Ubs AG 6-K, filed Mar 17, 2025
Ubs AG (AMUB)
6-K
2025-03-17
For: 2024-12-31
View Original
Added on
July 04, 2026
About this 6-K
Ubs AG filed this 6-K on March 17, 2025.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Date: March 17, 2025
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 registrant files 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 UBS AG audited standalone financial statements for the year ended 31 December
2024, as well as the consent of Ernst & Young Ltd. with respect thereto, which appear immediately following this
page.
31 December 2024
Table of contents
1
8
8
9
10
11
12
1
12
2
17
3a
17
3b
18
4
18
5
19
6
19
7
20
8
20
9
21
10
21
11
22
12a
23
12b
23
13
24
13a
24
13b
25
13c
27
13d
29
13e
33
14
34
15
36
16a
36
16b
36
17a
37
17b
37
18
38
19
39
20
39
21
40
22a
40
22b
41
23
42
24
43
25
43
26a
43
26b
44
45
45
46
49
50
UBS AG standalone
UBS AG standalone
UBS AG standalone
UBS AG standalone
UBS AG standalone
UBS AG standalone
UBS AG standalone
UBS AG standalone financial statements (audited)
UBS AG standalone financial statements (audited)
Income statement
USD m
CHF m
For the year ended
For the year ended
Note
31.12.24
31.12.23
31.12.24
31.12.23
Interest and discount income
30,753
18,473
27,217
16,540
Interest and dividend income from trading portfolio
4,063
2,664
3,607
2,389
Interest and dividend income from financial investments
1,544
1,216
1,364
1,089
Interest expense
(39,684)
(24,683)
(35,129)
(22,104)
Gross interest income
(3,324)
(2,330)
(2,940)
(2,086)
Credit loss (expense) / release
13
(206)
(13)
(179)
(13)
Net interest income
(3,531)
(2,343)
(3,120)
(2,099)
Fee and commission income from securities and investment business and other fee and
commission income
4,256
2,435
3,760
2,193
Credit-related fees and commissions
330
125
292
111
Fee and commission expense
(1,041)
(705)
(920)
(632)
Net fee and commission income
3,545
1,855
3,132
1,672
Net trading income
9,451
7,253
8,334
6,527
Net income from disposal of financial investments
68
43
52
38
Dividend income from investments in subsidiaries and other participations
4
6,275
5,430
5,730
4,862
Income from real estate holdings
463
405
409
363
Sundry ordinary income
5
2,814
1,596
2,470
1,426
Sundry ordinary expenses
5
(800)
(407)
(700)
(366)
Other income from ordinary activities
8,821
7,068
7,960
6,323
Total operating income
18,286
13,832
16,307
12,422
Personnel expenses
6
5,511
3,408
4,868
3,063
General and administrative expenses
7
8,097
4,118
7,144
3,684
Subtotal operating expenses
13,608
7,526
12,012
6,747
Impairment of investments in subsidiaries and other participations
4
543
3,715
500
3,343
Depreciation, amortization and impairment of property, equipment, software and intangible
assets
1,028
765
907
687
Changes in provisions for litigation, regulatory and similar matters, and other provisions
8
1,078
33
942
29
Total operating expenses
16,258
12,040
14,361
10,805
Operating profit
2,028
1,792
1,946
1,617
Extraordinary income
9
4,211
34
3,693
32
Extraordinary expenses
9
600
2
505
2
Tax expense / (benefit)
10
501
310
451
283
Net profit / (loss)
5,138
1,515
4,684
1,364
UBS AG standalone financial statements (audited)
Balance sheet
USD m
CHF m
Note
31.12.24
31.12.23
31.12.24
31.12.23
Assets
Cash and balances at central banks
13
69,614
49,449
63,217
41,620
Due from banks
13, 24
96,243
56,082
87,399
47,204
Receivables from securities financing transactions
11, 13, 24
117,338
69,381
106,555
58,398
Due from customers
12, 13, 24
148,955
107,463
135,266
90,451
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity
1
12, 13, 24
43,652
29,380
39,640
24,729
Mortgage loans
12, 13
8,438
5,116
7,662
4,306
Trading portfolio assets
14
148,686
124,682
135,022
104,943
Derivative financial instruments
15
21,941
10,056
19,925
8,464
Financial investments
16
39,850
40,874
36,188
34,403
Accrued income and prepaid expenses
13
4,194
3,000
3,808
2,525
Investments in subsidiaries and other participations
4
73,103
48,090
66,385
40,477
Property, equipment and software
5,364
5,049
4,871
4,250
Other assets
12, 13, 17
13,918
9,905
12,638
8,336
Total assets
791,297
558,527
718,576
470,106
of which: subordinated assets
34,918
20,183
31,709
16,988
of which: subject to mandatory conversion and / or debt waiver
33,344
19,250
30,279
16,202
Liabilities
Due to banks
24
87,538
62,428
79,493
52,545
Payables from securities financing transactions
11,24
42,638
23,774
38,720
20,011
Due to customers
24
227,493
147,388
206,587
124,055
Funding received from UBS Group AG measured at amortized cost
21, 24
113,898
70,620
103,431
59,440
Trading portfolio liabilities
14
29,316
27,280
26,622
22,961
Derivative financial instruments
15
14,005
16,921
12,718
14,242
Financial liabilities designated at fair value
14, 20
102,901
80,859
93,444
68,058
of which: funding received from UBS Group AG
20, 21, 24
4,998
2,711
4,539
2,282
Bonds issued
21
72,673
67,144
65,994
56,514
Accrued expenses and deferred income
8,230
5,474
7,474
4,608
Other liabilities
17
5,196
1,755
4,718
1,475
Provisions
13
3,101
2,008
2,816
1,690
Total liabilities
706,989
505,650
642,016
425,600
Equity
Share capital
22
386
386
380
380
Statutory capital reserve
65,627
36,334
60,185
35,655
of which: capital contribution reserve
77,661
22,190
70,626
23,936
(12,034)
14,144
(10,441)
11,719
Voluntary earnings reserve
13,157
14,642
11,311
7,107
Net profit / (loss) for the period
5,138
1,515
4,684
1,364
Total equity
84,308
52,877
76,560
44,506
Total liabilities and equity
791,297
558,527
718,576
470,106
of which: subordinated liabilities
121,588
77,573
110,414
65,293
of which: subject to mandatory conversion and / or debt waiver
120,865
77,012
109,757
64,820
1 Represents the Swiss GAAP carrying amount of instruments qualifying as total loss-absorbing capital at the level of the respective subsidiaries. 2 The amount of the capital contribution reserve represents Credit
Suisse AG’s capital contribution reserve and nominal share capital as of 31 December 2023 transferred upon the merger of UBS AG and Credit Suisse AG, in addition to the existing capital contribution reserve of
USD 22.2bn of UBS AG. Refer to Note 2c for more information. The amount of the capital contribution reserve is subject to formal review and confirmation by the Swiss Federal Tax Administration.
UBS AG standalone financial statements (audited)
Balance sheet (continued)
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Off-balance sheet items
Contingent liabilities, gross
34,989
31,360
31,773
26,395
Sub-participations
(1,141)
(990)
(1,036)
(834)
Contingent liabilities, net
33,848
30,369
30,737
25,562
of which: guarantees to third parties related to subsidiaries
8,389
6,362
7,618
5,355
Irrevocable loan commitments, gross
44,469
19,900
40,382
16,749
Sub-participations
(26)
(8)
(24)
(7)
Irrevocable loan commitments, net
44,443
19,892
40,359
16,743
Forward starting transactions
1
101,465
102,122
92,140
85,955
of which: forward starting reverse repurchase agreements
64,036
63,527
58,151
53,470
of which: repurchase agreements
37,428
38,595
33,989
32,485
Liabilities for calls on shares and other equity instruments
5
5
4
4
1 Cash to be paid in the future by either UBS AG or the counterparty.
Off-balance sheet items
Contingent liabilities include indemnities and guarantees issued by UBS AG for the benefit of subsidiaries and creditors
of subsidiaries.
Where the indemnity amount issued by UBS AG is not specifically defined, the indemnity relates to the solvency or
minimum capitalization of a subsidiary, and therefore no amount is included in the table above.
Joint and several liability – value-added tax
UBS AG is jointly and severally liable for the combined value-added tax (
VAT
) liability of UBS entities that belong to the
VAT group of UBS in Switzerland. This contingent liability is not included in the table above.
Guarantees – UBS Europe SE
Following the combined UK business transfer and cross-border merger of UBS Limited into UBS Europe SE in March 2019,
UBS AG issued a guarantee for the benefit of counterparties of UBS Europe SE’s investment banking business, covering
transactions subject to master netting agreements.
A similar guarantee that UBS AG issued in 2003 for the benefit of each counterparty of UBS Limited also continues to be
effective. This guarantee covers transactions in accordance with and contemplated under any agreement entered into by
UBS Limited prior to the merger into UBS Europe SE, to the extent that such an agreement has not been amended by
UBS Europe SE thereafter.
Under both guarantees, UBS AG promises to pay to the beneficiary counterparties any unpaid liabilities covered under
the terms of the guarantees on demand. These guarantees are included as contingent liabilities in the off-balance sheet
items table above.
Indemnities – UBS Europe SE
In connection with the establishing of UBS Europe SE in 2016, UBS AG entered into agreement s with UBS Europe SE
under which UBS AG would provide UBS Europe SE with limited indemnification of payment obligations that may arise
from certain litigation, regulatory and similar matters.
As of 31 December 2024, the amount of such potential payment obligations could not be reliably estimated and the
likelihood of an outflow is not considered to be probable or the probability of an outflow was assessed to be remote;
therefore, the table above does not include any amount related to this limited indemnification.
In addition, in accordance with the bylaws of the Deposit Protection Fund of the Association of German Banks, UBS AG
issued an indemnity in favor of this fund on behalf of UBS Europe SE. The probability of an outflow was assessed to be
remote, and as a result, the table above does not include any exposure arising under this indemnity.
UBS AG standalone financial statements (audited)
Statement of changes in equity
USD m
Share capital
Statutory
capital
reserve
of which:
capital
contribution
reserve
of which:
other
statutory
capital
reserve
Voluntary
earnings
reserve and
profit / (loss)
carried
forward
Net profit /
(loss)
for the period
Total equity
Balance as of 1 January 2024
386
36,334
22,190
14,144
14,642
1,515
52,877
Equity recognized upon the merger of UBS AG and Credit Suisse AG
1
29,293
55,471
(26,178)
2
29,293
Net profit / (loss) appropriation
1,515
(1,515)
0
Dividend distribution
(3,000)
(3,000)
Net profit / (loss) for the period
5,138
5,138
Balance as of 31 December 2024
386
65,627
77,661
(12,034)
13,157
5,138
84,308
1 Refer to Note 2c for more information. 2 Includes a foreign currency translation effect of USD 2,049m recorded as a reduction of Other statutory capital reserves within Statutory capital reserves.
CHF m
Share capital
Statutory
capital
reserve
of which:
capital
contribution
reserve
of which:
other
statutory
capital
reserve
Voluntary
earnings
reserve and
profit / (loss)
carried
forward
Net profit /
(loss)
for the period
Total equity
Balance as of 1 January 2024
380
35,655
23,936
11,719
7,107
1,364
44,506
Equity recognized upon the merger of UBS AG and Credit Suisse AG
1
24,531
46,690
(22,159)
2
24,531
Net profit / (loss) appropriation
1,364
(1,364)
0
Dividend distribution
(2,758)
(2,758)
Currency translation difference
5,598
5,598
Net profit / (loss) for the period
4,684
4,684
Balance as of 31 December 2024
380
60,185
70,626
(10,441)
11,311
4,684
76,560
1 Refer to Note 2c for more information. 2 Includes a foreign currency translation effect of CHF 1,851m recorded as a reduction of Other statutory capital reserves within Statutory capital reserves.
UBS AG standalone financial statements (audited)
Note 1 Name, legal form and registered office
UBS AG is incorporated and domiciled in Switzerland. Its registered offices are at Bahnhofstrasse 45, CH-8001 Zurich
and Aeschenvorstadt 1, CH-4051 Basel, Switzerland. UBS AG operates under Art. 620 et seq. of the Swiss Code of
Obligations and Swiss banking law as an
Aktiengesellschaft
, a corporation limited by shares.
UBS AG is a regulated bank in Switzerland and is 100% owned by UBS Group AG, the ultimate parent of the UBS Group.
UBS AG holds investments in and provides funding to subsidiaries, including the other banking subsidiaries of the UBS
Group. In addition, UBS AG operates globally, including business activities from all five UBS business divisions and Group
functions. In the ordinary course of business, the main contributors to the net profit / (loss) of UBS AG are Group Treasury,
Global Wealth Management, the Investment Bank and Group Services. The balance sheet is mainly composed of financial
assets and liabilities from the Investment Bank, Global Wealth Management and Group Treasury, as well as investments
in subsidiaries and other participations in Group Treasury and fixed assets of Group Services.
UBS AG employed 18,161 personnel on a full-time equivalent basis as of 31 December 2024, compared with 10,398
personnel as of 31 December 2023.
Note 2 Accounting policies
a) Significant accounting policies
UBS AG standalone financial statements are prepared in accordance with Swiss GAAP (the FINMA Accounting Ordinance,
FINMA Circular 2020/1 “Accounting – banks” and the Banking Ordinance) and represent “reliable assessment statutory
single-entity financial statements”. The accounting policies are principally the same as those outlined in Note 1 to the
consolidated financial statements of UBS AG included in the UBS AG Annual Report 2024. Major differences between
the Swiss GAAP requirements and IFRS Accounting Standards are described in Note 33 to the consolidated financial
statements of UBS AG. The significant accounting policies applied for the standalone financial statements of UBS AG are
discussed below.
›
Refer to the “Consolidated financial statements” section of the UBS AG Annual Report 2024, available under “Annual reporting”
at
ubs.com/investors
, for more information
Compensation policy
The compensation structure and processes of UBS AG conform to the compensation principles and framework of UBS
Group AG.
›
Refer to the UBS Group AG Compensation Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more
information
Deferred compensation
Expenses for deferred compensation awards granted by UBS Group AG to employees of UBS AG in the form of UBS
shares, notional investment funds and notional additional tier 1 (AT1) capital instruments are charged by UBS Group AG
to UBS AG.
›
Refer to “Note 27 Employee benefits: variable compensation” in the “Consolidated financial statements” section of the UBS AG
Annual Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more information
Foreign currency translation
Non-US dollar-denominated transactions are translated into US dollars at the spot exchange rate on the date of the
transaction. At the balance sheet date, all non-US dollar-denominated monetary assets and liabilities, as well as non-US
dollar-denominated equity instruments recorded in
Trading portfolio assets
Financial investments
, are translated into
US dollars using the closing exchange rate. Non-monetary items measured at historic cost are translated at the spot
exchange rate on the date of the transaction. Assets and liabilities of branches with functional currencies other than the
US dollar are translated into US dollars at the closing exchange rate. Income and expense items of such branches are
translated at weighted-average exchange rates for the period. All currency translation effects are recognized in the
income statement.
›
Refer to Note 2c for information about the retroactive translation of Credit Suisse AG’s financial information in 2024 following
the merger of UBS AG and Credit Suisse AG
The main currency translation rates used by UBS AG are provided in Note 32 to the UBS AG consolidated financial
statements in the UBS AG Annual Report 2024.
