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: May 8, 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 First Quarter 2025 Report of UBS AG,
which appears immediately following this
page.
UBS AG
First quarter
2025 report
Corporate calendar UBS AG
Information about future publication dates is generally
available at
ubs.com/global/en/investor-relations/events/calendar.html
Contacts
General inquiries
ubs.com/contact
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London +44-207-567-8000
New York +1-212-821-3000
Hong Kong SAR +852-2971-8888
Singapore +65-6495-8000
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manages relationships with
institutional investors, research
analysts and credit rating agencies.
ubs.com/investors
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New York +1-212-882-5734
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UBS’s Media Relations team manages
relationships with global media and
journalists.
ubs.com/media
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Imprint
Publisher: UBS AG, Zurich, Switzerland | ubs.com
Language: English
© UBS 2025. The key symbol and UBS are among
the registered and unregistered
trademarks of UBS. All rights reserved.
1.
UBS AG
UBS AG consolidated performance
2.
Business divisions and
Group Items
3.
Risk, capital, liquidity and funding,
and balance sheet
Liquidity and funding management
Balance sheet and off-balance sheet
4.
Consolidated
financial statements
UBS AG interim consolidated financial
Appendix
Alternative performance measures
Abbreviations frequently used in
1
UBS AG first quarter 2025 report
2
Terms used in this report, unless the context requires otherwise
“UBS”, “UBS Group”, “UBS Group AG consolidated”, “Group”
UBS Group AG and its consolidated subsidiaries
“UBS AG” and “UBS AG consolidated”, “we”, “us” and “our”
UBS AG and its consolidated subsidiaries
“Credit Suisse AG”
Credit Suisse AG and its consolidated subsidiaries before the merger
with UBS AG
“Credit Suisse Group“ and “Credit Suisse”
Pre-acquisition Credit Suisse Group
“UBS Group AG”
UBS Group AG on a standalone basis
“UBS Switzerland AG”
UBS Switzerland AG on a standalone basis
“1m”
One million, i.e. 1,000,000
“1bn”
One billion, i.e. 1,000,000,000
“1trn”
One trillion, i.e. 1,000,000,000,000
In this report, unless the context requires otherwise,
references to any gender shall apply to all genders.
Alternative performance measures
An alternative performance measure (an APM) is a financial measure of historical or
future financial performance,
financial position
or cash
flows other
than a
financial measure
defined or
specified in
the applicable
recognized
accounting standards or in other applicable regulations. A number of APMs are reported in UBS’s external reports
(annual, quarterly and
other reports). APMs
are used to provide
a more complete
picture of operating
performance
and to reflect
management’s view of
the fundamental
drivers of the
business results.
A definition of
each APM, the
method used to calculate
it and the information
content are presented
under “Alternative performance
measures”
in the
appendix to
this report.
These APMs
may qualify
as non-GAAP
measures as
defined by
US Securities
and
Exchange Commission (SEC) regulations.
Comparability
Comparative information in this report is
presented as follows.
Profit and loss information and
other flow-based information for the first
quarter of 2025 and
the fourth quarter
of 2024 is
based entirely on consolidated
data following the merger
of UBS AG
and Credit Suisse
AG. Profit and
loss information and other flow-based information for the first quarter of 2024 includes pre-merger UBS AG data
only.
Balance
sheet
information
as
at
31 March
2025
and
31 December
2024
includes
post-merger
consolidated
information. Balance sheet dates prior to 30 June
2024 reflect pre-merger UBS AG information
only.
Comparison between UBS AG consolidated
and UBS Group AG consolidated
A
comparison
of
selected
financial
and
capital
information
of
UBS
AG
consolidated
and
of
UBS
Group
AG
consolidated is provided after the Notes to the UBS AG
interim consolidated financial statements.
UBS AG first quarter 2025 report
3
UBS AG consolidated key figures
UBS AG consolidated key figures
As of or for the quarter ended
USD m, except where indicated
31.3.25
31.12.24
31.3.24
Results
Total revenues
12,163
11,317
9,108
Credit loss expense / (release)
124
241
52
Operating expenses
10,701
11,017
7,677
Operating profit / (loss) before tax
1,339
59
1,379
Net profit / (loss) attributable to shareholders
1,028
(257)
1,006
Profitability and growth
1
Return on equity (%)
4.3
(1.1)
7.3
Return on tangible equity (%)
4.6
(1.2)
8.2
Return on common equity tier 1 capital (%)
5.7
(1.3)
9.1
Return on leverage ratio denominator, gross (%)
3.1
2.9
3.3
Cost / income ratio (%)
88.0
97.3
84.3
Net profit growth (%)
2.2
n.m.
0.2
Resources
Total assets
1,547,489
1,568,060
1,116,806
Equity attributable to shareholders
96,553
94,003
55,046
Common equity tier 1 capital
2
70,756
73,792
43,863
Risk-weighted assets
2
481,539
495,110
328,732
Common equity tier 1 capital ratio (%)
2
14.7
14.9
13.3
Going concern capital ratio (%)
2
18.5
18.1
17.7
Total loss-absorbing capacity ratio (%)
2
38.0
36.7
34.3
Leverage ratio denominator
2
1,565,845
1,523,277
1,078,591
Common equity tier 1 leverage ratio (%)
2
4.5
4.8
4.1
Liquidity coverage ratio (%)
3
180.3
186.1
191.4
Net stable funding ratio (%)
122.8
124.1
121.6
Other
Invested assets (USD bn)
1,4
6,153
6,087
4,672
Personnel (full-time equivalents)
67,373
68,982
47,635
1 Refer to “Alternative performance measures” in
the appendix to this
report for the definition
and calculation method.
2 Based on the Swiss systemically
relevant bank framework. Refer to
the “Capital management”
section of this
report for more
information.
3 The disclosed
ratios represent quarterly
averages for
the quarters presented
and are calculated
based on an
average of 62
data points in
the first quarter
of 2025,
64 data points in the
fourth quarter of 2024
and 61 data
points in the first
quarter of 2024. Refer
to the “Liquidity and
funding management” section
of this report for
more information.
4 Consists of invested
assets for Global Wealth Management, Asset Management (including invested assets from associates) and Personal & Corporate Banking. Refer to “Note 31 Invested assets and
net new money” in the “Consolidated
financial statements” section of the UBS AG Annual Report 2024, available under “Annual
reporting” at ubs.com/investors, for more information.
UBS AG first quarter 2025 report |
UBS AG | Recent developments
4
UBS AG
Management report
Recent developments
Integration of Credit Suisse
We continue to
be on track
to substantially
complete the
integration of
Credit Suisse
by the end
of 2026.
Our focus
currently remains on client account migrations
and infrastructure decommissioning.
We have
commenced our Swiss
business migrations and
are preparing for
the first
main wave,
which is
planned
for the second
quarter of 2025,
and we aim
to complete the
Swiss booking center migrations
by the end
of the
first
quarter
of
2026.
In
the
first
quarter
of
2025
we
completed
the
consolidation
of
our
branch
network
in
Switzerland, and we
have merged 95
branches with
existing branches
since the merger
of UBS Switzerland
AG and
Credit Suisse (Schweiz) AG in July 2024.
In March 2025, we completed
the sale of Select
Portfolio Servicing, the US mortgage
servicing business of Credit
Suisse, which was
managed in
Non-core and
Legacy. We recognized
a loss
of USD 11m
upon the completion
of
the transaction.
The completion
of the
transaction also
reduced UBS AG’s
RWA by
around USD 1.3bn
and UBS AG’s
leverage ratio denominator by around USD 1.7bn.
We
entered
into
an
agreement
in
October
2024
to
sell
to
American
Express
Swiss
Holdings
GmbH
(American
Express) its
50% interest
in Swisscard
AECS GmbH
(Swisscard), a
joint venture
in Switzerland
between UBS
and
American Express, subject to certain closing conditions.
Also in October 2024, we entered into an agreement
with
Swisscard
to
transition
the
Credit
Suisse-branded
card
portfolios
to
UBS.
In
January
2025,
we
completed
the
purchase of the
card portfolios, with
the actual client
migration expected to
take place over
the following quarters.
The two transactions
are expected to
result in similar profit
and loss effects
over the course
of 2025 and, therefore,
on a net basis are not expected to have a material impact for the Group. In the first quarter of 2025, we recorded
an expense
of USD 180m
related to
the acquisition
of the
card portfolio
and a
gain of
USD 64m related
to our
investment in Swisscard, and we expect to record a gain on the completion
of the sale of our interest in Swisscard
later in 2025.
Regulatory and legal developments
Developments in Switzerland aimed at strengthening
financial stability
Based on its report
on banking stability from April
2024, the Swiss Federal Council is
expected to launch a public
consultation on the implementation of its
proposed measures at the
ordinance level and present its
proposals for
legislative amendments to
the Swiss
Parliament in June
- The capital
treatment of foreign
participations will
be regulated
at the
legislative level, rather
than at
the ordinance
level; therefore
the respective
measures will
be
presented to the Parliament. Certain proposals that are
under consideration, in particular the capital treatment of
foreign participations, if adopted, could
require UBS Group AG and UBS AG to
hold a significantly higher level of
capital. However,
the ultimate impact of the proposals on UBS cannot yet be assessed, due
to the broad range of
possible outcomes at the end of the regulatory process.
Mutual recognition agreement with the UK
approved by the Swiss Parliament
In March
2025, the
Swiss Parliament
approved the
Berne Financial
Services Agreement
(the BFSA)
with the
UK,
which facilitates cross-border financial activities based on a new model for
regulatory cooperation and outcomes-
based
mutual
recognition of
domestic
rules.
The
BFSA
is
supplemented by
an
enhanced
and
closer
supervisory
process and additional
supervisory arrangements where new
market access is
granted. It is
expected that the
UK
legislation will be finalized by the end of 2025.
UBS AG first quarter 2025 report |
UBS AG | Recent developments
5
Developments related to the implementation
of the final Basel III standards
In Switzerland, the amendments to
the Capital Adequacy Ordinance
(the CAO) that incorporate
the final Basel III
standards into Swiss law entered into force on
1 January 2025. The adoption of the final Basel III standards led to
a
similar impact
on UBS AG
consolidated as
on UBS Group,
with an
USD 8.6bn reduction
in UBS AG’s
RWA.
A
USD 6.5bn
increase
in
market
risk
RWA
resulting
from
the
implementation
of
the
Fundamental
Review
of
the
Trading Book (the FRTB) framework was more
than offset by a USD 9.0bn
reduction in operational risk
RWA and a
USD 6.1bn reduction in credit
and counterparty credit risk
RWA. The output
floor,
which is being phased
in until
2028, is currently not binding for UBS AG.
In
January
2025,
the
UK
Prudential
Regulation
Authority
(the
PRA)
announced
that
it
has
postponed
the
implementation of the final Basel III standard by one year, to 1 January 2027, citing the need for greater clarity on
US plans. The
PRA left open the
possibility of further postponement. The
date for the
full phase-in of the
output
floor continues to
be 1 January 2030.
With UBS’s entities
not being subject
to the
corresponding UK regulation,
the overall impact on UBS is expected to be
limited.
In the
EU, the
final Basel III
requirements became
applicable as
of 1 January
2025, except
for the
FRTB requirements,
the
implementation
of
which
has
been
delayed
until
at
least
1 January
2026.
In
March
2025,
the
European
Commission (the EC)
launched a consultation
to determine the approach
for implementing the
FRTB requirements,
as recent international developments
indicate further delays
in the FRTB implementation,
particularly in the US and
the UK. UBS Europe
SE is subject to
Basel III regulations in
the EU. The impact
on UBS can only
be determined once
the EC publishes its final decision.
In
the
US,
banking
agencies,
including
the
Federal
Reserve
Board,
have
been
discussing
amendments
to
their
original proposals regarding
the implementation of the
final Basel III standards. The
timing and the content
of a re-
proposal remain uncertain. UBS
Americas Holding LLC is
subject to the
US requirements. The
impact on UBS
can
only be determined once the US publishes
its final rules.
Developments in the EU to simplify regulations
regarding environmental, social and governance
matters
In February
2025, the
EC published
proposals to
simplify the
requirements of the
Corporate Sustainability
Reporting
Directive
(the
CSRD),
the
Taxonomy
Regulation
and
the
Corporate
Sustainability
Due
Diligence
Directive
(the
CSDDD), with
the overarching
aims of
reducing the
reporting and
regulatory burden,
in particular
for small
and
medium-sized
enterprises, and
enhancing
EU
competitiveness. In
April
2025,
the
European
Parliament
and
the
Council approved the
proposed directive that
delays certain application
dates of the
CSRD and the
CSDDD, with
that directive
entering into
force
on 17 April
- The
EU Member
States have
to transpose
this directive
into
national law by
31 December 2025. The proposal
to amend certain
requirements in the
CSRD and the
CSDDD is
expected to be
adopted later in
- The EC
also proposed changes
to the reporting
requirements under Article 8
of the EU Taxonomy
Regulation that are expected
to be adopted in
the second quarter of
- UBS entities are
within the scope
of the regulations.
The impact of
the proposals on
UBS cannot yet
be assessed, as
they are subject
to changes during the regulatory process.
US climate disclosure requirements
In March
2025, the
US Securities
and Exchange
Commission (the
SEC) announced
that it
would end
its legal
defense
of its 2024 climate disclosure regulation. The implementation of the regulation had previously been suspended by
the SEC as
a result of
legal challenges.
Certain US
states have
adopted or
intend to
adopt specific
state-level climate
risk disclosure
requirements for
companies operating
in their
respective states.
UBS will
monitor these
developments
to assess impact as rules are finalized.
Other developments
Collaboration with 360 ONE WAM Ltd
In April 2025, we entered into a strategic
collaboration with 360 ONE WAM Ltd (360 ONE), one
of India’s largest
wealth and asset management firms. As part of the agreement, we plan to acquire warrants for a 4.95% interest
in 360 ONE and
will transfer
our onshore wealth management
business in India
to 360 ONE, while
360 ONE clients
booked in Singapore will be served by
UBS Singapore. The closing of the transactions is
subject to approvals, and
the transactions are not expected to have a material
impact for UBS.
UBS AG first quarter 2025 report |
UBS AG | Recent developments
6
Resolution of legacy Credit Suisse cross-border
matter
On 5 May 2025,
Credit Suisse Services AG
entered into an agreement with
the U.S. Department
of Justice to settle
a long-running tax-related
investigation into
Credit Suisse's implementation
of its 2014
plea agreement, relating to
its legacy cross-border business
with US taxpayers
booked in Switzerland,
which began before UBS
acquired Credit
Suisse. Credit Suisse Services AG
pleaded guilty to one count of
conspiracy to aid and assist in
the preparation of
false
income
tax
returns
and
will
pay
an
aggregate
of
USD 371.9m.
Credit
Suisse
Services AG
also
contemporaneously
entered
into
a
non-prosecution
agreement
regarding
US
taxpayers
booked
in
the
legacy
Credit Suisse Singapore booking
center and will
pay an
aggregate of USD
138.7m. UBS
AG has not
made any
post-
balance sheet adjustment as the expected
impact is not material.
UBS AG first quarter 2025 report |
UBS AG | UBS AG consolidated performance
7
UBS AG consolidated performance
Income statement
For the quarter ended
% change from
USD m
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Net interest income
1,328
1,590
806
(17)
65
Other net income from financial instruments measured
at fair value through profit or loss
3,924
3,150
2,945
25
33
Net fee and commission income
6,630
6,354
5,148
4
29
Other income
281
223
209
26
35
Total revenues
12,163
11,317
9,108
7
34
Credit loss expense / (release)
124
241
52
(49)
140
Personnel expenses
5,910
5,212
4,161
13
42
General and administrative expenses
4,077
4,964
2,985
(18)
37
Depreciation, amortization and impairment of non-financial
assets
714
840
531
(15)
34
Operating expenses
10,701
11,017
7,677
(3)
39
Operating profit / (loss) before tax
1,339
59
1,379
(3)
Tax expense / (benefit)
303
313
366
(3)
(17)
Net profit / (loss)
1,035
(254)
1,014
2
Net profit / (loss) attributable to non-controlling interests
7
2
8
218
(10)
Net profit / (loss) attributable to shareholders
1,028
(257)
1,006
2
Comprehensive income
Total comprehensive income
2,657
(2,975)
(169)
Total comprehensive income attributable to non-controlling interests
22
(35)
(4)
Total comprehensive income attributable to shareholders
2,635
(2,940)
(166)
Integration-related expenses, by business division and Group Items
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Global Wealth Management
355
456
228
Personal & Corporate Banking
166
183
84
Asset Management
73
96
35
Investment Bank
116
175
114
Non-core and Legacy
191
316
61
Group Items
(2)
6
1
Total integration-related expenses
900
1,232
523
of which: total revenues
(3)
6
0
of which: operating expenses
903
1,226
523
of which: personnel expenses
386
421
117
of which: general and administrative expenses
460
664
345
of which: depreciation, amortization and impairment of non-financial
assets
57
141
61
1Q25 compared with 1Q24
The legal merger
of UBS AG
and Credit Suisse
AG on 31 May
2024 has had
a significant impact
on the results
from
June 2024 onward.
This discussion and
analysis of results compares
the first quarter of
2025, which covers three
full months of post-merger results, with the first quarter of
2024, which included only pre-merger results. This is a
material driver in many of the increases across
both revenues and operating expenses.
›
Refer to “Note 2 Accounting for the merger of UBS AG and Credit Suisse AG” 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 the accounting for the merger of UBS AG and Credit Suisse AG
UBS AG first quarter 2025 report |
UBS AG | UBS AG consolidated performance
8
Results: 1Q25 vs 1Q24
Operating
profit
before
tax
decreased
by
USD 40m,
or
3%,
to
USD 1,339m,
reflecting
increases
in
operating
expenses
and
net
credit
loss
expenses,
partly
offset
by
higher
total
revenues.
Operating
expenses
increased
by
USD 3,024m,
or
39%,
to
USD 10,701m,
largely
due
to
increases
of
USD 1,749m
in
personnel
expenses
and
USD 1,092m in general and
administrative expenses.
Depreciation, amortization and impairment
of non-financial
assets was
USD 183m higher.
Net credit
loss expenses
were USD 124m,
compared with
USD 52m
in the
first quarter
of 2024.
Total revenues increased by
USD 3,055m,
or 34%,
to USD 12,163m,
largely due
to a
USD 1,501m
increase
in combined net interest income and other
net income from financial instruments measured at fair
value through
profit or loss and
also due to a USD 1,482m increase
in net fee and
commission income. Other income increased
by USD 72m.
Integration-related expenses
in general
and administrative
expenses primarily
included shared
services costs
charged
from other companies
in the UBS
Group reporting
scope, consulting
fees and outsourcing
costs. Integration-related
personnel
expenses were
mainly
due
to
salaries
and variable
compensation related
to
the
integration
of Credit
Suisse. In addition,
there was accelerated depreciation of properties
and leasehold improvements in depreciation,
amortization and impairment of non-financial
assets.
Total revenues: 1Q25 vs 1Q24
Net interest income and other net income
from financial instruments measured at
fair value through profit or loss
Total combined net
interest income
and other
net income
from financial
instruments
measured at
fair value
through
profit or loss increased by
USD 1,501m to USD 5,252m,
mainly driven by
increases in Global Wealth Management,
Personal & Corporate Banking and the Investment
Bank.
Global Wealth Management revenues increased by
USD 516m
to USD 2,074m, mainly driven by the consolidation
of Credit
Suisse AG net
interest income.
The
remaining variance
was due
to a
decrease in
net interest
income,
largely driven by a
decrease in deposit revenues due to
lower margins and a decrease
in loan revenues, reflecting
lower margins and average volumes.
Personal & Corporate Banking revenues increased by USD 343m to
USD 1,247m, largely due to the consolidation
of Credit Suisse AG net interest income.
Investment
Bank
revenues increased
by
USD 499m
to
USD 2,056m,
mainly
due
to
an
increase
in
Derivatives
&
Solutions revenues, mainly reflecting higher revenues
in Equity Derivatives and Foreign Exchange,
due to increased
volatility and higher levels of
client activity. In addition, there
were higher revenues in Financing,
mainly driven by
Prime Brokerage, supported by higher client
balances.
Non-core and
Legacy
revenues
increased by
USD 99m to
USD 117m, mainly
due to
the consolidation
of Credit
Suisse AG revenues.
Total revenues
reflected net
gains from
position exits,
along with
net interest
income from
securitized products and credit products.
Revenues in Group Items were negative USD 237m compared with negative USD 275m. Revenues included lower
mark-to-market
losses
from
Group
hedging
and
own
debt,
including
hedge
accounting
ineffectiveness, within
Group Treasury.
Revenues in
the first
quarter of
2025 were
driven by
mark-to-market effects
on own
credit and
portfolio-level economic hedges, mainly due
to increases in interest rates and cross-currency-basis
widening.
›
Refer to “Note 4 Net interest income” in the “Consolidated financial statements” section of this report for more
information about net interest income
UBS AG first quarter 2025 report |
UBS AG | UBS AG consolidated performance
9
Net interest income and other net income from financial instruments measured at fair value through profit or loss
For the quarter ended
% change from
USD m
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Net interest income from financial instruments measured
at amortized cost and fair value through other
comprehensive income
(266)
(292)
188
(9)
Net interest income from financial instruments measured
at fair value through profit or loss and other
1,594
1,882
618
(15)
158
Other net income from financial instruments measured
at fair value through profit or loss
3,924
3,150
2,945
25
33
Total
5,252
4,741
3,751
11
40
Global Wealth Management
2,074
2,085
1,558
(1)
33
of which: net interest income
1,589
1,717
1,204
(7)
32
of which: transaction-based income from foreign exchange and other
intermediary activity
1
485
368
354
32
37
Personal & Corporate Banking
1,247
1,378
904
(10)
38
of which: net interest income
1,059
1,168
772
(9)
37
of which: transaction-based income from foreign exchange and other
intermediary activity
1
188
211
132
(11)
42
Asset Management
(5)
(4)
(12)
47
(55)
Investment Bank
2,056
1,552
1,557
32
32
Non-core and Legacy
117
(171)
18
533
Group Items
(237)
(99)
(275)
139
(14)
1 Mainly includes spread-related income in connection with client-driven transactions,
foreign-currency translation effects and income and expenses from precious metals,
which are included in the income statement
line Other net income from financial instruments measured
at fair value through profit or loss.
The amounts reported on this line
are one component of Transaction
-based income in the management discussion and
analysis in the “Global Wealth Management” and “Personal & Corporate Banking” sections
of this report.
Net fee and commission income
Net fee and commission income increased
by USD 1,482m to USD 6,630m, mainly driven by
the consolidation of
Credit Suisse AG revenues.
Fees from portfolio management increased by USD 646m
to USD 3,102m, and investment fund fees increased by
USD 342m to
USD 1,543m, predominantly in
Global Wealth
Management and
Asset Management,
respectively.
The increase
in Global
Wealth Management
was mainly
due to
the consolidation
of Credit
Suisse AG
revenues,
positive market performance and net new fee-generating asset inflows. For Asset
Management, the increase was
mainly from the consolidation of Credit Suisse
AG revenues.
Net brokerage fees
increased by USD 324m
to USD 1,280m, largely
as a result
of the consolidation
of Credit Suisse
AG revenues. The remaining variance was
mainly due to higher levels
of client activity across all
regions in Global
Wealth Management and driven by higher volumes
in Cash Equities in Execution Services in the
Investment Bank.
›
Refer to “Note 5 Net fee and commission income” in the “Consolidated financial statements” section of this report
for more information
Other income
Other
income
was
USD 281m
and
included
the
consolidation
of
Credit
Suisse AG
income,
compared
with
USD 209m in the first quarter of 2024. The increase was largely due to share of net profits of
associates and joint
ventures being
USD 121m higher,
primarily in
Personal &
Corporate Banking,
mainly reflecting
a USD 64m
gain
related to the Swisscard transactions.
›
Refer to the “Recent developments” section and “Personal & Corporate Banking” in the “Business divisions and
Group Items” section of this report for more information about the Swisscard transactions
›
Refer to “Note 6 Other income” in the “Consolidated financial statements” section of this report for more
information
Credit loss expense / release: 1Q25 vs
1Q24
Total net
credit loss
expenses
in the
first quarter
of 2025
were USD 124m,
reflecting net
releases of
USD 21m related
to performing positions
and net expenses
of USD 145m on
credit-impaired positions.
Net credit loss expenses
were
USD 52m in the first quarter of 2024.
›
Refer to “Note 9 Expected credit loss measurement” in the “Consolidated financial statements” section of this
report for more information
UBS AG first quarter 2025 report |
UBS AG | UBS AG consolidated performance
10
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Total
For the quarter ended 31.3.25
Global Wealth Management
(7)
15
8
Personal & Corporate Banking
(8)
66
58
Asset Management
0
0
0
Investment Bank
(5)
54
49
Non-core and Legacy
0
10
10
Group Items
(1)
0
(1)
Total
(21)
145
124
For the quarter ended 31.12.24
Global Wealth Management
(26)
15
(11)
Personal & Corporate Banking
(24)
213
189
Asset Management
0
0
0
Investment Bank
32
30
62
Non-core and Legacy
(2)
4
2
Group Items
(1)
1
0
Total
(21)
262
241
For the quarter ended 31.3.24
Global Wealth Management
2
7
9
Personal & Corporate Banking
(12)
22
10
Asset Management
0
0
0
Investment Bank
10
22
32
Non-core and Legacy
0
0
0
Group Items
1
0
1
Total
1
51
52
Operating expenses: 1Q25 vs 1Q24
Operating expenses
For the quarter ended
% change from
USD m
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Personnel expenses
5,910
5,212
4,161
13
42
of which: salaries and variable compensation
5,129
4,473
3,621
15
42
of which: variable compensation – financial advisors
1
1,409
1,400
1,267
1
11
General and administrative expenses
4,077
4,964
2,985
(18)
37
of which: net expenses for litigation, regulatory and similar
matters
196
393
8
(50)
Depreciation, amortization and impairment of non-financial
assets
714
840
531
(15)
34
Total operating expenses
10,701
11,017
7,677
(3)
39
1 Financial advisor compensation consists of cash
compensation, determined using a formulaic
approach based on production, and
deferred awards. It also
includes expenses related to compensation commitments
with financial advisors entered into at the time of recruitment that are subject to vesting requirements.
Personnel expenses
Personnel
expenses
increased
by
USD 1,749m
to
USD 5,910m,
mainly
driven
by
the
consolidation
of
Credit Suisse AG expenses,
reflecting the combined
workforce resulting from
the merger, as well
as higher
accruals
for
performance
awards
and
a
USD 142m
increase
in
financial
advisor
compensation
resulting
from
higher
compensable revenues.
›
Refer to “Note 7 Personnel expenses” in the “Consolidated financial statements” section of this report for more
information
General and administrative expenses
General and administrative
expenses increased by USD
1,092m to USD 4,077m,
mainly driven by the
consolidation
of Credit Suisse AG expenses, including an increase of USD 298m in shared services costs for Technology,
Finance
and
Risk
charged
by
other subsidiaries
of
UBS
Group
AG.
General and
administrative expenses
also
included
a
USD 180m expense related to
the Swisscard transactions
in Personal &
Corporate Banking, as well
as USD 188m
higher
expenses
for
litigation,
regulatory
and
similar
matters
and
increases
of
USD 92m
in
technology
costs,
USD 76m in outsourcing costs and USD 73m in real estate and logistics
costs.
›
Refer to the “Recent developments” section and “Personal & Corporate Banking” in the “Business divisions and
Group Items” section of this report for more information about the Swisscard transactions
›
Refer to “Note 8 General and administrative expenses” in the “Consolidated financial statements” section of this
report for more information
›
Refer to “Note 16 Provisions and contingent liabilities” in the “Consolidated financial statements” section of this
report for more information about litigation, regulatory and similar matters
›
Refer to the “Regulatory and legal developments” and “Risk factors” sections of the UBS AG Annual Report 2024,
available under “Annual reporting” at
ubs.com/investors
, for more information about litigation, regulatory and
similar matters on a UBS AG consolidated basis
UBS AG first quarter 2025 report |
UBS AG | UBS AG consolidated performance
11
Depreciation, amortization and impairment of
non-financial assets
Depreciation, amortization and impairment
of non-financial assets
increased by USD 183m
to USD 714m, mainly
due to higher
amortization of
internally generated
capitalized software as
a result of a
higher cost base
of software
assets following the consolidation of Credit Suisse
AG.
Tax: 1Q25 vs 1Q24
UBS AG had a net income tax expense
of USD 303m in the first quarter
of 2025, representing an effective
tax rate
of 22.7%, compared with USD 366m in the
first quarter of 2024 and an effective
tax rate of 26.5%.
The current tax expense was USD 431m, which includes USD 300m that
primarily related to the taxable profits of
UBS Switzerland AG and other entities and USD 131m that related to US corporate alternative
minimum tax, with
an equivalent
deferred tax
benefit for
deferred tax
assets (DTAs)
recognized in
respect of
tax credits
carried forward.
There
was
a
net
deferred
tax
benefit
of
USD 128m.
This
reflects
the
aforementioned
deferred
tax
benefit
of
USD 131m and also
benefits of USD 39m in
respect of the
tax deduction for
deferred compensation awards and
USD 31m
in
respect of
an increase
in
deferred
tax asset
recognition
for the
quarter in
respect of
UBS
AG’s
US
branch. These
benefits were
partly offset
by
a net
deferred tax
expense of
USD 73m that
mainly related
to the
amortization
of
DTAs
previously
recognized
in
relation
to
tax
losses
carried
forward
and
deductible
temporary
differences.
Total comprehensive income attributable
to shareholders
In the first quarter
of 2025, total comprehensive
income attributable to shareholders
was USD 2,635m, reflecting a
net profit
of USD 1,028m
and other
comprehensive
income (OCI),
net of
tax, of USD
1,607m.
Foreign currency translation OCI was USD 794m, mainly resulting from the US dollar weakening against the Swiss
franc and the euro.
OCI
related
to
cash
flow
hedges
was
USD 545m,
mainly
reflecting
net
unrealized
gains
on
US
dollar
hedging
derivatives
resulting
from
decreases
in
the
relevant
US
dollar
long-term
interest
rates
and
net
losses
on
hedging
instruments that were reclassified from OCI
to the income statement.
OCI related to
own credit
on financial
liabilities designated
at fair value
was USD 233m,
primarily due
to a widening
of our own credit spreads.
›
Refer to “Statement of comprehensive income” in the “Consolidated financial statements” section of this report for
more information
›
Refer to “Reconciliation
of equity under
IFRS Accounting
Standards to
Swiss SRB common
equity tier
1 capital”
in the
“Capital management”
section of
this report
for more information
about the
effects of OCI
on common
equity tier
1
capital
›
Refer to “Note 21 Fair value measurement” in the “Consolidated financial statements” section of the UBS AG
Annual Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more information about own
credit on financial liabilities designated at fair value
Sensitivity to interest rate movements
As
of
31 March
2025,
it
is
estimated
that
a
parallel
shift
in
yield
curves
by
+100
basis
points
could
lead
to
a
combined increase in
annual net interest
income from our
banking book of
approximately USD 1.5bn in
the first
year after
such a
shift. Of
this increase,
approximately USD 0.9bn, USD 0.4bn
and USD 0.1bn
would result
from
changes in Swiss franc, US dollar and euro
interest rates, respectively.
A parallel shift in yield
curves by –100 basis points
could lead to a combined
increase in annual net
interest income
of approximately USD 0.4bn.
Of this increase, approximately
USD 1.0bn would result from
the change in the
Swiss
franc interest
rate, driven
by both
contractual and
assumed flooring
benefits under
negative interest
rates. US
dollar
and euro interest rate changes would lead
to an offsetting decrease of USD 0.4bn and USD
0.1bn, respectively.
These estimates do not represent net interest income forecasts as they are
based on a hypothetical scenario of an
immediate change in interest rates,
equal across all currencies and
relative to implied forward rates as
of 31 March
2025 applied to our banking
book. These estimates further assume no
change to balance sheet size
and product
mix, stable foreign exchange rates, and no specific
management action.
›
Refer to the “Risk management and control” section of this report for information about interest rate risk in the
banking book
UBS AG first quarter 2025 report |
UBS AG | UBS AG consolidated performance
12
Key figures and personnel
Below is
an overview
of selected
key figures
of UBS AG
consolidated. For
further information
about key
figures
related to capital management, refer to
the “Capital management” section of this
report.
Cost / income ratio: 1Q25 vs 1Q24
The cost / income
ratio was
88.0%, compared
with 84.3%,
mainly reflecting
an increase
in operating
expenses,
partly offset by an increase in total revenues.
Personnel: 1Q25 vs 4Q24
The number
of internal
personnel employed
as of
31 March 2025
was 67,373
(full-time equivalents),
a net
decrease
of 1,609 compared with 31 December 2024.
Equity, CET1 capital and returns
As of or for the quarter ended
USD m, except where indicated
31.3.25
31.12.24
31.3.24
Net profit
Net profit attributable to shareholders
1,028
(257)
1,006
Equity
Equity attributable to shareholders
96,553
94,003
55,046
less: goodwill and intangible assets
6,691
6,661
6,237
Tangible equity attributable to shareholders
89,862
87,343
48,809
less: other CET1 adjustments
19,106
13,550
4,946
CET1 capital
70,756
73,792
43,863
Returns
Return on equity (%)
4.3
(1.1)
7.3
Return on tangible equity (%)
4.6
(1.2)
8.2
Return on CET1 capital (%)
5.7
(1.3)
9.1
Common equity tier 1 capital: 1Q25 vs 4Q24
During
the first
quarter of
2025,
common equity
tier 1 (CET1)
capital decreased
by
USD 3.0bn to
USD 70.8bn,
mainly as operating
profit before tax of
USD 1.3bn and foreign currency
translation gains of
USD 0.8bn were more
than offset by dividend accruals of USD 4.5bn, and
current tax expenses of USD 0.4bn.
Return on common equity tier 1 capital: 1Q25
vs 1Q24
The annualized
return on
CET1 capital
was 5.7%,
compared with
9.1%, driven
by an
increase in
average CET1
capital, partly offset by higher net profit attributable to
shareholders.
Risk-weighted assets: 1Q25 vs 4Q24
During the first quarter
of 2025, RWA decreased by USD 13.6bn
to USD 481.5bn, driven
by a USD 9.5bn decrease
resulting from asset
size and other movements,
an USD 8.6bn reduction as
a result of
the implementation of the
final Basel III standards,
and a
USD 1.1bn reduction
resulting from model
updates and
other methodology
changes.
These decreases were partly offset by a USD 5.7bn increase in currency effects.
Common equity tier 1 capital ratio: 1Q25 vs 4Q24
The CET1 capital ratio decreased
to 14.7% from 14.9%,
reflecting the aforementioned decrease
in CET1 capital,
partly offset by the aforementioned decrease in RWA.
