Ubs AG 6-K, filed Aug 14, 2026
Ubs AG (AMUB)
6-K
2026-08-14
For: 2026-06-30
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Added on
August 14, 2026
About this 6-K
Ubs AG filed this 6-K on August 14, 2026.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Date: August 14, 2026
UBS Group AG
(Registrant's Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
(Address of principal executive office)
Commission File Number: 1-36764
UBS AG
(Registrant's Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
Aeschenvorstadt 1, 4051 Basel, Switzerland
(Address of principal executive offices)
Commission File Number: 1-15060
Indicate by check mark whether the registrants file or will file annual reports under cover of Form 20-F or Form
40-
F.
Form 20-F
☒
☐
This Form 6-K consists of the 30 June 2026 Pillar 3 Report of UBS Group and significant regulated subsidiaries and
sub-groups, which appears immediately following this page.
30 June 2026
Terms used in this report, unless the context requires otherwise
“UBS”, “UBS Group”, “UBS Group AG consolidated”, “Group”, “the Group”, “we”, “us” and “our”
UBS Group AG and its consolidated subsidiaries
“UBS AG” and “UBS AG consolidated”
UBS AG and its consolidated subsidiaries
“Credit Suisse Group” and “Credit Suisse”
Credit Suisse Group AG and its consolidated subsidiaries,
before the acquisition by UBS
“UBS Group AG” and “UBS Group AG standalone”
UBS Group AG on a standalone basis
“UBS AG standalone”
UBS AG on a standalone basis
“UBS Switzerland AG” and “UBS Switzerland AG standalone”
UBS Switzerland AG on a standalone basis
“UBS Europe SE” and “UBS Europe SE consolidated”
UBS Europe SE and its consolidated subsidiaries
“UBS Americas Holding LLC” and “UBS Americas Holding LLC consolidated”
UBS Americas Holding LLC and its consolidated subsidiaries
“1m”
One million, i.e. 1,000,000
“1bn”
One billion, i.e. 1,000,000,000
“1trn”
One trillion, i.e. 1,000,000,000,000
In this report, unless the context requires otherwise, references to any gender shall apply to all genders.
Table of contents
UBS Group
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Section 7
Section 8
Section 9
Section 10
Section 11
Section 12
Section 13
Significant regulated subsidiaries and sub-groups
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Appendix
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
mediarelations@ubs.com
London +44-20-7567-4714
ubs-media-relations@ubs.com
New York +1-212-882-5858
mediarelations@ubs.com
Hong Kong SAR +852-2971-8200
sh-mediarelations-ap@ubs.com
Office of the Group Company
Secretary
The Group Company Secretary
handles inquiries directed to the
Chairman or to other members
of the Board of Directors.
UBS Group AG, Office of the
Group Company Secretary
PO Box, CH-8098 Zurich, Switzerland
sh-company-secretary@ubs.com
Zurich +41-44-235-6652
Shareholder Services
UBS’s Shareholder Services team,
a unit of the Group Company
Secretary’s office, manages
relationships with shareholders and
the registration of UBS Group AG
registered shares.
UBS Group AG, Shareholder Services
PO Box, CH-8098 Zurich, Switzerland
sh-shareholder-services@ubs.com
Zurich +41-44-235-6652
US Transfer Agent
For global registered share-related
inquiries in the US.
Computershare Trust Company NA
PO Box 43006
Providence, RI, 02940-3006, USA
Shareholder online inquiries:
www.computershare.com/us/
investor-inquiries
Shareholder website:
computershare.com/investor
Calls from the US
+1-866-305-9566
Calls from outside the US
+1-781-575-2623
TDD for hearing impaired
+1-800-231-5469
TDD for foreign shareholders
+1-201-680-6610
Imprint
Publisher: UBS Group AG, Zurich, Switzerland | ubs.com
Language: English
© UBS 2026. The key symbol and UBS are among the registered and
unregistered trademarks of UBS. All rights reserved.
30 June 2026 Pillar 3 Report |
UBS Group | Introduction and basis for preparation 2
UBS Group
Introduction and basis for preparation
Scope of Basel III Pillar 3 disclosures
The Basel Committee on Banking Supervision (the BCBS) final Basel III capital adequacy framework consists of three
complementary pillars. Pillar 1 provides a framework for measuring minimum capital requirements for the credit, market
and operational risks faced by banks. Pillar 2 addresses the principles of the supervisory review process, emphasizing the
need for a qualitative approach to supervising banks. Pillar 3 requires banks to publish a range of disclosures, mainly
covering risk, capital, leverage, liquidity and remuneration.
This report provides Pillar 3 disclosures for the UBS Group and prudential key figures and regulatory information for
UBS AG consolidated and standalone, UBS Switzerland AG standalone, UBS Europe SE consolidated, and UBS Americas
Holding LLC consolidated in the respective sections under “Significant regulated subsidiaries and sub-groups”.
This Pillar 3 report has been prepared in accordance with the Swiss Financial Market Supervisory Authority (FINMA)
Ordinance on the Disclosure Obligations of Banks and Securities Firms (the DisO-FINMA), the corresponding explanatory
notes and the underlying BCBS Basel framework disclosure requirements. The revised Capital Adequacy Ordinance (the
CAO) that incorporates the final Basel III standards into Swiss law, and the five new FINMA ordinances (including the
DisO-FINMA) that contain the implementing provisions for the revised CAO, entered into force on 1 January 2025. The
DisO-FINMA replaces FINMA Circular 2016/1 “Disclosure – banks” and incorporates in particular new and revised
disclosure tables on risks and capital requirements.
›
Refer to “Changes to Pillar 3 disclosure requirements” in the “Introduction and basis for preparation” section of the 31 March
2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for information about new and revised quarterly
tables as a result of the implementation of the final Basel III standards in Switzerland
›
Refer to “Changes to Pillar 3 disclosure requirements” in the “Introduction and basis for preparation” section of the 30 June 2025
Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for information about new and revised semi-annual
tables as a result of the implementation of the final Basel III standards in Switzerland
As UBS is a systemically relevant bank (an SRB) under Swiss banking law, UBS Group AG and UBS AG are required to
comply with regulations based on the final Basel III framework as applicable to Swiss SRBs on a consolidated basis,
whereas UBS Switzerland AG is exempt from consolidation.
Local regulators may also require the publication of Pillar 3 information at a subsidiary or sub-group level. Where
applicable, these local disclosures are provided under “Holding company and significant regulated subsidiaries and sub-
groups” at
ubs.com/investors
.
Significant regulatory developments, disclosure requirements and other changes
Developments related to Basel III implementation in the EU and the UK
In June 2026, the European Commission (the EC) adopted a delegated act amending the Capital Requirements Regulation
(the CRR) with temporary targeted adjustments to the EU implementation of the Fundamental Review of the Trading
Book (the FRTB) framework to address international differences in implementation timelines. The amendments aim to
temporarily offset the capital impact on EU banks adversely affected by the implementation of the FRTB framework, with
a view to preserving a level playing field with jurisdictions where the implementation of the FRTB framework is pending.
If no objections are raised by the European Parliament and the European Council, the amendments will become effective
from 1 January 2027, for a period of three years. UBS Europe SE is subject to CRR requirements; however, the expected
impact of these temporary amendments on UBS is limited.
Also in June 2026, the UK Prudential Regulation Authority (the PRA) launched a consultation on targeted adjustments to
the internal model approach for market risk provided by the FRTB framework under the Basel 3.1 standards aimed at
supporting international alignment and proportionality. The PRA has confirmed that the implementation date of the
framework remains 1 January 2028. UBS does not expect direct impacts from such regulatory changes as it has no
significant subsidiaries or sub-groups that are subject to UK capital regulations.
EU measures to enhance competitiveness and efficiency in EU banking
In July 2026, the EC published a report on the competitiveness of the EU banking sector outlining policy priorities to
strengthen the competitiveness and efficiency of the EU banking regulatory framework. These priorities include measures
to reduce fragmentation in the single market, facilitate more efficient capital and liquidity allocation within cross-border
banking groups, revise deposit insurance frameworks, potentially review the mandate of the European Banking Authority,
and assess selected elements of the Basel III implementation for possible revisions to reflect the particularities of EU banks.
Legislative proposals are expected to follow in the first quarter of 2027. Depending on their scope and final design,
targeted changes to applicable requirements could be relevant for UBS Europe SE at the entity level.
30 June 2026 Pillar 3 Report |
UBS Group | Introduction and basis for preparation 3
Other developments
Capital returns
In July 2026, we completed our latest share repurchase program. We are continuing with another share repurchase
program under which we intend to repurchase USD 3bn of shares at the latest by the end of the second quarter of 2027
and for which a reserve for the full amount is reflected in our common equity tier 1 (CET1) capital as of 30 June 2026.
We plan to repurchase at least USD 1bn of shares over the next three months. The amount and pace of share repurchases
will remain subject to our short-term financial performance and outlook, maintaining a CET1 capital ratio of around 14%
and further visibility on the deliberations by the Swiss Parliament on the capitalization of foreign subsidiaries.
Additional Pillar 3 disclosure
In the 30 June 2026 Pillar 3 Report, we have included the disclosure of the “CCR3: Standardized approach – CCR
exposures by regulatory portfolio and risk weights” table, due to an increase in the materiality of such exposures as of
30 June 2026.
›
Refer to “CCR exposure subject to the standardized approach” in the “Counterparty credit risk” section of this report for more
information
Frequency and comparability of Pillar 3 disclosures
The DisO-FINMA specifies the reporting frequency for each disclosure. In line with these FINMA-specified disclosure
requirements, including with regard to comparative periods, we provide quantitative comparative information as of
31 March 2026 for disclosures required on a quarterly basis and as of 31 December 2025 for disclosures required on a
semi-annual basis. Where specifically required by FINMA and / or the BCBS, we disclose comparative information for
additional reporting dates.
Where required, movement commentary is aligned with the corresponding disclosure frequency required by FINMA and
always refers to the latest comparative period. Throughout this report, signposts are displayed at the beginning of a
section, table or chart –
Semi-annual |
Quarterly |
triangle symbol –
›
Refer to the 31 March 2026 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about
previously published quarterly movement commentary
›
Refer to the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
about previously published semi-annual movement commentary
›
Refer to “Changes to Pillar 3 disclosure requirements” in the “Introduction and basis for preparation” section of the 31 March
2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about quarterly tables
currently not applicable to UBS
›
Refer to “Changes to Pillar 3 disclosure requirements” in the “Introduction and basis for preparation” section of the 30 June 2025
Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about semi-annual tables
currently not applicable to UBS
30 June 2026 Pillar 3 Report |
UBS Group | Key metrics 4
Key metrics
Key metrics for the second quarter of 2026
Quarterly |
The KM1 and KM2 tables below are based on the Swiss Financial Market Supervisory Authority (FINMA) Ordinance
on the Disclosure Obligations of Banks and Securities Firms (DisO-FINMA) rules. The KM2 table includes a reference to
the total loss-absorbing capacity (TLAC) term sheet, published by the Financial Stability Board (the FSB). The FSB provides
this term sheet at
fsb.org/2015/11/total-loss-absorbing-capacity-tlac-principles-and-term-sheet
.
Our capital ratio decreased, reflecting a decrease in our tier 1 capital and an increase in risk-weighted assets (RWA). Our
leverage ratio decreased, driven by a decrease in our tier 1 capital, partly offset by a decrease in the leverage ratio
denominator (the LRD).
Our common equity tier 1 (CET1) capital decreased by USD 0.8bn to USD 72.5bn, mainly as operating profit before tax
of USD 3.6bn was more than offset by the recognition of a new USD 3.0bn capital reserve for expected future share
repurchases, dividend accruals of USD 0.9bn, current tax expenses of USD 0.5bn and negative foreign currency translation
effects of USD 0.3bn. Share repurchases of USD 1.9bn made under our 2026 share repurchase program in the second
quarter of 2026 did not affect our CET1 capital position, as there was an identical reduction in the existing capital reserve
for expected future share repurchases.
Our tier 1 capital decreased by USD 1.0bn to USD 96.0bn, reflecting the aforementioned USD 0.8bn decrease in CET1
capital and a USD 0.1bn decrease in additional tier 1 (AT1) capital. The decrease in AT1 capital reflected the redemption
of USD 1.5bn of AT1 capital instruments (including one instrument, ISIN CH0558521263, that ceased to be eligible when
we issued a notice of redemption of the instrument in the second quarter of 2026) and negative impacts from interest
rate risk hedge, foreign currency translation and other effects, largely offset by the issuance of new AT1 capital
instruments equivalent to USD 1.5bn.
The TLAC available as of 30 June 2026 included CET1 capital, AT1 capital and non-regulatory capital elements of TLAC.
Our available TLAC decreased by USD 3.9bn to USD 193.6bn, reflecting the aforementioned decrease in tier 1 capital
and a USD 2.9bn decrease in non-regulatory capital elements of TLAC. The decrease in non-regulatory capital elements
of TLAC was mainly due to the redemption of TLAC-eligible senior unsecured debt instruments for the equivalent of
USD 2.9bn.
During the second quarter of 2026, RWA increased by USD 3.6bn to USD 503.9bn, driven by a USD 6.7bn increase
resulting from asset size and other movements, partly offset by a USD 1.9bn decrease from currency effects and a
USD 1.2bn decrease driven by model updates and methodology changes.
During the second quarter of 2026, the LRD decreased by USD 3.7bn to USD 1,649.8bn, driven by a USD 9.4bn decrease
from currency effects, partly offset by a USD 5.6bn increase from asset size and other movements.
The quarterly average liquidity coverage ratio of the UBS Group was largely unchanged at 177.3%, remaining above the
prudential requirement communicated by FINMA. Average net cash outflows increased by USD 5.0bn to USD 192.9bn,
primarily reflecting lower inflows from lending assets and securities financing transactions and higher net outflows from
debt issued measured at fair value. The effect of the increase in net cash outflows was offset by a USD 7.8bn increase in
average high-quality liquid assets to USD 341.8bn,
mainly reflecting
higher cash available due to increases in customer
deposits, debt issued and net brokerage payables, partly offset by lower cash available from funding of lending assets,
margin requirements and dividend distribution to shareholders, as well as a decrease in securities financing transactions.
As of 30 June 2026, the net stable funding ratio of the UBS Group decreased 1.9 percentage points to 115.1%,
remaining above the prudential requirement communicated by FINMA. Available stable funding increased by USD 3.6bn
to USD 900.3bn, mainly reflecting an increase in debt issued designated at fair value, partly offset by the tenor roll down
of TLAC-eligible senior unsecured debt instruments. Required stable funding increased by USD 15.7bn to USD 782.5bn,
mainly driven by higher trading assets and lending assets.
30 June 2026 Pillar 3 Report |
UBS Group | Key metrics 5
KM1: Key metrics
USD m, except where indicated
30.6.26
31.3.26
31.12.25
30.9.25
30.6.25
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
72,464
73,313
71,262
74,655
72,709
2
Tier 1
95,977
96,963
91,176
94,950
91,721
3
Total capital
95,980
96,973
91,201
94,950
91,721
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
503,923
500,355
493,397
504,897
504,500
4a
Total risk-weighted assets (pre-floor)
503,923
500,355
493,397
504,897
504,500
4b
Minimum capital requirement
1
40,314
40,028
39,472
40,392
40,360
Risk-based capital ratios as a percentage of RWA
5
Common equity tier 1 ratio (%)
14.38
14.65
14.44
14.79
14.41
5b
Common equity tier 1 ratio (%) (pre-floor)
14.38
14.65
14.44
14.79
14.41
6
Tier 1 ratio (%)
19.05
19.38
18.48
18.81
18.18
6b
Tier 1 ratio (%) (pre-floor)
19.05
19.38
18.48
18.81
18.18
7
Total capital ratio (%)
19.05
19.38
18.48
18.81
18.18
7b
Total capital ratio (%) (pre-floor)
19.05
19.38
18.48
18.81
18.18
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
2.50
2.50
2.50
2.50
2.50
9
Countercyclical buffer requirement (%)
0.11
0.11
0.11
0.12
0.13
9a
Additional countercyclical buffer for Swiss mortgage loans (%)
0.33
0.33
0.38
0.32
0.33
10
Bank G-SIB and / or D-SIB additional requirements (%)
1.50
1.50
1.50
1.50
1.50
11
Total of bank CET1 specific buffer requirements (%)
2
4.11
4.11
4.11
4.12
4.13
12
CET1 available after meeting the bank’s minimum capital requirements (%)
3
9.88
10.15
9.94
10.29
9.91
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
1,649,751
1,653,460
1,622,438
1,640,464
1,658,089
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
4
5.82
5.86
5.62
5.79
5.53
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
5.82
5.86
5.62
5.79
5.53
14c
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
4
5.79
5.86
5.58
5.77
5.54
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
5.79
5.86
5.58
5.77
5.54
14e
Minimum capital requirements
5
49,493
49,604
48,673
49,214
49,743
Liquidity coverage ratio (LCR)
6
15
Total high-quality liquid assets (HQLA)
341,792
333,963
331,568
346,550
358,759
16
Total net cash outflow
192,877
187,869
181,693
190,359
196,846
16a
of which: cash outflows
428,160
417,159
390,134
388,343
385,105
16b
of which: cash inflows
235,283
229,290
208,441
197,984
188,259
17
LCR (%)
177.28
177.83
182.64
182.12
182.31
Net stable funding ratio (NSFR)
18
Total available stable funding
900,258
896,644
882,039
898,762
904,703
19
Total required stable funding
782,479
766,795
759,829
750,960
738,891
20
NSFR (%)
115.05
116.93
116.08
119.68
122.44
1 Calculated as 8% of total RWA, based on total capital minimum requirements, excluding CET1 buffer requirements. 2 Excludes non-BCBS capital buffer requirements for risk-weighted positions that are directly
or indirectly backed by residential properties in Switzerland. 3 Represents the CET1 ratio that is available to meet buffer requirements. Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and,
where applicable, minus the BCBS tier 2 capital requirement met with CET1 capital. 4 There is currently no temporary exemption of central bank reserves for UBS. 5 The higher of capital requirements based on
8% of RWA or 3% of LRD. 6 Calculated after the application of haircuts and inflow and outflow rates, as well as, where applicable, caps on Level 2 assets and cash inflows. Calculated based on an average of
60 data points in the second quarter of 2026 and 62 data points in the first quarter of 2026. For the prior-quarter data points, refer to the respective Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors, for more information.
KM2: Key metrics – TLAC requirements (at resolution group level)
1
USD m, except where indicated
30.6.26
31.3.26
31.12.25
30.9.25
30.6.25
1
Total loss-absorbing capacity (TLAC) available
2
Total RWA at the level of the resolution group
3
TLAC as a percentage of RWA (%)
4
Leverage ratio exposure measure at the level of the resolution group
5
TLAC as a percentage of leverage ratio exposure measure (%)
6a
Does the subordination exemption in the antepenultimate paragraph of
Section 11 of the FSB TLAC Term Sheet apply?
No
6b
Does the subordination exemption in the penultimate paragraph of
Section 11 of the FSB TLAC Term Sheet apply?
No
6c
If the capped subordination exemption applies, the amount of funding
issued that ranks pari passu with excluded liabilities and that is
recognized as external TLAC, divided by funding issued that ranks pari
passu with excluded liabilities and that would be recognized as external
TLAC if no cap was applied (%)
N/A – Refer to our response to 6b.
1 Resolution group level is defined as the UBS Group AG consolidated level.
30 June 2026 Pillar 3 Report |
UBS Group | Overview of risk-weighted assets 6
Overview of risk-weighted assets
Overview of risk-weighted assets and capital requirements
Quarterly |
The OV1 table below provides an overview of our risk-weighted assets (RWA) and the related minimum capital
requirements by risk type. The table presented is based on the respective Swiss Financial Market Supervisory Authority
(FINMA) template and empty rows indicate current non-applicability to UBS.
During the second quarter of 2026, RWA increased by USD 3.6bn to USD 503.9bn, driven by a USD 6.7bn increase
resulting from asset size and other movements, partly offset by a USD 1.9bn decrease from currency effects and a
USD 1.2bn decrease driven by model updates and methodology changes.
Credit and counterparty credit risk
Credit and counterparty credit risk RWA include settlement risk, credit valuation adjustments, equity and investments in
funds exposures in the banking book, and securitization exposures in the banking book but exclude non-counterparty-
related risk. Credit and counterparty credit risk RWA decreased by USD 3.8bn to USD 301.9bn as of 30 June 2026, driven
by a USD 1.8bn decrease from currency effects, a USD 1.2bn decrease due to model updates and methodology changes,
and a USD 0.8bn decrease resulting from asset size and other movements.
Asset size and other movements by business division and Group Items
–
Investment Bank RWA decreased by USD 2.0bn, mainly due to market-driven movements in derivatives, partly offset
by higher RWA on securities financing transactions (SFTs).
–
Non-core and Legacy RWA decreased by USD 0.4bn, primarily driven by our actions to actively unwind the portfolio,
in addition to the natural roll-off.
–
Group Items RWA decreased by USD 0.3bn.
–
Global Wealth Management RWA increased by USD 1.1bn, mainly due to market-driven movements and higher levels
of client activity in derivatives.
–
Personal & Corporate Banking RWA increased by USD 0.7bn, mainly due to increases in loans and loan commitments,
partly offset by lower high-quality liquid assets.
–
Asset Management RWA were unchanged.
Model updates and methodology changes resulted in an RWA decrease of USD 1.2bn, mainly reflecting a reduction in
the overlay for uncertainties associated with the alignment of models and RWA calculations in legacy Credit Suisse
platforms with those of UBS, following the completion of the Swiss client account and platform migrations, in Personal
& Corporate Banking and Global Wealth Management.
Market risk
Market risk RWA increased by USD 7.7bn to USD 32.3bn in the second quarter of 2026, driven by asset size and other
movements in Group Treasury related to hedging activities, as well as in the Investment Bank’s Global Markets business.
Operational risk
Operational risk RWA were unchanged at USD 135.4bn.
The flow tables for credit risk, counterparty credit risk (CCR) and credit valuation adjustment (CVA) RWA in the respective
sections of this report provide further details regarding the movements in RWA in the second quarter of 2026.
›
Refer to the “Introduction and basis for preparation” section of this report for more information about the regulatory standards
applied
›
Refer to the “Capital management” section of the UBS Group 30 June 2026 Interim Report, available under
”Quarterly reporting”
at
ubs.com/investors
, for more information about capital management and RWA, including details regarding movements in RWA
during the second quarter of 2026
Material model updates and methodology changes
Model updates and methodology changes implemented during the first half of 2026 resulted in a USD 0.2bn decrease
in RWA, mainly reflecting a decrease in the overlay for uncertainties associated with the alignment of models and RWA
calculations in legacy Credit Suisse platforms with those of UBS, following the completion of the Swiss client account
and platform migrations in Personal & Corporate Banking and Global Wealth Management. In addition, model updates
and methodology changes resulted in decreases in RWA on recourse-based lending in Global Wealth Management and
commodity trade finance facilities in Personal & Corporate Banking. These reductions were partly offset by higher RWA
from model updates regarding Swiss corporate exposures and mortgage loans in Personal & Corporate Banking and
updates to the methodology for residual risk on legacy synthetic securitizations in the Investment Bank. The updates also
affected Pillar 3 tables, due to asset class reclassifications and the movement of exposures between the internal ratings-
based (the IRB) approach and the standardized approach.