›
Refer to the “Consolidated financial statements” section of the UBS AG Annual Report 2024, available under “Annual reporting”
at
ubs.com/investors
, for more information
UBS AG standalone financial statements (audited)
Note 2 Accounting policies (continued)
Presentation currencies
The primary presentation currency of the financial statements of UBS AG is the US dollar. Amounts in Swiss francs are
additionally presented for each component of the financial statements. UBS AG applies the modified closing rate method
for converting the US dollar presentation currency amounts into Swiss francs: assets and liabilities are converted at the
closing rate, equity positions at historic rates and income and expense items at the weighted-average rate for the period.
The resulting currency translation effects are recognized separately in
Voluntary earnings reserve
.
On 31 May 2024, UBS AG completed the absorption merger of Credit Suisse AG and retroactively recognized Credit
Suisse AG’s balance sheet as of 1 January 2024, and its accounting records for the period from 1 January to 31 May
2024, expressed in Credit Suisse AG’s presentation currency, Swiss francs. Thereby, the merger balance sheet was
translated to UBS AG’s primary presentation currency, the US dollar, at the exchange rate of the opening balance sheet,
and the transactions recorded in profit and loss were translated at the monthly average exchange rate. The balance sheet
as of 31 May 2024 was translated at the 31 May 2024 closing rate. The resulting currency effects were recognized in
Statutory capital reserve
.
›
Refer to Note 2c for more information
Structured debt instruments
Structured debt instruments consist of debt instruments issued and transacted over the counter and include a host
contract and one or more embedded derivatives that do not relate to UBS AG’s own equity. By applying the fair value
option, the vast majority of structured debt instruments are measured at fair value as a whole and recognized in
liabilities designated at fair value.
criteria are cumulatively met:
–
the structured debt instrument is measured on a fair value basis and is subject to risk management that is equivalent
to risk management for trading activities;
–
the application of the fair value option eliminates or significantly reduces an accounting mismatch that would
otherwise arise; and
–
changes in fair value attributable to changes in unrealized own credit are not recognized.
Fair value changes related to
Financial liabilities designated at fair value,
recognized in
Net trading income.
Financial liabilities designated at fair value
Interest
expense.
Where the designation criteria for the fair value option are not met, the embedded derivatives are assessed for bifurcation
for measurement purposes. Bifurcated embedded derivatives are measured at fair value through profit or loss and
presented in the same balance sheet line as the host contract.
›
Refer to Note 20 for more information
Group-internal funding
UBS AG obtains funding from UBS Group AG in the form of loans that are subject to mandatory conversion and / or debt
waiver, as explained below, and generally either qualify as loss-absorbing tier 1 capital or as gone concern loss-absorbing
capacity, i.e. total funding eligible as total loss-absorbing capacity (TLAC), at the UBS AG consolidated and standalone
levels. A portion of Group-internal funding obtained is further on lent by UBS AG to certain subsidiaries in the form of
loans.
›
Refer to Note 21 for information about funding eligible as total loss-absorbing capacity at the UBS AG level
UBS AG’s obligations arising from Group-internal funding it has received are presented as
Funding received from UBS
Group AG measured at amortized cost
Funding received from UBS Group AG
within
Financial liabilities designated
at fair value.
Funding provided
to significant regulated subsidiaries eligible as total loss-absorbing capacity
allowance for expected credit losses.
Subordinated assets and liabilities
Subordinated assets
bankruptcy or composition concerning the debtor rank after the claims of all other creditors and may not be offset against
amounts payable to the debtor nor be secured by its assets.
Subordinated liabilities
obligations.
Subordinated assets and liabilities that contain a point-of-non-viability clause in accordance with Swiss capital
requirements pursuant to Art. 29 and 30 of the Capital Adequacy Ordinance are disclosed as being
Subject to mandatory
conversion and / or debt waiver
the event that the issuing bank reaches a point of non-viability.
UBS AG standalone financial statements (audited)
Note 2 Accounting policies (continued)
Investments in subsidiaries and other participations
Investments in subsidiaries and other participations
or for other strategic purposes. They include all subsidiaries directly held by UBS AG through which UBS AG conducts its
business on a global basis. The investments are measured individually and carried at cost less impairment. The carrying
amount is tested for impairment when indicators of a potential decrease in value exist, which include significant operating
losses incurred or a severe depreciation of the currency in which the investment is denominated. If an investment in a
subsidiary is impaired, its value is generally written down to the net asset value or a value above the net asset value if, in
the opinion of management, forecasts of future profitability provide sufficient evidence that a carrying amount above net
assets is supported. Subsequent recoveries in value are recognized up to the original cost value based on either an
increased net asset value or a value above the net asset value if aforementioned conditions are met. Management may
exercise its discretion as to what extent, and in which period, a recovery in value is recognized. Impairments of investments
are presented
as Impairment of investments in subsidiaries and other participations
and
reversals of impairments
are
presented as
Extraordinary income
a subsidiary during the same annual period are determined on a net basis.
›
Refer to Note 4 for more information
Hedge accounting for Investments in subsidiaries and other participations
UBS AG applies hedge accounting for certain investments in subsidiaries and other participations denominated in
currencies other than the US dollar, which are designated as hedged items. For this purpose, foreign exchange (FX)
derivatives, mainly FX forwards and FX swaps, are used and designated as hedging instruments.
The hedged risk is determined as the change in the carrying amount of the hedged item arising solely from changes in
spot FX rates. Consequently, UBS AG only designates the spot element of the FX derivatives as hedging instruments.
Changes in the fair value of the hedging instruments attributable to changes in forward points are not part of a hedge
accounting designation. These amounts, therefore, do not form part of the effectiveness assessment and are recognized
in
Net trading income
.
The effective portion of gains and losses of these FX derivatives is deferred on the balance sheet as
Other assets
Other
liabilities
FX rates. Otherwise, the effective portion of gains and losses of these FX derivatives is matched with the corresponding
valuation adjustments of the hedged item recorded in the income statement and recorded either as a reduction of
Impairment of investments in subsidiaries and other participations
Extraordinary income.
Revenue and expense transfers with other Group entities
UBS AG pays to and receives amounts from other Group entities in connection with revenue-sharing arrangements.
Revenues transferred to and received from Group entities are settled in cash as entity revenue transfers paid or received.
When the nature of the underlying transaction between UBS AG and the Group entity contains a single, clearly
identifiable service component, related income and expenses are presented in the respective income statement line item,
e.g.
Fee and commission income from securities and investment business and other fee and commission income
,
Fee and
commission expense
Net trading income
. To the extent the nature of the underlying transaction contains various
service components and is not clearly attributable to a particular income statement line item, related income and expenses
are presented in
Sundry ordinary income
and
Sundry ordinary expenses
.
UBS AG receives services from UBS Business Solutions AG, mainly relating to the Group Operations and Technology Office,
as well as certain other services from other Group entities.
UBS AG provides services to Group entities, mainly relating to real estate and selected other Group Services functions.
Services received from and provided to Group entities are settled in cash as entity cost transfers paid or received. Entity
cost transfers paid are presented within
General and administrative expenses
presented within
Sundry ordinary income
or
Income from real estate holdings
.
›
Refer to Notes 5 and 7 for more information
UBS AG standalone financial statements (audited)
Note 2 Accounting policies (continued)
Post-employment benefit plans
Swiss GAAP permit the use of IFRS Accounting Standards or Swiss accounting standards for post-employment benefit
plans, with the election made on a plan-by-plan basis.
UBS AG has elected to apply Swiss accounting standards for the Swiss pension plans in its standalone financial statements.
The requirements of the Swiss accounting standards are better aligned with the specific nature of Swiss pension plans,
which are hybrid in that they combine elements of defined contribution and defined benefit plans but are treated as
defined benefit plans under IFRS Accounting Standards. Swiss accounting standards require that the employer
contributions to the pension fund are recognized as
Personnel expenses
contributions to the Swiss pension fund are determined as a percentage of contributory compensation. Furthermore,
Swiss accounting standards require an assessment as to whether, based on the financial statements of the pension funds
prepared in accordance with Swiss accounting standards (Swiss GAAP FER 26), an economic benefit to, or obligation of,
UBS AG arises from the pension funds that is recognized in the balance sheet when conditions are met. Conditions for
recording a pension asset or liability would be met if, for example, an employer contribution reserve is available or UBS AG
is required to contribute to the reduction of a pension deficit (on the pension plan’s Swiss GAAP FER 26 basis).
Key differences between Swiss accounting standards and IFRS Accounting Standards include the treatment of dynamic
elements, such as future salary increases and future interest credits on retirement savings, which are not considered under
the static method used in accordance with Swiss accounting standards. Also, the discount rate used to determine the
defined benefit obligation in accordance with IFRS Accounting Standards is based on the yield of high-quality corporate
bonds of the market in the respective pension plan country. The discount rate used in accordance with Swiss accounting
standards, i.e. the technical interest rate, is determined by the Pension Foundation Boards.
›
Refer to Note 23 for more information
UBS AG has elected to apply IFRS Accounting Standards (IAS 19) for its non-Swiss defined benefit plans. However,
remeasurements of the defined benefit obligation and the plan assets are recognized in the income statement rather
than directly in equity.
›
Refer to the “Consolidated financial statements” section of the UBS AG Annual Report 2024, available under “Annual reporting”
at
ubs.com/investors
, for more information
Deferred taxes
Deferred tax assets are not recognized in UBS AG’s standalone financial statements. However, deferred tax liabilities may
be recognized for taxable temporary differences. Changes in the deferred tax liability balance are recognized in the
income statement.
Allowances and provisions for expected credit losses
UBS AG is required to apply expected credit loss (ECL) approaches for credit-impaired and non-credit-impaired financial
instruments in its standalone financial statements.
For the substantial majority of non-credit-impaired exposures within the scope of the Swiss GAAP ECL requirements,
UBS AG has chosen to apply the IFRS Accounting Standards ECL approach, which is also applied in its consolidated
financial statements. These exposures include all financial assets that are measured at amortized cost under both
frameworks, Swiss GAAP and IFRS Accounting Standards, fee and lease receivables, claims arising from Group-internal
funding presented as
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing capacity
,
guarantees, irrevocable loan commitments, revolving revocable credit lines, and forward starting reverse repurchase and
securities borrowing agreements. Further information about the ECL approach under IFRS Accounting Standards is
provided in Note 1 to the consolidated financial statements of UBS AG.
›
Refer to the “Consolidated financial statements” section of the UBS AG Annual Report 2024, available under “Annual reporting”
at
ubs.com/investors
, for more information
For the small residual population of exposures within the scope of the Swiss GAAP ECL requirements, which are not
subject to ECL under IFRS Accounting Standards due to classification differences, alternative approaches are applied.
–
For exposures for which Pillar 1 internal ratings-based models are applied for measurement of credit risk risk-weighted
assets (RWA), ECL for such exposures is calculated as the regulatory expected loss (EL), with an add-on to scale up to
the residual maturity of exposures maturing beyond the next 12 months. This approach is mainly applied for brokerage
receivables presented within
Due from customers,
which
generally mature within 12 months. For detailed information
about regulatory EL, refer to the “Risk management and control” section of the UBS AG Annual Report 2024.
–
For exposures for which the standardized approach is applied for the measurement of credit risk RWA, ECL is
determined using a portfolio approach that derives a conservative probability of default (PD) and a conservative loss
given default (LGD) for the entire portfolio. This approach is mainly applied for a small number of loans to large
corporate clients presented within
Due from customers.
UBS AG standalone financial statements (audited)
Note 2 Accounting policies (continued)
UBS applies a single definition of default for credit risk management purposes, regulatory reporting and ECL, with a
counterparty classified as defaulted based on quantitative and qualitative criteria.
›
Refer to the “Risk management and control” section of the UBS AG Annual Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more information
An allowance for credit losses is reported as a decrease in the carrying amount of a financial asset. For an off-balance
sheet item, such as a commitment, a provision for credit losses is reported in
Provisions
. Changes to allowances and
provisions for credit losses are recognized in
Credit loss (expense) / release
.
›
Refer to Note 13 for more information
Dispensations in the standalone financial statements
As UBS AG prepares consolidated financial statements in accordance with IFRS Accounting Standards, UBS AG is exempt
from various disclosures in the standalone financial statements. The dispensations include the management report, the
statement of cash flows and various note disclosures, as well as the publication of full interim financial statements.
b) Changes in accounting policies
In 2024, the following accounting policies were adopted in context of the absorption merger of Credit Suisse AG.
In an absorption merger executed retroactively for accounting purposes in accordance with Swiss law, currency effects
arising upon the initial recognition of the merger balance sheet and the activity of the absorbed entity until the legal
effective date of the merger are recorded directly in the
Statutory capital reserve
in equity to the extent such effects relate
to the translation of financial information presented by the absorbed entity in a currency other than UBS AG’s
presentation currency, the US dollar.
The income statement effect resulting from the initial application of UBS AG’s accounting policies and practices to the
merger balance sheet is recognized as a merger adjustment in
Extraordinary expenses
.
›
Refer to Note 9 for more information
c) Change in organization
In 2024, UBS continued the integration of Credit Suisse, with a focus on client account migrations, infrastructure
decommissioning and legal entity integration.
›
Refer to the “Our business model and environment” section of the UBS AG Annual Report 2024, available under “Annual
reporting” at
ubs.com/investors
, for more information
Merger of UBS AG and Credit Suisse AG
In December 2023, the Board of Directors of UBS Group AG approved the merger of UBS AG and Credit Suisse AG, and
both entities entered into a definitive merger agreement, as amended on 30 April 2024. On 31 May 2024, UBS AG
formally completed the merger by absorption of Credit Suisse AG. In the standalone financial statements of UBS AG, the
acquisition has been accounted for retroactively as of 1 January 2024, applying the previous book values of Credit Suisse
AG. The merger balance sheet with assets of USD 306,447m (CHF 257,935m) and liabilities of USD 275,105m
(CHF 231,554m) was recognized, together with a corresponding increase of
Statutory capital reserves
USD 31,343m (CHF 26,381m), of which USD 55,471m (CHF 46,690m) was attributed to
Capital contribution reserve
negative USD 24,129m (negative CHF 20,309m) to
Other statutory capital reserve.
UBS AG’s accounting policies and methodologies were applied retroactively from 1 January 2024. This resulted in an
adjustment, which was recorded in
Extraordinary expenses
›
Refer to Note 9 for more information
Furthermore, the retroactive translation of Credit Suisse AG’s financial information, previously expressed in Swiss francs,
(i.e. the merger balance sheet, the accounting policy application and the activity from 1 January 2024 to 31 May 2024)
to UBS AG’s presentation currency, the US dollar, resulted in a foreign currency translation effect of USD 2,049m
(CHF 1,851m), which was recorded as a reduction of
Other statutory capital reserves
Statutory capital reserves
.
Profit and loss information for 2024 includes the full-year profit and loss of the merged Credit Suisse AG. Comparative
full-year profit and loss information for 2023 and the balance sheet as of 31 December 2023 include pre-merger UBS AG
standalone data only.
Other integration activities
In June 2024, following the merger with Credit Suisse AG, UBS AG contributed its subsidiary Credit Suisse Holdings
(USA), Inc. to the entity holding its Americas business, UBS Americas Holding LLC.
In July 2024, UBS Switzerland AG completed its merger by absorption of Credit Suisse (Schweiz) AG.
›
Refer to Note 4 for more information
UBS AG standalone financial statements (audited)
Note 2 Accounting policies (continued)
d) Events after the reporting period
There were no significant events after the reporting period.
e) Risk management
UBS AG is fully integrated into the Group-wide risk management process described in the audited part of the “Risk
management and control” section of the UBS AG Annual Report 2024.