Leverage ratio denominator: 1Q25 vs 4Q24
During the
first quarter
of 2025,
the LRD
increased by
USD 42.6bn to
USD 1,565.8bn,
driven by
an increase
of
USD 28.8bn as a result
of the implementation of the final
Basel III standards and currency
effects of USD 26.6bn,
partly offset by asset size and other movements of USD
12.8bn.
Common equity tier 1 leverage ratio: 1Q25
vs 4Q24
The CET1 leverage ratio decreased
to 4.5% from 4.8%, reflecting the
aforementioned increase in the LRD
and the
aforementioned decrease in CET1 capital.
UBS AG first quarter 2025 report |
UBS AG | UBS AG consolidated performance
13
Outlook
Rapid
and
significant
changes
to
trade
tariffs,
heightened
risk
of
escalation
and
significantly
increased
macroeconomic uncertainty
led
to
major
market volatility
in
the first
weeks of
April.
We actively
engaged with
institutional and private
clients, helping them
navigate the uncertain
environment with advice on
how to protect
their assets and by facilitating their trading activity
across asset classes.
With a wide range of possible outcomes, the economic
path forward is particularly unpredictable. The prospect
of
higher
tariffs
on
global
trade
presents a
material
risk
to
global
growth and
inflation,
clouding
the
interest rate
outlook. Markets are likely
to remain sensitive to
new developments, both positive
and negative, which are
likely
to
lead
to
further
spikes
in
volatility.
Prolonged
uncertainty
would
affect
sentiment
and
cause
businesses
and
investors to delay important decisions on strategy,
capital allocation and investments.
In the second quarter we expect net interest
income (NII) in Global Wealth Management
to decline sequentially by
a low-single-digit percentage,
and we see a similar
decline in Personal
& Corporate Banking’s NII
in Swiss francs. In
US
dollar
terms,
Personal
&
Corporate
Banking’s
NII
is
expected
to
increase
sequentially
by
a
mid-single-digit
percentage, based
on
current foreign
exchange rates.
Continued market
uncertainty could
affect the
timing of
execution of our Global Banking pipeline.
Despite this uncertain
environment we are
confident in our
ability to deliver on
our financial targets,
leveraging the
power of our diversified
business model. We remain focused
on serving our clients, executing
on integration and
acting as an engine of economic growth
in the communities we serve.
UBS AG first quarter 2025 report |
Business divisions and Group Items
14
Business divisions and Group
Items
Management report
Our businesses
We report
five business
divisions, each
of which
qualifies as
an operating
segment pursuant
to IFRS
Accounting
Standards: Global Wealth Management,
Personal & Corporate Banking,
Asset Management, the Investment
Bank,
and Non-core and Legacy. Non-core and Legacy consists of positions and businesses not aligned with our strategy
and policies.
Our Group
functions are
support and
control functions
that provide
services to
the Group.
Virtually all
costs incurred
by our Group functions are
allocated to the business divisions,
leaving a residual amount that
we refer to as Group
Items in our segment reporting.
This discussion and
analysis of the
results of
the business divisions
and Group Items
compares the
results for the
first quarter of
2025, which are
based entirely on
consolidated data following the
merger of UBS AG
and Credit
Suisse AG, with those for the
first quarter of 2024, which
only included
pre-merger UBS AG consolidated results.
This is a material driver in many of the increases
across both revenues and operating expenses.
Global Wealth Management
Global Wealth Management
As of or for the quarter ended
% change from
USD m, except where indicated
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Results
Net interest income
1,589
1,717
1,204
(7)
32
Recurring net fee income
1
3,274
3,262
2,693
0
22
Transaction-based income
1
1,423
1,034
986
38
44
Other income
6
(31)
35
(83)
Total revenues
6,293
5,982
4,918
5
28
Credit loss expense / (release)
8
(11)
9
(5)
Operating expenses
5,069
5,315
3,975
(5)
28
Business division operating profit / (loss) before tax
1,216
679
935
79
30
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
30.1
95.6
(21.8)
Cost / income ratio (%)
1
80.6
88.8
80.8
Financial advisor compensation
2
1,409
1,400
1,267
1
11
Invested assets (USD bn)
1
4,218
4,182
3,302
1
28
Loans, gross (USD bn)
3
301.7
302.2
210.6
0
43
Customer deposits (USD bn)
3
464.8
470.6
351.2
(1)
32
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,4
0.4
0.4
0.3
Advisors (full-time equivalents)
9,693
9,803
8,809
(1)
10
1 Refer to “Alternative performance
measures” in the appendix to this report for
the definition and calculation method.
2 Relates to licensed professionals with the ability to
provide investment advice to clients in
the Americas. Consists of cash compensation, determined using a formulaic approach based on production, and deferred awards. Also includes expenses related
to compensation commitments with financial advisors
entered into at the time of recruitment that are subject to vesting requirements. Recruitment loans to financial advisors were USD
2,738m as of 31 March 2025.
3 Loans and Customer deposits in this table include
customer brokerage
receivables and
payables, respectively,
which are presented
in separate reporting
lines on the
balance sheet.
4 Refer to the
“Risk management and
control” section
of this report
for more
information about (credit-)impaired exposures. Excludes loans to financial advisors.
UBS AG first quarter 2025 report |
Business divisions and Group Items | Global Wealth
Management
15
Results: 1Q25 vs 1Q24
Profit before tax increased by USD 281m, or
30%, to USD 1,216m, mainly driven by the
positive impact from the
merger of UBS AG and Credit Suisse AG, and higher
total revenues, partly offset by higher operating
expenses.
Total revenues
Total
revenues
increased
by
USD 1,375m,
or
28%,
to
USD 6,293m,
mainly
due
to
the
consolidation
of
Credit
Suisse AG revenues. The remaining
increase largely reflected increases
in recurring net fee
income and transaction-
based income.
Net interest income
increased by USD 385m,
or 32%, to USD 1,589m,
mainly driven by
the consolidation of
Credit
Suisse AG net interest
income, partly offset
by a decrease in
deposit revenues due
to lower margins and
a decrease
in loan revenues, reflecting lower margins
and average volumes.
Recurring net fee income increased by USD 581m, or 22%, to USD 3,274m, mainly driven by the consolidation
of
Credit Suisse AG recurring
net fee income, positive
market performance and
net new fee-generating
asset inflows.
Transaction-based income increased
by USD 437m, or 44%,
to USD 1,423m, mainly driven
by the consolidation of
Credit Suisse AG transaction-based income
and higher levels of client activity across
all regions.
Other
income
decreased
by
USD 29m
to
USD 6m,
mostly
due
to
lower
shared
services
costs
charged
to
other
subsidiaries of UBS Group AG, mainly related to
secondments.
Credit loss expense / release
Net credit loss expenses were USD 8m, compared with net expenses
of USD 9m in the first quarter of 2024.
Operating expenses
Operating expenses
increased
by
USD 1,094m, or
28%, to
USD 5,069m, mainly
driven
by
the
consolidation of
Credit
Suisse
AG
operating
expenses
and
an
increase
in
financial
advisor
compensation
as
a
result
of
higher
compensable revenues.
Invested assets: 1Q25 vs 4Q24
Invested assets increased by USD 36bn, or 1%, to USD 4,218bn, mainly driven by positive foreign currency effects
of USD 36bn and net new asset inflows,
partly offset by negative market performance.
Loans: 1Q25 vs 4Q24
Loans were
broadly stable
at USD 301.7bn,
as positive
foreign currency
effects and
positive net
new loans
were
more than offset
by an effect
related to a
change to our
segmentation approach
that was implemented
in February
2025 and led to a shift of some affluent clients
to Personal & Corporate Banking.
›
Refer to the “Risk management and control” section of this report for more information
Customer deposits: 1Q25 vs 4Q24
Customer deposits
decreased by
USD 5.8bn to
USD 464.8bn, mainly
driven by
net new
deposit outflows,
partly
offset by positive foreign currency effects.
UBS AG first quarter 2025 report |
Business divisions and Group Items | Personal
& Corporate Banking
16
Personal & Corporate Banking
Personal & Corporate Banking – in Swiss francs
As of or for the quarter ended
% change from
CHF m, except where indicated
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Results
Net interest income
953
1,032
681
(8)
40
Recurring net fee income
1
329
357
221
(8)
48
Transaction-based income
1
454
454
300
0
51
Other income
68
(49)
14
381
Total revenues
1,804
1,795
1,217
1
48
Credit loss expense / (release)
52
167
9
(69)
464
Operating expenses
1,373
1,289
715
7
92
Business division operating profit / (loss) before tax
378
339
493
12
(23)
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
(23.2)
10.7
(10.5)
Cost / income ratio (%)
1
76.1
71.8
58.8
Net interest margin (bps)
1
153
168
185
Loans, gross (CHF bn)
251.8
245.3
148.5
3
70
Customer deposits (CHF bn)
252.2
255.5
169.6
(1)
49
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,2
1.5
1.5
0.9
1
Refer to “Alternative
performance measures” in the
appendix to this report for
the definition and calculation
method.
2
Refer to the “Risk management
and control” section of this
report for more information
about (credit-)impaired exposures.
Results
:
1Q25 vs 1Q24
Profit before tax decreased by CHF 115m, or
23%, to CHF 378m, as higher total revenues were more
than offset
by higher operating expenses and net credit loss expenses.
Total revenues
Total
revenues
increased
by
CHF 587m,
or
48%,
to
CHF 1,804m,
mainly
due
to
the
consolidation
of
Credit
Suisse AG revenues.
Net interest income increased by CHF 272m to CHF 953m, largely reflecting the consolidation of Credit Suisse
AG
net interest income.
Recurring net
fee income
increased by
CHF 108m to
CHF 329m,
mainly due
to the
consolidation of
Credit Suisse
AG
recurring
net
fee
income,
as
well
as
an
increase
in
revenues
due
to
higher
investment
product
levels,
mostly
reflecting net new inflows and positive market
performance.
Transaction-based
income
increased
by
CHF 154m
to
CHF 454m,
largely
due
to
the
consolidation
of
Credit
Suisse AG transaction-based income.
Other income was CHF 68m, compared with CHF 14m,
and included a gain of CHF
58m related to the Swisscard
transactions.
Credit loss expense / release
Net credit loss expenses were CHF 52m, mainly reflecting the consolidation of Credit
Suisse AG, and included net
credit loss expenses on
credit-impaired positions, primarily in
the legacy Credit
Suisse corporate loan book, partly
offset by net
credit loss releases
related to performing
positions. Net
credit loss expenses
in the first
quarter of
2024
were CHF 9m.
Operating expenses
Operating expenses increased
by CHF 658m, or
92%, to CHF 1,373m,
largely due to
the consolidation of
Credit
Suisse AG
expenses,
and
included
both
a
CHF 164m
expense
related
to
the
Swisscard
transactions
and
higher
integration-related expenses.
UBS AG first quarter 2025 report |
Business divisions and Group Items | Personal
& Corporate Banking
17
Personal & Corporate Banking – in US dollars
As of or for the quarter ended
% change from
USD m, except where indicated
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Results
Net interest income
1,059
1,168
772
(9)
37
Recurring net fee income
1
365
404
251
(10)
46
Transaction-based income
1
505
514
340
(2)
49
Other income
75
(54)
16
370
Total revenues
2,005
2,032
1,378
(1)
45
Credit loss expense / (release)
58
189
10
(69)
466
Operating expenses
1,526
1,457
809
5
89
Business division operating profit / (loss) before tax
421
385
558
9
(25)
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
(24.7)
12.5
(6.3)
Cost / income ratio (%)
1
76.1
71.7
58.7
Net interest margin (bps)
1
153
166
182
Loans, gross (USD bn)
284.7
270.2
164.5
5
73
Customer deposits (USD bn)
285.1
281.4
188.0
1
52
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,2
1.5
1.5
0.9
1 Refer to “Alternative
performance measures” in the appendix
to this report for the
definition and calculation method.
2 Refer to the “Risk management
and control” section of this
report for more information
about (credit-)impaired exposures.
UBS AG first quarter 2025 report |
Business divisions and Group Items | Asset Management
18
Asset Management
Asset Management
As of or for the quarter ended
% change from
USD m, except where indicated
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Results
Net management fees
1
713
711
487
0
46
Performance fees
30
44
22
(32)
36
Net gain from disposals
(2)
12
Total revenues
741
768
509
(3)
45
Credit loss expense / (release)
0
0
0
Operating expenses
603
642
459
(6)
31
Business division operating profit / (loss) before tax
137
125
50
10
173
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
2
173.2
31.5
(46.8)
Cost / income ratio (%)
2
81.4
83.7
90.1
Gross margin on invested assets (bps)
2
17
17
16
Information by business line / asset
class
Invested assets (USD bn)
2
Equities
753
755
579
0
30
Fixed Income
479
464
337
3
42
of which: money market
164
157
142
4
15
Multi-asset & Solutions
275
268
185
2
49
Hedge Fund Businesses
60
58
55
3
9
Real Estate & Private Markets
147
143
97
3
51
Total invested assets excluding associates
1,715
1,689
1,253
2
37
of which: passive strategies
823
807
575
2
43
Associates
3
81
84
23
(3)
250
Total invested assets
1,796
1,773
1,276
1
41
Information by region
Invested assets (USD bn)
2
Americas
447
443
376
1
19
Asia Pacific
4
222
224
155
(1)
43
EMEA (excluding Switzerland)
440
435
334
1
32
Switzerland
688
670
412
3
67
Total invested assets
1,796
1,773
1,276
1
41
Information by channel
Invested assets (USD bn)
2
Third-party institutional
1,027
1,008
684
2
50
Third-party wholesale
163
169
129
(4)
27
UBS’s wealth management businesses
525
512
440
2
19
Associates
3
81
84
23
(3)
250
Total invested assets
1,796
1,773
1,276
1
41
1 Net management fees include transaction
fees, fund administration revenues
(including net interest and trading
income from lending activities and
foreign-exchange hedging as part of the
fund services offering),
distribution fees, incremental fund-related
expenses, gains or losses
from seed money and co-investments,
funding costs, the negative
pass-through impact of third-party performance
fees, and other items
that are
not Asset Management’s
performance fees.
2 Refer to “Alternative
performance measures” in the
appendix to this report
for the definition and calculation
method.
3 The invested assets
amounts reported for
associates are prepared in accordance with their local regulatory requirements and practices.
4 Includes invested assets from associates.
Results: 1Q25 vs 1Q24
Profit
before
tax
increased
by
USD 87m,
or
173%,
to
USD 137m,
mainly
reflecting
the
impact
from
the
consolidation of Credit Suisse AG.
Total revenues
Total
revenues
increased
by
USD 232m, or
45%,
to
USD 741m, primarily
reflecting
the
consolidation of
Credit
Suisse AG revenues.
Net management
fees increased
by USD 226m,
or 46%,
to USD 713m,
largely reflecting
the consolidation
of Credit
Suisse AG net management fees.
UBS AG first quarter 2025 report |
Business divisions and Group Items | Asset Management
19
Performance fees increased
by USD 8m, or 36%,
to USD 30m, mainly due
to the consolidation
of Credit Suisse AG
performance fees, partly offset by decreases
in the Hedge Fund and Real Estate businesses.
Operating expenses
Operating expenses
increased by
USD 144m, or
31%, to
USD 603m, largely
due
to the
consolidation of
Credit
Suisse AG operating expenses, and included
higher integration-related expenses.
Invested assets: 1Q25 vs 4Q24
Invested
assets
increased
by
USD 23bn,
or
1%,
to
USD 1,796bn,
reflecting
positive
foreign
currency
effects
of
USD 33bn and net new money inflows of USD
7bn, partly offset by negative market
performance of USD 14bn.
Investment Bank
Investment Bank
As of or for the quarter ended
% change from
USD m, except where indicated
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Results
Advisory
221
260
165
(15)
34
Capital Markets
349
424
349
(18)
0
Global Banking
570
684
514
(17)
11
Execution Services
1
517
471
398
10
30
Derivatives & Solutions
1
1,301
683
934
90
39
Financing
665
722
542
(8)
23
Global Markets
2,482
1,876
1,874
32
32
of which: Equities
1,815
1,448
1,360
25
33
of which: Foreign Exchange, Rates and Credit
667
428
514
56
30
Total revenues
3,052
2,560
2,388
19
28
Credit loss expense / (release)
49
62
32
(22)
53
Operating expenses
2,455
2,229
2,083
10
18
Business division operating profit / (loss) before tax
548
268
272
104
101
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
2
101.3
n.m.
(42.2)
Cost / income ratio (%)
2
80.4
87.1
87.3
1 Comparative figures for the quarter ended 31 March 2024 have been restated as a result of the shift of the
foreign exchange products that are traded over electronic platforms from Execution Services to Derivatives
& Solutions. The restatement had no effect on total Global Markets
revenues.
2 Refer to “Alternative performance measures” in
the appendix to this report for the definition and calculation method.
Results: 1Q25 vs 1Q24
Profit before
tax increased
by USD 276m,
or 101%,
to USD 548m,
mainly due
to higher
total revenues,
partly offset
by higher operating expenses.
Total revenues
Total revenues increased by USD 664m, or
28%, to USD 3,052m,
reflecting increases in
Global Markets
and Global
Banking.
Global Banking
Global Banking revenues increased by USD 56m, or 11%,
to USD 570m, reflecting higher Advisory revenues.
Advisory revenues
increased by
USD 56m, or
34%, to
USD 221m, mostly
due to
higher merger
and acquisition
transaction revenues.
Capital Markets revenues were USD 349m,
unchanged year on year.
Global Markets
Global
Markets
revenues
increased
by
USD 608m,
or
32%,
to
USD 2,482m,
driven
by
higher
Derivatives
&
Solutions, Financing and Execution Services
revenues.
Execution
Services
revenues
increased
by
USD 119m,
or
30%,
to
USD 517m,
mainly
due
to
increases
in
Cash
Equities across all regions, driven by higher volumes.
Derivatives
&
Solutions
revenues
increased
by
USD 367m,
or
39%,
to
USD 1,301m,
mainly
reflecting
higher
revenues in Equity Derivatives and Foreign
Exchange, due to increased volatility and
higher levels of client activity.
UBS AG first quarter 2025 report |
Business divisions and Group Items | Investment
Bank
20
Financing revenues increased by USD 123m, or 23%, to USD 665m, mainly driven by Prime Brokerage, supported
by higher client balances.
Equities
Global Markets Equities
revenues increased by
USD 455m, or 33%,
to USD 1,815m, mainly
due to higher
revenues
in Equity Derivatives, Cash Equities and Prime Brokerage.
Foreign Exchange, Rates and Credit
Global
Markets
Foreign
Exchange,
Rates
and
Credit
revenues
increased
by
USD 153m,
or
30%,
to
USD 667m,
mainly driven by increases in Foreign Exchange.
Credit loss expense / release
Net credit loss expenses were USD 49m, compared with net credit loss expenses of USD 32m, reflecting net credit
loss expenses on performing and credit-impaired positions, including
the impact of model updates.
Operating expenses
Operating expenses
increased by
USD 372m, or
18%, to
USD 2,455m, mainly
driven by
higher personnel
expenses.
Non-core and Legacy
Non-core and Legacy
As of or for the quarter ended
% change from
USD m
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Results
Total revenues
119
(75)
21
471
Credit loss expense / (release)
10
2
0
Operating expenses
748
1,131
138
(34)
441
Operating profit / (loss) before tax
(639)
(1,208)
(118)
(47)
444
Results: 1Q25 vs 1Q24
Loss
before
tax
was
USD 639m,
primarily
due
to
the
impact
of
the
merger
of
UBS AG
and
Credit
Suisse AG,
compared with a loss before tax of USD 118m.
Total revenues
Total revenues were USD 119m, which
was USD 98m
higher than
the amount
recorded in the
first quarter
of 2024,
mainly due
to the
consolidation
of Credit
Suisse AG revenues.
Total revenues reflected net
gains from
position exits,
along with net interest income from securitized products and credit products.
Total
revenues in the first quarter of
2025 included a loss of
USD 11m from the sale of
Select Portfolio Servicing, the
US mortgage servicing business
of
Credit Suisse.
Credit loss expense / release
Net
credit loss
expenses were
USD 10m, almost
entirely
driven by
credit-impaired
positions, compared
with net
credit loss releases of USD 0m.
Operating expenses
Operating expenses
were USD 748m,
compared with
operating expenses
of USD 138m
recorded in the
first quarter
of 2024, with
the change largely
due to the
consolidation of Credit
Suisse AG expenses, and
included a USD 130m
increase in integration-related
expenses. Operating
expenses also
included a
USD 91m increase
related to litigation,
regulatory and similar matters.
UBS AG first quarter 2025 report |
Business divisions and Group Items | Group
Items
21
Group Items
Group Items
As of or for the quarter ended
% change from
USD m
31.3.25
31.12.24
31.3.24
4Q24
1Q24
Results
Total revenues
(46)
51
(106)
(56)
Credit loss expense / (release)
(1)
0
1
Operating expenses
299
242
212
24
41
Operating profit / (loss) before tax
(344)
(190)
(319)
81
8
Results: 1Q25 vs 1Q24
Loss before
tax increased
by USD 25m
to USD 344m,
mainly due
to an
increase in
provisions for
litigation, regulatory
and similar matters and higher shared services costs charged by
other subsidiaries of UBS Group AG, partly offset
by lower mark-to-market
losses from Group
hedging and own
debt,
including hedge accounting ineffectiveness.
The
losses in
the first
quarter of
2025
were
driven by
mark-to-market effects
on own
credit and
portfolio-level
economic hedges, mainly due to increases
in interest rates and cross-currency-basis widening.
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet
22
Risk, capital, liquidity and
funding, and balance sheet
Management report
Table of contents
Liquidity and funding management
Strategy, objectives and governance
Balance sheet and off-balance sheet
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet | Risk management and control
23
Risk management and control
This
section
provides
information
about
key
developments
during
the
reporting
period
and
should
be
read
in
conjunction with the “Risk
management and control”
section of the UBS AG Annual
Report 2024, available under
“Annual
reporting”
at
ubs.com/investors
,
and
the
“Recent
developments”
section
of
this
report
for
more
information about the integration of Credit Suisse.
The risk profile of UBS AG consolidated does
not differ materially from that of UBS Group
AG consolidated.
Toward the end of the first quarter of 2025 and into April, heightened geopolitical tensions and the imposition of
new tariffs exerted significant pressure on markets.
The weakening of the US dollar resulted in passive
increases in
reported exposures
from our
non-US-dollar-denominated
portfolios. In
addition, the
high volatility
led to
an increase
in margin calls in Global Wealth
Management and the Investment
Bank, which were met within
the orderly course
of business.
We are closely
monitoring these
developments, continually
assessing portfolio
impacts and considering
potential mitigating actions.
Credit risk
Overall banking products exposure
Overall banking products exposure
increased by USD 36bn compared
with 31 December 2024,
to USD 1,046bn as
of 31 March 2025,
primarily reflecting currency
effects in Loans
and advances to
customers and balances
at central
banks, inflows
from roll-offs of
securities financing
transactions in
balances at
central banks,
and purchases
of high-
quality liquid asset portfolio securities in
Other financial assets measured at amortized cost.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about balance sheet
movements
›
Refer to the “UBS AG consolidated performance” section and “Note
9
Expected credit loss measurement” in the
“Consolidated financial statements” section of this report for more information about credit loss expense / release
Overall traded products exposure
Overall traded products exposure decreased
by USD 12bn compared with 31 December 2024, to USD 54bn
as of
31 March 2025, primarily driven by decreases
in over-the-counter derivatives exposure
in the Investment Bank and
Personal & Corporate Banking, reflecting market movements.
Loan underwriting
In the
Investment Bank,
mandated loan
underwriting commitments
on a
notional basis
increased by
USD 3.9bn
compared with 31 December 2024, to USD 8.4bn as of 31 March 2025, driven by new mandates, partly offset by
deal syndications. As of 31 March
2025, USD 0.9bn of these commitments
had not been distributed as
originally
planned.
Loan underwriting exposures
in the Investment
Bank are classified
as held for
trading, with
fair values reflecting
the
market conditions
at the
end of
the quarter.
Credit hedges
are in place
to help
protect against
fair value
movements
in the portfolio.
Syndication of
underwriting exposure continues,
despite the
volatile market
conditions. As
of 25 April
2025, we
had
a
USD 1.1bn
exposure
reduction,
bringing
our
outstanding
mandated
loan
underwriting
commitments
to
USD 7.4bn.
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet | Risk management and control
24
Banking and traded products exposure in the business divisions and Group Items
31.3.25
USD m
Global
Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core
and Legacy
Group
Items
Total
Banking products exposure, gross
1,2
466,303
430,215
1,574
104,570
18,497
25,170
1,046,328
of which: loans and advances to customers (on-balance sheet)
297,010
284,705
10
17,676
1,687
5,100
606,188
of which: guarantees and irrevocable loan commitments (off-balance sheet)
20,082
44,771
11
35,088
1,345
20,755
122,051
Committed unconditionally revocable credit lines
3
78,172
65,381
0
546
4
804
144,907
Traded products exposure, gross
2,4
15,461
3,303
0
35,437
54,201
of which: over-the-counter derivatives
11,835
2,875
0
10,061
24,771
of which: securities financing transactions
18
0
0
16,107
16,126
of which: exchange-traded derivatives
3,607
428
0
9,269
13,304
Total credit-impaired exposure, gross
1
1,407
4,267
0
609
1,270
0
7,554
Total allowances and provisions for expected credit losses
301
1,981
0
436
962
5
3,685
of which: stage 1
106
276
0
103
3
5
493
of which: stage 2
56
247
0
151
215
0
668
of which: stage 3
139
1,458
0
182
744
0
2,524
31.12.24
USD m
Global
Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core
and Legacy
Group
Items
Total
Banking products exposure, gross
1,2
453,812
428,356
1,533
72,987
33,779
19,742
1,010,209
of which: loans and advances to customers (on-balance sheet)
297,602
270,165
9
17,497
1,660
3,243
590,176
of which: guarantees and irrevocable loan commitments (off-balance
sheet)
18,978
46,986
5
34,516
2,211
17,164
119,859
Committed unconditionally revocable credit lines
3
79,462
65,749
0
452
4
3,233
148,900
Traded products exposure, gross
2,4
14,900
5,034
0
46,076
66,009
of which: over-the-counter derivatives
11,705
4,594
0
17,371
33,670
of which: securities financing transactions
186
0
0
18,352
18,538
of which: exchange-traded derivatives
3,009
440
0
10,353
13,802
Total credit-impaired exposure, gross
1
1,421
4,187
0
595
1,289
0
7,492
Total allowances and provisions for expected credit losses
302
1,914
0
382
922
6
3,527
of which: stage 1
97
269
0
110
4
6
487
of which: stage 2
68
247
0
142
166
0
623
of which: stage 3
138
1,398
0
130
751
0
2,417
1 IFRS 9 gross exposure
for banking products includes the
following financial instruments in scope
of expected credit loss measurement:
balances at central banks,
amounts due from banks,
loans and advances to
customers, other
financial assets at
amortized cost, guarantees
and irrevocable loan
commitments.
2 Internal management
view of credit
risk, which differs
in certain respects
from IFRS Accounting
Standards.
3 Commitments that can be canceled by UBS AG at any time but expose
UBS AG to credit risk if the client has the ability to draw the
facility before UBS AG can take action. These commitments are subject to expected
credit loss requirements.
4 As counterparty risk
for traded
products is managed
at the counterparty
level, no further
split between exposures
in the Investment
Bank, Non-core
and Legacy,
and Group Items
is
provided.
Collateralization of Loans and advances to customers
1
Global Wealth Management
Personal & Corporate Banking
USD m, except where indicated
31.3.25
31.12.24
31.3.25
31.12.24
Secured by collateral
291,088
291,679
249,097
235,413
Residential real estate
102,372
107,176
198,482
186,137
Commercial / industrial real estate
9,383
9,487
38,582
37,413
Cash
28,054
28,455
2,737
2,631
Equity and debt instruments
124,412
120,376
2,600
2,783
Other collateral
2
26,867
26,186
6,696
6,450
Subject to guarantees
1,756
1,751
7,237
7,032
Uncollateralized and not subject to guarantees
4,166
4,172
28,371
27,720
Total loans and advances to customers, gross
297,010
297,602
284,705
270,165
Allowances
(224)
(231)
(1,715)
(1,660)
Total loans and advances to customers, net of allowances
296,786
297,371
282,990
268,505
Collateralized loans and advances to customers as a percentage of
total loans and advances to customers, gross (%)
98.0
98.0
87.5
87.1
1 Collateral arrangements
generally incorporate a
range of collateral,
including cash, equity and
debt instruments, real
estate, and other
collateral. For
the purposes of this
disclosure, UBS AG
applies a risk-based
approach that
generally prioritizes
collateral according
to its
liquidity profile.
In the
case of
loan facilities
with funded
and unfunded
elements, the
collateral is
first allocated
to the
funded element.
For legacy
Credit Suisse infrastructure, a risk-based approach is applied that
generally prioritizes real estate collateral and prioritizes
other collateral according to its liquidity profile.
In the case of loan facilities with funded and
unfunded elements, the collateral is proportionately allocated.
2 Includes but is not limited to life insurance contracts, rights in respect of subscription or capital commitments from fund partners, inventory, gold and
other commodities.
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet | Risk management and control
25
Market risk
As part
of going
live with
the Fundamental
Review of
the Trading
Book (FRTB)
framework for
the calculation
of
market-risk-related
regulatory
capital
requirements
on
1 January
2025,
UBS AG
has
adopted
the
standardized
approach for all
legal entities regulated
by the Swiss
Financial Market Supervisory Authority
(FINMA). The FINMA
value-at-risk (VaR)
multiplier derived from
negative backtesting exceptions
for market
risk risk-weighted assets
is
no longer relevant for the regulatory capital calculation.
UBS AG
excluding
certain
legacy
Credit
Suisse
components
continued
to
maintain
generally
low
levels
of
management VaR. Average management VaR (1-day,
95% confidence level) in the first quarter of 2025 decreased
to USD 9m from USD 11m,
mainly driven by the Investment Bank.
Average management
VaR (1-day,
98% confidence
level) of
the legacy
Credit Suisse
components in
the first
quarter
of 2025 decreased to USD 4m from USD 6m, driven by continued
strategic migration of positions to UBS AG and
exposure reductions in Non-core and Legacy.
Management value-at-risk (1-day, 95% confidence level, 5 years of historical data) of the business divisions and
Group Items excluding certain legacy Credit Suisse components, by general market risk type
1,2
Average by risk type
USD m
Min.
Max.
Period end
Average
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Global Wealth Management
1
2
1
2
0
1
2
0
0
Personal & Corporate Banking
0
0
0
0
0
0
0
0
0
Asset Management
0
0
0
0
0
0
0
0
0
Investment Bank
1
14
8
8
2
14
10
4
3
Non-core and Legacy
1
1
1
1
0
1
1
0
0
Group Items
3
6
4
4
1
3
3
1
0
Diversification effect
3,4
(6)
(6)
(1)
(4)
(4)
(1)
0
Total as of 31.3.25
2
15
8
9
2
15
11
5
3
Total as of 31.12.24
5
17
11
11
2
17
10
4
6
Management value-at-risk (1-day, 98% confidence level, 2 years of historical data) of certain legacy Credit
Suisse
components of the business divisions and Group Items, by general market risk type
1,2
Average by risk type
USD m
Min.
Max.
Period end
Average
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Global Wealth Management
1
1
1
1
1
0
0
0
0
Personal & Corporate Banking
0
0
0
0
0
0
0
0
0
Asset Management
0
0
0
0
0
0
0
0
0
Investment Bank
1
2
1
1
1
0
1
0
0
Non-core and Legacy
2
5
2
4
0
2
3
1
0
Group Items
0
0
0
0
0
0
0
0
0
Diversification effect
3,4
(1)
(1)
0
0
(1)
0
0
Total as of 31.3.25
3
6
3
4
1
2
3
1
0
Total as of 31.12.24
5
9
5
6
2
3
5
1
0
1 The legacy
Credit Suisse components
not included in
the UBS AG
management VaR
predominantly reflect the
portfolio in Non-core
and Legacy.
These positions
continue to be
managed on legacy
Credit Suisse
infrastructure based on legacy Credit Suisse management VaR methodology until full migration of these positions to UBS infrastructure or the liquidation of the positions. This process is ongoing, and the management
VaR of the legacy Credit Suisse components is expected to continue decreasing over
time.
2 Statistics at individual levels may not be summed
to deduce the corresponding aggregate figures. The minima and maxima
for each level may occur on different days,
and, likewise, the VaR
for each business division or risk type,
being driven by the extreme loss tail of
the corresponding distribution of simulated profits and
losses for that
business division or risk type, may well
be driven by different days in the
historical time series, rendering invalid
the simple summation of figures to arrive
at the aggregate total.
3 The difference between the
sum
of the standalone VaR
for the business divisions and
Group Items and the total
VaR.
4 As the minima and
maxima for different business divisions
and Group Items occur on
different days, it is
not meaningful to
calculate a portfolio diversification effect.
Economic value of equity and net interest income
sensitivity
The economic value of
equity (EVE) sensitivity in
UBS AG’s banking book to
a +1-basis-point parallel shift in
yield
curves was
negative USD 38.6m
as of
31 March
2025, compared
with negative
USD 37.1m as
of 31 December
2024.
This excluded
the sensitivity
of USD 7.4m
from additional
tier 1 (AT1)
capital instruments
(as per
specific
FINMA requirements) in contrast
to general Basel
Committee on Banking
Supervision (BCBS)
guidance. Exposure in
the banking book of UBS AG increased during the
first quarter of 2025, predominantly driven by
issuances of AT1
capital instruments during the quarter.
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet | Risk management and control
26
The majority of
UBS AG’s interest rate
risk in the banking
book (IRRBB) as
of 31 March 2025
was a reflection
of the
net asset duration that it
ran to offset its modeled
sensitivity of net USD 30.3m (31 December 2024: USD 29.4m)
assigned to
its equity,
goodwill and
real estate,
with the
aim of
generating a
stable net
interest income
contribution.
Of this, USD 18.1m and USD 10.5m were attributable to the US dollar and the Swiss franc portfolios, respectively,
(31 December 2024: USD 17.1m and USD 10.6m,
respectively).
In addition to the aforementioned sensitivity, UBS AG calculates the six interest rate shock
scenarios prescribed by
FINMA. The “Parallel up” scenario, assuming
all positions were measured at fair
value, was the most severe as
of
31 March 2025 and would
have resulted in a
change in EVE of
negative USD 7.1bn, or 7.9%, of
UBS AG’s tier 1
capital (31 December
2024: negative
USD 6.7bn, or
7.4%), which
is well below
the 15%
threshold as
per the
BCBS
supervisory outlier test for high levels of IRRBB.
