6-K
UBS AG (AMUB)
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: July 30, 2025
UBS Group AG
(Registrant's
Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
(Address of principal executive office)
Commission File Number: 1-36764
UBS AG
(Registrant's
Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
Aeschenvorstadt 1, 4051 Basel, Switzerland
(Address of principal executive offices)
Commission File Number: 1-15060
Indicate by check mark whether the registrants file or will file annual
reports under cover of Form 20-F or Form
40-
F.
Form 20-F
☒
Form 40-F
☐
This Form 6-K
consists of
the Second
Quarter 2025
Report of
UBS Group
AG, which
appears immediately
following
this page.
UBS
Group
Second quarter
2025 report
1.
Key figures
3
Our key figures
2.
Recent developments
4
Recent developments
3.
UBS Group performance, business
divisions and Group Items
8
Group performance
18
Global Wealth Management
23
Personal & Corporate Banking
27
Asset Management
29
Investment Bank
32
Non-core and Legacy
34
Group Items
4.
Risk, capital, liquidity and funding,
and balance sheet
36
Risk management and control
41
Capital management
50
Liquidity and funding management
51
Balance sheet and off-balance sheet
53
Share information and earnings per share
5.
Consolidated
financial statements
56
UBS Group AG interim consolidated financial
statements (unaudited)
Appendix
90
Alternative performance measures
94
Abbreviations frequently used in
our financial reports
96
Information sources
97
Cautionary statement
Corporate calendar UBS Group
Information about future publication dates is available
at
ubs.com/global/en/investor-relations/events/calendar.html
Contacts
Switchboards
For all general inquiries
ubs.com/contact
Zurich +41-44-234-1111
London +44-207-567-8000
New York +1-212-821-3000
Hong Kong +852-2971-8888
Singapore +65-6495-8000
Investor Relations
UBS’s Investor Relations team manages
relationships with institutional investors,
research analysts and credit rating agencies.
ubs.com/investors
Zurich +41-44-234-4100
New York +1-212-882-5734
Media Relations
UBS’s Media Relations team manages
relationships with global media and
journalists.
ubs.com/media
Zurich +41-44-234-8500
mediarelations@ubs.com
London +44-20-7567-4714
ubs-media-relations@ubs.com
New York +1-212-882-5858
mediarelations@ubs.com
Hong Kong +852-2971-8200
sh-mediarelations-ap@ubs.com
Office of the Group Company Secretary
The Group Company Secretary handles
inquiries directed to the Chairman or to
other members of the Board of Directors.
UBS Group AG, Office of the Group
Company Secretary
PO Box, CH-8098 Zurich, Switzerland
sh-company-secretary@ubs.com
Zurich +41-44-235-6652
Shareholder Services
UBS’s Shareholder Services team, a unit
of the Group Company Secretary’s office,
manages relationships with shareholders
and the registration of UBS Group AG
registered shares.
UBS Group AG, Shareholder Services
PO Box, CH-8098 Zurich, Switzerland
sh-shareholder-services@ubs.com
Zurich +41-44-235-6652
US Transfer Agent
For global registered share-related
inquiries in the US.
Computershare Trust Company NA
PO Box 43006
Providence, RI, 02940-3006, USA
Shareholder online inquiries:
www.computershare.com/us/
investor-inquiries
Shareholder website:
computershare.com/investor
Calls from the US
+1-866-305-9566
Calls from outside the US
+1-781-575-2623
TDD for hearing impaired
+1-800-231-5469
TDD for foreign shareholders
+1-201-680-6610
Imprint
Publisher: UBS Group AG, Zurich, Switzerland | ubs.com
Language: English
© UBS 2025. The key symbol and UBS are among
the registered and unregistered
trademarks of UBS. All rights reserved.
UBS Group second quarter 2025 report
2
Terms used in this report, unless the context requires otherwise
“UBS”, “UBS Group”, “UBS Group
AG consolidated”, “Group”, “we”,
“us” and “our”
UBS Group AG and its consolidated subsidiaries
“UBS AG” and “UBS
AG consolidated”
UBS AG and its consolidated subsidiaries
“Credit Suisse Group“ and “Credit Suisse”
Pre-acquisition Credit Suisse Group
“UBS Group AG”
UBS Group AG on a standalone basis
“UBS Switzerland AG”
UBS Switzerland AG on a standalone basis
“1m”
One million, i.e. 1,000,000
“1bn”
One billion, i.e. 1,000,000,000
“1trn”
One trillion, i.e. 1,000,000,000,000
In this report, unless the context requires otherwise,
references to any gender shall apply to all genders.
Alternative performance measures
An alternative performance measure (an APM) is a financial measure of historical or
future financial performance,
financial position
or cash
flows other
than a
financial measure
defined or
specified in
the applicable
recognized
accounting standards
or
in other
applicable regulations.
We
report
a
number of
APMs
in
the discussion
of
the
financial and
operating performance
of the
Group, our
business divisions
and Group
Items. We
use APMs
to provide
a
more
complete
picture of
our
operating performance
and
to
reflect
management’s view
of
the
fundamental
drivers
of
our
business
results. A
definition
of
each
APM,
the
method
used
to
calculate
it
and
the
information
content are presented
under “Alternative performance measures”
in the
appendix to this
report. Our APMs
may
qualify
as
non-GAAP
measures
as
defined
by
US
Securities
and
Exchange
Commission
(SEC)
regulations.
Our
underlying results are APMs and are non-GAAP
financial measures.
›
Refer to the “Group performance” section of this report and to “Alternative performance measures” in the
appendix to this report for additional information about underlying results
Significant regulated subsidiary and sub-group
information
Financial and regulatory key figures
for our significant regulated subsidiaries and
sub-groups will be published on
5 August
2025
and
will
be
available
under
“Holding
company
and
significant
regulated
subsidiaries
and
sub-
groups” at
ubs.com/investors
.
UBS Group second quarter 2025 report
3
Key figures
Our key figures
Key figures
As of or for the quarter ended
As of or year-to-date
USD m, except where indicated
30.6.25
31.3.25
31.12.24
30.6.24
30.6.25
30.6.24
Group results
Total revenues
12,112
12,557
11,635
11,904
24,668
24,642
Credit loss expense / (release)
163
100
229
95
263
201
Operating expenses
9,756
10,324
10,359
10,340
20,080
20,597
Operating profit / (loss) before tax
2,193
2,132
1,047
1,469
4,325
3,844
Net profit / (loss) attributable to shareholders
2,395
1,692
770
1,136
4,087
2,890
Diluted earnings per share (USD)
1
0.72
0.51
0.23
0.34
1.23
0.86
Profitability and growth
2,3
Return on equity (%)
10.9
7.9
3.6
5.4
9.4
6.8
Return on tangible equity (%)
11.8
8.5
3.9
5.9
10.2
7.5
Underlying return on tangible equity (%)
4
13.4
10.0
6.6
8.4
11.7
9.2
Return on common equity tier 1 capital (%)
13.5
9.6
4.2
5.9
11.6
7.5
Underlying return on common equity tier 1 capital (%)
4
15.3
11.3
7.2
8.4
13.3
9.2
Revenues over leverage ratio denominator, gross (%)
3.0
3.3
3.0
3.0
3.1
3.1
Cost / income ratio (%)
80.5
82.2
89.0
86.9
81.4
83.6
Underlying cost / income ratio (%)
4
75.4
77.4
81.9
80.6
76.4
78.9
Effective tax rate (%)
(9.5)
20.2
25.6
20.0
5.1
23.6
Net profit growth (%)
110.9
(3.6)
n.m.
(95.8)
41.4
(89.8)
Resources
2
Total assets
1,669,991
1,543,363
1,565,028
1,560,976
1,669,991
1,560,976
Equity attributable to shareholders
89,277
87,185
85,079
83,683
89,277
83,683
Common equity tier 1 capital
5
72,709
69,152
71,367
76,104
72,709
76,104
Risk-weighted assets
5
504,500
483,276
498,538
511,376
504,500
511,376
Common equity tier 1 capital ratio (%)
5
14.4
14.3
14.3
14.9
14.4
14.9
Going concern capital ratio (%)
5
18.2
18.2
17.6
18.0
18.2
18.0
Total loss-absorbing capacity ratio (%)
5
37.9
38.7
37.2
38.7
37.9
38.7
Leverage ratio denominator
5
1,658,089
1,561,583
1,519,477
1,564,201
1,658,089
1,564,201
Common equity tier 1 leverage ratio (%)
5
4.4
4.4
4.7
4.9
4.4
4.9
Liquidity coverage ratio (%)
6
182.3
181.0
188.4
212.0
182.3
212.0
Net stable funding ratio (%)
122.4
124.2
125.5
128.0
122.4
128.0
Other
Invested assets (USD bn)
3,7
6,618
6,153
6,087
5,873
6,618
5,873
Personnel (full-time equivalents)
105,132
106,789
108,648
109,991
105,132
109,991
Market capitalization
1,8
113,036
105,173
105,719
101,903
113,036
101,903
Total book value per share (USD)
1
28.17
27.35
26.80
26.13
28.17
26.13
Tangible book value per share (USD)
1
25.95
25.18
24.63
23.85
25.95
23.85
Credit-impaired lending assets as a percentage of total lending
assets, gross (%)
3
0.9
1.0
1.0
0.9
0.9
0.9
Cost of credit risk (bps)
3
10
7
15
6
8
6
1 Refer to the
“Share information and
earnings per share”
section of this
report for more
information.
2 Refer to the
“Targets,
capital guidance and
ambitions” section of
the UBS Group
Annual Report 2024,
available under “Annual reporting” at ubs.com/investors, and to the “Recent development” section of this report
for more information about our performance targets.
3 Refer to “Alternative performance measures”
in the appendix to this report for the relevant definition(s) and calculation method(s).
4 Refer to the “Group performance” section of this report for more information about underlying results.
5 Based on the Swiss
systemically relevant bank framework. Refer to the “Capital management” section
of this report for more information.
6 The disclosed ratios represent quarterly averages for the quarters presented and are
calculated
based on an average of 61 data points in the second quarter of 2025, 62 data points in the first quarter of 2025, 64 data points in the fourth quarter of 2024 and 61 data points in the second quarter of 2024. Refer
to the “Liquidity and funding management” section of this report for more information.
7 Consists of invested assets for Global Wealth Management, Asset Management (including invested assets from associates)
and Personal
& Corporate
Banking. Refer
to “Note 31
Invested assets
and net
new money”
in the
“Consolidated financial
statements” section
of the
UBS Group
Annual Report
2024, available
under “Annual
reporting” at ubs.com/investors, for more information.
8 The calculation of market capitalization reflects total shares issued multiplied by the
share price at the end of the period.
UBS Group second quarter 2025 report
| Recent developments
4
Recent developments
Management report
Integration of Credit Suisse
We
remain
on
track
to
substantially
complete
the
integration
of
Credit
Suisse
by
the
end
of
2026.
Our
focus
continues to be on client account migrations
and infrastructure decommissioning.
In the
second quarter
of 2025,
we successfully
completed the
first main
wave of
our Swiss
business migrations,
having now
migrated approximately
one-third of
the targeted
client accounts,
and we
still aim
to complete
the
Swiss booking center migrations by the end of
the first quarter of 2026.
We have
made substantial further
progress in
simplifying our legal
entity structure in
the US and
Europe,
having
merged Credit Suisse
Holdings (USA),
Inc. with UBS
Americas Inc, deregistered
Credit Suisse Securities
(USA) LLC as
a broker-dealer
and established
UBS Europe
SE as
the single
EU intermediate
parent undertaking
ahead of
schedule.
In the
second quarter of
2025, we realized
an additional USD 0.7bn
in gross
cost savings. Cumulative
gross cost
savings at the
end of the second
quarter of 2025
amounted to USD 9.1bn
compared with the
2022 combined cost
base
of
UBS
and
Credit
Suisse.
This
represents
around
70%
of
our
ambition
to
deliver
around
USD 13bn
in
annualized exit rate gross cost savings by the
end of 2026.
As of
30 June 2025,
our Non-core
and Legacy
business division
has delivered
a 62%
reduction in
risk-weighted
assets (RWA) since the second
quarter of 2023. We still aim
for Non-core and Legacy’s
credit and market risk RWA
to be below USD 8bn
by the end of 2025,
and we expect its
operating expenses, excluding
litigation, to be around
USD 1.6bn in 2025.
On 18
July 2025,
the High
Court of
England and
Wales approved
the transfer
of Credit
Suisse International’s
residual
business and related products to UBS
AG London Branch and UBS
Europe SE pursuant to Part
VII of the Financial
Services and Markets Act 2000. The transfer of the
relevant assets and liabilities is expected to occur over the
next
six months.
Regulatory and legal developments
Developments in Switzerland aimed at strengthening
financial stability
In
June
2025,
the Swiss
Federal Council
published
regulatory proposals
that aim
to
further strengthen
banking
stability in
Switzerland (the
Financial Stability
Proposals).
Proposed measures
to be
submitted to
the Swiss
Parliament
for
enactment
would
exclude
from
common
equity
tier 1
(CET1)
capital
investments
in
foreign
subsidiaries
of
systemically important
banks (SIBs),
include additional
requirements for
the recovery
and resolution
of SIBs,
add
measures to increase the potential for obtaining liquidity via the Swiss National
Bank (the SNB), introduce a Senior
Managers Regime for
banks,
and provide additional
powers for the
Swiss Financial Market
Supervisory Authority
(FINMA). Proposed
measures at
the
ordinance
level
would
exclude capitalized
software
and
deferred
tax
assets
(DTAs) on temporary differences from CET1 capital, add stricter requirements for prudential valuation
adjustments
(PVAs) of assets
and liabilities,
permit the mandatory
suspension of interest
payments for additional
tier 1 capital
instruments in the
event of a cumulative
loss over four
quarters, and introduce
measures that aim
to enable FINMA
and other authorities to better assess the
situation of banks in a liquidity crisis.
The Swiss Federal Council plans to start a public consultation in the fall of 2025 on the legislative amendments to
capital requirements related to foreign subsidiaries and has indicated it expects to submit its proposal to the Swiss
Parliament in the first half of 2026. Entry into force of these amendments is expected in 2028, at the earliest,
and
is expected to be phased
in over a period of at
least six to eight years. For
the remaining legislative amendments,
a
consultation draft
is expected
in the
first half
of 2026,
with the
Swiss Federal
Council’s submission
to the
Parliament
i
n the first half of 2027. The entry into force
of these amendments is expected in
2028 or 2029.
UBS Group second quarter 2025 report
| Recent developments
5
The measures
at the ordinance
level,
including the
capital treatment
of capitalized
software and DTAs
on temporary
differences, are in
public consultation until
September 2025, with
the ordinances expected
to enter into
force in
January 2027, at the earliest.
In addition, a consultation on amendments to the Liquidity Ordinance is expected to
begin in
the first
half of
- The
amendments to be
proposed are
expected to
set minimum
requirements for
maintaining borrowing capacity for emergency
liquidity assistance.
Based on financial information
published for the
first quarter of
2025 and given UBS AG’s
target CET1 capital ratio
of
between
12.5% and
13%, UBS AG
would
be
required
to
hold
additional estimated
CET1
capital of
around
USD 24bn on
a pro-forma
basis if
the recommendations
were to
be implemented
as proposed.
This includes
around
USD 23bn related
to the
full deduction
of UBS AG’s
investments in
foreign subsidiaries. These
pro-forma figures
reflect previously announced expected capital
repatriations of around USD 5bn.
The incremental CET1 capital of around
USD 24bn required at UBS AG would
result in a CET1 capital
ratio at the
UBS Group AG (consolidated)
level
of around
19%. At
Group
level, the
proposed measures
related to
DTAs on
temporary
differences,
capitalized
software
and
PVAs
would
eliminate
capital
recognition
for
these
items
in
a
manner misaligned with international
standards. This would reduce
the CET1 capital ratio for
the Group to around
17%, underrepresenting UBS’s capital strength.
The additional
capital of
USD 24bn would
be in
addition to
the previously
communicated incremental capital
of
around USD 18bn that
UBS will
have to hold
as a result
of the acquisition
of the Credit
Suisse Group in
order to
meet
existing
regulations.
This
includes
around
USD 9bn
to
remove
the
regulatory
concessions
granted
to
Credit Suisse and
around USD 9bn
to meet
the current
progressive requirements
due to
the increased leverage
ratio
denominator (LRD) and higher market share of the combined
business. The progressive requirements for LRD and
market share are subject to confirmation.
On this basis, UBS would be required to hold around
USD 42bn in additional CET1 capital in total.
Recent developments related to the implementation
of the final Basel III standards
In June
2025, the
European Commission
(the EC)
proposed to
delay the
implementation of
the Fundamental
Review
of the Trading Book (the FRTB) by another year,
to 1 January 2027. We expect that the overall impact on UBS
will
be limited.
In
July
2025,
the
UK
Prudential
Regulatory
Authority
published
for
consultation
proposals
to
delay
the
implementation of
the FRTB
internal models
approach from
1 January 2027
to 1 January
- The
FRTB regulation
for standardized and
advanced standardized approaches will
continue to apply
from 1 January 2027.
With UBS’s
entities not
being subject
to the
corresponding UK
regulation, we
expect that
the overall
impact on
UBS will
be
limited.
In
Switzerland, the
FRTB became
effective on
1 January 2025,
together with
all other
requirements of
the final
Basel III regulation.
The Swiss Federal Council pauses the revision
of the Ordinance on Climate Disclosures
In June 2025,
the Swiss Federal
Council decided to
pause the revision
of the Ordinance
on Climate Disclosures
until
the approval of the ongoing revision of the overarching legislation on sustainability
reporting in the Swiss Code of
Obligations or until 1 January 2027, at the
latest.
Recent developments related to EU sustainability
reporting
In July
2025, Germany’s
Federal Ministry
of Justice
and Consumer
Protection published
a new
draft bill
to implement
the EU
Corporate Sustainability
Reporting Directive
(the CSRD).
If enacted,
the draft
bill would
make CSRD
reporting
mandatory for the 2025 financial year for large companies
that are subject to wave one reporting requirements
of
the CSRD, which would include UBS AG.
In July 2025, the EC adopted amendments to the European Sustainability Reporting Standards (the ESRS) to allow
wave one
companies to
omit certain
of the
ESRS disclosures
for the
2025 and
2026 financial
years. Also
in July
2025, the
EC published
proposed measures
to simplify
the disclosure
requirements under
Art. 8 of
the EU
Taxonomy
Regulation. These
actions are
part of
a broader
initiative by
the EU
to simplify
its sustainability
standards and
to
reduce
the
reporting
burden
on
companies.
We
are
currently
assessing
the
impact
of
these
measures
on
the
d
isclosures of UBS AG and UBS Europe SE.
UBS Group second quarter 2025 report
| Recent developments
6
Other developments
Resolution of legacy Credit Suisse cross-border
matter
On 5 May 2025, Credit Suisse
Services AG entered into
an agreement with the US
Department of Justice (the
DOJ)
to settle a
long-running tax-related investigation into Credit
Suisse’s implementation of its
2014 plea agreement,
relating
to
its
legacy
cross-border
business
with
US
taxpayers
booked
in
Switzerland, which
began
before
UBS
acquired the Credit Suisse
Group. Credit Suisse
Services AG pleaded guilty
to one count
of conspiracy to aid
and
assist in the
preparation of
false income tax
returns. Credit Suisse
Services AG also
contemporaneously entered
into
a non-prosecution
agreement regarding
US taxpayers
booked in the
legacy Credit
Suisse Singapore
booking center.
In the
second quarter
of 2025,
we paid
USD 511m
with respect
to the
aforementioned resolutions
and we
recorded
in
our
Non-core
and
Legacy
division
a
net
release
of
USD 427m
of
provisions
and
contingent
liabilities,
which
included a provision for the estimated costs of UBS’s ongoing obligations with the DOJ in respect of legacy Credit
Suisse accounts.
›
Refer to “Note 14 Provisions and contingent liabilities” in the “Consolidated financial statements” section of this
report for more information
Sale of
O’Connor
business
In
May
2025,
UBS
Asset
Management
(Americas)
LLC
entered
into
an
agreement
to
sell
its
O’Connor
single-
manager hedge fund, private credit and commodities platform to Cantor Fitzgerald. The sale includes O’Connor’s
six investment strategies with around USD 11bn in assets under management and,
as part of the agreement, UBS
and Cantor Fitzgerald
will establish a
long-term commercial arrangement. The
transaction is expected
to close in
stages,
beginning
in
the
fourth
quarter
of
2025,
subject
to
regulatory
approvals
and
other
customary
closing
conditions. UBS does not expect to recognize
a material profit or loss upon completion
of the transaction.
Ownership increase in UBS Securities China
In the second quarter of 2025, we increased our stake
in UBS Securities China from 67% to 100%. The closing
of
the transaction did not affect profit or loss
and there was no material effect on our
CET1 capital.
Capital returns and targets
On 1 July 2025,
we launched a
new program to
repurchase up to
USD 2bn of shares.
As previously announced,
we
plan to complete the repurchase
of up to USD 2bn of shares
in the second half of 2025.
We will communicate our
2026
capital
returns
ambitions
with
our
fourth-quarter
and
full-year
financial
results
for
2025.
Our
share
repurchases will be subject
to maintaining our CET1
capital ratio target of
around 14% and achieving
our financial
targets. The program we
launched in April 2024
was closed in May
2025 after completing the USD 2bn
of share
repurchases as planned.
In the first half of 2025, we repurchased a total
of USD 1bn of shares.
›
Refer to the “Share information and earnings per share” section of this report for more information
We
maintain
our
target
of
achieving
an
underlying
return
on
CET1
capital
of
around
15%
and
an
underlying
cost / income ratio of less than 70%
by the end of 2026 (both
on an exit rate basis). We
will provide an update on
our longer-term returns targets when there is more clarity on the timing of
potential changes and when the likely
final outcome of the Financial Stability Proposals
becomes more visible.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items
7
UBS Group performance,
business divisions and Group Items
Management report
Our businesses
We report
five business
divisions, each
of which
qualifies as
an operating
segment pursuant
to IFRS
Accounting
Standards: Global Wealth Management,
Personal & Corporate Banking,
Asset Management, the Investment
Bank,
and Non-core and Legacy. Non-core and Legacy consists of positions and businesses not aligned with our strategy
and policies.
Our Group
functions are
support and
control functions
that provide
services to
the Group.
Virtually all
costs incurred
by our Group functions are
allocated to the business divisions,
leaving a residual amount that
we refer to as Group
Items in our segment reporting.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Group performance
8
Group performance
Income statement
For the quarter ended
% change from
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Net interest income
1,965
1,629
1,535
21
28
3,595
3,475
Other net income from financial instruments measured
at fair value through profit or loss
3,408
3,937
3,684
(13)
(7)
7,346
7,866
Net fee and commission income
6,708
6,777
6,531
(1)
3
13,485
13,023
Other income
30
213
154
(86)
(80)
243
278
Total revenues
12,112
12,557
11,904
(4)
2
24,668
24,642
Credit loss expense / (release)
163
100
95
63
72
263
201
Personnel expenses
6,976
7,032
7,119
(1)
(2)
14,008
14,068
General and administrative expenses
1,881
2,431
2,318
(23)
(19)
4,312
4,731
Depreciation, amortization and impairment of non-financial
assets
898
861
903
4
(1)
1,759
1,798
Operating expenses
9,756
10,324
10,340
(6)
(6)
20,080
20,597
Operating profit / (loss) before tax
2,193
2,132
1,469
3
49
4,325
3,844
Tax expense / (benefit)
(209)
430
293
221
905
Net profit / (loss)
2,402
1,702
1,175
41
104
4,105
2,939
Net profit / (loss) attributable to non-controlling interests
7
10
40
(30)
(81)
18
48
Net profit / (loss) attributable to shareholders
2,395
1,692
1,136
42
111
4,087
2,890
Comprehensive income
Total comprehensive income
5,357
3,345
1,614
60
232
8,703
1,369
Total comprehensive income attributable to non-controlling interests
22
26
18
(15)
21
48
13
Total comprehensive income attributable to shareholders
5,335
3,319
1,596
61
234
8,655
1,356
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Group performance
9
Selected financial information of the business divisions and Group Items
For the quarter ended 30.6.25
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
6,300
2,336
772
2,966
(82)
(180)
12,112
of which: PPA effects and other integration items
1
153
274
152
1
17
596
of which: loss related to an investment in an associate
(8)
(23)
(31)
Total revenues (underlying)
6,156
2,085
772
2,815
(83)
(198)
11,546
Credit loss expense / (release)
3
114
0
48
(2)
0
163
Operating expenses as reported
5,093
1,528
618
2,361
170
(13)
9,756
of which: integration-related expenses and PPA effects
2
383
240
63
121
252
(4)
1,055
Operating expenses (underlying)
4,710
1,288
555
2,241
(83)
(10)
8,701
Operating profit / (loss) before tax as reported
1,204
695
153
557
(250)
(167)
2,193
Operating profit / (loss) before tax (underlying)
1,443
684
216
526
1
(188)
2,683
For the quarter ended 31.3.25
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
6,422
2,211
741
3,183
284
(284)
12,557
of which: PPA effects and other integration items
1
165
241
138
30
574
of which: gain related to an investment in an associate
4
11
14
of which: items related to the Swisscard transactions
3
64
64
Total revenues (underlying)
6,253
1,895
741
3,045
284
(314)
11,904
Credit loss expense / (release)
6
53
0
35
7
(1)
100
Operating expenses as reported
5,057
1,551
606
2,427
669
15
10,324
of which: integration-related expenses and PPA effects
2
355
192
73
112
191
3
927
of which: items related to the Swisscard transactions
4
180
180
Operating expenses (underlying)
4,702
1,179
533
2,314
477
12
9,218
Operating profit / (loss) before tax as reported
1,359
607
135
722
(391)
(299)
2,132
Operating profit / (loss) before tax (underlying)
1,545
663
208
696
(200)
(326)
2,586
For the quarter ended 30.6.24
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
6,053
2,272
768
2,803
401
(392)
11,904
of which: PPA effects and other integration items
1
233
246
310
(8)
780
Total revenues (underlying)
5,820
2,026
768
2,493
401
(384)
11,124
Credit loss expense / (release)
(1)
103
0
(6)
(1)
0
95
Operating expenses as reported
5,183
1,396
638
2,332
807
(15)
10,340
of which: integration-related expenses and PPA effects
2
523
182
98
245
325
(2)
1,372
Operating expenses (underlying)
4,660
1,213
540
2,087
481
(13)
8,969
Operating profit / (loss) before tax as reported
871
773
130
477
(405)
(377)
1,469
Operating profit / (loss) before tax (underlying)
1,161
710
228
412
(80)
(371)
2,060
1 Includes accretion of PPA
adjustments on financial instruments and other
PPA effects, as well
as temporary and incremental items directly
related to the integration.
2 Includes temporary, incremental
operating
expenses directly related
to the integration,
as well as
amortization of intangibles
resulting from the
acquisition of the
Credit Suisse Group.
3 Represents the
gain related to
UBS’s share
of income recorded
by
Swisscard for the sale of the Credit Suisse card portfolios to UBS.
4 Represents the expense related to the payment to Swisscard for the sale of the Credit Suisse card portfolios to UBS.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Group performance
10
Selected financial information of the business divisions and Group Items (continued)
Year-to-date 30.6.25
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
12,722
4,547
1,513
6,149
202
(465)
24,668
of which: PPA effects and other integration items
1
318
514
290
1
47
1,170
of which: gain / (loss) related to an investment in an associate
(5)
(12)
(16)
of which: items related to the Swisscard transactions
2
64
64
Total revenues (underlying)
12,408
3,980
1,513
5,860
201
(512)
23,450
Credit loss expense / (release)
9
167
0
83
6
(1)
263
Operating expenses as reported
10,150
3,078
1,224
4,788
838
2
20,080
of which: integration-related expenses and PPA effects
3
739
432
135
233
444
(1)
1,982
of which: items related to the Swisscard transactions
4
180
180
Operating expenses (underlying)
9,411
2,467
1,088
4,555
395
2
17,918
Operating profit / (loss) before tax as reported
2,563
1,302
289
1,279
(642)
(465)
4,325
Operating profit / (loss) before tax (underlying)
2,988
1,347
424
1,222
(199)
(513)
5,269
Year-to-date 30.6.24
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
12,196
4,695
1,543
5,554
1,402
(747)
24,642
of which: PPA effects and other integration items
1
467
502
603
(12)
1,559
Total revenues (underlying)
11,729
4,193
1,543
4,951
1,402
(735)
23,083
Credit loss expense / (release)
(4)
146
0
26
35
(2)
201
Operating expenses as reported
10,228
2,800
1,303
4,496
1,818
(48)
20,597
of which: integration-related expenses and PPA effects
3
928
342
169
387
568
(1)
2,392
Operating expenses (underlying)
9,300
2,458
1,134
4,109
1,250
(47)
18,205
Operating profit / (loss) before tax as reported
1,972
1,748
241
1,032
(451)
(698)
3,844
Operating profit / (loss) before tax (underlying)
2,433
1,588
410
816
117
(687)
4,677
1 Includes accretion of PPA adjustments
on financial instruments and other PPA
effects, as well as temporary and
incremental items directly related to the integration.
2 Represents the gain related to UBS’s
share
of income recorded by Swisscard for the sale of the Credit
Suisse card portfolios to UBS.
3 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of intangibles
resulting from the acquisition of the Credit Suisse Group.
4 Represents the expense related to the payment to Swisscard for the sale of the Credit Suisse card portfolios to UBS.
Integration-related expenses, by business division and Group Items
For the quarter ended
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Global Wealth Management
381
353
536
734
968
Personal & Corporate Banking
212
166
159
379
299
Asset Management
63
73
98
135
169
Investment Bank
121
112
245
233
387
Non-core and Legacy
251
191
325
443
568
Group Items
4
(2)
8
2
9
Total integration-related expenses
1,032
894
1,370
1,925
2,399
of which: total revenues
6
(5)
26
1
62
of which: operating expenses
1,025
899
1,344
1,924
2,336
of which: personnel expenses
619
559
825
1,178
1,381
of which: general and administrative expenses
313
279
426
592
781
of which: depreciation, amortization and impairment of non-financial
assets
93
60
93
153
174
Underlying results
In addition to
reporting our
results in accordance
with IFRS Accounting
Standards, we
report underlying results
that
exclude items of profit or loss that management
believes are not representative of
the underlying performance.
In
the
second
quarter
of
2025,
underlying
revenues excluded
purchase
price
allocation
(PPA)
effects
and
other
integration items. PPA effects
mainly consisted of PPA
adjustments on financial
instruments measured at
amortized
cost, including
off-balance sheet
positions, arising
from the
acquisition of
the Credit
Suisse Group.
Accretion of
PPA
adjustments on financial
instruments is accelerated
when the related
financial instrument is
derecognized before
its contractual maturity. No adjustment is made for accretion of PPA on financial instruments within Non-core and
Legacy, due to the nature
of its business model.
Underlying revenues also excluded
a loss relating to an investment
in an associate.
In
the
second
quarter
of
2025,
underlying
expenses
excluded
integration-related expenses
that
are
temporary,
incremental and directly
related to the
integration of Credit
Suisse into
UBS, including costs
of internal
staff and
contractors
substantially
dedicated
to
integration
activities,
retention
awards,
redundancy
costs,
incremental
expenses from
the shortening
of useful lives
of property,
equipment and software,
and impairment charges
relating
to
these
assets.
Classification
as
integration-related
expenses
does
not
affect
the
timing
of
recognition
and
measurement of those expenses or the presentation
thereof in the income statement.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Group performance
11
Results: 2Q25 vs 2Q24
Reported operating
profit before
tax increased
by USD 724m,
or 49%,
to USD 2,193m, reflecting
an increase
in
total
revenues
and
lower
operating
expenses,
partly
offset
by
higher
net
credit
loss
expenses.
Total
revenues
increased by USD 208m, or 2%, to USD 12,112m, which included an increase from foreign currency
effects and a
decrease
of USD
184m in
accretion impacts
resulting from
PPA
adjustments on
financial
instruments and
other
integration items. The increase in total revenues was
driven by increases of USD 177m in net
fee and commission
income and
USD 155m in
combined net
interest income
and other
net income
from financial
instruments measured
at fair
value
through profit
or loss,
partly
offset by
a USD 124m
decrease in
other income.
Operating expenses
decreased by USD 584m, or 6%, to USD 9,756m, which included an
increase from foreign currency effects and a
USD 319m decrease in integration-related expenses.
The overall decrease in operating expenses was
mainly driven
by
USD 437m
lower
general
and
administrative
expenses,
a
USD 143m
decrease
in
personnel
expenses
and
a
USD 5m decrease
in depreciation,
amortization and
impairment of
non-financial assets.
Net credit
loss expenses
were USD 163m, compared with USD 95m
in the second quarter of 2024.
Underlying results 2Q25 vs 2Q24
Underlying revenues
for the
second quarter
of 2025
excluded PPA
effects and
other integration
items of
USD 596m
and a
USD 31m loss
relating to
an investment
in an
associate.
Underlying operating
expenses excluded
USD 1,055m
of integration-related expenses and PPA effects.
On an underlying basis, profit before tax increased by USD 623m
to USD 2,683m,
reflecting a USD 422m increase
in total revenues
and a USD
268m decrease
in operating
expenses,
partly offset
by a USD
68m increase
in net credit
loss expenses.
Total revenues: 2Q25 vs 2Q24
Net interest income and other net income
from financial instruments measured at
fair value through profit or loss
Total combined
net interest
income and
other net
income from
financial instruments
measured at
fair value
through
profit or
loss increased
by USD 155m
to USD 5,373m
and included
a decrease
of USD 51m
in accretion
impacts
resulting from PPA adjustments on financial
instruments and other PPA effects.
Global
Wealth
Management revenues
decreased
by
USD 65m
to
USD 2,167m, which
included
USD 91m lower
accretion of PPA
adjustments on
financial instruments
and other PPA
effects. Excluding
the aforementioned
effects,
net
interest
income
decreased,
mainly
driven
by
lower loan
revenues, reflecting
margin
contraction, and
lower
deposit revenues
due to
lower central
bank interest
rates,
partly offset
by the
effect of
higher deposit
volumes,
positive foreign currency effects
and balance sheet optimization measures.
In addition,
trading revenues increased,
mainly reflecting higher levels of client activity.
Personal & Corporate
Banking revenues increased by
USD 21m to USD 1,585m, which
included USD 31m higher
accretion of
PPA adjustments on
financial instruments and
other PPA
effects, as
well as
positive foreign
currency
effects. Excluding the aforementioned effects, net interest income decreased, mainly driven by lower central bank
interest rates
affecting deposit
revenues,
partly mitigated by
pricing measures, lower
liquidity and
funding costs,
and higher loan revenues.
Investment Bank revenues increased by USD 354m to USD 1,882m, including a USD 14m decrease in accretion of
PPA
adjustments
on
financial
instruments
and
other
PPA
effects.
The
overall
growth
was
mainly
due
to
higher
Derivatives & Solutions revenues, mostly driven
by Foreign Exchange,
Rates and Equity Derivatives, due to elevated
volatility and higher levels of client
activity. In addition, there were higher
revenues in Financing, with increases in
all
products, led
by Prime
Brokerage, supported
by higher
client balances.
These increases
were partly
offset by
lower revenues in Global Banking, largely driven
by a contraction in Leveraged Capital Markets revenues.
Non-core and Legacy revenues
were negative USD 92m, compared with positive USD 310m in the second quarter
of 2024, mainly due
to lower net gains
from position exits
and lower net interest
income from securitized
products
and credit products, partly offset by lower
liquidity and funding costs, as a result of
a smaller portfolio.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Group performance
12
Revenues in Group Items were
negative USD 168m, compared with negative USD 417m
in the second quarter of
- The
change in
revenues was
mainly driven
by mark-to-market
gains from
Group hedging
and own
debt,
including hedge
accounting ineffectiveness,
compared to
losses in
the second
quarter of
- Revenues
in the
second quarter
of 2025
included offsetting
impacts on
portfolio-level economic
hedges and
mark-to-market effects
on own credit.
›
Refer to the relevant business division commentary in this section for more information about business-division-
specific revenues
›
Refer to “Note 3 Net interest income” in the “Consolidated financial statements” section of this report for more
information about net interest income
Net interest income and other net income from financial instruments measured at fair value through profit or loss
For the quarter ended
% change from
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Net interest income from financial instruments measured
at amortized cost and fair value
through other comprehensive income
466
33
2
498
357
Net interest income from financial instruments measured
at fair value through profit or
loss and other
1,500
1,597
1,533
(6)
(2)
3,096
3,118
Other net income from financial instruments measured
at fair value through profit or loss
3,408
3,937
3,684
(13)
(7)
7,346
7,866
Total
5,373
5,567
5,218
(3)
3
10,940
11,341
Global Wealth Management
2,167
2,195
2,232
(1)
(3)
4,362
4,587
of which: net interest income
1,705
1,708
1,825
0
(7)
3,413
3,698
of which: transaction-based income from foreign exchange and other
intermediary
activity
1
462
487
407
(5)
13
949
889
Personal & Corporate Banking
1,585
1,428
1,564
11
1
3,013
3,269
of which: net interest income
1,367
1,239
1,350
10
1
2,605
2,859
of which: transaction-based income from foreign exchange and other
intermediary
activity
1
218
189
214
15
2
407
410
Asset Management
0
(5)
1
(69)
(5)
0
Investment Bank
1,882
2,047
1,528
(8)
23
3,928
3,090
Non-core and Legacy
(92)
171
310
79
1,218
Group Items
(168)
(269)
(417)
(38)
(60)
(437)
(823)
1 Mainly includes spread-related income in connection with client-driven transactions, foreign currency
translation effects and income and expenses from precious metals, which are included in the income statement
line Other net income from financial instruments measured
at fair value through profit or loss.
The amounts reported on this line
are one component of Transaction
-based income in the management discussion and
analysis in the “Global Wealth Management” and “Personal & Corporate Banking” sections
of this report.
Net fee and commission income
Net fee and commission income increased
by USD 177m
to USD 6,708m
and included a decrease of USD
152m
in
accretion of PPA adjustments on financial instruments and other PPA effects, which was reflected in other fee and
commission income, predominantly in Global Banking
in the Investment Bank.
Investment fund
fees increased
by USD 200m
to USD 1,601m,
mainly in
Global Wealth
Management and
Asset
Management.
In
addition,
fees
for
portfolio
management
and
related
services
increased
by
USD 94m
to
USD 3,165m, predominantly in
Global Wealth
Management.
The increases
in Global
Wealth Management
were
mainly due to
higher average levels of
fee-generating assets reflecting positive market
performance and net new
fee-generating asset
inflows.
The increase
in Asset
Management was
largely driven
by positive
foreign currency
effects and positive market performance,
partly offset by continued margin compression.
Net brokerage fees increased by
USD 150m to USD 1,188m, due to
higher levels of client activity in
Global Wealth
Management,
and in Cash Equities in Execution Services
in the Investment Bank,
due to higher volumes.
M&A and corporate finance fees decreased
by USD 47m to USD 225m, mainly reflecting lower
advisory revenues
in our Global Banking business within the
Investment Bank.
›
Refer to “Note 4 Net fee and commission income” in the “Consolidated financial statements” section of this report
for more information
Other income
Other income
was USD 30m,
compared with
USD 154m in
the second
quarter of
2024.
The second
quarter of
2025 included a
USD 31m
loss relating to an
investment in an
associate.
In addition,
there were losses
of USD 27m
recognized on repurchases of UBS’s
own debt instruments,
compared with gains of USD 4m
in the second quarter
of 2024.
The second
quarter of
2024 included
a USD 28m
net gain
in Asset
Management from
the sale
of our
Brazilian real estate fund management business.
›
Refer to “Note 5 Other income” in the “Consolidated financial statements” section of this report for more
information
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Group performance
13
Credit loss expense / release: 2Q25 vs 2Q24
Total net credit loss expenses in the second quarter of 2025 were USD 163m, reflecting net expenses of USD 38m
related
to
performing
positions
and
net
expenses
of
USD 125m
on
credit-impaired
positions.
Net
credit
loss
expenses were USD 95m
in the second quarter of 2024.
›
Refer to “Note 8 Expected credit loss measurement” in the “Consolidated financial statements” section of this
report for more information
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Purchased
Total
For the quarter ended 30.6.25
Global Wealth Management
(3)
6
0
3
Personal & Corporate Banking
22
91
1
114
Asset Management
0
0
0
0
Investment Bank
19
29
0
48
Non-core and Legacy
0
0
(2)
(2)
Group Items
0
0
0
0
Total
38
126
(1)
163
For the quarter ended 31.3.25
Global Wealth Management
(7)
13
(1)
6
Personal & Corporate Banking
(8)
61
0
53
Asset Management
0
0
0
0
Investment Bank
(5)
40
0
35
Non-core and Legacy
0
(1)
8
7
Group Items
(1)
0
0
(1)
Total
(21)
113
8
100
For the quarter ended 30.6.24
Global Wealth Management
(13)
12
0
(1)
Personal & Corporate Banking
(15)
132
(14)
103
Asset Management
0
0
0
0
Investment Bank
7
(14)
1
(6)
Non-core and Legacy
(1)
3
(2)
(1)
Group Items
0
0
0
0
Total
(22)
132
(15)
95
Operating expenses: 2Q25 vs 2Q24
Operating expenses
For the quarter ended
% change from
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Personnel expenses
6,976
7,032
7,119
(1)
(2)
14,008
14,068
of which: salaries and variable compensation
5,900
5,968
6,058
(1)
(3)
11,868
11,922
of which: variable compensation – financial advisors
1
1,335
1,409
1,291
(5)
3
2,744
2,558
General and administrative expenses
1,881
2,431
2,318
(23)
(19)
4,312
4,731
of which: net expenses / (releases) for litigation, regulatory
and similar matters
(412)
114
(153)
169
(298)
(158)
Depreciation, amortization and impairment of non-financial
assets
898
861
903
4
(1)
1,759
1,798
Total operating expenses
9,756
10,324
10,340
(6)
(6)
20,080
20,597
1 Financial advisor compensation consists of cash
compensation, determined using a formulaic
approach based on production, and
deferred awards. It also
includes expenses related to compensation commitments
with financial advisors entered into at the time of recruitment that are subject to vesting requirements.
Personnel expenses
Personnel expenses
decreased by
USD 143m to
USD 6,976m, including
a USD 206m
decrease in
integration-related
expenses. The overall decrease
was mainly as a result of
lower amortization of awards
granted in prior periods and
lower accruals for performance awards. In addition, salary expenses were lower, reflecting the impact of a smaller
workforce, largely offset by foreign currency effects. These decreases were
partly offset by a USD 44m increase in
financial advisor compensation resulting from
higher compensable revenues.
›
Refer to “Note 6 Personnel expenses” in the “Consolidated financial statements” section of this report for more
information
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Group performance
14
General and administrative expenses
General and administrative expenses decreased by USD 437m to USD 1,881m, including a USD 113m decrease in
integration-related expenses. The overall decrease was mainly due to
USD 259m
higher net releases for litigation,
regulatory and
similar matters.
In addition, there
were decreases
of USD 82m
in outsourcing
costs, mainly
reflecting
lower IT
services costs,
as well
as USD 77m
lower consulting,
legal and
audit fees,
largely attributable
to the
decrease
in integration-related expenses.
›
Refer to “Note 7 General and administrative expenses” in the “Consolidated financial statements” section of this
report for more information
›
Refer to “Note 14 Provisions and contingent liabilities” in the “Consolidated financial statements” section of this
report for more information about litigation, regulatory and similar matters
›
Refer to the “Regulatory and legal developments” and “Risk factors” sections of the UBS Group Annual Report
2024, available under “Annual reporting” at
ubs.com/investors
, for more information about litigation, regulatory
and similar matters
Tax: 2Q25 vs 2Q24
The
Group had
a
net income
tax benefit
of USD
209m in
the second
quarter of
2025,
representing a
negative
effective tax rate
of 9.5%, compared
with a tax
expense of
USD 293m in the
second quarter
of 2024 and
a positive
effective tax rate of 20.0%.
This reflected a net deferred tax benefit of USD 577m, which included a USD 663m benefit related
to integration-
related tax planning,
primarily driven by
the recognition of
deferred tax assets
(DTAs) in respect
of tax losses carried
forward and deductible temporary differences resulting from the
final consolidation of legal entities in
the United
States. These
benefits were
partly offset
by a
net deferred
tax expense
of USD 86m
that primarily
related to
the
amortization
of
DTAs
previously
recognized
in
relation
to
tax
losses
carried
forward
and
deductible
temporary
differences.
The current tax expense was USD 368m, which primarily related to the taxable profits of UBS Switzerland AG and
other entities.
Excluding any
potential effects
from the
remeasurement
of deferred
tax assets
in connection
with the
2025 business
planning
process
and
any
material
jurisdictional statutory
tax
rate
changes
that
could
be
enacted,
the
Group’s
effective tax
rate for
the second
half of
2025 is
expected to
be higher
than the
structural rate
of 23%.