Further information about the use of derivative instruments and hedge accounting is provided on the following pages
and in Notes 1, 11 and 25 to the consolidated financial statements of UBS AG.
›
Refer to the “Consolidated financial statements” section of the UBS AG Annual Report 2024, available under “Annual reporting”
at
ubs.com/investors
, for more information
Note 3a Net trading income by business
USD m
CHF m
For the year ended
For the year ended
31.12.24
31.12.23
31.12.24
31.12.23
Investment Bank
1
7,450
6,575
6,586
5,922
Other business divisions and Group Items
2,001
678
1,748
605
Total net trading income
9,451
7,253
8,334
6,527
1 Almost entirely Global Markets.
Note 3b Net trading income by underlying risk category
USD m
CHF m
For the year ended
For the year ended
31.12.24
31.12.23
31.12.24
31.12.23
Equity instruments (including funds)
6,198
5,479
5,485
4,930
Foreign exchange instruments
1,588
1,128
1,397
1,017
Interest rate and credit instruments (including funds)
1,780
524
1,551
471
Other
(114)
122
(99)
110
Total net trading income
9,451
7,253
8,334
6,527
of which: net gains / (losses) from financial liabilities designated at fair value
1
(981)
(1,839)
(829)
(1,471)
1 Excludes fair value changes of hedges related to financial liabilities designated at fair value and foreign currency effects arising from translating foreign currency transactions into the respective functional currency,
both of which are reported within Net trading income.
UBS AG standalone financial statements (audited)
Note 4 Investments in subsidiaries and other participations
The table below provides the carrying amount, the equity interest and the registered office information regarding the
investments in subsidiaries and other participations.
Registered office
Equity interest
accumulated in %
Carrying amount in USD m
Carrying amount in CHF m
31.12.24
31.12.23
31.12.24
31.12.23
UBS Americas Holding LLC
Wilmington, Delaware, USA
31,834
31,484
28,908
26,500
UBS Switzerland AG
Zurich, Switzerland
20,996
7,985
19,066
6,721
Credit Suisse International
London, United Kingdom
98
5,040
4,577
UBS Europe SE
Frankfurt, Germany
4,175
3,914
3,791
3,294
UBS Asset Management AG
Zurich, Switzerland
2,260
1,732
2,053
1,457
Other
8,799
2,976
7,990
2,505
Total investments in subsidiaries and other participations
73,103
48,090
66,385
40,477
Reorganizations
As of 1 January 2024, the merger of UBS AG and Credit Suisse AG resulted in an increase in the carrying amount of
Investments in subsidiaries and other participations
(USA) Inc. (USD 6.4bn (CHF 5.4bn)), Credit Suisse (Schweiz) AG (USD 13.6bn (CHF 11.5bn)) and Credit Suisse International
(USD 8.2bn (CHF 6.9bn)).
In June 2024, as part of the transition to a single US intermediate holding company, UBS AG contributed its investment
in Credit Suisse Holdings (USA) Inc. to UBS Americas Holding LLC, increasing the carrying amount of UBS Americas
Holding LLC by USD 6.3bn (CHF 5.7bn).
As of 1 July 2024, the merger of UBS Switzerland AG and Credit Suisse (Schweiz) AG was completed, increasing the
carrying amount of UBS Switzerland AG by USD 13.0bn (CHF 11.7bn).
Impairments and reversal of impairments
In 2024, UBS AG recognized
Impairments of investments in subsidiaries and other participations
(CHF 500m). In 2023, UBS AG recognized Impairments of investments in subsidiaries and other participations of
USD 3,715m (CHF 3,343m), mainly due to an impairment related to UBS Americas Holding LLC as the recoverable
amount of this participation declined, mostly due to lower forecasted profits and dividend payouts.
In 2024, UBS AG recognized
Reversal of impairments of investments in subsidiaries and other participations
USD 3,996m (CHF 3,497m), mainly due to a reversal of an impairment related to Credit Suisse International as the
recoverable amount of this participation increased, mainly due to progressed integration including improved actual
financials and forecasted financial performance.
Dividends and capital repayments
Dividend income from investments in subsidiaries and other participations
USD 5,430m (CHF 4,862m) in 2023 was mainly attributable to UBS Switzerland AG, UBS Americas Holding LLC, UBS
Asset Management AG and UBS Europe SE. In addition, in 2024 Credit Suisse Securities (Europe) Limited contributed a
substantial dividend.
In December 2024, UBS Americas Holding LLC repaid capital of USD 6.0bn (CHF 5.4bn) and Credit Suisse International
repaid capital of USD 7.0bn (CHF 6.3bn) to UBS AG.
Note 5 Sundry ordinary income and expenses
USD m
CHF m
For the year ended
For the year ended
31.12.24
31.12.23
31.12.24
31.12.23
Income from services provided to UBS Group AG or its subsidiaries
1
2,779
1,511
2,436
1,354
Net unrealized gains on financial investments
2
0
70
0
59
Other
36
14
34
14
Total sundry ordinary income
2,814
1,596
2,470
1,426
Expenses from revenue transfers to UBS Group AG or its subsidiaries
(641)
(394)
(566)
(355)
Net unrealized losses on financial investments
2
(116)
0
(98)
0
Other
(42)
(13)
(36)
(11)
Total sundry ordinary expenses
(800)
(407)
(700)
(366)
1 Services provided by UBS AG primarily related to Group Items. 2 Refer to Note 16a for more information.
UBS AG standalone financial statements (audited)
Note 6 Personnel expenses
USD m
CHF m
For the year ended
For the year ended
31.12.24
31.12.23
31.12.24
31.12.23
Salaries
2,929
1,710
2,588
1,536
Variable compensation – performance awards
1,450
1,115
1,280
1,003
Variable compensation – other
308
83
274
74
Contractors
55
27
49
25
Social security
340
242
300
217
Post-employment benefit plans
277
124
243
115
of which: value adjustments for economic benefits or obligations from non-Swiss pension funds
9
31
6
31
Other personnel expenses
152
106
134
95
Total personnel expenses
5,511
3,408
4,868
3,063
1 Reflects the remeasurement of the defined benefit obligation and return on plan assets excluding amounts included in interest income for the non-Swiss defined benefit plans, for which IAS 19 is applied.
Note 7 General and administrative expenses
USD m
CHF m
For the year ended
For the year ended
31.12.24
31.12.23
31.12.24
31.12.23
Real estate
630
451
556
404
Outsourcing costs
275
75
243
67
Technology costs
242
98
214
88
Market data services
229
129
202
115
Travel and entertainment
101
65
89
58
Marketing and communication
88
35
78
31
Fees to audit firms
48
12
42
11
of which: financial and regulatory audits
43
9
38
8
of which: audit-related services
4
2
3
2
of which: tax and other services
2
0
1
0
Other professional fees
487
173
431
153
Other
5,997
3,081
5,288
2,757
of which: shared services costs charged by UBS Group AG or its subsidiaries
5,572
2,806
4,911
2,514
Total general and administrative expenses
8,097
4,118
7,144
3,684
UBS AG standalone financial statements (audited)
Note 8 Changes in provisions for litigation, regulatory and similar matters, and other provisions
2024 included litigation expenses of USD 1,005m (CHF 905m), largely in the Non-core and Legacy business division.
›
Refer to “Note 18 Provisions and contingent liabilities” in the “Consolidated financial statements” section of the UBS AG Annual
Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more information
Note 9 Extraordinary income and expenses
USD m
CHF m
For the year ended
For the year ended
31.12.24
31.12.23
31.12.24
31.12.23
Reversal of impairments of and provisions for subsidiaries and other participations
1
3,996
9
3,497
10
Gains from disposals of subsidiaries and other participations
198
9
181
8
Net gains from disposals of properties
16
10
14
9
Other extraordinary income
1
5
1
5
Total extraordinary income
4,211
34
3,693
32
Accounting policy and methodology alignment effect upon merger of UBS AG and Credit Suisse AG
2
598
0
504
0
Other extraordinary expense
3
2
1
2
Total extraordinary expenses
600
2
505
2
1 Refer to Note 4 for more information. 2 Refer to Note 2c for more information.
Gains from disposals of subsidiaries and other participations
sale of Credit Suisse Services India Ltd, a former subsidiary of Credit Suisse AG, to UBS Business Solutions AG.
Accounting policy and methodology alignment effect upon merger of UBS AG and Credit Suisse AG
As a result of the merger of UBS AG and Credit Suisse AG, UBS AG’s accounting policies and methodologies were applied
to the merger balance sheet of Credit Suisse AG as of 1 January 2024.
This resulted in a merger adjustment of USD 598m (CHF 504m), which was recorded in
Extraordinary expenses
. The
adjustment included the alignment of methodologies related to credit allowances and provisions (USD –559m
(CHF –
471m)), which Credit Suisse AG generally accounted for by reference to US GAAP compared with UBS AG’s general
application of IFRS Accounting Standards, own credit adjustment curves (USD –537m (CHF –452m)), and smaller
adjustments related to the classification of certain debt instruments at fair value compared to a legacy Credit Suisse AG
amortized cost treatment, and full expense recognition of certain loan origination costs and fees at inception, which were
previously deferred and recognized over time by Credit Suisse AG. These effects were partly reduced by the effects of
electing the fair value option for certain structured TLAC instruments under UBS AG’s accounting policies (USD 513m
(CHF 432m)), and smaller adjustments related to the measurement of real estate and the recognition of net defined
benefit assets.
UBS AG standalone financial statements (audited)
Note 10 Taxes
USD m
CHF m
For the year ended
For the year ended
31.12.24
31.12.23
31.12.24
31.12.23
Income tax expense / (benefit)
461
279
416
255
of which: current
492
277
443
254
of which: deferred
(31)
2
(28)
2
Capital tax
40
31
35
28
Total tax expense / (benefit)
501
310
451
283
An income tax expense of USD 461m (CHF 416m) was recognized for UBS AG in 2024, compared with USD 279m
(CHF 255m) for 2023. The income tax expense for 2024 was reduced by a benefit of USD 36m (CHF 32m) in respect of
the utilization of tax losses carried forward, primarily in Jersey and Singapore.
The income tax expense for 2023 was reduced by a benefit of USD 15m (CHF 13m) in respect of the utilization of tax
losses carried forward, primarily in Jersey.
The income tax expenses for 2024 and 2023 related to UBS AG’s taxable profits that are not offset by tax losses carried
forward.
For 2024, the average tax rate, defined as income tax expense divided by the sum of operating profit and extraordinary
income minus extraordinary expenses and capital tax, was 8.2% (2023: 15.5%). This reflected the aforementioned
benefit in respect of the utilization of tax losses carried forward and also that no tax expense was recognized in respect
of dividends that UBS AG received from its subsidiaries.
Note 11 Securities financing transactions
USD bn
CHF bn
31.12.24
31.12.23
31.12.24
31.12.23
On-balance sheet
Receivables from securities financing transactions, gross
200.9
157.0
182.4
132.1
Netting of securities financing transactions
(83.5)
(87.6)
(75.8)
(73.7)
Receivables from securities financing transactions, net
117.3
69.4
106.6
58.4
Payables from securities financing transactions, gross
126.2
111.4
114.6
93.7
Netting of securities financing transactions
(83.5)
(87.6)
(75.8)
(73.7)
Payables from securities financing transactions, net
42.6
23.8
38.7
20.0
Assets pledged as collateral in connection with securities financing transactions
74.8
75.7
67.9
63.7
of which: trading portfolio assets
61.8
68.2
56.1
57.4
of which: assets that may be sold or repledged by counterparties
44.5
49.9
40.4
42.0
of which: financial investments
13.0
7.5
11.8
6.3
of which: assets that may be sold or repledged by counterparties
12.8
7.4
11.7
6.2
Off-balance sheet
Fair value of assets received as collateral in connection with securities financing transactions
425.2
372.6
386.1
313.6
of which: repledged
266.1
246.5
241.6
207.5
of which: sold in connection with short sale transactions
29.3
27.3
26.6
23.0
UBS AG standalone financial statements (audited)
Note 12a Collateral for loans and off-balance sheet transactions
31.12.24
31.12.23
Secured
Unsecured
Total
Secured
Unsecured
Total
Secured by collateral
Secured by
other credit
enhancements
2
Secured by collateral
Secured by
other credit
enhancements
2
USD m
Real estate
Other
collateral
1
Real estate
Other
collateral
1
On-balance sheet
Due from customers, gross
3
41
102,479
4,515
43,630
4
150,665
65,884
48
41,733
4
107,665
Mortgage loans, gross
8,446
8,446
5,116
5,116
of which: residential mortgages
5,242
5,242
2,854
2,854
of which: other mortgages
5
3,204
3,204
2,263
2,263
Funding provided to significant
regulated subsidiaries eligible as
total loss-absorbing capacity
43,675
43,675
29,403
29,403
Total on-balance sheet, gross
8,486
102,479
4,515
87,305
202,786
5,116
65,884
48
71,136
142,184
Allowances
(7)
(109)
(40)
(1,584)
(1,740)
0
(63)
0
(161)
(225)
Total on-balance sheet, net
8,479
102,370
4,475
85,721
201,045
5,116
65,821
48
70,974
141,959
Off-balance sheet
Contingent liabilities, gross
31
20,590
1,276
13,092
34,989
21,245
990
9,125
31,360
Irrevocable commitments, gross
737
23,883
2,728
17,120
44,469
550
9,365
154
9,831
19,900
Forward starting reverse repurchase
and securities borrowing
transactions
64,036
64,036
63,527
63,527
Liabilities for calls on shares and
other equities
5
5
5
5
Total off-balance sheet
768
108,510
4,004
30,217
143,499
550
94,136
1,144
18,961
114,791
1 Mainly includes cash and securities. 2 Includes guarantees. 3 Includes prime brokerage margin lending receivables and prime brokerage receivables relating to securities financing transactions. 4 Primarily
consists of amounts due from subsidiaries and other Group entities. 5 Consists of office and business premises, industrial premises and other mortgages.
31.12.24
31.12.23
Secured
Unsecured
Total
Secured
Unsecured
Total
Secured by collateral
Secured by
other credit
enhancements
2
Secured by collateral
Secured by
other credit
enhancements
2
CHF m
Real estate
Other
collateral
1
Real estate
Other
collateral
1
On-balance sheet
Due from customers, gross
3
37
93,061
4,100
39,620
4
136,818
55,454
40
35,126
4
90,621
Mortgage loans, gross
7,669
7,669
4,306
4,306
of which: residential mortgages
4,760
4,760
2,402
2,402
of which: other mortgages
5
2,908
2,908
1,904
1,904
Funding provided to significant
regulated subsidiaries eligible as
total loss-absorbing capacity
39,662
39,662
24,748
24,748
Total on-balance sheet, gross
7,706
93,061
4,100
79,281
184,148
4,306
55,454
40
59,874
119,675
Allowances
(6)
(99)
(37)
(1,438)
(1,580)
0
(56)
0
(133)
(189)
Total on-balance sheet, net
7,699
92,962
4,064
77,843
182,568
4,306
55,397
40
59,742
119,486
Off-balance sheet
Contingent liabilities, gross
28
18,698
1,159
11,888
31,773
17,881
833
7,680
26,395
Irrevocable commitments, gross
670
21,688
2,477
15,547
40,382
463
7,882
129
8,275
16,749
Forward starting reverse repurchase
and securities borrowing
transactions
58,151
58,151
53,470
0
53,470
Liabilities for calls on shares and
other equities
4
4
4
4
Total off-balance sheet
698
98,538
3,636
27,440
130,311
463
79,233
963
15,959
96,619
1 Mainly includes cash and securities. 2 Includes guarantees. 3 Includes prime brokerage margin lending receivables and prime brokerage receivables relating to securities financing transactions. 4 Primarily
consists of amounts due from subsidiaries and other Group entities. 5 Consists of office and business premises, industrial premises and other mortgages.
