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: April 30, 2025
UBS Group AG
(Registrant's
Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
(Address of principal executive office)
Commission File Number: 1-36764
UBS AG
(Registrant's
Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
Aeschenvorstadt 1, 4051 Basel, Switzerland
(Address of principal executive offices)
Commission File Number: 1-15060
Indicate by check mark whether the registrants file or will file annual
reports under cover of Form 20-F or Form
40-
F.
Form 20-F
☒
Form 40-F
☐
This Form 6-K consists of the
First Quarter 2025 Report of UBS
Group AG, which appears immediately following
this page.
UBS
Group
First quarter
2025 report
Corporate calendar UBS Group
Information about future publication dates is available
at
ubs.com/global/en/investor-relations/events/calendar.html
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ubs.com/contact
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relationships with institutional investors,
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The Group Company Secretary handles
inquiries directed to the Chairman or to
other members of the Board of Directors.
UBS Group AG, Office of the Group
Company Secretary
PO Box, CH-8098 Zurich, Switzerland
sh-company-secretary@ubs.com
Zurich +41-44-235-6652
Shareholder Services
UBS’s Shareholder Services team, a unit
of the Group Company Secretary’s office,
manages relationships with shareholders
and the registration of UBS Group AG
registered shares.
UBS Group AG, Shareholder Services
PO Box, CH-8098 Zurich, Switzerland
sh-shareholder-services@ubs.com
Zurich +41-44-235-6652
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For global registered share-related
inquiries in the US.
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investor-inquiries
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Imprint
Publisher: UBS Group AG, Zurich, Switzerland | ubs.com
Language: English
© UBS 2025. The key symbol and UBS are among
the registered and unregistered
trademarks of UBS. All rights reserved.
1.
UBS
Group
4
Recent developments
7
Group performance
2.
UBS business divisions
and Group Items
17
Global Wealth Management
21
Personal & Corporate Banking
24
Asset Management
26
Investment Bank
28
Non-core and Legacy
29
Group Items
3.
Risk, capital, liquidity and funding,
and balance sheet
31
Risk management and control
36
Capital management
46
Liquidity and funding management
47
Balance sheet and off-balance sheet
49
Share information and earnings per share
4.
Consolidated
financial statements
52
UBS Group AG interim consolidated
financial statements (unaudited)
Appendix
83
Alternative performance measures
87
Abbreviations frequently used in
our financial reports
89
Information sources
90
Cautionary statement
UBS Group first quarter 2025 report
2
Terms used in this report, unless the context requires otherwise
“UBS”, “UBS Group”, “UBS Group
AG consolidated”, “Group”, “we”,
“us” and “our”
UBS Group AG and its consolidated subsidiaries
“UBS AG” and “UBS
AG consolidated”
UBS AG and its consolidated subsidiaries
“Credit Suisse 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.
We
report
a
number of
APMs
in
the discussion
of
the
financial and
operating performance
of the
Group, our
business divisions
and Group
Items. We
use APMs
to provide
a
more
complete
picture of
our
operating performance
and
to
reflect
management’s view
of
the
fundamental
drivers
of
our
business
results. A
definition
of
each
APM,
the
method
used
to
calculate
it
and
the
information
content are presented
under “Alternative performance measures”
in the
appendix to this
report. Our APMs
may
qualify
as
non-GAAP
measures
as
defined
by
US
Securities
and
Exchange
Commission
(SEC)
regulations.
Our
underlying results are APMs and are non-GAAP
financial measures.
›
Refer to the “Group performance” section of this report and to “Alternative performance measures” in the
appendix to this report for additional information about underlying results
Significant regulated subsidiary and sub-group
information
Financial and regulatory key figures
for our significant regulated subsidiaries and sub-groups
will be published on
8 May 2025 and will be available under
“Holding company and significant
regulated subsidiaries and sub-groups”
at
ubs.com/investors
.
UBS Group first quarter 2025 report
3
Our key figures
Key figures
As of or for the quarter ended
USD m, except where indicated
31.3.25
31.12.24
31.3.24
1
Group results
Total revenues
12,557
11,635
12,739
Credit loss expense / (release)
100
229
106
Operating expenses
10,324
10,359
10,257
Operating profit / (loss) before tax
2,132
1,047
2,376
Net profit / (loss) attributable to shareholders
1,692
770
1,755
Diluted earnings per share (USD)
2
0.51
0.23
0.52
Profitability and growth
3,4
Return on equity (%)
7.9
3.6
8.2
Return on tangible equity (%)
8.5
3.9
9.0
Underlying return on tangible equity (%)
5,6
10.0
6.6
9.9
Return on common equity tier 1 capital (%)
9.6
4.2
9.0
Underlying return on common equity tier 1 capital (%)
5,6
11.3
7.2
9.9
Return on leverage ratio denominator, gross (%)
3.3
3.0
3.1
Cost / income ratio (%)
82.2
89.0
80.5
Underlying cost / income ratio (%)
5
77.4
81.9
77.2
Effective tax rate (%)
20.2
25.6
25.8
Net profit growth (%)
(3.6)
n.m.
70.6
Resources
3
Total assets
1,543,363
1,565,028
1,606,798
Equity attributable to shareholders
87,185
85,079
84,777
Common equity tier 1 capital
7
69,152
71,367
77,663
Risk-weighted assets
7
483,276
498,538
526,437
Common equity tier 1 capital ratio (%)
7
14.3
14.3
14.8
Going concern capital ratio (%)
7
18.2
17.6
17.7
Total loss-absorbing capacity ratio (%)
7
38.7
37.2
37.4
Leverage ratio denominator
7
1,561,583
1,519,477
1,599,646
Common equity tier 1 leverage ratio (%)
7
4.4
4.7
4.9
Liquidity coverage ratio (%)
8
181.0
188.4
220.2
Net stable funding ratio (%)
124.2
125.5
126.4
Other
Invested assets (USD bn)
4,9
6,153
6,087
5,848
Personnel (full-time equivalents)
106,789
108,648
111,549
Market capitalization
2,10
105,173
105,719
106,440
Total book value per share (USD)
2
27.35
26.80
26.44
Tangible book value per share (USD)
2
25.18
24.63
24.14
Credit-impaired lending assets as a percentage of total lending
assets, gross (%)
4
1.0
1.0
1.0
Cost of credit risk (bps)
4
7
15
7
1 Comparative-period information has been revised.
Refer to “Note 2 Accounting for the
acquisition of the Credit Suisse Group”
in the “Consolidated financial statements” section
of the UBS Group Annual
Report
2024, available under
“Annual
reporting” at ubs.com/investors,
for more information
about the relevant
adjustments.
