AMUB 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: March 17, 2025
UBS AG
(Registrant's Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
Aeschenvorstadt 1, 4051 Basel, Switzerland
(Address of principal executive offices)
Commission File Number: 1-15060
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form
40-F.
Form 20-F
☒
Form 40-F
☐
This
Form 6-K
consists of
the
UBS AG
audited standalone
financial statements
for the
year ended
31 December
2024, as
well as the
consent of Ernst
& Young
Ltd. with respect
thereto, which appear
immediately following this
page.
UBS AG
Standalone financial statements and regulatory
information for the year ended
31 December 2024
Table of contents
1
Report of the statutory auditor
8
UBS AG standalone financial statements (audited)
8
Income statement
9
Balance sheet
10
Off-balance sheet
11
Statement of changes in equity
12
1
Name, legal form and registered office
12
2
Accounting policies
17
3a
Net trading income by business
17
3b
Net trading income by underlying risk category
18
4
Investments in subsidiaries and other participations
18
5
Sundry ordinary income and expenses
19
6
Personnel expenses
19
7
General and administrative expenses
20
8
Changes in provisions for litigation, regulatory and
similar matters, and other provisions
20
9
Extraordinary income and expenses
21
10
Taxes
21
11
Securities financing transactions
22
12a
Collateral for loans and off-balance sheet
transactions
23
12b
Credit-impaired financial instruments
23
13
Allowances and provisions
24
13a
Allowances for credit losses
24
13b
Provisions
25
13c
Development of allowances and provisions for credit
losses
27
13d
Balance sheet and off-balance sheet positions subject
to ECL
29
13e
Financial assets subject to credit risk, by rating
category
33
14
Trading portfolio and other financial instruments
measured at fair value
34
15
Derivative instruments
36
16a
Financial investments by instrument type
36
16b
Financial investments by counterparty rating – debt
instruments
36
17a
Other assets
37
17b
Other liabilities
37
18
Pledged assets
38
19
Country risk of total assets
39
20
Structured debt instruments
39
21
Funding eligible as total loss-absorbing capacity at
the UBS AG level
40
22a
Share capital
40
22b
Significant shareholders
41
23
Post-employment benefit plans
42
24
Related parties
43
25
Fiduciary transactions
43
26a
Invested assets and net new money
43
26b
Development of invested assets
44
Statement of proposed appropriation of total profit
and dividend distribution
45
UBS AG standalone regulatory information
45
Key metrics of the fourth quarter of 2024
46
Swiss systemically relevant bank going and gone concern
requirements and information
49
Climate risk
50
Appendix
UBS AG standalone
1
UBS AG standalone
2
UBS AG standalone
3
UBS AG standalone
4
UBS AG standalone
5
UBS AG standalone
6
UBS AG standalone
7
UBS AG standalone financial statements
(audited)
8
UBS AG standalone financial statements (audited)
Income statement
USD m
CHF m
For the year ended
For the year ended
Note
31.12.24
31.12.23
31.12.24
31.12.23
Interest and discount income
30,753
18,473
27,217
16,540
Interest and dividend income from trading portfolio
4,063
2,664
3,607
2,389
Interest and dividend income from financial investments
1,544
1,216
1,364
1,089
Interest expense
(39,684)
(24,683)
(35,129)
(22,104)
Gross interest income
(3,324)
(2,330)
(2,940)
(2,086)
Credit loss (expense) / release
13
(206)
(13)
(179)
(13)
Net interest income
(3,531)
(2,343)
(3,120)
(2,099)
Fee and commission income from securities and investment business
and other fee and
commission income
4,256
2,435
3,760
2,193
Credit-related fees and commissions
330
125
292
111
Fee and commission expense
(1,041)
(705)
(920)
(632)
Net fee and commission income
3,545
1,855
3,132
1,672
Net trading income
3
9,451
7,253
8,334
6,527
Net income from disposal of financial investments
68
43
52
38
Dividend income from investments in subsidiaries and other
participations
4
6,275
5,430
5,730
4,862
Income from real estate holdings
463
405
409
363
Sundry ordinary income
5
2,814
1,596
2,470
1,426
Sundry ordinary expenses
5
(800)
(407)
(700)
(366)
Other income from ordinary activities
8,821
7,068
7,960
6,323
Total operating income
18,286
13,832
16,307
12,422
Personnel expenses
6
5,511
3,408
4,868
3,063
General and administrative expenses
7
8,097
4,118
7,144
3,684
Subtotal operating expenses
13,608
7,526
12,012
6,747
Impairment of investments in subsidiaries and other participations
4
543
3,715
500
3,343
Depreciation, amortization and impairment of property, equipment, software
and intangible
assets
1,028
765
907
687
Changes in provisions for litigation, regulatory and similar
matters, and other provisions
8
1,078
33
942
29
Total operating expenses
16,258
12,040
14,361
10,805
Operating profit
2,028
1,792
1,946
1,617
Extraordinary income
9
4,211
34
3,693
32
Extraordinary expenses
9
600
2
505
2
Tax expense / (benefit)
10
501
310
451
283
Net profit / (loss)
5,138
1,515
4,684
1,364
UBS AG standalone financial statements
(audited)
9
Balance sheet
USD m
CHF m
Note
31.12.24
31.12.23
31.12.24
31.12.23
Assets
Cash and balances at central banks
13
69,614
49,449
63,217
41,620
Due from banks
13, 24
96,243
56,082
87,399
47,204
Receivables from securities financing transactions
11, 13, 24
117,338
69,381
106,555
58,398
Due from customers
12, 13, 24
148,955
107,463
135,266
90,451
Funding provided to significant regulated subsidiaries
eligible as total loss-absorbing capacity
1
12, 13, 24
43,652
29,380
39,640
24,729
Mortgage loans
12, 13
8,438
5,116
7,662
4,306
Trading portfolio assets
14
148,686
124,682
135,022
104,943
Derivative financial instruments
15
21,941
10,056
19,925
8,464
Financial investments
16
39,850
40,874
36,188
34,403
Accrued income and prepaid expenses
13
4,194
3,000
3,808
2,525
Investments in subsidiaries and other participations
4
73,103
48,090
66,385
40,477
Property, equipment and software
5,364
5,049
4,871
4,250
Other assets
12, 13, 17
13,918
9,905
12,638
8,336
Total assets
791,297
558,527
718,576
470,106
of which: subordinated assets
34,918
20,183
31,709
16,988
of which: subject to mandatory conversion and / or debt waiver
33,344
19,250
30,279
16,202
Liabilities
Due to banks
24
87,538
62,428
79,493
52,545
Payables from securities financing transactions
11,24
42,638
23,774
38,720
20,011
Due to customers
24
227,493
147,388
206,587
124,055
Funding received from UBS Group AG measured at amortized cost
21, 24
113,898
70,620
103,431
59,440
Trading portfolio liabilities
14
29,316
27,280
26,622
22,961
Derivative financial instruments
15
14,005
16,921
12,718
14,242
Financial liabilities designated at fair value
14, 20
102,901
80,859
93,444
68,058
of which: funding received from UBS Group AG
20, 21, 24
4,998
2,711
4,539
2,282
Bonds issued
21
72,673
67,144
65,994
56,514
Accrued expenses and deferred income
8,230
5,474
7,474
4,608
Other liabilities
17
5,196
1,755
4,718
1,475
Provisions
13
3,101
2,008
2,816
1,690
Total liabilities
706,989
505,650
642,016
425,600
Equity
Share capital
22
386
386
380
380
Statutory capital reserve
65,627
36,334
60,185
35,655
of which: capital contribution reserve
2
77,661
22,190
70,626
23,936
of which: other statutory capital reserve
(12,034)
14,144
(10,441)
11,719
Voluntary earnings reserve
13,157
14,642
11,311
7,107
Net profit / (loss) for the period
5,138
1,515
4,684
1,364
Total equity
84,308
52,877
76,560
44,506
Total liabilities and equity
791,297
558,527
718,576
470,106
of which: subordinated liabilities
121,588
77,573
110,414
65,293
of which: subject to mandatory conversion and / or debt waiver
120,865
77,012
109,757
64,820
1 Represents the Swiss GAAP carrying amount of instruments
qualifying as total loss-absorbing capital at the
level of the respective subsidiaries.
2 The amount of the capital contribution reserve represents
Credit
Suisse AG’s capital
contribution reserve and nominal
share capital as of 31
December 2023 transferred
upon the merger of UBS
AG and Credit Suisse
AG, in addition
to the existing capital
contribution reserve of
USD 22.2bn of UBS AG. Refer to Note 2c for more information. The amount
of the capital contribution reserve is subject to formal review and confirmation by the Swiss Federal Tax
Administration.
UBS AG standalone financial statements
(audited)
10
Balance sheet (continued)
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Off-balance sheet items
Contingent liabilities, gross
34,989
31,360
31,773
26,395
Sub-participations
(1,141)
(990)
(1,036)
(834)
Contingent liabilities, net
33,848
30,369
30,737
25,562
of which: guarantees to third parties related to subsidiaries
8,389
6,362
7,618
5,355
Irrevocable loan commitments, gross
44,469
19,900
40,382
16,749
Sub-participations
(26)
(8)
(24)
(7)
Irrevocable loan commitments, net
44,443
19,892
40,359
16,743
Forward starting transactions
1
101,465
102,122
92,140
85,955
of which: forward starting reverse repurchase agreements
64,036
63,527
58,151
53,470
of which: repurchase agreements
37,428
38,595
33,989
32,485
Liabilities for calls on shares and other equity instruments
5
5
4
4
1 Cash to be paid in the future by either UBS AG or the counterparty.
Off-balance sheet items
Contingent liabilities include
indemnities and guarantees
issued by UBS
AG for the
benefit of subsidiaries
and creditors
of subsidiaries.
Where
the
indemnity
amount
issued
by
UBS
AG
is
not
specifically
defined,
the
indemnity
relates
to
the
solvency
or
minimum capitalization of a subsidiary, and therefore no
amount is included in the table above.
Joint and several liability – value-added tax
UBS AG is jointly
and severally liable
for the combined
value-added tax (
VAT
) liability of
UBS entities that
belong to the
VAT
group of UBS in Switzerland. This contingent liability
is not included in the table above.
Guarantees – UBS Europe SE
Following the combined
UK business transfer
and cross-border merger of
UBS Limited into
UBS Europe SE
in March 2019,
UBS AG issued a guarantee
for the benefit of
counterparties of UBS Europe
SE’s investment banking business,
covering
transactions subject to master netting agreements.
A similar guarantee that UBS AG issued in 2003 for
the benefit of each counterparty of UBS Limited also continues to be
effective. This guarantee covers transactions in accordance with and contemplated under any agreement entered into
by
UBS Limited
prior to
the merger
into UBS
Europe SE,
to the
extent that
such an
agreement has
not been
amended by
UBS Europe SE thereafter.
Under both
guarantees, UBS
AG promises
to pay
to the
beneficiary counterparties
any unpaid
liabilities covered
under
the terms of the guarantees on
demand. These guarantees are
included as contingent liabilities in the
off-balance sheet
items table above.
Indemnities – UBS Europe SE
In connection
with the
establishing of
UBS Europe
SE in
2016, UBS
AG entered
into agreement
s
with UBS
Europe
SE
under which UBS
AG would provide
UBS Europe SE
with limited indemnification
of payment obligations
that may arise
from certain litigation, regulatory
and similar matters.
As of
31 December
2024, the
amount of
such potential
payment obligations
could
not be
reliably estimated
and the
likelihood of
an outflow
is not
considered to
be probable
or the
probability of
an outflow
was assessed
to be
remote;
therefore, the table above does not include any amount
related to this limited indemnification.
In addition, in accordance with the
bylaws of the Deposit Protection Fund
of the Association of German
Banks, UBS AG
issued an indemnity in
favor of this fund
on behalf of UBS
Europe SE. The probability
of an outflow was
assessed to be
remote, and as a result, the table above does not include
any exposure arising under this indemnity.
UBS AG standalone financial statements
(audited)
11
Statement of changes in equity
USD m
Share capital
Statutory
capital
reserve
of which:
capital
contribution
reserve
of which:
other
statutory
capital
reserve
Voluntary
earnings
reserve and
profit / (loss)
carried
forward
Net profit /
(loss)
for the period
Total equity
Balance as of 1 January 2024
386
36,334
22,190
14,144
14,642
1,515
52,877
Equity recognized upon the merger of UBS AG and Credit Suisse AG
1
29,293
55,471
(26,178)
2
29,293
Net profit / (loss) appropriation
1,515
(1,515)
0
Dividend distribution
(3,000)
(3,000)
Net profit / (loss) for the period
5,138
5,138
Balance as of 31 December 2024
386
65,627
77,661
(12,034)
13,157
5,138
84,308
1 Refer to Note 2c for more information.
2 Includes a foreign currency translation effect of USD 2,049m recorded as a reduction of Other statutory capital
reserves within Statutory capital reserves.
CHF m
Share capital
Statutory
capital
reserve
of which:
capital
contribution
reserve
of which:
other
statutory
capital
reserve
Voluntary
earnings
reserve and
profit / (loss)
carried
forward
Net profit /
(loss)
for the period
Total equity
Balance as of 1 January 2024
380
35,655
23,936
11,719
7,107
1,364
44,506
Equity recognized upon the merger of UBS AG and Credit Suisse AG
1
24,531
46,690
(22,159)
2
24,531
Net profit / (loss) appropriation
1,364
(1,364)
0
Dividend distribution
(2,758)
(2,758)
Currency translation difference
5,598
5,598
Net profit / (loss) for the period
4,684
4,684
Balance as of 31 December 2024
380
60,185
70,626
(10,441)
11,311
4,684
76,560
1 Refer to Note 2c for more information.
2 Includes a foreign currency translation effect of CHF 1,851m recorded as a reduction of Other statutory
capital reserves within Statutory capital reserves.
UBS AG standalone financial statements
(audited)
12
Note 1
Name, legal form and registered office
UBS AG
is incorporated
and domiciled
in Switzerland.
Its registered
offices
are
at
Bahnhofstrasse 45,
CH-8001 Zurich
and
Aeschenvorstadt
1,
CH-4051
Basel,
Switzerland.
UBS
AG
operates
under
Art.
620
et
seq.
of
the
Swiss
Code
of
Obligations and Swiss banking law as an
Aktiengesellschaft
, a corporation limited by shares.
UBS AG is a
regulated bank in Switzerland and
is 100% owned by UBS
Group AG, the ultimate parent
of the UBS Group.
UBS AG holds
investments in
and provides
funding to
subsidiaries, including
the other
banking subsidiaries
of the
UBS
Group. In addition, UBS AG operates globally, including business activities from all five UBS business divisions and Group
functions. In the
ordinary course of business,
the main contributors to
the net profit
/ (loss) of
UBS AG are
Group Treasury,
Global Wealth Management, the
Investment Bank and Group
Services. The balance sheet
is mainly composed
of financial
assets and liabilities from
the Investment Bank,
Global Wealth Management
and Group Treasury, as
well as investments
in subsidiaries and other participations in Group Treasury and
fixed assets of Group Services.
UBS AG
employed 18,161
personnel on
a full-time
equivalent basis
as of
31 December
2024, compared
with 10,398
personnel as of 31 December 2023.
Note 2
Accounting policies
a) Significant accounting policies
UBS AG standalone
financial statements are prepared in
accordance with Swiss
GAAP (the FINMA
Accounting Ordinance,
FINMA Circular 2020/1 “Accounting – banks” and
the Banking Ordinance) and represent
“reliable assessment statutory
single-entity financial
statements”. The
accounting policies
are principally
the same
as those
outlined in
Note 1
to the
consolidated financial
statements of
UBS AG
included in
the UBS AG
Annual Report
2024.
Major differences
between
the
Swiss
GAAP
requirements
and
IFRS
Accounting
Standards
are
described
in
Note
33
to
the
consolidated
financial
statements of UBS AG. The significant accounting policies applied for the standalone financial
statements of UBS AG are
discussed below.
›
Refer to the “Consolidated financial statements”
section of the UBS AG Annual Report
2024, available under “Annual reporting”
at
ubs.com/investors
, for more information
Compensation policy
The compensation
structure and
processes of
UBS AG
conform to
the compensation
principles and
framework of
UBS
Group AG.
›
Refer to the UBS Group AG Compensation Report 2024,
available under “Annual reporting” at
ubs.com/investors
, for more
information
Deferred compensation
Expenses for
deferred
compensation awards
granted by
UBS Group
AG to
employees
of UBS
AG in
the form
of UBS
shares, notional investment funds and notional additional tier 1 (AT1) capital
instruments are charged by UBS Group AG
to UBS AG.
›
Refer to “Note 27 Employee benefits: variable
compensation”
in the “Consolidated financial statements” section
of the UBS AG
Annual Report 2024, available under “Annual
reporting” at
ubs.com/investors
, for more information
Foreign currency translation
Non-US
dollar-denominated
transactions
are
translated
into
US
dollars
at
the
spot
exchange
rate
on
the
date
of
the
transaction. At the balance sheet
date, all non-US dollar-denominated
monetary assets and liabilities,
as well as non-US
dollar-denominated equity instruments recorded in
Trading portfolio assets
and
Financial investments
, are translated into
US
dollars
using
the
closing
exchange
rate.
Non-monetary
items
measured
at
historic
cost
are
translated
at
the
spot
exchange rate on the date of the transaction. Assets and liabilities of branches
with functional currencies other than the
US dollar
are
translated into
US dollars
at the
closing exchange
rate. Income
and expense
items of
such branches
are
translated
at
weighted-average
exchange
rates
for
the
period.
All
currency
translation
effects
are
recognized
in
the
income statement.
›
Refer to Note 2c for information about
the retroactive translation of Credit Suisse AG’s financial information in 2024 following
the merger of UBS AG and Credit Suisse AG
The
main
currency
translation
rates
used
by
UBS
AG
are
provided
in
Note
32
to
the
UBS
AG
consolidated
financial
statements in the UBS AG Annual Report 2024.
›
Refer to the “Consolidated financial statements”
section of the UBS AG Annual Report
2024, available under “Annual reporting”
at
ubs.com/investors
, for more information
UBS AG standalone financial statements
(audited)
13
Note 2
Accounting policies (continued)
Presentation currencies
The primary
presentation currency
of the
financial statements
of UBS
AG is
the US
dollar. Amounts
in Swiss
francs are
additionally presented for each component
of the financial statements. UBS
AG applies the modified
closing rate method
for converting
the US
dollar presentation
currency amounts
into Swiss
francs: assets
and liabilities are
converted at
the
closing rate, equity positions at historic rates and
income and expense items at the weighted-average rate for the
period.
The resulting currency translation effects are recognized
separately in
Voluntary earnings reserve
.
On 31
May
2024, UBS
AG
completed
the
absorption
merger
of Credit
Suisse AG
and retroactively
recognized
Credit
Suisse AG’s
balance sheet
as of
1 January
2024, and
its accounting
records for
the period
from 1
January to
31 May
2024,
expressed
in
Credit
Suisse
AG’s
presentation
currency,
Swiss
francs.
