risk not
reflected on the balance sheet within the scope of ECL
259.3
16.8
92.4
14.4
27.2
0.0
0.0
7.1
101.4
31.12.24
Collateral
1,2
Credit enhancements
1
Exposure to
credit risk
after collateral
and credit
enhancements
USD bn
Maximum
exposure to
credit risk
Cash
collateral
received
Collateralized
by equity
and debt
instruments
Secured by
real estate
Other
collateral
3
Netting
Credit
derivative
contracts
Guarantees
and sub-
participations
Financial assets measured at
amortized cost on the balance sheet
Cash and balances at central banks
223.3
223.3
Amounts due from banks
18.9
0.0
0.2
0.1
0.2
18.4
Receivables from securities financing transactions
measured at amortized cost
118.3
0.0
113.2
4.1
1.0
Cash collateral receivables on derivative instruments
4,5
44.0
28.3
15.7
Loans and advances to customers
580.0
30.8
130.1
337.5
40.9
0.0
9.3
31.4
Other financial assets measured at amortized cost
58.8
0.2
0.7
0.0
5.3
52.7
Total financial assets measured at amortized cost
1,043.3
31.0
244.1
337.5
50.3
28.3
0.0
9.5
342.6
Financial assets measured at fair value
through other comprehensive income – debt
2.2
2.2
Total maximum exposure to credit risk
reflected on the balance sheet within the scope of ECL
1,045.5
31.0
244.1
337.5
50.3
28.3
0.0
9.5
344.7
Guarantees
6
40.2
1.9
19.6
0.4
2.3
0.0
3.9
12.3
Irrevocable loan commitments
79.4
0.2
3.8
1.6
22.7
0.0
4.2
46.8
Forward starting reverse repurchase and securities
borrowing agreements
24.9
24.9
0.0
Committed unconditionally revocable credit lines
145.6
19.4
61.6
12.9
1.5
3.1
47.1
Total maximum exposure to credit risk not
reflected on the balance sheet within the scope of ECL
290.1
21.4
109.9
14.9
26.4
0.0
0.0
11.2
106.2
1 Of which USD
3,808
m for 31 December2025 (31 December 2024:USD
3,742
m) relates to totalcredit-impaired financial assetsmeasured at amortized costand USD
135
m for 31 December2025 (31 December
2024: USD
356
m) relates to total off-balance sheet financial instruments and credit lines for credit-impaired positions.2 Collateral arrangements generally incorporate a range of collateral, including cash, equity and
debt instruments, real estate, andother collateral. For the purposeof this disclosure, UBS applies a risk-basedapproach that generally prioritizes collateral accordingto its liquidity profile. In the caseof loan facilities
with funded and unfundedelements, the collateralis first allocated tothe funded element. Forlegacy Credit Suisse infrastructurea risk-based approachis applied that generallyprioritizes real estate collateraland
prioritizes other collateralaccording to its liquidityprofile. In thecase of loan facilitieswith funded and unfundedelements, the collateralis proportionally allocated.3 Includes but is notlimited to life insurance
contracts, rights inrespect of subscription orcapital commitments from fundpartners, lien claimson assets of borrowers,leasing items, mortgageloans, inventory,gold and other commodities.4 Included within
Cash collateral receivables on derivative instrumentsare margin balances due fromexchanges or clearing houses. Some ofthese margin balances reflect amountstransferred on behalf of clientswho retain the associated
credit risk.5 The amount shown inthe “Netting” column represents thenetting potential not recognized onthe balance sheet. Refer toNote 21 for more information.6 Guarantees collateralized byequity and
debt instruments include certainovernight repurchaseand reverse repurchase transactionswhere UBS acts asa sponsoring member foreligible clients when clearingthrough the FixedIncome Clearing Corporation
(the FICC). As part of this arrangement, UBS guarantees the FICC for prompt and full payment and performance of the clients‘ respective obligations under the FICC’s rules. The Group minimizes its liability under these
guarantees by obtaining a security interest in the cash or high-quality securities collateral that the clients place withthe clearing house; therefore, the risk of loss is expected to be remote.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements306
Note 19Expected credit loss measurement (continued)
e) Financial assets subject to credit risk by rating category
The table below shows the creditquality and the maximum exposure tocredit risk based on the Group’sinternal credit
rating system and year-end stage classification.Under IFRS 9, the credit riskrating reflects the Group’s assessmentof the
probability of default of individual counterparties,prior to substitutions. The amountspresented are gross of impairment
allowances.
›
Refer to the “Risk management and control” section of this report for moredetails about the Group’s internal gradingsystem
Financial assets subject to credit risk by rating category
USD m
31.12.25
Rating category
1
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total
gross
carrying
amount
ECL
allowances
Net carrying
amount
(maximum
exposure to
credit risk)
Financial assets measured at amortized cost
Cash and balances at central banks
209,251
24
28
303
50
283
209,939
(81)
209,858
of which: stage 1
209,251
24
28
303
0
0
209,606
0
209,606
of which: stage 2
0
0
0
0
50
0
50
(29)
21
of which: PCI
0
0
0
0
0
283
283
(52)
231
Amounts due from banks
63
12,380
2,400
3,889
932
0
19,663
(14)
19,649
of which: stage 1
63
12,378
2,368
3,881
844
0
19,534
(9)
19,525
of which: stage 2
0
2
31
8
88
0
129
(5)
124
of which: PCI
0
0
0
0
0
0
0
0
0
Receivables from securities financing transactions
29,077
27,613
12,827
13,131
1,009
0
83,657
(1)
83,656
of which: stage 1
29,077
27,613
12,827
13,131
1,009
0
83,657
(1)
83,656
Cash collateral receivables on derivative instruments
11,655
13,495
9,248
6,950
204
0
41,552
0
41,552
of which: stage 1
11,655
13,495
9,248
6,950
204
0
41,552
0
41,552
Loans and advances to customers
11,484
261,921
180,185
148,949
47,377
6,419
656,336
(2,490)
653,846
of which: stage 1
11,292
259,203
174,090
139,208
40,696
0
624,490
(353)
624,137
of which: stage 2
192
2,717
6,096
9,741
6,680
0
25,425
(271)
25,155
of which: stage 3
0
0
0
0
0
5,577
5,577
(1,629)
3,947
of which: PCI
0
0
0
0
1
842
844
(237)
607
Other financial assets measured at amortized cost
18,235
40,053
2,803
8,542
2,079
309
72,021
(124)
71,897
of which: stage 1
18,234
39,974
2,697
8,092
1,459
0
70,457
(29)
70,427
of which: stage 2
1
79
106
451
620
0
1,256
(9)
1,247
of which: stage 3
0
0
0
0
0
306
306
(86)
220
of which: PCI
0
0
0
0
0
2
3
0
3
Total financial assets measured at amortized cost
279,765
355,486
207,491
181,765
51,651
7,010
1,083,168
(2,711)
1,080,458
On-balance sheet financial instruments
Financial assets measured at FVOCI – debt instruments
1,148
12,590
9
113
8
0
13,868
0
13,868
Total on-balance sheet financial instruments
280,913
368,076
207,501
181,877
51,659
7,010
1,097,036
(2,711)
1,094,326
1 Refer to the “Internal UBS rating scale and mapping of external ratings” table in the “Risk management and control”section of this report for more information about rating categories.
Off-balance sheet positions subject to expected credit loss by rating category
USD m
31.12.25
Rating category
1
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total carrying
amount
(maximum
exposure to
credit risk)
ECL provision
Off-balance sheet financial instruments
Guarantees
26,246
6,121
6,497
6,387
1,708
142
47,102
(50)
of which: stage 1
26,245
6,035
6,256
5,604
1,371
0
45,512
(15)
of which: stage 2
1
86
241
783
337
0
1,448
(22)
of which: stage 3
0
0
0
0
0
120
120
(13)
of which: PCI
0
0
0
0
0
22
22
0
Irrevocable loan commitments
1,570
22,972
20,787
19,574
17,045
174
82,122
(227)
of which: stage 1
1,570
22,778
20,493
19,339
13,796
0
77,976
(114)
of which: stage 2
0
194
294
235
3,215
0
3,938
(77)
of which: stage 3
0
0
0
0
0
174
174
(27)
of which: PCI
0
0
0
0
35
0
35
(9)
Forward starting reverse repurchase and securities borrowing agreements
3,783
6,057
234
648
0
0
10,723
0
Total off-balance sheet financial instruments
31,600
35,150
27,518
26,609
18,753
315
139,946
(277)
Credit lines
Committed unconditionally revocable credit lines
44,348
31,742
23,783
15,032
4,525
248
119,679
(67)
of which: stage 1
44,298
30,573
22,830
14,135
4,146
0
115,982
(51)
of which: stage 2
50
1,170
953
897
379
0
3,449
(16)
of which: stage 3
0
0
0
0
0
247
248
0
of which: PCI
0
0
0
0
0
0
0
0
Irrevocable committed prolongation of existing loans
6
2,882
2,372
1,841
1,071
5
8,178
(3)
of which: stage 1
6
2,871
2,369
1,831
1,064
0
8,141
(3)
of which: stage 2
0
11
3
10
8
0
32
0
of which: stage 3
0
0
0
0
0
5
5
0
Total credit lines
44,354
34,624
26,156
16,873
5,596
253
127,857
(70)
1 Refer to the “Internal UBS rating scale and mapping of external ratings” table in the “Risk management and control”section of this report for more information about rating categories.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements307
Note 19Expected credit loss measurement (continued)
Financial assets subject to credit risk by rating category
USD m
31.12.24
Rating category
1
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total gross
carrying
amount
ECL
allowances
Net carrying
amount
(maximum
exposure to
credit risk)
Financial assets measured at amortized cost
Cash and balances at central banks
222,735
442
24
0
174
0
223,375
(47)
223,329
of which: stage 1
222,735
442
24
0
0
0
223,201
0
223,201
of which: stage 2
0
0
0
0
35
0
35
(21)
13
of which: PCI
0
0
0
0
140
0
140
(25)
114
Amounts due from banks
156
15,238
2,409
809
326
0
18,938
(36)
18,903
of which: stage 1
156
15,206
2,331
791
221
0
18,705
(1)
18,704
of which: stage 2
0
32
78
18
75
0
203
(5)
198
of which: PCI
0
0
0
0
30
0
30
(30)
0
Receivables from securities financing transactions
67,467
17,033
6,361
26,097
1,345
0
118,303
(2)
118,301
of which: stage 1
67,467
17,033
6,361
26,097
1,345
0
118,303
(2)
118,301
Cash collateral receivables on derivative instruments
10,166
19,998
7,794
5,893
109
0
43,959
0
43,959
of which: stage 1
10,166
19,998
7,794
5,893
109
0
43,959
0
43,959
Loans and advances to customers
1,868
261,017
169,139
106,577
37,652
5,692
581,944
(1,978)
579,967
of which: stage 1
1,868
259,251
165,762
98,176
28,752
0
553,808
(276)
553,532
of which: stage 2
0
1,754
3,373
8,375
8,870
0
22,373
(323)
22,049
of which: stage 3
0
0
0
0
0
4,699
4,699
(1,134)
3,565
of which: PCI
0
11
5
25
30
992
1,064
(244)
820
Other financial assets measured at amortized cost
26,078
21,060
2,920
6,958
1,661
282
58,959
(125)
58,835
of which: stage 1
26,078
21,030
2,893
6,820
1,413
0
58,233
(25)
58,209
of which: stage 2
0
30
27
139
247
0
444
(7)
436
of which: stage 3
0
0
0
0
0
262
262
(84)
178
of which: PCI
0
0
0
0
0
20
20
(8)
12
Total financial assets measured at amortized cost
328,469
334,788
188,646
146,334
41,267
5,974
1,045,479
(2,187)
1,043,293
On-balance sheet financial instruments
Financial assets measured at FVOCI – debt instruments
1,393
702
0
101
0
0
2,195
0
2,195
Total on-balance sheet financial instruments
329,862
335,490
188,646
146,435
41,267
5,974
1,047,675
(2,187)
1,045,488
1 Refer to the “Internal UBS rating scale and mapping of external ratings” table in the “Risk management and control”section of this report for more information about rating categories.
Off-balance sheet positions subject to expected credit loss by rating category
USD m
31.12.24
Rating category
1
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total carrying
amount
(maximum
exposure to
credit risk)
ECL provision
Off-balance sheet financial instruments
Guarantees
17,395
7,282
8,403
5,196
1,829
174
40,279
(64)
of which: stage 1
17,395
7,247
8,362
4,484
1,371
0
38,858
(16)
of which: stage 2
0
35
41
708
459
0
1,242
(24)
of which: stage 3
0
0
0
0
0
151
151
(24)
of which: PCI
0
0
0
4
0
23
27
0
Irrevocable loan commitments
1,119
23,843
22,361
14,249
17,807
200
79,579
(177)
of which: stage 1
1,119
23,650
21,974
13,742
14,673
0
75,158
(105)
of which: stage 2
0
193
387
507
3,091
0
4,178
(61)
of which: stage 3
0
0
0
0
0
187
187
(10)
of which: PCI
0
0
0
0
43
13
56
(2)
Forward starting reverse repurchase and securities borrowing agreements
0
0
0
24,896
0
0
24,896
0
Total off-balance sheet financial instruments
18,515
31,125
30,763
44,340
19,636
374
144,754
(241)
Credit lines
Committed unconditionally revocable credit lines
2,180
100,663
22,875
13,258
6,434
255
145,665
(76)
of which: stage 1
2,180
100,106
22,414
12,690
5,872
0
143,262
(59)
of which: stage 2
0
557
461
568
562
0
2,149
(17)
of which: stage 3
0
0
0
0
0
250
250
0
of which: PCI
0
0
0
0
0
5
5
0
Irrevocable committed prolongation of existing loans
6
1,997
946
739
918
2
4,608
(3)
of which: stage 1
6
1,997
946
739
914
0
4,602
(3)
of which: stage 2
0
0
0
1
3
0
4
0
of which: stage 3
0
0
0
0
0
2
2
0
Total credit lines
2,186
102,661
23,821
13,997
7,351
257
150,273
(79)
1 Refer to the “Internal UBS rating scale and mapping of external ratings” table in the “Risk management and control”section of this report for more information about rating categories.
Annual Report 2025
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Note 19Expected credit loss measurement (continued)
f) Sensitivity information
As outlined in Note 1a, ECL estimates involve significant uncertainties at the time they are made.
ECL models
The models appliedto determine point-in-time PD andLGD rely on marketand statisticaldata, which hasbeen found
tocorrelatewellwithhistoricallyobserveddefaultsinsufficientlyhomogeneoussegments.Therisksensitivitiesfor
each of theECL reporting segmentsto such factorsare summarizedin Note 9.
Climate risk
Climate riskmay negativelyaffect clientsor portfoliosdue todirect orindirect transitioncosts, orexposure tochronic
and acute physical risks inlocations likely to be impactedby climate change. Such effects couldlead to a deterioration in
creditworthiness, which in turn would have an impact on ECLs.
Although somemacroeconomic indicatorsused inthe currentPD modelscould beinfluenced byclimate change,UBS
currently does not use specific climate risk scenarios inaddition to the four general economic scenarios appliedto derive
the weighted-average ECL. The rationale for the approach at this point in time is the significance of model risks and the
insufficient level of qualitative and quantitative data necessary for calibration and probability weighting.
Instead, UBS focuses on the process of vetting clients and business transactions,where both physical and transition risks
for selected sensitive portfoliosuse internally developed, climateassessment models. This reviewprocess may leadto a
downward revision of the counterparty’s creditrating or the adoption of riskmitigating actions, impacting the individual
contribution to ECLs.
UBS assesses climaterisk impacts acrosskey lending portfoliosusing a combinationof qualitative andquantitative inputs,
includingclimatescenarioanalysisandexposurestoclimate-sensitivesectors,aspartofitsfinancialriskmateriality
assessment. These assessments rely on conservative climate stress-testing methodologies thatdiffer from ECL models in
assumptions, horizons and calibration, with credit risk impacts primarily arising through indirect macroeconomic effects,
and therefore do not allow adirect inference of impacts on ECL allowances.UBS instead assesses the need for climate-
relatedECLadjustmentsthroughpost-modeladjustments.AspartofthequarterlyECLgovernance,climate-related
events, suchas landslides,floods andwildfires, arediscussed atsenior managementlevel, andif required,dedicated post-
model adjustments are booked to increase the model-based ECL allowance levels.
It was assessed that the magnitude of any impact of climate risk on the weighted-average ECL wouldnot be material as
of 31 December 2025. Therefore, no specific post-model adjustment was made in this regard.
›
Refer to ”Sustainability and climate risk” in the ”Risk management and control” section of thisreport for more information about
identification and measurement of climate risk
›
Refer to “Our focus on sustainability” in the “Our stakeholders” section of this report
›
Refer to the “UBS Group AG consolidated supplemental disclosures requiredunder SEC regulations” section of this report for
more information about the maturity profile of UBS’score loan book
Forward-looking scenarios
Depending onthe scenarioselection andrelated macroeconomicassumptions forthe riskfactors, thecomponents of
therelevantweighted-averageECLchange.Thisisparticularlyrelevantforinterestrates,whichcanmoveinboth
directions undera givengrowth assumption,e.g. lowgrowth withhigh interestrates ina stagflationscenario, versus
low growth and falling interestrates in a recession. Management generallylooks for scenario narratives that reflectthe
key risk drivers of a given credit portfolio.
Asforecastingmodelsarecomplex,duetomultiplefactors,simplewhat-ifanalysesinvolvingachangeofindividual
parameters donot necessarilyprovide realisticinformation onthe exposureof segmentsto changesin themacroeconomy.
Portfolio-specific analysesbased on theirkey risk factorswould alsonot be meaningful,as potentialcompensatory effects
in othersegments wouldbe ignored.The tablebelow indicatessome sensitivitiesto ECLs,if akey macroeconomicvariable
for the forecasting period is amended across all scenarios with all other factors remaining unchanged.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements309
Note 19Expected credit loss measurement (continued)
Potential effect on stage 1 and stage 2 positions from changing the global key parameters as of 31 December 2025
USD m
100% Baseline
100% Asset price
appreciation
100% Moderate
stagflation crisis
100% Global
trade war
Weighted average
Change in key parameters
Fixed income: Government bonds (absolute change)
–1.00%
(2)
(2)
(62)
(61)
(11)
–0.50%
(2)
(2)
(34)
(42)
(6)
+0.50%
11
9
39
96
12
+1.00%
25
20
86
208
28
Unemployment rate (absolute change)
–1.00%
(9)
(7)
(25)
(36)
(8)
–0.50%
(5)
(4)
(10)
(20)
(5)
+0.50%
8
6
18
22
5
+1.00%
14
12
33
52
13
Real GDP growth (relative change)
–2.00%
32
17
46
75
31
–1.00%
15
9
25
37
16
+1.00%
(7)
(6)
(20)
(27)
(13)
+2.00%
(15)
(12)
(45)
(60)
(27)
House Price Index (relative change)
–5.00%
20
13
56
240
34
–2.50%
9
5
25
110
15
+2.50%
(6)
(5)
(22)
(97)
(13)
+5.00%
(12)
(9)
(40)
(182)
(25)
Equity & Commodity Index (relative change)
–10.00%
13
7
10
6
7
–5.00%
5
4
6
1
3
+5.00%
(2)
(2)
0
(5)
(3)
+10.00%
(4)
(4)
(3)
(6)
(5)
Equity Volatility (absolute change)
–10.00%
(7)
(4)
(11)
(17)
(9)
–5.00%
(4)
(2)
(5)
(9)
(5)
+5.00%
7
2
6
12
5
+10.00%
12
6
16
26
10
Sensitivitiescanbemoremeaningfullyassessedinthecontextofcoherentscenarioswithconsistentlydeveloped
macroeconomicfactors.Thetableaboveoutlinesfavorableandunfavorableeffects,basedonreasonablypossible
alternative changesto theeconomic conditionsfor stage 1and stage 2positions. TheECL impactis calculatedfor material
portfolios and disclosed for each scenario.
Changes toforecasting timelines mayhave aneffect onECLs: dependingon thecycle, alonger orshorter forecasting
horizon might lead to different annualized lifetime PDand average LGD estimations. This is currently notdeemed to be
material for UBS, as a large proportion of loans, including mortgages in Switzerland, have maturities that are within the
forecasting horizon.
Scenario weights and stage allocation
Potential effect on stage 1 and stage 2 positions from changing scenario weights or moving to an ECL lifetime
calculation as of 31 December 2025
Actual ECL allowances
and provisions,
including staging
(as per Note 9)
Pro forma ECL allowances and provisions, including staging
and assuming application of 100% scenario weighting
Pro forma ECL
allowances and
provisions, assuming
all positions are
subject to lifetime ECL
Scenarios
Weighted average
100% Asset price
appreciation
100% Baseline
100% Moderate
stagflation
100% Global
trade war
Weighted average
USD m, except where indicated
Segmentation
Private clients with mortgages
(62)
(35)
(38)
(114)
(436)
(215)
Real estate financing
(60)
(49)
(53)
(108)
(129)
(151)
Large corporate clients
(399)
(260)
(306)
(525)
(791)
(664)
SME clients
(212)
(195)
(208)
(312)
(493)
(340)
Ship financing
(10)
(9)
(9)
(10)
(14)
(22)
Consumer financing / credit cards
(80)
(74)
(75)
(80)
(87)
(239)
Other segments
(182)
(176)
(180)
(209)
(236)
(281)
Total
(1,004)
(797)
(869)
(1,358)
(2,185)
(1,913)
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Note 19Expected credit loss measurement (continued)
Potential effect on stage 1 and stage 2 positions from changing scenario weights or moving to an ECL lifetime
calculation as of 31 December 2024
Actual ECL allowances and
provisions, including
staging (as per Note 9)
Pro forma ECL allowances and provisions, including staging
and assuming application of 100% scenario weighting
Pro forma ECL allowances
and provisions, assuming all
positions are subject to
lifetime ECL
Scenarios
Weighted average
100% Baseline
100%
Stagflationary
geopolitical crisis
100% Mild debt
crisis
Weighted average
USD m, except where indicated
Segmentation
Private clients with mortgages
(118)
(43)
(718)
(68)
(408)
Real estate financing
(57)
(40)
(164)
(49)
(185)
Large corporate clients
(377)
(247)
(757)
(401)
(673)
SME clients
(180)
(151)
(259)
(223)
(327)
Ship financing
(24)
(27)
(42)
(28)
(78)
Consumer financing / credit cards
(58)
(63)
(72)
(65)
(168)
Other segments
(131)
(82)
(206)
(119)
(231)
Total
(946)
(654)
(2,217)
(952)
(2,071)
Scenario weights
ECL is sensitive to changing scenario weights, in particular if narrativesand parameters are selected that are not close to
the baseline scenario, highlighting the non-linearity of credit losses.
As shownin thetable above,the ECLsfor stage 1and stage2 positionswould havebeen USD
869
m (31 December
2024: USD
654
m) instead ofUSD
1,004
m (31 December 2024:USD
946
m) if ECLshad been determinedsolely on the
baseline scenario. The weighted-average ECL therefore amounted to
115
% (31 December 2024:
143
%) of the baseline
value. The effects of weighting each of the four scenarios at 100% are shown in the table above.
Stage allocation and SICR
The determination of whatconstitutes an SICR isbased on management judgment, asexplained in Note 1a. Changing
the SICR trigger will havea direct effect on ECLs, asmore or fewer positions wouldbe subject to lifetime ECLsunder any
scenario.
TheimpactoftheSICRtriggeronoverallECLisdemonstratedinthetableabovewiththeindicationthattheECL
allowances and provisions for stage 1 and stage 2 positions would have been USD
1,913
m, if all non-impaired positions
across the portfolio had been measuredfor lifetime ECLs irrespective of theiractual SICR status. This amount compares
with actual stage 1 and 2 allowances and provisions of USD
1,004
m as of 31 December 2025.
Maturity profile
The maturityprofile isan importantdriver inECLs, inparticular fortransactions instage 2. Atransfer ofa transaction
intostage 2maythereforehaveasignificanteffectonECLs.Thecurrentmaturityprofileofmostlendingbooksis
relatively short.
Lending tolarge corporateclients isgenerally betweenone andtwo years,with relatedloan commitmentsup tofour
years. Real estate lending is generally betweentwo and three years in Switzerland, with long-dated maturities inthe US.
Lombard-lendingcontractstypicallyhaveaveragecontractualmaturitiesof12monthsorless,andincludecallable
features.
A significant portion of UBS’s lending toSME clients and real estate financing isdocumented under multi-purpose credit
agreements, whichallow forvarious formsof utilizationbut areunconditionally cancelableby UBSat anytime: (i) for
drawings under such agreementswith a fixed maturity,the respective term isapplied for ECL calculations,or a maximum
of 12 months in stage 1; (ii) for unused creditlines and all drawings that have no fixedmaturity (e.g. current accounts),
UBS generally applies a 12-month maturityfrom the reporting date, given thecredit review policies, which require either
continuous monitoring of key indicators andbehavioral patterns for smaller positionsor an annual formal review for any
other limit. The ECLs for these products are sensitive to shortening or extending the maturity assumption.
Annual Report 2025
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Note 20Fair value measurement
a) Valuation principles
All financial and non-financial assets andliabilities measured or disclosed atfair value are categorizedinto one of three
fairvaluehierarchylevelsinaccordancewithIFRSAccountingStandards.Thefairvaluehierarchyisbasedonthe
transparency ofinputs tothe valuation ofan assetor liabilityas ofthe measurementdate. Incertain cases, theinputs
used to measure fair value may fall within different levels of the fair value hierarchy. For disclosure purposes, the level in
the hierarchy within which an instrumentis classified in its entirety isbased on the lowest levelinput that is significant to
the position’s fair value measurement:
–
Level 1 – quoted prices (unadjusted) in active markets for identical assets and liabilities;
–
Level 2 – valuation techniques for which all significant inputs are, or are based on, observable market data; or
–
Level 3 – valuation techniques for which significant inputs are not based on observable market data.
Fair values are determined using quoted prices in active markets for identical assets or liabilities, where available. Where
themarketforafinancialinstrumentornon-financialassetorliabilityisnotactive,fairvalueisestablishedusinga
valuationtechnique,includingpricingmodels.Valuationadjustmentsmaybemadetoallowforadditionalfactors,
including model, liquidity, credit and funding risks, which are not explicitly captured within the valuation technique,but
which would nevertheless beconsidered by market participantswhen establishing a price.The limitations inherent ina
particular valuation technique areconsidered in the determination ofthe classification of anasset or liability withinthe
fair value hierarchy. Generally, theunit of account for a financialinstrument is the individual instrument,and UBS applies
valuationadjustmentsatanindividualinstrumentlevel,consistentwiththatunitofaccount.However,ifcertain
conditions aremet,UBSmayestimatethefairvalue ofaportfolio offinancial assetsandliabilities withsubstantially
similar and offsetting risk exposures on the basis of the net open risks.
›
Refer to Note 20d for more information
b) Valuation governance
UBS’sfairvaluemeasurementandmodelgovernanceframeworkincludesnumerouscontrolsandotherprocedural
safeguards thatare intendedto maximizethe qualityof fairvalue measurementsreported inthe financialstatements.
New products and valuationtechniques must be reviewedand approved by keystakeholders from the riskand finance
control functions. Responsibility for the ongoing measurement offinancial and non-financial instruments at fair value is
with the business divisions.
Fairvalueestimatesarevalidatedbytheriskandfinancecontrolfunctions,whichareindependentofthebusiness
divisions. Independent price verification is performed by Financethrough benchmarking the business divisions’ fair value
estimateswithobservablemarketpricesandotherindependentsources.Agovernanceframeworkandassociated
controls are in placeto monitor the qualityof third-party pricingsources, where used. Forinstruments where valuation
models areused todetermine fairvalue, independentvaluation andmodel controlgroups withinFinance andRisk Control
evaluate UBS’s models on a regular basis, including valuation and modelinput parameters, as well as pricing. As a result
of the valuation controls employed, valuation adjustments maybe made to the business divisions’ estimatesof fair value
to align with independent market data and the relevant accounting standard.
›
Refer to Note 20d for more information
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements312
Note 20Fair value measurement (continued)
c) Fair value hierarchy
The tablebelow providesthe fairvalue hierarchyclassification offinancial andnon-financial assetsand liabilitiesmeasured
atfairvalue.Thenarrativethatfollowsdescribesvaluationtechniquesusedinmeasuringthefairvalueofdifferent
product types(including significantvaluation inputsand assumptionsused) andthe factorsconsidered indetermining
their classification within the fair value hierarchy.
During 2025, there were no material transfersof assets or liabilities between Level 1and Level 2 that were heldfor the
entire reporting period.
Determination of fair values from quoted market prices or valuation techniques
1
31.12.25
31.12.24
USD m
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial assets measured at fair value on a recurring basis
Financial assets at fair value held for trading
143,009
29,358
2,333
174,699
128,393
27,564
3,108
159,065
of which: Equity instruments
127,455
538
151
128,144
116,501
430
91
117,022
of which: Government bills / bonds
6,868
4,298
2
11,168
4,443
3,261
41
7,746
of which: Investment fund units
8,319
1,287
71
9,677
6,537
987
151
7,675
of which: Corporate and municipal bonds
367
21,208
874
22,449
911
17,462
838
19,211
of which: Loans
0
1,703
1,111
2,814
0
5,200
1,799
6,998
of which: Asset-backed securities
0
324
123
447
1
219
153
373
Derivative financial instruments
581
143,966
3,230
147,778
795
181,965
2,792
185,551
of which: Foreign exchange
293
48,056
306
48,655
472
100,328
66
100,867
of which: Interest rate
0
33,631
1,159
34,789
0
40,553
878
41,431
of which: Equity / index
0
49,379
1,435
50,814
0
35,747
1,129
36,876
of which: Credit
0
3,587
323
3,910
0
2,555
581
3,136
of which: Commodities
3
9,239
5
9,247
1
2,599
17
2,617
Brokerage receivables
0
35,579
0
35,579
0
25,858
0
25,858
Financial assets at fair value not held for trading
47,564
51,097
8,913
107,575
35,911
50,813
8,748
95,472
of which: Financial assets for unit-linked investment contracts
20,776
145
0
20,922
17,101
6
0
17,106
of which: Corporate and municipal bonds
0
16,936
89
17,026
31
14,695
133
14,859
of which: Government bills / bonds
26,208
6,147
0
32,355
18,264
6,204
0
24,469
of which: Loans
0
5,760
4,226
9,987
0
4,427
3,192
7,619
of which: Securities financing transactions
0
20,553
937
21,490
0
24,026
611
24,638
of which: Asset-backed securities
0
1,002
480
1,482
0
972
597
1,569
of which: Auction rate securities
0
0
191
191
0
0
191
191
of which: Investment fund units
480
381
678
1,539
423
401
681
1,505
of which: Equity instruments
100
0
2,082
2,182
93
0
2,917
3,010
Financial assets measured at fair value through other comprehensive income on a recurring basis
Financial assets measured at fair value through other comprehensive income
11,735
2,133
0
13,868
59
2,137
0
2,195
of which: Government bills / bonds
11,659
0
0
11,659
0
0
0
0
of which: Commercial paper and certificates of deposit
0
1,944
0
1,944
0
1,959
0
1,959
of which: Corporate and municipal bonds
76
189
0
265
59
178
0
237
Non-financial assets measured at fair value on a recurring basis
Precious metals and other physical commodities
12,996
0
0
12,996
7,341
0
0
7,341
Non-financial assets measured at fair value on a non-recurring basis
Other non-financial assets
2
0
0
62
62
0
0
84
84
Total assets measured at fair value
215,886
262,133
14,538
492,557
172,499
288,337
14,732
475,568
Annual Report 2025
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Note 20Fair value measurement (continued)
Determination of fair values from quoted market prices or valuation techniques (continued)
1
31.12.25
31.12.24
USD m
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial liabilities measured at fair value on a recurring basis
Financial liabilities at fair value held for trading
39,315
14,278
107
53,700
24,577
10,429
240
35,247
of which: Equity instruments
32,533
135
65
32,734
18,528
257
29
18,814
of which: Corporate and municipal bonds
12
11,818
37
11,867
5
8,771
206
8,982
of which: Government bills / bonds
4,894
2,007
0
6,901
4,336
1,174
0
5,510
of which: Investment fund units
1,874
177
3
2,054
1,708
162
3
1,873
Derivative financial instruments
688
150,575
4,981
156,243
829
175,747
4,060
180,636
of which: Foreign exchange
346
49,473
77
49,895
506
94,035
46
94,587
of which: Interest rate
0
30,539
317
30,856
0
36,313
324
36,636
of which: Equity / index
0
58,396
4,224
62,620
0
39,597
3,142
42,739
of which: Credit
0
4,052
314
4,366
0
3,280
414
3,694
of which: Commodities
2
8,024
16
8,043
1
2,200
15
2,216
of which: Loan commitments measured at FVTPL
0
6
26
33
0
75
62
137
Financial liabilities designated at fair value on a recurring basis
Brokerage payables designated at fair value
0
62,202
0
62,202
0
49,023
0
49,023
Debt issued designated at fair value
0
101,103
12,691
113,794
0
94,573
13,336
107,909
Other financial liabilities designated at fair value
0
26,548
1,636
28,184
0
25,931
2,768
28,699
of which: Financial liabilities related to unit-linked investment contracts
0
21,052
0
21,052
0
17,203
0
17,203
of which: Securities financing transactions
0
3,389
459
3,848
0
5,798
0
5,798
of which: Over-the-counter debt instruments and others
0
2,107
1,177
3,284
0
2,930
2,768
5,698
Total liabilities measured at fair value
40,003
354,706
19,415
414,123
25,406
355,703
20,405
401,514
1 Bifurcated embedded derivatives are presented on the same balance sheet linesas their host contracts and are not included in this table. The fair value of thesederivatives was not material for the periods presented.
2 Other non-financial assets primarily consist of properties and other non-current assets held for sale, which are measuredat the lower of their net carrying amount or fair value less costs to sell.
Valuation techniques
UBS uses widelyrecognized valuation techniquesfor determining thefair value offinancial and non-financialinstruments
that arenot actively tradedand quoted. Themost frequentlyapplied valuation techniquesinclude discounted valueof
expected cash flows, relative value and option pricing methodologies.
Discounted valueof expectedcash flowsis avaluation techniquethat measuresfair valueusing expectedfuture cash
flows from assets or liabilities and then discounts these cash flows using a discount rate or discount margin that reflects
the creditand / or fundingspreads requiredby themarket forinstruments withsimilar riskand liquidityprofiles toproduce
a present value. When usingsuch valuation techniques, expected future cashflows are estimated using anobserved or
implied market price forthe future cash flowsor by using industry-standardcash flow projection models.The discount
factors within the calculation are generated using industry-standard yield curve modeling techniques and models.