2 Refer to the
“Share information
and earnings per
share” section of
this report for
more
information.
3 Refer to the
“Targets,
capital guidance and
ambitions” section of
the UBS Group
Annual Report 2024,
available under “Annual
reporting” at ubs.com/investors,
for more information
about our
performance targets.
4 Refer to “Alternative
performance measures” in the appendix
to this report for the definition and
calculation method.
5 Refer to the “Group performance” section
of this report for more
information about underlying results.
6 In the second quarter of 2024, comparative-period information for the first quarter
of 2024 has been restated to reflect the updated underlying tax impact.
7 Based on the
Swiss systemically relevant bank fram
ework. Refer to the “Capital management”
section of this report for more
information.
8 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.
9 Consists of invested assets
for Global Wealth Management,
Asset Management (including
invested assets from associates)
and Personal &
Corporate
Banking. Refer to “Note 31 Invested assets and net new money” in the “Consolidated financial statements” section of the
UBS Group Annual Report 2024, available under “Annual
reporting” at ubs.com/investors,
for more information.
10 The calculation of market capitalization reflects total shares issued multiplied
by the share price at the end of the period.
UBS Group first quarter 2025 report |
UBS Group | Recent developments
4
UBS Group
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 the
first quarter
of 2025,
we realized
an additional
USD 0.9bn in
gross cost
savings. Cumulative
gross cost
savings
at the end
of the first
quarter of 2025
amounted to USD 8.4bn
compared with the 2022
combined cost base of
UBS and Credit Suisse. This
represents around 65% of our
ambition to deliver around USD 13bn
in annualized exit
rate gross cost savings by the end of 2026.
As of 31 March 2025, our
Non-core and Legacy business division has
delivered a 60% reduction in risk-weighted
assets (RWA)
since the second
quarter of 2023.
We now aim
for Non-core and
Legacy’s credit
and market risk
RWA
to be below USD 8bn by the end of 2025
and we expect its operating expenses,
excluding litigation, to be around
USD 1.8bn in 2025.
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
gain of USD 97m
upon the completion of
the transaction. The
completion of the
transaction also reduced the
Group’s RWA by
around USD 1.3bn and the
Group’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.
UBS Group first quarter 2025 report |
UBS Group | Recent developments
5
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.
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
an USD 8.6bn
reduction in
the UBS
Group’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 the
UBS Group.
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 2025.
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 2025. 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 2025. 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.
UBS Group first quarter 2025 report |
UBS Group | Recent developments
6
Other developments
Capital returns
On 10 April
2025, the
shareholders approved
a dividend
of USD 0.90 per
share at
the Annual
General Meeting.
The dividend was paid on 17 April 2025 to shareholders
of record on 16 April 2025.
In line with our plan to repurchase USD 1bn of
shares in the first half of 2025, we completed
share repurchases of
USD 0.5bn during
the first
quarter of 2025.
We plan
to repurchase
an additional
USD 0.5bn of
shares in the
second
quarter of
2025, and
USD 2bn of
shares in
the second
half of
- We
are maintaining our
ambition for share
repurchases
in
2026
to
exceed
full-year
2022
levels
of
USD 5.6bn.
Our
share
repurchases
will
be
subject
to
maintaining
our CET1
capital ratio
target of
around 14%,
achieving our
financial
targets and
the absence
of material
and immediate changes to the current capital
regime in Switzerland.
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 Group first quarter 2025 report |
UBS Group | Group performance
7
Group 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
1,629
1,838
1,940
(11)
(16)
Other net income from financial instruments measured
at fair value through profit or loss
3,937
3,144
4,182
25
(6)
Net fee and commission income
6,777
6,598
6,492
3
4
Other income
213
56
124
284
71
Total revenues
12,557
11,635
12,739
8
(1)
Credit loss expense / (release)
100
229
106
(56)
(6)
Personnel expenses
7,032
6,361
6,949
11
1
General and administrative expenses
2,431
3,004
2,413
(19)
1
Depreciation, amortization and impairment of non-financial
assets
861
994
895
(13)
(4)
Operating expenses
10,324
10,359
10,257
0
1
Operating profit / (loss) before tax
2,132
1,047
2,376
104
(10)
Tax expense / (benefit)
430
268
612
60
(30)
Net profit / (loss)
1,702
779
1,764
118
(3)
Net profit / (loss) attributable to non-controlling interests
10
9
9
18
20
Net profit / (loss) attributable to shareholders
1,692
770
1,755
120
(4)
Comprehensive income
Total comprehensive income
3,345
(1,878)
(245)
Total comprehensive income attributable to non-controlling interests
26
(27)
(5)
Total comprehensive income attributable to shareholders
3,319
(1,851)
(240)
UBS Group first quarter 2025 report |
UBS Group | Group performance
8
Selected financial information of the business divisions and Group Items
For the quarter ended 31.3.25
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
6,422
2,211
741
3,183
284
(284)
12,557
of which: PPA effects and other integration items
1
165
241
138
30
574
of which: gain related to an investment in an associate
4
11
14
of which: items related to the Swisscard transactions
2
64
64
Total revenues (underlying)
6,253
1,895
741
3,045
284
(314)
11,904
Credit loss expense / (release)
6
53
0
35
7
(1)
100
Operating expenses as reported
5,057
1,551
606
2,427
669
15
10,324
of which: integration-related expenses and PPA effects
3
355
192
73
112
191
3
927
of which: items related to the Swisscard transactions
4
180
180
Operating expenses (underlying)
4,702
1,179
533
2,314
477
12
9,218
Operating profit / (loss) before tax as reported
1,359
607
135
722
(391)
(299)
2,132
Operating profit / (loss) before tax (underlying)
1,545
663
208
696
(200)
(326)
2,586
For the quarter ended 31.12.24
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
6,121
2,245
766
2,749
(58)
(188)
11,635
of which: PPA effects and other integration items
1
200
258
202
(4)
656
of which: loss related to an investment in an associate
(21)
(59)
(80)
Total revenues (underlying)
5,942
2,047
766
2,547
(58)
(184)
11,059
Credit loss expense / (release)
(14)
175
0
63
6
0
229
Operating expenses as reported
5,268
1,476
639
2,207
858
(88)
10,359
of which: integration-related expenses and PPA effects
3
460
209
96
174
317
(1)
1,255
of which: items related to the Swisscard transactions
5
41
41
Operating expenses (underlying)
4,808
1,226
543
2,032
541
(88)
9,062
Operating profit / (loss) before tax as reported
867
595
128
479
(923)
(100)
1,047
Operating profit / (loss) before tax (underlying)
1,147
646
224
452
(606)
(96)
1,768
For the quarter ended 31.3.24
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
6,143
2,423
776
2,751
1,001
(355)
12,739
of which: PPA effects and other integration items
1
234
256
293
(4)
779
Total revenues (underlying)
5,909
2,166
776
2,458
1,001
(351)
11,960
Credit loss expense / (release)
(3)
44
0
32
36
(2)
106
Operating expenses as reported
5,044
1,404
665
2,164
1,011
(33)
10,257
of which: integration-related expenses and PPA effects
3
404
160
71
143
242
1
1,021
Operating expenses (underlying)
4,640
1,245
594
2,022
769
(34)
9,236
Operating profit / (loss) before tax as reported
1,102
975
111
555
(46)
(320)
2,376
Operating profit / (loss) before tax (underlying)
1,272
878
182
404
197
(315)
2,617
1 Includes accretion of PPA adjustments
on financial instruments and other PPA
effects, as well as temporary
and incremental items directly related to the integration.