Thereby,
the
merger
balance
sheet
was
translated to UBS AG’s primary
presentation currency, the US dollar, at
the exchange rate of the opening balance
sheet,
and the transactions recorded in
profit and loss were translated at
the monthly average exchange rate. The
balance sheet
as of
31 May 2024
was translated
at the
31 May
2024 closing
rate. The
resulting currency
effects were
recognized in
Statutory capital reserve
.
›
Refer to Note 2c for more information
Structured debt instruments
Structured
debt
instruments
consist
of
debt
instruments
issued
and
transacted
over
the
counter
and
include
a
host
contract and
one or more
embedded derivatives
that do
not relate
to UBS AG’s
own equity.
By applying
the fair
value
option, the vast majority
of structured debt instruments are measured at fair
value as a whole
and recognized in
Financial
liabilities designated at
fair value.
The fair
value option for
structured debt instruments
can be
applied only if
the following
criteria are cumulatively met:
–
the structured debt instrument
is measured on a
fair value basis and
is subject to risk
management that is equivalent
to risk management for trading activities;
–
the
application
of
the
fair
value
option
eliminates
or
significantly
reduces
an
accounting
mismatch
that
would
otherwise arise; and
–
changes in fair value attributable to changes in unrealized
own credit are not recognized.
Fair value changes related to
Financial liabilities designated at fair value,
excluding changes in unrealized own credit, are
recognized in
Net trading income.
Interest expense on
Financial liabilities designated at fair value
is recognized in
Interest
expense.
Where the designation
criteria for the
fair value option
are not met,
the embedded derivatives are
assessed for bifurcation
for
measurement
purposes.
Bifurcated
embedded
derivatives
are
measured
at
fair
value
through
profit
or
loss
and
presented in the same balance sheet line as the host contract.
›
Refer to Note 20 for more information
Group-internal funding
UBS AG obtains funding from
UBS Group AG in the
form of loans that are subject
to mandatory conversion and /
or debt
waiver, as explained below, and generally either qualify as loss-absorbing tier 1 capital or as
gone concern loss-absorbing
capacity,
i.e. total
funding eligible
as total
loss-absorbing capacity
(TLAC), at
the UBS
AG consolidated
and standalone
levels. A portion
of Group-internal
funding obtained is
further on lent
by UBS AG
to certain
subsidiaries in the
form of
loans.
›
Refer to Note 21 for information about funding
eligible as total loss-absorbing capacity at
the UBS AG level
UBS AG’s
obligations arising
from Group-internal
funding it
has received
are presented
as
Funding received
from UBS
Group AG measured
at amortized cost
and
Funding received from
UBS Group AG
within
Financial liabilities designated
at fair value.
UBS AG’s claims arising from the Group-internal funding it has provided are presented as
Funding provided
to significant regulated subsidiaries eligible
as total loss-absorbing capacity
and are measured at amortized
cost less any
allowance for expected credit losses.
Subordinated assets and liabilities
Subordinated assets
are composed of claims
that, based on an
irrevocable written declaration, in the
event of liquidation,
bankruptcy or
composition concerning the
debtor rank after
the claims
of all
other creditors and
may not
be offset against
amounts
payable
to
the
debtor
nor
be
secured
by
its
assets.
Subordinated
liabilities
are
composed
of
corresponding
obligations.
Subordinated
assets
and
liabilities
that
contain
a
point-of-non-viability
clause
in
accordance
with
Swiss
capital
requirements pursuant to Art. 29
and 30 of the
Capital Adequacy Ordinance are disclosed as
being
Subject to mandatory
conversion and / or debt
waiver
and provide for the claim
or the obligation to be
written off or converted
into equity in
the event that the issuing bank reaches a point of non-viability.
UBS AG standalone financial statements
(audited)
14
Note 2
Accounting policies (continued)
Investments in subsidiaries and other participations
Investments in subsidiaries and other participations
are equity interests that are held to
carry on the business of UBS AG
or for other strategic purposes. They include all subsidiaries directly held by UBS
AG through which UBS AG conducts its
business on a
global basis. The
investments are
measured individually
and carried
at cost
less impairment.
The carrying
amount is
tested for impairment
when indicators of
a potential decrease
in value exist,
which include significant
operating
losses incurred
or a
severe depreciation
of the
currency in
which the
investment is
denominated. If
an investment
in a
subsidiary is impaired, its value is generally written down to the net asset value or a value above the net asset
value if, in
the opinion of management, forecasts
of future profitability provide sufficient
evidence that a carrying amount
above net
assets
is
supported.
Subsequent
recoveries
in
value
are
recognized
up
to
the
original
cost
value
based
on
either
an
increased net asset
value or a
value above the
net asset value
if aforementioned conditions
are met. Management
may
exercise its
discretion as
to what extent,
and in
which period,
a recovery in
value is
recognized. Impairments of
investments
are
presented
as
Impairment
of
investments
in
subsidiaries
and
other
participations
and
reversals
of
impairments
are
presented as
Extraordinary income
in the income statement. Impairments
and partial or full reversals of
impairments for
a subsidiary during the same annual period are determined
on a net basis.
›
Refer to Note 4 for more information
Hedge accounting for Investments in subsidiaries and
other participations
UBS
AG
applies
hedge
accounting
for
certain
investments
in
subsidiaries
and
other
participations
denominated
in
currencies
other
than
the
US
dollar,
which
are
designated
as
hedged
items.
For
this
purpose,
foreign
exchange
(FX)
derivatives, mainly FX forwards and FX swaps, are
used and designated as hedging instruments.
The hedged risk
is determined as
the change in
the carrying amount
of the hedged
item arising solely
from changes in
spot FX
rates.
Consequently,
UBS AG
only
designates
the
spot element
of the
FX derivatives
as hedging
instruments.
Changes in the fair
value of the
hedging instruments attributable
to changes in
forward points are
not part of a
hedge
accounting designation. These amounts, therefore, do not form part of the effectiveness assessment and are recognized
in
Net trading income
.
The effective portion of gains and losses of these FX derivatives is deferred on the balance sheet as
Other assets
or
Other
liabilities
to the extent no change
is recognized in the carrying amount
of the hedged item arising
from changes in spot
FX rates. Otherwise,
the effective portion of
gains and losses of
these FX derivatives
is matched with the
corresponding
valuation
adjustments
of
the
hedged
item
recorded
in
the
income
statement
and
recorded
either
as
a
reduction
of
Impairment of investments in subsidiaries and other participations
or as
Extraordinary income.
Revenue and expense transfers with other Group entities
UBS
AG
pays
to
and
receives
amounts
from
other
Group
entities
in
connection
with
revenue-sharing
arrangements.
Revenues transferred to and received from Group entities
are settled in cash as entity revenue transfers paid or received.
When
the
nature
of
the
underlying
transaction
between
UBS
AG
and
the
Group
entity
contains
a
single,
clearly
identifiable service component, related income and expenses are presented in the respective income statement line
item,
e.g.
Fee and commission income from securities
and investment business and other fee
and commission income
,
Fee and
commission
expense
or
Net
trading
income
.
To
the
extent
the
nature
of
the
underlying
transaction
contains
various
service components and
is not
clearly attributable to
a particular
income statement line
item, related income
and expenses
are presented in
Sundry ordinary income
and
Sundry ordinary expenses
.
UBS AG
receives services from
UBS Business
Solutions AG, mainly
relating to
the Group
Operations and
Technology Office,
as well as certain other services from other Group entities.
UBS AG provides services to Group entities, mainly relating
to real estate and selected other Group Services functions.
Services received
from and provided
to Group entities
are settled in
cash as entity
cost transfers paid
or received. Entity
cost
transfers
paid
are
presented
within
General
and
administrative
expenses
and
entity
cost
transfers
received
are
presented within
Sundry ordinary income
or
Income from real estate holdings
.
›
Refer to Notes 5 and 7 for more information
UBS AG standalone financial statements
(audited)
15
Note 2
Accounting policies (continued)
Post-employment benefit plans
Swiss GAAP
permit the
use of
IFRS Accounting
Standards or
Swiss accounting
standards for
post-employment
benefit
plans, with the election made on a plan-by-plan basis.
UBS AG
has elected
to apply
Swiss accounting
standards for
the Swiss
pension plans
in its
standalone financial
statements.
The requirements of
the Swiss accounting
standards are
better aligned with
the specific nature
of Swiss pension
plans,
which are
hybrid
in that
they
combine elements
of defined
contribution
and defined
benefit
plans but
are treated
as
defined
benefit
plans
under
IFRS
Accounting
Standards.
Swiss
accounting
standards
require
that
the
employer
contributions
to
the
pension
fund
are
recognized
as
Personnel
expenses
in
the
income
statement.
The
employer
contributions
to the
Swiss
pension
fund
are
determined
as a
percentage
of contributory
compensation.
Furthermore,
Swiss accounting standards require an assessment as to whether, based on
the financial statements of the pension funds
prepared in accordance with Swiss accounting standards (Swiss GAAP FER
26), an economic benefit to, or obligation of,
UBS AG arises
from the pension
funds that is
recognized in the
balance sheet when
conditions are met.
Conditions for
recording a pension
asset or liability
would be met
if, for
example, an employer
contribution reserve is
available or UBS AG
is required to contribute to the reduction of a pension
deficit (on the pension plan’s Swiss GAAP FER 26 basis).
Key differences
between Swiss accounting
standards and
IFRS Accounting
Standards include
the treatment
of dynamic
elements, such as
future salary increases and
future interest credits on
retirement savings, which are
not considered under
the static
method used
in accordance
with Swiss
accounting standards.
Also, the
discount rate
used to
determine the
defined benefit obligation in accordance
with IFRS Accounting Standards is
based on the yield of high-quality
corporate
bonds of the market in the respective pension plan country. The discount rate used in accordance with Swiss accounting
standards, i.e. the technical interest rate, is determined by
the Pension Foundation Boards.
›
Refer to Note 23 for more information
UBS
AG
has
elected
to
apply
IFRS
Accounting
Standards
(IAS 19)
for
its
non-Swiss
defined
benefit
plans.
However,
remeasurements
of the
defined
benefit obligation
and the
plan assets
are recognized
in the
income statement
rather
than directly in equity.
›
Refer to the “Consolidated financial statements”
section of the UBS AG Annual Report
2024, available under “Annual reporting”
at
ubs.com/investors
, for more information
Deferred taxes
Deferred tax assets are not recognized in UBS AG’s standalone financial statements. However, deferred tax liabilities may
be
recognized
for
taxable
temporary
differences.
Changes
in
the
deferred
tax
liability
balance
are
recognized
in
the
income statement.
Allowances and provisions for expected credit losses
UBS AG is required
to apply expected
credit loss (ECL)
approaches for credit-impaired
and non-credit-impaired
financial
instruments in its standalone financial statements.
For
the
substantial
majority
of
non-credit-impaired
exposures
within
the
scope
of
the
Swiss
GAAP
ECL
requirements,
UBS AG
has
chosen
to
apply
the
IFRS
Accounting
Standards
ECL
approach,
which
is
also
applied
in
its
consolidated
financial
statements.
These
exposures
include
all
financial
assets
that
are
measured
at
amortized
cost
under
both
frameworks, Swiss
GAAP and
IFRS Accounting
Standards,
fee and
lease receivables,
claims arising
from Group-internal
funding
presented
as
Funding
provided
to
significant
regulated
subsidiaries
eligible
as
total
loss-absorbing
capacity
,
guarantees, irrevocable loan commitments, revolving
revocable credit lines, and forward starting
reverse repurchase and
securities
borrowing
agreements.
Further
information
about
the
ECL
approach
under
IFRS
Accounting
Standards
is
provided in Note 1 to the consolidated financial statements
of UBS AG.
›
Refer to the “Consolidated financial statements”
section of the UBS AG Annual Report
2024, available under “Annual reporting”
at
ubs.com/investors
, for more information
For the
small
residual
population
of exposures
within
the
scope
of the
Swiss
GAAP
ECL requirements,
which
are
not
subject to ECL under IFRS Accounting Standards due to
classification differences, alternative approaches are applied.
–
For exposures for which Pillar 1 internal
ratings-based models are applied for measurement of credit risk risk-weighted
assets (RWA), ECL for such
exposures is calculated as
the regulatory expected loss (EL),
with an add-on to
scale up to
the residual maturity of
exposures maturing beyond the
next 12 months. This
approach is mainly applied
for brokerage
receivables presented within
Due from customers,
which
generally mature within 12 months. For detailed information
about regulatory EL, refer to the “Risk management and
control”
section of the UBS AG Annual Report 2024.
–
For
exposures
for
which
the
standardized
approach
is
applied
for
the
measurement
of
credit
risk
RWA,
ECL
is
determined using
a portfolio
approach that
derives a
conservative probability
of default
(PD) and a
conservative loss
given
default
(LGD)
for
the
entire
portfolio.
This
approach
is
mainly
applied
for
a
small
number
of
loans
to
large
corporate clients presented within
Due from customers.
UBS AG standalone financial statements
(audited)
16
Note 2
Accounting policies (continued)
UBS
applies
a
single
definition
of
default
for
credit
risk
management
purposes,
regulatory
reporting
and
ECL,
with
a
counterparty classified as defaulted based on quantitative
and qualitative criteria.
›
Refer to the “Risk management and control” section of the
UBS AG Annual Report 2024, available
under “Annual reporting” at
ubs.com/investors
, for more information
An allowance
for credit
losses is
reported as
a decrease
in the
carrying amount
of a
financial asset.
For an
off-balance
sheet
item,
such
as a
commitment,
a
provision
for
credit
losses
is reported
in
Provisions
.
Changes
to
allowances
and
provisions for credit losses are recognized in
Credit loss (expense) / release
.
›
Refer to Note 13 for more information
Dispensations in the standalone financial statements
As UBS AG prepares consolidated financial statements in accordance with IFRS Accounting Standards, UBS AG is
exempt
from various disclosures
in the standalone
financial statements.
The dispensations
include the management
report, the
statement of cash flows and various note disclosures, as well as
the publication of full interim financial statements.
b) Changes in accounting policies
In 2024, the following accounting policies were adopted in context
of the absorption merger of Credit Suisse AG.
In an
absorption merger
executed retroactively
for accounting
purposes in
accordance with
Swiss law,
currency effects
arising upon
the initial
recognition of
the merger
balance
sheet and
the activity
of the
absorbed entity
until the
legal
effective date of the
merger are recorded directly
in the
Statutory capital reserve
in equity to
the extent such effects
relate
to
the
translation
of
financial
information
presented
by
the
absorbed
entity
in
a
currency
other
than
UBS
AG’s
presentation currency,
the US dollar.
The income
statement effect
resulting from
the initial
application of
UBS AG’s
accounting policies
and practices
to the
merger balance sheet is recognized as a merger adjustment
in
Extraordinary expenses
.
›
Refer to Note 9 for more information
c) Change in organization
In
2024,
UBS
continued
the
integration
of
Credit
Suisse,
with
a
focus
on
client
account
migrations,
infrastructure
decommissioning and legal entity integration.
›
Refer to the “Our business model and environment”
section of the UBS AG Annual Report 2024,
available under “Annual
reporting” at
ubs.com/investors
, for more information
Merger of UBS AG and Credit Suisse AG
In December 2023, the Board of Directors of UBS Group AG approved the merger of UBS AG and Credit Suisse AG, and
both
entities
entered
into
a
definitive
merger
agreement,
as
amended
on
30
April
- On
31
May
2024,
UBS
AG
formally completed the merger by absorption of Credit Suisse AG. In
the standalone financial statements of UBS AG, the
acquisition has been accounted for retroactively as of 1 January 2024, applying the previous book values
of Credit Suisse
AG.
The
merger
balance
sheet
with
assets
of
USD
306,447m
(CHF
257,935m)
and
liabilities
of
USD 275,105m
(CHF 231,554m)
was
recognized,
together
with
a
corresponding
increase
of
Statutory
capital
reserves
in
equity
of
USD 31,343m (CHF 26,381m), of which
USD 55,471m (CHF 46,690m) was
attributed to
Capital contribution reserve
and
negative USD 24,129m (negative CHF 20,309m) to
Other statutory capital reserve.
UBS AG’s
accounting
policies
and methodologies
were
applied retroactively
from
1 January
- This
resulted
in an
adjustment, which was recorded in
Extraordinary expenses
of USD 598m (CHF 504m).
›
Refer to Note 9 for more information
Furthermore, the retroactive translation of Credit
Suisse AG’s financial information, previously
expressed in Swiss francs,
(i.e. the merger balance
sheet, the accounting policy
application and the activity
from 1 January 2024
to 31 May 2024)
to
UBS
AG’s
presentation
currency,
the
US
dollar,
resulted
in
a
foreign
currency
translation
effect
of
USD 2,049m
(CHF 1,851m), which was recorded as a reduction of
Other statutory capital reserves
within
Statutory capital reserves
.
Profit and loss
information for
2024 includes the
full-year profit and
loss of the
merged Credit Suisse
AG. Comparative
full-year profit and loss information
for 2023 and the
balance sheet as of 31
December 2023 include pre-merger UBS AG
standalone data only.
Other integration activities
In
June
2024,
following
the
merger
with
Credit
Suisse
AG,
UBS
AG
contributed
its
subsidiary
Credit
Suisse
Holdings
(USA), Inc. to the entity holding its Americas business, UBS
Americas Holding LLC.
In July 2024, UBS Switzerland AG completed its merger
by absorption of Credit Suisse (Schweiz) AG.
›
Refer to Note 4 for more information
UBS AG standalone financial statements
(audited)
17
Note 2
Accounting policies (continued)
d) Events after the reporting period
There were no significant events after the reporting period.
e) Risk management
UBS
AG
is
fully
integrated
into
the
Group-wide
risk
management
process
described
in
the
audited
part
of
the
“Risk
management and control” section of the UBS AG Annual Report
2024.
Further information
about the
use of
derivative instruments
and hedge
accounting is
provided on
the following
pages
and in Notes 1, 11 and 25 to the consolidated financial statements
of UBS AG.
›
Refer to the “Consolidated financial statements”
section of the UBS AG Annual Report
2024, available under “Annual reporting”
at
ubs.com/investors
, for more information
Note 3a
Net trading income by business
USD m
CHF m
For the year ended
For the year ended
31.12.24
31.12.23
31.12.24
31.12.23
Investment Bank
1
7,450
6,575
6,586
5,922
Other business divisions and Group Items
2,001
678
1,748
605
Total net trading income
9,451
7,253
8,334
6,527
1 Almost entirely Global Markets.
Note 3b
Net trading income by underlying risk category
USD m
CHF m
For the year ended
For the year ended
31.12.24
31.12.23
31.12.24
31.12.23
Equity instruments (including funds)
6,198
5,479
5,485
4,930
Foreign exchange instruments
1,588
1,128
1,397
1,017
Interest rate and credit instruments (including funds)
1,780
524
1,551
471
Other
(114)
122
(99)
110
Total net trading income
9,451
7,253
8,334
6,527
of which: net gains / (losses) from financial liabilities designated
at fair value
1
(981)
(1,839)
(829)
(1,471)
1 Excludes fair value changes of hedges related
to financial liabilities designated at fair value and foreign
currency effects arising from translating foreign currency transactions
into the respective functional currency,
both of which are reported within Net trading income.