Relativevalue modelsmeasurefair valuebased onthe marketpricesof equivalentor comparableassetsor liabilities,making
adjustmentsfor differencesbetween thecharacteristicsof the observedinstrumentand the instrumentbeing valued.
Optionpricingmodelsincorporateassumptionsregardingthebehavioroffuturepricemovementsofanunderlying
referencedassetorassetstogenerateaprobability-weightedfutureexpectedpayofffortheoption.Theresulting
probability-weighted expected payoffis then discountedusing discount factorsgenerated from industry-standardyield
curve modelingtechniques andmodels. Theoption pricingmodel maybe implementedusing aclosed-form analytical
formula or other mathematical techniques (e.g. binomial tree or Monte Carlo simulation).
Where available, valuationtechniques use market-observableassumptions and inputs.If such datais not available,inputs
may be derivedby reference tosimilar assets inactive markets, from recentprices for comparabletransactions or from
other observable marketdata. In suchcases, the inputsselected are basedon historical experienceand practice forsimilar
or analogousinstruments, derivationof inputlevels basedon similarproducts withobservable pricelevels, andknowledge
of current market conditions and valuation approaches. Where relevant,these inputs include assumptions about climate
risk and relevant geopolitical risks.
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Note 20Fair value measurement (continued)
Formorecomplexinstruments,fairvaluesmaybeestimatedusingacombinationofobservedtransactionprices,
consensus pricing services andrelevant quotes. Consideration isgiven to the nature ofthe quotes (e.g. indicativeor firm)
and the relationship of recently evidenced marketactivity to the prices provided byconsensus pricing services. UBS also
uses internally developedmodels, which aretypically based onvaluation methods andtechniques recognized asstandard
within the industry. Assumptions and inputs used invaluation techniques include benchmark interest rate curves, credit
and fundingspreads usedin estimatingdiscount rates,bond andequity prices,equity indexprices, foreignexchange
rates, levels of marketvolatility and correlation. Referto Note 20e for moreinformation. The discount curvesused by the
Group incorporate the funding and credit characteristics of the instruments to which they are applied.
Financial instruments excluding derivatives: valuation and classification in the fair value hierarchy
Product
Valuation and classification in the fair value hierarchy
Government bills
and bonds
Valuation
–
Generally valued using prices obtained directly from the market.
–
Instrumentsnotpriceddirectlyusingactive-marketdataarevaluedusingdiscountedcashflow
valuation techniques that incorporate market data for similar government instruments.
Fair value hierarchy
–
Generally tradedin activemarkets withprices thatcan beobtained directlyfrom thesemarkets,
resulting in classification as Level 1, while the remaining positions are classified as Level 2 or Level 3.
Corporate and
municipal bonds
Valuation
–
Generally valued using prices obtained directly from the market for the security, or similar securities,
adjusted for seniority, maturity and liquidity.
–
Whenpricesarenotavailable,instrumentsarevaluedusingdiscountedcashflowvaluation
techniques incorporating the credit spread of the issuer or similar issuers.
–
For convertible bondswithout directly comparableprices, issuances maybe priced usinga convertible
bond model.
Fair value hierarchy
–
Generally classifiedas Level 1or Level 2,depending onthe depthof tradingactivity behindprice
sources.
–
Level 3 instruments have no suitable pricing information available.
Traded loans and
loans measured at
fair value
Valuation
–
Valued directlyusing marketprices thatreflect recenttransactions orquoted dealerprices, where
available.
–
Wherenomarketpricedataisavailable,loansarevaluedbyrelativevaluebenchmarkingusing
pricing derived from debtinstruments in comparable entitiesor different products inthe same entity,
or by using a credit defaultswap valuation technique, which requires inputsfor credit spreads, credit
recovery rates and interest rates.
–
Securitization lendingfacilities arevalued usinga discountedcash flowanalysis thatincorporates
adjustments for any bespoke features of the loanand collateral. Recently originated commercial real
estate loans are measured using a securitization approach based on rating agency guidelines.
Fair value hierarchy
–
Instruments with suitably deep and liquid pricing information are classified as Level 2.
–
Positions requiring the useof valuation techniques, orfor which the pricesources have insufficient
trading depth, are classified as Level 3.
Investment fund
units
Valuation
–
Predominantly exchange-traded, withreadily available quotedprices in liquidmarkets. Where market
prices are not available, fair value may be measured using net asset values (NAVs).
Fair value hierarchy
–
Listed units areclassified as Level 1,provided there issufficient trading activityto justify active-market
classification, while other positions are classified as Level 2.
–
Positions for which NAVs are not available,or where the unit or underlying investmentsare illiquid,
are classified as Level 3.
Asset-backed
securities (ABS)
Valuation
–
For liquid securities, thevaluation process will use tradeand price data, updatedfor movements in
market levelsbetween thetime oftrading andthe timeof valuation.Less liquidinstruments are
measured using discounted expected cash flowsincorporating price data for instruments orindices
with similar risk profiles.
Fair value hierarchy
–
Residential mortgage-backed securities, commercialmortgage-backed securities and otherABS are
generally classified as Level 2when reliable external pricequotes are available. However,if significant
inputs areunobservable, orif marketor fundamentaldata isnot available,they areclassified as
Level 3.
Auction rate
securities (ARS)
Valuation
–
ARS are valued utilizing adiscounted cash flow methodology. Themodel captures interest raterisk
emanatingfromthenotecoupon,creditriskattributabletotheunderlyingclosed-endfund
investments,liquidityriskasafunctionoftheleveloftradingvolumeinthesepositions,and
extension risk, as ARS are perpetual instruments that requirean assumption regarding their maturity
or issuer redemption date.
Fair value hierarchy
–
Granular and liquid pricing informationis generally not available forARS. As a result, thesesecurities
are classified as Level 3.
Equity instruments
Valuation
–
Listed equity instruments are generally valued using prices obtained directly from the market.
–
Unlisted equity holdings,including private equitypositions, are initiallymarked at theirtransaction
price andare revaluedwhen reliableevidence ofprice movementbecomes availableor whenthe
position is deemed to be impaired.
Fair value hierarchy
–
The majority of equity securitiesare actively traded on publicstock exchanges where quoted prices
are readily and regularly available, resulting in Level 1 classification.
–
Equity securities less actively traded will be classified as Level 2 and illiquid positions as Level 3.
Financial assets for
unit-linked
investment
contracts
Valuation
–
The majority of assets are listed on exchanges and fair values are determined using quoted prices.
Fair value hierarchy
–
Most assets are classified as Level 1 if actively traded, or Level 2 if trading is not active.
–
Instruments for which prices are not readily available are classified as Level 3.
Annual Report 2025
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Note 20Fair value measurement (continued)
Product
Valuation and classification in the fair value hierarchy
Securities
financing
transactions
Valuation
–
These instrumentsare valuedusing discountedexpected cashflow techniques.The discountrate
applied is based on funding curves that are relevant to the collateral eligibility terms.
Fair value hierarchy
–
Collateralfundingcurvesfortheseinstrumentsaregenerallyobservableand,asaresult,these
positions are classified as Level 2.
–
Where thecollateral termsare non-standard,the fundingcurve maybe consideredunobservable,
and these positions are classified as Level 3.
Brokerage
receivables and
payables
Valuation
–
Fair value is determined based on the value of the underlying balances.
Fair value hierarchy
–
Due to their on-demand nature, these receivables and payables are deemed as Level 2.
Financial liabilities
related to unit-
linked investment
contracts
Valuation
–
The fair values of investment contractliabilities are determined by reference to thefair value of the
corresponding assets.
Fair value hierarchy
–
The liabilitiesthemselves arenot activelytraded butare mainlyreferenced toinstruments thatare
actively traded and are therefore classified as Level 2.
Precious metals
and other physical
commodities
Valuation
–
Physical assets are valued using the spot rate observed in the relevant market.
Fair value hierarchy
–
Generally tradedin activemarkets withprices thatcan beobtained directlyfrom thesemarkets,
resulting in classification as Level 1.
Debt issued
designated at fair
value
Valuation
–
The risk managementand the valuationapproaches for theseinstruments are closelyaligned with
the equivalentderivatives businessand theunderlying risk,and thevaluation techniquesused for
this component are the same as the relevant valuation techniques described below.
Fair value hierarchy
–
The observability is closely aligned with the equivalent derivatives business and the underlying risk.
Commercial paper
and certificates of
deposit
Valuation
–
Generally valuedusing discountedcash flow valuationtechniques incorporatingthe spreadof the
issuer or similar issuers over the underlying currency risk-free curve.
Fair value hierarchy
–
Due to the short-dated natureof the positions andliquid underlying pricing inputsthey are generally
classified as Level 2.
Derivative instruments: valuation and classification in the fair value hierarchy
The curvesused fordiscounting expectedcash flowsin thevaluation ofcollateralized derivativesreflect the fundingterms
associated with the relevantcollateral arrangement forthe instrument being valued.These collateral arrangementsdiffer
acrosscounterpartieswithrespecttotheeligiblecurrencyandinteresttermsofthecollateral.Themajorityof
collateralized derivatives are measured using a discount curve basedon funding rates derived from overnight interest in
the cheapest eligible currency for the respective counterparty collateral agreement.
Uncollateralized and partiallycollateralized derivatives arediscounted using thealternative reference rate(the ARR) (or
equivalent) curvefor thecurrency ofthe instrument.As describedin Note 20d,the fairvalue ofuncollateralized and
partially collateralizedderivatives isthen adjustedby creditvaluation adjustments(CVAs), debitvaluation adjustments
(DVAs) andfunding valuationadjustments (FVAs),as applicable,to reflectan estimationof theeffect ofcounterparty
credit risk, UBS’s own credit risk, and funding costs and benefits.
›
Refer to Note 10 for more information about derivative instruments
Derivative product
Valuation and classification in the fair value hierarchy
Interest rate
contracts
Valuation
–
Interest rate swapcontracts are valuedby estimating futureinterest cash flowsand discounting those
cash flows usinga rate thatreflects the appropriatefunding rate forthe position beingmeasured.
The yield curves used to estimate future index levels and discount rates are generated using market-
standardyieldcurvemodelsusinginterestratesassociatedwithcurrentmarketactivity.Thekey
inputs to the models are interest rate swaprates, forward rate agreement rates, short-term interest
rate futures prices, basis swap spreads and inflation swap rates.
–
Interest rate option contracts are valued using various market-standard option models,using inputs
that include interest rate yield curves, inflation curves, volatilities and correlations.
–
When the maturity of an interest rate swap or option contract exceeds the term for which standard
marketquotesareobservableforasignificantinputparameter,thecontractsarevaluedby
extrapolation from the last observable point using standard assumptions or byreference to another
observable comparable input parameter to represent a suitable proxy for that portion of the term.
Fair value hierarchy
–
The majorityof interestrate swapsare classifiedas Level 2,as thestandard marketcontracts that
form the inputs for yield curve models are generally traded in active and observable markets.
–
Options are generally treatedas Level 2, as thecalibration process enables themodel output to be
validated to active-market levels. Models calibrated inthis way are then used torevalue the portfolio
of both standard options and more exotic products.
–
InterestrateswaporoptioncontractsareclassifiedasLevel 3whenthetermsexceedstandard
market-observable quotes.
–
Exoticoptionsforwhichappropriatevolatilityorcorrelationinputlevels cannotbeimplied from
observable market data are classified as Level 3.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements316
Note 20Fair value measurement (continued)
Derivative product
Valuation and classification in the fair value hierarchy
Credit derivative
contracts
Valuation
–
Creditderivativecontractsarevaluedusingindustry-standardmodelsbasedprimarilyonmarket
credit spreads, credit volatility, upfront pricing points and impliedrecovery rates. Where a derivative
credit spread is not directly available, it may be derived from the price of the reference cash bond.
–
Asset-backedcreditderivativesarevaluedusingavaluationtechniquesimilartothatofthe
underlying security with anadjustment to reflect thefunding differences betweencash and synthetic
form.
Fair value hierarchy
–
Single-entity andportfolio creditderivative contractsare classifiedas Level 2when creditspreads,
creditvolatilityandrecoveryratesaredeterminedfromactivelytradedobservablemarketdata.
Where the underlyingreference name(s) arenot actively tradedand the correlationcannot be directly
mapped to actively traded tranche instruments, these contracts are classified as Level 3.
–
Asset-backed credit derivatives follow the characteristicsof the underlying security and are therefore
distributed across Level 2 and Level 3.
Foreign exchange
contracts
Valuation
–
Open spot foreign exchange (FX) contractsare valued using the FXspot rate observed in the market.
–
Forward FX contracts are valued using the FX spot rate adjusted for forward pricing points observed
from standard market-based sources.
–
Over-the-counter(OTC)FXoptioncontractsarevaluedusingmarket-standardoptionvaluation
models. The modelsused for shorter-datedoptions (i.e. maturitiesof five yearsor less) tendto be
different fromthose usedfor longer-datedoptions, becausethe modelsneeded forlonger-dated
OTC FX contracts require additional consideration of interest rate and FX rate interdependency.
–
The valuation for multi-dimensional FX optionsuses a multi-local volatility model, whichis calibrated
to the observed FX volatilities for all relevant FX pairs.
Fair value hierarchy
–
The markets for FX spot and FX forward pricing points are both actively traded and observable and,
therefore, such FX contracts are generally classified as Level 2.
–
A significantproportion ofOTC FXoption contractsare classifiedas Level 2as inputsare derived
mostly from standard market contracts traded in active and observable markets.
Equity / index
contracts
Valuation
–
Equityforwardcontractshaveasinglestockorindexunderlyingandarevaluedusingmarket-
standard models. The key inputs to the models are stock prices, estimated dividend rates and equity
funding rates (which areimplied from prices offorward contracts observed inthe market). Estimated
cash flows are thendiscounted using market-standard discountedcash flow modelsusing a rate that
reflectstheappropriatefundingrateforthatportionoftheportfolio.Whennomarketdatais
availablefortheinstrumentmaturity,theyarevaluedbyextrapolationofavailabledata,useof
historical dividend data, or use of data for a related equity.
–
Equity option contractsare valued usingmarket-standard models thatestimate the equityforward
level asdescribed forequity forwardcontracts andincorporate inputsfor stockvolatility andfor
correlationbetweenstockswithinabasket.Theprobability-weightedexpectedoptionpayoff
generated isthen discountedusing market-standarddiscounted cashflow modelsapplying arate
that reflects the appropriatefunding rate for thatportion of the portfolio.When volatility, forward
or correlation inputs arenot available, they arevalued using extrapolationof available data, historical
dividend, correlation or volatility data, or the equivalent data for a related equity.
Fair value hierarchy
–
As inputs arederived mostly fromstandard market contractstraded in activeand observable markets,
a significant proportion of equity forward contracts are classified as Level 2.
–
Equity option positions for which inputs are derived from standard market contracts traded in active
and observable markets are also classified as Level 2.Level 3 positions are those for which volatility,
forward or correlation inputs are not observable.
Commodity
contracts
Valuation
–
Commodityforwardandswapcontractsaremeasuredusingmarket-standardmodelsthatuse
market forward levels on standard instruments.
–
Commodity option contracts are measuredusing market-standard option models thatestimate the
commodity forwardlevel asdescribed forcommodity forwardand swapcontracts, incorporating
inputs for the volatility of the underlying index or commodity. For commodity options on baskets of
commodities or bespoke commodityindices, the valuation techniquealso incorporates inputs forthe
correlation between different commodities or commodity indices.
Fair value hierarchy
–
Individual commodity contractsare typically classifiedas Level 2, becauseactive forward andvolatility
market data is available.
Loan commitments
measured at FVTPL
Valuation
–
Valued directlyusing marketprices thatreflect recenttransactions orquoted dealerprices, where
available.
–
Wherenomarketpricedataisavailable,loancommitmentsarevaluedbyrelativevalue
benchmarkingusingpricingderivedfromdebtinstrumentsincomparableentitiesordifferent
products inthe same entity,or by usinga creditdefault swap valuationtechnique, whichrequires
inputs for credit spreads, credit recovery rates and interest rates.
Fair value hierarchy
–
Instruments with suitably deep and liquid pricing information are classified as Level 2.
–
Positions requiring the useof valuation techniques, orfor which the pricesources have insufficient
trading depth, are classified as Level 3.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements317
Note 20Fair value measurement (continued)
d) Valuation adjustments and other items
The outputof avaluation techniqueis alwaysan estimateof afair valuethat cannotbe measuredwith completecertainty.
As aresult, valuations areadjusted where appropriateand whensuch factorswould beconsidered by marketparticipants
in estimating fair value, to reflect close-outcosts, credit exposure, model-driven valuation uncertainty, funding costs and
benefits, trading restrictions and other factors.
Deferred day-1 profit or loss reserves
For newtransactions wherethe valuation techniqueused to measurefair value requiressignificant inputs thatare not
based on observable market data, the financial instrument isinitially recognized at the transaction price. The transaction
price may differ from the fair value obtained using a valuation technique, where any such difference is deferred and not
initially recognized in the income statement.
Deferred day-1 profitor loss isgenerally released into
Other net incomefrom financial instrumentsmeasured at fairvalue
through profitor loss
when pricing ofequivalent products orthe underlyingparameters becomesobservable orwhen
the transaction is closed out.
The table below summarizes the changes in deferred day-1 profit or loss reserves during the respective period.
Deferred day-1 profit or loss reserves
USD m
2025
2024
2023
Reserve balance at the beginning of the year
421
404
422
Profit / (loss) deferred on new transactions
299
244
260
(Profit) / loss recognized in the income statement
(271)
(221)
(278)
Foreign currency translation
(2)
(6)
0
Reserve balance at the end of the year
446
421
404
Own credit
Own creditrisk isreflected inthe valuationof UBS’sfinancial liabilitiesdesignated atfair valuethroughprofitor loss
wherethiscomponentisconsideredrelevantforvaluationpurposesbyUBS’scounterpartiesandothermarket
participants.
Changes inthe fairvalue offinancial liabilitiesdesignated atfair valuethrough profitor lossrelated toown creditare
recognizedin
Othercomprehensiveincome
directlywithin
Retainedearnings
,
withnoreclassificationtotheincome
statementinfutureperiods.
Thispresentationdoesnotcreateorincreaseanaccountingmismatchintheincome
statement, as the Group does not hedge changes in own credit.
Gains and losses on owncredit are estimated using own creditadjustment (OCA) curves, which incorporate observable
market data, including market-observed secondary pricesfor UBS’s debt and debt curves ofits peers. In the table below,
the change in unrealized owncredit consists of changes infair value that are attributableto the change inUBS’s credit
spreads,aswellastheeffectofchangesinfairvaluesattributabletofactorsotherthancreditspreads,suchas
redemptions, effects from time decay and changes in interest and other market rates.Realized own credit is recognized
when aninstrument withan associatedunrealized OCAis repurchasedprior tothe contractualmaturity date.Life-to-
date amounts reflect the cumulative unrealized change since initial recognition.
›
Refer to Note 15 for more information about debt issued designated at fair value
Own credit adjustments on financial liabilities designated at fair value
For the year ended
USD m
31.12.25
31.12.24
31.12.23
Recognized during the period:
Realized gain / (loss)
(51)
(94)
8
Unrealized gain / (loss)
(451)
84
(1,858)
Total gain / (loss), before tax, recognized during the period and disclosed in the Statement of comprehensive income
(502)
(10)
(1,850)
USD m
31.12.25
31.12.24
31.12.23
Recognized on the balance sheet as of the end of the period:
Unrealized life-to-date gain / (loss)
(1,665)
(1,165)
(1,287)
of which: debt issued designated at fair value
(1,681)
(1,188)
(1,297)
of which: other financial liabilities designated at fair value
16
23
10
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements318
Note 20Fair value measurement (continued)
Credit valuation adjustments
When measuring the fair value of OTC derivative instruments,including funded derivative instruments that are classified
as
Financial assetsat fair valuenot held fortrading
, CVAs are appliedto reflect thecredit risk ofthe counterpartyinherent
in these instruments. This amountrepresents the estimatedfair value of protectionrequired to hedgethe counterparty
creditriskofsuchinstruments.ACVAisdeterminedforeachcounterparty,consideringallexposureswiththat
counterparty,andisdependentontheexpectedfuturevalueofexposures,defaultprobabilitiesandrecoveryrates,
applicable collateral or netting arrangements, break clauses, funding spreads, and other contractual factors.
Funding valuation adjustments
Uncollateralized FVAs reflect thecosts and benefitsof funding associatedwith uncollateralizedand partially collateralized
derivativereceivablesandpayablesandarecalculatedasthevaluationeffectfrommovingthediscountingofthe
uncollateralizedderivativecashflowsfromtheARRtoOCAusingtheCVAframework,includingtheprobabilityof
counterparty default. AnFVA is also appliedto collateralized derivativeassets in caseswhere the collateralcannot be sold
or repledgedand incases wherecollateral agreementscontain optionalityregarding thetype ofcollateral thatcan be
pledged or received.
Debit valuation adjustments
A DVA is estimated to incorporate owncredit in the valuation ofderivatives where an FVA is not already recognized.The
DVA calculation is effectively consistentwith the CVA framework, being determined foreach counterparty,considering
all exposureswith thatcounterparty andtaking intoaccount collateralnetting agreements,expected futuremark-to-
market movements and UBS’s credit default spreads.
Other valuation adjustments
Instruments thatare measured aspart ofa portfolioof combinedlong andshort positionsare valued atmid-market levels
to ensureconsistent valuation ofthe long-and short-component risks.A liquidity valuationadjustment is thenapplied
to the overall net long or short exposure to move the fair value to bid or offer as appropriate, reflecting current levels of
market liquidity.The bid–offerspreads usedin thecalculation ofthis valuationadjustment areobtained frommarket
transactions and other relevant sources and are updated periodically.
Uncertainties associatedwith theuse ofmodel-based valuationsare incorporatedinto themeasurement offair value
through the use ofmodel reserves. These reservesreflect the amounts thatthe Group estimates shouldbe adjusted from
valuations produced directly by models to incorporate uncertainties inthe relevant modeling assumptions, in the model
and market inputs used, or in thecalibration of the model output to adjustfor known model deficiencies. In arriving at
these estimates, theGroup considersa range ofmarket practices, includinghow itbelieves marketparticipants would
assess these uncertainties.Model reserves arereassessed periodically inlight of datafrom market transactions,consensus
pricing services and other relevant sources.
Other valuation adjustment reserves on the balance sheet
As of
USD m
31.12.25
31.12.24
31.12.23
Credit valuation adjustments
1
(29)
(125)
(145)
Funding and debit valuation adjustments
(50)
(96)
(116)
Other valuation adjustments
(741)
(1,207)
(2,654)
of which: liquidity
(524)
(746)
(2,051)
of which: model uncertainty
(217)
(460)
(603)
1 Amount does not include reserves against defaulted counterparties.
e) Level 3 instruments: valuation techniques and inputs
The table below presentsmaterial Level 3 assets and liabilities, togetherwith the valuation techniques used tomeasure
fair value,the inputsused ina givenvaluation techniquethat areconsidered significantas of31 December 2025and
unobservable, and a range of values for those unobservable inputs.
The range ofvalues representsthe highest-and lowest-level inputsused in thevaluation techniques.Therefore, therange
does notreflect thelevel ofuncertainty regardinga particularinput oran assessmentof thereasonableness ofthe Group’s
estimates and assumptions, but ratherthe different underlying characteristics ofthe relevant assets and liabilitiesheld by
the Group. The ranges will therefore vary from period to period and parameter to parameter based on characteristics of
the instruments held at eachbalance sheet date. Furthermore,the ranges of unobservable inputsmay differ across other
financial institutions, reflecting the diversity of the products in each firm’s inventory.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements319
Note 20Fair value measurement (continued)
Valuation techniques and inputs used in the fair value measurement of Level 3 assets and liabilities
Fair value
Significant
unobservable
input(s)
1
Range of inputs
Assets
Liabilities
Valuation
technique(s)
31.12.25
31.12.24
USD bn
31.12.25
31.12.24
31.12.25
31.12.24
low
high
weighted
average
2
low
high
weighted
average
2
unit
1
Financial instruments other than derivative financial instruments
Corporate and municipal
bonds
1.0
1.0
0.0
0.2
Relative value to
market comparable
Bond price equivalent
11
104
80
23
114
98
points
Loans at fair value (held for
trading and not held for
trading) and guarantees
3
5.6
5.2
0.0
0.0
Relative value to
market comparable
Loan price equivalent
19
101
87
1
173
84
points
Discounted expected
cash flows
Credit spread
233
277
277
16
545
195
basis
points
Market comparable
and securitization
model
Credit spread
85
1,965
323
75
1,899
208
basis
points
Asset-backed securities
0.6
0.7
0.0
0.0
Relative value to
market comparable
Bond price equivalent
6
120
82
0
112
79
points
Investment fund units
4
0.7
0.8
0.0
0.0
Relative value to
market comparable
Net asset value
Equity instruments
4
2.2
3.0
0.1
0.0
Relative value to
market comparable
Price
Securities financing
transactions
0.9
0.6
0.5
0.0
Discounted expected
cash flows
Funding spread
95
166
95
201
basis
points
Debt issued designated at
fair value and Other
financial liabilities
designated at fair value
3
13.9
16.1
Derivative financial instruments
Interest rate
1.2
0.9
0.3
0.3
Option model
Volatility of interest
rates
61
85
50
156
basis
points
Credit
0.3
0.6
0.3
0.4
Discounted expected
cash flows
Credit spreads
3
1,040
2
1,789
basis
points
Recovery rates
4
60
0
100
%
Option model
Recovery rates
0
40
%
Equity / index
1.4
1.1
4.2
3.1
Option model
Equity dividend yields
0
11
0
16
%
Volatility of equity
stocks, equity and
other indices
3
104
4
126
%
Equity-to-FX
correlation
(65)
70
(65)
80
%
Equity-to-equity
correlation
(10)
100
0
100
%
Loan commitments
measured at FVTPL
0.0
0.1
Relative value to
market comparable
Loan price equivalent
80
100
60
101
points
1 The ranges of significant unobservable inputs are represented in points, percentages and basis points.Points are a percentage of par (e.g. 100 points would be 100% of par).2 Weighted averages are provided for
most non-derivative financial instruments and werecalculated by weighting inputs based on the fairvalues of the respective instruments.Weighted averages are not providedfor inputs related to Securities financing
transactions and Derivativefinancial instruments, asthis would not be meaningful.3 Excludes securities financingtransactions. Debt issueddesignated at fair valueand Other financial liabilitiesdesignated at fair
value primarily consists ofUBS AG structured notes,which include variable maturitynotes with various equityand foreign exchange underlyingrisks, as well asrates-linked and credit-linkednotes, all of whichhave
embedded derivative parametersthat are consideredto be unobservable.The derivativeinstrument parameters fordebt issued designatedat fair value,embedded derivativesfor over-the-counterdebt instruments
reported under Otherfinancial liabilitiesdesignated at fairvalue andfunded derivativesreported under Loansat fair value(held for tradingand notheld for trading)are presented inthe correspondingderivative
financial instruments lines in this table.4 The range of inputs is not disclosed, as there is a dispersion of valuesgiven the diverse nature of the investments.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements320
Note 20Fair value measurement (continued)
Significant unobservable inputs in Level 3 positions
This section discussesthe significant unobservableinputs used inthe valuation ofLevel 3 instruments andassesses the
potential effectthat achange ineach unobservableinput inisolation mayhave ona fairvalue measurement.Relationships
between observable and unobservable inputs have not been included in the summary below.
Input
Description
Bond price equivalent
–
Where market prices are not available for a bond, fair value is measured by comparison with observable pricing data from
similar instruments. Factors consideredwhen selecting comparable instrumentsinclude credit quality, maturityand industry
of the issuer. Fair value may bemeasured either by a direct price comparisonor by conversion of an instrument price into
a yield (either as an outright yield or as a spread to the relevant benchmark rate).
–
For corporate and municipal bonds, the range represents the range of pricesfrom reference issuances used in determining
fair value. Bonds priced at 0 are distressedto the point that no recovery is expected,while prices significantly in excess of
100 or par relate to inflation-linked or structured issuancesthat pay a coupon in excess of themarket benchmark as of the
measurement date.
–
For credit derivatives,the bond pricerange represents therange of pricesused for referenceinstruments, which aretypically
converted to an equivalent yield or credit spread as part of the valuation process.
Loan price equivalent
–
Where market prices are not available for a traded loan or a loan commitment, fair value is measured by comparison with
observable pricing data forsimilar instruments. Factors consideredwhen selecting comparable instrumentsinclude industry
segment,collateral quality,maturity andissuer-specific covenants.Fair valuemay bemeasured eitherby adirect price
comparison orby conversionof aninstrument priceinto ayield. Therange representsthe rangeof pricesderived from
reference issuances of a similar credit quality usedto measure fair value for loans classifiedas Level 3. Loans priced at 0 are
distressed to the pointthat no recovery is expected,while a current price of100 represents a loan thatis expected to be
repaid in full.
Credit spread
–
Valuation modelsfor manycredit derivativesand othercredit-sensitive productsrequire aninput forthe creditspread,
which is a reflection of the credit quality of the associated referenced underlying. The credit spread of a particular security
is quotedin relationto theyield ona benchmarksecurity orreference rate,typically eitherUS Treasuryor ARR,and is
generally expressed in terms of basis points. An increase / (decrease) incredit spread will increase / (decrease) the value of
credit protection offeredby credit defaultswaps and othercredit derivative products.The income statementeffect from
such changes depends on the nature and directionof the positions held. Credit spreads may benegative where the asset
ismorecreditworthythanthebenchmarkagainstwhichthespreadiscalculated.Awidercreditspreadrepresents
decreasing creditworthiness. Therange represents adiverse set ofunderlyings, with thelower end ofthe range representing
credits of the highest quality and the upper end of the range representing greater levels of credit risk.
Funding spread
–
Structured financing transactions are valued using synthetic funding curves that best represent the assets that are pledged
as collateral forthe transactions. Theyare not representativeof where UBScan fund itselfon an unsecuredbasis but provide
an estimate ofwhere UBS cansource and deploysecured funding withcounterparties for agiven type ofcollateral. The
funding spreadsare expressed interms of basispoints, andif fundingspreads widen,this increasesthe effectof discounting.
–
A small proportionof structured debtinstruments and non-structuredfixed-rate bonds withinfinancial liabilities designated
at fair value had an exposure to funding spreads that was longer in duration than the actively traded market.
Volatility
–
Volatility measuresthe variabilityof futureprices fora particularinstrument andis generallyexpressed asa percentage,
where ahigher numberreflects amore volatileinstrument, forwhich futureprice movementsare morelikely tooccur.
Volatility is akey input intooption models, whereit is usedto derive aprobability-based distribution offuture prices for
the underlying instrument. The effect of volatility on individual positions within the portfolio is driven primarily by whether
the option contract is a long or short position. In most cases, the fair value of an option increases as a resultof an increase
in volatility and isreduced by a decreasein volatility. Generally, volatilityused in the measurementof fair value isderived
from active-market option prices (referred to as implied volatility). A key featureof implied volatility is the volatility “smile”
or “skew”, which represents the effect of pricing options of different option strikes at different implied volatility levels.
–
Volatilities of lowinterest rates tendto be muchhigher than volatilitiesof high interestrates. In addition,different currencies
may have significantly different implied volatilities.
Recovery rate
–
The projected recovery rate reflects the estimated recovery that will be realized given expected defaults; it is an analogous
pricing input for corporate or sovereigncredits. Reduction in recovery rateswill result in lower expected cashflows into the
structure upon the default of the instruments. In general, a significant increase / (decrease) in the recovery rate in isolation
would result in significantlyhigher / (lower) fair value forthe respective underlying cashsecurity. The impact ofa change
in recoveryrate ona creditderivative positionwill dependon whethercredit protectionhas beenbought orsold. The
recovery rate isultimately driven bythe value recoverablefrom collateral heldafter default occursrelative to theoutstanding
exposure at that point.
Correlation
–
Correlationmeasurestheinterrelationshipbetweenthemovementsoftwovariables.Itisexpressedasapercentage
between–100%and+100%,where+100%representsperfectlycorrelatedvariables(meaningamovementofone
variable is associated with a movement ofthe other variable in the same direction), and–100% implies that the variables
are inversely correlated (meaning amovement of one variable isassociated with a movement ofthe other variable in the
oppositedirection).Theeffectofcorrelationonthemeasurementoffairvaluedependsonthespecifictermsofthe
instruments being valued, reflecting the range of different payoff features within such instruments.
Equity dividend yields
–
The derivation of a forward price for an individual stock or index is important for measuring fair value for forward or swap
contracts and for measuring fairvalue using option pricing models.The relationship between the currentstock price and
the forward priceis based ona combination ofexpected future dividendlevels and paymenttimings, and, toa lesser extent,
the relevantfunding ratesapplicable tothe stockin question.Dividend yieldsare generallyexpressed asan annualized
percentage of the share price,with the lowest limit of0% representing a stock thatis not expected to payany dividend.
The dividend yield andtiming represent the mostsignificant parameter in determiningfair value for instrumentsthat are
sensitive to an equity forward price.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements321
Note 20Fair value measurement (continued)
f) Level 3 instruments: sensitivity to changes in unobservable input assumptions
The table below summarizes those financial assets andliabilities classified as Level 3 for which achange in one or more
oftheunobservableinputstoreflectreasonablypossiblefavorableandunfavorablealternativeassumptionswould
change fair value significantly, and the estimatedeffect thereof. The table belowdoes not represent the estimatedeffect
of stressscenarios. Interdependenciesbetween Level 1,2 and3 parametershave notbeen incorporatedin thetable.
Furthermore, direct interrelationshipsbetween the Level 3 parametersdiscussed below arenot a significant elementof
the valuation uncertainty.
Sensitivity data is estimated using a number oftechniques, including the estimation of price dispersion among different
market participants, variation in modeling approaches andreasonably possible changes to assumptions used withinthe
fair value measurementprocess. The sensitivityranges are notalways symmetrical aroundthe fair values,as the inputs
used in valuations are not always precisely in the middle of the favorable and unfavorable range.
Sensitivity data is determinedat a product orparameter level and thenaggregated assuming no diversification benefit.
Diversification would incorporateestimated correlations acrossdifferent sensitivity resultsand, as such,would resultin
anoverallsensitivitythatwouldbelessthanthesumoftheindividualcomponentsensitivities.However,theGroup
believes that the diversification benefit is not significant to this analysis.