›
Refer to “Credit risk exposure and credit risk mitigation effects” and “Credit risk exposures by portfolio and PD range” in the
“Credit risk” section of this report for more information
30 June 2026 Pillar 3 Report |
UBS Group | Overview of risk-weighted assets 7
OV1: Overview of RWA
Section or table
reference
Minimum
capital
requirements
1
USD m, except where indicated
30.6.26
31.3.26
31.12.25
30.6.26
1
Credit risk (excluding counterparty credit risk)
CMS1, CMS2, 4
2
of which: standardized approach (SA)
CMS1, CMS2, CR4
2a
of which: non-counterparty-related risk
2
3
of which: foundation internal ratings-based (F-IRB) approach
CR6
4
of which: supervisory slotting approach
CR10
5
of which: advanced internal ratings-based (A-IRB) approach
CR6
5a
of which: adjustments related to the Swiss sectoral real estate floor for exposures secured by
real estate in Switzerland
3
6
Counterparty credit risk
4
CMS1, 5
7
of which: SA for counterparty credit risk (SA-CCR)
8
of which: internal model method (IMM)
CCR7
8a
of which: value-at-risk (VaR)
CCR7
9
of which: other CCR
10
Credit valuation adjustment (CVA)
CMS1, 6
10a
of which: full basic approach (BA-CVA)
CVA2
10b
of which: standardized approach (SA-CVA)
CVA3, CVA4
11
Equity positions under the simple risk weight approach during the five-year transitional period
12
Equity investments in funds – look-through approach
CMS1
13
Equity investments in funds – mandate-based approach
CMS1
14
Equity investments in funds – fallback approach
CMS1
15
Settlement risk
CMS1
16
Securitization exposures in banking book
CMS1, 7
17
of which: securitization internal ratings-based approach (SEC-IRBA)
18
of which: securitization external ratings-based approach (SEC-ERBA), including
internal assessment approach (IAA)
19
of which: securitization standardized approach (SEC-SA)
20
Market risk
CMS1, 8
21
of which: standardized approach (SA)
22
of which: internal models approach (IMA)
23
Capital charge for switch between trading book and banking book
24
Operational risk
CMS1
25
Amounts below thresholds for deduction (250% risk weight)
5
CMS1
25a
26
Output floor applied (%)
6
27
Floor adjustment (before application of transitional cap)
7
28
Floor adjustment (after application of transitional cap)
8
29
Total
1 Calculated based on 8% of RWA. 2 Non-counterparty-related risk includes property, equipment, software and other items. 3 The Swiss sectoral real estate floor is not applicable at the level of UBS Group AG
consolidated. 4 Excludes settlement risk, which is separately reported in line 15 “Settlement risk”. Includes RWA with central counterparties. The split between the sub-components of counterparty credit risk refers
to the calculation of the exposure measure. 5 Includes items subject to threshold deduction treatment that do not exceed their respective threshold and are risk weighted at 250%. Items subject to threshold
deduction treatment include significant investments in common shares of non-consolidated financial institutions (banking, insurance and financial entities) and deferred tax assets arising from temporary differences.
6 The overall output floor of 72.5% is subject to a phase-in until 1 January 2028. As of 1 January 2026, the applicable overall output floor at the level of UBS Group AG consolidated increased to 65% and will
increase to 70% in 2027. 7 FINMA has not opted to implement a transitional cap that would limit the increase in RWA to 25% of a bank’s RWA before the application of the output floor. 8 The total of our actual
final Basel III RWA is higher than 65% of our final Basel III RWA calculated using the full standardized approach. Therefore, the overall output floor is not binding, and our RWA before and after the effects of the
overall output floor are equal.
Comparison of modelled and standardized RWA at risk level
Quarterly |
full standardized approach. The table also provides the full standardized approach for RWA that are the base of the
phased-in overall output floor. The purpose of the overall output floor is to ensure that banks’ capital requirements based
on modelled approaches where permitted do not fall below a certain percentage of capital requirements based on the
full standardized approach, thereby reducing excessive variability of RWA and enhancing the comparability of risk-based
capital ratios across banks. The impact of the output floor, if applicable, will be disclosed in the “OV1: Overview of RWA”
table in rows 27 and 28. The applicable threshold pursuant to the reporting date is disclosed in row 26 of the OV1 table,
and in column e in the CMS1 table below. As of 1 January 2026, the output floor increased to 65% from 60% and will
incrementally increase to a level of 72.5% by 2028. As of 30 June 2026, the floor is not binding at the level of UBS
Group, i.e. the total of our actual RWA shown in column c in the CMS1 table below is greater than 65% of the RWA
calculated under the full standardized approach shown in column e, and therefore no adjustment is required. UBS is
making progress with actions to mitigate RWA under the standardized approach to minimize the floor adjustment
required as the level of the output floor increases.
›
Refer to “Overview of risk-weighted assets and capital requirements” in this section for information about the OV1 table
The table below provides a summary of the key conceptual differences between the internal model approach and the
standardized approach.
30 June 2026 Pillar 3 Report |
UBS Group | Overview of risk-weighted assets 8
Key differences between the internal model approach and the standardized approach
Internal model approach
Standardized approach
Key impact
Risk weighting
Reliance on internal ratings where each
counterparty / transaction receives a rating based
on internal models approved by FINMA.
Reliance on external credit assessment institutions
where permitted in the regulatory framework.
Modelled approach produces RWA that is more risk
sensitive.
Granular risk-sensitive risk weight differentiation
via individual probability of default (PD) and loss
given default (LGD) for mortgages.
Less granular risk weights based on loan-to-value
(LTV) bands for mortgages.
The Group’s residential mortgage portfolio is
focused on the Swiss market, and the Group has
robust review processes in place concerning
borrowers’ ability to repay. This results in the
Group’s residential mortgage portfolio having a low
average LTV and results in an average risk weight
of around 20% under the advanced internal
ratings-based (A-IRB) approach.
Modelled LGD captures transaction quality
features including collateralization. Under the
foundation internal ratings-based (F-IRB)
approach, the LGD values are calculated based
on the rules set by FINMA.
No differentiation for transaction features (except
where a claim is subordinated).
Impact relevant across all asset classes.
Credit risk mitigation
Credit risk mitigation recognized via risk-sensitive
LGD or exposure at default (EAD).
Limited recognition of credit risk mitigation.
Standardized approach RWA is higher than
modelled RWA for most transaction types.
Wider variety of eligible collateral.
Restricted list of eligible collateral.
Limited recognition of collateral results in higher
RWA for Lombard lending and SFTs.
Repo value-at-risk (VaR) permits the use of VaR
models to estimate exposure and collateral for
SFTs. Approach permits full diversification and
netting across all collateral types.
Conservative and crude regulatory haircuts with
limited risk sensitivity.
The effects of guarantees and credit derivatives
are considered through either adjusting PD
and / or LGD estimates. UBS applies the F-IRB
approach for guarantee recognition.
In case of eligible guarantees and credit derivatives,
substitution is applied and the risk weight
applicable to the protection provider can be
assigned to the protected portion of the underlying
exposure.
CCF
A credit conversion factor (CCF) is applied to
model expected future drawdowns over the
12-month period, irrespective of the actual
maturity of a particular transaction. The CCF
includes downturn adjustments and is the result
of analysis of internal data and expert opinion.
Credit exposure equivalents are determined by
applying CCFs to off-balance sheet items. The CCFs
vary based on product type, maturity and the
underlying contractual agreements.
Modelled CCFs can be more tailored and
differentiated.
EAD for derivatives
Internal model method (IMM) facilitates the use
of a Monte Carlo simulation to estimate
exposure.
The standardized approach for CCR is calculated as
the replacement costs plus regulatory add-ons that
take into account potential future market moves at
predetermined fixed rates.
For large, diversified derivatives portfolios,
standardized EAD is higher than modelled EAD.
Application of multiplier on IMM exposure
estimate.
Differentiates add-ons by five exposure types and
three maturity buckets only.
Variability in holding period applied to
collateralized transactions, reflecting liquidity
risks.
Limited netting can be recognized.
EAD for SFTs
The repo VaR approach is a model based on a
Monte Carlo simulation and historical calibration
to estimate exposure, computed as quantile
exposure.
The comprehensive approach considers the adjusted
exposure after applicable supervisory haircuts on
both the exposure and the collateral received to
take account of possible future fluctuations in the
value of either the exposure or the collateral.
For large, diversified SFT portfolios, standardized
EAD is higher than modelled EAD.
Maturity in risk weight
Regulatory RWA function considers maturity: the
longer the maturity, the higher the risk weight.
No differentiation for maturity of transactions,
except for interbank exposures.
Model approach produces lower RWA for high-
quality, short-term transactions.
Credit valuation
adjustment
Not applicable under the final Basel III standards.
UBS calculates the CVA risk capital requirement
using both the standardized approach (SA-CVA)
and the full basic approach (BA-CVA) in line with
the final Basel III standards. The SA-CVA uses
sensitivities to market risk factors (e.g. interest rates
and credit spreads) and uses those sensitivities with
regulatory-prescribed risk weights and correlations
to arrive at a capital charge. The BA-CVA approach
is simpler and less risk sensitive.
Where the BA-CVA and the SA-CVA are applied
under the output floor calculation, the application
of internal ratings is not permitted.
Securitization exposures
in the banking book
The regulatory capital requirements are
calculated using a hierarchy of approaches. First,
the securitization internal ratings-based approach
(SEC-IRBA) is applied, if possible. If this approach
cannot be applied, one of the standardized
approaches is applied.
If the SEC-IRBA cannot be applied, the regulatory
capital requirements are calculated using the
following hierarchy of approaches: the securitization
external ratings-based approach or the
securitization standardized approach (SEC-SA).
Otherwise, a 1,250% risk weight is applied as a
fallback.
30 June 2026 Pillar 3 Report |
UBS Group | Overview of risk-weighted assets 9
Key differences between the internal model approach and the standardized approach (continued)
Internal model approach
Standardized approach
Key impact
Market risk
UBS does not apply the internal model approach
for market risk.
UBS currently applies the standardized approach of
the Fundamental Review of the Trading Book (the
FRTB) framework, in which minimum market risk
capital requirements are computed on the basis of
three components: the sensitivities-based method
(the SBM), the default risk charge (the DRC) and
the residual risk add-on (the RRAO). The SBM
captures delta, vega and curvature risk of the
underlying trading positions, the DRC uses the
jump-to-default risk in positions subject to equity
and credit risk, and positions that may not be
adequately capitalized by the SBM and the DRC
additionally attract an RRAO charge.
Where the standardized approach is applied under
the output floor calculation, the application of
internal ratings is not permitted.
The new FRTB framework replaced the VaR - and
stressed VaR-based Basel 2.5 market risk
framework.
Operational risk
Not applicable under the final Basel III standards.
The standardized approach is based on the business
indicator component, derived from financial
statement metrics, as well as the internal loss
multiplier, derived from average historical
operational losses. The new framework replaced the
advanced measurement approach.
As of 30 June 2026, the output floor is set at USD 475.0bn, representing 65% of RWA calculated using the full
standardized approach. This floor is USD 28.9bn below the actual RWA of USD 503.9bn.
During the second quarter of 2026, the difference between RWA calculated under the full standardized approach and
actual RWA decreased by USD 6.2bn, from USD 233.1bn to USD 226.9bn. This was primarily driven by RWA mitigation
actions undertaken during the quarter and currency effects, partly offset by asset size and other movements.
Credit risk RWA under the full standardized approach were higher than actual RWA. Under the standardized approach,
fixed risk weights are applied to residential mortgage exposures, depending on the LTV. The internal model-based
approach considers borrowers’ ability to service debt more accurately, including mortgage affordability and calibration
based on historic data. The Group’s residential mortgage portfolio is focused on the Swiss market, and the Group has
robust review processes in place concerning borrowers’ ability to repay. This results in the Group’s residential mortgage
portfolio having a low average LTV and consequently a lower average risk weight under the A-IRB approach compared
with the standardized approach. For Lombard lending, the average risk weight using internal models is lower than under
the standardized approach, primarily due to differences in collateral treatment. In addition, corporate exposures have
higher risk weights under the standardized approach compared with the average risk density in the modelled approach.
CCR RWA under the full standardized approach were higher than actual RWA, primarily reflecting higher risk weights
under the standardized approach compared with the IRB risk weights mainly in the corporate asset class, especially on
managed funds. In addition to risk weights, exposures calculated under the standardized approach are higher, because
the standardized approach does not fully recognize the benefits of netting, portfolio diversification and collateral.
CVA RWA calculated using the full standardized approach were higher than actual RWA, as the application of internal
ratings is not permitted under the standardized approach for output floor calculations.
RWA on securitization exposures in the banking book calculated using the full standardized approach were higher than
actual RWA, due to more conservative assumptions and less granular risk assessments permitted under the SEC-SA when
compared with the SEC-IRBA framework.
30 June 2026 Pillar 3 Report |
UBS Group | Overview of risk-weighted assets 10
CMS1: Comparison of modelled and standardized RWA at risk level
a
b
c
d
e
USD m
RWA for modelled
approaches that UBS has
FINMA approval to use
RWA for portfolios
where standardized
approaches are used
Total actual RWA
(i.e. RWA which banks
report as current
requirements)
RWA calculated using
full standardized
approach
(i.e. used in the base
of the output floor)
Output floor base
(RWA calculated
using full
standardized
approach)
1
30.6.26
1
Credit risk (excluding counterparty credit risk)
2
Counterparty credit risk
3
Credit valuation adjustment (CVA)
4
Securitization exposures in banking book
5
Market risk
6
Operational risk
7
Residual RWA
2
8
Total
3
31.3.26
1
Credit risk (excluding counterparty credit risk)
2
Counterparty credit risk
3
Credit valuation adjustment (CVA)
4
Securitization exposures in banking book
5
Market risk
6
Operational risk
7
Residual RWA
2
8
Total
3
31.12.25
1
Credit risk (excluding counterparty credit risk)
2
Counterparty credit risk
3
Credit valuation adjustment (CVA)
4
Securitization exposures in banking book
5
Market risk
6
Operational risk
7
Residual RWA
2
8
Total
3
1 As of 1 January 2026, the output floor increased to 65% from 60% in 2025. 2 Includes settlement risk, equity investments in funds and items subject to threshold deduction treatment that do not exceed their
respective threshold and are risk weighted at 250%. 3 The output floor is applied to total RWAs and not to individual risk categories.
Comparison of modelled and standardized RWA for credit risk at asset class level
Semi-annual |
The CMS2 table below elaborates on the comparison between RWA calculated under the full standardized and
the internally modelled approaches (including the IRB approach for credit risk and the supervisory slotting approach) by
focusing on RWA for credit risk at the asset-class and sub-asset-class levels.
During the first half of 2026, the difference between credit risk RWA calculated using the full standardized approach and
actual credit risk RWA decreased by USD 6.4bn, to USD 114.8bn from USD 121.2bn.
›
Refer to “Comparison of modelled and standardized RWA at risk level” in this section for information about the overall output
floor
RWA in the Retail asset class calculated using the full standardized approach were higher than actual RWA. The largest
component of the difference is observed primarily within Retail: exposures secured by real estate and Retail: other retail,
which includes Lombard lending. Under the standardized approach, fixed risk weights are applied to exposures secured
by real estate, depending on the LTV. The internal model-based approach considers borrowers’ ability to service debt
more accurately, including calibration based on historic data. The Group’s residential mortgage portfolio is focused on
the Swiss market, and the Group has robust review processes in place concerning borrowers’ ability to repay. This results
in the Group’s residential mortgage portfolio having a low average LTV and consequently a lower average risk weight
under the A-IRB approach compared with the standardized approach. For Lombard lending the average risk weight using
internal models is significantly lower than under the standardized approach, primarily due to differences in collateral
treatment.
RWA in the Corporates: other lending asset class calculated using the full standardized approach were higher than actual
RWA. The difference is primarily driven by exposures to large corporate clients, which have higher risk weights under the
standardized approach compared with the average risk weight under the modelled approach.
RWA in the Corporates: specialized lending asset class calculated using the full standardized approach were higher than
actual RWA. The difference is primarily driven by exposures related to income-producing real estate (IPRE) and object
financing. Under the standardized approach, fixed LTV-dependent risk weights are applied to exposures related to IPRE
resulting in a higher average risk weight than under the modelled approach.
30 June 2026 Pillar 3 Report |
UBS Group | Overview of risk-weighted assets 11
CMS2: Comparison of modelled and standardized RWA for credit risk at asset class level
a
b
c
d
e
USD m
RWA for modelled
approaches that UBS
has FINMA approval
to use
RWA for column (a) if
re-computed using the
standardized approach
Total actual RWA
(i.e. RWA which banks
report as current
requirements)
RWA calculated using
full standardized
approach
(i.e. used in the base
of the output floor)
Output floor base
(RWA calculated using
full standardized
approach)
1,2
30.6.26
1
Central governments, central banks and
supranational organizations
2
of which: Central governments, central banks and
supranational organizations (F-IRB)
3
of which: Central governments, central banks and
supranational organizations (A-IRB)
4
Banks
5
Public sector entities and multilateral development
banks
6
Corporates: specialized lending
7
of which: Corporates: specialized lending under the
supervisory slotting approach
8
of which: Corporates: specialized lending (F-IRB)
9
of which: Corporates: specialized lending (A-IRB)
10
Corporates: other lending
11
of which: Corporates: other lending (F-IRB)
12
of which: Corporates: other lending (A-IRB)
13
Retail
14
of which: Retail: exposures secured by real estate
15
of which: Retail: qualifying revolving retail
exposures (QRRE)
16
of which: Retail: other retail
17
Equity exposures
18
Other
19
Total
31.12.25
1
Central governments, central banks and
supranational organizations
2
of which: Central governments, central banks and
supranational organizations (F-IRB)
3
of which: Central governments, central banks and
supranational organizations (A-IRB)
4
Banks
5
Public sector entities and multilateral development
banks
6
Corporates: specialized lending
7
of which: Corporates: specialized lending under the
supervisory slotting approach
8
of which: Corporates: specialized lending (F-IRB)
9
of which: Corporates: specialized lending (A-IRB)
10
Corporates: other lending
11
of which: Corporates: other lending (F-IRB)
12
of which: Corporates: other lending (A-IRB)
13
Retail
14
of which: Retail: exposures secured by real estate
15
of which: Retail: qualifying revolving retail
exposures (QRRE)
16
of which: Retail: other retail
17
Equity exposures
18
Other
19
Total
1 As of 1 January 2026, the output floor increased to 65% from 60% in 2025. 2 Although the output floor is applied to total RWA, the output floor disclosed in this table reflects only RWA attributable to credit
risk exposures. Refer to the “CMS1: Comparison of modelled and standardized RWA at risk level” table in this section for information about non-credit risk exposures.
30 June 2026 Pillar 3 Report |
UBS Group | Credit risk 12
Credit risk
Introduction
Semi-annual |
The parameters applied under the internal ratings-based (the IRB) approach are generally based on the same
methodologies, data and systems we use for internal credit risk quantification, except where certain treatments are
specified by regulatory requirements. These include, for example, the application of regulatory prescribed floors and
multipliers, and differences with respect to eligibility criteria and exposure definitions. The exposure information presented
in this section may thus differ from our internal management view disclosed in the “Risk management and control”
sections of the quarterly and annual reports. Similarly, the regulatory capital prescribed measure of credit risk exposure
also differs from how it is defined under IFRS Accounting Standards.
Credit quality of assets
Semi-annual |
balance sheet exposures. The table also includes a breakdown of expected credit loss (ECL) accounting provisions on
exposures subject to the standardized approach and the IRB approach.
Compared with 31 December 2025, the net carrying amount of loans increased by USD 17.0bn to USD 913.2bn,
primarily driven by an increase in lending assets, mainly in Global Wealth Management and Personal & Corporate Banking,
and cash and balances at central banks.
The net carrying amount of debt securities increased by USD 0.4bn to USD 122.9bn.
The net carrying amount of off-balance sheet exposures increased by USD 9.2bn to USD 110.3bn, mainly driven by an
increase in commitments.
›
Refer to the “CR3: Credit risk mitigation techniques – overview” table in this section for more information about the net value
movements related to Loans and Debt securities shown in the table below
›
Refer to “Credit risk” in the “Risk management and control” section of the UBS Group Annual Report 2025, available under
”Annual reporting” at
ubs.com/investors
, for more information about the definitions of default and credit impairment and to
“Credit risk exposure categories” in the “Credit risk” section of the 31 December 2025 Pillar 3 Report, available under “Pillar 3
disclosures” at
ubs.com/investors
, for more information about the classification of Loans and Debt securities
CR1: Credit quality of assets
Gross carrying amounts of:
Allowances /
impairments
2
Of which: ECL accounting provisions
for credit losses on SA exposures
Of which: ECL
accounting
provisions for
credit losses on
IRB exposures
Net values
USD m
Defaulted
exposures
1
Non-defaulted
exposures
Allocated in
regulatory
category of
Specific
3
Allocated in
regulatory
category of
General
3
30.6.26
1
Loans
4
2
Debt securities
3
Off-balance sheet exposures
5
4
Total
31.12.25
1
Loans
4
2
Debt securities
3
Off-balance sheet exposures
5
4
Total
1 Defaulted exposures include stage 3 and defaulted purchased credit-impaired (PCI) assets under IFRS 9. Refer to “Note 8 Expected credit loss measurement” in the “Consolidated financial statements” section of
the UBS Group 30 June 2026 Interim Report, available under “Quarterly reporting” at ubs.com/investors, for more information about IFRS 9. 2 Expected credit loss (ECL) allowances and provisions amounted to
USD 3,189m as of 30 June 2026, as disclosed in “Note 8 Expected credit loss measurement” in the “Consolidated financial statements” section of the UBS Group 30 June 2026 Interim Report, available under
“Quarterly reporting” at ubs.com/investors. This Pillar 3 table excludes ECL toward securitization exposures, revocable off-balance sheet exposures, ECL on irrevocable committed prolongation of loans that do not
give rise to additional credit exposures and exposures subject to counterparty credit risk. 3 Specific provisions include stage 3 ECL allowances and additional ECL allowances on defaulted PCI assets. General
provisions include stage 1 and 2 ECL allowances and additional ECL allowances on non-defaulted PCI assets. 4 Loan exposure is reported in line with the Pillar 3 definition. Refer to “Credit risk exposure categories”in
the “Credit risk“ section of the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information about the classification of Loans and Debt securities. 5 Off-balance
sheet exposures include unutilized credit facilities, guarantees provided and forward starting loan commitments but exclude prolongations of loans that do not increase the initially committed loan amount. Unutilized
credit facilities exclude unconditionally revocable and uncommitted credit facilities, even if they attract RWA.
30 June 2026 Pillar 3 Report |
UBS Group | Credit risk 13
Semi-annual |
exposures for the first half of 2026. The total amount of defaulted loans and debt securities decreased by USD 0.1bn to
USD 7.4bn compared with 31 December 2025.
CR2: Changes in stock of defaulted loans, debt securities and off-balance sheet exposures
USD m
For the half year
ended 30.6.26
1
For the half year
ended 31.12.25
1
1
Defaulted loans, debt securities and off-balance sheet exposures as of the beginning of the half year
2
Loans, debt securities and off-balance sheet exposures that have defaulted since the last reporting period
3
Returned to non-defaulted status
4
Amounts written off
5
Other changes
2
6
Defaulted loans, debt securities and off-balance sheet exposures as of the end of the half year
1 Off-balance sheet exposures include unutilized credit facilities, guarantees provided and forward starting loan commitments but exclude prolongations of loans that do not increase the initially committed loan
amount. Unutilized credit facilities exclude unconditionally revocable and uncommitted credit facilities, even if they attract RWA. 2 Includes primarily partial or full repayments, as well as currency effects.
Credit risk mitigation
Semi-annual |
secured exposures, with additional information about the security type.
Compared with 31 December 2025, the carrying amount of unsecured loans increased by USD 4.5bn to USD 276.3bn,
primarily driven by an increase in cash and balances at central banks.
The carrying amount of partially or fully secured loans increased by USD 12.5bn to USD 636.9bn, mainly due to an
increase in lending assets in Global Wealth Management and Personal & Corporate Banking.
The carrying amount of unsecured debt securities increased by USD 0.4bn to USD 122.4bn.
CR3: Credit risk mitigation techniques – overview
1
Secured portion of exposures partially or fully secured:
USD m
Exposures fully
unsecured: carrying
amount
Exposures partially
or fully secured:
carrying amount
Total: carrying
amount
Exposures secured
by collateral
Exposures secured
by financial
guarantees
Exposures secured
by credit derivatives
30.6.26
1
Loans
2
1a
of which: cash and balances at central
banks
2
Debt securities
3
Total
3
4
of which: defaulted
4
31.12.25
1
Loans
2
1a
of which: cash and balances at central
banks
2
Debt securities
3
Total
3
4
of which: defaulted
4
1 Exposures in this table represent carrying amounts in accordance with the regulatory scope of consolidation. 2 Loan exposure is reported in line with the Pillar 3 definition. Refer to “Credit risk exposure categories”
in the “Credit risk” section of the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information about the classification of Loans and Debt securities. 3 Eligible
financial collateral under the IRB approach is recognized in the LGD parameter. The exposure secured by collateral for IRB represents the collateral amounts received prior to any haircuts but subject to the maximum
of the exposure carrying value. 4 Includes defaulted purchased credit-impaired assets.