UBS AG standalone financial statements (audited)
Note 12b Credit-impaired financial instruments
31.12.24
31.12.23
USD m
Gross credit-
impaired financial
instruments
Allowances
and
provisions
Estimated
liquidation
proceeds of
collateral
Net credit-
impaired
financial
instruments
Gross credit-
impaired
financial
instruments
Allowances
and
provisions
Estimated
liquidation
proceeds of
collateral
Net credit-
impaired
financial
instruments
Amounts due from customers
3,329
1,496
894
939
384
114
270
0
Mortgage loans
206
4
201
0
113
0
113
0
Other assets
6
4
0
2
2
2
0
0
Guarantees and loan commitments
167
16
117
35
18
4
8
7
Total credit-impaired financial instruments
1
3,708
1,520
1,212
976
517
120
390
7
1 Credit-impaired financial instruments are financial assets and off-balance sheet positions subject to incurred credit losses, also referred to as stage 3 positions.
31.12.24
31.12.23
CHF m
Gross credit-
impaired financial
instruments
Allowances
and
provisions
Estimated
liquidation
proceeds of
collateral
Net credit-
impaired
financial
instruments
Gross credit-
impaired
financial
instruments
Allowances
and
provisions
Estimated
liquidation
proceeds of
collateral
Net credit-
impaired
financial
instruments
Amounts due from customers
3,023
1,358
812
853
323
96
227
0
Mortgage loans
187
4
183
0
95
0
95
0
Other assets
6
3
0
2
1
1
0
0
Guarantees and loan commitments
152
14
106
32
15
3
6
6
Total credit-impaired financial instruments
1
3,367
1,380
1,100
887
435
101
329
6
1 Credit-impaired financial instruments are financial assets and off-balance sheet positions subject to incurred credit losses, also referred to as stage 3 positions.
Note 13 Allowances and provisions
Allowances and provisions of USD 4,869m (CHF 4,422m) as of 31 December 2024 included allowances and provisions
for credit losses of USD 1,896m (CHF 1,722m). Allowances and provisions of USD 2,249m (CHF 1,893m) as of
31 December 2023 included allowances and provisions for credit losses of USD 294m (CHF 247m).
The 2024 increase in allowances and provisions for credit losses of USD 1,602m (CHF 1,475m) included USD 1,551m
(CHF 1,305m) from the merger with Credit Suisse AG as of 1 January 2024, net credit loss expenses of USD 206m
(CHF 179m) recognized in the income statement, primarily related to credit -impaired positions, as well as USD 155m
(CHF 9m) other allowances and provision movements without ECL profit or loss impact, mainly from the merger with
Credit Suisse AG, for write-offs and other movements that did not impact the income statement.
Allowances of USD 1,492m (CHF 1,256m) and provisions of USD 1,290m (CHF 1,086m) recognized upon the merger
with Credit Suisse AG, a total of USD 2,782m (CHF 2,342m), include a merger adjustment of USD 577m (CHF 486m)
recognized in the income statement and recorded in
Extraordinary expenses
. This adjustment largely relates to UBS
accounting policy adoption and methodology alignment on credit loss allowances and provisions for Credit Suisse AG’s
transactions, including those with direct and indirect subsidiaries of UBS AG. UBS AG’s Swiss GAAP policy for recognizing
credit loss allowances and provisions is to the largest extent possible aligned with IFRS, whereas Credit Suisse AG’s Swiss
GAAP policy was generally calibrated to US GAAP. Certain allowances and provisions recognized by Credit Suisse AG as
of 31 December 2023 related to Non-Core and Legacy positions were measured by UBS AG at fair value and not included
in UBS AG’s allowances and provisions at the merger date.
›
Refer Note 2 and Note 9 for more information
UBS AG standalone financial statements (audited)
Note 13a Allowances for credit losses
USD m
Balance
as of
31.12.23
Balance
recognized
upon the
merger with
Credit Suisse
AG
Increase
recognized
in the
income
statement
Release
recognized
in the
income
statement
Write-offs
Recoveries
and past
due interest
Reclassifications
/ other
Foreign
currency
translation
Balance
as of
31.12.24
Default risk relating to on-balance sheet exposures
233
1,492
227
(27)
(276)
8
96
10
1,762
of which: incurred credit losses
116
1,338
227
0
(276)
8
96
(6)
1,504
of which: expected credit losses
117
154
0
(27)
0
0
0
15
258
Other
7
0
0
0
0
0
0
(1)
6
Total allowances
241
1,492
227
(27)
(276)
8
96
8
1,768
CHF m
Balance
as of
31.12.23
Balance
recognized
upon the
merger with
Credit Suisse
AG
Increase
recognized
in the
income
statement
Release
recognized
in the
income
statement
Write-offs
Recoveries
and past
due interest
Reclassifications
/ other
Foreign
currency
translation
Balance
as of
31.12.24
Default risk relating to on-balance sheet exposures
197
1,256
197
(24)
(240)
7
83
124
1,600
of which: incurred credit losses
98
1,126
197
0
(240)
7
83
94
1,366
of which: expected credit losses
99
129
0
(24)
0
0
0
30
235
Other
6
0
0
0
0
0
0
(1)
6
Total allowances
203
1,256
197
(24)
(240)
7
83
123
1,606
Note 13b Provisions
USD m
Balance
as of
31.12.23
Balance
recognized
upon the
merger with
Credit Suisse
AG
Increase
recognized
in the
income
statement
Release
recognized
in the
income
statement
Provisions
used in
conformity
with
designated
purpose
Recoveries
Reclassifications
Foreign
currency
translation /
other
as of
31.12.24
Default risk related to off-balance sheet
items and credit lines
60
59
14
(8)
0
0
5
4
134
of which: incurred credit losses
4
0
0
(1)
0
0
5
9
16
of which: expected credit losses
57
59
14
(7)
0
0
0
(6)
118
Litigation, regulatory and similar matters
1,665
1,118
1,268
(51)
(1,481)
1
1
(120)
2,492
Restructuring
25
49
239
(45)
(167)
0
0
6
107
Real estate
2
113
25
56
(2)
(16)
0
0
15
191
Employee benefits
27
22
20
(18)
0
0
0
(3)
47
Deferred taxes
94
0
0
(20)
0
0
0
(13)
61
Other
25
17
56
(15)
(4)
0
0
(10)
70
Total provisions
2,008
1,290
1,653
(158)
(1,668)
1
96
(121)
3,101
1 Relates to the funding by UBS AG of the offer made in June 2024 by the Credit Suisse supply chain finance funds to redeem all of their outstanding units. Post the expiry of the offer, USD 92m was reclassified from
derivative liabilities back into provisions in relation to investors who did not accept the redemption offer. Refer to “Note 18 Provisions and contingent liabilities” in the “Consolidated financial statements” section of
the UBS AG Annual Report 2024, available under “Annual reporting” at ubs.com/investors, for more information. 2 Includes provisions for onerous contracts of USD 87m as of 31 December 2024 (31 December
2023: USD 47m) and reinstatement cost provisions for leasehold improvements of USD 103m as of 31 December 2024 (31 December 2023: USD 66m).
CHF m
Balance
as of
31.12.23
Balance
recognized
upon the
merger with
Credit Suisse
AG
Increase
recognized
in the
income
statement
Release
recognized
in the
income
statement
Provisions
used in
conformity
with
designated
purpose
Recoveries
Reclassifications
Foreign
currency
translation /
other
as of
31.12.24
Default risk related to off-balance sheet
items and credit lines
51
50
12
(7)
0
0
4
12
122
of which: incurred credit losses
3
0
0
(1)
0
0
4
9
15
of which: expected credit losses
48
50
12
(6)
0
0
0
3
107
Litigation, regulatory and similar matters
1,401
941
1,136
(44)
(1,330)
1
1
77
2,263
Restructuring
21
41
210
(39)
(147)
0
0
11
97
Real estate
2
95
21
50
(1)
(14)
0
0
22
173
Employee benefits
23
18
18
(16)
0
0
0
0
43
Deferred taxes
79
0
0
(17)
0
0
0
(7)
55
Other
21
15
51
(13)
(3)
0
0
(7)
63
Total provisions
1,690
1,086
1,476
(139)
(1,494)
1
85
108
2,816
1 Relates to the funding by UBS AG of the offer made in June 2024 by the Credit Suisse supply chain finance funds to redeem all of their outstanding units. Post the expiry of the offer, CHF 81m was reclassified from
derivative liabilities back into provisions in relation to investors who did not accept the redemption offer. Refer to “Note 18 Provisions and contingent liabilities” in the “Consolidated financial statements” section of
the UBS AG Annual Report 2024, available under “Annual reporting” at ubs.com/investors, for more information. 2 Includes provisions for onerous contracts of CHF 79m as of 31 December 2024 (31 December 2023:
CHF 39m) and reinstatement cost provisions for leasehold improvements of CHF 94m as of 31 December 2024 (31 December 2023: CHF 55m).
UBS AG standalone financial statements (audited)
Note 13c Development of allowances and provisions for credit losses
USD m
Total
Stage 1
Stage 2
Stage 3
Balance as of 31 December 2023
Balance recognized upon the merger with Credit Suisse AG as of 1.1.24
Net movement from new and derecognized transactions
1
of which: Large corporate clients
Remeasurements with stage transfers
2
of which: Large corporate clients
Remeasurements without stage transfers
3
of which: Large corporate clients
Model changes
4
Total ECL allowance movements with profit or loss impact
Movements without profit or loss impact (write-off, FX and other)
5
Balance as of 31 December 2024
1 Represents the increase and decrease in allowances and provisions resulting from financial instruments (including guarantees and facilities) that were newly originated, purchased or renewed and from the final
derecognition of loans or facilities on their maturity date or earlier. 2 Represents the remeasurement between 12-month and lifetime ECL due to stage transfers. 3 Represents the change in allowances and
provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposure profile, PD and LGD changes, and unwinding of the time value.
4 Represents the change in the allowances and provisions related to changes in models and methodologies. 5 Represents the decrease in allowances and provisions resulting from write-offs of the ECL allowance
against the gross carrying amount when all or part of a financial asset is deemed uncollectible or forgiven and movements in foreign exchange rates.
CHF m
Total
Stage 1
Stage 2
Stage 3
Balance as of 31 December 2023
Balance recognized upon the merger with Credit Suisse AG as of 1.1.24
Net movement from new and derecognized transactions
1
of which: Large corporate clients
Remeasurements with stage transfers
2
of which: Large corporate clients
Remeasurements without stage transfers
3
of which: Large corporate clients
Model changes
4
Total ECL allowance movements with profit or loss impact
Movements without profit or loss impact (write-off, FX and other)
5
Balance as of 31 December 2024
1 Represents the increase and decrease in allowances and provisions resulting from financial instruments (including guarantees and facilities) that were newly originated, purchased or renewed and from the final
derecognition of loans or facilities on their maturity date or earlier. 2 Represents the remeasurement between 12-month and lifetime ECL due to stage transfers. 3 Represents the change in allowances and
provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposure profile, PD and LGD changes, and unwinding of the time value.
4 Represents the change in the allowances and provisions related to changes in models and methodologies. 5 Represents the decrease in allowances and provisions resulting from write-offs of the ECL allowance
against the gross carrying amount when all or part of a financial asset is deemed uncollectible or forgiven and movements in foreign exchange rates.
UBS AG standalone financial statements (audited)
Note 13c Development of allowances and provisions for credit losses (continued)
USD m
Total
Stage 1
Stage 2
Stage 3
Balance as of 31 December 2022
Net movement from new and derecognized transactions
1
of which: Large corporate clients
Remeasurements with stage transfers
2
of which: Large corporate clients
Remeasurements without stage transfers
3
of which: Large corporate clients
Model changes
4
Total ECL allowance movements with profit or loss impact
Movements without profit or loss impact (write-off, FX and other)
5
Balance as of 31 December 2023
1 Represents the increase and decrease in allowances and provisions resulting from financial instruments (including guarantees and facilities) that were newly originated, purchased or renewed and from the final
derecognition of loans or facilities on their maturity date or earlier. 2 Represents the remeasurement between 12-month and lifetime ECL due to stage transfers. 3 Represents the change in allowances and
provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposure profile, PD and LGD changes, and unwinding of the time value.
4 Represents the change in the allowances and provisions related to changes in models and methodologies. 5 Represents the decrease in allowances and provisions resulting from write-offs of the ECL allowance
against the gross carrying amount when all or part of a financial asset is deemed uncollectible or forgiven and movements in foreign exchange rates.
CHF m
Total
Stage 1
Stage 2
Stage 3
Balance as of 31 December 2022
Net movement from new and derecognized transactions
1
of which: Large corporate clients
Remeasurements with stage transfers
2
of which: Large corporate clients
Remeasurements without stage transfers
3
of which: Large corporate clients
Model changes
4
Total ECL allowance movements with profit or loss impact
Movements without profit or loss impact (write-off, FX and other)
5
Balance as of 31 December 2023
1 Represents the increase and decrease in allowances and provisions resulting from financial instruments (including guarantees and facilities) that were newly originated, purchased or renewed and from the final
derecognition of loans or facilities on their maturity date or earlier. 2 Represents the remeasurement between 12-month and lifetime ECL due to stage transfers. 3 Represents the change in allowances and
provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposure profile, PD and LGD changes, and unwinding of the time value.
4 Represents the change in the allowances and provisions related to changes in models and methodologies. 5 Represents the decrease in allowances and provisions resulting from write-offs of the ECL allowance
against the gross carrying amount when all or part of a financial asset is deemed uncollectible or forgiven and movements in foreign exchange rates.
UBS AG standalone financial statements (audited)
Note 13d Balance sheet and off-balance sheet positions subject to ECL
The tables below provide information about ECL exposures, allowances and provisions for financial instruments and
certain non-financial instruments that are subject to ECL.
USD m
31.12.24
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
69,614
69,614
0
0
0
0
0
0
Due from banks
96,243
96,164
79
0
(14)
(14)
(1)
0
Receivables from securities financing transactions
117,338
117,338
0
0
(2)
(2)
0
0
Due from customers
148,955
143,834
3,288
1,833
(1,710)
(106)
(108)
(1,496)
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing
capacity
43,652
43,652
0
0
(23)
(23)
0
0
Mortgage loans
8,438
7,880
356
201
(7)
(2)
(1)
(4)
Accrued income and prepaid expenses
2
3,091
3,081
10
0
0
0
0
0
Other assets
3
2,172
2,170
0
2
(5)
(1)
0
(4)
Total on-balance sheet financial assets within the scope of ECL
489,504
483,734
3,733
2,037
(1,762)
(148)
(109)
(1,504)
Total exposure
ECL provisions
Off-balance sheet (within the scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Contingent liabilities, gross
34,989
34,799
147
43
(7)
(4)
0
(3)
Irrevocable commitments, gross
44,469
40,818
3,526
125
(128)
(74)
(40)
(14)
Forward starting transactions (securities financing transactions)
4
22,954
22,954
0
0
0
0
0
0
Credit lines
39,291
39,239
46
6
0
0
0
0
Irrevocable committed prolongation of existing loans
245
245
0
0
0
0
0
0
Total off-balance sheet financial instruments and credit lines within the scope of
ECL
141,947
138,055
3,718
173
(134)
(78)
(40)
(16)
Total allowances and provisions
(1,896)
(226)
(150)
(1,520)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL allowances. 2 Includes components of accrued interest assets within the scope of
ECL. 3 Includes components of other receivables due from UBS Group AG and subsidiaries in the UBS Group and other assets within the scope of ECL. Refer to Note 17a for more information. 4 Includes forward
starting reverse repurchase agreements within the scope of ECL.