The projected
second-half rate
is elevated
because the
Group’s net profit
is expected
to include
certain restructuring costs
and
other expenses
resulting from
the ongoing
integration of
the legacy
operations of
Credit Suisse
into the
UBS Group,
which are not expected
to result in a
tax benefit because
such costs and expenses
cannot be offset
against relevant
Group profits.
Total comprehensive income attributable
to shareholders
In
the
second
quarter
of
2025,
total
comprehensive
income
attributable
to
shareholders
was
USD 5,335m,
reflecting a net profit of USD 2,395m and other
comprehensive income (OCI), net of
tax, of USD 2,941m.
Foreign currency
translation OCI
was USD 2,536m,
mainly resulting
from the
US dollar
weakening against
the Swiss
franc and the euro.
OCI
related
to
cash
flow
hedges
was
USD 562m,
mainly
reflecting
net
unrealized
gains
on
US
dollar
hedging
derivatives resulting
from decreases
in the
relevant US
dollar long-term
interest rates
and net
losses on
hedging
instruments that were reclassified from OCI
to the income statement.
OCI related to own credit on financial
liabilities designated at fair value was negative USD 124m, primarily due
to
a tightening of our own credit spreads.
›
Refer to “Statement of comprehensive income” in the “Consolidated financial statements” section of this report for
more information
›
Refer to “Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital” in
the “Capital management” section of this report for more information about the effects of OCI on common equity
tier 1 capital
›
Refer to “Note 21 Fair value measurement” in the “Consolidated financial statements” section of the UBS Group
Annual Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more information about own
c
redit on financial liabilities designated at fair value
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Group performance
15
Sensitivity to interest rate movements
As of 30 June
2025, it is
estimated that
a parallel shift
in yield curves
by +100
basis points could
lead to a
combined
increase in annual
net interest income
from our
banking book of
approximately USD 1.3bn in
the first year
after
such a shift. Of
this increase, approximately USD 0.7bn, USD 0.4bn
and USD 0.1bn would result from
changes in
Swiss franc, US dollar and euro interest rates,
respectively.
A parallel shift in yield
curves by –100 basis points
could lead to a combined
increase in annual net
interest income
of approximately
USD 0.9bn. Of
this increase,
approximately USD 1.5bn
would result
from changes
in the
Swiss
franc interest
rate, driven
by both
contractual and
assumed flooring
benefits under
negative interest
rates. US
dollar
and euro interest rate changes
would lead to an offsetting decrease of USD
0.4bn and USD 0.1bn, respectively.
These estimates do not represent net interest income forecasts, as they are based
on a hypothetical scenario of an
immediate change in interest rates,
equal across all currencies
and relative to implied
forward rates as of
30 June
2025 applied to our banking
book. These estimates further assume no
change to balance sheet size
and product
mix, stable foreign exchange rates, and no specific
management action.
›
Refer to the “Risk management and control” section of this report for information about interest rate risk in the
banking book
Key figures and personnel
Below is
an overview
of selected
key figures
of the
Group. For
further information
about key
figures related
to
capital management, refer to the “Capital management”
section of this report.
Cost / income ratio: 2Q25 vs 2Q24
The cost / income ratio
was 80.5%, compared
with 86.9%, and
on an underlying
basis the cost / income
ratio was
75.4%, compared with 80.6%, both as a result
of higher total revenues and lower operating
expenses.
Personnel: 2Q25 vs 1Q25
The
number
of
internal
and
external
personnel
employed
was
approximately
123,526
(workforce
count)
as
of
30 June 2025,
a net
decrease of
2,551 compared
with 31 March
- The
number of
internal personnel
employed
as of 30 June 2025
was 105,132 (full-time equivalents), a net
decrease of 1,657 compared
with 31 March 2025.
The number of external
staff was approximately 18,393
(workforce count) as of
30 June 2025, a net
decrease of
approximately 894 compared with 31 March 2025.
Equity, CET1 capital and returns
As of or for the quarter ended
Year-to-date
USD m, except where indicated
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Net profit
Net profit / (loss) attributable to shareholders
2,395
1,692
1,136
4,087
2,890
Equity
Equity attributable to shareholders
89,277
87,185
83,683
89,277
83,683
less: goodwill and intangible assets
7,023
6,909
7,313
7,023
7,313
Tangible equity attributable to shareholders
82,254
80,276
76,370
82,254
76,370
less: other CET1 adjustments
9,544
11,123
267
9,544
267
CET1 capital
72,709
69,152
76,104
72,709
76,104
Returns
Return on equity (%)
10.9
7.9
5.4
9.4
6.8
Return on tangible equity (%)
11.8
8.5
5.9
10.2
7.5
Underlying return on tangible equity (%)
13.4
10.0
8.4
11.7
9.2
Return on CET1 capital (%)
13.5
9.6
5.9
11.6
7.5
Underlying return on CET1 capital (%)
15.3
11.3
8.4
13.3
9.2
Common equity tier 1 capital: 2Q25 vs 1Q25
During
the
second
quarter
of
2025,
our
common
equity
tier 1
(CET1)
capital
increased
by
USD 3.6bn
to
USD 72.7bn,
mainly
driven
by
operating
profit
before
tax
of
USD 2.2bn,
foreign
currency
translation
gains
of
USD 2.3bn
and
an
increase
in
eligible
DTAs
on
temporary
differences
of
USD 0.4bn,
partly
offset
by
dividend
accruals of USD 0.8bn
and current tax expenses
of USD 0.4bn. Share
repurchases of USD 0.5bn made
under our
2024 share
repurchase program in
the second quarter
of 2025
did not
affect our CET1
capital position,
as there
w
as an equal reduction in the capital reserve for
expected future share repurchases.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Group performance
16
Return on common equity tier 1 capital: 2Q25
vs 2Q24
The annualized return
on CET1
capital was 13.5%,
compared with 5.9%.
On an
underlying basis, the
return on
CET1 capital
was 15.3%,
compared with
8.4%. These
increases were
driven by
an increase
in net
profit attributable
to shareholders and a decrease in average
CET1 capital.
Risk-weighted assets: 2Q25 vs 1Q25
During
the second
quarter of
2025,
RWA increased
by
USD 21.2bn to
USD 504.5bn, driven
by
an
USD 18.6bn
increase in currency effects and a USD 3.0bn increase resulting from asset size and
other movements, partly offset
by a USD 0.3bn decrease resulting from model
updates and methodology changes.
Common equity tier 1 capital ratio: 2Q25 vs 1Q25
Our CET1
capital ratio
increased to
14.4% from
14.3%, reflecting
a USD 3.6bn
increase in
CET1 capital,
partly
offset by a USD 21.2bn increase in RWA.
Leverage ratio denominator: 2Q25 vs 1Q25
The
leverage
ratio
denominator
(the
LRD)
increased
by
USD 96.5bn
to
USD 1,658.1bn,
mainly
due
to
currency
effects of USD 88.1bn and asset size and other
movements of USD 8.4bn.
Common equity tier 1 leverage ratio: 2Q25
vs 1Q25
Our CET1 leverage
ratio was stable
at 4.4%, reflecting
a USD 96.5bn increase in
the LRD, offset
by a USD 3.6bn
increase in CET1 capital.
Results 6M25 vs 6M24
Operating profit
before tax
increased by
USD 481m, or
13%, to
USD 4,325m. Total
revenues increased
by USD 26m
and included
a decrease
of USD 389m
in accretion
impacts resulting
from PPA adjustments
on financial instruments
and other
PPA effects.
Operating expenses
decreased by
USD 517m, including
a USD 412m
decrease in
integration-
related expenses.
Net credit
loss expenses
were USD 263m,
compared with
USD 201m in
the first
six months
of
2024.
Total combined
net interest
income and
other net
income from
financial instruments
measured at
fair value
through
profit or loss decreased
by USD 401m to USD 10,940m
and included a decrease
of USD 168m in accretion
impacts
resulting from
PPA adjustments
on financial
instruments and
other PPA
effects,
largely reflected
in a
USD 189m
decrease in
net interest
income in
Global Wealth
Management.
The overall
decrease of
USD 225m in
Global Wealth
Management revenues was
also driven
by lower loan
revenues, reflecting margin
contraction, and lower
deposit
revenues
due
to
lower
central
bank
interest
rates,
partly
offset
by
the
effects
of
balance
sheet
optimization
measures,
higher deposit
volumes and
positive foreign
currency effects.
Personal &
Corporate Banking
revenues
decreased
by
USD 256m,
mainly
driven
by
lower
central
bank
interest
rates
affecting
deposit
revenues,
partly
mitigated by
pricing measures.
Investment Bank
revenues increased
by USD 838m,
mainly due
to an
increase in
Derivatives &
Solutions revenues
that resulted
from increased
volatility and
higher levels
of client
activity. In
addition,
there were
higher revenues
in Financing,
driven by
higher client
balances. These
increases were
partly offset
by
lower revenues in Global Banking,
which mainly resulted from lower volumes in Leveraged Capital
Markets.
Non-
core and Legacy revenues decreased by USD 1,139m, mainly due to lower net gains from position exits and lower
net interest income
from securitized
products and
credit products,
partly offset
by lower
liquidity and funding
costs.
Revenues in the first six
months of 2024 also included
a net gain of USD 272m from
the conclusion of agreements
with Apollo relating
to the
former Credit Suisse
securitized products
group. Revenues
in Group Items
were negative
USD 437m, compared
with negative
USD 823m
in the
first six
months of
2024, and
included lower
mark-to-market
losses from Group hedging and own debt, including
hedge accounting ineffectiveness, within
Group Treasury.
Net fee and commission income increased by
USD 462m
to USD 13,485m and included a decrease of
USD 282m
in accretion of
PPA adjustments on
financial instruments and
other PPA
effects, which was
reflected in
other fee
and commission
income. Investment
fund fees
increased by
USD 485m
and fees
for portfolio
management and
related services increased
by USD 148m, both mainly
in Global Wealth
Management,
mainly due to higher
average
levels of fee-generating assets, reflecting
positive market performance and net
new fee-generating asset inflows.
Net brokerage
fees increased by
USD 367m due
to higher
levels of
client activity in
Global Wealth
Management
and
in
Execution
Services
in
the
Investment
Bank,
due
to
higher
volumes.
M&A
and
corporate
finance
fees
d
ecreased by USD 60m, predominantly in our
Global Banking business within the Investment
Bank.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Group performance
17
Other income was USD 243m
compared with USD 278m in the first six months
of 2024. Revenues included losses
of USD 62m recognized on repurchases of
UBS’s own debt instruments, compared with
gains of USD 26m in the
first six months of 2024. In addition,
there was a USD 16m net loss relating to
an investment in an associate.
The
first six months of 2024
also included a USD 28m
net gain in Asset
Management from the
sale of our Brazilian
real
estate fund management business. These decreases
were partly offset by a USD 97m gain in Non-core and
Legacy
related to the
sale of
Select Portfolio
Servicing, the
US mortgage servicing
business of
Credit Suisse,
and a
USD 64m
gain in Personal & Corporate Banking related
to the Swisscard transactions.
Personnel
expenses
decreased
by
USD 60m
to
USD 14,008m,
attributable
to
a
decrease
in
salary
expenses,
reflecting the impact of a smaller workforce,
and the amortization of awards granted in prior
periods, partly offset
by foreign
currency effects. These
decreases were partly
offset by
higher accruals for
performance awards and
a
USD 186m increase in financial advisor compensation
resulting from higher compensable revenues.
General and administrative expenses decreased by USD 419m to USD 4,312m, mainly
driven by USD 193m
lower
consulting, legal and
audit fees, USD 140m
higher net releases
for litigation, regulatory
and similar matters,
as well
as
a
USD 126m
decrease
in
outsourcing
costs.
This
was
partly
offset
by
a
USD 180m
expense
related
to
the
Swisscard transactions in Personal & Corporate
Banking.
Outlook
The third
quarter started
with strong
market performance
in risk
assets, particularly
international equities,
combined
with a
weak US
dollar. Investor
sentiment remains
broadly constructive,
tempered by
persistent macroeconomic
and geopolitical
uncertainties. Against
this backdrop,
our client
conversations and
deal pipelines
indicate a
high
level
of
readiness
among
investors
and
corporates
to
deploy
capital,
as
conviction
around
the
macro
outlook
strengthens.
For the third quarter, we expect Global Wealth Management’s net interest
income (NII) and Personal & Corporate
Banking’s NII in Swiss francs to be broadly stable. In US dollar
terms, this translates to a sequential low single-digit
percentage increase.
We also
expect trading
and transactional
activity to
reflect more
normalized seasonal patterns
and activity
levels
compared to the
same quarter a
year ago, particularly
in Global Wealth
Management’s transaction-based
revenues
and
the
Investment
Bank’s
Global
Markets
performance.
Pull-to-par
revenues
1
are
expected
to
be
around
USD 0.4bn, partly mitigating the expected
USD 1.1bn in integration-related expenses.
We remain focused on actively engaging with our clients, helping them to navigate a
complex environment while
executing on our
growth and integration
plans. We are
confident in our
ability to deliver
on our 2025
and 2026
financial targets, leveraging the power of our
diversified business model.
1
Pull-to-par revenues are revenues recognized when
fair value reductions taken
on financial instruments acquired as
part of the Credit Suisse transaction
through the required purchase price allocation
(PPA) unwind
as the instruments approach their maturity.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Global Wealth Management
18
Global Wealth Management
Global Wealth Management
As of or for the quarter ended
% change from
Year-to-date
USD m, except where indicated
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Results
Net interest income
1,705
1,708
1,825
0
(7)
3,413
3,698
Recurring net fee income
1
3,351
3,279
3,104
2
8
6,630
6,128
Transaction-based income
1
1,236
1,427
1,105
(13)
12
2,664
2,317
Other income
7
8
19
(11)
(64)
15
53
Total revenues
6,300
6,422
6,053
(2)
4
12,722
12,196
Credit loss expense / (release)
3
6
(1)
(44)
9
(4)
Operating expenses
5,093
5,057
5,183
1
(2)
10,150
10,228
Business division operating profit / (loss) before tax
1,204
1,359
871
(11)
38
2,563
1,972
Underlying results
Total revenues as reported
6,300
6,422
6,053
(2)
4
12,722
12,196
of which: PPA effects and other integration items
2
153
165
233
(8)
(34)
318
467
of which: PPA effects recognized in net interest income
148
159
240
(7)
(38)
307
497
of which: PPA effects and other integration items recognized in transaction-based income
5
6
(6)
(26)
11
(30)
of which: gain / (loss) related to an investment in an associate
(8)
4
(5)
Total revenues (underlying)
1
6,156
6,253
5,820
(2)
6
12,408
11,729
Credit loss expense / (release)
3
6
(1)
(44)
9
(4)
Operating expenses as reported
5,093
5,057
5,183
1
(2)
10,150
10,228
of which: integration-related expenses and PPA effects
1,3
383
355
523
8
(27)
739
928
Operating expenses (underlying)
1
4,710
4,702
4,660
0
1
9,411
9,300
of which: expenses for litigation, regulatory and similar matters
13
14
17
(6)
(20)
28
28
Business division operating profit / (loss) before tax as reported
1,204
1,359
871
(11)
38
2,563
1,972
Business division operating profit / (loss) before tax (underlying)
1
1,443
1,545
1,161
(7)
24
2,988
2,433
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
38.3
23.4
(15.3)
30.0
(11.9)
Cost / income ratio (%)
1
80.8
78.8
85.6
79.8
83.9
Average attributed equity (USD bn)
4
34.2
33.6
32.9
2
4
33.9
33.0
Return on attributed equity (%)
1,4
14.1
16.2
10.6
15.1
12.0
Financial advisor compensation
5
1,334
1,409
1,291
(5)
3
2,743
2,558
Net new fee-generating assets (USD bn)
1
7.5
27.2
16.3
34.7
33.9
Fee-generating assets (USD bn)
1
1,980
1,847
1,764
7
12
1,980
1,764
Net new assets (USD bn)
1
23.3
31.5
26.9
54.8
54.2
Net new assets growth rate (%)
1
2.2
3.0
2.7
2.6
2.7
Invested assets (USD bn)
1
4,512
4,218
4,038
7
12
4,512
4,038
Net new loans (USD bn)
1
3.4
2.2
(1.5)
5.6
(8.1)
Loans, gross (USD bn)
6
318.3
300.1
305.2
6
4
318.3
305.2
Net new deposits (USD bn)
1
9.0
(9.3)
(6.0)
(0.3)
2.0
Customer deposits (USD bn)
6
488.8
464.4
476.2
5
3
488.8
476.2
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,7
0.5
0.4
0.4
0.5
0.4
Advisors (full-time equivalents)
9,565
9,693
10,068
(1)
(5)
9,565
10,068
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
1
24.3
21.5
27.7
22.8
14.7
Cost / income ratio (%)
1
76.5
75.2
80.1
75.8
79.3
Return on attributed equity (%)
1,4
16.9
18.4
14.1
17.6
14.7
1 Refer to “Alternative
performance measures” in the appendix
to this report for the definition
and calculation method.
2 Includes accretion of PPA
adjustments on financial instruments and other
PPA effects, as
well as temporary and incremental items
directly related to the integration.
3 Includes temporary, incremental
operating expenses directly related to the
integration, as well as amortization of
intangibles resulting
from the acquisition of the Credit Suisse Group.
4 Refer to the “Equity attribution” section of this report for
more information about the equity attribution framework.
5 Relates to licensed professionals with the
ability to provide investment
advice to clients in
the Americas. Consists
of cash compensation, determined
using a formulaic approach
based on production,
and deferred awards.
Also includes expenses related
to
compensation commitments with
financial advisors entered
into at the
time of recruitment
that are subject
to vesting requirements.
Recruitment loans to
financial advisors were
USD 1,579m as of
30 June 2025.
6 Loans and Customer deposits in this
table include customer brokerage receivables and payables, respectively, which are presented in separate reporting lines on
the balance sheet.
7 Refer to the “Risk management
and control” section of this report for more information about (credit-)impaired exposures. Excludes loans to financial advisors.
Results: 2Q25 vs 2Q24
Profit before tax increased by USD 333m, or 38%, to USD 1,204m,
mainly due to higher total revenues and lower
operating
expenses.
Underlying
profit
before
tax
was
USD 1,443m,
an
increase
of
24%,
after
excluding
from
operating
expenses
USD 383m
of
integration-related
expenses
and
purchase
price
allocation
(PPA)
effects
and
excluding from total revenues
USD 153m of PPA effects
and other integration items
and an USD 8m loss related
to
an investment in an associate.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Global Wealth Management
19
Total revenues
Total revenues increased by USD 247m, or 4%, to USD 6,300m, largely driven
by higher recurring net fee income
and transaction-based income,
partly offset
by lower
net interest
income, and included
an USD 80m
decrease in
PPA effects
and other
integration items.
Excluding USD 153m
of PPA
effects and
other integration
items and
an
USD 8m loss related to an investment in an associate,
underlying total revenues were USD 6,156m, an increase of
6%.
Net
interest
income
decreased
by
USD 120m,
or
7%,
to
USD 1,705m,
and
included
a
USD 92m
decrease
in
accretion of PPA
adjustments on financial
instruments and other
PPA effects.
The remaining variance
was largely
driven by lower
loan revenues,
reflecting margin
contraction,
and lower
deposit revenues
due to
lower central
bank
interest rates.
The variance
also included
a change
to our
segmentation approach
that was
implemented in
February
2025 and led to
a shift of some
affluent clients to
Personal & Corporate Banking.
The decrease was
partly offset by
the effects of
higher deposit volumes, positive foreign
currency effects and balance sheet
optimization measures.
Excluding PPA effects of USD 148m, underlying
net interest income was USD 1,557m, a decrease
of 2%.
Recurring net fee income increased by USD 247m, or 8%, to USD 3,351m, mainly driven by higher average levels
of fee-generating assets,
reflecting positive market performance and net new
fee-generating asset inflows.
Transaction-based income
increased by
USD 131m, or
12%, to
USD 1,236m, mainly
driven by
higher levels
of client
activity across
all regions.
Excluding PPA
effects of
USD 5m, underlying
transaction-based income
was USD 1,232m,
an increase of 11%.
Other income
decreased by USD
12m to
USD 7m and
included a
loss of
USD 8m related
to an
investment in
an
associate. Excluding the aforementioned
loss, underlying other income was USD 15m.
Credit loss expense / release
Net credit loss expenses were USD 3m, compared with net credit loss releases
of USD 1m in the second quarter of
2024.
Operating expenses
Operating
expenses
decreased
by
USD 90m,
or
2%,
to
USD 5,093m
and
included
a
USD 140m
decrease
in
integration-related
expenses.
Excluding
USD 383m
of
integration-related
expenses
and
PPA
effects,
underlying
operating expenses were
USD 4,710m, an increase
of 1%,
mainly driven
by unfavorable foreign
currency effects
and higher financial advisor compensation reflecting
an increase in compensable revenues.
Invested assets: 2Q25 vs 1Q25
Invested
assets
increased
by
USD 294bn
to
USD 4,512bn,
mainly
driven
by
positive
market
performance
of
USD 177.8bn, foreign currency effects of
USD 96.8bn and net new asset inflows of
USD 23.3bn.
Loans: 2Q25 vs 1Q25
Loans increased by
USD 18.2bn to USD 318.3bn,
mainly driven by
positive foreign currency
effects and positive
net
new loans of USD 3.4bn.
›
Refer to the “Risk management and control” section of this report for more information
Customer deposits: 2Q25 vs 1Q25
Customer deposits
increased by
USD 24.4bn to
USD 488.8bn, mainly
driven by
positive foreign
currency effects
and net new deposit inflows of USD 9.0bn.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Global Wealth Management
20
Results: 6M25 vs 6M24
Profit before tax increased by USD 591m, or 30%, to USD 2,563m,
mainly due to higher total revenues and lower
operating
expenses.
Underlying
profit
before
tax
was
USD 2,988m,
an
increase
of
23%,
after
excluding
from
operating expenses USD 739m of integration-related expenses and PPA effects and excluding from total revenues
USD 318m of PPA effects and other integration
items and a USD 5m loss related to an investment
in an associate.
Total revenues increased by
USD 526m, or 4%, to USD
12,722m, largely driven by
higher recurring net fee income
and transaction-based income,
partly offset
by lower
net interest
income, and included
a USD 149m decrease
in
PPA
effects and
other integration
items. Excluding
USD 318m of
PPA
effects and
other integration
items and
a
USD 5m loss related
to an investment
in an
associate,
underlying total revenues
were USD 12,408m, an
increase
of 6%.
Net
interest
income
decreased
by
USD 285m,
or
8%,
to
USD 3,413m,
and
included
a
USD 190m
decrease
in
accretion of PPA
adjustments on financial
instruments and other
PPA effects.
The remaining variance
was largely
driven by lower
loan revenues,
reflecting margin
contraction,
and lower
deposit revenues
due to
lower central
bank
interest rates.
The variance
also included
a change
to our
segmentation approach
that was
implemented in
February
2025 and led to
a shift of some
affluent clients to
Personal & Corporate Banking.
The decrease was
partly offset by
the effects of
balance sheet optimization measures, higher deposit
volumes and positive foreign currency
effects.
Excluding PPA effects of USD 307m, underlying
net interest income was USD 3,106m, a decrease
of 3%.
Recurring net fee income increased by USD 502m, or 8%, to USD 6,630m, mainly driven by higher average levels
of fee-generating assets, reflecting positive market
performance and net new fee-generating asset
inflows.
Transaction-based income
increased by
USD 347m, or
15%, to
USD 2,664m, mainly
driven by
higher levels
of client
activity
across
all
regions.
Excluding
PPA
effects
of
USD 11m,
underlying
transaction-based
income
was
USD 2,653m, an increase of 13%.
Other income decreased by USD 38m to USD 15m and included a net loss of
USD 5m related to an investment in
an associate. Excluding the aforementioned loss,
underlying other income was USD 19m.
Net credit loss expenses were USD 9m, compared
with net credit loss releases of USD 4m in the
first half of 2024.
Operating
expenses
decreased
by
USD 78m,
or
1%,
to
USD 10,150m
and
included
a
USD 189m
decrease
in
integration-related
expenses.
Excluding
USD 739m
of
integration-related
expenses
and
PPA
effects,
underlying
operating expenses were
USD 9,411m, an increase
of 1%,
mainly driven
by unfavorable foreign
currency effects
and higher financial advisor compensation reflecting
an increase in compensable revenues.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Global Wealth Management
21
Regional breakdown of performance measures
As of or for the quarter ended 30.6.25
USD m, except where indicated
Americas
1
Asia Pacific
EMEA
Switzerland
Divisional items
2
Global Wealth
Management
Net interest income
500
304
382
374
145
1,705
Recurring net fee income
3
2,015
286
575
463
13
3,351
Transaction-based income
3
403
359
274
215
(15)
1,236
Other income
10
(2)
2
(2)
(2)
7
Total revenues
2,929
947
1,234
1,049
141
6,300
Credit loss expense / (release)
4
1
1
(2)
0
3
Operating expenses
2,561
598
839
698
397
5,093
Operating profit / (loss) before tax
364
348
394
353
(256)
1,204
of which: PPA effects, integration-related items and other items
4
(239)
(239)
Cost / income ratio (%)
3
87.4
63.2
68.0
66.5
80.8
Net new fee-generating assets (USD bn)
3
1.7
1.6
3.5
0.8
(0.1)
7.5
Fee-generating assets (USD bn)
3
1,125
187
417
249
1
1,980
Net new assets (USD bn)
3
(3.5)
11.1
9.1
7.0
(0.3)
23.3
Net new assets growth rate (%)
3
(0.7)
6.4
5.4
3.6
2.2
Invested assets (USD bn)
3
2,189
746
728
844
5
4,512
Net new loans (USD bn)
3
1.9
0.2
2.2
(0.7)
(0.2)
3.4
Loans, gross (USD bn)
100.4
5
44.7
63.2
108.8
1.1
318.3
Net new deposits (USD bn)
3
0.2
4.8
4.5
0.0
(0.6)
9.0
Customer deposits (USD bn)
114.1
5
122.9
117.6
130.0
4.2
488.8
Advisors (full-time equivalents)
5,773
933
1,508
1,259
93
9,565
As of or for the quarter ended 30.6.24
USD m, except where indicated
Americas
1
Asia Pacific
EMEA
Switzerland
Divisional items
2
Global Wealth
Management
Net interest income
477
323
403
389
232
1,825
Recurring net fee income
3
1,891
258
527
418
11
3,104
Transaction-based income
3
385
313
230
198
(20)
1,105
Other income
8
10
(1)
(2)
4
19
Total revenues
2,761
903
1,159
1,003
227
6,053
Credit loss expense / (release)
4
(3)
1
(2)
(1)
(1)
Operating expenses
2,510
596
856
683
539
5,183
Operating profit / (loss) before tax
247
310
302
322
(311)
871
of which: PPA effects, integration-related items and other items
4
(290)
(290)
Cost / income ratio (%)
3
90.9
66.0
73.8
68.1
85.6
Net new fee-generating assets (USD bn)
3
12.1
1.1
(0.5)
3.6
(0.1)
16.3
Fee-generating assets (USD bn)
3
1,012
160
371
221
1
1,764
Net new assets (USD bn)
3
6.2
8.2
1.1
11.9
(0.5)
26.9
Net new assets growth rate (%)
3
1.3
5.1
0.7
6.5
2.7
Invested assets (USD bn)
3
1,994
627
660
750
5
4,038
Net new loans (USD bn)
3
1.1
(0.8)
(0.4)
(1.4)
0.0
(1.5)
Loans, gross (USD bn)
96.4
5
42.2
58.9
106.7
1.0
305.2
Net new deposits (USD bn)
3
(4.1)
(2.3)
(1.2)
1.7
(0.1)
(6.0)
Customer deposits (USD bn)
105.3
5
126.7
118.7
123.6
1.9
476.2
Advisors (full-time equivalents)
6,002
1,014
1,553
1,407
93
10,068
1 Including the
following business units:
United States and
Canada; and Latin
America.
2 Includes impacts from
accretion of purchase
price allocation (PPA)
adjustments on financial
instruments and other
PPA
effects, integration-related expenses,
certain gains and losses including from investments
in associates, referral payments
from and to Personal & Corporate
Banking from client shifts, impacts from
agreements with
certain clients, and impacts from minor functions which are not
included in the four regions individually presented in this table.
3 Refer to “Alternative
performance measures” in the appendix to this report for the
definition and calculation method.
4 Items of profit or loss that management believes are
not representative of the underlying performance,
namely impacts from accretion of purchase price allocation adjustments
on financial instruments
and other PPA
effects, integration-related
expenses, amortization
of intangibles resulting
from the acquisition
of the Credit
Suisse Group, and
certain gains and
losses from investments in
associates.
5 Loans and Customer deposits in this table include customer brokerage receivables
and payables, respectively, which are presented in
separate reporting lines on the balance sheet.
Regional comments 2Q25 vs 2Q24, except where
indicated
Americas
Profit
before
tax
increased
by
USD 117m
to
USD 364m.
Total
revenues
increased
by
USD 168m,
or
6%,
to
USD 2,929m, mainly
driven by
increases of USD 124m
in recurring net
fee income,
USD 23m in net
interest income
and USD 18m
in transaction-based income.
Operating expenses increased
by USD 51m,
or 2%,
to USD 2,561m.
The cost / income ratio decreased to 87.4% from 90.9%. Loans increased by
2% compared with the first quarter
of 2025, to USD 100.4bn, mainly driven by positive net new loans of USD 1.9bn.
Customer deposits were broadly
stable compared with the first quarter of 2025, at USD 114.1bn, with net new deposit inflows of USD 0.2bn. Net
new asset outflows were USD 3.5bn.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Global Wealth Management
22
Asia Pacific
Profit before tax
increased by
USD 38m to USD
348m. Total
revenues increased
by USD 44m,
or 5%, to
USD 947m,
mainly driven
by increases
of USD 46m
in transaction-based
income and
USD 28m in
recurring net
fee income,
partly offset by a USD 19m
decrease in net interest
income. Operating expenses
were broadly stable at
USD 598m.
The cost / income ratio decreased to 63.2% from 66.0%. Loans increased by
3% compared with the first quarter
of
2025,
to
USD 44.7bn,
mainly
driven
by
positive
foreign
currency
effects
and
by
positive
net
new
loans
of
USD 0.2bn. Customer deposits
increased by 3%
compared with the
first quarter of
2025, to
USD 122.9bn, with
net new deposit inflows of USD 4.8bn. Net new
asset inflows were USD 11.1bn.
EMEA
Profit
before
tax
increased
by
USD 92m
to
USD 394m.
Total
revenues
increased
by
USD 75m,
or
6%,
to
USD 1,234m, mainly
driven by
increases of
USD 48m in
recurring net
fee income
and
USD 44m in
transaction-
based
income,
partly
offset
by
a
USD 21m
decrease
in
net
interest
income.
Operating
expenses
decreased
by
USD 17m, or 2%, to USD
839m. The cost / income ratio
decreased to 68.0% from
73.8%. Loans increased
by 5%
compared with the
first quarter
of 2025, to
USD 63.2bn, mainly
driven by positive
net new loans
of USD 2.2bn
and
positive foreign currency effects. Customer deposits increased by 5% compared with
the first quarter of 2025, to
USD 117.6bn, mainly driven
by net new deposit
inflows of USD 4.5bn and
by positive foreign currency
effects. Net
new asset inflows were USD 9.1bn.
Switzerland
Profit before
tax increased
by USD 31m
to USD 353m.
Total revenues
increased by
USD 46m to
USD 1,049m,
mostly
driven by increases of USD 45m in recurring
net fee income and USD 17m in transaction-based
income. Operating
expenses increased by USD 15m, or 2%, to USD 698m. The cost / income ratio decreased to 66.5% from 68.1%.
Loans increased
by 12%
compared with
the first
quarter of
2025, to
USD 108.8bn, mainly
driven by
positive foreign
currency
effects,
partly
offset
by
negative
net
new
loans
of
USD 0.7bn.
Customer
deposits
increased
by
11%
compared with the
first quarter of 2025,
to USD 130.0bn, mainly
driven by positive foreign
currency effects. Net
new asset inflows were USD 7.0bn.
Divisional items
Operating loss before tax was USD 256m and mainly included USD 383m
of integration-related expenses and PPA
effects, impacts
from agreements
with certain
clients,
and a
loss of
USD 8m related
to an
investment in
an associate,
partly offset by the aforementioned USD 153m
related to PPA effects and other integration
items.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Personal & Corporate Banking
23
Personal & Corporate Banking
Personal & Corporate Banking – in Swiss francs
As of or for the quarter ended
% change from
Year-to-date
CHF m, except where indicated
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Results
Net interest income
1,111
1,114
1,225
0
(9)
2,226
2,557
Recurring net fee income
1
357
357
357
0
0
715
705
Transaction-based income
1
459
452
463
2
(1)
911
911
Other income
(28)
66
16
38
27
Total revenues
1,900
1,989
2,061
(4)
(8)
3,889
4,201
Credit loss expense / (release)
91
48
92
91
(1)
139
132
Operating expenses
1,243
1,396
1,266
(11)
(2)
2,638
2,507
Business division operating profit / (loss) before tax
566
545
703
4
(19)
1,111
1,562
Underlying results
Total revenues as reported
1,900
1,989
2,061
(4)
(8)
3,889
4,201
of which: PPA effects and other integration items
2
222
216
223
3
0
438
449
of which: PPA effects recognized in net interest income
205
192
201
7
2
396
413
of which: PPA effects and other integration items recognized in transaction-based income
17
25
22
(30)
(21)
42
36
of which: gain / (loss) related to an investment in an associate
(18)
9
(8)
of which: items related to the Swisscard transactions
3
58
58
Total revenues (underlying)
1
1,696
1,705
1,838
0
(8)
3,401
3,751
Credit loss expense / (release)
91
48
92
91
(1)
139
132
Operating expenses as reported
1,243
1,396
1,266
(11)
(2)
2,638
2,507
of which: integration-related expenses and PPA effects
1,4
195
172
165
13
18
367
307
of which: items related to the Swisscard transactions
5
164
164
Operating expenses (underlying)
1
1,048
1,060
1,101
(1)
(5)
2,108
2,200
of which: expenses for litigation, regulatory and similar matters
0
0
0
0
0
Business division operating profit / (loss) before tax as reported
566
545
703
4
(19)
1,111
1,562
Business division operating profit / (loss) before tax (underlying)
1
557
597
645
(7)
(14)
1,154
1,420
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
(19.5)
(36.5)
19.2
(28.9)
36.8
Cost / income ratio (%)
1
65.4
70.2
61.4
67.8
59.7
Average attributed equity (CHF bn)
6
17.7
18.2
19.4
(2)
(9)
17.9
19.3
Return on attributed equity (%)
1,6
12.8
12.0
14.5
12.4
16.2
Net interest margin (bps)
1
179
181
195
180
203
Loans, gross (CHF bn)
248.7
248.9
249.5
0
0
248.7
249.5
Customer deposits (CHF bn)
249.3
251.2
254.7
(1)
(2)
249.3
254.7
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,7
1.2
1.3
1.1
1.2
1.1
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
1
(13.7)
(22.9)
30.5
(18.7)
35.7
Cost / income ratio (%)
1
61.8
62.2
59.9
62.0
58.7
Return on attributed equity (%)
1,6
12.6
13.2
13.3
12.9
14.7
1 Refer to “Alternative
performance measures” in the appendix to
this report for the definition and
calculation method.
2 Includes accretion of PPA
adjustments on financial instruments and other
PPA effects, as
well as temporary and
incremental items directly related
to the integration.
3 Represents the gain
related to UBS’s
share of income recorded
by Swisscard for the
sale of the Credit
Suisse card portfolios
to UBS.
4 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of intangibles resulting from the acquisition of the Credit Suisse
Group.
5 For the first quarter of 2025
this represents the expense related to the payment to Swisscard for the sale of the Credit Suisse card portfolios to UBS.
6 Refer to the “Equity attribution” section of this report for more information about the equity
attribution framework.
7 Refer to the “Risk management and control” section of this report for more information about (credit-)impaired exposures.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Personal & Corporate Banking
24
Results
:
2Q25 vs 2Q24
Profit before
tax decreased
by
CHF 137m, or
19%, to
CHF 566m, mainly
reflecting lower
total revenues,
partly
offset by lower operating
expenses. Underlying profit
before tax was CHF 557m,
a decrease of 14%, mainly
driven
by lower net interest income, resulting from lower market interest rates. This underlying profit excludes from total
revenues CHF 222m of purchase price allocation
(PPA) effects and other integration items
and a loss of
CHF 18m
related to an investment
in an associate; it
also excludes from operating
expenses CHF 195m of
integration-related
expenses and PPA effects.
Total revenues
Total revenues decreased
by CHF 161m, or
8%, to CHF
1,900m, mainly due
to lower net
interest income
and other
income, and included a CHF 1m decrease in PPA effects and other integration items. Total revenues in
the second
quarter of 2025 also included a loss of CHF 18m related to an investment in an associate. Excluding CHF 222m
of
PPA effects and other integration
items and the aforementioned
loss, underlying total revenues
were CHF 1,696m,
a decrease of 8%.
Net interest income decreased by CHF 114m, or 9%, to CHF 1,111m,
mainly driven by lower central bank interest
rates affecting
deposit revenues,
partly mitigated
by pricing
measures, lower
liquidity and
funding costs,
and higher
loan revenues. Net
interest income also
included a CHF 4m
increase in accretion
of PPA
adjustments on financial
instruments
and
other
PPA
effects.
Excluding
PPA
effects
of
CHF 205m,
underlying
net
interest
income
was
CHF 907m, a decrease of 11%.
Recurring net fee income was stable at CHF 357m, largely
due to higher custody asset levels, mainly reflecting
net
new inflows
and positive
market performance,
offset by
the effect
from a
reclassification
of recurring
net fee
income
to transaction-based income as a result of aligning Credit Suisse presentation to that of
UBS in the second half of
2024.
Transaction-based income was broadly stable at CHF 459m, as lower corporate client revenues were offset by the
positive
impact
from
the
aforementioned
reclassification, and
included
a
CHF 5m
decrease
in
accretion
of
PPA
adjustments on
financial
instruments and
other PPA
effects. Excluding
CHF 17m of
PPA effects
and other
integration
items, underlying transaction-based income
was also largely stable at CHF 442m.
Other income was negative CHF 28m,
compared with positive CHF 16m, and
included a loss of
CHF 18m related
to an investment in an associate. Excluding this
loss, underlying other income was negative
CHF 10m.
Credit loss expense / release
Net credit loss expenses were CHF 91m and mainly reflected net expenses on credit-impaired positions. Net credit
loss expenses in the prior-year quarter were
CHF 92m.
Operating expenses
Operating
expenses
decreased
by
CHF 23m,
or
2%,
to
CHF 1,243m
and
included
a
CHF 30m
increase
in
integration-related
expenses.
Excluding
CHF 195m
of
integration-related
expenses
and
PPA
effects,
underlying
operating expenses
were CHF 1,048m,
a decrease
of 5%,
mainly driven
by lower
personnel expenses,
including
lower variable compensation.
Results
:
6M25 vs 6M24
Profit
before
tax
decreased by
CHF 451m,
or
29%, to
CHF 1,111m, mainly
reflecting lower
total
revenues and
higher operating
expenses. Underlying
profit before
tax was
CHF 1,154m, a
decrease of
19%, predominantly
driven
by lower net interest income, resulting from lower market interest rates. This underlying profit excludes from total
revenues
CHF 438m
of
PPA
effects
and
other
integration
items,
a
gain
of
CHF 58m
related
to
the
Swisscard
transactions, and
a net
loss of
CHF 8m related
to an
investment in
an associate;
it also
excludes from
operating
expenses
CHF 367m
of
integration-related
expenses
and
PPA
effects
and
a
CHF 164m
expense
related
to
the
Swisscard transactions.
Total revenues decreased by CHF 312m, or 7%, to CHF 3,889m, predominantly due to lower net interest income,
and included
an CHF 11m
decrease in
PPA effects
and other
integration items.
Total revenues
in the
first half
of
2025 also included
a gain of CHF 58m
related to the
Swisscard transactions and
a net loss of
CHF 8m related to an
investment in
an associate.
Excluding CHF 438m
of PPA
effects and
other integration
items and
the aforementioned
g
ain and a net loss, underlying total revenues
were CHF 3,401m, a decrease of 9%.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Personal & Corporate Banking
25
Net interest income
decreased by CHF 331m,
or 13%, to
CHF 2,226m, mainly driven
by lower central
bank interest
rates affecting
deposit revenues,
partly mitigated
by pricing
measures.
Net interest
income also
included a
CHF 17m
decrease in accretion of PPA
adjustments on financial instruments and other PPA
effects. Excluding PPA effects of
CHF 396m, underlying net interest income was
CHF 1,829m, a decrease of 15%.
Recurring net fee income increased by CHF 10m, or 1%, to CHF 715m, largely due to higher custody asset levels,
mainly reflecting
net new
inflows and
positive market
performance, partly
offset by
the effect
from a
reclassification
of recurring net
fee income to transaction-based income
as a result
of aligning Credit Suisse
presentation to that
of UBS in the second half of 2024.
Transaction-based income was stable at CHF 911m, as lower corporate client revenues were offset by the positive
impact from the aforementioned reclassification, and included a CHF 6m increase in accretion of PPA adjustments
on
financial
instruments and
other
PPA
effects. Excluding
CHF 42m of
PPA
effects and
other
integration items,
underlying transaction-based income was
broadly stable at CHF 869m.
Other income
increased by
CHF 11m to
CHF 38m, mainly
reflecting a
gain of
CHF 58m related
to the
Swisscard
transactions and a net loss of
CHF 8m related to an investment in an
associate. Excluding these items, underlying
other income was negative CHF 12m.
Net credit loss expenses were CHF 139m and mainly reflected net expenses on credit-impaired positions, primarily
in the legacy Credit Suisse corporate loan book.
Net credit loss expenses in the prior-year period
were CHF 132m.
Operating expenses increased by CHF 131m, or
5%, to CHF 2,638m, largely due to
a CHF 164m expense related
to
the
Swisscard
transactions,
and
included
a
CHF 61m
increase
in
integration-related
expenses.
Excluding
CHF 367m
of
integration-related
expenses
and
PPA
effects
and
the
aforementioned
expense
of
CHF 164m,
underlying operating expenses were CHF 2,108m, a decrease
of 4%, mainly driven
by lower personnel expenses,
including lower variable compensation.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Personal & Corporate Banking
26
Personal & Corporate Banking – in US dollars
As of or for the quarter ended
% change from
Year-to-date
USD m, except where indicated
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Results
Net interest income
1,367
1,239
1,350
10
1
2,605
2,859
Recurring net fee income
1
440
397
394
11
12
837
788
Transaction-based income
1
565
502
510
12
11
1,067
1,018
Other income
(35)
72
17
38
30
Total revenues
2,336
2,211
2,272
6
3
4,547
4,695
Credit loss expense / (release)
114
53
103
113
11
167
146
Operating expenses
1,528
1,551
1,396
(1)
9
3,078
2,800
Business division operating profit / (loss) before tax
695
607
773
15
(10)
1,302
1,748
Underlying results
Total revenues as reported
2,336
2,211
2,272
6
3
4,547
4,695
of which: PPA effects and other integration items
2
274
241
246
14
11
514
502
of which: PPA effects recognized in net interest income
252
213
221
18
14
465
462
of which: PPA effects and other integration items recognized in transaction-based income
21
27
24
(22)
(11)
49
40
of which: gain / (loss) related to an investment in an associate
(23)
11
(12)
of which: items related to the Swisscard transactions
3
64
64
Total revenues (underlying)
1
2,085
1,895
2,026
10
3
3,980
4,193
Credit loss expense / (release)
114
53
103
113
11
167
146
Operating expenses as reported
1,528
1,551
1,396
(1)
9
3,078
2,800
of which: integration-related expenses and PPA effects
1,4
240
192
182
25
32
432
342
of which: items related to the Swisscard transactions
5
180
180
Operating expenses (underlying)
1
1,288
1,179
1,213
9
6
2,467
2,458
of which: expenses for litigation, regulatory and similar matters
0
0
0
0
0
Business division operating profit / (loss) before tax as reported
695
607
773
15
(10)
1,302
1,748
Business division operating profit / (loss) before tax (underlying)
1
684
663
710
3
(4)
1,347
1,588
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
(10.2)
(37.8)
18.0
(25.5)
39.5
Cost / income ratio (%)
1
65.4
70.1
61.4
67.7
59.6
Average attributed equity (USD bn)
6
21.4
20.1
21.4
6
0
20.7
21.7
Return on attributed equity (%)
1,6
13.0
12.1
14.5
12.5
16.1
Net interest margin (bps)
1
184
181
194
182
201
Loans, gross (USD bn)
313.4
281.4
277.6
11
13
313.4
277.6
Customer deposits (USD bn)
314.1
284.0
283.4
11
11
314.1
283.4
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,7
1.2
1.3
1.1
1.2
1.1
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
1
(3.7)
(24.5)
29.4
(15.2)
38.5
Cost / income ratio (%)
1
61.8
62.2
59.9
62.0
58.6
Return on attributed equity (%)
1,6
12.8
13.2
13.3
13.0
14.7
1 Refer to “Alternative
performance measures” in the appendix to
this report for the definition and
calculation method.