30 June 2026 Pillar 3 Report |
UBS Group | Credit risk 14
Credit risk under the standardized approach
Introduction
The standardized approach is generally applied where using the IRB approach is not feasible. Under the standardized
approach we use, where possible, credit ratings from external credit assessment institutions to determine the risk
weightings applied to rated counterparties.
Credit risk exposure and credit risk mitigation effects
Semi-annual |
calculation of capital requirements under the standardized approach. Exposures in the following narratives represent
exposure at default (EAD) after the application of credit conversion factors (CCF) and CRM.
Compared with 31 December 2025, exposures decreased by USD 18.9bn to USD 96.6bn, and RWA decreased by
USD 5.1bn to USD 56.9bn.
–
Exposures to Central governments, central banks and supranational organizations decreased by USD 8.4bn to
USD 11.7bn, and RWA decreased by USD 0.9bn to USD 0.1bn, mainly due to increased use of the IRB approach.
–
Exposures to Public sector entities decreased by USD 3.4bn to USD 6.1bn, and RWA decreased by USD 0.9bn to
USD 1.7bn, primarily driven by lower high-quality liquid asset (HQLA) portfolio securities in Group Treasury.
–
Exposures to Banks decreased by USD 2.8bn to USD 16.8bn, and RWA decreased by USD 0.9bn to USD 6.0bn, mainly
due to a decrease in amounts due from banks and lower HQLA portfolio securities in Group Treasury.
–
Exposures to Corporates decreased by USD 1.7bn to USD 24.6bn, and RWA decreased by USD 0.8bn to USD 19.0bn,
mainly driven by the use of the IRB approach for recourse-based lending in Global Wealth Management, partly offset
by increases in loans and loan commitments in the Investment Bank.
–
Retail exposures decreased by USD 1.6bn to USD 4.9bn, and RWA decreased by USD 1.1bn to USD 5.3bn, primarily in
Personal & Corporate Banking from the sale of our 50% interest in Swisscard AECS GmbH.
30 June 2026 Pillar 3 Report |
UBS Group | Credit risk 15
CR4: Standardized approach – credit risk exposure and credit risk mitigation (CRM) effects
Exposures
before CCF and CRM
Exposures
post CCF and CRM
RWA and RWA density
USD m, except where indicated
On-balance
sheet
amount
Off-balance
sheet
amount
Total
On-balance
sheet
amount
Off-balance
sheet
amount
Total
RWA
RWA density
in %
30.6.26
Asset classes
1
Central governments, central banks and supranational
organizations
2
Public sector entities
3
Multilateral development banks
4
Banks
4a
of which: Swiss account-holding securities firms and other
non-bank financial institutions subject to equivalent
prudential standards and supervision
5
Covered bonds
1
5a
of which: Swiss covered bonds
6
Corporates
6a
of which: Swiss non-account-holding securities firms and
other financial institutions not subject to equivalent
prudential standards and supervision
6b
of which: specialized lending
7
Subordinated debt, equity exposures and other capital
instruments
8
Retail
9
Real estate
9a
of which: own-used RRE
9b
of which: IPRRE
9c
of which: own-used CRE
9d
of which: IPCRE
9e
of which: land acquisition, development and construction
10
Defaulted exposures
11
Other assets
12
Total
31.12.25
Asset classes
1
Central governments, central banks and supranational
organizations
2
Public sector entities
3
Multilateral development banks
4
Banks
4a
of which: Swiss account-holding securities firms and other
non-bank financial institutions subject to equivalent
prudential standards and supervision
5
Covered bonds
1
5a
of which: Swiss covered bonds
6
Corporates
6a
of which: Swiss non-account-holding securities firms and
other financial institutions not subject to equivalent
prudential standards and supervision
6b
of which: specialized lending
7
Subordinated debt, equity exposures and other capital
instruments
8
Retail
9
Real estate
9a
of which: own-used RRE
9b
of which: IPRRE
9c
of which: own-used CRE
9d
of which: IPCRE
9e
of which: land acquisition, development and construction
10
Defaulted exposures
11
Other assets
12
Total
1 Covered bond exposures reported under the preferential risk weight treatment relate exclusively to Swiss covered bonds issued under the Swiss covered bonds regulation (Pfandbriefgesetz). All other covered bonds
are presented in the asset classes based on the issuer counterparty.
30 June 2026 Pillar 3 Report |
UBS Group | Credit risk 16
Exposures by asset classes and risk weights
Semi-annual |
are after the application of CCFs and CRM.
CR5: Standardized approach – exposures by asset classes and risk weights – excluding Real estate
USD m
Risk weight
0%
10%
15%
20%
25%
30%
35%
40%
45%
50%
65%
75%
80%
85%
100%
130%
150%
250%
400%
1,250%
Other
Total
credit
exposures
amount
30.6.26
Asset class
1
Central governments, central banks
and supranational organizations
2
Public sector entities
3
Multilateral development banks
4
Banks
4a
of which: Swiss account-holding
securities firms and other non-bank
financial institutions subject to
equivalent prudential standards and
supervision
5
Covered bonds
5a
of which: Swiss Covered Bonds
6
Corporates
1
6a
of which: Swiss non-account-
holding securities firms and other
financial institutions not subject to
equivalent prudential standards and
supervision
6b
of which: specialized lending
7
Subordinated debt, equity exposures
and other capital instruments
8
Retail
10
Defaulted exposures
11
Other assets
12
Total
1 Includes exposures secured by credit derivatives cleared through central counterparties risk-weighted at 2% or 4%.
30 June 2026 Pillar 3 Report |
UBS Group | Credit risk 17
CR5: Standardized approach – exposures by asset classes and risk weights – Real estate (continued)
USD m
Risk weight
0%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
85%
90%
100%
105%
110%
115%
150%
Other
Total
credit
exposures
amount
30.6.26
Asset class
9
Real estate
9a
of which: own-used RRE
9b
of which: IPRRE
9c
of which: own-used CRE
9d
of which: IPCRE
9e
of which: land acquisition,
development and construction
30 June 2026 Pillar 3 Report |
UBS Group | Credit risk 18
CR5: Standardized approach – exposures by asset classes and risk weights – excluding Real estate (continued)
USD m
Risk weight
0%
10%
15%
20%
25%
30%
35%
40%
45%
50%
65%
75%
80%
85%
100%
130%
150%
250%
400%
1,250%
Other
Total
credit
exposures
amount
31.12.25
Asset class
1
Central governments, central banks
and supranational organizations
2
Public sector entities
3
Multilateral development banks
4
Banks
4a
of which: Swiss account-holding
securities firms and other non-bank
financial institutions subject to
equivalent prudential standards and
supervision
5
Covered bonds
5a
of which: Swiss Covered Bonds
6
Corporates
6a
of which: Swiss non-account-
holding securities firms and other
financial institutions not subject to
equivalent prudential standards and
supervision
6b
of which: specialized lending
7
Subordinated debt, equity exposures
and other capital instruments
8
Retail
10
Defaulted exposures
11
Other assets
12
Total
30 June 2026 Pillar 3 Report |
UBS Group | Credit risk 19
CR5: Standardized approach – exposures by asset classes and risk weights – Real estate (continued)
USD m
Risk weight
0%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
85%
90%
100%
105%
110%
115%
150%
Other
Total
credit
exposures
amount
31.12.25
Asset class
9
Real estate
9a
of which: own-used RRE
9b
of which: IPRRE
9c
of which: own-used CRE
9d
of which: IPCRE
9e
of which: land acquisition,
development and construction
30 June 2026 Pillar 3 Report |
UBS Group | Credit risk 20
Semi-annual |
buckets, including what average CCFs are applied to off-balance sheet exposures.
CR5: Exposure amounts and CCFs applied to off-balance sheet exposures, categorised based on risk bucket of
converted exposures
USD m, except where indicated
On-balance sheet
exposure (pre-CRM)
Off-balance sheet
exposure (pre-CCF and
pre-CRM)
Weighted average CCF
in %
Exposure (post CCF and
CRM)
30.6.26
Risk weight
1
Less than 40%
2
40-70%
3
75%
4
85%
5
90-100%
6
105-130%
7
150%
8
250%
9
400%
10
1,250%
11
Total
31.12.25
Risk weight
1
Less than 40%
2
40-70%
3
75%
4
85%
5
90-100%
6
105-130%
7
150%
8
250%
9
400%
10
1,250%
11
Total
Credit risk under the IRB approach
Introduction
The IRB approach includes the advanced IRB (A-IRB) approach and, under the final Basel III standards from 1 January
2025 onward, the foundation IRB (F-IRB) approach for exposures to banks, public sector entities and multilateral
development banks, and large corporate clients. Under the A-IRB approach the required capital for credit risk is quantified
through empirical models that we have developed to estimate the probability of default (PD), loss given default (LGD),
exposure at default (EAD) and other parameters, subject to approval by the Swiss Financial Market Supervisory Authority
(FINMA). Under the F-IRB approach banks are permitted to use their own internal estimates for the PD.
›
Refer to “Credit risk under the IRB approach” in the “Credit risk” section of the 31 December 2025 Pillar 3 Report, available under
“Pillar 3 disclosures” at
ubs.com/investors
, for information about our key credit risk models
Credit risk exposures by portfolio and PD range
Semi-annual |
breakdown of the main parameters used in IRB models to calculate the capital requirements, presented by portfolio and
PD range across FINMA-defined asset classes. Exposures in the following narratives represent EAD after the application
of CCF and CRM.
Compared with 31 December 2025, exposures increased by USD 45.4bn to USD 1,067.6bn, and RWA increased by
USD 4.0bn to USD 197.8bn.
–
Exposures to Central governments, central banks and supranational organizations subject to the A-IRB approach
increased by USD 24.4bn to USD 295.7bn, and RWA increased by USD 1.1bn to USD 8.2bn, mainly driven by increases
in cash and balances at central banks and HQLA portfolio securities, and the increased use of the IRB approach.
–
Exposures to Corporates: other lending subject to the A-IRB approach increased by USD 3.8bn to USD 55.4bn, and
RWA increased by USD 0.7bn to USD 29.9bn, mainly driven by model updates and methodology changes during the
first half of 2026, relating to the application of the IRB approach on recourse-based lending in Global Wealth
Management and higher RWA from Swiss corporate exposures in Personal & Corporate Banking. This was partly offset
by a decrease in the overlay for uncertainties associated with the alignment of models and RWA calculations in legacy
Credit Suisse platforms with those of UBS, following the completion of the Swiss client account and platform
migrations, in Personal & Corporate Banking and Global Wealth Management.
–
Retail exposures secured by real estate subject to the A-IRB approach increased by USD 2.4bn to USD 328.2bn, and
RWA increased by USD 1.3bn to USD 63.6bn, primarily due to increases in loans and loan commitments.
–
Other retail exposures subject to the A-IRB approach increased by USD 10.8bn to USD 230.4bn, and RWA decreased
by USD 0.1bn to USD 25.2bn, mainly driven by increases in loans and loan commitments in Global Wealth
30 June 2026 Pillar 3 Report |
UBS Group | Credit risk 21
Management and following the migration of exposures from Credit Suisse models.
–
Exposures to Banks subject to the F-IRB approach increased by USD 2.0bn to USD 14.8bn, and RWA decreased by
USD 0.4bn to USD 5.6bn, mainly driven by an increase in amounts due from banks and changes in the portfolio mix.
–
Exposures to Corporates: other lending subject to the F-IRB approach increased by USD 1.8bn to USD 67.2bn, and
RWA increased by USD 0.8bn to USD 34.1bn, mainly due to an increase in loans and loan commitments and various
model updates and methodology changes.
›
Refer to the “CR8: RWA flow statements of credit risk exposures under IRB” table in this section for more information about the
movement of credit risk exposures under the IRB approach
30 June 2026 Pillar 3 Report |
UBS Group | Credit risk 22
CR6: IRB – Credit risk exposures by portfolio and PD range
USD m, except where indicated
Original on-
balance sheet
gross exposure
Off-balance
sheet
exposures pre-
CCF
Total
exposures
pre-CCF
Average CCF
in %
EAD post-CCF
and post-CRM
Average PD
in %
Number of
obligors (in
thousands)
Average LGD
in %
1
Average
maturity
in years
1
RWA
RWA density
in %
EL
Provisions
2
Central governments, central banks and supranational organizations –
A-IRB as of 30.6.26
0.00 to <0.15
<0.1
0.15 to <0.25
<0.1
0.25 to <0.50
<0.1
0.50 to <0.75
0.75 to <2.50
<0.1
2.50 to <10.00
<0.1
10.00 to <100.00
<0.1
100.00 (default)
3
<0.1
Subtotal
<0.1
Central governments, central banks and supranational organizations –
A-IRB as of 31.12.25
0.00 to <0.15
<0.1
0.15 to <0.25
<0.1
0.25 to <0.50
<0.1
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
<0.1
10.00 to <100.00
<0.1
100.00 (default)
3
<0.1
Subtotal
<0.1
Corporates: specialized lending – A-IRB as of 30.6.26
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
3
<0.1
Subtotal
Corporates: specialized lending – A-IRB as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
3
<0.1
Subtotal
30 June 2026 Pillar 3 Report |
UBS Group | Credit risk 23
CR6: IRB – Credit risk exposures by portfolio and PD range (continued)
USD m, except where indicated
Original on-
balance sheet
gross exposure
Off-balance
sheet
exposures pre-
CCF
Total
exposures
pre-CCF
Average CCF
in %
EAD post-CCF
and post-CRM
Average PD
in %
Number of
obligors (in
thousands)
Average LGD
in %
1
Average
maturity
in years
1
RWA
RWA density
in %
EL
Provisions
2
Corporates: other lending – A-IRB as of 30.6.26
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
3
Subtotal
Corporates: other lending – A-IRB as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
3
Subtotal
Retail: exposures secured by real estate – A-IRB as of 30.6.26
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
3
Subtotal
Retail: exposures secured by real estate – A-IRB as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
3
Subtotal
30 June 2026 Pillar 3 Report |
UBS Group | Credit risk 24
CR6: IRB – Credit risk exposures by portfolio and PD range (continued)
USD m, except where indicated
Original on-
balance sheet
gross exposure
Off-balance
sheet
exposures pre-
CCF
Total
exposures
pre-CCF
Average CCF
in %
EAD post-CCF
and post-CRM
Average PD
in %
Number of
obligors (in
thousands)
Average LGD
in %
1
Average
maturity
in years
1
RWA
RWA density
in %
EL
Provisions
2
Retail: qualifying revolving retail exposures (QRRE) – A-IRB
as of 30.6.26
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
3
Subtotal
Retail: qualifying revolving retail exposures (QRRE) – A-IRB as of
31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
3
Subtotal
Retail: other retail – A-IRB as of 30.6.26
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
3
Subtotal
Retail: other retail – A-IRB as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
3
Subtotal
Total – A-IRB 30.6.26
Total – A-IRB 31.12.25
30 June 2026 Pillar 3 Report |
UBS Group | Credit risk 25
CR6: IRB – Credit risk exposures by portfolio and PD range (continued)
USD m, except where indicated
Original on-
balance sheet
gross exposure
Off-balance
sheet
exposures pre-
CCF
Total
exposures
pre-CCF
Average CCF
in %
EAD post-CCF
and post-CRM
Average PD
in %
Number of
obligors (in
thousands)
Average LGD
in %
1
Average
maturity
in years
1
RWA
RWA density
in %
EL
Provisions
2
Banks – F-IRB as of 30.6.26
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
<0.1
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
<0.1
10.00 to <100.00
<0.1
100.00 (default)
3
<0.1
Subtotal
Banks – F-IRB as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
<0.1
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
3
Subtotal
Public sector entities, multilateral development banks – F-IRB
as of 30.6.26
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
<0.1
10.00 to <100.00
<0.1
100.00 (default)
3
<0.1
Subtotal
Public sector entities, multilateral development banks – F-IRB
as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
<0.1
10.00 to <100.00
100.00 (default)
3
<0.1
Subtotal
30 June 2026 Pillar 3 Report |
UBS Group | Credit risk 26
CR6: IRB – Credit risk exposures by portfolio and PD range (continued)
USD m, except where indicated
Original on-
balance sheet
gross exposure
Off-balance
sheet
exposures pre-
CCF
Total
exposures
pre-CCF
Average CCF
in %
EAD post-CCF
and post-CRM
Average PD
in %
Number of
obligors (in
thousands)
Average LGD
in %
1
Average
maturity
in years
1
RWA
RWA density
in %
EL
Provisions
2
Corporates: other lending – F-IRB as of 30.6.26
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
3
<0.1
Subtotal
Corporates: other lending – F-IRB as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
3
<0.1
Subtotal
Total – F-IRB 30.6.26
Total – F-IRB 31.12.25
Total (all asset classes under A-IRB and F-IRB) 30.6.26
Total (all asset classes under A-IRB and F-IRB) 31.12.25
1 Defaulted exposures disclosed in the table are excluded from average loss given default and average maturity information as not relevant for risk weighting. Furthermore, Retail asset classes are excluded from the average maturity, as maturity is not relevant for risk weighting. 2 In line with BCBS Pillar 3 disclosure
requirements, provisions are only provided for the subtotals by asset class. Provisions reflect IFRS Accounting Standards expected credit losses accounting provisions for credit losses on IRB exposures. 3 Includes defaulted purchased credit-impaired assets.
30 June 2026 Pillar 3 Report |
UBS Group | Credit risk 27
Credit derivatives used as CRM techniques
Semi-annual |
Where credit derivatives are used as CRM techniques, the PD of the obligor is in general replaced with the PD of
the hedge provider. The impact of credit derivatives used as CRM techniques on IRB credit risk has been immaterial for past
reporting periods and continued to be immaterial for this reporting period. Therefore, we do not disclose the “CR7: IRB –
Effect on RWA of credit derivatives used as CRM techniques” table, as permitted by the general principles of disclosure of
the FINMA Ordinance on the Disclosure Obligations of Banks and Securities Firms.
›
Refer to the “CCR6: Credit derivatives exposures” table in the “Counterparty credit risk” section of this report for notional and fair
value information about credit derivatives used as CRM techniques
RWA flow statements of credit risk exposures under the internal ratings-based approach
Quarterly |
movement categories defined by the Basel Committee on Banking Supervision.
Credit risk RWA under the IRB approach increased by USD 2.1bn to USD 199.2bn during the second quarter of 2026.
This balance reflects credit risk under the IRB approach, including the supervisory slotting approach.
Movements in asset size decreased RWA by USD 0.2bn.
Movements in asset quality increased RWA by USD 3.2bn, mainly due to changes in the portfolio mix, including those
from decreases in cash and balances at central banks.
Model updates decreased RWA by USD 0.6bn, reflecting a decrease in the overlay for uncertainties associated with the
alignment of models and RWA calculations in legacy Credit Suisse platforms with those of UBS, following the completion
of the Swiss client account and platform migrations, in Personal & Corporate Banking and Global Wealth Management.
This was partly offset by increases in RWA from model updates on mortgage loans in Personal & Corporate Banking.
Methodology and policy changes resulted in an RWA increase of USD 1.0bn, mainly due to the application of the IRB
approach on recourse-based lending in Global Wealth Management.
Currency effects, driven by the strengthening of the US dollar against other major currencies, resulted in a USD 1.4bn
decrease of in RWA.
›
Refer to “Definitions of credit risk and counterparty credit risk RWA movement table components for CR8 and CCR7” in the
“Credit risk” section of the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for
definitions of credit risk RWA movement table components
CR8: RWA flow statements of credit risk exposures under IRB
USD m
For the quarter
ended 30.6.26
For the quarter
ended 31.3.26
1
RWA as of the beginning of the quarter
2
Asset size
3
Asset quality
4
Model updates
5
Methodology and policy
6
Acquisitions and disposals
7
Foreign exchange movements
8
Other
9
RWA as of the end of the quarter
30 June 2026 Pillar 3 Report |
UBS Group | Credit risk 28
Specialized lending
Semi-annual |
approach.
CR10: IRB – specialized lending under the slotting approach
USD m, except where indicated
On-balance sheet
amount
Off-balance sheet
amount
Risk weight
in %
Exposure amount
1
RWA
EL
30.6.26
Other than high-volatility commercial real estate
Regulatory categories and remaining maturity
Strong
Less than 2.5 years
Equal to or more than 2.5 years
Good
Less than 2.5 years
Equal to or more than 2.5 years
Satisfactory
Weak
Default
Total
31.12.25
Other than high-volatility commercial real estate
Regulatory categories and remaining maturity
Strong
Less than 2.5 years
Equal to or more than 2.5 years
Good
Less than 2.5 years
Equal to or more than 2.5 years
Satisfactory
Weak
Default
Total
1 Exposure amounts in connection with income-producing real estate.
30 June 2026 Pillar 3 Report |
UBS Group | Counterparty credit risk 29
Counterparty credit risk
Introduction
Semi-annual I
This section provides information about the exposures subject to the final Basel III counterparty credit risk (CCR)
framework. CCR arises from over-the-counter derivatives and exchange-traded derivatives, securities financing
transactions (SFTs), and long settlement transactions. We determine the regulatory credit exposure on the majority of
derivatives by applying the internal model method (the IMM). For the remainder we apply the standardized approach for
counterparty credit risk (SA-CCR). For the majority of SFTs we determine the regulatory credit exposure using the value-
at-risk (VaR) approach. For the remainder we apply the comprehensive approach for credit risk mitigation (CRM).
Counterparty credit risk exposure
Semi-annual I
The CCR1 table below presents the methods used to calculate CCR exposure. Compared with 31 December
2025, derivative exposures subject to SA-CCR increased by USD 4.7bn, mainly in Global Wealth Management, due to
market-driven movements and higher levels of client activity. Derivative exposures subject to IMM increased by
USD 1.4bn, mainly in Personal & Corporate Banking and the Investment Bank. SFT exposures subject to the
comprehensive approach for credit risk mitigation and the VaR approach increased by USD 1.6bn and USD 1.5bn,
respectively, mainly in the Investment Bank.
CCR1: Analysis of counterparty credit risk (CCR) exposure by approach
Replacement
cost
Potential future
exposure
Effective
EPE
Alpha used for
computing
regulatory EAD
EAD
post-CRM
RWA
30.6.26
1
SA-CCR (for derivatives)
2
Internal model method (for derivatives)
1
3
Simple approach for credit risk mitigation (for SFTs)
4
Comprehensive approach for credit risk mitigation (for SFTs)
5
VaR (for SFTs)
6
Total
31.12.25
1
SA-CCR (for derivatives)
2
Internal model method (for derivatives)
1
3
Simple approach for credit risk mitigation (for SFTs)
4
Comprehensive approach for credit risk mitigation (for SFTs)
5
VaR (for SFTs)
6
Total
1 A conservative treatment for the purpose of calculating exposure profiles is applied to material trades with wrong-way risk features, along with an alpha factor of 1.0.
CCR exposure subject to the standardized approach
Semi-annual |
The “CCR3: Standardized approach – CCR exposures by regulatory portfolio and risk weights” table is disclosed
as of 30 June 2026. Comparative information for prior periods has not been disclosed, due to low materiality.
›
Refer to the “CCR4: IRB – CCR exposures by portfolio and PD scale” and the “CCR8: Exposures to central counterparties” tables in
this section for more information about CCR exposures subject to internal ratings-based (IRB) risk weights and central
counterparties (CCPs), respectively
30 June 2026 Pillar 3 Report | UBS Group | Counterparty credit risk
CCR3: Standardized approach – CCR exposures by regulatory portfolio and risk weights
USD m
Risk weight %
0%
10%
15%
20%
25%
30%
35%
40%
45%
50%
75%
80%
85%
90%
100%
130%
150%
Total credit
exposure
30.6.26
Asset classes
1
Central governments, central banks and supranational organizations
2
4
6
2
Public sector entities
119
118
18
255
3
Multilateral development banks
2
2
4
Banks
510
339
0
120
3
25
213
1,211
4a
of which: Swiss account-holding securities firms and other non-bank
financial institutions subject to equivalent prudential standards and
supervision
5
Corporates
29
6
36
3,641
13
3,724
5a
of which: Swiss non-account-holding securities firms and other financial
institutions not subject to equivalent prudential standards and supervision
13
13
6
Retail
1,096
1,096
7
Other assets
8
Total
4
658
339
0
245
39
4,784
226
6,295
30 June 2026 Pillar 3 Report |
UBS Group | Counterparty credit risk 31
CCR exposure subject to the IRB approach
Semi-annual |
The CCR4 table below provides a breakdown of the key parameters used for the calculation of capital
requirements under the IRB approach across asset classes defined by the Swiss Financial Market Supervisory Authority
(FINMA). Exposures in the following narrative represent exposure at default (EAD) after the application of credit risk
mitigation.