CHF m
31.12.24
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
63,217
63,217
0
0
0
0
0
0
Due from banks
87,399
87,327
71
0
(13)
(12)
(1)
0
Receivables from securities financing transactions
106,555
106,555
0
0
(2)
(2)
0
0
Due from customers
135,266
130,616
2,985
1,664
(1,553)
(96)
(98)
(1,358)
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing
capacity
39,640
39,640
0
0
(21)
(21)
0
0
Mortgage loans
7,662
7,156
324
183
(6)
(2)
(1)
(4)
Accrued income and prepaid expenses
2
2,807
2,798
9
0
0
0
0
0
Other assets
3
1,972
1,970
0
2
(4)
(1)
0
(3)
Total on-balance sheet financial assets within the scope of ECL
444,518
439,279
3,390
1,849
(1,600)
(134)
(100)
(1,366)
Total exposure
ECL provisions
Off-balance sheet (within the scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Contingent liabilities, gross
31,773
31,601
134
39
(6)
(4)
0
(2)
Irrevocable commitments, gross
40,382
37,067
3,202
113
(116)
(67)
(37)
(12)
Forward starting transactions (securities financing transactions)
4
20,844
20,844
0
0
0
0
0
0
Credit lines
35,680
35,633
41
5
0
0
0
0
Irrevocable committed prolongation of existing loans
222
222
0
0
0
0
0
0
Total off-balance sheet financial instruments and credit lines within the scope of
ECL
128,901
125,367
3,377
157
(122)
(71)
(36)
(15)
Total allowances and provisions
(1,722)
(205)
(136)
(1,380)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL allowances. 2 Includes components of accrued interest assets within the scope of
ECL. 3 Includes components of other receivables due from UBS Group AG and subsidiaries in the UBS Group and other assets within the scope of ECL. Refer to Note 17a for more information. 4 Includes forward
starting reverse repurchase agreements within the scope of ECL.
UBS AG standalone financial statements (audited)
Note 13d Balance sheet and off-balance sheet positions subject to ECL (continued)
USD m
31.12.23
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
49,449
49,449
0
0
0
0
0
0
Due from banks
56,082
56,082
0
0
(5)
(5)
0
0
Receivables from securities financing transactions
69,381
69,381
0
0
(2)
(2)
0
0
Due from customers
107,463
105,919
1,275
270
(202)
(69)
(19)
(114)
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing
capacity
29,380
29,380
0
0
(22)
(22)
0
0
Mortgage loans
5,116
4,997
6
113
0
0
0
0
Accrued income and prepaid expenses
3,000
2,991
8
0
0
0
0
0
Other assets
2
918
918
0
0
(2)
0
0
(2)
Total on-balance sheet financial assets within the scope of ECL
320,789
319,117
1,289
383
(233)
(99)
(19)
(116)
Total exposure
ECL provisions
Off-balance sheet (within the scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Contingent liabilities, gross
31,360
31,226
129
4
(3)
(2)
(1)
(1)
Irrevocable commitments, gross
19,900
18,427
1,458
14
(56)
(33)
(21)
(2)
Forward starting transactions (securities financing transactions)
3
9,500
9,500
0
0
0
0
0
0
Credit lines
9,777
9,446
331
0
(1)
(1)
0
0
Irrevocable committed prolongation of existing loans
1,907
1,907
0
0
0
0
0
0
Total off-balance sheet financial instruments and credit lines within the scope of
ECL
72,444
70,507
1,918
18
(60)
(35)
(22)
(4)
Total allowances and provisions
(294)
(133)
(41)
(120)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL allowances. 2 Includes components of other receivables due from UBS Group AG
and subsidiaries in the UBS Group and other assets within the scope of ECL. Refer to Note 17a for more information. 3 Includes forward starting reverse repurchase agreements within the scope of ECL.
CHF m
31.12.23
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
41,620
41,620
0
0
0
0
0
0
Due from banks
47,204
47,204
0
0
(4)
(4)
0
0
Receivables from securities financing transactions
58,398
58,398
0
0
(1)
(1)
0
0
Due from customers
90,451
89,151
1,073
227
(170)
(58)
(16)
(96)
Funding provided to significant regulated subsidiaries eligible as total loss-absorbing
capacity
24,729
24,729
0
0
(19)
(19)
0
0
Mortgage loans
4,306
4,206
5
95
0
0
0
0
Accrued income and prepaid expenses
2,525
2,518
7
0
0
0
0
0
Other assets
2
772
772
0
0
(2)
0
0
(1)
Total on-balance sheet financial assets within the scope of ECL
270,005
268,598
1,085
322
(197)
(83)
(16)
(98)
Total exposure
ECL provisions
Off-balance sheet (within the scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Contingent liabilities, gross
26,395
26,283
109
3
(3)
(1)
0
(1)
Irrevocable commitments, gross
16,749
15,510
1,227
12
(49)
(29)
(19)
(2)
Forward starting transactions (securities financing transactions)
3
7,996
7,996
0
0
0
0
0
0
Credit lines
8,229
7,951
278
0
0
0
0
0
Irrevocable committed prolongation of existing loans
1,605
1,605
0
0
0
0
0
0
Total off-balance sheet financial instruments and credit lines within the scope of
ECL
60,975
59,345
1,615
15
(51)
(30)
(18)
(3)
Total allowances and provisions
(247)
(112)
(34)
(101)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL allowances. 2 Includes components of other receivables due from UBS Group AG
and subsidiaries in the UBS Group and other assets within the scope of ECL. Refer to Note 17a for more information. 3 Includes forward starting reverse repurchase agreements within the scope of ECL.
UBS AG standalone financial statements (audited)
Note 13e Financial assets subject to credit risk, by rating category
The table below shows the credit quality and the maximum exposure to credit risk based on the Group’s internal credit
rating system and year-end stage classification.
Financial assets subject to credit risk by rating category
USD m
31.12.24
Rating category
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total gross
carrying
amount
ECL
allowances
Net carrying
amount
(maximum
exposure to
credit risk)
Financial instruments measured at amortized cost
Cash and balances at central banks
of which: stage 1
Due from banks
of which: stage 1
of which: stage 2
Receivables from securities financing transactions
of which: stage 1
Due from customers
of which: stage 1
of which: stage 2
of which: stage 3
Funding provided to significant regulated subsidiaries eligible
as total loss-absorbing capacity
of which: stage 1
Mortgage loans
of which: stage 1
of which: stage 2
of which: stage 3
Accrued income and prepaid expenses
of which: stage 1
of which: stage 2
Other assets
of which: stage 1
of which: stage 3
Total in scope of ECL assets / ECL amounts by stages
135,879
205,306
491,265
Off-balance sheet positions and credit lines subject to expected credit loss by rating category
USD m
31.12.24
Rating category
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total off-
balance sheet
exposure
(maximum
exposure to
credit risk)
ECL provisions
Off-balance sheet (within the scope of ECL)
Contingent liabilities, gross
of which: stage 1
of which: stage 2
of which: stage 3
Irrevocable commitments, gross
of which: stage 1
of which: stage 2
of which: stage 3
Forward starting transactions (securities financing transactions)
of which: stage 1
Credit lines
of which: stage 1
of which: stage 2
of which: stage 3
Irrevocable committed prolongation of existing loans
of which: stage 1
Total off-balance sheet financial instruments and credit lines
141,947
UBS AG standalone financial statements (audited)
Note 13e Financial assets subject to credit risk, by rating category (continued)
Financial assets subject to credit risk by rating category
CHF m
31.12.24
Rating category
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total gross
carrying
amount
ECL
allowances
Net carrying
amount
(maximum
exposure to
credit risk)
Financial instruments measured at amortized cost
Cash and balances at central banks
of which: stage 1
Due from banks
of which: stage 1
of which: stage 2
Receivables from securities financing transactions
of which: stage 1
Due from customers
of which: stage 1
of which: stage 2
of which: stage 3
Funding provided to significant regulated subsidiaries eligible
as total loss-absorbing capacity
of which: stage 1
Mortgage loans
of which: stage 1
of which: stage 2
of which: stage 3
Accrued income and prepaid expenses
of which: stage 1
of which: stage 2
Other assets
of which: stage 1
of which: stage 3
Total in scope of ECL assets / ECL amounts by stages
Off-balance sheet positions and credit lines subject to expected credit loss by rating category
CHF m
31.12.24
Rating category
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total off-
balance sheet
exposure
(maximum
exposure to
credit risk)
ECL provisions
Off-balance sheet (within the scope of ECL)
Contingent liabilities, gross
of which: stage 1
of which: stage 2
of which: stage 3
Irrevocable commitments, gross
of which: stage 1
of which: stage 2
of which: stage 3
Forward starting transactions (securities financing transactions)
of which: stage 1
Credit lines
of which: stage 1
of which: stage 2
of which: stage 3
Irrevocable committed prolongation of existing loans
of which: stage 1
Total off-balance sheet financial instruments and credit lines
›
Refer to “Note 10 Financial assets at amortized cost and other positions in scope of expected credit loss measurement” and “Note
20 Expected credit loss measurement” in the “Consolidated financial statements” section of the UBS AG Annual Report 2024,
available under “Annual reporting” at
ubs.com/investors
, for more information about ECL in accordance with IFRS Accounting
Standards
UBS AG standalone financial statements (audited)
Note 13e Financial assets subject to credit risk, by rating category (continued)
Financial assets subject to credit risk by rating category
USD m
31.12.23
Rating category
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total gross
carrying
amount
ECL
allowances
Net carrying
amount
(maximum
exposure to
credit risk)
Financial instruments measured at amortized cost
Cash and balances at central banks
of which: stage 1
Due from banks
of which: stage 1
Receivables from securities financing transactions
of which: stage 1
Due from customers
of which: stage 1
of which: stage 2
of which: stage 3
Funding provided to significant regulated subsidiaries eligible
as total loss-absorbing capacity
of which: stage 1
Mortgage loans
of which: stage 1
of which: stage 2
of which: stage 3
Accrued income and prepaid expenses
of which: stage 1
of which: stage 2
Other assets
of which: stage 1
of which: stage 3
Total in scope of ECL assets / ECL amounts by stages
Off-balance sheet positions and credit lines subject to expected credit loss by rating category
USD m
31.12.23
Rating category
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total carrying
amount
(maximum
exposure to
credit risk)
ECL provision
Off-balance sheet (in scope of ECL)
Contingent liabilities, gross
of which: stage 1
of which: stage 2
of which: stage 3
Irrevocable commitments, gross
of which: stage 1
of which: stage 2
of which: stage 3
Forward starting transactions (securities financing transactions)
of which: stage 1
Credit lines
of which: stage 1
of which: stage 2
Irrevocable committed prolongation of existing loans
of which: stage 1
Total off-balance sheet financial instruments and credit lines
UBS AG standalone financial statements (audited)
Note 13e Financial assets subject to credit risk, by rating category (continued)
Financial assets subject to credit risk, by rating category
CHF m
31.12.23
Rating category
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total gross
carrying
amount
ECL
allowances
Net carrying
amount
(maximum
exposure to
credit risk)
Financial instruments measured at amortized cost
Cash and balances at central banks
of which: stage 1
Due from banks
of which: stage 1
Receivables from securities financing transactions
of which: stage 1
Due from customers
of which: stage 1
of which: stage 2
of which: stage 3
Funding provided to significant regulated subsidiaries eligible
as total loss-absorbing capacity
of which: stage 1
Mortgage loans
of which: stage 1
of which: stage 2
of which: stage 3
Accrued income and prepaid expenses
of which: stage 1
of which: stage 2
Other assets
of which: stage 1
of which: stage 3
Total in scope of ECL assets / ECL amounts by stages
Off-balance sheet positions and credit lines subject to expected credit loss by rating category
CHF m
31.12.23
Rating category
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total carrying
amount
(maximum
exposure to
credit risk)
ECL provision
Off-balance sheet (in scope of ECL)
Contingent liabilities, gross
of which: stage 1
of which: stage 2
of which: stage 3
Irrevocable commitments, gross
of which: stage 1
of which: stage 2
of which: stage 3
Forward starting transactions (securities financing transactions)
of which: stage 1
Credit lines
of which: stage 1
of which: stage 2
Irrevocable committed prolongation of existing loans
of which: stage 1
Total off-balance sheet financial instruments and credit lines
UBS AG standalone financial statements (audited)
Note 14 Trading portfolio and other financial instruments measured at fair value
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Assets
Trading portfolio assets
148,686
124,682
135,022
104,943
of which: debt instruments
1
30,308
21,300
27,523
17,928
of which: listed
21,960
17,653
19,942
14,858
of which: equity instruments
113,185
100,646
102,783
84,713
of which: precious metals and other physical commodities
5,193
2,735
4,715
2,302
Total assets measured at fair value
148,686
124,682
135,022
104,943
of which: fair value derived using a valuation model
27,939
17,340
25,371
14,595
of which: securities eligible for repurchase transactions in accordance with liquidity regulations
15,542
12,167
14,113
10,241
Liabilities
Trading portfolio liabilities
29,316
27,280
26,622
22,961
of which: debt instruments
1
11,884
11,191
10,792
9,419
of which: listed
11,157
10,908
10,131
9,181
of which: equity instruments
17,431
16,089
15,829
13,542
Financial liabilities designated at fair value
3
102,901
80,859
93,444
68,058
Total liabilities measured at fair value
132,216
108,139
120,065
91,019
of which: fair value derived using a valuation model
112,247
85,898
101,931
72,300
1 Includes money market paper. 2 Consists of high-quality liquid debt securities that are eligible for repurchase transactions at the Swiss National Bank or other central banks. 3 Refer to Note 20 for more
information.