2 Includes accretion of PPA
adjustments on financial instruments and other
PPA effects, as
well as temporary and
incremental items directly related
to the integration.
3 Represents the gain
related to UBS’s
share of income recorded
by Swisscard for the
sale of the Credit
Suisse card portfolios
to UBS.
4 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of intangibles resulting from the acquisition of the Credit Suisse
Group.
5 For the first quarter of 2025
this represents the expense related to the payment to Swisscard for the sale of the Credit Suisse card portfolios to UBS.
6 Refer to the “Equity attribution” section of this report for more information about the equity
attribution framework.
7 Refer to the “Risk management and control” section of this report for more information about (credit-)impaired exposures.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Asset Management
27
Asset Management
Asset Management
As of or for the quarter ended
% change from
Year-to-date
USD m, except where indicated
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Results
Net management fees
1
733
713
711
3
3
1,446
1,456
Performance fees
39
30
28
28
36
69
59
Net gain from disposals
(2)
28
(2)
28
Total revenues
772
741
768
4
0
1,513
1,543
Credit loss expense / (release)
0
0
0
0
0
Operating expenses
618
606
638
2
(3)
1,224
1,303
Business division operating profit / (loss) before tax
153
135
130
13
18
289
241
Underlying results
Total revenues as reported
772
741
768
4
0
1,513
1,543
Total revenues (underlying)
2
772
741
768
4
0
1,513
1,543
Credit loss expense / (release)
0
0
0
0
0
Operating expenses as reported
618
606
638
2
(3)
1,224
1,303
of which: integration-related expenses
2
63
73
98
(14)
(36)
135
169
Operating expenses (underlying)
2
555
533
540
4
3
1,088
1,134
of which: expenses for litigation, regulatory and similar matters
0
0
0
0
0
Business division operating profit / (loss) before tax as reported
153
135
130
13
18
289
241
Business division operating profit / (loss) before tax (underlying)
2
216
208
228
4
(5)
424
410
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
2
17.9
22.3
64.8
19.9
38.5
Cost / income ratio (%)
2
80.1
81.7
83.0
80.9
84.4
Average attributed equity (USD bn)
3
2.5
2.7
2.7
(10)
(8)
2.6
2.7
Return on attributed equity (%)
2,3
25.0
19.8
19.5
22.3
18.1
Gross margin on invested assets (bps)
2
16
17
18
17
18
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
2
(5.2)
14.5
145.3
3.6
118.1
Cost / income ratio (%)
2
72.0
71.9
70.3
71.9
73.5
Return on attributed equity (%)
2,3
35.2
30.5
34.2
32.7
30.8
Information by business line / asset
class
Net new money (USD bn)
2
Equities
0.1
(1.4)
(8.2)
(1.3)
(4.9)
Fixed Income
(1.6)
9.8
(5.1)
8.3
8.7
of which: money market
1.7
5.2
(0.9)
6.9
9.5
Multi-asset & Solutions
(1.7)
0.9
(2.1)
(0.8)
(0.4)
Hedge Fund Businesses
0.3
0.6
0.0
0.9
(0.2)
Real Estate & Private Markets
0.0
0.1
0.0
0.1
0.3
Total net new money excluding associates
(2.9)
10.1
(15.5)
7.2
3.4
of which: net new money excluding money market
(4.6)
4.8
(14.6)
0.2
(6.0)
Associates
4
0.9
(3.2)
3.7
(2.3)
5.8
Total net new money
(2.0)
6.8
(11.8)
4.9
9.2
Invested assets (USD bn)
2
Equities
846
753
691
12
22
846
691
Fixed Income
497
479
450
4
10
497
450
of which: money market
169
164
146
3
16
169
146
Multi-asset & Solutions
304
275
277
11
10
304
277
Hedge Fund Businesses
62
60
59
3
6
62
59
Real Estate & Private Markets
159
147
147
8
8
159
147
Total invested assets excluding associates
1,868
1,715
1,624
9
15
1,868
1,624
of which: passive strategies
930
823
756
13
23
930
756
Associates
4
84
81
77
4
10
84
77
Total invested assets
1,952
1,796
1,701
9
15
1,952
1,701
U
BS Group second quarter 2025 report |
UBS Group performance, business divisions
and Group Items | Asset Management
28
Asset Management (continued)
As of or for the quarter ended
% change from
Year-to-date
USD m, except where indicated
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Information by region
Invested assets (USD bn)
2
Americas
465
447
426
4
9
465
426
Asia Pacific
5
236
222
213
6
11
236
213
EMEA (excluding Switzerland)
487
440
380
11
28
487
380
Switzerland
765
688
682
11
12
765
682
Total invested assets
1,952
1,796
1,701
9
15
1,952
1,701
Information by channel
Invested assets (USD bn)
2
Third-party institutional
1,129
1,027
959
10
18
1,129
959
Third-party wholesale
179
163
181
10
(1)
179
181
UBS’s wealth management businesses
559
525
484
7
16
559
484
Associates
4
84
81
77
4
10
84
77
Total invested assets
1,952
1,796
1,701
9
15
1,952
1,701
1 Net management fees include transaction
fees, fund administration revenues
(including net interest and trading
income from lending activities and
foreign-exchange hedging as part of the
fund services offering),
distribution fees, incremental fund-related
expenses, gains or losses
from seed money and co-investments,
funding costs, the negative
pass-through impact of third-party performance
fees, and other items
that are
not Asset Management’s performance fees.
2 Refer to “Alternative
performance measures” in the appendix to this
report for the definition and calculation method.
3 Refer to the “Equity attribution” section of
this report for more information about the
equity attribution framework.
4 The invested assets and net new money amounts reported for
associates are prepared in accordance with their local
regulatory requirements
and practices.
5 Includes invested assets from associates.
Results: 2Q25 vs 2Q24
Profit before
tax increased
by USD 23m,
or 18%,
to USD 153m,
mainly due
to lower
operating expenses.
Underlying
profit before tax was USD 216m, a decrease of
5%, after excluding integration-related expenses
of USD 63m.
Total revenues
Total revenues increased by USD 4m to USD 772m, reflecting increases in net management fees and performance
fees, largely offset by the second quarter of
2024 including USD 28m of net gains from disposals.
Net
management fees
increased by
USD 22m, or
3%, to
USD 733m, largely
driven by
positive foreign
currency
effects and positive market performance,
partly offset by continued margin compression.
Performance fees increased
by USD 11m, or 36%,
to USD 39m, mainly
due to increases in
Hedge Fund Businesses,
partly offset by decreases in the Fixed Income business.
Operating expenses
Operating expenses
decreased by
USD 20m, or
3%, to
USD 618m and
included a
USD 35m decrease
in integration-
related
expenses.
Excluding
integration-related
expenses
of
USD 63m,
underlying
operating
expenses
were
USD 555m, an increase of 3%, mainly due
to unfavorable foreign currency effects.
Invested assets: 2Q25 vs 1Q25
Invested assets increased by USD 156bn to USD 1,952bn, reflecting positive foreign currency effects of
USD 96bn
and positive
market performance of
USD 62bn, partly
offset by
negative net
new money
of USD 2bn.
Excluding
money market flows and associates, net new
money was negative USD 5bn.
Results: 6M25 vs 6M24
Profit before
tax increased
by USD 48m,
or 20%,
to USD 289m,
mainly due
to lower
operating expenses, partly
offset by
lower total
revenues. Underlying
profit before
tax was
USD 424m, an
increase of
4%, after
excluding
integration-related expenses of USD 135m.
Total revenues
decreased by
USD 30m, or
2%, to
USD 1,513m, primarily
due to
the first
half of
2024 including
USD 28m of net gains from disposals.
Net management
fees decreased
by USD 10m,
or 1%,
to USD 1,446m,
largely driven
by margin
compression,
partly
offset by positive market performance and
foreign currency effects.
Performance fees increased
by USD 10m, or 17%,
to USD 69m, mainly
due to increases in
Hedge Fund Businesses,
partly offset by decreases in the Real Estate business.
Operating
expenses
decreased
by
USD 79m,
or
6%,
to
USD 1,224m
and
included
a
USD 34m
decrease
in
integration-related expenses. Excluding integration-related
expenses of USD 135m, underlying operating
expenses
were USD 1,088m, a decrease of 4%, reflecting
decreases in non-personnel and personnel
expenses.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Investment Bank
29
Investment Bank
Investment Bank
As of or for the quarter ended
% change from
Year-to-date
USD m, except where indicated
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Results
Advisory
192
221
239
(13)
(19)
414
428
Capital Markets
488
489
736
0
(34)
977
1,419
Global Banking
681
710
974
(4)
(30)
1,391
1,847
Execution Services
501
517
405
(3)
24
1,017
807
Derivatives & Solutions
1,115
1,291
897
(14)
24
2,407
1,831
Financing
670
665
526
1
27
1,334
1,069
Global Markets
2,286
2,473
1,829
(8)
25
4,758
3,707
of which: Equities
1,619
1,806
1,355
(10)
20
3,425
2,708
of which: Foreign Exchange, Rates and Credit
667
667
474
0
41
1,333
999
Total revenues
2,966
3,183
2,803
(7)
6
6,149
5,554
Credit loss expense / (release)
48
35
(6)
38
83
26
Operating expenses
2,361
2,427
2,332
(3)
1
4,788
4,496
Business division operating profit / (loss) before tax
557
722
477
(23)
17
1,279
1,032
Underlying results
Total revenues as reported
2,966
3,183
2,803
(7)
6
6,149
5,554
of which: PPA effects
1
152
138
310
10
(51)
290
603
of which: PPA effects recognized in Global Banking revenue line
160
147
306
9
(48)
307
595
Total revenues (underlying)
2
2,815
3,045
2,493
(8)
13
5,860
4,951
Credit loss expense / (release)
48
35
(6)
38
83
26
Operating expenses as reported
2,361
2,427
2,332
(3)
1
4,788
4,496
of which: integration-related expenses
2
121
112
245
7
(51)
233
387
Operating expenses (underlying)
2
2,241
2,314
2,087
(3)
7
4,555
4,109
of which: expenses for litigation, regulatory and similar matters
9
20
(1)
(57)
29
(2)
Business division operating profit / (loss) before tax as reported
557
722
477
(23)
17
1,279
1,032
Business division operating profit / (loss) before tax (underlying)
2
526
696
412
(24)
28
1,222
816
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
2
16.8
30.1
n.m.
23.9
177.7
Cost / income ratio (%)
2
79.6
76.2
83.2
77.9
81.0
Average attributed equity (USD bn)
3
18.3
17.7
17.0
4
8
18.0
17.0
Return on attributed equity (%)
2,3
12.2
16.3
11.3
14.2
12.2
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
2
27.7
72.2
n.m.
49.7
70.9
Cost / income ratio (%)
2
79.6
76.0
83.7
77.7
83.0
Return on attributed equity (%)
2,3
11.5
15.8
9.7
13.6
9.6
1
Includes accretion of
PPA adjustments
on financial instruments
and other PPA
effects.
2 Refer to
“Alternative performance
measures” in the
appendix to this
report for the
definition and calculation
method.
3 Refer to the “Equity attribution” section of this report for more information about the equity attribution framework.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Investment Bank
30
Results: 2Q25 vs 2Q24
Profit before tax increased by USD 80m, or 17%, to
USD 557m, mainly due to higher total revenues, partly offset
by higher net
credit loss
expenses
and operating
expenses. Underlying
profit before
tax was USD
526m, an
increase
of 28%, after excluding USD
152m of purchase price
allocation (PPA) effects and
USD 121m of integration-related
expenses.
Total revenues
Total revenues increased by USD 163m, or
6%, to USD 2,966m, due to
higher revenues in Global Markets, partly
offset by lower revenues in Global Banking, and included an
overall USD 158m decrease in PPA effects. Excluding
these effects, underlying total
revenues were USD 2,815m,
an increase of 13%,
including positive foreign
currency
effects.
Global Banking
Global
Banking
revenues
decreased
by
USD 293m,
or
30%,
to
USD 681m,
mainly
driven
by
Capital
Markets
revenues, and included a USD 146m decrease in
accretion of PPA adjustments on financial instruments and
other
PPA effects.
Excluding such
accretion and
other effects,
underlying Global
Banking revenues
were USD 521m,
a
decrease of 22%.
Advisory revenues decreased by USD 47m, or 19%, to USD 192m, driven by lower private-fund activity levels and
a decrease in merger and acquisition transaction
revenues.
Capital Markets revenues decreased by USD 248m, or 34%, to USD 488m, and included a USD 146m decrease in
accretion of PPA
adjustments on financial
instruments and other
PPA effects. Excluding
such accretion and
other
effects, underlying Capital Markets revenues decreased by USD 101m, or 24%, largely driven
by lower Leveraged
Capital Markets revenues as sponsor activity sharply
reduced and due to markdowns
on positions.
Global Markets
Global
Markets
revenues
increased
by
USD 457m,
or
25%,
to
USD 2,286m,
driven
by
higher
Derivatives
&
Solutions, Financing and Execution Services
revenues.
Execution Services revenues increased by USD 96m, or 24%, to USD 501m, mainly driven by higher Cash Equities
revenues across all regions, on higher volumes.
Derivatives & Solutions revenues increased
by USD 218m, or 24%, to USD 1,115m,
with higher Foreign Exchange,
Rates and Equity Derivatives revenues, mainly
due to elevated volatility and higher levels of client
activity.
Financing revenues
increased by
USD 144m, or
27%, to
USD 670m, with
increases in
all products,
led by
Prime
Brokerage,
supported by higher client balances.
Equities
Global
Markets
Equities
revenues
increased
by
USD 264m,
or
20%,
to
USD 1,619m,
mainly
driven
by
higher
revenues in Cash Equities,
Prime Brokerage and Equity Derivatives.
Foreign Exchange, Rates and Credit
Global
Markets
Foreign
Exchange, Rates
and
Credit
revenues
increased
by
USD 193m,
or
41%,
to
USD 667m,
mainly driven by increases in Foreign Exchange revenues.
Credit loss expense / release
Net credit loss
expenses were USD 48m, compared with
net credit loss releases
of USD 6m in
the second quarter
of 2024.
Operating expenses
Operating
expenses
increased
by
USD 29m,
or
1%,
to
USD 2,361m,
and
included
a
USD 124m
decrease
in
integration-related expenses. Excluding integration-related
expenses of USD 121m, underlying operating
expenses
were USD 2,241m, an increase of 7%,
mainly due to higher personnel expenses and unfavorable foreign
currency
effects.
Results: 6M25 vs 6M24
Profit
before tax
increased by
USD 247m,
or 24%,
to USD
1,279m, mainly
due to
higher
total
revenues, partly
offset by higher
operating expenses
and net credit
loss expenses. Underlying
profit before tax
was USD 1,222m,
an
i
ncrease of 50%, after excluding USD 290m
of PPA effects and USD 233m of integration-related
expenses.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Investment Bank
31
Total revenues increased by USD 595m,
or 11%, to USD 6,149m, due to higher
revenues in Global Markets, partly
offset by lower revenues in Global Banking, and included an
overall USD 313m decrease in PPA effects. Excluding
these effects, underlying total revenues were
USD 5,860m, an increase of 18%.
Global
Banking
revenues
decreased
by
USD 456m,
or
25%,
to
USD 1,391m,
mainly
driven
by
Capital
Markets
revenues, and included a USD 288m decrease in
accretion of PPA adjustments on financial instruments and
other
PPA effects. Excluding such accretion and other effects, underlying Global Banking revenues were USD
1,084m, a
decrease of 13%.
Advisory revenues decreased by USD 14m, or
3%, to USD 414m, mainly due
to lower private-fund activity levels,
partly offset by higher merger and acquisition
transaction revenues.
Capital Markets revenues decreased by USD 442m, or 31%, to USD 977m, and included a USD 288m decrease in
accretion of PPA
adjustments on financial
instruments and other
PPA effects. Excluding
such accretion and
other
effects, underlying Capital Markets revenues decreased by USD 153m, or 19%, largely driven
by lower Leveraged
Capital Markets revenues as sponsor activity sharply
reduced and due to markdowns
on positions.
Global
Markets
revenues
increased
by
USD 1,051m,
or
28%,
to
USD 4,758m,
driven
by
higher
Derivatives &
Solutions, Financing and Execution Services
revenues.
Execution
Services
revenues
increased
by
USD 210m,
or
26%,
to
USD 1,017m,
mainly
driven
by
higher
Cash
Equities revenues across all regions, on higher
volumes.
Derivatives &
Solutions revenues
increased by
USD 576m, or
31%, to USD 2,407m,
with higher revenues
in Foreign
Exchange and Equity Derivatives, mainly due
to increased volatility and higher levels
of client activity.
Financing revenues increased by USD 265m, or 25%, to
USD 1,334m, with increases in all products, led
by Prime
Brokerage, supported by higher client balances.
Equities
Global
Markets
Equities
revenues
increased
by
USD 717m,
or
26%,
to
USD 3,425m,
mainly
driven
by
higher
revenues in Equity Derivatives, Cash Equities
and Prime Brokerage.
Foreign Exchange, Rates and Credit
Global Markets
Foreign Exchange, Rates
and Credit
revenues increased by
USD 334m, or
33%, to
USD 1,333m,
mainly driven by increases in Foreign Exchange revenues.
Net credit
loss expenses
were USD 83m,
compared with
net credit
loss expenses
of USD 26m
in the
first half
of
2024.
Operating
expenses
increased
by
USD 292m,
or
6%,
to
USD 4,788m,
and
included
a
USD 154m
decrease
in
integration-related expenses. Excluding integration-related
expenses of USD 233m, underlying operating
expenses
were USD 4,555m, an increase of 11%, mainly
due to higher personnel expenses.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Non-core and Legacy
32
Non-core and Legacy
Non-core and Legacy
As of or for the quarter ended
% change from
Year-to-date
USD m, except where indicated
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Results
Total revenues
(82)
284
401
202
1,402
Credit loss expense / (release)
(2)
7
(1)
115
6
35
Operating expenses
170
669
807
(75)
(79)
838
1,818
Operating profit / (loss) before tax
(250)
(391)
(405)
(36)
(38)
(642)
(451)
Underlying results
Total revenues as reported
(82)
284
401
202
1,402
of which: other integration items
1
1
Total revenues (underlying)
1
(83)
284
401
201
1,402
Credit loss expense / (release)
(2)
7
(1)
115
6
35
Operating expenses as reported
170
669
807
(75)
(79)
838
1,818
of which: integration-related expenses
1
252
191
325
32
(22)
444
568
Operating expenses (underlying)
1
(83)
477
481
395
1,250
of which: expenses for litigation, regulatory and similar matters
(435)
2
7
(172)
153
(428)
(188)
Operating profit / (loss) before tax as reported
(250)
(391)
(405)
(36)
(38)
(642)
(451)
Operating profit / (loss) before tax (underlying)
1
1
(200)
(80)
(199)
117
Performance measures and other information
Average attributed equity (USD bn)
3
5.8
7.5
10.1
(22)
(43)
6.6
10.4
Risk-weighted assets (USD bn)
32.7
34.2
49.6
(4)
(34)
32.7
49.6
Leverage ratio denominator (USD bn)
29.4
34.9
80.0
(16)
(63)
29.4
80.0
1 Refer to “Alternative
performance measures” in
the appendix to
this report for
the definition and
calculation method.
2 Includes a USD 427m
net release of
provisions and contingent
liabilities related to
the
resolution of a legacy Credit Suisse cross-border matter. Refer to “Note 14 Provisions and contingent liabilities” in the “Consolidated financial statements”
section of this report for more information.
3 Refer to the
“Equity attribution” section of this report for more information about the equity attribution framework.
Composition of Non-core and Legacy
Total assets
RWA
LRD
USD bn
30.6.25
31.3.25
30.6.25
31.3.25
30.6.25
31.3.25
Exposure category
Equities
1.2
1.4
0.9
1.0
0.9
0.9
Macro
13.6
16.9
3.4
3.6
5.1
4.1
Loans
1.3
1.8
1.2
1.8
1.3
1.8
Securitized products
3.5
3.5
2.4
2.9
3.9
3.8
Credit
0.3
0.2
0.3
0.2
0.3
0.2
High-quality liquid assets
17.2
22.9
17.2
22.9
Operational risk
24.0
24.0
Other
1.2
1.2
0.5
0.5
0.9
1.1
Total
38.3
47.9
32.7
34.2
29.4
34.9
Results: 2Q25 vs 2Q24
Loss before tax
was USD 250m, compared with
a loss before
tax of USD 405m.
Underlying profit before
tax was
USD 1m, after excluding integration-related expenses of USD 252m, compared with an underlying loss before tax
of USD 80m.
Total revenues
Total revenues were
negative USD 82m, compared with
total revenues of
USD 401m, mainly reflecting lower
net
gains from position exits and lower
net interest income from securitized
products and credit products, partly
offset
by lower liquidity and funding costs, as a
result of a smaller portfolio.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Non-core and Legacy
33
Credit loss expense / release
Net credit loss releases were
USD 2m, compared with net credit
loss releases of USD 1m in
the second quarter of
2024.
Operating expenses
Operating expenses were
USD 170m, a decrease
of USD 637m, or
79%, mainly due
to releases
in provisions for
litigation, regulatory and similar matters,
as well as lower personnel expenses, risk management costs, technology
costs
and
compliance
and
regulatory
costs,
and
included
a
USD 73m
decrease
in
integration-related
expenses.
Excluding integration-related expenses of USD
252m, underlying operating expenses were
negative USD 83m.
Risk-weighted assets and leverage ratio denominator:
2Q25 vs 1Q25
The active unwinding of Non-core and Legacy assets resulted in a decrease
in risk-weighted assets (RWA) and the
leverage ratio
denominator (the LRD).
RWA decreased
by USD 1.5bn
to USD 32.7bn,
mostly due
to decreases
in
the loan, securitized
product and macro
portfolios. The LRD
decreased by USD 5.4bn
to USD 29.4bn, mainly
driven
by reductions in high-quality liquid assets.
Results: 6M25 vs 6M24
Loss before
tax was
USD 642m, compared
with a
loss before
tax of
USD 451m. Underlying
loss before
tax was
USD 199m, after excluding
integration-related expenses
of USD 444m, compared
with underlying profit
before tax
of USD 117m.
Total revenues were USD 202m, a
decrease of USD 1,200m, mainly reflecting
lower net gains from position exits
and
lower net interest income from securitized
products and credit products, partly offset
by lower liquidity and funding
costs, as a result
of a smaller portfolio.
Total revenues
in the first half of 2025
included a gain
of USD 97m from
the
sale of Select Portfolio
Servicing, the
US mortgage servicing
business of Credit
Suisse. Total
revenues in the first
half
of 2024
included
a net
gain of
USD 272m,
after accounting
for the
purchase
price allocation
adjustments
recorded
at
the closing
of
the
acquisition of
the Credit
Suisse Group,
from the
sale of
assets from
the
former Credit
Suisse
securitized products group to Apollo Management
Holdings and certain other entities (collectively
Apollo).
Net credit
loss expenses
were USD 6m,
compared with
net credit
loss expenses
of USD 35m
in the
first half
of 2024.
Operating expenses were
USD 838m, a decrease
of USD 980m, or
54%, mainly due
to releases
in provisions for
litigation, regulatory and similar matters, as well as lower personnel expenses, technology costs, risk management
costs, compliance and
regulatory costs, premises
costs and operations
costs,
and included a USD 124m
decrease in
integration-related expenses. Excluding integration-related
expenses of USD 444m, underlying operating
expenses
w
ere USD 395m, a decrease of 68%.
UBS Group second quarter 2025 report
|
UBS Group performance, business divisions
and Group Items | Group Items
34
Group Items
Group Items
As of or for the quarter ended
% change from
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
1Q25
2Q24
30.6.25
30.6.24
Results
Total revenues
(180)
(284)
(392)
(37)
(54)
(465)
(747)
Credit loss expense / (release)
0
(1)
0
(1)
(2)
Operating expenses
(13)
15
(15)
(9)
2
(48)
Operating profit / (loss) before tax
(167)
(299)
(377)
(44)
(56)
(465)
(698)
Underlying results
Total revenues as reported
(180)
(284)
(392)
(37)
(54)
(465)
(747)
of which: PPA effects and other integration items
1
17
30
(8)
(42)
47
(12)
Total revenues (underlying)
2
(198)
(314)
(384)
(37)
(49)
(512)
(735)
Credit loss expense / (release)
0
(1)
0
(1)
(2)
Operating expenses as reported
(13)
15
(15)
(9)
2
(48)
of which: integration-related expenses
2
(4)
3
(2)
(1)
(1)
Operating expenses (underlying)
2
(10)
12
(13)
(24)
2
(47)
of which: expenses for litigation, regulatory and similar matters
1
72
3
73
3
Operating profit / (loss) before tax as reported
(167)
(299)
(377)
(44)
(56)
(465)
(698)
Operating profit / (loss) before tax (underlying)
2
(188)
(326)
(371)
(42)
(49)
(513)
(687)
1
Includes accretion of PPA adjustments on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration.
2 Refer to “Alternative performance measures”
in the appendix to this report for the definition and calculation method.
Results: 2Q25 vs 2Q24
Loss before tax was USD 167m, mainly driven by deferred tax asset (DTA) funding costs. The
USD 210m, or 56%,
decrease in loss
before tax between
the quarters
was largely due
to mark-to-market
gains from Group
hedging and
own debt,
compared with
mark-to-market losses
in the
second quarter
of 2024.
Underlying loss
before tax
was
USD 188m, after excluding
from total revenues
USD 17m of purchase
price allocation effects
and other integration
items and
also excluding
from operating
expenses negative
USD 4m of
integration-related expenses.
This compared
with an underlying loss before tax of USD 371m
in the second quarter of 2024.
Income
from
Group
hedging
and
own
debt,
including
hedge
accounting
ineffectiveness,
was
net
USD 8m,
compared
with
net
negative
income
of
USD 194m.
The
flat
result
in
the
second
quarter
of
2025
was
due
to
offsetting impacts on portfolio-level economic
hedges and mark-to-market effects
on own credit.
Results: 6M25 vs 6M24
Loss before tax
was USD 465m, mainly driven
by DTA funding
costs, mark-to-market losses from
Group hedging
and own debt, and an increase in provisions
for litigation, regulatory and similar
matters.
The USD 233m, or 33%,
decrease in
loss before
tax between
the periods
was largely
due to
lower mark-to-market
losses from
Group hedging
and own
debt, partly
offset by
an increase
in provisions
for litigation,
regulatory and
similar matters.
Underlying
loss before tax
was USD 513m, after excluding
from total revenues
USD 47m of purchase
price allocation effects
and other
integration items and
also excluding
from operating
expenses negative
USD 1m of
integration-related
expenses. This compared with an underlying
loss before tax of USD 687m in the first
half of 2024.
Income
from
Group
hedging
and
own
debt,
including
hedge
accounting
ineffectiveness,
was
net
negative
USD 110m, compared with net negative income of USD 385m. The losses in
the first half of 2025 were driven by
mark-to-market effects on own credit and portfolio-level
economic hedges.
UBS Group second quarter 2025 report
|
Risk, capital, liquidity and funding, and balance
sheet
35
Risk, capital, liquidity and
funding, and balance sheet
Management report
Table of contents
3
6
Risk management and control
36
Credit risk
38
Market risk
39
Country risk
40
Non-financial risk
41
Capital management
43
Total loss-absorbing capacity
46
Risk-weighted assets
48
Leverage ratio denominator
49
Equity attribution
50
Liquidity and funding management
50
Strategy, objectives and governance
50
Liquidity coverage ratio
50
Net stable funding ratio
51
Balance sheet and off-balance sheet
51
Balance sheet assets
51
Balance sheet liabilities
52
Equity
53
Off-balance sheet
53
Share information and earnings per share
UBS Group second quarter 2025 report
|
Risk, capital, liquidity and funding, and balance
sheet | Risk management and control
36
Risk management and control
This
section
provides
information
about
key
developments
during
the
reporting
period
and
should
be
read
in
conjunction with
the “Risk
management and
control” section
of the
UBS Group
Annual Report
2024, available
under “Annual
reporting” at
ubs.com/investors
, and
the “Recent
developments” section of
this report
for more
information about the integration of Credit
Suisse.
Persistently high
geopolitical tensions and
trade policy developments
marked the second
quarter of
- While
equity
markets
recovered
from
the
sharp
sell-off
at
the
start
of
the
quarter
and
volatility
eased,
significant
uncertainty remains. The
further weakening of the
US dollar contributed to
additional passive increases
in reported
exposures
from
our
non-US-dollar-denominated
portfolios.
We
are
closely
monitoring
these
developments,
continually assessing portfolio impacts and considering
potential mitigating actions.
Credit risk
Overall banking products exposure
Overall banking products exposure increased by USD 68bn compared with 31 March 2025, to USD 1,104bn as of
30 June 2025, primarily
reflecting currency
effects across banking
products,
partly offset by
outflows in balances
at
central banks related to purchases of high-quality
liquid asset portfolio securities.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about balance sheet
movements
›
Refer to the “Group performance” section and “Note
8
Expected credit loss measurement” in the “Consolidated
financial statements” section of this report for more information about credit loss expense / release
Loan underwriting
In the
Investment Bank, mandated
loan underwriting commitments
on a
notional basis
decreased by
USD 1.4bn
compared with 31 March
2025, to USD 7.0bn
as of 30 June
2025, driven by
deal syndications,
partly offset by
new
mandates. As of 30 June 2025, USD 1.1bn
of these commitments had not been distributed
as originally planned.
Loan underwriting exposures
in the Investment
Bank are classified
as held for
trading, with
fair values reflecting
the
market conditions
at the
end of
the quarter.
Credit hedges
are in place
to help
protect against
fair value
movements
in the portfolio.
UBS Group second quarter 2025 report
|
Risk, capital, liquidity and funding, and balance
sheet | Risk management and control
37
Banking and traded products exposure in the business divisions and Group Items
30.6.25
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core
and Legacy
Group
Items
Total
Banking products exposure, gross
1,2
483,163
464,751
2,073
116,989
14,446
22,760
1,104,181
of which: loans and advances to customers (on-balance sheet)
313,604
313,364
10
18,652
959
1,802
648,391
of which: guarantees and irrevocable loan commitments (off-balance sheet)
20,740
48,416
5
33,792
1,216
22,324
126,493
Committed unconditionally revocable credit lines
3
82,295
68,011
0
461
5
0
150,771
Traded products exposure, gross
2,4
15,642
3,016
0
36,005
54,663
of which: over-the-counter derivatives
11,720
2,529
0
10,185
24,434
of which: securities financing transactions
131
0
0
16,562
16,693
of which: exchange-traded derivatives
3,790
487
0
9,259
13,535
Total credit-impaired exposure, gross
1
1,578
4,003
0
611
920
0
7,112
of which: stage 3
1,553
3,691
0
561
59
0
5,864
of which: PCI
25
312
0
50
861
0
1,248
Total allowances and provisions for expected credit losses
300
1,845
0
472
342
6
2,966
of which: stage 1
101
333
0
135
4
6
579
of which: stage 2
63
270
0
141
0
0
474
of which: stage 3
125
1,202
0
194
52
0
1,574
of which: PCI
10
40
0
2
286
0
338
31.3.25
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core
and Legacy
Group
Items
Total
Banking products exposure, gross
1,2
464,710
426,822
1,574
104,477
17,816
21,271
1,036,669
of which: loans and advances to customers (on-balance sheet)
295,424
281,423
10
17,676
1,195
521
596,249
of which: guarantees and irrevocable loan commitments (off-balance
sheet)
20,082
44,769
11
35,088
1,345
20,755
122,049
Committed unconditionally revocable credit lines
3
78,171
65,381
0
546
4
0
144,102
Traded products exposure, gross
2,4
15,461
3,303
0
35,437
54,201
of which: over-the-counter derivatives
11,835
2,875
0
10,061
24,771
of which: securities financing transactions
18
0
0
16,107
16,126
of which: exchange-traded derivatives
3,607
428
0
9,269
13,304
Total credit-impaired exposure, gross
1
1,391
3,825
0
609
959
0
6,784
of which: stage 3
1,316
3,471
0
565
63
0
5,415
of which: PCI
75
354
0
45
896
0
1,369
Total allowances and provisions for expected credit losses
289
1,588
0
421
326
5
2,629
of which: stage 1
106
276
0
103
3
5
493
of which: stage 2
56
247
0
151
2
0
455
of which: stage 3
120
1,024
0
164
49
0
1,357
of which: PCI
6
42
0
3
273
0
324
1 IFRS 9 gross exposure
for banking products includes the following
financial instruments within the scope of expected
credit loss measurement: balances at central banks, amounts due
from banks, loans and advances
to customers, other financial
assets at amortized cost, guarantees
and irrevocable loan commitments.
2 Internal management view of
credit risk, which differs in certain
respects from IFRS Accounting
Standards.
3 Commitments that can be canceled by UBS at any time but expose UBS to credit risk if the client has the ability to draw the facility before UBS
can take action. These commitments are subject to expected credit loss
requirements.
4 As counterparty risk for traded products is managed at the counterparty level, no further split between exposures in the Investment
Bank, Non-core and Legacy, and Group Items is provided.
Collateralization of Loans and advances to customers
1
Global Wealth Management
Personal & Corporate Banking
USD m, except where indicated
30.6.25
31.3.25
30.6.25
31.3.25
Secured by collateral
308,647
289,609
276,323
246,679
Residential real estate
108,943
101,415
220,740
196,775
Commercial / industrial real estate
10,814
9,218
42,381
37,903
Cash
30,957
28,025
3,062
2,732
Equity and debt instruments
131,093
124,274
2,892
2,598
Other collateral
2
26,840
26,677
7,249
6,671
Subject to guarantees
744
1,723
6,229
7,092
Uncollateralized and not subject to guarantees
4,213
4,092
30,812
27,651
Total loans and advances to customers, gross
313,604
295,424
313,364
281,423
Allowances
(224)
(212)
(1,537)
(1,334)
Total loans and advances to customers, net of allowances
313,380
295,212
311,827
280,089
Collateralized loans and advances to customers as a percentage of
total loans and advances to customers, gross (%)
98.4
98.0
88.2
87.7
1 Collateral arrangements generally incorporate a range of collateral, including
cash, equity and debt instruments, real estate, and other collateral. For the
purposes of this disclosure, UBS applies a risk-based approach
that generally prioritizes
collateral according to
its liquidity profile.
In the case
of loan facilities
with funded and
unfunded elements,
the collateral is
first allocated to
the funded element.
For legacy Credit
Suisse
infrastructure, a
risk-based approach is
applied that generally
prioritizes real estate
collateral and prioritizes
other collateral according
to its liquidity
profile. In the
case of loan
facilities with funded
and unfunded
elements, the collateral
is proportionately allocated.
2 Includes but is not limited
to life insurance contracts,
rights in respect of
subscription or capital commitments
from fund partners,
inventory, gold and
other
commodities.
UBS Group second quarter 2025 report
|
Risk, capital, liquidity and funding, and balance
sheet | Risk management and control
38
Market risk
Average management value-at-risk (VaR) (1-day, 95% confidence
level) of the UBS Group excluding certain legacy
Credit Suisse components in
the second quarter of 2025
decreased to USD 8m from
USD 9m, mainly driven by
the
Investment Bank’s Global Markets business.
Average management VaR (1-day, 98% confidence level) of the aforementioned legacy Credit Suisse components
in the
second quarter
of 2025
decreased to
USD 3m from
USD 4m, driven
by de-risking
within Non-core
and Legacy.
Management value-at-risk (1-day, 95% confidence level, 5 years of historical data) of the business divisions and
Group Items excluding certain legacy Credit Suisse components, by general market risk type
1,2
Average by risk type
USD m
Min.
Max.
Period end
Average
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Global Wealth Management
1
3
2
2
0
2
2
0
0
Personal & Corporate Banking
0
0
0
0
0
0
0
0
0
Asset Management
0
0
0
0
0
0
0
0
0
Investment Bank
5
15
10
7
1
13
7
4
2
Non-core and Legacy
1
2
1
1
0
1
1
0
0
Group Items
3
4
4
3
1
3
2
1
0
Diversification effect
3,4
(6)
(5)
(1)
(4)
(4)
(1)
0
Total as of 30.6.25
5
15
11
8
1
15
9
4
2
Total as of 31.3.25
2
15
8
9
2
15
11
5
3
Management value-at-risk (1-day, 98% confidence level, 2 years of historical data) of certain legacy Credit
Suisse
components of the business divisions and Group Items, by general market risk type
1,2
Average by risk type
USD m
Min.
Max.
Period end
Average
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Global Wealth Management
1
1
1
1
1
0
0
0
0
Personal & Corporate Banking
0
1
0
0
0
0
0
0
0
Asset Management
0
0
0
0
0
0
0
0
0
Investment Bank
1
2
1
1
1
0
1
0
0
Non-core and Legacy
1
2
1
1
0
2
1
1
0
Group Items
0
0
0
0
0
0
0
0
0
Diversification effect
3,4
(1)
(1)
0
0
0
0
0
Total as of 30.6.25
2
4
2
3
1
2
2
1
0
Total as of 31.3.25
3
6
3
4
1
2
3
1
0
1 The legacy Credit Suisse components
not included in the UBS Group management
VaR predominantly reflect the portfolio
in Non-core and Legacy. These
positions continue to be managed on legacy Credit
Suisse
infrastructure based on legacy Credit Suisse management VaR methodology until full migration of these positions to UBS infrastructure or the liquidation of the positions. This process is ongoing, and the management
VaR of the legacy Credit Suisse components is expected to continue decreasing over
time.
2 Statistics at individual levels may not be summed
to deduce the corresponding aggregate figures. The minima and maxima
for each level may occur on different days,
and, likewise, the VaR
for each business division or risk type,
being driven by the extreme loss tail of the
corresponding distribution of simulated profits and losses
for that
business division or risk type, may well
be driven by different days in the
historical time series, rendering invalid
the simple summation of figures to arrive
at the aggregate total.
3 The difference between the
sum
of the standalone VaR
for the business divisions and
Group Items and the total
VaR.
4 As the minima and
maxima for different business
divisions and Group Items occur
on different days, it
is not meaningful to
calculate a portfolio diversification effect.
Economic value of equity and net interest income
sensitivity
The economic value of equity
(EVE) sensitivity in the UBS
Group banking book to a
+1-basis-point parallel shift in
yield
curves was
negative USD 40.2m
as of
30 June 2025,
compared with
negative USD 38.7m
as of
31 March
- This
excluded the
sensitivity of
USD 6.9m from
additional tier 1
(AT1) capital
instruments (as
per specific
Swiss
Financial Market Supervisory Authority (FINMA)
requirements) in contrast to general Basel Committee on Banking
Supervision (BCBS) guidance.
Exposure in the banking
book of the UBS
Group increased during the
second quarter
of 2025, predominantly driven by an
appreciation of the Swiss franc against the US
dollar and decreasing market
rates.
The majority of
our interest rate
risk in
the banking
book (IRRBB) as
of 30 June 2025
was a
reflection of the
net
asset
duration
that
we
ran
to
offset
our
modeled
sensitivity
of
net
USD 32.3m
(31 March
2025:
USD 30.3m)
assigned
to
our
equity,
goodwill
and
real
estate,
with
the
aim
of
generating
a
stable
net
interest
income
contribution. Of this, USD
18.7m and USD 11.6m
were attributable to
the US dollar and the
Swiss franc portfolios,
r
espectively, (31 March 2025: USD 18.1m and
USD 10.5m, respectively).
UBS Group second quarter 2025 report
|
Risk, capital, liquidity and funding, and balance
sheet | Risk management and control
39
In addition to
the aforementioned
sensitivity, we
calculate the
six interest
rate shock
scenarios prescribed
by FINMA.
The “Parallel up” scenario, assuming all positions were measured at fair value, was
the most severe as of 30 June
2025 and would have resulted in a change in EVE of negative USD 7.3bn, or 8.0% of our tier 1 capital (31 March
2025: negative USD 7.1bn, or 8.1%), which
is well below the
15% threshold as per
the BCBS supervisory outlier
test for high levels of IRRBB.
The immediate
effect on
our tier 1
capital in
the “Parallel
up” scenario
as of
30 June 2025
would have
been a
decrease
of
approximately
USD 1.0bn,
or
1.1%,
in
our
tier 1
capital
(31 March
2025:
USD 0.7bn,
or
0.8%),
reflecting the fact that the vast
majority of our banking book is accrual
accounted or subject to hedge accounting.
The “Parallel up” scenario would subsequently have a positive effect on net interest income, assuming a constant
balance sheet.
As the overall interest rate risk sensitivity shows a greater
impact from slower asset repricing compared with faster
liabilities
repricing,
the
“Parallel
down“
scenario
was
the
most
beneficial
as
of
30 June
2025
and
would
have
resulted
in
a
change
in
EVE
of
positive
USD 7.6bn
(31 March
2025:
positive
USD 7.5bn)
and
a
small
positive
immediate effect on our tier 1 capital.
›
Refer to “Interest rate risk in the banking book” in the “Risk management and control”
section of the UBS Group
Annual Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more information about the
management of interest rate risk in the banking book
›
Refer to “Sensitivity to interest rate movements” in the “Group performance” section of this report for more
information about the effects of increases in interest rates on the net interest income of our banking book
Interest rate risk – banking book
30.6.25
USD m
Effect on EVE
1
– FINMA
Effect on EVE
1
– BCBS
Scenarios
CHF
EUR
GBP
USD
Other
Total
Additional tier 1 (AT1)
capital instruments
Total
+1 bp
(11.1)
(1.6)
(0.3)
(26.6)
(0.5)
(40.2)
6.9
(33.3)
Parallel up
2
(1,624.3)
(301.8)
(65.7)
(5,228.7)
(107.4)
(7,327.9)
1,250.0
(6,077.8)
Parallel down
2
1,726.2
322.4
56.5
5,407.5
110.6
7,623.3
(1,487.7)
6,135.5
Steepener
3
(875.9)
(16.3)
(6.6)
(1,333.4)
2.1
(2,230.2)
271.3
(1,958.9)
Flattener
4
574.6
(32.6)
(4.8)
119.2
(23.9)
632.5
15.0
647.5
Short-term up
5
(97.6)
(121.6)
(25.1)
(2,019.2)
(62.5)
(2,326.0)
556.2
(1,769.8)
Short-term down
6
68.0
121.3
23.9
2,123.4
63.9
2,400.4
(579.0)
1,821.4
31.3.25
USD m
Effect on EVE
1
– FINMA
Effect on EVE
1
– BCBS
Scenarios
CHF
EUR
GBP
USD
Other
Total
Additional tier 1 (AT1)
capital instruments
Total
+1 bp
(9.9)
(1.6)
(0.3)
(26.6)
(0.3)
(38.7)
7.4
(31.3)
Parallel up
2
(1,449.0)
(303.5)
(62.3)
(5,182.3)
(79.6)
(7,076.8)
1,334.4
(5,742.4)
Parallel down
2
1,541.5
335.4
74.9
5,455.0
81.1
7,487.8
(1,593.0)
5,894.7
Steepener
3
(786.0)
(21.3)
(15.2)
(1,399.0)
(20.0)
(2,241.6)
297.3
(1,944.3)
Flattener
4
519.3
(28.6)
3.3
199.5
3.2
696.8
7.9
704.6
Short-term up
5
(83.8)
(119.7)
(19.3)
(1,946.8)
(27.4)
(2,197.0)
587.6
(1,609.4)
Short-term down
6
53.7
119.1
19.2
2,048.1
28.0
2,268.1
(611.7)
1,656.4
1 Economic value
of equity.
2 Rates across all
tenors move by ±150
bps for Swiss
franc, ±200 bps for
euro and US
dollar, and
±250 bps for pound
sterling.
3 Short-term rates
decrease and long-term rates
increase.
4 Short-term rates increase and long-term rates decrease.
5 Short-term rates increase more than long-term rates.
6 Short-term rates decrease more than long-term rates.
Country risk
We remain
watchful of
a range
of geopolitical
developments and
political changes
in a
number of
countries, as
well as
global trade
relations,
including policies
related to
tariffs, international
tensions from
the Russia–Ukraine
war, and conflicts in
the Middle East, and we
continued to monitor potential second-order impacts in the
second
quarter of 2025.