Compared with 31 December 2025, EAD increased by USD 10.8bn to USD 125.8bn, and risk-weighted assets (RWA)
increased by USD 1.6bn to USD 26.7bn.
–
Exposures to Central governments, central banks and supranational organizations subject to the advanced IRB (A-IRB)
approach increased by USD 3.0bn to USD 8.3bn, mainly because of increased activity in SFTs in Group Treasury. RWA
decreased by USD 0.1bn to USD 0.2bn.
–
Other retail exposures subject to the A-IRB approach increased by USD 3.3bn to USD 21.4bn, and RWA increased by
USD 0.8bn to USD 2.9bn, primarily due to market-driven movements and higher levels of client activity in Global
Wealth Management.
–
Exposures to Banks subject to the foundation IRB (F-IRB) approach decreased by USD 0.4bn to USD 27.0bn, and RWA
increased by USD 0.8bn to USD 6.7bn, mainly driven by changes in the portfolio mix for SFTs in Group Treasury and
the Investment Bank.
–
Exposures to Corporates subject to the F-IRB approach increased by USD 5.4bn to USD 62.2bn, and RWA increased by
USD 0.3bn to USD 14.6bn, mainly due to increases in SFTs in the Investment Bank and derivative exposures in Personal
& Corporate Banking and the Investment Bank, including changes in the portfolio mix.
›
Refer to the “CCR7: RWA flow statements of CCR exposures under the internal model method (IMM) and value-at-risk (VaR)” table
in this section for more information about RWA, including details of movements in CCR RWA
30 June 2026 Pillar 3 Report |
UBS Group | Counterparty credit risk 32
CCR4: IRB – CCR exposures by portfolio and PD scale
USD m, except where indicated
EAD post-CRM
Average PD
in %
Number of obligors
(in thousands)
Average LGD
in %
1
Average maturity
in years
1
RWA
RWA density
in %
Central governments, central banks and supranational organizations
– A-IRB as of 30.6.26
0.00 to <0.15
<0.1
0.15 to <0.25
<0.1
0.25 to <0.50
<0.1
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
Subtotal
<0.1
Central governments, central banks and supranational organizations
– A-IRB as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
Subtotal
Corporates – A-IRB as of 30.6.26
2
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
<0.1
Subtotal
Corporates – A-IRB as of 31.12.25
2
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
<0.1
Subtotal
Retail: other retail – A-IRB as of 30.6.26
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
<0.1
100.00 (default)
<0.1
Subtotal
Retail: other retail – A-IRB as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
Subtotal
Total – A-IRB 30.6.26
Total – A-IRB 31.12.25
30 June 2026 Pillar 3 Report |
UBS Group | Counterparty credit risk 33
CCR4: IRB – CCR exposures by portfolio and PD scale (continued)
USD m, except where indicated
EAD post-CRM
Average PD
in %
Number of obligors
(in thousands)
Average LGD
in %
1
Average maturity
in years
1
RWA
RWA density
in %
Banks – F-IRB as of 30.6.26
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
<0.1
0.75 to <2.50
<0.1
2.50 to <10.00
<0.1
10.00 to <100.00
100.00 (default)
Subtotal
Banks – F-IRB as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
Subtotal
Public sector entities, multilateral development banks – F-IRB
as of 30.6.26
0.00 to <0.15
<0.1
0.15 to <0.25
<0.1
0.25 to <0.50
<0.1
0.50 to <0.75
<0.1
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
<0.1
Subtotal
Public sector entities, multilateral development banks – F-IRB
as of 31.12.25
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
Subtotal
Corporates – F-IRB as of 30.6.26
2
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
Subtotal
Corporates – F-IRB as of 31.12.25
2
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (default)
Subtotal
Total – F-IRB 30.6.26
Total – F-IRB 31.12.25
Total (all asset classes under A-IRB and F-IRB) 30.6.26
Total (all asset classes under A-IRB and F-IRB) 31.12.25
1 Defaulted exposures disclosed in the table are excluded from average loss given default and average maturity information as not relevant for risk weighting. Furthermore, Retail asset classes are excluded from the
average maturity, as they are not subject to maturity treatment. 2 Includes exposures to managed funds.
30 June 2026 Pillar 3 Report |
UBS Group | Counterparty credit risk 34
Composition of collateral for CCR exposure
Semi-annual |
The CCR5 table below presents a breakdown of collateral posted or received relating to CCR exposures from
derivative transactions and SFTs.
Compared with 31 December 2025, the fair value of collateral received for SFTs increased by USD 134.8bn to
USD 1,018.2bn, and the fair value of posted collateral for SFTs increased by USD 98.4bn to USD 741.8bn. The fair value
of collateral received for derivatives increased by USD 13.4bn to USD 123.9bn, and the fair value of posted collateral for
derivatives increased by USD 12.3bn to USD 96.7bn. These increases were primarily in the Investment Bank, mainly as a
result of higher client activity levels, as well as market-driven movements.
CCR5: Composition of collateral for CCR exposure
1
Collateral used in derivative transactions
Collateral used in SFTs
Fair value of collateral received
2
Fair value of posted collateral
Fair value of
collateral received
Fair value of
posted collateral
USD m
Segregated
Unsegregated
Total
Segregated
Unsegregated
Total
30.6.26
Cash – domestic currency
Cash – other currencies
Sovereign debt
Other debt securities
Equity securities
Other collateral
3
Total
31.12.25
Cash – domestic currency
Cash – other currencies
Sovereign debt
Other debt securities
Equity securities
Other collateral
3
Total
1 This table includes collateral received and posted with and without the right of rehypothecation but excludes securities placed with central banks related to undrawn credit lines and for payment, clearing and
settlement purposes for which there were no associated liabilities or contingent liabilities. 2 Includes collateral received from retail clients supporting Lombard lending and other retail products, where such collateral
is recognized under the full standardized approach for derivatives. 3 Includes fund investments, asset-backed securities and mortgage-backed securities.
Credit derivatives exposures
Semi-annual |
The CCR6 table below presents an overview of credit risk protection bought or sold through credit derivatives.
Compared with 31 December 2025, notionals for credit derivatives for protection bought increased by USD 19.4bn to
USD 122.2bn, primarily driven by portfolio optimization for credit hedging activities in index credit default swaps in Group
Treasury and by higher volumes in single-name credit default swaps, as well as credit options in the Investment Bank.
Notionals for derivatives for protection sold decreased by USD 3.0bn to USD 76.8bn, primarily driven by index credit
default swaps due to lower trade volumes in the Investment Bank.
CCR6: Credit derivatives exposures
30.6.26
31.12.25
USD m
Protection
bought
Protection
sold
Protection
bought
Protection
sold
Notionals
1
Single-name credit default swaps
Index credit default swaps
Total return swaps
Credit options
Total notionals
Fair values
Derivative financial assets
Derivative financial liabilities
1 Includes notional amounts for client-cleared transactions.
30 June 2026 Pillar 3 Report |
UBS Group | Counterparty credit risk 35
CCR RWA development in the second quarter of 2026
Quarterly |
The CCR7 table below presents a flow statement explaining movements in CCR RWA determined under the IMM
for derivatives and the VaR approach for SFTs across movement categories defined by FINMA and the Basel Committee
on Banking Supervision.
During the second quarter of 2026, the decrease in RWA for derivatives subjected to IMM was primarily driven by market-
driven movements and changes in the portfolio mix, mainly in the Investment Bank. The increase in RWA for SFTs under
the VaR approach was mainly related to changes in the portfolio mix, primarily in the Investment Bank.
›
Refer to “Definitions of credit risk and counterparty credit risk RWA movement table components for CR8 and CCR7” in the
“Credit risk” section of the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for
definitions of CCR RWA movement table components
CCR7: RWA flow statements of CCR exposures under the internal model method (IMM) and value-at-risk (VaR)
For the quarter ended 30.6.26
For the quarter ended 31.3.26
USD m
Derivatives
SFTs
Total
Derivatives
SFTs
Total
Subject to IMM
Subject to VaR
Subject to IMM
Subject to VaR
1
RWA as of the beginning of the quarter
2
Asset size
3
Credit quality of counterparties
4
Model updates
5
Methodology and policy
6
Acquisitions and disposals
7
Foreign exchange movements
8
Other
9
RWA as of the end of the quarter
Exposures to CCPs
Semi-annual |
The CCR8 table below presents a breakdown of exposures to CCPs and related RWA. Compared with
31 December 2025, exposures to qualifying CCPs increased by USD 0.2bn to USD 36.4bn.
CCR8: Exposures to central counterparties
30.6.26
31.12.25
USD m
EAD (post-CRM)
RWA
EAD (post-CRM)
RWA
1
Exposures to QCCPs (total)
1
2
Exposures for trades at QCCPs (excluding initial margin and default fund contributions); of which
3
(i) OTC derivatives
4
(ii) Exchange-traded derivatives
5
(iii) Securities financing transactions
6
(iv) Netting sets where cross-product netting has been approved
7
Segregated initial margin
8
Non-segregated initial margin
2
9
Pre-funded default fund contributions
10
Unfunded default fund contributions
11
Exposures to non-QCCPs (total)
12
Exposures for trades at non-QCCPs (excluding initial margin and default fund contributions); of which
13
(i) OTC derivatives
14
(ii) Exchange-traded derivatives
15
(iii) Securities financing transactions
16
(iv) Netting sets where cross-product netting has been approved
17
Segregated initial margin
18
Non-segregated initial margin
2
19
Pre-funded default fund contributions
20
Unfunded default fund contributions
3
1 Qualifying central counterparties (QCCPs) are entities that are licensed by regulators to operate as CCPs and meet the requirements outlined in the FINMA Ordinance on the Credit Risk of Banks and Securities Firms
(the CreO-FINMA). 2 Exposures associated with initial margin, where the exposures are measured under the IMM or the VaR approach, have been included within the exposures for trades (refer to line 2 for QCCPs
and line 12 for non-QCCPs). The exposures for non-segregated initial margin (refer to line 8 for QCCPs and line 18 for non-QCCPs), i.e. not bankruptcy remote in accordance with the CreO-FINMA, reflect the
replacement costs under the standardized approach for CCR (SA-CCR) multiplied by an alpha factor of 1.4. The RWA reflect the exposure multiplied by the applied risk weight of derivatives. Under the SA-CCR,
collateral posted to a segregated, bankruptcy-remote account does not increase the value of replacement costs. 3 Excludes unfunded default fund contributions that are not subject to RWA calculations in line with
current regulatory guidance.
30 June 2026 Pillar 3 Report |
UBS Group | Credit valuation adjustment 36
Credit valuation adjustment
Introduction
The credit valuation adjustment (CVA) capital charge covers the risk of mark-to-market losses associated with the
deterioration of counterparty credit quality. We apply the standardized approach for calculating CVA capital requirements
(SA-CVA) on positions where we generally use the internal model method to derive the exposure at default for derivatives
and the full basic approach (BA-CVA) for all other positions.
›
Refer to “Overview of risk-weighted assets and capital requirements” in the “Overview of risk-weighted assets” section of this
report for the materiality of BA-CVA and SA-CVA risk-weighted assets (RWA) and capital requirements
Full basic approach for CVA
Semi-annual |
The CVA2 table below shows the components used for the computation of capital requirements under the full
BA-CVA for CVA risk. BA-CVA RWA increased by USD 0.2bn to USD 4.5bn in the first half of 2026, primarily reflecting
market-driven movements and higher levels of client activity in Global Wealth Management.
CVA2: The full basic approach for CVA (BA-CVA)
USD m
Capital
requirements
under BA-CVA
RWA
30.6.26
1
K
Reduced
2
K
Hedged
3
Total
1
31.12.25
1
K
Reduced
2
K
Hedged
3
Total
1
1 Total is calculated as the sum of 75% K
Hedged
Reduced
.
Standardized approach for CVA
Semi-annual |
The CVA3 table below provides the components used for the computation of capital requirements under the
SA-CVA for CVA risk.
CVA3: The standardized approach for CVA (SA-CVA)
USD m, except where indicated
Capital
requirements
under SA-CVA
RWA
Number of
counterparties
30.6.26
1
Interest rate risk
2
Foreign exchange risk
3
Reference credit spread risk
4
Equity risk
5
Commodity risk
6
Counterparty credit spread risk
7
Total
31.12.25
1
Interest rate risk
2
Foreign exchange risk
3
Reference credit spread risk
4
Equity risk
5
Commodity risk
6
Counterparty credit spread risk
7
Total
SA-CVA RWA development in the second quarter of 2026
Quarterly |
The CVA4 table below shows the movements in RWA for CVA risk determined under the SA-CVA. SA-CVA RWA
decreased by USD 0.3bn to USD 5.0bn during the second quarter of 2026.
CVA4: RWA flow statements of CVA risk exposures under SA-CVA
USD m
Total RWA
1
RWA as of 31.12.25
2
RWA as of 31.3.26
3
RWA as of 30.6.26
30 June 2026 Pillar 3 Report |
UBS Group | Securitizations 37
Securitizations
Introduction
Semi-annual |
This section provides details of traditional and synthetic securitization exposures in the banking and trading
books based on the Basel
III securitization framework.
In a traditional securitization a pool of loans (or other debt instruments) is typically transferred to structured entities that
have been established to own the pool and to issue tranched securities to third-party investors referencing this pool of
loans. In a synthetic securitization legal ownership of securitized pools of assets is typically retained, but associated credit
risk is transferred to structured entities, typically through guarantees, credit derivatives or credit-linked notes. In both
traditional and synthetic securitizations risk is dependent on the seniority of the retained interest and the performance of
the underlying asset pool.
Regulatory capital treatment of securitization structures
For banking book securitizations, the regulatory capital requirements are calculated using the following hierarchy of
approaches: the securitization internal ratings-based approach, the securitization external ratings-based approach or the
securitization standardized approach. Otherwise, a 1,250% risk weight is applied as a fallback. External ratings used in
regulatory capital calculations for securitization risk exposures in the banking book are obtained from Fitch, Moody’s or
S&P.
For trading book securitizations, the regulatory capital requirements are calculated using the market risk framework.
Securitization exposures in the banking and trading books
Semi-annual |
The SEC1 table shows the balance sheet carrying values of securitization exposures in the banking book as of
30 June 2026 and 31 December 2025, respectively. For synthetic securitizations, the amounts disclosed reflect the net
exposure at default on retained positions. The securitization activity is further broken down by role (originator, sponsor
or investor) and by securitization type (traditional or synthetic). The SEC3 and SEC4 tables provide the regulatory capital
requirements associated with the banking book securitization exposures differentiated by our role in the securitization.
UBS is active in various roles in relation to securitization activity, including originator and investor, mainly via its Investment
Bank business division. Securitization exposures in the banking book are aimed at reducing or limiting risk and
commensurately releasing capital in accordance with the Basel rules by securitizing the underlying assets. Structures
originated by UBS typically provide protection against loss related to specific credit exposures (e.g. loans, loan
commitments or debt instruments) by creating synthetic securitization tranches on the underlying reference portfolio.
Such transactions usually consist of first loss protection provided by a third party and typically a senior tranche retained
by UBS. Structures may additionally entail a mezzanine tranche. First-loss and mezzanine tranches may be fully funded
or partially funded. Significant risk transfers through synthetic securitization are subject to separate specific risk limits
under the authority of the Board of Directors for the overall Group, with business division sub-limits under the authority
of the Group Chief Risk Officer. Synthetic securitization exposure originated by UBS in the banking book was USD 6.2bn
at the end of the second quarter of 2026, with the majority of the risk-weighted assets (RWA) impact reflected in the
Investment Bank.
Securitization exposures in the trading book resulted in USD 0.2bn RWA as of 30 June 2026. Due to the low materiality,
we discontinued the disclosure of the “SEC2: Securitization exposures in the trading book” table, starting with the
30 June 2025 Pillar 3 Report, as permitted by the general principles of disclosure of the Swiss Financial Market Supervisory
Authority (FINMA) Ordinance on the Disclosure Obligations of Banks and Securities Firms.
›
Refer to “Market risk under standardized approach” in the “Market risk” section of this report for more information about RWA
of trading book securitizations
Development of securitization exposures in the first half of 2026
Compared with 31 December 2025, securitization exposures in the banking book increased by USD 0.3bn to
USD 23.9bn.
30 June 2026 Pillar 3 Report |
UBS Group | Securitizations 38
SEC1: Securitization exposures in the banking book
Bank acts as originator
Bank acts as sponsor
Bank acts as investor
Total
USD m
Traditional
Synthetic
Subtotal
Traditional
Synthetic
Subtotal
Traditional
Synthetic
Subtotal
30.6.26
Asset classes
1
Retail (total)
2
of which: residential mortgage
3
of which: credit card receivables
4
of which: other retail exposures
1
5
Wholesale (total)
6
of which: loans to corporates or SME
7
of which: commercial mortgage
8
of which: lease and receivables
9
of which: other wholesale
10
Re-securitization
11
Total securitization / re-securitization
(including retail and wholesale)
31.12.25
Asset classes
1
Retail (total)
2
of which: residential mortgage
3
of which: credit card receivables
4
of which: other retail exposures
1
5
Wholesale (total)
6
of which: loans to corporates or SME
7
of which: commercial mortgage
8
of which: lease and receivables
9
of which: other wholesale
10
Re-securitization
11
Total securitization / re-securitization
(including retail and wholesale)
1 Includes unsecured consumer loans, solar leases and automobile loans.
30 June 2026 Pillar 3 Report |
UBS Group | Securitizations 39
SEC3: Securitization exposures in the banking book and associated regulatory capital requirements – bank acting as originator or as sponsor
USD m
Total
exposure
values
Exposure values (by RW bands)
Exposure values (by regulatory approach)
Total
RWA
RWA (by regulatory approach)
Total
capital
charge
after cap
Capital charge after cap
30.6.26
≤20% RW
>20% to
50% RW
>50% to
100%
RW
>100% to
<1,250%
RW
1,250%
RW
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
Asset classes
1
Total exposures
2
Traditional securitization
3
of which: securitization
4
of which: retail underlying
5
of which: wholesale
6
of which: re-securitization
7
of which: senior
8
of which: non-senior
9
Synthetic securitization
10
of which: securitization
11
of which: retail underlying
12
of which: wholesale
13
of which: re-securitization
14
of which: senior
15
of which: non-senior
31.12.25
Asset classes
1
Total exposures
2
Traditional securitization
3
of which: securitization
4
of which: retail underlying
5
of which: wholesale
6
of which: re-securitization
7
of which: senior
8
of which: non-senior
9
Synthetic securitization
10
of which: securitization
11
of which: retail underlying
12
of which: wholesale
13
of which: re-securitization
14
of which: senior
15
of which: non-senior
30 June 2026 Pillar 3 Report |
UBS Group | Securitizations 40
SEC4: Securitization exposures in the banking book and associated regulatory capital requirements – bank acting as investor
USD m
Total
exposure
values
Exposure values (by RW bands)
Exposure values (by regulatory approach)
Total
RWA
RWA (by regulatory approach)
Total capital
charge after
cap
Capital charge after cap
30.6.26
≤20% RW
>20% to
50% RW
>50% to
100%
RW
>100% to
<1,250%
RW
1,250%
RW
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
Asset classes
1
Total exposures
2
Traditional securitization
3
of which: securitization
4
of which: retail underlying
5
of which: wholesale
6
of which: re-securitization
7
of which: senior
8
of which: non-senior
9
Synthetic securitization
10
of which: securitization
11
of which: retail underlying
12
of which: wholesale
13
of which: re-securitization
14
of which: senior
15
of which: non-senior
31.12.25
Asset classes
1
Total exposures
2
Traditional securitization
3
of which: securitization
4
of which: retail underlying
5
of which: wholesale
6
of which: re-securitization
7
of which: senior
8
of which: non-senior
9
Synthetic securitization
10
of which: securitization
11
of which: retail underlying
12
of which: wholesale
13
of which: re-securitization
14
of which: senior
15
of which: non-senior
30 June 2026 Pillar 3 Report |
UBS Group | Market risk 41
Market risk
Introduction
The final Basel III standards on the minimum capital requirements for market risk of the Basel Committee on Banking
Supervision, known as the Fundamental Review of the Trading Book (the FRTB) framework, entered into force in
Switzerland on 1 January 2025. We currently apply the standardized approach of the FRTB framework, in which the
minimum market risk capital requirements are computed on the basis of three components: the sensitivities-based
method (the SBM), the default risk charge (the DRC) and the residual risk add-on (the RRAO). The SBM captures the
delta, vega and curvature risk of the underlying trading positions, and the DRC captures the jump-to-default risk in
positions subject to equity and credit risk. In addition, positions that may not be adequately capitalized by the SBM and
the DRC also attract an RRAO charge. The new FRTB framework replaced the value-at-risk (VaR)- and stressed VaR-based
Basel 2.5 market risk framework.
Market risk under standardized approach
Semi-annual |
The MR1 table below shows the components of market risk risk-weighted assets (RWA) under the standardized
approach. Market risk RWA under the standardized approach increased by USD 8.5bn to USD 32.3bn in the first half of
2026, mainly driven by asset size and other movements in Group Treasury related to hedging activities, as well as in the
Investment Bank.
MR1: Market risk under standardized approach
RWA in standardized approach
USD m
30.6.26
31.12.25
1
General interest rate risk
2
Equity risk
3
Commodity risk
4
Foreign exchange risk
5
Credit spread risk – non-securitizations
6
Credit spread risk – securitizations (non-correlation trading portfolio)
7
Credit spread risk – securitizations (correlation trading portfolio)
8
Default risk – non-securitizations
9
Default risk – securitizations (non-correlation trading portfolio)
10
Default risk – securitizations (correlation trading portfolio)
11
Residual risk add-on
12
Internal risk transfers
1
13
Other add-ons
14
Total
1 Internal risk transfer charge refers to the capital requirement calculated for the risk transferred between the banking book and the trading book, typically for hedging purposes.
30 June 2026 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 42
Going and gone concern requirements and eligible
capital
Swiss SRB going and gone concern requirements and information
Quarterly |
The table below provides details of the Swiss systemically relevant bank (SRB) going and gone concern capital
requirements as required by the Swiss Financial Market Supervisory Authority (FINMA).