2 Represents the gain related to UBS’s
share
of income recorded by Swisscard for the sale of the Credit
Suisse card portfolios to UBS.
3 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of intangibles
resulting from the acquisition of the
Credit Suisse Group.
4 Represents the expense related to
the payment to Swisscard for the
sale of the Credit Suisse card
portfolios to UBS.
5 Represents the termination fee
paid to American Express related to the expected sale in 2025 of our 50% holding in Swisscard.
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
353
458
432
Personal & Corporate Banking
166
183
140
Asset Management
73
96
71
Investment Bank
112
174
143
Non-core and Legacy
191
317
242
Group Items
(2)
6
1
Total integration-related expenses
894
1,233
1,029
of which: total revenues
(5)
6
37
of which: operating expenses
899
1,227
992
of which: personnel expenses
559
599
555
of which: general and administrative expenses
279
484
355
of which: depreciation, amortization and impairment of non-financial
assets
60
144
82
UBS Group first quarter 2025 report |
UBS Group | Group performance
9
Underlying results
In addition to
reporting our
results in accordance
with IFRS
Accounting Standards,
we report underlying
results that
exclude items of profit or loss that management believes
are not representative of the underlying performance.
In
the
first
quarter
of
2025,
underlying
revenues
exclude
purchase
price
allocation
(PPA)
effects
and
other
integration items. PPA
effects mainly consist
of PPA
adjustments on financial
instruments measured at
amortized
cost, including
off-balance sheet
positions, arising
from the
acquisition of
the Credit
Suisse Group.
Accretion of
PPA
adjustments on financial
instruments is accelerated
when the related
financial instrument is
derecognized before
its contractual maturity. No adjustment is made for accretion of PPA on financial instruments within Non-core and
Legacy, due to the nature of its business model.
Underlying revenues also exclude a gain related to an investment
in an associate and items related to the Swisscard
transactions.
In
the
first
quarter
of
2025,
underlying
expenses
exclude
integration-related
expenses
that
are
temporary,
incremental and directly
related to the
integration of Credit
Suisse into
UBS, including costs
of internal
staff and
contractors
substantially
dedicated
to
integration
activities,
retention
awards,
redundancy
costs,
incremental
expenses from
the shortening
of useful lives
of property,
equipment and software,
and impairment charges
relating
to
these
assets.
Classification
as
integration-related
expenses
does
not
affect
the
timing
of
recognition
and
measurement
of
those
expenses
or
the
presentation
thereof
in
the
income
statement.
Underlying
operating
expenses also exclude items related to the
Swisscard transactions.
Results: 1Q25 vs 1Q24
Reported operating
profit before
tax decreased
by USD 244m,
or 10%,
to USD 2,132m,
reflecting a
decrease in
total
revenues
and
higher
operating
expenses,
partly
offset
by
lower
net
credit
loss
expenses.
Total
revenues
decreased by
USD 182m, or
1%, to
USD 12,557m, and
included a
decrease of
USD 205m in
accretion impacts
resulting from
PPA adjustments
on financial
instruments and
other integration
items. The
decrease in total
revenues
was driven by USD 556m lower net interest income and other net income from financial instruments measured at
fair
value
through
profit
or
loss,
partly
offset
by
a
USD 285m
increase
in
net
fee
and
commission
income
and
USD 89m higher other income. Operating expenses
increased by USD 67m, or 1%, to
USD 10,324m and included
a USD 93m decrease in integration-related expenses. The overall
increase in operating expenses was mainly driven
by an
USD 83m increase in
personnel expenses and
USD 18m higher general
and administrative expenses, partly
offset by a USD 34m decrease
in depreciation, amortization and
impairment of non-financial assets.
Net credit loss
expenses were USD 100m, compared with USD
106m in the first quarter of 2024.
Underlying results 1Q25 vs 1Q24
Underlying revenues for the
first quarter of 2025
excluded PPA effects
and other integration
items of USD 574m, a
USD 14m gain related to an investment in an associate
and a USD 64m gain related to the Swisscard transactions.
Underlying operating expenses
excluded USD 927m of
integration-related expenses and
PPA effects, as
well as
a
USD 180m expense related to the Swisscard
transactions.
On an underlying
basis, profit before
tax decreased by
USD 31m to USD 2,586m,
reflecting a USD 56m
decrease in
total revenues, partly offset by
an USD 18m decrease in
operating expenses and a USD 6m
decrease in net credit
loss expenses.
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 decreased by USD 556m to USD 5,567m and included a decrease of USD 111m in accretion impacts
resulting from PPA adjustments on financial instruments and other PPA effects.
Global Wealth
Management revenues decreased
by USD 159m
to USD 2,195m, which
included USD 98m
lower
accretion of PPA
adjustments on
financial instruments
and other PPA
effects. Excluding
the aforementioned
effects,
net interest income decreased,
largely driven by a decrease in loan revenues, reflecting
lower margins
and average
volumes, while a decrease in deposit revenues from lower margins was more than offset by the impact of balance
sheet optimization measures.
UBS Group first quarter 2025 report |
UBS Group | Group performance
10
Personal
&
Corporate
Banking
revenues
decreased
by
USD 276m
to
USD 1,428m,
which
included
a
USD 27m
decrease
in
accretion
of
PPA
adjustments
on
financial
instruments
and
other
PPA
effects.
Excluding
the
aforementioned effects,
net
interest
income
decreased,
mainly
reflecting
lower
deposit
revenues
resulting
from
lower market interest rates and higher liquidity
and funding costs, partly offset by higher
loan revenues.