Sensitivity of fair value measurements to changes in unobservable input assumptions
1
31.12.25
31.12.24
USD m
Favorable
changes
Unfavorable
changes
Favorable
changes
Unfavorable
changes
Loans at fair value (held for trading and not held for trading) and guarantees
2
79
(67)
185
(143)
Securities financing transactions
16
(8)
30
(24)
Auction rate securities
8
(4)
8
(6)
Asset-backed securities
15
(15)
32
(28)
Equity instruments
414
(389)
333
(308)
Investment fund units
204
(206)
179
(181)
Loan commitments measured at FVTPL
15
(25)
38
(42)
Interest rate derivatives, net
52
(23)
115
(70)
Credit derivatives, net
25
(55)
112
(117)
Foreign exchange derivatives, net
9
(6)
3
(2)
Equity / index derivatives, net
667
(570)
732
(617)
Other
206
(83)
289
(161)
Total
1,710
(1,452)
2,056
(1,700)
1 Sensitivity of issued and over-the-counter debt instruments is reported with the equivalentderivative or Other.2 Sensitivity of funded derivatives is reported under equivalent derivatives.
g) Level 3 instruments: movements during the period
The table belowpresents additional information about material Level 3 assets and liabilities measured at fairvalue ona
recurringbasis. Level3 assets andliabilitiesmay be hedgedwith instrumentsclassifiedas Level 1or Level 2in the fairvalue
hierarchy,and, asa result,realizedand unrealizedgainsand lossesincludedin thetable maynot includethe effectof related
hedging activity.Furthermore, the realizedand unrealized gains and lossespresented in the table are not limitedsolely to
those arisingfrom Level3 inputs,as valuationsare generallyderived fromboth observableand unobservableparameters.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements322
Note 20Fair value measurement (continued)
Assets and liabilities transferredinto or out ofLevel 3 are presented asif those assetsor liabilities had beentransferred
at the beginning of the year.
Movements of Level 3 instruments
USD bn
Balance
at the
beginning
of the
period
Net gains /
losses
included in
compre-
hensive
income
1
of which:
related to
instruments
held at the
end of the
period
Purchases
Sales
Issuances
Settlements
Transfers
into
Level 3
Transfers
out of
Level 3
Foreign
currency
translation
Balance
at the
end
of the
period
For the twelve months ended 31 December 2025
2
Financial assets at fair value held for trading
3.1
(0.2)
(0.2)
0.6
(1.6)
0.5
(0.4)
0.3
(0.1)
0.1
2.3
of which: Equity instruments
0.1
(0.0)
(0.0)
0.0
(0.0)
0.0
(0.0)
0.1
(0.0)
0.0
0.2
of which: Corporate and municipal bonds
0.8
(0.1)
(0.0)
0.6
(0.5)
0.0
(0.0)
0.1
(0.1)
0.0
0.9
of which: Loans
1.8
0.0
(0.1)
0.0
(0.8)
0.5
(0.4)
0.0
(0.0)
0.0
1.1
Derivative financial instruments – assets
2.8
(0.3)
(0.2)
0.0
(0.0)
1.3
(1.2)
0.9
(0.3)
(0.0)
3.2
of which: Interest rate
0.9
0.2
0.1
0.0
(0.0)
0.1
(0.3)
0.5
(0.1)
(0.1)
1.2
of which: Equity / index
1.1
(0.3)
(0.3)
0.0
(0.0)
0.8
(0.4)
0.3
(0.2)
0.0
1.4
of which: Credit
0.6
(0.1)
(0.0)
0.0
(0.0)
0.1
(0.3)
0.1
(0.0)
0.0
0.3
Financial assets at fair value not held for trading
8.7
0.7
0.6
0.3
(1.6)
2.4
(1.8)
0.2
(0.3)
0.2
8.9
of which: Loans
3.2
0.8
0.8
0.0
(0.0)
1.9
(1.5)
0.0
(0.2)
0.1
4.2
of which: Auction rate securities
0.2
0.0
0.0
0.0
(0.0)
0.0
(0.0)
0.0
(0.0)
0.0
0.2
of which: Equity instruments
2.9
0.0
(0.0)
0.2
(1.2)
0.0
(0.0)
0.0
(0.0)
0.1
2.1
of which: Investment fund units
0.7
0.0
0.0
0.1
(0.2)
0.0
(0.0)
0.0
(0.0)
0.0
0.7
of which: Asset-backed securities
0.6
(0.0)
(0.0)
0.0
(0.1)
0.0
(0.1)
0.1
(0.0)
0.0
0.5
Derivative financial instruments – liabilities
4.1
0.3
0.3
0.0
(0.0)
2.3
(1.5)
0.4
(0.6)
0.1
5.0
of which: Interest rate
0.3
0.0
(0.1)
0.0
(0.0)
0.2
(0.2)
0.0
(0.0)
0.0
0.3
of which: Equity / index
3.1
0.3
0.4
0.0
(0.0)
1.9
(1.0)
0.3
(0.5)
0.0
4.2
of which: Credit
0.4
(0.1)
(0.0)
0.0
(0.0)
0.1
(0.2)
0.0
(0.0)
0.0
0.3
of which: Loan commitments measured at
FVTPL
0.1
0.0
0.0
0.0
(0.0)
0.0
(0.0)
0.0
(0.0)
0.0
0.0
Debt issued designated at fair value
13.3
0.9
0.8
0.0
(0.0)
4.3
(3.4)
0.8
(3.7)
0.4
12.7
Other financial liabilities designated at fair value
2.8
0.1
0.0
0.0
(0.0)
0.7
(2.0)
0.0
(0.0)
0.0
1.6
For the twelve months ended 31 December 2024
Financial assets at fair value held for trading
22.6
0.5
(0.3)
0.9
(14.5)
0.7
(7.7)
1.5
(0.8)
(0.2)
3.1
of which: Equity instruments
0.3
(0.1)
(0.1)
0.0
(0.2)
0.0
(0.0)
0.2
(0.1)
(0.0)
0.1
of which: Corporate and municipal bonds
1.3
(0.2)
(0.1)
0.4
(0.6)
0.0
0.0
0.1
(0.1)
(0.0)
0.8
of which: Loans
19.6
0.9
(0.2)
0.3
(12.3)
0.7
(7.7)
1.1
(0.6)
(0.1)
1.8
Derivative financial instruments – assets
2.6
0.2
0.3
0.0
(0.2)
1.2
(1.0)
0.7
(0.7)
(0.0)
2.8
of which: Interest rate
0.4
0.1
0.1
0.0
(0.2)
0.5
(0.2)
0.2
0.0
0.0
0.9
of which: Equity / index
1.3
0.2
0.2
0.0
(0.0)
0.5
(0.4)
0.2
(0.6)
(0.0)
1.1
of which: Credit
0.5
(0.1)
(0.0)
0.0
(0.0)
0.1
(0.2)
0.3
(0.0)
(0.0)
0.6
Financial assets at fair value not held for trading
8.4
0.2
(0.0)
0.6
(0.7)
2.1
(2.1)
0.8
(0.4)
(0.2)
8.7
of which: Loans
2.3
0.2
0.2
0.2
0.0
1.5
(0.6)
0.0
(0.3)
(0.1)
3.2
of which: Auction rate securities
1.2
0.0
(0.0)
0.0
0.0
0.0
(1.1)
0.0
0.0
0.0
0.2
of which: Equity instruments
3.1
(0.1)
(0.2)
0.2
(0.3)
0.0
(0.0)
0.1
0.0
(0.1)
2.9
of which: Investment fund units
0.7
0.0
0.0
0.1
(0.2)
0.0
(0.0)
0.0
(0.0)
(0.0)
0.7
of which: Asset-backed securities
0.2
(0.0)
(0.0)
0.0
(0.1)
0.0
0.0
0.5
(0.0)
(0.0)
0.6
Derivative financial instruments – liabilities
5.6
(0.7)
0.2
0.0
(0.2)
1.8
(2.3)
0.6
(0.8)
(0.1)
4.1
of which: Interest rate
0.2
0.0
0.1
0.0
(0.0)
0.0
(0.1)
0.2
(0.0)
(0.0)
0.3
of which: Equity / index
3.3
0.3
0.3
0.0
(0.0)
1.6
(1.9)
0.5
(0.6)
(0.1)
3.1
of which: Credit
0.6
(0.2)
(0.1)
0.0
(0.0)
0.2
(0.1)
0.0
(0.1)
(0.0)
0.4
of which: Loan commitments measured at
FVTPL
1.0
(0.7)
(0.0)
0.0
(0.1)
0.0
(0.1)
0.0
(0.1)
(0.0)
0.1
Debt issued designated at fair value
15.3
(0.3)
0.1
0.0
0.0
4.2
(4.0)
1.8
(3.4)
(0.3)
13.3
Other financial liabilities designated at fair value
2.6
(0.1)
(0.0)
0.0
(0.0)
1.3
(1.4)
0.4
(0.1)
(0.1)
2.8
1 Net gains / losses includedin comprehensive income are recognizedin Net interest income andOther net income from financialinstruments measured at fair valuethrough profit or loss inthe Income statement,
and also in Gains / (losses) fromown credit on financial liabilities designatedat fair value, beforetax in the Statement of comprehensiveincome.2 Total Level 3 assets asof 31 December 2025 were USD
14.5
bn
(31 December 2024: USD
14.7
bn). Total Level 3 liabilities as of 31 December 2025 were USD
19.4
bn (31 December 2024: USD
20.4
bn).
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements323
Note 20Fair value measurement (continued)
h) Maximum exposure to credit risk for financial instruments measured at fair value
The tables below providethe Group’s maximum exposureto credit risk forfinancial instruments measured atfair value
andtherespectivecollateralandothercreditenhancementsmitigatingcreditriskfortheseclassesoffinancial
instruments.
The maximum exposure to creditrisk includes the carrying amountsof financial instruments recognized onthe balance
sheet subject tocredit risk andthe notional amountsfor off-balance sheetarrangements. Where informationis available,
collateral is presented at fair value. For other collateral, such as real estate, a reasonable alternative value is used. Credit
enhancements,suchascreditderivativecontractsandguarantees,areincludedattheirnotionalamounts.Bothare
capped atthe maximumexposure tocredit riskfor whichthey serveas security.The “Riskmanagement andcontrol”
section of thisreport describes management’sview of creditrisk and therelated exposures, whichcan differ incertain
respects from the requirements of IFRS Accounting Standards.
Maximum exposure to credit risk
31.12.25
Maximum
exposure to
credit risk
Collateral
Credit enhancements
Exposure to
credit risk
after collateral
and credit
enhancements
USD bn
Cash
collateral
received
Collateralized
by equity and
debt
instruments
Secured by
real estate
Other
collateral
Netting
Credit
derivative
contracts
Guarantees
and sub-
participations
Financial assets measured at
fair value on the balance sheet
1
Financial assets at fair value
held for trading – debt instruments
2,3
36.9
36.9
Derivative financial instruments
4,5
147.8
6.6
125.6
15.6
Brokerage receivables
35.6
35.4
0.2
Financial assets at fair value not
held for trading – debt instruments
6
82.9
0.0
31.0
0.6
0.0
0.0
51.3
Total financial assets measured at fair value
303.2
0.0
73.0
0.0
0.6
125.6
0.0
0.0
104.0
Guarantees
0.3
0.0
0.1
0.2
0.0
31.12.24
Maximum
exposure to
credit risk
Collateral
Credit enhancements
Exposure to
credit risk
after collateral
and credit
enhancements
USD bn
Cash
collateral
received
Collateralized
by equity and
debt
instruments
Secured by
real estate
Other
collateral
Netting
Credit
derivative
contracts
Guarantees
and sub-
participations
Financial assets measured at
fair value on the balance sheet
1
Financial assets at fair value
held for trading – debt instruments
2,3
34.3
34.3
Derivative financial instruments
4,5
185.6
6.7
155.1
23.8
Brokerage receivables
25.9
25.7
0.2
Financial assets at fair value not
held for trading – debt instruments
6
73.8
0.1
31.5
1.0
0.0
0.0
41.3
Total financial assets measured at fair value
319.6
0.1
63.9
0.0
1.0
155.1
0.0
0.0
99.6
Guarantees
0.4
0.1
0.0
0.3
0.0
1 The maximum exposure toloss is generally equal tothe carrying amount and subject tochange over time with marketmovements.2 For the purpose ofthis disclosure, collateraland credit enhancements were
not considered as thesepositions are generally managedunder the market riskframework.3 Does not include investmentfund units.4 Includes USD
32
m of fair valueloan commitments (31 December2024:
USD
146
m) and USD
7
m of forwardstarting reverse repurchaseagreements classified asderivatives (31 December2024: USD
20
m). The fullcontractual committed amountof forward startingreverse repurchase
agreements (generallyhighly collateralized)of USD
54.5
bn (31December 2024USD
51.5
bn) andderivative loancommitments (mostlysecured) ofUSD
13.6
bn, ofwhich USD
3.5
bn hasbeen sub-participated
(31 December 2024: USD
14.8
bn, of which USD
4.0
bn had been sub-participated), is presented in Note 10under notional amounts.5 The amount shown in the “Netting” columnrepresents the netting potential
not recognizedon thebalance sheet.Refer toNote 21 formore information.6 Does notinclude unit-linkedinvestment contractsand investmentfund units.Financial assetsat fairvalue notheld fortrading
collateralized by equity and debt instruments consisted of structured loans and reverse repurchase and securities borrowing agreements.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements324
Note 20Fair value measurement (continued)
i) Financial instruments not measured at fair value
The table below provides the estimated fair values of financial instruments not measured at fair value.
Financial instruments not measured at fair value
31.12.25
31.12.24
Carrying
amount
Fair value
Carrying
amount
Fair value
USD bn
Total
Carrying
amount
approximates
fair value
1
Level 1
Level 2
Level 3
Total
Total
Carrying
amount
approximates
fair value
1
Level 1
Level 2
Level 3
Total
Assets
Cash and balances at central banks
209.9
209.9
0.0
0.0
0.0
209.9
223.3
223.3
0.0
0.0
0.0
223.3
Amounts due from banks
19.6
18.8
0.0
0.8
0.0
19.6
18.9
17.9
0.0
0.8
0.2
18.9
Receivables from securities financing
transactions measured at amortized cost
83.7
79.4
0.0
3.7
0.5
83.7
118.3
115.1
0.0
2.8
0.4
118.3
Cash collateral receivables on derivative
instruments
41.6
41.6
0.0
0.0
0.0
41.6
44.0
44.0
0.0
0.0
0.0
44.0
Loans and advances to customers
653.8
177.8
0.0
41.0
430.1
648.9
580.0
180.9
0.0
43.9
354.9
579.7
Other financial assets measured at amortized
cost
71.9
12.1
16.2
40.1
2.8
71.1
58.8
10.1
13.2
31.0
2.8
57.0
Liabilities
Amounts due to banks
24.4
16.4
0.0
8.1
0.0
24.5
23.3
16.2
0.0
7.2
0.0
23.4
Payables from securities financing
transactions measured at amortized cost
16.2
6.1
0.0
9.9
0.2
16.2
14.8
7.1
0.0
7.5
0.2
14.8
Cash collateral payables on derivative
instruments
34.2
34.2
0.0
0.0
0.0
34.2
35.5
35.5
0.0
0.0
0.0
35.5
Customer deposits
788.4
730.4
0.0
58.6
0.0
789.0
745.8
673.9
0.0
72.6
0.0
746.6
Debt issued measured at amortized cost
214.7
16.1
0.0
203.8
0.0
219.9
214.2
19.6
0.0
201.0
0.0
220.6
Other financial liabilities measured at
amortized cost
2
11.6
11.6
0.0
0.0
0.0
11.6
16.4
15.0
0.0
0.1
1.3
16.4
1 Includes certain financial instruments where the carrying amount is a reasonable approximationof the fair value due to the instruments’ short-term nature (instruments that arereceivable or payable on demand or
with a remaining maturity (excluding the effects of callable features) of three months or less).2 Excludes lease liabilities.
The fair values includedin the table abovehave been calculated fordisclosure purposes only.The valuation techniques
and assumptions described below relate only to the fair value ofUBS’s financial instruments not measured at fair value.
Other institutionsmay usedifferentmethods andassumptions fortheir fairvalue estimations,and thereforesuch fair
value disclosures cannot necessarilybe compared from one financialinstitution to another. The following principles were
applied when determining fair value estimates for financial instruments not measured at fair value.
–
For financialinstruments withremaining maturitiesgreater thanthree months,the fairvalue wasdetermined from
quoted market prices, if available.
–
Where quoted market prices were not available, the fair values were estimated by discounting contractual cash flows
using currentmarket interestrates orappropriate yieldcurves forinstruments withsimilar creditrisk andmaturity.
These estimates generally include adjustments for counterparty credit risk or UBS’s own credit.
–
For short-term financial instruments with remaining maturities of three months or less, the carrying amount, which is
net of credit loss allowances, is generally considered a reasonable estimate of fair value.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements325
Note 21Offsetting financial assets and financial liabilities
UBS enters into netting agreements with counterparties to managethe credit risks associated primarily with repurchase
andreverserepurchasetransactions,securitiesborrowingandlending,over-the-counterderivatives,andexchange-
tradedderivatives.Thesenettingagreementsandsimilararrangementsgenerallyenablethecounterpartiestoset
liabilitiesoffagainstavailableassetsreceivedintheordinarycourseofbusinessand / orintheeventthatthe
counterparties to the transaction are unable to fulfill their contractual obligations.
The tables below providea summary of financialassets and financial liabilitiessubject to offsetting, enforceable master
nettingarrangementsandsimilaragreements,aswellasfinancialcollateralreceivedorpledgedtomitigatecredit
exposures for these financial instruments.
TheGroupengagesinavarietyofcounterpartycreditriskmitigationstrategiesinadditiontonettingandcollateral
arrangements. Therefore, the net amounts presented in the tablesbelow do not purport to represent their actual credit
risk exposure.
Financial assets subject to offsetting, enforceable master netting arrangements and similar agreements
Assets subject to netting arrangements
Netting recognized on the balance sheet
Netting potential not recognized on
the balance sheet
1
Assets not
subject to netting
arrangements
2
Total assets
As of 31.12.25, USD bn
Gross assets
before netting
Netting with
gross liabilities
3
Net assets
recognized
on the
balance
sheet
Financial
liabilities
Collateral
received
Assets after
consideration
of
netting
potential
Assets
recognized
on the
balance
sheet
Total assets
after
consideration
of netting
potential
Total assets
recognized
on the
balance
sheet
Receivables from securities financing
transactions measured at amortized cost
91.5
(21.9)
69.6
(2.0)
(67.1)
0.5
14.0
14.5
83.7
Derivative financial instruments
141.4
(3.4)
138.0
(110.3)
(21.9)
5.8
9.8
15.6
147.8
Cash collateral receivables on
derivative instruments
4
40.1
0.0
40.1
(24.1)
(1.7)
14.2
1.5
15.7
41.6
Financial assets at fair value
not held for trading
114.3
(88.3)
26.0
(1.3)
(24.8)
0.0
81.5
81.5
107.6
of which: reverse
repurchase agreements
108.9
(88.3)
20.6
(1.3)
(19.3)
0.0
0.2
0.2
20.8
Total assets
387.3
(113.6)
273.7
(137.7)
(115.5)
20.5
106.9
127.3
380.6
As of 31.12.24, USD bn
Receivables from securities financing
transactions measured at amortized cost
111.4
(13.3)
98.2
(3.1)
(95.0)
0.1
20.1
20.3
118.3
Derivative financial instruments
177.9
(2.6)
175.2
(135.5)
(26.2)
13.5
10.3
23.8
185.6
Cash collateral receivables on
derivative instruments
4
42.0
0.0
42.0
(25.9)
(2.4)
13.7
1.9
15.7
44.0
Financial assets at fair value
not held for trading
112.3
(87.1)
25.2
(1.8)
(23.3)
0.1
70.3
70.4
95.5
of which: reverse
repurchase agreements
109.6
(87.1)
22.5
(1.8)
(20.6)
0.1
1.0
1.0
23.4
Total assets
443.6
(103.0)
340.6
(166.4)
(146.9)
27.4
102.7
130.1
443.3
1 For the purpose of thisdisclosure, the amounts of financialinstruments and cash collateral presented havebeen capped so as not to exceedthe net amount of financial assets presentedon the balance sheet; i.e.
over-collateralization, whereit exists, isnot reflected inthe table.2 Includes assetsnot subject toenforceable netting arrangementsand other out-of-scopeitems.3 The logicof the tableresults in amounts
presented in the “Netting with gross liabilities”column corresponding directly to the amountspresented in the “Netting with gross assets”column in the liabilities table presentedbelow. Netting in this columnfor
reverse repurchase agreementspresented within thelines “Receivablesfrom securities financingtransactions measuredat amortized cost”and “Financial assetsat fair valuenot held fortrading” takentogether
corresponds to the amounts presented for repurchase agreements in the “Payablesfrom securities financing transactions measured at amortized cost” and “Other financialliabilities designated at fair value” lines in
the liabilities table presented below.4 The net amount of Cash collateral receivables on derivative instruments recognized on the balance sheet includes certain OTCderivatives that are legally net settled on a daily
basis and exchange-traded derivatives that are economically settled on a daily basis.
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Note 21Offsetting financial assets and financial liabilities (continued)
Financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements
Liabilities subject to netting arrangements
Netting recognized on the balance sheet
Netting potential not recognized
on the balance sheet
1
Liabilities not
subject
to netting
arrangements
2
Total liabilities
As of 31.12.25, USD bn
Gross
liabilities
before
netting
Netting with
gross assets
3
Net
liabilities
recognized
on the
balance
sheet
Financial
assets
Collateral
pledged
Liabilities
after
consideration
of netting
potential
Liabilities
recognized
on the
balance
sheet
Total
liabilities
after
consideration
of netting
potential
Total
liabilities
recognized
on the
balance
sheet
Payables from securities financing
transactions measured at amortized cost
36.4
(21.1)
15.2
(2.0)
(13.2)
4
0.0
1.0
1.0
16.2
Derivative financial instruments
151.2
(3.4)
147.8
(110.3)
(29.0)
8.5
8.5
17.0
156.2
Cash collateral payables on
derivative instruments
5
32.3
0.0
32.3
(15.3)
(1.7)
15.3
1.9
17.2
34.2
Other financial liabilities
designated at fair value
94.1
(89.1)
5.0
(1.3)
(3.7)
0.0
23.1
23.1
28.2
of which: repurchase agreements
92.7
(89.1)
3.6
(1.3)
(2.3)
0.0
0.3
0.3
3.8
Total liabilities
314.0
(113.6)
200.4
(128.9)
(47.7)
23.8
34.5
58.3
234.9
As of 31.12.24, USD bn
Payables from securities financing
transactions measured at amortized cost
25.0
(11.5)
13.5
(1.1)
(12.4)
4
0.0
1.4
1.4
14.8
Derivative financial instruments
176.2
(2.6)
173.5
(135.5)
(30.8)
7.2
7.1
14.3
180.6
Cash collateral payables on
derivative instruments
5
33.9
0.0
33.9
(19.3)
(2.4)
12.2
1.6
13.8
35.5
Other financial liabilities
designated at fair value
96.8
(88.9)
7.8
(3.8)
(4.0)
0.0
20.9
20.9
28.7
of which: repurchase agreements
94.7
(88.9)
5.8
(3.8)
(2.0)
0.0
0.0
0.0
5.8
Total liabilities
331.8
(103.0)
228.8
(159.8)
(49.5)
19.4
30.9
50.3
259.7
1 For the purpose of this disclosure, the amounts of financial instruments and cash collateral presented have been capped so as not to exceed the net amount of financial liabilities presented on the balance sheet; i.e.
over-collateralization, where itexists, is not reflectedin the table.2 Includes liabilities not subjectto enforceable netting arrangementsand other out-of-scope items.3 The logic ofthe table results in amounts
presented in the“Netting with grossassets” column correspondingdirectly to theamounts presented inthe “Netting withgross liabilities” columnin the assetstable presented above.Netting in thiscolumn for
repurchase agreements presented within the lines “Payables from securities financing transactions measured at amortized cost” and “Other financialliabilities designated at fair value” taken together corresponds to
the amounts presented for reverse repurchase agreementsin the “Receivables from securities financingtransactions measured at amortized cost” and“Financial assets at fair value notheld for trading” lines in the
assets table presented above.4 Includes collateral of USD
9.1
bn (2024: USD
8.8
bn) for securities financing transactionsmeasured at amortized cost thatuse UBS debt instruments asthe underlying.5 The net
amount of Cash collateralpayables on derivativeinstruments recognized onthe balance sheet includescertain OTC derivativesthat are legally netsettled on a dailybasis and exchange-tradedderivatives that are
economically settled on a daily basis.
Note 22Restricted and transferred financial assets
This Noteprovides informationabout restrictedfinancial assets(Note 22a),transfers offinancial assets(Note 22band
22c) and financial assets that are received as collateral with the right to resell or repledge these assets (Note 22d).
a) Restricted financial assets
Restricted financialassets consistof assetspledged ascollateral againstan existingliability orcontingent liabilityand
other assets that are otherwise explicitly restricted such that they cannot be used to secure funding.
Financialassetspledgedascollateralincludepledgedmortgageloans,whichserveascollateralforexistingliabilities
against Swiss mortgageinstitutions and USFederal Home LoanBanks, and inconnection with theissuance of covered
bonds. Existing liabilitiesagainst Swiss centralmortgage institutions andUS Federal HomeLoan Banks andfor existing
covered bond issuances were USD
53.1
bn as of 31 December 2025 (31 December 2024: USD
48.4
bn).
Other financialassets arepledged ascollateral inrelation tosecurities lendingtransactions andin repurchasetransactions,
which are generallyentered into understandard marketagreements. For securitieslending, the cashreceived as collateral
maybemoreorlessthanthefairvalueofthesecuritiesloaned,dependingonthenatureofthetransaction.For
repurchase agreements, thefair value ofthe collateral soldunder an agreementto repurchase isgenerally in excessof
the cash borrowed.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements327
Note 22Restricted and transferred financial assets (continued)
Other restrictedfinancial assetsinclude assetsprotected underclient assetsegregation rules,assets heldunder unit-linked
investment contracts to back related liabilitiesto the policy holders and assetsheld in certain jurisdictions to complywith
explicit minimum localasset maintenance requirements.The carrying amountof the liabilitiesassociated with theseother
restricted financialassets isgenerally equalto thecarrying amountof theassets, withthe exceptionof assetsheld to
comply with local asset maintenance requirements, for which the associated liabilities are greater.
Restricted financial assets
USD m
31.12.25
31.12.24
Restricted
financial assets
of which: assets
pledged as
collateral that
may be sold or
repledged by
counterparties
Restricted
financial assets
of which: assets
pledged as
collateral that
may be sold or
repledged by
counterparties
Financial assets pledged as collateral
Cash and balances at central banks
1
1,031
876
Financial assets at fair value held for trading
84,065
44,627
71,050
38,532
Loans and advances to customers
71,123
70,342
Financial assets at fair value not held for trading
4,670
3,202
3,645
2,566
Other financial assets measured at amortized cost
10,150
8,689
8,703
7,891
Financial assets measured at fair value through other comprehensive income
43
43
Total financial assets pledged as collateral
171,083
154,616
Other restricted financial assets
Amounts due from banks
2,794
2,570
Financial assets at fair value held for trading
179
264
Cash collateral receivables on derivative instruments
8,405
8,006
Loans and advances to customers
146
175
Other financial assets measured at amortized cost
2
4,852
4,186
Financial assets at fair value not held for trading
24,747
20,645
Financial assets measured at fair value through other comprehensive income
1,843
1,863
Other
285
128
Total other restricted financial assets
43,251
37,837
Total financial assets pledged and other restricted financial assets
3
214,334
192,453
1 Predominantly reflects assetspledged to the depositorprotection system in Switzerland.2 Predominantly includes cashcollateral provided toexchanges and clearing housesto secure securities tradingactivity
through those counterparties.3 Does not include assets placed withcentral banks related to undrawn credit lines and forpayment, clearing and settlement purposes, as well as undrawn contingencyfunding facilities
(31 December 2025: USD
42.6
bn; 31 December 2024: USD
30.5
bn).
In addition torestrictions on financialassets, UBS GroupAG and itssubsidiaries are, incertain cases, subjectto regulatory
requirementsthataffectthetransferofdividendsandcapitalwithintheGroup,aswellasintercompanylending.
Supervisory authorities mayalso requireentities to measurecapital and leverageratios on astressed basis, suchas the
FederalReserveBoard’sComprehensiveCapitalAnalysisandReview(CCAR)process,whichmaylimittherelevant
subsidiaries’ ability to make distributions of capital based on the results of those tests.
Supervisoryauthoritiesgenerallyhavediscretiontoimposehigherrequirements ortootherwiselimittheactivitiesof
subsidiaries.
Non-regulated subsidiaries are generally not subject to such requirements and transfer restrictions. However, restrictions
canalsobetheresultofdifferentlegal,regulatory,contractual,entity-orcountry-specificarrangementsand / or
requirements.
›
Refer to the “Financial and regulatory key figures for our significant regulatedsubsidiaries and sub-groups” section of this report
for financial information about significant regulated subsidiaries of the Group
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements328
Note 22Restricted and transferred financial assets (continued)
b) Transferred financial assets that are not derecognized in their entirety
Thetablebelowpresentsinformationforfinancialassetsthathavebeentransferredbutaresubjecttocontinued
recognition in full, as well as recognized liabilities associated with those transferred assets.
Transferred financialassets subject to continued recognition in full
USD m
31.12.25
31.12.24
Carrying amount
of transferred
assets
Carrying amount of
associated liabilities
recognized
on balance sheet
Carrying amount
of transferred
assets
Carrying amount of
associated liabilities
recognized
on balance sheet
Financial assets at fair value held for trading that may be sold or repledged by counterparties
44,627
24,137
38,532
19,690
Financial assets at fair value not held for trading that may be sold or repledged by
counterparties
3,202
2,580
2,566
2,012
Other financial assets measured at amortized cost that may be sold or repledged by
counterparties
8,689
7,575
7,891
7,442
Financial assets measured at fair value through other comprehensive income that may be sold
or repledged by counterparties
43
43
Total financial assets transferred
56,561
34,335
48,989
29,144
Transactionsin whichfinancial assetsare transferredbut continueto berecognized intheir entiretyon UBS’sbalance
sheet includesecurities lendingand repurchaseagreements, aswell asother financialasset transfers.Repurchase and
securities lendingarrangements are,for themost part,conducted understandard marketagreements andare undertaken
with counterparties subject to UBS’s normal credit risk control processes.
›
Refer to Note 1a item 2e for more information about repurchaseand securities lending agreements
Financial assets at fairvalue held for tradingthat may be soldor repledged by counterpartiesinclude securities lending
andrepurchaseagreementsinexchangeforcashreceived,securitieslendingagreementsinexchangeforsecurities
received and other financial asset transfers.
Forsecuritieslendingandrepurchaseagreements,ahaircutofbetween
0
%and
15
%isgenerallyappliedtothe
transferredassets,whichresultsinassociatedliabilitieshavingacarryingamountbelowthecarryingamountofthe
transferred assets. The counterparties to the associated liabilities included in the table above have full recourse to UBS.
In securitieslending arrangements enteredinto in exchangefor thereceipt of othersecurities as collateral,neither the
securities received nor the obligation to return them are recognized on UBS’sbalance sheet, as the risks and rewards of
ownership are nottransferred to UBS.In cases wheresuch financial assets receivedare subsequently sold orrepledged
in another transaction,this is not considered to be a transfer of financial assets.
Other financial assettransfers primarily includesecurities transferred tocollateralize derivative transactions,for which the
carrying amountof associatedliabilities isnot includedin thetable above,because thosereplacement valuesare managed
on aportfolio basisacross counterparties andproduct types, andtherefore there isno directrelationship between the
specific collateral pledged and the associated liability.
Transferred financial assets that are not subject to derecognition in full but remain on the balance sheet to the extent of
the Group’s continuing involvement were not material as of 31 December 2025 and as of 31 December 2024.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements329
Note 22Restricted and transferred financial assets (continued)
c) Transferred financial assets that are derecognized in their entirety with continuing involvement
Continuing involvement in a transferred and fullyderecognized financial asset may result fromcontractual provisions in
the particular transfer agreementor from aseparate agreement, with thecounterparty or a thirdparty, entered into in
connection with the transfer.
The fair value and carrying amount of UBS’s continuinginvolvement from transferred positions as of 31 December2025
and 31 December2024 was notmaterial. Life-to-date lossesreported in priorperiods primarily relatedto legacy positions
in securitization vehicles that have been fully marked down, with no remaining exposure to loss.
d) Off-balance sheet assets received
The table below presents assets received from third partiesthat can be sold orrepledged and that are not recognized on
the balance sheet but that are held as collateral, including amounts that have been sold or repledged.
Off-balance sheet assets received
USD m
31.12.25
31.12.24
Fair value of assets received that can be sold or repledged
1
674,167
581,769
of which: sold or repledged
2
499,184
383,227
1 Includes securities received as initial margin from its clients that UBS is required to remit to central counterparties,brokers and deposit banks through its exchange-traded derivativeclearing and execution services.
2 Does not include off-balance sheet securities (31 December 2025: USD
15.3
bn; 31 December 2024: USD
21.4
bn) placed with central banks related to undrawn credit lines and for payment, clearing and settlement
purposes for which there are no associated liabilities or contingent liabilities.
Note 23Maturity analysis of assets and liabilities
a) Maturity analysis of carrying amounts of assets and liabilities
The tablebelow providesan analysisof carryingamounts ofbalance sheetassets andliabilities, aswell asoff-balance
sheet exposuresby residualcontractual maturityasof thereportingdate.Theresidualcontractual maturityofassets
includes the effects of callable features. The residual contractual maturity of liabilities andoff-balance sheet exposures is
based on the earliest date on which a third party could require UBS to pay.
Derivative financial instruments and financial assetsand liabilities at fair value heldfor trading are presented in the
Due
within 1 month
column; however, the respectivecontractual maturities mayextend over periods significantlylonger than
one month.
Assets held to hedgeunit-linked investment contracts(presented within
Financial assets at fairvalue not held fortrading
)
arepresented inthe
Due within1month
column, consistentwith thematurity assignedto therelated amountsdue
under unit-linked investment contracts (presented within
Other financial liabilities designated at fair value
).
Other financialassets and liabilitieswith nocontractual maturity,such asequity securities,are presentedin the
Perpetual /
Not applicable
column. Undated or perpetual instruments areclassified based on the contractual notice periodthat the
counterparty ofthe instrumentis entitledto give.Where thereis nocontractual noticeperiod, undatedor perpetual
contracts are presented in the
Perpetual / Not applicable
column.