UBS AG standalone financial statements
(audited)
18
Note 4
Investments in subsidiaries and other participations
The table
below provides
the carrying
amount, the
equity interest
and the
registered
office information
regarding
the
investments in subsidiaries and other participations.
Registered office
Equity interest
accumulated in %
Carrying amount in USD m
Carrying amount in CHF m
31.12.24
31.12.23
31.12.24
31.12.23
UBS Americas Holding LLC
Wilmington, Delaware, USA
100
31,834
31,484
28,908
26,500
UBS Switzerland AG
Zurich, Switzerland
100
20,996
7,985
19,066
6,721
Credit Suisse International
London, United Kingdom
98
5,040
4,577
UBS Europe SE
Frankfurt, Germany
100
4,175
3,914
3,791
3,294
UBS Asset Management AG
Zurich, Switzerland
100
2,260
1,732
2,053
1,457
Other
8,799
2,976
7,990
2,505
Total investments in subsidiaries and other participations
73,103
48,090
66,385
40,477
Reorganizations
As of
1 January
2024, the
merger of
UBS AG
and Credit
Suisse AG
resulted in
an increase
in the
carrying amount
of
Investments in subsidiaries and other participations
of USD 33.9bn (CHF 28.5bn), mainly driven
by Credit Suisse Holdings
(USA) Inc.
(USD 6.4bn
(CHF 5.4bn)),
Credit Suisse
(Schweiz) AG
(USD 13.6bn
(CHF 11.5bn))
and Credit
Suisse International
(USD 8.2bn (CHF 6.9bn)).
In June 2024, as part of
the transition to a single
US intermediate holding company,
UBS AG contributed its investment
in
Credit
Suisse
Holdings
(USA)
Inc.
to
UBS
Americas
Holding
LLC,
increasing
the
carrying
amount
of
UBS
Americas
Holding LLC by USD 6.3bn (CHF 5.7bn).
As of
1 July
2024, the
merger
of UBS
Switzerland
AG and
Credit Suisse
(Schweiz)
AG was
completed,
increasing the
carrying amount of UBS Switzerland AG by USD 13.0bn (CHF
11.7bn).
Impairments and reversal of impairments
In
2024,
UBS
AG
recognized
Impairments
of
investments
in
subsidiaries
and
other
participations
of
USD 543m
(CHF 500m).
In
2023,
UBS
AG
recognized
Impairments
of
investments
in
subsidiaries
and
other
participations
of
USD 3,715m
(CHF 3,343m),
mainly
due
to
an
impairment
related
to
UBS
Americas
Holding
LLC
as
the
recoverable
amount of this participation declined, mostly due to lower forecasted
profits and dividend payouts.
In
2024,
UBS
AG
recognized
Reversal
of
impairments
of
investments
in
subsidiaries
and
other
participations
of
USD 3,996m
(CHF 3,497m),
mainly
due
to
a
reversal
of
an
impairment
related
to
Credit
Suisse
International
as
the
recoverable
amount
of
this
participation
increased,
mainly
due
to
progressed
integration
including
improved
actual
financials and forecasted financial performance.
Dividends and capital repayments
Dividend income
from investments
in subsidiaries
and other
participations
of USD 6,275m
(CHF 5,730m)
in 2024
and
USD 5,430m
(CHF 4,862m)
in 2023
was
mainly
attributable
to UBS
Switzerland AG,
UBS Americas
Holding LLC,
UBS
Asset Management AG
and UBS Europe
SE. In addition,
in 2024 Credit
Suisse Securities (Europe)
Limited contributed
a
substantial dividend.
In December 2024,
UBS Americas Holding
LLC repaid capital
of USD 6.0bn
(CHF 5.4bn) and
Credit Suisse International
repaid capital of USD 7.0bn (CHF 6.3bn) to UBS AG.
Note 5
Sundry ordinary income and expenses
USD m
CHF m
For the year ended
For the year ended
31.12.24
31.12.23
31.12.24
31.12.23
Income from services provided to UBS Group AG or its subsidiaries
1
2,779
1,511
2,436
1,354
Net unrealized gains on financial investments
2
0
70
0
59
Other
36
14
34
14
Total sundry ordinary income
2,814
1,596
2,470
1,426
Expenses from revenue transfers to UBS Group AG or its subsidiaries
(641)
(394)
(566)
(355)
Net unrealized losses on financial investments
2
(116)
0
(98)
0
Other
(42)
(13)
(36)
(11)
Total sundry ordinary expenses
(800)
(407)
(700)
(366)
1 Services provided by UBS AG primarily related to Group Items.
2
Refer to Note 16a for more information.
UBS AG standalone financial statements
(audited)
19
Note 6
Personnel expenses
USD m
CHF m
For the year ended
For the year ended
31.12.24
31.12.23
31.12.24
31.12.23
Salaries
2,929
1,710
2,588
1,536
Variable compensation – performance awards
1,450
1,115
1,280
1,003
Variable compensation – other
308
83
274
74
Contractors
55
27
49
25
Social security
340
242
300
217
Post-employment benefit plans
277
124
243
115
of which: value adjustments for economic benefits or obligations
from non-Swiss pension funds
1
9
31
6
31
Other personnel expenses
152
106
134
95
Total personnel expenses
5,511
3,408
4,868
3,063
1 Reflects the remeasurement of the defined benefit obligation and return on plan assets excluding amounts included in interest income for the non-Swiss defined
benefit plans, for which IAS 19 is applied.
Note 7
General and administrative expenses
USD m
CHF m
For the year ended
For the year ended
31.12.24
31.12.23
31.12.24
31.12.23
Real estate
630
451
556
404
Outsourcing costs
275
75
243
67
Technology costs
242
98
214
88
Market data services
229
129
202
115
Travel and entertainment
101
65
89
58
Marketing and communication
88
35
78
31
Fees to audit firms
48
12
42
11
of which: financial and regulatory audits
43
9
38
8
of which: audit-related services
4
2
3
2
of which: tax and other services
2
0
1
0
Other professional fees
487
173
431
153
Other
5,997
3,081
5,288
2,757
of which: shared services costs charged by UBS Group AG or its subsidiaries
5,572
2,806
4,911
2,514
Total general and administrative expenses
8,097
4,118
7,144
3,684
UBS AG standalone financial statements
(audited)
20
Note 8
Changes in provisions for litigation, regulatory and
similar matters, and other provisions
2024 included litigation expenses of USD 1,005m
(CHF 905m), largely in the Non-core and Legacy
business division.
›
Refer to “Note 18 Provisions and contingent liabilities”
in the “Consolidated financial statements”
section of the UBS AG Annual
Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more information
Note 9
Extraordinary income and expenses
USD m
CHF m
For the year ended
For the year ended
31.12.24
31.12.23
31.12.24
31.12.23
Reversal of impairments of and provisions for subsidiaries
and other participations
1
3,996
9
3,497
10
Gains from disposals of subsidiaries and other participations
198
9
181
8
Net gains from disposals of properties
16
10
14
9
Other extraordinary income
1
5
1
5
Total extraordinary income
4,211
34
3,693
32
Accounting policy and methodology alignment effect
upon merger of UBS AG and Credit Suisse AG
2
598
0
504
0
Other extraordinary expense
3
2
1
2
Total extraordinary expenses
600
2
505
2
1 Refer to Note 4 for more information.
2 Refer to Note 2c for more information.
Gains from disposals
of subsidiaries and
other participations
in 2024 included
a gain of
USD 169m (CHF
155m) on the
sale of Credit Suisse Services India Ltd, a former subsidiary
of Credit Suisse AG, to UBS Business Solutions AG.
Accounting policy and methodology alignment effect upon merger
of UBS AG and Credit Suisse AG
As a result
of the merger
of UBS AG
and Credit Suisse
AG, UBS AG’s
accounting policies and methodologies
were applied
to the merger balance sheet of Credit Suisse AG as of 1 January
2024.
This
resulted
in
a
merger
adjustment
of
USD
598m
(CHF
504m),
which
was
recorded
in
Extraordinary
expenses
.
The
adjustment
included
the
alignment
of
methodologies
related
to
credit
allowances
and
provisions
(USD
–559m
(CHF –
471m)), which
Credit Suisse
AG generally
accounted for
by reference
to US
GAAP compared
with UBS
AG’s general
application
of
IFRS
Accounting
Standards,
own
credit
adjustment
curves
(USD
–537m
(CHF
–452m)),
and
smaller
adjustments related to the classification
of certain debt instruments
at fair value compared
to a legacy Credit Suisse
AG
amortized cost treatment, and
full expense recognition of
certain loan origination
costs and fees
at inception, which were
previously deferred
and recognized
over time
by Credit
Suisse AG.
These effects
were partly
reduced by
the effects
of
electing the
fair value
option for
certain structured
TLAC instruments
under UBS
AG’s accounting
policies (USD
513m
(CHF
432m)),
and
smaller
adjustments
related
to
the
measurement
of
real
estate
and the
recognition
of
net
defined
benefit assets.
UBS AG standalone financial statements
(audited)
21
Note 10
Taxes
USD m
CHF m
For the year ended
For the year ended
31.12.24
31.12.23
31.12.24
31.12.23
Income tax expense / (benefit)
461
279
416
255
of which: current
492
277
443
254
of which: deferred
(31)
2
(28)
2
Capital tax
40
31
35
28
Total tax expense / (benefit)
501
310
451
283
An
income
tax
expense
of
USD
461m
(CHF
416m)
was
recognized
for
UBS
AG
in
2024,
compared
with
USD
279m
(CHF 255m) for 2023. The income
tax expense for 2024 was
reduced by a benefit of
USD 36m (CHF 32m) in respect
of
the utilization of tax losses carried forward, primarily in Jersey
and Singapore.
The income
tax expense
for 2023
was reduced
by a
benefit of
USD 15m
(CHF 13m)
in respect
of the
utilization of
tax
losses carried forward, primarily in Jersey.
The income tax expenses for
2024 and 2023 related to
UBS AG’s taxable profits that
are not offset by tax losses
carried
forward.
For 2024, the average tax
rate, defined as income tax
expense divided by the sum
of operating profit and extraordinary
income
minus
extraordinary
expenses
and
capital
tax,
was
8.2%
(2023:
15.5%).
This
reflected
the
aforementioned
benefit in respect of
the utilization of tax
losses carried forward and
also that no tax expense
was recognized in respect
of dividends that UBS AG received from its subsidiaries.
Note 11
Securities financing transactions
USD bn
CHF bn
31.12.24
31.12.23
31.12.24
31.12.23
On-balance sheet
Receivables from securities financing transactions, gross
200.9
157.0
182.4
132.1
Netting of securities financing transactions
(83.5)
(87.6)
(75.8)
(73.7)
Receivables from securities financing transactions, net
117.3
69.4
106.6
58.4
Payables from securities financing transactions, gross
126.2
111.4
114.6
93.7
Netting of securities financing transactions
(83.5)
(87.6)
(75.8)
(73.7)
Payables from securities financing transactions, net
42.6
23.8
38.7
20.0
Assets pledged as collateral in connection with securities financing
transactions
74.8
75.7
67.9
63.7
of which: trading portfolio assets
61.8
68.2
56.1
57.4
of which: assets that may be sold or repledged by counterparties
44.5
49.9
40.4
42.0
of which: financial investments
13.0
7.5
11.8
6.3
of which: assets that may be sold or repledged by counterparties
12.8
7.4
11.7
6.2
Off-balance sheet
Fair value of assets received as collateral in connection with securities financing
transactions
425.2
372.6
386.1
313.6
of which: repledged
266.1
246.5
241.6
207.5
of which: sold in connection with short sale transactions
29.3
27.3
26.6
23.0
UBS AG standalone financial statements
(audited)
22
Note 12a
Collateral for loans and off-balance sheet
transactions
31.12.24
31.12.23
Secured
Unsecured
Total
Secured
Unsecured
Total
Secured by collateral
Secured by
other credit
enhancements
2
Secured by collateral
Secured by
other credit
enhancements
2
USD m
Real estate
Other
collateral
1
Real estate
Other
collateral
1
On-balance sheet
Due from customers, gross
3
41
102,479
4,515
43,630
4
150,665
65,884
48
41,733
4
107,665
Mortgage loans, gross
8,446
8,446
5,116
5,116
of which: residential mortgages
5,242
5,242
2,854
2,854
of which: other mortgages
5
3,204
3,204
2,263
2,263
Funding provided to significant
regulated subsidiaries eligible as
total loss-absorbing capacity
43,675
43,675
29,403
29,403
Total on-balance sheet, gross
8,486
102,479
4,515
87,305
202,786
5,116
65,884
48
71,136
142,184
Allowances
(7)
(109)
(40)
(1,584)
(1,740)
0
(63)
0
(161)
(225)
Total on-balance sheet, net
8,479
102,370
4,475
85,721
201,045
5,116
65,821
48
70,974
141,959
Off-balance sheet
Contingent liabilities, gross
31
20,590
1,276
13,092
34,989
21,245
990
9,125
31,360
Irrevocable commitments, gross
737
23,883
2,728
17,120
44,469
550
9,365
154
9,831
19,900
Forward starting reverse repurchase
and securities borrowing
transactions
64,036
64,036
63,527
63,527
Liabilities for calls on shares and
other equities
5
5
5
5
Total off-balance sheet
768
108,510
4,004
30,217
143,499
550
94,136
1,144
18,961
114,791
1 Mainly includes cash
and securities.
2 Includes guarantees.
3 Includes prime brokerage
margin lending receivables
and prime brokerage
receivables relating to
securities financing transactions.
4 Primarily
consists of amounts due from subsidiaries and other Group entities.
5 Consists of office and business premises, industrial premises and other mortgages.
31.12.24
31.12.23
Secured
Unsecured
Total
Secured
Unsecured
Total
Secured by collateral
Secured by
other credit
enhancements
2
Secured by collateral
Secured by
other credit
enhancements
2
CHF m
Real estate
Other
collateral
1
Real estate
Other
collateral
1
On-balance sheet
Due from customers, gross
3
37
93,061
4,100
39,620
4
136,818
55,454
40
35,126
4
90,621
Mortgage loans, gross
7,669
7,669
4,306
4,306
of which: residential mortgages
4,760
4,760
2,402
2,402
of which: other mortgages
5
2,908
2,908
1,904
1,904
Funding provided to significant
regulated subsidiaries eligible as
total loss-absorbing capacity
39,662
39,662
24,748
24,748
Total on-balance sheet, gross
7,706
93,061
4,100
79,281
184,148
4,306
55,454
40
59,874
119,675
Allowances
(6)
(99)
(37)
(1,438)
(1,580)
0
(56)
0
(133)
(189)
Total on-balance sheet, net
7,699
92,962
4,064
77,843
182,568
4,306
55,397
40
59,742
119,486
Off-balance sheet
Contingent liabilities, gross
28
18,698
1,159
11,888
31,773
17,881
833
7,680
26,395
Irrevocable commitments, gross
670
21,688
2,477
15,547
40,382
463
7,882
129
8,275
16,749
Forward starting reverse repurchase
and securities borrowing
transactions
58,151
58,151
53,470
0
53,470
Liabilities for calls on shares and
other equities
4
4
4
4
Total off-balance sheet
698
98,538
3,636
27,440
130,311
463
79,233
963
15,959
96,619
1 Mainly includes cash and
securities.
2 Includes guarantees.
3 Includes prime brokerage
margin lending receivables
and prime brokerage
receivables relating to securities
financing transactions.
4 Primarily
consists of amounts due from subsidiaries and other Group entities.
5 Consists of office and business premises, industrial premises and other mortgages.
UBS AG standalone financial statements
(audited)
23
Note 12b
Credit-impaired financial instruments
31.12.24
31.12.23
USD m
Gross credit-
impaired financial
instruments
Allowances
and
provisions
Estimated
liquidation
proceeds of
collateral
Net credit-
impaired
financial
instruments
Gross credit-
impaired
financial
instruments
Allowances
and
provisions
Estimated
liquidation
proceeds of
collateral
Net credit-
impaired
financial
instruments
Amounts due from customers
3,329
1,496
894
939
384
114
270
0
Mortgage loans
206
4
201
0
113
0
113
0
Other assets
6
4
0
2
2
2
0
0
Guarantees and loan commitments
167
16
117
35
18
4
8
7
Total credit-impaired financial instruments
1
3,708
1,520
1,212
976
517
120
390
7
1 Credit-impaired financial instruments are financial assets and off-balance sheet positions subject to incurred credit losses,
also referred to as stage 3 positions.
31.12.24
31.12.23
CHF m
Gross credit-
impaired financial
instruments
Allowances
and
provisions
Estimated
liquidation
proceeds of
collateral
Net credit-
impaired
financial
instruments
Gross credit-
impaired
financial
instruments
Allowances
and
provisions
Estimated
liquidation
proceeds of
collateral
Net credit-
impaired
financial
instruments
Amounts due from customers
3,023
1,358
812
853
323
96
227
0
Mortgage loans
187
4
183
0
95
0
95
0
Other assets
6
3
0
2
1
1
0
0
Guarantees and loan commitments
152
14
106
32
15
3
6
6
Total credit-impaired financial instruments
1
3,367
1,380
1,100
887
435
101
329
6
1 Credit-impaired financial instruments are financial assets and off-balance sheet positions subject to incurred credit losses,
also referred to as stage 3 positions.
Note 13
Allowances and provisions
Allowances and
provisions of
USD 4,869m (CHF
4,422m) as
of 31 December
2024 included
allowances and
provisions
for
credit
losses
of
USD 1,896m
(CHF 1,722m).
Allowances
and
provisions
of
USD
2,249m
(CHF 1,893m)
as
of
31 December 2023 included allowances and provisions
for credit losses of USD 294m (CHF 247m).
The 2024
increase
in allowances
and provisions
for credit
losses of
USD 1,602m
(CHF 1,475m)
included USD
1,551m
(CHF
1,305m)
from
the
merger
with
Credit
Suisse
AG
as
of
1
January
2024,
net
credit
loss
expenses
of
USD 206m
(CHF 179m)
recognized
in the
income
statement,
primarily
related
to credit
-impaired
positions,
as well
as
USD
155m
(CHF 9m) other
allowances
and provision
movements without
ECL profit
or loss
impact, mainly
from the
merger with
Credit Suisse AG, for write-offs and other movements that
did not impact the income statement.
Allowances of
USD 1,492m
(CHF 1,256m)
and provisions
of USD
1,290m (CHF
1,086m) recognized
upon the
merger
with Credit
Suisse AG,
a total
of USD
2,782m (CHF
2,342m), include
a merger
adjustment of
USD 577m
(CHF 486m)
recognized
in
the
income
statement
and
recorded
in
Extraordinary
expenses
.