Investment Bank revenues increased by USD 485m
to USD 2,047m, including a USD 20m decrease in accretion of
PPA adjustments on
financial instruments and
other PPA effects.
The overall increase
was mainly due to
an increase
in Derivatives
& Solutions
revenues,
mostly driven
by 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
increases in Prime Brokerage,
supported by higher client balances.
Non-core and Legacy
revenues
decreased by USD 737m
to USD 171m, mainly
due to lower
net gains from
position
exits and
a decrease in
net interest income
from securitized products
and credit
products as a
result of
a smaller
portfolio.
Revenues
in
the
first
quarter
of
2024
also
included
a
net
gain
of
USD 272m
from
the
conclusion
of
agreements with Apollo relating to the former
Credit Suisse securitized products group.
Revenues in
Group Items
were negative
USD 269m, compared
with negative
USD 406m in
the first
quarter of
2024,
and
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 the relevant business division commentary in the “UBS business divisions and Group Items” section of this
report for more information about business-division-specific revenues
›
Refer to “Note 3 Net interest income” in the “Consolidated financial statements” section of this report for more
information about net interest income
Net interest income and other net income from financial instruments measured at fair value through profit or loss
For the quarter ended
% change from
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
33
(55)
355
(91)
Net interest income from financial instruments measured
at fair value through profit or loss and other
1,597
1,893
1,585
(16)
1
Other net income from financial instruments measured
at fair value through profit or loss
3,937
3,144
4,182
25
(6)
Total
5,567
4,982
6,123
12
(9)
Global Wealth Management
2,195
2,217
2,354
(1)
(7)
of which: net interest income
1,708
1,849
1,873
(8)
(9)
of which: transaction-based income from foreign exchange and other
intermediary activity
1
487
368
482
32
1
Personal & Corporate Banking
1,428
1,572
1,704
(9)
(16)
of which: net interest income
1,239
1,362
1,508
(9)
(18)
of which: transaction-based income from foreign exchange and other
intermediary activity
1
189
209
196
(10)
(3)
Asset Management
(5)
(5)
(1)
0
488
Investment Bank
2,047
1,555
1,562
32
31
Non-core and Legacy
171
(153)
908
(81)
Group Items
(269)
(202)
(406)
33
(34)
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 285m to USD 6,777m and
included a decrease of USD 130m
in
accretion of PPA adjustments on financial instruments and other PPA effects, which was reflected in other fee and
commission income, predominantly in Global Banking
in the Investment Bank.
Investment
fund
fees
increased
by
USD 286m
to
USD 1,543m
and
fees
for
portfolio
management
and
related
services
increased
by
USD 53m
to
USD 3,104m,
mainly
in
Global
Wealth
Management,
partly
offset
by
lower
revenues in
Asset Management.
The increase
in Global
Wealth Management was
mainly due
to positive
market
performance and net new fee-generating asset inflows.
The decrease in Asset Management was largely driven by
margin compression, negative
foreign currency
effects and the
impact of exits
from non-strategic
businesses, partly
offset by positive market performance.
Net brokerage fees increased
by USD 216m to USD 1,280m,
due to higher levels of
client activity across all regions
in Global Wealth
Management,
and in Cash
Equities in Execution
Services in the
Investment Bank, due
to higher
volumes.
›
Refer to “Note 4 Net fee and commission income” in the “Consolidated financial statements” section of this report
for more information
UBS Group first quarter 2025 report |
UBS Group | Group performance
11
Other income
Other
income
was
USD 213m,
compared
with
USD 124m
in
the
first
quarter
of
2024.
Revenues
included
a
USD 97m gain in Non-core and Legacy related
to the sale of Select Portfolio Servicing,
the US mortgage servicing
business
of
Credit
Suisse,
and
a
USD 64m
gain
in
Personal
&
Corporate
Banking
related
to
the
Swisscard
transactions.
In addition,
there were losses
of USD 36m
recognized on repurchases
of UBS’s own
debt instruments,
compared with
gains of
USD 22m in
the first
quarter of
- The
first quarter
of 2025
also included
USD 33m
higher
losses
relating
to
insurance
and
similar
contracts,
mainly
driven
by
a
loss
from
an
exit
from
longevity
positions.
›
Refer to “Note 5 Other income” in the “Consolidated financial statements” section of this report for more
information
›
Refer to the “Recent developments” section and “Personal & Corporate Banking” and “Non-core and Legacy”
in the
“UBS business divisions and Group Items” section of this report for more information about Select Portfolio
Servicing and the Swisscard transactions
Credit loss expense / release: 1Q25 vs
1Q24
Total net
credit loss
expenses
in the
first quarter
of 2025
were USD 100m,
reflecting net
releases of
USD 21m
related
to performing positions
and net expenses
of USD 121m on
credit-impaired positions.
Net credit loss expenses
were
USD 106m in the first quarter of 2024.
›
Refer to “Note 8 Expected credit loss measurement” in the “Consolidated financial statements” section of this
report for more information
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Purchased
Total
For the quarter ended 31.3.25
Global Wealth Management
(7)
13
(1)
6
Personal & Corporate Banking
(8)
61
0
53
Asset Management
0
0
0
0
Investment Bank
(5)
40
0
35
Non-core and Legacy
0
(1)
8
7
Group Items
(1)
0
0
(1)
Total
(21)
113
8
100
For the quarter ended 31.12.24
Global Wealth Management
(26)
12
0
(14)
Personal & Corporate Banking
(24)
199
0
175
Asset Management
0
0
0
0
Investment Bank
32
31
0
63
Non-core and Legacy
(2)
5
3
6
Group Items
(1)
0
0
0
Total
(21)
247
3
229
For the quarter ended 31.3.24
Global Wealth Management
(12)
7
2
(3)
Personal & Corporate Banking
(13)
64
(7)
44
Asset Management
0
0
0
0
Investment Bank
7
26
(1)
32
Non-core and Legacy
(26)
37
25
36
Group Items
(2)
0
0
(2)
Total
(45)
133
18
106
UBS Group first quarter 2025 report |
UBS Group | Group performance
12
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
7,032
6,361
6,949
11
1
of which: salaries and variable compensation
5,968
5,321
5,863
12
2
of which: variable compensation – financial advisors
1
1,409
1,400
1,267
1
11
General and administrative expenses
2,431
3,004
2,413
(19)
1
of which: net expenses for litigation, regulatory and similar
matters
114
99
(5)
15
Depreciation, amortization and impairment of non-financial
assets
861
994
895
(13)
(4)
Total operating expenses
10,324
10,359
10,257
0
1
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 83m to USD 7,032m, mainly
as a result
of higher accruals for
performance
awards and a USD 142m increase in financial
advisor compensation resulting from higher compensable revenues.