Non-financial assets andliabilities with nocontractual maturity aregenerally included inthe
Perpetual / Notapplicable
column.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements330
Note 23Maturity analysis of assets and liabilities (continued)
Maturity analysis of carrying amounts of assets and liabilities
31.12.25
USD bn
Due within
1 month
Due between
1 and 3
months
Due between
3 and 12
months
Due between
1 and 2 years
Due between
2 and 5 years
Due over
5 years
Perpetual /
Not
applicable
Total
Assets
Total financial assets measured at amortized cost
532.1
45.0
77.4
131.2
160.5
134.3
1,080.5
Amounts due from banks
17.9
0.8
0.7
0.0
0.1
0.1
19.6
Loans and advances to customers
183.4
31.9
67.6
122.2
137.9
110.9
653.8
Other financial assets measured at amortized cost
10.8
1.4
5.0
8.9
22.5
23.3
71.9
Total financial assets measured at fair value through profit or
loss
401.3
10.4
12.4
22.1
14.5
1.3
3.7
465.6
Financial assets at fair value not held for trading
43.2
10.4
12.4
22.1
14.5
1.3
3.7
107.6
Financial assets measured at fair value through other
comprehensive income
0.1
0.6
1.4
0.0
0.5
11.2
13.9
Total non-financial assets
18.9
0.5
0.3
1.0
36.9
57.5
Total assets
952.4
56.1
91.6
153.3
175.7
147.8
40.6
1,617.4
Liabilities
Total financial liabilities measured at amortized cost
750.6
64.1
86.3
33.7
73.3
68.3
17.5
1,093.8
Customer deposits
675.0
55.1
37.3
9.1
11.7
0.1
788.4
Debt issued measured at amortized cost
8.9
7.2
42.3
19.8
52.3
66.7
17.5
214.7
of which: non-subordinated
8.9
7.2
42.1
19.7
52.2
66.7
196.8
of which: subordinated
0.0
0.2
0.0
0.1
17.5
17.9
Total financial liabilities measured at fair value through
profit or loss
1
310.6
10.9
24.1
31.8
12.4
24.3
414.1
Debt issued designated at fair value
14.4
10.5
22.9
30.6
11.9
23.5
113.8
Total non-financial liabilities
10.4
5.2
0.0
0.1
0.2
0.2
2.8
19.0
Total liabilities
1,071.7
80.2
110.3
65.6
85.9
92.9
20.4
1,526.9
Guarantees, loan commitments and forward starting transactions
2
Irrevocable loan commitments
80.7
0.6
0.8
0.1
82.1
Guarantees
47.4
47.4
Forward starting reverse repurchase and securities borrowing
agreements
10.7
10.7
Irrevocable committed prolongation of existing loans
3.3
2.1
2.8
0.0
8.2
Total
142.0
2.7
3.5
0.1
148.4
31.12.24
USD bn
Due within
1 month
Due between
1 and 3
months
Due between
3 and 12
months
Due between
1 and 2 years
Due between
2 and 5 years
Due over
5 years
Perpetual /
Not
applicable
Total
Assets
Total financial assets measured at amortized cost
556.1
50.6
69.9
115.7
128.9
122.2
1,043.3
Amounts due from banks
17.1
0.8
0.6
0.0
0.2
0.1
18.9
Loans and advances to customers
162.6
33.4
61.5
108.5
110.9
103.1
580.0
Other financial assets measured at amortized cost
9.5
0.9
5.2
6.6
17.6
18.9
58.8
Total financial assets measured at fair value through profit or
loss
412.2
6.5
14.2
13.5
12.7
2.3
4.5
465.9
Financial assets at fair value not held for trading
41.7
6.5
14.2
13.5
12.7
2.3
4.5
95.5
Financial assets measured at fair value through other
comprehensive income
0.5
0.8
0.9
0.0
0.0
0.0
2.2
Total non-financial assets
13.4
0.3
0.6
0.0
2.5
1.1
35.8
53.6
Total assets
982.1
58.1
85.6
129.2
144.1
125.6
40.3
1,565.0
Liabilities
Total financial liabilities measured at amortized cost
687.1
79.9
88.1
45.9
75.1
64.3
14.3
1,054.7
Customer deposits
608.1
65.4
51.2
8.9
11.8
0.3
745.8
Debt issued measured at amortized cost
9.8
9.8
32.7
32.4
54.0
61.2
14.3
214.2
of which: non-subordinated
9.8
9.8
32.4
32.1
53.9
61.2
199.2
of which: subordinated
0.3
0.3
0.1
14.3
15.0
Total financial liabilities measured at fair value through
profit or loss
1
299.7
11.9
27.7
26.7
13.1
22.4
401.5
Debt issued designated at fair value
12.0
11.4
26.3
25.1
11.6
21.6
107.9
Total non-financial liabilities
15.0
4.4
0.1
0.2
0.4
0.4
2.6
23.2
Total liabilities
1,001.8
96.3
115.9
72.9
88.6
87.1
16.9
1,479.5
Guarantees, loan commitments and forward starting transactions
2
Irrevocable loan commitments
78.7
0.5
0.4
0.0
79.6
Guarantees
40.7
40.7
Forward starting reverse repurchase and securities borrowing
agreements
24.9
24.9
Irrevocable committed prolongation of existing loans
2.5
0.7
1.4
0.0
4.6
Total
146.7
1.2
1.7
0.0
149.8
1 As of 31 December 2025 and 31December 2024, the contractual redemption amountat maturity of debt issued designated atfair value through profit or loss andother financial liabilities designated at fairvalue
through profit or loss was not materially different from the carrying amount.2 The notional amounts associated with derivative loan commitments and forward starting repurchase and reverse repurchase agreements
measured at fair value through profit or loss are presented together with the total notional amounts related to derivativeinstruments in Note 10 and have been excluded from the table above.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements331
Note 23Maturity analysis of assets and liabilities (continued)
b) Maturity analysis of financial liabilities on an undiscounted basis
The table below providesan analysis of financial liabilities onan undiscounted basis, including all cashflows relating to
principal and futureinterest payments.The residualcontractual maturities fornon-derivative and non-tradingfinancial
liabilities arebased onthe earliestdate onwhich UBScould becontractually requiredto pay.Derivative positionsand
trading liabilities, predominantlymade up ofshort sale transactions, arepresented in the
Due within 1month
column,
as this provides a conservative reflection of the nature of these tradingactivities. The residual contractual maturities may
extend over periods significantly longer than one month.
Maturity analysis of financial liabilities on an undiscounted basis
31.12.25
USD bn
Due within
1 month
Due between
1 and 3
months
Due between
3 and 12
months
Due between
1 and 2 years
Due between
2 and 5 years
Due over
5 years
Perpetual /
Not
applicable
Total
Financial liabilities recognized on balance sheet
1
Amounts due to banks
15.5
1.4
4.6
2.1
1.6
25.2
Payables from securities financing transactions
5.8
0.4
1.6
2.3
6.5
16.6
Cash collateral payables on derivative instruments
34.2
34.2
Customer deposits
675.5
55.7
38.5
10.2
13.8
0.1
793.8
Debt issued measured at amortized cost
2
9.4
9.1
46.8
25.7
66.5
82.6
17.6
257.6
Other financial liabilities measured at amortized cost
7.3
0.1
0.6
0.7
1.7
1.7
12.2
of which: lease liabilities
0.1
0.1
0.6
0.7
1.7
1.7
4.9
Total financial liabilities measured at amortized cost
747.7
66.7
92.2
41.0
90.1
84.4
17.6
1,139.7
Financial liabilities at fair value held for trading
3,4
53.7
53.7
Derivative financial instruments
3,5
156.2
156.2
Brokerage payables designated at fair value
62.2
62.2
Debt issued designated at fair value
6
14.4
10.6
23.4
31.5
13.1
41.5
134.4
Other financial liabilities designated at fair value
24.0
0.4
1.2
1.1
0.6
1.3
28.6
Total financial liabilities measured at fair value through
profit or loss
310.5
11.0
24.6
32.7
13.7
42.7
435.2
Total
1,058.2
77.7
116.8
73.7
103.8
127.2
17.6
1,574.9
Guarantees, loan commitments and forward starting transactions
Irrevocable loan commitments
7
80.7
0.6
0.8
0.1
82.1
Guarantees
47.4
47.4
Forward starting reverse repurchase and securities
borrowing agreements
7
10.7
10.7
Irrevocable committed prolongation of existing loans
3.3
2.1
2.8
0.0
8.2
Total
142.0
2.7
3.5
0.1
148.4
31.12.24
USD bn
Due within
1 month
Due between
1 and 3
months
Due between
3 and 12
months
Due between
1 and 2 years
Due between
2 and 5 years
Due over
5 years
Perpetual /
Not
applicable
Total
Financial liabilities recognized on balance sheet
1
Amounts due to banks
13.5
3.1
3.1
1.5
2.8
24.1
Payables from securities financing transactions
5.4
1.5
0.7
2.8
5.0
15.5
Cash collateral payables on derivative instruments
35.5
35.5
Customer deposits
608.7
66.4
53.7
9.9
13.9
0.3
753.0
Debt issued measured at amortized cost
2
10.4
11.6
36.9
38.3
67.6
74.9
14.8
254.5
Other financial liabilities measured at amortized cost
10.0
0.1
0.8
1.0
2.7
3.1
17.7
of which: lease liabilities
0.1
0.1
0.6
0.8
1.8
2.0
5.3
Total financial liabilities measured at amortized cost
683.5
82.8
95.3
53.4
92.1
78.3
14.8
1,100.3
Financial liabilities at fair value held for trading
3,4
35.2
35.2
Derivative financial instruments
3,5
180.6
180.6
Brokerage payables designated at fair value
49.0
49.0
Debt issued designated at fair value
6
12.1
11.7
28.1
27.8
12.7
38.4
130.8
Other financial liabilities designated at fair value
22.6
0.5
1.4
1.7
1.6
1.2
28.9
Total financial liabilities measured at fair value through
profit or loss
299.5
12.2
29.6
29.5
14.3
39.6
424.7
Total
983.0
95.0
124.9
82.9
106.4
117.9
14.8
1,524.9
Guarantees, loan commitments and forward starting transactions
Irrevocable loan commitments
7
78.7
0.5
0.4
0.0
79.6
Guarantees
40.7
40.7
Forward starting reverse repurchase and securities
borrowing agreements
7
24.9
24.9
Irrevocable committed prolongation of existing loans
2.5
0.7
1.4
0.0
4.6
Total
146.7
1.2
1.7
0.0
149.8
1 Except for financial liabilities atfair value held for tradingand derivative financial instruments (seefootnote 3), the amounts presentedgenerally represent undiscounted cashflows of future interest andprincipal
payments.2 The time-bucket Perpetual / Not applicable includes perpetualloss-absorbing additional tier 1 capital instruments,for which future interest payments are calculatedover a 5 year period.3 Carrying
amount is fair value. Management believes that this best represents the cash flows that would have to be paid if these positions had to be settled or closed out.4 Contractual maturities of financial liabilities at fair
value held for tradingare: USD
50.9
bn due within 1 month(31 December 2024: USD
33.0
bn), USD
2.8
bn due between 1 monthand 1 year (31 December 2024:USD
2.2
bn).5 Includes USD
39
m (31 December
2024: USD
166
m) related tofair values ofderivative loan commitmentsand forward startingreverse repurchase agreementsclassified as derivatives,presented within “Duewithin 1 month”. Thefull contractual
committed amount ofUSD
68.8
bn (31 December 2024:USD
66.3
bn) is presentedin Note 10under notional amounts.6 Future interest paymentson variable-rateliabilities are determinedby reference tothe
applicable interest rate prevailing as of the reporting date. Future principal payments that are variable are determined by reference to the conditions existing at the relevant reporting date.7 Excludes derivative loan
commitments and forward starting reverse repurchase agreements measured at fair value (see footnote 5).
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements332
Note 24Hedge accounting
Derivatives designated in hedge accounting relationships
The Group applieshedge accounting tointerest rate riskand foreign exchangerisk, including structuralforeign exchange
risk related to net investments in foreign operations.
›
Refer to “Market risk” in the “Risk management and control” section of this report for moreinformation about how risks arise
and how they are managed by the Group
Hedging instruments and hedged risk
Interest rate swapsare designated infair valuehedges orcash flowhedges ofinterest rate riskarising solelyfrom changes
in benchmarkinterest rates.Fair valuechanges arisingfrom suchrisk areusually thelargest componentof theoverall
change in the fair value of the hedged position in the transaction currency.
Cross-currencyswapsaredesignatedasfairvaluehedgesofforeignexchangerisk.Foreignexchangeforwardsand
foreign exchange swaps are mainlydesignated as hedges ofstructural foreign exchange risk relatedto net investments
in foreign operations. In both cases the hedged risk arises solely from changes in the spot foreign exchange rate.
The notional of thedesignated hedging instrumentsmatches the notional ofthe hedged items, exceptwhen the interest
rateswapsaredesignatedincashflowhedgesafterthetradedate,inwhichcasethehedgeratiodesignatedis
determined based on the swap sensitivity.
Hedged items and hedge designation
Fair value hedges of interest rate risk related to debt instruments and loan assets
Fairvaluehedgesofinterestrateriskrelatedtodebtinstrumentsandloanassetsinvolveswappingfixedcashflows
associated with loans to customers (including long-term fixed-rate mortgage loans in Swiss francs), debt securities held,
customer depositsor debtissued tofloating cashflows byentering intointerest rateswaps thateither payfixed and
receive floating cash flows or that receive fixed and pay floating cash flows. The floating future cash flows are based on
the following benchmarkrates: the Secured OvernightFinancing Rate (SOFR),the Effective FederalFunds Rate (EFFR),the
Swiss AverageRate Overnight (SARON),the EuroShort-TermRate (ESTR),the EuroInterbank OfferedRate (EURIBOR),
the Sterling OvernightIndex Average(SONIA), the SingaporeOvernight Rate Average(SORA), the BankBill Swap Rate
(BBSW), the TokyoOvernight Average Rate (TONA), the Hong Kong Interbank Offered Rate (HIBOR) and the Norwegian
Krona Overnight Index Swap (NOK OIS).
Cash flow hedges of forecast transactions
The Group hedges forecast cash flows on non-trading financial assetsand liabilities that bear interest at variable rates or
are expected tobe refinanced orreinvested in thefuture, due tomovements in futuremarket rates. Theamounts and
timing offuture cash flows,representing both principaland interest flows,are projected onthe basisof contractualterms
andotherrelevantfactors,includingestimatesofprepaymentsanddefaults.Theaggregateprincipalbalancesand
interest cash flowsacross all portfoliosover time formthe basis foridentifying the non-tradinginterest rate riskof the
Group, which is hedgedwith interest rate swaps,the maximum maturity of whichis 15 years. Cashflow forecasts and
risk exposures are monitoredand adjusted on an ongoing basis, and, consequently,additional hedging instruments are
traded and designated, or are terminated, resulting in a hedge discontinuance.
Fair value hedges of foreign exchange risk related to debt instruments
Debt instruments denominated in currencies other than the USdollar are designated in fair value hedges of spotforeign
exchangerisk,inadditiontoandseparatefromthefairvaluehedgesofinterestraterisk.Cross-currencyswaps
economically convertdebtinstruments denominatedin currenciesotherthantheUSdollarto USdollars.Thehedge
designations alsoinvolve intragroupdebt instrumentsthat areeliminated uponconsolidation,but FXgains andlosses
impact consolidated profit or loss.
Hedges of net investments in foreign operations
TheGroupapplieshedgeaccountingforcertainnetinvestmentsinforeignoperations,whichincludesubsidiaries,
branchesandassociates.Uponmaturityofhedginginstruments,typicallyonetothreemonthswithcertainhedges
extendinguptotwelvemonths,thehedgerelationshipisterminatedandnewdesignations aremadetoreflectany
changes in the net investments in foreign operations.
Economic relationship between hedged item and hedging instrument
The economic relationshipbetween the hedged itemand the hedging instrumentis determined based ona qualitative
analysisoftheircriticalterms.Incaseswherehedgedesignationtakesplaceafterthetradedateofthehedging
instrument, a quantitative analysisof the possible behaviorof the hedging derivativeand the hedged itemduring their
respective terms is also performed.
Sources of hedge ineffectiveness
Inhedgesofinterestraterisk,hedgeineffectivenesscanarisefrommismatchesofcriticaltermsand / ortheuseof
different curves to discount the hedgeditem and instrument, or from entering into ahedge relationship after the trade
date of the hedging derivative.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements333
Note 24Hedge accounting (continued)
In hedges of foreign exchangerisk related to debt instruments,hedge ineffectiveness can arise dueto the discounting of
the hedginginstruments andundesignated riskcomponents andlack ofsuch discountingand riskcomponents inthe
hedged items.
In hedges of net investments in foreignoperations, ineffectiveness is unlikely unless the hedgednet assets fall below the
designated hedged amount. The exceptionsare hedges where thehedging currency is not thesame as the currency of
the foreign operation, where the currency basis may cause ineffectiveness.
Hedge ineffectiveness is recognizedin
Other net income fromfinancial instruments measuredat fair value throughprofit
or loss.
Derivatives not designated in hedge accounting relationships
Non-hedge-accountedderivativesaremandatorilyheldfortradingwithallfairvaluemovementstakento
Othernet
income from financial instruments measured at fair value through profit or loss
, even when held as an economic hedge
or tofacilitate clientclearing. Theone exceptionrelates toforward pointson certainshort- andlong-duration foreign
exchange and interest rate contracts acting as economic hedges, which are reported in
Net interest income.
All hedges: designated hedging instruments and hedge ineffectiveness
As of or for the year ended
31.12.25
Notional
amount
Carrying amount
Changes in
fair value of
hedging
instruments
1
Changes in
fair value of
hedged
items
1
Hedge
ineffectiveness
recognized in the
income statement
USD m
Derivative
financial
assets
Derivative
financial
liabilities
Interest rate risk
Fair value hedges
244,123
14
23
1,602
(1,620)
(19)
Cash flow hedges
94,650
1
0
479
(465)
13
Foreign exchange risk
Fair value hedges
2
78,795
679
623
3,446
(3,474)
(29)
Hedges of net investments in foreign operations
20,281
48
268
(2,270)
2,262
(8)
As of or for the year ended
31.12.24
Notional
amount
Carrying amount
Changes in
fair value of
hedging
instruments
1
Changes in
fair value of
hedged
items
1
Hedge
ineffectiveness
recognized in the
income statement
USD m
Derivative
financial
assets
Derivative
financial
liabilities
Interest rate risk
Fair value hedges
233,636
25
10
(1,678)
1,692
14
Cash flow hedges
88,256
1
0
(1,715)
1,710
(5)
Foreign exchange risk
Fair value hedges
2
68,423
566
1,515
(1,383)
1,376
(7)
Hedges of net investments in foreign operations
21,777
689
1
2,963
(2,957)
6
1 Amounts used as the basis forrecognizing hedge ineffectiveness for the period.2 The foreign currency basis spread of cross-currency swaps designated ashedging derivatives is excluded from the hedge accounting
designation and accounted for as a cost of hedging with amounts deferred in Other comprehensive income within Equity.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements334
Note 24Hedge accounting (continued)
Fair value hedges: designated hedged items recognized on the balance sheet
1
USD m
31.12.25
31.12.24
Interest rate
risk
FX risk
Interest rate
risk
FX risk
Loans and advances to customers
Carrying amount of designated loans
59,152
56,309
of which: accumulated amount of fair value hedge adjustment
66
1,774
of which: accumulated amount of fair value hedge adjustment subject to amortization attributable to the portion of the
portfolio that ceased to be part of hedge accounting
1,064
(176)
Other financial assets measured at amortized cost – debt securities
Carrying amount of designated debt securities
18,347
9,125
of which: accumulated amount of fair value hedge adjustment
(377)
(348)
Financial assets measured at fair value through other comprehensive income
Carrying amount of designated debt securities
11,659
0
of which: accumulated amount of fair value changes related to hedge accounting
48
0
Payables from securities financing transactions measured at amortized cost
Carrying amount of designated repo transactions
1,001
0
of which: accumulated amount of fair value hedge adjustment
1
0
Customer deposits
Carrying amount of customer deposits
8,406
13,031
of which: accumulated amount of fair value hedge adjustment
6
(18)
Debt issued measured at amortized cost
Carrying amount of designated debt issued
141,938
62,650
151,481
53,328
of which: accumulated amount of fair value hedge adjustment
(1,781)
(3,061)
1 In addition, as of 31 December 2025, UBS designated in fair value hedges of FX risk USD
16
bn (31 December 2024: USD
15
bn) of intragroup debt instruments that are not recognized on the consolidated balance
sheet but FX gains and losses on these instruments impact consolidated profit or loss.
Fair value hedges: profile of the timing of the nominal amount of the hedging instrument
31.12.25
USD bn
Due within
1 month
Due between
1 and 3 months
Due between
3 and 12 months
Due between
1 and 5 years
Due after
5 years
Total
Interest rate swaps
5
6
34
117
82
244
Cross-currency swaps
2
3
15
42
17
79
31.12.24
USD bn
Due within
1 month
Due between
1 and 3 months
Due between
3 and 12 months
Due between
1 and 5 years
Due after
5 years
Total
Interest rate swaps
3
9
38
118
66
234
Cross-currency swaps
2
1
8
45
12
68
Cash flow hedge reserve on a pre-tax basis
USD m
31.12.25
31.12.24
Amounts related to hedge relationships for which hedge accounting continues to be applied
(1,053)
(2,514)
Amounts related to hedge relationships for which hedge accounting is no longer applied
(641)
(714)
Total other comprehensive income recognized directly in equity related to cash flow hedges, on a pre-taxbasis
(1,694)
(3,228)
Foreign currency translation reserve on a pre-tax basis
USD m
31.12.25
31.12.24
Amounts related to hedge relationships for which hedge accounting continues to be applied
(1,357)
861
Amounts related to hedge relationships for which hedge accounting is no longer applied
247
266
Total other comprehensive income recognized directly in equity related to hedging instruments designated as net investment hedges,on a pre-tax
basis
(1,111)
1,126
Note 25Post-employment benefit plans
a) Defined benefit plans
UBS has establisheddefined benefit plans forits employees in variousjurisdictions in accordancewith local regulations
and practices. The major plansare located in Switzerland, with smallerplans mainly in UK, USand Germany. The level of
benefits depends on the specific plan rules.
Major Swiss pension plans
The major Swisspension plans consistof the UBSSwiss plan andthe Credit Suisse Swissplan, covering employeesof UBS
GroupAG inSwitzerland andemployees ofcompanies inSwitzerland thathave closeeconomic orfinancial tieswith
UBS GroupAG,andexceedtheminimumbenefitrequirementsunderSwisspensionlaw.TheSwissplansoffer
retirement, disability and survivor benefits and are governed by Pension Foundation Boards. The responsibilities of these
boards are defined by Swiss pension law and the plan rules. The UBS Swiss plan covers contributions for all salary levels.
The Credit Suisse Swiss plancovers contributions up toa salary of CHF
154,224
(USD
194,501
), and contributions above
that salary go into the Credit Suisse Swiss1e plan, which is accounted for underIFRS Accounting Standards as a defined
contribution plan.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements335
Note 25Post-employment benefit plans (continued)
Savingscontributionsto theSwissplansarepaidby boththeemployerand theemployee.Forthe UBSSwissplan,depending
on the age of the employee, UBS pays a savings contribution that ranges between
6.5
% and
27.5
% of the contributory
base salary andbetween
2.8
% and
9
% ofthe contributory variable compensation. Employees canchoose thelevel of
savingscontributionspaid bythem, whichvary between
2.5
% and
13.5
% ofthe contributorybase salaryand between
0
%
and
9
% of thecontributoryvariablecompensation,dependingon age andchoice ofsavings contributioncategory.For the
Credit Suisse Swiss plan, depending onthe age ofthe employee, UBS paysa savings contribution that ranges between
7.5
% and
25.0
% ofthe contributorybase salaryand
6
% ofthe contributoryvariablecompensation.Employeescan choose
the level ofsavings contributionspaid by them,which vary between
5.0
% and
14.0
% of the contributorybase salaryand
between
3
% and
9
% ofthe contributory variable compensation, depending on age and choice ofsavings contribution
category.UBS alsopays riskcontributionsthat are usedto fund disabilityand survivorbenefits.
The plans offer to members at the normal retirement age of
65
a choice between a lifetime pension and a partial or full
lump sum payment. Participants can choose to draw early retirement benefitsstarting from the age of
58
, but they can
also continue employment andremain active members ofthe plan until theage of
70
. Employees can makeadditional
purchases of benefits to fund early retirement benefits.
The pension amount payable toa participant is calculated by applyinga conversion rate to theaccumulated balance of
theparticipant’s retirementsavingsaccount atthe retirementdate.Thebalance isbasedoncredited vestedbenefits
transferredfrompreviousemployers,purchasesofbenefits,employeeandemployercontributionsmadetothe
participant’sretirementsavingsaccount,andinterestaccrued.Theannualinterestratecreditedtoparticipantsis
determined by the Pension Foundation Boards at the end of each year.
Although the Swiss plans are based on a defined contribution promise under Swiss pension law, they areaccounted for
as defined benefit plans under IFRSAccounting Standards, primarily because of the obligation toaccrue interest on the
participants’ retirement savings accounts and the payment of lifetime pension benefits.
Actuarial valuations in accordance with Swiss pension law are performed regularly. Should anunderfunded situation on
this basis occur,the Pension FoundationBoard of therespective plan isrequired to takethe necessary measuresto ensure
that full funding canbe expected to be restoredwithin a maximum period of
10
years. If a Swiss planwere to become
significantlyunderfundedonaSwisspensionlawbasis,additionalemployerandemployeecontributionscouldbe
required. In this situation, therisk is shared between employerand employees, and the employeris not legally obliged to
cover more than
50
% of the additional contributionsrequired. As of 31 December 2025,the technical funding ratio in
accordance with Swiss pension law was
120.9
% at a
0.5
% technical interest rate for the UBSSwiss plan and
124.6
% at
a
1.02
% technical interest rate for the Credit Suisse Swiss plan (UBS Swissplan 31 December 2024:
120.6
% at a
0.5
%
technical interest rate, Credit Suisse Swiss plan 31 December 2024:
125.5
% at a
1.31
% technical interest rate).
The investment strategies of the Swiss plans comply with Swiss pension law, including the rules and regulations relating
to diversification ofplan assets, andare derived fromthe risk budgetdefined by thePension Foundation Boards based
on regularlyperformed assetand liabilitymanagement analyses.The PensionFoundation Boardsstrive fora medium-
and long-term balance between assets and liabilities.
As of 31 December2025, theSwiss planswere in surplussituations onan IFRSAccounting Standardsmeasurement basis,
as the fair value of theplan assets exceeded the definedbenefit obligation (DBO) by USD
6,977
m for the UBS Swiss plan
and USD
3,771
m for the Credit Suisse Swiss plan (UBS Swiss plan 31 December 2024: USD
4,724
m, Credit Suisse Swiss
plan 31 December 2024: USD
2,900
m). However, a surplus is only recognized on the balance sheet to the extent that it
does not exceedthe estimated futureeconomic benefit, whichequals the differencebetween the presentvalue of the
estimatedfuturenetservicecostandthepresentvalueoftheestimatedfutureemployercontributions.Asofboth
31 December 2025 and 31 December 2024, the estimated future economic benefit of the UBS Swiss plan was zero and
hence no net defined benefit asset was recognized onthe balance sheet; as of 31 December 2025 a net definedbenefit
asset of USD
33
m was recognizedby UBS forprepaid contributions heldat the CreditSuisse Swiss plan(31 December
2024: USD
28
m).
The regular employercontributions in 2026 areestimated at USD
617
m for theUBS Swiss plan andUSD
262
m for the
Credit Suisse Swiss plan.
Changes to the Credit Suisse Swiss pension plan
In December2023, thePension FoundationBoardof theCredit SuisseSwiss plandecided toalign theSwiss pension
scheme tothat ofthe UBSSwiss plan,effective asof 1 January2027. Onthat date,the CreditSuisse Swissplan will
adopt theplan rulesof theUBS Swissplan. In2025, thePension FoundationBoard ofthe Credit SuisseSwiss plandecided
to integrate the Credit Suisse Swiss 1e planinto the Credit Suisse Swiss pension plan as of1 January 2027, resulting in a
one-time pre-taxloss ofUSD
190
m (CHF
151
m) andan offsettinggain inother comprehensiveincome inthe thirdquarter
of 2025, with no impact on equity.
Financial information
The tablesbelow providean analysisof themovement inthe netasset / liability recognizedon thebalance sheetfor
defined benefit plans, as well as an analysis of amounts recognized in net profit and in
Other comprehensive income
.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements336
Note 25Post-employment benefit plans (continued)
Net asset / liability of defined benefit plans
USD m
Major Swiss plans (funded)
31.12.25
31.12.24
Defined benefit obligation at the beginning of the year
44,617
44,922
Current service cost
775
763
Interest expense
518
564
Plan participant contributions
472
446
Remeasurements
9
4,017
of which: actuarial (gains) / losses due to changes in demographic assumptions
34
25
of which: actuarial (gains) / losses due to changes in financial assumptions
(1,683)
2,723
of which: experience (gains) / losses
1
1,658
1,269
Past service cost related to plan amendments
197
0
Curtailments
(120)
(104)
Benefit payments
(2,742)
(2,665)
Termination benefits
0
6
Foreign currency translation
6,278
(3,332)
Defined benefit obligation at the end of the year
50,004
44,617
of which: amounts owed to active members
28,193
24,576
of which: amounts owed to retirees
21,811
20,041
Fair value of plan assets at the beginning of the year
52,241
54,404
Return on plan assets excluding interest income
1,760
2,596
Interest income
635
700
Employer contributions
853
811
Plan participant contributions
472
446
Benefit payments
(2,742)
(2,665)
Administration expenses, taxes and premiums paid
(34)
(27)
Other movements
6
0
Foreign currency translation
7,560
(4,024)
Fair value of plan assets at the end of the year
60,752
52,241
Surplus / (deficit)
10,748
7,624
Asset ceiling effect at the beginning of the year
7,596
9,394
Interest expense on asset ceiling effect
110
128
Asset ceiling effect excluding interest expense and foreign currency translation on asset ceiling effect
1,730
(1,237)
Foreign currency translation
1,278
(688)
Asset ceiling effect at the end of the year
10,715
7,596
Net defined benefit asset / (liability) of major Swiss plans
33
28
Other plans
Net defined benefit asset / (liability) of other plans
2
252
131
Total net defined benefit asset / (liability)
286
159
of which: Net defined benefit asset
995
922
of which: Net defined benefit liability
3
(710)
(763)
1 Experience (gains) / losses are a component of actuarial remeasurements of the defined benefit obligation and reflect the effects of differencesbetween the previous actuarial assumptions and what has actually
occurred.2 Mainly relates to UK, US and German plans.3 Refer to Note 18c.
Income statement – expenses related to defined benefit plans
1
USD m
For the year ended
Major Swiss plans
31.12.25
31.12.24
Current service cost
775
763
Interest expense related to defined benefit obligation
518
564
Interest income related to plan assets
(635)
(700)
Interest expense on asset ceiling effect
110
128
Administration expenses, taxes and premiums paid
34
27
Past service cost related to plan amendments
197
0
Curtailments
(120)
(104)
Termination benefits
0
6
Other movements
2
(2)
3
Net periodic expenses recognized in net profit for major Swiss plans
877
687
Other plans
Net periodic expenses recognized in net profit for other plans
44
44
Total net periodic expenses recognized in net profit
921
731
1 Refer to Note 6.2 Includes differences between actual and estimated performance award accruals.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements337
Note 25Post-employment benefit plans (continued)
Other comprehensive income – gains / (losses) on defined benefit plans
USD m
For the year ended
Major Swiss plans
31.12.25
31.12.24
Remeasurement of defined benefit obligation
(9)
(4,017)
of which: change in discount rate assumption
1,785
(2,846)
of which: change in rate of salary increase assumption
183
(227)
of which: change in rate of pension increase assumption
0
0
of which: change in rate of interest credit on retirement savings assumption
(289)
349
of which: change in life expectancy
0
0
of which: change in other actuarial assumptions
(29)
(24)
of which: experience gains / (losses)
1
(1,658)
(1,269)
Return on plan assets excluding interest income
1,760
2,596
Asset ceiling effect excluding interest expense and foreign currency translation
(1,730)
1,237
Total gains / (losses) recognized in other comprehensive income for major Swiss plans
21
(184)
Other plans
Total gains / (losses) recognized in other comprehensive income for other plans
2
(37)
(123)
Total gains / (losses) recognized in other comprehensive income
3
(16)
(307)
1 Experience (gains) / losses are a component of actuarial remeasurements of the defined benefit obligation and reflect the effects of differencesbetween the previous actuarial assumptions and what has actually
occurred.2 Mainly relates to UK, US and German plans.3 Refer to the “Statement of comprehensive income”.
The table below provides information about the duration of the DBO and the timing for expected benefit payments.
Duration of the defined benefit obligation and the timing for expected benefit payments
Major Swiss defined benefit plans
31.12.25
31.12.24
Duration of the defined benefit obligation (in years)
1
12.6
13.3
Maturity analysis of benefits expected to be paid
USD m
Benefits expected to be paid within 12 months
3,128
2,911
Benefits expected to be paid between 1 and 3 years
5,793
4,812
Benefits expected to be paid between 3 and 6 years
8,637
7,231
Benefits expected to be paid between 6 and 11 years
13,179
11,203
Benefits expected to be paid between 11 and 16 years
11,335
9,621
Benefits expected to be paid in more than 16 years
35,714
30,398
1 The duration of the defined benefit obligation represents a weighted averageacross the UBS and Credit Suisse plans.
Actuarial assumptions
The actuarialassumptions usedfor thedefined benefitplans arebased onthe economicconditions prevailingin the
jurisdiction inwhich theyareoffered.Changes inthe definedbenefit obligationaremost sensitiveto changesin the
discount rate. The discount rate is based onthe yield of high-quality corporate bonds quoted in anactive market in the
currency of the respective plan.A decrease in the discount curveincreases the DBO. UBS regularly reviewsthe actuarial
assumptions used in calculating the DBO to determine their continuing relevance.
›
Refer to Note 1a item 5 for a description of the accounting policy for defined benefit plans
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements338
Note 25Post-employment benefit plans (continued)
The tables below show the significant actuarial assumptions used in calculating the DBO at the end of the year.