This
adjustment
largely
relates
to
UBS
accounting policy adoption
and methodology alignment
on credit loss allowances
and provisions for
Credit Suisse AG’s
transactions, including those with direct
and indirect subsidiaries of
UBS AG. UBS AG’s
Swiss GAAP policy for
recognizing
credit loss allowances and provisions is to the largest extent possible aligned with IFRS, whereas Credit Suisse AG’s Swiss
GAAP policy was generally calibrated
to US GAAP. Certain allowances
and provisions recognized by
Credit Suisse AG as
of 31 December 2023
related to Non-Core and
Legacy positions were measured by
UBS AG at fair
value and not
included
in UBS AG’s allowances and provisions at the merger
date.
›
Refer Note 2 and Note 9 for more information
UBS AG standalone financial statements
(audited)
24
Note 13a
Allowances for credit losses
USD m
Balance
as of
31.12.23
Balance
recognized
upon the
merger with
Credit Suisse
AG
Increase
recognized
in the
income
statement
Release
recognized
in the
income
statement
Write-offs
Recoveries
and past
due interest
Reclassifications
/ other
Foreign
currency
translation
Balance
as of
31.12.24
Default risk relating to on-balance sheet exposures
233
1,492
227
(27)
(276)
8
96
10
1,762
of which: incurred credit losses
116
1,338
227
0
(276)
8
96
(6)
1,504
of which: expected credit losses
117
154
0
(27)
0
0
0
15
258
Other
7
0
0
0
0
0
0
(1)
6
Total allowances
241
1,492
227
(27)
(276)
8
96
8
1,768
CHF m
Balance
as of
31.12.23
Balance
recognized
upon the
merger with
Credit Suisse
AG
Increase
recognized
in the
income
statement
Release
recognized
in the
income
statement
Write-offs
Recoveries
and past
due interest
Reclassifications
/ other
Foreign
currency
translation
Balance
as of
31.12.24
Default risk relating to on-balance sheet exposures
197
1,256
197
(24)
(240)
7
83
124
1,600
of which: incurred credit losses
98
1,126
197
0
(240)
7
83
94
1,366
of which: expected credit losses
99
129
0
(24)
0
0
0
30
235
Other
6
0
0
0
0
0
0
(1)
6
Total allowances
203
1,256
197
(24)
(240)
7
83
123
1,606
Note 13b
Provisions
USD m
Balance
as of
31.12.23
Balance
recognized
upon the
merger with
Credit Suisse
AG
Increase
recognized
in the
income
statement
Release
recognized
in the
income
statement
Provisions
used in
conformity
with
designated
purpose
Recoveries
Reclassifications
Foreign
currency
translation /
other
Balance
as of
31.12.24
Default risk related to off-balance sheet
items and credit lines
60
59
14
(8)
0
0
5
4
134
of which: incurred credit losses
4
0
0
(1)
0
0
5
9
16
of which: expected credit losses
57
59
14
(7)
0
0
0
(6)
118
Litigation, regulatory and similar matters
1,665
1,118
1,268
(51)
(1,481)
1
92
1
(120)
2,492
Restructuring
25
49
239
(45)
(167)
0
0
6
107
Real estate
2
113
25
56
(2)
(16)
0
0
15
191
Employee benefits
27
22
20
(18)
0
0
0
(3)
47
Deferred taxes
94
0
0
(20)
0
0
0
(13)
61
Other
25
17
56
(15)
(4)
0
0
(10)
70
Total provisions
2,008
1,290
1,653
(158)
(1,668)
1
96
(121)
3,101
1 Relates to the funding by UBS AG of the offer made in June 2024 by the Credit Suisse supply chain
finance funds to redeem all of their outstanding units. Post
the expiry of the offer, USD 92m was
reclassified from
derivative liabilities back into provisions in relation
to investors who did not accept the redemption offer.
Refer to “Note 18 Provisions and contingent liabilities”
in the “Consolidated financial statements” section of
the UBS AG Annual
Report 2024, available
under “Annual
reporting” at ubs.com/investors,
for more information.
2 Includes provisions for
onerous contracts of USD 87m
as of 31 December
2024 (31 December
2023: USD 47m) and reinstatement cost provisions for leasehold improvements of USD 103m as of 31 December 2024 (31 December 2023:
USD 66m).
CHF m
Balance
as of
31.12.23
Balance
recognized
upon the
merger with
Credit Suisse
AG
Increase
recognized
in the
income
statement
Release
recognized
in the
income
statement
Provisions
used in
conformity
with
designated
purpose
Recoveries
Reclassifications
Foreign
currency
translation /
other
Balance
as of
31.12.24
Default risk related to off-balance sheet
items and credit lines
51
50
12
(7)
0
0
4
12
122
of which: incurred credit losses
3
0
0
(1)
0
0
4
9
15
of which: expected credit losses
48
50
12
(6)
0
0
0
3
107
Litigation, regulatory and similar matters
1,401
941
1,136
(44)
(1,330)
1
81
1
77
2,263
Restructuring
21
41
210
(39)
(147)
0
0
11
97
Real estate
2
95
21
50
(1)
(14)
0
0
22
173
Employee benefits
23
18
18
(16)
0
0
0
0
43
Deferred taxes
79
0
0
(17)
0
0
0
(7)
55
Other
21
15
51
(13)
(3)
0
0
(7)
63
Total provisions
1,690
1,086
1,476
(139)
(1,494)
1
85
108
2,816
1 Relates to the funding by UBS AG
of the offer made in June 2024
by the Credit Suisse supply chain finance funds
to redeem all of their outstanding units.
Post the expiry of the offer,
CHF 81m was reclassified from
derivative liabilities back into provisions
in relation to investors who
did not accept the redemption offer.
Refer to “Note 18 Provisions
and contingent liabilities” in the
“Consolidated financial statements” section of
the UBS AG Annual Report 2024, available under “Annual reporting” at ubs.com/investors, for more information.
2 Includes provisions for onerous contracts of CHF 79m as of 31 December 2024 (31 December
2023:
CHF 39m) and reinstatement cost provisions for leasehold improvements of CHF 94m as of 31 December 2024 (31 December 2023: CHF 55m).
UBS AG standalone financial statements
(audited)
25
Note 13c
Development of allowances and provisions
for credit losses
USD m
Total
Stage 1
Stage 2
Stage 3
Balance as of 31 December 2023
(294)
(133)
(41)
(120)
Balance recognized upon the merger with Credit Suisse AG as of 1.1.24
(1,551)
(165)
(48)
(1,338)
Net movement from new and derecognized transactions
1
66
88
(31)
10
of which: Large corporate clients
69
90
(31)
10
Remeasurements with stage transfers
2
(210)
4
(1)
(213)
of which: Large corporate clients
(116)
4
(2)
(118)
Remeasurements without stage transfers
3
(10)
10
3
(23)
of which: Large corporate clients
(23)
12
8
(43)
Model changes
4
(52)
(17)
(34)
0
Total ECL allowance movements with profit or loss impact
(206)
84
(64)
(226)
Movements without profit or loss impact (write-off, FX and other)
5
155
(12)
3
164
Balance as of 31 December 2024
(1,896)
(226)
(150)
(1,520)
1 Represents the
increase and decrease
in allowances and
provisions resulting from
financial instruments (including
guarantees and facilities)
that were newly
originated, purchased or
renewed and from
the final
derecognition of loans
or facilities on
their maturity
date or earlier.
2 Represents the
remeasurement between 12-month
and lifetime ECL
due to stage
transfers.
3 Represents the
change in allowances
and
provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposure
profile, PD and LGD changes, and unwinding of the time value.
4 Represents the change in the allowances
and provisions related to changes in
models and methodologies.
5 Represents the decrease in allowances
and provisions resulting from write-offs of
the ECL allowance
against the gross carrying amount when all or part of a financial asset is deemed uncollectible or forgiven and movements in foreign exchange rates.
CHF m
Total
Stage 1
Stage 2
Stage 3
Balance as of 31 December 2023
(247)
(112)
(34)
(101)
Balance recognized upon the merger with Credit Suisse AG as of 1.1.24
(1,305)
(139)
(40)
(1,126)
Net movement from new and derecognized transactions
1
58
76
(27)
8
of which: Large corporate clients
60
78
(27)
8
Remeasurements with stage transfers
2
(183)
3
(1)
(185)
of which: Large corporate clients
(101)
3
(2)
(102)
Remeasurements without stage transfers
3
(9)
9
3
(20)
of which: Large corporate clients
(20)
10
7
(38)
Model changes
4
(45)
(15)
(30)
0
Total ECL allowance movements with profit or loss impact
(179)
73
(55)
(196)
Movements without profit or loss impact (write-off, FX and other)
5
9
(27)
(6)
43
Balance as of 31 December 2024
(1,722)
(205)
(136)
(1,380)
1 Represents the
increase and decrease
in allowances and
provisions resulting from
financial instruments (including
guarantees and facilities)
that were newly
originated, purchased or
renewed and from
the final
derecognition of loans
or facilities on
their maturity
date or earlier.
2 Represents the
remeasurement between 12-month
and lifetime ECL
due to stage
transfers.
3 Represents the
change in allowances
and
provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposure
profile, PD and LGD changes, and unwinding of the time value.
4 Represents the change in the allowances
and provisions related to changes in
models and methodologies.
5 Represents the decrease in allowances
and provisions resulting from write-offs of
the ECL allowance
against the gross carrying amount when all or part of a financial asset is deemed uncollectible or forgiven and movements in foreign exchange rates.
UBS AG standalone financial statements
(audited)
26
Note 13c
Development of allowances and provisions
for credit losses (continued)
USD m
Total
Stage 1
Stage 2
Stage 3
Balance as of 31 December 2022
(287)
(132)
(47)
(107)
Net movement from new and derecognized transactions
1
8
(1)
3
7
of which: Large corporate clients
6
(3)
2
7
Remeasurements with stage transfers
2
(52)
0
0
(53)
of which: Large corporate clients
(52)
1
0
(53)
Remeasurements without stage transfers
3
46
9
10
26
of which: Large corporate clients
13
13
10
(11)
Model changes
4
(16)
(10)
(6)
0
Total ECL allowance movements with profit or loss impact
(13)
(2)
7
(19)
Movements without profit or loss impact (write-off, FX and other)
5
7
1
(1)
7
Balance as of 31 December 2023
(294)
(133)
(41)
(120)
1 Represents the
increase and decrease
in allowances and
provisions resulting from
financial instruments (including
guarantees
and facilities) that
were newly originated,
purchased or renewed
and from the
final
derecognition of loans
or facilities on
their maturity
date or earlier.
2 Represents the
remeasurement between 12-month
and lifetime ECL
due to stage
transfers.
3 Represents the
change in allowances
and
provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposure
profile, PD and LGD changes, and unwinding of the time value.
4 Represents the change in the allowances
and provisions related to changes
in models and methodologies.
5 Represents the decrease in allowances
and provisions resulting from write-offs of
the ECL allowance
against the gross carrying amount when all or part of a financial asset is deemed uncollectible or forgiven and movements in foreign exchange rates.
CHF m
Total
Stage 1
Stage 2
Stage 3
Balance as of 31 December 2022
(266)
(123)
(44)
(99)
Net movement from new and derecognized transactions
1
8
(1)
3
6
of which: Large corporate clients
5
(3)
2
6
Remeasurements with stage transfers
2
(50)
0
0
(51)
of which: Large corporate clients
(50)
1
0
(50)
Remeasurements without stage transfers
3
43
9
9
25
of which: Large corporate clients
11
12
9
(10)
Model changes
4
(15)
(10)
(5)
0
Total ECL allowance movements with profit or loss impact
(13)
(2)
7
(19)
Movements without profit or loss impact (write-off, FX and other)
5
33
13
3
17
Balance as of 31 December 2023
(247)
(112)
(34)
(101)
1 Represents the
increase and decrease
in allowances and
provisions resulting from
financial instruments (including
guarantees and facilities)
that were newly
originated, purchased or
renewed and from
the final
derecognition of loans
or facilities on
their maturity
date or earlier.
2 Represents the
remeasurement between 12-month
and lifetime ECL
due to stage
transfers.
3 Represents the
change in allowances
and
provisions related to changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions, changes in the exposure
profile, PD and LGD changes, and unwinding of the time value.
4 Represents the change in the allowances
and provisions related to changes in
models and methodologies.
5 Represents the decrease in allowances
and provisions resulting from write-offs of
the ECL allowance
against the gross carrying amount when all or part of a financial asset is deemed uncollectible or forgiven and movements in foreign exchange rates.
UBS AG standalone financial statements
(audited)
27
Note 13d
Balance sheet and off-balance sheet positions
subject to ECL
The
tables
below
provide
information
about
ECL
exposures,
allowances
and
provisions
for
financial
instruments
and
certain non-financial instruments that are
subject to ECL.
USD m
31.12.24
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
69,614
69,614
0
0
0
0
0
0
Due from banks
96,243
96,164
79
0
(14)
(14)
(1)
0
Receivables from securities financing transactions
117,338
117,338
0
0
(2)
(2)
0
0
Due from customers
148,955
143,834
3,288
1,833
(1,710)
(106)
(108)
(1,496)
Funding provided to significant regulated subsidiaries
eligible as total loss-absorbing
capacity
43,652
43,652
0
0
(23)
(23)
0
0
Mortgage loans
8,438
7,880
356
201
(7)
(2)
(1)
(4)
Accrued income and prepaid expenses
2
3,091
3,081
10
0
0
0
0
0
Other assets
3
2,172
2,170
0
2
(5)
(1)
0
(4)
Total on-balance sheet financial assets within the scope of ECL
489,504
483,734
3,733
2,037
(1,762)
(148)
(109)
(1,504)
Total exposure
ECL provisions
Off-balance sheet (within the scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Contingent liabilities, gross
34,989
34,799
147
43
(7)
(4)
0
(3)
Irrevocable commitments, gross
44,469
40,818
3,526
125
(128)
(74)
(40)
(14)
Forward starting transactions (securities financing transactions)
4
22,954
22,954
0
0
0
0
0
0
Credit lines
39,291
39,239
46
6
0
0
0
0
Irrevocable committed prolongation of existing loans
245
245
0
0
0
0
0
0
Total off-balance sheet financial instruments and credit lines within the scope of
ECL
141,947
138,055
3,718
173
(134)
(78)
(40)
(16)
Total allowances and provisions
(1,896)
(226)
(150)
(1,520)
1 The carrying amount of financial assets measured at amortized cost represents
the total gross exposure net of the respective ECL allowances.
2 Includes components of accrued interest assets within the scope of
ECL.
3 Includes components of other receivables due from UBS Group
AG and subsidiaries in the UBS Group and other assets within the scope
of ECL. Refer to Note 17a for more information.
4 Includes forward
starting reverse repurchase agreements within the scope of ECL.
CHF m
31.12.24
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
63,217
63,217
0
0
0
0
0
0
Due from banks
87,399
87,327
71
0
(13)
(12)
(1)
0
Receivables from securities financing transactions
106,555
106,555
0
0
(2)
(2)
0
0
Due from customers
135,266
130,616
2,985
1,664
(1,553)
(96)
(98)
(1,358)
Funding provided to significant regulated subsidiaries
eligible as total loss-absorbing
capacity
39,640
39,640
0
0
(21)
(21)
0
0
Mortgage loans
7,662
7,156
324
183
(6)
(2)
(1)
(4)
Accrued income and prepaid expenses
2
2,807
2,798
9
0
0
0
0
0
Other assets
3
1,972
1,970
0
2
(4)
(1)
0
(3)
Total on-balance sheet financial assets within the scope of ECL
444,518
439,279
3,390
1,849
(1,600)
(134)
(100)
(1,366)
Total exposure
ECL provisions
Off-balance sheet (within the scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Contingent liabilities, gross
31,773
31,601
134
39
(6)
(4)
0
(2)
Irrevocable commitments, gross
40,382
37,067
3,202
113
(116)
(67)
(37)
(12)
Forward starting transactions (securities financing transactions)
4
20,844
20,844
0
0
0
0
0
0
Credit lines
35,680
35,633
41
5
0
0
0
0
Irrevocable committed prolongation of existing loans
222
222
0
0
0
0
0
0
Total off-balance sheet financial instruments and credit lines within the scope of
ECL
128,901
125,367
3,377
157
(122)
(71)
(36)
(15)
Total allowances and provisions
(1,722)
(205)
(136)
(1,380)
1 The carrying amount of financial assets measured at amortized cost represents the total gross
exposure net of the respective ECL allowances.
2 Includes components of accrued interest assets within the scope of
ECL.
3 Includes components of other receivables due from UBS Group AG and subsidiaries
in the UBS Group and other assets within the scope of ECL. Refer to Note 17a for more information.
4 Includes forward
starting reverse repurchase agreements within the scope of ECL.
UBS AG standalone financial statements
(audited)
28
Note 13d
Balance sheet and off-balance sheet positions
subject to ECL (continued)
USD m
31.12.23
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
49,449
49,449
0
0
0
0
0
0
Due from banks
56,082
56,082
0
0
(5)
(5)
0
0
Receivables from securities financing transactions
69,381
69,381
0
0
(2)
(2)
0
0
Due from customers
107,463
105,919
1,275
270
(202)
(69)
(19)
(114)
Funding provided to significant regulated subsidiaries
eligible as total loss-absorbing
capacity
29,380
29,380
0
0
(22)
(22)
0
0
Mortgage loans
5,116
4,997
6
113
0
0
0
0
Accrued income and prepaid expenses
3,000
2,991
8
0
0
0
0
0
Other assets
2
918
918
0
0
(2)
0
0
(2)
Total on-balance sheet financial assets within the scope of ECL
320,789
319,117
1,289
383
(233)
(99)
(19)
(116)
Total exposure
ECL provisions
Off-balance sheet (within the scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Contingent liabilities, gross
31,360
31,226
129
4
(3)
(2)
(1)
(1)
Irrevocable commitments, gross
19,900
18,427
1,458
14
(56)
(33)
(21)
(2)
Forward starting transactions (securities financing transactions)
3
9,500
9,500
0
0
0
0
0
0
Credit lines
9,777
9,446
331
0
(1)
(1)
0
0
Irrevocable committed prolongation of existing loans
1,907
1,907
0
0
0
0
0
0
Total off-balance sheet financial instruments and credit lines within the scope of
ECL
72,444
70,507
1,918
18
(60)
(35)
(22)
(4)
Total allowances and provisions
(294)
(133)
(41)
(120)
1 The carrying amount of financial assets measured at amortized
cost represents the total gross exposure net of the respective
ECL allowances.
2 Includes components of other receivables due from UBS
Group AG
and subsidiaries in the UBS Group and other assets within the scope of ECL. Refer to Note 17a for more information.