This was partly offset by a decrease in salary expenses, reflecting the
impact of a smaller workforce.
›
Refer to “Note 6 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 18m
to USD 2,431m, mainly due to a
USD 180m expense
related to the Swisscard transactions
in Personal & Corporate
Banking, as well as
USD 119m higher in expenses
for
litigation, regulatory
and similar
matters.
These increases
were mainly
offset by
a decrease
of USD 97m
in consulting
fees, primarily driven by
a reduction in integration-related
expenses. In addition, there
were decreases of USD 50m
in real estate and logistics costs, USD 45m in outsourcing costs, and
USD 31m in market data services.
›
Refer to the “Recent developments” section and “Personal & Corporate Banking” in the “UBS business divisions and
Group Items” section of this report for more information about the Swisscard transactions
›
Refer to “Note 7 General and administrative expenses” in the “Consolidated financial statements” section of this
report for more information
›
Refer to “Note 14 Provisions and contingent liabilities” in the “Consolidated financial statements” section of this
report for more information about litigation, regulatory and similar matters
›
Refer to the “Regulatory and legal developments” and “Risk factors” sections of the UBS Group Annual Report
2024, available under “Annual reporting” at
ubs.com/investors
, for more information about litigation, regulatory
and similar matters
Depreciation, amortization and impairment of
non-financial assets
Depreciation, amortization and
impairment of
non-financial assets
decreased by
USD 34m to
USD 861m, mainly
due to
a USD 58m decrease
associated with
real estate
leases, driven
by lower
integration-related expenses as
a
result of
higher levels
of accelerated
depreciation in
the first
quarter of
- This
decrease was
partly offset
by
USD 35m
higher
amortization
of
internally generated
capitalized
software,
as
a
result
of
a
higher
cost
base
of
software assets.
Tax: 1Q25 vs 1Q24
The Group had a
net income tax expense
of USD 430m
in the first quarter
of 2025, representing an
effective tax
rate of 20.2%, compared with USD 612m
in the first quarter of 2024 and an effective
tax rate of 25.8%.
The current tax expense was USD 460m, which includes USD 329m 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
net 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 30m.
This
reflects
the
aforementioned
deferred
tax
benefit
of
USD 131m and
a benefit
of USD 39m
in respect
of the
tax deduction
for deferred
compensation awards. These
benefits were partly offset by
a net deferred tax
expense of USD 140m that mainly related
to the amortization of
DTAs previously recognized in relation to tax
losses carried forward and deductible
temporary differences.
We expect that the effective tax rate for the
UBS Group for the remaining nine months of
2025 will be materially
less than the structural rate of 23% due to
projected tax planning benefits.
UBS Group first quarter 2025 report |
UBS Group | Group performance
13
Total comprehensive income attributable
to shareholders
In the first quarter of 2025, total
comprehensive income attributable to shareholders was USD 3,319m, reflecting
a net profit of USD 1,692m and other comprehensive income
(OCI), net of tax, of USD 1,628m.
Foreign currency translation OCI was USD 768m, 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 279m,
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 Group
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 changes
in the
Swiss
franc interest
rate, driven
by both
contractual and
assumed flooring
benefits under
negative interest
rates. US
dollar
and euro interest rate changes
would lead to an offsetting decrease of USD
0.4bn and USD 0.1bn, respectively.
These estimates do not represent net interest income forecasts, as they are based
on a hypothetical scenario of an
immediate change in interest rates,
equal across all currencies and
relative to implied forward rates as
of 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
Key figures and personnel
Below is
an overview
of selected
key figures
of the
Group. For
further information
about key
figures related
to
capital management, refer to the “Capital management”
section of this report.
Cost / income ratio: 1Q25 vs 1Q24
The cost / income
ratio was
82.2%, compared
with 80.5%,
as a
result of lower
total revenues
and higher
operating
expenses. On an underlying
basis the cost / income ratio
was 77.4%, compared with
77.2%, reflecting lower total
revenues,
partly offset by lower operating expenses.
Personnel: 1Q25 vs 4Q24
The
number
of
internal
and
external
personnel
employed
was
approximately
126,077
(workforce
count)
as
of
31 March 2025,
a net
decrease of
2,906 compared
with 31 December
- The
number of
internal personnel
employed
as
of
31 March
2025
was
106,789
(full-time
equivalents),
a
net
decrease
of
1,859
compared
with
31 December 2024.
The
number of
external staff
was
approximately
19,287 (workforce
count) as
of 31 March
2025, a net decrease of approximately 1,048 compared with 31
December 2024.
UBS Group first quarter 2025 report |
UBS Group | Group performance
14
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
1
Net profit
Net profit / (loss) attributable to shareholders
1,692
770
1,755
Equity
Equity attributable to shareholders
87,185
85,079
84,777
less: goodwill and intangible assets
6,909
6,887
7,384
Tangible equity attributable to shareholders
80,276
78,192
77,393
less: other CET1 adjustments
11,123
6,825
(270)
CET1 capital
69,152
71,367
77,663
Returns
Return on equity (%)
7.9
3.6
8.2
Return on tangible equity (%)
8.5
3.9
9.0
Underlying return on tangible equity (%)
2
10.0
6.6
9.9
Return on CET1 capital (%)
9.6
4.2
9.0
Underlying return on CET1 capital (%)
2
11.3
7.2
9.9
1 Comparative-period information has been revised.
Refer to “Note 2 Accounting for the acquisition
of the Credit Suisse Group” in the
“Consolidated financial statements” section of the
UBS Group Annual Report
2024, available under “Annual reporting”
at ubs.com/investors, for more information
about the relevant adjustments.
2 In the second quarter of 2024, comparative-period
information for the first quarter of 2024
has been restated to reflect the updated underlying tax impact.
Common equity tier 1 capital: 1Q25 vs 4Q24
During the first quarter of 2025,
our common equity tier 1 (CET1)
capital decreased by USD 2.2bn to USD
69.2bn,
mainly as operating
profit before tax of
USD 2.1bn and foreign currency
translation gains of
USD 0.8bn were more
than offset by
a net share
repurchase effect
of USD 3.0bn, dividend accruals
of USD 0.8bn, current
tax expenses
of USD 0.5bn,
and a
negative effect
from compensation-
and own-share-related
capital components
of USD 0.5bn.
The net
share repurchase effect
of USD 3.0bn
reflects actual
share repurchases of
USD 0.5bn made
under our
2024
share repurchase
program in the
first quarter of
2025 and a
USD 2.5bn capital reserve
for expected future
share
repurchases.