The immediate
effect on
UBS AG’s tier 1
capital in
the “Parallel
up” scenario
as of
31 March 2025
would have
been a decrease of approximately USD 0.7bn,
or 0.8%, (31 December 2024: USD 0.9bn, or 1.0%),
reflecting the
fact that
the vast
majority of
UBS AG’s banking
book is
accrual accounted
or subject
to hedge
accounting. The
“Parallel
up”
scenario
would
subsequently
have
a
positive
effect
on
net
interest
income,
assuming
a
constant
balance sheet.
As the overall interest rate risk sensitivity shows a greater
impact from slower asset repricing compared with faster
liabilities repricing,
the “Parallel
down“ scenario
was the
most beneficial
as of
31 March 2025
and would
have
resulted in
a change
in EVE
of positive
USD 7.5bn (31 December 2024:
positive USD 7.2bn) and
a small
positive
immediate effect on UBS AG’s tier 1 capital.
›
Refer to “Interest rate risk in the banking book” in the “Risk management and control” section of the UBS AG
Annual Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more information about the
management of interest rate risk in the banking book
›
Refer to “Sensitivity to interest rate movements” in the “UBS AG consolidated performance” section of this report
for more information about the effects of increases in interest rates on the net interest income of UBS AG’s
banking book
Interest rate risk – banking book
31.3.25
USD m
Effect on EVE
1
– FINMA
Effect on EVE
1
– BCBS
Scenarios
CHF
EUR
GBP
USD
Other
Total
Additional tier 1 (AT1)
capital instruments
Total
+1 bp
(10.0)
(1.5)
(0.3)
(26.5)
(0.3)
(38.6)
7.4
(31.1)
Parallel up
2
(1,450.8)
(289.9)
(61.3)
(5,169.7)
(80.2)
(7,051.9)
1,347.7
(5,704.2)
Parallel down
2
1,543.3
317.7
72.6
5,439.3
81.7
7,454.5
(1,607.9)
5,846.5
Steepener
3
(785.1)
(15.6)
(12.7)
(1,398.6)
(19.5)
(2,231.5)
297.2
(1,934.3)
Flattener
4
518.1
(32.2)
1.0
201.9
2.6
691.4
11.0
702.4
Short-term up
5
(85.4)
(118.7)
(20.9)
(1,939.0)
(28.1)
(2,192.1)
595.9
(1,596.2)
Short-term down
6
55.3
118.0
20.9
2,040.0
28.7
2,263.0
(620.3)
1,642.6
31.12.24
USD m
Effect on EVE
1
– FINMA
Effect on EVE
1
– BCBS
Scenarios
CHF
EUR
GBP
USD
Other
Total
Additional tier 1 (AT1)
capital instruments
Total
+1 bp
(10.5)
(1.3)
(0.3)
(24.6)
(0.5)
(37.1)
5.6
(31.6)
Parallel up
2
(1,510.7)
(251.8)
(64.4)
(4,747.8)
(96.2)
(6,670.9)
1,009.9
(5,661.1)
Parallel down
2
1,644.9
280.0
74.0
5,054.3
101.7
7,154.8
(1,183.4)
5,971.4
Steepener
3
(748.7)
(4.0)
(10.6)
(1,253.2)
(9.2)
(2,025.8)
167.6
(1,858.2)
Flattener
4
463.5
(37.8)
(2.2)
161.3
(11.0)
573.7
63.6
637.4
Short-term up
5
(150.2)
(112.6)
(24.0)
(1,815.4)
(46.8)
(2,148.9)
490.6
(1,658.3)
Short-term down
6
133.4
112.5
24.7
1,926.2
47.4
2,244.2
(510.8)
1,733.4
1 Economic value
of equity.
2 Rates across
all tenors move
by ±150 bps
for Swiss franc,
±200 bps for
euro and US
dollar, and
±250 bps for
pound sterling.
3 Short-term rates
decrease and long-term
rates
increase.
4 Short-term rates increase and long-term rates decrease.
5 Short-term rates increase more than long-term rates.
6 Short-term rates decrease more than long-term rates.
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet | Risk management and control
27
Country risk
UBS AG remains watchful of a range of geopolitical developments
and political changes in a number of countries,
as well
as global
trade relations,
including policies
related to
tariffs, and
international tensions
from the
Russia–
Ukraine war. UBS AG also continues
to monitor conflicts
in the Middle East.
As of 31 March 2025,
UBS AG’s direct
exposure to Israel was less than USD 0.5bn and its direct exposure to Gulf Cooperation Council countries was less
than USD 5bn,
while its direct exposure to
Egypt and Jordan was
limited, and there was
no direct exposure to Iran,
Iraq, Lebanon or Syria. UBS AG’s direct exposure to Russia
as of 31 March 2025 was less than
USD 0.5bn,
and its
direct
exposure
to
Belarus and
Ukraine remained
immaterial.
Potential second-order
impacts, such
as European
energy security, continue to be monitored.
In the first quarter
of 2025, inflation abated
to some extent in
major Western economies, although there are
still
concerns
regarding
future
developments,
and
central
banks’
monetary
policies
and
trade
policies
and
barriers
remain
in
the
spotlight.
In
China,
tariffs
imposed
by
the
US,
stress
in
the
property
sector
and
strained
local
government
finances
continue
to
have
an
adverse
impact
on
economic
growth,
raising
the
risk
of
financial
instability. This combination of
factors translates into
a more uncertain
and volatile environment, which
increases
the risk of financial market disruption.
UBS AG continues
to monitor
ongoing trade
policy disputes,
as well
as economic
and political
developments in
addition to those mentioned above. As of 31 March 2025, UBS AG’s exposure to emerging market countries was
less than 10%
of its total country exposure and mainly
to certain countries in Asia.
›
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
Non-financial risk
Compliance risk
Achieving
fair
outcomes
for
our
clients,
upholding
market
integrity
and
cultivating
the
highest
standards
of
employee conduct
are of
critical importance
to us.
Therefore,
we maintain
a conduct
risk framework
across our
activities, which is designed to align our standards and
conduct with these objectives and to retain momentum
on
fostering a strong culture.
Suitability risk,
product selection,
cross-divisional service
offerings, quality
of advice
and price
transparency continue
to be
areas of
heightened focus
for the
Group, UBS AG
and for
the industry
as a
whole. Cross-border
risk (including
the
risk
of
unintended
permanent
establishment)
remains
an
area
of
regulatory
attention
for
global
financial
institutions, including a focus on
market access, such as third-country
market access into the European Economic
Area.
We
maintain
a
series
of
controls
designed
to
address
these
risks,
and
we
are
increasing
the
number
of
automated controls, thereby increasing overall
control coverage.
Reputational
risk,
regulatory
fragmentation
related
to
environmental,
social
and
governance
topics,
and
the
elevated risk of greenwashing arising from our service offering,
disclosures and commitments remain key risks for
2025.
Financial crime risk
Financial crime, including
money laundering, terrorist
financing, sanctions violations,
fraud, bribery and
corruption,
presents a major risk, as technological innovation and geopolitical developments increase the complexity of doing
business and heightened regulatory attention continues.
An effective financial crime prevention
program therefore remains essential,
and we continue to focus on
strategic
enhancements to our global anti-money-laundering, know-your-client and sanctions
programs. Money laundering
and
financial
fraud
techniques
are
becoming
increasingly
sophisticated,
and
geopolitical
volatility
makes
the
sanctions
landscape more
complex.
The
extensive
and
continuously evolving
sanctions arising
from
the
Russia–
Ukraine war
require constant
attention to
prevent circumvention
risks, while
conflicts in
the Middle
East may
further
increase terrorist-financing
risks. Complex
investment and
technology restrictions, coupled
with relatively
limited
asset-freeze sanctions,
apply
in the
case of
China, which
has in
response imposed
both its
own restrictions
and
domestic laws countering the sanctions,
and we will continue to closely monitor this
situation as it evolves.
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet | Risk management and control
28
Operational risk
There is an increased risk of cyber-related operational disruption
to business activities at
our locations and those of
third-party
suppliers
due
to
operating
a
more
complex
set
of
legal
entities
since
the
merger
of
UBS AG
and
Credit Suisse AG
and
the
increasingly
dynamic
threat
environment,
which
is
intensified
by
current
geopolitical
factors and
evidenced by
continuing high
volumes of,
and the
increasing sophistication
of, cyberattacks
against
financial institutions globally and on third-party service
providers.
We remain on
heightened alert to
respond to and
mitigate elevated cyber-
and information-security threats, and
continue to invest in improving our technology infrastructure and information-security
governance to improve our
defense, detection and response capabilities
against attacks. In addition, we operate
a global framework designed
to drive enhancements in operational resilience across all business divisions and relevant jurisdictions, and we also
work
with
the
third-party
service
providers
that
are
of
critical
importance
to
our
operations
to
assess
their
operational resilience against our standards and
to mitigate any identified risks.
The
increasing
interest
in
data-driven
advisory
processes
and
the
use
of
artificial
intelligence
(AI)
and
machine
learning are opening up new questions related
to the fairness of AI
algorithms, data life-cycle management, data
ethics, data privacy and security, and records
management.
Legal entity
integration, including
that of
existing Credit
Suisse businesses,
and the
closing of
legacy businesses
introduce operational
complexity and
the risk
that businesses
in wind-down
are not
effectively managed.
These
risks continue
to be
carefully monitored
in addition
to the
delivery of
consolidated financial
and regulatory
reporting
submissions.
Capital management
The disclosures
in this
section are
provided for
UBS AG on
a consolidated
basis and
focus on
key developments
during
the
reporting period
and
information in
accordance with
the
Basel III
framework, as
applicable to
Swiss
systemically relevant
banks (SRBs). They
should be read
in conjunction with
“Capital management”
in the “Capital,
liquidity and
funding, and
balance sheet”
section of
the UBS AG
Annual Report
2024, available
under “Annual
reporting” at
ubs.com/investors
, which provides more information about relevant capital management objectives,
planning
and
activities, as
well
as
the
Swiss
SRB
total
loss-absorbing capacity
(TLAC) framework,
on
a
UBS AG
consolidated basis.
In Switzerland, the
amendments to the Capital
Adequacy Ordinance (the CAO) that
incorporate the final Basel III
standards into
Swiss law,
including the
five new
ordinances that
contain the
implementing provisions
for the
revised
CAO, entered into force on 1 January 2025.
UBS AG contributes
a significant portion
of capital to,
and provides substantial
liquidity to, its
subsidiaries. Many of
these
subsidiaries
are
subject
to
regulations
requiring
compliance
with
minimum
capital,
liquidity
and
similar
requirements.
›
Refer to the UBS Group and significant regulated subsidiaries and sub-groups 31 March 2025 Pillar 3 Report,
available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about additional regulatory
disclosures for UBS Group AG on a consolidated basis, as well as the significant regulated subsidiaries and sub-
groups of UBS Group AG
›
Refer to “Developments related to the implementation of the final Basel III standards” in the “Recent
developments” section for more information about the incorporation of the final Basel III standards in Switzerland
and globally; for specific impacts of the implementation of the final Basel III standards on risk-weighted assets
(RWA) and leverage ratio denominator (LRD), refer to “Risk-weighted assets” and “Leverage ratio denominator” in
this section
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet | Capital management
29
Swiss SRB going and gone concern requirements and information
As of 31.3.25
RWA
LRD
USD m, except where indicated
in %
in %
Required going concern capital
Total going concern capital
14.96
1
72,036
5.02
1
78,554
Common equity tier 1 capital
10.61
2
51,092
3.52
3
55,067
of which: minimum capital
4.50
21,669
1.50
23,488
of which: buffer capital
5.50
26,485
2.00
31,317
of which: countercyclical buffer
0.44
2,123
Maximum additional tier 1 capital
4.35
2
20,944
1.50
23,488
of which: additional tier 1 capital
3.50
16,854
1.50
23,488
of which: additional tier 1 buffer capital
0.80
3,852
Eligible going concern capital
Total going concern capital
18.50
89,081
5.69
89,081
Common equity tier 1 capital
14.69
70,756
4.52
70,756
Total loss-absorbing additional tier 1 capital
3.81
18,325
1.17
18,325
of which: high-trigger loss-absorbing additional tier 1 capital
3.81
18,325
1.17
18,325
Required gone concern capital
Total gone concern loss-absorbing capacity
4,5,6
10.73
51,645
3.75
58,719
of which: base requirement including add-ons for market share and LRD
10.73
7
51,645
3.75
7
58,719
Eligible gone concern capital
Total gone concern loss-absorbing capacity
19.46
93,705
5.98
93,705
Total tier 2 capital
0.04
205
0.01
205
of which: non-Basel III-compliant tier 2 capital
0.04
205
0.01
205
TLAC-eligible unsecured debt
19.42
93,499
5.97
93,499
Total loss-absorbing capacity
Required total loss-absorbing capacity
25.68
123,681
8.77
137,273
Eligible total loss-absorbing capacity
37.96
182,786
11.67
182,786
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
481,539
Leverage ratio denominator
1,565,845
1 Includes applicable add-ons of 1.66% for risk-weighted assets (RWA) and 0.52% for leverage ratio denominator (LRD), of which 5 basis points for RWA and 2 basis points for LRD reflect a Pillar 2 capital add-on of
USD 262m related to the supply chain
finance funds matter at Credit
Suisse. An additional 16
basis points for RWA reflect
a Pillar 2 capital add-on
for uncollateralized exposures to hedge
funds, private equity
and
family offices, effective 1 January 2025.
2 Includes the Pillar 2 add-on for uncollateralized exposures to hedge funds, private equity and family
offices of 0.11% for CET1 capital and 0.05% for AT1 capital, effective
1 January 2025. For AT1 capital, under Pillar 1 requirements, a maximum of 4.3% of AT1 capital can be used to meet going concern requirements; 4.35% includes the aforementioned Pillar 2 capital add-on.
3 The
CET1 leverage ratio requirement of 3.52% consists of a 1.5%
base requirement, a 1.5% base buffer capital requirement, a 0.25% LRD add-on
requirement, a 0.25% market share add-on requirement
based on our
Swiss credit business and a 0.02% Pillar 2 capital add-on related to the supply chain finance funds matter at Credit Suisse.
4 A maximum of 25% of the gone concern requirements can be met with instruments that
have a remaining maturity of between one and
two years. Once at least 75% of the
minimum gone concern requirement has been met with
instruments that have a remaining maturity of greater than
two years, all
instruments that have a remaining
maturity of between one and
two years remain eligible to
be included in the total
gone concern capital.
5 From 1 January
2023, the resolvability discount
on the gone concern
capital requirements for systemically
important banks (SIBs) has
been replaced with reduced
base gone concern capital requirements
equivalent to 75% of the
total going concern requirements
(excluding countercyclical
buffer requirements and
the Pillar 2
add-ons).
6 As of
July 2024, FINMA
has the authority
to impose a
surcharge of up
to 25% of
the total going
concern capital requirements
(excluding countercyclical buffer
requirements and the Pillar 2 add-ons) should obstacles to an SIB’s resolvability be identified
in future resolvability assessments.
7 Includes applicable add-ons of 1.08% for RWA and 0.38% for LRD.
UBS AG, on a consolidated basis, is subject to
the going and gone concern requirements of the Swiss
CAO, which
include the too-big-to-fail (TBTF) provisions applicable
to Swiss SRBs. The table above provides the RWA-
and LRD-
based requirements and information as of 31 March 2025.
UBS AG and UBS Switzerland AG are subject
to going and gone concern requirements
on a standalone basis.
Effective 1 January 2025,
a Pillar 2 capital
add-on for uncollateralized
exposures to hedge
funds, private equity
and
family offices has been introduced.
This resulted in an increase of
16 basis points in the RWA-based
going concern
capital requirement as of 31 March 2025.
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet | Capital management
30
Total loss-absorbing capacity
The table below provides Swiss SRB going and gone concern information based on the Swiss SRB
framework and
requirements that are discussed under “Capital management” in the “Capital, liquidity and funding, and
balance
sheet”
section
of
the
UBS AG
Annual
Report
2024,
available
under
“Annual
reporting”
at
ubs.com/investors
.
Changes to the Swiss SRB framework
and requirements after the publication of the
UBS AG Annual Report 2024
are described above.
Swiss SRB going and gone concern information
USD m, except where indicated
31.3.25
31.12.24
Eligible going concern capital
Total going concern capital
89,081
89,623
Total tier 1 capital
89,081
89,623
Common equity tier 1 capital
70,756
73,792
Total loss-absorbing additional tier 1 capital
18,325
15,830
of which: high-trigger loss-absorbing additional tier 1 capital
18,325
14,585
of which: low-trigger loss-absorbing additional tier 1 capital
1,245
Eligible gone concern capital
Total gone concern loss-absorbing capacity
93,705
92,177
Total tier 2 capital
205
207
of which: non-Basel III-compliant tier 2 capital
205
207
TLAC-eligible unsecured debt
93,499
91,970
Total loss-absorbing capacity
Total loss-absorbing capacity
182,786
181,800
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
481,539
495,110
Leverage ratio denominator
1,565,845
1,523,277
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
18.5
18.1
of which: common equity tier 1 capital ratio
14.7
14.9
Gone concern loss-absorbing capacity ratio
19.5
18.6
Total loss-absorbing capacity ratio
38.0
36.7
Leverage ratios (%)
Going concern leverage ratio
5.7
5.9
of which: common equity tier 1 leverage ratio
4.5
4.8
Gone concern leverage ratio
6.0
6.1
Total loss-absorbing capacity leverage ratio
11.7
11.9
Total loss-absorbing capacity and movement
TLAC increased by USD 1.0bn to USD 182.8bn in
the first quarter of 2025.
Going concern capital and movement
Going concern capital decreased by USD 0.5bn to
USD 89.1bn. Common equity tier 1 (CET1)
capital decreased by
USD 3.0bn to
USD 70.8bn, mainly
as operating
profit before
tax of
USD 1.3bn and
foreign currency
translation
gains
of
USD 0.8bn
were
more
than
offset
by
dividend
accruals
of
USD 4.5bn,
and
current
tax
expenses
of
USD 0.4bn.
Loss-absorbing additional tier 1 (AT1) capital issued by the Group
and on lent to UBS AG increased by
USD 2.5bn
to USD 18.3bn,
reflecting the
issuance of
new AT1
capital instruments
equivalent
to USD 3.0bn
and positive
impacts
from interest rate risk hedge, foreign currency translation and other effects, partly offset by the call of AT1 capital
instruments equivalent to USD 1.3bn.
Following the approval of a maximum amount of conversion capital by UBS Group AG’s shareholders at the 2024
Annual General
Meeting, AT1
capital instruments
issued by
UBS Group AG
from the
beginning of
the fourth
quarter
of 2023 are, upon the occurrence of a trigger event or
a viability event, subject to conversion into UBS Group AG
ordinary shares
rather than
a write-down.
AT1 capital
instruments issued
prior to the
fourth quarter
of 2023
remain
subject to
a write-down.
The corresponding
AT1 capital
instruments on
lent to
UBS AG contain
the same
provisions.
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet | Capital management
31
Gone concern loss-absorbing capacity and movement
Total
gone concern loss-absorbing capacity
increased by
USD 1.5bn to USD 93.7bn
and included USD 93.5bn
of
TLAC-eligible unsecured debt instruments that were
issued by the Group
and on lent to
UBS AG. The increase of
USD 1.5bn mainly reflected new issuances of TLAC-eligible senior unsecured debt
instruments totaling USD 3.0bn
equivalent and positive impacts from interest rate risk hedge, foreign currency translation
and other effects. These
effects were partly
offset by the
call of USD 3.7bn equivalent
of TLAC-eligible senior unsecured
debt instruments
and a USD 0.2bn TLAC-eligible
senior unsecured debt instrument
ceasing to be eligible
as gone concern capital,
as
it entered the final year before maturity.
›
Refer to “Bondholder information” at
ubs.com/investors
for more information about the eligibility and key features
and terms and conditions of capital instruments
Loss-absorbing capacity and leverage ratios
The CET1
capital ratio
decreased to
14.7% from
14.9%, reflecting a
USD 3.0bn decrease
in CET1
capital, partly
offset by a USD 13.6bn decrease in RWA.
The
CET1
leverage
ratio
decreased
to
4.5%
from
4.8%,
driven
by
a
USD 42.6bn
increase
in
the
LRD
and
the
aforementioned decrease in CET1 capital.
The going concern capital ratio increased to 18.5%
from 18.1%, reflecting a USD 13.6bn decrease
in RWA, partly
offset by a USD 0.5bn decrease in going concern
capital.
The going concern
leverage ratio
decreased to 5.7%
from 5.9%, reflecting
the aforementioned
increase in the
LRD
and a USD 0.5bn decrease in going concern capital.
The gone
concern loss-absorbing
capacity ratio
increased to
19.5% from
18.6%, reflecting
the aforementioned
decrease in RWA and a USD 1.5bn increase in
gone concern loss-absorbing capacity.
The gone concern
leverage ratio decreased
to 6.0%
from 6.1%, reflecting
the aforementioned
increase in the
LRD,
partly offset by the aforementioned increase
in gone concern loss-absorbing capacity.
Swiss SRB total loss-absorbing capacity movement
USD m
Going concern capital
Swiss SRB
Common equity tier 1 capital as of 31.12.24
73,792
Operating profit / (loss) before tax
1,339
Current tax (expense) / benefit
(431)
Foreign currency translation effects, before tax
796
Other
1
(4,739)
Common equity tier 1 capital as of 31.3.25
70,756
Loss-absorbing additional tier 1 capital as of 31.12.24
15,830
Issuance of high-trigger loss-absorbing additional tier 1 capital
3,000
Call of low-trigger loss-absorbing additional tier 1 capital
(1,250)
Interest rate risk hedge, foreign currency translation and other effects
744
Loss-absorbing additional tier 1 capital as of 31.3.25
18,325
Total going concern capital as of 31.12.24
89,623
Total going concern capital as of 31.3.25
89,081
Gone concern loss-absorbing capacity
Tier 2 capital as of 31.12.24
207
Interest rate risk hedge, foreign currency translation and other effects
(1)
Tier 2 capital as of 31.3.25
205
TLAC-eligible unsecured debt as of 31.12.24
91,970
Issuance of TLAC-eligible unsecured debt
3,046
Call of TLAC-eligible unsecured debt
(3,714)
Debt no longer eligible as gone concern loss-absorbing capacity
due to residual tenor falling to below one year
(165)
Interest rate risk hedge, foreign currency translation and other effects
2,362
TLAC-eligible unsecured debt as of 31.3.25
93,499
Total gone concern loss-absorbing capacity as of 31.12.24
92,177
Total gone concern loss-absorbing capacity as of 31.3.25
93,705
Total loss-absorbing capacity
Total loss-absorbing capacity as of 31.12.24
181,800
Total loss-absorbing capacity as of 31.3.25
182,786
1 Includes dividend accruals for 2025 (negative USD 4.5bn) and movements related to other items.
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet | Capital management
32
Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital
USD m
31.3.25
31.12.24
Total equity under IFRS Accounting Standards
97,123
94,666
Equity attributable to non-controlling interests
(569)
(662)
Defined benefit plans, net of tax
(938)
(822)
Deferred tax assets recognized for tax loss carry-forwards
(2,210)
(2,288)
Deferred tax assets for unused tax credits
(817)
(688)
Deferred tax assets on temporary differences, excess over threshold
(162)
Goodwill, net of tax
1
(6,231)
(6,207)
Intangible assets, net of tax
(105)
(103)
Expected losses on advanced internal ratings-based portfolio less provisions
(579)
(569)
Unrealized (gains) / losses from cash flow hedges, net of tax
2,051
2,585
Own credit related to (gains) / losses on financial liabilities
measured at fair value that existed at the balance sheet date, net of tax
943
1,179
Own credit related to (gains) / losses on derivative financial instruments
that existed at the balance sheet date
(70)
(62)
Prudential valuation adjustments
(165)
(167)
Accruals for dividends to shareholders for 2024
2
(13,000)
(13,000)
Other
(4,515)
3
(69)
Total common equity tier 1 capital
70,756
73,792
1 Includes goodwill related
to significant investments
in financial institutions of
USD 19m as of
31 March 2025
(USD 19m as of
31 December 2024)
presented on the balance
sheet line Investments in
associates.
2 Reflects an ordinary dividend distribution of USD 6,500m and the appropriation of USD 6,500m to a special dividend reserve, both approved at the 2025 Annual General
Meeting in April 2025. 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.
3 Includes dividend accruals for 2025 and other items.
Additional information
Sensitivity to currency movements
Risk-weighted assets
We estimate that a 10% depreciation of the US dollar against other currencies would have increased our RWA by
USD 21bn and
our CET1
capital by
USD 2.5bn as
of 31
March 2025
(31 December
2024: USD 21bn
and USD 2.6bn,
respectively)
and
decreased
our
CET1
capital
ratio
by
10
basis
points
(31
December
2024:
11
basis
points).
Conversely,
a
10%
appreciation
of
the
US
dollar
against
other
currencies
would
have
decreased
our
RWA
by
USD 19bn and our
CET1 capital by
USD 2.3bn (31 December
2024: USD 19bn and
USD 2.3bn, respectively) and
increased our CET1 capital ratio by 10 basis points
(31 December 2024: 11 basis points).
Leverage ratio denominator
We estimate that a
10% depreciation of the
US dollar against other
currencies would have increased
our LRD by
USD 100bn as
of 31
March 2025
(31 December
2024: USD 97bn)
and decreased
our CET1
leverage ratio by
12
basis points (31 December
2024: 13 basis points).
Conversely,
a 10% appreciation
of the US
dollar against other
currencies would have decreased
our LRD by USD 90bn
(31 December 2024: USD 88bn) and
increased our CET1
leverage ratio by 12 basis points (31 December
2024: 13 basis points).
The aforementioned
sensitivities do
not consider
foreign currency
translation effects
related to
defined benefit
plans
other than those related to the currency
translation of the net equity of foreign operations.
›
Refer to “Active management of sensitivity to foreign exchange movements” under “Capital management” in the
“Capital, liquidity and funding, and balance sheet” section of the UBS AG Annual Report 2024, available under
“Annual reporting” at
ubs.com/investors
, for more information
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet | Capital management
33
Risk-weighted assets
During the first quarter of
2025, RWA decreased by
USD 13.6bn to USD 481.5bn,
driven by a USD 9.5bn decrease
resulting from asset size
and other movements, an
USD 8.6bn reduction as a
result of the
implementation of the
final Basel III standards,
and a USD 1.1bn
reduction resulting
from model updates
and other methodology
changes.
These decreases were partly offset by a USD
5.7bn increase in currency effects.
Movement in risk-weighted assets, by key driver
USD bn
RWA as of
31.12.24
Currency
effects
Impact from the
implementation
of final Basel III
standards
Model updates
and other
methodology
changes
Asset size and
other
1
RWA as of
31.3.25
Credit and counterparty credit risk
2
292.3
5.4
(6.1)
(1.1)
(6.6)
283.9
Non-counterparty-related risk
3
30.2
0.4
(0.7)
29.9
Market risk
27.2
6.5
(2.3)
31.4
Operational risk
145.4
(9.0)
136.4
Total
495.1
5.7
(8.6)
(1.1)
(9.5)
481.5
1 Includes the Pillar 3 categories “Asset
size”, “Credit quality of counterparties”, “Acquisitions
and disposals” and “Other”. For
more information, refer to the UBS Group
and significant regulated subsidiaries and
sub-groups 31 March 2025
Pillar 3 Report, available
under “Pillar 3 disclosures”
at ubs.com/investors.
2 Includes settlement risk,
credit valuation adjustments,
equity and investments
in funds exposures
in the
banking book, and securitization exposures in the banking book.
3 Non-counterparty-related risk includes deferred tax assets recognized for temporary differences,
property, equipment, software and other items.
Credit and counterparty credit risk
Credit and counterparty credit risk RWA decreased by
USD 8.4bn to USD 283.9bn as of 31 March 2025, driven by
a
USD 6.6bn
decrease
resulting
from
asset
size
and
other
movements,
a
decrease
of
USD 6.1bn
due
to
the
implementation
of
the
final
Basel III
standards,
and
a
USD 1.1bn
decrease
reflecting
model
updates
and
other
methodology changes, partly offset by an
increase of USD 5.4bn resulting from currency
effects.
In Switzerland,
the amendments
to the
CAO that
incorporate the
final Basel III
standards into
Swiss law
entered
into force on 1 January 2025. The main changes relate to restrictions on using internal ratings-based (IRB) models
for
exposures
to
financial
institutions
and
large
corporate
clients,
a
revised
standardized
approach
with
more
granular risk weights, and a revised credit valuation
adjustment framework.
The
aforementioned
USD 6.1bn
impact
from
the
implementation
of
the
final
Basel III
standards
on
credit
and
counterparty credit risk RWA
was primarily due to the
removal of a 1.06 multiplier
on risk weights calculated
using
IRB
models, which
more than
offset other
changes, including
the establishing
of floors
and the
introduction of
regulatory-mandated loss given default parameters
to financial institutions and large corporate
clients.
Asset size and other movements by business
division and Group Items:
–
Non-core and
Legacy RWA
decreased by
USD 5.1bn,
mainly driven
by our
actions to
actively unwind
the portfolio,
in addition to the natural roll-off.
The first quarter of 2025 included the sale of Select Portfolio Servicing, which
resulted in an RWA decrease of USD 1.3bn.
–
Global Wealth Management RWA decreased by
USD 1.0bn, mainly driven by lower RWA from loans.
–
Investment Bank
RWA
decreased
by
USD
0.7bn,
mainly
due
to
lower
RWA
from derivatives,
partly
offset
by
higher RWA from loans and loan commitments.
–
Personal & Corporate Banking RWA decreased by
USD 0.4bn.
–
Asset Management RWA decreased by USD 0.1bn.
–
Group Items RWA increased by
USD 0.7bn, mainly as
a result of higher
intercompany exposures to UBS Group
AG, partly offset by higher allocation of high-quality
liquid assets (HQLA) to business divisions.
Model updates and other methodology
changes not related to the
implementation of the final Basel III
standards
resulted in a
USD 1.1bn reduction
in RWA, mainly
reflecting decreases
related to the
establishment of
a new model
for
private
equity
subscription
loans
and
also
related
to
the
recalibration
of
certain
multipliers
as
a
result
of
improvements to
models, partly
offset by
an increase
related to
a model
update for
securities financing
transactions.
›
Refer to the UBS Group and significant regulated subsidiaries and sub-groups 31 March 2025 Pillar 3 Report,
available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information on a UBS Group AG consolidated
basis
›
Refer to “Credit risk” in the “Risk management and control” section of this report for more information
›
Refer to “Developments related to the implementation of the final Basel III standards” in the “Recent
developments” section of this report for more information about the incorporation of the final Basel III standards
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet | Capital management
34
Market risk
Market risk RWA
increased by USD
4.2bn to USD 31.4bn
in the first quarter
of 2025, driven by
the implementation
of the Fundamental Review of the
Trading Book (the FRTB) framework, which
increased RWA by USD 6.5bn. This
increase was partly
offset by
an asset
size decrease
of USD
2.3bn, largely
due to de-risking
within Non-core and
Legacy.
The final
Basel III standards
on the
minimum capital
requirements for
market risk
from the
Basel Committee
on
Banking Supervision,
known as
the FRTB
framework, entered
into
force in
Switzerland on
1 January 2025.
UBS
currently
applies
the
standardized
approach
of
the
FRTB
framework,
in
which
minimum
market
risk
capital
requirements are
computed on
the basis
of three
components: the
sensitivities-based
method (the
SBM), the
default
risk charge (the DRC)
and the residual risk
add-on (the RRAO). The
SBM captures the delta,
vega and curvature risk
of the
underlying trading
positions, and
the DRC
captures the
jump-to-default risk in
positions subject
to equity
and credit risk. In addition, positions that may not be adequately capitalized by the SBM and the DRC additionally
attract
an
RRAO
charge.
The
new
FRTB
framework
replaced
the
value-at-risk
(VaR)-
and
stressed
VaR-based
Basel 2.5 market risk framework.
›
Refer to “Market risk” in the “Risk management and control” section of this report for more information
›
Refer to “Developments related to the implementation of the final Basel III standards” in the “Recent
developments” section of this report for more information about the incorporation of the final Basel III standards
Operational risk
Operational
risk
RWA
decreased
by
USD 9.0bn
to
USD 136.4bn,
as
a
result
of
the
implementation
of
the
standardized approach
for determining
regulatory capital.
The allocation
methodology for
operational risk
RWA
has been adjusted
to better reflect
the contributions of
each division to
the RWA calculation
under the final
Basel III
standards.
Under
the
revised
approach,
allocations
are
based
on
historical
losses
and
revenues
in
approximate
proportion to the weight that these factors
have in the standardized approach calculation.
The
final
Basel III
standards
on
the
operational
risk
capital
requirements
entered
into
force
in
Switzerland
on
1 January 2025. The standardized approach is based
on the business indicator component, which
is derived from
financial
statement
metrics,
as
well
as
the
internal
loss
multiplier,
which
is
derived
from
average
historical
operational losses. The new framework replaced
the advanced measurement approach.
›
Refer to “Developments related to the implementation of the final Basel III standards” in the “Recent
developments” section of this report for more information about the incorporation of the final Basel III standards
Risk-weighted assets, by business division and Group Items
USD bn
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group
Items
Total
RWA
31.3.25
Credit and counterparty credit risk
1
96.1
115.7
6.4
53.2
6.8
5.7
283.9
Non-counterparty-related risk
2
5.1
2.3
0.6
3.3
0.7
17.9
29.9
Market risk
0.8
0.1
28.0
2.4
0.0
31.4
Operational risk
60.4
18.5
6.5
23.8
24.0
3.2
136.4
Total
162.4
136.6
13.5
108.3
34.0
26.8
481.5
31.12.24
Credit and counterparty credit risk
1
93.6
120.7
7.0
56.3
10.6
4.1
292.3
Non-counterparty-related risk
2
5.3
2.2
0.5
3.1
0.8
18.3
30.2
Market risk
2.7
0.2
0.0
22.1
2.2
0.0
27.2
Operational risk
63.2
19.3
7.2
24.4
27.1
4.2
145.4
Total
164.8
142.5
14.8
106.0
40.6
26.6
495.1
31.3.25 vs 31.12.24
Credit and counterparty credit risk
1
2.5
(5.1)
(0.5)
(3.1)
(3.8)
1.5
(8.4)
Non-counterparty-related risk
2
(0.2)
0.2
0.0
0.2
(0.1)
(0.3)
(0.3)
Market risk
(1.9)
(0.2)
0.0
5.9
0.3
0.0
4.2
Operational risk
(2.8)
(0.8)
(0.8)
(0.7)
(3.0)
(1.0)
(9.0)
Total
(2.4)
(5.8)
(1.3)
2.3
(6.6)
0.3
(13.6)
1 Includes settlement risk, credit valuation adjustments,
equity and investments in funds exposures in the
banking book, and securitization exposures in the banking
book.