Significant actuarial assumptions of major Swiss defined benefit plans
1
In %
31.12.25
31.12.24
Discount rate
1.27
0.92
Rate of salary increase
2.53
2.80
Rate of pension increase
0.00
0.00
Rate of interest credit on retirement savings
2.41
2.02
1 Represents a weighted average across the UBS and Credit Suisse plans.
Swiss mortality table: BVG 2020 G with CMI 2024 projections
1
aged 65
aged 45
31.12.25
31.12.24
31.12.25
31.12.24
Life expectancy at age 65 for a male member currently
21.9
21.9
23.6
23.5
Life expectancy at age 65 for a female member currently
23.7
23.6
25.3
25.2
1 In 2024, BVG 2020 G with CMI 2023 projections was used.
Sensitivity analysis of significant actuarial assumptions
The tablebelow presentsa sensitivityanalysis foreach significantactuarial assumption,showing howthe DBOwould
have been affectedby changes in therelevant actuarial assumption thatwere reasonably possibleat the balance sheet
date.Unforeseencircumstancesmayarise,whichcouldresultinvariationsthatareoutsidetherangeofalternatives
deemedreasonablypossible.CautionshouldbeusedinextrapolatingthesensitivitiesbelowontheDBO,asthe
sensitivities may not be linear.
Sensitivity analysis of significant actuarial assumptions of major Swiss defined benefit plans
1
Increase / (decrease) in defined benefit obligation
USD m
31.12.25
31.12.24
Discount rate
Increase by 50 basis points
(2,595)
(2,462)
Decrease by 50 basis points
2,929
2,790
Rate of salary increase
Increase by 50 basis points
269
255
Decrease by 50 basis points
(269)
(256)
Rate of pension increase
Increase by 50 basis points
2,010
1,947
Decrease by 50 basis points
–
2
–
2
Rate of interest credit on retirement savings
Increase by 50 basis points
627
374
Decrease by 50 basis points
(416)
(374)
Life expectancy
Increase in longevity by one additional year
1,430
1,381
1 The sensitivity analyses are based on a change in one assumption whileholding all other assumptions constant, so that interdependencies between the assumptions are excluded.2 As the assumed rate of pension
increase was
0
% as of 31 December 2025 and as of 31 December 2024, a downward change in assumption is not applicable.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements339
Note 25Post-employment benefit plans (continued)
Composition and fair value of Swiss defined benefit plan assets
31.12.25
31.12.24
Fair value
Plan asset
allocation %
Fair value
Plan asset
allocation %
USD m
Quoted
in an active
market
Other
Total
Quoted
in an active
market
Other
Total
Cash and cash equivalents
827
0
827
1
911
0
911
2
Real estate / property
Domestic
0
7,081
7,081
12
0
5,967
5,967
11
Foreign
0
1,325
1,325
2
0
1,086
1,086
2
Investment funds
Equity
Domestic
1,452
0
1,452
2
1,300
0
1,300
2
Foreign
10,356
3,598
13,954
23
8,520
3,497
12,016
23
Bonds
1
Domestic, AAA to BBB–
8,396
0
8,396
14
6,921
0
6,921
13
Domestic, below BBB–
15
0
15
0
9
0
9
0
Foreign, AAA to BBB–
14,807
0
14,807
24
12,886
0
12,886
25
Foreign, below BBB–
1,423
0
1,423
2
1,393
0
1,393
3
Real estate
Domestic
2,089
0
2,089
3
1,938
0
1,938
4
Foreign
486
171
656
1
451
117
568
1
Other
1,570
4,889
6,460
11
1,396
3,383
4,780
9
Other investments
971
1,296
2,267
4
631
1,833
2,465
5
Total fair value of plan assets
42,392
18,360
60,752
100
36,357
15,884
52,241
100
31.12.25
31.12.24
Total fair value of plan assets
60,752
52,241
of which: Investments in UBS instruments
2
Bank accounts at UBS
627
926
UBS debt instruments
204
238
UBS Group AG shares
86
64
Securities lent to UBS
3
1,179
956
Property occupied by UBS
83
73
Derivative financial instruments, counterparty UBS
3
26
(126)
1 The bond credit ratingsare primarily based on S&P’scredit ratings. Ratings AAAto BBB– and below BBB– representinvestment grade and non-investment graderatings, respectively.In cases where credit ratings
from other rating agencieswere used, these wereconverted to the equivalentrating in S&P’srating classification.2 Bank accounts at UBSencompass accounts in thename of the Swiss pensionfunds. The other
positions disclosed in the table encompass both direct investments in UBS instruments and indirect investments, i.e. those made through funds that the pension fund invests in.3 Securities lent to UBS and derivative
financial instruments arepresented gross of anycollateral. Securities lentto UBS were fullycovered by collateralas of 31 December2025 and 31 December2024. Net of collateral,derivative financial instruments
amounted to USD
14
m as of 31 December 2025 (31 December 2024: negative USD
70
m).
b) Defined contribution plans
UBS sponsors several defined contribution plans, with the most significant plans in the US andthe UK. UBS’s obligation
is limited to its contributions made inaccordance with each plan, which may includedirect contributions and matching
contributions. Employer contributions to definedcontribution plans are recognizedas an expense andwere USD
579
m
for the UBS plans in 2025 (2024: USD
578
m).
›
Refer to Note 6 for more information
c) Related-party disclosure
UBS isthe principal providerof banking servicesfor the pensionfunds of UBSand CreditSuisse in Switzerland.In this
capacity,UBS is engaged toexecute most of thepension funds’ banking activities.These activities can include,but are
not limited to, investment management fees, trading, securities lending andborrowing and derivative transactions. The
non-Swiss pension fundsdo not havea similar bankingrelationship withUBS. During 2025,UBS received USD
45
m in
fees for banking servicesfrom the majorUBS plans (2024:USD
46
m). As of31 December 2025, theSwiss, UK and US
post-employment benefit plans held USD
558
m in UBS Group AG shares (31 December 2024: USD
399
m).
›
Refer to the “Composition and fair value of Swiss defined benefit plan assets” table in Note 25a for more informationabout fair
value of investments in UBS instruments held by the major Swiss pension funds
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements340
Note 26Employee benefits: variable compensation
a) Plans offered
The Grouphas several share-based and otherdeferred compensationplans that alignthe interestsof GroupExecutive
Board (GEB) members and other employees with the interests of investors.
Share-based awards are grantedin the form ofnotional shares and, wherepermitted, carry a dividendequivalent that may be
paid in notional shares or cash. Awards are settled bydelivering UBS shares at vesting, except in jurisdictions where thisis not
permitted for legal or taxreasons.
Deferredcompensationawardsaregenerallyforfeitableupon,amongothercircumstances,voluntaryterminationof
employment with UBS. Thesecompensation plans are alsodesigned to meet regulatoryrequirements and include special
provisions for regulated employees.
The most significant deferred compensationplans are described below.
›
Refer to Note 1a item 4 for a description of the accounting policy related to share-based and other deferred compensation plans
Mandatory deferred compensation plans
Long-Term Incentive Plan
The Long-TermIncentive Plan(the LTIP)is amandatory deferralplan forGEB members andManaging Directors(MDs)
reporting to the GEB and their direct reports at MD level.
The number of notional shares delivered at vesting depends on two equally weighted performance metricsover a three-
year performance period:return on commonequity tier 1 (CET1)capital and relativetotal shareholderreturn (TSR), which
compares the TSRof UBS withthe TSR ofan index consistingof listed GlobalSystemically Important Banksas determined
bytheFinancialStabilityBoard(excludingUBS).Thefinalnumberofsharesvestoverthreeyearsfollowingthe
performance periodfor GEBmembers andcliff vestin theyear followingthe performanceperiod forselected senior
management.
Equity Ownership Plan / Fund Ownership Plan
The Equity OwnershipPlan (the EOP)is the deferredshare-based compensation planfor employees thatare subjectto
deferral requirements but do not receive LTIPawards.EOP awards generally vest over three years.
Certain AssetManagement employeesreceive someor allof their EOPin the formof notional funds(the Fund Ownership
Plan). This plan isgenerally delivered in cashand vests over threeyears. The amount delivered dependson the value of
the underlying investment funds at the time of vesting.
Deferred Contingent Capital Plan
The Deferred Contingent Capital Plan (theDCCP) is a deferred compensation plan forall employees who are subject to
deferral requirements.Such employeesare awardednotional additionaltier 1 (AT1)capital instruments,which, atthe
discretion of UBS, can be settled in cashor a perpetual, marketable AT1 capital instrument. DCCP awards generally bear
notionalinterestpaidannually(exceptforcertainregulatedemployees)andvestinfullafterfiveyears.Awardsare
forfeited if a viability event occurs (i.e.if the Swiss Financial Market Supervisory Authority(FINMA) notifies the firm that
the DCCP awardsmust be writtendown to mitigatethe risk ofinsolvency,bankruptcy or failureof UBS) orif the firm
receives a commitment of extraordinary support from the publicsector that is necessary to prevent such anevent. DCCP
awards are also writtendown if theGroup’s CET1 capitalratio falls belowa defined threshold.In addition, GEBmembers
forfeit
20
% of DCCP awards for each loss-making year during the vesting period.
Deferred compensation plans awarded to employees of Credit Suisse
Existing compensation plans offered to employees of Credit Suisse prior to the acquisition
CreditSuisseofferedarangeofcompensationplanstoitsemployees.Outstandingdeferredcompensationincluded
upfront cash awards, share awardsand other deferred awards settled in cash. Generally,the existing awards continued
to vest accordingto their originalterms, with theexpense recognized overthe residual serviceperiod. Awards referenced
to shares inthe Credit SuisseGroup were convertedinto units over UBSGroup shares accordingto the exchange ratio
applied to the merger transaction (1 share in UBS for
22.48
shares in Credit Suisse).
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements341
Note 26Employee benefits: variable compensation (continued)
Financial advisor variable compensation
In line with market practice for US wealthmanagement businesses, the compensation for USfinancial advisors in Global
Wealth Management consists of cash compensation, determined using a formulaic approachbased on production, and
deferred awards.
Cashcompensationreflectsapercentageofthecompensableproductionthateachfinancialadvisorgenerates.
Compensable production is generally basedon transaction revenue and investmentadvisory fees and may reflect further
adjustments. The percentage rate generally varies based on the level of the production and firm tenure.
Financial advisorsmay alsobe granteddeferred awards.These amountsgenerally vestover a six-yearperiod. Thedeferred
award takes into account the overall percentage rate and production.
Cash compensation and deferred awards may be reduced for,among other things, errors, negligence or carelessness, or
failure to comply with the firm’s rules, standards, practices and / or policies, and / or applicable laws and regulations.
Financial advisorsmay alsoparticipate inadditional programstosupport promotingand developingtheir businessor
supporting the transitionof client relationshipswhere appropriate.Financial advisor compensationalso includes expenses
related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to
vesting requirements.
Share delivery obligations
Sharedeliveryobligationsrelatedtoemployeeshare-basedcompensationawardswere
159
millionsharesasof
31 December 2025(31 December 2024:
183
million shares).Share deliveryobligations arecalculated onthe basisof
undistributed notional share awards, taking applicable performance conditions into account.
As of 31 December 2025, UBS held
133
million treasury shares (31 December 2024:
133
million) that were available to
satisfy share delivery obligations.
b) Effect on the income statement
Effect on the income statement for the financial year and future periods
The tablebelow providesinformation aboutcompensation expensesrelated tototal variablecompensation thatwere
recognized in the financialyear ended 31 December2025, as wellas expenses thatwere deferred and willbe recognized
in the income statement for 2026 and later.Deferred expenses related to compensation plans granted toemployees of
Credit Suisse in2023 and earlieryears are presentedunder
Variable compensation– other
. The expenserecognized in
2025 associated with these awards was USD
5
m (2024: USD
85
m) for retention awards granted in connection with the
acquisition and USD
83
m (2024:USD
288
m) foroutstanding deferredcompensation plans thatexisted onthe dateof
the acquisition.
The majorityof expensesdeferred to2026 andlater thatare relatedto the2025 performanceyear pertainto awards
granted in February 2026. Thetotal unamortized compensation expensefor unvested share-based awardsgranted up to
31 December 2025 will be recognized in future periods over a weighted average period of
2.4
years.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements342
Note 26Employee benefits: variable compensation (continued)
Variable compensation
Expenses recognized in 2025
Expenses deferred to 2026 and later
1
USD m
Related to the
2025
performance
year
Related to
prior
performance
years
Total
Related to the
2025
performance
year
Related to
prior
performance
years
Total
Non-deferred cash
3,609
(61)
3,548
0
0
0
Deferred compensation awards
625
740
1,364
901
898
1,799
of which: Equity Ownership Plan
131
260
391
322
201
523
of which: Deferred Contingent Capital Plan
236
316
552
348
536
884
of which: Long-Term Incentive Plan
228
132
360
196
142
338
of which: Fund Ownership Plan
29
31
60
35
19
54
Variable compensation – performance awards
4,234
678
4,912
901
898
1,799
Variable compensation – financial advisors
2
4,874
780
5,654
1,059
3,591
4,651
of which: non-deferred cash
4,498
0
4,498
0
0
0
of which: deferred share-based awards
132
93
225
126
233
360
of which: deferred cash-based awards
230
251
480
592
1,267
1,859
of which: compensation commitments with recruited financial advisors
15
437
451
341
2,092
2,433
Variable compensation – other
3
617
250
867
206
292
498
Total variable compensation
9,725
1,709
11,434
4
2,167
4,782
6,948
1 Estimate as of 31 December 2025. Actual amounts to be expensed in future periods may vary, e.g.due to forfeiture of awards.2 Financial advisor compensation consists of cash compensation, determined using
a formulaic approachbased on production,and deferred awards.It also includesexpenses related tocompensation commitments withfinancial advisors enteredinto at the timeof recruitment that aresubject to
vesting requirements.3 Includes severance payments,replacement and retention awards,existing deferred awards granted toCredit Suisse employees, interest expenserelated to the Deferred Contingent Capital
Plan and forfeiture credits.4 Includes USD
1,087
m in expenses relatedto share-based compensation(performance awards: USD
752
m; other variable compensation:USD
111
m; financial advisor compensation:
USD
225
m). A furtherUSD
189
m in expensesrelated to share-basedcompensation wasrecognized within otherexpense categories includedin Note 6(salaries: USD
2
m related torole-based allowances;social
security: USD
148
m; other personnel expenses: USD
39
m related to the Equity Plus Plan). Total personnel expense related to share-based equity-settled compensationexcluding social security was USD
1,095
m.
Variable compensation
Expenses recognized in 2024
Expenses deferred to 2025 and later
1
USD m
Related to the
2024
performance
year
Related to prior
performance
years
Total
Related to the
2024
performance
year
Related to prior
performance
years
Total
Non-deferred cash
3,290
(83)
3,206
0
0
0
Deferred compensation awards
563
687
1,250
813
853
1,666
of which: Equity Ownership Plan
180
279
458
280
214
493
of which: Deferred Contingent Capital Plan
197
290
487
336
515
851
of which: Long-Term Incentive Plan
161
76
237
166
100
266
of which: Fund Ownership Plan
26
42
68
32
25
56
Variable compensation – performance awards
3,853
603
4,456
813
853
1,666
Variable compensation – financial advisors
2
4,485
808
5,293
1,028
3,639
4,667
of which: non-deferred cash
4,125
(1)
4,124
0
0
0
of which: deferred share-based awards
123
96
219
130
232
362
of which: deferred cash-based awards
203
239
443
476
1,176
1,652
of which: compensation commitments with recruited financial advisors
33
474
507
422
2,231
2,653
Variable compensation – other
3
539
583
1,121
229
465
694
Total variable compensation
8,876
1,994
10,870
4
2,070
4,957
7,027
1 Estimate as of 31 December 2024. Actualamounts expensed may vary, e.g.due to forfeiture of awards.2 Financial advisor compensation consists of cashcompensation, determined using a formulaic approach
based on production,and deferred awards.It also includesexpenses related tocompensation commitments withfinancial advisors enteredinto at thetime of recruitmentthat are subjectto vesting requirements.
3 Consists of existing deferred awards and retention awards granted to Credit Suisse employees, as wellas replacement payments, forfeiture credits, severance payments, retention plan payments and interest expense
related to theDeferred Contingent CapitalPlan.4 Includes USD
1,128
m in expensesrelated to share-basedcompensation (performanceawards: USD
695
m; other variablecompensation: USD
213
m; financial
advisor compensation: USD
219
m). A further USD
134
m in expenses related to share-based compensation was recognizedwithin other expense categories included in Note 6 (salaries: USD
2
m related to role-based
allowances; social security: USD
100
m; other personnel expenses: USD
32
m related to the Equity Plus Plan). Total personnel expenserelated to share-based equity-settled compensation excluding social security was
USD
1,118
m.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements343
Note 26Employee benefits: variable compensation (continued)
Variable compensation
Expenses recognized in 2023
Expenses deferred to 2024 and later
1
USD m
Related to the
2023
performance
year
Related to prior
performance
years
Total
Related to the
2023
performance
year
Related to prior
performance
years
Total
Non-deferred cash
2,859
(52)
2,807
0
0
0
Deferred compensation awards
523
656
1,179
777
757
1,534
of which: Equity Ownership Plan
155
330
485
263
245
509
of which: Deferred Contingent Capital Plan
180
241
421
312
451
763
of which: Long-Term Incentive Plan
164
40
204
160
34
193
of which: Fund Ownership Plan
24
46
69
41
27
68
Variable compensation – performance awards
3,382
604
3,986
777
757
1,534
Variable compensation – financial advisors
2
3,761
788
4,549
1,236
3,300
4,536
of which: non-deferred cash
3,440
(4)
3,436
0
0
0
of which: deferred share-based awards
110
87
197
113
209
321
of which: deferred cash-based awards
169
245
414
301
1,029
1,331
of which: compensation commitments with recruited financial advisors
42
459
502
822
2,062
2,884
Variable compensation – other
3
784
526
1,310
384
583
968
Total variable compensation
7,927
1,918
9,845
4
2,398
4,640
7,037
1 Estimate as of 31 December 2023. Actualamounts expensed may vary, e.g.due to forfeiture of awards.2 Financial advisor compensation consists of cashcompensation, determined using a formulaic approach
based on production,and deferred awards.It also includesexpenses related tocompensation commitments withfinancial advisors enteredinto at thetime of recruitmentthat are subjectto vesting requirements.
3 Consists of existing deferred awards and retention awards granted to Credit Suisse employees, as wellas replacement payments, forfeiture credits, severance payments, retention plan payments and interest expense
related to theDeferred Contingent CapitalPlan.4 Includes USD
1,094
m in expensesrelated to share-basedcompensation (performanceawards: USD
689
m; other variablecompensation: USD
208
m; financial
advisor compensation: USD
197
m). A further USD
169
m in expenses related to share-based compensation was recognizedwithin other expense categories included in Note 6 (salaries: USD
4
m related to role-based
allowances; social security: USD
137
m; other personnel expenses: USD
27
m related to the Equity Plus Plan). Total personnel expenserelated to share-based equity-settled compensation excluding social security was
USD
1,087
m.
c) Outstanding share-based compensation awards
Share and performance share awards
Movements in outstanding share-based awards to employees during 2025 and 2024 are provided in the table below.
Movements in outstanding share-based compensation awards
Number of shares
2025
1
Weighted average
grant date fair value
(USD)
Number of shares
2024
1
Weighted average
grant date fair value
(USD)
Outstanding, at the beginning of the year
193,722,338
20
198,908,588
17
Awarded during the year
53,232,817
30
65,433,201
26
Distributed during the year
(59,488,949)
18
(64,234,191)
17
Forfeited during the year
(7,973,535)
23
(6,385,261)
20
Outstanding, at the end of the year
179,492,671
24
193,722,338
20
of which: shares vested for accounting purposes
105,999,673
109,644,250
1 Number of shares reflects the maximum opportunity for awards with a performance condition.
Thetotalcarryingamountoftheliabilityrelatedtocash-settledshare-basedawardsasof31 December2025and
31 December 2024 was USD
38
m and USD
54
m, respectively.
d) Valuation
UBS share awards
UBS measures compensation expense based on the average market price of UBS shares on the grant date as quoted on
the SIXSwiss Exchange, takinginto considerationpost-vesting saleand hedgerestrictions, non-vestingconditions and
market conditions,where applicable.The fairvalue ofthe share awardssubject topost-vesting saleand hedgerestrictions
is discounted on thebasis of the durationof the post-vesting restrictionand is referencedto the cost ofpurchasing an
at-the-money European putoption for theterm of thetransfer restriction.The grant datefair value ofnotional shares
without dividendentitlements alsoincludes adeduction forthe presentvalue offuture expecteddividends tobe paid
between the grant date and distribution.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements344
Note 27Interests in subsidiaries and other entities
a) Interests in subsidiaries
UBS defines its significant subsidiariesas those entities that, eitherindividually or in aggregate, contributesignificantly to
the Group’sfinancial position orresults ofoperations, based ona number ofcriteria, including thesubsidiaries’ equity
and contributionto theGroup’s totalassets andprofit orloss beforetax, inaccordance withthe requirementsset by
IFRS 12, Swiss regulations and the rules of the US Securities and Exchange Commission (the SEC).
Individually significant subsidiaries
ThetwotablesbelowlisttheGroup’sindividuallysignificantsubsidiariesasof31 December2025.Unlessotherwise
stated, the subsidiarieslisted below haveshare capital consisting solelyof ordinary shares heldentirely by the Group,and
the proportion of ownership interest held is equal to the voting rights held by the Group.
Thecountry wherethe respectiveregistered officeis locatedis alsothe principalplace ofbusiness. UBS AGoperates
through a global branchnetwork, and a significantproportion of its businessactivity is conducted outside Switzerland,
including in theUK, the US,Singapore, the HongKong SAR andother countries. UBSEurope SE hasbranches and offices
in a number of EU Member States, including France, Germany, Italy, Luxembourg and Spain. Share capital is provided in
the currency of the legally registered office.
Individually significant subsidiaries of UBS Group AG as of 31 December 2025
Company
Registered office
Share capital in million
Equity interest accumulated in %
UBS AG
Zurich and Basel, Switzerland
USD
385.8
100.0
UBS Business Solutions AG
1
Zurich, Switzerland
CHF
1.0
100.0
1 UBS Business Solutions AG holds subsidiaries in China, India, Israel and Poland.
Individually significant subsidiaries of UBS AG as of 31 December 2025
1
Company
Registered office
Primary business
Share capital in million
Equity interest accumulated in %
Credit Suisse International
London, UK
Non-core and Legacy
USD
1.3
97.6
2
UBS Americas Holding LLC
Wilmington, Delaware, US
Group Items
USD
2,900.0
3
100.0
UBS Americas Inc.
Wilmington, Delaware, US
Group Items
USD
0.0
100.0
UBS Asset Management AG
Zurich, Switzerland
Asset Management
CHF
43.2
100.0
UBS Bank USA
Salt Lake City, Utah, US
Global Wealth Management
USD
0.0
100.0
UBS Europe SE
Frankfurt, Germany
Global Wealth Management
EUR
446.0
100.0
UBS Financial Services Inc.
Wilmington, Delaware, US
Global Wealth Management
USD
0.0
100.0
UBS Securities LLC
Wilmington, Delaware, US
Investment Bank
USD
1,283.1
4
100.0
UBS Switzerland AG
Zurich, Switzerland
Personal & Corporate Banking
CHF
10.0
100.0
1 Includes direct and indirectsubsidiaries of UBS AG.2 UBS Group AG owns theremaining
2.4
%.3 Consists of common share capital ofUSD
1,000
and non-voting preferred share capital ofUSD
2.9
bn.4 Consists
of common share capital of USD
100,000
and non-voting preferred share capital of USD
1.3
bn.
Other subsidiaries
The table below listsother direct and indirectsubsidiaries of UBS AG that arenot individually significant but contribute
totheGroup’stotalassetsandaggregatedprofitbeforetaxthresholdsandarethusdisclosedinaccordancewith
requirements set by the SEC.
Other subsidiaries of UBS AG as of 31 December 2025
Company
Registered office
Primary business
Share capital in million
Equity interest
accumulated in %
Banco de Investimentos Credit Suisse (Brasil) S.A.
São Paulo, Brazil
Investment Bank
BRL
164.8
100.0
Bank-now AG
Horgen, Switzerland
Personal & Corporate Banking
CHF
30.0
100.0
Credit Suisse (USA) LLC
Wilmington, Delaware, US
Group Items
USD
0.0
100.0
UBS Asset Management (Americas) LLC
Wilmington, Delaware, US
Asset Management
USD
0.0
100.0
UBS Asset Management Life Ltd
London, UK
Asset Management
GBP
15.0
100.0
UBS Asset Management Switzerland AG
Zurich, Switzerland
Asset Management
CHF
0.5
100.0
UBS Business Solutions US LLC
Wilmington, Delaware, US
Group Items
USD
0.0
100.0
UBS Credit Corp.
Wilmington, Delaware, US
Global Wealth Management
USD
0.0
100.0
UBS Fund Management (Switzerland) AG
Basel, Switzerland
Asset Management
CHF
1.0
100.0
UBS (Monaco) S.A.
Monte Carlo, Monaco
Global Wealth Management
EUR
49.2
100.0
UBS Securities Australia Ltd
Sydney, Australia
Investment Bank
AUD
0.3
1
100.0
UBS Securities Hong Kong Limited
Hong Kong SAR, China
Investment Bank
HKD
4,254.2
100.0
UBS Securities Japan Co., Ltd.
Tokyo, Japan
Investment Bank
JPY
44,908.7
100.0
UBS SuMi TRUST Wealth Management Co., Ltd.
Tokyo, Japan
Global Wealth Management
JPY
5,165.0
51.0
1 Includes a nominal amount relating to redeemable preference shares.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements345
Note 27Interests in subsidiaries and other entities (continued)
Consolidated structured entities
Consolidatedstructuredentities(SEs)includecertaininvestmentfunds,securitizationvehiclesandclientinvestment
vehicles. UBS has no individually significant subsidiaries that are SEs.
In2025and2024,theGroupdidnotenterintoanycontractualobligationthatcouldrequire theGrouptoprovide
financialsupporttoconsolidatedSEs.Inaddition,theGroupdidnotprovidesupport,financialorotherwise,toa
consolidatedSEwhentheGroupwasnotcontractuallyobligatedtodoso,nordoestheGroupcurrentlyhaveany
intention to do so in the future. Furthermore, theGroup did not provide support, financial or otherwise, toa previously
unconsolidated SE that resulted in the Group controlling the SE during the reporting period.
b) Interests in associates and joint ventures
As of 31 December 2025and 31 December 2024, no associateor joint venture wasindividually material to theGroup.
Also, there wereno significantrestrictions on theability ofassociates orjoint ventures totransfer fundsto UBS Group AG
or itssubsidiaries ascash dividendsor torepay loansor advancesmade. Therewere noquoted marketprices forany
associates or joint ventures of the Group.
Investments in associates and joint ventures
USD m
2025
2024
Carrying amount at the beginning of the year
2,306
2,373
Additions
55
0
Disposals
(1)
(8)
Reclassifications
1
(292)
0
Share of comprehensive income
154
145
of which: share of net profit / (loss)
2
79
144
of which: share of other comprehensive income
3
75
0
Share of changes in retained earnings
(2)
(3)
Dividends received
(159)
(51)
Impairment
(2)
Foreign currency translation
273
(149)
Carrying amount at the end of the year
2,332
2,306
of which: associates
2,332
2,057
of which: SIX Group AG, Zurich
4
1,612
1,484
of which: other associates
720
573
of which: joint ventures
1
249
1 In October 2024, UBS entered into an agreement to sell its
50
% interest in Swisscard AECS GmbH. In 2025, the investment was reclassified to Properties andother non-current assets held for sale within Other non-
financial assets. Refer to Note 28for more information.2 For 2025, consists of negative USD
14
m from associates and USD
94
m from joint ventures (for 2024, consists ofUSD
91
m from associates and USD
54
m
from joint ventures).3 For 2025,consists of USD
75
m from associates.4 In 2025, UBSAG’s legalequity interest amountedto
34
% (for 2024,UBS AG’slegal equity interestamounted to
34
%). UBS AGis
represented on the Board of Directors.
c) Unconsolidated structured entities
During2025,theGroupsponsored thecreationofvarious SEsandinteracted withanumber ofnon-sponsored SEs,
includingsecuritizationvehicles,clientvehiclesandcertaininvestmentfunds,thatUBSdidnotconsolidateasof
31 December 2025 because it did not control them.
Interests in unconsolidated structured entities
The table below presentsthe Group’s interests in andmaximum exposure to lossfrom unconsolidated SEs. Itadditionally
includes total assetsheld by theSEs in whichUBS had aninterest as ofyear-end, exceptfor unconsolidated structured
entities sponsored by third parties, for which the carrying amount of UBS’s interest as of year-end has been disclosed.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements346
Note 27Interests in subsidiaries and other entities (continued)
Interests in unconsolidated structured entities
31.12.25
USD m, except where indicated
Securitization
vehicles
1
Client
vehicles sponsored
by UBS
2
Investment
funds
Other vehicles
sponsored by third
parties
3
Total
Maximum
exposure to loss
4
Financial assets at fair value held for trading
80
415
7,696
173
8,363
8,363
Derivative financial instruments
0
230
56
0
286
286
Loans and advances to customers
126
0
172
61
359
359
Financial assets at fair value not held for trading
955
0
749
139
1,842
1,842
Financial assets measured at fair value through other
comprehensive income
0
0
0
0
0
0
Other financial assets measured at amortized cost
1,782
0
0
0
1,782
1,782
Total assets
2,942
5
645
8,673
6
373
12,632
12,632
Derivative financial instruments
0
287
940
0
1,227
51
Total liabilities
0
287
940
0
1,227
51
Assets held by the unconsolidated structured entities in
which UBS had an interest (USD bn)
32
7
3
8
232
9
0
10
31.12.24
USD m, except where indicated
Securitization
vehicles
1
Client
vehicles sponsored
by UBS
2
Investment
funds
Other vehicles
sponsored by third
parties
3
Total
Maximum
exposure to loss
4
Financial assets at fair value held for trading
94
143
6,482
235
6,953
6,953
Derivative financial instruments
2
110
83
0
195
195
Loans and advances to customers
0
138
286
23
446
446
Financial assets at fair value not held for trading
1,275
0
721
236
2,232
2,232
Financial assets measured at fair value through other
comprehensive income
0
0
0
0
0
0
Other financial assets measured at amortized cost
1,023
0
0
0
1,024
1,024
Total assets
2,394
5
392
7,571
6
494
10,851
10,851
Derivative financial instruments
1
50
716
0
767
2
Total liabilities
1
50
716
0
767
2
Assets held by the unconsolidated structured entities in
which UBS had an interest (USD bn)
63
3
8
195
9
0
10
1 Includes loans to pre-securitizationwarehouse structured entities managedby third parties that havea high loan-to-value ratio(LTV) or arecredit-impaired, as well as securitiesissued by securitization structured
entities sponsored byboth UBS andthird parties.2 Client vehicles sponsoredby UBS are structuredentities that do notqualify as asecuritization in linewith regulatory requirementsand are notconsidered an
investment fund.3 Other vehicles sponsored by third parties are structured entities that do not qualify as a securitization in line with regulatory requirements andare not considered an investment fund. Interests in
other vehicles sponsored by third parties includes loans provided to third-party structured entities that havea high LTV or are credit-impaired.4 For the purpose of this disclosure, maximum exposure to loss amounts
do not consider the risk-reducing effects of collateralor other credit enhancements.5 As of 31 December 2025, USD
999
m (31 December 2024: USD
1,273
m) represents the carrying amount of UBS’sinterests in
securitization vehicles sponsored by UBS and USD
1,943
m (31 December 2024: USD
1,121
m) represents the carrying amount of UBS’s interests in securitization vehicles not sponsored by UBS.6 As of 31 December
2025, USD
854
m (31 December2024: USD
1,008
m) represents thecarrying amount ofUBS’s interestsin investment fundssponsored by UBSand USD
7,819
m (31 December2024: USD
6,563
m) represents the
carrying amount of UBS’s interestsin investment funds not sponsored by UBS.7 As of 31 December 2025, USD
30
bn represents the principal amount outstanding for securitizationvehicles sponsored by UBS and
USD
2
bn represents the carrying amount ofUBS’s interests in securitizationvehicles not sponsored by UBS.8 Represents the market valueof total assets.9 As of 31 December 2025, USD
224
bn (31 December
2024: USD
188
bn) representsthe netasset valueof investmentfunds sponsoredby UBSand USD
8
bn (31 December2024: USD
7
bn) representsthe carryingamount ofUBS’s interestsin investmentfunds not
sponsored by UBS.10 Represents the carrying amount of UBS’s interest in other vehicles sponsoredby third parties.
The Group retainsor purchases interestsin unconsolidatedSEs in theform of directinvestments, financing,underwriting,
secondarymarketmakingactivities,guarantees,lettersofcreditandderivatives,aswellasthroughmanagement
contracts. The Group’smaximum exposureto lossis generallyequal tothe carrying amountof theGroup’s interestin
the givenSE, withthissubject tochange overtime withmarket movements.Guarantees, lettersofcreditand credit
derivatives are anexception, with thegiven contract’snotional amount,adjusted for lossesalready incurred, representing
the maximum loss that the Group is exposed to.
Themaximum exposureto lossdisclosed inthetable abovedoes notreflect theGroup’s riskmanagement activities,
includingeffectsfromfinancialinstrumentsthatmaybeusedtoeconomicallyhedgerisksinherentinthegiven
unconsolidated SE or risk-reducing effects of collateral or other credit enhancements.
In2025and2024,theGroupdidnotprovidesupport,financialorotherwise,toanyunconsolidatedSEwhennot
contractually obligated to do so, nor does the Group currently have any intention to do so in the future.
In 2025and 2024,income andexpenses frominterests inunconsolidated SEsprimarily resultedfrom mark-to-market
movements recognizedin
Other netincome fromfinancial instrumentsmeasured atfair valuethrough profitorloss
,
which were generallyhedged with otherfinancial instruments, aswell as feeand commission incomereceived from UBS-
sponsored funds.
Interests in securitization vehicles
In addition to the interestsdisclosed in the table above,the Group manages theassets of certain securitization vehicles
and receives fees based, inwhole or in part,on the asset valueof the vehicles. Interest insuch vehicles is notrepresented
by theon-balance sheetfee receivablebut ratherby thefuture exposureto variablefees. Thenet assetvalue ofsuch
vehicles was USD
25
bn as of 31 December 2025 (31 December 2024: USD
24
bn) and has been excluded from the table
above.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements347
Note 27Interests in subsidiaries and other entities (continued)
The numbers outlinedin the table above may differ from thesecuritizationpositions presentedin the 31 December 2025
Pillar 3Report,availableunder“Pillar 3disclosures”at
ubs.com/investors
, forthe followingreasons:(i) exclusionof synthetic
securitizationstransactedwithentitiesthat arenot SEsand transactionsin whichthe Groupdid nothave aninterestbecause
it didnot absorbany risk;(ii) adifferentmeasurementbasisin certaincases(e.g.IFRS AccountingStandardscarryingamount
within thetable abovecompared withnet exposureamount atdefault forPillar 3 disclosures);(iii) differentclassificationof
vehicles viewed as sponsoredby the Group versus sponsored by third parties;and (iv) as the trading book exposure table
has beenremoved,Pillar 3 disclosuresnow only includebanking booksecuritizationexposures.