As of 30 June
2025, our direct
exposure to Israel
was less than
USD 0.5bn and
our direct
exposure
to Gulf Cooperation Council countries was less than USD 5bn, while our direct exposure to Egypt and Jordan was
limited, and
there was
no direct
exposure to
Iran, Iraq,
Lebanon or
Syria. Our
direct exposure
to Russia
as of
30 June
2025 was less
than USD 0.5bn,
and our direct
exposure to Belarus
and Ukraine remained
immaterial.
As of 30 June
2025, our exposure to emerging market countries was less than 10% of our total country exposure and mainly to
c
ountries in Asia.
UBS Group second quarter 2025 report
|
Risk, capital, liquidity and funding, and balance
sheet | Risk management and control
40
Uncertainty about economic policy remained elevated. In the second quarter of 2025, inflation was broadly stable
in
major
Western
economies,
although
concerns
about
the
potential
impact
of
trade
tensions
on
prices
and
economic growth persisted.
The Chinese economy rebounded somewhat in the second quarter of 2025, driven in
part by its export industry rushing to ship goods quickly,
ahead of possible tariff increases; concerns remain about
the property sector and strains on local government
finances.
›
Refer to the “Risk management and control” section of the UBS Group Annual Report 2024, available under
“Annual reporting” at
ubs.com/investors
, for more information
Non-financial risk
Compliance risk
We are committed
to achieving fair
outcomes for
our clients,
upholding market
integrity and cultivating
the highest
standards
of
employee
conduct.
To
support
these
objectives,
we
maintain
a
firm-wide
conduct
risk
framework
designed to promote consistent standards
and foster a strong culture of accountability.
We continue to
prioritize areas
such as suitability
risk, product governance,
cross-divisional service
offerings, quality
of advice and price
transparency.
These remain key focus
areas for UBS and
the broader financial industry. Cross-
border risk (including the risk of unintended permanent
establishment) remains an area of regulatory attention
for
global financial
institutions,
including a
focus on
market
access, such
as third-country
market access
to the
European
Economic Area.
We maintain a
series of controls
designed to
address these risks,
and we are
increasing the number
of automated controls, thereby increasing overall
control coverage.
Reputational
risk,
regulatory
fragmentation
related
to
environmental,
social
and
governance
topics,
and
the
elevated risk of greenwashing arising from our service offering,
disclosures and commitments remain key risks for
2025.
Financial crime risk
Financial crime, including
money laundering, terrorist
financing, sanctions violations,
fraud, bribery and corruption,
presents a major risk, as technological innovation and geopolitical developments increase the complexity of doing
business and heightened regulatory attention
continues.
An effective financial crime prevention
program therefore remains essential,
and we continue to focus on
strategic
enhancements to our global anti-money-laundering, know-your-client and sanctions
programs. Money laundering
and financial
fraud techniques
are becoming
increasingly sophisticated,
and heightened
geopolitical volatility
makes
the sanctions landscape more
complex. The extensive and
continuously evolving sanctions arising
from the Russia–
Ukraine war require constant
attention to prevent circumvention
risks, while worsening
conflicts in the Middle
East
may
further
increase
terrorist-financing
risks.
Complex
investment
and
technology
restrictions,
coupled
with
relatively limited asset-freeze
sanctions, apply
in the
case of
China, which
has in
response imposed both
its own
restrictions and domestic laws countering
the sanctions,
and we will continue to closely monitor this situation
as it
evolves.
Operational risk
There is an increased risk of cyber-related operational
disruption to business activities at our
locations and those of
third-party suppliers due
to operating a
more complex set
of legal entities
since the acquisition
of Credit Suisse and
the increasingly dynamic
threat environment.
This is intensified
by current geopolitical
factors and evidenced
by the
continuing high volumes and
increasing sophistication of
cyberattacks against financial
institutions globally and on
third-party service providers. A notable example of this is a
recent data breach at Chain IQ,
one of our third-party
suppliers. Our
incident review
has not identified
any impact
on UBS’s
clients or systems
to date, but
the data
breach
included the exposure of certain non-sensitive
UBS employee information.
We remain on
heightened alert to
respond to and
mitigate elevated cyber-
and information-security threats, and
continue to invest
in improving our
technology infrastructure and information-security
governance to strengthen
our prevention,
detection and
response capabilities
against attacks.
In addition,
we operate
a global
framework
designed to drive
enhancements in operational
resilience across all
business divisions
and relevant jurisdictions,
and
we
work
with
the
third-party service
providers
that
are
of
critical
importance
to
our
operations
to
assess
their
operational resilience in line with our standards
and to mitigate any identified risks.
UBS Group second quarter 2025 report
|
Risk, capital, liquidity and funding, and balance
sheet | Risk management and control
41
The
increasing
interest
in
data-driven
advisory
processes
and
the
use
of
artificial
intelligence
(AI)
and
machine
learning are introducing new questions related
to the fairness of AI
algorithms, data life-cycle management, data
ethics, data privacy and security, and records
management.
Legal entity
integration, including
that of
existing Credit
Suisse businesses,
and the
closing of
legacy businesses
introduce operational
complexity and
the risk
that businesses
in wind-down
are not
effectively managed.
These
risks continue
to be
carefully monitored
in addition
to the
delivery of
consolidated financial
and regulatory
reporting
submissions.
Capital management
The
disclosures
in
this
section
are
provided
for
UBS Group AG
on
a
consolidated
basis
and
focus
on
key
developments during
the reporting
period and
information in
accordance with
the Basel III
framework, as
applicable
to Swiss systemically relevant banks (SRBs).
They should be read in conjunction
with “Capital management” in the
“Capital, liquidity and funding,
and balance sheet” section
of the UBS Group
Annual Report 2024, available
under
“Annual
reporting”
at
ubs.com/investors
,
which
provides
more
information
about
our
capital
management
objectives, planning and activities, as
well as the Swiss SRB total loss-absorbing capacity
(TLAC) framework.
In Switzerland, the
amendments to the Capital
Adequacy Ordinance (the CAO) that
incorporate the final Basel III
standards into
Swiss law,
including the
five new
ordinances that
contain the
implementing provisions
for the
revised
CAO, entered into force on 1 January 2025.
UBS Group AG
is
a
holding
company
and
conducts
substantially
all
of
its
operations
through
UBS AG
and
subsidiaries
thereof.
UBS Group AG
and
UBS AG
contribute
a
significant portion
of
their
respective
capital
and
provide substantial
liquidity to
such subsidiaries.
Many of
these subsidiaries
are subject
to local
regulations requiring
compliance with minimum capital, liquidity
and similar requirements.
›
Refer to the 30 June 2025 Pillar 3 Report, which will be available as of 28 August 2025 under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about additional regulatory disclosures for UBS Group AG on a
consolidated basis, as well as the significant regulated subsidiaries and sub-groups of UBS Group AG
›
Refer to the
UBS AG second
quarter 2025
report, which
will be available
as of 5 August
2025 under
“Quarterly
reporting”
at
ubs.com/investors
, for more information
about capital
and other regulatory
information
for UBS AG
consolidated,
in accordance
with the Basel
III framework,
as applicable
to Swiss
SRBs
›
Refer to “Recent developments related to the implementation of the final Basel III standards” in the “Recent
developments” section of this report for more information about the incorporation of the final Basel III standards
We
are
subject
to
the
going
and
gone
concern
requirements
of
the
Swiss
CAO,
which
include
additional
requirements applicable to Swiss
SRBs. The table below provides
the risk-weighted asset (RWA)-
and leverage ratio
denominator (LRD)-based requirements and
information as of 30 June 2025.
Effective 1 January 2025,
a Pillar 2 capital
add-on for uncollateralized
exposures to hedge
funds, private equity
and
family offices has been introduced.
This resulted in an increase of
18 basis points in the RWA-based
going concern
capital requirement as of 30 June 2025.
UBS Group second quarter 2025 report
|
Risk, capital, liquidity and funding, and balance
sheet | Capital management
42
Swiss SRB going and gone concern requirements and information
As of 30.6.25
RWA
LRD
USD m, except where indicated
in %
in %
Required going concern capital
Total going concern capital
14.94
1
75,367
5.00
1
82,904
Common equity tier 1 capital
10.59
2
53,407
3.50
3
58,033
of which: minimum capital
4.50
22,702
1.50
24,871
of which: buffer capital
5.50
27,747
2.00
33,162
of which: countercyclical buffer
0.46
2,338
Maximum additional tier 1 capital
4.35
2
21,960
1.50
24,871
of which: additional tier 1 capital
3.50
17,657
1.50
24,871
of which: additional tier 1 buffer capital
0.80
4,036
Eligible going concern capital
Total going concern capital
18.18
91,721
5.53
91,721
Common equity tier 1 capital
14.41
72,709
4.39
72,709
Total loss-absorbing additional tier 1 capital
3.77
19,012
1.15
19,012
of which: high-trigger loss-absorbing additional tier 1 capital
3.77
19,012
1.15
19,012
Required gone concern capital
Total gone concern loss-absorbing capacity
4,5,6
10.73
7
54,108
3.75
7
62,178
of which: base requirement including add-ons for market share and
LRD
10.73
54,108
3.75
62,178
Eligible gone concern capital
Total gone concern loss-absorbing capacity
19.71
99,450
6.00
99,450
Total tier 2 capital
0.04
196
0.01
196
of which: non-Basel III-compliant tier 2 capital
0.04
196
0.01
196
TLAC-eligible senior unsecured debt
19.67
99,254
5.99
99,254
Total loss-absorbing capacity
Required total loss-absorbing capacity
25.66
129,475
8.75
145,083
Eligible total loss-absorbing capacity
37.89
191,171
11.53
191,171
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
504,500
Leverage ratio denominator
1,658,089
1 Includes applicable add-ons of 1.62% for risk-weighted assets
(RWA) and 0.50% for leverage ratio
denominator (LRD), of which 18 basis points for RWA reflect
the Pillar 2 capital add-on for the residual exposure
(after collateral mitigation)
to hedge funds,
private equity and
family offices,
effective 1 January
2025.
2 Includes the
Pillar 2 add-on for
the residual exposure (after
collateral mitigation) to
hedge funds, private
equity and family offices of 0.12%
for CET1 capital and 0.05% for
AT1 capital, effective 1
January 2025. For AT1
capital, under Pillar 1 requirements,
a maximum of 4.3% of AT1
capital can be used to meet
going
concern requirements; 4.35% includes the
aforementioned Pillar 2 capital
add-on.
3 Our CET1 leverage ratio
requirement of 3.50% consists of
a 1.5% base requirement,
a 1.5% base buffer
capital requirement,
a 0.25% LRD add-on requirement and a 0.25% market share add-on requirement based on our Swiss credit business.
4 A maximum of 25% of the gone concern requirements can be met with instruments that have
a remaining maturity
of between one
and two years.
Once at least
75% of
the minimum
gone concern
requirement has been
met with
instruments that
have a remaining
maturity of greater
than two
years, all
instruments that have a remaining
maturity of between one
and two years remain
eligible to be included
in the total gone concern
capital.
5 From 1 January
2023, the resolvability discount
on the gone concern
capital requirements for systemically important
banks (SIBs) has been replaced with
reduced base gone concern capital requirements
equivalent to 75% of the total
going concern requirements (excluding countercyclical
buffer requirements and the Pillar
2 add-on).
6 As of July 2024,
the Swiss Financial Market
Supervisory Authority (FINMA) has the
authority to impose a
surcharge of up to 25%
of the total going concern
capital
requirements (excluding countercyclical buffer requirements and the Pillar 2 add-on) should obstacles to an SIB’s resolvability be identified in future resolvability assessments.
7 Includes applicable add-ons of 1.08%
for RWA and 0.38% for LRD.
Additional capital requirements for
UBS Group AG consolidated under current
requirements
As a result of the acquisition of
the Credit Suisse Group in 2023,
the capital add-ons applicable to SRBs based on
market
share
and
LRD
for
UBS
Group AG consolidated
will
increase commensurate
with
the
Group’s increased
market share
and higher
LRD after
the acquisition.
Based on
the existing
regulations, we currently
estimate that
this will add around USD 9bn to the Group’s tier 1 capital requirement, when fully phased in. The
phase-in of the
increased capital
requirements will
commence from
1 January 2026
and
will be
completed by
the beginning
of
2030, at the latest. The capital add-ons for
market share and LRD are subject to
confirmation.
›
Refer to “Developments in Switzerland aimed at strengthening financial stability” in the “Recent developments”
section of this report for more information
UBS Group second quarter 2025 report
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43
Total loss-absorbing capacity
The table below provides Swiss SRB going and gone concern information based on the Swiss SRB
framework and
requirements that are discussed under “Capital management” in the “Capital, liquidity and funding, and
balance
sheet” section of
the UBS Group
Annual Report 2024,
available under “Annual
reporting” at
ubs.com/investors
.
Changes
to
the
Swiss
SRB
framework
and
requirements
after
the
publication
of
our
Annual
Report
2024
are
described above.
Swiss SRB going and gone concern information
USD m, except where indicated
30.6.25
31.3.25
31.12.24
Eligible going concern capital
Total going concern capital
91,721
87,837
87,739
Total tier 1 capital
91,721
87,837
87,739
Common equity tier 1 capital
72,709
69,152
71,367
Total loss-absorbing additional tier 1 capital
19,012
18,684
16,372
of which: high-trigger loss-absorbing additional tier 1 capital
19,012
18,684
15,126
of which: low-trigger loss-absorbing additional tier 1 capital
1,245
Eligible gone concern capital
Total gone concern loss-absorbing capacity
99,450
99,331
97,655
Total tier 2 capital
196
205
207
of which: non-Basel III-compliant tier 2 capital
196
205
207
TLAC-eligible senior unsecured debt
99,254
99,126
97,449
Total loss-absorbing capacity
Total loss-absorbing capacity
191,171
187,168
185,394
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
504,500
483,276
498,538
Leverage ratio denominator
1,658,089
1,561,583
1,519,477
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
18.2
18.2
17.6
of which: common equity tier 1 capital ratio
14.4
14.3
14.3
Gone concern loss-absorbing capacity ratio
19.7
20.6
19.6
Total loss-absorbing capacity ratio
37.9
38.7
37.2
Leverage ratios (%)
Going concern leverage ratio
5.5
5.6
5.8
of which: common equity tier 1 leverage ratio
4.4
4.4
4.7
Gone concern leverage ratio
6.0
6.4
6.4
Total loss-absorbing capacity leverage ratio
11.5
12.0
12.2
Total loss-absorbing capacity and movement
Our TLAC increased by USD 4.0bn to USD 191.2bn
in the second quarter of 2025.
Going concern capital and movement
Our
going
concern
capital
increased
by
USD 3.9bn
to
USD 91.7bn.
Our
common
equity
tier 1
(CET1)
capital
increased by
USD 3.6bn to
USD 72.7bn, mainly
driven by
operating profit
before tax
of USD 2.2bn,
foreign currency
translation
gains
of
USD 2.3bn
and
an
increase
in
eligible
deferred
tax
assets
on
temporary
differences
of
USD 0.4bn,
partly
offset
by
dividend
accruals
of
USD 0.8bn
and
current
tax
expenses
of
USD 0.4bn.
Share
repurchases of USD 0.5bn made under our 2024 share repurchase
program in the second quarter of 2025 did not
affect our
CET1 capital position,
as there
was an
equal reduction in
the capital reserve
for expected future
share
repurchases.
The 2024 share repurchase program was
completed on 23 May 2025.
›
Refer to “Share information and earnings per share” in this section for more information about our share
repurchase programs
Our loss-absorbing
additional tier 1
(AT1) capital
increased by
USD 0.3bn to
USD 19.0bn,
reflecting positive
impacts
from interest rate risk hedge, foreign currency
translation and other effects.
Following the approval of a maximum amount of conversion capital by UBS Group AG’s shareholders at the 2024
Annual General
Meeting, AT1
capital instruments
issued from
the beginning
of the
fourth quarter
of 2023
are,
upon the
occurrence of
a trigger event
or a
viability event,
subject to
conversion into
UBS Group AG
ordinary shares
rather than a
write-down. AT1 capital instruments
issued prior to
the fourth quarter of
2023 remain subject to
a
w
rite-down.
UBS Group second quarter 2025 report
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Risk, capital, liquidity and funding, and balance
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Gone concern loss-absorbing capacity and movement
Our total gone concern loss-absorbing capacity increased by USD 0.1bn to
USD 99.4bn and included USD 99.3bn of
TLAC-eligible senior unsecured
debt instruments. The increase
of USD 0.1bn mainly
reflected new issuances of
TLAC-
eligible senior unsecured debt instruments totaling USD 3.5bn equivalent and positive impacts from interest rate risk
hedge, foreign
currency translation
and other
effects. These
effects were
largely offset
by USD 3.9bn TLAC-eligible
senior
unsecured
debt
instruments
ceasing
to be
eligible
as gone
concern
capital,
as they
entered
the final
year before
maturity and the call of USD
3.3bn equivalent of TLAC-eligible
senior unsecured debt instruments.
›
Refer to “Bondholder information” at
ubs.com/investors
for more information about the eligibility of capital and
senior unsecured debt instruments and about key features and terms and conditions of capital instruments
Loss-absorbing capacity and leverage ratios
Our CET1
capital ratio
increased to
14.4% from
14.3%, reflecting
a USD 3.6bn
increase in
CET1 capital,
partly
offset by a USD 21.2bn increase in RWA.
Our CET1 leverage
ratio was stable
at 4.4%, reflecting a
USD 96.5bn increase in the
LRD, offset by
a USD 3.6bn
increase in CET1 capital.
Our going
concern capital
ratio was
stable at
18.2%, reflecting
a USD 3.9bn
increase in
going concern
capital,
offset by a USD 21.2bn increase in RWA.
Our going concern leverage ratio decreased to 5.5% from 5.6%, reflecting a USD 96.5bn increase in the LRD,
partly
offset by
a USD 3.9bn increase in going concern capital.
Our
gone
concern
loss-absorbing
capacity
ratio
decreased
to
19.7%
from
20.6%,
largely
reflecting
the
aforementioned increase in RWA.
Our gone concern leverage
ratio decreased to 6.0% from
6.4%, mainly due to the
aforementioned increase in the
L
RD.
Swiss SRB total loss-absorbing capacity movement
USD m
Going concern capital
Swiss SRB
Common equity tier 1 capital as of 31.3.25
69,152
Operating profit / (loss) before tax
2,193
Current tax (expense) / benefit
(368)
Foreign currency translation effects, before tax
2,339
Eligible deferred tax assets on temporary differences (incl. excess
over threshold)
357
Share repurchase program
(494)
Capital reserve for expected future share repurchases
494
Other
1
(965)
Common equity tier 1 capital as of 30.6.25
72,709
Loss-absorbing additional tier 1 capital as of 31.3.25
18,684
Interest rate risk hedge, foreign currency translation and other effects
328
Loss-absorbing additional tier 1 capital as of 30.6.25
19,012
Total going concern capital as of 31.3.25
87,837
Total going concern capital as of 30.6.25
91,721
Gone concern loss-absorbing capacity
Tier 2 capital as of 31.3.25
205
Interest rate risk hedge, foreign currency translation and other effects
(9)
Tier 2 capital as of 30.6.25
196
TLAC-eligible unsecured debt as of 31.3.25
99,126
Issuance of TLAC-eligible senior unsecured debt
3,542
Call of TLAC-eligible senior unsecured debt
(3,303)
Debt no longer eligible as gone concern loss-absorbing capacity
due to residual tenor falling to below one year
(3,912)
Interest rate risk hedge, foreign currency translation and other effects
3,801
TLAC-eligible unsecured debt as of 30.6.25
99,254
Total gone concern loss-absorbing capacity as of 31.3.25
99,331
Total gone concern loss-absorbing capacity as of 30.6.25
99,450
Total loss-absorbing capacity
Total loss-absorbing capacity as of 31.3.25
187,168
Total loss-absorbing capacity as of 30.6.25
191,171
1 Includes dividend accruals for 2025 (negative USD 0.8bn) and movements related to other items.
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45
Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital
USD m
30.6.25
31.3.25
31.12.24
Total equity under IFRS Accounting Standards
89,699
87,590
85,574
Equity attributable to non-controlling interests
(422)
(405)
(494)
Defined benefit plans, net of tax
(1,054)
(949)
(833)
Deferred tax assets recognized for tax loss carry-forwards
(2,527)
(2,210)
(2,288)
Deferred tax assets for unused tax credits
(871)
(817)
(688)
Deferred tax assets on temporary differences, excess over threshold
(1,070)
(1,059)
(803)
Goodwill, net of tax
1
(5,779)
(5,726)
(5,702)
Intangible assets, net of tax
(742)
(697)
(702)
Compensation-related components (not recognized in net profit)
(2,752)
(2,656)
(2,800)
Expected losses on advanced internal ratings-based portfolio less provisions
(592)
(578)
(568)
Unrealized (gains) / losses from cash flow hedges, net of tax
1,527
2,051
2,585
Own credit related to (gains) / losses on financial liabilities
measured at fair value that existed at the balance sheet
date, net of tax
1,036
895
1,178
Own credit related to (gains) / losses on derivative financial instruments
that existed at the balance sheet date
(79)
(70)
(62)
Prudential valuation adjustments
(176)
(165)
(167)
Accruals for dividends to shareholders for 2024
(2,835)
(2,835)
Capital reserve for expected future share repurchases
(2,006)
(2,500)
Other
(1,483)
2
(718)
2
(25)
Total common equity tier 1 capital
72,709
69,152
71,367
1 Includes goodwill related to significant investments in financial institutions of USD 19m as of 30 June 2025 (USD 19m as of 31 March 2025, USD 19m as of 31 December 2024) presented on the balance sheet line
Investments in associates.
2 Includes dividend accruals for 2025 and other items.
Additional information
Sensitivity to currency movements
Risk-weighted assets
We estimate that a 10% depreciation of the US dollar against other currencies would have increased our RWA by
USD 24bn and
our CET1
capital by
USD 2.6bn as
of 30
June 2025
(31 March
2025: USD 21bn
and USD 2.4bn,
respectively) and decreased our CET1
capital ratio by 15 basis points
(31 March 2025: 14 basis points).
Conversely,
a 10%
appreciation of
the US
dollar against
other currencies would
have decreased our
RWA by
USD 21bn and
our CET1 capital by USD 2.3bn
(31 March 2025: USD 19bn and USD 2.2bn, respectively)
and increased our CET1
capital ratio by 15 basis points (31 March 2025:
13 basis points).
Leverage ratio denominator
We estimate that a
10% depreciation of the
US dollar against other
currencies would have increased our
LRD by
USD 112bn as of 30
June 2025 (31
March 2025: USD 100bn) and decreased
our CET1 leverage ratio
by 13 basis
points (31 March 2025: 12 basis points). Conversely, a 10% appreciation of the US dollar against other currencies
would have decreased our LRD by USD 102bn (31 March 2025: USD 90bn) and increased our CET1 leverage ratio
by 14 basis points (31 March 2025: 13 basis points).
The aforementioned
sensitivities do
not consider
foreign currency
translation effects
related to
defined benefit
plans
other than those related to the currency
translation of the net equity of foreign operations.
›
Refer to “Active management of sensitivity to foreign exchange movements” under “Capital management” in the
“Capital, liquidity and funding, and balance sheet” section of the UBS Group Annual Report 2024, available under
“Annual reporting” at
ubs.com/investors
, for more information
UBS Group second quarter 2025 report
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Risk-weighted assets
During the
second
quarter of
2025,
RWA increased
by
USD 21.2bn
to USD
504.5bn, driven
by
an
USD 18.6bn
increase in currency effects and a USD 3.0bn increase resulting from asset size and
other movements, partly offset
by a USD 0.3bn decrease resulting from model
updates and methodology changes.
Movement in risk-weighted assets, by key driver
USD bn
RWA as of
31.3.25
Currency
effects
Model updates
and methodology
changes
Asset size and
other
1
RWA as of
30.6.25
Credit and counterparty credit risk
2
282.3
17.2
(0.3)
3.5
302.6
Non-counterparty-related risk
3
33.3
1.3
0.4
35.0
Market risk
31.4
(0.9)
30.5
Operational risk
136.4
136.4
Total
483.3
18.6
(0.3)
3.0
504.5
1 Includes the Pillar 3 categories “Asset size”, “Credit quality of counterparties”, “Acquisitions
and disposals” and “Other”. For more information, refer to the 30 June 2025 Pillar 3 Report, which will be available as
of 28 August 2025
under “Pillar 3 disclosures”
at ubs.com/investors.
2 Includes settlement risk,
credit valuation adjustments,
equity and investments
in funds exposures
in the banking
book, and securitization
exposures in the banking book.
3 Non-counterparty-related risk includes deferred tax assets recognized for temporary differences,
property, equipment, software and other items.
Credit and counterparty credit risk
Credit and counterparty credit
risk RWA increased by
USD 20.4bn to USD 302.6bn
as of 30 June 2025,
driven by a
USD 17.2bn
increase
from
currency
effects
and
a
USD 3.5bn
increase
resulting
from
asset
size
and
other
movements, partly offset by a USD 0.3bn decrease
due to model updates and methodology
changes.
Asset size and other movements by business
division and Group Items:
–
Global
Wealth
Management RWA
increased
by
USD 2.4bn,
mainly
due
to
higher
RWA
from
loans
and
loan
commitments,
derivatives, and credit valuation adjustments
(CVA).
–
Personal &
Corporate Banking
RWA increased
by USD 2.6bn,
mainly driven
by increases
in loans
to corporate
clients and mortgage loans.
–
Asset Management RWA were unchanged.
–
Investment
Bank
RWA
increased
by
USD 0.2bn,
as
increases
in
RWA
due
to
higher
allocations
from
Group
Treasury following higher levels of high-quality liquid assets (HQLA) were partly offset by decreases in loans and
loan commitments.
–
Non-core and
Legacy RWA
decreased by
USD 1.5bn,
mainly driven
by our
actions to
actively unwind
the portfolio,
in addition to the natural roll-off.
–
Group Items RWA decreased by USD 0.2bn.
Model updates and methodology changes
resulted in an RWA decrease of
USD 0.3bn,
as a USD 0.7bn decrease in
the
multiplier
for
CVA
capital
requirements
and
various
smaller
model
updates
and
methodology
changes
amounting to a decrease in RWA of USD 0.4bn
were partly offset by an increase of USD 0.8bn resulting
from the
decommissioning of Credit Suisse probability of
default models for banks and international
mortgages.
›
Refer to the 30 June 2025 Pillar 3 Report, which will be available as of 28 August 2025 under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
›
Refer to “Credit risk” in the “Risk management and control” section of this report for more information
Market risk
Market risk
RWA decreased
by USD 0.9bn
to USD 30.5bn
in the
second quarter
of 2025,
due to
asset size
and
other movements in the Investment Bank’s
Global Markets business and de-risking
within Non-core and Legacy.
›
Refer to the 30 June 2025 Pillar 3 Report, which will be available as of 28 August 2025 under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
›
Refer to “Market risk” in the “Risk management and control” section of this report for more information
UBS Group second quarter 2025 report
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Operational risk
Operational risk RWA were unchanged at USD
136.4bn.
›
Refer to “Note 14 Provisions and contingent liabilities” in the “Consolidated financial statements” section of this
report for more information
Outlook
We expect
RWA developments
with regard
to model
updates and
methodology changes to
decrease by
around
USD 2bn during the third quarter of 2025. The extent
and timing of RWA changes may vary as model updates
are
completed and receive regulatory approval,
along with changes in the composition of
the relevant portfolios.
Risk-weighted assets, by business division and Group Items
USD bn
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Manage-
ment
Investment
Bank
Non-core and
Legacy
Group
Items
Total
RWA
30.6.25
Credit and counterparty credit risk
1
102.4
128.8
7.1
54.9
5.4
4.1
302.6
Non-counterparty-related risk
2
6.9
3.1
0.8
4.4
0.9
18.9
35.0
Market risk
0.8
0.0
27.2
2.4
0.1
30.5
Operational risk
60.4
18.5
6.5
23.8
24.0
3.2
136.4
Total
170.4
150.4
14.3
110.3
32.7
26.3
504.5
31.3.25
Credit and counterparty credit risk
1
96.1
115.4
6.9
53.1
6.8
3.9
282.3
Non-counterparty-related risk
2
6.5
2.9
0.7
4.2
0.8
18.0
33.3
Market risk
0.8
0.1
27.9
2.4
0.1
31.4
Operational risk
60.4
18.5
6.5
23.8
24.0
3.2
136.4
Total
163.8
137.0
14.1
109.0
34.2
25.2
483.3
30.6.25 vs 31.3.25
Credit and counterparty credit risk
1
6.3
13.4
0.2
1.8
(1.5)
0.2
20.4
Non-counterparty-related risk
2
0.3
0.2
0.0
0.2
0.0
0.9
1.7
Market risk
0.0
(0.1)
(0.7)
(0.1)
0.0
(0.9)
Operational risk
Total
6.6
13.5
0.2
1.3
(1.5)
1.1
21.2
1 Includes settlement risk, credit valuation adjustments,
equity and investments in funds exposures in the
banking book, and securitization exposures in the
banking book.
2 Non-counterparty-related risk includes
deferred tax assets recognized for temporary differences (30
June 2025: USD 18.4bn; 31 March 2025: USD 17.6bn), as well
as property, equipment, software and
other items (30 June 2025: USD 16.6bn; 31 March
2025: USD 15.7bn).
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Leverage ratio denominator
During the second quarter of
2025, the LRD increased by
USD 96.5bn to USD 1,658.1bn,
mainly due to currency
effects of USD 88.1bn and asset size and other
movements of USD 8.4bn.
Movement in leverage ratio denominator, by key driver
USD bn
LRD as of
31.3.25
Currency
effects
Asset size and
other
LRD as of
30.6.25
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
1,182.9
74.0
6.7
1,263.7
Derivative exposures
149.8
4.1
2.9
156.8
Securities financing transaction exposures
164.7
6.4
(0.2)
170.9
Off-balance sheet items
64.2
3.6
(1.1)
66.7
Total exposures
1,561.6
88.1
8.4
1,658.1
The LRD movements described below exclude
currency effects.
On-balance sheet exposures
(excluding derivatives and
securities financing transactions)
increased by
USD 6.7bn,
mainly reflecting increases
in the HQLA
portfolio and lending
balances in Global
Wealth Management
and Personal
& Corporate Banking, partly offset by a decrease
in cash and balances at central banks in Group
Treasury.
Derivative exposures increased by USD 2.9bn,
primarily reflecting market-driven movements.
Off-balance sheet exposures decreased by USD
1.1bn, mainly due to decreases in commitments.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about balance sheet
movements
Leverage ratio denominator, by business division and Group Items
USD bn
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
30.6.25
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
511.1
440.2
4.9
275.3
19.4
12.8
1,263.7
Derivative exposures
29.5
6.9
0.0
116.3
4.2
(0.1)
156.8
Securities financing transaction exposures
58.9
38.7
0.1
68.1
5.3
(0.3)
170.9
Off-balance sheet items
18.7
31.7
0.1
15.3
0.5
0.4
66.7
Total exposures
618.3
517.5
5.1
475.0
29.4
12.8
1,658.1
31.3.25
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
487.8
403.5
4.2
252.3
23.4
11.7
1,182.9
Derivative exposures
25.9
6.0
0.0
113.8
4.0
0.0
149.8
Securities financing transaction exposures
57.0
37.1
0.1
63.5
6.8
0.3
164.7
Off-balance sheet items
18.0
29.0
0.1
16.1
0.6
0.3
64.2
Total exposures
588.7
475.6
4.3
445.8
34.9
12.3
1,561.6
30.6.25 vs 31.3.25
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
23.3
36.7
0.7
22.9
(4.0)
1.1
80.8
Derivative exposures
3.6
0.9
0.0
2.5
0.2
(0.2)
7.0
Securities financing transaction exposures
2.0
1.6
0.0
4.7
(1.5)
(0.6)
6.2
Off-balance sheet items
0.7
2.7
0.1
(0.9)
(0.1)
0.1
2.5
Total exposures
29.6
41.9
0.8
29.2
(5.4)
0.5
96.5
UBS Group second quarter 2025 report
|
Risk, capital, liquidity and funding, and balance
sheet | Capital management
49
Equity attribution
Under our equity attribution
framework, tangible equity
is attributed based on
equally weighted average
RWA and
average LRD, which both include resource allocations from our Group functions to the business divisions. Average
RWA and LRD are converted
to CET1 capital equivalents
using target capital ratios.
If the attributed tangible equity
calculated under the weighted-driver approach is less than
the CET1 capital equivalent of risk-based capital (RBC)
for any business division,
the CET1 capital equivalent of RBC is used as a floor for that
business division.
The floor
was applicable for Asset Management and
Non-core and Legacy in all of the periods shown
below.
In addition to
tangible equity,
we allocate equity
to the business
divisions to
support goodwill
and intangible
assets.
We
also
allocate
to
the
business
divisions
attributed
equity
related
to
CET1
capital
deduction
items
that
are
attributable to divisional activities, such as compensation-related components or expected losses on the advanced
internal ratings-based portfolio less provisions. We attribute all remaining capital deduction items to Group Items.
These primarily
include equity
related to deferred
tax assets,
accruals for shareholder
returns, and unrealized
gains /
losses from cash flow hedges.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about movements in
equity attributable to shareholders
Average attributed equity
For the quarter ended
Year-to-date
USD bn
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Global Wealth Management
34.2
33.6
32.9
33.9
33.0
Personal & Corporate Banking
21.4
20.1
21.4
20.7
21.7
Asset Management
2.5
2.7
2.7
2.6
2.7
Investment Bank
18.3
17.7
17.0
18.0
17.0
Non-core and Legacy
5.8
7.5
10.1
6.6
10.4
Group Items
1
6.0
4.6
0.2
5.3
0.1
Average equity attributed to business divisions and Group Items
88.2
86.1
84.2
87.2
84.7
1 Includes average attributed equity related to capital deduction items for deferred tax assets,
accruals for shareholder returns and unrealized gains / losses from cash flow hedges.
UBS Group second quarter 2025 report
|
Risk, capital, liquidity and funding, and balance
sheet | Liquidity and funding management
50
Liquidity and funding management
Strategy, objectives and governance
This
section
provides
liquidity
and
funding
management
information
and
should
be
read
in
conjunction
with
“Liquidity and funding
management” in
the “Capital,
liquidity and funding,
and balance sheet”
section of the
UBS
Group
Annual
Report
2024,
available
under
“Annual
reporting”
at
ubs.com/investors
,
which
provides
more
information
about
the
Group’s
strategy,
objectives
and
governance
in
connection
with
liquidity
and
funding
management.
Liquidity coverage ratio
The
quarterly
average
liquidity
coverage
ratio
(the
LCR)
of
the
UBS
Group
increased
1.3 percentage
points
to
182.3%, remaining
above the
prudential requirement
communicated by
the Swiss
Financial Market
Supervisory
Authority (FINMA).
The
movement in
the quarterly
average LCR
was primarily
driven by
an
increase in
high-quality liquid
assets of
USD 40.0bn to
USD 358.8bn, mainly
reflecting higher
cash available due
to a decrease
in funding
for trading
assets
and higher customer deposits, partly offset
by lower cash available
due to higher lending assets.
The average net
cash
outflows
increased
by
USD 20.7bn
to
USD 196.8bn,
reflecting
higher
outflows
from
deposits,
lower
net
inflows from securities financing transactions
and higher net outflows from derivatives.
›
Refer to the
30 June 2025 Pillar 3 Report, which will be available as of 28 August 2025 under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about the LCR
Liquidity coverage ratio
USD bn, except where indicated
Average 2Q25
1
Average 1Q25
1
High-quality liquid assets
358.8
318.7
Net cash outflows
2
196.8
176.2
Liquidity coverage ratio (%)
3
182.3
181.0
1 Calculated based on an average of 61
data points in the second quarter of 2025 and 62 data
points in the first quarter of 2025.
2 Represents the net cash outflows expected over a stress
period of 30 calendar
days.
3 Calculated after the application of haircuts and inflow and outflow rates, as well as,
where applicable, caps on Level 2 assets and cash inflows.
Net stable funding ratio
As of 30 June 2025, the net stable funding ratio (the NSFR) of the UBS Group decreased 1.8 percentage points to
122.4%, remaining above the prudential
requirement communicated by FINMA.
Available stable
funding increased
by USD 43.0bn
to USD 904.7bn,
mainly driven
by increases
in both
customer
deposits and
debt issued
measured at
amortized cost,
largely driven
by currency
effects,
as well as
higher regulatory
capital.
Required
stable
funding
increased
by
USD 45.1bn
to
USD 738.9bn,
primarily
reflecting
an
increase
in
lending assets, which was also largely due to
currency effects.
›
Refer to the 30 June 2025 Pillar 3 Report, which will be available as of 28 August 2025 under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about the NSFR
Net stable funding ratio
USD bn, except where indicated
30.6.25
31.3.25
Available stable funding
904.7
861.7
Required stable funding
738.9
693.8
Net stable funding ratio (%)
122.4
124.2
UBS Group second quarter 2025 report
|
Risk, capital, liquidity and funding, and balance
sheet | Balance sheet and off-balance sheet
51
Balance sheet and off-balance sheet
This
section
provides
balance
sheet
and
off-balance sheet
information
and
should
be
read
in
conjunction
with
“Balance sheet
and off-balance
sheet” in
the “Capital,
liquidity and
funding, and
balance sheet”
section of
the
UBS Group
Annual Report
2024, available
under “Annual reporting”
at
ubs.com/investors
, which
provides more
information about the balance sheet and off-balance
sheet positions.
Balances disclosed in this
report represent quarter-end
positions, unless indicated
otherwise. Intra-quarter balances
fluctuate in the ordinary course of business
and may differ from quarter-end positions.
Balance sheet assets (30 June 2025 vs
31 March 2025)
Total assets were USD 1,670.0bn
as of 30 June 2025,
an increase of USD 126.6bn
compared with 31 March
2025,
mainly reflecting currency effects as a result
of the depreciation of the US dollar against other
major currencies.
Lending
assets
increased
by
USD 52.3bn,
primarily
reflecting
currency
effects.
Derivatives
and
cash
collateral
receivables
on
derivative
instruments
increased
by
USD 38.5bn,
predominantly
in
Derivatives
&
Solutions
and
Financing in
the Investment
Bank, primarily
reflecting market-driven
increases in
foreign currency
contracts resulting
from the depreciation of the US dollar.
Other financial assets
measured at fair
value increased by
USD 9.1bn, mainly driven
by purchases of
high-quality
liquid
asset
(HQLA)
portfolio
securities
and
currency
effects.
Securities
financing
transactions
at
amortized cost
increased by
USD 8.4bn, mainly
reflecting currency
effects
and
net
cash reinvestment
trades
in Group
Treasury.
Other financial
assets measured
at amortized
cost increased
by USD 5.7bn,
mainly reflecting purchases
of HQLA
portfolio securities and currency
effects.
Cash and balances at
central banks increased by
USD 4.8bn, mainly due
to currency effects, partly offset by purchases of
HQLA portfolio securities.
Assets
As of
% change from
USD bn
30.6.25
31.3.25
31.3.25
Cash and balances at central banks
236.2
231.4
2
Lending
1
667.6
615.3
9
Securities financing transactions at amortized cost
110.2
101.8
8
Trading assets
169.2
165.2
2
Derivatives and cash collateral receivables on derivative instruments
215.5
177.0
22
Brokerage receivables
29.1
28.7
1
Other financial assets measured at amortized cost
72.2
66.5
9
Other financial assets measured at fair value
2
114.6
105.5
9
Non-financial assets
55.5
51.9
7
Total assets
1,670.0
1,543.4
8
1 Consists of Loans and advances to customers and Amounts due from banks.
2 Consists of Financial assets at fair value not held for trading and Financial assets measured at fair
value through other comprehensive
income.
Balance sheet liabilities (30 June 2025 vs
31 March 2025)
Total
liabilities were
USD 1,580.3bn as
of
30 June 2025,
an
increase of
USD 124.5bn compared
with 31 March
2025,
mainly
reflecting
currency
effects
as
a
result
of
the
depreciation
of
the
US
dollar
against
other
major
currencies.
Customer deposits
increased by
USD 55.1bn,
primarily driven
by currency
effects, as
well as
net new
deposit inflows,
largely in Global Wealth Management.
Derivatives and cash collateral payables
on derivative instruments increased
by USD 43.2bn, predominantly in the Investment
Bank, reflecting the same drivers as
on the asset side.
Trading liabilities
increased by
USD 9.2bn, mainly
due to
an increase
in positions
held in
the Investment
Bank to
hedge client positions, as well as market-driven increases. Short-term borrowings increased
by USD 8.8bn, mainly
driven by
net new
issuances of
commercial paper
and certificates
of deposit
in Group
Treasury, as
well as
by currency
effects. Debt issued
designated at fair
value and long-term
debt issued
measured at amortized
cost increased by
USD 7.5bn, mainly driven by
currency effects
and market-driven increases on
equity-linked notes, partly offset by
net maturities.
UBS Group second quarter 2025 report
|
Risk, capital, liquidity and funding, and balance
sheet | Balance sheet and off-balance sheet
52
The “Liabilities,
by product
and currency”
table
in this
section provides
more information
about the
Group’s funding
sources.
›
Refer to “Bondholder information” at
ubs.com/investors
for more information about capital and senior debt
instruments
›
Refer to the “Consolidated financial statements” section of this report for more information
Liabilities and equity
As of
% change from
USD bn
30.6.25
31.3.25
31.3.25
Short-term borrowings
1,2
67.2
58.4
15
Securities financing transactions at amortized cost
16.3
15.0
9
Customer deposits
800.0
744.9
7
Debt issued designated at fair value and long-term debt issued measured
at amortized cost
2
302.9
295.4
3
Trading liabilities
52.3
43.1
21
Derivatives and cash collateral payables on derivative instruments
216.8
173.6
25
Brokerage payables
58.0
59.9
(3)
Other financial liabilities measured at amortized cost
18.4
19.1
(4)
Other financial liabilities designated at fair value
29.4
27.2
8
Non-financial liabilities
18.9
19.1
(1)
Total liabilities
1,580.3
1,455.8
9
Share capital
0.3
0.3
(3)
Share premium
8.6
10.9
(22)
Treasury shares
(4.8)
(6.5)
(26)
Retained earnings
79.7
80.0
0
Other comprehensive income
3
5.5
2.4
127
Total equity attributable to shareholders
89.3
87.2
2
Equity attributable to non-controlling interests
0.4
0.4
4
Total equity
89.7
87.6
2
Total liabilities and equity
1,670.0
1,543.4
8
1 Consists of short-term debt issued measured at amortized cost and amounts due to banks, which includes amounts due to central banks.
2 The classification of debt issued measured at amortized cost into short-
term and long-term is based
on original contractual
maturity and therefore long-term
debt also includes debt
with a remaining time
to maturity of less
than one year.
This classification does
not consider any
early
redemption features.
3 Excludes other comprehensive income related to defined benefit plans and own credit, which is recorded directly in Retained earnings.
Equity (30 June 2025 vs 31 March 2025)
Equity attributable to shareholders increased
by USD 2,092m to USD 89,277m as of
30 June 2025.
The
net
increase
of
USD 2,092m
was
mainly
driven
by
positive
total
comprehensive
income
attributable
to
shareholders
of
USD 5,335m, reflecting
a
net
profit
of
USD 2,395m
and
other
comprehensive
income
(OCI)
of
USD 2,941m. OCI
mainly included
OCI related to
foreign currency
translation of
USD 2,536m, cash
flow hedge
OCI
of USD 562m and negative OCI related to own credit on financial liabilities designated at fair value of USD 124m.
In addition,
deferred share-based
compensation awards
of USD 292m
were expensed
in the
income statement,
increasing share premium.
These increases were partly
offset by distributions to
shareholders of USD 2,866m, reflecting
a dividend payment
of USD 0.90 per share.
In addition, net treasury share activity reduced equity by USD 678m, predominantly due to
the
repurchasing
of
USD 494m
of
shares
under
our
2024
share
repurchase
program
and
the
purchasing
of
USD 239m of shares in relation to employee
share-based compensation plans.
In
the
second
quarter
of
2025,
we
canceled
120,506,008
shares
purchased
under
our
2022
share
repurchase
program, as
approved by
the shareholders
at the
2025 Annual
General Meeting.
The cancellation
of shares resulted
in reclassifications within equity but had no
net effect on our total equity attributable
to shareholders.