2 Non-counterparty-related risk includes
deferred tax assets
recognized for temporary
differences (31 March
2025: USD 17.7bn; 31
December 2024: USD
17.9bn), as well
as property,
equipment, software and
other items (31
March 2025: USD 12.2bn;
31 December 2024: USD 12.2bn).
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet | Capital management
35
Leverage ratio denominator
During the
first quarter
of 2025,
the LRD
increased by
USD 42.6bn to
USD 1,565.8bn, driven
by an
increase of
USD 28.8bn as a result
of the implementation of the
final Basel III standards and currency
effects of USD 26.6bn,
partly offset by asset size and other movements
of USD 12.8bn.
Movement in leverage ratio denominator, by key driver
USD bn
LRD as of
31.12.24
Currency
effects
Impact from the
implementation of
final Basel III
standards
Asset size and
other
LRD as of
31.3.25
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
1
1,143.9
21.3
(1.9)
24.3
1,187.6
Derivative exposures
132.2
1.5
37.5
(21.8)
149.3
Securities financing transaction exposures
177.1
2.6
(0.2)
(14.7)
164.7
Off-balance sheet items
1
70.1
1.1
(6.5)
(0.5)
64.2
Total
1,523.3
26.6
28.8
(12.8)
1,565.8
1 From the first quarter of 2025
onward, we have included the assets deducted from tier
1 capital items in On-balance sheet exposures and
Off-balance sheet items. The
comparative-period information has been
amended to reflect the
disclosure format changes for
the new final Basel
III standards. Refer
to the UBS AG
Annual Report 2024,
available under “Annual
reporting” at ubs.com/investors,
for more information
about previously published disclosures.
The impact from the implementation of the final Basel III standards on the LRD was an increase of USD 28.8bn. In
Switzerland, the amendments to the CAO that incorporate the final Basel III standards into Swiss law entered into
force on 1 January
- The
increase was
mainly in
derivatives, as
a result
of the
change from
the current
exposure
method to the standardized approach for counterparty
credit risk, including the application of the prescribed 1.4×
multiplier to address risks, for
example wrong-way risk, that are
not directly captured in
the framework. This was
partly offset
by decreases in
off-balance sheet positions
resulting from
a change to
credit conversion
factors and
on-balance sheet exposures due to an alignment of the
consolidation scope between RWA and LRD.
›
Refer to “Developments related to the implementation of the final Basel III standards” in the “Recent
developments” section of this report for more information about the implementation of the final Basel III standards
The LRD movements
described below
exclude currency
effects and the
impact from the
implementation of
the final
Basel III standards.
On-balance sheet exposures (excluding derivatives and securities financing transactions)
increased by USD 24.3bn,
mainly
reflecting
increases
in
the
HQLA
portfolio
and
cash
and
balances
at
central
banks
in
Group
Treasury.
Furthermore, there
were also
increases in
trading portfolio
assets, reflecting
an increase
in inventory
held in
the
Investment Bank.
Derivative
exposures
decreased
by
USD 21.8bn,
mainly
due
to
mark-to-market
movements
in
foreign
currency
contracts and lower trading volumes in the
Investment Bank.
Securities financing transactions exposures decreased by USD 14.7bn,
mainly due to roll-offs of cash reinvestment
trades in Group Treasury.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about balance sheet
movements
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet | Capital management
36
Leverage ratio denominator, by business division and Group Items
USD bn
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
31.3.25
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
1
488.0
406.4
3.8
251.5
23.3
14.7
1,187.6
Derivative exposures
25.1
6.2
0.0
113.8
4.0
0.2
149.3
Securities financing transaction exposures
57.0
37.1
0.1
63.4
6.8
0.3
164.7
Off-balance sheet items
1
18.0
29.0
0.1
16.1
0.6
0.3
64.2
Total
588.0
478.6
4.0
444.9
34.7
15.6
1,565.8
31.12.24
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
1
475.4
399.8
3.8
211.1
39.3
14.5
1,143.9
Derivative exposures
12.2
6.0
0.0
104.6
9.7
(0.2)
132.2
Securities financing transaction exposures
71.6
44.8
0.1
59.2
2.3
(0.9)
177.1
Off-balance sheet items
1
18.4
31.3
0.1
18.2
1.8
0.2
70.1
Total
577.5
481.8
4.1
393.2
53.1
13.6
1,523.3
31.3.25 vs 31.12.24
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
12.6
6.6
0.0
40.4
(16.1)
0.2
43.7
Derivative exposures
12.9
0.2
0.0
9.3
(5.6)
0.4
17.2
Securities financing transaction exposures
(14.6)
(7.7)
0.0
4.2
4.5
1.2
(12.4)
Off-balance sheet items
(0.4)
(2.3)
(0.1)
(2.1)
(1.2)
0.1
(5.9)
Total
10.5
(3.2)
(0.1)
51.8
(18.4)
2.0
42.6
1 From the first
quarter of 2025 onward,
we have included the
assets deducted from tier
1 capital items in
On-balance sheet exposures and
Off-balance sheet items.
The comparative-period
information has been
amended to reflect the disclosure format changes for the new final Basel III standards. Refer to the UBS AG Annual Report 2024, available under “Annual
reporting” at ubs.com/investors, for more information about
previously published disclosures.
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet | Liquidity and funding management
37
Liquidity and funding management
Strategy, objectives and governance
This
section
provides
liquidity
and
funding
management
information
and
should
be
read
in
conjunction
with
“Liquidity and
funding management”
in
the “Capital,
liquidity and
funding, and
balance sheet”
section of
the
UBS AG
Annual
Report
2024,
available
under
“Annual
reporting”
at
ubs.com/investors
,
which
provides
more
information
about
UBS AG’s
strategy,
objectives
and
governance
in
connection
with
liquidity
and
funding
management.
Liquidity coverage ratio
The quarterly average liquidity
coverage ratio (the
LCR) of UBS AG
consolidated decreased 5.8 percentage points
to 180.3%. The
movement in the quarterly
average LCR was
primarily driven by a
decrease in high-quality
liquid
assets
of
USD 12.7bn
to
USD 318.9bn,
mainly
reflecting
lower
cash
available
due
to
a
decrease
in
customer
deposits, funding of additional
trading assets and lower
debt issued measured at
amortized cost, partly offset
by
higher cash
available from
lower lending
assets and
higher proceeds
from securities
financing transactions.
The
average net cash outflows decreased
by USD 1.3bn to USD 176.9bn, reflecting higher
net inflows from securities
financing transactions, partly offset by higher
outflows from capital instruments on lent
from UBS Group AG and
customer deposits.
›
Refer to the UBS Group and significant regulated subsidiaries and sub-groups
31 March 2025 Pillar 3 Report,
available under “Pillar 3 disclosures” at
ubs.com/investors
, and to “Liquidity and funding management” in the
“Capital, liquidity and funding, and balance sheet” section of the UBS AG Annual Report 2024, available under
“Annual reporting” at
ubs.com/investors
, for more information about the LCR on a UBS AG consolidated basis
Liquidity coverage ratio
USD bn, except where indicated
Average 1Q25
1
Average 4Q24
1
High-quality liquid assets
318.9
331.6
Net cash outflows
2
176.9
178.2
Liquidity coverage ratio (%)
3
180.3
186.1
1 Calculated based on an average
of 62 data points in the first
quarter of 2025 and 64 data
points in the fourth quarter of
2024.
2 Represents the net cash outflows
expected over a stress period of
30 calendar
days.
3 Calculated after the application of haircuts and inflow and outflow rates, as well as,
where applicable, caps on Level 2 assets and cash inflows.
Net stable funding ratio
As of
31 March 2025, the
net stable
funding ratio (the
NSFR) of
UBS AG consolidated decreased 1.3 percentage
points to 122.8%. Available
stable funding (ASF) increased
by USD 6.7bn to USD 853.7bn,
mainly driven by a shift
in the
client deposit
composition
resulting in
a more
beneficial
ASF treatment
and higher
regulatory capital.
Required
stable funding
increased by
USD 12.7bn to
USD 695.2bn, mainly
driven by
higher lending
assets, largely
due to
currency effects, partly offset by lower derivative
balances.
›
Refer to the UBS Group and significant regulated subsidiaries and sub-groups 31 March 2025 Pillar 3 Report,
available under “Pillar 3 disclosures” at
ubs.com/investors
, and to “Liquidity and funding management” in the
“Capital, liquidity and funding, and balance sheet” section of the UBS AG Annual Report 2024, available under
“Annual reporting” at
ubs.com/investors
, for more information about the NSFR on a UBS AG consolidated basis
Net stable funding ratio
USD bn, except where indicated
31.3.25
31.12.24
Available stable funding
853.7
847.0
Required stable funding
695.2
682.5
Net stable funding ratio (%)
122.8
124.1
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet | Balance sheet and off-balance sheet
38
Balance sheet and off-balance sheet
This
section
provides
balance
sheet
and
off-balance sheet
information
and
should
be
read
in
conjunction
with
“Balance sheet
and off-balance
sheet” in
the “Capital,
liquidity and
funding, and
balance sheet”
section of
the
UBS AG
Annual
Report
2024,
available
under
“Annual
reporting”
at
ubs.com/investors
,
which
provides
more
information about the balance sheet and off-balance
sheet positions.
Balances disclosed in this
report represent quarter-end
positions, unless indicated
otherwise. Intra-quarter balances
fluctuate in the ordinary course of business
and may differ from quarter-end positions.
Balance sheet assets (31 March 2025 vs
31 December 2024)
Total assets
were USD 1,547.5bn
as of
31 March 2025,
a decrease
of USD 20.6bn
compared with
31 December
2024.
Derivatives and
cash collateral
receivables on
derivative instruments
decreased by
USD 52.8bn, predominantly
in
Derivatives & Solutions in the Investment Bank,
primarily reflecting a decrease in foreign currency
contracts, where
the contracts in
place at the
end of March
2025 had a
lower fair value
than the contracts
in place at
the end of
December 2024.
Securities financing
transactions at
amortized cost
decreased by
USD 16.5bn, mainly
reflecting
roll-offs of cash reinvestment trades in Group
Treasury.
These decreases were partly offset
by an USD 18.0bn increase in Lending
assets, mainly reflecting currency
effects.
Cash
and
balances
at
central
banks
increased
by
USD 8.1bn,
mainly
due
to
inflows
from
roll-offs
of
securities
financing transactions measured at amortized cost and currency effects, partly
offset by purchases of high-quality
liquid asset
(HQLA) portfolio
securities. Other
financial assets
measured at
fair value
increased by
USD 7.9bn, mainly
driven
by
investments
in
securities
financing
transactions
measured
at
fair
value
and
HQLA
portfolio
securities.
Other financial
assets measured
at amortized
cost increased
by USD 7.6bn,
mainly reflecting purchases
of HQLA
portfolio securities. Trading
assets increased by
USD 6.2bn, reflecting
higher inventory
held in the
Investment Bank.
Assets
As of
% change from
USD bn
31.3.25
31.12.24
31.12.24
Cash and balances at central banks
231.4
223.3
4
Lending
1
623.5
605.5
3
Securities financing transactions at amortized cost
101.8
118.3
(14)
Trading assets
165.4
159.2
4
Derivatives and cash collateral receivables on derivative instruments
177.6
230.4
(23)
Brokerage receivables
28.7
25.9
11
Other financial assets measured at amortized cost
66.9
59.3
13
Other financial assets measured at fair value
2
105.3
97.4
8
Non-financial assets
46.9
48.8
(4)
Total assets
1,547.5
1,568.1
(1)
1 Consists of Loans and advances to customers and Amounts due from banks.
2 Consists of Financial assets at fair value not held for trading and Financial assets measured at
fair value through other comprehensive
income.
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet | Balance sheet and off-balance sheet
39
Balance sheet liabilities (31 March 2025
vs 31 December 2024)
Total liabilities were USD 1,450.4bn as
of 31 March 2025, a decrease of
USD 23.0bn compared with 31 December
2024.
Derivatives and cash collateral payables on derivative instruments decreased by USD 42.7bn, predominantly in the
Investment
Bank,
primarily
reflecting
the
same
drivers
as
on
the
asset
side.
Customer
deposits
decreased
by
USD 2.0bn, mainly reflecting
net new deposit
outflows of USD 14.6bn,
primarily in Global
Wealth Management,
largely offset by currency effects.
These decreases were partly offset by a USD 10.9bn increase
in brokerage payables, mainly reflecting higher client
activity levels.
Trading liabilities
increased by
USD 7.9bn, mainly
due to
an increase
in short
positions held
in the
Investment Bank.
The “Liabilities,
by product and currency” table in this section provides more information
about UBS AG’s funding
sources.
›
Refer to “Bondholder information” at
ubs.com/investors
for more information about capital and senior debt
instruments
›
Refer to the “Consolidated financial statements” section of this report for more information
Liabilities and equity
As of
% change from
USD bn
31.3.25
31.12.24
31.12.24
Short-term borrowings
1,2
58.4
53.9
8
Securities financing transactions at amortized cost
15.0
14.8
1
Customer deposits
747.5
749.5
0
Funding from UBS Group AG measured at amortized cost
111.5
107.9
3
Debt issued designated at fair value and long-term debt issued measured
at amortized cost
2
175.1
173.1
1
Trading liabilities
43.1
35.2
22
Derivatives and cash collateral payables on derivative instruments
174.3
217.0
(20)
Brokerage payables
59.9
49.0
22
Other financial liabilities measured at amortized cost
19.4
21.8
(11)
Other financial liabilities designated at fair value
32.8
34.0
(4)
Non-financial liabilities
13.5
17.0
(21)
Total liabilities
1,450.4
1,473.4
(2)
Share capital
0.4
0.4
0
Share premium
84.7
84.8
0
Retained earnings
9.1
7.8
16
Other comprehensive income
3
2.3
1.0
134
Total equity attributable to shareholders
96.6
94.0
3
Equity attributable to non-controlling interests
0.6
0.7
(14)
Total equity
97.1
94.7
3
Total liabilities and equity
1,547.5
1,568.1
(1)
1 Consists of short-term debt issued measured at amortized cost and amounts due to banks, which includes amounts due to central banks.
2 The classification of debt issued measured at amortized cost into short-
term and long-term is based
on original contractual
maturity and therefore long-term
debt also includes debt
with a remaining time
to maturity of less
than one year.
This classification does
not consider any early
redemption features.
3 Excludes other comprehensive income related to defined benefit plans and own credit, which is recorded directly in Retained earnings.
UBS AG first quarter 2025 report |
Risk, capital, liquidity and funding, and balance
sheet | Balance sheet and off-balance sheet
40
Equity (31 March 2025 vs 31 December 2024)
Equity attributable to shareholders increased
by USD 2,550m to USD 96,553m as of
31 March 2025.
The
increase
of
USD 2,550m
was
mainly
driven
by
total
comprehensive income
attributable
to
shareholders
of
USD 2,635m, reflecting a net
profit of USD 1,028m
and other comprehensive income
(OCI) of USD 1,607m. OCI
mainly included OCI related to foreign currency translation of USD 794m, cash flow hedge OCI of USD 545m and
own credit on financial liabilities designated at
fair value of USD 233m.
The 2024
dividend distribution
to UBS
Group AG,
as approved
by the
2025 Annual
General Meeting
of shareholders
(the AGM), reduced equity
attributable to shareholders
by USD 6,500m in April 2025.
The AGM also approved
the
appropriation of USD 6,500m to
a special dividend
reserve with no
change to equity.
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.
›
Refer to the “UBS AG consolidated performance” and “Consolidated financial statements” sections of this report
for more information
›
Refer to “Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital” in
the “Capital management” section of this report for more information about the effects of OCI on common equity
tier 1 capital
Liabilities, by product and currency
USD equivalent
All currencies
of which: USD
of which: CHF
of which: EUR
USD bn
31.3.25
31.12.24
31.3.25
31.12.24
31.3.25
31.12.24
31.3.25
31.12.24
Short-term borrowings
58.4
53.9
22.5
22.5
7.9
5.7
12.6
11.7
of which: amounts due to banks
27.8
23.3
7.8
8.1
7.4
5.4
3.4
3.1
of which: short-term debt issued
1,2
30.6
30.5
14.7
14.5
0.4
0.3
9.2
8.6
Securities financing transactions at amortized cost
15.0
14.8
7.3
7.9
3.6
3.8
2.8
2.9
Customer deposits
747.5
749.5
302.6
312.5
307.0
298.2
69.8
71.5
of which: demand deposits
226.0
225.0
54.8
55.7
110.4
108.7
33.5
33.2
of which: retail savings / deposits
190.5
182.3
35.4
34.9
151.0
143.3
4.1
4.0
of which: sweep deposits
39.6
41.9
39.6
41.9
0.0
0.0
0.0
0.0
of which: time deposits
291.4
300.3
172.8
179.9
45.6
46.1
32.3
34.3
Funding from UBS Group AG measured at amortized cost
111.5
107.9
75.2
74.4
2.7
2.6
30.2
27.6
Debt issued designated at fair value and long-term debt issued measured
at amortized
cost
2
175.1
173.1
86.0
86.2
41.2
40.5
31.5
30.4
Trading liabilities
43.1
35.2
16.9
14.4
1.0
1.3
12.3
10.0
Derivatives and cash collateral payables on derivative instruments
174.3
217.0
145.6
183.4
3.3
4.4
16.5
18.3
Brokerage payables
59.9
49.0
47.9
38.1
0.6
0.5
3.3
3.4
Other financial liabilities measured at amortized cost
19.4
21.8
10.5
12.9
4.2
3.2
2.3
1.9
Other financial liabilities designated at fair value
32.8
34.0
8.7
6.5
0.1
0.1
3.7
5.6
Non-financial liabilities
13.5
17.0
6.7
8.7
2.4
3.2
2.5
2.5
Total liabilities
1,450.4
1,473.4
729.9
767.5
374.0
363.3
187.6
185.8
1 Short-term debt issued consists of certificates of deposit, commercial paper,
acceptances and promissory notes, and other money market paper.
2 The classification of debt issued measured at amortized cost into
short-term and long-term is based
on original contractual
maturity and therefore long-term
debt also includes debt
with a remaining time to
maturity of less than
one year.
This classification does not
consider any
early redemption features.
Off-balance sheet (31 March 2025 vs
31 December 2024)
Guarantees increased
by USD 2.2bn,
mainly driven by
an increase
in sponsored
repo clearing
in Group
Treasury.
Committed unconditionally revocable
credit lines
decreased by
USD 4.0bn, mainly
driven by
a decrease
in credit
lines provided across
business divisions, partly offset by
currency effects. Forward
starting reverse repurchase
and
securities borrowing
agreements decreased
by USD 6.7bn,
reflecting a decrease
in levels
of business
division activity
in short-dated securities financing transactions.
Off-balance sheet
As of
% change from
USD bn
31.3.25
31.12.24
31.12.24
Guarantees
1,2
40.6
38.4
6
Irrevocable loan commitments
1
79.5
79.6
0
Committed unconditionally revocable credit lines
144.9
148.9
(3)
Forward starting reverse repurchase and securities borrowing agreements
18.2
24.9
(27)
1 Guarantees and irrevocable loan commitments are shown net of sub-participations.
2 Includes guarantees measured at fair value through profit or loss.
UBS AG first quarter 2025 report |
Consolidated financial statements
41
Consolidated financial
statements
Unaudited
Table of contents
UBS AG interim consolidated financial
statements (unaudited)
Statement of comprehensive income
Statement of changes in equity
1
2
Accounting for the merger of UBS AG and Credit Suisse AG
3
4
5
6
7
8
General and administrative expenses
9
Expected credit loss measurement
10
11
12
13
Funding from UBS Group AG measured at amortized cost
14
Debt issued designated at fair value
15
Debt issued measured at amortized cost
16
Provisions and contingent liabilities
17
Events after the reporting period
Comparison between UBS AG consolidated and
UBS AG first quarter 2025 report |
Consolidated financial statements | UBS AG
interim consolidated financial statements
(unaudited)
42
UBS AG interim consolidated
financial statements (unaudited)
Income statement
For the quarter ended
USD m
Note
31.3.25
31.12.24
31.3.24
Interest income from financial instruments measured at
amortized cost and fair value through
other comprehensive income
4
6,643
7,501
6,240
Interest expense from financial instruments measured at
amortized cost
4
(6,909)
(7,793)
(6,052)
Net interest income from financial instruments measured
at fair value through profit or loss and other
4
1,594
1,882
618
Net interest income
4
1,328
1,590
806
Other net income from financial instruments measured
at fair value through profit or loss
3,924
3,150
2,945
Fee and commission income
5
7,280
7,024
5,607
Fee and commission expense
5
(650)
(670)
(458)
Net fee and commission income
5
6,630
6,354
5,148
Other income
6
281
223
209
Total revenues
12,163
11,317
9,108
Credit loss expense / (release)
9
124
241
52
Personnel expenses
7
5,910
5,212
4,161
General and administrative expenses
8
4,077
4,964
2,985
Depreciation, amortization and impairment of non-financial
assets
714
840
531
Operating expenses
10,701
11,017
7,677
Operating profit / (loss) before tax
1,339
59
1,379
Tax expense / (benefit)
303
313
366
Net profit / (loss)
1,035
(254)
1,014
Net profit / (loss) attributable to non-controlling interests
7
2
8
Net profit / (loss) attributable to shareholders
1,028
(257)
1,006
UBS AG first quarter 2025 report |
Consolidated financial statements | UBS AG
interim consolidated financial statements
(unaudited)
43
Statement of comprehensive income
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Comprehensive income attributable to shareholders
1
Net profit / (loss)
1,028
(257)
1,006
Other comprehensive income that may be reclassified to the income
statement
Foreign currency translation
Foreign currency translation movements related to net assets of foreign operations, before tax
1,307
(3,416)
(1,565)
Effective portion of changes in fair value of hedging instruments
designated as net investment hedges, before tax
(511)
1,463
807
Foreign currency translation differences on foreign operations reclassified to the
income statement
0
11
0
Effective portion of changes in fair value of hedging instruments
designated as net investment hedges reclassified
to
the income statement
0
(12)
1
Income tax relating to foreign currency translations, including the effect of
net investment hedges
(2)
3
13
Subtotal foreign currency translation, net of tax
794
(1,951)
(744)
Financial assets measured at fair value through other comprehensive income
Net unrealized gains / (losses), before tax
(3)
(1)
(1)
Net realized (gains) / losses reclassified to the income statement
from equity
0
0
0
Income tax relating to net unrealized gains / (losses)
0
0
0
Subtotal financial assets measured at fair value through other comprehensive
income, net of tax
(3)
(1)
(1)
Cash flow hedges of interest rate risk
Effective portion of changes in fair value of derivative instruments designated
as cash flow hedges, before tax
349
(1,367)
(1,076)
Net (gains) / losses reclassified to the income statement from
equity
322
400
492
Income tax relating to cash flow hedges
(125)
181
117
Subtotal cash flow hedges, net of tax
545
(785)
(467)
Cost of hedging
Cost of hedging, before tax
20
(53)
(6)
Income tax relating to cost of hedging
0
0
0
Subtotal cost of hedging, net of tax
20
(53)
(6)
Total other comprehensive income that may be reclassified to the income statement, net
of tax
1,356
(2,790)
(1,219)
Other comprehensive income that will not be reclassified to the income
statement
Defined benefit plans
Gains / (losses) on defined benefit plans, before tax
18
(56)
36
Income tax relating to defined benefit plans
0
20
(8)
Subtotal defined benefit plans, net of tax
19
(37)
28
Own credit on financial liabilities designated at fair value
Gains / (losses) from own credit on financial liabilities designated
at fair value, before tax
233
145
19
Income tax relating to own credit on financial liabilities designated
at fair value
(1)
(2)
0
Subtotal own credit on financial liabilities designated at
fair value, net of tax
233
144
19
Total other comprehensive income that will not be reclassified to the income statement,
net of tax
251
107
47
Total other comprehensive income
1,607
(2,684)
(1,171)
Total comprehensive income attributable to shareholders
2,635
(2,940)
(166)
Comprehensive income attributable to non-controlling
interests
Net profit / (loss)
7
2
8
Total other comprehensive income that will not be reclassified to the income statement,
net of tax
15
(37)
(12)
Total comprehensive income attributable to non-controlling interests
22
(35)
(4)
Total comprehensive income
Net profit / (loss)
1,035
(254)
1,014
Other comprehensive income
1,622
(2,721)
(1,183)
of which: other comprehensive income that may be reclassified
to the income statement
1,356
(2,790)
(1,219)
of which: other comprehensive income that will not be reclassified
to the income statement
266
70
36
Total comprehensive income
2,657
(2,975)
(169)
1 Refer to the “UBS AG consolidated performance” section of this report for more information.
UBS AG first quarter 2025 report |
Consolidated financial statements | UBS AG
interim consolidated financial statements
(unaudited)
44
Balance sheet
USD m
Note
31.3.25
31.12.24
Assets
Cash and balances at central banks
231,370
223,329
Amounts due from banks
20,285
18,111
Receivables from securities financing transactions measured at amortized
cost
101,784
118,302
Cash collateral receivables on derivative instruments
11
38,994
43,959
Loans and advances to customers
9
603,233
587,347
Other financial assets measured at amortized cost
12
66,864
59,279
Total financial assets measured at amortized cost
1,062,530
1,050,326
Financial assets at fair value held for trading
10
165,437
159,223
of which: assets pledged as collateral that may be sold or repledged
by counterparties
48,262
38,532
Derivative financial instruments
10, 11
138,620
186,435
Brokerage receivables
10
28,747
25,858
Financial assets at fair value not held for trading
10
102,075
95,203
Total financial assets measured at fair value through profit or loss
434,879
466,719
Financial assets measured at fair value through other comprehensive income
10
3,216
2,195
Investments in associates
2,495
2,306
Property, equipment and software
12,024
12,091
Goodwill and intangible assets
6,691
6,661
Deferred tax assets
10,519
10,481
Other non-financial assets
12
15,134
17,282
Total assets
1,547,489
1,568,060
Liabilities
Amounts due to banks
27,794
23,347
Payables from securities financing transactions measured at amortized cost
14,992
14,824
Cash collateral payables on derivative instruments
11
32,037
36,366
Customer deposits
747,452
749,476
Funding from UBS Group AG measured at amortized cost
13
111,457
107,918
Debt issued measured at amortized cost
15
98,259
101,104
Other financial liabilities measured at amortized cost
12
19,421
21,762
Total financial liabilities measured at amortized cost
1,051,412
1,054,796
Financial liabilities at fair value held for trading
10
43,099
35,247
Derivative financial instruments
10, 11
142,230
180,678
Brokerage payables designated at fair value
10
59,921
49,023
Debt issued designated at fair value
10, 14
107,393
102,567
Other financial liabilities designated at fair value
10, 12
32,792
34,041
Total financial liabilities measured at fair value through profit or loss
385,436
401,555
Provisions
16
5,495
5,131
Other non-financial liabilities
12
8,024
11,911
Total liabilities
1,450,367
1,473,394
Equity
Share capital
386
386
Share premium
84,693
84,777
Retained earnings
9,128
7,838
Other comprehensive income recognized directly in equity, net of tax
2,346
1,002
Equity attributable to shareholders
96,553
94,003
Equity attributable to non-controlling interests
569
662
Total equity
97,123
94,666
Total liabilities and equity
1,547,489
1,568,060
UBS AG first quarter 2025 report |
Consolidated financial statements | UBS AG
interim consolidated financial statements
(unaudited)
45
Statement of changes in equity
USD m
Share
capital and
share
premium
Retained
earnings
OCI recognized
directly in
equity,
net of tax
1
of which:
foreign
currency
translation
of which:
cash flow
hedges
Total equity
attributable to
shareholders
Balance as of 1 January 2025
2
85,163
7,838
1,002
3,686
(2,585)
94,003
Premium on shares issued and warrants exercised
0
0
Tax (expense) / benefit
9
9
Translation effects recognized directly in retained earnings
12
(12)
(12)
0
Share of changes in retained earnings of associates and
joint ventures
(2)
(2)
New consolidations / (deconsolidations) and other increases
/ (decreases)
(92)
0
(92)
Total comprehensive income for the period
1,279
1,356
794
545
2,635
of which: net profit / (loss)
1,028
1,028
of which: OCI, net of tax
251
1,356
794
545
1,607
Balance as of 31 March 2025
2
85,079
9,128
2,346
4,480
(2,051)
96,553
Non-controlling interests as of 31 March 2025
569
Total equity as of 31 March 2025
97,123
Balance as of 1 January 2024
2
25,024
28,235
1,974
4,947
(2,961)
55,234
Premium on shares issued and warrants exercised
0
0
Tax (expense) / benefit
5
5
Translation effects recognized directly in retained earnings
(60)
60
60
0
Share of changes in retained earnings of associates and
joint ventures
(1)
(1)
New consolidations / (deconsolidations) and other increases
/ (decreases)
(26)
(26)
Total comprehensive income for the period
1,053
(1,219)
(744)
(467)
(166)
of which: net profit / (loss)
1,006
1,006
of which: OCI, net of tax
47
(1,219)
(744)
(467)
(1,171)
Balance as of 31 March 2024
2
25,003
29,228
815
4,203
(3,368)
55,046
Non-controlling interests as of 31 March 2024
317
Total equity as of 31 March 2024
55,363
1 Excludes other comprehensive income related to defined benefit plans and own credit that is recorded directly in Retained earnings.
2 Excludes non-controlling interests.
UBS AG first quarter 2025 report |
Consolidated financial statements | UBS AG
interim consolidated financial statements
(unaudited)
46
Statement of cash flows
Year-to-date
USD m
31.3.25
31.3.24
Cash flow from / (used in) operating activities
Net profit / (loss)
1,035
1,014
Non-cash items included in net profit and other adjustments
Depreciation, amortization and impairment of non-financial
assets
714
531
Credit loss expense / (release)
124
52
Share of net (profit) / loss of associates and joint ventures
and impairment related to associates
(136)
(15)
Deferred tax expense / (benefit)
(128)
(72)
Net loss / (gain) from investing activities
(123)
105
Net loss / (gain) from financing activities
1,942
(2,371)
Other net adjustments
1
(7,432)
10,212
Net change in operating assets and liabilities
1
Amounts due from banks and amounts due to banks
4,245
17,620
Receivables from securities financing transactions measured at amortized
cost
18,365
(1,242)
Payables from securities financing transactions measured at amortized cost
670
74
Cash collateral on derivative instruments
733
(6,031)
Loans and advances to customers
(4,143)
(1,380)
Customer deposits
(14,668)
(3,041)
Financial assets and liabilities at fair value held for trading and derivative financial
instruments
14,468
(12,477)
Brokerage receivables and payables
7,897
2,400
Financial assets at fair value not held for trading and other financial assets
and liabilities
(9,730)
(534)
Provisions and other non-financial assets and liabilities
(1,932)
(1,728)
Income taxes paid, net of refunds
(189)
(479)
Net cash flow from / (used in) operating activities
11,710
2
2,638
Cash flow from / (used in) investing activities
Disposal of subsidiaries, business, associates and intangible assets
354
3
Purchase of property, equipment and software
(425)
(292)
Disposal of property, equipment and software
26
0
Purchase of financial assets measured at fair value through other
comprehensive income
(2,149)
(520)
Disposal and redemption of financial assets measured at
fair value through other comprehensive income
1,151
1,070
Purchase of debt securities measured at amortized cost
(7,871)
(850)
Disposal and redemption of debt securities measured at amortized
cost
1,883
2,002
Net cash flow from / (used in) investing activities
(7,031)
1,409
Cash flow from / (used in) financing activities
Net issuance (repayment) of short-term debt measured at amortized
cost
(507)
(4,657)
Issuance of debt designated at fair value and long-term debt measured
at amortized cost
4
35,185
29,798
Repayment of debt designated at fair value and long-term debt measured
at amortized cost
4
(33,063)
(28,918)
Inflows from securities financing transactions measured at amortized
cost
5
565
1,000
Outflows from securities financing transactions measured at amortized
cost
5
(1,285)
Net cash flows from other financing activities
(316)
(128)
Net cash flow from / (used in) financing activities
580
(2,905)
Total cash flow
Cash and cash equivalents at the beginning of the period
243,359
190,469
Net cash flow from / (used in) operating, investing and financing
activities
5,259
1,143
Effects of exchange rate differences on cash and cash equivalents
1
5,035
(7,708)
Cash and cash equivalents at the end of the period
6
253,653
183,903
of which: cash and balances at central banks
6
231,370
163,378
of which: amounts due from banks
6
18,768
12,836
of which: money market paper
6,7
3,515
7,689
Additional information
Net cash flow from / (used in) operating activities includes:
Interest received in cash
10,820
9,596
Interest paid in cash
10,505
8,602
Dividends on equity investments, investment funds and associates
received in cash
734
582
1 Foreign currency
translation and foreign
exchange effects on
operating assets and
liabilities and on
cash and cash
equivalents are presented
within the Other
net adjustments line,
with the exception
of foreign
currency hedge effects related to foreign
exchange swaps, which
are presented on the line
Financial assets and liabilities at
fair value held for trading
and derivative financial instruments.
2 Includes cash receipts
from the sale of loans and loan commitments of USD 330m within Non-core and Legacy.
3 Includes cash proceeds net of cash and cash equivalents disposed from the sale of the
US mortgage servicing business of
Credit Suisse, Select Portfolio Servicing,
which was managed in Non-core and Legacy.
Refer to “Note 29 Changes in organization and acquisitions
and disposals of subsidiaries and businesses” in the “Consolidated
financial statements” section of the UBS AG
Annual Report 2024 for more information.
4 Includes funding from UBS Group
AG measured at amortized cost (recognized
on the balance sheet in Funding
from UBS
Group AG measured at amortized cost) and measured at fair value (recognized on the balance sheet in Other financial liabiliti
es designated at fair value).
5 Reflects cash flows from securities financing transactions
measured at amortized cost that
use UBS debt instruments as
the underlying.
6 Includes only balances with an
original maturity of three months
or less.
7 Money market paper
is included in the balance sheet
under
Financial
assets
at
fair
value
not
held
for
trading
(31 March
2025:
USD 2,874m;
31 March
2024: USD 6,854m),
Other
financial
assets
measured
at
amortized
cost
(31 March 2025: USD 395m;
31 March 2024: USD 170m), Financial assets measured
at fair value through
other comprehensive income
(31 March 2025: USD 0m; 31 March
2024: USD 420m) and
Financial assets at fair
value held for
trading
(31 March 2025: USD 246m; 31 March 2024: USD 245m).
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
47
Notes to the UBS AG interim consolidated financial
statements (unaudited)
Note 1
Basis of accounting
Basis of preparation
The consolidated financial statements (the financial statements) of UBS AG and its subsidiaries (together, UBS AG)
are prepared in
accordance with IFRS Accounting Standards,
as issued by
the International Accounting Standards
Board (the IASB),
and are
presented in
US dollars. These
interim financial statements
are prepared in
accordance
with IAS 34,
Interim Financial Reporting
.