›
Refer to the “Capital management” section of the UBS Group 30 June 2026 Interim Report, available under ”Quarterly reporting”
at
ubs.com/investors
, for more information about capital management
Swiss SRB going and gone concern requirements and information
As of 30.6.26
RWA
LRD
USD m, except where indicated
in %
in %
Required going concern capital
Total going concern capital
1
1
Common equity tier 1 capital
2
3
of which: minimum capital
of which: buffer capital
of which: countercyclical buffer
Maximum additional tier 1 capital
2
of which: additional tier 1 capital
of which: additional tier 1 buffer capital
Eligible going concern capital
Total going concern capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
4
of which: high-trigger loss-absorbing additional tier 1 capital
Required gone concern capital
Total gone concern loss-absorbing capacity
5,6,7
8
8
of which: base requirement including add-ons for market share and LRD
Eligible gone concern capital
Total gone concern loss-absorbing capacity
9
TLAC-eligible senior unsecured debt
Total loss-absorbing capacity
Required total loss-absorbing capacity
Eligible total loss-absorbing capacity
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
1 Includes applicable add-ons of 1.89% for risk-weighted assets (RWA) and 0.58% for leverage ratio denominator (LRD). For the RWA-based requirement, the add-on includes 0.86% for market share, 0.79% for LRD
and 0.23% reflecting a Pillar 2 capital add-on for the residual exposure (after collateral mitigation) to hedge funds, private equity and family offices, effective 1 January 2025. For the LRD-based requirement, the add-
on includes 0.30% for market share and 0.28% for LRD. 2 Includes the Pillar 2 add-on for the residual exposure (after collateral mitigation) to hedge funds, private equity and family offices of 0.16% for CET1 capital
and 0.07% for AT1 capital, effective 1 January 2025. For AT1 capital under Pillar 1 requirements a maximum of 4.3% of AT1 capital can be used to meet going concern requirements; 4.37% includes the aforementioned
Pillar 2 capital add-on. 3 Our CET1 leverage ratio requirement of 3.58% consists of a 1.5% base requirement, a 1.5% base buffer capital requirement, a 0.28% LRD add-on requirement and a 0.30% market share
add-on requirement based on our Swiss credit business. 4 UBS meets its minimum going concern capital requirements with CET1 capital and AT1 capital. As UBS exceeds its minimum going concern requirements,
the actual available and eligible AT1 capital is above the AT1 capital used to meet the minimum requirements (which is capped at 4.37% as explained in footnote 2 above). 5 A maximum of 25% of the gone concern
requirements can be met with instruments that have a remaining maturity of between one and two years. Once at least 75% of the minimum gone concern requirement has been met with instruments that have a
remaining maturity of greater than two years, all instruments that have a remaining maturity of between one and two years remain eligible to be included in the total gone concern capital. 6 Systemically important
banks (SIBs) are subject to base gone concern capital requirements equivalent to 75% of the total going concern requirements (excluding countercyclical buffer requirements and the Pillar 2 add-on). 7 The Swiss
Financial Market Supervisory Authority (FINMA) has the authority to impose a surcharge of up to 25% of the total going concern capital requirements (excluding countercyclical buffer requirements and the Pillar 2
add-on) should obstacles to an SIB’s resolvability be identified in future resolvability assessments. 8 Includes applicable add-ons of 1.24% for RWA and 0.43% for LRD. 9 Includes an add-back of 45% of unrealized
gains from financial assets measured at fair value through other comprehensive income. Such gains do not qualify as CET1 capital, but 45% of these gains can be recognized as gone concern capital.
30 June 2026 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 43
Countercyclical capital buffer
Semi-annual |
countercyclical capital buffer (the CCyB) requirement applicable to private-sector exposures in UBS Group
AG consolidated. In the first half of 2026, the CCyB for South Africa was increased to 1.0%, effective from 1 January
2026, and the CCyB for Saudi Arabia was increased to 1.0% effective from 25 May 2026. Our bank-specific CCyB
requirement was unchanged at 11 basis points.
›
Refer to the “Risk management and control” section of the UBS Group Annual Report 2025, available under ”Annual reporting” at
ubs.com/investors
, for more information about the methodology of geographical allocation used
CCyB1: Geographical distribution of credit exposures used in the countercyclical capital buffer
USD m, except where indicated
30.6.26
Geographical breakdown
Countercyclical capital
buffer rate, %
Risk-weighted assets
used in the computation
of the countercyclical
capital buffer
1
Bank-specific
countercyclical capital
buffer rate, %
Countercyclical capital
buffer amount
Australia
Belgium
France
Germany
Hong Kong SAR
Luxembourg
Netherlands
Saudi Arabia
South Africa
South Korea
Spain
Sweden
United Kingdom
Sum
Total
1 Includes private-sector exposures in the countries that are Basel Committee on Banking Supervision (BCBS)-member jurisdictions, under the following categories: “Credit risk”, “Counterparty credit risk”, “Settlement
risk”, “Securitization exposures in the banking book” and “Amounts below thresholds for deduction (250% risk weight)”, as well as the corresponding trading book charges included under “Market risk”.
Explanation of the differences between the IFRS Accounting Standards and regulatory scopes of
consolidation
Semi-annual |
USD 22,818m; total equity on a standalone basis as of 30 June 2026: USD 33m) was the most significant entity included
in the IFRS Accounting Standards scope of consolidation but not in the regulatory scope of consolidation. This life
insurance entity accounts for most of the difference between the “Balance sheet in accordance with IFRS Accounting
Standards scope of consolidation” and the “Balance sheet in accordance with regulatory scope of consolidation” columns
in the CC2 table in this report. The difference is mainly related to financial assets at fair value not held for trading and
other financial liabilities designated at fair value. Further differences are mainly related to other entities that are not active
in banking and finance and are, therefore, generally not consolidated under the regulatory scope of consolidation.
In the banking book certain equity investments are not consolidated under either IFRS Accounting Standards or under
the regulatory scope. As of 30 June 2026, these investments mainly consisted of infrastructure holdings and joint
operations (e.g. settlement and clearing institutions, and stock and financial futures exchanges) and included our
participation in SIX Group. These investments are risk weighted based on applicable threshold rules.
›
Refer to our legal entity structure, available under “Holding company and significant regulated subsidiaries and sub-groups” at
ubs.com/investors
, for more information about the legal structure of the UBS Group and to “Note 1 Summary of material
accounting policies” in the “Consolidated financial statements” section of the UBS Group Annual Report 2025, available under
“Annual reporting” at
ubs.com/investors
, for more information about the IFRS Accounting Standards scope of consolidation
›
Refer to the “Linkage between financial statements and regulatory exposures” section of the 31 December 2025 Pillar 3 Report,
available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about differences between the IFRS Accounting
Standards and regulatory scopes of consolidation
30 June 2026 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 44
Balance sheet reconciliation
Semi-annual |
The CC2 table below provides a reconciliation of the balance sheet under IFRS Accounting Standards to the
balance sheet according to the regulatory scope of consolidation as defined by the Basel Committee on Banking
Supervision (the BCBS) and FINMA. Lines in the balance sheet under the regulatory scope of consolidation are expanded
and referenced where relevant to display all components that are used in the CC1 table in this section.
CC2: Reconciliation of accounting balance sheet to balance sheet under the regulatory scope of consolidation
As of 30.6.26
Balance sheet in
accordance with
IFRS Accounting
Standards scope
of consolidation
Effect of
deconsolidated,
proportionally
consolidated or
additional consolidated
entities for regulatory
consolidation
Balance sheet in
accordance with
regulatory scope of
consolidation
References
1
USD m, except where indicated
Assets
Cash and balances at central banks
Amounts due from banks
Receivables from securities financing transactions measured at amortized cost
Cash collateral receivables on derivative instruments
Loans and advances to customers
Other financial assets measured at amortized cost
Total financial assets measured at amortized cost
Financial assets at fair value held for trading
of which: assets pledged as collateral that may be sold or repledged by counterparties
Derivative financial instruments
Brokerage receivables
Financial assets at fair value not held for trading
Total financial assets measured at fair value through profit or loss
Financial assets measured at fair value through other comprehensive income
Investments in associates
of which: goodwill
Property, equipment and software
Goodwill and intangible assets
of which: goodwill
of which: intangible assets
Deferred tax assets
of which: deferred tax assets recognized for tax loss carry-forwards and unused tax credits
carried forward
of which: deferred tax assets on temporary differences
Other non-financial assets
of which: net defined benefit pension and other post-employment assets
Total assets
30 June 2026 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 45
CC2: Reconciliation of accounting balance sheet to balance sheet under the regulatory scope of consolidation
(continued)
As of 30.6.26
Balance sheet in
accordance with
IFRS Accounting
Standards scope
of consolidation
Effect of
deconsolidated,
proportionally
consolidated or
additional consolidated
entities for regulatory
consolidation
Balance sheet in
accordance with
regulatory scope of
consolidation
References
1
USD m, except where indicated
Liabilities
Amounts due to banks
Payables from securities financing transactions measured at amortized cost
Cash collateral payables on derivative instruments
Customer deposits
Debt issued measured at amortized cost
of which: amount eligible for high-trigger loss-absorbing additional tier 1 capital
Other financial liabilities measured at amortized cost
Total financial liabilities measured at amortized cost
Financial liabilities at fair value held for trading
Derivative financial instruments
Brokerage payables designated at fair value
Debt issued designated at fair value
Other financial liabilities designated at fair value
Total financial liabilities measured at fair value through profit or loss
Provisions and contingent liabilities
Other non-financial liabilities
of which: amount eligible for high-trigger loss-absorbing capital (Deferred Contingent
Capital Plan (DCCP))
2
of which: deferred tax liabilities related to goodwill
of which: deferred tax liabilities related to other intangible assets
Total liabilities
Equity
Share capital
Share premium
Treasury shares
Retained earnings
Other comprehensive income recognized directly in equity, net of tax
of which: unrealized gains / (losses) from cash flow hedges
Equity attributable to shareholders
Equity attributable to non-controlling interests
Total equity
Total liabilities and equity
1 References link the lines of this table to the respective reference numbers provided in the “References” column in the CC1 table in this section. 2 The IFRS Accounting Standards carrying amount of total DCCP
liabilities was USD 2,168m as of 30 June 2026. Refer to the “Compensation” section of the UBS Group Annual Report 2025, available under ”Annual reporting” at ubs.com/investors, for more information about the
DCCP.
30 June 2026 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 46
Composition of regulatory capital
Semi-annual |
The CC1 table below provides the composition of capital in the format prescribed by the BCBS and FINMA, and
is based on BCBS Basel III rules, unless stated otherwise. Reference is made to items reconciling to the balance sheet
under the regulatory scope of consolidation as disclosed in the CC2 table in this section.
›
Refer to the documents titled “Capital and total loss-absorbing instruments of UBS Group AG consolidated, UBS AG consolidated
and standalone – Key features” and “UBS Group AG consolidated capital instruments and TLAC-eligible senior unsecured debt”,
available under “Bondholder information” at
ubs.com/investors
, for an overview of the main features of our regulatory capital
instruments, as well as their full terms and conditions
CC1: Composition of regulatory capital
As of 30.6.26
Amounts
References
1
USD m, except where indicated
Common Equity Tier 1 capital: instruments and reserves
1
Directly issued qualifying common share (and equivalent for non-joint stock companies) capital plus related stock surplus
2
Retained earnings
3
Accumulated other comprehensive income (and other reserves)
5
Common share capital issued by subsidiaries and held by third parties (amount allowed in group CET1)
6
Common Equity Tier 1 capital before regulatory adjustments
Common Equity Tier 1 capital: regulatory adjustments
7
Prudent valuation adjustments
8
Goodwill (net of related tax liability)
9
Other intangibles other than mortgage servicing rights (net of related tax liability)
10
Deferred tax assets that rely on future profitability, excluding those arising from temporary differences (net of related tax liability)
2
11
Cash flow hedge reserve
12
Shortfall of provisions to expected losses
13
Securitization gain on sale
14
Gains and losses due to changes in own credit risk on fair valued liabilities
15
Defined benefit pension fund net assets
16
Investments in own shares (if not already subtracted from paid-in capital on reported balance sheet)
3
17
Reciprocal cross-holdings in common equity
17a
17b
18
Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, where the bank
does not own more than 10% of the issued share capital (amount above 10% threshold)
19
Significant investments in the common stock of banking, financial and insurance entities that are outside the scope of regulatory consolidation
(amount above 10% threshold)
20
Mortgage servicing rights (amount above 10% threshold)
21
Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability)
22
Amount exceeding the 15% threshold
23
of which: significant investments in the common stock of financials
24
of which: mortgage servicing rights
25
of which: deferred tax assets arising from temporary differences
26
National specific regulatory adjustments
26a
of which: adjustments to financial statements in accordance with a recognized international accounting standard
26b
Other adjustments
4
27
Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2 to cover deductions
28
Total regulatory adjustments to Common Equity Tier 1
29
Common Equity Tier 1 capital (CET1)
30 June 2026 Pillar 3 Report |
UBS Group | Going and gone concern requirements and eligible capital 47
CC1: Composition of regulatory capital (continued)
As of 30.6.26
Amounts
References
1
USD m, except where indicated
Additional Tier 1 capital: instruments
30
Directly issued qualifying additional Tier 1 instruments plus related stock surplus
31
of which: classified as equity under applicable accounting standards
32
of which: classified as liabilities under applicable accounting standards
33
Directly issued capital instruments subject to phase-out from additional Tier 1
34
Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by subsidiaries and held by third parties (amount allowed in
group AT1)
36
Additional Tier 1 capital before regulatory adjustments
Additional Tier 1 capital: regulatory adjustments
37
Investments in own additional Tier 1 instruments
5
38
Reciprocal cross-holdings in additional Tier 1 instruments
38a
Qualified holdings where a significant influence is exercised with other owners (AT1 instruments)
38b
Immaterial investments (AT1 instruments)
39
Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, where the bank
does not own more than 10% of the issued common share capital of the entity (amount above 10% threshold)
40
Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation
41
National specific regulatory adjustments
42
Regulatory adjustments applied to additional Tier 1 due to insufficient Tier 2 to cover deductions
42a
Regulatory adjustments applied to CET1 capital due to insufficient additional Tier 1 to cover deductions
43
Total regulatory adjustments to additional Tier 1 capital
44
Additional Tier 1 capital (AT1)
45
Tier 1 capital (T1 = CET1 + AT1)
Tier 2 capital: instruments and provisions
46
Directly issued qualifying Tier 2 instruments plus related stock surplus
6
48
Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 34) issued by subsidiaries and held by third parties (amount
allowed in group Tier 2)
50
Provisions
51
Tier 2 capital before regulatory adjustments
Tier 2 capital: regulatory adjustments
52
Investments in own Tier 2 instruments
53
Reciprocal cross-holdings in Tier 2 instruments and other TLAC liabilities
53a
Qualified holdings where a significant influence is exercised with other owners (T2 instruments and other TLAC instruments)
53b
Immaterial investments (T2 instruments and other TLAC instruments)
54
Investments in the capital and other TLAC liabilities of banking, financial and insurance entities that are outside the scope of regulatory
consolidation, where the bank does not own more than 10% of the issued common share capital of the entity (amount above 10% threshold)
55
Significant investments in the capital and other TLAC liabilities of banking, financial and insurance entities that are outside the scope of
regulatory consolidation (net of eligible short positions)
56
National specific regulatory adjustments
56a
Excess of the adjustments, which are allocated to the AT1 capital
57
Total regulatory adjustments to Tier 2 capital
58
Tier 2 capital (T2)
59
Total regulatory capital (TC = T1 + T2)
60
Total risk-weighted assets
Capital ratios and buffers
61
Common Equity Tier 1 (as a percentage of risk-weighted assets)
62
Tier 1 (as a percentage of risk-weighted assets)
63
Total capital (as a percentage of risk-weighted assets)
64
Institution-specific buffer requirement (capital conservation buffer plus countercyclical buffer requirements plus higher loss absorbency
requirement, expressed as a percentage of risk-weighted assets)
7
65
of which: capital conservation buffer requirement
66
of which: bank-specific countercyclical buffer requirement
67
of which: higher loss absorbency requirement
68
Common Equity Tier 1 (as a percentage of risk-weighted assets) available after meeting the bank’s minimum capital requirements
Amounts below the thresholds for deduction (before risk weighting)
72
Non-significant investments in the capital and other TLAC liabilities of other financial entities
73
Significant investments in the common stock of financial entities
74
Mortgage servicing rights (net of related tax liability)
75
Deferred tax assets arising from temporary differences (net of related tax liability)
Applicable caps on the inclusion of provisions in Tier 2
76
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardized approach (prior to application of cap)
77
Cap on inclusion of provisions in Tier 2 under standardized approach
78
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based approach (prior to application of cap)
79
Cap for inclusion of provisions in Tier 2 under internal ratings-based approach
1 References link the lines of this table to the respective reference numbers provided in the “References” column in the CC2 table in this section. 2 IFRS Accounting Standards netting for deferred tax assets and
liabilities is reversed for items deducted from CET1 capital. 3 Includes USD 3,261m capital reserves for expected future share repurchases. 4 Includes USD 961m in a compensation-related charge for regulatory
capital purposes. 5 Under IFRS Accounting Standards, debt issued and subsequently repurchased is treated as extinguished. 6 Includes an add-back of 45% of unrealized gains from financial assets measured at
fair value through other comprehensive income. Such gains do not qualify as CET1 capital, but 45% of these gains can be recognized as gone concern capital. 7 BCBS requirements are exceeded by UBS’s Swiss SRB
requirements. Refer to the “Capital management“ section of the UBS Group Annual Report 2025, available under ”Annual reporting” at ubs.com/investors, for more information about the Swiss SRB requirements.
30 June 2026 Pillar 3 Report |
UBS Group | Total loss-absorbing capacity 48
Total loss-absorbing capacity
Resolution group – composition of total loss-absorbing capacity
Semi-annual |
The TLAC1 table below is based on Basel Committee on Banking Supervision rules and only applicable to
UBS Group AG as the ultimate parent entity of the defined UBS resolution group, to which, in case of resolution,
resolution tools (e.g. a bail in) are expected to be applied.
In the first half of 2026, our eligible additional tier 1 (AT1) instruments increased by USD 3.6bn, mainly driven by the
issuance of new AT1 capital instruments equivalent to USD 5.2bn, partly offset by the redemption of AT1 capital
instruments equivalent to USD 1.5bn (including one instrument, ISIN CH0558521263, that ceased to be eligible when
we issued a notice of redemption of the instrument in the second quarter of 2026).
Non-regulatory capital elements of total loss-absorbing capacity (TLAC) increased by USD 1.5bn, mainly due to the new
issuances of USD 9.3bn equivalent of TLAC-eligible senior unsecured debt instruments, partly offset by the redemption
of USD 6.2bn equivalent of TLAC-eligible senior unsecured debt instruments and negative impacts from interest rate risk
hedge, foreign currency translation and other effects.
TLAC1: TLAC composition for G-SIBs (at resolution group level)
30.6.26
31.12.25
USD m, except where indicated
Regulatory capital elements of TLAC and adjustments
1
Common Equity Tier 1 capital (CET1)
2
Additional Tier 1 capital (AT1) before TLAC adjustments
3
AT1 ineligible as TLAC as issued out of subsidiaries to third parties
4
Other adjustments
5
Total AT1 instruments eligible under the TLAC framework
6
Tier 2 capital (T2) before TLAC adjustments
1
7
Amortized portion of T2 instruments where remaining maturity > 1 year
8
T2 capital ineligible as TLAC as issued out of subsidiaries to third parties
9
Other adjustments
10
Total T2 instruments eligible under the TLAC framework
11
TLAC arising from regulatory capital
Non-regulatory capital elements of TLAC
12
External TLAC instruments issued directly by the bank and subordinated to excluded liabilities
13
External TLAC instruments issued directly by the bank which are not subordinated to excluded liabilities but meet all other TLAC term sheet
requirements
14
of which: amount eligible as TLAC after application of the caps
15
External TLAC instruments issued by funding vehicles prior to 1 January 2022
16
Eligible ex ante commitments to recapitalize a G-SIB in resolution
17
TLAC arising from non-regulatory capital instruments before adjustments
Non-regulatory capital elements of TLAC: adjustments
18
TLAC before deductions
19
Deductions of exposures between multiple-point-of-entry (MPE) resolution groups that correspond to items eligible for TLAC (not applicable to
SPE G-SIBs)
20
Deduction of investments in own other TLAC liabilities
2
21
Other adjustments to TLAC
22
TLAC after deductions
Risk-weighted assets and leverage exposure measure for TLAC purposes
23
Total risk-weighted assets adjusted as permitted under the TLAC regime
24
Leverage exposure measure
TLAC ratios and buffers
25
TLAC (as a percentage of risk-weighted assets adjusted as permitted under the TLAC regime)
26
TLAC (as a percentage of leverage exposure)
27
CET1 (as a percentage of risk-weighted assets) available after meeting the resolution group’s minimum capital and TLAC requirements
28
Institution-specific buffer requirement (capital conservation buffer plus countercyclical buffer requirements plus higher loss absorbency
requirement, expressed as a percentage of risk-weighted assets)
29
of which: capital conservation buffer requirement
30
of which: bank-specific countercyclical buffer requirement
31
of which: higher loss absorbency requirement
1 Includes an add-back of 45% of unrealized gains from financial assets measured at fair value through other comprehensive income. Such gains do not qualify as CET1 capital, but 45% of these gains can be
recognized as gone concern capital. 2 Under IFRS Accounting Standards, debt issued and subsequently repurchased is treated as extinguished.
30 June 2026 Pillar 3 Report |
UBS Group | Total loss-absorbing capacity 49
Resolution entity – creditor ranking at legal entity level
Semi-annual |
The TLAC3 table below provides an overview of the creditor ranking structure of the resolution entity,
UBS Group AG, on a standalone basis.
UBS Group AG issues loss-absorbing AT1 capital instruments and TLAC-eligible senior unsecured debt.
UBS Group AG grants Deferred Contingent Capital Plan awards to UBS Group employees, which qualify as Basel III AT1
capital on a UBS Group consolidated basis and totaled USD 2,493m as of 30 June 2026 (31 December 2025:
USD 2,365m). The related liabilities of UBS Group AG on a standalone basis of USD 1,740m (31 December 2025:
USD 1,727m) are not included in the table below, as these do not give rise to any current claims until the awards are
legally vested.
As of 30 June 2026, the TLAC available on a UBS Group AG consolidated basis amounted to USD 193,631m
(31 December 2025: USD 187,307m).
›
Refer to “Holding company and significant regulated subsidiaries and sub-groups” at
ubs.com/investors
about UBS Group AG standalone for the six-month period ended 30 June 2026
›
Refer to “Bondholder information” at
ubs.com/investors
›
Refer to the “TLAC1: TLAC composition for G-SIBs (at resolution group level)” table in this section for more information about
TLAC for UBS Group AG consolidated
TLAC3: Creditor ranking at legal entity level for the resolution entity, UBS Group AG
As of 30.6.26
Creditor ranking
Total
USD m
1
2
3
1
Description of creditor ranking
Common shares
(most junior)
2
Additional Tier 1
Bail-in debt and
pari passu
liabilities
(most senior)
2
Total capital and liabilities net of credit risk mitigation
1
3
Subset of row 2 that are excluded liabilities
4
Total capital and liabilities less excluded liabilities (row 2 minus row 3)
3,4,5
6,7
5
Subset of row 4 that are potentially eligible as TLAC
6
Subset of row 5 with 1 year ≤ residual maturity < 2 years
8
7
Subset of row 5 with 2 years ≤ residual maturity < 5 years
8
Subset of row 5 with 5 years ≤ residual maturity < 10 years
9
Subset of row 5 with residual maturity ≥ 10 years, but excluding perpetual securities
10
Subset of row 5 that is perpetual securities
1 No credit risk mitigation is applied to capital and liabilities for UBS Group AG standalone. 2 Common shares including the associated reserves are equal to the equity of UBS Group AG standalone attributable to
shareholders. 3 Includes interest expense accrued on AT1 capital instruments, which is not eligible as TLAC. 4 An AT1 instrument in the amount of USD 0.8bn was redeemed and AT1 instruments in a total amount
of USD 5.2bn were issued during the six months ended 30 June 2026. 5 Includes an AT1 instrument in the amount of USD 0.8bn, the call of which was announced on 23 June 2026 and executed on 29 July 2026.
6 Includes interest expense accrued on bail-in debt, interest-bearing liabilities that consist of loans from UBS AG and UBS Switzerland AG, negative replacement values, and tax and other liabilities that are not
excluded liabilities under Swiss law and that rank pari passu to bail-in debt. 7 Bail-in debt of USD 13.6bn was redeemed and bail-in debt of USD 9.2bn was issued during the six months ended 30 June 2026.
8 Includes bail-in debt in the amount of USD 1.8bn and USD 2bn the call of which was announced on 16 July 2026 and executed on 5 August 2026 and 10 August 2026, respectively.
Leverage ratio
Basel III leverage ratio
Quarterly |
The Basel Committee on Banking Supervision (the BCBS) leverage ratio, as summarized in the “KM1: Key metrics”
table in section 2 of this report, is calculated by dividing the period-end tier 1 capital by the period-end leverage ratio
denominator (the LRD).
The LRD consists of on-balance sheet assets and off-balance sheet items based on IFRS Accounting Standards. Derivative
exposures are adjusted for netting of replacement values and eligible cash variation margin, potential future exposure,
and net notional amounts for written credit derivatives. The LRD also includes an additional charge for counterparty credit
risk related to securities financing transactions (SFTs).