›
Refer to the “Group performance” and “Consolidated financial statements” sections of this report for more
information
›
Refer to “Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital” in
the “Capital management” section of this report for more information about the effects of OCI on common equity
tier 1 capital
›
Refer to the “Share information and earnings per share”
section of this report for more information about our
share repurchase programs
UBS Group second quarter 2025 report
|
Risk, capital, liquidity and funding, and balance
sheet | Balance sheet and off-balance sheet
53
Liabilities, by product and currency
USD equivalent
All currencies
of which: USD
of which: CHF
of which: EUR
USD bn
30.6.25
31.3.25
30.6.25
31.3.25
30.6.25
31.3.25
30.6.25
31.3.25
Short-term borrowings
67.2
58.4
28.6
22.5
9.0
7.9
15.3
12.6
of which: amounts due to banks
31.9
27.8
10.9
7.8
8.5
7.4
4.2
3.4
of which: short-term debt issued
1,2
35.3
30.6
17.8
14.7
0.5
0.4
11.1
9.2
Securities financing transactions at amortized cost
16.3
15.0
8.0
7.3
4.0
3.6
2.8
2.8
Customer deposits
800.0
744.9
307.8
301.5
343.4
306.2
76.7
69.5
of which: demand deposits
266.5
223.6
59.0
53.8
139.9
109.6
37.6
33.2
of which: retail savings / deposits
215.5
190.5
35.5
35.4
175.4
151.0
4.6
4.1
of which: sweep deposits
38.2
39.6
38.2
39.6
0.0
0.0
0.0
0.0
of which: time deposits
279.9
291.2
175.2
172.6
28.1
45.6
34.5
32.3
Debt issued designated at fair value and long-term debt issued measured
at amortized
cost
2
302.9
295.4
163.3
165.9
44.6
42.3
70.8
64.5
Trading liabilities
52.3
43.1
19.9
16.9
1.1
1.0
18.3
12.3
Derivatives and cash collateral payables on derivative instruments
216.8
173.6
183.5
145.5
5.1
3.3
17.6
16.2
Brokerage payables
58.0
59.9
44.4
47.9
0.9
0.6
4.0
3.3
Other financial liabilities measured at amortized cost
18.4
19.1
8.8
9.3
4.1
5.0
2.4
2.3
Other financial liabilities designated at fair value
29.4
27.2
5.9
5.1
0.1
0.0
2.1
2.3
Non-financial liabilities
18.9
19.1
9.4
10.7
3.8
3.3
3.0
2.8
Total liabilities
1,580.3
1,455.8
779.7
732.6
416.1
373.1
213.0
188.6
1 Short-term debt issued consists of
certificates of deposit, commercial paper,
acceptances and promissory notes, and
other money market paper.
2 The classification of
debt issued measured at amortized
cost into
short-term and long-term is based on original contractual maturity and therefore long-term debt also includes debt with a remaining time to maturity of less than one year.
This classification does not consider any early
redemption features.
Off-balance sheet (30 June 2025 vs 31
March 2025)
Committed unconditionally
revocable credit lines
increased by USD 6.7bn, mainly
reflecting currency effects
due to
the depreciation
of the
US dollar,
partly offset
by
a decrease
in facilities
provided to
corporate and
institutional
clients.
Off-balance sheet
As of
% change from
USD bn
30.6.25
31.3.25
31.3.25
Guarantees
1,2
42.3
40.6
4
Irrevocable loan commitments
1
82.0
79.5
3
Committed unconditionally revocable credit lines
150.8
144.1
5
Forward starting reverse repurchase and securities borrowing agreements
20.1
18.2
11
1 Guarantees and irrevocable loan commitments are shown net of sub-participations.
2 Includes guarantees measured at fair value through profit or loss.
Share information and earnings per share
UBS Group AG
shares
are
listed
on
the
SIX
Swiss
Exchange
(SIX).
They
are
also
listed
on
the
New
York
Stock
Exchange
(the
NYSE)
as
global
registered
shares.
Each
share
has
a
nominal
value
of
USD 0.10.
Shares
issued
decreased
in
the
second
quarter
of
2025,
as
120,506,008
shares
acquired
under
our
2022
share
repurchase
program
were
canceled by
means
of
a
capital
reduction, as
approved
by
the
shareholders at
the
2025
Annual
General Meeting (the AGM).
We held
172m shares
as of
30 June 2025,
of which
64m shares
had been
acquired under
our 2024
share repurchase
program
for
cancellation
purposes.
The
remaining
109m
shares
are
primarily
held
to
hedge
our
share
delivery
obligations related to employee share-based
compensation and participation plans.
Treasury
shares
held
decreased
by
102m
shares
in
the
second
quarter
of
2025.
This
largely
reflected
the
aforementioned cancellation of 121m
shares, partly offset by 15.8m shares repurchased under our 2024 program
and the purchasing of 6.7m shares in relation
to employee share-based compensation plans.
Shares acquired
under our
2024 program
totaled 64m
as of
30 June 2025
for a
total acquisition
cost of
USD 2,000m
(CHF 1,739m). This program
concluded on 23 May 2025,
and the 64m shares
repurchased under this
program will
b
e canceled by means of a capital reduction,
subject to approval by the shareholders
at a future AGM.
UBS Group second quarter 2025 report
|
Risk, capital, liquidity and funding, and balance
sheet | Share information and earnings per share
54
On 1 July 2025,
we launched a
new program to
repurchase up to
USD 2bn of shares.
As previously announced,
we
plan to complete the repurchase
of up to USD 2bn of shares
in the second half of 2025.
We will communicate our
2026
capital
returns
ambitions
with
our
fourth-quarter
and
full-year
financial
results
for
2025.
Our
share
repurchases
will
be
subject
to
maintaining
our
common
equity
tier 1
capital
ratio
target
of
around
14%
and
achieving our financial targets.
›
Refer to the “Equity, CET1 capital and returns” table in the “Group performance” section of this report
for more
information about equity attributable to shareholders and tangible equity attributable to shareholders
Share information and earnings per share
As of or for the quarter ended
As of or year-to-date
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Basic and diluted earnings (USD m)
Net profit / (loss) attributable to shareholders for basic
EPS
2,395
1,692
1,136
4,087
2,890
less: (profit) / loss on own equity derivative contracts
(1)
0
0
0
0
Net profit / (loss) attributable to shareholders for diluted
EPS
2,394
1,691
1,136
4,087
2,890
.
Weighted average shares outstanding
Weighted average shares outstanding for basic EPS
1
3,179,288,753
3,177,005,662
3,212,672,606
3,178,147,206
3,208,953,404
Effect of dilutive potential shares resulting from notional
employee shares, in-the-money
options and warrants outstanding
2
127,256,011
154,934,196
146,621,312
141,069,834
153,333,034
Weighted average shares outstanding for diluted EPS
3,306,544,764
3,331,939,858
3,359,293,918
3,319,217,040
3,362,286,438
.
Earnings per share (USD)
Basic
0.75
0.53
0.35
1.29
0.90
Diluted
0.72
0.51
0.34
1.23
0.86
.
Shares outstanding and potentially dilutive instruments
Shares issued
3,341,581,714
3,462,087,722
3,462,087,722
3,341,581,714
3,462,087,722
Treasury shares
3
172,405,597
274,295,444
259,953,381
172,405,597
259,953,381
of which: related to the 2022 share repurchase program
120,506,008
120,506,008
120,506,008
of which: related to the 2024 share repurchase program
63,776,550
47,977,687
4,406,000
63,776,550
4,406,000
Shares outstanding
3,169,176,117
3,187,792,278
3,202,134,341
3,169,176,117
3,202,134,341
Potentially dilutive instruments
4
27,891,906
23,529,297
14,636,947
28,383,032
14,680,441
.
Other key figures
Total book value per share (USD)
28.17
27.35
26.13
28.17
26.13
Tangible book value per share (USD)
25.95
25.18
23.85
25.95
23.85
Share price (USD)
5
33.83
30.38
29.43
33.83
29.43
Market capitalization (USD m)
6
113,036
105,173
101,903
113,036
101,903
1 The weighted average shares outstanding for basic earnings per share (EPS) are calculated by taking the number of shares at the beginning of the period, adjusted by the number of shares acquired or issued during
the period, multiplied by a time-weighted factor for the period outstanding. As a
result, balances are affected by the timing of acquisitions and issuances during the period.
2 The weighted average number of shares
for notional employee awards with performance conditions
reflects all potentially dilutive shares that are
expected to vest under the terms of the awards.
3 Based on a settlement date view.
4 Reflects potential
shares that could dilute basic EPS in the future
but were not dilutive for any of the periods
presented. Mainly includes equity-based awards subject to absolute and relative performance conditions and
equity derivative
contracts.
5 Represents the share price as
listed on the SIX Swiss
Exchange, translated to
US dollars using the closing exchange
rate as of the respective
date.
6 The calculation of
market capitalization reflects
total shares issued multiplied by the share price at the end of the period.
Ticker symbols UBS Group AG
Security identification codes
Trading exchange
SIX / NYSE
Bloomberg
Reuters
ISIN
CH0244767585
SIX Swiss Exchange
UBSG
UBSG SW
UBSG.S
Valoren
24 476 758
New York Stock Exchange
UBS
UBS UN
UBS.N
CUSIP
CINS H42097 10 7
UBS Group second quarter 2025 report
|
Consolidated financial statements
55
Consolidated financial
statements
Unaudited
Table of contents
UBS Group AG interim consolidated financial
statements (unaudited)
56
Income statement
57
Statement of comprehensive income
58
Balance sheet
59
Statement of changes in equity
60
Statement of cash flows
Notes to the UBS Group AG interim consolidated
financial statements (unaudited)
61
1
Basis of accounting
62
2
Segment reporting
62
3
Net interest income
63
4
Net fee and commission income
63
5
Other income
63
6
Personnel expenses
64
7
General and administrative expenses
64
8
Expected credit loss measurement
72
9
Fair value measurement
78
10
Derivative instruments
79
11
Other assets and liabilities
80
12
Debt issued designated at fair value
80
13
Debt issued measured at amortized cost
80
14
Provisions and contingent liabilities
UBS Group second quarter 2025 report
|
Consolidated financial statements | UBS Group
AG interim consolidated financial statements
(unaudited)
56
UBS Group AG interim consolidated financial
statements (unaudited)
Income statement
For the quarter ended
Year-to-date
USD m
Note
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Interest income from financial instruments measured at
amortized cost and fair value through
other comprehensive income
3
7,283
6,981
9,320
14,264
19,399
Interest expense from financial instruments measured at
amortized cost
3
(6,817)
(6,948)
(9,319)
(13,765)
(19,042)
Net interest income from financial instruments measured
at fair value through profit or loss and other
3
1,500
1,597
1,533
3,096
3,118
Net interest income
3
1,965
1,629
1,535
3,595
3,475
Other net income from financial instruments measured
at fair value through profit or loss
3,408
3,937
3,684
7,346
7,866
Fee and commission income
4
7,361
7,426
7,211
14,787
14,291
Fee and commission expense
4
(653)
(649)
(679)
(1,302)
(1,268)
Net fee and commission income
4
6,708
6,777
6,531
13,485
13,023
Other income
5
30
213
154
243
278
Total revenues
12,112
12,557
11,904
24,668
24,642
Credit loss expense / (release)
8
163
100
95
263
201
Personnel expenses
6
6,976
7,032
7,119
14,008
14,068
General and administrative expenses
7
1,881
2,431
2,318
4,312
4,731
Depreciation, amortization and impairment of non-financial
assets
898
861
903
1,759
1,798
Operating expenses
9,756
10,324
10,340
20,080
20,597
Operating profit / (loss) before tax
2,193
2,132
1,469
4,325
3,844
Tax expense / (benefit)
(209)
430
293
221
905
Net profit / (loss)
2,402
1,702
1,175
4,105
2,939
Net profit / (loss) attributable to non-controlling interests
7
10
40
18
48
Net profit / (loss) attributable to shareholders
2,395
1,692
1,136
4,087
2,890
Earnings per share (USD)
Basic
0.75
0.53
0.35
1.29
0.90
Diluted
0.72
0.51
0.34
1.23
0.86
UBS Group second quarter 2025 report
|
Consolidated financial statements | UBS Group
AG interim consolidated financial statements
(unaudited)
57
Statement of comprehensive income
For the quarter ended
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Comprehensive income attributable to shareholders
Net profit / (loss)
2,395
1,692
1,136
4,087
2,890
Other comprehensive income that may be reclassified to the income
statement
Foreign currency translation
Foreign currency translation movements related to net assets of foreign operations, before tax
4,420
1,318
(268)
5,738
(3,741)
Effective portion of changes in fair value of hedging instruments
designated as net investment hedges, before tax
(1,879)
(549)
291
(2,428)
2,473
Foreign currency translation differences on foreign operations reclassified to the
income statement
(1)
3
2
2
2
Effective portion of changes in fair value of hedging instruments
designated as net investment hedges reclassified
to
the income statement
0
(1)
0
(1)
1
Income tax relating to foreign currency translations, including the effect of
net investment hedges
(4)
(2)
0
(6)
13
Subtotal foreign currency translation, net of tax
2,536
768
25
3,305
(1,252)
Financial assets measured at fair value through other comprehensive income
Net unrealized gains / (losses), before tax
(4)
(3)
0
(7)
0
Net realized (gains) / losses reclassified to the income statement
from equity
0
0
0
0
0
Income tax relating to net unrealized gains / (losses)
0
0
0
0
0
Subtotal financial assets measured at fair value through other comprehensive
income, net of tax
(4)
(3)
0
(7)
0
Cash flow hedges of interest rate risk
Effective portion of changes in fair value of derivative instruments designated
as cash flow hedges, before tax
398
349
(417)
746
(1,663)
Net (gains) / losses reclassified to the income statement from
equity
296
322
668
617
1,212
Income tax relating to cash flow hedges
(131)
(125)
5
(256)
124
Subtotal cash flow hedges, net of tax
562
545
256
1,107
(327)
Cost of hedging
Cost of hedging, before tax
10
31
(19)
41
(28)
Income tax relating to cost of hedging
0
0
0
0
0
Subtotal cost of hedging, net of tax
10
31
(19)
41
(28)
Total other comprehensive income that may be reclassified to the income statement, net
of tax
3,105
1,342
262
4,446
(1,608)
Other comprehensive income that will not be reclassified to the income
statement
Defined benefit plans
Gains / (losses) on defined benefit plans, before tax
(36)
5
(38)
(31)
(100)
Income tax relating to defined benefit plans
(4)
2
8
(1)
14
Subtotal defined benefit plans, net of tax
(40)
7
(30)
(32)
(87)
Own credit on financial liabilities designated at fair value
Gains / (losses) from own credit on financial liabilities designated
at fair value, before tax
(126)
279
231
153
161
Income tax relating to own credit on financial liabilities designated
at fair value
2
(1)
(3)
1
(1)
Subtotal own credit on financial liabilities designated at
fair value, net of tax
(124)
279
228
154
160
Total other comprehensive income that will not be reclassified to the income statement,
net of tax
(164)
286
198
122
73
Total other comprehensive income
2,941
1,628
460
4,568
(1,535)
Total comprehensive income attributable to shareholders
5,335
3,319
1,596
8,655
1,356
Comprehensive income attributable to non-controlling
interests
Net profit / (loss)
7
10
40
18
48
Total other comprehensive income that will not be reclassified to the income statement,
net of tax
15
15
(21)
30
(35)
Total comprehensive income attributable to non-controlling interests
22
26
18
48
13
Total comprehensive income
Net profit / (loss)
2,402
1,702
1,175
4,105
2,939
Other comprehensive income
2,955
1,643
439
4,598
(1,570)
of which: other comprehensive income that may be reclassified
to the income statement
3,105
1,342
262
4,446
(1,608)
of which: other comprehensive income that will not be reclassified
to the income statement
(149)
302
176
152
38
Total comprehensive income
5,357
3,345
1,614
8,703
1,369
UBS Group second quarter 2025 report
|
Consolidated financial statements | UBS Group
AG interim consolidated financial statements
(unaudited)
58
Balance sheet
USD m
Note
30.6.25
31.3.25
31.12.24
Assets
Cash and balances at central banks
236,193
231,370
223,329
Amounts due from banks
21,527
21,107
18,903
Receivables from securities financing transactions measured at amortized
cost
110,161
101,784
118,301
Cash collateral receivables on derivative instruments
10
45,478
38,994
43,959
Loans and advances to customers
8
646,048
594,150
579,967
Other financial assets measured at amortized cost
11
72,211
66,513
58,835
Total financial assets measured at amortized cost
1,131,618
1,053,918
1,043,293
Financial assets at fair value held for trading
9
169,195
165,236
159,065
of which: assets pledged as collateral that may be sold or repledged
by counterparties
46,336
48,262
38,532
Derivative financial instruments
9, 10
169,996
138,035
185,551
Brokerage receivables
9
29,068
28,747
25,858
Financial assets at fair value not held for trading
9
107,755
102,317
95,472
Total financial assets measured at fair value through profit or loss
476,014
434,334
465,947
Financial assets measured at fair value through other comprehensive income
9
6,872
3,216
2,195
Investments in associates
2,629
2,496
2,306
Property, equipment and software
16,376
15,564
15,498
Goodwill and intangible assets
7,023
6,909
6,887
Deferred tax assets
11,631
11,090
11,134
Other non-financial assets
11
17,829
15,836
17,766
Total assets
1,669,991
1,543,363
1,565,028
Liabilities
Amounts due to banks
31,928
27,794
23,347
Payables from securities financing transactions measured at amortized cost
16,314
14,999
14,833
Cash collateral payables on derivative instruments
10
32,980
31,520
35,490
Customer deposits
800,045
744,866
745,777
Debt issued measured at amortized cost
13
224,709
213,880
214,219
Other financial liabilities measured at amortized cost
11
18,358
19,143
21,033
Total financial liabilities measured at amortized cost
1,124,334
1,052,202
1,054,698
Financial liabilities at fair value held for trading
9
52,330
43,099
35,247
Derivative financial instruments
9, 10
183,814
142,117
180,636
Brokerage payables designated at fair value
9
57,951
59,921
49,023
Debt issued designated at fair value
9, 12
113,522
112,092
107,909
Other financial liabilities designated at fair value
9, 11
29,410
27,235
28,699
Total financial liabilities measured at fair value through profit or loss
437,027
384,465
401,514
Provisions and contingent liabilities
14
7,466
8,517
8,409
Other non-financial liabilities
11
11,465
10,590
14,834
Total liabilities
1,580,292
1,455,773
1,479,454
Equity
Share capital
334
346
346
Share premium
8,562
10,908
12,012
Treasury shares
(4,830)
(6,509)
(6,402)
Retained earnings
79,726
80,023
78,035
Other comprehensive income recognized directly in equity, net of tax
5,485
2,418
1,088
Equity attributable to shareholders
89,277
87,185
85,079
Equity attributable to non-controlling interests
422
405
494
Total equity
89,699
87,590
85,574
Total liabilities and equity
1,669,991
1,543,363
1,565,028
UBS Group second quarter 2025 report
|
Consolidated financial statements | UBS Group
AG interim consolidated financial statements
(unaudited)
59
Statement of changes in equity
USD m
Share
capital and
share
premium
Treasury
shares
Retained
earnings
OCI
recognized
directly in
equity,
net of tax
1
of which:
foreign
currency
translation
of which:
cash flow
hedges
Total equity
attributable to
shareholders
Balance as of 1 January 2025
2
12,359
(6,402)
78,035
1,088
3,830
(2,585)
85,079
Acquisition of treasury shares
(2,249)
3
(2,249)
Delivery of treasury shares under share-based compensation
plans
(1,344)
1,456
112
Other disposal of treasury shares
0
88
3
88
Cancellation of treasury shares related to the 2022
share repurchase program
4
(1,145)
2,277
(1,133)
0
Share-based compensation expensed in the income statement
621
621
Tax (expense) / benefit
17
17
Dividends
(1,433)
5
(1,433)
5
(2,866)
Equity classified as obligation to purchase own shares
(81)
(81)
Translation effects recognized directly in retained earnings
50
(50)
(50)
0
Share of changes in retained earnings of associates and
joint ventures
(2)
(2)
New consolidations / (deconsolidations) and other increases
/ (decreases)
(98)
0
(98)
Total comprehensive income for the period
4,209
4,446
3,305
1,107
8,655
of which: net profit / (loss)
4,087
4,087
of which: OCI, net of tax
122
4,446
3,305
1,107
4,568
Balance as of 30 June 2025
2
8,896
(4,830)
79,726
5,485
7,135
(1,527)
89,277
Non-controlling interests as of 30 June 2025
422
Total equity as of 30 June 2025
89,699
Balance as of 1 January 2024
2
13,562
(4,796)
74,397
2,462
5,584
(3,109)
85,624
Acquisition of treasury shares
(1,900)
3
(1,900)
Delivery of treasury shares under share-based compensation
plans
(1,051)
1,133
82
Other disposal of treasury shares
1
65
3
66
Share-based compensation expensed in the income statement
610
610
Tax (expense) / benefit
14
14
Dividends
(1,128)
5
(1,128)
5
(2,256)
Equity classified as obligation to purchase own shares
(27)
(27)
Translation effects recognized directly in retained earnings
(63)
63
63
0
Share of changes in retained earnings of associates and
joint ventures
(1)
(1)
New consolidations / (deconsolidations) and other increases
/ (decreases)
106
8
114
Total comprehensive income for the period
2,964
(1,608)
(1,252)
(327)
1,356
of which: net profit / (loss)
2,890
2,890
of which: OCI, net of tax
73
(1,608)
(1,252)
(327)
(1,535)
Balance as of 30 June 2024
2
12,089
(5,498)
76,176
917
4,332
(3,373)
83,683
Non-controlling interests as of 30 June 2024
535
Total equity as of 30 June 2024
84,218
1 Excludes other comprehensive income related to defined benefit plans and own credit that is recorded directly in Retained earnings.
2 Excludes non-controlling interests.
3 Includes treasury shares acquired and
disposed of by the Investment Bank in its capacity as a market
maker with regard to UBS shares and related derivatives,
and to hedge certain issued structured debt instruments.
These acquisitions and disposals are
reported based on the sum of the net monthly
movements.
4 Reflects the cancellation of
120,506,008
shares purchased under UBS’s 2022
share repurchase program as approved by the shareholders
at the 2025
Annual General Meeting. Swiss
tax law requires Switzerland-domiciled
companies with shares listed
on a Swiss stock exchange
to reduce capital contribution
reserves by at least
50
% of the total capital
reduction
amount exceeding the
nominal value upon
cancellation of the
shares.
5 Reflects the payment
of an ordinary
cash dividend of
USD
0.90
per dividend-bearing share
in April 2025
(2024: USD
0.70
per dividend-
bearing share paid in May 2024). Swiss tax law requires Switzerland-domiciled companies with shares listed on a Swiss stock exchange to pay no more than
50
% of dividends from capital contribution reserves, with
the remainder required to be paid from retained earnings.
UBS Group second quarter 2025 report
|
Consolidated financial statements | UBS Group
AG interim consolidated financial statements
(unaudited)
60
Statement of cash flows
Year-to-date
USD m
30.6.25
30.6.24
Cash flow from / (used in) operating activities
Net profit / (loss)
4,105
2,939
Non-cash items included in net profit and other adjustments
Depreciation, amortization and impairment of non-financial
assets
1,759
1,798
Credit loss expense / (release)
263
201
Share of net (profit) / loss of associates and joint ventures
and impairment related to associates
(157)
(110)
Deferred tax expense / (benefit)
(607)
127
Net loss / (gain) from investing activities
(153)
95
Net loss / (gain) from financing activities
13,603
(3,961)
Other net adjustments
1
(31,208)
18,094
Net change in operating assets and liabilities
1
Amounts due from banks and amounts due to banks
6,953
675
Receivables from securities financing transactions measured at amortized
cost
14,925
13,812
Payables from securities financing transactions measured at amortized cost
1,509
(38)
Cash collateral on derivative instruments
(3,533)
(2,120)
Loans and advances to customers
(7,214)
13,445
Customer deposits
(1,952)
(9,900)
Financial assets and liabilities at fair value held for trading and derivative financial
instruments
33,794
(4,779)
Brokerage receivables and payables
5,294
(101)
Financial assets at fair value not held for trading and other financial assets
and liabilities
(11,885)
(15,110)
Provisions and other non-financial assets and liabilities
(3,275)
(1,986)
Income taxes paid, net of refunds
(1,331)
(1,223)
Net cash flow from / (used in) operating activities
2
20,889
11,858
Cash flow from / (used in) investing activities
Purchase of subsidiaries, business, associates and intangible assets
(17)
0
Disposal of subsidiaries, business, associates and intangible assets
3
482
4
55
Purchase of property, equipment and software
(1,109)
(913)
Disposal of property, equipment and software
62
40
Purchase of financial assets measured at fair value through other
comprehensive income
(7,175)
(2,132)
Disposal and redemption of financial assets measured at
fair value through other comprehensive income
2,772
2,501
Purchase of debt securities measured at amortized cost
(14,792)
(1,850)
Disposal and redemption of debt securities measured at amortized
cost
5,625
4,848
Net cash flow from / (used in) investing activities
(14,150)
2,549
Cash flow from / (used in) financing activities
Repayment of Swiss National Bank funding
(42,587)
5
Net issuance (repayment) of short-term debt measured at amortized
cost
3,002
(3,384)
Net movements in treasury shares and own equity derivative
activity
(2,073)
(1,786)
Distributions paid on UBS shares
(2,866)
(2,256)
Issuance of debt designated at fair value and long-term debt measured
at amortized cost
61,836
59,080
Repayment of debt designated at fair value and long-term debt measured
at amortized cost
(71,129)
(71,389)
Inflows from securities financing transactions measured at amortized
cost
6
565
2,863
Outflows from securities financing transactions measured at amortized
cost
6
(1,561)
(2,052)
Net cash flows from other financing activities
(544)
(404)
Net cash flow from / (used in) financing activities
(12,769)
(61,916)
Total cash flow
Cash and cash equivalents at the beginning of the period
244,090
340,207
Net cash flow from / (used in) operating, investing and financing
activities
(6,030)
(47,510)
Effects of exchange rate differences on cash and cash equivalents
1
20,992
(13,733)
Cash and cash equivalents at the end of the period
7
259,052
278,964
of which: cash and balances at central banks
7
236,193
248,336
of which: amounts due from banks
7
19,821
19,811
of which: money market paper
7,8
3,039
10,818
Additional information
Net cash flow from / (used in) operating activities includes:
Interest received in cash
21,679
28,362
Interest paid in cash
19,602
24,087
Dividends on equity investments, investment funds and associates
received in cash
3
1,803
1,529
1 Foreign currency
translation and foreign
exchange effects on
operating assets and
liabilities and on
cash and cash
equivalents are presented
within the Other
net adjustments line,
with the exception
of foreign
currency hedge effects related to foreign
exchange swaps, which
are presented on the line Financial
assets and liabilities at fair value
held for trading and derivative
financial instruments.
2 Includes cash receipts
from the sale of loans and
loan commitments of USD
581
m and USD
9,857
m within Non-core and Legacy for
the six-month periods ended 30 June 2025 and 30 June
2024, respectively.
3 Includes dividends received
from associates.
4 Includes cash proceeds net of cash and cash equivalents disposed from the sale of the US mortgage servicing business of Credit Suisse, Select Portfolio Servicing, which was managed in Non-core
and Legacy. Refer to “Note
29 Changes in organization and acquisitions
and disposals of subsidiaries and
businesses” in the “Consolidated financial
statements” section of the UBS
Group Annual Report 2024 for
more information.
5 Reflects the repayment of the Emergency Liquidity Assistance facility to the Swiss National Bank, which
was recognized in the balance sheet line Amounts due to banks.
6 Reflects cash flows
from securities financing transactions
measured at amortized cost
that use UBS debt
instruments as the underlying.
7 Includes only balances
with an original maturity
of three months or
less.
8 Money market
paper is included in the balance sheet
under Financial assets at fair value
not held for trading (30 June
2025: USD
2,431
m; 30 June 2024: USD
9,479
m), Other financial assets measured at
amortized cost (30 June
2025: USD
340
m; 30 June 2024:
USD
565
m), Financial assets measured
at fair value through
other comprehensive income
(30 June 2025: USD
140
m; 30 June 2024:
USD
344
m) and Financial assets
at fair value
held for trading (30 June 2025: USD
127
m; 30 June 2024: USD
430
m).
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
61
Notes to the UBS Group AG interim consolidated
financial statements (unaudited)
Note 1
Basis of accounting
Basis of preparation
The consolidated
financial statements
(the financial
statements) of
UBS Group AG and
its subsidiaries
(together,
UBS
or
the
Group)
are
prepared
in
accordance
with
IFRS
Accounting
Standards, as
issued
by
the
International
Accounting Standards
Board (the
IASB), and
are
presented in
US
dollars. These
interim
financial statements
are
prepared in accordance with IAS 34,
Interim Financial Reporting
.
In preparing
these interim financial
statements, the same
accounting policies and
methods of
computation have
been applied as in the
UBS Group AG consolidated annual
financial statements for
the period ended 31 December
- These interim financial statements are
unaudited and should be read
in conjunction with: UBS Group AG’s
audited
consolidated
financial
statements
in
the
UBS Group
Annual
Report
2024;
the
“Management
report”
sections of this
report, specifically
the disclosures
in the “Recent
developments” section
of this report
regarding the
sale
of
O’Connor
hedge
funds
and
the
ownership
increase
in
UBS
Securities
China
and
in
the
“UBS
Group
performance,
business
divisions
and
Group
Items”
section
of
this
report
regarding
the
sale
of
Select
Portfolio
Servicing (the US mortgage servicing business of
Credit Suisse) and the transactions related
to Swisscard;
and the
information about significant transactions disclosed in
the UBS Group
first quarter 2025 report.
In the opinion of
management, all necessary adjustments have been made
for a fair presentation of
the Group’s financial position,
results of operations and cash flows.
Preparation of
these interim financial
statements requires management
to make
estimates and
assumptions that
affect
the
reported
amounts
of
assets,
liabilities,
income,
expenses
and
disclosures
of
contingent
assets
and
liabilities. These estimates
and assumptions are based
on the best available
information. Actual results
in the future
could differ
from such
estimates and
differences may
be material
to the
financial statements.
Revisions to
estimates,
based on regular
reviews, are recognized
in the period
in which they
occur. For more
information about areas of
estimation
uncertainty
that
are
considered
to
require
critical
judgment,
refer
to
“Note 1a
Material
accounting
policies” in the “Consolidated financial statements”
section of the UBS Group Annual Report
2024.
Currency translation rates
The
following table
shows the
rates of
the main
currencies used
to translate
the financial
information of
UBS’s
operations with a functional currency other
than the US dollar into US dollars.
Currency translation rates
Closing exchange rate
Average rate
1
As of
For the quarter ended
Year-to-date
30.6.25
31.3.25
31.12.24
30.6.24
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
1 CHF
1.26
1.13
1.10
1.11
1.23
1.11
1.10
1.17
1.12
1 EUR
1.18
1.08
1.04
1.07
1.15
1.05
1.07
1.10
1.08
1 GBP
1.37
1.29
1.25
1.26
1.35
1.26
1.26
1.31
1.26
100 JPY
0.69
0.67
0.63
0.62
0.70
0.66
0.63
0.68
0.65
1 Monthly income statement items of operations with a functional currency other than the US dollar are translated into US dollars using month-end rates. Disclosed average rates for a quarter represent an average of
three month-end rates,
weighted according
to the
income and expense
volumes of
all operations
of the
Group with the
same functional
currency for
each month.
Weighted average
rates for
individual business
divisions may deviate from the weighted average rates for the Group.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
62
Note 2
Segment reporting
UBS’s business divisions
are organized globally into
five business divisions:
Global Wealth Management,
Personal &
Corporate Banking, Asset Management, the
Investment Bank,
and Non-core and Legacy. All five business
divisions
are supported by Group Items and qualify as reportable segments for the purpose of segment reporting. Together
with Group Items they reflect the management
structure of the Group.
›
Refer to the “Consolidated financial statements” section of the UBS Group Annual Report 2024 for more
information about the Group’s reporting segments
Segment reporting
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
UBS Group
For the six months ended 30 June 2025
Net interest income
3,413
2,605
(34)
(1,575)
(23)
(791)
3,595
Non-interest income
9,309
1,941
1,547
7,724
225
327
21,074
Total revenues
12,722
4,547
1,513
6,149
202
(465)
24,668
Credit loss expense / (release)
9
167
0
83
6
(1)
263
Operating expenses
10,150
3,078
1,224
4,788
838
2
20,080
Operating profit / (loss) before tax
2,563
1,302
289
1,279
(642)
(465)
4,325
Tax expense / (benefit)
221
Net profit / (loss)
4,105
As of 30 June 2025
Total assets
584,157
481,297
25,873
520,571
38,279
19,813
1,669,991
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
UBS Group
For the six months ended 30 June 2024
Net interest income
3,698
2,859
(31)
(1,841)
57
(1,267)
3,475
Non-interest income
8,498
1,836
1,574
7,394
1,345
520
21,167
Total revenues
12,196
4,695
1,543
5,554
1,402
(747)
24,642
Credit loss expense / (release)
(4)
146
0
26
35
(2)
201
Operating expenses
10,228
2,800
1,303
4,496
1,818
(48)
20,597
Operating profit / (loss) before tax
1,972
1,748
241
1,032
(451)
(699)
3,844
Tax expense / (benefit)
905
Net profit / (loss)
2,939
As of 31 December 2024
Total assets
559,601
447,068
22,702
453,422
68,260
13,975
1,565,028
Note 3
Net interest income
Net interest income
For the quarter ended
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Interest income from loans and deposits
1
6,240
6,105
8,403
12,345
17,492
Interest income from securities financing transactions measured
at amortized cost
2
915
839
1,136
1,754
2,354
Interest income from other financial instruments measured
at amortized cost
406
360
328
766
675
Interest income from debt instruments measured at fair
value through other comprehensive income
44
27
26
71
54
Interest income from derivative instruments designated as cash
flow hedges
(322)
(351)
(574)
(672)
(1,175)
Total interest income from financial instruments measured at amortized cost and fair
value through other comprehensive income
7,283
6,981
9,320
14,264
19,399
Interest expense on loans and deposits
3
3,582
3,698
5,074
7,280
10,513
Interest expense on securities financing transactions measured
at amortized cost
4
552
415
541
967
1,035
Interest expense on debt issued
2,639
2,794
3,655
5,433
7,395
Interest expense on lease liabilities
43
41
49
85
99
Total interest expense from financial instruments measured at amortized cost
6,817
6,948
9,319
13,765
19,042
Total net interest income from financial instruments measured at amortized cost and fair
value through other comprehensive
income
466
33
2
498
357
Net interest income from financial instruments measured at fair value through profit
or loss and other
1,500
1,597
1,533
3,096
3,118
Total net interest income
1,965
1,629
1,535
3,595
3,475
1 Consists of interest income from
cash and balances at central banks, amounts due
from banks, and cash collateral receivables
on derivative instruments, as well as negative interest on
amounts due to banks, customer
deposits, and cash
collateral payables
on derivative
instruments.
2 Includes interest
income on receivables
from securities financing
transactions and
negative interest, including
fees, on
payables from
securities
financing transactions.
3 Consists of interest expense on amounts due to banks, cash collateral payables on derivative instruments, and customer deposits, as well as negative interest on cash and balances at central
banks, amounts due
from banks,
and cash collateral
receivables on derivative
instruments.
4 Includes interest
expense on payables
from securities financing
transactions and negative
interest, including fees,
on
receivables from securities financing transactions.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
63
Note 4
Net fee and commission income
Net fee and commission income
For the quarter ended
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Underwriting fees
246
187
233
433
427
M&A and corporate finance fees
225
244
272
470
530
Brokerage fees
1,261
1,376
1,144
2,636
2,295
Investment fund fees
1,601
1,543
1,401
3,143
2,658
Portfolio management and related services
3,165
3,104
3,071
6,269
6,121
Other
864
972
1,090
1,836
2,259
Total fee and commission income
1
7,361
7,426
7,211
14,787
14,291
of which: recurring
4,762
4,610
4,484
9,372
8,891
of which: transaction-based
2,560
2,783
2,697
5,342
5,338
of which: performance-based
39
33
30
73
62
Fee and commission expense
653
649
679
1,302
1,268
Net fee and commission income
6,708
6,777
6,531
13,485
13,023
1 Reflects third-party fee and commission income for the second quarter
of 2025 of USD
4,328
m for Global Wealth Management (first quarter of 2025: USD
4,431
m; second quarter of 2024: USD
4,011
m), USD
789
m
for Personal & Corporate
Banking (first quarter of 2025:
USD
730
m; second quarter of 2024:
USD
876
m), USD
984
m for Asset Management (first
quarter of 2025: USD
939
m; second quarter of 2024:
USD
924
m),
USD
1,250
m for the Investment Bank (first
quarter of 2025: USD
1,243
m; second quarter of 2024: USD
1,322
m), USD
7
m for Non-core and Legacy (first
quarter of 2025: USD
68
m; second quarter of 2024: USD
125
m)
and USD
3
m for Group Items (first quarter of 2025: USD
14
m; second quarter of 2024: negative USD
47
m).
Note 5
Other income
Other income
For the quarter ended
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Associates, joint ventures and subsidiaries
Net gains / (losses) from acquisitions and disposals of
subsidiaries
1
4
94
2
(2)
98
2
(3)
Net gains / (losses) from disposals of investments in associates
and joint ventures
0
3
2
3
0
Share of net profit / (loss) of associates and joint ventures
21
136
3
52
157
3
110
Total
25
233
52
257
107
Income from properties
4
9
3
15
12
29
Net gains / (losses) from properties held for sale
(5)
8
(2)
3
(4)
Other
5
2
(31)
89
(29)
145
Total other income
30
213
154
243
278
1 Includes foreign exchange gains /
(losses) reclassified from other comprehensive
income related to the disposal
or closure of foreign operations.
2 Includes a gain of USD
97
m recognized upon completion of
the
sale of Select
Portfolio Servicing,
the US
mortgage servicing
business of
Credit Suisse,
which was
managed in
Non-core and
Legacy. Refer
to “Note
29 Changes
in organization
and acquisitions
and disposals
of
subsidiaries and businesses” in the “Consolidated financial statements” section of the UBS Group Annual Report 2024 for more information.
3 Includes a gain of USD
64
m related to UBS’s share of income recorded
by Swisscard for the sale of the Credit Suisse
card portfolios to UBS. Refer to “Note 29 Changes in
organization and acquisitions and disposals of subsidiaries and businesses” in
the “Consolidated financial statements”
section of the UBS Group Annual Report 2024 for more information.
4 Includes rent received from third parties.
5 Includes losses of USD
27
m for the second quarter of 2025 related to the repurchase of UBS’s own
debt instruments (first quarter of 2025: losses of USD
36
m; second quarter of 2024: gains of USD
4
m).
Note 6
Personnel expenses
Personnel expenses
For the quarter ended
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Salaries and variable compensation
1
5,900
5,968
6,058
11,868
11,922
of which: variable compensation – financial advisors
2
1,335
1,409
1,291
2,744
2,558
Contractors
79
72
82
152
168
Social security
416
405
419
821
828
Post-employment benefit plans
321
349
309
671
676
Other personnel expenses
260
237
251
497
476
Total personnel expenses
6,976
7,032
7,119
14,008
14,068
1 Includes role-based
allowances.
2 Financial advisor
compensation consists of
cash compensation, determined
using a formulaic
approach based on
production, and deferred
awards. It
also includes expenses
related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
64
Note 7
General and administrative expenses
General and administrative expenses
For the quarter ended
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Outsourcing costs
381
378
463
760
886
Technology costs
592
573
567
1,166
1,154
Consulting, legal and audit fees
317
287
394
604
797
Real estate and logistics costs
284
239
302
523
590
Market data services
178
168
188
346
387
Marketing and communication
145
123
137
268
251
Travel and entertainment
89
74
87
163
159
Litigation, regulatory and similar matters
1
(412)
114
(153)
(298)
(158)
Other
306
475
2
334
781
2
665
Total general and administrative expenses
1,881
2,431
2,318
4,312
4,731
1 Reflects the net increase /
(decrease) in provisions for litigation,
regulatory and similar matters recognized
in the income statement. The
quarters and six-month periods ended 30
June 2025 and 30 June
2024 also
reflect decreases in acquired contingent liabilities measured under IFRS 3. Refer to Note 14b for more information.
2 Includes a USD
180
m expense related to the payment to Swisscard for the sale of the Credit Suisse
card portfolios to UBS.
Refer to “Note 29 Changes
in organization and acquisitions and
disposals of subsidiaries and businesses”
in the “Consolidated financial statements”
section of the UBS Group
Annual Report
2024 for more information.
Note 8
Expected credit loss measurement
a) Credit loss expense / release
Total net
credit loss
expenses in
the second
quarter of
2025 were
USD
163
m, reflecting
USD
38
m net
expenses
related to performing positions and USD
125
m net expenses on credit-impaired positions.
Stage 1 and 2 net expenses of USD
38
m included scenario-update-related net expenses of USD
23
m, mainly from
corporate lending and portfolio changes,
and USD
13
m expenses in anticipation of a portfolio re-calibration
in the
large corporate clients segment.
Credit loss expenses of USD
125
m for credit-impaired positions primarily related to Personal & Corporate Banking
and Investment Bank exposures related to a
small number of corporate counterparties.
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Purchased
Total
For the quarter ended 30.6.25
Global Wealth Management
(3)
6
0
3
Personal & Corporate Banking
22
91
1
114
Asset Management
0
0
0
0
Investment Bank
19
29
0
48
Non-core and Legacy
0
0
(2)
(2)
Group Items
0
0
0
0
Total
38
126
(1)
163
For the quarter ended 31.3.25
Global Wealth Management
(7)
13
(1)
6
Personal & Corporate Banking
(8)
61
0
53
Asset Management
0
0
0
0
Investment Bank
(5)
40
0
35
Non-core and Legacy
0
(1)
8
7
Group Items
(1)
0
0
(1)
Total
(21)
113
8
100
For the quarter ended 30.6.24
Global Wealth Management
(13)
12
0
(1)
Personal & Corporate Banking
(15)
132
(14)
103
Asset Management
0
0
0
0
Investment Bank
7
(14)
1
(6)
Non-core and Legacy
(1)
3
(2)
(1)
Group Items
0
0
0
0
Total
(22)
132
(15)
95
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
65
Note 8
Expected credit loss measurement (continued)
b) Changes to ECL models, scenarios and
scenario weights
Scenarios and scenario weights
The expected
credit loss
(ECL) scenarios,
along with
their related
macroeconomic factors and
market data,
were
reviewed in light of
the economic and political
conditions prevailing in
the second quarter
of 2025 through a
series
of governance meetings, with input and feedback from UBS Risk and Finance
experts across the business divisions
and regions.
The baseline scenario was updated with the latest macroeconomic forecasts as of 30 June 2025. The assumptions
on a calendar-year basis are included
in the table below and have been
revised downward in the US, the Eurozone
and Japan
relative to
the start
of 2025
in the
second half
of the
year following
the announcement
of US
tariffs
imposed on imports from other countries. In general, forecasts for Swiss GDP
growth and unemployment are less
optimistic
than
in
2024,
due
to
spillover
effects
from
the
US
tariff
announcements. Expectations
for
long-term
interest rates were revised and are marginally lower,
while forecasts for house prices remained unchanged.
At the beginning of the first quarter of
2025, UBS replaced the stagflationary geopolitical
crisis scenario applied at
the end of 2024 with the
global crisis scenario,
as the severe downside scenario. It targets risks such
as sovereign
defaults, low
interest rates,
a crisis
in the
Eurozone and
significant emerging
market stress.
The mild
stagflation
crisis scenario
replaced the
mild debt
crisis scenario
as the
mild downside
scenario. In
the mild
stagflation crisis
scenario, interest rates
are assumed to
rise rather than
decline, as in
the previously
applied mild debt
crisis scenario.
However, the declines in GDP and equities are
similar.
UBS kept the scenarios and scenario
weights in line with those applied
in the UBS Group first quarter 2025
report.
All of the scenarios,
including the asset
price appreciation
and the baseline
scenarios,
have been updated based
on
the latest macroeconomic forecasts as of 30 June 2025.
The assumptions on a calendar-year basis are
included in
t
he table below.
Comparison of shock factors
Baseline
Key parameters
2024
2025
2026
Real GDP growth (annual percentage change)
US
2.8
1.6
1.2
Eurozone
0.8
0.7
1.0
Switzerland
1.4
0.9
1.4
Unemployment rate (%, annual average)
US
4.0
4.3
4.8
Eurozone
6.4
6.5
6.6
Switzerland
2.5
2.9
2.9
Fixed income: 10-year government bonds (%, Q4)
USD
4.6
4.2
4.4
EUR
2.4
2.7
2.8
CHF
0.3
0.5
0.6
Real estate (annual percentage change, Q4)
US
3.8
2.3
3.7
Eurozone
4.2
2.7
3.4
Switzerland
0.9
4.0
2.5
Economic scenarios and weights applied
Assigned weights in %
ECL scenario
30.6.25
31.3.25
30.6.24
Asset price appreciation
5.0
5.0
–
Baseline
50.0
50.0
60.0
Mild debt crisis
–
–
15.0
Stagflationary geopolitical crisis
–
–
25.0
Mild stagflation crisis
30.0
30.0
–
Global crisis
15.0
15.0
–
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
66
Note 8
Expected credit loss measurement (continued)
c) ECL-relevant balance sheet and off-balance
sheet positions including ECL allowances
and provisions
The following tables
provide information
about financial
instruments and
certain non-financial
instruments that
are
subject
to
ECL
requirements.