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
,
for more information
Interests in client vehicles sponsored by UBS
UBS-sponsoredclientvehiclesareestablishedpredominantlyforclientstogainexposuretospecificassetsorrisk
exposures. Such vehicles may enter intoderivative agreements,with UBS or a thirdparty,to align the cash flows ofthe
entity with the investor’s intended investment objective, or to introduce other desired risk exposures.
Interests in investment funds
Investment funds have a collective investment objective, and areeither passively managed, so that any decision-making
does not have a substantive effect on variability, or are actively managed and investors or their governing bodies do not
have substantive voting or similar rights.
In additionto theinterests disclosedin thetable above,the Groupmanages theassets ofvarious pooledinvestment
funds and receivesfees based, inwhole or inpart, on thenet asset valueof the fundand / orthe performance ofthe
fund. These fee contracts represent an interest in the fund, as they alignthe Group’s exposure with investors, providing
a variablereturn basedon theperformance ofthe entity.Depending onthe structureof thefund, thesefees maybe
collected directly fromthe fund’sassets and/ orfrom theinvestors. Any amountsdue arecollected on aregular basis
and aregenerally backedby thefund’s assets.Therefore, interestin suchfunds isnot representedby theon-balance
sheet fee receivable but ratherby the future exposureto variable fees. The netasset value of such fundswas USD
637
bn
and USD
532
bn asof 31 December2025 and31 December 2024, respectively,and hasbeen excludedfrom thetable
above.TheGroupdidnot haveanymaterial exposuretoloss fromtheseinterestsasof31 December 2025orasof
31 December 2024.
Interests in other vehicles sponsored by third parties
Interests in other vehicles sponsored by third parties include loans with a high LTV and credit-impaired loans provided to
third-party structured entities.
Sponsored unconsolidated structured entities in which UBS did not have an interest at year-end
UBS is consideredto sponsor another entityif, in addition toongoing involvement with thatentity,it had akey role in
establishing that entity or in bringing together relevant counterparties for a transaction facilitated by that entity.
During 2025 and 2024, the Group did not earn material income from sponsored unconsolidated SEs in which it did not
have an interest at year-end.
During2025,theaggregatedcarryingamountofassetstransferredintonewlycreatedsponsoredSEs,excluding
sponsored funds,was USD
10.3
bn (2024:USD
5.5
bn). Forsponsored investmentfunds, severalnew open-endedand
close-ended funds were created duringthe year with further transfersarising from management of thestrategy, investor
activity and market movements, which didnot result in a material net assetvalue movement in 2025 (2024:immaterial).
Certain associatesin theAsset Managementbusiness divisionsponsor investmentfunds.TheGroup’s shareofthose
associates’ invested assets is USD
93
bn (2024: USD
84
bn).
›
Refer to Note 30 for more information about invested assets
Note 28Changes in organization and acquisitions and disposals of subsidiaries and businesses
Acquisitions and increases in ownership interests in subsidiaries and businesses
Acquisition of Credit Suisse Group
On 12 June 2023,UBS Group AG acquiredCredit Suisse Group AG,succeeding by operationof Swiss lawto all assets
and liabilitiesof CreditSuisse Group AG,and becamethe director indirectshareholder of allof theformer directand
indirectsubsidiariesofCreditSuisseGroupAG.TheacquisitionofCreditSuisseGroupAGconstitutedabusiness
combination underIFRS 3,
Business Combinations
, andwas requiredto beaccounted forby applyingthe acquisition
methodofaccounting.ThetransactionresultedinnegativegoodwillofUSD
27.3
bnrecognizedintheyearended
31 December 2023, which represents the difference between the amounts at which the acquiredidentifiable net assets
were recognized and the fair value of the consideration transferred.
›
Refer to the “Integration of Credit Suisse” section of this report for more informationabout the acquisition of the Credit Suisse
Group,to Note 1a) for more information about the applicable accounting policies and to Note17 for more information about the
acquisition-related contingent liabilities
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements348
Note 28Changes in organization and acquisitions and disposals of subsidiaries and businesses (continued)
Ownership increase in UBS Securities China
In the secondquarter of 2025,UBS increased itsstake in UBSSecurities China from
67
% to
100
%. The closingof the
transaction did not affect profit or loss.
Disposals of subsidiaries and businesses
Agreement to sell Swisscard AECS GmbH
In October 2024, UBSentered into an agreementto sell to American ExpressSwiss Holdings GmbH (American Express)
its
50
% interest inSwisscard AECS GmbH(Swisscard), a jointventure in Switzerlandbetween UBS andAmerican Express,
subject to certain closing conditions. Also in October 2024, UBS entered into an agreement with Swisscard to transition
the Credit Suisse-branded card portfolios to UBS. In 2024,UBS recorded an expense of USD
41
m in connection with the
terminationoftheSwisscardjointventure.InJanuary2025,UBScompletedthepurchaseofthecardportfoliosand
recordedanexpenseofUSD
180
mrelatedtothispurchaseandagainofUSD
64
mrelatedtoUBS’sinvestmentin
Swisscard. As of 31 December2025, the
50
% interest in Swisscardwas presented as
Properties and other non-current
assets heldfor sale
and amountedto USD
299
m. InJanuary 2026,UBS completedthe saleof its
50
% interestin Swisscard
and expectsto recognize again onsale inthe first quarterof 2026. Aspreviously disclosed,this gainis expected tolargely
offset the aforementioned effects related to the prior Swisscard transactions recorded in 2024 and 2025.
Sale of Select Portfolio Servicing
In March 2025, UBScompleted the sale ofSelect Portfolio Servicing,the US mortgageservicing business of CreditSuisse,
which wasmanaged inNon-core andLegacy. UBSrecognized again ofUSD
97
m uponthe completionof thetransaction.
As of 31 December 2024,the associated assets andliabilities were presented as
Assets of disposal groupsheld for sale
and
Liabilities of disposalgroups held forsale
, respectively, andamounted to USD
1,705
m and USD
1,199
m, respectively.
Collaboration with 360 ONE WAM Ltd and sale of wealth management business in India
In April 2025,UBS entered intoa strategic collaborationwith 360 ONEWAM Ltd (360ONE), one ofIndia’s largest wealth
and assetmanagement firms.As partof theagreement, UBSacquired warrantsfor a
4.83
% interestin 360ONE and
solditsonshorewealthmanagementbusinessinIndiato360ONE.Uponthecompletionofthesalein2025,UBS
recognized a gain of USD
33
m.
Sale of O’Connor business
In May2025, UBSAsset Management(Americas) LLCentered intoan agreementto sellits O’Connorsingle-manager
hedgefund,privatecreditandcommoditiesplatformtoCantorFitzgerald.On31 December2025,UBSAsset
Management(Americas)LLCcompletedthefirstclosingofthetransaction.Inconnectionwiththisclosing,UBS
recognized a loss of USD
29
m in 2025. UBS expects to complete the transferof the remaining funds in the first quarter
of 2026 and does not expect to recognize any material profit or loss upon such completion.
Sale of a 36.01% stake in Credit Suisse Securities (China) Limited
In 2025,UBS completedthe saleof a
36.01
% stakein asubsidiary, CreditSuisse Securities(China) Limited(CSS), to
Beijing State-Owned Assets Management Co., Ltd., and deconsolidated the entity. The sale resultedin a pre-tax gain of
USD
128
m. UBSretains a
14.99
% shareholdingin CSSand accountsfor thisminority interestas aninvestment inan
associate.
Changes in organization
Legal structure integration
On31 May 2024,the mergerofUBS AGand CreditSuisse AGwas completed.UBSAG succeededto allrights and
obligations of Credit Suisse AG, including all outstanding Credit Suisse AG debt instruments.
On 7 June2024, the transitionto asingle US intermediateholding company wascompleted. Inthe second quarterof
2025,CreditSuisseHoldings(USA),Inc.mergedwithUBSAmericasInc,andCreditSuisseSecurities(USA)LLCwas
deregistered as a broker-dealer.
On 1 July 2024, the merger of UBSSwitzerland AG and Credit Suisse (Schweiz)AG was completed. UBS Switzerland AG
succeeded to all rights and obligations of Credit Suisse (Schweiz) AG.
›
Refer to the “Integration of Credit Suisse” section of this report for more information
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements349
Note
29Related parties
Related parties of the Group are:
–
associates (entities that are under the significant influence of UBS);
–
joint ventures (entities in which UBS shares control with another party);
–
post-employment benefit plans for the benefit of UBS employees;
–
key management personnel and close family members of key management personnel; and
–
entities over which key management personnel or their close family members have solely or jointly a direct or indirect
significant influence.
Key management personnel arethose persons having authorityand responsibility for planning,directing, and controlling
the activities ofthe Group, directlyor indirectly. TheGroup considers themembers of theBoard of Directors(the BoD)
and the Group Executive Board (the GEB) to constitute key management personnel.
a) Remuneration of key management personnel
The ViceChairman ofthe BoDhas aspecific managementemployment contractand receivespension benefitsupon
retirement. Totalremuneration of the Chairman and theVice Chairman of the BoD andall GEB members is included in
the table below.
Remuneration of key management personnel
USD m, except where indicated
31.12.25
31.12.24
31.12.23
Base salaries and other cash payments
1
32
33
35
Incentive awards – cash
2
38
30
24
Annual incentive award under DCCP
34
39
36
Employer’s contributions to retirement benefit plans
4
3
3
Benefits in kind, fringe benefits (at market value)
1
2
1
Share-based compensation
3
76
65
63
Total
184
172
162
Total (CHF m)
4
153
151
147
1 For 2023, may include role-based allowances in line with market practice and regulatory requirements. From2024 onward, role-based allowances for GEB members have been eliminated.2 The cash portion may
also include blocked shares in linewith regulatory requirements.3 Compensation expense is based onthe share price on grant datetaking into account performance conditions. Refer toNote 26 for more information.
For GEB members, share-basedcompensation for 2025, 2024 and 2023was entirely composed of LTIPawards. For theChairman and the Vice Chairmanof the BoD, the share-basedcompensation for 2025, 2024
and 2023 was entirely composed of UBSshares.4 Swiss franc amounts disclosed represent therespective US dollar amounts translated atthe applicable performance award currency exchangerates (2025: USD /
CHF
0.83
; 2024: USD / CHF
0.88
; 2023: USD / CHF
0.91
).
The independent members of the BoD, including the Chairman, do not haveemployment or service contracts with UBS
and thus are not entitledto benefits upon terminationof their service onthe BoD. Payments tothese individuals for their
services as independent membersof the BoD amountedto USD
13.8
m (CHF
11.4
m) in 2025,USD
13.1
m (CHF
11.5
m)
in 2024 and USD
11.7
m (CHF
10.6
m) in 2023.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements350
Note 29Related parties (continued)
b) Equity holdings of key management personnel
Equity holdings of key management personnel
1
31.12.25
31.12.24
Number of UBS Group AG shares held by members of the BoD and the GEB and parties closely linked to them
2
7,085,881
5,593,474
1 No options were held in 2025 and 2024 by non-independent members of the BoD or anyGEB member or any of their related parties.2 Excludes shares granted under variable compensation plans with forfeiture
provisions.
Of theshare totalsabove, noshares wereheld byclose familymembers ofkey managementpersonnel on31 December
2025 and 31 December 2024. No shares inUBS Group AG were held byentities that are directly or indirectly controlledor
jointly controlledby keymanagement personnelor theirclose familymembers on31 December 2025and 31 December
2024. As of 31 December 2025, no memberof the BoD or GEB was thebeneficial owner of more than 1% of theshares in
UBS Group AG.
c) Loans, advances, mortgages and deposit balances with key management personnel
The non-independent members ofthe BoD and GEBmembers are granted loans,fixed advances and mortgagesin the
ordinarycourseofbusinessonsubstantiallythesametermsandconditionsthatareavailabletootheremployees,
including interest ratesand collateral,and neitherinvolve more thanthe normalrisk of collectabilitynor containany other
unfavorable features for the firm.Independent BoD members are grantedloans and mortgages inthe ordinary course of
business at general market conditions.
Outstanding balances with key management personnel were as follows.
Loans, advances, mortgages and deposit balances with key management personnel
1
USD m, except where indicated
2025
2024
Loans
Deposit
balances
Loans
Deposit
balances
Balance at the beginning of the year
51
139
61
24
Balance at the end of the year
59
158
51
139
Balance at the end of the year (CHF m)
2
47
125
46
126
1 All loans are secured loans.2 Swiss franc amounts disclosed represent the respective US dollar amounts translated at the relevant year-endclosing exchange rate.
d) Other related-party transactions with entities controlled by key management personnel
In 2025and 2024, UBSdid not enterinto transactionswith entitiesover whom UBS’skey managementpersonnel ortheir
closefamilymembershavesolelyorjointlyadirectorindirectsignificantinfluence,andasof31 December2025,
31 December2024and 31 December2023there wereno outstandingbalancesrelated tosuch transactions.Furthermore,
in 2025and 2024,such entitiesdid notsell anygoods orprovide anyservicesto UBSand thereforedid notreceive anyfees
from UBS. UBSalso didnot provideservices tosuch entitiesin 2025and 2024and thereforealso receivedno fees.
e) Transactions with associates and joint ventures
Loans to and outstanding receivables from associates and joint ventures
USD m
2025
2024
Carrying amount at the beginning of the year
663
271
Additions
785
866
Reductions
(695)
(440)
Foreign currency translation
95
(34)
Carrying amount at the end of the year
849
663
of which: unsecured loans and receivables
840
656
Other transactions with associates and joint ventures
As of or for the year ended
USD m
31.12.25
31.12.24
Payments to associates and joint ventures for goods and services received
445
1
228
Income from services provided to associates and joint ventures
36
39
Liabilities to associates and joint ventures
116
312
1 Includes a USD
180
m expense related to the payment to Swisscard AECS GmbH for the sale of the Credit Suisse card portfolios to UBS. Referto Note 28 for more information.
In addition to the items in the table above, transactions with associatesand joint ventures also include off-balance sheet
exposures of USD
0.9
bn (2024: USD
1.1
bn), which are provided on an arm’s length basis.
›
Refer to Note 27 for an overview of investments in associates and joint ventures
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements351
Note 30Invested assets and net new money
ThefollowingdisclosuresprovideabreakdownofUBS’sinvestedassetsandapresentationoftheirdevelopment,
including net new money, as requiredby the Swiss Financial Market Supervisory Authority (FINMA).
Invested assets
Invested assetsconsist ofall clientassets managedby ordeposited withUBS forinvestment purposes.Invested assets
include managedfund assets,managed institutionalassets, discretionaryand advisorywealth managementportfolios,
fiduciary deposits, time deposits, savings accounts, and wealth management securities or brokerage accounts. All assets
heldforpurelytransactionalpurposesandcustody-onlyassets,includingcorporateclientassetsheldforcash
management andtransactional purposes,are excludedfrom investedassets, asthe Grouponly administersthe assets
and does not offeradvice on how theyshould be invested. Alsoexcluded are non-bankableassets (e.g. art collections)
and deposits from third-party banks for funding or trading purposes.
Discretionary assets aredefined as clientassets thatUBS decides howto invest.Other invested assetsare thosewhere
the client ultimately decides howthe assets are invested. Whena single product is createdin one business division and
sold inanother, itis countedin boththe businessdivision managingthe investmentand theone distributingit. This
resultsindoublecountingwithinUBS’stotalinvestedassetsandnetnewmoney,asbothbusinessdivisionsare
independently providing a service to their respective clients, and both add value and generate revenue.
Net new money
Net new money in a reporting period is the amount of invested assets entrusted to UBS by new and existing clients, less
those withdrawn by existing clients and clients who terminated relationships with UBS.
Net newmoney is calculatedusing the directmethod, under whichinflows and outflowsto / frominvested assets are
determined at the client level, based on transactions. Interest and dividend income from invested assets arenot counted
as net new moneyinflows. Market andcurrency movements, aswell as fees, commissionsand interest on loanscharged,
areexcludedfromnetnewmoney.AlsoexcludedareeffectsresultingfromanyacquisitionordivestmentofaUBS
subsidiary orbusiness, aswell aseffects thatresult fromUBS’s strategicdecisions toexit amarket orcease offeringa
service inaparticular location,orthoseresulting fromnew externallyimposed regulations.Reclassifications between
invested assets and custody-only assets as a result of a change in service level delivered are generally treated as net new
moneyflows.However,wherethechangeinserviceleveldirectlyresultsfromanexternallyimposedregulationora
strategic decision byUBS to exita market orcease offering aservice in aparticular location, theone-time net effectis
reported as
Other effects
.
The Investment Bank does not track invested assets and net new money. However, when a client is transferred from the
Investment Bank to another business division, this may producenet new money for the receiving business divisioneven
though the client’s assets were already with UBS.
Invested assets and net new money
As of or for the year ended
USD bn
31.12.25
31.12.24
Fund assets managed by UBS
674
639
Discretionary assets
2,663
2,213
Other invested assets
3,668
3,235
Total invested assets
1
7,005
6,087
of which: double counts
598
503
Net new money
1,2
36
52
1 Includes the share of net new money and invested assets relating to associates in the Asset Management business division.2 Includes double counts.
Development of invested assets
USD bn
2025
2024
Total invested assets at the beginning of the year
1,2
6,087
5,714
Net new money
36
52
Market movements
3
648
542
Foreign currency translation
274
(155)
Other effects
(40)
(67)
of which: acquisitions / (divestments)
(4)
(6)
Total invested assets at the end of the year
1,2
7,005
6,087
1 Includes the share of net new money and invested assets relating to associates in the Asset Management business division.2 Includes double counts.3 Includes interest and dividend income.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements352
Note 31Currency translation rates
The following tableshows the ratesof the maincurrencies used totranslate the financialinformation of UBS’soperations
with a functional currency other than the US dollar into US dollars.
Currency translation rates
Closing exchange rate
Average rate
1
As of
For the year ended
31.12.25
31.12.24
31.12.25
31.12.24
31.12.23
1 CHF
1.26
1.10
1.21
1.13
1.12
1 EUR
1.17
1.04
1.13
1.08
1.08
1 GBP
1.35
1.25
1.32
1.28
1.25
100 JPY
0.64
0.63
0.67
0.66
0.70
1 Monthly income statement itemsof operations with a functionalcurrency other than the US dollarare translated into US dollarsusing month-end rates.Disclosed average rates fora year represent an averageof
twelve month-end rates,weighted according tothe income andexpense volumes ofall operations ofthe Group withthe same functionalcurrency for eachmonth. Weighted averagerates for individualbusiness
divisions may deviate from the weighted average rates for the Group.
Note 32Main differences between IFRS Accounting Standards and Swiss GAAP
The consolidatedfinancial statementsof UBSGroup AG arepreparedin accordancewith IFRSAccounting Standards.
The Swiss FinancialMarket SupervisoryAuthority (FINMA)requires financial groups presentingfinancial statementsunder
IFRS AccountingStandards toprovide a narrativeexplanation ofthe maindifferences between IFRSAccounting Standards
and Swissgenerally accepted accountingprinciples (GAAP) (theFINMA Accounting Ordinance,FINMA Circular2020/1
“Accounting – banks” andthe Banking Ordinance (theBO)). Included in thisNote are thesignificant differences inthe
recognition andmeasurement between IFRSAccounting Standards andthe provisionsof the BOand the guidelinesof
FINMA governing true and fair view financial statement reporting pursuant to Art. 25 to Art. 42 of the BO.
1. Consolidation
Under IFRSAccounting Standards,all entitiesthat arecontrolledby theholding entityareconsolidated. UnderSwiss
GAAP,controlled entities deemed immaterial to agroup or those held onlytemporarily are exempt fromconsolidation,
butinsteadarerecordedasparticipationsaccountedforundertheequitymethodofaccountingorasfinancial
investments measured at the lower of cost or market value.
2. Classification and measurement of financial assets
UnderIFRSAccountingStandards,debtinstrumentsaremeasuredatamortizedcost,fairvaluethroughother
comprehensiveincome(FVOCI) orfairvalue throughprofitorloss(FVTPL),dependingonthenatureofthe business
model within which the particular assetis held and the characteristics ofthe contractual cash flows of theasset. Equity
instruments are accountedfor at FVTPLby UBS. UnderSwiss GAAP, trading assets and derivativesare measured atFVTPL,
in linewith IFRSAccounting Standards.However,non-trading debtinstruments aregenerally measuredat amortized
cost, evenwhen theassets aremanaged ona fairvalue basis.In addition,the measurementof financialassets inthe
form of securitiesdepends on thenature of theasset: debt instrumentsnot held tomaturity,i.e. instruments available
for sale, and equity instruments with no permanent holding intent, are classified as
Financial investments
and measured
at the lower of (amortized) cost ormarket value. Market value adjustments up to the originalcost amount and realized
gains orlosses upondisposal ofthe investmentare recordedin theincome statementas
Other income
from
ordinary
activities.
Equityinstrumentswithapermanentholdingintentareclassifiedasparticipationsin
Non-consolidated
investments insubsidiaries andotherparticipations
and aremeasuredatcost lessimpairment. Impairmentlossesare
recorded in theincome statementas
Impairment ofinvestments innon-consolidated subsidiariesand otherparticipations.
Reversals of impairments up to the originalcost amount and realized gains or lossesupon disposal of the investment are
recorded as
Extraordinary income
/
Extraordinary expenses
.
3. Fair value option applied to financial liabilities
Under IFRSAccounting Standards,UBS appliesthe fairvalue optionto certainfinancial liabilitiesnot heldfor trading.
Instruments for which the fairvalue option is applied areaccounted for at FVTPL. Theamount of change in thefair value
attributable tochanges inUBS’s owncredit ispresented in
Other comprehensiveincome
directly within
Retained earnings
.
The fair value option is applied primarily to issued structured debt instruments, certain non-structured debt instruments,
certain payables under repurchase agreements and cash collateralon securities lending agreements, amountsdue under
unit-linked investment contracts, and brokerage payables.
Under SwissGAAP, thefair valueoption canonly beapplied tostructured debtinstruments consistingof adebt host
contract andone ormore embeddedderivatives thatdo notrelate toown equity.Furthermore, unrealizedchanges in
fair value attributableto changes inUBS’s own creditare not recognized,whereas realized owncredit is recognizedin
Net trading income
.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements353
Note 32Main differences between IFRS Accounting Standards and Swiss GAAP (continued)
4. Allowances and provisions for credit losses
Swiss GAAP permituse of IFRSAccounting Standards foraccounting for allowancesand provisions forcredit losses based
on an expected credit loss (ECL) model. UBS has chosen to apply the IFRS 9 ECL approach to those exposures that are in
the ECL scope of both frameworks, IFRS Accounting Standards and Swiss GAAP.
For the small residual exposures within thescope of Swiss GAAP ECL requirements, whichare not subject to ECL under
IFRS Accounting Standards due to classification differences, UBS applies alternative approaches.
–
For exposures for which Pillar 1 internal ratings-based modelsare applied to measure credit risk, ECL is determinedby
the regulatory expected loss(EL), with an add-onfor scaling up tothe residual maturity ofexposures maturing beyond
the next12 months,as appropriate.For detailedinformation onregulatory EL,refer tothe “Riskmanagement and
control” section of this report.
–
For exposures forwhich the Pillar 1standardized approach isused to measurecredit risk, ECLis determined usinga
portfolio approach thatderives a conservativeprobability of default(PD) and aconservative loss givendefault (LGD)
for the entire portfolio.
5. Hedge accounting
Under IFRSAccounting Standards, whencash flowhedge accountingis applied,the fairvalue gainor losson theeffective
portion ofa derivativedesignated asa cashflow hedgeis recognizedinitially inequity andreclassified tothe income
statement when certainconditions are met.When fair valuehedge accounting isapplied, the fairvalue change ofthe
hedged item attributable to thehedged risk is reflected in themeasurement of the hedged item andis recognized in the
income statementalong withthe changein thefair valueof thehedging derivative.Under SwissGAAP,the effective
portion of the fair value change of a derivative instrument designated as a cash flow or as a fair value hedge is deferred
on the balance sheet as
Other assets
or
Other liabilities
. The carrying amount ofthe hedged item designated infair value
hedges is not adjusted for fair value changes attributable to the hedged risk.
6. Business combinations, goodwill and intangible assets
Under IFRS Accounting Standards, business combinations are accounted for using the acquisition method, as prescribed
byIFRS3,
BusinessCombinations
.Goodwillandintangibleassetswithindefiniteusefullivesacquiredinabusiness
combinationarenotamortizedbuttestedannuallyforimpairment.Negativegoodwillisrecognizedintheincome
statement.
UnderSwissGAAP,assetsandliabilitiesacquiredinabusinesscombinationaregenerallyrecordedatmarketvalue.
Goodwill and intangible assets with indefinite useful lives are amortized over a period not exceeding
five years
, unless a
longeruseful life,whichmaynotexceed
ten years
,canbejustified. Inaddition,theseassetsaretestedannuallyfor
impairment.Ifacquisition-dateamountsofthenetassetsacquiredexceedthemarketvalueoftheconsideration
transferred,incrementalprovisionsarerecognizedforexpectedcashoutflowsrelatedtotakingovercontrolofthe
business, e.g. for expected restructuring. Any remaining negative goodwill is recognized in the income statement.
7. Post-employment benefit plans
Swiss GAAPpermit theuse ofIFRS AccountingStandards orSwiss accountingstandards forpost-employment benefit
plans, with the election made on a plan-by-plan basis.
UBS has elected to apply IAS 19 forthe non-Swiss defined benefit plans in theUBS AG standalone financial statements
andSwissaccountingstandardsfortheSwisspensionplanintheUBS AGandtheUBSSwitzerland AGstandalone
financial statements. The requirements ofSwiss GAAP are better aligned with thespecific nature of Swiss pension plans,
which arehybrid inthat theycombine elementsof definedcontribution anddefined benefitplans, butare treatedas
definedbenefitplansunderIFRSAccountingStandards.KeydifferencesbetweenSwissGAAPandIFRSAccounting
Standardsincludethetreatmentofdynamicelements,suchasfuturesalaryincreasesandfutureinterestcreditson
retirement savings,which arenot consideredunder thestatic methodused inaccordance withSwiss GAAP.Also, the
discount rate usedto determine thedefined benefit obligationin accordance withIFRS Accounting Standardsis based
on the yield ofhigh-quality corporate bonds ofthe market in therespective pension plan country.The discount rate used
in accordance with Swiss GAAP (i.e.the technical interest rate) is determined bythe Pension Foundation Board based on
the expected returns of the Board’s investment strategy.
For defined benefit plans, IFRS Accounting Standards require the full defined benefit obligation net of the plan assets to
berecordedonthebalancesheetsubjecttotheassetceilingrules,withchangesresultingfromremeasurements
recognizeddirectlyinequity.However,fornon-SwissdefinedbenefitplansforwhichIFRSAccountingStandardsare
elected, changesdue toremeasurements arerecognized inthe incomestatement ofUBS AG standaloneunder Swiss
GAAP.
Annual Report 2025
| Consolidated financial statements | UBS Group AG consolidated financial statements354
Note 32Main differences between IFRS Accounting Standards and Swiss GAAP (continued)
Swiss GAAP require employercontributions to the pensionfund to be recognizedas personnel expenses inthe income
statement. SwissGAAP alsorequire anassessment ofwhether, basedon thepension fund’sfinancial statementsprepared
in accordancewith Swissaccounting standards (FER 26),an economicbenefit to,or obligationof, theemployer arises
fromthepensionfundthatisrecognizedinthebalancesheetwhenconditionsaremet.Conditionsforrecordinga
pension asset orliability would bemet if, forexample, an employercontribution reserve isavailable or theemployer is
required to contribute to the reduction of a pension deficit (on an FER 26 basis).
8. Leasing
Under IFRSAccounting Standards,asingle leaseaccounting modelapplies thatrequires UBSto recorda right-of-use
(RoU) assetand acorresponding leaseliability onthe balancesheet whenUBS isa lesseein alease arrangement.The
RoU assetand thelease liabilityare recognizedwhen UBSacquires controlof thephysical useof theasset. Thelease
liabilityismeasuredbasedonthepresentvalueoftheleasepaymentsovertheleaseterm,discountedusingUBS’s
unsecured borrowingrate. TheRoU assetis recordedat anamount equalto thelease liabilitybut isadjusted forrent
prepayments, initial direct costs, any costs to refurbish the leased asset and/ or lease incentives received. The RoU asset
is depreciated over the shorter of the lease term or the useful life of the underlying asset.
UnderSwissGAAP,leasesthattransfersubstantiallyalltherisksandrewards,butnotnecessarilylegaltitleinthe
underlying assets,are classifiedas financeleases. Allother leasesare classifiedas operatingleases. Whereasfinance leases
arerecognized onthebalancesheetandmeasuredinlinewithIFRSAccounting Standards,operatingleasesarenot
recognized onthe balancesheet, withpayments recognizedas
General andadministrative expenses
on astraight-line
basis over the lease term, which commences with controlof the physical use of the asset. Lease incentivesare treated as
a reduction of rental expense and recognized on a consistent basis over the lease term.
9. Netting of derivative assets and liabilities
Under IFRS Accounting Standards, derivative assets, derivative liabilities and related cash collateral notsettled to market
arereportedonagrossbasisunlesstherestrictivenettingrequirementsunderIFRSAccountingStandardsaremet:
(i) existenceofmasternettingagreementsandrelatedcollateralarrangementsthatareunconditionalandlegally
enforceable, inboth thenormal courseof businessand theevent ofdefault, bankruptcyor insolvencyof UBSand its
counterparties;and(ii) UBS’sintentiontoeithersettleonanetbasisortorealizetheassetandsettletheliability
simultaneously. Under Swiss GAAP,derivative assets, derivative liabilitiesand related cash collateralnot settled to market
aregenerallyreportedonanetbasis,providedthemasternettingandtherelatedcollateralagreementsarelegally
enforceable in the event of default, bankruptcy or insolvency of UBS’s counterparties.
10. Negative interest
Under IFRS Accounting Standards,negative interest incomearising on afinancial asset doesnot meet thedefinition of
interestincomeand,therefore,negativeinterestonfinancialassetsandnegativeinterestonfinancialliabilitiesare
presented withininterest expenseand interestincome, respectively.Under SwissGAAP,negative intereston financial
assets is presentedwithin interest incomeand negativeinterest on financialliabilities ispresented within interestexpense.
11. Extraordinary income and expense
Certain non-recurring and non-operating income and expense items, such asnegative goodwill, realized gains or losses
from the disposalof participations, fixed andintangible assets, and reversalsof impairments of participations andfixed
assets, areclassified asextraordinaryitems underSwiss GAAP.This distinctionis notavailable underIFRS Accounting
Standards.
Annual Report 2025
| Significant regulated subsidiary and sub-group information355
Significant regulated subsidiary
and sub-group information
Unaudited
Financial and regulatory key figures for our significant regulated subsidiaries and sub-groups
UBS AG
(consolidated)
UBS AG
(standalone)
UBS Switzerland AG
(standalone)
UBS Europe SE
(consolidated)
UBS Americas
Holding LLC
(consolidated)
All values in million, except where indicated
USD
USD
CHF
EUR
USD
Financial and regulatory requirements
IFRS Accounting Standards
Swiss SRB rules
IFRS Accounting
Standards
Swiss SRB rules
IFRS Accounting
Standards
Swiss SRB rules
IFRS Accounting
Standards
EU regulatory rules
US GAAP
US Basel III rules
As of or for the year ended
31.12.25
31.12.24
31.12.25
31.12.24
31.12.25
31.12.24
31.12.25
31.12.24
31.12.25
31.12.24
1
Financial information
2
Income statement
Total operating income
3
47,139
41,779
22,682
4
19,244
11,701
4
11,245
1,429
1,193
17,631
17,441
Total operating expenses
43,038
39,346
14,097
12,897
9,526
8,095
1,252
1,045
16,199
17,262
Operating profit / (loss) before tax
4,101
2,433
8,586
6,347
2,174
3,150
177
148
1,432
178
Net profit / (loss)
3,566
1,533
8,470
6,708
1,793
2,644
156
89
1,887
(51)
Balance sheet
Total assets
1,617,173
1,568,060
937,167
966,697
509,530
526,521
54,143
55,344
207,057
211,893
Total liabilities
1,527,994
1,473,394
852,392
878,365
485,533
500,273
49,813
50,966
181,629
185,168
Total equity
89,179
94,666
84,775
88,332
23,998
26,249
4,330
4,377
25,428
26,725
Capital
5
Common equity tier 1 capital
70,394
73,792
74,108
75,051
21,188
21,659
3,109
3,239
13,696
16,123
Additional tier 1 capital
19,600
15,830
19,600
15,830
7,994
7,994
600
600
2,825
2,818
Total going concern capital / Tier 1 capital
89,993
89,623
93,707
90,881
29,182
29,652
3,709
3,839
16,521
18,941
Tier 2 capital
25
207
24
204
203
240
Total capital
3,709
3,839
16,723
19,181
Total gone concern loss-absorbing capacity
90,164
92,177
90,163
92,174
19,147
19,274
2,505
6
2,540
6
7,800
7
7,800
7
Total loss-absorbing capacity
180,157
181,800
183,870
183,055
48,329
48,926
6,215
6,379
24,321
7
26,741
7
Risk-weighted assets and leverage
ratio denominator
5
Risk-weighted assets
489,775
495,110
491,583
507,964
164,062
186,265
15,926
14,079
75,654
78,166
Leverage ratio denominator
1,622,921
1,523,277
929,979
899,348
538,262
556,053
55,952
55,567
198,104
197,487
Supplementary leverage ratio denominator
232,902
227,973
Capital and leverage ratios (%)
5
Common equity tier 1 capital ratio
14.4
14.9
15.1
8
14.8
12.9
11.6
19.5
23.0
18.1
20.6
Going concern capital ratio / Tier 1 capital ratio
18.4
18.1
19.1
17.9
17.8
15.9
23.3
27.3
21.8
24.2
Total capital ratio
23.3
27.3
22.1
24.5
Total loss-absorbing capacity ratio
36.8
36.7
29.5
26.3
39.0
45.3
32.1
34.0
Tier 1 leverage ratio
6.6
6.9
8.3
9.6
Supplementary tier 1 leverage ratio
7.1
8.3
Going concern leverage ratio
5.5
5.9
10.1
10.1
5.4
5.3
Total loss-absorbing capacity leverage ratio
11.1
11.9
9.0
8.8
11.1
11.5
12.3
13.5
Gone concern capital coverage ratio
115.4
122.3
Liquidity coverage ratio
5
High-quality liquid assets (bn)
331.7
331.6
149.3
142.7
115.2
125.0
21.0
17.3
27.9
26.8
Net cash outflows (bn)
188.4
178.2
63.7
58.6
87.3
87.2
14.9
12.5
21.9
20.1
Liquidity coverage ratio (%)
176.2
186.1
234.9
9
244.0
132.0
10
143.5
141.5
138.9
127.4
133.6
Net stable funding ratio
5
Total available stable funding (bn)
873.5
847.0
404.8
410.2
357.0
359.2
20.5
17.1
102.6
109.3
Total required stable funding (bn)
755.3
682.5
446.5
421.8
285.0
271.7
15.0
13.7
80.5
80.5
Net stable funding ratio (%)
115.7
124.1
90.7
11
97.3
125.2
11
132.2
137.3
125.5
127.3
135.8
Other
Joint and several liability between UBS AG and
UBS Switzerland AG (bn)
12
2.0
2.9
1 Comparative information has been aligned with UBS Americas Holding LLC’s regulatory resubmissionof the FR Y-9C report for the fourth quarter of 2024,reflecting a reduction in RWA and improved capital ratios.