In preparing
these interim financial
statements, the same
accounting policies and
methods of
computation have
been applied as in the UBS AG consolidated annual
financial statements for the period ended 31 December
2024.
These
interim
financial
statements
are
unaudited
and
should
be
read
in
conjunction
with
UBS AG’s
audited
consolidated financial statements in
the UBS AG Annual
Report 2024 and
the “Management report” sections
of
this report,
including the
disclosures in
the “Recent
developments” section
of this
report regarding
the sale
of Select
Portfolio Servicing,
the US mortgage servicing business of Credit Suisse,
and the transactions related to Swisscard.
In
the
opinion
of
management, all
necessary adjustments
have
been
made for
a
fair
presentation
of
UBS AG’s
financial position, results of operations and cash
flows.
Preparation of
these interim financial
statements requires management
to make
estimates and
assumptions that
affect
the
reported
amounts
of
assets,
liabilities,
income,
expenses
and
disclosures
of
contingent
assets
and
liabilities. These estimates
and assumptions are based
on the best available
information. Actual results
in the future
could differ
from such
estimates and
differences may
be material
to the
financial statements.
Revisions to
estimates,
based on regular
reviews, are recognized
in the period
in which they
occur. For more
information about areas of
estimation uncertainty
that are
considered to
require critical
judgment, refer
to Note 2,
as well
as “Note 1a
Material
accounting policies” in the “Consolidated financial
statements” section of the UBS AG Annual
Report 2024.
Currency translation rates
The following table shows the rates of the
main currencies used to translate the
financial information of UBS AG’s
operations with a functional currency other
than the US dollar into US dollars.
Currency translation rates
Closing exchange rate
Average rate
1
As of
For the quarter ended
31.3.25
31.12.24
31.3.24
31.3.25
31.12.24
31.3.24
1 CHF
1.13
1.10
1.11
1.11
1.13
1.13
1 EUR
1.08
1.04
1.08
1.05
1.06
1.08
1 GBP
1.29
1.25
1.26
1.26
1.27
1.26
100 JPY
0.67
0.63
0.66
0.66
0.65
0.67
1 Monthly income statement items of operations with a functional currency other than the US dollar are
translated into US dollars using month-end rates. Disclosed average
rates for a quarter represent an average of
three month-end rates, weighted according to the income and expense volumes of all operations of UBS
AG with the same functional currency for each month. Weighted average rates for individual business
divisions
may deviate from the weighted average rates for UBS AG.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
48
Note 2
Accounting for the merger of UBS AG and
Credit Suisse AG
Merger of UBS AG and Credit Suisse AG
The merger of UBS AG and Credit Suisse AG effected on 31 May 2024
with no consideration payable by UBS AG
constituted a business combination
under common control.
For details of the accounting for
the merger, including
accounting
policies
applicable
to
business
combinations
under
common
control,
refer
to
“Note
1a
Material
accounting
policies”
and
“Note 2
Accounting
for
the
merger
of
UBS AG
and
Credit
Suisse AG”
in
the
“Consolidated financial statements” section of
the UBS AG Annual Report 2024.
Comparability
The income statement,
the statement of
comprehensive income, the statement
of cash flows and
the statement of
changes in
equity for
the first
quarter of
2025 and
the income
statement and
the statement
of comprehensive
income for
the fourth
quarter of
2024 are
based entirely
on consolidated
data following
the merger
of UBS AG
and Credit Suisse AG.
The income
statement, the
statement of
comprehensive income,
the statement
of cash
flows
and the statement of changes in equity for the first
quarter of 2024 include pre-merger UBS AG
data only.
Balance
sheet
information
as
of
31 March
2025
and
31 December
2024
includes
post-merger
consolidated
information.
Note 3
Segment reporting
UBS AG’s
business
divisions
are
organized
globally
into
five
business
divisions:
Global
Wealth
Management,
Personal &
Corporate Banking,
Asset Management,
the Investment
Bank and
Non-core and
Legacy. All
five business
divisions are supported by Group Items and qualify as reportable segments for
the purpose of segment reporting.
Together with Group Items they reflect the management
structure of UBS AG.
›
Refer to the “Consolidated financial statements” section of the UBS AG Annual Report 2024 for more information
about UBS AG’s reporting segments.
Segment reporting
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group
Items
UBS AG
For the quarter ended 31 March 2025
Net interest income
1,589
1,059
(15)
(885)
(35)
(385)
1,328
Non-interest income
4,703
946
756
3,938
155
338
10,836
Total revenues
6,293
2,005
741
3,052
119
(46)
12,163
Credit loss expense / (release)
8
58
0
49
10
(1)
124
Operating expenses
5,069
1,526
603
2,455
748
299
10,701
Operating profit / (loss) before tax
1,216
421
137
548
(639)
(344)
1,339
Tax expense / (benefit)
303
Net profit / (loss)
1,035
As of 31 March 2025
Total assets
557,012
445,289
22,590
455,886
47,829
18,884
1,547,489
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group
Functions
UBS AG
For the quarter ended 31 March 2024
Net interest income
1,204
772
(14)
(797)
14
(374)
806
Non-interest income
3,714
606
523
3,184
7
268
8,302
Total revenues
4,918
1,378
509
2,388
21
(106)
9,108
Credit loss expense / (release)
9
10
0
32
0
1
52
Operating expenses
3,975
809
459
2,083
138
212
7,677
Operating profit / (loss) before tax
935
558
50
272
(118)
(319)
1,379
Tax expense / (benefit)
366
Net profit / (loss)
1,014
As of 31 December 2024
Total assets
560,194
449,224
22,291
453,078
67,696
15,577
1,568,060
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
49
Note 4
Net interest income
Net interest income
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Interest income from loans and deposits
1
5,767
6,623
5,438
Interest income from securities financing transactions measured
at amortized cost
2
839
822
988
Interest income from other financial instruments measured
at amortized cost
360
350
323
Interest income from debt instruments measured at fair
value through other comprehensive income
27
24
27
Interest income from derivative instruments designated as cash
flow hedges
(351)
(318)
(537)
Total interest income from financial instruments measured at amortized cost and fair
value through other comprehensive income
6,643
7,501
6,240
Interest expense on loans and deposits
3
5,558
6,697
4,836
Interest expense on securities financing transactions measured
at amortized cost
4
418
464
407
Interest expense on debt issued
899
592
787
Interest expense on lease liabilities
35
40
22
Total interest expense from financial instruments measured at amortized cost
6,909
7,793
6,052
Total net interest income from financial instruments measured at amortized cost and fair
value through other comprehensive
income
(266)
(292)
188
Net interest income from financial instruments measured at fair value through profit
or loss and other
1,594
1,882
618
Total net interest income
1,328
1,590
806
1 Consists of interest income from cash and balances
at central banks, amounts due from banks, and cash collateral receivables on derivative instruments, as well as negative interest on
amounts due to banks, customer
deposits, and
cash collateral
payables on
derivative instruments.
2 Includes interest
income on receivables
from securities financing
transactions and
negative interest, including
fees, on
payables from
securities
financing transactions.
3 Consists of interest expense on amounts
due to banks, cash collateral
payables on derivative instruments,
customer deposits, and funding from
UBS Group AG measured at
amortized cost,
as well as negative interest on cash and balances at central banks, amounts due from banks, and cash collateral receivables on derivative instruments.
4 Includes interest expense on payables from securities financing
transactions and negative interest, including fees, on receivables from securities financing transactions.
Note 5
Net fee and commission income
Net fee and commission income
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Underwriting fees
219
206
224
M&A and corporate finance fees
244
277
234
Brokerage fees
1,376
1,170
1,019
Investment fund fees
1,543
1,558
1,201
Portfolio management and related services
3,102
3,083
2,456
Other
796
729
472
Total fee and commission income
1
7,280
7,024
5,607
of which: recurring
4,607
4,628
3,668
of which: transaction-based
2,639
2,351
1,915
of which: performance-based
33
45
24
Fee and commission expense
650
670
458
Net fee and commission income
6,630
6,354
5,148
1 Reflects third-party fee and commission income for
the first quarter of 2025 of USD 4,429m for
Global Wealth Management (fourth quarter of 2024:
USD 4,193m; first quarter of 2024: USD 3,506m),
USD 735m
for Personal & Corporate
Banking (fourth quarter of
2024: USD 749m; first quarter
of 2024: USD 490m),
USD 939m for Asset Management
(fourth quarter of 2024:
USD 977m; first quarter of
2024: USD 671m),
USD 1,134m for the Investment Bank
(fourth quarter of 2024:
USD 1,009m; first quarter of 2024:
USD 940m), USD 15m for Group Items
(fourth quarter of 2024:
USD 8m; first quarter of 2024:
negative USD 3m)
and USD 29m for Non-core and Legacy (fourth quarter of 2024: USD 88m; first quarter of 2024: USD 3m).
Note 6
Other income
Other income
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Associates, joint ventures and subsidiaries
Net gains / (losses) from acquisitions and disposals of
subsidiaries
1
(13)
2
13
(1)
Net gains / (losses) from disposals of investments in associates
and joint ventures
3
2
0
Share of net profit / (loss) of associates and joint ventures
136
3
(33)
15
Total
126
(18)
15
Income from properties
4
3
4
5
Net gains / (losses) from properties held for sale
8
1
0
Income from shared services provided to UBS Group AG or its subsidiaries
167
181
169
Other
(22)
54
20
Total other income
281
223
209
1 Includes foreign exchange gains / (losses) reclassified from
other comprehensive income related to the disposal or
closure of foreign operations.
2 Includes a loss of USD 11m recognized upon completion
of the
sale of Select
Portfolio Servicing,
the US mortgage
servicing business of
Credit Suisse,
which was managed
in Non-core and
Legacy. Refer
to “Note 29
Changes in organization
and acquisitions and
disposals of
subsidiaries and businesses”
in the “Consolidated
financial statements” section
of the UBS
AG Annual
Report 2024 for
more information.
3 Includes a
gain of USD
64m related to
UBS AG’s
share of
income
recorded by Swisscard
for the sale
of the Credit
Suisse card portfolios
to UBS AG.
Refer to “Note
29 Changes in
organization and acquisitions
and disposals of
subsidiaries and businesses”
in the “Consolidated
financial statements” section of the UBS AG Annual Report 2024 for more information.
4 Includes rent received from third parties.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
50
Note 7
Personnel expenses
Personnel expenses
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Salaries and variable compensation
1
5,129
4,473
3,621
of which: variable compensation – financial advisors
2
1,409
1,400
1,267
Contractors
37
32
21
Social security
310
286
208
Post-employment benefit plans
257
200
186
Other personnel expenses
176
221
125
Total personnel expenses
5,910
5,212
4,161
1 Includes role-based
allowances.
2 Financial advisor
compensation consists of
cash compensation, determined
using a formulaic approach
based on production,
and deferred awards.
It also includes expenses
related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements.
Note 8
General and administrative expenses
General and administrative expenses
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Outsourcing costs
197
262
121
Technology costs
255
286
163
Consulting, legal and audit fees
257
414
202
Real estate and logistics costs
203
245
130
Market data services
152
164
106
Marketing and communication
76
130
66
Travel and entertainment
66
93
54
Litigation, regulatory and similar matters
1
196
393
8
Other
2,676
2
2,979
2,137
of which: shared services costs charged by UBS Group AG or its subsidiaries
2,231
2,502
1,933
Total general and administrative expenses
4,077
4,964
2,985
1 Reflects the net increase / (decrease) in provisions
for litigation, regulatory and similar matters recognized in the income
statement. Refer to Note 16b for more information.
2 Includes a USD 180m expense related
to payment to Swisscard for the
sale of the Credit Suisse
card portfolios to UBS AG.
Refer to “Note 29 Changes
in organization and acquisitions and
disposals of subsidiaries and businesses”
in the “Consolidated
financial statements” section of the UBS AG Annual Report 2024 for more information.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
51
Note 9
Expected credit loss measurement
a) Credit loss expense / release
Total net credit loss expenses in the first quarter
of 2025 were USD 124m, reflecting USD 21m net releases related
to performing positions and USD 145m net
expenses on credit-impaired positions.
Net expected credit
loss (ECL)
on performing corporate
loans was flat
in the first
quarter of
- Net ECL
expenses
on defaulted corporate
loans were USD 116m,
of which USD 52m
was in Personal
& Corporate Banking,
USD 54m
in the Investment Bank and USD 10m
in Non-core and Legacy.
Net ECL releases on performing real-estate-backed loans
were USD 22m in the first quarter of 2025, driven by the
substitution of
the severe
stagflation scenario,
primarily by
the forecasted
lower interest
rates curves
in the
new
scenario mix as described below.
These net ECL releases included
USD 24m of releases in Switzerland
and USD 3m
of expenses
in the
US. Net
expenses on
defaulted real-estate-backed
loans were
USD 11m and
related to
three
commercial real estate counterparties in the
US.
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Total
For the quarter ended 31.3.25
Global Wealth Management
(7)
15
8
Personal & Corporate Banking
(8)
66
58
Asset Management
0
0
0
Investment Bank
(5)
54
49
Non-core and Legacy
0
10
10
Group Items
(1)
0
(1)
Total
(21)
145
124
For the quarter ended 31.12.24
Global Wealth Management
(26)
15
(11)
Personal & Corporate Banking
(24)
213
189
Asset Management
0
0
0
Investment Bank
32
30
62
Non-core and Legacy
(2)
4
2
Group Items
(1)
1
0
Total
(21)
262
241
For the quarter ended 31.3.24
Global Wealth Management
2
7
9
Personal & Corporate Banking
(12)
22
10
Asset Management
0
0
0
Investment Bank
10
22
32
Non-core and Legacy
0
0
0
Group Items
1
0
1
Total
1
51
52
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
52
Note 9
Expected credit loss measurement (continued)
b) Changes to ECL models, scenarios and
scenario weights
Scenarios and scenario weights
The expected
credit loss
(ECL) scenarios,
along with
their related
macroeconomic factors and
market data,
were
reviewed in light of the economic
and political conditions prevailing
in the first quarter of
2025 through a series of
governance meetings,
with input and
feedback from UBS AG
Risk and Finance
experts across the
business divisions
and regions.
As
of
31 March
2025,
there
was
a
high
degree
of
geopolitical
and
macroeconomic
uncertainty,
including
uncertainty relating
to tariffs
that could
be introduced
by the
US government
after that
date and
the economic
consequences thereof. The
actual announcing of
the tariffs
in April
2025 was
subsequent to
the reporting date.
UBS AG has assessed the situation based on
the uncertainties that existed on the reporting
date and has exercised
judgment. The scenario suite was adjusted in the
first quarter of 2025 to replace the two downside
scenarios. The
global crisis scenario has replaced the stagflationary geopolitical crisis scenario as the severe downside scenario. It
targets
risks
such
as
sovereign
defaults,
low
interest
rates
and
significant
emerging
market
stress.
The
severe
stagflation scenario
previously explored
risks related
to higher
inflation and
rising interest
rates. The
mild stagflation
crisis
scenario
has
replaced
the
mild
debt
crisis
scenario
as
the
mild
downside scenario.
In
the
mild
stagflation
scenario, interest rates
are assumed to
rise rather than
decline, as in
the previously
applied mild debt
crisis scenario.
However,
the
declines
in
GDP
and
equities
are
similar.
As
a
consequence
of
the
circumstances
and
prevailing
uncertainties at
the end
of the
first quarter
of 2025, the
weight allocation between
the four
scenarios has
been
amended.
The scenario weights are illustrated in the
table below.
All of the scenarios,
including the asset
price appreciation
and the baseline
scenarios,
have been updated based
on
the latest macroeconomic
forecasts as of 31
March 2025. The
assumptions on a
calendar-year basis are
included in
the table below.
UBS AG
is closely
monitoring the
current market
situation, and
it will
carefully assess
developments, potentially
revisiting the narratives and weightings in the
second quarter of 2025.
Comparison of shock factors
Baseline
Key parameters
2024
2025
2026
Real GDP growth (annual percentage change)
US
2.8
1.5
0.7
Eurozone
0.8
0.5
0.8
Switzerland
1.3
0.7
1.6
Unemployment rate (%, annual average)
US
4.0
4.4
5.2
Eurozone
6.4
6.5
6.6
Switzerland
2.5
2.8
2.8
Fixed income: 10-year government bonds (%, Q4)
USD
4.6
4.2
4.3
EUR
2.4
2.8
2.9
CHF
0.3
0.7
0.8
Real estate (annual percentage change, Q4)
US
3.8
3.5
3.7
Eurozone
2.6
5.0
3.4
Switzerland
0.9
4.0
2.5
Economic scenarios and weights applied
Assigned weights in %
ECL scenario
31.3.25
31.12.24
31.3.24
Asset price appreciation
5.0
–
–
Baseline
50.0
60.0
60.0
Mild debt crisis
–
15.0
15.0
Stagflationary geopolitical crisis
–
25.0
25.0
Mild stagflationary crisis
30.0
–
–
Global crisis
15.0
–
–
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
53
Note 9
Expected credit loss measurement (continued)
c) ECL-relevant balance sheet and off-balance
sheet positions including ECL allowances
and provisions
The following tables
provide information
about financial
instruments and
certain non-financial
instruments that
are
subject
to
ECL
requirements.
For
amortized-cost
instruments,
the
carrying
amount
represents
the
maximum
exposure to credit risk, taking
into account the allowance for
credit losses. Financial assets measured at
fair value
through other comprehensive
income (FVOCI) are
also subject to ECL;
however, unlike amortized-cost
instruments,
the allowance
for credit
losses for
FVOCI instruments
does not
reduce the
carrying amount
of these financial
assets.
Instead, the
carrying amount
of financial
assets measured
at FVOCI
represents the
maximum exposure
to credit
risk.
No
purchased
credit-impaired
financial
assets
were
recognized
in
the
first
quarter
of
2025.
Originated
credit-
impaired financial assets were not material
and are not presented in the table below.
In addition to recognized financial assets, certain off-balance sheet financial instruments and other credit lines are
also subject to ECL.
The maximum exposure to
credit risk for off-balance
sheet financial instruments is calculated
based on the maximum contractual amounts.
ECL-relevant balance sheet and off-balance sheet positions
USD m
31.3.25
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
231,370
231,207
163
0
(240)
0
(240)
0
Amounts due from banks
20,285
20,248
37
0
(11)
(5)
(4)
(1)
Receivables from securities financing transactions measured at amortized
cost
101,784
101,784
0
0
(3)
(3)
0
0
Cash collateral receivables on derivative instruments
38,994
38,994
0
0
0
0
0
0
Loans and advances to customers
603,233
576,017
22,744
4,471
(2,955)
(289)
(300)
(2,366)
of which: Private clients with mortgages
258,849
246,480
10,943
1,426
(143)
(39)
(50)
(53)
of which: Real estate financing
84,915
79,744
4,923
247
(105)
(26)
(32)
(48)
of which: Large corporate clients
25,200
22,015
2,120
1,065
(915)
(82)
(111)
(722)
of which: SME clients
22,033
18,578
2,318
1,137
(1,030)
(65)
(67)
(897)
of which: Lombard
153,007
152,909
1
97
(113)
(8)
0
(105)
of which: Credit cards
2,025
1,564
420
41
(44)
(8)
(11)
(26)
of which: Commodity trade finance
4,331
4,311
12
8
(123)
(8)
0
(115)
of which: Ship / aircraft financing
8,221
7,905
316
0
(19)
(16)
(4)
0
of which: Consumer financing
2,617
2,403
109
106
(125)
(16)
(19)
(90)
Other financial assets measured at amortized cost
66,864
66,110
560
194
(127)
(24)
(8)
(96)
of which: Loans to financial advisors
2,738
2,600
48
89
(40)
(3)
(1)
(36)
Total financial assets measured at amortized cost
1,062,530
1,034,361
23,505
4,665
(3,336)
(321)
(553)
(2,463)
Financial assets measured at fair value through other comprehensive income
3,216
3,216
0
0
0
0
0
0
Total on-balance sheet financial assets in scope of ECL requirements
2
1,065,747
1,037,577
23,505
4,665
(3,336)
(321)
(553)
(2,463)
Total exposure
ECL provisions
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Guarantees
42,588
40,620
1,800
168
(57)
(13)
(20)
(24)
of which: Large corporate clients
7,103
6,487
530
87
(14)
(6)
(4)
(4)
of which: SME clients
2,885
2,529
316
39
(22)
(3)
(15)
(4)
of which: Financial intermediaries and hedge funds
25,139
24,249
890
0
(1)
(1)
0
0
of which: Lombard
3,591
3,561
0
30
(3)
(1)
0
(2)
of which: Commodity trade finance
2,160
2,158
1
0
(1)
(1)
0
0
Irrevocable loan commitments
79,463
75,299
3,906
257
(233)
(116)
(81)
(36)
of which: Large corporate clients
48,349
45,150
3,033
165
(161)
(84)
(59)
(18)
Forward starting reverse repurchase and securities borrowing agreements
18,178
18,178
0
0
0
0
0
0
Unconditionally revocable loan commitments
144,907
141,263
3,442
202
(55)
(41)
(14)
0
of which: Real estate financing
7,384
7,030
354
0
(3)
(4)
1
0
of which: Large corporate clients
13,497
12,751
722
23
(15)
(8)
(5)
(2)
of which: SME clients
10,902
9,952
801
149
(23)
(18)
(5)
0
of which: Lombard
72,767
72,757
8
2
0
0
0
0
of which: Credit cards
10,285
9,815
467
3
(8)
(6)
(2)
0
Irrevocable committed prolongation of existing loans
4,165
4,162
2
2
(3)
(3)
0
0
Total off-balance sheet financial instruments and other credit lines
2
289,302
279,523
9,150
629
(348)
(172)
(115)
(61)
Total allowances and provisions
2
(3,685)
(493)
(668)
(2,524)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL
allowances.
2 Refer to Note 2 for more information about the merger of UBS AG
and Credit Suisse AG.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
54
Note 9
Expected credit loss measurement (continued)
ECL-relevant balance sheet and off-balance sheet positions
USD m
31.12.24
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
223,329
223,201
128
0
(186)
0
(186)
0
Amounts due from banks
18,111
17,912
198
0
(42)
(1)
(5)
(36)
Receivables from securities financing transactions measured at amortized
cost
118,302
118,302
0
0
(2)
(2)
0
0
Cash collateral receivables on derivative instruments
43,959
43,959
0
0
0
0
0
0
Loans and advances to customers
587,347
560,531
22,309
4,506
(2,830)
(276)
(323)
(2,230)
of which: Private clients with mortgages
251,955
241,690
9,009
1,256
(166)
(46)
(70)
(50)
of which: Real estate financing
83,780
79,480
4,071
229
(100)
(24)
(27)
(49)
of which: Large corporate clients
25,599
21,073
3,493
1,033
(828)
(72)
(123)
(632)
of which: SME clients
21,002
17,576
2,293
1,133
(963)
(55)
(47)
(860)
of which: Lombard
147,714
147,326
266
122
(107)
(6)
0
(101)
of which: Credit cards
1,978
1,533
406
39
(41)
(6)
(11)
(25)
of which: Commodity trade finance
4,204
4,089
106
9
(122)
(9)
0
(113)
of which: Ship / aircraft financing
8,058
7,136
922
0
(31)
(14)
(16)
0
of which: Consumer financing
2,814
2,468
114
232
(137)
(15)
(19)
(102)
Other financial assets measured at amortized cost
59,279
58,645
439
194
(135)
(25)
(7)
(103)
of which: Loans to financial advisors
2,723
2,568
59
95
(41)
(4)
(1)
(37)
Total financial assets measured at amortized cost
1,050,326
1,022,550
23,074
4,701
(3,195)
(304)
(521)
(2,369)
Financial assets measured at fair value through other comprehensive income
2,195
2,195
0
0
0
0
0
0
Total on-balance sheet financial assets in scope of ECL requirements
2
1,052,521
1,024,746
23,074
4,701
(3,195)
(304)
(521)
(2,369)
Total exposure
ECL provisions
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Guarantees
40,280
38,860
1,242
178
(61)
(16)
(24)
(22)
of which: Large corporate clients
7,818
7,098
635
85
(18)
(6)
(9)
(2)
of which: SME clients
2,524
2,074
393
57
(27)
(5)
(15)
(7)
of which: Financial intermediaries and hedge funds
21,590
21,449
141
0
(1)
(1)
0
0
of which: Lombard
3,709
3,652
24
33
(4)
(1)
0
(3)
of which: Commodity trade finance
2,678
2,676
2
0
(1)
(1)
0
0
Irrevocable loan commitments
79,579
75,158
4,178
243
(192)
(105)
(61)
(26)
of which: Large corporate clients
47,381
43,820
3,393
168
(155)
(91)
(54)
(10)
Forward starting reverse repurchase and securities borrowing agreements
24,896
24,896
0
0
0
0
0
0
Unconditionally revocable loan commitments
148,900
146,496
2,149
255
(75)
(59)
(17)
0
of which: Real estate financing
7,674
7,329
345
0
(6)
(4)
(2)
0
of which: Large corporate clients
14,692
14,091
584
17
(22)
(14)
(7)
(2)
of which: SME clients
9,812
9,289
333
190
(34)
(28)
(6)
0
of which: Lombard
73,267
73,181
84
1
0
0
0
0
of which: Credit cards
10,074
9,604
467
3
(8)
(6)
(2)
0
Irrevocable committed prolongation of existing loans
4,608
4,602
4
2
(3)
(3)
0
0
Total off-balance sheet financial instruments and other credit lines
2
298,263
290,012
7,572
678
(332)
(183)
(102)
(48)
Total allowances and provisions
2
(3,527)
(487)
(623)
(2,417)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective
ECL allowances.
2 Refer to Note 2 for more information about the merger of UBS AG
and Credit Suisse AG.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
55
Note 9
Expected credit loss measurement (continued)
The
table
below
provides
information
about
the
gross
carrying
amount
of
exposures
subject
to
ECL
and
the
ECL
coverage ratio
for UBS AG’s
core loan
portfolios (i.e.
Loans and
advances to
customers
and
Loans to
financial advisors
)
and relevant off-balance sheet exposures.
Cash and balances at central banks
,
Amounts due from banks
,
Receivables
from
securities
financing
transactions
,
Cash
collateral
receivables
on
derivative
instruments
and
Financial
assets
measured at
fair value through
other comprehensive
income
are not included
in the table below,
due to their lower
sensitivity
to ECL.
ECL coverage ratios are calculated by dividing ECL
allowances and provisions by the gross carrying amount of the
related exposures.
The
overall
coverage
ratio
for
performing
positions
was
unchanged
at
10 basis
points.
Coverage
ratios
for
performing positions related
to corporate lending (on-balance
sheet) increased by
5 basis points to 72 basis
points.
Coverage ratios
for performing
positions related
to real
estate lending
(on-balance sheet)
decreased by
1 basis point
to 4 basis points.
Coverage ratios for core loan portfolio
31.3.25
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
258,992
246,519
10,993
1,480
6
2
45
3
361
Real estate financing
85,020
79,771
4,955
295
12
3
64
7
1,613
Total real estate lending
344,012
326,290
15,948
1,774
7
2
51
4
569
Large corporate clients
26,115
22,097
2,231
1,788
350
37
496
79
4,040
SME clients
23,062
18,643
2,385
2,034
446
35
283
63
4,409
Total corporate lending
49,177
40,739
4,616
3,822
395
36
386
72
4,236
Lombard
153,120
152,917
1
203
7
1
31
1
5,198
Credit cards
2,069
1,572
431
66
214
49
255
94
3,847
Commodity trade finance
4,454
4,319
12
123
276
18
10
18
9,376
Ship / aircraft financing
8,240
7,921
319
0
23
20
117
23
0
Consumer financing
2,743
2,418
128
196
457
65
1,500
137
4,598
Other loans and advances to customers
42,373
40,130
1,590
653
80
5
44
7
4,742
Loans to financial advisors
2,778
2,603
49
125
144
13
174
16
2,870
Total other lending
215,777
211,880
2,530
1,367
37
4
165
6
4,991
Total
1
608,966
578,909
23,094
6,963
49
5
130
10
3,450
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
9,352
9,083
264
6
4
3
33
4
453
Real estate financing
8,225
7,851
374
0
8
10
0
8
0
Total real estate lending
17,578
16,934
638
6
6
6
0
6
448
Large corporate clients
69,056
64,495
4,286
275
27
15
160
24
874
SME clients
15,801
14,290
1,268
243
52
19
293
41
759
Total corporate lending
84,857
78,785
5,554
518
32
16
190
27
820
Lombard
79,638
79,597
8
33
2
1
14
1
2,461
Credit cards
10,285
9,815
467
3
8
6
37
8
0
Commodity trade finance
3,019
3,001
17
0
2
2
14
2
0
Ship / aircraft financing
2,520
2,486
34
0
0
0
0
0
0
Consumer financing
377
377
0
0
3
3
0
3
0
Financial intermediaries and hedge funds
30,668
29,151
1,517
0
1
1
3
1
0
Other off-balance sheet commitments
42,182
41,199
914
69
10
5
86
7
1,434
Total other lending
168,689
165,626
2,958
105
4
2
34
3
1,707
Total
2
271,124
261,345
9,150
629
13
7
126
11
964
Total on- and off-balance sheet
3
880,089
840,254
32,244
7,592
38
6
129
10
3,244
1 Includes Loans and advances to customers
and Loans to financial advisors,
which are presented on the balance
sheet line Other financial assets measured
at amortized cost.
2 Excludes Forward starting
reverse
repurchase and securities borrowing agreements.
3 Includes on-balance sheet exposure, gross and off-balance sheet exposure (notional) and the related
ECL coverage ratio (bps).
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
56
Note 9
Expected credit loss measurement (continued)
Coverage ratios for core loan portfolio
31.12.24
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
252,121
241,736
9,079
1,306
7
2
77
5
386
Real estate financing
83,880
79,504
4,098
278
12
3
66
6
1,768
Total real estate lending
336,001
321,240
13,177
1,584
8
2
73
5
628
Large corporate clients
26,427
21,145
3,617
1,665
313
34
341
79
3,795
SME clients
21,966
17,631
2,341
1,993
439
31
203
52
4,316
Total corporate lending
48,393
38,776
5,958
3,659
370
33
287
67
4,079
Lombard
147,821
147,332
267
222
7
0
8
0
4,531
Credit cards
2,019
1,539
416
64
205
39
256
85
3,857
Commodity trade finance
4,327
4,098
106
122
283
22
40
23
9,258
Ship / aircraft financing
8,089
7,150
938
0
38
20
175
38
0
Consumer financing
2,951
2,484
134
334
464
62
1,447
133
3,057
Other loans and advances to customers
40,576
38,188
1,636
752
83
7
56
9
3,965
Loans to financial advisors
2,764
2,571
60
132
149
14
159
17
2,785
Total other lending
208,547
203,363
3,558
1,627
39
4
161
7
4,152
Total
1
592,941
563,379
22,693
6,869
48
5
143
10
3,301
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
Private clients with mortgages
8,473
8,271
176
26
4
4
22
4
81
Real estate financing
8,694
8,300
394
0
7
6
33
7
0
Total real estate lending
17,167
16,571
570
26
6
5
30
6
81
Large corporate clients
69,896
65,013
4,612
271
28
17
151
26
528
SME clients
13,944
12,788
842
315
59
30
324
48
532
Total corporate lending
83,840
77,800
5,454
586
33
19
177
30
530
Lombard
80,390
80,235
120
35
1
0
1
0
2,330
Credit cards
10,074
9,604
467
3
8
6
36
8
0
Commodity trade finance
3,487
3,464
23
0
3
3
51
3
0
Ship / aircraft financing
2,669
2,663
6
0
13
13
49
13
0
Consumer financing
134
134
0
0
6
6
0
6
0
Financial intermediaries and hedge funds
22,842
22,378
464
0
1
1
8
1
0
Other off-balance sheet commitments
52,765
52,268
468
29
4
2
28
2
2,945
Total other lending
172,360
170,745
1,549
67
3
1
23
2
2,470
Total
2
273,367
265,117
7,572
678
12
7
135
10
704
Total on- and off-balance sheet
3
866,308
828,495
30,265
7,547
37
6
141
10
3,067
1 Includes Loans and advances
to customers and Loans to financial
advisors, which are presented
on the balance sheet line Other
financial assets measured at amortized
cost.
2 Excludes Forward starting
reverse
repurchase and securities borrowing agreements.
3 Includes on-balance sheet exposure, gross and off-balance sheet exposure (notional) and the related
ECL coverage ratio (bps).
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
57
Note 10
Fair value measurement
a) Fair value hierarchy
The fair
value hierarchy
classification of
financial and
non-financial assets
and liabilities
measured at
fair value
is
summarized in the table below.
During the first three
months of 2025, assets and
liabilities that were transferred from
Level 2 to Level 1, or
from
Level 1 to Level 2, and were held for the entire
reporting period were not material.