For
amortized-cost
instruments,
the
carrying
amount
represents
the
maximum
exposure to credit risk, taking
into account the allowance for
credit losses. Financial assets measured at
fair value
through other comprehensive
income (FVOCI) are
also subject to ECL;
however, unlike amortized-cost
instruments,
the allowance
for credit
losses for
FVOCI instruments
does not
reduce the
carrying amount
of these financial
assets.
Instead, the
carrying amount
of financial
assets measured
at FVOCI
represents the
maximum exposure
to credit
risk.
In addition to recognized financial assets, certain off-balance sheet financial instruments and other credit lines are
also subject to ECL.
The maximum exposure to
credit risk for off-balance
sheet financial instruments is calculated
based on the maximum contractual amounts.
ECL-relevant balance sheet and off-balance sheet positions
USD m
30.6.25
Carrying amount
1
ECL allowances
2
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Cash and balances at central banks
236,193
236,007
20
0
167
(72)
0
(29)
0
(43)
Amounts due from banks
21,527
21,425
102
0
0
(10)
(5)
(5)
0
0
Receivables from securities financing transactions measured at
amortized cost
110,161
110,161
0
0
0
(3)
(3)
0
0
0
Cash collateral receivables on derivative instruments
45,478
45,478
0
0
0
0
0
0
0
0
Loans and advances to customers
646,048
616,026
25,488
3,861
673
(2,343)
(343)
(311)
(1,395)
(293)
of which: Private clients with mortgages
285,106
272,055
11,620
1,391
41
(142)
(43)
(49)
(38)
(12)
of which: Real estate financing
92,450
86,557
5,572
313
8
(69)
(25)
(36)
(8)
0
of which: Large corporate clients
26,647
22,894
3,098
418
237
(647)
(116)
(97)
(298)
(136)
of which: SME clients
24,689
20,887
2,496
1,210
95
(1,018)
(74)
(85)
(823)
(35)
of which: Lombard
161,022
160,775
147
47
53
(64)
(11)
0
(27)
(26)
of which: Credit cards
2,315
1,791
479
45
0
(48)
(7)
(12)
(29)
0
of which: Commodity trade finance
4,273
4,236
25
12
0
(91)
(8)
0
(82)
0
of which: Ship / aircraft financing
8,708
7,903
727
78
0
(20)
(15)
(5)
0
0
of which: Consumer financing
2,973
2,684
131
89
69
(110)
(19)
(23)
(74)
5
Other financial assets measured at amortized cost
72,211
71,415
620
171
5
(131)
(25)
(11)
(94)
(1)
of which: Loans to financial advisors
2,682
2,495
97
90
0
(39)
(3)
(1)
(35)
0
Total financial assets measured at amortized cost
1,131,618
1,100,512
26,229
4,032
844
(2,559)
(378)
(356)
(1,489)
(337)
Financial assets measured at fair value through other comprehensive
income
6,872
6,872
0
0
0
0
0
0
0
0
Total on-balance sheet financial assets in scope of ECL requirements
1,138,490
1,107,384
26,229
4,032
844
(2,559)
(378)
(356)
(1,489)
(337)
Total exposure
ECL provisions
2
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Guarantees
44,446
43,444
819
144
40
(96)
(14)
(21)
(61)
0
of which: Large corporate clients
7,728
7,154
480
67
26
(54)
(6)
(5)
(42)
0
of which: SME clients
3,280
3,007
219
48
7
(31)
(5)
(15)
(11)
0
of which: Financial intermediaries and hedge funds
26,604
26,516
87
0
0
(1)
(1)
0
0
0
of which: Lombard
3,958
3,933
1
24
0
(6)
0
0
(5)
0
of which: Commodity trade finance
1,874
1,873
1
0
0
(1)
(1)
0
0
0
Irrevocable loan commitments
82,046
77,132
4,688
199
27
(247)
(139)
(83)
(24)
(2)
of which: Large corporate clients
49,093
44,806
4,094
166
27
(195)
(101)
(74)
(18)
(1)
Forward starting reverse repurchase and securities borrowing
agreements
20,143
20,143
0
0
0
0
0
0
0
0
Unconditionally revocable loan commitments
150,771
147,962
2,582
227
0
(62)
(47)
(15)
0
0
of which: Real estate financing
8,237
7,929
309
0
0
(3)
(4)
1
0
0
of which: Large corporate clients
14,601
13,752
817
32
0
(15)
(8)
(5)
(2)
0
of which: SME clients
12,030
11,420
454
156
0
(26)
(20)
(6)
0
0
of which: Lombard
75,099
75,013
74
12
0
0
0
0
0
0
of which: Credit cards
11,566
11,045
518
3
0
(9)
(7)
(2)
0
0
Irrevocable committed prolongation of existing loans
5,201
5,182
19
0
0
(2)
(2)
0
0
0
Total off-balance sheet financial instruments and other credit lines
302,608
293,863
8,108
570
67
(406)
(201)
(118)
(85)
(2)
Total allowances and provisions
(2,966)
(579)
(474)
(1,574)
(338)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective
ECL allowances.
2 Negative balances are representative of a net improvement in
credit quality since the acquisition of the respective financial instrument, which is reflected as a negative ECL allowance.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
67
Note 8
Expected credit loss measurement (continued)
ECL-relevant balance sheet and off-balance sheet positions
USD m
31.3.25
Carrying amount
1
ECL allowances
2
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Cash and balances at central banks
231,370
231,207
18
0
145
(60)
0
(28)
0
(33)
Amounts due from banks
21,107
21,070
37
0
0
(9)
(5)
(4)
0
0
Receivables from securities financing transactions measured at
amortized cost
101,784
101,784
0
0
0
(3)
(3)
0
0
0
Cash collateral receivables on derivative instruments
38,994
38,994
0
0
0
0
0
0
0
0
Loans and advances to customers
594,150
567,285
22,470
3,582
813
(2,099)
(289)
(300)
(1,228)
(281)
of which: Private clients with mortgages
257,254
245,046
10,800
1,309
99
(133)
(39)
(50)
(36)
(8)
of which: Real estate financing
83,414
78,340
4,828
228
18
(62)
(26)
(32)
(4)
0
of which: Large corporate clients
25,097
21,923
2,115
740
320
(646)
(82)
(111)
(335)
(119)
of which: SME clients
21,787
18,381
2,287
996
122
(811)
(65)
(67)
(646)
(33)
of which: Lombard
152,821
152,732
1
32
55
(48)
(8)
0
(18)
(22)
of which: Credit cards
2,025
1,564
420
41
0
(44)
(8)
(11)
(26)
0
of which: Commodity trade finance
4,330
4,311
12
7
0
(81)
(8)
0
(73)
0
of which: Ship / aircraft financing
8,029
7,713
316
0
0
(19)
(16)
(4)
0
0
of which: Consumer financing
2,629
2,414
109
73
33
(92)
(16)
(19)
(62)
5
Other financial assets measured at amortized cost
66,513
65,766
560
176
11
(121)
(24)
(8)
(82)
(8)
of which: Loans to financial advisors
2,738
2,600
48
89
0
(40)
(3)
(1)
(36)
0
Total financial assets measured at amortized cost
1,053,918
1,026,106
23,085
3,758
969
(2,293)
(321)
(340)
(1,309)
(322)
Financial assets measured at fair value through other comprehensive
income
3,216
3,216
0
0
0
0
0
0
0
0
Total on-balance sheet financial assets in scope of ECL requirements
1,057,134
1,029,322
23,085
3,758
969
(2,293)
(321)
(340)
(1,309)
(322)
Total exposure
ECL provisions
2
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Guarantees
42,586
40,618
1,800
131
37
(60)
(12)
(20)
(27)
0
of which: Large corporate clients
7,103
6,487
530
64
23
(14)
(6)
(4)
(4)
0
of which: SME clients
2,885
2,529
316
31
8
(22)
(3)
(15)
(4)
0
of which: Financial intermediaries and hedge funds
25,139
24,249
890
0
0
(1)
(1)
0
0
0
of which: Lombard
3,591
3,561
0
30
0
(6)
(1)
0
(5)
0
of which: Commodity trade finance
2,160
2,158
1
0
0
(1)
(1)
0
0
0
Irrevocable loan commitments
79,463
75,299
3,906
217
40
(219)
(116)
(81)
(20)
(2)
of which: Large corporate clients
48,349
45,150
3,033
138
27
(160)
(84)
(59)
(16)
(2)
Forward starting reverse repurchase and securities borrowing
agreements
18,178
18,178
0
0
0
0
0
0
0
0
Unconditionally revocable loan commitments
144,102
140,458
3,442
202
0
(55)
(41)
(14)
0
0
of which: Real estate financing
7,384
7,030
354
0
0
(3)
(4)
1
0
0
of which: Large corporate clients
13,497
12,751
722
23
0
(15)
(8)
(5)
(2)
0
of which: SME clients
10,902
9,952
801
149
0
(23)
(18)
(5)
0
0
of which: Lombard
72,767
72,757
8
2
0
0
0
0
0
0
of which: Credit cards
10,285
9,815
467
3
0
(8)
(6)
(2)
0
0
Irrevocable committed prolongation of existing loans
4,129
4,126
2
2
0
(3)
(3)
0
0
0
Total off-balance sheet financial instruments and other credit lines
288,458
278,679
9,150
551
78
(337)
(172)
(115)
(47)
(2)
Total allowances and provisions
(2,629)
(493)
(455)
(1,357)
(324)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL allowances.
2 Negative balances are representative of a net improvement in credit
quality since the acquisition of the respective financial instrument, which is reflected as a negative ECL allowance.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
68
N
ote 8
Expected credit loss measurement (continued)
ECL-relevant balance sheet and off-balance sheet positions
USD m
31.12.24
Carrying amount
1
ECL allowances
2
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Cash and balances at central banks
223,329
223,201
13
0
114
(47)
0
(21)
0
(25)
Amounts due from banks
18,903
18,704
198
0
0
(36)
(1)
(5)
0
(30)
Receivables from securities financing transactions measured at
amortized cost
118,301
118,301
0
0
0
(2)
(2)
0
0
0
Cash collateral receivables on derivative instruments
43,959
43,959
0
0
0
0
0
0
0
0
Loans and advances to customers
579,967
553,532
22,049
3,565
820
(1,978)
(276)
(323)
(1,134)
(244)
of which: Private clients with mortgages
249,756
239,540
8,987
1,146
84
(160)
(46)
(70)
(30)
(14)
of which: Real estate financing
82,602
78,410
3,976
195
20
(58)
(24)
(27)
(7)
0
of which: Large corporate clients
25,286
20,816
3,462
707
301
(573)
(72)
(123)
(277)
(100)
of which: SME clients
20,768
17,403
2,265
952
148
(742)
(55)
(47)
(613)
(26)
of which: Lombard
147,504
147,136
260
48
61
(42)
(6)
0
(18)
(18)
of which: Credit cards
1,978
1,533
406
39
0
(41)
(6)
(11)
(25)
0
of which: Commodity trade finance
4,203
4,089
106
8
0
(81)
(9)
0
(71)
0
of which: Ship / aircraft financing
7,848
6,974
874
0
0
(31)
(14)
(16)
0
0
of which: Consumer financing
2,820
2,480
114
159
67
(93)
(15)
(19)
(62)
4
Other financial assets measured at amortized cost
58,835
58,209
436
178
12
(125)
(25)
(7)
(84)
(8)
of which: Loans to financial advisors
2,723
2,568
59
95
0
(41)
(4)
(1)
(37)
0
Total financial assets measured at amortized cost
1,043,293
1,015,906
22,697
3,743
946
(2,187)
(304)
(357)
(1,218)
(307)
Financial assets measured at fair value through other comprehensive
income
2,195
2,195
0
0
0
0
0
0
0
0
Total on-balance sheet financial assets in scope of ECL requirements
1,045,488
1,018,102
22,697
3,743
946
(2,187)
(304)
(357)
(1,218)
(307)
Total exposure
ECL provisions
2
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Guarantees
40,279
38,858
1,242
151
27
(64)
(16)
(24)
(24)
0
of which: Large corporate clients
7,817
7,096
635
78
8
(17)
(7)
(9)
(2)
0
of which: SME clients
2,524
2,074
393
41
15
(26)
(5)
(15)
(7)
0
of which: Financial intermediaries and hedge funds
21,590
21,449
141
0
0
(1)
(1)
0
0
0
of which: Lombard
3,709
3,652
24
29
4
(6)
(1)
0
(5)
0
of which: Commodity trade finance
2,678
2,676
2
0
0
(1)
(1)
0
0
0
Irrevocable loan commitments
79,579
75,158
4,178
187
56
(177)
(105)
(61)
(10)
(2)
of which: Large corporate clients
47,381
43,820
3,393
125
43
(155)
(91)
(54)
(8)
(2)
Forward starting reverse repurchase and securities borrowing
agreements
24,896
24,896
0
0
0
0
0
0
0
0
Unconditionally revocable loan commitments
145,665
143,262
2,149
250
5
(76)
(59)
(17)
0
0
of which: Real estate financing
7,674
7,329
345
0
0
(6)
(4)
(2)
0
0
of which: Large corporate clients
14,690
14,089
584
14
3
(22)
(14)
(7)
(2)
0
of which: SME clients
9,812
9,289
333
190
0
(34)
(28)
(6)
0
0
of which: Lombard
73,267
73,181
84
0
1
0
0
0
0
0
of which: Credit cards
10,074
9,604
467
3
0
(8)
(6)
(2)
0
0
Irrevocable committed prolongation of existing loans
4,608
4,602
4
2
0
(3)
(3)
0
0
0
Total off-balance sheet financial instruments and other credit lines
295,027
286,776
7,572
590
89
(320)
(183)
(102)
(34)
(2)
Total allowances and provisions
(2,507)
(487)
(459)
(1,253)
(309)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL allowances.
2 Negative balances are representative of a net improvement in credit
quality since the acquisition of the respective financial instrument, which is reflected as a negative ECL allowance.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
69
Note 8
Expected credit loss measurement (continued)
The table
below provides information
about the
gross carrying amount
of exposures subject
to ECL
and the
ECL
coverage ratio for UBS’s core
loan portfolios (i.e.
Loans and advances to customers
and
Loans to financial advisors
)
and
relevant
off-balance
sheet
exposures.
Cash
and
balances
at
central
banks
,
Amounts
due
from
banks
,
Receivables from
securities
financing transactions
,
Cash collateral
receivables
on derivative
instruments
and
Financial
assets measured
at fair value
through other
comprehensive income
are not
included in the
table below,
due to
their
lower sensitivity to ECL.
ECL coverage ratios are calculated by dividing ECL
allowances and provisions by the gross carrying amount of the
related exposures.
The overall
coverage ratio
for performing
positions increased
by
1
basis point
to
11
basis points
as of
30 June 2025.
Compared with 31 March
2025, coverage ratios
for performing positions
related to real
estate lending (on-balance
sheet) were unchanged
at
4
basis points, and
coverage ratios for
performing positions related
to corporate lending
(on-balance sheet) increased by
3
basis points to
75
basis points.
Coverage ratios for core loan portfolio
30.6.25
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
285,249
272,098
11,669
1,429
53
5
2
42
3
266
2,234
Real estate financing
92,519
86,582
5,608
320
9
7
3
64
7
235
376
Total real estate lending
377,768
358,680
17,277
1,749
61
6
2
49
4
260
1,970
Large corporate clients
27,294
23,011
3,194
716
373
237
51
302
81
4,164
3,651
SME clients
25,706
20,961
2,581
2,033
131
396
35
331
68
4,048
2,710
Total corporate lending
53,001
43,972
5,776
2,749
504
314
43
315
75
4,078
3,406
Lombard
161,086
160,787
147
73
78
4
1
0
1
3,643
3,294
Credit cards
2,363
1,798
491
74
0
201
36
250
82
3,898
0
Commodity trade finance
4,364
4,244
25
94
0
208
19
0
19
8,714
0
Ship / aircraft financing
8,728
7,917
732
78
0
23
18
70
23
0
0
Consumer financing
3,083
2,703
154
163
64
356
71
1,466
146
4,531
15
Other loans and advances to customers
37,999
36,269
1,197
275
259
35
7
32
8
625
3,425
Loans to financial advisors
2,721
2,498
99
125
0
145
13
140
18
2,777
0
Total other lending
220,344
216,216
2,845
882
401
23
4
159
6
2,984
2,727
Total
1
651,112
618,868
25,898
5,381
966
37
6
121
10
2,658
3,034
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
11,178
10,950
222
6
0
4
3
25
4
0
0
Real estate financing
9,734
9,401
333
0
0
8
9
0
8
0
0
Total real estate lending
20,912
20,351
555
6
0
6
6
0
6
0
0
Large corporate clients
71,511
65,801
5,392
265
53
37
17
156
28
2,359
271
SME clients
17,371
16,346
780
237
7
46
22
358
37
718
425
Total corporate lending
88,882
82,148
6,172
503
60
39
18
182
30
1,584
289
Lombard
82,536
82,424
75
36
0
1
1
0
1
1,508
0
Credit cards
11,566
11,045
518
3
0
8
6
36
8
0
0
Commodity trade finance
2,230
2,223
6
0
0
3
3
46
3
0
0
Ship / aircraft financing
2,430
2,390
41
0
0
0
0
0
0
0
0
Consumer financing
327
327
0
0
0
2
2
0
2
0
0
Financial intermediaries and hedge funds
28,287
27,748
539
0
0
2
2
7
2
0
0
Other off-balance sheet commitments
45,295
45,064
203
22
7
6
5
207
6
46
0
Total other lending
172,671
171,221
1,381
61
7
3
2
47
3
903
0
Total
2
282,465
273,720
8,108
570
67
14
7
146
11
1,494
229
Total on- and off-balance sheet
3
933,577
892,588
34,006
5,950
1,033
30
6
127
11
2,546
2,852
1 Includes Loans and advances
to customers and Loans
to financial advisors,
which are presented on
the balance sheet line Other
financial assets measured
at amortized cost.
2 Excludes Forward
starting reverse
repurchase and securities borrowing agreements.
3 Includes on-balance sheet exposure, gross and off-balance sheet exposure (notional) and the related
ECL coverage ratio (bps).
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
70
Note 8
Expected credit loss measurement (continued)
Coverage ratios for core loan portfolio
31.3.25
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
257,387
245,085
10,850
1,345
107
5
2
46
3
269
706
Real estate financing
83,476
78,366
4,860
232
18
7
3
65
7
187
130
Total real estate lending
340,863
323,451
15,710
1,577
125
6
2
52
4
257
622
Large corporate clients
25,744
22,004
2,225
1,075
438
251
37
497
79
3,120
2,703
SME clients
22,598
18,446
2,354
1,642
155
359
35
286
64
3,934
2,106
Total corporate lending
48,341
40,451
4,580
2,717
593
302
36
389
72
3,612
2,548
Lombard
152,869
152,740
1
50
77
3
1
31
1
3,652
2,811
Credit cards
2,069
1,572
431
66
0
214
49
255
94
3,847
0
Commodity trade finance
4,410
4,319
12
80
0
183
18
10
18
9,154
5,616
Ship / aircraft financing
8,048
7,729
319
0
0
24
20
117
24
0
0
Consumer financing
2,721
2,430
128
135
28
340
65
1,501
137
4,624
0
Other loans and advances to customers
36,927
34,883
1,590
184
270
44
6
44
8
1,452
3,907
Loans to financial advisors
2,778
2,603
49
125
0
144
13
174
16
2,870
0
Total other lending
209,822
206,275
2,530
640
376
23
4
165
6
3,778
3,258
Total
1
599,026
570,177
22,820
4,935
1,094
36
5
132
10
2,561
2,572
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
9,352
9,083
264
6
0
4
3
33
4
421
0
Real estate financing
8,225
7,851
374
0
0
8
10
0
8
0
0
Total real estate lending
17,578
16,934
638
6
0
6
6
0
6
416
0
Large corporate clients
69,056
64,495
4,286
225
49
27
15
160
24
972
313
SME clients
15,801
14,290
1,268
223
21
47
19
293
41
475
190
Total corporate lending
84,857
78,785
5,554
448
70
31
16
190
27
725
277
Lombard
79,638
79,597
8
33
0
1
1
14
1
1,602
0
Credit cards
10,285
9,815
467
3
0
8
6
37
8
0
0
Commodity trade finance
3,019
3,001
17
0
0
2
2
14
2
0
0
Ship / aircraft financing
2,520
2,486
34
0
0
0
0
0
0
0
0
Consumer financing
377
377
0
0
0
3
3
0
3
0
0
Financial intermediaries and hedge funds
29,826
28,309
1,517
0
0
1
1
3
1
0
0
Other off-balance sheet commitments
42,180
41,197
914
61
8
9
5
86
7
1,536
0
Total other lending
167,845
164,782
2,958
97
8
4
2
34
3
1,506
0
Total
2
270,279
260,501
9,150
551
78
12
7
126
11
859
228
Total on- and off-balance sheet
3
869,306
830,678
31,969
5,486
1,172
28
6
130
10
2,390
2,416
1 Includes Loans and advances to
customers and Loans to financial
advisors, which are
presented on the balance sheet
line Other financial assets measured
at amortized cost.
2 Excludes Forward starting
reverse
repurchase and securities borrowing agreements.
3 Includes on-balance sheet exposure, gross and off-balance sheet exposure (notional) and the related
ECL coverage ratio (bps).
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
71
Note 8
Expected credit loss measurement (continued)
Coverage ratios for core loan portfolio
31.12.24
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
249,916
239,586
9,056
1,176
98
6
2
77
5
257
1,447
Real estate financing
82,660
78,434
4,003
202
20
7
3
67
6
353
2
Total real estate lending
332,576
318,020
13,059
1,378
118
7
2
74
5
271
1,203
Large corporate clients
25,859
20,888
3,585
983
402
222
35
344
80
2,814
2,500
SME clients
21,510
17,459
2,312
1,565
174
345
32
205
52
3,918
1,474
Total corporate lending
47,369
38,347
5,897
2,549
576
278
33
290
67
3,492
2,190
Lombard
147,547
147,141
260
66
79
3
0
8
0
2,719
2,317
Credit cards
2,019
1,539
416
64
0
205
39
256
85
3,857
0
Commodity trade finance
4,284
4,098
106
79
0
189
22
40
23
8,984
4,226
Ship / aircraft financing
7,879
6,988
891
0
0
39
20
184
39
0
0
Consumer financing
2,912
2,495
133
221
63
318
62
1,449
132
2,786
0
Other loans and advances to customers
37,359
35,179
1,610
342
228
42
8
57
10
917
3,909
Loans to financial advisors
2,764
2,571
60
132
0
149
14
159
17
2,785
0
Total other lending
204,764
200,012
3,477
905
370
24
4
164
7
2,691
2,804
Total
1
584,708
556,380
22,433
4,831
1,064
35
5
145
10
2,424
2,294
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
8,473
8,271
176
25
1
4
4
22
4
84
0
Real estate financing
8,694
8,300
394
0
0
7
6
33
7
0
0
Total real estate lending
17,167
16,571
570
25
1
6
5
30
6
84
0
Large corporate clients
69,892
65,009
4,612
217
54
28
17
150
26
588
290
SME clients
13,944
12,788
842
287
27
53
30
324
48
281
0
Total corporate lending
83,837
77,797
5,454
504
81
32
19
177
30
413
186
Lombard
80,390
80,235
120
30
4
1
0
1
0
1,764
0
Credit cards
10,074
9,604
467
3
0
8
6
36
8
0
0
Commodity trade finance
3,487
3,464
23
0
0
3
3
51
3
0
0
Ship / aircraft financing
2,669
2,663
6
0
0
13
13
49
13
0
0
Consumer financing
134
134
0
0
0
6
6
0
6
0
0
Financial intermediaries and hedge funds
19,609
19,145
464
0
0
1
1
8
1
0
0
Other off-balance sheet commitments
52,765
52,268
468
27
2
4
2
28
2
2,903
0
Total other lending
169,127
167,512
1,549
61
6
2
1
23
2
2,171
0
Total
2
270,131
261,880
7,572
590
89
12
7
135
11
580
171
Total on- and off-balance sheet
3
854,839
818,260
30,006
5,421
1,153
27
6
142
10
2,223
2,131
1 Includes Loans and advances to
customers and Loans to financial
advisors, which are presented on
the balance sheet line Other
financial assets measured at amortized cost.
2 Excludes Forward starting
reverse
repurchase and securities borrowing agreements.
3 Includes on-balance sheet exposure, gross and off-balance sheet exposure (notional) and the related
ECL coverage ratio (bps).
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
72
Note 9
Fair value measurement
a) Fair value hierarchy
The fair
value hierarchy
classification of
financial and
non-financial assets
and liabilities
measured at
fair value
is
summarized in the table below.
During the
first six
months of
2025,
assets and
liabilities that
were
transferred from
Level 2 to
Level 1, or
from
L
evel 1 to Level 2, and were held for the entire
reporting period were not material.
Determination of fair values from quoted market prices or valuation techniques
1
30.6.25
31.3.25
31.12.24
USD m
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial assets measured at fair value on a recurring basis
Financial assets at fair value held for trading
134,753
30,988
3,454
169,195
133,772
27,799
3,665
165,236
128,393
27,564
3,108
159,065
of which: Equity instruments
117,030
370
155
117,556
117,456
320
138
117,914
116,501
430
91
117,022
of which: Government bills / bonds
8,997
3,715
139
12,851
8,304
3,468
46
11,817
4,443
3,261
41
7,746
of which: Investment fund units
7,554
874
96
8,525
7,180
949
149
8,279
6,537
987
151
7,675
of which: Corporate and municipal bonds
1,167
22,710
757
24,634
828
20,606
876
22,310
911
17,462
838
19,211
of which: Loans
0
3,145
2,172
5,317
0
2,254
2,292
4,545
0
5,200
1,799
6,998
of which: Asset-backed securities
4
168
134
306
4
197
162
363
1
219
153
373
Derivative financial instruments
1,315
165,530
3,151
169,996
1,372
134,204
2,459
138,035
795
181,965
2,792
185,551
of which: Foreign exchange
815
77,598
81
78,494
570
48,895
71
49,536
472
100,328
66
100,867
of which: Interest rate
0
37,105
884
37,988
0
37,566
898
38,464
0
40,553
878
41,431
of which: Equity / index
0
44,112
1,255
45,367
0
39,940
937
40,877
0
35,747
1,129
36,876
of which: Credit
0
2,310
928
3,238
0
2,668
517
3,185
0
2,555
581
3,136
of which: Commodities
2
4,267
2
4,272
2
4,989
35
5,026
1
2,599
17
2,617
Brokerage receivables
0
29,068
0
29,068
0
28,747
0
28,747
0
25,858
0
25,858
Financial assets at fair value not held for trading
44,849
53,642
9,263
107,755
40,762
52,368
9,187
102,317
35,911
50,813
8,748
95,472
of which: Financial assets for unit-linked
investment contracts
19,424
112
1
19,537
17,398
4
0
17,403
17,101
6
0
17,106
of which: Corporate and municipal bonds
31
19,182
91
19,303
30
14,844
145
15,020
31
14,695
133
14,859
of which: Government bills / bonds
24,842
6,093
0
30,935
22,856
6,062
0
28,919
18,264
6,204
0
24,469
of which: Loans
0
5,626
3,734
9,360
0
4,972
3,589
8,561
0
4,427
3,192
7,619
of which: Securities financing transactions
0
21,208
703
21,911
0
24,995
731
25,726
0
24,026
611
24,638
of which: Asset-backed securities
0
864
534
1,399
0
1,041
540
1,581
0
972
597
1,569
of which: Auction rate securities
0
0
191
191
0
0
191
191
0
0
191
191
of which: Investment fund units
433
386
626
1,445
387
362
640
1,389
423
401
681
1,505
of which: Equity instruments
119
0
3,066
3,186
90
0
2,932
3,023
93
0
2,917
3,010
Financial assets measured at fair value through other comprehensive income on
a recurring basis
Financial assets measured at fair value through
other comprehensive income
4,716
2,156
0
6,872
1,130
2,087
0
3,216
59
2,137
0
2,195
of which: Government bills / bonds
4,644
0
0
4,644
1,064
0
0
1,064
0
0
0
0
of which: Commercial paper and certificates
of deposit
0
1,926
0
1,926
0
1,916
0
1,916
0
1,959
0
1,959
of which: Corporate and municipal bonds
71
231
0
302
66
171
0
236
59
178
0
237
Non-financial assets measured at fair value on a recurring basis
Precious metals and other physical commodities
9,465
0
0
9,465
7,623
0
0
7,623
7,341
0
0
7,341
Non-financial assets measured at fair value on a non-recurring basis
Other non-financial assets
2
0
0
76
76
0
0
89
89
0
0
84
84
Total assets measured at fair value
195,098
281,384
15,944
492,426
184,658
245,204
15,400
445,263
172,499
288,337
14,732
475,568
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
73
Note 9
Fair value measurement (continued)
Determination of fair values from quoted market prices or valuation techniques
(continued)
1
30.6.25
31.3.25
31.12.24
USD m
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial liabilities measured at fair value on a recurring basis
Financial liabilities at fair value held for trading
38,223
14,057
50
52,330
30,503
12,565
31
43,099
24,577
10,429
240
35,247
of which: Equity instruments
30,064
215
26
30,305
22,597
390
21
23,008
18,528
257
29
18,814
of which: Corporate and municipal bonds
0
11,953
21
11,974
2
10,768
5
10,775
5
8,771
206
8,982
of which: Government bills / bonds
5,614
1,629
0
7,243
6,490
1,210
0
7,699
4,336
1,174
0
5,510
of which: Investment fund units
2,545
169
1
2,715
1,414
96
3
1,512
1,708
162
3
1,873
Derivative financial instruments
1,294
178,372
4,148
183,814
1,407
136,581
4,130
142,117
829
175,747
4,060
180,636
of which: Foreign exchange
736
87,968
56
88,759
553
50,511
44
51,108
506
94,035
46
94,587
of which: Interest rate
0
33,261
307
33,568
0
33,911
337
34,248
0
36,313
324
36,636
of which: Equity / index
0
50,340
3,469
53,810
0
44,707
3,293
48,000
0
39,597
3,142
42,739
of which: Credit
0
3,192
241
3,433
0
3,182
374
3,556
0
3,280
414
3,694
of which: Commodities
1
3,498
11
3,510
2
4,128
25
4,155
1
2,200
15
2,216
of which: Loan commitments measured at
FVTPL
0
12
30
42
0
45
29
74
0
75
62
137
Financial liabilities designated at fair value on a recurring basis
Brokerage payables designated at fair value
0
57,951
0
57,951
0
59,921
0
59,921
0
49,023
0
49,023
Debt issued designated at fair value
0
100,668
12,854
113,522
0
99,373
12,719
112,092
0
94,573
13,336
107,909
Other financial liabilities designated at fair value
0
27,110
2,300
29,410
0
24,483
2,752
27,235
0
25,931
2,768
28,699
of which: Financial liabilities related to unit-
linked investment contracts
0
19,669
0
19,669
0
17,528
0
17,528
0
17,203
0
17,203
of which: Securities financing transactions
0
4,580
118
4,699
0
3,985
108
4,094
0
5,798
0
5,798
of which: Over-the-counter debt instruments
and others
0
2,861
2,182
5,043
0
2,969
2,644
5,613
0
2,930
2,768
5,698
Total liabilities measured at fair value
39,517
378,158
19,351
437,027
31,910
332,923
19,632
384,465
25,406
355,703
20,405
401,514
1 Bifurcated embedded derivatives are presented on the same balance sheet
lines as their host contracts and are not included in
this table. The fair value of these derivatives was not material for the periods
presented.
2 Other non-financial assets primarily consist of properties and other non-current assets held for sale, which are measured at the
lower of their net carrying amount or fair value less costs to sell.
b) Valuation adjustments
The table below summarizes the changes
in deferred day-1 profit or loss reserves during the
relevant period.
Deferred day-1 profit or loss is generally released into
Other net income from financial instruments measured
at fair
value
through
profit
or
loss
when
the
pricing
of
equivalent
products
or
the
underlying
parameters
become
observable or when the transaction is closed out.
Deferred day-1 profit or loss reserves
For the quarter ended
Year-to-date
USD m
30.6.25
31.3.25
30.6.24
30.6.25
30.6.24
Reserve balance at the beginning of the period
391
421
384
421
404
Profit / (loss) deferred on new transactions
68
65
59
133
101
(Profit) / loss recognized in the income statement
(41)
(95)
(55)
(135)
(116)
Foreign currency translation
(1)
(1)
(1)
(2)
(1)
Reserve balance at the end of the period
417
391
388
417
388
The table below summarizes other valuation
adjustment reserves recognized on the
balance sheet.
Other valuation adjustment reserves on the balance sheet
As of
USD m
30.6.25
31.3.25
31.12.24
Own credit adjustments on financial liabilities designated at fair value
1
(1,040)
(897)
(1,165)
of which: debt issued designated at fair value
(1,080)
(929)
(1,188)
of which: other financial liabilities designated at fair value
40
32
23
Credit valuation adjustments
2
(40)
(128)
(125)
Funding and debit valuation adjustments
(87)
(69)
(96)
Other valuation adjustments
(966)
(971)
(1,207)
of which: liquidity
(586)
(570)
(746)
of which: model uncertainty
(380)
(401)
(460)
1 Own credit adjustments on financial liabilities designated at fair value includes amounts for TLAC notes.
2 Amount does not include reserves against defaulted counterparties.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
74
Note 9
Fair value measurement (continued)
c) Level 3 instruments: valuation techniques
and inputs
The
table
below
presents material
Level 3
assets
and
liabilities,
together
with
the
valuation
techniques
used
to
measure fair value,
as well as
the inputs used
in a given
valuation technique that are
considered significant as of
30 June 2025 and unobservable, and a range of
values for those unobservable inputs.
The range of values
represents the highest- and
lowest-level inputs used in the valuation
techniques. Therefore, the
range does not reflect the level of uncertainty regarding a particular input or an assessment of the reasonableness of
the Group’s estimates and assumptions, but rather the different underlying characteristics of the relevant
assets and
liabilities held by the Group.
The significant unobservable
inputs disclosed in
the table below
are consistent with
those included in
“Note 21 Fair
value measurement” in the “Consolidated financial
statements” section of the UBS Group
Annual Report 2024.
Valuation techniques and inputs used in the fair value measurement of Level 3 assets and liabilities
Fair value
Significant unobservable
input(s)
1
Range of inputs
Assets
Liabilities
Valuation technique(s)
30.6.25
31.12.24
USD bn
30.6.25
31.12.24
30.6.25
31.12.24
low
high
weighted
average
2
low
high
weighted
average
2
unit
1
Financial assets and liabilities at fair value held for
trading and Financial assets at fair value not held for
trading
Corporate and municipal
bonds
0.8
1.0
0.0
0.2
Relative value to
market comparable
Bond price equivalent
12
104
77
23
114
98
points
Loans at fair value (held for
trading and not held for
trading) and guarantees
3
6.0
5.2
0.0
0.0
Relative value to
market comparable
Loan price equivalent
3
101
93
1
173
84
points
Discounted expected
cash flows
Credit spread
17
294
94
16
545
195
basis
points
Market comparable
and securitization
model
Credit spread
98
1,958
225
75
1,899
208
basis
points
Asset-backed securities
0.7
0.7
0.0
0.0
Relative value to
market comparable
Bond price equivalent
5
105
80
0
112
79
points
Investment fund units
4
0.7
0.8
0.0
0.0
Relative value to
market comparable
Net asset value
Equity instruments
4
3.2
3.0
0.0
0.0
Relative value to
market comparable
Price
Debt issued designated at
fair value
3
12.9
13.3
Other financial liabilities
designated at fair value
3
2.3
2.8
Discounted expected
cash flows
Funding spread
95
224
95
201
basis
points
Derivative financial instruments
Interest rate
0.9
0.9
0.3
0.3
Option model
Volatility of interest rates
53
119
50
156
basis
points
IR-to-IR correlation
68
99
60
99
%
Discounted expected
cash flows
Funding spread
5
20
5
20
basis
points
Credit
0.9
0.6
0.2
0.4
Discounted expected
cash flows
Credit spreads
3
1,760
2
1,789
basis
points
Credit correlation
50
58
50
66
%
Recovery rates
0
100
0
100
%
Option model
Credit volatility
60
143
59
127
%
Recovery rates
0
40
%
Equity / index
1.3
1.1
3.5
3.1
Option model
Equity dividend yields
0
10
0
16
%
Volatility of equity stocks,
equity and other indices
3
99
4
126
%
Equity-to-FX correlation
(65)
74
(65)
80
%
Equity-to-equity correlation
(10)
100
0
100
%
Loan commitments
measured at FVTPL
0.0
0.1
Relative value to
market comparable
Loan price equivalent
80
100
60
101
points
1 The ranges of significant unobservable inputs are represented in points,
percentages and basis points. Points are a percentage
of par (e.g. 100 points would be 100% of par).
2 Weighted averages are provided for
most non-derivative financial instruments
and were calculated by weighting inputs
based on the fair values of
the respective instruments. Weighted averages are not provided
for inputs related to Other financial liabilities
designated at fair value and Derivative financial
instruments, as this would not
be meaningful.
3 Debt issued designated at fair value primarily consists of
UBS structured notes, which include variable
maturity notes
with various equity
and foreign exchange
underlying risks,
as well as
rates-linked and
credit-linked notes,
all of which
have embedded derivative
parameters that
are considered to
be unobservable.
The derivative
instrument parameters
for debt issued
designated at
fair value,
embedded derivatives
for over-the-counter
debt instruments reported
under Other financial
liabilities designated at
fair value
and funded derivatives
reported under Loans at fair value (held for
trading and not held for trading) are
presented in the corresponding derivative financial instruments
lines in this table.
4 The range of inputs is not
disclosed, as there is a
dispersion of values given the diverse nature of the investments.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
75
Note 9
Fair value measurement (continued)
d) Level 3 instruments: sensitivity to changes
in unobservable input assumptions
The table below summarizes those financial assets and liabilities classified as Level 3 for
which a change in one or
more of
the unobservable
inputs to
reflect reasonably
possible alternative
assumptions would
change fair
value
significantly, and the estimated effect thereof.
The
sensitivity data
shown below
presents an
estimation of
valuation uncertainty
based
on
reasonably possible
alternative values for Level 3
inputs at the balance sheet
date and does not represent
the estimated effect of stress
scenarios. Typically,
these financial
assets and
liabilities are
sensitive to
a combination
of inputs
from Levels 1–3.
Although well-defined interdependencies
may exist
between Level 1 / 2 parameters
and Level 3
parameters (e.g.
between interest rates,
which are generally
Level 1 or Level 2,
and prepayments,
which are generally
Level 3), these
have not been incorporated
in the table. Furthermore,
direct interrelationships between
the Level 3 parameters are
not a significant element of the valuation uncertainty.
Sensitivity of fair value measurements to changes in unobservable input assumptions
1
30.6.25
31.3.25
31.12.24
USD m
Favorable
changes
Unfavorable
changes
Favorable
changes
Unfavorable
changes
Favorable
changes
Unfavorable
changes
Loans at fair value (held for trading and not held for trading) and guarantees
2
141
(112)
147
(115)
185
(143)
Securities financing transactions
25
(14)
25
(20)
30
(24)
Auction rate securities
8
(4)
8
(6)
8
(6)
Asset-backed securities
19
(17)
23
(18)
32
(28)
Equity instruments
387
(370)
348
(314)
333
(308)
Investment fund units
178
(180)
176
(178)
179
(181)
Loan commitments measured at FVTPL
13
(41)
15
(47)
38
(42)
Interest rate derivatives, net
68
(58)
77
(65)
115
(70)
Credit derivatives, net
78
(108)
88
(108)
112
(117)
Foreign exchange derivatives, net
6
(5)
4
(3)
3
(2)
Equity / index derivatives, net
690
(577)
619
(503)
732
(617)
Other
216
(115)
256
(152)
289
(161)
Total
1,830
(1,601)
1,785
(1,528)
2,056
(1,700)
1 Sensitivity of issued and over-the-counter debt instruments is reported with the equivalent derivative
or Other.
2 Sensitivity of funded derivatives is reported under equivalent derivatives.
e) Level 3 instruments: movements during
the period
The table below presents additional information about material Level 3 assets and liabilities measured at fair value
on a recurring basis. Level 3 assets and liabilities
may be hedged with instruments
classified as Level 1 or Level 2 in
the fair
value hierarchy
and, as
a
result,
realized and
unrealized gains
and losses
included in
the table
may not
include the effect of related hedging
activity. Furthermore, the realized and unrealized gains and
losses presented
in the table are not
limited solely to those
arising from Level 3 inputs,
as valuations are generally
derived from both
observable and unobservable parameters.
Assets
and
liabilities
transferred
into
or
out
of
Level 3
are
presented
as
if
those
assets
or
liabilities
had
been
transferred on 1 January 2025.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
76
N
ote 9
Fair value measurement (continued)
Movements of Level 3 instruments
USD bn
Balance
at the
beginning
of the
period
Net gains /
losses
included in
compre-
hensive
income
1
of which:
related to
instruments
held at the
end of the
period
Purchases
Sales
Issuances
Settlements
Transfers
into
Level 3
Transfers
out of
Level 3
Foreign
currency
translation
Balance
at the
end
of the
period
For the six months ended 30 June 2025
2
Financial assets at fair value held for
trading
3.1
(0.0)
(0.1)
0.4
(1.1)
1.1
(0.4)
0.4
(0.1)
0.1
3.5
of which: Equity instruments
0.1
(0.0)
(0.0)
0.0
(0.0)
0.0
(0.0)
0.1
(0.0)
0.0
0.2
of which: Corporate and municipal
bonds
0.8
(0.0)
(0.0)
0.3
(0.4)
0.0
(0.0)
0.1
(0.1)
0.0
0.8
of which: Loans
1.8
0.1
(0.0)
0.0
(0.5)
1.1
(0.3)
0.0
(0.0)
0.0
2.2
Derivative financial instruments –
assets
2.8
(0.0)
0.1
0.0
(0.0)
1.3
(0.9)
0.3
(0.3)
0.0
3.2
of which: Interest rate
0.9
0.1
0.1
0.0
(0.0)
0.0
(0.2)
0.1
(0.0)
(0.1)
0.9
of which: Equity / index
1.1
(0.2)
(0.2)
0.0
0.0
0.7
(0.3)
0.1
(0.2)
0.0
1.3
of which: Credit
0.6
0.1
0.2
0.0
(0.0)
0.5
(0.3)
0.1
(0.1)
0.0
0.9
Financial assets at fair value not held
for trading
8.7
0.7
0.6
0.1
(0.3)
0.7
(0.8)
0.1
(0.1)
0.2
9.3
of which: Loans
3.2
0.7
0.7
0.0
(0.0)
0.5
(0.7)
0.0
(0.0)
0.1
3.7
of which: Auction rate securities
0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
of which: Equity instruments
2.9
0.1
0.1
0.1
(0.1)
0.0
(0.0)
0.0
(0.0)
0.1
3.1
of which: Investment fund units
0.7
0.0
0.0
0.0
(0.1)
0.0
(0.0)
0.0
0.0
0.0
0.6
of which: Asset-backed securities
0.6
(0.0)
(0.0)
0.0
(0.1)
0.0
0.0
0.0
(0.0)
0.0
0.5
Derivative financial instruments –
liabilities
4.1
0.2
0.2
0.0
(0.0)
1.2
(1.0)
0.1
(0.6)
0.1
4.1
of which: Interest rate
0.3
0.1
0.1
0.0
(0.0)
0.0
(0.1)
0.0
(0.0)
0.0
0.3
of which: Equity / index
3.1
0.2
0.2
0.0
0.0
1.1
(0.6)
0.1
(0.5)
0.1
3.5
of which: Credit
0.4
(0.0)
(0.1)
0.0
0.0
0.1
(0.2)
0.0
(0.0)
(0.0)
0.2
of which: Loan commitments
measured at FVTPL
0.1
0.0
(0.0)
0.0
(0.0)
0.0
(0.0)
0.0
(0.0)
0.0
0.0
Debt issued designated at fair value
13.3
0.2
0.2
0.0
0.0
2.6
(1.7)
0.8
(2.9)
0.5
12.9
Other financial liabilities designated at
fair value
2.8
(0.0)
(0.0)
0.0
(0.0)
0.4
(0.8)
0.0
(0.0)
0.0
2.3
For the six months ended 30 June 2024
Financial assets at fair value held for
trading
22.6
0.3
(0.3)
0.9
(11.6)
0.8
(5.7)
1.6
(0.7)
(0.1)
8.0
of which: Equity instruments
0.3
(0.0)
(0.0)
0.0
(0.0)
0.0
(0.0)
0.0
(0.1)
(0.0)
0.2
of which: Corporate and municipal
bonds
1.3
(0.1)
(0.0)
0.3
(0.5)
0.0
0.0
0.0
(0.1)
(0.0)
0.9
of which: Loans
19.6
0.5
(0.2)
0.4
(9.9)
0.8
(5.7)
1.4
(0.6)
(0.1)
6.4
Derivative financial instruments –
assets
2.6
(0.0)
0.0
0.0
(0.0)
0.6
(0.5)
0.3
(0.6)
(0.0)
2.3
of which: Interest rate
0.4
0.0
0.1
0.0
(0.0)
0.0
(0.1)
0.1
(0.0)
0.0
0.4
of which: Equity / index
1.3
(0.0)
(0.0)
0.0
(0.0)
0.5
(0.2)
0.1
(0.4)
(0.0)
1.2
of which: Credit
0.5
(0.1)
(0.0)
0.0
(0.0)
0.1
(0.1)
0.1
(0.0)
(0.0)
0.5
Financial assets at fair value not held
for trading
8.4
(0.2)
(0.3)
0.3
(0.2)
1.1
(1.7)
0.5
(0.2)
(0.1)
7.9
of which: Loans
2.3
(0.1)
(0.1)
0.2
(0.0)
0.7
(0.3)
0.0
(0.1)
(0.1)
2.6
of which: Auction rate securities
1.2
0.0
(0.0)
0.0
0.0
0.0
(1.1)
0.0
0.0
0.0
0.2
of which: Equity instruments
3.1
(0.1)
(0.1)
0.0
(0.1)
0.0
0.0
0.0
0.0
(0.1)
2.9
of which: Investment fund units
0.7
0.0
0.0
0.1
(0.1)
0.0
(0.0)
0.0
(0.0)
(0.0)
0.7
of which: Asset-backed securities
0.2
(0.0)
(0.0)
0.0
(0.0)
0.0
0.0
0.4
(0.0)
(0.0)
0.5
Derivative financial instruments –
liabilities
5.6
(0.8)
(0.3)
0.0
(0.2)
1.7
(1.4)
0.3
(0.6)
(0.0)
4.4
of which: Interest rate
0.2
(0.1)
0.1
0.0
(0.0)
0.0
(0.0)
0.1
(0.0)
0.0
0.2
of which: Equity / index
3.3
0.0
0.0
0.0
(0.1)
1.5
(1.1)
0.2
(0.5)
(0.0)
3.4
of which: Credit
0.6
(0.1)
(0.1)
0.0
(0.0)
0.1
(0.2)
0.0
(0.0)
(0.0)
0.4
of which: Loan commitments
measured at FVTPL
1.0
(0.6)
(0.2)
0.0
(0.1)
0.0
(0.0)
0.0
0.0
(0.0)
0.3
Debt issued designated at fair value
15.3
(0.4)
(0.0)
0.0
0.0
3.0
(2.9)
0.7
(2.7)
(0.1)
13.0
Other financial liabilities designated at
fair value
2.6
(0.1)
(0.0)
0.0
(0.0)
1.1
(0.5)
0.4
(0.1)
(0.0)
3.4
1 Net gains / losses included in
comprehensive income are recognized in Net
interest income and Other net income
from financial instruments measured at
fair value through profit or loss
in the Income statement,
and also in
Gains / (losses)
from own credit
on financial liabilities
designated at fair
value, before
tax in
the Statement of
comprehensive income.