3 Includes forward starting reverse repurchase agreements within the scope of ECL.
CHF m
31.12.23
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
41,620
41,620
0
0
0
0
0
0
Due from banks
47,204
47,204
0
0
(4)
(4)
0
0
Receivables from securities financing transactions
58,398
58,398
0
0
(1)
(1)
0
0
Due from customers
90,451
89,151
1,073
227
(170)
(58)
(16)
(96)
Funding provided to significant regulated subsidiaries
eligible as total loss-absorbing
capacity
24,729
24,729
0
0
(19)
(19)
0
0
Mortgage loans
4,306
4,206
5
95
0
0
0
0
Accrued income and prepaid expenses
2,525
2,518
7
0
0
0
0
0
Other assets
2
772
772
0
0
(2)
0
0
(1)
Total on-balance sheet financial assets within the scope of ECL
270,005
268,598
1,085
322
(197)
(83)
(16)
(98)
Total exposure
ECL provisions
Off-balance sheet (within the scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Contingent liabilities, gross
26,395
26,283
109
3
(3)
(1)
0
(1)
Irrevocable commitments, gross
16,749
15,510
1,227
12
(49)
(29)
(19)
(2)
Forward starting transactions (securities financing transactions)
3
7,996
7,996
0
0
0
0
0
0
Credit lines
8,229
7,951
278
0
0
0
0
0
Irrevocable committed prolongation of existing loans
1,605
1,605
0
0
0
0
0
0
Total off-balance sheet financial instruments and credit lines within the scope of
ECL
60,975
59,345
1,615
15
(51)
(30)
(18)
(3)
Total allowances and provisions
(247)
(112)
(34)
(101)
1 The carrying amount of financial assets measured at amortized cost represents
the total gross exposure net of the respective
ECL allowances.
2 Includes components of other receivables due from UBS Group AG
and subsidiaries in the UBS Group and other assets within the scope of ECL. Refer to Note 17a for more information.
3 Includes forward starting reverse repurchase agreements within the scope of ECL.
UBS AG standalone financial statements
(audited)
29
Note 13e
Financial assets subject to credit risk, by rating category
The table below shows
the credit quality
and the maximum
exposure to credit
risk based on the
Group’s internal credit
rating system and year-end stage classification.
Financial assets subject to credit risk by rating
category
USD m
31.12.24
Rating category
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total gross
carrying
amount
ECL
allowances
Net carrying
amount
(maximum
exposure to
credit risk)
Financial instruments measured at amortized cost
Cash and balances at central banks
69,375
216
23
0
0
0
69,614
0
69,614
of which: stage 1
69,375
216
23
0
0
0
69,614
0
69,614
Due from banks
10,103
82,957
1,501
1,572
124
0
96,257
(14)
96,243
of which: stage 1
10,103
82,957
1,483
1,570
65
0
96,178
(14)
96,164
of which: stage 2
0
0
18
2
59
0
79
(1)
79
Receivables from securities financing transactions
50,251
23,557
12,213
29,796
1,523
0
117,340
(2)
117,338
of which: stage 1
50,251
23,557
12,213
29,796
1,523
0
117,340
(2)
117,338
Due from customers
5,426
52,373
18,111
64,292
7,136
3,326
150,665
(1,710)
148,955
of which: stage 1
5,426
52,252
17,718
63,125
5,419
0
143,940
(106)
143,834
of which: stage 2
0
121
392
1,167
1,715
0
3,396
(108)
3,288
of which: stage 3
0
0
0
0
2
3,326
3,329
(1,496)
1,833
Funding provided to significant regulated subsidiaries eligible
as total loss-absorbing capacity
0
43,675
0
0
0
0
43,675
(23)
43,652
of which: stage 1
0
43,675
0
0
0
0
43,675
(23)
43,652
Mortgage loans
2
599
1,653
4,518
1,468
206
8,446
(7)
8,438
of which: stage 1
2
582
1,628
4,309
1,362
0
7,883
(2)
7,880
of which: stage 2
0
17
25
209
106
0
357
(1)
356
of which: stage 3
0
0
0
0
0
206
206
(4)
201
Accrued income and prepaid expenses
373
1,512
296
839
72
0
3,091
0
3,091
of which: stage 1
373
1,512
290
838
69
0
3,081
0
3,081
of which: stage 2
0
0
6
1
3
0
10
0
10
Other assets
348
416
41
1,349
16
6
2,177
(5)
2,172
of which: stage 1
348
416
41
1,349
16
0
2,170
(1)
2,170
of which: stage 3
0
0
0
0
0
6
6
(4)
2
Total in scope of ECL assets / ECL amounts by stages
135,879
205,306
33,837
102,366
10,339
3,538
491,265
(1,762)
489,504
Off-balance sheet positions and credit lines subject
to expected credit loss by rating category
USD m
31.12.24
Rating category
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total off-
balance sheet
exposure
(maximum
exposure to
credit risk)
ECL provisions
Off-balance sheet (within the scope of ECL)
Contingent liabilities, gross
16,706
12,865
3,204
1,486
684
43
34,989
(7)
of which: stage 1
16,706
12,862
3,195
1,471
564
0
34,799
(4)
of which: stage 2
0
3
9
16
120
0
147
0
of which: stage 3
0
0
0
0
0
43
43
(3)
Irrevocable commitments, gross
1,447
10,520
10,045
7,549
14,827
82
44,469
(128)
of which: stage 1
1,447
10,354
9,889
7,320
11,808
0
40,818
(74)
of which: stage 2
0
165
156
229
2,975
0
3,526
(40)
of which: stage 3
0
0
0
0
43
82
125
(14)
Forward starting transactions (securities financing transactions)
0
0
0
22,954
0
0
22,954
0
of which: stage 1
0
0
0
22,954
0
0
22,954
0
Credit lines
7
34,857
784
3,522
115
6
39,291
0
of which: stage 1
7
34,838
776
3,522
96
0
39,239
0
of which: stage 2
0
19
8
0
18
0
46
0
of which: stage 3
0
0
0
0
0
6
6
0
Irrevocable committed prolongation of existing loans
0
245
0
0
0
0
245
0
of which: stage 1
0
245
0
0
0
0
245
0
Total off-balance sheet financial instruments and credit lines
18,160
58,486
14,033
35,511
15,626
130
141,947
(134)
UBS AG standalone financial statements
(audited)
30
Note 13e
Financial assets subject to credit risk, by rating category
(continued)
Financial assets subject to credit risk by rating
category
CHF m
31.12.24
Rating category
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total gross
carrying
amount
ECL
allowances
Net carrying
amount
(maximum
exposure to
credit risk)
Financial instruments measured at amortized cost
Cash and balances at central banks
62,999
196
21
0
0
0
63,217
0
63,217
of which: stage 1
62,999
196
21
0
0
0
63,217
0
63,217
Due from banks
9,175
75,334
1,363
1,427
112
0
87,411
(13)
87,399
of which: stage 1
9,175
75,334
1,347
1,426
58
0
87,339
(12)
87,327
of which: stage 2
0
0
17
2
54
0
72
(1)
71
Receivables from securities financing transactions
45,633
21,392
11,090
27,058
1,383
0
106,557
(2)
106,555
of which: stage 1
45,633
21,392
11,090
27,058
1,383
0
106,557
(2)
106,555
Due from customers
4,928
47,560
16,446
58,384
6,481
3,020
136,818
(1,553)
135,266
of which: stage 1
4,928
47,450
16,090
57,324
4,921
0
130,712
(96)
130,616
of which: stage 2
0
110
356
1,059
1,558
0
3,084
(98)
2,985
of which: stage 3
0
0
0
0
2
3,020
3,023
(1,358)
1,664
Funding provided to significant regulated subsidiaries eligible
as total loss-absorbing capacity
0
39,662
0
0
0
0
39,662
(21)
39,640
of which: stage 1
0
39,662
0
0
0
0
39,662
(21)
39,640
Mortgage loans
2
544
1,501
4,102
1,333
187
7,669
(6)
7,662
of which: stage 1
2
528
1,478
3,913
1,237
0
7,159
(2)
7,156
of which: stage 2
0
16
23
189
96
0
324
(1)
324
of which: stage 3
0
0
0
0
0
187
187
(4)
183
Accrued income and prepaid expenses
338
1,373
269
762
65
0
2,807
0
2,807
of which: stage 1
338
1,373
263
761
63
0
2,798
0
2,798
of which: stage 2
0
0
5
1
2
0
9
0
9
Other assets
316
378
37
1,225
14
6
1,977
(4)
1,972
of which: stage 1
316
378
37
1,225
14
0
1,971
(1)
1,970
of which: stage 3
0
0
0
0
0
6
6
(3)
2
Total in scope of ECL assets / ECL amounts by stages
123,392
186,439
30,727
92,959
9,388
3,213
446,118
(1,600)
444,518
Off-balance sheet positions and credit lines subject
to expected credit loss by rating category
CHF m
31.12.24
Rating category
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total off-
balance sheet
exposure
(maximum
exposure to
credit risk)
ECL provisions
Off-balance sheet (within the scope of ECL)
Contingent liabilities, gross
15,171
11,683
2,910
1,350
621
39
31,773
(6)
of which: stage 1
15,171
11,680
2,902
1,336
513
0
31,601
(4)
of which: stage 2
0
3
8
14
109
0
134
0
of which: stage 3
0
0
0
0
0
39
39
(2)
Irrevocable commitments, gross
1,314
9,553
9,122
6,855
13,464
74
40,382
(116)
of which: stage 1
1,314
9,403
8,980
6,647
10,723
0
37,067
(67)
of which: stage 2
0
150
141
208
2,702
0
3,202
(37)
of which: stage 3
0
0
0
0
39
74
113
(12)
Forward starting transactions (securities financing transactions)
0
0
0
20,844
0
0
20,844
0
of which: stage 1
0
0
0
20,844
0
0
20,844
0
Credit lines
6
31,654
712
3,198
104
5
35,680
0
of which: stage 1
6
31,637
705
3,198
88
0
35,633
0
of which: stage 2
0
17
7
0
17
0
41
0
of which: stage 3
0
0
0
0
0
5
5
0
Irrevocable committed prolongation of existing loans
0
222
0
0
0
0
222
0
of which: stage 1
0
222
0
0
0
0
222
0
Total off-balance sheet financial instruments and credit lines
16,491
53,111
12,744
32,248
14,190
118
128,901
(122)
›
Refer to “Note 10 Financial assets at amortized
cost and other positions in scope of expected
credit loss measurement” and “Note
20 Expected credit loss measurement” in the “Consolidated financial statements”
section of the UBS AG Annual Report 2024,
available under “Annual reporting” at
ubs.com/investors
, for more information about ECL in accordance with
IFRS Accounting
Standards
UBS AG standalone financial statements
(audited)
31
Note 13e
Financial assets subject to credit risk, by rating category
(continued)
Financial assets subject to credit risk by rating
category
USD m
31.12.23
Rating category
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total gross
carrying
amount
ECL
allowances
Net carrying
amount
(maximum
exposure to
credit risk)
Financial instruments measured at amortized cost
Cash and balances at central banks
49,186
262
0
0
0
0
49,449
0
49,449
of which: stage 1
49,186
262
0
0
0
0
49,449
0
49,449
Due from banks
1,128
53,671
823
452
13
0
56,087
(5)
56,082
of which: stage 1
1,128
53,671
823
452
13
0
56,087
(5)
56,082
Receivables from securities financing transactions
23,453
24,046
5,286
15,507
1,091
0
69,383
(2)
69,381
of which: stage 1
23,453
24,046
5,286
15,507
1,091
0
69,383
(2)
69,381
Due from customers
1,551
43,921
10,578
48,624
2,607
384
107,665
(202)
107,463
of which: stage 1
1,551
43,783
10,332
48,182
2,139
0
105,987
(69)
105,919
of which: stage 2
0
138
246
442
468
0
1,294
(19)
1,275
of which: stage 3
0
0
0
0
0
384
384
(114)
270
Funding provided to significant regulated subsidiaries eligible
as total loss-absorbing capacity
0
29,403
0
0
0
0
29,403
(22)
29,380
of which: stage 1
0
29,403
0
0
0
0
29,403
(22)
29,380
Mortgage loans
0
1
668
3,295
1,039
113
5,116
0
5,116
of which: stage 1
0
1
668
3,290
1,039
0
4,997
0
4,997
of which: stage 2
0
0
0
6
0
0
6
0
6
of which: stage 3
0
0
0
0
0
113
113
0
113
Accrued income and prepaid expenses
156
1,491
447
852
54
0
3,000
0
3,000
of which: stage 1
156
1,491
443
851
51
0
2,991
0
2,991
of which: stage 2
0
0
4
2
3
0
8
0
8
Other assets
21
179
14
696
8
2
920
(2)
918
of which: stage 1
21
179
14
696
8
0
918
0
918
of which: stage 3
0
0
0
0
0
2
2
(2)
0
Total in scope of ECL assets / ECL amounts by stages
75,496
152,973
17,816
69,427
4,811
499
321,022
(233)
320,789
Off-balance sheet positions and credit lines subject
to expected credit loss by rating category
USD m
31.12.23
Rating category
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total carrying
amount
(maximum
exposure to
credit risk)
ECL provision
Off-balance sheet (in scope of ECL)
Contingent liabilities, gross
17,689
9,145
2,230
1,977
314
4
31,360
(3)
of which: stage 1
17,689
9,116
2,212
1,967
243
0
31,226
(2)
of which: stage 2
0
30
19
10
71
0
129
(1)
of which: stage 3
0
0
0
0
0
4
4
(1)
Irrevocable commitments, gross
1,177
5,489
4,727
2,515
5,978
14
19,900
(56)
of which: stage 1
1,177
5,489
4,715
2,407
4,639
0
18,427
(33)
of which: stage 2
0
0
12
108
1,339
0
1,458
(21)
of which: stage 3
0
0
0
0
0
14
14
(2)
Forward starting transactions (securities financing transactions)
9,062
219
84
135
0
0
9,500
0
of which: stage 1
9,062
219
84
135
0
0
9,500
0
Credit lines
0
3,662
196
4,495
1,424
0
9,777
(1)
of which: stage 1
0
3,628
148
4,493
1,178
0
9,446
(1)
of which: stage 2
0
34
49
3
246
0
331
0
Irrevocable committed prolongation of existing loans
0
1,907
0
0
0
0
1,907
0
of which: stage 1
0
1,907
0
0
0
0
1,907
0
Total off-balance sheet financial instruments and credit lines
27,928
20,423
7,237
9,122
7,715
18
72,444
(60)
UBS AG standalone financial statements
(audited)
32
Note 13e
Financial assets subject to credit risk, by rating category
(continued)
Financial assets subject to credit risk, by rating
category
CHF m
31.12.23
Rating category
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total gross
carrying
amount
ECL
allowances
Net carrying
amount
(maximum
exposure to
credit risk)
Financial instruments measured at amortized cost
Cash and balances at central banks
41,400
221
0
0
0
0
41,621
0
41,620
of which: stage 1
41,400
221
0
0
0
0
41,621
0
41,620
Due from banks
950
45,175
693
381
11
0
47,209
(4)
47,204
of which: stage 1
950
45,175
693
381
11
0
47,209
(4)
47,204
Receivables from securities financing transactions
19,741
20,239
4,449
13,052
918
0
58,399
(1)
58,398
of which: stage 1
19,741
20,239
4,449
13,052
918
0
58,399
(1)
58,398
Due from customers
1,306
36,968
8,903
40,926
2,194
323
90,621
(170)
90,451
of which: stage 1
1,306
36,852
8,696
40,554
1,801
0
89,209
(58)
89,151
of which: stage 2
0
116
207
372
394
0
1,089
(16)
1,073
of which: stage 3
0
0
0
0
0
323
323
(96)
227
Funding provided to significant regulated subsidiaries eligible
as total loss-absorbing capacity
0
24,748
0
0
0
0
24,748
(19)
24,729
of which: stage 1
0
24,748
0
0
0
0
24,748
(19)
24,729
Mortgage loans
0
1
562
2,774
874
95
4,306
0
4,306
of which: stage 1
0
1
562
2,769
874
0
4,206
0
4,206
of which: stage 2
0
0
0
5
0
0
5
0
5
of which: stage 3
0
0
0
0
0
95
95
0
95
Accrued income and prepaid expenses
131
1,255
376
718
45
0
2,525
0
2,525
of which: stage 1
131
1,255
373
716
43
0
2,518
0
2,518
of which: stage 2
0
0
4
1
2
0
7
0
7
Other assets
17
151
12
586
7
1
774
(2)
772
of which: stage 1
17
151
12
586
7
0
773
0
772
of which: stage 3
0
0
0
0
0
1
1
(1)
0
Total in scope of ECL assets / ECL amounts by stages
63,544
128,757
14,995
58,436
4,050
420
270,202
(197)
270,005
Off-balance sheet positions and credit lines subject
to expected credit loss by rating category
CHF m
31.12.23
Rating category
0–1
2–3
4–5
6–8
9–13
Credit-
impaired
(defaulted)
Total carrying
amount
(maximum
exposure to
credit risk)
ECL provision
Off-balance sheet (in scope of ECL)
Contingent liabilities, gross
14,889
7,698
1,877
1,664
264
3
26,395
(3)
of which: stage 1
14,889
7,673
1,862
1,655
204
0
26,283
(1)
of which: stage 2
0
25
16
9
60
0
109
0
of which: stage 3
0
0
0
0
0
3
3
(1)
Irrevocable commitments, gross
990
4,620
3,978
2,117
5,032
12
16,749
(49)
of which: stage 1
990
4,620
3,968
2,026
3,905
0
15,510
(29)
of which: stage 2
0
0
10
91
1,127
0
1,227
(19)
of which: stage 3
0
0
0
0
0
12
12
(2)
Forward starting transactions (securities financing transactions)
7,627
185
70
114
0
0
7,996
0
of which: stage 1
7,627
185
70
114
0
0
7,996
0
Credit lines
0
3,082
165
3,784
1,198
0
8,229
0
of which: stage 1
0
3,054
124
3,781
991
0
7,951
0
of which: stage 2
0
28
41
2
207
0
278
0
Irrevocable committed prolongation of existing loans
0
1,605
0
0
0
0
1,605
0
of which: stage 1
0
1,605
0
0
0
0
1,605
0
Total off-balance sheet financial instruments and credit lines
23,507
17,190
6,091
7,678
6,494
15
60,975
(51)
UBS AG standalone financial statements
(audited)
33
Note 14
Trading portfolio and other financial instruments
measured at fair value
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Assets
Trading portfolio assets
148,686
124,682
135,022
104,943
of which: debt instruments
1
30,308
21,300
27,523
17,928
of which: listed
21,960
17,653
19,942
14,858
of which: equity instruments
113,185
100,646
102,783
84,713
of which: precious metals and other physical commodities
5,193
2,735
4,715
2,302
Total assets measured at fair value
148,686
124,682
135,022
104,943
of which: fair value derived using a valuation model
27,939
17,340
25,371
14,595
of which: securities eligible for repurchase transactions in accordance
with liquidity regulations
2
15,542
12,167
14,113
10,241
Liabilities
Trading portfolio liabilities
29,316
27,280
26,622
22,961
of which: debt instruments
1
11,884
11,191
10,792
9,419
of which: listed
11,157
10,908
10,131
9,181
of which: equity instruments
17,431
16,089
15,829
13,542
Financial liabilities designated at fair value
3
102,901
80,859
93,444
68,058
Total liabilities measured at fair value
132,216
108,139
120,065
91,019
of which: fair value derived using a valuation model
112,247
85,898
101,931
72,300
1 Includes money
market paper.