Determination of fair values from quoted market prices or valuation techniques
1
31.3.25
31.12.24
USD m
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial assets measured at fair value on a recurring
basis
Financial assets at fair value held for trading
133,803
27,969
3,665
165,437
128,428
27,687
3,108
159,223
of which: Equity instruments
117,487
320
138
117,945
116,536
430
91
117,056
of which: Government bills / bonds
8,304
3,468
46
11,817
4,443
3,261
41
7,746
of which: Investment fund units
7,180
949
149
8,279
6,537
987
151
7,675
of which: Corporate and municipal bonds
828
20,777
876
22,480
911
17,585
838
19,334
of which: Loans
0
2,254
2,292
4,545
0
5,200
1,799
6,998
of which: Asset-backed securities
4
197
162
363
1
219
153
373
Derivative financial instruments
1,372
134,789
2,459
138,620
795
182,849
2,792
186,435
of which: Foreign exchange
570
48,911
71
49,551
472
100,572
66
101,111
of which: Interest rate
0
38,135
898
39,033
0
41,193
878
42,071
of which: Equity / index
0
39,940
937
40,877
0
35,747
1,129
36,876
of which: Credit
0
2,668
517
3,185
0
2,555
581
3,136
of which: Commodities
2
4,989
35
5,026
1
2,599
17
2,617
Brokerage receivables
0
28,747
0
28,747
0
25,858
0
25,858
Financial assets at fair value not held for trading
40,762
52,129
9,185
102,075
35,910
50,545
8,747
95,203
of which: Financial assets for unit-linked investment contracts
17,398
4
0
17,403
17,101
6
0
17,106
of which: Corporate and municipal bonds
30
14,844
145
15,020
31
14,695
133
14,859
of which: Government bills / bonds
22,856
6,062
0
28,919
18,264
6,204
0
24,469
of which: Loans
0
4,972
3,589
8,561
0
4,427
3,192
7,619
of which: Securities financing transactions
0
24,995
731
25,726
0
24,026
611
24,638
of which: Asset-backed securities
0
1,041
540
1,581
0
972
597
1,569
of which: Auction rate securities
0
0
191
191
0
0
191
191
of which: Investment fund units
387
123
640
1,150
423
133
681
1,237
of which: Equity instruments
90
0
2,930
3,020
91
0
2,916
3,008
Financial assets measured at fair value through other
comprehensive income on a recurring basis
Financial assets measured at fair value through other comprehensive
income
1,130
2,087
0
3,216
59
2,137
0
2,195
of which: Government bills / bonds
1,064
0
0
1,064
0
0
0
0
of which: Commercial paper and certificates of deposit
0
1,916
0
1,916
0
1,959
0
1,959
of which: Corporate and municipal bonds
66
171
0
236
59
178
0
237
Non-financial assets measured at fair value on a recurring
basis
Precious metals and other physical commodities
7,623
0
0
7,623
7,341
0
0
7,341
Non-financial assets measured at fair value on a non-recurring
basis
Other non-financial assets
2
0
0
89
89
0
0
84
84
Total assets measured at fair value
184,689
245,720
15,398
445,808
172,532
289,076
14,731
476,340
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
58
Note 10
Fair value measurement (continued)
Determination of fair values from quoted market prices or valuation techniques (continued)
1
31.3.25
31.12.24
USD m
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial liabilities measured at fair value on a
recurring basis
Financial liabilities at fair value held for trading
30,503
12,565
31
43,099
24,577
10,429
240
35,247
of which: Equity instruments
22,597
390
21
23,008
18,528
257
29
18,814
of which: Corporate and municipal bonds
2
10,768
5
10,775
5
8,771
206
8,982
of which: Government bills / bonds
6,490
1,210
0
7,699
4,336
1,174
0
5,510
of which: Investment fund units
1,414
96
3
1,512
1,708
162
3
1,873
Derivative financial instruments
1,407
136,694
4,130
142,230
829
175,788
4,060
180,678
of which: Foreign exchange
553
50,624
44
51,220
506
94,077
46
94,628
of which: Interest rate
0
33,911
337
34,248
0
36,313
324
36,636
of which: Equity / index
0
44,707
3,293
48,000
0
39,597
3,142
42,739
of which: Credit
0
3,182
374
3,556
0
3,280
414
3,694
of which: Commodities
2
4,128
25
4,155
1
2,200
15
2,216
of which: Loan commitments measured at FVTPL
0
45
29
74
0
75
62
137
Financial liabilities designated at fair value on a recurring
basis
Brokerage payables designated at fair
value
0
59,921
0
59,921
0
49,023
0
49,023
Debt issued designated at fair value
0
96,189
11,204
107,393
0
90,725
11,842
102,567
Other financial liabilities designated at fair value
0
28,525
4,267
32,792
0
29,779
4,262
34,041
of which: Financial liabilities related to unit-linked
investment contracts
0
17,528
0
17,528
0
17,203
0
17,203
of which: Securities financing transactions
0
3,985
108
4,094
0
5,798
0
5,798
of which: Funding from UBS Group AG
0
4,042
1,515
5,557
0
3,848
1,494
5,342
of which: Over-the-counter debt instruments
and others
0
2,969
2,644
5,613
0
2,930
2,768
5,698
Total liabilities measured at fair value
31,909
333,894
19,633
385,436
25,406
355,744
20,405
401,555
1 Bifurcated embedded derivatives are presented on the
same balance sheet lines as their host
contracts and are not included in this table. The fair value of
these derivatives was not material for the periods presented.
2 Other non-financial assets primarily consist of properties and other non-current assets held for sale, which are measured at the
lower of their net carrying amount or fair value less costs to sell.
b) Valuation adjustments
The table below summarizes the changes
in deferred day-1 profit or loss reserves during the
relevant period.
Deferred day-1 profit or loss is generally released into
Other net income from financial instruments measured
at fair
value
through
profit
or
loss
when
the
pricing
of
equivalent
products
or
the
underlying
parameters
become
observable or when the transaction is closed out.
Deferred day-1 profit or loss reserves
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Reserve balance at the beginning of the period
421
418
397
Profit / (loss) deferred on new transactions
65
57
42
(Profit) / loss recognized in the income statement
(95)
(51)
(60)
Foreign currency translation
(1)
(4)
0
Reserve balance at the end of the period
391
421
379
The table below summarizes other valuation
adjustment reserves recognized on the balance sheet.
Other valuation adjustment reserves on the balance sheet
As of
USD m
31.3.25
31.12.24
Own credit adjustments on financial liabilities designated at fair value
1
(942)
(1,165)
of which: debt issued designated at fair value
(680)
(780)
of which: other financial liabilities designated at fair value
(262)
(385)
Credit valuation adjustments
2
(128)
(125)
Funding and debit valuation adjustments
(69)
(96)
Other valuation adjustments
(971)
(1,206)
of which: liquidity
(570)
(746)
of which: model uncertainty
(401)
(460)
1 Own credit adjustments on financial liabilities designated at fair value includes amounts for TLAC notes.
2 Amount does not include reserves against defaulted counterparties.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
59
Note 10
Fair value measurement (continued)
c) Level 3 instruments: valuation techniques
and inputs
The
table
below
presents material
Level 3
assets
and
liabilities,
together
with
the
valuation
techniques
used
to
measure fair value,
as well as
the inputs used
in a given
valuation technique that are
considered significant as of
31 March 2025 and unobservable, and a range
of values for those unobservable inputs.
The range of values
represents the highest- and
lowest-level inputs used in the valuation
techniques. Therefore, the
range does not reflect the level of uncertainty regarding a particular input or an assessment of the reasonableness of
UBS AG’s estimates
and assumptions,
but rather
the different
underlying characteristics
of the
relevant assets
and
liabilities
held by UBS
AG.
The significant unobservable
inputs disclosed in
the table below
are consistent with
those included in
“Note 21 Fair
value measurement” in the “Consolidated financial
statements” section of the UBS AG Annual
Report 2024.
Valuation techniques and inputs used in the fair value measurement of Level 3 assets and liabilities
Fair value
Significant unobservable
input(s)
1
Range of inputs
Assets
Liabilities
Valuation technique(s)
31.3.25
31.12.24
USD bn
31.3.25
31.12.24
31.3.25
31.12.24
low
high
weighted
average
2
low
high
weighted
average
2
unit
1
Financial assets and liabilities at fair value held for
trading and Financial assets at fair value not held for
trading
Corporate and municipal
bonds
1.0
1.0
0.0
0.2
Relative value to
market comparable
Bond price equivalent
23
105
89
23
114
98
points
Discounted expected
cash flows
Discount margin
917
917
917
868
868
868
basis
points
Traded loans,
loans
designated at fair value
and guarantees
6.1
5.2
0.0
0.0
Relative value to
market comparable
Loan price equivalent
1
102
93
1
173
84
points
Discounted expected
cash flows
Credit spread
17
395
132
16
545
195
basis
points
Market comparable
and securitization
model
Credit spread
97
1,939
280
75
1,899
208
basis
points
Asset-backed securities
0.7
0.7
0.0
0.0
Relative value to
market comparable
Bond price equivalent
1
100
78
0
112
79
points
Investment fund units
3
0.8
0.8
0.0
0.0
Relative value to
market comparable
Net asset value
Equity instruments
3
3.1
3.0
0.0
0.0
Relative value to
market comparable
Price
Debt issued designated at
fair value
4
11.2
11.8
Other financial liabilities
designated at fair value
4.3
4.3
Discounted expected
cash flows
Funding spread
95
221
95
201
basis
points
Derivative financial instruments
Interest rate
0.9
0.9
0.3
0.3
Option model
Volatility of interest rates
51
112
50
156
basis
points
IR-to-IR correlation
67
99
60
99
%
Discounted expected
cash flows
Funding spread
5
20
5
20
basis
points
Credit
0.5
0.6
0.4
0.4
Discounted expected
cash flows
Credit spreads
3
1,760
2
1,789
basis
points
Credit correlation
50
66
50
66
%
Recovery rates
0
100
0
100
%
Option model
Credit volatility
60
79
59
127
%
Recovery rates
0
40
%
Equity / index
0.9
1.1
3.3
3.1
Option model
Equity dividend yields
0
16
0
16
%
Volatility of equity stocks,
equity and other indices
2
111
4
126
%
Equity-to-FX correlation
(65)
70
(65)
80
%
Equity-to-equity correlation
15
100
0
100
%
Loan commitments
measured at FVTPL
0.0
0.1
Relative value to
market comparable
Loan price equivalent
82
100
60
101
points
1 The ranges of significant unobservable
inputs are represented in points, percentages and
basis points. Points are
a percentage of par (e.g. 100
points would be 100% of par).
2 Weighted averages are provided
for most non-derivative financial instruments and were calculated
by weighting inputs based on the fair values of
the respective instruments. Weighted averages
are not provided for inputs related to Other financial
liabilities designated at
fair value and
Derivative financial instruments,
as this would
not be meaningful.
3 The range
of inputs is
not disclosed, as
there is a
dispersion of values
given the diverse
nature of the
investments.
4 Debt issued designated at fair value primarily consists of UBS structured notes, which include variable maturity notes with various equity and foreign exchange underlying risks, as well as rates-linked
and credit-linked notes, all of which have embedded
derivative parameters that are considered to be unobservable.
The equivalent derivative instrument parameters
for debt issued or embedded derivatives for over-
the-counter debt instruments are presented in the respective derivative financial instruments lines in this table.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
60
Note 10
Fair value measurement (continued)
d) Level 3 instruments: sensitivity to changes
in unobservable input assumptions
The table below summarizes those financial assets and liabilities classified as Level 3 for
which a change in one or
more of
the unobservable
inputs to
reflect reasonably
possible alternative
assumptions would
change fair
value
significantly, and the estimated effect thereof.
The
sensitivity data
shown below
presents an
estimation of
valuation uncertainty
based
on
reasonably possible
alternative values for Level 3
inputs at the balance sheet
date and does not represent
the estimated effect of stress
scenarios. Typically,
these financial
assets and
liabilities are
sensitive to
a combination
of inputs
from Levels 1–3.
Although well-defined interdependencies
may exist
between Level 1 / 2 parameters
and Level 3
parameters (e.g.
between interest rates,
which are generally
Level 1 or Level 2,
and prepayments,
which are generally
Level 3), these
have not been incorporated
in the table. Furthermore,
direct interrelationships between
the Level 3 parameters are
not a significant element of the valuation uncertainty.
Sensitivity of fair value measurements to changes in unobservable input assumptions
1
31.3.25
31.12.24
USD m
Favorable
changes
Unfavorable
changes
Favorable
changes
Unfavorable
changes
Traded loans, loans measured at fair value and guarantees
147
(115)
185
(143)
Securities financing transactions
25
(20)
30
(24)
Auction rate securities
8
(6)
8
(6)
Asset-backed securities
23
(18)
32
(28)
Equity instruments
348
(314)
333
(308)
Investment fund units
176
(178)
179
(181)
Loan commitments measured at FVTPL
15
(47)
38
(42)
Interest rate derivatives, net
77
(65)
115
(70)
Credit derivatives, net
88
(108)
112
(117)
Foreign exchange derivatives, net
4
(3)
3
(2)
Equity / index derivatives, net
619
(503)
732
(617)
Other
256
(152)
289
(161)
Total
1,785
(1,528)
2,056
(1,700)
1 Sensitivity of issued and over-the-counter debt instruments is reported with the equivalent derivative
or Other.
e) Level 3 instruments: movements during
the period
The table below presents additional information about material Level 3 assets and liabilities measured at fair value
on a recurring basis. Level 3 assets and liabilities
may be hedged with instruments
classified as Level 1 or Level 2 in
the fair
value hierarchy
and, as
a
result,
realized and
unrealized gains
and losses
included in
the table
may not
include the effect of related hedging
activity. Furthermore, the realized and unrealized gains and
losses presented
in the table are not
limited solely to those
arising from Level 3 inputs,
as valuations are generally
derived from both
observable and unobservable parameters.
Assets
and
liabilities
transferred
into
or
out
of
Level 3
are
presented
as
if
those
assets
or
liabilities
had
been
transferred on 1 January 2025.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
61
Note 10
Fair value measurement (continued)
Movements of Level 3 instruments
USD bn
Balance at
the beginning
of the period
Net gains /
losses
included in
compre-
hensive
income
1
of which:
related to
instruments
held at the
end of the
period
Purchases
Sales
Issuances
Settlements
Transfers
into
Level 3
Transfers
out of
Level 3
Foreign
currency
translation
Balance at
the end
of the
period
For the three months ended 31 March 2025
2
Financial assets at fair value held for
trading
3.1
0.0
(0.0)
0.2
(0.8)
1.1
(0.3)
0.3
(0.1)
0.0
3.7
of which: Equity instruments
0.1
0.0
0.0
0.0
(0.0)
0.0
(0.0)
0.1
(0.0)
0.0
0.1
of which: Corporate and municipal
bonds
0.8
0.0
0.0
0.2
(0.1)
0.0
(0.0)
0.1
(0.1)
0.0
0.9
of which: Loans
1.8
0.0
(0.0)
0.0
(0.5)
1.1
(0.3)
0.1
(0.0)
0.0
2.3
Derivative financial instruments –
assets
2.8
(0.5)
(0.4)
0.0
0.0
0.7
(0.6)
0.4
(0.3)
0.0
2.5
of which: Interest rate
0.9
(0.0)
(0.0)
0.0
0.0
0.0
(0.1)
0.3
(0.1)
(0.0)
0.9
of which: Equity / index
1.1
(0.3)
(0.3)
0.0
0.0
0.4
(0.2)
0.1
(0.1)
0.0
0.9
of which: Credit
0.6
(0.0)
(0.0)
0.0
0.0
0.2
(0.2)
0.0
(0.1)
0.0
0.5
Financial assets at fair value not held
for trading
8.7
0.1
0.1
0.1
(0.2)
0.6
(0.2)
0.1
(0.1)
0.1
9.2
of which: Loans
3.2
0.1
0.1
0.0
(0.0)
0.5
(0.1)
0.0
(0.1)
0.0
3.6
of which: Auction rate securities
0.2
(0.0)
(0.0)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
of which: Equity instruments
2.9
0.0
0.0
0.0
(0.1)
0.0
(0.0)
0.0
(0.0)
0.0
2.9
of which: Investment fund units
0.7
0.0
(0.0)
0.0
(0.1)
0.0
0.0
0.0
0.0
0.0
0.6
of which: Asset-backed securities
0.6
(0.0)
(0.0)
0.0
(0.0)
0.0
0.0
0.0
(0.1)
0.0
0.5
Derivative financial instruments –
liabilities
4.1
0.2
0.2
0.0
(0.0)
0.7
(0.6)
0.1
(0.3)
0.0
4.1
of which: Interest rate
0.3
0.0
0.0
0.0
(0.0)
0.0
(0.0)
0.0
(0.0)
0.0
0.3
of which: Equity / index
3.1
0.2
0.1
0.0
0.0
0.6
(0.5)
0.1
(0.3)
0.0
3.3
of which: Credit
0.4
0.0
0.0
0.0
0.0
0.1
(0.1)
0.0
(0.0)
(0.0)
0.4
of which: Loan commitments
measured at FVTPL
0.1
(0.0)
(0.0)
0.0
0.0
0.0
(0.0)
0.0
(0.0)
0.0
0.0
Debt issued designated at fair value
11.8
0.2
0.2
0.0
0.0
1.7
(1.2)
0.6
(2.1)
0.2
11.2
Other financial liabilities designated at
fair value
4.3
(0.0)
(0.0)
0.0
(0.0)
0.3
(0.3)
0.0
(0.0)
0.0
4.3
For the three months ended 31 March 2024
Financial assets at fair value held for
trading
1.8
(0.0)
(0.0)
0.2
(0.8)
0.4
(0.3)
0.1
(0.1)
(0.0)
1.4
of which: Equity instruments
0.1
0.0
0.0
0.0
(0.0)
0.0
(0.0)
0.1
(0.0)
(0.0)
0.2
of which: Corporate and municipal
bonds
0.6
(0.0)
(0.0)
0.2
(0.2)
0.0
0.0
0.0
(0.0)
(0.0)
0.5
of which: Loans
0.9
0.0
0.0
0.0
(0.5)
0.4
(0.3)
0.1
(0.0)
(0.0)
0.6
Derivative financial instruments –
assets
1.3
(0.0)
(0.1)
0.0
0.0
0.4
(0.3)
0.1
(0.1)
(0.0)
1.3
of which: Interest rate
0.3
0.1
0.1
0.0
0.0
0.0
(0.1)
0.0
(0.1)
0.0
0.3
of which: Equity / index
0.7
(0.1)
(0.1)
0.0
0.0
0.4
(0.2)
0.0
(0.0)
(0.0)
0.7
of which: Credit
0.3
(0.0)
(0.0)
0.0
0.0
0.0
(0.1)
0.1
(0.0)
(0.0)
0.3
Financial assets at fair value not held
for trading
4.1
0.0
0.0
0.0
(0.0)
0.4
(0.1)
0.0
(0.0)
(0.0)
4.4
of which: Loans
1.3
0.0
0.0
0.0
0.0
0.2
(0.1)
0.0
(0.0)
(0.0)
1.3
of which: Auction rate securities
1.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.2
of which: Equity instruments
1.1
0.0
0.0
0.0
(0.0)
0.0
(0.0)
0.0
0.0
(0.0)
1.1
of which: Investment fund units
0.2
0.0
0.0
0.0
(0.0)
0.0
0.0
0.0
0.0
(0.0)
0.2
Derivative financial instruments –
liabilities
3.2
0.5
0.4
0.0
0.0
1.7
(1.0)
0.2
(0.1)
(0.0)
4.5
of which: Interest rate
0.1
0.0
0.0
0.0
0.0
0.0
(0.0)
0.0
(0.0)
0.0
0.2
of which: Equity / index
2.7
0.5
0.4
0.0
0.0
1.7
(0.9)
0.2
(0.1)
(0.0)
4.0
of which: Credit
0.3
(0.0)
(0.0)
0.0
0.0
0.0
(0.1)
0.0
(0.0)
(0.0)
0.2
Debt issued designated at fair value
7.8
0.2
0.2
0.0
0.0
1.6
(0.8)
0.3
(1.6)
(0.1)
7.4
Other financial liabilities designated at
fair value
2.3
(0.1)
(0.1)
0.0
0.0
0.1
(0.2)
0.0
(0.0)
(0.0)
2.1
1 Net gains / losses included
in comprehensive income are recognized
in Net interest income and
Other net income from financial
instruments measured at fair value
through profit or loss in
the Income statement,
and also in
Gains / (losses)
from own credit
on financial liabilities
designated at fair
value, before
tax in the
Statement of comprehensive
income.
2 Total
Level 3 assets as
of 31 March
2025 were USD
15.4bn
(31 December 2024: USD 14.7bn). Total Level 3 liabilities as of 31 March 2025 were USD 19.6bn (31 December 2024:
USD 20.4bn).
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
62
Note 10
Fair value measurement (continued)
f) Financial instruments not measured
at fair value
The table
below reflects
the estimated
fair values
of financial
instruments not
measured at
fair value.
Valuation
principles applied
when determining fair
value estimates for
financial instruments not
measured at
fair value
are
consistent with those described in “Note 21
Fair value measurement” in the “Consolidated financial statements”
section of the UBS AG Annual Report 2024.
Financial instruments not measured at fair value
31.3.25
31.12.24
USD bn
Carrying
amount
Fair
value
Carrying
amount
Fair
value
Assets
Cash and balances at central banks
231.4
231.4
223.3
223.3
Amounts due from banks
20.3
20.3
18.1
18.1
Receivables from securities financing transactions measured at amortized
cost
101.8
101.8
118.3
118.3
Cash collateral receivables on derivative instruments
39.0
39.0
44.0
44.0
Loans and advances to customers
603.2
597.1
587.3
582.4
Other financial assets measured at amortized cost
66.9
65.4
59.3
57.5
Liabilities
Amounts due to banks
27.8
27.8
23.3
23.4
Payables from securities financing transactions measured at amortized cost
15.0
15.0
14.8
14.8
Cash collateral payables on derivative instruments
32.0
32.0
36.4
36.4
Customer deposits
747.5
748.2
749.5
750.0
Funding from UBS Group AG measured at amortized cost
111.5
115.3
107.9
112.5
Debt issued measured at amortized cost
98.3
98.7
101.1
102.7
Other financial liabilities measured at amortized cost
1
15.6
15.6
17.9
17.9
1 Excludes lease liabilities.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
63
Note 11
Derivative instruments
a) Derivative instruments
As of 31.3.25, USD bn
Derivative
financial
assets
Derivative
financial
liabilities
Notional values
related to derivative
financial assets and
liabilities
1
Other
notional
values
2
Derivative financial instruments
Interest rate
39.0
34.2
3,722
18,048
Credit derivatives
3.2
3.6
173
Foreign exchange
49.6
51.2
7,255
294
Equity / index
40.9
48.0
1,419
104
Commodities
5.0
4.2
180
19
Other
3
0.9
1.1
178
Total derivative financial instruments, based on netting under IFRS Accounting Standards
4
138.6
142.2
12,927
18,465
Further netting potential not recognized on the balance
sheet
5
(123.2)
(127.9)
of which: netting of recognized financial liabilities / assets
(100.9)
(100.9)
of which: netting with collateral received / pledged
(22.3)
(27.0)
Total derivative financial instruments, after consideration of further netting potential
15.4
14.4
As of 31.12.24, USD bn
Derivative financial instruments
Interest rate
42.1
36.6
3,650
16,844
Credit derivatives
3.1
3.7
144
Foreign exchange
101.1
94.6
7,216
269
Equity / index
36.9
42.7
1,365
93
Commodities
2.6
2.2
155
17
Other
3
0.6
0.8
87
Total derivative financial instruments, based on netting under IFRS Accounting Standards
4
186.4
180.7
12,617
17,223
Further netting potential not recognized on the balance
sheet
5
(162.6)
(166.4)
of which: netting of recognized financial liabilities / assets
(135.6)
(135.6)
of which: netting with collateral received / pledged
(27.1)
(30.8)
Total derivative financial instruments, after consideration of further netting potential
23.8
14.3
1 In cases where derivative
financial instruments are presented
on a net basis
on the balance sheet,
the respective notional
values of the netted
derivative financial instruments
are still presented on
a gross basis.
Notional amounts of client-cleared ETD and OTC transactions
through central clearing counterparties are not disclosed, as they
have a significantly different risk profile.
2 Other notional values relate to derivatives
that are cleared through either a central counterparty or an exchange and settled on a
daily basis. The fair value of these derivatives is presented on the balance sheet net of the corresponding cash margin under Cash
collateral receivables on derivative
instruments and Cash collateral payables
on derivative instruments and
was not material for all
periods presented.
3 Includes Loan commitments measured at
FVTPL, as well as
unsettled purchases and sales of non-derivative
financial instruments for which the changes
in the fair value between trade
date and settlement date are recognized
as derivative financial instruments.
4 Financial
assets and liabilities
are presented net
on the balance sheet
if UBS has
the unconditional and
legally enforceable right to
offset the recognized
amounts, both in
the normal course
of business and
in the event of
default, bankruptcy or insolvency of UBS
or its counterparties, and intends
either to settle on a net
basis or to realize the asset
and settle the liability simultaneously.
5 Reflects the netting potential in accordance
with enforceable master netting and similar arrangements where not all criteria for a net presentation on the balance sheet have been met. Refer to “Note 22 Offsetting financial assets and financial liabilities” in the
“Consolidated financial statements” section of the UBS AG Annual Report 2024 for more information.
b) Cash collateral on derivative instruments
USD bn
Receivables
31.3.25
Payables
31.3.25
Receivables
31.12.24
Payables
31.12.24
Cash collateral on derivative instruments, based on netting under IFRS Accounting
Standards
1
39.0
32.0
44.0
36.4
Further netting potential not recognized on the balance
sheet
2
(24.3)
(17.1)
(28.3)
(22.6)
of which: netting of recognized financial liabilities / assets
(22.2)
(15.0)
(25.9)
(20.2)
of which: netting with collateral received / pledged
(2.1)
(2.1)
(2.4)
(2.4)
Cash collateral on derivative instruments, after consideration of further netting potential
14.7
14.9
15.7
13.8
1 Financial assets and liabilities are presented
net on the balance sheet if UBS
has the unconditional and legally enforceable right
to offset the recognized amounts,
both in the normal course of business
and in the
event of default,
bankruptcy or insolvency
of UBS or
its counterparties,
and intends either
to settle on
a net basis
or to realize
the asset and
settle the liability
simultaneously.
2 Reflects the
netting potential in
accordance with enforceable
master netting and
similar arrangements where
not all criteria
for a net
presentation on the
balance sheet have
been met. Refer
to “Note 22
Offsetting financial assets
and financial
liabilities” in the “Consolidated financial statements” section of the UBS AG Annual Report 2024 for more information.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
64
Note
12
Other assets and liabilities
a) Other financial assets measured at amortized cost
USD m
31.3.25
31.12.24
Debt securities
48,095
41,583
Loans to financial advisors
2,738
2,723
Fee- and commission-related receivables
2,493
2,231
Finance lease receivables
6,104
5,934
Settlement and clearing accounts
444
430
Accrued interest income
2,127
2,196
Other
1
4,864
4,182
Total other financial assets measured at amortized cost
66,864
59,279
1 Predominantly includes cash collateral provided to exchanges and clearing houses to secure securities trading activity through
those counterparties.
b) Other non-financial assets
USD m
31.3.25
31.12.24
Precious metals and other physical commodities
7,623
7,341
Deposits and collateral provided in connection with litigation,
regulatory and similar matters
1
2,012
1,946
Prepaid expenses
1,285
1,194
Current tax assets
1,410
1,504
VAT,
withholding tax and other tax receivables
816
1,129
Properties and other non-current assets held for sale
189
195
Assets of disposal groups held for sale
2
1,823
Other
1,799
2,149
Total other non-financial assets
15,134
17,282
1 Refer to Note 16 for more information.
2 Refer to Note 6 for more information about the sale of Select Portfolio Servicing.
c) Other financial liabilities measured at amortized cost
USD m
31.3.25
31.12.24
Other accrued expenses
2,646
2,732
Accrued interest expenses
4,910
5,862
Settlement and clearing accounts
2,193
1,925
Lease liabilities
3,824
3,871
Other
5,849
7,372
Total other financial liabilities measured at amortized cost
19,421
21,762
d) Other financial liabilities designated at fair value
USD m
31.3.25
31.12.24
Financial liabilities related to unit-linked investment contracts
17,528
17,203
Securities financing transactions
4,093
5,798
Over-the-counter debt instruments and other
5,613
5,698
Funding from UBS Group AG
1
5,557
5,342
Total other financial liabilities designated at fair value
32,792
34,041
1 Funding from UBS Group AG
consists of subordinated debt of UBS
AG and its subsidiaries toward
UBS Group AG. Subordinated
debt consists of unsecured debt
obligations that are contractually subordinated
in
right of payment to all other present and future non-subordinated obligations of the respective issuing entity.
e) Other non-financial liabilities
USD m
31.3.25
31.12.24
Compensation-related liabilities
4,460
6,897
of which: net defined benefit liability
704
691
Current tax liabilities
1,697
1,536
Deferred tax liabilities
303
283
VAT,
withholding tax and other tax payables
888
1,067
Deferred income
596
614
Liabilities of disposal groups held for sale
1
1,212
Other
80
304
Total other non-financial liabilities
8,024
11,911
1 Refer to Note 6 for more information about the sale of Select Portfolio Servicing.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
65
Note
13
Funding from UBS Group AG measured
at amortized cost
Funding from UBS Group AG measured at amortized cost
USD m
31.3.25
31.12.24
Debt contributing to total loss-absorbing capacity (TLAC)
88,236
87,036
Debt eligible as high-trigger loss-absorbing additional tier
1 capital instruments
1
18,325
14,585
Debt eligible as low-trigger loss-absorbing additional
tier 1 capital instruments
1,245
Other
2
4,895
5,051
Total funding from UBS Group AG measured at amortized cost
3,4
111,457
107,918
1 For 31 March 2025, includes
USD 10.1bn (31 December 2024: USD 6.9bn)
that is, upon the occurrence
of a trigger event or a viability event,
subject to conversion into ordinary UBS shares.
2 Includes debt no
longer eligible as TLAC having a residual maturity of less than one
year and high-trigger loss-absorbing additional tier 1 capital instruments that ceased to
be eligible when UBS Group AG issued notice of redemption.
3 Consists of subordinated debt of
UBS AG and its subsidiaries
toward UBS Group AG.
Subordinated debt consists of unsecured
debt obligations that are contractually
subordinated in right of payment
to all other
present and future non-subordinated obligations of the respective issuing entity.
4 UBS AG has also recognized funding from UBS Group AG that is designated at fair value. Refer to Note 12d for more information.
Note
14
Debt issued designated at fair value
Debt issued designated at fair value
USD m
31.3.25
31.12.24
Equity-linked
1
57,151
54,069
Rates-linked
23,778
23,641
Credit-linked
5,354
5,225
Fixed-rate
15,178
14,250
Commodity-linked
3,462
3,592
Other
2,470
1,789
Total debt issued designated at fair value
2
107,393
102,567
1 Includes investment fund unit-linked instruments issued.
2 As of 31 March 2025, 100% of Total debt issued designated at fair value was unsecured
(31 December 2024: 100%).
Note
15
Debt issued measured at amortized cost
Debt issued measured at amortized cost
USD m
31.3.25
31.12.24
Short-term debt
1
30,582
30,509
Senior unsecured debt
30,106
33,416
Covered bonds
9,089
8,814
Subordinated debt
676
689
of which: eligible as non-Basel III-compliant tier 2 capital
instruments
205
207
Debt issued through the Swiss central mortgage institutions
27,378
27,251
Other long-term debt
429
424
Long-term debt
2
67,677
70,595
Total debt issued measured at amortized cost
3,4
98,259
101,104
1 Debt with an original contractual maturity of
less than one year,
includes mainly certificates of deposit and commercial
paper.
2 Debt with an original contractual maturity
greater than or equal to one year.
The
classification of debt
issued into short
-term and long
-term does not
consider any early
redemption features.
3 Net of bifurcated
embedded derivatives,
the fair value
of which was
not material for
the periods
presented.
4 Except for Covered bonds (100% secured), Debt issued through the Swiss central mortgage institutions (100% secured) and Other long-term debt (92% secured), 100% of the balance was unsecured
as of 31 March 2025.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
66
Note 16
Provisions and contingent liabilities
a) Provisions
The table below presents an overview of total provisions.
Overview of total provisions
USD m
31.3.25
31.12.24
Provisions other than provisions for expected credit losses
5,146
4,799
Provisions for expected credit losses
1
348
332
Total provisions
5,495
5,131
1 Refer to Note 9c for more information about ECL provisions recognized for off-balance sheet financial instruments and credit lines.
The table below presents additional information
for provisions other than provisions for
expected credit losses.
Additional information for provisions other than provisions for expected credit losses
USD m
Litigation,
regulatory and
similar matters
1
Restructuring
2
Real estate
3
Other
4
Total
Balance as of 31 December 2024
3,598
699
224
278
4,799
Increase in provisions recognized in the income statement
226
247
4
37
515
Release of provisions recognized in the income statement
(12)
(28)
(1)
(15)
(57)
Provisions used in conformity with designated purpose
(30)
(149)
(12)
(12)
(204)
Foreign currency translation and other movements
65
13
9
7
93
Balance as of 31 March 2025
3,848
781
223
294
5,146
1 Consists of provisions
for losses
resulting from
legal, liability
and compliance risks.
2 Includes USD
374m of provisions
for onerous
contracts related
to real estate
as of 31
March 2025
(31 December 2024:
USD 383m) and USD 342m of personnel-related restructuring provisions as
of 31 March 2025 (31 December 2024: USD 262m), as
well as provisions for onerous contracts related to technology.
3 Mainly includes
provisions for reinstatement costs with respect to leased properties.
4 Mainly includes provisions related to employee benefits, VAT
and operational risks.
Information about provisions and
contingent liabilities in respect of
litigation, regulatory and similar matters,
as a
class,
is
included
in
Note
16b.
There
are
no
material
contingent
liabilities
associated
with
the
other
classes
of
provisions.
b) Litigation, regulatory and similar matters
UBS operates in a legal and regulatory environment that exposes it
to significant litigation and similar risks arising
from disputes and
regulatory proceedings. As
a result, UBS
is involved in
various disputes and
legal proceedings,
including litigation, arbitration, and regulatory and criminal investigations. “UBS”, “we”
and “our”, for purposes
of this Note, refer to UBS AG and / or one or more
of its subsidiaries, as applicable.
Such matters are subject
to many uncertainties,
and the outcome and the
timing of resolution are
often difficult to
predict, particularly in the earlier stages of a case.
There are also situations where UBS may enter into
a settlement
agreement. This may occur in order to avoid
the expense, management distraction or reputational implications of
continuing
to
contest
liability,
even
for
those
matters
for
which
UBS
believes
it
should
be
exonerated.
The
uncertainties inherent in all such matters affect the amount and timing of any potential outflows for both matters
with respect to
which provisions have
been established and other
contingent liabilities. UBS makes
provisions for
such matters brought
against it when,
in the
opinion of
management after seeking
legal advice, it
is more
likely
than not
that UBS
has a
present legal
or constructive obligation
as a
result of
past events,
it is
probable that
an
outflow of resources
will be required,
and the amount
can be reliably
estimated. Where these
factors are otherwise
satisfied, a
provision may
be established
for claims
that have
not yet
been asserted
against UBS,
but are
nevertheless
expected to be, based on UBS’s experience with similar
asserted claims. If any of those conditions is not met, such
matters result in contingent liabilities. If the amount of an obligation
cannot be reliably estimated, a liability exists
that is not
recognized even if an
outflow of resources is
probable. Accordingly, no provision is
established even if
the potential
outflow of
resources with
respect to
such matters
could be
significant. Developments relating
to a
matter that occur
after the relevant reporting
period, but prior
to the issuance
of financial statements,
which affect
management’s
assessment
of
the
provision
for
such
matter
(because,
for
example,
the
developments
provide
evidence of
conditions that
existed at
the end
of the
reporting period),
are adjusting
events after
the reporting
period under IAS 10 and must be recognized in
the financial statements for the reporting
period.
Specific litigation, regulatory and other matters are
described below, including all such matters that
management
considers
to
be
material
and
others
that
management
believes
to
be
of
significance
to
UBS
due
to
potential
financial,
reputational
and
other
effects.