On-balance sheet items (excluding derivatives and securities financing transactions (SFTs), but including collateral), as
disclosed in the LR2 table in this section, differ from IFRS Accounting Standards total assets due to adjustments to the
former for the application of the regulatory scope of consolidation and due to the carrying amounts for derivative financial
instruments and SFTs, which are removed and replaced with exposures, as per the leverage ratio rules, in separate line
items in the LR2 table.
30 June 2026 Pillar 3 Report |
UBS Group | Leverage ratio 50
Difference between the Swiss systemically relevant bank leverage ratio and the BCBS leverage ratio
The LRD is the same under Swiss systemically relevant bank (SRB) and BCBS rules. However, there is a difference in the
capital numerator between the two frameworks. Under BCBS rules only common equity tier 1 and additional tier 1 (AT1)
capital are included in the numerator. Under Swiss SRB rules UBS is required to meet going and gone concern leverage
ratio requirements. Therefore, depending on the requirement, the numerator includes tier 1 capital instruments, tier 2
capital instruments and / or total loss-absorbing capacity-eligible senior unsecured debt.
LR1: Summary comparison of accounting assets vs leverage ratio exposure measure
USD m
30.6.26
31.3.26
31.12.25
1
Total consolidated assets as per published financial statements
2
Adjustment for investments in banking, financial, insurance or commercial entities that are consolidated for accounting
purposes but outside the scope of regulatory consolidation
3
Adjustment for securitized exposures that meet the operational requirements for the recognition of risk transference
4
Adjustments for temporary exemption of central bank reserves (if applicable)
5
Adjustment for fiduciary assets recognized on the balance sheet pursuant to the operative accounting framework but excluded
from the leverage ratio exposure measure
6
Adjustments for regular-way purchases and sales of financial assets subject to trade date accounting
7
Adjustments for eligible cash pooling transactions
8
Adjustments for derivative financial instruments
1
9
Adjustment for securities financing transactions (i.e. repos and similar secured lending)
10
Adjustment for off-balance sheet items (i.e. conversion to credit equivalent amounts of off-balance sheet exposures)
11
Adjustments for prudent valuation adjustments and specific and general provisions which have reduced Tier 1 capital
2
12
Other adjustments
12a
of which: asset amounts deducted in determining Tier 1 capital
12b
of which: consolidated entities under the regulatory scope of consolidation
13
Leverage ratio exposure
1 As of 31 December 2025, initial margin posted with exchanges on derivatives was included in Derivative exposures. As of 31 March 2026, we have reclassified initial margin on derivatives under On-balance sheet
exposures. 2 Reflects the shortfall to expected losses on advanced internal ratings-based (IRB) portfolio less general provisions. Deduction items other than the IRB shortfall are disclosed in row 12a.
30 June 2026 Pillar 3 Report |
UBS Group | Leverage ratio 51
LR2: Leverage ratio common disclosure
USD m, except where indicated
30.6.26
31.3.26
31.12.25
On-balance sheet exposures
1
On-balance sheet items (excluding derivatives and securities financing transactions (SFTs), but including collateral)
2
Gross-up for derivatives collateral provided where deducted from balance sheet assets pursuant to the operative accounting
framework
3
(Deductions of receivable assets for cash variation margin provided in derivatives transactions)
4
(Adjustment for securities received under securities financing transactions that are recognised as an asset)
5
(Specific and general provisions associated with on-balance sheet exposures that are deducted from Tier 1 capital)
6
(Asset amounts deducted in determining Tier 1 capital)
7
Total on-balance sheet exposures (excluding derivatives and SFTs)
1
Derivative Exposures
8
Replacement cost associated with all derivatives transactions (where applicable net of eligible cash variation margin and/or
with bilateral netting)
9
Add-on amounts for potential future exposure associated with all derivatives transactions
10
(Exempted qualifying central counterparty (QCCP) leg of client-cleared trade exposures)
11
Adjusted effective notional amount of all written credit derivatives
2
12
(Adjusted effective notional offsets and add-on deductions for written credit derivatives)
3
13
Total derivative exposures
1
Securities financing transaction exposures
14
Gross SFT assets (with no recognition of netting), after adjusting for sale accounting transactions
15
(Netted amounts of cash payables and cash receivables of gross SFT assets)
16
Counterparty credit risk exposure for SFT assets
17
Agent transaction exposures
18
Total securities financing transaction exposures
Other off-balance sheet exposures
19
Off-balance sheet exposure at gross notional amount
20
(Adjustments for conversion to credit equivalent amounts)
21
(Specific and general provisions associated with off-balance sheet exposures deducted in determining Tier 1 capital)
22
Total off-balance sheet items
Capital and total exposures (leverage ratio denominator), phase-in
23
Tier 1 capital
24
Total exposures (leverage ratio denominator)
Leverage ratio
25
4
25a
Basel III leverage ratio (%) (excluding the impact of any applicable temporary exemption of central bank reserves)
4
26
Leverage ratio minimum requirement (%)
5
27
Leverage ratio buffers (%)
5
Disclosure of mean values
28
Mean value of gross SFT assets, after adjustment for sale accounting transactions and netted of amounts of associated cash
payables and cash receivables
29
Quarter-end value of gross SFT assets, after adjustment for sale accounting transactions and netted of amounts of associated
cash payables and cash receivables
30
Total exposures (including the impact of any applicable temporary exemption of central bank reserves) incorporating mean
values from row 28 of gross SFT assets (after adjustment for sale accounting transactions and netted of amounts of associated
cash payables and cash receivables)
4
30a
Total exposures (excluding the impact of any applicable temporary exemption of central bank reserves) incorporating mean
values from row 28 of gross SFT assets (after adjustment for sale accounting transactions and netted of amounts of
associated cash payables and cash receivables)
4
31
Basel III leverage ratio (%) (including the impact of any applicable temporary exemption of central bank reserves)
incorporating mean values from row 28 of gross SFT assets (after adjustment for sale accounting transactions and netted of
amounts of associated cash payables and cash receivables)
4
31a
Basel III leverage ratio (%) (excluding the impact of any applicable temporary exemption of central bank reserves)
incorporating mean values from row 28 of gross SFT assets (after adjustment for sale accounting transactions and netted of
amounts of associated cash payables and cash receivables)
4
1 As of 31 December 2025, initial margin posted with exchanges on derivatives was included in Derivative exposures. As of 31 March 2026, we have reclassified initial margin on derivatives under On-balance sheet
exposures. 2 Includes protection sold, including agency transactions. 3 Protection sold can be offset with protection bought on the same underlying reference entity, provided that the conditions according to the
Basel III leverage ratio framework and disclosure requirements are met. 4 There is currently no temporary exemption of central bank reserves for UBS. 5 The total Swiss SRB leverage ratio requirement of 5.08%
as of 30 June 2026 (5% as of 31 December 2025) is composed of a base requirement and a buffer requirement. The total requirement is above the BCBS leverage ratio requirement, including the G-SIB buffer.
30 June 2026 Pillar 3 Report |
UBS Group | Leverage ratio 52
LRD development during the second quarter of 2026
Quarterly |
During the second quarter of 2026, the LRD decreased by USD 3.7bn to USD 1,649.8bn, driven by a USD 9.4bn
decrease from currency effects, partly offset by a USD 5.6bn increase from asset size and other movements.
On-balance sheet exposures (excluding derivatives and securities financing transactions) increased by USD 9.5bn, mainly
due to asset size and other movements of USD 17.4bn, partly offset by currency effects of USD 7.9bn. The asset size
movement was mainly due to increases in trading assets, predominantly in the Investment Bank, due to an increase in
inventory held to hedge client positions, as well as market-driven increases. In addition, there was an increase in lending
assets, mainly reflecting positive net new loans in Global Wealth Management and Personal & Corporate Banking, partly
offset by cash and balances at central banks.
Derivative exposures decreased by USD 13.2bn, mainly due to asset size and other movements of USD 12.9bn and
currency effects of USD 0.4bn. The asset size movement was mainly due to higher netting on potential future exposure
in the Investment Bank.
Securities financing transaction exposures decreased by USD 1.6bn, mainly due to asset size and other movements of
USD 0.8bn and currency effects of USD 0.7bn. The asset size movement was mainly due to roll-offs of cash reinvestment
trades in Group Treasury, partly offset by higher levels of client activity in the Investment Bank.
Off-balance sheet items increased by USD 1.6bn, mainly due to asset size and other movements of USD 1.9bn, partly
offset by currency effects of USD 0.3bn. The asset size movement was mainly due to increases in irrevocable loan
commitments in Global Wealth Management and Personal & Corporate Banking, partly offset by a decrease in committed
unconditionally revocable credit lines, predominantly driven by a refinement in the definition of a commitment for certain
Lombard facilities in Global Wealth Management.
›
Refer to “Leverage ratio denominator” in the “Capital management” section of the UBS Group 30 June 2026 Interim Report,
available under “Quarterly reporting” at
ubs.com/investors
, for more information
Liquidity and funding
Liquidity coverage ratio
Quarterly |
We monitor the liquidity coverage ratio (the LCR) in all significant currencies in order to manage any currency
mismatch between high-quality liquid assets (HQLA) and the net expected cash outflows in times of stress.
Further key information
UBS Group 30 June 2026 Interim Report section
Disclosure
UBS Group 30 June
2026 Interim Report
page number
Concentration of funding sources
Balance sheet and off-balance sheet
–
Liabilities, by product and currency
52
High-quality liquid assets
Quarterly |
HQLA must be easily and immediately convertible into cash at little or no loss of value, especially during a period
of stress. HQLA are assets that are of low risk and are unencumbered. Other characteristics of HQLA are ease and certainty
of valuation, low correlation with risky assets, listing of the assets on a developed and recognized exchange, existence of
an active and sizable market for the assets, and low volatility. Our HQLA predominantly consist of assets that qualify as
Level 1 in the LCR framework, including cash, central bank reserves and government bonds. In the second quarter of
2026, our HQLA increased by USD 7.8bn to USD 341.8bn, mainly reflecting
higher cash available due to increases in
customer deposits, debt issued and net brokerage payables, partly offset by lower cash available from funding of lending
assets, margin requirements and dividend distribution to shareholders, as well as a decrease in securities financing
transactions.
High-quality liquid assets (HQLA)
Average 2Q26
1
Average 1Q26
1
USD m
Level 1
weighted
liquidity
value
2
Level 2
weighted
liquidity
value
2
Total
weighted
liquidity
value
2
Level 1
weighted
liquidity
value
2
Level 2
weighted
liquidity
value
2
Total
weighted
liquidity
value
2
Cash balances
3
217,395
217,395
211,801
211,801
Securities (on- and off-balance sheet)
97,517
26,880
124,397
92,949
29,213
122,162
Total HQLA
4
314,912
26,880
341,792
304,750
29,213
333,963
1 Calculated based on an average of 60 data points in the second quarter of 2026 and 62 data points in the first quarter of 2026. 2 Calculated after the application of haircuts and, where applicable, caps on Level 2
assets. 3 Includes cash and balances with central banks and other eligible balances as prescribed by FINMA. 4 Calculated in accordance with FINMA requirements.
30 June 2026 Pillar 3 Report |
UBS Group | Liquidity and funding 53
LCR development during the second quarter of 2026
Quarterly |
In the second quarter of 2026, the quarterly average LCR of the UBS Group was largely unchanged at 177.3%,
remaining above the prudential requirement communicated by the Swiss Financial Market Supervisory Authority (FINMA).
Average net cash outflows increased by USD 5.0bn to USD 192.9bn, primarily reflecting lower inflows from lending assets
and securities financing transactions and higher net outflows from debt issued measured at fair value. The effect of the
increase in net cash outflows was offset by a USD 7.8bn increase in average HQLA to USD 341.8bn,
mainly
reflecting
higher cash available due to increases in customer deposits, debt issued and net brokerage payables, partly
offset by lower cash available from funding of lending assets, margin requirements and dividend distribution to
shareholders, as well as a decrease in securities financing transactions.
LIQ1: Liquidity coverage ratio (LCR)
Average 2Q26
1
Average 1Q26
1
USD m
Unweighted
value
Weighted
value
2
Unweighted
value
Weighted
value
2
High-quality liquid assets (HQLA)
1
Total HQLA
347,280
341,792
340,065
333,963
Cash outflows
2
Retail deposits and deposits from small business customers
390,606
45,105
391,282
45,216
3
of which: stable deposits
31,767
1,141
31,893
1,149
4
of which: less stable deposits
358,840
43,963
359,389
44,067
5
Unsecured wholesale funding
308,412
162,498
311,308
162,211
6
of which: operational deposits (all counterparties)
63,721
15,930
61,781
15,445
7
of which: non-operational deposits (all counterparties)
227,627
129,504
233,679
130,918
8
of which: unsecured debt
17,064
17,064
15,847
15,847
9
Secured wholesale funding
124,765
113,952
10
Additional requirements:
115,440
44,358
125,158
49,891
11
of which: outflows related to derivatives and other transactions
31,915
26,707
38,094
30,860
12
of which: outflows related to loss of funding on debt products
3
230
230
379
379
13
of which: committed credit and liquidity facilities
83,294
17,421
86,685
18,651
14
Other contractual funding obligations
35,542
33,163
31,820
29,404
15
Other contingent funding obligations
359,017
18,272
351,216
16,485
16
Total cash outflows
428,160
417,159
Cash inflows
17
Secured lending
455,148
159,414
411,535
147,849
18
Inflows from fully performing exposures
79,130
34,791
82,659
37,395
19
Other cash inflows
41,078
41,078
44,046
44,046
20
Total cash inflows
575,356
235,283
538,240
229,290
Average 2Q26
1
Average 1Q26
1
USD m, except where indicated
Total adjusted
value
4
Total adjusted
value
4
Liquidity coverage ratio (LCR)
21
Total HQLA
341,792
333,963
22
Net cash outflows
192,877
187,869
23
LCR (%)
1 Calculated based on an average of 60 data points in the second quarter of 2026 and 62 data points in the first quarter of 2026. 2 Calculated after the application of haircuts and inflow and outflow rates.
3 Includes outflows related to loss of funding on asset-backed securities, covered bonds, other structured financing instruments, asset-backed commercial papers, structured entities (conduits), securities investment
vehicles and other such financing facilities. 4 Calculated after the application of haircuts and inflow and outflow rates, as well as, where applicable, caps on Level 2 assets and cash inflows.
30 June 2026 Pillar 3 Report |
UBS Group | Liquidity and funding 54
Net stable funding ratio
Net stable funding ratio development during the second quarter of 2026
Semi-annual |
to 115.1%, remaining above the prudential requirement communicated by FINMA.
Available stable funding increased by USD 3.6bn to USD 900.3bn, mainly reflecting an increase in debt issued designated
at fair value, partly offset by the tenor roll down of TLAC-eligible senior unsecured debt instruments.
Required stable funding increased by USD 15.7bn to USD 782.5bn, mainly driven by higher trading assets and lending
assets.
›
Refer to the “Liquidity and funding management” section of the UBS Group 30 June 2026 Interim Report, available under
”Quarterly reporting” at
ubs.com/investors
, for more information about the NSFR
LIQ2: Net stable funding ratio (NSFR)
30.6.26
31.3.26
Unweighted value by residual maturity
Unweighted value by residual maturity
USD m, except where indicated
No Maturity
< 6
months
6 months to
< 1 year
≥ 1 year
Weighted
Value
No
Maturity
< 6
months
6 months to
< 1 year
≥ 1 year
Weighted
Value
Available stable funding (ASF) item
1
Capital:
89,348
16,049
105,396
92,634
13,179
105,813
2
Regulatory Capital
89,348
15,983
105,331
92,634
13,112
105,746
3
Other Capital Instruments
65
65
66
66
4
Retail deposits and deposits from small business
customers:
416,834
9,117
14,940
399,936
416,732
7,928
16,717
400,537
5
Stable deposits
32,132
666
7
31,165
32,370
154
8
30,906
6
Less stable deposits
384,703
8,451
14,933
368,771
384,362
7,773
16,709
369,631
7
Wholesale Funding:
509,448
64,805
224,232
389,198
510,159
66,831
219,178
384,769
8
Operational Deposits
66,864
33,452
64,500
32,254
9
Other wholesale funding
442,584
64,805
224,232
355,746
445,659
66,831
219,178
352,515
10
Liabilities with matching interdependent assets
11,957
13,178
11
Other liabilities:
60,356
181,461
4,797
5,728
60,968
170,720
4,608
5,526
12
NSFR derivative liabilities
13
All other liabilities and equity not included in the
above categories
60,356
181,461
4,797
5,728
60,968
170,720
4,608
5,526
14
Total ASF
900,258
896,644
Required stable funding (RSF) item
15
Total NSFR high-quality liquid assets (HQLA)
33,980
32,349
16
Deposits held at other financial institutions for
operational purposes
14,886
7,645
13,844
7,117
17
Performing loans and securities:
70,998
272,571
55,569
539,434
614,507
63,460
278,270
57,106
529,760
602,220
18
Performing loans to financial institutions secured
by Level 1 HQLA or Level 2a HQLA
37,388
914
6,894
43,895
386
8,672
19
Performing loans to financial institutions secured
by Level 2b HQLA or non-HQLA and unsecured
performing loans to financial institutions
97,376
8,667
51,979
75,030
95,035
8,230
51,697
74,371
20
Performing loans to non-financial corporate
clients, loans to retail and small business
customers, and loans to sovereigns, central banks
and PSEs, of which:
924
109,297
23,264
157,198
188,211
933
110,818
19,854
155,283
186,129
21
With a risk weight of less than or equal to 35%
under the standardised approach for credit risk
924
25,230
550
2,220
3,026
933
24,281
572
2,212
3,073
22
Performing residential mortgages, of which:
24,711
19,436
302,438
257,444
24,463
24,646
296,999
253,755
23
With a risk weight of less than or equal to 35%
under the standardised approach for credit risk
18,420
15,262
233,308
191,519
17,835
19,167
232,763
191,296
24
Securities that are not in default and do not qualify
as HQLA, including exchange-traded equities
70,074
3,798
3,289
27,819
86,928
62,527
4,059
3,990
25,781
79,294
25
Assets with matching interdependent liabilities
11,957
13,178
26
Other assets:
41,963
85,033
208
143,888
120,783
41,394
87,659
248
137,064
119,797
27
Physical traded commodities, including gold
328
279
268
228
28
Assets posted as initial margin for derivative
contracts and contributions to default funds of
CCPs
40,907
1
34,771
41,293
1
35,099
29
NSFR derivative assets
8,684
1
8,684
7,894
1
7,894
30
NSFR derivative liabilities before deduction of
variation margin posted
78,589
1
15,718
70,744
1
14,149
31
All other assets not included in the above
categories
41,635
85,033
208
15,708
61,331
41,126
87,659
248
17,132
62,426
32
Off-balance sheet items
34,232
13,593
77,688
5,564
34,783
12,462
73,818
5,312
33
Total RSF
782,479
766,795
34
Net stable funding ratio (%)
1 The ≥ 1 year maturity bucket includes balances for which differentiation by maturity is not required.
30 June 2026 Pillar 3 Report |
UBS Group | Liquidity and funding 55
Asset encumbrance
Semi-annual |
The ENC table below provides a breakdown of on- and off-balance sheet assets between encumbered assets,
central bank facilities and unencumbered assets. The table is based on the regulatory scope of consolidation.
Excluding assets positioned at central banks, assets are presented as encumbered if they have been pledged as collateral
against an existing liability or are otherwise not available for securing additional funding. Assets pledged as collateral
mainly include assets pledged for securities financing transactions, derivative transactions or financial guarantees, and
mortgage loans, which serve as collateral against loans from Swiss mortgage institutions and US Federal Home Loan
Banks or issued covered bonds. Assets otherwise not available for securing additional funding mainly include assets
protected under client asset segregation rules and assets held in certain jurisdictions to comply with explicit minimum
local asset maintenance requirements.
Central bank facilities represent assets in use or remain available to secure transactions in a central bank facility. These
assets are positioned as collateral with central banks and mainly secure undrawn credit lines for payment, clearing and
settlement purposes, as well as undrawn contingency funding facilities.
All other assets are presented as unencumbered. This category consists of cash and securities readily realizable in the
normal course of business, which include our HQLA and unencumbered positions in our trading portfolio, and other
realizable assets that are not intended for obtaining secured funding in the normal course of business, but may be
considered potential sources of liquidity to meet medium- or longer-term funding needs, such as loans and advances to
customers and banks, as well as certain non-financial assets. Unencumbered assets that are considered to be available to
secure funding at the legal-entity level may be subject to restrictions that limit the total amount of assets available to the
Group as a whole. Assets that cannot be pledged as collateral represent assets that by their nature are not considered
available to secure funding or meet collateral needs.
Compared with 31 December 2025, encumbered on-balance sheet assets decreased by USD 3.2bn to USD 189.5bn,
primarily due to sales of equities in the Investment Bank, partly offset by an increase in loans pledged as collateral.
Encumbered off-balance sheet assets increased by USD 106.7bn to USD 621.5bn, mainly due to higher client activity
levels driving non-cash collateral demand in the Investment Bank, along with increased securities financing transactions
and market-making activity in Group Treasury. Total central bank facilities were largely unchanged at USD 59.0bn. The
USD 2.4bn increase in off-balance sheet central bank facilities was largely offset by a USD 2.0bn decrease in on-balance
sheet central bank facilities, mainly reflecting collateral optimization in Group Treasury and an increase in mortgage loans
pledged with the Federal Reserve Bank of New York. Total unencumbered on-balance sheet assets increased by
USD 92.2bn to USD 1,453.4bn, primarily driven by a USD 77.0bn increase from financial assets measured at fair value
through profit or loss, mainly reflecting the positive effect of new derivative trades, as well as mark-to-market valuation
effects from equity and foreign currency derivative contracts, and client-driven increases in trading assets, brokerage
receivables and cash collateral receivables on derivative instruments in the Investment Bank. Unencumbered off-balance
sheet assets increased by USD 14.6bn to USD 158.6bn, mainly driven by higher security collateral borrowing to support
client loan demand in the Investment Bank.
›
Refer to the “CC2: Reconciliation of accounting balance sheet to balance sheet under the regulatory scope of consolidation” table
in the “Going and gone concern requirements and eligible capital” section of this report for more information about the
reconciliation of the balance sheet under IFRS Accounting Standards to the balance sheet according to the regulatory scope of
consolidation
30 June 2026 Pillar 3 Report |
UBS Group | Liquidity and funding 56
ENC: Asset encumbrance
USD m
Encumbered assets excluding central bank
facilities
Central bank
facilities
Unencumbered assets
Total Group
of which
assets
pledged
as collateral
of which
assets
otherwise
restricted and
not available
to secure
funding
Total
encumbered
assets
of which
unencumbered
assets
of which
assets that
cannot be
pledged as
collateral
Total
unencumbered
assets
Balance sheet
Cash and balances at central banks
1
2
Amounts due from banks
Receivables from securities financing transactions measured
at amortized cost
Cash collateral receivables on derivative instruments
Loans and advances to customers
3
Other financial assets measured at amortized cost
4
5
Total financial assets measured at amortized cost
Financial assets at fair value held for trading
4
Derivative financial instruments
Brokerage receivables
Financial assets at fair value not held for trading
4
Total financial assets measured at fair value through
profit or loss
Financial assets measured at fair value through other
comprehensive income
Non-financial assets
Total balance sheet assets as of 30 June 2026
6
Total balance sheet assets as of 31 December 2025
6
Off-balance sheet
Fair value of securities accepted as collateral
as of 30 June 2026
Fair value of securities accepted as collateral
as of 31 December 2025
1 Predominantly reflects assets pledged to the depositor protection system in Switzerland. 2 Includes cash placed at central banks to meet local statutory minimum reserve requirements (30 June 2026: USD 13.3bn;
31 December 2025: USD 14.6bn). 3 Mortgage loans that serve as collateral against outstanding loans from Swiss mortgage institutions, US Federal Home Loan Banks and issued covered bonds. 4 Includes assets
pledged as collateral that may be sold or repledged by counterparties. 5 Mainly includes cash collateral provided to exchanges and clearing houses to secure securities trading activity through those counterparties.