UBS AG standalone financial statements (audited)
Note 15 Derivative instruments
1
31.12.24
31.12.23
USD bn
Derivative
financial
assets
Derivative
financial
liabilities
Total notional
values
2
Derivative
financial
assets
Derivative
financial
liabilities
Total notional
values
2
Interest rate contracts
Forwards
3
0.2
0.2
602
0.1
0.2
1,076
Swaps
32.7
25.8
15,269
25.7
21.0
12,667
of which: designated in hedge accounting relationships
0.0
0.0
197
0.0
0.0
123
Futures
0.0
0.0
802
0.0
0.0
704
Over-the-counter (OTC) options
11.6
13.2
1,963
12.1
14.4
1,571
Exchange-traded options
0.1
0.2
198
0.1
0.1
96
Total
44.6
39.4
4
38.1
35.7
16,114
Foreign exchange contracts
Forwards
37.2
32.5
2,290
15.6
18.9
1,892
of which: designated in hedge accounting relationships
0.2
0.0
3
0.0
0.0
0
Swaps
53.1
51.4
4,012
44.5
47.1
3,823
of which: designated in hedge accounting relationships
0.9
0.9
59
0.5
0.7
46
Futures
0.0
-
1
0.0
0.0
1
Over-the-counter (OTC) options
9.5
9.7
1,157
6.3
6.1
894
Exchange-traded options
0.1
0.1
9
0.1
0.1
5
Total
99.9
93.7
7,469
66.4
72.2
6,615
Equity contracts
Forwards
0.3
0.3
30
0.2
0.4
33
Swaps
6.1
8.6
363
6.5
9.3
269
Futures
0.0
80
0.0
73
Over-the-counter (OTC) options
4.4
8.5
229
2.9
6.0
199
Exchange-traded options
13.2
12.9
778
9.5
9.0
726
Total
24.1
30.3
1,479
19.1
24.6
1,299
Credit derivative contracts
Credit default swaps
2.4
3.0
133
1.5
1.3
95
Total return swaps
0.1
0.4
1
0.0
0.1
1
Other
0.3
0.0
4
0.1
0.0
1
Total
2.8
3.3
139
1.7
1.5
97
Commodity, precious metals and other contracts
Forwards
5
0.6
0.4
78
0.1
0.2
49
Swaps
0.9
1.1
58
0.7
0.5
45
Futures
0.0
13
0.0
13
Over-the-counter (OTC) options
0.8
0.4
42
0.6
0.3
38
Exchange-traded options
0.3
0.4
9
0.3
0.3
4
Total
2.6
2.3
200
1.6
1.3
150
Total before netting
173.9
169.1
28,120
126.9
135.3
24,275
of which: trading derivatives
172.9
168.1
126.4
134.5
of which: fair value derived using a valuation model
171.9
167.2
125.8
133.8
of which: derivatives designated in hedge accounting relationships
1.0
0.9
0.5
0.7
of which: fair value derived using a valuation model
1.0
0.9
0.5
0.7
Netting with cash collateral payables / receivables
(20.2)
(23.4)
(17.9)
(19.4)
Replacement value netting
(131.8)
(131.7)
(98.9)
(98.9)
Total after netting
21.9
14.0
10.1
16.9
of which: with central clearing counterparties
0.6
0.3
0.5
0.2
of which: with bank and broker-dealer counterparties
3.0
4.2
2.1
2.1
of which: other client counterparties
18.3
9.5
7.5
14.6
1 Bifurcated embedded derivatives are presented on the same balance sheet lines as their host contracts and are excluded from this table. The replacement values and related notional values of these derivatives were
not material for the periods presented. 2 Total notional values include USD 15.5trn (31 December 2023: USD 13.8trn) relating to derivatives that are cleared through either a central counterparty or an exchange.
The fair value of these derivatives net of the corresponding cash margin was not material for any of the periods presented. 3 Includes forward rate agreements. 4 Notional amounts related to interest rate contracts
increased by USD 2.7trn compared with 31 December 2023, mainly reflecting the effect of the merger of UBS AG and Credit Suisse AG, and higher business volume in the Investment Bank . 5 Includes derivative
loan commitments with notional values of USD 23bn as of 31 December 2024 (31 December 2023: USD 6bn) and negative replacement values of USD 137m (31 December 2023: USD 21m).
UBS AG standalone financial statements (audited)
Note 15 Derivative instruments (continued)
1
31.12.24
31.12.23
CHF bn
Derivative
financial
assets
Derivative
financial
liabilities
Total notional
values
2
Derivative
financial
assets
Derivative
financial
liabilities
Total notional
values
2
Interest rate contracts
Forwards
3
0.2
0.2
547
0.1
0.1
905
Swaps
29.7
23.4
13,865
21.7
17.6
10,662
of which: designated in hedge accounting relationships
0.0
0.0
179
0.0
0.0
104
Futures
0.0
0.0
728
0.0
0.0
593
Over-the-counter (OTC) options
10.6
12.0
1,782
10.2
12.1
1,322
Exchange-traded options
0.1
0.1
180
0.1
0.1
81
Total
40.5
35.8
17,103
4
32.0
30.0
13,563
Foreign exchange contracts
Forwards
33.8
29.5
2,080
13.1
15.9
1,593
of which: designated in hedge accounting relationships
0.1
0.0
3
0.0
0.0
0
Swaps
48.2
46.7
3,643
37.5
39.6
3,218
of which: designated in hedge accounting relationships
0.8
0.9
53
0.4
0.6
39
Futures
0.0
0.0
1
0.0
0.0
1
Over-the-counter (OTC) options
8.7
8.8
1,050
5.3
5.2
752
Exchange-traded options
0.1
0.1
8
0.0
0.0
5
Total
90.7
85.1
6,783
55.9
60.7
5,568
Equity contracts
Forwards
0.3
0.3
27
0.2
0.3
27
Swaps
5.5
7.8
329
5.4
7.8
226
Futures
0.0
73
0.0
61
Over-the-counter (OTC) options
4.0
7.7
208
2.5
5.0
168
Exchange-traded options
12.0
11.7
706
8.0
7.6
611
Total
21.9
27.5
1,343
16.1
20.7
1,094
Credit derivative contracts
Credit default swaps
2.2
2.7
121
1.2
1.1
80
Total return swaps
0.0
0.3
1
0.0
0.1
1
Other
0.3
0.0
4
0.1
0.0
1
Total
2.5
3.0
126
1.4
1.2
81
Commodity, precious metals and other contracts
Forwards
5
0.5
0.3
71
0.1
0.1
41
Swaps
0.8
1.0
53
0.6
0.5
38
Futures
0.0
11
0.0
11
Over-the-counter (OTC) options
0.7
0.4
38
0.5
0.2
32
Exchange-traded options
0.3
0.4
8
0.2
0.3
4
Total
2.3
2.1
181
1.4
1.1
126
Total before netting
157.9
153.5
25,536
106.8
113.9
20,432
of which: trading derivatives
157.0
152.7
106.4
113.2
of which: fair value derived using a valuation model
156.1
151.9
105.9
112.6
of which: derivatives designated in hedge accounting relationships
1.0
0.9
0.4
0.6
of which: fair value derived using a valuation model
1.0
0.9
0.4
0.6
Netting with cash collateral payables / receivables
(18.4)
(21.2)
(15.1)
(16.4)
Replacement value netting
(119.7)
(119.6)
(83.2)
(83.2)
Total after netting
19.9
12.7
8.5
14.2
of which: with central clearing counterparties
0.6
0.2
0.4
0.2
of which: with bank and broker-dealer counterparties
2.7
3.8
1.7
1.7
of which: other client counterparties
16.6
8.7
6.3
12.3
1 Bifurcated embedded derivatives are presented on the same balance sheet lines as their host contracts and are excluded from this table. The replacement values and related notional values of these derivatives were
not material for the periods presented. 2 Total notional values include CHF 14.1trn (31 December 2023: CHF 11.6trn) relating to derivatives that are cleared through either a central counterparty or an exchange.
The fair value of these derivatives net of the corresponding cash margin was not material for any of the periods presented. 3 Includes forward rate agreements. 4 Notional amounts related to interest rate contracts
increased by CHF 3.5trn compared with 31 December 2023, mainly reflecting the effect of the merger of UBS AG and Credit Suisse AG, and higher business volume in the Investment Bank. 5 Includes derivative
loan commitments with notional values of CHF 20bn as of 31 December 2024 (31 December 2023: CHF 5bn) and negative replacement values of CHF 125m (31 December 2023: CHF 17m).
UBS AG standalone financial statements (audited)
Note 16a Financial investments by instrument type
31.12.24
31.12.23
USD m
Carrying amount
Fair value
Carrying amount
Fair value
Debt instruments
38,710
38,190
40,857
40,864
21,095
20,413
20,760
20,474
of which: available for sale
17,615
17,776
20,097
20,390
Equity instruments
1,140
1,144
16
19
of which: qualified participations
1
1
2
2
Other
0
0
1
1
Total financial investments
39,850
39,334
40,874
40,884
of which: securities eligible for repurchase transactions in accordance with liquidity regulations
34,381
33,744
36,255
36,065
1 Qualified participations are investments in which UBS AG holds 10% or more of the total capital or has at least 10% of total voting rights. 2 Consists of high -quality liquid debt securities that are eligible for
repurchase transactions at the Swiss National Bank or other central banks.
31.12.24
31.12.23
CHF m
Carrying amount
Fair value
Carrying amount
Fair value
Debt instruments
35,153
34,680
34,388
34,395
19,157
18,537
17,473
17,233
of which: available for sale
15,996
16,143
16,915
17,162
Equity instruments
1,035
1,038
14
16
of which: qualified participations
1
1
1
1
Other
0
0
1
1
Total financial investments
36,188
35,719
34,403
34,412
of which: securities eligible for repurchase transactions in accordance with liquidity regulations
31,221
30,643
30,515
30,355
1 Qualified participations are investments in which UBS AG holds 10% or more of the total capital or has at least 10% of total voting rights. 2 Consists of high -quality liquid debt securities that are eligible for
repurchase transactions at the Swiss National Bank or other central banks.
Note 16b Financial investments by counterparty rating – debt instruments
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Internal UBS rating
1
0–1
25,113
31,902
22,805
26,852
2–3
13,231
8,929
12,015
7,515
4–5
363
24
330
20
6–8
0
0
0
0
9–13
0
0
0
0
Non-rated
3
1
3
1
Total financial investments
38,710
40,857
35,153
34,388
1 Refer to Note 19 for more information.
Note 17a Other assets
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Deferral position for hedging instruments
9,129
6,824
8,290
5,743
Deposits and collateral provided in connection with litigation, regulatory and similar matters
1
1,290
1,372
1,172
1,155
Fee- and commission-related receivables
282
242
256
203
Net assets for defined benefit plans
428
344
388
290
VAT, withholding tax and other tax receivables
823
425
747
357
Other
1,966
699
1,784
587
of which: other receivables due from UBS Group AG and subsidiaries in the UBS Group
1,459
483
1,325
407
Total other assets
2
13,918
9,905
12,638
8,336
1 Refer to item 1 in Note 18b to the UBS AG consolidated financial statements in the UBS AG Annual Report 2024 for more information. 2 Includes components of other receivables due from UBS Group AG and
subsidiaries in the UBS Group and other assets totaling USD 2,172m (CHF 1,972m) as of 31 December 2024 USD 918m (CHF 772m) as of 31 December 2023), which are within the scope of expected credit loss
accounting. Refer to Note 13d for more information.
UBS AG standalone financial statements (audited)
Note 17b Other liabilities
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Settlement and clearing accounts
401
115
364
97
Net defined benefit liabilities
61
66
55
56
VAT, withholding tax and other tax payables
1
108
82
98
69
Other
4,626
1,491
4,201
1,254
of which: other payables to third parties
2,493
490
2,264
412
of which: other payables due to UBS Group AG and subsidiaries in the UBS Group
1,885
900
1,712
758
Total other liabilities
5,196
1,755
4,718
1,475
1 Excludes capital tax payables.
Note 18 Pledged assets
The table below provides information about pledged assets, other than assets placed with central banks related to
undrawn credit lines and for payment, clearing and settlement purposes (31 December 2024: USD 1.1bn (CHF 0.9bn),
31 December 2023: USD 3.5bn (CHF 2.9bn)) and those pledged in connection with securities financing transactions (refer
to Note 11 for more information).
31.12.24
31.12.23
USD m
Carrying amount of
pledged assets
Carrying amount of
pledged assets
Securities
1
12,112
Property
2
2,025
Total pledged assets
14,137
1 Includes securities pledged for derivative transactions, where the replacement values are managed on a portfolio basis across counterparties and product types, and therefore there is no direct relationship between
the specific collateral pledged and the associated liability. 2 These pledged properties serve as collateral for an existing mortgage loan from UBS Switzerland AG, the carrying amount of which was USD 2,521m
as of 31 December 2024 (USD 2,804m as of 31 December 2023).
31.12.24
31.12.23
CHF m
Carrying amount of
pledged assets
Carrying amount of
pledged assets
Securities
1
10,999
Property
2
1,839
Total pledged assets
12,838
1 Includes securities pledged for derivative transactions, where the replacement values are managed on a portfolio basis across counterparties and product types, and therefore there is no direct relationship between
the specific collateral pledged and the associated liability. 2 These pledged properties serve as collateral for an existing mortgage loan from UBS Switzerland AG, the carrying amount of which was CHF 2,289m
as of 31 December 2024 (CHF 2,360m as of 31 December 2023).
UBS AG standalone financial statements (audited)
Note 19 Country risk of total assets
The table below provides a breakdown of total non-Swiss assets by credit rating, after netting of assets and liabilities as
recognized on the balance sheet but before other risk mitigants. The credit ratings reflect the sovereign credit rating of
the country to which the ultimate risk of the underlying asset is related. The ultimate country of risk for unsecured loan
positions is the domicile of the immediate borrower or, in the case of a legal entity, the domicile of the ultimate parent
entity. For collateralized or guaranteed positions, the ultimate country of risk is the domicile of the provider of the
collateral or guarantor or, if applicable, the domicile of the ultimate parent entity of the provider of the collateral or
guarantor. For mortgage loans, the ultimate country of risk is the country where the real estate is located. Similarly, the
ultimate country of risk for property and equipment is the country where the property and equipment are located. Assets
for which Switzerland is the ultimate country of risk are provided separately at the bottom of the table in order to provide
a reconciliation to total balance sheet assets.
›
Refer to the “Risk management and control” section of the UBS AG Annual Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more information
31.12.24
31.12.23
Classification
Internal UBS rating
1
Description
Moody’s Investors
Service
S&P
Fitch
USD m
%
USD m
%
Low risk
0 and 1
Investment grade
Aaa
AAA
AAA
343,884
43
251,204
45
2
Aa1 to Aa3
AA+ to AA–
AA+ to AA–
134,479
17
90,612
16
Medium risk
3
A1 to A3
A+ to A–
A+ to A–
93,246
12
71,893
13
4
Baa1 to Baa2
BBB+ to BBB
BBB+ to BBB
18,082
2
10,340
2
5
Baa3
BBB–
BBB–
6,872
1
5,328
1
High risk
6
Sub-investment grade
Ba1
BB+
BB+
828
0
127
0
7
Ba2
BB
BB
2,765
0
774
0
8
Ba3
BB–
BB–
246
0
1,940
0
9
B1
B+
B+
1,805
0
750
0
Very high risk
10
B2
B
B
454
0
503
0
11
B3
B–
B–
129
0
121
0
12
Caa1 to Caa2
CCC+ to CCC
CCC+ to CCC
4,659
1
261
0
13
Caa3 to C
CCC– to C
CCC– to C
121
0
134
0
Distressed
Default
Defaulted
D
D
119
0
29
0
Subtotal
607,688
77
434,016
78
Switzerland
183,608
23
124,511
22
Total assets
791,297
100
558,527
100
1 Internal ratings are mapped to the external ratings in line with the table published in the “Risk management and control” section of the UBS Group AG Annual Report 2024.