The
amount
of
damages
claimed,
the
size
of
a
transaction
or
other
information is
provided where
available and
appropriate in order
to assist
users in
considering the
magnitude of
potential exposures.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
67
Note 16
Provisions and contingent liabilities
(continued)
In the case of certain matters below, we state that we have established a provision, and for the other matters, we
make no such statement. When we
make this statement and we expect
disclosure of the amount of a provision
to
prejudice seriously our
position with other
parties in the
matter because it
would reveal what
UBS believes to
be
the
probable
and
reliably estimable
outflow, we
do
not
disclose
that amount.
In
some
cases we
are
subject to
confidentiality obligations
that preclude
such disclosure.
With respect
to the
matters for
which we
do not
state
whether we have
established a provision,
either: (a) we
have not established
a provision; or
(b) we have
established
a provision
but expect
disclosure of
that fact
to prejudice
seriously our
position with
other parties
in the
matter
because it would reveal the fact that
UBS believes an outflow of resources to be probable
and reliably estimable.
With respect to certain litigation, regulatory
and similar matters for which we
have established provisions, we are
able to
estimate the expected
timing of outflows.
However, the aggregate
amount of the
expected outflows for
those matters for which we
are able to estimate expected
timing is immaterial relative to
our current and expected
levels of liquidity over the relevant time periods.
The
aggregate
amount
provisioned
for
litigation,
regulatory
and
similar
matters
as
a
class
is
disclosed
in
the
“Provisions” table in
Note 16a above.
UBS provides below
an estimate of
the aggregate liability
for its
litigation,
regulatory and
similar matters
as a
class of
contingent liabilities.
Estimates of
contingent liabilities
are inherently
imprecise and
uncertain as
these estimates
require UBS
to make
speculative legal
assessments as
to claims
and
proceedings that involve
unique fact patterns
or novel legal
theories, that have
not yet been
initiated or are
at early
stages of
adjudication, or
as to
which
alleged damages
have
not been
quantified by
the claimants.
Taking into
account these uncertainties
and the other factors
described herein, UBS
estimates the future losses
that could arise
from litigation,
regulatory and
similar matters
disclosed below
for which
an estimate
is possible,
that are
not covered
by existing provisions are in the range of USD
0bn to USD 3.2bn.
Litigation, regulatory
and similar
matters may
also result
in non-monetary
penalties and
consequences. A
guilty plea
to, or conviction of, a crime could have material consequences for UBS. Resolution of regulatory proceedings may
require UBS to obtain waivers of regulatory disqualifications to maintain certain operations, may entitle regulatory
authorities to limit, suspend or terminate
licenses and regulatory authorizations, and may
permit financial market
utilities to
limit, suspend
or terminate
UBS’s participation
in such
utilities. Failure
to obtain
such waivers,
or any
limitation, suspension
or termination
of licenses,
authorizations or
participations, could
have material
consequences
for UBS.
Provisions for litigation, regulatory and similar matters, by business division and in Group Items
1
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-
core and
Legacy
Group Items
UBS AG
Balance as of 31 December 2024
1,271
147
1
266
1,779
135
3,598
Increase in provisions recognized in the income statement
15
0
0
29
109
72
226
Release of provisions recognized in the income statement
(2)
0
0
(9)
0
(1)
(12)
Provisions used in conformity with designated purpose
(12)
0
0
0
(15)
(2)
(30)
Foreign currency translation and other movements
47
6
0
7
5
0
65
Balance as of 31 March 2025
1,318
153
0
293
1,878
205
3,848
1 Provisions, if any, for the matters
described in items 2 and 9 of this Note are recorded in Global Wealth
Management. Provisions, if any, for
the matters described in items 4, 5, 6, 7 and 8 of this Note
are recorded
in Non-core and Legacy. Provisions,
if any, for the matters
described in item 1 of this Note are allocated
between Global Wealth Management, Personal
& Corporate Banking and Non-core and Legacy.
Provisions, if
any, for the matters described in item 3 of this Note are allocated
between the Investment Bank, Non-core and Legacy and Group Items. Provisions, if any, for the matters described in item 10
of this Note are allocated
between the Investment Bank and Non-core and Legacy.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
68
Note 16
Provisions and contingent liabilities
(continued)
- Inquiries regarding cross-border wealth management
businesses
Tax
and regulatory
authorities in
a number
of countries
have made
inquiries, served
requests for
information or
examined
employees
located
in
their
respective
jurisdictions
relating
to
the
cross-border
wealth
management
services provided by
UBS and
other financial
institutions. Credit Suisse
offices in various
locations, including
the UK,
the Netherlands, France and
Belgium, have been contacted
by regulatory and law enforcement
authorities seeking
records and information
concerning investigations
into Credit
Suisse’s historical
private banking
services on a
cross-
border basis and
in part through
its local branches
and banks.
The UK and
French aspects of
these issues have
been
closed. UBS is continuing to cooperate with
the authorities.
Since 2013, UBS
(France) S.A., UBS AG
and certain former employees
have been under investigation in
France in
relation to UBS’s cross-border business with French
clients. In connection with this investigation, the investigating
judges ordered UBS AG to provide bail (“
caution
”) of EUR 1.1bn.
In 2019,
the court of
first instance
returned a verdict
finding UBS AG
guilty of
unlawful solicitation of
clients on
French territory and aggravated
laundering of the proceeds
of tax fraud, and UBS
(France) S.A. guilty of aiding
and
abetting unlawful
solicitation and
of laundering
the proceeds
of tax
fraud. The
court imposed
fines aggregating
EUR 3.7bn on UBS AG and UBS (France) S.A. and awarded EUR 800m of civil
damages to the French state. A trial
in the
Paris Court
of Appeal
took place
in March
- In
December 2021,
the Court
of Appeal
found UBS AG
guilty of unlawful solicitation and aggravated laundering of the proceeds of tax fraud. The court ordered a fine of
EUR
3.75m,
the
confiscation
of
EUR 1bn,
and
awarded
civil
damages
to
the
French
state
of
EUR 800m.
UBS
appealed the decision to
the French Supreme Court. The
Supreme Court rendered its judgment
on 15 November
- It
upheld the
Court of
Appeal’s decision regarding
unlawful solicitation and
aggravated laundering of
the
proceeds of tax fraud, but overturned
the confiscation of EUR 1bn, the penalty of EUR 3.75m
and the EUR 800m
of civil
damages awarded
to the
French state.
The case
has been
remanded to
the Court
of Appeal
for a
retrial
regarding these overturned elements.
The French state has reimbursed the
EUR 800m of civil damages
to UBS AG.
In May
2014, Credit
Suisse AG
entered into
settlement agreements
with the
SEC, the
Federal Reserve,
the New York
Department
of
Financial
Services
and
agreed
with
the
U.S.
Department
of
Justice
(the
DOJ)
to
plead
guilty
to
conspiring to
aid and
abet US
taxpayers
in filing
false tax
returns (the
2014 Plea
Agreement). Credit
Suisse continued
to report to and cooperate with US authorities in accordance
with its obligations under the 2014 Plea Agreement,
including by
conducting a
review of
cross-border services
provided by
Credit Suisse.
In this
connection, Credit
Suisse
provided information to
US authorities regarding
potentially undeclared US assets
held by
clients at Credit
Suisse
since
the
2014
Plea
Agreement.
In
May
2025,
Credit
Suisse
Services
AG
entered
into
a
plea
agreement
(the
2025 Plea Agreement) with the
DOJ under which
it agreed to
plead guilty to
one count of
conspiracy to aid
and
assist in
the preparation
of false
income
tax returns.
In
addition, Credit
Suisse
Services AG
entered into
a
non-
prosecution agreement
with the
DOJ (the
2025 NPA)
relating to
legacy Credit
Suisse accounts
booked in
Credit
Suisse’s Singapore booking center. The 2025
Plea Agreement and the
2025 NPA provide for
penalties, restitution
and
forfeiture
of
USD
511m
in
the
aggregate.
The
2025
Plea
Agreement
and
the
2025
NPA
include
ongoing
obligations of UBS to furnish
information and cooperate
with DOJ’s investigations
of legacy Credit Suisse accounts
held by US
persons in
its Switzerland
and Singapore
booking centers
and related
accounts in
other booking
centers.
Our balance sheet at 31 March 2025 reflected provisions
in an amount that UBS believes to be appropriate under
the applicable accounting standard. As in the case of other matters for
which we have established provisions, the
future
outflow of
resources in
respect of
such
matters cannot
be
determined with
certainty
based on
currently
available information
and accordingly
may ultimately
prove to
be substantially
greater (or
may be
less) than
the
provision that we have recognized.
- Madoff
In relation to
the Bernard
L. Madoff Investment
Securities LLC
(BMIS) investment
fraud, UBS AG,
UBS (Luxembourg)
S.A. (now UBS
Europe SE, Luxembourg
branch) and certain
other UBS subsidiaries have
been subject to
inquiries
by a
number of
regulators, including
the Swiss
Financial Market
Supervisory Authority
(FINMA) and
the Luxembourg
Commission
de
Surveillance
du
Secteur
Financier.
Those
inquiries
concerned
two
third-party
funds
established
under Luxembourg
law,
substantially all
assets of
which were
with BMIS,
as well
as certain
funds established
in
offshore
jurisdictions
with
either
direct
or
indirect
exposure
to
BMIS.
These
funds
faced
severe
losses,
and
the
Luxembourg funds are in liquidation. The documentation establishing both funds identifies UBS entities in various
roles,
including custodian,
administrator,
manager,
distributor and
promoter,
and indicates
that UBS
employees
serve as board members.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
69
Note 16
Provisions and contingent liabilities
(continued)
In 2009 and 2010, the liquidators
of the two Luxembourg funds
filed claims against UBS entities,
non-UBS entities
and
certain
individuals,
including
current
and
former
UBS
employees,
seeking
amounts
totaling
approximately
EUR 2.1bn, which includes
amounts that the
funds may be
held liable to
pay the trustee
for the liquidation
of BMIS
(BMIS Trustee).
A large number of alleged beneficiaries have filed claims
against UBS entities (and non-UBS entities) for purported
losses relating to
the Madoff fraud.
The majority of
these cases have
been filed in
Luxembourg, where decisions
that the claims in eight test cases were inadmissible have been affirmed by the Luxembourg Court of Appeal, and
the Luxembourg Supreme Court has dismissed
a further appeal in one of the test
cases.
In the
US, the
BMIS Trustee
filed claims
against UBS
entities, among
others, in
relation to
the two
Luxembourg
funds and one of
the offshore funds. The
total amount claimed against
all defendants in
these actions was
not less
than USD 2bn. In
2014, the US
Supreme Court rejected
the BMIS Trustee’s
motion for leave
to appeal decisions,
dismissing all
claims against
UBS defendants
except those
for the
recovery of
approximately USD 125m
of payments
alleged to be
fraudulent conveyances
and preference
payments. Similar
claims have
been filed against
Credit Suisse
entities seeking to recover
redemption payments. In
2016, the bankruptcy
court dismissed these
claims against the
UBS entities
and most
of the
Credit Suisse entities.
In 2019, the
Court of Appeals
reversed the dismissal
of the
BMIS
Trustee’s remaining claims. The case has been
remanded to the Bankruptcy Court
for further proceedings.
- Foreign exchange, LIBOR and benchmark rates,
and other trading practices
Foreign-exchange-related regulatory matters:
Beginning in 2013, numerous authorities commenced investigations
concerning possible
manipulation of
foreign
exchange markets
and
precious
metals prices.
As
a
result
of these
investigations, UBS entered into resolutions with Swiss, US and
UK regulators and the European Commission. UBS
was granted conditional immunity
by the Antitrust Division
of the DOJ
and by authorities
in other jurisdictions
in
connection with potential competition law violations relating to foreign exchange and precious metals businesses.
In December
2021, the
European Commission
issued a
decision imposing
a fine
of EUR 83.3m
on Credit
Suisse
entities based on findings of anticompetitive practices in the foreign exchange market. Credit Suisse has appealed
the decision to the European General Court.
UBS received leniency and accordingly no fine was assessed.
Foreign-exchange-related civil litigation:
Putative class actions have been filed since 2013 in US federal courts and
in
other jurisdictions
against UBS,
Credit
Suisse and
other banks
on
behalf of
persons who
engaged in
foreign
currency transactions with any of the defendant banks.
UBS and Credit Suisse have resolved US federal court class
actions relating to foreign currency transactions with the defendant banks and persons who
transacted in foreign
exchange futures
contracts and
options on
such futures.
Certain class
members have
excluded themselves
from
that settlement
and filed
individual actions in
US and
English courts against
UBS, Credit
Suisse and
other banks,
alleging violations of US and European competition laws and unjust enrichment. UBS, Credit Suisse and the other
banks
have
resolved
those individual
matters.
In
addition,
Credit
Suisse
and
UBS,
together
with
other
financial
institutions, were named in
a consolidated putative
class action in
Israel, which made
allegations similar to those
made in
the actions
pursued in
other jurisdictions.
Credit Suisse
and UBS
entered into
agreements to
settle all
claims
in this action in April 2022 and February 2024, respectively. Credit Suisse’s settlement received
court approval and
will be deemed
final in May
2025 if the
petitioners do
not further appeal.
UBS’s settlement
remains subject
to court
approval.
LIBOR and other benchmark-related regulatory
matters:
Numerous government agencies conducted investigations
regarding potential improper attempts by UBS, among others, to manipulate LIBOR and other benchmark rates at
certain
times.
UBS
and
Credit
Suisse
reached
settlements
or
otherwise
concluded
investigations
relating
to
benchmark interest
rates with
the investigating
authorities. UBS
was granted
conditional leniency
or conditional
immunity
from
authorities
in
certain
jurisdictions,
including
the
Antitrust
Division
of
the
DOJ
and
the
Swiss
Competition Commission (WEKO), in
connection with potential
antitrust or competition
law violations related
to
certain rates.
However, UBS
has not
reached a
final settlement
with WEKO,
as the
Secretariat of
WEKO has
asserted
that UBS does not qualify for full immunity.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
70
Note 16
Provisions and contingent liabilities
(continued)
LIBOR and
other benchmark-related
civil litigation:
A number
of putative
class actions
and other
actions are
pending
in the federal
courts in New
York against UBS
and numerous other banks
on behalf of
parties who transacted in
certain interest rate benchmark-based derivatives. Also
pending in the US
and in other jurisdictions are
a number
of other
actions asserting losses
related to
various products whose
interest rates were
linked to
LIBOR and other
benchmarks, including
adjustable rate
mortgages, preferred
and debt securities,
bonds pledged
as collateral, loans,
depository
accounts,
investments
and
other
interest-bearing
instruments.
The
complaints
allege
manipulation,
through various
means, of
certain benchmark
interest rates,
including USD LIBOR,
Yen LIBOR,
EURIBOR, CHF LIBOR,
and GBP LIBOR and seek unspecified compensatory
and other damages under various legal
theories.
USD LIBOR class and individual actions in the
US:
Beginning in 2013, putative class actions
were filed in US federal
district courts
(and subsequently
consolidated in
the US
District Court
for the Southern
District of New
York (SDNY))
by plaintiffs who
engaged in over-the-counter
instruments, exchange-traded
Eurodollar futures and
options, bonds
or
loans
that
referenced
USD LIBOR.
The
complaints
allege
violations
of
antitrust
law
and
the
Commodities
Exchange Act,
as well
breach of
contract and unjust
enrichment. Following various
rulings by
the SDNY
and the
Second Circuit
dismissing certain
of the
causes of
action and
allowing others
to proceed,
one
class action
with
respect
to
transactions
in
over-the-counter
instruments
and
several
actions
brought
by
individual
plaintiffs
are
proceeding in the district court.
UBS and Credit Suisse
have entered into settlement agreements in
respect of the
class actions relating
to exchange-traded
instruments, bonds
and loans. These
settlements have
received final court
approval and
the actions
have been
dismissed as
to UBS
and Credit
Suisse. In
addition, an
individual action
was
filed in
federal court
in California
against UBS,
Credit Suisse
and numerous
other banks
alleging that
the defendants
conspired to fix the interest rate used as the basis for loans to consumers by jointly
setting the USD ICE LIBOR rate
and
monopolized
the
market
for
LIBOR-based
consumer loans
and
credit
cards. The
court
dismissed
the
initial
complaint and
subsequently
dismissed an
amended complaint
with prejudice;
the US
Court of
Appeals for
the Ninth
Circuit affirmed the dismissal. In
April 2025, plaintiffs filed
a petition for a
writ of certiorari with
the US Supreme
Court challenging the decisions of the lower
courts.
Other benchmark
class actions
in the
US:
The Yen
LIBOR/Euroyen TIBOR,
EURIBOR and
GBP LIBOR
actions have
been dismissed. Plaintiffs have appealed the
dismissals.
In January 2023, defendants
moved to dismiss the
complaint in the CHF
LIBOR action. In 2023,
the court approved
a settlement by Credit Suisse of the claims
against it in this matter.
Government bonds:
In 2021,
the European
Commission issued
a decision
finding that
UBS and
six other
banks
breached European
Union antitrust
rules between
2007 and
2011 relating
to European
government bonds. The
European Commission fined UBS EUR 172m,
which amount was confirmed on appeal
on 26 March 2025.
Credit default
swap auction
litigation –
In June
2021, Credit
Suisse, along
with other
banks and
entities, was
named
in a
putative class action
filed in federal
court in New
Mexico alleging manipulation of
credit default swap
(CDS)
final auction prices.
Defendants filed a
motion to enforce
a previous CDS
class action settlement
in the
SDNY. In
January 2024,
the SDNY
ruled that,
to the
extent claims
in the
New
Mexico action
arise from
conduct prior
to
30 June 2014, those claims are barred by
the SDNY settlement. The plaintiffs have
appealed the SDNY decision.
With respect
to additional
matters and
jurisdictions not
encompassed by
the settlements
and orders
referred to
above, UBS’s
balance sheet
at 31
March 2025
reflected a
provision in
an amount
that UBS
believes to
be appropriate
under the
applicable accounting
standard. As
in the
case of
other matters
for which
we have
established provisions,
the future outflow of resources in respect of such matters
cannot be determined with certainty based on currently
available information
and accordingly
may ultimately
prove to
be substantially
greater (or
may be
less) than
the
provision that we have recognized.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
71
Note 16
Provisions and contingent liabilities
(continued)
- Mortgage-related matters
Government and
regulatory
related matters:
DOJ RMBS
settlement
– In January
2017, Credit Suisse
Securities (USA)
LLC (CSS
LLC) and
its current
and former
US subsidiaries
and US
affiliates reached
a settlement
with the
DOJ related
to its
legacy
Residential Mortgage-Backed
Securities (RMBS)
business, a
business conducted
through
- The
settlement resolved
potential civil claims
by the
DOJ related
to certain of
those Credit
Suisse entities’ packaging,
marketing,
structuring,
arrangement,
underwriting,
issuance
and
sale
of
RMBS.
Pursuant
to
the
terms
of
the
settlement a civil monetary penalty was
paid to the DOJ in
January 2017. The settlement also required
the Credit
Suisse entities
to provide
certain levels
of consumer
relief measures,
including affordable
housing payments and
loan forgiveness, and the DOJ
and Credit Suisse agreed to the appointment
of an independent monitor to
oversee
the
completion of
the
consumer
relief
requirements
of
the
settlement. UBS
continues
to
evaluate its
approach
toward
satisfying
the
remaining
consumer
relief
obligations.
The
aggregate
amount
of
the
consumer
relief
obligation
increased
after
2021
by
5%
per
annum
of
the
outstanding
amount
due
until
these
obligations
are
settled. The monitor publishes reports periodically on
these consumer relief matters.
Civil litigation:
Repurchase litigations
–
Credit Suisse
affiliates are
defendants in
various civil
litigation matters
related
to their roles as issuer, sponsor, depositor, underwriter and/or servicer of RMBS transactions. These cases currently
include
repurchase
actions
by
RMBS
trusts
and/or
trustees,
in
which
plaintiffs
generally
allege
breached
representations and
warranties
in
respect of
mortgage loans
and
failure
to
repurchase such
mortgage loans
as
required
under
the
applicable
agreements. The
amounts disclosed
below
do
not
reflect
actual
realized
plaintiff
losses to
date. Unless
otherwise stated,
these amounts
reflect
the original
unpaid principal
balance amounts
as
alleged in these actions.
DLJ Mortgage Capital, Inc. (DLJ) is a defendant
in New York State court in five actions:
An action brought by Asset
Backed
Securities
Corporation
Home
Equity
Loan
Trust,
Series
2006-HE7
alleges
damages
of
not
less
than
USD 374m.
In
December 2023,
the
court granted
in
part
DLJ’s
motion
to
dismiss, dismissing
with
prejudice all
notice-based
claims;
the
parties
have
appealed.
An
action
by
Home
Equity
Asset
Trust,
Series
2006-8,
alleges
damages of not
less than
USD 436m. An action
by Home
Equity Asset Trust
2007-1 alleges damages
of not
less
than USD 420m.
Following a
non-jury trial,
the court
issued a
decision in
December 2024
that the
plaintiff had
established breaches
of representations
and warranties
relating to 209
of the 783
loans at issue.
The court
deferred
decision as to
damages, which will
either be agreed
upon by the
parties or briefed
for further decision
by the court.
An action
by Home
Equity Asset Trust
2007-2 alleges damages
of not
less than
USD 495m. An
action by
CSMC
Asset-Backed Trust 2007-NC1 does not allege
a damages amount.
- ATA litigation
Since November 2014, a
series of lawsuits have
been filed against a
number of banks, including
Credit Suisse, in
the US District Court
for the Eastern District of
New York
(EDNY) and the SDNY
alleging claims under the
United
States Anti-Terrorism
Act (ATA)
and the Justice
Against Sponsors of Terrorism
Act. The plaintiffs
in each of
these
lawsuits are, or are relatives of, victims of various terrorist
attacks in Iraq and allege a conspiracy
and/or aiding and
abetting based on allegations that various
international financial institutions, including the defendants, agreed to
alter,
falsify or omit
information from payment
messages that involved
Iranian parties for
the express
purpose of
concealing the
Iranian parties’ financial
activities and transactions
from detection
by US
authorities. The lawsuits
allege that
this conduct
has made
it possible
for Iran
to transfer
funds to
Hezbollah and
other terrorist
organizations
actively engaged
in harming
US military
personnel and
civilians. In
January 2023,
the Second
Circuit
affirmed
a
September 2019
ruling by
the EDNY
granting defendants’
motion to
dismiss the
first filed
lawsuit. In
October 2023,
the US Supreme Court denied plaintiffs’ petition for a writ
of certiorari. In February 2024, plaintiffs filed a motion
to vacate the judgment in the first filed lawsuit. Of
the other seven cases, four are stayed, including one that was
dismissed as
to Credit
Suisse and
most of
the bank
defendants prior
to entry
of the
stay, and in three
cases plaintiffs
have filed amended complaints.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
72
Note 16
Provisions and contingent liabilities
(continued)
- Customer account matters
Several
clients
have
claimed
that
a
former
relationship
manager
in
Switzerland
had
exceeded
his
investment
authority
in
the
management of
their
portfolios, resulting
in
excessive concentrations
of
certain
exposures
and
investment losses. Credit
Suisse AG has
investigated the claims,
as well as
transactions among the
clients. Credit
Suisse AG filed a criminal complaint against the former relationship manager with the Geneva Prosecutor’s Office
upon which the
prosecutor initiated
a criminal investigation.
Several clients of
the former relationship
manager also
filed criminal complaints with the
Geneva Prosecutor’s Office. In
February 2018, the former relationship manager
was sentenced to five years
in prison by the Geneva criminal
court for fraud, forgery
and criminal mismanagement
and ordered
to pay
damages of
approximately USD 130m. On
appeal, the Criminal
Court of
Appeals of
Geneva
and, subsequently, the Swiss Federal Supreme Court upheld the main findings of the
Geneva criminal court.
Civil lawsuits have
been initiated against Credit
Suisse AG and
/ or certain
affiliates in various jurisdictions,
based
on the findings established in the criminal
proceedings against the former relationship
manager.
In Singapore,
in a
civil lawsuit
against Credit
Suisse Trust
Limited, the
Singapore International Commercial
Court
issued a judgment
finding for
the plaintiffs and,
in September 2023,
the court awarded
damages of USD 742.73m,
excluding post-judgment
interest. This
figure does
not exclude
potential overlap
with the
Bermuda proceedings
against Credit Suisse Life (Bermuda) Ltd., described below, and the court ordered the parties to ensure there is no
double recovery
in relation
to this
award and
the Bermuda
proceedings. On
appeal from
this judgment,
in
July
2024, the court ordered changes
to the damages calculation and directed
the parties to agree
on adjustments to
the award. The court ordered
a revised award of USD 461m,
including interest and costs,
in October 2024 and the
Singapore proceeding has concluded.
In Bermuda, in the civil
lawsuit brought against Credit Suisse Life
(Bermuda) Ltd., the Supreme Court of Bermuda
issued a judgment awarding damages of USD 607.35m to the plaintiff. Credit Suisse Life (Bermuda)
Ltd. appealed
the
decision.
In
June
2023,
the
Bermuda
Court
of
Appeal
confirmed
the
award
and
the
Supreme
Court
of
Bermuda’s
finding
that
Credit
Suisse
Life
(Bermuda)
Ltd.
breached
its
contractual
and
fiduciary
duties,
but
overturned the finding that Credit Suisse Life (Bermuda) Ltd. made fraudulent misrepresentations. In March 2024,
the Bermuda Court of Appeal granted Credit
Suisse Life (Bermuda) Ltd.’s motion for
leave to appeal the judgment
to the
Judicial Committee
of the
Privy
Council and
the notice
of such
appeal was
filed.
The
Bermuda Court
of
Appeal also ordered that the current stay continue pending determination of the
appeal on the condition that the
damages awarded, plus interest calculated at
the Bermuda statutory rate of 3.5%,
remain in the escrow account.
In
Switzerland,
civil
lawsuits
have
been
commenced
against
Credit
Suisse AG
in
the
Court
of
First
Instance
of
Geneva, with statements of claim served in March
2023 and March 2024.
- Mozambique matter
Credit
Suisse
was
subject to
investigations by
regulatory
and
enforcement
authorities, as
well as
civil
litigation,
regarding certain Credit
Suisse entities’
arrangement of
loan financing
to Mozambique
state enterprises,
Proindicus
S.A. and Empresa Moçambicana de Atum
S.A. (EMATUM), a
distribution to private investors of loan
participation
notes (LPN) related
to the EMATUM
financing in September
2013, and certain
Credit Suisse
entities’ subsequent
role in arranging the exchange
of those LPNs for
Eurobonds issued by the Republic
of Mozambique. In 2019,
three
former Credit Suisse employees pleaded guilty in the EDNY to accepting improper personal benefits in connection
with financing transactions carried out with
two Mozambique state enterprises.
In
October 2021,
Credit
Suisse reached
settlements with
the DOJ,
the US
Securities and
Exchange Commission
(SEC), the
UK Financial
Conduct Authority
(FCA) and
FINMA to
resolve inquiries
by these
agencies, including
findings
that Credit
Suisse failed
to appropriately
organize and
conduct its
business with
due skill
and care,
and manage
risks. Credit
Suisse Group
AG entered
into a
three-year Deferred
Prosecution Agreement
(DPA) with
the DOJ
in
connection with the criminal information
charging Credit Suisse Group AG
with conspiracy to commit wire
fraud
and Credit
Suisse Securities
(Europe) Limited
(CSSEL) entered
into a
Plea Agreement
and pleaded
guilty to
one count
of conspiracy to
violate the US
federal wire fraud
statute. Under the
terms of the
DPA, UBS Group
AG (as successor
to Credit Suisse Group
AG) continued compliance enhancement and remediation efforts agreed
by Credit Suisse,
and undertake additional measures as
outlined in the DPA.
In January 2025, as
permitted under the terms of
the
DPA, the DOJ elected to extend the term of
the DPA by one year.
UBS AG first quarter 2025 report |
Consolidated financial statements | Notes to
the UBS AG interim consolidated financial
statements (unaudited)
73
Note 16
Provisions and contingent liabilities
(continued)
- ETN-related litigation
XIV litigation
: Since March 2018, three class action complaints
were filed in the SDNY on behalf
of a putative class
of purchasers
of VelocityShares
Daily Inverse
VIX Short-Term
Exchange Traded
Notes linked
to the
S&P 500
VIX
Short-Term
Futures
Index
(XIV
ETNs).
The
complaints have
been
consolidated and
asserts
claims
against
Credit
Suisse
for
violations
of
various
anti-fraud
and
anti-manipulation provisions
of
US
securities
laws
arising
from
a
decline in the value of XIV ETNs in February 2018. On appeal from an order of the SDNY dismissing all claims, the
Second Circuit
issued an
order that
reinstated a
portion of
the claims.
In decisions
in March
2023 and
February
2025,
the
court
granted
class
certification
for
two
of
the
three
classes
proposed
by
plaintiffs
and
denied class
certification of the third proposed class.
- Bulgarian former clients matter
In December 2020, the Swiss Office
of the Attorney General brought charges against Credit
Suisse AG and other
parties concerning the diligence and controls applied to a historical relationship with Bulgarian former clients
who
are
alleged to
have laundered
funds through
Credit
Suisse AG
accounts. In
June 2022,
following a
trial, Credit
Suisse AG was convicted in the Swiss Federal Criminal Court of certain historical organizational
inadequacies in its
anti-money-laundering framework
and ordered to pay a
fine of CHF 2m. In
addition, the court seized
certain client
assets in the amount of approximately
CHF 12m and ordered Credit Suisse AG to pay
a compensatory claim in the
amount of approximately CHF 19m.
Credit Suisse AG appealed
the decision to the
Swiss Federal Court of
Appeals.
Following the
merger of
UBS AG
and Credit
Suisse AG,
UBS AG
confirmed the
appeal. In
November 2024,
the
court issued a judgment that
acquitted UBS AG and annulled
the fine and compensatory
claim ordered by the first
instance court.
In February
2025, the
court affirmed
the acquittal
of UBS
AG, and
the Office
of the
Attorney
General
has appealed
the judgment
to the
Swiss Federal
Supreme Court.
UBS has
also appealed
limited to
the issue
whether
a successor entity by merger can be criminally
liable for acts of the predecessor entity.
- Archegos
Credit
Suisse
and
UBS
have
received
requests
for
documents
and
information
in
connection
with
inquiries,
investigations
and/or
actions
relating
to
their
relationships
with
Archegos
Capital
Management
(Archegos),
including from FINMA
(assisted by a
third party
appointed by FINMA),
the DOJ, the
SEC, the US
Federal Reserve,
the
US
Commodity
Futures
Trading
Commission
(CFTC),
the
US
Senate
Banking
Committee,
the
Prudential
Regulation Authority (PRA),
the FCA,
the WEKO,
the Hong
Kong Competition Commission
and other
regulatory
and governmental agencies. UBS is cooperating with the authorities in these matters. In July 2023, CSI and CSSEL
entered into a settlement agreement
with the PRA providing for
the resolution of the PRA’s
investigation. Also in
July 2023, FINMA
issued a decree
ordering remedial measures
and the Federal
Reserve Board issued
an Order
to
Cease and Desist. Under the terms of the order,
Credit Suisse paid a civil money penalty and agreed to undertake
certain remedial
measures relating
to counterparty
credit risk
management, liquidity
risk management
and non-
financial risk management, as well as enhancements to board oversight and governance. UBS Group, as
the legal
successor to Credit Suisse Group AG,
is a party to the FINMA
decree and Federal Reserve Board
Cease and Desist
Order.
Civil
actions
relating
to
Credit
Suisse’s
relationship with
Archegos
have
been
filed
against
Credit
Suisse
and/or
certain officers and directors, including claims
for breaches of fiduciary duties.
Note 17
Events after the reporting period
On 5 May 2025, Credit
Suisse Services AG entered
into an agreement with
the U.S. Department of
Justice to settle
a long-running tax-related
investigation into Credit
Suisse's implementation
of its 2014
plea agreement, relating
to
its
legacy
cross-border
business
with
US
taxpayers
booked
in
Switzerland,
which
began
before
UBS
acquired
Credit Suisse. Credit
Suisse Services
AG pleaded
guilty to
one count
of conspiracy
to aid
and assist
in the
preparation
of
false
income
tax
returns
and
will
pay
an
aggregate
of
USD 371.9m.
Credit
Suisse
Services
AG
also
contemporaneously
entered
into
a
non-prosecution
agreement
regarding
US
taxpayers
booked
in
the
legacy
Credit Suisse Singapore booking
center and will
pay an
aggregate of
USD 138.7m. UBS
AG has not
made any
post-
balance sheet adjustment as the expected
impact is not material.
UBS AG first quarter 2025 report |
Consolidated financial statements | Comparison between
UBS AG consolidated and UBS Group AG consolidated
74
Comparison between UBS AG consolidated and
UBS Group AG consolidated
The table below provides
a comparison of selected
financial and capital information of
UBS AG consolidated and
of UBS Group AG consolidated.
UBS AG and
UBS Group AG both
prepare consolidated
financial statements
in accordance
with IFRS
Accounting
Standards. UBS Group AG has applied acquisition accounting as defined by IFRS 3,
Business Combinations
, to the
acquisition of the Credit Suisse Group in 2023. The merger of UBS AG and Credit Suisse AG on 31 May 2024 has
been
accounted
for
as
a
business
combination
under
common
control,
as
defined
in
IFRS 3,
using
the
historic
carrying values
of the
assets and
liabilities of
Credit Suisse AG
as at
the date
of the
transaction (31 May
2024),
determined
under
IFRS
Accounting
Standards.
Therefore,
differences
exist
between
the
accounting
treatments
applied
at
the
UBS Group AG
and
UBS AG
consolidated
levels.
There
are
also
certain
scope
and
presentation
differences, as noted below.
›
Refer to “Note 2 Accounting for the merger of UBS AG and Credit Suisse AG” 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 the accounting for the merger of UBS AG and Credit Suisse AG
Assets,
liabilities,
revenues,
operating
expenses
and
tax
expenses
/
(benefits)
relating
to
UBS
Group AG and
its
directly held
subsidiaries,
including UBS
Business Solutions
AG, are
reflected in
the consolidated
financial statements
of UBS Group AG but
not in those of
UBS AG. UBS AG’s
assets, liabilities, revenues
and operating expenses
related
to transactions
with UBS
Group AG and its
directly held
subsidiaries, including
UBS Business
Solutions AG and
other
shared services subsidiaries,
are not subject to
elimination in the
UBS AG consolidated financial
statements, but are
eliminated in the UBS Group AG consolidated financial
statements.
In the
first quarter
of 2025,
UBS AG consolidated
recognized a
net profit
of USD 1,035m,
while UBS Group
AG
consolidated recognized
a net profit
of USD 1,702m.
The USD 667m
difference was
mainly due to
certain purchase
price allocation
(PPA) effects
recognized at
the UBS Group
AG level
upon the
acquisition of
the Credit
Suisse Group.