2 Consists of
high-quality liquid debt
securities that are
eligible for repurchase
transactions at
the Swiss National
Bank or other
central banks.
3 Refer to
Note 20 for
more
information.
UBS AG standalone financial statements
(audited)
34
Note 15
Derivative instruments
1
31.12.24
31.12.23
USD bn
Derivative
financial
assets
Derivative
financial
liabilities
Total notional
values
2
Derivative
financial
assets
Derivative
financial
liabilities
Total notional
values
2
Interest rate contracts
Forwards
3
0.2
0.2
602
0.1
0.2
1,076
Swaps
32.7
25.8
15,269
25.7
21.0
12,667
of which: designated in hedge accounting relationships
0.0
0.0
197
0.0
0.0
123
Futures
0.0
0.0
802
0.0
0.0
704
Over-the-counter (OTC) options
11.6
13.2
1,963
12.1
14.4
1,571
Exchange-traded options
0.1
0.2
198
0.1
0.1
96
Total
44.6
39.4
18,834
4
38.1
35.7
16,114
Foreign exchange contracts
Forwards
37.2
32.5
2,290
15.6
18.9
1,892
of which: designated in hedge accounting relationships
0.2
0.0
3
0.0
0.0
0
Swaps
53.1
51.4
4,012
44.5
47.1
3,823
of which: designated in hedge accounting relationships
0.9
0.9
59
0.5
0.7
46
Futures
0.0
-
1
0.0
0.0
1
Over-the-counter (OTC) options
9.5
9.7
1,157
6.3
6.1
894
Exchange-traded options
0.1
0.1
9
0.1
0.1
5
Total
99.9
93.7
7,469
66.4
72.2
6,615
Equity contracts
Forwards
0.3
0.3
30
0.2
0.4
33
Swaps
6.1
8.6
363
6.5
9.3
269
Futures
0.0
0.0
80
0.0
0.0
73
Over-the-counter (OTC) options
4.4
8.5
229
2.9
6.0
199
Exchange-traded options
13.2
12.9
778
9.5
9.0
726
Total
24.1
30.3
1,479
19.1
24.6
1,299
Credit derivative contracts
Credit default swaps
2.4
3.0
133
1.5
1.3
95
Total return swaps
0.1
0.4
1
0.0
0.1
1
Other
0.3
0.0
4
0.1
0.0
1
Total
2.8
3.3
139
1.7
1.5
97
Commodity, precious metals and other contracts
Forwards
5
0.6
0.4
78
0.1
0.2
49
Swaps
0.9
1.1
58
0.7
0.5
45
Futures
0.0
0.0
13
0.0
0.0
13
Over-the-counter (OTC) options
0.8
0.4
42
0.6
0.3
38
Exchange-traded options
0.3
0.4
9
0.3
0.3
4
Total
2.6
2.3
200
1.6
1.3
150
Total before netting
173.9
169.1
28,120
126.9
135.3
24,275
of which: trading derivatives
172.9
168.1
126.4
134.5
of which: fair value derived using a valuation model
171.9
167.2
125.8
133.8
of which: derivatives designated in hedge accounting relationships
1.0
0.9
0.5
0.7
of which: fair value derived using a valuation model
1.0
0.9
0.5
0.7
Netting with cash collateral payables / receivables
(20.2)
(23.4)
(17.9)
(19.4)
Replacement value netting
(131.8)
(131.7)
(98.9)
(98.9)
Total after netting
21.9
14.0
10.1
16.9
of which: with central clearing counterparties
0.6
0.3
0.5
0.2
of which: with bank and broker-dealer counterparties
3.0
4.2
2.1
2.1
of which: other client counterparties
18.3
9.5
7.5
14.6
1 Bifurcated embedded derivatives are presented on the same balance sheet lines as their host contracts and are excluded from this table. The replacement values and related notional values of these derivatives were
not material for the periods presented.
2 Total notional values
include USD 15.5trn (31 December 2023:
USD 13.8trn) relating to derivatives that are
cleared through either a central
counterparty or an exchange.
The fair value of these derivatives net of the corresponding cash margin was not material for any of the periods
presented.
3 Includes forward rate agreements.
4 Notional amounts related to interest rate contracts
increased by USD 2.7trn compared with
31 December 2023, mainly reflecting
the effect of the merger of
UBS AG and Credit Suisse
AG, and higher business
volume in the Investment Bank .
5 Includes derivative
loan commitments with notional values of USD 23bn as of 31 December 2024 (31 December 2023: USD 6bn) and negative replacement values
of USD 137m (31 December 2023: USD 21m).
UBS AG standalone financial statements
(audited)
35
Note 15
Derivative instruments (continued)
1
31.12.24
31.12.23
CHF bn
Derivative
financial
assets
Derivative
financial
liabilities
Total notional
values
2
Derivative
financial
assets
Derivative
financial
liabilities
Total notional
values
2
Interest rate contracts
Forwards
3
0.2
0.2
547
0.1
0.1
905
Swaps
29.7
23.4
13,865
21.7
17.6
10,662
of which: designated in hedge accounting relationships
0.0
0.0
179
0.0
0.0
104
Futures
0.0
0.0
728
0.0
0.0
593
Over-the-counter (OTC) options
10.6
12.0
1,782
10.2
12.1
1,322
Exchange-traded options
0.1
0.1
180
0.1
0.1
81
Total
40.5
35.8
17,103
4
32.0
30.0
13,563
Foreign exchange contracts
Forwards
33.8
29.5
2,080
13.1
15.9
1,593
of which: designated in hedge accounting relationships
0.1
0.0
3
0.0
0.0
0
Swaps
48.2
46.7
3,643
37.5
39.6
3,218
of which: designated in hedge accounting relationships
0.8
0.9
53
0.4
0.6
39
Futures
0.0
0.0
1
0.0
0.0
1
Over-the-counter (OTC) options
8.7
8.8
1,050
5.3
5.2
752
Exchange-traded options
0.1
0.1
8
0.0
0.0
5
Total
90.7
85.1
6,783
55.9
60.7
5,568
Equity contracts
Forwards
0.3
0.3
27
0.2
0.3
27
Swaps
5.5
7.8
329
5.4
7.8
226
Futures
0.0
0.0
73
0.0
0.0
61
Over-the-counter (OTC) options
4.0
7.7
208
2.5
5.0
168
Exchange-traded options
12.0
11.7
706
8.0
7.6
611
Total
21.9
27.5
1,343
16.1
20.7
1,094
Credit derivative contracts
Credit default swaps
2.2
2.7
121
1.2
1.1
80
Total return swaps
0.0
0.3
1
0.0
0.1
1
Other
0.3
0.0
4
0.1
0.0
1
Total
2.5
3.0
126
1.4
1.2
81
Commodity, precious metals and other contracts
Forwards
5
0.5
0.3
71
0.1
0.1
41
Swaps
0.8
1.0
53
0.6
0.5
38
Futures
0.0
0.0
11
0.0
0.0
11
Over-the-counter (OTC) options
0.7
0.4
38
0.5
0.2
32
Exchange-traded options
0.3
0.4
8
0.2
0.3
4
Total
2.3
2.1
181
1.4
1.1
126
Total before netting
157.9
153.5
25,536
106.8
113.9
20,432
of which: trading derivatives
157.0
152.7
106.4
113.2
of which: fair value derived using a valuation model
156.1
151.9
105.9
112.6
of which: derivatives designated in hedge accounting relationships
1.0
0.9
0.4
0.6
of which: fair value derived using a valuation model
1.0
0.9
0.4
0.6
Netting with cash collateral payables / receivables
(18.4)
(21.2)
(15.1)
(16.4)
Replacement value netting
(119.7)
(119.6)
(83.2)
(83.2)
Total after netting
19.9
12.7
8.5
14.2
of which: with central clearing counterparties
0.6
0.2
0.4
0.2
of which: with bank and broker-dealer counterparties
2.7
3.8
1.7
1.7
of which: other client counterparties
16.6
8.7
6.3
12.3
1 Bifurcated embedded derivatives are presented on the same balance sheet lines as their host contracts and are excluded from this table. The replacement values and related notional values of these derivatives were
not material for the periods presented.
2 Total notional values include
CHF 14.1trn (31 December 2023:
CHF 11.6trn) relating to derivatives
that are cleared through either a
central counterparty or an exchange.
The fair value of these derivatives net of the corresponding cash margin was not material for any of the periods
presented.
3 Includes forward rate agreements.
4 Notional amounts related to interest rate contracts
increased by CHF 3.5trn compared
with 31 December 2023,
mainly reflecting the effect of
the merger of UBS
AG and Credit Suisse
AG, and higher
business volume in the
Investment Bank.
5 Includes derivative
loan commitments with notional values of CHF 20bn as of 31 December 2024 (31 December 2023: CHF 5bn) and negative replacement values
of CHF 125m (31 December 2023: CHF 17m).
UBS AG standalone financial statements
(audited)
36
Note 16a
Financial investments by instrument type
31.12.24
31.12.23
USD m
Carrying amount
Fair value
Carrying amount
Fair value
Debt instruments
38,710
38,190
40,857
40,864
of which: held to maturity
21,095
20,413
20,760
20,474
of which: available for sale
17,615
17,776
20,097
20,390
Equity instruments
1,140
1,144
16
19
of which: qualified participations
1
1
1
2
2
Other
0
0
1
1
Total financial investments
39,850
39,334
40,874
40,884
of which: securities eligible for repurchase transactions in accordance
with liquidity regulations
2
34,381
33,744
36,255
36,065
1 Qualified participations are
investments in which
UBS AG holds
10% or more of
the total capital or
has at least 10%
of total voting
rights.
2 Consists of high
-quality liquid debt securities
that are eligible
for
repurchase transactions at the Swiss National Bank or other central banks.
31.12.24
31.12.23
CHF m
Carrying amount
Fair value
Carrying amount
Fair value
Debt instruments
35,153
34,680
34,388
34,395
of which: held to maturity
19,157
18,537
17,473
17,233
of which: available for sale
15,996
16,143
16,915
17,162
Equity instruments
1,035
1,038
14
16
of which: qualified participations
1
1
1
1
1
Other
0
0
1
1
Total financial investments
36,188
35,719
34,403
34,412
of which: securities eligible for repurchase transactions in accordance
with liquidity regulations
2
31,221
30,643
30,515
30,355
1 Qualified participations are
investments in which
UBS AG holds
10% or more of
the total capital or
has at least 10%
of total voting
rights.
2 Consists of high
-quality liquid debt securities
that are eligible
for
repurchase transactions at the Swiss National Bank or other central banks.
Note 16b
Financial investments by counterparty rating
– debt instruments
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Internal UBS rating
1
0–1
25,113
31,902
22,805
26,852
2–3
13,231
8,929
12,015
7,515
4–5
363
24
330
20
6–8
0
0
0
0
9–13
0
0
0
0
Non-rated
3
1
3
1
Total financial investments
38,710
40,857
35,153
34,388
1 Refer to Note 19 for more information.
Note 17a
Other assets
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Deferral position for hedging instruments
9,129
6,824
8,290
5,743
Deposits and collateral provided in connection with litigation,
regulatory and similar matters
1
1,290
1,372
1,172
1,155
Fee- and commission-related receivables
282
242
256
203
Net assets for defined benefit plans
428
344
388
290
VAT,
withholding tax and other tax receivables
823
425
747
357
Other
1,966
699
1,784
587
of which: other receivables due from UBS Group AG and subsidiaries in
the UBS Group
1,459
483
1,325
407
Total other assets
2
13,918
9,905
12,638
8,336
1 Refer to item 1 in Note 18b
to the UBS AG consolidated financial
statements in the UBS AG Annual
Report 2024 for more information.
2 Includes components of other receivables due
from UBS Group AG and
subsidiaries in the UBS
Group and other assets
totaling USD 2,172m (CHF
1,972m) as of 31
December 2024 USD 918m
(CHF 772m) as of
31 December 2023),
which are within the
scope of expected credit
loss
accounting. Refer to Note 13d for more information.
UBS AG standalone financial statements
(audited)
37
Note 17b
Other liabilities
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Settlement and clearing accounts
401
115
364
97
Net defined benefit liabilities
61
66
55
56
VAT,
withholding tax and other tax payables
1
108
82
98
69
Other
4,626
1,491
4,201
1,254
of which: other payables to third parties
2,493
490
2,264
412
of which: other payables due to UBS Group AG and subsidiaries in the UBS Group
1,885
900
1,712
758
Total other liabilities
5,196
1,755
4,718
1,475
1 Excludes capital tax payables.
Note 18
Pledged assets
The
table
below
provides
information
about
pledged
assets,
other
than
assets
placed
with
central
banks
related
to
undrawn credit
lines and
for payment,
clearing and
settlement purposes
(31 December 2024:
USD 1.1bn (CHF 0.9bn),
31 December 2023: USD 3.5bn
(CHF 2.9bn)) and those
pledged in
connection with securities
financing transactions (refer
to Note 11 for more information).
31.12.24
31.12.23
USD m
Carrying amount of
pledged assets
Carrying amount of
pledged assets
Securities
1
12,112
8,011
Property
2
2,025
2,187
Total pledged assets
14,137
10,198
1 Includes securities pledged for derivative transactions, where the replacement values are managed on a
portfolio basis across counterparties and product types, and therefore there is no direct
relationship between
the specific collateral pledged and the associated
liability.
2 These pledged properties serve
as collateral for an existing mortgage
loan from UBS Switzerland
AG, the carrying amount of
which was USD 2,521m
as of 31 December 2024 (USD 2,804m as of 31 December 2023).
31.12.24
31.12.23
CHF m
Carrying amount of
pledged assets
Carrying amount of
pledged assets
Securities
1
10,999
6,743
Property
2
1,839
1,841
Total pledged assets
12,838
8,584
1 Includes securities pledged for derivative transactions, where the replacement values are managed on a
portfolio basis across counterparties and product types, and therefore there is no direct
relationship between
the specific collateral pledged and the
associated liability.
2 These pledged properties serve
as collateral for an existing
mortgage loan from UBS Switzerland AG,
the carrying amount of which was
CHF 2,289m
as of 31 December 2024 (CHF 2,360m as of 31 December 2023).
UBS AG standalone financial statements
(audited)
38
Note 19
Country risk of total assets
The table below provides a
breakdown of total non-Swiss
assets by credit rating,
after netting of assets and
liabilities as
recognized on the
balance sheet but
before other risk
mitigants. The credit
ratings reflect
the sovereign credit
rating of
the country to which the
ultimate risk of the
underlying asset is related.
The ultimate country of
risk for unsecured loan
positions is the
domicile of the
immediate borrower
or, in the case
of a legal
entity, the domicile
of the ultimate
parent
entity.
For
collateralized
or
guaranteed
positions,
the
ultimate
country
of
risk
is
the
domicile
of
the
provider
of
the
collateral
or
guarantor
or,
if
applicable,
the
domicile
of
the
ultimate
parent
entity
of
the
provider
of
the
collateral
or
guarantor. For mortgage
loans, the ultimate
country of risk is
the country where
the real estate
is located. Similarly, the
ultimate country of risk for property
and equipment is the country
where the property and equipment are located.
Assets
for which Switzerland is
the ultimate country of risk
are provided separately at the
bottom of the table
in order to provide
a reconciliation to total balance sheet assets.
›
Refer to the “Risk management and control” section of the
UBS AG Annual Report 2024, available
under “Annual reporting” at
ubs.com/investors
, for more information
31.12.24
31.12.23
Classification
Internal UBS rating
1
Description
Moody’s Investors
Service
S&P
Fitch
USD m
%
USD m
%
Low risk
0 and 1
Investment grade
Aaa
AAA
AAA
343,884
43
251,204
45
2
Aa1 to Aa3
AA+ to AA–
AA+ to AA–
134,479
17
90,612
16
Medium risk
3
A1 to A3
A+ to A–
A+ to A–
93,246
12
71,893
13
4
Baa1 to Baa2
BBB+ to BBB
BBB+ to BBB
18,082
2
10,340
2
5
Baa3
BBB–
BBB–
6,872
1
5,328
1
High risk
6
Sub-investment grade
Ba1
BB+
BB+
828
0
127
0
7
Ba2
BB
BB
2,765
0
774
0
8
Ba3
BB–
BB–
246
0
1,940
0
9
B1
B+
B+
1,805
0
750
0
Very high risk
10
B2
B
B
454
0
503
0
11
B3
B–
B–
129
0
121
0
12
Caa1 to Caa2
CCC+ to CCC
CCC+ to CCC
4,659
1
261
0
13
Caa3 to C
CCC– to C
CCC– to C
121
0
134
0
Distressed
Default
Defaulted
D
D
119
0
29
0
Subtotal
607,688
77
434,016
78
Switzerland
183,608
23
124,511
22
Total assets
791,297
100
558,527
100
1 Internal ratings are mapped to the external ratings in line with the table published in the “Risk management and control” section
of the UBS Group AG Annual Report 2024.
31.12.24
31.12.23
Classification
Internal UBS rating
1
Description
Moody’s Investors
Service
S&P
Fitch
CHF m
%
CHF m
%
Low risk
0 and 1
Investment grade
Aaa
AAA
AAA
312,281
43
211,428
45
2
Aa1 to Aa3
AA+ to AA–
AA+ to AA–
122,121
17
76,271
16
Medium risk
3
A1 to A3
A+ to A–
A+ to A–
84,676
12
60,511
13
4
Baa1 to Baa2
BBB+ to BBB
BBB+ to BBB
16,420
2
8,703
2
5
Baa3
BBB–
BBB–
6,240
1
4,485
1
High risk
6
Sub-investment grade
Ba1
BB+
BB+
752
0
107
0
7
Ba2
BB
BB
2,511
0
651
0
8
Ba3
BB–
BB–
223
0
1,633
0
9
B1
B+
B+
1,639
0
631
0
Very high risk
10
B2
B
B
412
0
423
0
11
B3
B–
B–
117
0
102
0
12
Caa1 to Caa2
CCC+ to CCC
CCC+ to CCC
4,231
1
220
0
13
Caa3 to C
CCC– to C
CCC– to C
110
0
113
0
Distressed
Default
Defaulted
D
D
108
0
24
0
Subtotal
551,841
77
365,302
78
Switzerland
166,734
23
104,803
22
Total assets
718,576
100
470,106
100
1 Internal ratings are mapped to the external ratings in line with the table published in the “Risk management
and control” section of the UBS Group AG Annual Report 2024.