6 Includes high-quality liquid assets (30 June 2026: USD 337.3bn; 31 December 2025: USD 328.2bn).
30 June 2026 Pillar 3 Report |
UBS Group | Requirements for global systemically important banks and related indicators 57
Requirements for global systemically important banks
and related indicators
GSIB1: Disclosure of G-SIB indicators
Semi-annual |
The Financial Stability Board (the FSB) has determined that UBS is a global systemically important bank (a G-SIB),
using an indicator-based methodology adopted by the Basel Committee on Banking Supervision (the BCBS). Banks that
qualify as G-SIBs are required to disclose 13 high-level indicators annually for assessing the systemic importance of G-SIBs
as defined by the BCBS. These indicators are used for the G-SIB score calculation and cover five categories: size, cross-
jurisdictional activity, interconnectedness, substitutability / financial institution infrastructure, and complexity.
In November 2025, the FSB, in consultation with the BCBS and national authorities, published the 2025 list of G-SIBs.
Based on the published indicators, G-SIBs are subject to additional common equity tier 1 (CET1) capital buffer
requirements in a range from 1.0% to 3.5%. In November 2025, the FSB confirmed that, based on the 31 December
2024 indicators, the additional CET1 capital buffer requirement for the UBS Group will remain at 1.5%. As our Swiss
systemically relevant bank (SRB) Basel III capital requirements remain above the BCBS requirements, including the G-SIB
buffer, we are not affected by these additional G-SIB requirements.
The BCBS introduced a leverage ratio buffer for G-SIBs as a part of the finalization of the Basel III framework announced
in December 2017. The leverage ratio buffer is set at 50% of risk-weighted higher-loss absorbency requirements. In
Switzerland, the amendments to the Capital Adequacy Ordinance that incorporate the final Basel III standards into Swiss
law entered into force on 1 January 2025. As our Swiss SRB requirements remain above the BCBS requirements, these
changes did not increase our requirements.
Our G-SIB indicators as of 31 December 2025 were published in June 2026 under “Pillar 3 disclosures” at
ubs.com/investors
.
30 June 2026 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | Introduction 58
Significant regulated subsidiaries
and sub-groups
Introduction
Scope of disclosures in these sections
The sections below include capital and other regulatory information as of 30 June 2026 for UBS AG consolidated, UBS AG
standalone, UBS Switzerland AG standalone, UBS Europe SE consolidated and UBS Americas Holding LLC consolidated.
Capital information in the following sections is based on Pillar 1 capital requirements. Entities may be subject to significant
additional Pillar 2 requirements, which represent additional amounts of capital considered necessary and are agreed with
regulators based on the risk profile of the respective entity.
UBS AG consolidated
Key metrics for the second quarter of 2026
Quarterly |
The table below is based on the Swiss Financial Market Supervisory Authority (FINMA) Ordinance on the Disclosure
Obligations of Banks and Securities Firms (DisO-FINMA) rules and IFRS Accounting Standards.
During the second quarter of 2026, tier 1 capital increased by USD 0.7bn to USD 94.8bn. Common equity tier 1 (CET1)
capital increased by USD 0.8bn to USD 71.6bn, mainly driven by operating profit before tax of USD 2.9bn, partly offset
by additional dividend accruals of USD 1.8bn, current tax expenses of USD 0.5bn and negative foreign currency
translation effects of USD 0.3bn. Additional tier 1 (AT1) capital issued by the Group and on lent to UBS AG decreased by
USD 0.1bn to USD 23.1bn, reflecting the redemption of USD 1.5bn of AT1 capital instruments and negative impacts from
interest rate risk hedge, foreign currency translation and other effects, largely offset by the issuance of new AT1 capital
instruments equivalent to USD 1.5bn.
Risk-weighted assets (RWA) increased by USD 3.0bn to USD 500.4bn, driven by a USD 6.0bn increase resulting from asset
size and other movements, partly offset by a USD 1.8bn decrease from currency effects and USD 1.2bn from model
updates and methodology changes.
The leverage ratio denominator (the LRD) decreased by USD 5.3bn to USD 1,650.1bn, mainly due to a USD 9.3bn
decrease from currency effects, partly offset by a USD 4.1bn increase from asset size and other movements. The asset
size movement was mainly due to increases in trading assets, lending assets and off-balance sheet exposures. These
increases were partly offset by decreases in derivative exposures and cash and balances at central banks.
Correspondingly, the CET1 capital ratio of UBS AG consolidated increased to 14.3% from 14.2%, reflecting the
aforementioned increase in CET1 capital, partly offset by the aforementioned increase in RWA. The Basel III leverage ratio
was broadly stable at 5.7%.
30 June 2026 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG consolidated 59
The quarterly average liquidity coverage ratio of UBS AG consolidated was largely unchanged at 172.5%, remaining
above the prudential requirement communicated by FINMA. Average net cash outflows increased by USD 4.5bn to
USD 198.4bn, primarily reflecting lower inflows from lending assets and securities financing transactions. The effect of
the increase in net cash outflows was offset by a USD 7.8bn increase in average high-quality liquid assets to USD 342.0bn,
mainly reflecting higher cash available due to increases in customer deposits, debt issued and net brokerage payables,
partly offset by lower cash available from funding of lending assets, margin requirements and dividend payment to
UBS Group AG, as well as a decrease in securities financing transactions.
As of 30 June 2026, the net stable funding ratio of UBS AG consolidated decreased 1.4 percentage points to 114.7%,
remaining above the prudential requirement communicated by FINMA. Available stable funding increased by USD 5.3bn
to USD 892.7bn, mainly driven by an increase in debt issued designated at fair value, partly offset by the tenor roll down
of TLAC-eligible senior unsecured debt instruments on lent from UBS Group AG. Required stable funding increased by
USD 14.1bn to USD 778.4bn, mainly driven by higher trading assets and lending assets.
KM1: Key metrics
USD m, except where indicated
30.6.26
31.3.26
31.12.25
30.9.25
30.6.25
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4a
Total risk-weighted assets (pre-floor)
4b
Minimum capital requirement
1
Risk-based capital ratios as a percentage of RWA
5
Common equity tier 1 ratio (%)
5b
Common equity tier 1 ratio (%) (pre-floor)
6
Tier 1 ratio (%)
6b
Tier 1 ratio (%) (pre-floor)
7
Total capital ratio (%)
7b
Total capital ratio (%) (pre-floor)
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
9a
Additional countercyclical buffer for Swiss mortgage loans (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
2
11
Total of bank CET1 specific buffer requirements (%)
3
12
CET1 available after meeting the bank’s minimum capital requirements (%)
4
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
5
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
14c
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
5
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
14e
Minimum capital requirements
6
Liquidity coverage ratio (LCR)
7
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
16a
of which: cash outflows
16b
of which: cash inflows
17
LCR (%)
172.46
172.39
176.24
178.96
179.45
Net stable funding ratio (NSFR)
18
Total available stable funding
19
Total required stable funding
20
NSFR (%)
114.68
116.10
115.65
118.59
120.91
1 Calculated as 8% of total RWA, based on total capital minimum requirements, excluding CET1 buffer requirements. 2 Swiss SRB going and gone concern requirements and information for UBS AG consolidated
are provided below in this section. 3 Excludes non-BCBS capital buffer requirements for risk-weighted positions that are directly or indirectly backed by residential properties in Switzerland. 4 Represents the CET1
ratio that is available to meet buffer requirements. Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and, where applicable, minus the BCBS tier 2 capital requirement met with CET1 capital.
5 There is currently no temporary exemption of central bank reserves for UBS. 6 The higher of capital requirements based on 8% of RWA or 3% of LRD. 7 Calculated after the application of haircuts and inflow
and outflow rates, as well as, where applicable, caps on Level 2 assets and cash inflows. Calculated based on an average of 60 data points in the second quarter of 2026 and 62 data points in the first quarter of
2026. For the prior-quarter data points, refer to the respective Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information.
30 June 2026 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG consolidated 60
Swiss systemically relevant bank going and gone concern requirements and information
Quarterly |
The tables below provide details of the Swiss systemically relevant bank RWA- and LRD-based going and gone
concern requirements and information as required by FINMA; details regarding eligible gone concern instruments are
also provided below.
Outstanding total loss-absorbing capacity-eligible unsecured debt instruments are eligible to meet gone concern
requirements until one year before maturity.
More information about the going and gone concern requirements is provided in the “Total loss-absorbing capacity”
section of the UBS AG Annual Report 2025, available under “Annual reporting” at
ubs.com/investors
.
Swiss SRB going and gone concern requirements and information
As of 30.6.26
RWA
LRD
USD m, except where indicated
in %
in %
Required going concern capital
Total going concern capital
1
1
Common equity tier 1 capital
2
3
of which: minimum capital
of which: buffer capital
of which: countercyclical buffer
Maximum additional tier 1 capital
2
of which: additional tier 1 capital
of which: additional tier 1 buffer capital
Eligible going concern capital
Total going concern capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
4
of which: high-trigger loss-absorbing additional tier 1 capital
Required gone concern capital
Total gone concern loss-absorbing capacity
5,6,7
of which: base requirement including add-ons for market share and LRD
8
8
Eligible gone concern capital
Total gone concern loss-absorbing capacity
9
TLAC-eligible unsecured debt
Total loss-absorbing capacity
Required total loss-absorbing capacity
Eligible total loss-absorbing capacity
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
1 Includes applicable add-ons of 1.90% for risk-weighted assets (RWA) and 0.58% for leverage ratio denominator (LRD). For the RWA -based requirement the add-on includes 0.86% for market share, 0.79% for
LRD, 0.23% reflecting a Pillar 2 capital add-on for the residual exposure (after collateral mitigation) to hedge funds, private equity and family offices, effective 1 January 2025, and 1 basis point reflecting a Pillar 2
capital add-on of USD 40m related to the supply chain finance funds matter at Credit Suisse. For the LRD-based requirement the add-on includes 0.30% for market share and 0.28% for LRD. 2 Includes the Pillar 2
add-on for the residual exposure (after collateral mitigation) to hedge funds, private equity and family offices of 0.17% for CET1 capital and 0.07% for AT1 capital, effective 1 January 2025. For AT1 capital under
Pillar 1 requirements a maximum of 4.3% of AT1 capital can be used to meet going concern requirements; 4.37% includes the aforementioned Pillar 2 capital add-on. 3 Our CET1 leverage ratio requirement of
3.58% consists of a 1.5% base requirement, a 1.5% base buffer capital requirement, a 0.28% LRD add-on requirement and a 0.30% market share add-on requirement based on our Swiss credit business. 4 UBS
meets its minimum going concern capital requirements with CET1 capital and AT1 capital. As UBS exceeds its minimum going concern requirements, the actual available and eligible AT1 capital is above the AT1
capital used to meet the minimum requirements (which is capped at 4.37% as explained in footnote 2 above). 5 A maximum of 25% of the gone concern requirements can be met with instruments that have a
remaining maturity of between one and two years. Once at least 75% of the minimum gone concern requirement has been met with instruments that have a remaining maturity of greater than two years, all instruments
that have a remaining maturity of between one and two years remain eligible to be included in the total gone concern capital. 6 Systemically important banks (SIBs) are subject to base gone concern capital
requirements equivalent to 75% of the total going concern requirements (excluding countercyclical buffer requirements and the Pillar 2 add-ons). 7 FINMA has the authority to impose a surcharge of up to 25% of
the total going concern capital requirements (excluding countercyclical buffer requirements and the Pillar 2 add-ons) should obstacles to an SIB’s resolvability be identified in future resolvability assessments. 8 Includes
applicable add-ons of 1.24% for RWA and 0.43% for LRD. 9 Includes an add-back of 45% of unrealized gains from financial assets measured at fair value through other comprehensive income. Such gains do not
qualify as CET1 capital, but 45% of these gains can be recognized as gone concern capital.
30 June 2026 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG consolidated 61
Swiss SRB going and gone concern information
USD m, except where indicated
30.6.26
31.3.26
31.12.25
Eligible going concern capital
Total going concern capital
Total tier 1 capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
of which: high-trigger loss-absorbing additional tier 1 capital
of which: low-trigger loss-absorbing additional tier 1 capital
Eligible gone concern capital
Total gone concern loss-absorbing capacity
1
TLAC-eligible unsecured debt
Total loss-absorbing capacity
Total loss-absorbing capacity
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
of which: common equity tier 1 capital ratio
Gone concern loss-absorbing capacity ratio
Total loss-absorbing capacity ratio
Leverage ratios (%)
Going concern leverage ratio
of which: common equity tier 1 leverage ratio
Gone concern leverage ratio
Total loss-absorbing capacity leverage ratio
1 Includes an add-back of 45% of unrealized gains from financial assets measured at fair value through other comprehensive income. Such gains do not qualify as CET1 capital, but 45% of these gains can be
recognized as gone concern capital.
UBS AG standalone
Key metrics for the second quarter of 2026
Quarterly |
The table below is based on the Swiss Financial Market Supervisory Authority (FINMA) Ordinance on the Disclosure
Obligations of Banks and Securities Firms (DisO-FINMA) rules and IFRS Accounting Standards.
During the second quarter of 2026, tier 1 capital increased by USD 2.7bn to USD 99.4bn. Common equity tier 1 (CET1)
capital increased by USD 2.8bn to USD 76.3bn, mainly driven by operating profit before tax of USD 5.0bn, partly offset
by additional dividend accruals of USD 1.8bn. Additional tier 1 (AT1) capital issued by the Group and on lent to UBS AG
decreased by USD 0.1bn to USD 23.1bn, reflecting the redemption of USD 1.5bn of AT1 capital instruments and negative
impacts from interest rate risk hedge, foreign currency translation and other effects, largely offset by the issuance of new
AT1 capital instruments equivalent to USD 1.5bn.
Risk-weighted assets (RWA) increased by USD 2.7bn to USD 510.7bn, primarily due to an increase in market risk RWA in
Group Treasury from hedging activities, partly offset by decreases in credit and counterparty credit risk RWA and RWA on
investments in subsidiaries.
The leverage ratio denominator (the LRD) increased by USD 4.3bn to USD 931.8bn, driven by a USD 7.8bn increase from
asset size and other movements, partly offset by a USD 3.6bn decrease from currency effects. The asset size movement
was mainly driven by increases in trading assets, securities financing transactions, high-quality liquid asset (HQLA)
portfolio securities and off-balance sheet exposures. These increases were partly offset by decreases in cash and balances
at central banks, derivatives exposures, and lending assets.
Correspondingly, the CET1 capital ratio of UBS AG standalone increased to 14.9% from 14.5%, reflecting the
aforementioned increase in CET1 capital, partly offset by the aforementioned increase in RWA. The Basel III leverage ratio
increased to 10.7% from 10.4%, reflecting the aforementioned increase in tier 1 capital, partly offset by the
aforementioned increase in the LRD.
30 June 2026 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG standalone 62
The quarterly average liquidity coverage ratio (the LCR) of UBS AG standalone decreased 14.3 percentage points to
216.9%, remaining above the prudential requirement communicated by FINMA. The movement in the quarterly average
LCR was primarily driven by a USD 3.9bn increase in average net cash outflows to USD 71.3bn, mainly reflecting lower
net inflows from securities financing transactions and intercompany funding, and higher net cash outflows from debt
issued at fair value, partly offset by lower outflows from customer deposits. Average HQLA decreased by USD 1.3bn to
USD 154.5bn, mainly reflecting lower cash available from higher funding to UBS Switzerland AG, lower funding from
UBS Group AG and lower customer deposits, partly offset by higher cash proceeds from debt issued measured at
amortized cost and lower lending assets.
As of 30 June 2026, the net stable funding ratio of UBS AG standalone was largely unchanged at 90.8%, remaining
above the prudential requirement communicated by FINMA. Available stable funding increased by USD 9.4bn to
USD 406.9bn, mainly driven by an increase in debt issued designated at fair value and higher regulatory capital, partly
offset by the tenor roll down of TLAC-eligible senior unsecured debt instruments on lent from UBS Group AG. Required
stable funding increased by USD 13.5bn to USD 448.0bn, mainly driven by higher trading assets.
KM1: Key metrics
USD m, except where indicated
30.6.26
31.3.26
31.12.25
30.9.25
30.6.25
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
1
4
Total risk-weighted assets (RWA)
4a
Total risk-weighted assets (pre-floor)
4b
Minimum capital requirement
2
Risk-based capital ratios as a percentage of RWA
1
5
Common equity tier 1 ratio (%)
5b
Common equity tier 1 ratio (%) (pre-floor)
6
Tier 1 ratio (%)
6b
Tier 1 ratio (%) (pre-floor)
7
Total capital ratio (%)
7b
Total capital ratio (%) (pre-floor)
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
9a
Additional countercyclical buffer for Swiss mortgage loans (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
3
11
Total of bank CET1 specific buffer requirements (%)
4
12
CET1 available after meeting the bank’s minimum capital requirements (%)
5
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
6
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
14c
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
6
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
14e
Minimum capital requirements
7
Liquidity coverage ratio (LCR)
8
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
16a
of which: cash outflows
16b
of which: cash inflows
17
LCR (%)
216.88
Net stable funding ratio (NSFR)
9
18
Total available stable funding
19
Total required stable funding
20
NSFR (%)
90.82
91.49
90.68
96.20
96.73
1 Based on phase-in rules for RWA. Refer to “Swiss systemically relevant bank going and gone concern requirements and information” below for more information. 2 Calculated as 8% of total RWA, based on total
capital minimum requirements, excluding CET1 buffer requirements. 3 Swiss SRB going and gone concern requirements and information for UBS AG standalone are provided below in this section. 4 Excludes non-
BCBS capital buffer requirements for risk-weighted positions that are directly or indirectly backed by residential properties in Switzerland. 5 Represents the CET1 ratio that is available to meet buffer requirements.
Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and, where applicable, minus the BCBS tier 2 capital requirement met with CET1 capital. 6 There is currently no temporary exemption of
central bank reserves for UBS. 7 The higher of capital requirements based on 8% of RWA or 3% of LRD. 8 Calculated after the application of haircuts and inflow and outflow rates, as well as, where applicable,
caps on Level 2 assets and cash inflows. Calculated based on an average of 60 data points in the second quarter of 2026 and 62 data points in the first quarter of 2026. For the prior-quarter data points, refer to the
respective Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information. 9 In accordance with Art. 17h para. 3 and 4 of the Liquidity Ordinance, UBS AG standalone is required to
maintain a minimum NSFR of at least 80% without taking into account excess funding of UBS Switzerland AG and 100% after taking into account such excess funding.
30 June 2026 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG standalone 63
Swiss systemically relevant bank going and gone concern requirements and information
Quarterly |
The tables below provide details of the Swiss systemically relevant bank RWA- and LRD-based going and gone
concern requirements and information as required by FINMA; details regarding eligible gone concern instruments are
also provided below.
UBS AG standalone is subject to a gone concern capital requirement based on the sum of: (i) the nominal value of the
gone concern instruments issued by UBS entities and held by the parent firm; (ii) 75% of the going concern capital
requirements resulting from third-party exposure on a standalone basis; and (iii) a buffer requirement equal to 30% of
the Group’s gone concern capital requirement on UBS AG’s consolidated exposure. The gone concern capital requirement
is the higher of the RWA- and LRD-based requirements, calculated separately. The gone concern capital coverage ratio
reflects how much gone concern capital is available to meet the gone concern requirement. Outstanding total loss-
absorbing capacity-eligible unsecured debt instruments are eligible to meet gone concern requirements until one year
before maturity.
More information about the going and gone concern requirements is provided in the “UBS AG standalone” section of
the 31 December 2025 Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
.
Swiss SRB going and gone concern requirements and information
As of 30.6.26
RWA, phase-in
RWA, fully applied as of 1.1.28
1
LRD
USD m, except where indicated
in %
in %
in %
Required going concern capital
Total going concern capital
2
2
2
Common equity tier 1 capital
3
3
of which: minimum capital
of which: buffer capital
of which: countercyclical buffer
Maximum additional tier 1 capital
3
3
of which: additional tier 1 capital
of which: additional tier 1 buffer capital
Eligible going concern capital
Total going concern capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
4
of which: high-trigger loss-absorbing additional tier 1 capital
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
Required gone concern capital
5
Higher of RWA- or LRD-based
Total gone concern loss-absorbing capacity
Eligible gone concern capital
Total gone concern loss-absorbing capacity
6
TLAC-eligible unsecured debt
Gone concern capital coverage ratio
1 Fully applied relates to participation RWA. Direct and indirect investments including holding of regulatory capital instruments in Switzerland-domiciled subsidiaries and for direct and indirect investments including
holding of regulatory capital instruments in foreign-domiciled subsidiaries are risk weighted at 240% and 360%, respectively, for the current year. As per current rules, risk weights will gradually increase by 5 percentage
points per year for Switzerland-domiciled investments and 20 percentage points per year for foreign-domiciled investments until the fully applied risk weights of 250% and 400%, respectively, are applied. 2 Includes
applicable add-ons of 1.88% for risk-weighted assets (RWA, phase-in), 1.87% for risk-weighted assets (RWA, fully applied) and 0.58% for leverage ratio denominator (LRD). For the RWA-based requirement the add-
on includes 0.86% for market share, 0.79% for LRD and 1 basis point for RWA phase-in and 1 basis point for RWA fully applied reflecting a Pillar 2 capital add-on of USD 40m related to the supply chain finance
funds matter at Credit Suisse. An additional 22 basis points for RWA phase-in and 21 basis points for RWA fully applied reflect a Pillar 2 capital add-on for the residual exposure (after collateral mitigation) to hedge
funds, private equity and family offices, effective 1 January 2025. For the LRD-based requirement the add-on includes 0.30% for market share and 0.28% for LRD. 3 Includes the Pillar 2 add-on for the residual
exposure (after collateral mitigation) to hedge funds, private equity and family offices of 0.15% for CET1 capital and 0.06% for AT1 capital for RWA phase-in and 0.15% for CET1 capital and 0.06% for AT1 capital
for RWA fully applied, effective 1 January 2025. For AT1 capital under Pillar 1 requirements a maximum of 4.3% of AT1 capital can be used to meet going concern requirements; 4.36% for RWA phase-in and 4.36%
for RWA fully applied include the aforementioned Pillar 2 capital add-on. 4 UBS meets its minimum going concern capital requirements with CET1 capital and AT1 capital. As UBS exceeds its minimum going concern
requirements, the actual available and eligible AT1 capital is above the AT1 capital used to meet the minimum requirements (which is capped at 4.36% as explained in footnote 3 above). 5 A maximum of 25% of
the gone concern requirements can be met with instruments that have a remaining maturity of between one and two years. Once at least 75% of the minimum gone concern requirement has been met with instruments
that have a remaining maturity of greater than two years, all instruments that have a remaining maturity of between one and two years remain eligible to be included in the total gone concern capital. 6 Includes an
add-back of 45% of unrealized gains from financial assets measured at fair value through other comprehensive income. Such gains do not qualify as CET1 capital, but 45% of these gains can be recognized as gone
concern capital.
30 June 2026 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS AG standalone 64
Swiss SRB going and gone concern information
USD m, except where indicated
30.6.26
31.3.26
31.12.25
Eligible going concern capital
Total going concern capital
Total tier 1 capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
of which: high-trigger loss-absorbing additional tier 1 capital
Eligible gone concern capital
Total gone concern loss-absorbing capacity
1
TLAC-eligible unsecured debt
Total loss-absorbing capacity
Total loss-absorbing capacity
Denominators for going and gone concern ratios
Risk-weighted assets, phase-in
of which: investments in Switzerland-domiciled subsidiaries
2
of which: investments in foreign-domiciled subsidiaries
2
Risk-weighted assets, fully applied as of 1.1.28
of which: investments in Switzerland-domiciled subsidiaries
2
of which: investments in foreign-domiciled subsidiaries
2
Leverage ratio denominator
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio, phase-in
of which: common equity tier 1 capital ratio, phase-in
Going concern capital ratio, fully applied as of 1.1.28
of which: common equity tier 1 capital ratio, fully applied as of 1.1.28
Leverage ratios (%)
Going concern leverage ratio
of which: common equity tier 1 leverage ratio
Capital coverage ratio (%)
Gone concern capital coverage ratio
1 Includes an add-back of 45% of unrealized gains from financial assets measured at fair value through other comprehensive income. Such gains do not qualify as CET1 capital, but 45% of these gains can be
recognized as gone concern capital. 2 Fully applied relates to participation RWA. Direct and indirect investments including holding of regulatory capital instruments in Switzerland-domiciled subsidiaries and for direct
and indirect investments including holding of regulatory capital instruments in foreign-domiciled subsidiaries are risk weighted at 240% and 360%, respectively, for the current year. As per current rules, risk weights
will gradually increase by 5 percentage points per year for Switzerland-domiciled investments and 20 percentage points per year for foreign-domiciled investments until the fully applied risk weights of 250% and
400%, respectively, are applied.