Return on common equity tier 1 capital: 1Q25
vs 1Q24
The annualized
return on
CET1 capital
was 9.6%,
compared with 9.0%.
On an underlying
basis the return
on CET1
capital was 11.3%,
compared with
9.9%. These
increases were driven
by a decrease
in average
CET1 capital,
partly
offset by a decrease in net profit attributable to shareholders.
Risk-weighted assets: 1Q25 vs 4Q24
During
the
first
quarter
of
2025,
RWA
decreased
by
USD 15.3bn
to
USD 483.3bn,
driven
by
an
USD 11.4bn
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 5.9bn increase in
currency effects.
Common equity tier 1 capital ratio: 1Q25 vs 4Q24
Our CET1 capital
ratio was broadly
unchanged at 14.3%,
reflecting a USD 2.2bn
decrease in CET1 capital
offset by
a USD 15.3bn decrease in RWA.
Leverage ratio denominator: 1Q25 vs 4Q24
The leverage
ratio denominator
(the LRD)
increased by
USD 42.1bn to
USD 1,561.6bn, 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 26.5bn,
partly offset by asset size and other movements of USD
13.2bn.
Common equity tier 1 leverage ratio: 1Q25
vs 4Q24
Our CET1
leverage ratio
decreased to
4.4% from
4.7%, reflecting
a USD 2.2bn
decrease in
CET1 capital
and a
USD 42.1bn increase in the LRD.
UBS Group first quarter 2025 report |
UBS Group | Group performance
15
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. As
a consequence of
tax planning measures related
to the integration,
we expect
our effective
tax rate
in the
second quarter
to be
around zero.
Pull-to-par revenues
1
are expected
to
reach USD 0.6bn, partially mitigating the expected
USD 1.1bn in integration-related expenses.
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.
1
Pull-to-par revenues – revenues recognized when fair value reductions
taken on financial instruments acquired as part
of the Credit Suisse transaction through
the required purchase price allocation (PPA)
unwind as
the instruments approach their maturity.
UBS Group first quarter 2025 report |
UBS business divisions and Group Items
16
UBS business divisions and
Group Items
Management report
Our businesses
We report
five business
divisions, each
of which
qualifies as
an operating
segment pursuant
to IFRS
Accounting
Standards: Global Wealth Management,
Personal & Corporate Banking,
Asset Management, the Investment
Bank,
and Non-core and Legacy. Non-core and Legacy consists of positions and businesses not aligned with our strategy
and policies.
Our Group
functions are
support and
control functions
that provide
services to
the Group.
Virtually all
costs incurred
by our Group functions are
allocated to the business divisions,
leaving a residual amount that
we refer to as Group
Items in our segment reporting.
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
Global Wealth Management
17
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
1,708
1,849
1,873
(8)
(9)
Recurring net fee income
1
3,279
3,262
3,024
1
8
Transaction-based income
1
1,427
1,041
1,212
37
18
Other income
8
(32)
33
(77)
Total revenues
6,422
6,121
6,143
5
5
Credit loss expense / (release)
6
(14)
(3)
Operating expenses
5,057
5,268
5,044
(4)
0
Business division operating profit / (loss) before tax
1,359
867
1,102
57
23
Underlying results
Total revenues as reported
6,422
6,121
6,143
5
5
of which: PPA effects and other integration items
2
165
200
234
(17)
(29)
of which: PPA effects recognized in net interest income
159
192
257
(17)
(38)
of which: PPA effects and other integration items recognized in transaction-based income
6
8
(24)
(21)
of which: gain / (loss) related to an investment in an associate
4
(21)
Total revenues (underlying)
1
6,253
5,942
5,909
5
6
Credit loss expense / (release)
6
(14)
(3)
Operating expenses as reported
5,057
5,268
5,044
(4)
0
of which: integration-related expenses and PPA effects
1,3
355
460
404
(23)
(12)
Operating expenses (underlying)
1
4,702
4,808
4,640
(2)
1
of which: expenses for litigation, regulatory and similar matters
14
100
12
(86)
22
Business division operating profit / (loss) before tax as reported
1,359
867
1,102
57
23
Business division operating profit / (loss) before tax (underlying)
1
1,545
1,147
1,272
35
21
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
23.4
209.8
(9.1)
Cost / income ratio (%)
1
78.8
86.1
82.1
Average attributed equity (USD bn)
4
33.6
33.6
33.1
0
2
Return on attributed equity (%)
1,4
16.2
10.3
13.3
Financial advisor compensation
5
1,409
1,400
1,267
1
11
Net new fee-generating assets (USD bn)
1
27.2
13.3
17.6
Fee-generating assets (USD bn)
1
1,847
1,816
1,731
2
7
Net new assets (USD bn)
1
31.5
17.7
27.4
Net new assets growth rate (%)
1
3.0
1.7
2.8
Invested assets (USD bn)
1
4,218
4,182
4,023
1
5
Net new loans (USD bn)
1
2.2
(0.8)
(6.6)
Loans, gross (USD bn)
6
300.1
300.5
306.3
0
(2)
Net new deposits (USD bn)
1
(9.3)
2.7
8.0
Customer deposits (USD bn)
6
464.4
470.1
482.4
(1)
(4)
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,7
0.4
0.4
0.3
Advisors (full-time equivalents)
9,693
9,803
10,338
(1)
(6)
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
1
21.5
84.0
5.0
Cost / income ratio (%)
1
75.2
80.9
78.5
Return on attributed equity (%)
1,4
18.4
13.6
15.4
1 Refer to “Alternative
performance measures” in the appendix to
this report for the definition and
calculation method.
2 Includes accretion of PPA
adjustments on financial instruments and other
PPA effects,
as
well as temporary and incremental items
directly related to the integration.
3 Includes temporary, incremental
operating expenses directly related to the
integration, as well as amortization of
intangibles resulting
from the acquisition of the Credit Suisse Group.
4 Refer to the “Equity attribution” section of this report for more
information about the equity attribution framework.
5 Relates to licensed professionals with the
ability to provide investment
advice to clients in
the Americas. Consists
of cash compensation, determined
using a formulaic approach
based on production,
and deferred awards.
Also includes expenses related
to
compensation commitments with financial
advisors entered into at
the time of recruitment that
are subject to vesting
requirements. Recruitment loans
to financial advisors were
USD 2,738m as of 31 March
2025.
6 Loans and Customer deposits in this
table include customer brokerage receivables and payables, respectively, which are presented in separate reporting lines on
the balance sheet.