2 Total
Level 3 assets as
of 30 June
2025 were
USD
15.9
bn
(31 December 2024: USD
14.7
bn). Total Level 3 liabilities as of 30 June 2025 were USD
19.4
bn (31 December 2024: USD
20.4
bn).
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
77
Note 9
Fair value measurement (continued)
f) Financial instruments not measured
at fair value
The table
below reflects
the estimated
fair values
of financial
instruments not
measured at
fair value.
Valuation
principles applied
when determining fair
value estimates for
financial instruments not
measured at
fair value
are
consistent with those described in “Note 21
Fair value measurement” in the “Consolidated financial statements”
section of the UBS Group Annual Report 2024.
Financial instruments not measured at fair value
30.6.25
31.3.25
31.12.24
USD bn
Carrying
amount
Fair value
Carrying
amount
Fair value
Carrying
amount
Fair value
Assets
Cash and balances at central banks
236.2
236.2
231.4
231.4
223.3
223.3
Amounts due from banks
21.5
21.5
21.1
21.1
18.9
18.9
Receivables from securities financing transactions measured at amortized
cost
110.2
110.2
101.8
101.8
118.3
118.3
Cash collateral receivables on derivative instruments
45.5
45.5
39.0
39.0
44.0
44.0
Loans and advances to customers
646.0
646.5
594.1
592.2
580.0
579.7
Other financial assets measured at amortized cost
72.2
71.0
66.5
65.1
58.8
57.0
Liabilities
Amounts due to banks
31.9
32.0
27.8
27.8
23.3
23.4
Payables from securities financing transactions measured at amortized cost
16.3
16.3
15.0
15.0
14.8
14.8
Cash collateral payables on derivative instruments
33.0
33.0
31.5
31.5
35.5
35.5
Customer deposits
800.0
800.8
744.9
745.6
745.8
746.6
Debt issued measured at amortized cost
224.7
229.7
213.9
218.5
214.2
220.6
Other financial liabilities measured at amortized cost
1
13.9
13.9
14.6
14.6
16.4
16.4
1 Excludes lease liabilities.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
78
Note 10
Derivative instruments
a) Derivative instruments
As of 30.6.25, USD bn
Derivative
financial
assets
Derivative
financial
liabilities
Notional values
related to derivative
financial assets and
liabilities
1
Other
notional
values
2
Derivative financial instruments
Interest rate
38.0
33.6
3,680
18,031
Credit derivatives
3.2
3.4
132
Foreign exchange
78.5
88.8
8,214
372
Equity / index
45.4
53.8
1,579
98
Commodities
4.3
3.5
174
19
Other
3
0.6
0.7
168
Total derivative financial instruments, based on netting under IFRS Accounting Standards
4
170.0
183.8
13,947
18,519
Further netting potential not recognized on the balance
sheet
5
(152.9)
(161.9)
of which: netting of recognized financial liabilities / assets
(130.4)
(130.4)
of which: netting with collateral received / pledged
(22.5)
(31.5)
Total derivative financial instruments, after consideration of further netting potential
17.1
21.9
As of 31.3.25, USD bn
Derivative financial instruments
Interest rate
38.5
34.2
3,716
18,048
Credit derivatives
3.2
3.6
173
Foreign exchange
49.5
51.1
7,248
294
Equity / index
40.9
48.0
1,419
104
Commodities
5.0
4.2
180
19
Other
3
0.9
1.1
178
Total derivative financial instruments, based on netting under IFRS Accounting Standards
4
138.0
142.1
12,913
18,465
Further netting potential not recognized on the balance
sheet
5
(122.6)
(127.8)
of which: netting of recognized financial liabilities / assets
(100.8)
(100.8)
of which: netting with collateral received / pledged
(21.8)
(27.0)
Total derivative financial instruments, after consideration of further netting potential
15.5
14.3
As of 31.12.24, USD bn
Derivative financial instruments
Interest rate
41.4
36.6
3,644
16,844
Credit derivatives
3.1
3.7
144
Foreign exchange
100.9
94.6
7,207
269
Equity / index
36.9
42.7
1,365
93
Commodities
2.6
2.2
155
17
Other
3
0.6
0.8
87
Total derivative financial instruments, based on netting under IFRS Accounting Standards
4
185.6
180.6
12,602
17,223
Further netting potential not recognized on the balance
sheet
5
(161.7)
(166.3)
of which: netting of recognized financial liabilities / assets
(135.5)
(135.5)
of which: netting with collateral received / pledged
(26.2)
(30.8)
Total derivative financial instruments, after consideration of further netting potential
23.9
14.3
1 In cases where derivative
financial instruments are presented
on a net basis
on the balance sheet,
the respective notional values
of the netted derivative
financial instruments are still
presented on a gross
basis.
Notional amounts of client-cleared ETD and OTC transactions
through central clearing counterparties are not disclosed, as they
have a significantly different risk profile.
2 Other notional values relate to derivatives
that are cleared through either a central counterparty
or an exchange and settled on a daily basis.
The fair value of these derivatives is
presented on the balance sheet within Cash collateral receivables
on derivative
instruments and Cash collateral payables on derivative instruments.
3 Includes Loan commitments measured at FVTPL, as well as unsettled purchases and
sales of non-derivative financial instruments for which the
changes in the fair value
between trade date and settlement
date are recognized as derivative
financial instruments.
4 Financial assets and liabilities are
presented net on the
balance sheet if UBS has
the unconditional
and legally enforceable right to offset the recognized amounts,
both in the normal course of business and in the event of def
ault, bankruptcy or insolvency of UBS or its counterparties,
and intends either to settle on
a net basis
or to realize
the asset and
settle the liability
simultaneously. Refer
to “Note 22
Offsetting financial assets
and financial liabilities”
in the “Consolidated
financial statements” section
of the UBS
Group
Annual Report 2024 for more information.
5 Reflects the netting potential in accordance with enforceable master netting and similar
arrangements where not all criteria for a net presentation on the balance sheet
have been met. Refer to “Note 22 Offsetting financial assets and financial liabilities” in the “Consolidated financial statements” section of the UBS
Group Annual Report 2024 for more information.
b) Cash collateral on derivative instruments
USD bn
Receivables
30.6.25
Payables
30.6.25
Receivables
31.3.25
Payables
31.3.25
Receivables
31.12.24
Payables
31.12.24
Cash collateral on derivative instruments, based on netting under IFRS Accounting
Standards
1
45.5
33.0
39.0
31.5
44.0
35.5
Further netting potential not recognized on the balance
sheet
2
(29.2)
(17.0)
(24.3)
(16.6)
(28.3)
(21.7)
of which: netting of recognized financial liabilities / assets
(27.3)
(15.0)
(22.2)
(14.5)
(25.9)
(19.3)
of which: netting with collateral received / pledged
(2.0)
(2.0)
(2.1)
(2.1)
(2.4)
(2.4)
Cash collateral on derivative instruments, after consideration of further netting potential
16.2
16.0
14.7
14.9
15.7
13.8
1 Financial assets and liabilities are
presented net on the balance
sheet if UBS has the unconditional
and legally enforceable right to offset
the recognized amounts, both
in the normal course of
business and in the
event of default,
bankruptcy or insolvency
of UBS or
its counterparties,
and intends either
to settle on
a net basis
or to realize
the asset and
settle the liability
simultaneously.
2 Reflects the
netting potential in
accordance with enforceable
master netting and
similar arrangements
where not all
criteria for a
net presentation on
the balance
sheet have been
met. Refer to
“Note 22 Offsetting
financial assets and
financial
liabilities” in the “Consolidated financial statements” section of the UBS Group Annual Report 2024 for more information.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
79
Note
11
Other assets and liabilities
a) Other financial assets measured at amortized cost
USD m
30.6.25
31.3.25
31.12.24
Debt securities
52,645
48,097
41,585
Loans to financial advisors
2,682
2,738
2,723
Fee- and commission-related receivables
2,732
2,506
2,242
Finance lease receivables
6,770
6,056
5,879
Settlement and clearing accounts
458
445
430
Accrued interest income
2,171
2,101
2,115
Other
1
4,754
4,571
3,862
Total other financial assets measured at amortized cost
72,211
66,513
58,835
1 Predominantly includes cash collateral provided to exchanges and clearing houses to secure securities trading activity through
those counterparties.
b) Other non-financial assets
USD m
30.6.25
31.3.25
31.12.24
Precious metals and other physical commodities
9,465
7,623
7,341
Deposits and collateral provided in connection with litigation,
regulatory and similar matters
1
2,132
2,012
1,946
Prepaid expenses
1,886
1,867
1,679
Current tax assets
1,412
1,460
1,546
VAT,
withholding tax and other tax receivables
1,013
875
1,233
Properties and other non-current assets held for sale
186
189
196
Assets of disposal groups held for sale
2
1,705
Other
1,734
1,810
2,119
Total other non-financial assets
17,829
15,836
17,766
1 Refer to Note 14 for more information.
2 Refer to Note 5 for more information about the sale of Select Portfolio Servicing.
c) Other financial liabilities measured at amortized cost
USD m
30.6.25
31.3.25
31.12.24
Other accrued expenses
3,015
3,039
3,140
Accrued interest expenses
5,378
4,951
5,876
Settlement and clearing accounts
1,919
2,218
1,944
Lease liabilities
4,433
4,560
4,597
Other
3,613
4,375
5,476
Total other financial liabilities measured at amortized cost
18,358
19,143
21,033
d) Other financial liabilities designated at fair value
USD m
30.6.25
31.3.25
31.12.24
Financial liabilities related to unit-linked investment contracts
19,669
17,528
17,203
Securities financing transactions
4,699
4,093
5,798
Over-the-counter debt instruments and other
5,043
5,613
5,698
Total other financial liabilities designated at fair value
29,410
27,235
28,699
e) Other non-financial liabilities
USD m
30.6.25
31.3.25
31.12.24
Compensation-related liabilities
8,228
6,716
9,592
of which: net defined benefit liability
818
779
763
Current tax liabilities
1,103
1,818
1,671
Deferred tax liabilities
383
365
340
VAT,
withholding tax and other tax payables
1,029
1,054
1,156
Deferred income
593
546
555
Liabilities of disposal groups held for sale
1
1,199
Other
129
91
320
Total other non-financial liabilities
11,465
10,590
14,834
1 Refer to Note 5 for more information about the sale of Select Portfolio Servicing.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
80
Note
12
Debt issued designated at fair value
Debt issued designated at fair value
USD m
30.6.25
31.3.25
31.12.24
Equity-linked
1
59,645
57,151
54,069
Rates-linked
23,607
23,778
23,641
Credit-linked
4,197
5,354
5,225
Fixed-rate
14,180
14,352
14,250
Commodity-linked
3,140
3,462
3,592
Other
8,752
7,995
7,131
of which: debt that contributes to total loss-absorbing capacity
5,751
5,263
4,934
Total debt issued designated at fair value
2
113,522
112,092
107,909
of which: issued by UBS AG standalone with original maturity greater
than one year
3
89,883
85,588
82,491
of which: issued by Credit Suisse International standalone
with original maturity greater than one year
3
2
110
96
1 Includes investment
fund unit-linked
instruments issued.
2 As of 30
June 2025,
100
% of Total
debt issued
designated at
fair value
was unsecured
(31 March 2025:
100
% and 31
December 2024:
100
%).
3 Based on original contractual maturity without considering any early redemption features.
Note
13
Debt issued measured at amortized cost
Debt issued measured at amortized cost
USD m
30.6.25
31.3.25
31.12.24
Short-term debt
1
35,299
30,572
30,509
Senior unsecured debt
131,022
130,323
133,159
of which: contributes to total loss-absorbing capacity
93,503
93,863
92,515
of which: issued by UBS AG standalone with original maturity greater
than one year
29,407
30,112
32,664
Covered bonds
11,432
9,044
8,762
Subordinated debt
17,291
17,038
15,030
of which: eligible as high-trigger loss-absorbing additional
tier 1 capital instruments
2
16,608
16,352
13,084
of which: eligible as low-trigger loss-absorbing additional
tier 1 capital instruments
1,245
of which: eligible as non-Basel III-compliant tier 2 capital
instruments
196
205
207
Debt issued through the Swiss central mortgage institutions
29,190
26,474
26,335
Other long-term debt
476
429
424
Long-term debt
3
189,411
183,308
183,709
Total debt issued measured at amortized cost
4,5
224,709
213,880
214,219
1 Debt with
an original
contractual maturity
of less
than one
year,
includes mainly
certificates of
deposit and
commercial paper.
2 For 30 June
2025, includes
USD
10.2
bn (31 March
2025: USD
10.1
bn and
31 December 2024: USD
6.9
bn) that are, upon the occurrence of a trigger event or a viability event, subject to conversion into ordinary UBS shares.
3 Debt with an original contractual maturity greater than or equal
to one year. The
classification of debt issued into short-term
and long-term does not consider any early
redemption features.
4 Net of bifurcated embedded derivatives,
the fair value of which was
not material for
the periods presented.
5 Except for Covered bonds (
100
% secured), Debt issued through the Swiss central mortgage institutions (
100
% secured) and Other long-term debt (
93
% secured),
100
% of the balance was
unsecured as of 30 June 2025.
Note 14
Provisions and contingent liabilities
a) Provisions and contingent liabilities
T
he table below presents an overview of
total provisions and contingent liabilities.
Overview of total provisions and contingent liabilities
USD m
30.6.25
31.3.25
31.12.24
Provisions related to expected credit losses (IFRS 9,
Financial Instruments
)
1
406
337
320
Provisions related to Credit Suisse loan commitments (IFRS
3,
Business Combinations
)
638
809
997
Provisions related to litigation, regulatory and similar matters
(IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
)
3,450
3,852
3,602
Acquisition-related contingent liabilities relating to litigation,
regulatory and similar matters (IFRS 3,
Business Combinations
)
1,479
2,031
2,122
Restructuring, real-estate and other provisions (IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
)
1,493
1,489
1,368
Total provisions and contingent liabilities
7,466
8,517
8,409
1 Refer to Note 8c for more information about ECL provisions recognized for off-balance sheet financial instruments and credit lines.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
81
Note 14
Provisions and contingent liabilities
(continued)
The table below presents additional information for provisions under IAS 37,
Provisions, Contingent Liabilities and
Contingent Assets
.
Additional information for provisions under IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
USD m
Litigation,
regulatory and
similar matters
1
Restructuring
2
Real estate
3
Other
4
Total
Balance as of 31 December 2024
3,602
813
240
315
4,969
Balance as of 31 March 2025
3,852
921
239
329
5,340
Increase in provisions recognized in the income statement
256
5
372
0
33
661
Release of provisions recognized in the income statement
(137)
(180)
(4)
(26)
(348)
Provisions used in conformity with designated purpose
(703)
6
(281)
(2)
(17)
(1,003)
Reclassifications
44
7
0
0
0
44
Foreign currency translation and other movements
139
57
24
27
248
Balance as of 30 June 2025
3,450
889
257
346
4,943
1 Consists of provisions for losses resulting from legal, liability and compliance risks.
2 Includes USD
278
m of provisions for onerous contracts related to real estate as of 30 June 2025 (31 March 2025: USD
374
m;
31 December 2024: USD
383
m), USD
518
m of personnel-related restructuring
provisions as of 30 June
2025 (31 March 2025: USD
439
m; 31 December 2024:
USD
334
m) and USD
93
m of provisions
for onerous
contracts related to technology as of
30 June 2025 (31 March 2025:
USD
108
m; 31 December 2024: USD
96
m).
3 Mainly includes provisions for reinstatement
costs with respect to leased properties.
4 Mainly
includes provisions related to employee benefits, VAT
and operational risks.
5 Includes a new provision for the estimated costs associated with UBS's
ongoing obligations as described in item 1 of section b) of this
Note.
6 Mainly includes provisions used
for the resolution reached with
the US Department of Justice
in the second quarter
of 2025 as described
in item 1 of section
b) of this Note.
7 Includes reclassifications
from IFRS 3 contingent liabilities to IAS 37 provisions.
Information about provisions and
contingent liabilities in respect of
litigation, regulatory and similar matters,
as a
class,
is
included
in
Note 14b.
There
are
no
material
contingent
liabilities
associated
with
the
other
classes
of
provisions.
b) Litigation, regulatory and similar matters
The Group operates in
a legal and regulatory
environment that exposes it to
significant litigation and similar risks
arising from disputes
and regulatory proceedings. As
a result,
UBS (which for
purposes of this
Note may
refer to
UBS
Group
AG
and/or
one
or
more
of
its
subsidiaries,
as
applicable)
is
involved
in
various
disputes
and
legal
proceedings, including litigation, arbitration,
and regulatory and criminal investigations.
Such matters are subject
to many uncertainties,
and the outcome and the
timing of resolution are
often difficult to
predict,
particularly in
the
earlier
stages
of
a
case.
There
are
also
situations
where
the Group
may
enter into
a
settlement
agreement.
This
may
occur
in
order
to
avoid
the
expense,
management
distraction
or
reputational
implications of
continuing to
contest liability,
even
for those
matters for
which
the Group
believes it
should be
exonerated. The uncertainties inherent in all such matters affect the amount and timing of any potential outflows
for both matters
with respect to
which provisions have
been established and
other contingent liabilities.
The Group
makes
provisions
for
such
matters
brought
against
it
when,
in
the
opinion
of
management
after
seeking legal
advice, it
is more
likely than
not that
the Group
has a
present legal
or constructive obligation
as a
result of
past
events, it
is probable
that an
outflow of
resources will
be required,
and the
amount can
be reliably
estimated. Where
these factors
are
otherwise satisfied,
a
provision may
be
established for
claims that
have
not
yet been
asserted
against the
Group, but
are nevertheless
expected to
be, based
on
the Group’s
experience with
similar asserted
claims.
If
any
of
those
conditions
is
not
met,
such
matters
result
in
contingent
liabilities.
If
the
amount
of
an
obligation cannot
be reliably
estimated, a
liability exists
that is
not recognized
even if
an outflow
of resources
is
probable. Accordingly, no
provision is
established even if
the potential
outflow of resources
with respect
to such
matters could be significant. Developments relating to a matter that occur after the relevant reporting period, but
prior
to
the
issuance
of
financial
statements, which
affect
management’s assessment
of
the
provision
for
such
matter
(because,
for
example,
the
developments provide
evidence of
conditions that
existed
at
the
end
of
the
reporting
period),
are
adjusting
events
after
the
reporting period
under
IAS
10
and
must
be
recognized in
the
financial statements for the reporting period.
Specific litigation, regulatory and other matters are
described below, including all such matters that
management
considers to be material and others that management believes to be of significance to the Group due to potential
financial,
reputational
and
other
effects.
The
amount
of
damages
claimed,
the
size
of
a
transaction
or
other
information is
provided where
available and
appropriate in order
to assist
users in
considering the
magnitude of
potential exposures.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
82
Note 14
Provisions and contingent liabilities
(continued)
In the case of certain matters below, we state that we have established a provision, and for the other matters, we
make no such statement. When we
make this statement and we expect
disclosure of the amount of a provision
to
prejudice seriously our
position with other
parties in the
matter because it
would reveal what
UBS believes to
be
the
probable
and
reliably estimable
outflow, we
do
not
disclose
that amount.
In
some
cases we
are
subject to
confidentiality obligations
that preclude
such disclosure.
With respect
to the
matters for
which we
do not
state
whether we have
established a provision,
either: (a) we
have not established
a provision; or
(b) we have
established
a provision
but expect
disclosure of
that fact
to prejudice
seriously our
position with
other parties
in the
matter
because it would reveal the fact that
UBS believes an outflow of resources to be probable
and reliably estimable.
With respect to certain litigation, regulatory
and similar matters for which we
have established provisions, we are
able to
estimate the expected
timing of outflows.
However, the aggregate
amount of the
expected outflows for
those matters for which we
are able to estimate expected
timing is immaterial relative to
our current and expected
levels of liquidity over the relevant time periods.
The
aggregate
amount
provisioned
for
litigation,
regulatory
and
similar
matters
as
a
class
is
disclosed
in
the
“Provisions” table in Note 14 a) above. UBS provides below
an estimate of the aggregate liability for its litigation,
regulatory and
similar matters
as a
class of
contingent liabilities.
Estimates of
contingent liabilities
are inherently
imprecise and
uncertain as
these
estimates require UBS
to
make speculative
legal assessments
as
to claims
and
proceedings that involve
unique fact patterns
or novel legal
theories, that have
not yet been
initiated or are
at early
stages of
adjudication, or
as to
which
alleged damages
have
not been
quantified by
the claimants.
Taking into
account these uncertainties
and the other factors
described herein, UBS
estimates the future losses
that could arise
from litigation,
regulatory and
similar matters
disclosed below
for which
an estimate
is possible,
that are
not covered
by existing
provisions (including
acquisition-related contingent
liabilities established
under IFRS
3 in connection
with
the acquisition of Credit Suisse), are in the range
of USD
0
bn to USD
1.9
bn.
Litigation, regulatory
and similar
matters may
also result
in non-monetary
penalties and
consequences. A
guilty plea
to, or conviction of, a crime could have material consequences for UBS. Resolution of regulatory proceedings may
require UBS to obtain waivers of regulatory disqualifications to maintain certain operations, may entitle regulatory
authorities to limit, suspend or terminate
licenses and regulatory authorizations, and may
permit financial market
utilities to
limit, suspend
or terminate
UBS’s participation
in such
utilities. Failure
to obtain
such waivers,
or any
limitation, suspension
or termination
of licenses,
authorizations or
participations, could
have material
consequences
for UBS.
The
amounts
shown
in
the
table
below
reflect
the
provisions
recorded
under
IFRS
Accounting
Standards.
In
connection with
the acquisition
of Credit
Suisse, UBS
Group AG
additionally has
reflected in
its purchase
accounting
under IFRS
3 a
valuation adjustment
reflecting an
estimate of
outflows relating
to contingent
liabilities for
all present
obligations included in
the scope
of the
acquisition at fair
value upon
closing, even
if it
is not
probable that the
contingent
liability
will
result
in
an
outflow
of
resources,
significantly
decreasing
the
recognition
threshold
for
litigation
liabilities
beyond
those
that
generally apply
under
IFRS
Accounting Standards.
The
IFRS
3
acquisition-
related contingent liabilities of
USD
1.5
bn at 30
June 2025 reflect a
decrease of USD
0.6
bn from 31 March 2025
a
s a result of releases upon resolution of the
relevant matter and reclassifications to
provisions under IAS 37.
Provisions for litigation, regulatory and similar matters, by business division and in Group Items
1
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core
and Legacy
Group Items
UBS Group
Balance as of 31 December 2024
1,271
147
1
266
1,779
139
3,602
Balance as of 31 March 2025
1,318
153
0
293
1,878
209
3,852
Increase in provisions recognized in the income statement
16
0
0
12
227
2
2
256
Release of provisions recognized in the income statement
(2)
0
0
(3)
(132)
0
(137)
Provisions used in conformity with designated purpose
(15)
0
0
(11)
(673)
3
(4)
(703)
Reclassifications
4
0
0
0
0
44
0
44
Foreign currency translation and other movements
98
14
0
17
10
1
139
Balance as of 30 June 2025
1,415
167
0
308
1,353
207
3,450
1 Provisions, if any, for
the matters described in items 2
and 9 of this Note are recorded
in Global Wealth Management. Provisions,
if any, for the matters
described in items 4, 5, 6, 7,
8, 11 and 12 of this
Note are
recorded in Non-core
and Legacy.
Provisions, if
any, for
the matters described
in item 1
of this Note
are allocated between
Global Wealth
Management, Personal
& Corporate
Banking and Non-core
and Legacy.
Provisions, if any, for the matters described in item 3 of this Note are allocated between the Investment Bank, Non-core
and Legacy and Group Items. Provisions, if any, for the matters described in item 10 of this Note
are allocated between the Investment Bank
and Non-core and Legacy.
2 Includes a new provision for
the estimated costs of UBS's ongoing
obligations with the US Department of
Justice as described in item 1
of
this Note.
3 Mainly includes provisions used for the resolution reached with the US Department of Justice
in the second quarter of 2025 as described in item 1 of this Note.
4 Includes reclassifications from IFRS 3
contingent liabilities to IAS 37 provisions.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
83
Note 14
Provisions and contingent liabilities
(continued)
- Inquiries regarding cross-border wealth management
businesses
Tax and
regulatory authorities
in a
number of
countries have
made inquiries,
served requests
for information
or
examined
employees
located
in
their
respective
jurisdictions
relating
to
the
cross-border
wealth
management
services provided
by UBS and
other financial institutions.
Credit Suisse offices
in various locations,
including the
UK,
the Netherlands, France and
Belgium, have been contacted
by regulatory and law
enforcement authorities seeking
records and information
concerning investigations
into Credit Suisse’s
historical private banking
services on a
cross-
border basis and
in part through
its local branches
and banks.
The UK and
French aspects
of these issues
have been
closed. UBS is continuing to cooperate with
the authorities.
Since 2013, UBS
(France) S.A., UBS AG
and certain former employees
have been under investigation in
France in
relation to UBS’s cross-border business with French
clients. In connection with this investigation, the investigating
judges ordered UBS AG to provide bail (“
caution
”) of EUR
1.1
bn.
In 2019,
the court of
first instance
returned a verdict
finding UBS AG
guilty of
unlawful solicitation of
clients on
French territory and aggravated
laundering of the proceeds
of tax fraud, and UBS
(France) S.A. guilty of aiding
and
abetting unlawful
solicitation and
of laundering
the proceeds
of tax
fraud. The
court imposed
fines aggregating
EUR
3.7
bn on UBS AG and UBS (France) S.A. and awarded EUR
800
m of civil damages to the French state. A trial
in the
Paris Court
of Appeal
took place
in March
- In
December 2021,
the Court
of Appeal
found UBS AG
guilty of unlawful solicitation and aggravated laundering of the proceeds of tax fraud. The court ordered a fine of
EUR
3.75
m,
the
confiscation
of
EUR
1
bn,
and
awarded
civil
damages
to
the
French
state
of
EUR
800
m.
UBS
appealed the decision to
the French Supreme Court. The
Supreme Court rendered its judgment
on 15 November
- It
upheld the
Court of
Appeal’s decision regarding
unlawful solicitation and
aggravated laundering of
the
proceeds of tax fraud, but overturned
the confiscation of EUR
1
bn, the penalty of EUR
3.75
m and the EUR
800
m
of civil
damages awarded
to the
French state.
The case
has been
remanded to
the Court
of Appeal
for a
retrial
regarding these overturned elements.
The French state has reimbursed the
EUR
800
m of civil damages to UBS AG.
In May 2014, Credit
Suisse AG entered into
settlement agreements with
the SEC, the Federal
Reserve and the
New
York Department of Financial
Services and agreed with
the US Department of
Justice (the DOJ) to
plead guilty to
conspiring
to
aid
and
assist
US
taxpayers
in
filing
false
tax
returns
(the
2014
Plea
Agreement).
Credit
Suisse
continued to report
to and cooperate
with US authorities
in accordance with its
obligations under the
2014 Plea
Agreement, including by
conducting a review
of cross-border services
provided by Credit
Suisse. In this connection,
Credit Suisse provided
information to US
authorities regarding potentially undeclared US
assets held by
clients at
Credit Suisse
since the
2014 Plea
Agreement. In
May 2025,
Credit Suisse
Services AG
entered into
a plea
agreement
(the 2025 Plea Agreement) with
the DOJ under
which it agreed to
plead guilty to one
count of conspiracy to
aid
and assist in the preparation of false income tax returns relating to legacy Credit Suisse accounts booked
in Credit
Suisse’s Swiss
booking center,
thereby settling
the investigation
into Credit
Suisse’s implementation of
the 2014
Plea Agreement.
In addition,
Credit Suisse
Services AG
entered into
a non-prosecution
agreement with
the DOJ
(the 2025 NPA) relating to
legacy Credit Suisse accounts booked in
Credit Suisse’s Singapore booking center. The
2025
Plea
Agreement
and
the
2025
NPA
provide
for
penalties,
restitution
and
forfeiture
of
USD
511
m
in
the
aggregate. The 2025
Plea Agreement
and the 2025
NPA include ongoing
obligations of
UBS to furnish
information
and cooperate with DOJ’s
investigations of legacy Credit
Suisse accounts held by US
persons in its Switzerland and
Singapore
booking
centers
and
related
accounts
in
other
booking
centers.
In
the
second
quarter
of
2025,
we
recorded in our
Non-core and
Legacy division a
net release
of USD
427
m of
provisions and contingent
liabilities,
which included a new provision for the estimated
costs of UBS’s ongoing obligations with the
DOJ.
Our balance
sheet at 30 June
2025
reflected provisions
in an
amount that UBS
believes to
be appropriate under
the applicable accounting standard. As in the case of other matters for
which we have established provisions, the
future
outflow of
resources in
respect of
such
matters cannot
be
determined with
certainty
based on
currently
available information
and accordingly
may ultimately
prove to
be substantially
greater (or
may be
less) than
the
p
rovision that we have recognized.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
84
Note 14
Provisions and contingent liabilities
(continued)
- Madoff
In relation to
the Bernard
L. Madoff Investment
Securities LLC
(BMIS) investment
fraud, UBS AG, UBS
(Luxembourg)
S.A. (now UBS
Europe SE, Luxembourg
branch) and certain
other UBS subsidiaries have
been subject to
inquiries
by a
number of
regulators, including
the Swiss
Financial Market
Supervisory Authority
(FINMA) and
the Luxembourg
Commission de
Surveillance
du Secteur
Financier. Those
inquiries concerned
two third-party
funds established
under
Luxembourg law, substantially all assets of which were with
BMIS, as well as certain funds
established in offshore
jurisdictions with either direct or indirect exposure to BMIS. These funds
faced severe losses, and the Luxembourg
funds are
in liquidation.
The documentation
establishing both
funds identifies
UBS entities
in various
roles, including
custodian,
administrator,
manager,
distributor
and
promoter,
and
indicates
that
UBS
employees
serve
as
board
members.
In 2009 and 2010, the liquidators
of the two Luxembourg funds
filed claims against UBS entities,
non-UBS entities
and
certain
individuals,
including
current
and
former
UBS
employees,
seeking
amounts
totaling
approximately
EUR
2.1
bn, which includes
amounts that the
funds may be
held liable to
pay the trustee
for the liquidation
of BMIS
(BMIS Trustee).
A large number of alleged beneficiaries have filed claims
against UBS entities (and non-UBS entities) for purported
losses relating to
the Madoff fraud.
The majority of
these cases have
been filed in
Luxembourg, where decisions
that the claims in eight test cases were inadmissible have been affirmed by the Luxembourg Court of Appeal, and
the Luxembourg Supreme Court has dismissed
a further appeal in one of the test
cases.
In the
US, the
BMIS Trustee
filed claims
against UBS
entities, among
others, in
relation to
the two
Luxembourg
funds and one of
the offshore funds. The
total amount claimed against
all defendants in
these actions was
not less
than USD
2
bn. In 2014,
the US
Supreme Court rejected
the BMIS Trustee’s
motion for leave
to appeal decisions,
dismissing all
claims against
UBS defendants
except those
for the
recovery of
approximately USD
125
m of
payments
alleged to be
fraudulent conveyances
and preference
payments. Similar
claims have
been filed against
Credit Suisse
entities seeking to recover
redemption payments. In
2016, the bankruptcy
court dismissed these
claims against the
UBS entities
and most
of the
Credit Suisse entities.
In 2019, the
Court of Appeals
reversed the dismissal
of the
BMIS
Trustee’s remaining claims. The cases were
remanded to the Bankruptcy Court for further
proceedings.
- Foreign exchange, LIBOR and benchmark rates,
and other trading practices
Foreign-exchange-related regulatory matters:
Beginning in 2013, numerous authorities commenced investigations
concerning possible
manipulation of
foreign exchange
markets and
precious metals
prices. As
a
result
of these
investigations, UBS entered into resolutions with Swiss, US and
UK regulators and the European Commission. UBS
was granted conditional immunity
by the Antitrust Division
of the DOJ
and by authorities
in other jurisdictions
in
connection with potential competition law violations relating to foreign exchange
and precious metals businesses.
In December
2021, the
European Commission
issued a
decision imposing
a fine
of EUR
83.3
m on
Credit Suisse
entities based on findings of anticompetitive practices in the foreign exchange market. Credit Suisse appealed the
decision to the
European General Court and,
in July 2025,
the court issued
a judgment reducing the
fine to EUR
28.9
m. The European
Commission is permitted
to appeal the
decision. UBS received
leniency and accordingly no
fine was assessed.
Foreign-exchange-related civil litigation:
Putative class actions have been filed since 2013 in US federal courts and
in
other jurisdictions
against UBS,
Credit
Suisse and
other banks
on
behalf of
persons who
engaged in
foreign
currency transactions with any of the defendant banks.
UBS and Credit Suisse have resolved US federal court class
actions relating to foreign currency transactions with the defendant banks and persons who
transacted in foreign
exchange futures
contracts and
options on
such futures.
Certain class
members have
excluded themselves
from
that settlement
and filed
individual actions in
US and
English courts against
UBS, Credit
Suisse and
other banks,
alleging violations of US and European competition laws and unjust enrichment. UBS, Credit Suisse and the other
banks
have
resolved
those individual
matters.
In
addition,
Credit
Suisse
and
UBS,
together
with
other
financial
institutions, were named in
a consolidated putative
class action in
Israel, which made
allegations similar to those
made in
the actions
pursued in
other jurisdictions.
Credit Suisse
and UBS
entered into
agreements to
settle all
claims
in this action in April 2022 and February 2024, respectively. Credit Suisse’s settlement received
court approval and
b
ecame final in May 2025. UBS’s settlement
remains subject to court approval.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
85
Note 14
Provisions and contingent liabilities
(continued)
LIBOR and other benchmark-related regulatory
matters:
Numerous government agencies conducted investigations
regarding potential improper attempts by UBS, among others, to manipulate LIBOR and other benchmark rates at
certain
times.
UBS
and
Credit
Suisse
reached
settlements
or
otherwise
concluded
investigations
relating
to
benchmark interest
rates with
the investigating
authorities. UBS
was granted
conditional leniency
or conditional
immunity
from
authorities
in
certain
jurisdictions,
including
the
Antitrust
Division
of
the
DOJ
and
the
Swiss
Competition Commission (WEKO), in
connection with potential
antitrust or competition
law violations related
to
certain rates.
However, UBS
has not
reached a
final settlement
with WEKO,
as the
Secretariat of
WEKO has
asserted
that UBS does not qualify for full immunity.
LIBOR and
other benchmark-related
civil litigation:
A number
of putative
class actions
and other
actions are
pending
in the federal
courts in New
York against UBS
and numerous other banks
on behalf of
parties who transacted in
certain interest rate benchmark-based derivatives. Also
pending in the US
and in other jurisdictions are
a number
of other
actions asserting losses
related to
various products whose
interest rates were
linked to
LIBOR and other
benchmarks, including
adjustable rate
mortgages, preferred
and debt securities,
bonds pledged
as collateral, loans,
depository
accounts,
investments
and
other
interest-bearing
instruments.
The
complaints
allege
manipulation,
through various
means, of
certain benchmark
interest rates,
including USD LIBOR,
Yen LIBOR,
EURIBOR, CHF LIBOR,
and GBP LIBOR and seek unspecified compensatory
and other damages under various legal
theories.
USD LIBOR class and individual actions in the
US:
Beginning in 2013, putative class actions
were filed in US federal
district courts
(and subsequently
consolidated in
the US
District Court
for the Southern
District of New
York (SDNY))
by plaintiffs who
engaged in over-the-counter
instruments, exchange-traded
Eurodollar futures and
options, bonds
or
loans
that
referenced
USD LIBOR.
The
complaints
allege
violations
of
antitrust
law
and
the
Commodities
Exchange Act,
as well
breach of
contract and unjust
enrichment. Following various
rulings by
the SDNY
and the
Second Circuit
dismissing certain
of the
causes of
action and
allowing others
to proceed,
one
class action
with
respect
to
transactions
in
over-the-counter
instruments
and
several
actions
brought
by
individual
plaintiffs
are
proceeding in the district court.
UBS and Credit Suisse
have entered into settlement agreements in
respect of the
class actions relating
to exchange-traded
instruments, bonds
and loans. These
settlements have
received final court
approval and
the actions
have been
dismissed as
to UBS
and Credit
Suisse. In
addition, an
individual action
was
filed in
federal court
in California
against UBS,
Credit Suisse
and numerous
other banks
alleging that
the defendants
conspired to fix the interest rate used as the basis for loans to consumers by jointly
setting the USD ICE LIBOR rate
and
monopolized
the
market
for
LIBOR-based
consumer loans
and
credit
cards. The
court
dismissed
the
initial
complaint and
subsequently
dismissed an
amended complaint
with prejudice;
the US
Court of
Appeals for
the Ninth
Circuit
affirmed
the
dismissal. In
June
2025,
the
US
Supreme
Court
denied
plaintiffs’ petition
to
challenge
the
decisions of the lower courts.
Other benchmark
class actions
in the
US:
The Yen
LIBOR/Euroyen TIBOR,
EURIBOR and
GBP LIBOR
actions have
been dismissed. Plaintiffs have appealed the
dismissals.
In January 2023, defendants
moved to dismiss the
complaint in the CHF
LIBOR action. In 2023,
the court approved
a settlement by Credit Suisse of the claims
against it in this matter.
Government bonds:
In 2021,
the European
Commission issued
a decision
finding that
UBS and
six other
banks
breached European
Union antitrust
rules between
2007 and
2011 relating
to European
government bonds. The
European Commission
fined UBS
EUR
172
m, which
amount was
confirmed on
appeal in
March 2025.
UBS has
appealed to the European Court of Justice.
Credit default
swap auction
litigation –
In June
2021, Credit
Suisse, along
with other
banks and
entities, was
named
in a
putative class action
filed in
federal court in
New Mexico alleging
manipulation of credit default
swap (CDS)
final auction prices.
Defendants filed a
motion to enforce
a previous CDS
class action settlement
in the
SDNY. In
January 2024,
the SDNY
ruled that,
to the
extent claims
in the
New
Mexico action
arise from
conduct prior
to
30 June
2014,
those claims
are
barred
by
the SDNY
settlement.
The
plaintiffs
appealed
and, in
May
2025, the
Second Circuit affirmed the SDNY decision.
With respect
to additional
matters and
jurisdictions not
encompassed by
the settlements
and orders
referred to
above, UBS’s balance
sheet at 30
June 2025 reflected
a provision in an
amount that UBS
believes to be
appropriate
under the
applicable accounting
standard. As
in the
case of
other matters
for which
we have
established provisions,
the future outflow of resources in respect of such matters
cannot be determined with certainty based on currently
available information
and accordingly
may ultimately
prove to
be substantially
greater (or
may be
less) than
the
p
rovision that we have recognized.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
86
Note 14
Provisions and contingent liabilities
(continued)
- Mortgage-related matters
Government and
regulatory related
matters
:
DOJ RMBS
settlement
– In January
2017, Credit
Suisse Securities
(USA)
LLC (CSS LLC)
and its current
and former
US subsidiaries
and US affiliates
reached a
settlement with
the DOJ
related
to its
legacy
Residential Mortgage-Backed
Securities (RMBS)
business, a
business conducted
through 2007.
The
settlement resolved potential
civil claims
by the
DOJ related
to certain
of those
Credit Suisse
entities’ packaging,
marketing,
structuring,
arrangement,
underwriting,
issuance
and
sale
of
RMBS.
Pursuant
to
the
terms
of
the
settlement a civil monetary penalty
was paid to the
DOJ in January 2017. The
settlement also required the Credit
Suisse entities
to provide
certain levels
of consumer
relief measures,
including affordable
housing payments
and
loan forgiveness, and the DOJ and
Credit Suisse agreed to the appointment
of an independent monitor to oversee
the
completion
of
the
consumer relief
requirements of
the
settlement. UBS
continues
to
evaluate
its
approach
toward
satisfying
the
remaining
consumer
relief
obligations.
The
aggregate
amount
of
the
consumer
relief
obligation increased
after 2021
by
5
% per
annum of
the outstanding
amount due
until these
obligations
are settled.
The monitor publishes reports periodically on
these consumer relief matters.
Civil litigation:
Repurchase litigations
– Credit
Suisse affiliates
are defendants
in various
civil litigation
matters related
to their roles as issuer, sponsor, depositor, underwriter and/or servicer of RMBS transactions. These cases currently
include
repurchase
actions
by
RMBS
trusts
and/or
trustees,
in
which
plaintiffs
generally
allege
breached
representations and
warranties
in
respect of
mortgage loans
and
failure
to
repurchase such
mortgage loans
as
required
under
the
applicable
agreements. The
amounts disclosed
below
do
not
reflect
actual
realized
plaintiff
losses to
date. Unless
otherwise stated,
these amounts
reflect
the original
unpaid principal
balance amounts
as
alleged in these actions.
DLJ Mortgage Capital, Inc. (DLJ) is a defendant
in New York State court in five actions:
An action brought by Asset
Backed
Securities
Corporation
Home
Equity
Loan
Trust,
Series
2006-HE7
alleges
damages
of
not
less
than
USD
374
m.
In
December 2023,
the
court granted
in
part
DLJ’s
motion
to
dismiss, dismissing
with
prejudice all
notice-based
claims;
the
parties
have
appealed.
An
action
by
Home
Equity
Asset
Trust,
Series
2006-8,
alleges
damages of not
less than
USD
436
m. An
action by Home
Equity Asset Trust
2007-1 alleges damages
of not
less
than
USD
420
m.
Following
a
non-jury
trial,
the
court
issued
a
decision
in
December
2024
that
the
plaintiff
established
liability
relating
to
certain
of
the
loans
at
issue,
and
in
May
2025,
the
court
awarded
damages
of
approximately USD
66
m plus interest
and costs.