UBS Switzerland AG standalone
Key metrics for the second quarter of 2026
Quarterly |
The table below is based on the Swiss Financial Market Supervisory Authority (FINMA) Ordinance on the Disclosure
Obligations of Banks and Securities Firms (DisO-FINMA) rules and IFRS Accounting Standards.
During the second quarter of 2026, common equity tier 1 capital increased by CHF 0.4bn to CHF 21.8bn, mainly driven
by operating profit, partly offset by additional dividend accruals.
Total risk-weighted assets (RWA) increased by CHF 2.0bn to CHF 173.8bn, mainly driven by an increase in credit risk and
counterparty credit risk RWA.
The leverage ratio denominator (the LRD) increased by CHF 8.5bn to CHF 572.9bn, primarily reflecting higher cash and
balances at central banks, loan commitments, and derivative exposures.
30 June 2026 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Switzerland AG standalone 65
The quarterly average liquidity coverage ratio (the LCR) of UBS Switzerland AG increased 3.3 percentage points to
134.2%, remaining above the prudential requirement communicated by FINMA. The movement in the quarterly average
LCR was primarily driven by a CHF 6.6bn increase in average high-quality liquid assets to CHF 117.1bn, mainly reflecting
higher cash available from higher customer deposits and funding from UBS AG, partly offset by lower cash available from
an increase in lending assets. Average net cash outflows increased by CHF 2.9bn to CHF 87.3bn, mainly due to higher
outflows from customer deposits and securities financing transactions.
As of 30 June 2026, the net stable funding ratio of UBS Switzerland AG was stable at 124.2%, remaining above the
prudential requirement communicated by FINMA. Available stable funding increased by CHF 4.9bn to CHF 372.7bn,
mainly driven by higher customer deposits. Required stable funding increased by CHF 4.1bn to CHF 300.1bn, mainly due
to an increase in lending assets.
KM1: Key metrics
CHF m, except where indicated
30.6.26
31.3.26
31.12.25
30.9.25
30.6.25
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4a
Total risk-weighted assets (pre-floor)
4b
Minimum capital requirement
1
Risk-based capital ratios as a percentage of RWA
5
Common equity tier 1 ratio (%)
5b
Common equity tier 1 ratio (%) (pre-floor)
6
Tier 1 ratio (%)
6b
Tier 1 ratio (%) (pre-floor)
7
Total capital ratio (%)
7b
Total capital ratio (%) (pre-floor)
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
9a
Additional countercyclical buffer for Swiss mortgage loans (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
Total of bank CET1 specific buffer requirements (%)
2
12
CET1 available after meeting the bank’s minimum capital requirements (%)
3
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
4
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
14c
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
4
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
14e
Minimum capital requirements
5
Liquidity coverage ratio (LCR)
6
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
16a
of which: cash outflows
16b
of which: cash inflows
17
LCR (%)
Net stable funding ratio (NSFR)
7
18
Total available stable funding
19
Total required stable funding
20
NSFR (%)
124.21
124.29
125.24
126.02
128.55
1 Calculated as 8% of total RWA, based on total capital minimum requirements, excluding CET1 buffer requirements. 2 Excludes non-BCBS capital buffer requirements for risk-weighted positions that are directly
or indirectly backed by residential properties in Switzerland. 3 Represents the CET1 ratio that is available to meet buffer requirements. Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and,
where applicable, minus the BCBS tier 2 capital requirement met with CET1 capital. 4 There is currently no temporary exemption of central bank reserves for UBS. 5 The higher of capital requirements based on
8% of RWA or 3% of LRD. 6 Calculated after the application of haircuts and inflow and outflow rates, as well as, where applicable, caps on Level 2 assets and cash inflows. Calculated based on an average of
60 data points in the second quarter of 2026 and 62 data points in the first quarter of 2026. For the prior-quarter data points, refer to the respective Pillar 3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors, for more information. 7 UBS Switzerland AG is required to maintain a minimum NSFR of at least 100% on an ongoing basis, as set out in Art. 17h para. 1 of the Liquidity Ordinance. A portion of
the excess funding is used to fulfill the NSFR requirement of UBS AG standalone.
30 June 2026 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Switzerland AG standalone 66
Swiss systemically relevant bank going and gone concern requirements and information
Quarterly |
The tables below provide details of the Swiss systemically relevant bank (SRB) RWA- and LRD-based going and
gone concern requirements and information as required by FINMA; details regarding eligible gone concern instruments
are also provided below.
UBS Switzerland AG is considered an SRB under Swiss banking law and is subject to capital regulations on a standalone
basis. As of 30 June 2026, the going concern capital and leverage ratio requirements for UBS Switzerland AG standalone
were 15.37% (including a countercyclical buffer of 0.85%) and 5.08%, respectively.
The Swiss SRB framework and going concern requirements applicable to UBS Switzerland AG standalone are the same
as those applicable to UBS Group AG consolidated. The gone concern requirement corresponds to 62% of the Group’s
going concern requirements, excluding the countercyclical buffer requirements and Pillar 2 add-ons. Outstanding total
loss-absorbing capacity-eligible unsecured debt instruments are eligible to meet gone concern requirements until one
year before maturity.
The gone concern requirements were 9.00% for the RWA-based requirement and 3.15% for the LRD-based requirement.
›
Refer to “Capital and capital ratios of our significant regulated subsidiaries” in the “Capital management” section of the UBS
Group Annual Report 2025, available under “Annual reporting” at
ubs.com/investors
, for more information about the joint
liability of UBS AG and UBS Switzerland AG
Swiss SRB going and gone concern requirements and information
As of 30.6.26
RWA
LRD
CHF m, except where indicated
in %
in %
Required going concern capital
Total going concern capital
1
1
Common equity tier 1 capital
of which: minimum capital
of which: buffer capital
of which: countercyclical buffer
Maximum additional tier 1 capital
of which: additional tier 1 capital
of which: additional tier 1 buffer capital
Eligible going concern capital
Total going concern capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
2
of which: high-trigger loss-absorbing additional tier 1 capital
Required gone concern capital
3
Total gone concern loss-absorbing capacity
of which: base requirement including add-ons for market share and LRD
4
4
Eligible gone concern capital
Total gone concern loss-absorbing capacity
TLAC-eligible unsecured debt
Total loss-absorbing capacity
Required total loss-absorbing capacity
Eligible total loss-absorbing capacity
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
1 Includes applicable add-ons of 1.66% for risk-weighted assets (RWA) and 0.58% for leverage ratio denominator (LRD). 2 UBS meets its minimum going concern capital requirements with CET1 capital and AT1
capital. As UBS exceeds its minimum going concern capital requirements, the actual available and eligible AT1 capital is above the AT1 capital used to meet the minimum requirements (which is capped at 4.3%).
3 A maximum of 25% of the gone concern requirements can be met with instruments that have a remaining maturity of between one and two years. Once at least 75% of the minimum gone concern requirement
has been met with instruments that have a remaining maturity of greater than two years, all instruments that have a remaining maturity of between one and two years remain eligible to be included in the total gone
concern capital. 4 Includes applicable add-ons of 1.03% for RWA and 0.36% for LRD.
30 June 2026 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Switzerland AG standalone 67
Swiss SRB going and gone concern information
CHF m, except where indicated
30.6.26
31.3.26
31.12.25
Eligible going concern capital
Total going concern capital
Total tier 1 capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
of which: high-trigger loss-absorbing additional tier 1 capital
Eligible gone concern capital
Total gone concern loss-absorbing capacity
TLAC-eligible unsecured debt
Total loss-absorbing capacity
Total loss-absorbing capacity
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
of which: common equity tier 1 capital ratio
Gone concern loss-absorbing capacity ratio
Total loss-absorbing capacity ratio
Leverage ratios (%)
Going concern leverage ratio
of which: common equity tier 1 leverage ratio
Gone concern leverage ratio
Total loss-absorbing capacity leverage ratio
30 June 2026 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Europe SE consolidated 68
UBS Europe SE consolidated
Key metrics for the second quarter of 2026
Quarterly |
The table below provides information about the regulatory capital components, capital ratios, leverage ratio and
liquidity of UBS Europe SE consolidated based on Basel Committee on Banking Supervision Pillar 1 requirements and in
accordance with EU regulatory rules and IFRS Accounting Standards.
During the second quarter of 2026, available capital increased by EUR 0.2bn to EUR 3.9bn, primarily due to the issuance
of a new additional tier 1 (AT1) instrument and the recognition of the profit that is eligible as common equity tier 1
(CET1) capital as a result of the audit of the financial results, partially offset by CET1 capital repatriation to UBS AG. Risk-
weighted assets (RWA) decreased by EUR 0.6bn to EUR 16.0bn, mainly driven by a decrease in cash, derivative exposures
and credit valuation adjustment, partly offset by increases in loan facilities and market risk RWA. The leverage ratio
exposure decreased by EUR 3.8bn to EUR 60.3bn, mainly driven by lower over-the-counter derivatives replacement costs,
securities financing transactions, cash balances at central banks and decreases in nostro balances and trading assets.
The average liquidity coverage ratio (the LCR) remained well above the regulatory requirement of 100%, at 136.6%. The
movement in the quarterly average LCR was driven by a parallel increase of EUR 0.5bn
in total net cash outflows and an
increase of EUR 0.5bn in high-quality liquid assets. The net stable funding ratio (the NSFR) remained well above the
regulatory requirements of 100%, at 122.7%. The decrease in the NSFR was due to a EUR 1.8bn decrease in available
stable funding, driven by the repayment of long-term intercompany funding, as a result of lower Investment Bank funding
usage.
KM1: Key metrics
1,2
EUR m, except where indicated
30.6.26
31.3.26
3
31.12.25
30.9.25
30.6.25
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4a
Total risk-weighted assets (RWA) (pre-floor)
4b
Minimum capital requirement
4
Risk-based capital ratios as a percentage of RWA
5
CET1 ratio (%)
5b
CET1 ratio (%) (pre-floor)
6
Tier 1 ratio (%)
6b
Tier 1 ratio (%) (pre-floor)
7
Total capital ratio (%)
7b
Total capital ratio (%) (pre-floor)
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
9
Countercyclical buffer requirement (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
Total of bank CET1 specific buffer requirements (%)
12
CET1 available after meeting the bank’s minimum capital requirements (%)
5
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
14
Basel III leverage ratio (%) (including the impact of any applicable temporary
exemption of central bank reserves)
6,7
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
14e
Minimum capital requirements
8
Liquidity coverage ratio (LCR)
9
15
Total high-quality liquid assets (HQLA)
16
Total net cash outflow
17
LCR (%)
Net stable funding ratio (NSFR)
18
Total available stable funding
19
Total required stable funding
20
NSFR (%)
1 Based on applicable EU regulatory rules. 2 Row 9a of the FINMA template is applicable to the FINMA-regulated scope only and rows 14c and 14d have been removed because the EU does not require the disclosure
of mean values for SFTs. 3 Comparative figures have been restated to align with the regulatory reports as submitted to the European Central Bank. 4 Calculated as 8% of total RWA, based on total capital minimum
requirements, excluding CET1 buffer requirements. 5 Represents the CET1 ratio that is available for meeting buffer requirements. Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and after
considering, where applicable, CET1 capital that has been used to meet tier 1 and / or total capital ratio requirements under Pillar 1. 6 Calculated on the basis of tier 1 capital. 7 There is currently no temporary
exemption of central bank reserves for UBS Europe SE. 8 The higher of capital requirements based on 8% of RWA or 3% of LRD. 9 Figures are calculated based on a 12
‑
month average.
30 June 2026 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Americas Holding LLC consolidated 69
UBS Americas Holding LLC consolidated
Key metrics for the second quarter of 2026
Quarterly |
The table below is based on Basel Committee on Banking Supervision Pillar 1 requirements and in accordance
with US Basel III rules and generally accepted accounting principles in the US (US GAAP).
Effective 1 October 2025 until 2027, UBS Americas Holding LLC is subject to a stress capital buffer (an SCB) of 5.2%, in
addition to the minimum risk-based capital requirements. The SCB, subject to a floor of 2.5%, was determined by the
Federal Reserve Board following the completion of the 2025 Comprehensive Capital Analysis and Review (the CCAR)
based on Dodd–Frank Act Stress Test (DFAST) results and planned future dividends.
During the second quarter of 2026, the common equity tier 1 (CET1) capital ratio decreased 1.7 percentage points to
16.5%, and the tier 1 capital ratio decreased 1.8 percentage points to 20.0%. Both CET1 capital and tier 1 capital
decreased by USD 0.6bn, due to dividend paid in the second quarter of 2026, partly offset by net profit. Risk-weighted
assets (RWA) increased by USD 4.0bn to USD 81.0bn, driven by a USD 3.2bn increase in credit risk RWA, mainly in
derivatives, loans and undrawn commitments. In addition, there was a USD 0.8bn increase in market risk RWA, mainly
due to an increase in value-at-risk (VaR) and stressed VaR.
The tier 1 leverage ratio decreased 0.5 percentage points to 8.0%, primarily driven by the aforementioned capital
movements and a USD 4.0bn increase in leverage exposure. Similarly, the tier 1 supplementary leverage ratio (the SLR)
decreased 0.7 percentage points to 6.7%, primarily driven by the aforementioned capital movements and a USD 13.8bn
increase in the SLR exposure driven by increases in average assets and derivative exposures.
The average liquidity coverage ratio increased 3.1 percentage points to 124.0%, as high-quality liquid assets increased
by USD 2.0bn and net cash outflow by USD 1.0bn. The average net stable funding ratio increased 3.5 percentage points
to 129.9% in the second quarter of 2026, driven by a USD 2.5bn increase in available stable funding, which was primarily
due to an increase in long-term borrowing from UBS AG.
KM1: Key metrics
1
USD m, except where indicated
30.6.26
31.3.26
31.12.25
30.9.25
30.6.25
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
2
Tier 1
3
Total capital
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
4b
Minimum capital requirement
2
Risk-based capital ratios as a percentage of RWA
5
CET1 ratio (%)
6
Tier 1 ratio (%)
7
Total capital ratio (%)
Additional CET1 buffer requirements as a percentage of RWA
8
BCBS capital conservation buffer requirement (%)
8a
US stress capital buffer requirement (%)
9
Countercyclical buffer requirement (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
BCBS total of bank CET1 specific buffer requirements (%)
11a
US total bank specific capital buffer requirements (%)
12
CET1 available after meeting the bank’s minimum capital requirements (%)
3
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
4
14
Basel III leverage ratio (%)
5
14a
Total Basel III supplementary leverage ratio exposure measure
4
14b
Basel III supplementary leverage ratio (%)
5
Liquidity coverage ratio (LCR)
15
Total high-quality liquid assets (HQLA)
4
16
Total net cash outflow
4,6
17
LCR (%)
Net stable funding ratio (NSFR)
18
Total available stable funding
4
19
Total required stable funding
4,6
20
NSFR (%)
1 As the final Basel III standards have not been implemented in the US, rows that are not applicable have been removed from the FINMA template. 2 Calculated as 8% of total RWA, based on total minimum capital
requirements, excluding CET1 buffer requirements. 3 Represents the CET1 ratio that is available to meet buffer requirements. Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and, where
applicable, minus the BCBS additional tier 1 and tier 2 capital requirements met with CET1 capital. 4 Figures are calculated on a quarterly average. 5 Calculated on the basis of tier 1 capital. 6 Reflected at 85%
of the full amount in accordance with the Federal Reserve tailoring rule.
30 June 2026 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups | UBS Americas Holding LLC consolidated 70
Material sub-group entity – creditor ranking at legal entity level
Semi-annual |
a standalone basis.
As of 30 June 2026, UBS Americas Holding LLC had a total loss-absorbing capacity (TLAC) of USD 24.0bn after regulatory
capital deductions and adjustments. This amount included tier 1 capital of USD 16.2bn and USD 7.8bn of internal long-
term debt that is eligible as internal TLAC issued to UBS AG, a wholly owned subsidiary of the UBS Group AG resolution
entity.
TLAC2: Material sub-group entity – creditor ranking at legal entity level
As of 30.6.26
Creditor ranking
Total
USD m
1
2
3
4
1
Is the resolution entity the creditor / investor?
No
No
No
No
2
Description of creditor ranking
Common Equity
(most junior)
1
Preferred Shares
(Additional tier 1)
Subordinated
debt
Unsecured loans and
other pari passu
liabilities (most senior)
3
Total capital and liabilities net of credit risk mitigation
4
Subset of row 3 that are excluded liabilities
5
Total capital and liabilities less excluded liabilities (row 3 minus row 4)
6
Subset of row 5 that are eligible as TLAC
7
Subset of row 6 with 1 year ≤ residual maturity < 2 years
8
Subset of row 6 with 2 years ≤ residual maturity < 5 years
9
Subset of row 6 with 5 years ≤ residual maturity < 10 years
10
Subset of row 6 with residual maturity ≥ 10 years, but excluded perpetual
securities
11
Subset of row 6 that is perpetual securities
1 Equity attributable to shareholders, which includes share premium and reserves.
30 June 2026 Pillar 3 Report |
Appendix 71
Appendix
Abbreviations frequently used in our financial reports
A
ABS asset-backed securities
AG Aktiengesellschaft
AGM Annual General Meeting of
shareholders
AI artificial intelligence
A-IRB advanced internal ratings-
based
ALCO Asset and Liability
Committee
AMA advanced measurement
approach
AML anti-money laundering
AoA Articles of Association
APM alternative performance
measure
ARR alternative reference rate
ARS auction rate securities
ASF available stable funding
AT1 additional tier 1
AuM assets under management
B
BCBS Basel Committee on
Banking Supervision
BIS Bank for International
Settlements
BoD Board of Directors
C
CAO Capital Adequacy
Ordinance
CCAR Comprehensive Capital
Analysis and Review
CCF credit conversion factor
CCP central counterparty
CCR counterparty credit risk
CCRC Corporate Culture and
Responsibility Committee
CDS credit default swap
CEO Chief Executive Officer
CET1 common equity tier 1
CFO Chief Financial Officer
CGU cash-generating unit
CHF Swiss franc
CIO Chief Investment Office
CORC Compliance and
Operational Risk Control
CRM credit risk mitigation
CRO Chief Risk Officer
CST combined stress test
CUSIP Committee on Uniform
Security Identification
Procedures
CVA credit valuation adjustment
D
DBO defined benefit obligation
DCCP Deferred Contingent
Capital Plan
DFAST Dodd–Frank Act Stress Test
DisO-FINMA FINMA Ordinance on the
Disclosure Obligations of
Banks and Securities Firms
DM discount margin
DOJ US Department of Justice
DTA deferred tax asset
DVA debit valuation adjustment
E
EAD exposure at default
EB Executive Board
EC European Commission
ECB European Central Bank
ECL expected credit loss
EGM Extraordinary General
Meeting of shareholders
EIR effective interest rate
EL expected loss
EMEA Europe, Middle East and
Africa
EOP Equity Ownership Plan
EPS earnings per share
ESG environmental, social and
governance
ETD exchange-traded derivatives
ETF exchange-traded fund
EU European Union
EUR euro
EURIBOR Euro Interbank Offered Rate
EVE economic value of equity
EY Ernst & Young Ltd
F
FCA UK Financial Conduct
Authority
FDIC Federal Deposit Insurance
Corporation
FINMA Swiss Financial Market
Supervisory Authority
FMIA Swiss Financial Market
Infrastructure Act
FRTB Fundamental Review of the
Trading Book
FSB Financial Stability Board
FTA Swiss Federal Tax
Administration
FVA funding valuation
adjustment
FVOCI fair value through other
comprehensive income
FVTPL fair value through profit or
loss
FX foreign exchange
G
GAAP generally accepted
accounting principles
GBP pound sterling
GDP gross domestic product
GEB Group Executive Board
GHG greenhouse gas
GCORC Group Compliance and
Operational Risk Control
GRI Global Reporting Initiative
G-SIB global systemically
important bank
H
HQLA
high-quality liquid assets
I
IAS International Accounting
Standards
IASB International Accounting
Standards Board
IBOR interbank offered rate
IFRIC International Financial
Reporting Interpretations
Committee
IFRS accounting standards
Accounting issued by the IASB
Standards
IRB internal ratings-based
IRRBB interest rate risk in the
banking book
ISDA International Swaps and
Derivatives Association
ISIN International Securities
Identification Number
30 June 2026 Pillar 3 Report |
Appendix 72
Abbreviations frequently used in our financial reports (continued)
K
KRT Key Risk Taker
L
LAS liquidity-adjusted stress
LCR liquidity coverage ratio
LGD loss given default
LIBOR London Interbank Offered
Rate
LLC limited liability company
LoD lines of defense
LRD leverage ratio denominator
LTIP Long-Term Incentive Plan
LTV loan-to-value
M
M&A mergers and acquisitions
MRT Material Risk Taker
N
NII net interest income
NSFR net stable funding ratio
NYSE New York Stock Exchange
O
OCA own credit adjustment
OCI other comprehensive
income
OECD Organisation for Economic
Co-operation and
Development
OTC over-the-counter
P
PCI purchased credit impaired
PD probability of default
PIT point in time
PPA purchase price allocation
Q
QCCP qualifying central
counterparty
R
RBC risk-based capital
RbM risk-based monitoring
REIT real estate investment trust
RMBS residential mortgage-
backed securities
RniV risks not in VaR
RoCET1 return on CET1 capital
RoU right-of-use
rTSR relative total shareholder
return
RWA risk-weighted assets
S
SA standardized approach or
société anonyme
SA-CCR standardized approach for
counterparty credit risk
SAR Special Administrative
Region of the People’s
Republic of China
SDG Sustainable Development
Goal
SEC US Securities and Exchange
Commission
SFT securities financing
transaction
SIBOR Singapore Interbank
Offered Rate
SICR significant increase in credit
risk
SIX SIX Swiss Exchange
SME small and medium-sized
entities
SMF Senior Management
Function
SNB Swiss National Bank
SOR Singapore Swap Offer Rate
SPPI solely payments of principal
and interest
SRB systemically relevant bank
SVaR stressed value-at-risk
T
TBTF too big to fail
TCFD Task Force on Climate-
related Financial Disclosures
TIBOR Tokyo Interbank Offered
Rate
TLAC total loss-absorbing capacity
TTC through the cycle
U
USD US dollar
V
VaR value-at-risk
VAT
value-added tax
This is a general list of the abbreviations frequently used in our financial reporting. Not all of the listed abbreviations may
appear in this particular report.
30 June 2026 Pillar 3 Report |
Appendix 73
Cautionary statement |
of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating
to securities of or relating to UBS Group AG, UBS AG or their affiliates should be made on the basis of this report. Refer to UBS’s most recent annual report on
Form 20-
F,
quarterly reports and other information furnished to or filed with the US Securities and Exchange Commission (the SEC) on Form 6-K, available at
ubs.com/investors
, for additional information.
Rounding |
disclosed in text and tables are calculated on the basis of unrounded figures. Absolute changes between reporting periods disclosed in the text, which can be
derived from numbers presented in related tables, are calculated on a rounded basis.
Tables |
available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis. Values
that are zero on a rounded basis can be either negative or positive on an actual basis.
Websites |
of any such websites into this report.
UBS Group AG
P.O. Box
CH-8098 Zurich
ubs.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this
report to be signed on their behalf by the undersigned, thereunto duly authorized.
UBS Group AG
By: _/s/ David Kelly _____________
Name: David Kelly
Title: Managing Director
By: _/s/ Ella Copetti-Campi ______________
Name: Ella Copetti-Campi
Title: Executive Director
UBS AG
By: _/s/ David Kelly _____________
Name: David Kelly
Title: Managing Director
By: _/s/ Ella Copetti-Campi ______________
Name: Ella Copetti-Campi
Title: Executive Director
Date: August 14, 2026