7 Refer to the “Risk management
and control” section of this report for more information about (credit-)impaired exposures. Excludes loans to financial advisors.
Results: 1Q25 vs 1Q24
Profit
before
tax increased
by
USD 257m, or
23%, to
USD 1,359m, mainly
due to
higher total
revenues, partly
offset
by
higher
operating expenses.
Underlying
profit
before
tax
was
USD 1,545m,
an
increase
of
21%,
after
excluding from operating expenses USD 355m of integration-related expenses and
purchase price allocation (PPA)
effects and also
excluding from total
revenues USD 165m of
PPA effects and other integration
items and a
USD 4m
gain related to an investment in an associate.
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
Global Wealth Management
18
Total revenues
Total
revenues increased by USD 279m, or 5%, to USD 6,422m, largely driven by higher recurring net fee income
and transaction-based
income,
partly offset by
lower net
interest income, and
included a USD
69m
decrease in PPA
effects and other integration
items. Excluding USD 165m
of PPA effects and other integration
items and a USD 4m
gain related to an investment in an associate,
underlying total revenues were USD 6,253m, an increase of 6%.
Net
interest
income
decreased
by
USD 165m,
or
9%,
to
USD 1,708m,
and
included
a
USD 98m
decrease
in
accretion of PPA
adjustments on financial
instruments and other
PPA effects.
The remaining variance
was largely
driven by lower loan revenues, reflecting
lower margins and average volumes, while
lower deposit revenues from
lower margins
were more
than offset
by the
impact of
balance sheet
optimization measures.
The decrease
also
included a
change to
our segmentation
approach that
was implemented
in February
2025 and
led to
a shift
of
some affluent clients
to Personal & Corporate
Banking. Excluding PPA
effects of USD 159m,
underlying net interest
income was USD 1,549m, a decrease of 4%.
Recurring
net
fee
income
increased
by
USD 255m,
or
8%,
to
USD 3,279m,
mainly
driven
by
positive
market
performance and net new fee-generating asset
inflows.
Transaction-based income
increased by
USD 215m, or
18%, to
USD 1,427m, mainly
driven by
higher levels
of client
activity across
all regions.
Excluding PPA
effects of
USD 6m, underlying
transaction-based income
was USD 1,421m,
an increase of 15%.
Other income decreased
by USD 25m to
USD 8m and included
a gain
of USD 4m related
to an investment
in an
associate. Excluding the aforementioned gain,
underlying other income was USD 4m,
a decrease of 88%.
Credit loss expense / release
Net credit
loss expenses
were USD 6m,
compared with
net credit
loss releases
of USD 3m
in the
first quarter
of
2024.
Operating expenses
Operating
expenses
increased
by
USD 13m
to
USD 5,057m,
mainly
driven
by
an
increase
in
financial
advisor
compensation as
a result
of higher
compensable revenues,
almost entirely
offset by
lower technology
expenses,
risk management
costs and
real estate
costs, and
included a
USD 49m decrease
in integration-related
expenses.
Excluding
USD 355m
of
integration-related
expenses
and
PPA
effects,
underlying
operating
expenses
were
USD 4,702m, an increase of 1%.
Invested assets: 1Q25 vs 4Q24
Invested
assets
increased
by
USD 36bn
to
USD 4,218bn,
mainly
driven
by
positive
foreign
currency
effects
of
USD 36.1bn
and
net
new
asset
inflows
of
USD 31.5bn,
partly
offset
by
negative
market
performance
of
USD 24.6bn.
Loans: 1Q25 vs 4Q24
Loans
were
broadly
stable
at
USD 300.1bn,
as
positive
foreign
currency
effects
and
positive
net
new
loans
of
USD 2.2bn were more than offset by the effect from the aforementioned 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 5.7bn
to
USD 464.4bn,
mainly
driven
by
net
new
deposit
outflows
of
USD 9.3bn, partly offset by positive foreign currency effects.
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
Global Wealth Management
19
Regional breakdown of performance measures
As of or for the quarter ended 31.3.25
USD m, except where indicated
Americas
1
Asia Pacific
EMEA
Switzerland
Divisional items
2
Global Wealth
Management
Net interest income
513
311
372
345
167
1,708
Recurring net fee income
3
2,022
276
535
432
14
3,279
Transaction-based income
3
460
455
272
255
(15)
1,427
Other income
8
(7)
(2)
(1)
9
8
Total revenues
3,003
1,034
1,177
1,031
177
6,422
Credit loss expense / (release)
16
3
0
(14)
0
6
Operating expenses
2,630
604
824
641
359
5,057
Operating profit / (loss) before tax
357
428
354
403
(183)
1,359
of which: PPA effects, integration-related items and other items
4
(186)
(186)
Cost / income ratio (%)
3
87.6
58.4
70.0
62.2
78.8
Net new fee-generating assets (USD bn)
3
10.2
4.4
8.7
4.1
(0.1)
27.2
Fee-generating assets (USD bn)
3
1,058
178
382
228
1
1,847
Net new assets (USD bn)
3
20.2
7.5
1.4
3.6
(1.1)
31.5
Net new assets growth rate (%)
3
3.8
4.5
0.8
1.9
3.0
Invested assets (USD bn)
3
2,082
689
670
773
4
4,218
Net new loans (USD bn)
3
0.9
1.3
0.3
(0.2)
0.0
2.2
Loans, gross (USD bn)
98.7
5
43.4
60.0
97.0
1.0
300.1
Net new deposits (USD bn)
3
(2.7)
(7.0)
(1.6)
1.9
0.1
(9.3)
Customer deposits (USD bn)
113.6
5
119.2
111.8
117.5
2.3
464.4
Advisors (full-time equivalents)
5,884
922
1,530
1,277
81
9,693
As of or for the quarter ended 31.3.24
USD m, except where indicated
Americas
1
Asia Pacific
EMEA
Switzerland
Divisional items
2
Global Wealth
Management
Net interest income
488
325
421
391
248
1,873
Recurring net fee income
3
1,827
252
513
419
14
3,024
Transaction-based income
3
397
356
265
225
(31)
1,212
Other income
15
15
(1)
(2)
6
33
Total revenues
2,727
948
1,198
1,033
236
6,143
Credit loss expense / (release)
8
(3)
(5)
(2)
0
(3)
Operating expenses
2,467
636
872
659
411
5,044
Operating profit / (loss) before tax
252
315
331
377
(174)
1,102
of which: PPA effects, integration-related items and other items
4
(170)
(170)
Cost / income ratio (%)
3
90.5
67.1
72.8
63.7
82.1
Net new fee-generating assets (USD bn)
3
12.9
2.3
2.0
0.5
(0.1)
17.6
Fee-generating assets (USD bn)
3
990
155
371
213
1
1,731
Net new assets (USD bn)
3
13.7
6.4
(0.2)
7.7
(0.2)
27.4
Net new assets growth rate (%)
3
2.9
3.9
(0.1)
4.2
2.8
Invested assets (USD bn)
3
1,979
641
662
736
5
4,023
Net new loans (USD bn)
3
(1.8)
(1.4)
(2.2)
(1.1)
(0.1)
(6.6)
Loans, gross (USD bn)
95.7
5
43.5
59.1
107.2
0.8
306.3
Net new deposits (USD bn)
3
(1.4)
3.0
2.5
4.0
(0.1)
8.0
Customer deposits (USD bn)
109.1
5
128.3
119.7
122.9
2.5
482.4
Advisors (full-time equivalents)
6,079
1,064
1,704
1,402
89
10,338
1 Including the following business
units: United States and Canada;
and Latin America.