UBS AG standalone financial statements
(audited)
39
Note 20
Structured debt instruments
The table below provides a breakdown of
financial liabilities designated at fair value
that are considered structured debt
instruments.
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Fixed-rate bonds with structured features
8,684
5,679
7,886
4,780
Structured debt instruments issued:
Equity-linked
53,917
46,220
48,962
38,903
Rates-linked
22,373
16,681
20,316
14,040
Credit-linked
4,787
4,287
4,347
3,608
Commodity-linked
1
3,620
3,704
3,288
3,118
FX-linked
1,253
699
1,138
589
Funding received from UBS Group AG designated at fair value
2
4,998
2,711
4,539
2,282
Structured over-the-counter (OTC) debt instruments
3,268
877
2,968
738
Total financial liabilities designated at fair value
102,901
80,859
93,444
68,058
1 Includes precious metals-linked debt instruments issued.
2 Refer to Note 21 for more information.
In addition
to
Financial liabilities
designated at
fair value
, certain
structured debt
instruments were
reported within
the
balance
sheet
lines
Due
to
banks
,
Due
to
customers
and
Bonds
issued
.
These
instruments
were
bifurcated
for
measurement purposes.
As of 31 December
2024, the total
carrying amount of
the host instruments
was USD 8,258m
(CHF 7,499m)
(31 December
2023:
USD 7,555m
(CHF 6,359m))
and
the
total
carrying
amount
of
the
bifurcated
embedded derivatives was positive USD 63m (CHF 57m)
(31 December 2023: positive USD 58m
(CHF 49m)).
Note 21
Funding eligible as total loss-absorbing capacity
at the UBS AG level
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Funding eligible as total loss-absorbing capacity at
the UBS AG level included in:
Funding received from UBS Group AG measured at amortized cost
108,185
67,292
98,243
56,639
Funding received from UBS Group AG designated at fair value
4,998
2,711
4,539
2,282
Bonds issued
218
546
198
460
Total funding eligible as total loss-absorbing capacity at the UBS AG level
1
113,401
70,549
102,980
59,381
1 Represents the
Swiss GAAP carrying
amount of instruments
qualifying as total
loss-absorbing capital.
In accordance with
the Basel III
framework, as applicable
to Swiss systemically
relevant banks
(SRB), total
funding eligible as total loss-absorbing capacity
at the UBS AG level was USD
108,004m (CHF 98,079m) as of 31
December 2024 (31 December 2023: USD 66,951m
(CHF 56,352m)). Refer to the “UBS
AG standalone
regulatory information” section of this report for more information about Swiss SRB going and gone concern capital.
UBS AG standalone financial statements
(audited)
40
Note 22a
Share capital
UBS AG shares issued and outstanding
As of
31 December
2024, UBS
AG’s share
capital of
USD 386m
(CHF 380m)
consisted of
3,858,408,466 fully
paid-up
registered issued and outstanding shares with a nominal value of USD 0.10, which each entitle the holder to one vote at
the meeting
of the
shareholders of
UBS AG,
if entered
into the
share register
as having
the right
to vote,
as well
as a
proportionate share
of distributed dividends
(unchanged from
31 December 2023).
UBS AG’s shares
are not subject
to
any restrictions or limitations on their transferability. All shares
were held by UBS Group AG.
Conditional share capital
As of
31 December
2024, the
following conditional
share capital
was available
to the
Board of
Directors (the
BoD) of
UBS AG:
–
Conditional
capital
in
the
amount
of
USD
38,000,000,
for
the
issuance
of
a
maximum
of
380,000,000
fully
paid
registered shares with a nominal value of USD 0.10 each (unchanged
from 31 December 2023), to be issued through
the voluntary or mandatory exercise of conversion rights and / or warrants granted in connection with the issuance of
bonds or similar
financial instruments
on national or
international capital
markets. This conditional
capital allowance
was approved at
the Extraordinary General
Meeting held
on 26 November
2014, having originally
been approved
at
the Annual General Meeting (the AGM) of UBS AG on 14
April 2010. The BoD has not made use of such allowance.
Conversion capital
As
of
31
December
2024,
UBS
AG
had
conversion
capital
in
the
amount
of
USD
70,000,000,
for
the
issuance
of
a
maximum of 700,000,000 fully paid registered shares with
a nominal value of USD 0.10 each. The issuance of fully paid
registered shares only occurs through
the mandatory conversion of claims
arising upon occurrence of one
or more trigger
events under
financial market
instruments with
contingent conversion
features issued
by UBS
AG. The
creation of
this
conversion capital was approved at the Annual General
Meeting of Shareholders (the AGM) held on 23 April 2024.
Non-distributable reserves
Non-distributable reserves
consist of
50% of
the share
capital of
UBS AG,
amounting to
USD 193m (CHF 190m)
as of
31 December 2024 (unchanged from 31 December
2023).
Note 22b
Significant shareholders
The sole direct shareholder of UBS AG is UBS Group AG, which holds 100% of UBS AG shares. These shares are entitled
to voting
rights. Indirect shareholders of
UBS AG
included in
the table below
are the direct
shareholders of UBS Group AG
(acting in their own name or
in their capacity as nominees for
other investors or beneficial owners) that
were registered
in the UBS Group AG share register with
3% or more of the share capital of UBS Group
AG as of 31 December 2024 or
as of 31 December
- The
shares and
share capital
of UBS AG
held by
indirect shareholders,
as shown
in the
table
below, represent
their relative holding of UBS Group
AG shares. They do not have voting rights in UBS
AG.
31.12.24
31.12.23
USD m, except where indicated
Share capital held
Shares held (%)
Share capital held
Shares held (%)
Significant direct shareholder of UBS AG
UBS Group AG
386
100
386
100
Significant indirect shareholders of UBS AG
DTC (Cede & Co.), New York
1
25
6
29
7
Nortrust Nominees Ltd., London
14
4
15
4
Chase Nominees Ltd., London
44
11
1 The US securities clearing organization DTC (Cede & Co.), New York,
“The Depository Trust Company”,
is a US securities clearing organization.
31.12.24
31.12.23
CHF m, except where indicated
Share capital held
Shares held (%)
Share capital held
Shares held (%)
Significant direct shareholder of UBS AG
UBS Group AG
380
100
380
100
Significant indirect shareholders of UBS AG
DTC (Cede & Co.), New York
1
25
6
28
7
Nortrust Nominees Ltd., London
14
4
15
4
Chase Nominees Ltd., London
43
11
1 The US securities clearing organization DTC (Cede & Co.), New York”,
is a US securities clearing organization.
UBS AG standalone financial statements
(audited)
41
Note 23
Post-employment benefit plans
a) Assets related to defined benefit plans
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Net defined benefit assets for defined benefit plans
1
428
344
388
290
Total assets for defined benefit plans
428
344
388
290
1 As of 31 December 2024, USD 428m (CHF
388m) mainly reflected USD 362m (CHF 329m) for the UBS UK
defined benefit plan, USD 36m (CHF 33m) for the Credit
Suisse Guernsey defined benefit plan, USD 22m
(CHF 20m) for
the UBS
US Investment
Bank defined
benefit plan
and USD 6m
(CHF 6m) for
the Credit
Suisse Swiss
pension plan.
As of
31 December 2023,
USD 344m
(CHF 290m)
mainly reflected
USD 341m
(CHF 287m) for the UBS UK defined benefit plan and USD 3m (CHF 2m) for the UBS US defined benefit plan.
b) Liabilities related to defined benefit plans
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Provision for Swiss pension plans
0
0
0
0
Net defined benefit liabilities for defined benefit plans
1
61
66
55
56
Total provision for defined benefit plans
61
66
55
56
Bank accounts at UBS and UBS debt instruments held by
Swiss pension funds
293
11
266
10
UBS derivative financial instruments held by Swiss pension funds
15
34
14
29
Total liabilities related to defined benefit plans
369
112
335
94
1 As of
31 December
2024, USD
61m (CHF
55m) mainly
reflected USD 35m
(CHF 32m) for
the UBS
US plans,
USD 12m (CHF 11m)
for the
UBS UK plan
and USD 8m
(CHF 7m)
for the
UBS Taiwan
plan. As
of
31 December 2023, USD 66m (CHF 56m) mainly reflected USD 37m (CHF 31m) for the UBS US plans, USD 14m
(CHF 12m) for the UBS UK plan and USD 11m (CHF 9m) for the UBS Taiwan
plan.
c) Swiss pension plan
USD m
CHF m
As of or for the year ended
31.12.24
31.12.23
31.12.24
31.12.23
Pension plan surplus
1
1,195
343
1,085
288
Economic benefit / (obligation) of UBS AG
6
0
6
0
Change in economic benefit / (obligation) recognized
in the income statement
0
0
0
0
Employer contributions in the period recognized in the income
statement
177
28
157
25
Performance awards-related employer contributions accrued
7
3
6
3
Total pension expense recognized in the income statement within Personnel expenses
184
31
163
28
1 The pension
plan surplus is
determined in accordance
with Swiss GAAP
(FER 26) and consists
of the reserve
for the fluctuation
in asset value
and a prepaid
contribution. The
reserve for the
fluctuation did not
represent an economic benefit for UBS AG in accordance with Swiss GAAP (FER 16) as of both 31 December 2024 and 31 December 2023.
UBS AG has elected to apply
FER 16 for its Swiss pension
plan and IFRS Accounting Standards
(IAS 19) for its non-Swiss
defined
benefit
plans. However,
remeasurements
of the
defined
benefit
obligations
and assets
for
non-Swiss
defined
benefit plans are recognized in the
income statement rather than directly in equity.
In 2024,
an expense of
USD 277m
(CHF 243m)
was recognized in
the income
statement, driven by
expenses of USD 130m
(CHF 116m) related to defined contribution
plans and USD 148m (CHF 127m) related
to defined benefit plans. In 2023,
an
expense
of
USD
124m
(CHF
115m)
was
recognized
in
the
income
statement,
driven
by
expenses
of
USD
76m
(CHF 68m) related to defined contribution plans and USD 49m (CHF
47m) related to defined benefit plans.
The
Swiss
pension
plans
had
an
employer
contribution
reserve
of
USD
6m
as
of
31 December
2024
and
none
as
of
31 December 2023.
›
Refer to Note 2 for more information
›
Refer to “Note 26 Post-employment benefit plans”
in the “Consolidated financial statements”
section of the UBS AG Annual
Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more information about defined benefit plans
in
accordance with IFRS Accounting Standards
UBS AG standalone financial statements
(audited)
42
Note 24
Related parties
Transactions
with related parties
are conducted at
internally agreed transfer prices
or at arm’s-length terms
and neither
involve more
than the normal
risk of collectability
nor contain any
other unfavorable
features for
the firm. Loans,
fixed
advances
and
mortgages
granted
to
non-independent
members
of
the
governing
bodies
in
the
ordinary
course
of
business are also on substantially the same terms and conditions that are available to other
employees, including interest
rates
and collateral.
Independent
members
of the
governing bodies
are
granted
loans
and mortgages
in the
ordinary
course of business at general market conditions.
31.12.24
31.12.23
USD m
Amounts due from
Amounts due to
Amounts due from
Amounts due to
Qualified shareholders
1
3,099
123,802
4,344
77,258
of which: due from / to customers
2,047
2,590
3,804
2,535
of which: funding received from UBS Group AG measured at amortized
cost
113,898
70,620
of which: funding received from UBS Group AG designated
at fair value
4,998
2,711
Subsidiaries
187,707
116,401
116,967
68,654
of which: due from / to banks
88,211
73,492
35,235
51,206
of which: due from / to customers
33,376
4,869
35,319
1,267
of which: receivables / payables from securities financing transactions
17,475
35,526
15,979
15,121
of which: funding provided to significant regulated subsidiaries
eligible as total loss-
absorbing capacity
43,652
29,380
Affiliated entities
2
502
1,397
16,644
2,004
of which: due from / to banks
0
0
14,821
1,194
of which: due from / to customers
416
889
904
232
External auditors
23
4
Other related parties
3
63
21
2
1 The qualified shareholder of UBS AG is UBS Group
AG.
2 Affiliated entities of UBS AG are all direct subsidiaries
of UBS Group AG, including Credit Suisse
AG as of 31 December 2023.
3 Includes amounts due
to / from other participations.
31.12.24
31.12.23
CHF m
Amounts due from
Amounts due to
Amounts due from
Amounts due to
Qualified shareholders
1
2,815
112,424
3,656
65,027
of which: due from / to customers
1,859
2,352
3,201
2,134
of which: funding received from UBS Group AG measured at amortized
cost
103,431
59,440
of which: funding received from UBS Group AG designated
at fair value
4,539
2,282
Subsidiaries
170,457
105,704
98,450
57,785
of which: due from / to banks
80,105
66,738
29,657
43,099
of which: due from / to customers
30,309
4,422
29,728
1,067
of which: receivables / payables from securities financing transactions
15,869
32,261
13,450
12,727
of which: funding provided to significant regulated subsidiaries
eligible as total loss-
absorbing capacity
39,640
24,729
Affiliated entities
2
456
1,268
14,009
1,687
of which: due from / to banks
0
0
12,475
1,005
of which: due from / to customers
378
808
761
195
External auditors
20
3
Other related parties
3
58
19
2
1 The qualified shareholder of UBS AG is UBS Group
AG.
2 Affiliated entities of UBS AG are all direct subsidiaries
of UBS Group AG,
including Credit Suisse AG as of 31 December 2023.
3 Includes amounts due
to / from other participations.
As
of
31 December
2024,
off-balance
sheet
positions
related
to
subsidiaries
amounted
to
USD 14.2bn
(CHF 12.9bn)
(31 December 2023:
USD 8.6bn
(CHF 7.2bn)),
of which
USD 8.4bn
(CHF 7.6bn)
related
to guarantees
to third
parties
(31 December 2023:
USD 6.4bn (CHF 5.4bn))
and USD 1.9bn
(CHF 1.7bn) related
to loan
commitments (31
December
2023: USD 0.5bn (CHF 0.4bn)).
As of 31 December 2024, there were no off-balance sheet positions related to affiliates
(31 December 2023: USD 1.0bn
(CHF 0.8bn)).
Loans to and deposits from members of governing bodies
were immaterial for all periods presented.
UBS AG standalone financial statements
(audited)
43
Note 25
Fiduciary transactions
USD m
CHF m
31.12.24
31.12.23
31.12.24
31.12.23
Fiduciary deposits
2,435
39
2,211
33
of which: placed with third-party banks
2,435
39
2,211
33
of which: placed with subsidiaries and affiliated entities
0
0
0
0
Total fiduciary transactions
2,435
39
2,211
33
Fiduciary transactions encompass
transactions entered into
by UBS AG that result
in holding or placing assets
on behalf
of
individuals,
trusts,
defined
benefit
plans
and
other
institutions.
Unless
the
recognition
criteria
for
the
assets
are
satisfied, these assets and the
related income are
excluded from UBS AG’s balance
sheet and income statement but
are
disclosed
in
this
Note
as
off-balance
sheet
fiduciary
transactions.
Client
deposits
that
are
initially
placed
as
fiduciary
transactions with UBS
AG may
be recognized on
UBS AG’s
balance sheet in
situations in
which the
deposit is
subsequently
placed within UBS AG. In such cases, these deposits are
not reported in the table above.
Note 26a
Invested assets and net new money
USD bn
CHF bn
As of or for the year ended
As of or for the year ended
31.12.24
31.12.23
31.12.24
31.12.23
Discretionary assets
106
60
96
51
Other invested assets
799
434
726
365
Total invested assets
1
905
494
822
416
Net new money
(12)
23
(11)
21
1 Includes no double counts.
Note 26b
Development of invested assets
USD bn
CHF bn
31.12.24
31.12.23
31.12.24
31.12.23
Total invested assets at the beginning of the year
1
494
468
416
432
Invested assets recognized upon the merger of
UBS AG and Credit Suisse AG
2
382
345
Net new money
(12)
23
(11)
21
Market movements
3
67
3
61
1
Foreign currency translation
(10)
2
25
(37)
Other effects
(16)
(1)
(14)
(1)
Total invested assets at the end of the year
1
905
494
822
416
1 Includes no double
counts.
2 Invested assets
recognized upon the
merger of UBS
AG and Credit
Suisse AG were
measured and reported
as of 31
May 2024, the
merger effective date,
in alignment with
UBS
accounting policies outlined in Note 31 to the UBS AG consolidated financial statements in the UBS AG Annual Report 2024.
3 Includes interest and dividend income.
›
Refer to “Note 31 Invested assets and net
new money” in the “Consolidated financial statements”
section of the UBS AG Annual
Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more information
UBS AG standalone
44
Statement of proposed appropriation of total profit
and dividend distribution
The Board of Directors (the BoD) proposes that the Annual General Meeting
of Shareholders (the AGM) on 8 April 2025
approve
the
appropriation
of
total
profit and
an
ordinary
dividend
distribution
of
USD 6,500m
out
of the
total
profit
(USD 5,138m) and out
of the
Voluntary earnings
reserve
(USD 1,362m). Furthermore, the
BoD proposes
the appropriation
of an
amount of
USD 6,500m out
of the
Voluntary earnings
reserve
to a
special dividend
reserve within
the
Voluntary
earnings reserve
.
Appropriation of and distribution out of total profit
USD m
CHF m
For the year ended
For the year ended
31.12.24
31.12.24
1
Net profit for the period
5,138
4,684
Profit / (loss) carried forward
0
0
Total profit available for appropriation
5,138
4,684
Appropriation of total profit
Dividend distribution
(5,138)
(4,684)
Profit / (loss) carried forward
0
0
Proposed dividend out of voluntary earnings reserve
Total voluntary earnings reserve before distribution
13,157
11,311
Dividend distribution
(1,362)
(1,219)
Total voluntary earnings reserve after distribution
11,795
10,092
of which: appropriation to special dividend reserve
within voluntary earnings reserve
2
6,500
5,903
1 For illustrative purposes, the proposed dividend of
USD 6,500m is converted to
Swiss francs at the closing exchange
rate as of 31 December 2024
(CHF / USD 1.10), which
equals a Swiss franc dividend
of CHF 5,903m
and would result in a distribution of CHF
4,684m out of total profit and the
remainder of CHF 1,219m out of the
voluntary earnings reserve.
2 The Voluntary earnings
reserve includes a special dividend reserve of
USD 6,500m (CHF 5,903m) available for appropriation. The decision on the special dividend payment is intended to be made at an Extraordinary General Meeting in the second half of 2025, considering any proposed
requirements from Switzerland’s ongoing review of its capital regime.
UBS AG standalone regulatory information
45
UBS AG standalone regulatory information
Key metrics for the fourth quarter of 2024
The
table
below
is
based
on
Basel
Committee
on
Banking
Supervision
(BCBS)
Basel III
rules
and
IFRS
Accounting
Standards.