31.12.24
31.12.23
Classification
Internal UBS rating
1
Description
Moody’s Investors
Service
S&P
Fitch
CHF m
%
CHF m
%
Low risk
0 and 1
Investment grade
Aaa
AAA
AAA
312,281
43
211,428
45
2
Aa1 to Aa3
AA+ to AA–
AA+ to AA–
122,121
17
76,271
16
Medium risk
3
A1 to A3
A+ to A–
A+ to A–
84,676
12
60,511
13
4
Baa1 to Baa2
BBB+ to BBB
BBB+ to BBB
16,420
2
8,703
2
5
Baa3
BBB–
BBB–
6,240
1
4,485
1
High risk
6
Sub-investment grade
Ba1
BB+
BB+
752
0
107
0
7
Ba2
BB
BB
2,511
0
651
0
8
Ba3
BB–
BB–
223
0
1,633
0
9
B1
B+
B+
1,639
0
631
0
Very high risk
10
B2
B
B
412
0
423
0
11
B3
B–
B–
117
0
102
0
12
Caa1 to Caa2
CCC+ to CCC
CCC+ to CCC
4,231
1
220
0
13
Caa3 to C
CCC– to C
CCC– to C
110
0
113
0
Distressed
Default
Defaulted
D
D
108
0
24
0
Subtotal
551,841
77
365,302
78
Switzerland
166,734
23
104,803
22
Total assets
718,576
100
470,106
100
1 Internal ratings are mapped to the external ratings in line with the table published in the “Risk management and control” section of the UBS Group AG Annual Report 2024.
UBS AG standalone financial statements (audited)
Note 20 Structured debt instruments
The table below provides a breakdown of financial liabilities designated at fair value that are considered structured debt
instruments.
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Fixed-rate bonds with structured features
8,684
5,679
7,886
4,780
Structured debt instruments issued:
Equity-linked
53,917
46,220
48,962
38,903
Rates-linked
22,373
16,681
20,316
14,040
Credit-linked
4,787
4,287
4,347
3,608
Commodity-linked
1
3,620
3,704
3,288
3,118
FX-linked
1,253
699
1,138
589
Funding received from UBS Group AG designated at fair value
2
4,998
2,711
4,539
2,282
Structured over-the-counter (OTC) debt instruments
3,268
877
2,968
738
Total financial liabilities designated at fair value
102,901
80,859
93,444
68,058
1 Includes precious metals-linked debt instruments issued. 2 Refer to Note 21 for more information.
In addition to
Financial liabilities designated at fair value
, certain structured debt instruments were reported within the
balance sheet lines
Due to banks
,
Due to customers
Bonds issued
. These instruments were bifurcated for
measurement purposes. As of 31 December 2024, the total carrying amount of the host instruments was USD 8,258m
(CHF 7,499m) (31 December 2023: USD 7,555m (CHF 6,359m)) and the total carrying amount of the bifurcated
embedded derivatives was positive USD 63m (CHF 57m) (31 December 2023: positive USD 58m (CHF 49m)).
Note 21 Funding eligible as total loss-absorbing capacity at the UBS AG level
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Funding eligible as total loss-absorbing capacity at the UBS AG level included in:
Funding received from UBS Group AG measured at amortized cost
108,185
67,292
98,243
56,639
Funding received from UBS Group AG designated at fair value
4,998
2,711
4,539
2,282
Bonds issued
218
546
198
460
Total funding eligible as total loss-absorbing capacity at the UBS AG level
1
113,401
70,549
102,980
59,381
1 Represents the Swiss GAAP carrying amount of instruments qualifying as total loss-absorbing capital. In accordance with the Basel III framework, as applicable to Swiss systemically relevant banks (SRB), total
funding eligible as total loss-absorbing capacity at the UBS AG level was USD 108,004m (CHF 98,079m) as of 31 December 2024 (31 December 2023: USD 66,951m (CHF 56,352m)). Refer to the “UBS AG standalone
regulatory information” section of this report for more information about Swiss SRB going and gone concern capital.
UBS AG standalone financial statements (audited)
Note 22a Share capital
UBS AG shares issued and outstanding
As of 31 December 2024, UBS AG’s share capital of USD 386m (CHF 380m) consisted of 3,858,408,466 fully paid-up
registered issued and outstanding shares with a nominal value of USD 0.10, which each entitle the holder to one vote at
the meeting of the shareholders of UBS AG, if entered into the share register as having the right to vote, as well as a
proportionate share of distributed dividends (unchanged from 31 December 2023). UBS AG’s shares are not subject to
any restrictions or limitations on their transferability. All shares were held by UBS Group AG.
Conditional share capital
As of 31 December 2024, the following conditional share capital was available to the Board of Directors (the BoD) of
UBS AG:
–
Conditional capital in the amount of USD 38,000,000, for the issuance of a maximum of 380,000,000 fully paid
registered shares with a nominal value of USD 0.10 each (unchanged from 31 December 2023), to be issued through
the voluntary or mandatory exercise of conversion rights and / or warrants granted in connection with the issuance of
bonds or similar financial instruments on national or international capital markets. This conditional capital allowance
was approved at the Extraordinary General Meeting held on 26 November 2014, having originally been approved at
the Annual General Meeting (the AGM) of UBS AG on 14 April 2010. The BoD has not made use of such allowance.
Conversion capital
As of 31 December 2024, UBS AG had conversion capital in the amount of USD 70,000,000, for the issuance of a
maximum of 700,000,000 fully paid registered shares with a nominal value of USD 0.10 each. The issuance of fully paid
registered shares only occurs through the mandatory conversion of claims arising upon occurrence of one or more trigger
events under financial market instruments with contingent conversion features issued by UBS AG. The creation of this
conversion capital was approved at the Annual General Meeting of Shareholders (the AGM) held on 23 April 2024.
Non-distributable reserves
Non-distributable reserves consist of 50% of the share capital of UBS AG, amounting to USD 193m (CHF 190m) as of
31 December 2024 (unchanged from 31 December 2023).
Note 22b Significant shareholders
The sole direct shareholder of UBS AG is UBS Group AG, which holds 100% of UBS AG shares. These shares are entitled
to voting rights. Indirect shareholders of UBS AG included in the table below are the direct shareholders of UBS Group AG
(acting in their own name or in their capacity as nominees for other investors or beneficial owners) that were registered
in the UBS Group AG share register with 3% or more of the share capital of UBS Group AG as of 31 December 2024 or
as of 31 December 2023. The shares and share capital of UBS AG held by indirect shareholders, as shown in the table
below, represent their relative holding of UBS Group AG shares. They do not have voting rights in UBS AG.
31.12.24
31.12.23
USD m, except where indicated
Share capital held
Shares held (%)
Share capital held
Shares held (%)
Significant direct shareholder of UBS AG
UBS Group AG
386
100
386
100
Significant indirect shareholders of UBS AG
DTC (Cede & Co.), New York
1
25
6
29
7
Nortrust Nominees Ltd., London
14
4
15
4
Chase Nominees Ltd., London
44
11
1 The US securities clearing organization DTC (Cede & Co.), New York, “The Depository Trust Company”, is a US securities clearing organization.
31.12.24
31.12.23
CHF m, except where indicated
Share capital held
Shares held (%)
Share capital held
Shares held (%)
Significant direct shareholder of UBS AG
UBS Group AG
380
100
380
100
Significant indirect shareholders of UBS AG
DTC (Cede & Co.), New York
1
25
6
28
7
Nortrust Nominees Ltd., London
14
4
15
4
Chase Nominees Ltd., London
43
11
1 The US securities clearing organization DTC (Cede & Co.), New York”, is a US securities clearing organization.
UBS AG standalone financial statements (audited)
Note 23 Post-employment benefit plans
a) Assets related to defined benefit plans
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Net defined benefit assets for defined benefit plans
1
Total assets for defined benefit plans
1 As of 31 December 2024, USD 428m (CHF 388m) mainly reflected USD 362m (CHF 329m) for the UBS UK defined benefit plan, USD 36m (CHF 33m) for the Credit Suisse Guernsey defined benefit plan, USD 22m
(CHF 20m) for the UBS US Investment Bank defined benefit plan and USD 6m (CHF 6m) for the Credit Suisse Swiss pension plan. As of 31 December 2023, USD 344m (CHF 290m) mainly reflected USD 341m
(CHF 287m) for the UBS UK defined benefit plan and USD 3m (CHF 2m) for the UBS US defined benefit plan.
b) Liabilities related to defined benefit plans
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Provision for Swiss pension plans
0
0
0
0
Net defined benefit liabilities for defined benefit plans
1
Total provision for defined benefit plans
Bank accounts at UBS and UBS debt instruments held by Swiss pension funds
UBS derivative financial instruments held by Swiss pension funds
Total liabilities related to defined benefit plans
1 As of 31 December 2024, USD 61m (CHF 55m) mainly reflected USD 35m (CHF 32m) for the UBS US plans, USD 12m (CHF 11m) for the UBS UK plan and USD 8m (CHF 7m) for the UBS Taiwan plan. As of
31 December 2023, USD 66m (CHF 56m) mainly reflected USD 37m (CHF 31m) for the UBS US plans, USD 14m (CHF 12m) for the UBS UK plan and USD 11m (CHF 9m) for the UBS Taiwan plan.
c) Swiss pension plan
USD m
CHF m
As of or for the year ended
31.12.24
31.12.23
31.12.24
31.12.23
Pension plan surplus
1
Economic benefit / (obligation) of UBS AG
Change in economic benefit / (obligation) recognized in the income statement
Employer contributions in the period recognized in the income statement
Performance awards-related employer contributions accrued
Total pension expense recognized in the income statement within Personnel expenses
1 The pension plan surplus is determined in accordance with Swiss GAAP (FER 26) and consists of the reserve for the fluctuation in asset value and a prepaid contribution. The reserve for the fluctuation did not
represent an economic benefit for UBS AG in accordance with Swiss GAAP (FER 16) as of both 31 December 2024 and 31 December 2023.
UBS AG has elected to apply FER 16 for its Swiss pension plan and IFRS Accounting Standards (IAS 19) for its non-Swiss
defined benefit plans. However, remeasurements of the defined benefit obligations and assets for non-Swiss defined
benefit plans are recognized in the income statement rather than directly in equity.
In 2024, an expense of USD 277m (CHF 243m) was recognized in the income statement, driven by expenses of USD 130m
(CHF 116m) related to defined contribution plans and USD 148m (CHF 127m) related to defined benefit plans. In 2023,
an expense of USD 124m (CHF 115m) was recognized in the income statement, driven by expenses of USD 76m
(CHF 68m) related to defined contribution plans and USD 49m (CHF 47m) related to defined benefit plans.
The Swiss pension plans had an employer contribution reserve of USD 6m as of 31 December 2024 and none as of
31 December 2023.
›
Refer to Note 2 for more information
›
Refer to “Note 26 Post-employment benefit plans” in the “Consolidated financial statements” section of the UBS AG Annual
Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more information about defined benefit plans in
accordance with IFRS Accounting Standards
UBS AG standalone financial statements (audited)
Note 24 Related parties
Transactions with related parties are conducted at internally agreed transfer prices or at arm’s-length terms and neither
involve more than the normal risk of collectability nor contain any other unfavorable features for the firm. Loans, fixed
advances and mortgages granted to non-independent members of the governing bodies in the ordinary course of
business are also on substantially the same terms and conditions that are available to other employees, including interest
rates and collateral. Independent members of the governing bodies are granted loans and mortgages in the ordinary
course of business at general market conditions.
31.12.24
31.12.23
USD m
Amounts due from
Amounts due to
Amounts due from
Amounts due to
Qualified shareholders
1
3,099
123,802
4,344
77,258
of which: due from / to customers
2,047
2,590
3,804
2,535
of which: funding received from UBS Group AG measured at amortized cost
113,898
70,620
of which: funding received from UBS Group AG designated at fair value
4,998
2,711
Subsidiaries
187,707
116,401
116,967
68,654
of which: due from / to banks
88,211
73,492
35,235
51,206
of which: due from / to customers
33,376
4,869
35,319
1,267
of which: receivables / payables from securities financing transactions
17,475
35,526
15,979
15,121
of which: funding provided to significant regulated subsidiaries eligible as total loss-
absorbing capacity
43,652
29,380
Affiliated entities
2
502
1,397
16,644
2,004
of which: due from / to banks
0
0
14,821
1,194
of which: due from / to customers
416
889
904
232
External auditors
23
4
Other related parties
3
63
21
2
1 The qualified shareholder of UBS AG is UBS Group AG. 2 Affiliated entities of UBS AG are all direct subsidiaries of UBS Group AG, including Credit Suisse AG as of 31 December 2023. 3 Includes amounts due
to / from other participations.
31.12.24
31.12.23
CHF m
Amounts due from
Amounts due to
Amounts due from
Amounts due to
Qualified shareholders
1
2,815
112,424
3,656
65,027
of which: due from / to customers
1,859
2,352
3,201
2,134
of which: funding received from UBS Group AG measured at amortized cost
103,431
59,440
of which: funding received from UBS Group AG designated at fair value
4,539
2,282
Subsidiaries
170,457
105,704
98,450
57,785
of which: due from / to banks
80,105
66,738
29,657
43,099
of which: due from / to customers
30,309
4,422
29,728
1,067
of which: receivables / payables from securities financing transactions
15,869
32,261
13,450
12,727
of which: funding provided to significant regulated subsidiaries eligible as total loss-
absorbing capacity
39,640
24,729
Affiliated entities
2
456
1,268
14,009
1,687
of which: due from / to banks
0
0
12,475
1,005
of which: due from / to customers
378
808
761
195
External auditors
20
3
Other related parties
3
58
19
2
1 The qualified shareholder of UBS AG is UBS Group AG. 2 Affiliated entities of UBS AG are all direct subsidiaries of UBS Group AG,
including Credit Suisse AG as of 31 December 2023. 3 Includes amounts due
to / from other participations.
As of 31 December 2024, off-balance sheet positions related to subsidiaries amounted to USD 14.2bn (CHF 12.9bn)
(31 December 2023: USD 8.6bn (CHF 7.2bn)), of which USD 8.4bn (CHF 7.6bn) related to guarantees to third parties
(31 December 2023: USD 6.4bn (CHF 5.4bn)) and USD 1.9bn (CHF 1.7bn) related to loan commitments (31 December
2023: USD 0.5bn (CHF 0.4bn)).
As of 31 December 2024, there were no off-balance sheet positions related to affiliates (31 December 2023: USD 1.0bn
(CHF 0.8bn)).
Loans to and deposits from members of governing bodies were immaterial for all periods presented.
UBS AG standalone financial statements (audited)
Note 25 Fiduciary transactions
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Fiduciary deposits
2,435
39
2,211
33
of which: placed with third-party banks
2,435
39
2,211
33
of which: placed with subsidiaries and affiliated entities
0
0
0
0
Total fiduciary transactions
2,435
39
2,211
33
Fiduciary transactions encompass transactions entered into by UBS AG that result in holding or placing assets on behalf
of individuals, trusts, defined benefit plans and other institutions. Unless the recognition criteria for the assets are
satisfied, these assets and the related income are excluded from UBS AG’s balance sheet and income statement but are
disclosed in this Note as off-balance sheet fiduciary transactions. Client deposits that are initially placed as fiduciary
transactions with UBS AG may be recognized on UBS AG’s balance sheet in situations in which the deposit is subsequently
placed within UBS AG. In such cases, these deposits are not reported in the table above.
Note 26a Invested assets and net new money
USD bn
CHF bn
As of or for the year ended
As of or for the year ended
31.12.24
31.12.23
31.12.24
31.12.23
Discretionary assets
106
60
96
51
Other invested assets
799
434
726
365
Total invested assets
1
905
494
822
416
Net new money
(12)
23
(11)
21
1 Includes no double counts.
Note 26b Development of invested assets
USD bn
CHF bn
31.12.24
31.12.23
31.12.24
31.12.23
Total invested assets at the beginning of the year
1
494
468
416
432
Invested assets recognized upon the merger of UBS AG and Credit Suisse AG
2
382
345
Net new money
(12)
23
(11)
21
Market movements
3
67
3
61
1
Foreign currency translation
(10)
2
25
(37)
Other effects
(16)
(1)
(14)
(1)
Total invested assets at the end of the year
1
905
494
822
416
1 Includes no double counts. 2 Invested assets recognized upon the merger of UBS AG and Credit Suisse AG were measured and reported as of 31 May 2024, the merger effective date, in alignment with UBS
accounting policies outlined in Note 31 to the UBS AG consolidated financial statements in the UBS AG Annual Report 2024. 3 Includes interest and dividend income.