2 The financial information disclosed does not represent a full set of financial statements under therespective GAAP / IFRS Accounting Standards.3 The total operating income includes credit loss expense or release.
4 In 2025, UBS decided to consolidate the Wealth Management International business, the Global Financial Intermediaries business,and other related businesses booked in Switzerland in UBS AG to further optimize
Group legal andoperational structures andto address regulatoryconsiderations. Inthe second quarterof 2025, UBSSwitzerland AG transferredthe beneficial ownershipof the WealthManagement International
business and the Global Financial Intermediaries business booked in UBS Switzerland AG to UBS AG, with effect from 1 January 2025. The transfer was made in the form of a dividend in kind amounting to USD 126m
(CHF 100m), reflecting the netasset value of thein-scope businesses. Inthe fourth quarter of2025, UBS Switzerland AGtransferred the beneficialownership of the relatedbusinesses to UBS AG,with effect from
1 May 2025. The transfer was made in the form of a dividend in kind amounting to USD 1,261 (CHF1,000), reflecting the net asset value of the in-scope businesses. UBS Switzerland AG will continueto manage the
businesses under a contractual relationship with UBS AG until the completionof legal transfer, which is expected to take place in 2028, and will continueto recognize the underlying assets and liabilities ofthe relevant
businesses until then. UBS AG’s share of the net profits of USD 695m for thefull year of 2025 is reflected in Fee and commission incomefor UBS AG and CHF 555m in Fee and commission expense for UBS Switzerland
AG, both within Operating income.5 Refer to the UBS Group and significant regulated subsidiaries and sub-groups 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors, for
more information.6 Consists of positions thatmeet the conditions laiddown in Art. 72a–b ofthe Capital Requirements RegulationII with regard tocontractual, structural orlegal subordination.7 Consists of
eligible long-term debt that meets the conditions specified in 12 CFR § 252.162 of the final total loss-absorbing capacity (TLAC) rules. TLAC is the sum of tier 1capital and eligible long-term debt.8 On a standalone
basis as of 31 December 2025, UBS AG’sphase-in CET1 capital ratio was 15.1%, based onrisk weights of 235% and 340% for Swiss and foreignparticipations, respectively. As percurrent rules, these risk weights
will increase to250% and 400%for Swiss andforeign participations,respectively, ina phased manneruntil 1 January 2028,contributing to UBSAG’s fullyapplied CET1 capitalratio of 14.2%.9 In the fourth
quarter of 2025, theliquidity coverage ratio (the LCR) ofUBS AG was 234.9%, remaining above theprudential requirement communicated by FINMA.10 In the fourth quarter of2025, the LCR ofUBS Switzerland AG,
which is a Swiss SRB, was 132.0%, remaining above the prudential requirement communicated by FINMA in connection with the Swiss Emergency Plan.11 In accordance with Art. 17h para. 3 and 4 of the Liquidity
Ordinance, UBS AG standalone is requiredto maintain a minimum NSFR of at least80% without taking into account excess funding ofUBS Switzerland AG and 100% after takinginto account such excess funding.
12 Under certaincircumstances, theSwiss BankingAct andFINMA’sBanking InsolvencyOrdinance authorizeFINMA tomodify, extinguishor convertto commonequity liabilitiesof abank inconnection witha
resolution or insolvency ofsuch bank. As of 31 December2025, the amount consists ofa joint and severalliability of UBS Switzerland AGfor contractual obligations ofUBS AG related to theestablishment of UBS
Switzerland AG (CHF 1.5bn)and a joint andseveral liability of UBSSwitzerland AG in connectionwith the international coveredbonds program of UBSAG (CHF 0.5bn), which wasfully collateralized throughcash
deposits from UBS AG.
Annual Report 2025
| Significant regulated subsidiary and sub-group information356
UBS Group AG isa holdingcompany andconducts substantiallyall ofits operationsthrough UBS AGand subsidiaries
thereof.UBS Group AGandUBS AGhavecontributedasignificantportionoftheirrespectivecapitalandprovide
substantial liquidity to such subsidiaries. Many of these subsidiaries are subject to regulations requiring compliance with
minimumcapital,liquidityandsimilarrequirements.Thetablesinthissectionsummarizetheregulatorycapital
components and capital ratios of our significant regulated subsidiaries and sub-groups determined under the regulatory
framework of the home jurisdiction of each subsidiary or sub-group.
›
Refer to “Capital and capital ratios of our significant regulated subsidiaries” in the “Capitalmanagement” section of this report
for more information
›
Refer to “Note 22 Restricted and transferred financial assets” in the “Consolidated financial statements”section of this report for
more information
Supervisoryauthoritiesgenerallyhavediscretiontoimposehigherrequirements ortootherwiselimittheactivitiesof
subsidiaries. Supervisory authoritiesalso mayrequire entities tomeasure capital andleverage ratios ona stressed basis
and may limitthe ability ofan entity toengage in newactivities or takecapital actions basedon the resultsof those tests.
In August 2025, the Federal Reserve Board reduced the stress capital buffer (the SCB) of UBS Americas Holding LLC, our
US-basedintermediateholdingcompany,to5.2%,from9.3%,applicablefrom1 October2025undertheFederal
Reserve Board’s SCB rule, resultingin a total common equity tier 1capital requirement of 9.7%. TheSCB is derived from
the results of the Federal Reserve Board’s 2025 Dodd–Frank Act Stress Test (DFAST) released in June 2025.
Additional information on theabove entities is providedin the UBS Groupand significant regulated subsidiariesand sub-
groups 31 December 2025 Pillar 3 Report, which is available under “Pillar 3 disclosures” at
ubs.com/investors
.
Financial and regulatory key figures for our significant regulated subsidiaries and sub-groups
Credit Suisse International
(standalone)
All values in million, except where indicated
USD
Financial and regulatory requirements
IFRS Accounting Standards
UK regulatory rules
As of or for the year ended
31.12.25
31.12.24
1
Financial information
2
Income statement
Total operating income
3
258
1,046
Total operating expenses
388
1,106
Operating profit / (loss) before tax
(130)
(60)
Net profit / (loss)
(200)
(87)
Balance sheet
Total assets
5,660
51,374
Total liabilities
2,621
44,035
Total equity
3,039
7,339
Capital
4
Common equity tier 1 capital
3,038
6,883
Additional tier 1 capital
0
0
Total going concern capital / Tier 1 capital
3,038
6,883
Tier 2 capital
0
0
Total capital
3,038
6,883
Total gone concern loss-absorbing capacity
0
3,043
Total loss-absorbing capacity
3,038
9,926
Risk-weighted assets and leverage ratio denominator
4
Risk-weighted assets
3,247
10,951
Leverage ratio denominator
5,679
32,521
Capital and leverage ratios (%)
4
Common equity tier 1 capital ratio
93.6
62.9
Going concern capital ratio / Tier 1 capital ratio
93.6
62.9
Total capital ratio
93.6
62.9
Total loss-absorbing capacity ratio
93.6
90.6
Tier 1 leverage ratio
53.5
21.2
Going concern leverage ratio
Total loss-absorbing capacity leverage ratio
53.5
30.5
Liquidity coverage ratio
4
High-quality liquid assets (bn)
8.1
15.0
Net cash outflows (bn)
2.4
4.3
Liquidity coverage ratio (%)
341.5
363.3
Net stable funding ratio
4
Total available stable funding (bn)
6.3
17.5
Total required stable funding (bn)
1.9
8.7
Net stable funding ratio (%)
385.0
214.8
1 Comparative informationhas been alignedwith Credit SuisseInternational standalone’sfinal 2024 auditedfinancial statements.2 The financialinformation disclosed doesnot represent afull set offinancial
statements under the respective GAAP / IFRS Accounting Standards.3 The total operating income includes credit loss expenseor release.4 Refer to the UBS Group and significant regulated subsidiaries and sub-
groups 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors,for more information.
Annual Report 2025 |
Additional regulatory information | UBS Group AG consolidated supplemental disclosures required under SEC regulations358
UBS Group AG consolidated supplemental disclosures
required under SEC regulations
A – Introduction
The followingpages containsupplemental UBSGroup AG disclosuresthat are required underUS Securitiesand Exchange
Commission (SEC)regulations.UBS GroupAG’s consolidatedfinancial statementshave beenpreparedin accordance
withIFRSAccountingStandardsasissuedbytheInternationalAccountingStandardsBoard(theIASB)andare
denominated in US dollars.
On 12 June2023, UBS GroupAG acquired Credit SuisseGroup AG, succeedingby operation of Swisslaw to allassets
and liabilitiesof CreditSuisse GroupAG, and becamethe director indirectshareholder of allof theformer direct and
indirectsubsidiariesofCreditSuisseGroupAG.TheacquisitionoftheCreditSuisseGroupconstitutesabusiness
combination underIFRS 3,
Business Combinations
, andis requiredto beaccounted forby applyingthe acquisitionmethod
of accounting.
›
Refer to “Note 28 Changes in organization and acquisitions and disposals of subsidiaries and businesses” in the“Consolidated
financial statements” section of this report for more information
B – Selected financial data
Dividends received from investments in subsidiaries
In2025,UBSGroupAGreceiveddividendsofUSD 13,349m(2024:USD 3,193m;2023:USD 6,269m)fromits
subsidiaries. Dividends disclosedare basedon IFRSAccounting Standardsand havebeen translatedto USdollars from
the functionalcurrency ofthe entitypaying thedividend, usingthe closingexchange rateof themonth inwhich the
dividend was received.
Annual Report 2025 |
Additional regulatory information | UBS Group AG consolidated supplemental disclosures required under SEC regulations359
Balance sheet data
USD m
31.12.25
31.12.24
31.12.23
Assets
Cash and balances at central banks
209,858
223,329
314,060
Amounts due from banks
19,649
18,903
21,146
Receivables from securities financing transactions at amortized cost
83,656
118,301
99,039
Cash collateral receivables on derivative instruments
41,552
43,959
50,082
Loans and advances to customers
653,846
579,967
639,669
Other financial assets measured at amortized cost
71,897
58,835
65,455
Total financial assets measured at amortized cost
1,080,458
1,043,293
1,189,451
Financial assets at fair value held for trading
174,699
159,065
169,633
of which: assets pledged as collateral that may be sold or repledged by counterparties
44,627
38,532
51,263
Derivative financial instruments
147,778
185,551
176,084
Brokerage receivables
35,579
25,858
21,037
Financial assets at fair value not held for trading
107,575
95,472
104,018
Total financial assets measured at fair value through profit or loss
465,631
465,947
470,773
Financial assets measured at fair value through other comprehensive income
13,868
2,195
2,233
Investments in associates
2,332
2,306
2,373
Property, equipment and software
16,057
15,498
17,849
Goodwill and intangible assets
6,948
6,887
7,515
Deferred tax assets
11,525
11,134
10,682
Other non-financial assets
20,609
17,766
16,049
Total assets
1,617,427
1,565,028
1,716,924
Liabilities
Amounts due to banks
24,434
23,347
70,962
Payables from securities financing transactions at amortized cost
16,225
14,833
14,394
Cash collateral payables on derivative instruments
34,222
35,490
41,582
Customer deposits
788,367
745,777
792,029
Debt issued measured at amortized cost
214,706
214,219
237,817
Other financial liabilities measured at amortized cost
15,862
21,033
20,851
Total financial liabilities measured at amortized cost
1,093,816
1,054,698
1,177,633
Financial liabilities at fair value held for trading
53,700
35,247
34,159
Derivative financial instruments
156,243
180,636
192,181
Brokerage payables designated at fair value
62,202
49,023
42,522
Debt issued designated at fair value
113,794
107,909
128,289
Other financial liabilities designated at fair value
28,184
28,699
29,484
Total financial liabilities measured at fair value through profit or loss
414,123
401,514
426,635
Provisions
5,035
8,409
12,412
Other non-financial liabilities
13,970
14,834
14,089
Total liabilities
1,526,944
1,479,454
1,630,769
Equity attributable to shareholders
90,213
85,079
85,624
Equity attributable to non-controlling interests
271
494
531
Total equity
90,484
85,574
86,156
Total liabilities and equity
1,617,427
1,565,028
1,716,924
C – Information about the company
Property, plant and equipment
As of 31December 2025,UBS operated inabout 723 businessand banking locationsworldwide, of whichapproximately
36% were in Switzerland, 43%in the Americas, 11%in the rest of Europe,the Middle East andAfrica, and 10% inAsia
Pacific. Ofthe businessand bankinglocations inSwitzerland, 23%were owneddirectly byUBS, withthe remainder,
along with most of UBS’soffices outside Switzerland, being held undercommercial leases. These premises are subject to
continuous maintenanceand upgradingand areconsidered suitableand adequatefor currentand anticipatedoperations.
Annual Report 2025 |
Additional regulatory information | UBS Group AG consolidated supplemental disclosures required under SEC regulations360
D – Information required by Subpart 1400 of Regulation S-K
Selected statistical information
The tables belowset forth selectedstatistical information regardingthe Group’sbanking operations extractedfrom its
financial statements.Unless otherwise indicated,average balances forthe years ended31 December 2025, 31 December
2024and 31 December2023 arecalculated frommonthly data.Unlessotherwise indicated,thedistinction between
domestic (i.e. Swiss) and foreign (i.e. non-Swiss) is generally based on the booking location.
Average balances and interest rates
The tables below set forthaverage interest-earning assets andaverage interest-bearing liabilities, along withthe average
yield, for 2025, 2024 and 2023.Refer to “Note 3 Net interestincome and other net income fromfinancial instruments
measured at fair value through profit or loss” in the “Consolidated financial statements” section of this report for more
information about interest income and interest expense.
Average balances and interest rates
For the year ended
31.12.25
31.12.24
31.12.23
USD m, except where indicated
Average
balance
Interest
income
Average
yield (%)
Average
balance
Interest
income
Average
yield (%)
Average
balance
Interest
income
Average
yield (%)
Assets
Balances at central banks
Domestic
118,807
152
0.1
135,771
1,743
1.3
113,953
1,777
1.6
Foreign
103,000
3,453
3.4
117,409
5,356
4.6
100,608
4,297
4.3
Amounts due from banks
Domestic
4,771
61
1.3
4,023
89
2.2
3,592
68
1.9
Foreign
15,478
97
0.6
16,655
763
4.6
14,993
619
4.1
Receivables from securities financing transactions measured
at amortized cost
1
Domestic
4,060
83
2.1
14,535
340
2.3
10,978
344
3.1
Foreign
116,036
3,039
2.6
97,641
3,529
3.6
81,085
3,339
4.1
Loans and advances to customers
Domestic
452,548
10,386
2.3
438,152
13,003
3.0
345,812
10,422
3.0
Foreign
171,053
8,425
4.9
169,485
9,205
5.4
173,161
8,974
5.2
Financial assets at fair value
1,2
Domestic
25,130
656
2.6
18,304
552
3.0
7,352
210
2.9
Foreign
224,869
7,865
3.5
241,780
10,410
4.3
214,671
9,672
4.5
Other interest-earning assets
Domestic
19,165
622
3.2
15,081
477
3.2
12,574
357
2.8
Foreign
82,234
2,495
3.0
82,050
2,933
3.6
81,284
2,730
3.4
Total interest-earning assets
3
1,337,151
37,337
2.8
1,350,886
48,399
3.6
1,160,061
42,809
3.7
Net interest income on swaps
5,646
5,643
2,672
Interest income on off-balance sheet securities and other
953
695
744
Interest income and average interest-earning assets
1,337,151
43,937
4
3.3
1,350,886
54,737
4
4.1
1,160,061
46,224
4
4.0
Non-interest-earning assets
5
376,348
359,904
333,210
Total average assets
1,713,500
1,710,790
1,493,271
1 Reverse repurchase agreements are presented on a gross basis and therefore, for the purpose of this disclosure, do not reflect the effect of netting permitted under IFRS AccountingStandards.2 Includes financial
assets at fairvalue held fortrading, financial assetsat fair valuenot held fortrading, financial assetsat fair valuethrough other comprehensiveincome and brokeragereceivables.3 Non-taxable positionsand
amounts were not material for the years presented.4 For the purpose of this disclosure, negative interest income on assets is presented as a reduction to interest income, while in the consolidated income statement
negative interestincome onassets ispresented asinterest expense.Refer to“Note 3Net interestincome andother netincome fromfinancial instrumentsmeasured atfair valuethrough profitor loss“in the
“Consolidated financial statements” section of this report for more information.5 Mainly includes derivative financial instruments, equity instruments at fair value held for trading and financial assets for unit-linked
investment contracts.
Annual Report 2025 |
Additional regulatory information | UBS Group AG consolidated supplemental disclosures required under SEC regulations361
Average balances and interest rates (continued)
Average balances and interest rates (continued)
For the year ended
31.12.25
31.12.24
31.12.23
USD m, except where indicated
Average
balance
Interest
expense
Average
interest
rate (%)
Average
balance
Interest
expense
Average
interest
rate (%)
Average
balance
Interest
expense
Average
interest
rate (%)
Liabilities and equity
Amounts due to banks
Domestic
19,723
207
1.0
33,767
746
2.2
42,049
1,385
3.3
Foreign
7,586
215
2.8
6,598
205
3.1
5,386
137
2.5
Payables from securities financing transactions measured at
amortized cost
1
Domestic
11,264
303
2.7
11,659
537
4.6
7,874
382
4.9
Foreign
23,111
1,028
4.4
15,538
893
5.7
17,065
890
5.2
Customer deposits
Domestic
435,426
2,103
0.5
418,253
3,905
0.9
350,102
2,401
0.7
of which: demand deposits
199,915
537
0.3
176,258
918
0.5
161,596
754
0.5
of which: savings and sweep deposits
172,010
139
0.1
151,716
496
0.3
140,716
328
0.2
of which: time deposits
63,500
1,427
2.2
90,278
2,492
2.8
47,790
1,321
2.8
Foreign
334,023
10,252
3.1
343,613
13,289
3.9
283,952
9,656
3.4
of which: demand deposits
44,797
569
1.3
44,047
781
1.8
44,435
736
1.7
of which: savings and sweep deposits
74,750
1,918
2.6
68,043
1,867
2.7
75,871
2,187
2.9
of which: time deposits
214,475
7,766
3.6
231,524
10,641
4.6
163,647
6,733
4.1
Commercial paper
Domestic
0
0
0.0
0
0
0.0
1
0
0.0
Foreign
11,467
491
4.3
18,373
985
5.4
22,108
1,159
5.2
Other short-term debt issued measured at amortized cost
Domestic
382
8
2.0
297
2
0.6
322
4
1.3
Foreign
20,354
768
3.8
15,421
762
4.9
12,023
610
5.1
Long-term debt issued measured at amortized cost
Domestic
156,518
6,020
3.8
155,359
6,161
4.0
112,466
4,125
3.7
Foreign
28,504
1,003
3.5
37,583
1,919
5.1
32,387
1,900
5.9
Financial liabilities at fair value (excluding debt issued
designated at fair value)
1,2
Domestic
596
4
0.6
727
5
0.7
419
13
3.1
Foreign
175,473
5,301
3.0
165,234
6,435
3.9
157,558
5,760
3.7
Debt issued designated at fair value
Domestic
12,986
399
3.1
10,974
390
3.6
10,513
391
3.7
Foreign
99,263
4,054
4.1
103,243
4,879
4.7
93,902
4,566
4.9
Other interest-bearing liabilities
Domestic
3,975
122
3.1
3,636
117
3.2
2,832
90
3.2
Foreign
33,411
1,085
3.2
37,232
1,649
4.4
39,197
1,618
4.1
Total interest-bearing liabilities
1,374,058
33,362
2.4
1,377,505
42,879
3.1
1,190,157
35,088
2.9
Swap interest on hedged debt issued and other swaps
2,086
4,121
3,132
Interest expense on off-balance sheet securities and other
742
629
707
Interest expense and average interest-bearing liabilities
1,374,058
36,190
3
2.6
1,377,505
47,629
3
3.5
1,190,157
38,927
3
3.3
Non-interest-bearing liabilities
4
250,835
247,819
230,664
Total liabilities
1,624,893
1,625,324
1,420,822
Total equity
88,607
85,466
72,450
Total average liabilities and equity
1,713,500
1,710,790
1,493,271
Net interest income
7,747
7,108
7,297
Net yield on interest-earning assets
0.6
0.5
0.6
1 Repurchase agreements are presented on a gross basis and therefore, for the purposeof this disclosure, do not reflect the effect of netting permitted under IFRS AccountingStandards.2 Includes financial liabilities
at fair value held for trading, other financial liabilities designated at fair value andbrokerage payables designated at fair value.3 For the purpose of this disclosure, negative interest expense on liabilities is presented
as a reduction to interest expense, while in theconsolidated income statement negative interest income on liabilities ispresented as interest income. Refer to “Note 3Net interest income and other net income from
financial instruments measured at fair valuethrough profit or loss“ in the “Consolidatedfinancial statements” section of this reportfor more information.4 Mainly includes derivative financial instruments,equity
instruments at fair value held for trading and financial liabilities related to unit-linkedinvestment contracts.
The percentage of total average interest-earning assets attributable to foreign activities was 53% for 2025 (2024: 54%;
2023: 57%).The percentageof totalaverage interest-bearingliabilities attributableto foreignactivities was53% for
2025 (2024:54%; 2023:56%). Allassets andliabilities aretranslated intoUS dollarsat uniformmonth-end rates.Interest
income and expense are translated at monthly average rates.
Average rates earned andpaid on assets andliabilities can change fromperiod to period, basedon changes in interest
rates ingeneral, butare alsoaffected bychanges inthe currencymix includedin theassets andliabilities. Tax-exempt
income is not recorded ona tax-equivalent basis. Forall three years presentedthe tax-exempt income isconsidered to be
insignificant, and the effect from such income is therefore negligible.
Annual Report 2025 |
Additional regulatory information | UBS Group AG consolidated supplemental disclosures required under SEC regulations362
Analysis of changes in interest income and expense
The tables below provideinformation, by categories ofinterest-earning assets and interest-bearingliabilities, about the
changes in interestincome and expensedue to changesin volume andinterest ratesfor the yearended 31 December
2025 compared with the yearended 31 December 2024, and forthe year ended 31 December2024 compared with the
year ended31 December 2023.The changein averagevolume representsthe changein thecurrent averagebalance
compared with the average balance from the prior year withrespect to the average rate of the prior year. The change in
average raterepresents the differencebetween thenet changein interestincome andexpense andthe changein average
volume.
Analysis of changes in interest income and expense
2025 compared with 2024
2024 compared with 2023
Increase / (decrease)
due to changes in
1
Increase / (decrease)
due to changes in
1
USD m
Average
volume
Average
interest rate
Net
change
Average
volume
Average
interest rate
Net
change
Interest income from interest-earning assets
Balances at central banks
Domestic
(221)
(1,369)
(1,590)
349
(383)
(34)
Foreign
(663)
(1,240)
(1,903)
722
336
1,058
Amounts due from banks
Domestic
16
(43)
(27)
8
13
21
Foreign
(54)
(611)
(665)
68
76
144
Receivables from securities financing transactions measured at amortized cost
Domestic
(241)
(15)
(256)
110
(114)
(4)
Foreign
662
(1,152)
(490)
679
(489)
190
Loans and advances to customers
Domestic
432
(3,049)
(2,617)
2,770
(189)
2,581
Foreign
85
(864)
(779)
(191)
422
231
Financial assets at fair value
Domestic
205
(102)
103
318
24
342
Foreign
(727)
(1,817)
(2,544)
1,220
(482)
738
Other interest-earning assets
Domestic
129
16
145
71
49
120
Foreign
7
(445)
(438)
26
177
203
Interest income
Domestic
320
(4,562)
(4,242)
3,626
(600)
3,026
Foreign
(690)
(6,130)
(6,820)
2,524
40
2,564
Total interest income from interest-earning assets
(370)
(10,692)
(11,062)
6,150
(560)
5,590
Net interest income on swaps
4
2,971
Interest income on off-balance sheet securities and other
258
(49)
Total interest income
(10,800)
8,512
1 Currency effects are included within the variances disclosed in this table.
Annual Report 2025 |
Additional regulatory information | UBS Group AG consolidated supplemental disclosures required under SEC regulations363
Analysis of changes in interest income and expense (continued)
Analysis of changes in interest income and expense (continued)
2025 compared with 2024
2024 compared with 2023
Increase / (decrease)
due to changes in
1
Increase / (decrease)
due to changes in
1
USD m
Average
volume
Average
interest rate
Net
change
Average
volume
Average
interest rate
Net
change
Interest expense on interest-bearing liabilities
Amounts due to banks
Domestic
(310)
(229)
(539)
(273)
(367)
(640)
Foreign
31
(21)
10
31
37
68
Payables from securities financing transactions measured at amortized cost
Domestic
(18)
(216)
(234)
184
(29)
155
Foreign
435
(300)
135
(80)
83
3
Customer deposits
Domestic
(550)
(1,253)
(1,803)
1,268
235
1,503
of which: demand deposits
123
(504)
(381)
68
96
164
of which: savings and sweep deposits
66
(423)
(357)
26
142
168
of which: time deposits
(739)
(326)
(1,065)
1,174
(3)
1,171
Foreign
(587)
(2,449)
(3,036)
2,561
1,072
3,633
of which: demand deposits
13
(225)
(212)
(6)
51
45
of which: savings and sweep deposits
184
(134)
50
(226)
(93)
(319)
of which: time deposits
(784)
(2,090)
(2,874)
2,793
1,114
3,907
Commercial paper
Domestic
0
0
0
0
0
0
Foreign
(370)
(124)
(494)
(196)
23
(173)
Other short-term debt issued measured at amortized cost
Domestic
1
5
6
0
(2)
(2)
Foreign
244
(238)
6
172
(20)
152
Long-term debt issued measured at amortized cost
Domestic
46
(187)
(141)
1,573
463
2,036
Foreign
(464)
(452)
(916)
305
(285)
20
Financial liabilities at fair value (excluding debt issued designated at fair value)
Domestic
(1)
0
(1)
9
(17)
(8)
Foreign
399
(1,533)
(1,134)
281
394
675
Debt issued designated at fair value
Domestic
72
(63)
9
17
(18)
(1)
Foreign
(188)
(637)
(825)
454
(142)
312
Other interest-bearing liabilities
Domestic
11
(6)
5
26
0
26
Foreign
(169)
(395)
(564)
(81)
111
30
Interest expense
Domestic
(749)
(1,949)
(2,698)
2,804
265
3,069
Foreign
(669)
(6,150)
(6,819)
3,447
1,273
4,720
Total interest expense on interest-bearing liabilities
(1,418)
(8,099)
(9,517)
6,251
1,538
7,789
Swap interest on hedged debt issued and other swaps
(2,036)
989
Interest expense on off-balance sheet securities and other
113
(78)
Total interest expense
(11,439)
8,700
1 Currency effects are included within the variances disclosed in this table.
Annual Report 2025 |
Additional regulatory information | UBS Group AG consolidated supplemental disclosures required under SEC regulations364
Deposits
The table below analyzesaverage deposits and averagerates on each depositcategory for the yearsended 31 December
2025, 31 December 2024and 31 December 2023.For the purposeof this disclosure,foreign deposits represent deposits
fromdepositorswhoarebasedoutsideofSwitzerland.Depositsbyforeigndepositorsindomesticofficeswere
USD 85,025m as of 31 December 2025 (31 December 2024: USD 87,345m; 31 December 2023: USD 92,784m).
Deposits
31.12.25
31.12.24
31.12.23
USD m, except where indicated
Average
deposits
Average
rate (%)
Average
deposits
Average
rate (%)
Average
deposits
Average
rate (%)
Due to banks
Domestic
Demand deposits
1,702
(0.2)
1,931
0.0
1,355
0.0
Time deposits
1,259
1.2
16,920
2.7
29,827
4.0
Total domestic
2,961
0.4
18,851
2.4
31,183
3.8
Foreign
Demand deposits
12,701
0.5
11,755
1.4
9,331
1.1
Time deposits
11,647
3.0
9,759
3.5
6,922
3.3
Total foreign
24,347
1.7
21,514
2.3
16,253
2.0
Total due to banks
1
27,308
1.5
40,365
2.4
47,435
3.2
Customer deposits
Domestic
Demand deposits
159,158
0.3
137,309
0.7
119,782
0.6
Savings and sweep deposits
158,523
0.1
139,790
0.3
127,017
0.2
Time deposits
55,691
2.0
114,608
3.4
45,708
2.6
Total domestic
373,372
0.5
391,707
1.4
292,508
0.8
Foreign
Demand deposits
85,555
0.7
82,996
0.9
86,249
0.8
Savings and sweep deposits
88,238
2.2
79,971
2.4
89,569
2.5
Time deposits
222,284
3.6
207,193
4.4
165,728
4.1
Total foreign
396,076
2.7
370,160
3.2
341,546
2.9
Total customer deposits
1
769,448
1.6
761,867
2.3
634,054
1.9
1 For thepurpose of thistable, the distinctionbetween foreign anddomestic deposits isbased on thedomicile of thedepositor,while foreign anddomestic deposits disclosedin previous tablesare based onthe
booking location.
Uninsured deposits
From thecombined total ofDue tobanks andCustomer deposits asof 31 December2025, total estimateduninsured
deposits wereUSD 609bn (31 December2024: USD 559bn;31 December 2023:USD 670bn). Uninsureddeposits are
depositsthatareinexcessoflocaldepositinsuranceorprotectionschemelimitsinthekeylocationsinwhichUBS
operates, calculatedbased onthe respectivelocal regulations,as wellas depositsin uninsuredaccounts. Themain deposit
insurance schemes applicable to UBS deposits are the Swiss depositor protectionscheme in Switzerland (which protects
applicable depositsuptoa maximumof CHF 100,000perclientand perbankor securitiesfirm), theCompensation
SchemeofGermanBanksincombinationwiththeDepositProtectionFundoftheAssociationofGermanBanksin
Germany (which protects applicabledeposits up to amaximum of EUR 3m per clientand EUR 30m per business)and the
Federal DepositInsurance Corporation(the FDIC)scheme inthe Americas(which protectsapplicable depositsup toa
maximum of USD 250,000 per depositor, per insured bank, for each account ownership category).
The table below presentsthe maturity of estimateduninsured time depositsas of 31 December 2025.Where a depositor
holds multiple accounts that in aggregate are in excess ofa deposit insurance or protection limit, the insured amount is
first allocated to the account with the shortest time to maturity.
Uninsured deposits
USD m
Uninsured time deposits
1
Within 3 months
196,877
3 to 6 months
18,894
6 to 12 months
15,282
Over 12 months
10,055
Total uninsured time deposits as of 31 December 2025
241,108
1 Amounts are estimated based on the methodologies defined in each local jurisdiction. As of 31 December 2025,there were no US time deposits subject to the FDIC scheme that were in excess ofthe FDIC insurance
limit.
Annual Report 2025 |
Additional regulatory information | UBS Group AG consolidated supplemental disclosures required under SEC regulations365
Investments in debt instruments
The table belowpresents the carryingamount and weightedaverage yield ofdebt instrumentspresented within Financial
assets measuredat fairvalue throughother comprehensiveincome andOther financialassets measuredat amortized
cost on the balance sheet by contractual maturity bucket. The yield for each range of maturities is calculated by dividing
the annualized interest income bythe average balance of the investmentper contractual maturity bucket. The maturity
information presented does not consider any early redemption features.
Investments in debt instruments
Within 1 year
1 to 5 years
5 to 10 years
Over 10 years
USD m, except where indicated
Carrying
amount
Yield (%)
Carrying
amount
Yield (%)
Carrying
amount
Yield (%)
Carrying
amount
Yield (%)
Total carrying
amount
Debt instruments measured at fair value through
other comprehensive income
Government bills / bonds
484
3.53
11,175
2.25
11,659
Corporate and other
2,145
4.59
64
1.76
2,208
Subtotal as of 31 December 2025
2,145
548
11,175
13,868
Debt securities measured at amortized cost
Asset-backed securities
260
1.12
1,447
2.58
8,494
3.78
10,202
Government bills / bonds
2,899
2.74
9,665
2.49
4,524
3.62
3,561
3.90
20,648
Corporate and other
3,290
2.30
16,390
2.59
2,684
2.63
22,364
Subtotal as of 31 December 2025
6,189
26,315
8,655
12,055
53,214
Total as of 31 December 2025
8,334
26,863
19,830
12,055
67,081
Loan portfolio
Thetablebelow providesthematurityprofileofUBS’s coreloanportfolio asof31 December 2025.Thecontractual
maturityisbasedoncarryingamountsandincludestheeffectofcallablefeatures.Forloansdueafteroneyear,a
breakdown between fixed and adjustable or floating interest rates is also provided.