During the fourth quarter
of 2024, tier 1 capital decreased
by USD 8.5bn to USD 90.9bn.
Common equity tier 1 (CET1)
capital decreased by USD 8.1bn to
USD 75.1bn, mainly as operating profit before
tax of USD 1.1bn was more
than offset
by additional accruals for
capital returns to
UBS Group AG of
USD 8.5bn. As of 31
December 2024, accruals for
capital
returns to UBS Group
AG amounted to
USD 13.0bn, reflecting
a proposed
ordinary dividend
distribution of
USD 6.5bn
and the
appropriation of USD 6.5bn
to a
special dividend reserve,
both subject to
approval at the
Annual General Meeting
in the
second quarter
of 2025.
The
decision on
the
distribution
of the
special dividend
is intended
to be
made
at an
Extraordinary General
Meeting in
the second
half of
2025, considering
any proposed
requirements from
Switzerland’s
ongoing review of its capital regime.
Additional tier 1 (AT1)
capital issued by
the Group and
on lent to
UBS AG decreased
by USD 0.4bn to USD 15.8bn,
mainly
reflecting negative impacts from interest rate risk hedge,
foreign currency translation and other effects.
Phase-in
risk-weighted
assets
(RWA)
decreased
by
USD 57.2bn
to
USD 508.0bn
during
the
fourth
quarter
of
2024,
primarily driven by
decreases in participation
RWA as a
result of capital
repatriations and credit
and counterparty
credit
risk RWA.
During the fourth quarter of 2024, the leverage ratio denominator (the LRD) decreased by USD 45.1bn to USD 899.3bn,
driven by currency effects
of USD 31.2bn and asset
size and other movements
of USD 13.9bn. The
asset size and other
movements were mainly driven by lower lending balances,
investments in subsidiaries as a result of capital repatriations,
trading
portfolio
assets
and
disposals
of
high-quality
liquid
asset
(HQLA)
portfolio
securities,
partly
offset
by
higher
securities financing transactions and derivative exposures.
Correspondingly, the CET1 capital
ratio of UBS AG standalone
increased to 14.8% from
14.7%, reflecting the decrease
in RWA, partly offset by the decrease in CET1 capital. The firm’s Basel III leverage ratio
decreased to 10.1% from 10.5%,
reflecting the decrease in tier 1 capital, partly offset by the
aforementioned decrease in the LRD.
The
quarterly
average
liquidity
coverage
ratio
(the
LCR)
of
UBS
AG
standalone
decreased
38.3 percentage
points
to
244.0%, remaining above
the prudential requirement
communicated by the
Swiss Financial Market Supervisory
Authority
(FINMA).
The
movement
in
the
quarterly
average
LCR was
primarily
driven
by
a
decrease
in
HQLA
of
USD 27.5bn
to
USD 142.7bn, mainly reflecting lower cash available, driven by decreases
in debt issued measured at amortized cost and
short-term borrowings, higher funding provided to
subsidiaries, and an increase in
non-HQLA-related securities financing
transactions and funding of trading assets.
The effect of the decrease in
HQLA was partly offset by a
decrease in net cash
outflows
of
USD 1.8bn
to
USD 58.6bn,
reflecting
lower
net
outflows
from
derivatives
and
higher
net
inflows
from
securities financing transactions, partly offset by lower inflows
from intercompany funding to subsidiaries.
As of 31 December 2024, the
net stable funding ratio decreased
3.1 percentage points to 97.3%,
remaining above the
prudential requirement
communicated by
FINMA. Available
stable funding
decreased by
USD 36.2bn to
USD 410.2bn,
mainly driven
by lower
regulatory capital,
deposits and
debt issued.
Required stable
funding decreased
by USD 23.1bn
to USD 421.8bn, mainly driven by lower lending assets and investments
in subsidiaries.
UBS AG standalone regulatory information
46
KM1: Key metrics
USD m, except where indicated
31.12.24
30.9.24
30.6.24
31.3.24
31.12.23
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
75,051
83,113
82,329
51,971
52,553
2
Tier 1
90,881
99,363
97,461
66,175
65,051
3
Total capital
90,882
99,365
97,461
66,175
65,052
Risk-weighted assets (amounts)
1
4
Total risk-weighted assets (RWA)
507,964
565,180
554,478
356,821
354,083
4a
Minimum capital requirement
2
40,637
45,214
44,358
28,546
28,327
Risk-based capital ratios as a percentage of RWA
1
5
CET1 ratio (%)
14.77
14.71
14.85
14.56
14.84
6
Tier 1 ratio (%)
17.89
17.58
17.58
18.55
18.37
7
Total capital ratio (%)
17.89
17.58
17.58
18.55
18.37
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
2.50
2.50
2.50
2.50
2.50
9
Countercyclical buffer requirement (%)
0.19
0.19
0.18
0.12
0.12
9a
Additional countercyclical buffer for Swiss mortgage loans
(%)
0.00
0.00
0.00
0.00
0.00
10
Bank G-SIB and / or D-SIB additional requirements (%)
3
11
Total of bank CET1 specific buffer requirements (%)
4
2.69
2.69
2.68
2.62
2.62
12
CET1 available after meeting the bank’s minimum capital requirements (%)
5
9.89
9.58
9.58
10.06
10.34
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
899,348
944,404
921,796
641,315
643,939
14
Basel III leverage ratio (%)
10.11
10.52
10.57
10.32
10.10
Liquidity coverage ratio (LCR)
6
15
Total high-quality liquid assets (HQLA)
142,661
170,179
137,003
123,742
129,961
16
Total net cash outflow
58,620
60,445
50,458
46,115
50,376
16a
of which: cash outflows
231,213
228,228
197,846
174,814
163,836
16b
of which: cash inflows
172,593
167,783
147,387
128,700
113,460
17
LCR (%)
243.95
282.26
269.55
268.69
260.16
Net stable funding ratio (NSFR)
7
18
Total available stable funding
410,197
446,435
448,005
274,568
279,758
19
Total required stable funding
421,792
444,875
437,275
288,322
304,938
20
NSFR (%)
97.25
100.35
102.45
95.23
91.74
1 Based on phase-in rules for RWA. Refer to “Swiss systemically relevant bank going and gone concern requirements and information” below for more information.
2 Calculated as 8% of total RWA, based on total
capital minimum requirements, excluding CET1 buffer requirements.
3 Swiss SRB going and gone concern requirements and information for UBS AG standalone are provided below in this section.
4 Excludes non-
BCBS capital buffer requirements for risk-weighted
positions that are directly or indirectly backed
by residential properties in Switzerland.
5 Represents the CET1 ratio that
is available to meet buffer requirements.
Calculated as the CET1 ratio minus the BCBS CET1 capital requirement and, where applicable, minus the BCBS tier 2 capital requirement met with CET1 capital.
6 Calculated after the application of haircuts, inflow
and outflow rates,
as well as, where
applicable, caps on
Level 2 assets and cash
inflows. Calculated based
on an average of
64 data points in
the fourth quarter of
2024 and 65 data
points in the third quarter
of
- For the prior-quarter
data points, refer to the
respective Pillar 3 Report, available under “Pillar
3 disclosures” at ubs.com/investors,
for more information.
7 In accordance with Art. 17h para.
3 and 4 of the
Liquidity Ordinance, UBS AG standalone is
required to maintain a minimum NSFR of at least 80%
without taking into account excess funding of UBS Switzerland AG
and 100% after taking into account such excess
funding.
Swiss systemically relevant bank going and gone concern
requirements and information
UBS AG standalone is considered a systemically relevant
bank (an SRB) under Swiss banking law and is subject to capital
regulations on a standalone basis.
The
capital
requirements
based
on
RWA
include
a
minimum
CET1
capital
requirement
of
10.26%,
including
a
countercyclical buffer
of 0.19%,
and a
total going
concern capital
requirement of
14.56%, including
a countercyclical
buffer of 0.19%. The capital requirements based
on the LRD include a
minimum CET1 capital requirement of 3.54% and
a total going concern leverage ratio requirement of 5.04%.
CET1 capital
and high
-trigger AT1
capital instruments
are eligible
as going
concern capital.
As of
31 December
2024,
one
remaining
outstanding
low-trigger
AT1
capital
instrument,
amounting
to
USD 1.2bn,
that
was
on
lent
from
UBS Group AG to UBS AG qualified as going concern capital,
as agreed with FINMA.
UBS AG standalone
is subject
to a
gone concern capital
requirement based
on the sum
of: (i) the
nominal value
of the
gone concern
instruments issued
by UBS
entities and
held by
the parent
firm; (ii) 75%
of the
capital requirements
resulting
from third-party exposure
on a standalone
basis; and (iii) a
buffer requirement equal
to 30% of
the Group’s gone
concern
capital requirement
on UBS
AG’s consolidated
exposure.
As of
1 January
2024, the
buffer requirement
has been
fully
phased
in.
The
gone
concern
capital
requirement
is
the
higher
of
RWA-
and
LRD-based
requirements,
calculated
separately. The gone concern
capital coverage ratio reflects how
much gone concern capital
is available to meet
the gone
concern requirement. Outstanding
high- and low-trigger
loss-absorbing tier 2 capital
instruments, non-Basel III-compliant
tier 2 capital instruments, and total
loss-absorbing capacity-eligible unsecured debt instruments are eligible
to meet gone
concern requirements until one year before maturity.
UBS AG standalone regulatory information
47
For direct and indirect investments,
including the holding of regulatory
capital instruments of UBS AG by
subsidiaries that
are active
in banking
and finance,
a FINMA
decree introduced
a risk-weighting
approach, with
a phase-in
period until
1 January 2028.
From 1 January
2019 onward,
the initial
risk weight
of these
investments of
200% is
being gradually
raised by 5 percentage
points per year
for Switzerland-domiciled
investments and
by 20 percentage
points per year
for
foreign-domiciled investments until the fully
applied risk weights are 250% and 400%,
respectively. As of 31 December
2024, the
applicable
phase-in risk
weights
were
230% for
Switzerland-domiciled
investments
and 320%
for
foreign-
domiciled investments.
›
Refer to “Capital and capital ratios of our
significant regulated subsidiaries” in the “Capital,
liquidity and funding, and balance
sheet” section of the UBS Group Annual Report 2024,
available under “Annual reporting” at
ubs.com/investors
, for more
information about the joint liability of UBS AG and
UBS Switzerland AG
The
tables
below
provide
details
of
the
Swiss
SRB
RWA-
and
LRD-based
going
and
gone
concern
requirements
and
information as required by FINMA; details regarding eligible
gone concern instruments are provided below.
Swiss SRB going and gone concern requirements and information
As of 31.12.24
RWA, phase-in
RWA, fully applied as of 1.1.28
LRD
USD m, except where indicated
in %
in %
in %
Required going concern capital
Total going concern capital
14.56
1
73,948
14.55
1
80,869
5.04
1
45,305
Common equity tier 1 capital
10.26
52,106
10.25
56,973
3.54
31,815
of which: minimum capital
4.50
22,858
4.50
25,008
1.50
13,490
of which: buffer capital
5.50
27,938
5.50
30,565
2.00
17,987
of which: countercyclical buffer
0.19
971
0.19
1,063
Maximum additional tier 1 capital
4.30
21,842
4.30
23,896
1.50
13,490
of which: additional tier 1 capital
3.50
17,779
3.50
19,450
1.50
13,490
of which: additional tier 1 buffer capital
0.80
4,064
0.80
4,446
Eligible going concern capital
Total going concern capital
17.89
90,881
16.35
90,881
10.11
90,881
Common equity tier 1 capital
14.77
75,051
13.51
75,051
8.35
75,051
Total loss-absorbing additional tier 1 capital
3.12
15,830
2.85
15,830
1.76
15,830
of which: high-trigger loss-absorbing additional tier 1 capital
2.87
14,585
2.62
14,585
1.62
14,585
of which: low-trigger loss-absorbing additional tier 1 capital
0.25
1,245
0.22
1,245
0.14
1,245
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
507,964
555,726
Leverage ratio denominator
899,348
Required gone concern capital
2
Higher of RWA-
or LRD-based
Total gone concern loss-absorbing capacity
75,339
Eligible gone concern capital
Total gone concern loss-absorbing capacity
92,174
Gone concern capital coverage ratio
122.35
1 Includes applicable add-ons
of 1.51% for risk-weighted
assets (RWA) phase-in,
1.50% for risk-weighted
assets (RWA) fully
applied, and 0.54%
for leverage ratio
denominator (LRD), of which
7 basis points for
RWA phase-in, 6 basis points for RWA fully applied and 4 basis points for LRD reflect the FINMA Pillar 2 capital add-on of USD 338m related to the supply chain finance funds matter at Credit Suisse.
2 A maximum
of 25% of the gone
concern requirements can be
met with instruments that have
a remaining maturity of
between one and two years.
Once at least 75% of
the minimum gone concern requirement
has been met
with instruments that have a remaining maturity of greater
than two years, all instruments that have a remaining maturity of
between one and two years remain eligible to be
included in the total gone concern capital.
UBS AG standalone regulatory information
48
Swiss SRB going and gone concern information
USD m, except where indicated
31.12.24
30.9.24
31.12.23
Eligible going concern capital
Total going concern capital
90,881
99,363
65,051
Total tier 1 capital
90,881
99,363
65,051
Common equity tier 1 capital
75,051
83,113
52,553
Total loss-absorbing additional tier 1 capital
15,830
16,250
12,498
of which: high-trigger loss-absorbing additional tier 1 capital
14,585
15,012
11,286
of which: low-trigger loss-absorbing additional tier 1 capital
1,245
1,239
1,212
Eligible gone concern capital
Total gone concern loss-absorbing capacity
92,174
96,470
54,452
Total tier 2 capital
204
286
533
of which: non-Basel III-compliant tier 2 capital
204
286
533
TLAC-eligible unsecured debt
91,970
96,184
53,920
Total loss-absorbing capacity
Total loss-absorbing capacity
183,055
195,833
119,504
Denominators for going and gone concern ratios
Risk-weighted assets, phase-in
507,964
565,180
354,083
of which: investments in Switzerland-domiciled subsidiaries
1
83,221
87,083
43,448
of which: investments in foreign-domiciled subsidiaries
1
162,098
200,092
121,374
Risk-weighted assets, fully applied as of 1.1.28
555,726
622,776
399,369
of which: investments in Switzerland-domiciled subsidiaries
1
90,458
94,656
48,276
of which: investments in foreign-domiciled subsidiaries
1
202,623
250,115
161,832
Leverage ratio denominator
899,348
944,404
643,939
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio, phase-in
17.9
17.6
18.4
of which: common equity tier 1 capital ratio, phase-in
14.8
14.7
14.8
Going concern capital ratio, fully applied as of 1.1.28
16.4
16.0
16.3
of which: common equity tier 1 capital ratio, fully applied as of 1.1.28
13.5
13.3
13.2
Leverage ratios (%)
Going concern leverage ratio
10.1
10.5
10.1
of which: common equity tier 1 leverage ratio
8.3
8.8
8.2
Capital coverage ratio (%)
Gone concern capital coverage ratio
122.3
120.1
112.5
1 Net exposures for direct and
indirect investments including holding of regulatory capital instruments in
Switzerland-domiciled subsidiaries and for direct and indirect investments including
holding of regulatory capital
instruments in foreign-domiciled subsidiaries
are risk-weighted at 230%
and 320%, respectively,
for the current year.
Risk weights will gradually
increase by 5 percentage
points per year for
Switzerland-domiciled
investments and 20 percentage points per year for foreign-domiciled investments until the fully applied risk weights of 250% and 400%, respectively,
are applied.
UBS AG standalone regulatory information
49
Climate risk
Our climate
strategy
and governance
are determined
and overseen
at the
UBS Group
level. Similarly,
we identify
and
manage climate
risks, including
climate-related
financial risks,
in our
own operations,
balance sheet,
client assets
and
supply chain at the UBS Group level.
Climate-related metrics for the UBS AG legal entity are presented
in the UBS Group Annual Report 2024.
›
Refer to “Our focus on sustainability” in the “How
we create value for our stakeholders” section and
to “Sustainability and
climate risk” in the “Risk management and control” section
of the UBS Group Annual Report 2024,
available under “Annual
reporting” at
ubs.com/investors
, for more information
›
Refer to “Our sustainability and impact strategy” in
the “Strategy” section of the UBS Group Sustainability
Report 2024, available
under “Annual reporting” at
ubs.com/investors
, for more information
Cautionary statement
|
This report
and the
information contained
herein are
provided solely
for information
purposes, and
are not to
be construed
as solicitation
of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating
to securities of or relating to UBS Group AG, UBS AG or their affiliates should be made on the basis of this report. Refer to UBS’s most recent annual report on
Form 20-
F,
quarterly reports and other information
furnished to or filed with
the US Securities and Exchange
Commission (the SEC) on Form
6-K, available at
ubs.com/investors
, for additional information.
Rounding |
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 does not
incorporate
the contents
of any such websites into this report.
UBS Group AG
P.O. Box
CH-8098 Zurich
ubs.com
Basel, 17 March 2025
Consent of Independent Registered Public
Accounting Firm
We consent to the incorporation by reference in each of the following
registration statements of UBS AG:
(1)
on Form F-3 (Registration Number 333-283672),
and each related prospectus currently outstanding under
such registration statement,
(2)
the base prospectus of Corporate Asset Backed Corporation
(CABCO) dated 23 June 2004 (Registration
Number 333-111572),
(3)
the Form 8-K of CABCO dated 23 June 2004
(SEC File Number 001-13444), and
(4)
the Prospectus Supplements relating to the CABCO Series
2004-101 Trust dated 10 May 2004
(Registration Number 033-91744) and 17 May
2004 (Registration Number 033-91744-05),
of our report dated 14 March 2025, with respect to the standalone
financial statements of UBS AG for the
year
ended 31 December 2024 included in this
Report of Foreign Private Issuer (Form 6-K)
dated 17 March 2025, filed
with the Securities and Exchange Commission.
/s/ Ernst & Young Ltd
This Form 6-K is hereby incorporated by reference into (1) the registration statement
of UBS AG on Form F-3
(Registration Number 333-283672), and into each prospectus outstanding under
the foregoing registration
statement, (2) any outstanding offering circular or similar document issued
or authorized by UBS AG that
incorporates by reference any Forms 6-K of UBS AG that are incorporated
into its registration statements filed with
the SEC, and (3) the base prospectus of Corporate Asset Backed Corporation
(“CABCO”) dated June 23, 2004
(Registration Number 333-111572), the Form 8-K of CABCO filed and dated June 23, 2004 (SEC File Number
001-13444), and the Prospectus Supplements relating to the CABCO Series
2004-101 Trust dated May 10, 2004
and May 17, 2004 (Registration Number 033-91744 and 033-91744-05).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
UBS AG
By: _/s/ Steffen Henrich__________
Name: Steffen Henrich
Title: Controller
By: _/s/ David Kelly _____________
Name:
David Kelly
Title:
Managing Director
Date:
March 17, 2025