›
Refer to “Note 31 Invested assets and net new money” in the “Consolidated financial statements” section of the UBS AG Annual
Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more information
UBS AG standalone
Statement of proposed appropriation of total profit
and dividend distribution
The Board of Directors (the BoD) proposes that the Annual General Meeting of Shareholders (the AGM) on 8 April 2025
approve the appropriation of total profit and an ordinary dividend distribution of USD 6,500m out of the total profit
(USD 5,138m) and out of the
Voluntary earnings reserve
of an amount of USD 6,500m out of the
Voluntary earnings reserve
Voluntary
earnings reserve
.
Appropriation of and distribution out of total profit
USD m
CHF m
For the year ended
For the year ended
31.12.24
31.12.24
1
Net profit for the period
5,138
4,684
Profit / (loss) carried forward
0
0
Total profit available for appropriation
5,138
4,684
Appropriation of total profit
Dividend distribution
(5,138)
(4,684)
Profit / (loss) carried forward
0
0
Proposed dividend out of voluntary earnings reserve
Total voluntary earnings reserve before distribution
13,157
11,311
Dividend distribution
(1,362)
(1,219)
Total voluntary earnings reserve after distribution
11,795
10,092
of which: appropriation to special dividend reserve within voluntary earnings reserve
2
6,500
5,903
1 For illustrative purposes, the proposed dividend of USD 6,500m is converted to Swiss francs at the closing exchange rate as of 31 December 2024 (CHF / USD 1.10), which equals a Swiss franc dividend of CHF 5,903m
and would result in a distribution of CHF 4,684m out of total profit and the remainder of CHF 1,219m out of the voluntary earnings reserve. 2 The Voluntary earnings reserve includes a special dividend reserve of
USD 6,500m (CHF 5,903m) available for appropriation. The decision on the special dividend payment is intended to be made at an Extraordinary General Meeting in the second half of 2025, considering any proposed
requirements from Switzerland’s ongoing review of its capital regime.
UBS AG standalone regulatory information
UBS AG standalone regulatory information
Key metrics for the fourth quarter of 2024
The table below is based on Basel Committee on Banking Supervision (BCBS) Basel III rules and IFRS Accounting
Standards.
During the fourth quarter of 2024, tier 1 capital decreased by USD 8.5bn to USD 90.9bn. Common equity tier 1 (CET1)
capital decreased by USD 8.1bn to USD 75.1bn, mainly as operating profit before tax of USD 1.1bn was more than offset
by additional accruals for capital returns to UBS Group AG of USD 8.5bn. As of 31 December 2024, accruals for capital
returns to UBS Group AG amounted to USD 13.0bn, reflecting a proposed ordinary dividend distribution of USD 6.5bn
and the appropriation of USD 6.5bn to a special dividend reserve, both subject to approval at the Annual General Meeting
in the second quarter of 2025. The decision on the distribution of the special dividend is intended to be made at an
Extraordinary General Meeting in the second half of 2025, considering any proposed requirements from Switzerland’s
ongoing review of its capital regime.
Additional tier 1 (AT1) capital issued by the Group and on lent to UBS AG decreased by USD 0.4bn to USD 15.8bn, mainly
reflecting negative impacts from interest rate risk hedge, foreign currency translation and other effects.
Phase-in risk-weighted assets (RWA) decreased by USD 57.2bn to USD 508.0bn during the fourth quarter of 2024,
primarily driven by decreases in participation RWA as a result of capital repatriations and credit and counterparty credit
risk RWA.
During the fourth quarter of 2024, the leverage ratio denominator (the LRD) decreased by USD 45.1bn to USD 899.3bn,
driven by currency effects of USD 31.2bn and asset size and other movements of USD 13.9bn. The asset size and other
movements were mainly driven by lower lending balances, investments in subsidiaries as a result of capital repatriations,
trading portfolio assets and disposals of high-quality liquid asset (HQLA) portfolio securities, partly offset by higher
securities financing transactions and derivative exposures.
Correspondingly, the CET1 capital ratio of UBS AG standalone increased to 14.8% from 14.7%, reflecting the decrease
in RWA, partly offset by the decrease in CET1 capital. The firm’s Basel III leverage ratio decreased to 10.1% from 10.5%,
reflecting the decrease in tier 1 capital, partly offset by the aforementioned decrease in the LRD.
The quarterly average liquidity coverage ratio (the LCR) of UBS AG standalone decreased 38.3 percentage points to
244.0%, remaining above the prudential requirement communicated by the Swiss Financial Market Supervisory Authority
(FINMA). The movement in the quarterly average LCR was primarily driven by a decrease in HQLA of USD 27.5bn to
USD 142.7bn, mainly reflecting lower cash available, driven by decreases in debt issued measured at amortized cost and
short-term borrowings, higher funding provided to subsidiaries, and an increase in non-HQLA-related securities financing
transactions and funding of trading assets. The effect of the decrease in HQLA was partly offset by a decrease in net cash
outflows of USD 1.8bn to USD 58.6bn, reflecting lower net outflows from derivatives and higher net inflows from
securities financing transactions, partly offset by lower inflows from intercompany funding to subsidiaries.
As of 31 December 2024, the net stable funding ratio decreased 3.1 percentage points to 97.3%, remaining above the
prudential requirement communicated by FINMA. Available stable funding decreased by USD 36.2bn to USD 410.2bn,
mainly driven by lower regulatory capital, deposits and debt issued. Required stable funding decreased by USD 23.1bn
to USD 421.8bn, mainly driven by lower lending assets and investments in subsidiaries.
UBS AG standalone regulatory information
KM1: Key metrics
USD m, except where indicated
31.12.24
30.9.24
30.6.24
31.3.24
31.12.23
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
Minimum capital requirement
2
Risk-based capital ratios as a percentage of RWA
1
5
CET1 ratio (%)
6
Tier 1 ratio (%)
7
Total capital ratio (%)
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 (%)
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 (%)
243.95
Net stable funding ratio (NSFR)
7
18
Total available stable funding
410,197
446,435
448,005
274,568
279,758
19
Total required stable funding
421,792
444,875
437,275
288,322
304,938
20
NSFR (%)
97.25
100.35
102.45
95.23
91.74
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 Calculated after the application of haircuts, inflow
and outflow rates, as well as, where applicable, caps on Level 2 assets and cash inflows. Calculated based on an average of 64 data points in the fourth quarter of 2024 and 65 data points in the third quarter of
2024. 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 In accordance with Art. 17h para. 3 and 4 of the
Liquidity Ordinance, UBS AG standalone is required to maintain a minimum NSFR of at least 80% without taking into account excess funding of UBS Switzerland AG and 100% after taking into account such excess
funding.
Swiss systemically relevant bank going and gone concern requirements and information
UBS AG standalone is considered a systemically relevant bank (an SRB) under Swiss banking law and is subject to capital
regulations on a standalone basis.
The capital requirements based on RWA include a minimum CET1 capital requirement of 10.26%, including a
countercyclical buffer of 0.19%, and a total going concern capital requirement of 14.56%, including a countercyclical
buffer of 0.19%. The capital requirements based on the LRD include a minimum CET1 capital requirement of 3.54% and
a total going concern leverage ratio requirement of 5.04%.
CET1 capital and high -trigger AT1 capital instruments are eligible as going concern capital. As of 31 December 2024,
one remaining outstanding low-trigger AT1 capital instrument, amounting to USD 1.2bn, that was on lent from
UBS Group AG to UBS AG qualified as going concern capital, as agreed with FINMA.
UBS AG standalone is subject to a gone concern capital requirement based on the sum of: (i) the nominal value of the
gone concern instruments issued by UBS entities and held by the parent firm; (ii) 75% of the capital requirements resulting
from third-party exposure on a standalone basis; and (iii) a buffer requirement equal to 30% of the Group’s gone concern
capital requirement on UBS AG’s consolidated exposure. As of 1 January 2024, the buffer requirement has been fully
phased in. The gone concern capital requirement is the higher of RWA- and LRD-based requirements, calculated
separately. The gone concern capital coverage ratio reflects how much gone concern capital is available to meet the gone
concern requirement. Outstanding high- and low-trigger loss-absorbing tier 2 capital instruments, non-Basel III-compliant
tier 2 capital instruments, and total loss-absorbing capacity-eligible unsecured debt instruments are eligible to meet gone
concern requirements until one year before maturity.
UBS AG standalone regulatory information
For direct and indirect investments, including the holding of regulatory capital instruments of UBS AG by subsidiaries that
are active in banking and finance, a FINMA decree introduced a risk-weighting approach, with a phase-in period until
1 January 2028. From 1 January 2019 onward, the initial risk weight of these investments of 200% is being gradually
raised by 5 percentage points per year for Switzerland-domiciled investments and by 20 percentage points per year for
foreign-domiciled investments until the fully applied risk weights are 250% and 400%, respectively. As of 31 December
2024, the applicable phase-in risk weights were 230% for Switzerland-domiciled investments and 320% for foreign-
domiciled investments.
›
Refer to “Capital and capital ratios of our significant regulated subsidiaries” in the “Capital, liquidity and funding, and balance
sheet” section of the UBS Group Annual Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more
information about the joint liability of UBS AG and UBS Switzerland AG
The tables below provide details of the Swiss SRB RWA- and LRD-based going and gone concern requirements and
information as required by FINMA; details regarding eligible gone concern instruments are provided below.
Swiss SRB going and gone concern requirements and information
As of 31.12.24
RWA, phase-in
RWA, fully applied as of 1.1.28
LRD
USD m, except where indicated
in %
in %
in %
Required going concern capital
Total going concern capital
1
1
1
Common equity tier 1 capital
of which: minimum capital
of which: buffer capital
of which: countercyclical buffer
Maximum additional tier 1 capital
of which: additional tier 1 capital
of which: additional tier 1 buffer capital
Eligible going concern capital
Total going concern capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
of which: high-trigger loss-absorbing additional tier 1 capital
of which: low-trigger loss-absorbing additional tier 1 capital
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
Required gone concern capital
2
Higher of RWA- or LRD-based
Total gone concern loss-absorbing capacity
Eligible gone concern capital
Total gone concern loss-absorbing capacity
Gone concern capital coverage ratio
1 Includes applicable add-ons of 1.51% for risk-weighted assets (RWA) phase-in, 1.50% for risk-weighted assets (RWA) fully applied, and 0.54% for leverage ratio denominator (LRD), of which 7 basis points for
RWA phase-in, 6 basis points for RWA fully applied and 4 basis points for LRD reflect the FINMA Pillar 2 capital add-on of USD 338m related to the supply chain finance funds matter at Credit Suisse. 2 A maximum
of 25% of the gone concern requirements can be met with instruments that have a remaining maturity of between one and two years. Once at least 75% of the minimum gone concern requirement has been met
with instruments that have a remaining maturity of greater than two years, all instruments that have a remaining maturity of between one and two years remain eligible to be included in the total gone concern capital.
UBS AG standalone regulatory information
Swiss SRB going and gone concern information
USD m, except where indicated
31.12.24
30.9.24
31.12.23
Eligible going concern capital
Total going concern capital
Total tier 1 capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
of which: high-trigger loss-absorbing additional tier 1 capital
of which: low-trigger loss-absorbing additional tier 1 capital
Eligible gone concern capital
Total gone concern loss-absorbing capacity
Total tier 2 capital
of which: non-Basel III-compliant tier 2 capital
TLAC-eligible unsecured debt
Total loss-absorbing capacity
Total loss-absorbing capacity
Denominators for going and gone concern ratios
Risk-weighted assets, phase-in
of which: investments in Switzerland-domiciled subsidiaries
1
of which: investments in foreign-domiciled subsidiaries
1
Risk-weighted assets, fully applied as of 1.1.28
of which: investments in Switzerland-domiciled subsidiaries
1
of which: investments in foreign-domiciled subsidiaries
1
Leverage ratio denominator
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio, phase-in
of which: common equity tier 1 capital ratio, phase-in
Going concern capital ratio, fully applied as of 1.1.28
of which: common equity tier 1 capital ratio, fully applied as of 1.1.28
Leverage ratios (%)
Going concern leverage ratio
of which: common equity tier 1 leverage ratio
Capital coverage ratio (%)
Gone concern capital coverage ratio
1 Net exposures for 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 230% and 320%, respectively, for the current year. 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 AG standalone regulatory information
Climate risk
Our climate strategy and governance are determined and overseen at the UBS Group level. Similarly, we identify and
manage climate risks, including climate-related financial risks, in our own operations, balance sheet, client assets and
supply chain at the UBS Group level.
Climate-related metrics for the UBS AG legal entity are presented in the UBS Group Annual Report 2024.
›
Refer to “Our focus on sustainability” in the “How we create value for our stakeholders” section and to “Sustainability and
climate risk” in the “Risk management and control” section of the UBS Group Annual Report 2024, available under “Annual
reporting” at
ubs.com/investors
, for more information
›
Refer to “Our sustainability and impact strategy” in the “Strategy” section of the UBS Group Sustainability Report 2024, available
under “Annual reporting” at
ubs.com/investors
, for more information
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
Basel, 17 March 2025
Consent of Independent Registered Public Accounting Firm
We consent to the incorporation by reference in each of the following registration statements of UBS AG:
(1)
on Form F-3 (Registration Number 333-283672), and each related prospectus currently outstanding under
such registration statement,
(2)
the base prospectus of Corporate Asset Backed Corporation (CABCO) dated 23 June 2004 (Registration
Number 333-111572),
(3)
the Form 8-K of CABCO dated 23 June 2004 (SEC File Number 001-13444), and
(4)
the Prospectus Supplements relating to the CABCO Series 2004-101 Trust dated 10 May 2004
(Registration Number 033-91744) and 17 May 2004 (Registration Number 033-91744-05),
of our report dated 14 March 2025, with respect to the standalone financial statements of UBS AG for the year
ended 31 December 2024 included in this Report of Foreign Private Issuer (Form 6-K) dated 17 March 2025, filed
with the Securities and Exchange Commission.
/s/ Ernst & Young Ltd
This Form 6-K is hereby incorporated by reference into (1) the registration statement of UBS AG on Form F-3
(Registration Number 333-283672), and into each prospectus outstanding under the foregoing registration
statement, (2) any outstanding offering circular or similar document issued or authorized by UBS AG that
incorporates by reference any Forms 6-K of UBS AG that are incorporated into its registration statements filed with
the SEC, and (3) the base prospectus of Corporate Asset Backed Corporation (“CABCO”) dated June 23, 2004
(Registration Number 333-111572), the Form 8-K of CABCO filed and dated June 23, 2004 (SEC File Number
001-13444), and the Prospectus Supplements relating to the CABCO Series 2004-101 Trust dated May 10, 2004
and May 17, 2004 (Registration Number 033-91744 and 033-91744-05).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
UBS AG
By: _/s/ Steffen Henrich__________
Name: Steffen Henrich
Title: Controller
By: _/s/ David Kelly _____________
Name: David Kelly
Title: Managing Director
Date: March 17, 2025