Loan portfolio
USD m
31.12.25
Within 1 year
1 to 5 years
5 to 15 years
Over 15 years
Total
of which: over 1 year
Fixed rate
Adjustable or
floating rate
Private clients with mortgages
43,262
158,021
54,944
31,197
287,424
160,406
83,756
Real estate financing
37,544
41,036
13,490
264
92,334
42,037
12,753
Large corporate clients
8,390
16,632
1,688
43
26,752
6,235
12,127
SME clients
13,066
8,220
2,494
25
23,805
7,764
2,974
Lombard
154,178
10,498
601
43
165,320
9,619
1,523
Credit cards
2,408
0
0
0
2,408
0
0
Commodity trade finance
4,778
71
0
0
4,849
70
1
Ship / aircraft financing
1,106
5,611
2,036
0
8,753
0
7,647
Consumer financing
253
1,477
1,235
0
2,966
2,713
0
Other loans and advances to customers
17,930
18,458
2,786
61
39,235
5,340
15,965
Loans to financial advisors
112
326
2,211
67
2,716
2,604
0
Total
283,029
260,349
81,485
31,699
656,562
236,786
136,747
Allowance for credit losses
For theyears ended31 December 2025,31 December 2024and 31 December2023, theratio ofnet charge-offs(i.e.
write-offsofexpectedcreditlossallowancestogrosscarryingamountoftheaverageloansoutstanding)duringthe
period was not material for UBS’s core loan portfolio, bothon an overall basis and on an individual loan category basis.
Total write-offs for 31 December2025 wereUSD 374m (31 December2024: USD 348m;31 December 2023:USD 93m).
Refer to the coverage ratio tables in “Note 9 Financial assets at amortized cost and other positions in scope of expected
credit loss measurement”in the“Consolidated financialstatements” sectionof thisreport for theratio ofexpected credit
loss allowances to total loans outstanding at the end of each period.
Annual Report 2025 |
Appendix366
Appendix
Alternative performance measures
An alternativeperformance measure(an APM)is afinancial measureof historicalor futurefinancial performance,financial
positionorcashflowsotherthanafinancialmeasuredefinedorspecifiedintheapplicablerecognizedaccounting
standardsorinotherapplicableregulations.AnumberofAPMsarereportedinthediscussionofthefinancialand
operating performance ofthe externalreports (annual, quarterlyand otherreports). APMs areused to providea more
complete picture ofoperating performance andto reflect management’sview of thefundamental drivers ofthe business
results. Thetable belowindicates wherean APMalso qualifiesas non-GAAPmeasure asdefined byUS Securitiesand
Exchange Commission (SEC) regulations. Adefinition of each APM,and non-GAAP measure asapplicable, the method
used to calculate it and the information content are presented in alphabetical order in the table below.
APM / non-GAAP label
Calculation
Information content / usefulness
Cost / income ratio (%)
Calculated as operating expenses divided by total
revenues.
This measure provides information about the
efficiency of the business by comparing operating
expenses with total revenues.
Cost / income ratio (underlying) (%)
(non-GAAP measure)
Calculated as underlying operating expenses (as
defined above) divided by underlying total revenues
(as defined above).
This measure provides information about the
efficiency of the business by comparing operating
expenses with total revenues, while excluding items
that management believes are not representative of
the underlying performance of the businesses.
Cost of credit risk (bps)
Calculated as total credit loss expense / (release)
(annualized for reporting periods shorter than
12 months) divided by the average balance of lending
assets for the reporting period, expressed in basis
points. Lending assets include the gross amounts of
Amounts due from banks and Loans and advances to
customers.
This measure provides information about the total
credit loss expense / (release) incurred in relation to
the average balance of gross lending assets for the
period.
Credit-impaired lending assets as a
percentage of total lending assets,
gross (%)
Calculated as credit-impaired lending assets divided
by total lending assets. Lending assets includes the
gross amounts of Amounts due from banks and
Loans and advances to customers. Credit-impaired
lending assets refers to the sum of stage 3 and
purchased credit-impaired positions.
This measure provides information about the
proportion of credit-impaired lending assets in the
overall portfolio of gross lending assets.
Credit-impaired loan portfolio as a
percentage of total loan portfolio,
gross (%)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as credit-impaired loan portfolio divided by
total gross loan portfolio.
This measure provides information about the
proportion of the credit-impaired loan portfolio in the
total gross loan portfolio.
Customer deposit volumes (USD)
– Global Wealth Management
(non-GAAP measure)
Calculated as the sum of customer deposits and
brokerage payables.
This measure provides information about the volume
of customer deposits in Global Wealth Management.
Fee-generating assets (USD)
– Global Wealth Management
Calculated as the sum of discretionary and non-
discretionary wealth management portfolios
(mandate volume) and assets where generated
revenues are predominantly of a recurring nature, i.e.
mainly investment, mutual, hedge and private-market
funds where we have a distribution agreement,
including client commitments into closed-ended
private-market funds from the date that recurring
fees are charged. Assets related to our Global
Financial Intermediaries business are excluded, as are
assets of sanctioned clients.
This measure provides information about the volume
of invested assets that create a revenue stream,
whether as a result of the nature of the contractual
relationship with clients or through the fee structure
of the asset. An increase in the level of fee-generating
assets results in an increase in the associated revenue
stream. Assets of sanctioned clients are excluded from
fee-generating assets.
Gross margin on invested assets (bps)
– Asset Management
Calculated as total revenues (annualized for reporting
periods shorter than 12 months) divided by average
invested assets.
This measure provides information about the total
revenues of the business in relation to invested assets.
Annual Report 2025 |
Appendix367
APM / non-GAAP label
Calculation
Information content / usefulness
Integration-related expenses (USD)
(non-GAAP measure)
Generally include costs of internal staff and
contractors substantially dedicated to integration
activities, retention awards, redundancy costs,
incremental expenses from the shortening of useful
lives of property, equipmentand software, and
impairment charges relating to these assets.
Classification as integration-related expenses does not
affect the timing of recognition and measurement of
those expenses or the presentation thereof in the
income statement. Integration-related expenses
incurred by Credit Suisse also included expenses
associated with restructuring programs that existed
prior to the acquisition.
This measure provides information about expenses
that are temporary, incrementaland directly related to
the integration of Credit Suisse into UBS.
Invested assets (USD and CHF)
Calculated as the sum of managed fund assets,
managed institutional assets, discretionary and
advisory wealth management portfolios, fiduciary
deposits, time deposits, savings accounts, and wealth
management securities or brokerage accounts.
This measure provides information about the volume
of client assets managed by or deposited with UBS for
investment purposes.
Loan volumes (USD)
– Global Wealth Management
(non-GAAP measure)
Calculated as loans and advances to customers and
brokerage receivables, gross of expected credit losses.
This measure provides information about the loan
volumes in Global Wealth Management.
Net interest income (underlying) (USD)
– Global Wealth Management,
Personal & Corporate Banking
(non-GAAP measure)
Calculated by adjusting net interest income as
reported in accordance with IFRS Accounting
Standards for items that management believes are
not representative of the underlying performance of
the businesses.
This measure provides information about the amount
of net interest income, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Net interest margin (bps)
– Personal & Corporate Banking
Calculated as net interest income (annualized for
reporting periods shorter than 12 months) divided by
average loans.
This measure provides information about the
profitability of the business by calculating the
difference between the interest charged for lending
and the associated cost of funding, relative to loan
value.
Net management fees (USD)
– Asset Management
(non-GAAP measure)
Calculated as the total of transaction fees, fund
administration revenues (including net interest and
trading income from lending activities and foreign-
exchange hedging as part of the fund services
offering), distribution fees, incremental fund-related
expenses, gains or losses from seed money and co-
investments, funding costs, the negative pass-through
impact of third-party performance fees, and other
items that are not Asset Management’s performance
fees.
This measure provides information about the amount
of net management fees earned through managing
client assets.
Net new assets (USD)
– Global Wealth Management
Calculated as the net amount of inflows and outflows
of invested assets (as defined in UBS policy) recorded
during a specific period, plus interest and dividends.
Excluded from the calculation are movements due to
market performance, foreign exchange translation,
fees, and the effects on invested assets of strategic
decisions by UBS to exit markets or cease offering
services in a particular location, or those resulting
from new externally imposed regulations.
This measure provides information about the
development of invested assets during a specific
period as a result of net new asset flows, plus the
effect of interest and dividends.
Net new assets growth rate (%)
– Global Wealth Management
Calculated as the net amount of inflows and outflows
of invested assets (as defined in UBS policy) recorded
during a specific period (annualized for reporting
periods shorter than 12 months), plus interest and
dividends, divided by total invested assets at the
beginning of the period.
This measure provides information about the growth
of invested assets during a specific period as a result
of net new asset flows.
Net new deposit volumes (USD)
– Global Wealth Management
(non-GAAP measure)
Calculated as the net amount of inflows and outflows
of deposit volumes recorded during a specific period.
Deposits include customer deposits and customer
brokerage payables. Excluded from the calculation are
movements due to fair value measurement, foreign
exchange translation, accrued interest and fees, as
well as the effects on customer deposits of strategic
decisions by UBS to exit markets or cease offering
services in a particular location, or those resulting
from new externally imposed regulations.
This measure provides information about the
development of deposits during a specific period as a
result of net new deposit flows.
Net new fee-generating assets (USD)
– Global Wealth Management
Calculated as the net amount of fee-generating asset
inflows and outflows, including dividend and interest
inflows into mandates and outflows from mandate
fees paid by clients during a specific period. Excluded
from the calculation are the effects on fee-generating
assets of strategic decisions by UBS to exit markets or
cease offering services in a particular location, or
those resulting from new externally imposed
regulations.
This measure provides information about the
development of fee-generating assets during a
specific period as a result of net flows, excluding
movements due to market performance and foreign
exchange translation, as well as the effects on fee-
generating assets of strategic decisions by UBS to exit
markets or cease offering services in a particular
location, or those resulting from new externally
imposed regulations.
Annual Report 2025 |
Appendix368
APM / non-GAAP label
Calculation
Information content / usefulness
Net new loan volumes (USD)
– Global Wealth Management
(non-GAAP measure)
Calculated as the net amount of originations,
drawdowns and repayments of loan volumes
recorded during a specific period. Loan volumes
include loans and advances to customers and
customer brokerage receivables. Excluded from the
calculation are allowances, movements due to fair
value measurement and foreign exchange translation,
as well as the effects on loans and advances to
customers of strategic decisions by UBS to exit
markets or cease offering services in a particular
location, or those resulting from new externally
imposed regulations.
This measure provides information about the
development of loan volumes during a specific period
as a result of net new loan volumes.
Net new money (USD)
– Global Wealth Management,
Asset Management
Calculated as the net amount of inflows and outflows
of invested assets (as defined in UBS policy) recorded
during a specific period. Excluded from the calculation
are movements due to market performance, foreign
exchange translation, dividends, interest and fees, as
well as the effects on invested assets of strategic
decisions by UBS to exit markets or cease offering
services in a particular location, or those resulting
from new externally imposed regulations.Net new
money is not measured for Personal & Corporate
Banking.
This measure provides information about the
development of invested assets during a specific
period as a result of net new money flows.
Net profit growth (%)
Calculated as the change in net profit attributable to
shareholders from continuing operations between
current and comparison periods divided by net profit
attributable to shareholders from continuing
operations of the comparison period.
This measure provides information about profit
growth since the comparison period.
Operating expenses (underlying) (USD)
(non-GAAP measure)
Calculated by adjusting operating expenses as
reported in accordance with IFRS Accounting
Standards for items that management believes are
not representative of the underlying performance of
the businesses.
This measure provides information about the amount
of operating expenses, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Operating profit / (loss) before tax
(underlying) (USD)
(non-GAAP measure)
Calculated by adjusting operating profit / (loss) before
tax as reported in accordance with IFRS Accounting
Standards for items that management believes are
not representative of the underlying performance of
the businesses.
This measure provides information about the amount
of operating profit / (loss) before tax, while excluding
items that management believes are not
representative of the underlying performance of the
businesses.
Other revenues (USD and CHF)
– Global Wealth Management,
Personal & Corporate banking
(non-GAAP measure)
Calculated by including other income as reported in
accordance with IFRS Accounting Standards, profit or
loss related to non-client derivative instruments and
profit or loss related to equity investments measured
at fair value through profit or loss.
This measure provides information about residual
business division revenues, after deduction of net
interest income, recurring net fee income and
transaction-based income.
Other revenues (underlying)
(USD and CHF)
– Global Wealth Management,
Personal & Corporate banking
(non-GAAP measure)
Calculated by adjusting other revenues for items that
management believes are not representative of the
underlying performance of the businesses.
This measure provides information about the amount
of other revenues, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Pre-tax profit growth (%)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management,
the Investment Bank
Calculated as the change in net profit before tax
attributable to shareholders from continuing
operations between current and comparison periods
divided by net profit before tax attributable to
shareholders from continuing operations of the
comparison period.
This measure provides information about pre-tax
profit growth since the comparison period.
Pre-tax profit growth (underlying) (%)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management,
the Investment Bank
(non-GAAP measure)
Calculated as the change in underlying net profit
before tax attributable to shareholders from
continuing operations between current and
comparison periods divided by underlying net profit
before tax attributable to shareholders from
continuing operations of the comparison period.
Underlying net profit before tax attributable to
shareholders from continuing operations excludes
items that management believes are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about pre-tax
profit growth since the comparison period, while
excluding items that management believes are not
representative of the underlying performance of the
businesses.
Recurring net fee income
(USD and CHF)
– Personal & Corporate Banking
(non-GAAP measure)
Calculated as the total of fees for services provided on
an ongoing basis, such as portfolio management fees,
asset-based investment fund fees and custody fees,
which are generated on client assets, and
administrative fees for accounts.
This measure provides information about the amount
of recurring net fee income.
Return onattributedequity (%)
– Global WealthManagement,
Personal &Corporate Banking,
Asset Management,
the InvestmentBank
Calculated as business division operating profit before
tax (annualized for reporting periods shorter than
12 months) divided by average attributed equity.
This measure provides information about the
profitability of the business divisions in relation to
attributed equity.
Annual Report 2025 |
Appendix369
APM / non-GAAP label
Calculation
Information content / usefulness
Return on attributed equity
(underlying) (%)
(non-GAAP measure)
Calculated as underlying business division operating
profit before tax (annualized for reporting periods
shorter than 12 months) (as defined above) divided by
average attributed equity.
This measure provides information about the
profitability of the business divisions in relation to
attributed equity, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Return oncommon equitytier 1 capital
(%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average common equity tier 1
capital.
This measure provides information about the
profitability of the business in relation to common
equity tier 1 capital.
Return on common equity tier 1 capital
(underlying) (%)
(non-GAAP measure)
Calculated as underlying net profit attributable to
shareholders (annualized for reporting periods shorter
than 12 months) divided by average common equity
tier 1 capital. Underlying net profit attributable to
shareholders excludes items that management
believes are not representative of the underlying
performance of the businesses and also excludes
related tax impact.
This measure provides information about the
profitability of the business in relation to common
equity tier 1 capital, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Return on equity (%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average equity attributable to
shareholders.
This measure provides information about the
profitability of the business in relation to equity.
Return on tangible equity (%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average equity attributable to
shareholders less average goodwill and intangible
assets.
This measure provides information about the
profitability of the business in relation to tangible
equity.
Return on tangible equity (underlying)
(%)
(non-GAAP measure)
Calculated as underlying net profit attributable to
shareholders (annualized for reporting periods shorter
than 12 months) divided by average equity
attributable to shareholders less average goodwill and
intangible assets. Underlying net profit attributable to
shareholders excludes items that management
believes are not representative of the underlying
performance of the businesses and also excludes
related tax impact.
This measure provides information about the
profitability of the business in relation to tangible
equity, while excluding items that management
believes are not representative of the underlying
performance of the businesses.
Revenues over leverage ratio
denominator, gross (%)
Calculated as total revenues (annualized for reporting
periods shorter than 12 months) divided by the
average leverage ratio denominator.
This measure provides information about the revenues
of the business in relation to the leverage ratio
denominator.
Tangible book value per share(USD)
Calculated as equity attributable to shareholders less
goodwill and intangible assets divided by the number
of shares outstanding.
This measure provides information about tangible net
assets on a per-share basis.
Total book value per share (USD)
Calculated as equity attributable to shareholders
divided by the number of shares outstanding.
This measure provides information about net assets
on a per-share basis.
Total revenues (underlying) (USD)
(non-GAAP measure)
Calculated by adjusting total revenues as reported in
accordance with IFRS Accounting Standards for items
that management believes are not representative of
the underlying performance of the businesses.
This measure provides information about the amount
of total revenues, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Transaction-based income
(USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking
(non-GAAP measure)
Calculated as the total of the non-recurring portion of
net fee and commission income, mainly composed of
brokerage and transaction-based investment fund
fees, and credit card fees, as well as fees for payment
and foreign-exchange transactions, together with
other net income from financial instruments
measured at fair value through profit or loss.
This measure provides information about the amount
of the non-recurring portion of net fee and
commission income, together with other net income
from financial instruments measured at fair value
through profit or loss.
Transaction-based income (underlying)
(USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking
(non-GAAP measure)
Calculated by adjusting transaction-based income for
items that management believes are not
representative of the underlying performance of the
businesses.
This measure provides information about the amount
of transaction-based income, while excluding items
that management believes are not representative of
the underlying performance of the businesses.
This isa generallist ofthe APMsand non-GAAPmeasures usedin ourfinancial reporting.Not allof theabove-listed
measures may appear in this particular report.
Annual Report 2025 |
Appendix370
Information related to underlying return on common equity tier 1 capital (RoCET1) and underlying return on tangible
equity (%)
As of or for the year ended
USD m
31.12.25
31.12.24
Underlying net profit / (loss) attributable to shareholders
9,891
6,609
Tangible equity
83,265
78,192
Average tangible equity
81,544
77,973
CET1 capital
71,262
71,367
Average CET1 capital
71,958
75,666
Underlying return on tangible equity (%)
12.1
8.5
Underlying return on common equity tier 1 capital (%)
13.7
8.7
Annual Report 2025 |
Appendix371
Abbreviations frequently used in our financial reports
A
ABSasset-backed securities
AGAktiengesellschaft
AGMAnnual General Meeting of
shareholders
AIartificial intelligence
A-IRBadvanced internal ratings-
based
ALCOAsset and Liability
Committee
AMAadvanced measurement
approach
AMLanti-money laundering
AoAArticles of Association
APMalternative performance
measure
ARRalternative reference rate
ARSauction rate securities
ASFavailable stable funding
AT1additional tier 1
AuMassets under management
B
BCBSBasel Committee on
Banking Supervision
BISBank for International
Settlements
BoDBoard of Directors
C
CAOCapital Adequacy
Ordinance
CCARComprehensive Capital
Analysis and Review
CCFcredit conversion factor
CCPcentral counterparty
CCRcounterparty credit risk
CCRCCorporate Culture and
Responsibility Committee
CDScredit default swap
CEOChief Executive Officer
CET1common equity tier 1
CFOChief Financial Officer
CGUcash-generating unit
CHFSwiss franc
CIOChief Investment Office
CORCCompliance and
Operational Risk Control
CRMcredit risk mitigation
CROChief Risk Officer
CSTcombined stress test
CUSIPCommittee on Uniform
Security Identification
Procedures
CVAcredit valuation adjustment
D
DBOdefined benefit obligation
DCCPDeferred Contingent
Capital Plan
DFASTDodd–Frank Act Stress Test
DisO-FINMAFINMA Ordinance on the
Disclosure Obligations of
Banks and Securities Firms
DMdiscount margin
DOJUS Department of Justice
DTAdeferred tax asset
DVAdebit valuation adjustment
E
EADexposure at default
EBExecutive Board
ECEuropean Commission
ECBEuropean Central Bank
ECLexpected credit loss
EGMExtraordinary General
Meeting of shareholders
EIReffective interest rate
ELexpected loss
EMEAEurope, Middle East and
Africa
EOPEquity Ownership Plan
EPSearnings per share
ESGenvironmental, social and
governance
ETDexchange-traded derivatives
ETFexchange-traded fund
EUEuropean Union
EUReuro
EURIBOREuro Interbank Offered Rate
EVEeconomic value of equity
EYErnst & Young Ltd
F
FCAUK Financial Conduct
Authority
FDICFederal Deposit Insurance
Corporation
FINMASwiss Financial Market
Supervisory Authority
FMIASwiss Financial Market
Infrastructure Act
FRTBFundamental Review of the
Trading Book
FSBFinancial Stability Board
FTASwiss Federal Tax
Administration
FVAfunding valuation
adjustment
FVOCIfair value through other
comprehensive income
FVTPLfair value through profit or
loss
FXforeign exchange
G
GAAPgenerally accepted
accounting principles
GBPpound sterling
GDPgross domestic product
GEBGroup Executive Board
GHGgreenhouse gas
GCORCGroup Compliance and
Operational Risk Control
GRIGlobal Reporting Initiative
G-SIBglobal systemically
important bank
H
HQLA
high-quality liquid assets
I
IASInternational Accounting
Standards
IASBInternational Accounting
Standards Board
IBORinterbank offered rate
IFRICInternational Financial
Reporting Interpretations
Committee
IFRSaccounting standards
Accountingissued by the IASB
Standards
IRBinternal ratings-based
IRRBBinterest rate risk in the
banking book
ISDAInternational Swaps and
Derivatives Association
ISINInternational Securities
Identification Number
Annual Report 2025 |
Appendix372
Abbreviations frequently used in our financial reports (continued)
K
KRTKey Risk Taker
L
LASliquidity-adjusted stress
LCRliquidity coverage ratio
LGDloss given default
LIBORLondon Interbank Offered
Rate
LLClimited liability company
LoDlines of defense
LRDleverage ratio denominator
LTIPLong-Term Incentive Plan
LTVloan-to-value
M
M&Amergers and acquisitions
MRTMaterial Risk Taker
N
NIInet interest income
NSFRnet stable funding ratio
NYSENew York Stock Exchange
O
OCAown credit adjustment
OCIother comprehensive
income
OECDOrganisation for Economic
Co-operation and
Development
OTCover-the-counter
P
PCIpurchased credit impaired
PDprobability of default
PITpoint in time
PPApurchase price allocation
Q
QCCPqualifying central
counterparty
R
RBCrisk-based capital
RbMrisk-based monitoring
REITreal estate investment trust
RMBSresidential mortgage-
backed securities
RniVrisks not in VaR
RoCET1return on CET1 capital
RoUright-of-use
rTSRrelative total shareholder
return
RWArisk-weighted assets
S
SAstandardized approach or
société anonyme
SA-CCRstandardized approach for
counterparty credit risk
SARSpecial Administrative
Region of the People’s
Republic of China
SDGSustainable Development
Goal
SECUS Securities and Exchange
Commission
SFTsecurities financing
transaction
SIBORSingapore Interbank
Offered Rate
SICRsignificant increase in credit
risk
SIXSIX Swiss Exchange
SMEsmall and medium-sized
entities
SMFSenior Management
Function
SNBSwiss National Bank
SORSingapore Swap Offer Rate
SPPIsolely payments of principal
and interest
SRBsystemically relevant bank
SVaRstressed value-at-risk
T
TBTFtoo big to fail
TCFDTask Forceon Climate-
related Financial Disclosures
TIBORTokyo InterbankOffered
Rate
TLACtotal loss-absorbing capacity
TTCthrough the cycle
U
USDUS dollar
V
VaRvalue-at-risk
VAT
value-added tax
This is a general listof the abbreviations frequently usedin our financial reporting. Not allof the listed abbreviations may
appear in this particular report.
Annual Report 2025 |
Appendix373
Information sources
Reporting publications
Annual publications
UBS GroupAnnual Report:
Published inEnglish, thisreport providesdescriptions of:the Groupstrategy andperformance;
thestrategyandperformance ofthebusinessdivisions andGroupfunctions; risk,treasuryandcapitalmanagement;
corporategovernance;thecompensationframework,includinginformationaboutcompensationfortheBoardof
Directors and the Group Executive Board members; and financial information, including the financial statements.
“AuszugausdemGeschäftsbericht
”
:
ThispublicationprovidesaGermantranslationofselectedsectionsofthe
UBS Group Annual Report.
Compensation Report:
This report discussesthe compensation frameworkand provides informationabout compensation
fortheBoardofDirectorsandtheGroupExecutiveBoardmembers.ItisavailableinEnglishandGerman
(
“Vergütungsbericht
”) and represents a component of the UBS Group Annual Report.
Sustainability Report:
Published inEnglish, theUBS GroupSustainability Reportprovides disclosureson environmental,
social and governance (ESG) topics.
Quarterly publications
Quarterlyfinancialreport:
Thisreportprovidesanupdateonperformanceandstrategy(whereapplicable)forthe
respective quarter. It is available in English.
Theannualand quarterlypublications areavailable in .pdfandonline formatsat
ubs.com/investors
, under“Financial
information”. Printed copies, in any language, of the aforementioned annual publications are no longer provided.
Other information
Website
The “InvestorRelations” websiteat
ubs.com/investors
provides thefollowing informationabout UBS:results-related news
releases;financialinformation,includingresults-relatedfilingswiththeUSSecuritiesandExchangeCommission(the
SEC);informationforshareholders,includingUBSdividendandsharerepurchaseprograminformation,andfor
bondholders, including rating agencies reports; the corporate calendar; and presentations by management for investors
and financial analysts. Information is available online in English, with some information also available in German.
Results presentations
Quarterlyresultspresentationsarewebcastlive.Recordingsofmostpresentationscanbedownloadedfrom
ubs.com/presentations
.
Messaging service
EmailalertstonewsaboutUBScanbesubscribedforunder“UBSNewsAlert”at
ubs.com/global/en/investor-
relations/contact/investor-services.html
. Messages are sent in English, German, French or Italian,with an option to select
theme preferences for such alerts.
Form 20-F and other submissions to the US Securities and Exchange Commission
UBS filesperiodic reportswith andsubmits otherinformation tothe SEC.Principal amongthese filingsis theannual
report on Form 20-F, filed pursuant to the US Securities Exchange Act of 1934. The filing of Form 20-F is structured as a
wraparounddocument.MostsectionsofthefilingcanbesatisfiedbyreferringtotheUBS GroupAnnualReport.
However, thereis asmall amountof additionalinformation inForm 20-Fthat isnot presentedelsewhere andis particularly
targeted at readersin the US.Readers are encouragedto refer tothis additional disclosure. Anydocument that isfiled
with the SEC is available on the SEC’s website:
sec.gov
. Refer to
ubs.com/investors
for more information.
Annual Report 2025 |
Appendix374
Cautionary statement regarding forward-looking statements|
This report contains statementsthat constitute “forward-looking statements”,including but
not limited tomanagement’s outlook forUBS’s financial performance,statements relating tothe anticipated effectof transactions andstrategic initiatives on
UBS’s business and future development and goals. While these forward-looking statementsrepresent UBS’s judgments, expectations and objectives concerning
the matters described, a number of risks, uncertaintiesand other important factors could cause actualdevelopments and results to differ materiallyfrom UBS’s
expectations.Inparticular,the globaleconomymay suffersignificant adverseeffectsfromincreasingpolitical tensionsbetween worldpowers, changesto
international tradepolicies, includingthose relatedto tariffsand tradebarriers, andevolving armedconflicts.UBS’s acquisitionof theCreditSuisseGroup
materially changedits outlookand strategicdirection andintroduced newoperational challenges.The integrationof theCredit Suisseentities intothe UBS
structure is expectedto continue through2026 and presentssignificant operational andexecution risk, including therisks that UBSmay be unable toachieve
the cost reductions and business benefits contemplated by the transaction, that it mayincur higher costs to execute the integration of Credit Suisse and that the
acquired business mayhave greater risksor liabilities, includingthose related tolitigation, than expected.Following the failureof Credit Suisse,Switzerland is
considering significant changes to itscapital, resolution and regulatory regime, which,if adopted, would significantly increaseour capital requirements or impose
other costs on UBS. These factorscreate greater uncertainty about forward-looking statements. Other factors that may affectUBS’s performance and ability to
achieve its plans, outlook and other objectives also include, but are not limited to: (i) the degree to which UBS is successful inthe execution of its strategic plans,
including itscost reductionand efficiencyinitiatives andits abilityto manageits levelsof risk-weightedassets (RWA)and leverageratio denominator(LRD),
liquidity coverageratio andother financialresources, includingchanges inRWA assetsand liabilitiesarising fromhigher marketvolatility andthe sizeof the
combined Group; (ii) the degree to which UBS issuccessful in implementing changes to itsbusinesses to meet changing market, regulatory andother conditions,
including any potential changes tobanking examination and oversight practicesand standards as aresult of executive branchorders or staffinterpretations of
law in the US;(iii) inflation and interest rate volatilityin major markets; (iv) developmentsin the macroeconomic climateand in the marketsin which UBS operates
or to whichit is exposed,including movements insecurities prices orliquidity,credit spreads,currency exchangerates, residentialand commercialreal estate
markets, general economic conditions, and changes to national tradepolicies on the financial position or creditworthiness of UBS’sclients and counterparties, as
well as on client sentiment and levels of activity; (v) changes in the availability of capital and funding, including any adverse changes in UBS’s credit spreadsand
credit ratingsof UBS,as wellas availabilityand costof funding,
including asaffected bythe marketabilityof additionaltier onedebt instruments,to meet
requirementsfordebteligiblefortotalloss-absorbingcapacity(TLAC);(vi) changesinandpotentialdivergencebetweencentralbankpoliciesorthe
implementation of financiallegislation and regulationin Switzerland, theUS, the UK,the EU andother financial centersthat have imposed,or resulted in,or
may do so in the future,more stringent or entity-specific capital, TLAC,leverage ratio, net stable funding ratio, liquidityand funding requirements, heightened
operational resilience requirements, incrementaltax requirements, additional levies, limitationson permitted activities, constraints on remuneration,constraints
on transfersof capitaland liquidityand sharingof operationalcosts acrossthe Groupor othermeasures, andthe effectthese willor wouldhave onUBS’s
business activities; (vii) UBS’s ability to successfully implementresolvability and related regulatoryrequirements and the potential needto make further changes
to the legal structure or booking model of UBS in response to legal and regulatoryrequirements including heightened requirements and expectations due to its
acquisition of the Credit Suisse Group;(viii) UBS’s ability to maintain and improveits systems and controls for complying withsanctions in a timely manner and
for the detection andprevention of money launderingto meet evolving regulatoryrequirements and expectations, in particularin the current geopoliticalturmoil;
(ix) theuncertaintyarisingfromdomesticstressesincertainmajoreconomies;(x) changesinUBS’scompetitiveposition,includingwhetherdifferencesin
regulatory capital and other requirements among the major financial centers adversely affect UBS’s ability to compete in certain lines of business; (xi) changes in
the standardsof conductapplicable toits businessesthat mayresult fromnew regulationsor newenforcement ofexisting standards,including measuresto
impose new and enhancedduties when interacting withcustomers and in theexecution and handling ofcustomer transactions; (xii) theliability to which UBS
may be exposed,or possible constraintsor sanctions thatregulatory authorities mightimpose on UBS,due to litigation,including litigation ithas inherited by
virtue ofthe acquisitionof CreditSuisse, contractualclaims andregulatory investigations,including thepotential fordisqualification fromcertain businesses,
potentially large fines ormonetary penalties, or the lossof licenses or privilegesas a result ofregulatory or other governmentalsanctions, as well asthe effect
that litigation, regulatory and similar matters have on theoperational risk component of its RWA; (xiii) UBS’s ability to retain andattract the employees necessary
to generaterevenues andto manage,support andcontrolits businesses,which maybe affectedby competitivefactors; (xiv) changesin accountingor tax
standards or policies,and determinations or interpretationsaffecting the recognitionof gain or loss,the valuation of goodwill,the recognition of deferredtax
assets andother matters;(xv) UBS’s abilityto implementnew technologiesand businessmethods, includingdigital services,artificial intelligenceand other
technologies, and ability to successfully compete withboth existing and new financial serviceproviders, some of which may not be regulated tothe same extent;
(xvi) limitations on the effectiveness ofUBS’s internal processes for riskmanagement, risk control, measurement and modeling,and of financial models generally;
(xvii) the occurrenceof operational failures,such as fraud,misconduct, unauthorized trading,financial crime, cyberattacks,data leakage andsystems failures,
the riskof whichis increasedwith persistentlyhigh levelsof cyberattackthreats;(xviii) restrictionson theability ofUBS GroupAG, UBSAG andregulated
subsidiaries of UBS AG to make payments or distributions, including due to restrictions on the ability of its subsidiaries to make loans or distributions, directly or
indirectly,or, inthe case of financialdifficulties, due to theexercise by FINMA orthe regulators of UBS’soperations in other countriesof their broad statutory
powers in relation toprotective measures, restructuringand liquidation proceedings; (xix) thedegree to which changesin regulation, capital orlegal structure,
financial resultsor otherfactors mayaffect UBS’sability tomaintain itsstated capitalreturn objective;(xx) uncertainty overthe scopeof actionsthat maybe
requiredby UBS,governments andothers forUBS toachieve goalsrelating toclimate, environmentaland socialmatters, aswell asthe evolvingnature of
underlying science and industry and theincreasing divergence among regulatory regimes; (xxi) the abilityof UBS to access capital markets;(xxii) the ability of UBS
to successfullyrecover froma disasteror otherbusiness continuityproblem dueto ahurricane, flood,earthquake, terroristattack, war,conflict, pandemic,
security breach,cyberattack, powerloss, telecommunicationsfailure orother naturalor man-madeevent; and(xxiii) the effectthat theseor otherfactors or
unanticipated events, including media reports and speculations,may have on its reputation and theadditional consequences that this may have on itsbusiness
and performance. The sequence inwhich the factors above arepresented is not indicative oftheir likelihood of occurrenceor the potential magnitude oftheir
consequences. UBS’s business andfinancial performance could be affectedby other factors identifiedin its past and futurefilings and reports, includingthose
filed with the US Securities and Exchange Commission (the SEC). More detailed information about those factors is set forth in documents furnished by UBS and
filings made by UBSwith the SEC, includingthe UBS GroupAG and UBS AGAnnual Reports on Form20-F for the yearended 31 December 2025. UBSis not
under any obligation to (and expressly disclaims any obligation to)update or alter its forward-looking statements, whether as a result ofnew information, future
events, or otherwise.
Rounding |
Numbers presentedthroughout thisreport maynot add upprecisely tothe totals providedin the tables,infographics and text.Percentages and
percent changes disclosed in text and tables are calculated on the basis ofunrounded figures. Absolute changes between reporting periods disclosed in the text,
which can be derived from numbers presented in related tables, are calculated on a rounded basis.
Tables|
Within tables, blank fields generally indicate non-applicabilityor that presentation of any contentwould not be meaningful, or thatinformation is not
available as of the relevant date or for the relevant period.Zero values generally indicate that the respective figure is zeroon an actual or rounded basis. Values
that are zero on a rounded basis can be either negative or positive on an actual basis.
Websites |
In this report, any website addresses are provided solelyfor information and are not intended tobe active links. UBS is notincorporating the contents
of any such websites into this report.
ubs-20251231p399i0
UBS Group AG
P.O. Box
CH-8098 Zurich
ubs.com