These resulted
in net
accretion income
at the
UBS Group AG
level, net
of tax
effects, whereas
UBS AG has
not
applied acquisition
accounting and
does not have
the PPA effects
or the corresponding
net income. The
PPA effects
also resulted in lower
expenses for litigation, regulatory and
similar matters for UBS
Group AG and
a higher gain
from the sale of
Select Portfolio Servicing,
the US mortgage servicing
business of Credit
Suisse. Other differences
in
net profit
mainly arise
as UBS
Business Solutions AG
and other
shared services
subsidiaries of
UBS Group AG charge
other legal entities within the UBS AG consolidation
scope a markup on costs incurred for
services provided.
The equity
of UBS Group
AG consolidated
was USD 9.5bn
lower than
the equity
of UBS AG
consolidated as
of
31 March 2025.
This difference
was mainly
due to
consolidation scope differences
of USD 4.8bn,
as well
as PPA
effects of USD 4.5bn recognized at
the UBS Group AG level
upon the acquisition of the
Credit Suisse Group that
did not impact UBS AG
consolidated, primarily related
to loans and loan
commitments measured at
amortized cost
and contingent liabilities recognized under IFRS
3 for litigation.
The going concern capital of UBS Group AG consolidated
was USD 1.2bn lower than the going concern capital
of
UBS AG consolidated as of
31 March 2025, reflecting the
common equity tier 1
(CET1) capital of
UBS Group AG
being lower
by USD 1.6bn,
partly offset
by its
going concern
loss-absorbing additional
tier 1 (AT1)
capital being
USD 0.4bn higher.
The USD 1.6bn
lower CET1
capital of
UBS Group AG
consolidated was
primarily due
to UBS Group
AG consolidated
IFRS equity being USD 9.5bn lower, compensation-related
regulatory capital accruals at the
UBS Group AG level of
USD 2.7bn, a
capital reserve
for
expected future
share repurchases
of
USD 2.5bn and
a
USD 0.9bn effect
from
eligible deferred tax assets
on temporary differences,
largely offset by a
USD 13.9bn difference in
dividend accruals
between UBS Group AG and UBS AG.
UBS AG first quarter 2025 report |
Consolidated financial statements | Comparison between
UBS AG consolidated and UBS Group AG consolidated
75
Comparison between UBS AG consolidated and UBS Group AG consolidated
As of or for the quarter ended 31.3.25
As of or for the quarter ended 31.12.24
USD m, except where indicated
UBS AG
consolidated
UBS Group AG
consolidated
Difference
(absolute)
UBS AG
consolidated
UBS Group AG
consolidated
Difference
(absolute)
Income statement
Total revenues
12,163
12,557
(393)
11,317
11,635
(318)
Credit loss expense / (release)
124
100
24
241
229
12
Operating expenses
10,701
10,324
377
11,017
10,359
658
Operating profit / (loss) before tax
1,339
2,132
(793)
59
1,047
(989)
Net profit / (loss)
1,035
1,702
(667)
(254)
779
(1,034)
Balance sheet
Total assets
1,547,489
1,543,363
4,126
1,568,060
1,565,028
3,033
Total liabilities
1,450,367
1,455,773
(5,406)
1,473,394
1,479,454
(6,060)
Total equity
97,123
87,590
9,532
94,666
85,574
9,092
Capital, liquidity and funding information
Common equity tier 1 capital
70,756
69,152
1,604
73,792
71,367
2,425
Going concern capital
89,081
87,837
1,244
89,623
87,739
1,884
Risk-weighted assets
481,539
483,276
(1,737)
495,110
498,538
(3,429)
Common equity tier 1 capital ratio (%)
14.7
14.3
0.4
14.9
14.3
0.6
Going concern capital ratio (%)
18.5
18.2
0.3
18.1
17.6
0.5
Total loss-absorbing capacity ratio (%)
38.0
38.7
(0.8)
36.7
37.2
(0.5)
Leverage ratio denominator
1,565,845
1,561,583
4,261
1,523,277
1,519,477
3,799
Common equity tier 1 leverage ratio (%)
4.5
4.4
0.1
4.8
4.7
0.1
Liquidity coverage ratio (%)
1
180.3
181.0
(0.7)
186.1
188.4
(2.3)
Net stable funding ratio (%)
122.8
124.2
(1.4)
124.1
125.5
(1.4)
1 The disclosed ratios represent quarterly
averages for the quarters presented and are
calculated based on an average of
62 data points in the first quarter of
2025 and 64 data points in the fourth
quarter of 2024.
Refer to the “Liquidity and funding management” section of this report for more information.
UBS AG first quarter 2025 report |
Appendix
76
Appendix
Alternative performance measures
An alternative performance measure (an APM) is a financial measure of historical or
future financial performance,
financial position
or cash
flows other
than a
financial measure
defined or
specified in
the applicable
recognized
accounting standards or in
other applicable regulations. A
number of APMs
are reported in
the discussion of
the
financial and operating performance of
the external reports (annual, quarterly
and other reports). APMs
are used
to provide
a more
complete
picture of
operating
performance and
to reflect
management’s
view of
the fundamental
drivers
of
the
business
results. A
definition
of
each
APM,
the
method
used
to
calculate
it
and
the
information
content are presented in alphabetical order
in the table below. These APMs may
qualify as non-GAAP measures as
defined by US Securities and Exchange Commission
(SEC) regulations.
APM label
Calculation
Information content
Cost / income ratio (%)
Calculated as operating expenses divided by
total
revenues.
This measure provides information about the
efficiency of the business by comparing operating
expenses with total revenues.
Cost of credit risk
1
(bps)
Calculated as total credit loss expense / (release)
(annualized for reporting periods shorter than
12 months) divided by the average balance
of lending
assets for the reporting period, expressed in basis
points. Lending assets include the gross amounts
of
Amounts due from banks and Loans and advances
to
customers.
This measure provides information about the total
credit loss expense / (release) incurred in relation to
the average balance of gross lending assets for the
period.
Credit-impaired lending assets as a
percentage of total lending assets,
gross (%)
Calculated as credit-impaired lending assets divided
by total lending assets. Lending assets includes
the
gross amounts of Amounts due from banks and
Loans and advances to customers. Credit-impaired
lending assets refers to the sum of stage 3 and
purchased credit-impaired positions.
This measure provides information about the
proportion of credit-impaired lending assets in the
overall portfolio of gross lending assets.
Fee-generating assets (USD)
– Global Wealth Management
Calculated as the sum of discretionary and
nondiscretionary wealth management portfolios
(mandate volume) and assets where generated
revenues are predominantly of a recurring nature, i.e.
mainly investment, mutual, hedge and private-market
funds where we have a distribution agreement,
including client commitments into closed-ended
private-market funds from the date that recurring
fees are charged. Assets related to our Global
Financial Intermediaries business are excluded, as
are
assets of sanctioned clients.
This measure provides information about the volume
of invested assets that create a revenue stream,
whether as a result of the nature of the contractual
relationship with clients or through the fee structure
of the asset. An increase in the level of fee-generating
assets results in an increase in the associated revenue
stream. Assets of sanctioned clients are excluded from
fee-generating assets.
Gross margin on invested assets
1
(bps)
– Asset Management
Calculated as total revenues (annualized for reporting
periods shorter than 12 months) divided by
average
invested assets.
This measure provides information about the total
revenues of the business in relation to invested assets.
Impaired loan portfolio as a percentage
of total loan portfolio, gross (%)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as impaired loan portfolio divided by
total
gross loan portfolio.
This measure provides information about the
proportion of impaired loan portfolio in the total gross
loan portfolio.
Integration-related expenses (USD)
Generally include costs of internal staff
and
contractors substantially dedicated to integration
activities, retention awards, redundancy costs,
incremental expenses from the shortening of useful
lives of property, equipment and software, and
impairment charges relating to these assets.
Classification as integration-related expenses does
not
affect the timing of recognition and measurement of
those expenses or the presentation thereof in the
income statement. Integration-related expenses
incurred by Credit Suisse also included expenses
associated with restructuring programs that existed
prior to the acquisition.
This measure provides information about expenses
that are temporary, incremental and directly related to
the integration of Credit Suisse into UBS.
UBS AG first quarter 2025 report |
Appendix
77
APM label
Calculation
Information content
Invested assets (USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management
Calculated as the sum of managed fund
assets,
managed institutional assets, discretionary and
advisory wealth management portfolios, fiduciary
deposits, time deposits, savings accounts,
and wealth
management securities or brokerage accounts.
This measure provides information about the volume
of client assets managed by or deposited with
UBS for
investment purposes.
Net interest margin
1
(bps)
– Personal & Corporate Banking
Calculated as net interest income (annualized for
reporting periods shorter than 12 months) divided by
average loans.
This measure provides information about the
profitability of the business by calculating the
difference between the price charged for lending and
the cost of funding, relative to loan value.
Net new assets (USD)
– Global Wealth Management
Calculated as the net amount of inflows and
outflows
of invested assets (as defined in UBS policy) recorded
during a specific period, plus interest and dividends.
Excluded from the calculation are movements due to
market performance, foreign exchange translation,
fees, and the effects on invested assets of strategic
decisions by UBS to exit markets or services.
This measure provides information about the
development of invested assets during a
specific
period as a result of net new asset flows, plus the
effect of interest and dividends.
Net new assets growth rate (%)
– Global Wealth Management
Calculated as the net amount of inflows and
outflows
of invested assets (as defined in UBS policy) recorded
during a specific period (annualized for reporting
periods shorter than 12 months), plus
interest and
dividends, divided by total invested assets
at the
beginning of the period.
This measure provides information about the growth
of invested assets during a specific period
as a result
of net new asset flows.
Net new deposits (USD)
– Global Wealth Management
Calculated as the net amount of inflows and
outflows
of deposits recorded during a specific period. Deposits
include customer deposits and customer brokerage
payables. Excluded from the calculation are
movements due to fair value measurement, foreign
exchange translation, dividends, interest and fees,
as
well as the effects on customer deposits of strategic
decisions by UBS to exit markets or services.
This measure provides information about the
development of deposits during a specific period
as a
result of net new deposit flows.
Net new fee-generating assets (USD)
– Global Wealth Management
Calculated as the net amount of fee-generating
asset
inflows and outflows, including dividend
and interest
inflows into mandates and outflows from mandate
fees paid by clients during a specific period.
Excluded
from the calculation are the effects on fee-generating
assets of strategic decisions by UBS to exit
markets or
services.
This measure provides information about the
development of fee-generating assets during
a
specific period as a result of net flows, excluding
movements due to market performance and
foreign
exchange translation, as well as the effects on fee-
generating assets of strategic decisions by UBS
to exit
markets or services.
Net new loans (USD)
– Global Wealth Management
Calculated as the net amount of originations,
drawdowns and repayments of loans recorded during
a specific period. Loans include loans and
advances to
customers and customer brokerage receivables.
Excluded from the calculation are allowances,
movements due to fair value measurement, foreign
exchange translation, interest and fees, as well
as the
effects on loans and advances to customers of
strategic decisions by UBS to exit markets or
services.
This measure provides information about the
development of loans during a specific period
as a
result of net new loan flows.
Net new money (USD)
– Global Wealth Management,
Asset Management
Calculated as the net amount of inflows and
outflows
of invested assets (as defined in UBS policy) recorded
during a specific period. Excluded from the calculation
are movements due to market performance, foreign
exchange translation, dividends, interest and fees,
as
well as the effects on invested assets of strategic
decisions by UBS to exit markets
or services. Net new
money is not measured for Personal & Corporate
Banking.
This measure provides information about the
development of invested assets during a
specific
period as a result of net new money flows.
Net profit growth (%)
Calculated as the change in net profit attributable
to
shareholders from continuing operations between
current and comparison periods divided by net profit
attributable to shareholders from continuing
operations of the comparison period.
This measure provides information about profit
growth since the comparison period.
Operating expenses (underlying)
(USD)
Calculated by adjusting operating expenses
as
reported in accordance with IFRS Accounting
Standards for items that management believes
are
not representative of the underlying performance of
the businesses.
This measure provides information about the amount
of operating expenses, while excluding items
that
management believes are not representative of the
underlying performance of the businesses.
UBS AG first quarter 2025 report |
Appendix
78
APM label
Calculation
Information content
Operating profit / (loss) before tax
(underlying) (USD)
Calculated by adjusting operating profit / (loss) before
tax as reported in accordance with IFRS Accounting
Standards for items that management believes
are
not representative of the underlying performance of
the businesses.
This measure provides information about the amount
of operating profit / (loss) before tax, while excluding
items that management believes are not
representative of the underlying performance of the
businesses.
Pre-tax profit growth (%)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management,
the Investment Bank
Calculated as the change in net profit before tax
attributable to shareholders from continuing
operations between current and comparison periods
divided by net profit before tax attributable to
shareholders from continuing operations of the
comparison period.
This measure provides information about pre-tax
profit growth since the comparison period.
Pre-tax profit growth (underlying) (%)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management,
the Investment Bank
Calculated as the change in net profit before tax
attributable to shareholders from continuing
operations between current and comparison periods
divided by net profit before tax attributable to
shareholders from continuing operations of the
comparison period. Net profit before tax attributable
to shareholders from continuing operations excludes
items that management believes are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about pre-tax
profit growth since the comparison period, while
excluding items that management believes
are not
representative of the underlying performance of the
businesses.
Recurring net fee income
(USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as the total of fees for services provided
on
an ongoing basis, such as portfolio management
fees,
asset-based investment fund fees and custody
fees,
which are generated on client assets, and
administrative fees for accounts.
This measure provides information about the amount
of recurring net fee income.
Return on attributed equity
1
(%)
Calculated as business division operating profit before
tax (annualized for reporting periods shorter than
12 months) divided by average attributed
equity.
This measure provides information about the
profitability of the business divisions in relation to
attributed equity.
Return on common equity tier 1
capital
1
(%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average common equity
tier 1
capital.
This measure provides information about the
profitability of the business in relation to common
equity tier 1 capital.
Return on equity
1
(%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average equity attributable
to
shareholders.
This measure provides information about the
profitability of the business in relation to equity.
Return on leverage ratio denominator,
gross
1
(%)
Calculated as total revenues (annualized for reporting
periods shorter than 12 months) divided by
average
leverage ratio denominator.
This measure provides information about the revenues
of the business in relation to the leverage ratio
denominator.
Return on tangible equity
1
(%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average equity attributable
to
shareholders less average goodwill and intangible
assets.
This measure provides information about the
profitability of the business in relation to tangible
equity.
Tangible book value per share
(USD)
Calculated as equity attributable to shareholders less
goodwill and intangible assets divided by the
number
of shares outstanding.
This measure provides information about tangible net
assets on a per-share basis.
Total book value per share
(USD)
Calculated as equity attributable to shareholders
divided by the number of shares outstanding.
This measure provides information about net assets
on a per-share basis.
Total revenues (underlying)
(USD)
Calculated by adjusting total revenues as reported in
accordance with IFRS
Accounting Standards for items
that management believes are not representative of
the underlying performance of the businesses.
This measure provides information about the amount
of total revenues, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Transaction-based income
(USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as the total of the non-recurring portion
of
net fee and commission income, mainly composed
of
brokerage and transaction-based investment fund
fees, and credit card fees, as well as fees for payment
and foreign-exchange transactions, together with
other net income from financial instruments
measured at fair value through profit or loss.
This measure provides information about the amount
of the non-recurring portion of net fee and
commission income, together with other net
income
from financial instruments measured at fair value
through profit or loss.
Underlying cost / income ratio (%)
Calculated as underlying operating expenses
(as
defined above) divided by underlying total
revenues
(as defined above).
This measure provides information about the
efficiency of the business by comparing operating
expenses with total revenues, while excluding items
that management believes are not representative of
the underlying performance of the businesses.
UBS AG first quarter 2025 report |
Appendix
79
APM label
Calculation
Information content
Underlying net profit growth (%)
Calculated as the change in net profit attributable
to
shareholders from continuing operations between
current and comparison periods divided by net profit
attributable to shareholders from continuing
operations of the comparison period.
Net profit
attributable to shareholders from continuing
operations excludes items that management
believes
are not representative of the underlying performance
of the businesses and also excludes related tax
impact.
This measure provides information about profit
growth since the comparison period, while excluding
items that management believes are not
representative of the underlying performance of the
businesses.
Underlying return on attributed equity
1
(%)
Calculated as underlying business division
operating
profit before tax (annualized for reporting periods
shorter than 12 months) (as defined above)
divided by
average attributed equity.
This measure provides information about the
profitability of the business divisions in relation to
attributed equity, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Underlying return on common equity
tier 1 capital
1
(%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average common equity
tier 1
capital. Net profit attributable to shareholders
excludes items that management believes
are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about the
profitability of the business in relation to common
equity tier 1 capital, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Underlying return on tangible equity
1
(%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average equity attributable
to
shareholders less average goodwill and intangible
assets. Net profit attributable to shareholders excludes
items that management believes are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about the
profitability of the business in relation to tangible
equity, while excluding items that management
believes are not representative of the underlying
performance of the businesses.
1
Profit or loss information for each of the
first quarter of 2025 and the
fourth quarter of 2024 is based
entirely on consolidated data following the merger
of UBS AG and Credit Suisse AG
and for the purpose of the
calculation of return measures has
been annualized by multiplying such
by four.
Profit or loss information for
the first quarter of 2024
includes pre-merger UBS AG data
only and for the purpose
of the calculation of
return measures has been annualized by multiplying such by four.
This is a general list of the APMs used in our
financial reporting. Not all of the APMs
listed above may appear in
this particular report.
UBS AG first quarter 2025 report |
Appendix
80
Abbreviations frequently used in our financial reports
A
ABS
asset-backed securities
AG
Aktiengesellschaft
AGM
Annual General Meeting of
shareholders
AI
artificial intelligence
A-IRB
advanced internal ratings-
based
ALCO
Asset and Liability
Committee
AMA
advanced measurement
approach
AML
anti-money laundering
AoA
Articles of Association
APM
alternative performance
measure
ARR
alternative reference rate
ARS
auction rate securities
ASF
available stable funding
AT1
additional tier 1
AuM
assets under management
B
BCBS
Basel Committee on
Banking Supervision
BIS
Bank for International
Settlements
BoD
Board of Directors
C
CAO
Capital Adequacy
Ordinance
CCAR
Comprehensive Capital
Analysis and Review
CCF
credit conversion factor
CCP
central counterparty
CCR
counterparty credit risk
CCRC
Corporate Culture and
Responsibility Committee
CDS
credit default swap
CEO
Chief Executive Officer
CET1
common equity tier 1
CFO
Chief Financial Officer
CGU
cash-generating unit
CHF
Swiss franc
CIO
Chief Investment Office
C&ORC
Compliance & Operational
Risk Control
CRM
credit risk mitigation
CRO
Chief Risk Officer
CST
combined stress test
CUSIP
Committee on Uniform
Security Identification
Procedures
CVA
credit valuation adjustment
D
DBO
defined benefit obligation
DCCP
Deferred Contingent
Capital Plan
DFAST
Dodd–Frank Act Stress Test
DM
discount margin
DOJ
US Department of Justice
DTA
deferred tax asset
DVA
debit valuation adjustment
E
EAD
exposure at default
EB
Executive Board
EC
European Commission
ECB
European Central Bank
ECL
expected credit loss
EGM
Extraordinary General
Meeting of shareholders
EIR
effective interest rate
EL
expected loss
EMEA
Europe, Middle East and
Africa
EOP
Equity Ownership Plan
EPS
earnings per share
ESG
environmental, social and
governance
ETD
exchange-traded derivatives
ETF
exchange-traded fund
EU
European Union
EUR
euro
EURIBOR
Euro Interbank Offered Rate
EVE
economic value of equity
EY
Ernst & Young Ltd
F
FCA
UK Financial Conduct
Authority
FDIC
Federal Deposit Insurance
Corporation
FINMA
Swiss Financial Market
Supervisory Authority
FMIA
Swiss Financial Market
Infrastructure Act
FRTB
Fundamental Review of the
Trading Book
FSB
Financial Stability Board
FTA
Swiss Federal Tax
Administration
FVA
funding valuation
adjustment
FVOCI
fair value through other
comprehensive income
FVTPL
fair value through profit or
loss
FX
foreign exchange
G
GAAP
generally accepted
accounting principles
GBP
pound sterling
GCRG
Group Compliance,
Regulatory and Governance
GDP
gross domestic product
GEB
Group Executive Board
GHG
greenhouse gas
GIA
Group Internal Audit
GRI
Global Reporting Initiative
G-SIB
global systemically
important bank
H
HQLA
high-quality liquid assets
I
IA
Internal Audit
IAS
International Accounting
Standards
IASB
International Accounting
Standards Board
IBOR
interbank offered rate
IFRIC
International Financial
Reporting Interpretations
Committee
IFRS
accounting standards
Accounting
issued by the IASB
Standards
IRB
internal ratings-based
IRRBB
interest rate risk in the
banking book
ISDA
International Swaps and
Derivatives Association
ISIN
International Securities
Identification Number
UBS AG first quarter 2025 report |
Appendix
81
Abbreviations frequently used in our financial reports (continued)
K
KRT
Key Risk Taker
L
LAS
liquidity-adjusted stress
LCR
liquidity coverage ratio
LGD
loss given default
LIBOR
London Interbank Offered
Rate
LLC
limited liability company
LoD
lines of defense
LRD
leverage ratio denominator
LTIP
Long-Term
Incentive Plan
LTV
loan-to-value
M
M&A
mergers and acquisitions
MRT
Material Risk Taker
N
NII
net interest income
NSFR
net stable funding ratio
NYSE
New York Stock Exchange
O
OCA
own credit adjustment
OCI
other comprehensive
income
OECD
Organisation for Economic
Co-operation and
Development
OTC
over-the-counter
P
PCI
purchased credit impaired
PD
probability of default
PIT
point in time
PPA
purchase price allocation
Q
QCCP
qualifying central
counterparty
R
RBC
risk-based capital
RbM
risk-based monitoring
REIT
real estate investment trust
RMBS
residential mortgage-
backed securities
RniV
risks not in VaR
RoCET1
return on CET1 capital
RoU
right-of-use
rTSR
relative total shareholder
return
RWA
risk-weighted assets
S
SA
standardized approach or
société anonyme
SA-CCR
standardized approach for
counterparty credit risk
SAR
Special Administrative
Region of the People’s
Republic of China
SDG
Sustainable Development
Goal
SEC
US Securities and Exchange
Commission
SFT
securities financing
transaction
SIBOR
Singapore Interbank
Offered Rate
SICR
significant increase in credit
risk
SIX
SIX Swiss Exchange
SME
small and medium-sized
entities
SMF
Senior Management
Function
SNB
Swiss National Bank
SOR
Singapore Swap Offer Rate
SPPI
solely payments of principal
and interest
SRB
systemically relevant bank
SVaR
stressed value-at-risk
T
TBTF
too big to fail
TCFD
Task
Force on Climate-
related Financial Disclosures
TIBOR
Tokyo
Interbank Offered
Rate
TLAC
total loss-absorbing capacity
TTC
through the cycle
U
USD
US dollar
V
VaR
value-at-risk
VAT
value added tax
This is a
general list
of the
abbreviations frequently
used in
our financial
reporting. Not
all of the
listed abbreviations
may appear in this particular report.
UBS AG first quarter 2025 report |
Appendix
82
Information sources
Reporting publications
Annual publications
UBS
AG
Annual
Report
:
Published
in
English,
this
report
provides
descriptions
of:
the
performance
of
UBS AG
(consolidated);
the
strategy
and
performance
of
the
business
divisions
and
Group
functions;
risk,
treasury
and
capital management; corporate governance;
and financial information, including
the financial statements.
Compensation
Report
:
This
report
discusses
the
compensation
framework
and
provides
information
about
compensation for
the Board
of Directors
and the
Group Executive
Board members.
It is
available in
English and
German (
“Vergütungsbericht
”) and represents a component of the UBS
Group Annual Report.
Sustainability Report
: Published
in English,
the Sustainability Report
provides disclosures on
environmental, social
and governance topics related to the UBS Group.
It also provides certain disclosures related to diversity,
equity and
inclusion.
Quarterly publications
Quarterly financial report
: This report provides an
update on performance and strategy (where
applicable) for the
respective quarter. It is available in English.
The annual
and quarterly
publications
are available
in .pdf and
online formats
at
ubs.com/investors
, under
“Financial
information”.
Printed copies, in any language, of the aforementioned
annual publications are no longer provided.
Other information
Website
The “Investor
Relations” website
at
ubs.com/investors
provides the
following information
about UBS:
results-related
news
releases;
financial
information,
including
results-related
filings
with
the
US
Securities
and
Exchange
Commission
(the
SEC);
information
for
shareholders,
including
UBS
dividend
and
share
repurchase
program
information, and for bondholders, including rating agencies reports; the corporate calendar; and presentations by
management for investors and financial analysts. Information is available online in English, with some information
also available in German.
Results presentations
Quarterly
results
presentations
are
webcast
live.
Recordings
of
most
presentations
can
be
downloaded
from
ubs.com/presentations
.
Messaging service
alerts
to
news
about
UBS
can
be
subscribed
for
under
“UBS
News
Alert”
at
ubs.com/global/en/investor-
relations/contact/investor-services.html
. Messages are sent in English, German, French or Italian, with an option to
select theme preferences for such alerts.
Form 20-F and other submissions to the US
Securities and Exchange Commission
UBS files periodic
reports with
and submits
other information
to the
SEC. Principal
among these
filings is the
annual
report on Form 20-F,
filed pursuant to
the US Securities
Exchange Act of 1934.
The filing of
Form 20-F is structured
as a wraparound document. Most
sections of the filing can be satisfied
by referring to the UBS AG Annual
Report.
However, there
is a
small amount
of additional
information in
Form 20-F
that is
not presented
elsewhere and
is
particularly
targeted
at
readers
in
the
US.
Readers
are
encouraged
to
refer
to
this
additional
disclosure.
Any
document that is filed with
the SEC is available on the
SEC’s website:
sec.gov
. Refer to
ubs.com/investors
for more
information.
UBS AG first quarter 2025 report |
Appendix
83
Cautionary statement
regarding forward-looking statements
|
This report contains
statements that
constitute “forward-looking
statements”, including
but
not limited to management’s
outlook for UBS’s financial performance,
statements relating to the
anticipated effect of transactions
and strategic initiatives on
UBS’s
business and
future
development and
goals
or
intentions to
achieve climate,
sustainability and
other social
objectives.
While
these
forward-looking
statements represent
UBS’s judgments,
expectations and
objectives concerning the
matters described,
a number
of risks,
uncertainties and
other important
factors could cause actual
developments and results to
differ materially from UBS’s expectations.
In particular, the global economy may suffer
significant adverse
effects from increasing political tensions between world
powers, changes to international
trade policies, including those related to
tariffs and trade barriers, and
ongoing conflicts
in the Middle
East, as well
as the continuing
Russia–Ukraine war. UBS’s
acquisition of the
Credit Suisse
Group has materially
changed its
outlook
and strategic direction and introduced
new operational challenges. The integration of the
Credit Suisse entities into the
UBS structure is expected
to continue
through 2026 and presents significant
operational and execution risk, including the
risks that UBS may be
unable to achieve the cost
reductions and business
benefits contemplated by
the transaction, that
it may incur
higher costs to
execute the integration
of Credit Suisse
and that the
acquired business may
have
greater risks
or liabilities
than expected.
Following the
failure of
Credit Suisse,
Switzerland is
considering significant
changes to
its capital,
resolution and
regulatory
regime, which,
if proposed
and adopted,
may significantly
increase our
capital requirements
or impose
other costs
on UBS.
These factors
create greater
uncertainty
about forward-looking statements. Other factors that may affect UBS’s
performance and ability to achieve its plans, outlook and
other objectives also include,
but are not limited to: (i) the degree to which UBS
is successful in the execution of its
strategic plans, including its cost reduction
and efficiency initiatives and its
ability to manage its levels of risk-weighted assets (RWA) and leverage ratio denominator (LRD), liquidity coverage ratio and other financial resources, including
changes in
RWA assets
and liabilities
arising from
higher market
volatility and
the size
of the
combined Group;
(ii) the degree
to which
UBS is
successful in
implementing changes to
its businesses to
meet changing market,
regulatory and
other conditions; (iii) inflation
and interest
rate volatility
in major
markets;
(iv) developments in the macroeconomic climate
and in the markets in which UBS operates
or to which it is exposed, including
movements in securities prices or
liquidity, credit
spreads, currency exchange rates,
residential and commercial real
estate markets, general economic conditions, and
changes to national trade
policies on the financial position or creditworthiness of
UBS’s clients and counterparties, as well as on
client sentiment and levels of activity; (v) changes in the
availability of capital and funding, including any adverse changes in UBS’s credit spreads and credit ratings of UBS, as well as availability and cost of funding to
meet requirements for debt
eligible for total loss-absorbing capacity
(TLAC); (vi) changes in central bank
policies or the implementation of
financial legislation
and regulation in Switzerland, the US, the UK, the EU and other
financial centers that have imposed, or resulted in, or may do so in the
future, more stringent
or entity-specific
capital, TLAC,
leverage ratio,
net stable
funding ratio,
liquidity and
funding requirements,
heightened operational
resilience requirements,
incremental tax requirements, additional levies, limitations on
permitted activities, constraints on remuneration, constraints on transfers of capital
and liquidity
and sharing of operational costs across
the Group or other measures,
and the effect these
will or would have
on UBS’s business activities; (vii) UBS’s ability
to
successfully implement resolvability
and related regulatory requirements and
the potential need to
make further changes to
the legal structure or booking
model
of UBS in
response to legal
and regulatory requirements
and any additional
requirements due to
its acquisition
of the Credit
Suisse Group, or
other developments;
(viii) UBS’s ability to
maintain and improve
its systems and
controls for complying
with sanctions in
a timely manner
and for
the detection and
prevention of
money laundering to meet evolving regulatory
requirements and expectations, in particular in
the current geopolitical turmoil;
(ix) the uncertainty arising from
domestic stresses
in certain
major economies;
(x) changes in
UBS’s competitive
position, including
whether differences
in regulatory
capital and
other requirements
among the major financial centers adversely affect UBS’s
ability to compete in certain lines of business; (xi) changes
in the standards of conduct applicable to its
businesses that
may result
from new
regulations or
new enforcement
of existing
standards, including
measures to
impose new
and enhanced
duties when
interacting with customers and in
the execution and handling of
customer transactions; (xii) the liability
to which UBS may be exposed,
or possible constraints or
sanctions
that
regulatory
authorities
might
impose
on
UBS,
due
to
litigation,
contractual
claims
and
regulatory
investigations, including
the
potential
for
disqualification from
certain businesses,
potentially large
fines or
monetary penalties,
or the
loss of
licenses or
privileges as
a
result of
regulatory or
other
governmental sanctions, as well
as the effect that litigation, regulatory and
similar matters have on the
operational risk component of its
RWA; (xiii) UBS’s ability
to retain and attract the
employees necessary to generate revenues and to manage,
support and control its businesses, which may
be affected by competitive
factors; (xiv) changes in accounting or tax standards or policies, and determinations or interpretations affecting the recognition of gain or loss, the valuation of
goodwill, the
recognition of deferred
tax assets and
other matters; (xv) UBS’s
ability to
implement new technologies
and business methods,
including digital
services, artificial intelligence and other technologies, and ability to successfully compete with both existing and new financial service providers, some of which
may not be regulated to the same extent; (xvi) limitations on the effectiveness of UBS’s internal processes for risk management, risk control, measurement and
modeling, and
of
financial models
generally; (xvii) the
occurrence of
operational failures,
such as
fraud, misconduct,
unauthorized trading,
financial crime,
cyberattacks, data leakage and systems failures, the risk of which is increased with persistently high levels of cyberattack threats;
(xviii) restrictions on the ability
of UBS Group AG, UBS AG and regulated
subsidiaries of UBS AG to make
payments or distributions, including
due to restrictions on the ability
of its subsidiaries
to make loans or distributions, directly or indirectly, or, in the case of financial difficulties, due to the exercise by FINMA or the regulators of UBS’s operations in
other countries of their broad statutory powers in relation to protective measures, restructuring and liquidation proceedings;
(xix) the degree to which changes
in regulation, capital or
legal structure, financial results
or other factors may
affect UBS’s ability
to maintain its stated
capital return objective; (xx) uncertainty
over the scope of actions that may be required by UBS, governments and others for UBS to achieve goals relating to climate, environmental and social matters,
as well as the
evolving nature of
underlying science
and industry and
the possibility of
conflict between
different governmental standards
and regulatory regimes;
(xxi) the ability
of UBS to
access capital markets;
(xxii) the ability
of UBS to
successfully recover from
a disaster or
other business continuity problem
due to a
hurricane, flood, earthquake, terrorist attack, war,
conflict, pandemic, security breach, cyberattack, power loss, telecommunications failure
or other natural or
man-made event; and (xxiii) the effect that these or other factors or unanticipated
events, including media reports and speculations, may have on its reputation
and the additional consequences
that this may have on
its business and performance.
The sequence in which the factors
above are presented is not indicative
of
their likelihood of occurrence
or the potential magnitude
of their consequences. UBS’s
business and financial performance could
be affected by
other factors
identified in its past and future filings and reports, including those filed with the US
Securities and Exchange Commission (the SEC). More detailed information
about those factors is set forth in
documents furnished by
UBS and filings made by UBS
with the SEC, including the
UBS Group AG and UBS AG Annual
Reports
on Form 20-F for the year ended 31 December 2024. UBS is not under any obligation to (and expressly disclaims any obligation to) update or alter its forward-
looking statements, whether as a result of new information,
future events, or otherwise.
Rounding |
Numbers presented throughout this report may not add up
precisely to the totals provided in the tables and text.
Percentages and percent changes
disclosed in text and tables are
calculated on the basis of unrounded
figures. Absolute changes between reporting periods disclosed in
the text, which can be
derived from numbers presented in related tables, are calculated on
a rounded basis.
Tables |
Within tables, blank fields generally indicate non-applicability or that presentation of any content would not be meaningful, or that information is not
available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis.
Values
that are zero on a rounded basis can be either negative
or positive on an actual basis.
Websites |
In this report, any
website addresses are provided
solely for information
and are not intended
to be active links.
UBS is not incorporating
the contents
of any such websites into this report.
UBS AG
P.O. Box, CH-8098 Zurich
P.O. Box, CH-4002 Basel
ubs.com
This
Form 6-K
is
hereby incorporated
by reference
into (1)
the
registration statements
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/ Sergio Ermotti
_
Name:
Sergio Ermotti
Title:
President of the Executive Board
By:
/s/ Todd Tuckner
_
Name:
Todd Tuckner
Title:
Chief Financial Officer
By:
/s/ Steffen Henrich
______________
Name:
Steffen Henrich
Title:
Controller
Date:
May 8, 2025