The parties
have appealed the
decision on
liability. An action
by
Home Equity
Asset Trust 2007-2
alleges damages of
not less
than USD
495
m. An
action by CSMC
Asset-Backed
Trust 2007-NC1 does not allege a damages amount.
- ATA litigation
Since November 2014, a
series of lawsuits have
been filed against a
number of banks, including
Credit Suisse, in
the US District
Court for the
Eastern District of New
York (EDNY) and the
SDNY alleging claims under
the United
States Anti-Terrorism Act
(ATA) and
the Justice
Against Sponsors
of Terrorism
Act. The
plaintiffs in
each of
these
lawsuits are, or are relatives of, victims of
various terrorist attacks in Iraq and allege
a conspiracy and/or aiding and
abetting based on allegations that various
international financial institutions, including the defendants, agreed to
alter, falsify
or omit
information from payment
messages that involved
Iranian parties for
the express
purpose of
concealing the
Iranian parties’ financial
activities and transactions
from detection
by US
authorities. The lawsuits
allege that
this conduct
has made
it possible
for Iran
to transfer
funds to
Hezbollah and
other terrorist
organizations
actively engaged
in harming
US military
personnel and
civilians. In
January 2023,
the Second
Circuit affirmed
a
September 2019
ruling by
the EDNY
granting defendants’
motion to
dismiss the
first filed
lawsuit. In
October 2023,
the US Supreme Court denied plaintiffs’ petition for a writ
of certiorari. In February 2024, plaintiffs filed a motion
to vacate the judgment in the first filed lawsuit. Of
the other seven cases, four are stayed, including one that was
dismissed
as
to
Credit
Suisse
and
most
of
the
bank
defendants
prior
to
entry
of
the
stay,
and
in
three
cases
d
efendants moved to dismiss plaintiffs’ amended
complaints.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
87
Note 14
Provisions and contingent liabilities
(continued)
- Customer account matters
Several
clients
have
claimed
that
a
former
relationship
manager
in
Switzerland
had
exceeded
his
investment
authority
in
the
management of
their
portfolios, resulting
in
excessive
concentrations of
certain
exposures and
investment losses. Credit
Suisse AG has
investigated the claims,
as well as
transactions among the
clients. Credit
Suisse AG filed a criminal complaint against the former relationship manager with
the Geneva Prosecutor’s Office
upon which the
prosecutor initiated
a criminal investigation.
Several clients of
the former relationship
manager also
filed criminal complaints with the
Geneva Prosecutor’s Office. In February 2018,
the former relationship manager
was sentenced to five years
in prison by the Geneva criminal
court for fraud, forgery
and criminal mismanagement
and ordered
to pay
damages of
approximately USD
130
m. On
appeal, the Criminal
Court of
Appeals of
Geneva
and, subsequently, the Swiss Federal Supreme
Court upheld the main findings of the
Geneva criminal court.
Civil lawsuits have
been initiated against Credit
Suisse AG and
/ or certain
affiliates in various jurisdictions,
based
on the findings established in the criminal
proceedings against the former relationship
manager.
In Singapore, in a
now-concluded civil lawsuit,
Credit Suisse Trust
Limited was ordered
to pay USD
461
m, including
interest and costs.
In Bermuda, in the civil
lawsuit brought against Credit Suisse Life
(Bermuda) Ltd., the Supreme Court of Bermuda
issued a judgment awarding damages of USD
607.35
m to the plaintiff. Credit Suisse Life (Bermuda) Ltd. appealed
the
decision.
In
June
2023,
the
Bermuda
Court
of
Appeal
confirmed
the
award
and
the
Supreme
Court
of
Bermuda’s
finding
that
Credit
Suisse
Life
(Bermuda)
Ltd.
breached
its
contractual
and
fiduciary
duties,
but
overturned the finding that Credit Suisse Life (Bermuda) Ltd. made fraudulent misrepresentations. In March 2024,
Credit Suisse Life (Bermuda) Ltd. was granted leave to appeal the judgment to the Judicial Committee of the Privy
Council and a hearing on
the appeal was held in
June 2025. The Bermuda Court of Appeal
also ordered that the
current
stay
continue
pending
determination
of
the
appeal
on
the
condition
that
the
damages
awarded,
plus
interest calculated at the Bermuda statutory
rate of
3.5
%, remain in the escrow account.
In Switzerland, certain civil lawsuits have been commenced against Credit Suisse AG in the
Court of First Instance
of Geneva since March 2023.
- Mozambique matter
Credit
Suisse
was
subject
to
investigations by
regulatory and
enforcement authorities,
as
well
as
civil
litigation,
regarding certain
Credit Suisse
entities’ arrangement
of loan financing
to Mozambique
state enterprises,
Proindicus
S.A. and Empresa Moçambicana de
Atum S.A. (EMATUM), a distribution
to private investors of loan
participation
notes (LPN)
related to
the EMATUM
financing in
September 2013, and
certain Credit
Suisse entities’ subsequent
role in arranging the exchange
of those LPNs for Eurobonds
issued by the Republic of
Mozambique. In 2019,
three
former Credit Suisse employees pleaded guilty in the EDNY to accepting improper personal benefits in connection
with financing transactions carried out with
two Mozambique state enterprises.
In
October 2021,
Credit
Suisse reached
settlements with
the DOJ,
the US
Securities and
Exchange Commission
(SEC), the
UK Financial
Conduct Authority
(FCA) and
FINMA to
resolve inquiries
by these
agencies, including
findings
that Credit
Suisse failed
to appropriately
organize and
conduct its
business with
due skill
and care,
and manage
risks. Credit
Suisse Group
AG entered
into a
three-year Deferred
Prosecution Agreement
(DPA) with
the DOJ
in
connection with the criminal information
charging Credit Suisse Group AG
with conspiracy to commit wire
fraud
and Credit
Suisse Securities
(Europe) Limited
(CSSEL) entered
into a
Plea Agreement
and pleaded
guilty to
one count
of conspiracy to
violate the US
federal wire fraud
statute. Under the
terms of the
DPA, UBS Group
AG (as successor
to Credit Suisse Group
AG) continued compliance enhancement and remediation efforts agreed
by Credit Suisse,
and undertake additional measures as
outlined in the DPA.
In January 2025, as
permitted under the terms of
the
DPA, the DOJ elected to extend the term of
the DPA by one year.
- ETN-related litigation
XIV litigation:
Since March 2018, three class action complaints
were filed in the SDNY on behalf of
a putative class
of
purchasers of
VelocityShares Daily
Inverse
VIX Short-Term Exchange
Traded Notes
linked
to
the
S&P
500
VIX
Short-Term Futures
Index (XIV
ETNs). The
complaints have
been consolidated
and asserts
claims against
Credit Suisse
for violations of various anti-fraud and
anti-manipulation provisions of US securities laws arising from
a decline in
the value
of XIV
ETNs in
February 2018. On
appeal from
an order
of the
SDNY dismissing all
claims, the
Second
Circuit issued an order that reinstated a portion of the claims.
In decisions in March 2023 and February 2025, the
court granted class certification for two of the three classes proposed by plaintiffs and denied class certification of
t
he third proposed class.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
88
Note 14
Provisions and contingent liabilities
(continued)
- Bulgarian former clients matter
In December 2020, the Swiss Office
of the Attorney General brought charges against Credit
Suisse AG and other
parties concerning the diligence and controls applied to a historical relationship with Bulgarian former
clients who
are
alleged to
have laundered
funds through
Credit Suisse
AG accounts.
In
June 2022,
following a
trial, Credit
Suisse AG was convicted in the Swiss Federal Criminal Court of certain historical organizational
inadequacies in its
anti-money-laundering framework
and ordered to pay
a fine of CHF
2
m. In addition, the court
seized certain client
assets in the amount of approximately CHF
12
m and ordered Credit Suisse AG to pay
a compensatory claim in the
amount of approximately
CHF
19
m. Credit Suisse AG
appealed the decision to
the Swiss Federal Court
of Appeals.
Following the
merger of
UBS AG
and Credit
Suisse AG,
UBS AG
confirmed the
appeal. In
November 2024,
the
court issued a judgment that
acquitted UBS AG and annulled
the fine and compensatory claim
ordered by the first
instance court.
In February
2025, the
court affirmed
the acquittal
of UBS
AG, and
the Office
of the
Attorney General
has appealed
the judgment
to the
Swiss Federal
Supreme Court.
UBS has
also appealed,
limited to
the issue
whether
a successor entity by merger can be criminally
liable for acts of the predecessor entity.
- Archegos
Credit
Suisse
and
UBS
have
received
requests
for
documents
and
information
in
connection
with
inquiries,
investigations
and/or
actions
relating
to
their
relationships
with
Archegos
Capital
Management
(Archegos),
including from FINMA
(assisted by a
third party appointed
by FINMA), the
DOJ, the SEC,
the US Federal
Reserve,
the
US
Commodity
Futures
Trading
Commission
(CFTC),
the
US
Senate
Banking
Committee,
the
Prudential
Regulation Authority (PRA),
the FCA,
the WEKO,
the Hong
Kong Competition Commission
and other
regulatory
and governmental agencies. UBS is cooperating with the authorities in these matters.
In July 2023, CSI and CSSEL
entered into a settlement agreement with
the PRA providing for the
resolution of the PRA’s investigation. Also
in
July 2023, FINMA
issued a decree
ordering remedial measures
and the
Federal Reserve Board
issued an Order
to
Cease and Desist. Under the terms of the order,
Credit Suisse paid a civil money penalty and agreed to
undertake
certain remedial
measures relating
to counterparty
credit risk
management, liquidity
risk management
and non-
financial risk management, as well as enhancements to board oversight and governance. UBS Group,
as the legal
successor to Credit Suisse Group AG,
is a party to
the FINMA decree and Federal Reserve Board
Cease and Desist
Order.
Civil
actions
relating
to
Credit
Suisse’s
relationship with
Archegos
have
been
filed
against
Credit
Suisse
and/or
certain officers and directors, including claims
for breaches of fiduciary duties.
- Credit Suisse financial disclosures
Credit Suisse
Group AG
and certain
directors, officers and
executives have
been named
in securities
class action
complaints pending in the SDNY and New Jersey federal court. These complaints, filed on behalf
of purchasers of
Credit Suisse shares, additional
tier 1 capital notes, and other securities in 2023 and 2024, allege that defendants
made
misleading
statements regarding:
(i) customer outflows
in
late
2022
and
early
2023;
(ii) the
adequacy
of
Credit Suisse’s
financial reporting
controls; and
(iii) the adequacy
of Credit
Suisse’s risk
management processes,
and
include
allegations
relating
to
Credit
Suisse
Group AG’s
merger
with
UBS
Group AG.
In
July
2025,
the
SDNY
certified the class
in one case,
and, in another
case, brought
on behalf
of a second
class, granted
in part and
denied
in part a motion to dismiss.
Credit Suisse has received requests for documents and information from regulatory and governmental agencies in
connection with inquiries,
investigations and/or actions
relating to
these matters, as
well as
for other statements
regarding Credit Suisse’s financial condition,
including from the SEC, the DOJ
and FINMA. UBS is cooperating with
t
he authorities in these matters.
UBS Group second
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
89
Note 14
Provisions and contingent liabilities
(continued)
- Merger-related litigation
Certain Credit
Suisse Group AG
affiliates and certain
directors, officers
and executives have
been named in
class
action complaints pending
in the
SDNY. One complaint,
brought on
behalf of Credit
Suisse shareholders, alleges
breaches of fiduciary duty under Swiss law and civil RICO
claims under US federal law. In February 2024,
the court
granted
defendants’
motions
to
dismiss
the
civil
RICO
claims
and
conditionally
dismissed
the
Swiss
law
claims
pending defendants’ acceptance of
jurisdiction in Switzerland. In
March 2024, having received
consents to Swiss
jurisdiction from all defendants served with the complaint, the court
dismissed the Swiss law claims against those
defendants. Additional
complaints, brought
on behalf
of holders
of Credit
Suisse additional
tier 1 capital
notes (AT1
noteholders) allege breaches of
fiduciary duty under
Swiss law, arising
from a series
of scandals and
misconduct,
which
led
to
Credit
Suisse
Group
AG’s
merger
with
UBS
Group
AG,
causing
losses
to
shareholders
and
AT1
noteholders. Motions to dismiss these complaints were granted in March 2024 and
September 2024 on the basis
that Switzerland
is the
most appropriate
forum for
litigation. Plaintiffs
in two
of these
cases have
appealed the
dismissal.
UBS Group second quarter 2025 report
|
Appendix
90
Appendix
Alternative performance measures
An alternative performance measure (an APM) is a financial measure of historical or
future financial performance,
financial position
or cash
flows other
than a
financial measure
defined or
specified in
the applicable
recognized
accounting standards or in
other applicable regulations. A
number of APMs
are reported in
the discussion of
the
financial and operating performance of
the external reports (annual, quarterly
and other reports). APMs
are used
to provide
a more
complete
picture of
operating
performance and
to reflect
management’s
view of
the fundamental
drivers
of
the
business
results. A
definition
of
each
APM,
the
method
used
to
calculate
it
and
the
information
content are presented in alphabetical order
in the table below. These APMs may qualify
as non-GAAP measures as
d
efined by US Securities and Exchange Commission
(SEC) regulations.
APM label
Calculation
Information content
Cost / income ratio (%)
Calculated as operating expenses divided by
total
revenues.
This measure provides information about the
efficiency of the business by comparing operating
expenses with total revenues.
Cost of credit risk (bps)
Calculated as total credit loss expense / (release)
(annualized for reporting periods shorter than
12 months) divided by the average balance
of lending
assets for the reporting period, expressed in basis
points. Lending assets include the gross amounts
of
Amounts due from banks and Loans and advances
to
customers.
This measure provides information about the total
credit loss expense / (release) incurred in relation to
the average balance of gross lending assets for the
period.
Credit-impaired lending assets as a
percentage of total lending assets,
gross (%)
Calculated as credit-impaired lending assets divided
by total lending assets. Lending assets includes
the
gross amounts of Amounts due from banks and
Loans and advances to customers. Credit-impaired
lending assets refers to the sum of stage 3 and
purchased credit-impaired positions.
This measure provides information about the
proportion of credit-impaired lending assets in the
overall portfolio of gross lending assets.
Fee-generating assets (USD)
– Global Wealth Management
Calculated as the sum of discretionary and
nondiscretionary wealth management portfolios
(mandate volume) and assets where generated
revenues are predominantly of a recurring nature, i.e.
mainly investment, mutual, hedge and private-market
funds where we have a distribution agreement,
including client commitments into closed-ended
private-market funds from the date that recurring
fees are charged. Assets related to our Global
Financial Intermediaries business are excluded, as
are
assets of sanctioned clients.
This measure provides information about the volume
of invested assets that create a revenue stream,
whether as a result of the nature of the contractual
relationship with clients or through the fee structure
of the asset. An increase in the level of fee-generating
assets results in an increase in the associated revenue
stream. Assets of sanctioned clients are excluded from
fee-generating assets.
Gross margin on invested assets (bps)
– Asset Management
Calculated as total revenues (annualized for reporting
periods shorter than 12 months) divided by
average
invested assets.
This measure provides information about the total
revenues of the business in relation to invested assets.
Impaired loan portfolio as a percentage
of total loan portfolio, gross (%)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as impaired loan portfolio divided by
total
gross loan portfolio.
This measure provides information about the
proportion of impaired loan portfolio in the total gross
loan portfolio.
Integration-related expenses (USD)
Generally include costs of internal staff
and
contractors substantially dedicated to integration
activities, retention awards, redundancy costs,
incremental expenses from the shortening of useful
lives of property, equipment and software, and
impairment charges relating to these assets.
Classification as integration-related expenses does
not
affect the timing of recognition and measurement of
those expenses or the presentation thereof in the
income statement. Integration-related expenses
incurred by Credit Suisse also included expenses
associated with restructuring programs that existed
prior to the acquisition.
This measure provides information about expenses
that are temporary, incremental and directly related to
the integration of Credit Suisse into UBS.
UBS Group second quarter 2025 report
|
Appendix
91
APM label
Calculation
Information content
Invested assets (USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management
Calculated as the sum of managed fund
assets,
managed institutional assets, discretionary and
advisory wealth management portfolios, fiduciary
deposits, time deposits, savings accounts,
and wealth
management securities or brokerage accounts.
This measure provides information about the volume
of client assets managed by or deposited with
UBS for
investment purposes.
Net interest margin (bps)
– Personal & Corporate Banking
Calculated as net interest income (annualized for
reporting periods shorter than 12 months) divided by
average loans.
This measure provides information about the
profitability of the business by calculating the
difference between the price charged for lending and
the cost of funding, relative to loan value.
Net new assets (USD)
– Global Wealth Management
Calculated as the net amount of inflows and
outflows
of invested assets (as defined in UBS policy) recorded
during a specific period, plus interest and dividends.
Excluded from the calculation are movements due to
market performance, foreign exchange translation,
fees, and the effects on invested assets of strategic
decisions by UBS to exit markets or services.
This measure provides information about the
development of invested assets during a
specific
period as a result of net new asset flows, plus the
effect of interest and dividends.
Net new assets growth rate (%)
– Global Wealth Management
Calculated as the net amount of inflows and
outflows
of invested assets (as defined in UBS policy) recorded
during a specific period (annualized for reporting
periods shorter than 12 months), plus
interest and
dividends, divided by total invested assets
at the
beginning of the period.
This measure provides information about the growth
of invested assets during a specific period
as a result
of net new asset flows.
Net new deposits (USD)
– Global Wealth Management
Calculated as the net amount of inflows and
outflows
of deposits recorded during a specific period. Deposits
include customer deposits and customer brokerage
payables. Excluded from the calculation are
movements due to fair value measurement, foreign
exchange translation, accrued interest and fees,
as
well as the effects on customer deposits of strategic
decisions by UBS to exit markets or services.
This measure provides information about the
development of deposits during a specific period
as a
result of net new deposit flows.
Net new fee-generating assets (USD)
– Global Wealth Management
Calculated as the net amount of fee-generating
asset
inflows and outflows, including dividend
and interest
inflows into mandates and outflows from mandate
fees paid by clients during a specific period.
Excluded
from the calculation are the effects on fee-generating
assets of strategic decisions by UBS to exit
markets or
services.
This measure provides information about the
development of fee-generating assets during
a
specific period as a result of net flows, excluding
movements due to market performance and
foreign
exchange translation, as well as the effects on fee-
generating assets of strategic decisions by UBS
to exit
markets or services.
Net new loans (USD)
– Global Wealth Management
Calculated as the net amount of originations,
drawdowns and repayments of loans recorded during
a specific period. Loans include loans and
advances to
customers and customer brokerage receivables.
Excluded from the calculation are allowances,
movements due to fair value measurement and
foreign exchange translation, as well as the
effects on
loans and advances to customers of strategic
decisions by UBS to exit markets or services.
This measure provides information about the
development of loans during a specific period
as a
result of net new loan flows.
Net new money (USD)
– Global Wealth Management,
Asset Management
Calculated as the net amount of inflows and
outflows
of invested assets (as defined in UBS policy) recorded
during a specific period. Excluded from the calculation
are movements due to market performance, foreign
exchange translation, dividends, interest and fees,
as
well as the effects on invested assets of strategic
decisions by UBS to exit markets
or services. Net new
money is not measured for Personal & Corporate
Banking.
This measure provides information about the
development of invested assets during a
specific
period as a result of net new money flows.
Net profit growth (%)
Calculated as the change in net profit attributable
to
shareholders from continuing operations between
current and comparison periods divided by net profit
attributable to shareholders from continuing
operations of the comparison period.
This measure provides information about profit
growth since the comparison period.
Operating expenses (underlying)
(USD)
Calculated by adjusting operating expenses
as
reported in accordance with IFRS Accounting
Standards for items that management believes
are
not representative of the underlying performance of
the businesses.
›
Refer to the “Group performance” section of this
report for more information
This measure provides information about the amount
of operating expenses, while excluding items
that
management believes are not representative of the
underlying performance of the businesses.
UBS Group second quarter 2025 report
|
Appendix
92
APM label
Calculation
Information content
Operating profit / (loss) before tax
(underlying) (USD)
Calculated by adjusting operating profit / (loss) before
tax as reported in accordance with IFRS Accounting
Standards for items that management believes
are
not representative of the underlying performance of
the businesses.
›
Refer to the “Group performance” section of this
report for more information
This measure provides information about the amount
of operating profit / (loss) before tax, while excluding
items that management believes are not
representative of the underlying performance of the
businesses.
Pre-tax profit growth (%)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management,
the Investment Bank
Calculated as the change in net profit before tax
attributable to shareholders from continuing
operations between current and comparison periods
divided by net profit before tax attributable to
shareholders from continuing operations of the
comparison period.
This measure provides information about pre-tax
profit growth since the comparison period.
Pre-tax profit growth (underlying) (%)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management,
the Investment Bank
Calculated as the change in net profit before tax
attributable to shareholders from continuing
operations between current and comparison periods
divided by net profit before tax attributable to
shareholders from continuing operations of the
comparison period. Net profit before tax attributable
to shareholders from continuing operations excludes
items that management believes are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about pre-tax
profit growth since the comparison period, while
excluding items that management believes
are not
representative of the underlying performance of the
businesses.
Recurring net fee income
(USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as the total of fees for services provided
on
an ongoing basis, such as portfolio management
fees,
asset-based investment fund fees and custody
fees,
which are generated on client assets, and
administrative fees for accounts.
This measure provides information about the amount
of recurring net fee income.
Return on attributed equity (%)
Calculated as business division operating profit before
tax (annualized for reporting periods shorter than
12 months) divided by average attributed
equity.
This measure provides information about the
profitability of the business divisions in relation to
attributed equity.
Return on common equity tier 1
capital (%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average common equity
tier 1
capital.
This measure provides information about the
profitability of the business in relation to common
equity tier 1 capital.
Return on equity (%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average equity attributable
to
shareholders.
This measure provides information about the
profitability of the business in relation to equity.
Return on tangible equity (%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average equity attributable
to
shareholders less average goodwill and intangible
assets.
This measure provides information about the
profitability of the business in relation to tangible
equity.
Revenues over leverage ratio
denominator, gross (%)
Calculated as total revenues (annualized for reporting
periods shorter than 12 months) divided by the
average leverage ratio denominator.
This measure provides information about the revenues
of the business in relation to the leverage ratio
denominator.
Tangible book value per share
(USD)
Calculated as equity attributable to shareholders less
goodwill and intangible assets divided by the
number
of shares outstanding.
This measure provides information about tangible net
assets on a per-share basis.
Total book value per share
(USD)
Calculated as equity attributable to shareholders
divided by the number of shares outstanding.
This measure provides information about net assets
on a per-share basis.
Total revenues (underlying)
(USD)
Calculated by adjusting total revenues as reported in
accordance with IFRS Accounting Standards for items
that management believes are not representative of
the underlying performance of the businesses.
›
Refer to the “Group performance” section of this
report for more information
This measure provides information about the amount
of total revenues, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Transaction-based income
(USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as the total of the non-recurring portion
of
net fee and commission income, mainly composed
of
brokerage and transaction-based investment fund
fees, and credit card fees, as well as fees for payment
and foreign-exchange transactions, together with
other net income from financial instruments
measured at fair value through profit or loss.
This measure provides information about the amount
of the non-recurring portion of net fee and
commission income, together with other net
income
from financial instruments measured at fair value
through profit or loss.
Underlying cost / income ratio (%)
Calculated as underlying operating expenses
(as
defined above) divided by underlying total
revenues
(as defined above).
This measure provides information about the
efficiency of the business by comparing operating
expenses with total revenues, while excluding items
that management believes are not representative of
the underlying performance of the businesses.
UBS Group second quarter 2025 report
|
Appendix
93
APM label
Calculation
Information content
Underlying net profit growth (%)
Calculated as the change in net profit attributable
to
shareholders from continuing operations between
current and comparison periods divided by net profit
attributable to shareholders from continuing
operations of the comparison period.
Net profit
attributable to shareholders from continuing
operations excludes items that management
believes
are not representative of the underlying performance
of the businesses and also excludes related tax
impact.
This measure provides information about profit
growth since the comparison period, while excluding
items that management believes are not
representative of the underlying performance of the
businesses.
Underlying return on attributed equity
(%)
Calculated as underlying business division
operating
profit before tax (annualized for reporting periods
shorter than 12 months) (as defined above)
divided by
average attributed equity.
This measure provides information about the
profitability of the business divisions in relation to
attributed equity, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Underlying return on common equity
tier 1 capital (%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average common equity
tier 1
capital. Net profit attributable to shareholders
excludes items that management believes
are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about the
profitability of the business in relation to common
equity tier 1 capital, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Underlying return on tangible equity
(%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average equity attributable
to
shareholders less average goodwill and intangible
assets. Net profit attributable to shareholders excludes
items that management believes are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about the
profitability of the business in relation to tangible
equity, while excluding items that management
believes are not representative of the underlying
performance of the businesses.
This is
a general list
of the APMs
used in our
financial reporting. Not
all of
the APMs listed
above may appear
in
this particular report.
Information related to underlying return on common equity tier 1 capital (RoCET1) and underlying return on tangible
equity (%)
As of or for the quarter ended
As of or year-to-date
USD m, except where indicated
30.6.25
31.3.25
31.12.24
30.6.24
30.6.25
30.6.24
Underlying operating profit / (loss) before tax
2,683
2,586
1,768
2,060
5,269
4,677
Underlying tax expense / (benefit)
(45)
587
456
410
542
1,087
Net profit / (loss) attributable to non-controlling interests
7
10
9
40
18
48
Underlying net profit / (loss) attributable to shareholders
2,720
1,989
1,303
1,611
4,709
3,542
Underlying net profit / (loss) attributable to shareholders
1
10,880
7,955
5,211
6,442
9,418
7,085
Tangible equity
82,254
80,276
78,192
76,370
82,254
76,370
Average tangible equity
81,265
79,234
79,084
76,882
80,249
77,317
CET1 capital
72,709
69,152
71,367
76,104
72,709
76,104
Average CET1 capital
70,931
70,260
72,790
76,883
70,595
77,358
Underlying return on tangible equity (%)
1
13.4
10.0
6.6
8.4
11.7
9.2
Underlying return on common equity tier 1 capital (%)
1
15.3
11.3
7.2
8.4
13.3
9.2
1 Annualized for reporting periods shorter than 12 months.
UBS Group second quarter 2025 report
|
Appendix
94
Abbreviations frequently used in our financial reports
A
ABS
asset-backed securities
AG
Aktiengesellschaft
AGM
Annual General Meeting of
shareholders
AI
artificial intelligence
A-IRB
advanced internal ratings-
based
ALCO
Asset and Liability
Committee
AMA
advanced measurement
approach
AML
anti-money laundering
AoA
Articles of Association
APM
alternative performance
measure
ARR
alternative reference rate
ARS
auction rate securities
ASF
available stable funding
AT1
additional tier 1
AuM
assets under management
B
BCBS
Basel Committee on
Banking Supervision
BIS
Bank for International
Settlements
BoD
Board of Directors
C
CAO
Capital Adequacy
Ordinance
CCAR
Comprehensive Capital
Analysis and Review
CCF
credit conversion factor
CCP
central counterparty
CCR
counterparty credit risk
CCRC
Corporate Culture and
Responsibility Committee
CDS
credit default swap
CEO
Chief Executive Officer
CET1
common equity tier 1
CFO
Chief Financial Officer
CGU
cash-generating unit
CHF
Swiss franc
CIO
Chief Investment Office
C&ORC
Compliance & Operational
Risk Control
CRM
credit risk mitigation
CRO
Chief Risk Officer
CST
combined stress test
CUSIP
Committee on Uniform
Security Identification
Procedures
CVA
credit valuation adjustment
D
DBO
defined benefit obligation
DCCP
Deferred Contingent
Capital Plan
DFAST
Dodd–Frank Act Stress Test
DM
discount margin
DOJ
US Department of Justice
DTA
deferred tax asset
DVA
debit valuation adjustment
E
EAD
exposure at default
EB
Executive Board
EC
European Commission
ECB
European Central Bank
ECL
expected credit loss
EGM
Extraordinary General
Meeting of shareholders
EIR
effective interest rate
EL
expected loss
EMEA
Europe, Middle East and
Africa
EOP
Equity Ownership Plan
EPS
earnings per share
ESG
environmental, social and
governance
ETD
exchange-traded derivatives
ETF
exchange-traded fund
EU
European Union
EUR
euro
EURIBOR
Euro Interbank Offered Rate
EVE
economic value of equity
EY
Ernst & Young Ltd
F
FCA
UK Financial Conduct
Authority
FDIC
Federal Deposit Insurance
Corporation
FINMA
Swiss Financial Market
Supervisory Authority
FMIA
Swiss Financial Market
Infrastructure Act
FRTB
Fundamental Review of the
Trading Book
FSB
Financial Stability Board
FTA
Swiss Federal Tax
Administration
FVA
funding valuation
adjustment
FVOCI
fair value through other
comprehensive income
FVTPL
fair value through profit or
loss
FX
foreign exchange
G
GAAP
generally accepted
accounting principles
GBP
pound sterling
GCRG
Group Compliance,
Regulatory and Governance
GDP
gross domestic product
GEB
Group Executive Board
GHG
greenhouse gas
GIA
Group Internal Audit
GRI
Global Reporting Initiative
G-SIB
global systemically
important bank
H
HQLA
high-quality liquid assets
I
IA
Internal Audit
IAS
International Accounting
Standards
IASB
International Accounting
Standards Board
IBOR
interbank offered rate
IFRIC
International Financial
Reporting Interpretations
Committee
IFRS
accounting standards
Accounting
issued by the IASB
Standards
IRB
internal ratings-based
IRRBB
interest rate risk in the
banking book
ISDA
International Swaps and
Derivatives Association
ISIN
International Securities
Identification Number
UBS Group second quarter 2025 report
|
Appendix
95
Abbreviations frequently used in our financial reports (continued)
K
KRT
Key Risk Taker
L
LAS
liquidity-adjusted stress
LCR
liquidity coverage ratio
LGD
loss given default
LIBOR
London Interbank Offered
Rate
LLC
limited liability company
LoD
lines of defense
LRD
leverage ratio denominator
LTIP
Long-Term
Incentive Plan
LTV
loan-to-value
M
M&A
mergers and acquisitions
MRT
Material Risk Taker
N
NII
net interest income
NSFR
net stable funding ratio
NYSE
New York Stock Exchange
O
OCA
own credit adjustment
OCI
other comprehensive
income
OECD
Organisation for Economic
Co-operation and
Development
OTC
over-the-counter
P
PCI
purchased credit impaired
PD
probability of default
PIT
point in time
PPA
purchase price allocation
Q
QCCP
qualifying central
counterparty
R
RBC
risk-based capital
RbM
risk-based monitoring
REIT
real estate investment trust
RMBS
residential mortgage-
backed securities
RniV
risks not in VaR
RoCET1
return on CET1 capital
RoU
right-of-use
rTSR
relative total shareholder
return
RWA
risk-weighted assets
S
SA
standardized approach or
société anonyme
SA-CCR
standardized approach for
counterparty credit risk
SAR
Special Administrative
Region of the People’s
Republic of China
SDG
Sustainable Development
Goal
SEC
US Securities and Exchange
Commission
SFT
securities financing
transaction
SIBOR
Singapore Interbank
Offered Rate
SICR
significant increase in credit
risk
SIX
SIX Swiss Exchange
SME
small and medium-sized
entities
SMF
Senior Management
Function
SNB
Swiss National Bank
SOR
Singapore Swap Offer Rate
SPPI
solely payments of principal
and interest
SRB
systemically relevant bank
SVaR
stressed value-at-risk
T
TBTF
too big to fail
TCFD
Task
Force on Climate-
related Financial Disclosures
TIBOR
Tokyo
Interbank Offered
Rate
TLAC
total loss-absorbing capacity
TTC
through the cycle
U
USD
US dollar
V
VaR
value-at-risk
VAT
value added tax
This is a
general list of
the abbreviations
frequently used
in our financial
reporting. Not
all of the
listed abbreviations
may appear in this particular report.
UBS Group second quarter 2025 report
|
Appendix
96
Information sources
Reporting publications
Annual publications
UBS
Group
Annual
Report
:
Published
in
English,
this
report
provides
descriptions
of:
the
Group
strategy
and
performance; the
strategy and
performance of
the business divisions
and Group functions;
risk, treasury
and capital
management; corporate
governance;
the compensation
framework, including
information about
compensation for
the Board of Directors and the Group Executive Board members; and financial information, including the financial
statements.
“Auszug aus
dem Geschäftsbericht
”: This publication
provides a German
translation of
selected sections
of the UBS
Group Annual Report.
Compensation
Report
:
This
report
discusses
the
compensation
framework
and
provides
information
about
compensation for
the Board
of Directors
and the
Group Executive
Board members.
It is
available in
English and
German (
“Vergütungsbericht
”) and represents a component of the UBS
Group Annual Report.
Sustainability Report
: Published
in English,
the Sustainability Report
provides disclosures on
environmental, social
and governance topics related to the UBS Group.
It also provides certain disclosures related to diversity,
equity and
inclusion.
Quarterly publications
Quarterly financial report
: This report provides an
update on performance and strategy (where
applicable) for the
respective quarter. It is available in English.
The annual
and quarterly
publications
are available
in .pdf and
online formats
at
ubs.com/investors
, under
“Financial
information”.
Printed copies, in any language, of the aforementioned
annual publications are no longer provided.
Other information
Website
The “Investor
Relations” website
at
ubs.com/investors
provides the
following information
about UBS:
results-related
news
releases;
financial
information,
including
results-related
filings
with
the
US
Securities
and
Exchange
Commission
(the
SEC);
information
for
shareholders,
including
UBS
dividend
and
share
repurchase
program
information, and for bondholders, including rating agencies reports; the corporate calendar; and presentations by
management for investors and financial analysts. Information is available online in English, with some information
also available in German.
Results presentations
Quarterly
results
presentations
are
webcast
live.
Recordings
of
most
presentations
can
be
downloaded
from
ubs.com/presentations
.
Messaging service
alerts
to
news
about
UBS
can
be
subscribed
for
under
“UBS
News
Alert”
at
ubs.com/global/en/investor-
relations/contact/investor-services.html
. Messages are sent in English, German, French or Italian, with an option to
select theme preferences for such alerts.
Form 20-F and other submissions to the US
Securities and Exchange Commission
UBS files periodic
reports with
and submits
other information
to the
SEC. Principal
among these
filings is the
annual
report on Form 20-F,
filed pursuant to
the US Securities
Exchange Act of 1934.
The filing of
Form 20-F is structured
as a wraparound document. Most sections of the filing can be
satisfied by referring to the UBS Group AG Annual
Report. However, there is
a small amount
of additional information in
Form 20-F that is
not presented elsewhere
and is particularly targeted at readers in the US. Readers are encouraged to refer to this additional disclosure. Any
document that is filed with
the SEC is available on the
SEC’s website:
sec.gov
. Refer to
ubs.com/investors
for more
information.
UBS Group second quarter 2025 report
|
Appendix
97
Cautionary statement
regarding forward-looking statements
|
This report contains
statements that
constitute “forward-looking
statements”, including
but
not limited to management’s
outlook for UBS’s financial performance,
statements relating to the
anticipated effect of transactions
and strategic initiatives on
UBS’s
business and
future
development and
goals
or
intentions to
achieve climate,
sustainability and
other social
objectives. While
these
forward-looking
statements represent
UBS’s judgments,
expectations and
objectives concerning the
matters described,
a number
of risks,
uncertainties and
other important
factors could cause actual
developments and results to
differ materially from UBS’s expectations.
In particular, the global economy may suffer
significant adverse
effects from increasing political tensions between world
powers, changes to international
trade policies, including those related to
tariffs and trade barriers, and
ongoing conflicts
in the Middle
East, as well
as the continuing
Russia–Ukraine war. UBS’s
acquisition of the
Credit Suisse
Group has materially
changed its
outlook
and strategic direction and introduced
new operational challenges. The integration of the
Credit Suisse entities into the
UBS structure is expected
to continue
through 2026 and presents significant
operational and execution risk, including the
risks that UBS may be
unable to achieve the cost
reductions and business
benefits contemplated by
the transaction, that
it may incur
higher costs to
execute the integration
of Credit Suisse
and that the
acquired business may
have
greater risks
or liabilities
than expected.
Following the
failure of
Credit Suisse,
Switzerland is
considering significant
changes to
its capital,
resolution and
regulatory
regime, which, if adopted,
would significantly increase our capital
requirements or impose other
costs on UBS. These
factors create greater uncertainty about
forward-looking statements. Other factors that may affect UBS’s performance and ability to achieve its plans,
outlook and other objectives also include, but are
not limited to: (i) the degree to which UBS is successful in the execution of its strategic plans, including its cost reduction and efficiency initiatives and its ability
to manage its levels
of risk-weighted assets
(RWA) and leverage ratio
denominator (LRD), liquidity
coverage ratio and
other financial resources, including
changes
in RWA assets and liabilities arising from higher market volatility
and the size of the combined Group; (ii) the degree to which
UBS is successful in implementing
changes to its businesses to meet changing market, regulatory and other conditions; (iii) inflation
and interest rate volatility in major markets; (iv) developments
in the macroeconomic climate and in
the markets in which UBS
operates or to which it
is exposed, including movements in securities prices or
liquidity, credit
spreads, currency exchange rates,
residential and commercial real
estate markets, general economic conditions, and
changes to national trade
policies on the
financial position or
creditworthiness of UBS’s clients
and counterparties, as
well as on
client sentiment and levels
of activity; (v) changes
in the availability of
capital
and
funding, including
any
adverse
changes in
UBS’s credit
spreads
and
credit
ratings
of
UBS, as
well as
availability and
cost
of
funding to
meet
requirements for
debt eligible for
total loss-absorbing capacity (TLAC);
(vi) changes in central
bank policies or
the implementation of
financial legislation and
regulation in Switzerland, the
US, the UK, the
EU and other financial
centers that have imposed, or
resulted in, or may
do so in the
future, more stringent or
entity-specific
capital,
TLAC,
leverage
ratio,
net
stable
funding
ratio,
liquidity
and
funding
requirements,
heightened
operational
resilience
requirements,
incremental tax requirements, additional levies, limitations on
permitted activities, constraints on remuneration, constraints on transfers of capital
and liquidity
and sharing of operational costs across
the Group or other measures,
and the effect these
will or would have
on UBS’s business activities; (vii) UBS’s ability to
successfully implement resolvability
and related regulatory requirements and
the potential need to
make further changes to
the legal structure or booking
model
of UBS in response to legal and regulatory requirements
including heightened requirements and expectations due to its acquisition of the Credit Suisse Group;
(viii) UBS’s ability to
maintain and improve
its systems and
controls for complying
with sanctions in
a timely manner
and for
the detection and
prevention of
money laundering to meet evolving regulatory
requirements and expectations, in particular in
the current geopolitical turmoil; (ix) the uncertainty arising
from
domestic stresses
in certain
major economies;
(x) changes in
UBS’s competitive
position, including
whether differences
in regulatory
capital and
other requirements
among the major financial centers adversely affect UBS’s
ability to compete in certain lines of business; (xi) changes
in the standards of conduct applicable to its
businesses that
may result
from new
regulations or
new enforcement
of existing
standards, including
measures to
impose new
and enhanced
duties when
interacting with customers and in
the execution and handling of
customer transactions; (xii) the liability
to which UBS may be exposed,
or possible constraints or
sanctions
that
regulatory
authorities
might
impose
on
UBS,
due
to
litigation,
contractual
claims
and
regulatory
investigations, including
the
potential
for
disqualification from
certain businesses,
potentially large
fines or
monetary penalties,
or the
loss of
licenses or
privileges as
a
result of
regulatory or
other
governmental sanctions, as well
as the effect that litigation, regulatory
and similar matters have on
the operational risk component
of its RWA; (xiii) UBS’s ability
to retain and attract the
employees necessary to generate revenues and to manage,
support and control its businesses, which may
be affected by competitive
factors; (xiv) changes in accounting or tax standards or policies, and determinations or interpretations affecting the recognition of gain or loss, the valuation of
goodwill, the
recognition of deferred
tax assets and
other matters; (xv) UBS’s
ability to
implement new technologies
and business methods,
including digital
services, artificial intelligence and other technologies, and ability to successfully compete with both existing and new financial service providers, some of which
may not be regulated to the same extent; (xvi) limitations on the effectiveness of UBS’s internal processes for risk management, risk control, measurement and
modeling, and
of
financial models
generally; (xvii) the
occurrence of
operational failures,
such as
fraud, misconduct,
unauthorized trading,
financial crime,
cyberattacks, data leakage and systems failures, the risk of which is increased with persistently high levels of cyberattack threats;
(xviii) restrictions on the ability
of UBS Group AG, UBS AG and regulated
subsidiaries of UBS AG to make
payments or distributions, including
due to restrictions on the ability of
its subsidiaries
to make loans or distributions, directly or indirectly, or, in the case of financial difficulties, due to the exercise by FINMA or the regulators of UBS’s operations in
other countries of their broad statutory powers in relation to protective measures, restructuring and liquidation proceedings; (xix) the degree to which changes
in regulation, capital or
legal structure, financial results
or other factors may
affect UBS’s ability
to maintain its stated
capital return objective; (xx) uncertainty
over the scope of actions that may be required by UBS, governments and others for UBS to achieve goals relating to climate, environmental and social matters,
as well as the
evolving nature of
underlying science
and industry and
the increasing divergence
among regulatory regimes;
(xxi) the ability
of UBS to
access capital
markets; (xxii) the
ability of UBS
to successfully recover
from a disaster
or other business
continuity problem due
to a hurricane,
flood, earthquake,
terrorist attack,
war, conflict, pandemic, security
breach, cyberattack, power
loss, telecommunications
failure or other
natural or man-made
event; and (xxiii) the
effect that these
or other factors or
unanticipated events, including media reports and speculations, may
have on its reputation
and the additional consequences that
this may
have on its business and performance. The sequence in which the factors
above are presented is not indicative of their likelihood of occurrence or the potential
magnitude of their
consequences. UBS’s
business and financial
performance could be
affected by other
factors identified in
its past and
future filings and
reports,
including those
filed with
the US
Securities and
Exchange Commission
(the SEC).
More detailed
information about
those factors
is set
forth in
documents
furnished by UBS
and filings made
by UBS with
the SEC, including
the UBS Group
AG and UBS
AG Annual Reports
on Form 20-F
for the year
ended 31 December
- UBS is not under any obligation to (and expressly disclaims any obligation to) update or
alter its forward-looking statements, whether as a result of new
information, future events, or otherwise.
Rounding |
Numbers presented throughout this report may not add up
precisely to the totals provided in the tables and text.
Percentages and percent changes
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 |
Within tables, blank fields generally indicate non-applicability or that presentation of any content would not be meaningful, or that information is not
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 |
In this report, any
website addresses are provided
solely for information
and are not intended
to be active links.
UBS is not incorporating
the contents
of any such websites into this report.
UBS Group AG
PO Box
CH-8098 Zurich
ubs.com
This
Form
6-K
is
hereby
incorporated
by
reference
into
(1)
each
of
the
registration
statements
on
Form
F-3
(Registration Number
333-283672), and
on Form
S-8 (Registration
Numbers 333-200634;
333-200635; 333-200641;
333-200665;
333-215254;
333-215255;
333-228653;
333-230312;
333-249143
and
333-272975),
and
into
each
prospectus outstanding
under any
of the
foregoing registration
statements, (2)
any outstanding
offering circular
or
similar document issued
or authorized by
UBS AG that
incorporates by reference any
Forms 6-K of
UBS AG that
are incorporated into
its registration statements filed
with the SEC,
and (3) the
base prospectus of
Corporate Asset
Backed Corporation (“CABCO”)
dated June 23, 2004
(Registration Number 333-111572), the Form
8-K of CABCO
filed and
dated June
23, 2004
(SEC File
Number
001-13444), and
the Prospectus
Supplements relating
to the
CABCO
Series 2004-101 Trust dated May 10, 2004 and May 17, 2004 (Registration
Number 033-91744 and 033-91744-05).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this
report to be signed on their behalf by the undersigned, thereunto duly
authorized.
UBS Group AG
By:
/s/
Sergio Ermotti
___
Name:
Sergio Ermotti
Title:
Group Chief Executive Officer
By:
/s/ Todd Tuckner
_
Name:
Todd Tuckner
Title:
Group Chief Financial Officer
By:
/s/ Steffen Henrich
____________
Name:
Steffen Henrich
Title:
Group Controller
UBS AG
By:
/s/
Sergio Ermotti
_
Name:
Sergio Ermotti
Title:
President of the Executive Board
By:
/s/ Todd Tuckner
_
Name:
Todd Tuckner
Title:
Chief Financial Officer
By:
/s/ Steffen Henrich
_____________
Name:
Steffen Henrich
Title:
Controller
D
ate:
July 30, 2025