2 Includes impacts from accretion of
purchase price allocation adjustments on
financial instruments and other PPA
effects,
integration-related expenses,
certain gains and
losses from investments
in associates and
minor functions,
which are not
included in the
four regions individually
presented in this
table.
3 Refer to
“Alternative
performance measures” in the
appendix to this report
for the definition and
calculation method.
4 Items of profit
or loss that management
believes are not representative
of the underlying performance,
namely
impacts from accretion of
purchase price allocation
adjustments on financial instruments
and other PPA
effects, integration-related expenses,
amortization of intangibles resulting
from the acquisition of
the Credit
Suisse Group, and certain
gains and losses from investments
in associates.
5 Loans and Customer
deposits in this table
include customer brokerage
receivables and payables,
respectively, which are
presented in
separate reporting lines on the balance sheet.
Regional comments 1Q25 vs 1Q24, except where
indicated
Americas
Profit
before
tax
increased
by
USD 105m
to
USD 357m.
Total
revenues
increased
by
USD 276m,
or
10%,
to
USD 3,003m, mainly driven
by increases
of USD 195m in
recurring net
fee income
and USD 63m
in transaction-
based
income.
Operating
expenses
increased
by
USD 163m,
or
7%,
to
USD 2,630m.
The
cost / income
ratio
decreased
to
87.6%
from
90.5%.
Loans
increased
by
1%
compared
with
the
fourth
quarter
of
2024,
to
USD 98.7bn, mainly
driven by
positive net
new loans
of USD 0.9bn.
Customer deposits
decreased by
2% compared
with the fourth
quarter of 2024,
to USD 113.6bn, mainly driven
by net new
deposit outflows of USD 2.7bn.
Net
new asset inflows were USD 20.2bn.
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
Global Wealth Management
20
Asia Pacific
Profit
before
tax
increased
by
USD 113m
to
USD 428m.
Total
revenues
increased
by
USD 86m,
or
9%,
to
USD 1,034m, mainly driven by
increases of USD 99m
in transaction-based income and
USD 24m in recurring
net
fee income, offset by a decrease of
USD 14m in net interest income. Operating expenses decreased by USD 32m,
or 5%, to USD 604m.
The cost / income ratio decreased
to 58.4% from 67.1%. Loans
increased by 4% compared
with the fourth quarter of 2024, to USD 43.4bn, mainly driven
by positive net new loans of USD 1.3bn. Customer
deposits decreased by 5% compared with the fourth quarter of 2024, to USD 119.2bn, mainly driven by net new
deposit outflows of USD 7.0bn. Net new asset
inflows were USD 7.5bn.
EMEA
Profit
before
tax
increased
by
USD 23m
to
USD 354m.
Total
revenues
decreased
by
USD 21m,
or
2%,
to
USD 1,177m, mainly
driven by
a decrease of
USD 49m in
net interest
income, partly
offset by
increases of USD
22m
in recurring net fee
income and USD 7m
in transaction-based income.
Operating expenses
decreased by USD 48m,
or 6%, to USD 824m.
The cost / income ratio decreased
to 70.0% from 72.8%. Loans
increased by 4% compared
with the fourth
quarter of 2024,
to USD 60.0bn,
mainly driven by
positive net
new loans of
USD 0.3bn and
positive
foreign
currency
effects.
Customer
deposits
increased
by
1%
compared
with
the
fourth
quarter
of
2024,
to
USD 111.8bn,
mainly
driven
by
positive
foreign
currency
effects,
partly
offset
by
net
new
deposit
outflows
of
USD 1.6bn. Net new asset inflows were USD 1.4bn.
Switzerland
Profit before
tax increased
by USD 26m
to USD 403m.
Total revenues decreased by
USD 2m to
USD 1,031m, mostly
driven by a
decrease of USD 46m
in net interest
income, partly offset
by increases of
USD 30m in transaction-based
income
and
USD 13m
in
recurring
net
fee
income.
Operating
expenses
decreased
by
USD 18m,
or
3%,
to
USD 641m. The cost / income ratio decreased to 62.2% from 63.7%. Loans decreased by 6% compared with the
fourth quarter
of 2024,
to USD 97.0bn,
mainly reflecting
the effect from
the aforementioned
shift of some
affluent
clients to Personal & Corporate
Banking. Customer deposits increased
by 2% compared with the
fourth quarter of
2024,
to
USD 117.5bn,
mainly
driven
by
net
new
deposit
inflows
of
USD 1.9bn
and
positive
foreign
currency
effects. Net new asset inflows were USD 3.6bn.
Divisional items
Operating loss
before
tax was
USD 183m, mainly
including USD 355m
of integration-related
expenses and
PPA
effects, partly offset
by the aforementioned
USD 165m related to
PPA
effects and other
integration items, and
a
gain of USD 4m related to an investment in an associate.
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
Personal & Corporate Banking
21
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
1,114
1,204
1,332
(7)
(16)
Recurring net fee income
1
357
357
348
0
3
Transaction-based income
1
452
471
449
(4)
1
Other income
66
(49)
11
486
Total revenues
1,989
1,983
2,139
0
(7)
Credit loss expense / (release)
48
155
39
(69)
22
Operating expenses
1,396
1,305
1,241
7
12
Business division operating profit / (loss) before tax
545
524
859
4
(37)
Underlying results
Total revenues as reported
1,989
1,983
2,139
0
(7)
of which: PPA effects and other integration items
2
216
227
226
(5)
(5)
of which: PPA effects recognized in net interest income
192
209
212
(8)
(10)
of which: PPA effects and other integration items recognized in transaction-based income
25
18
14
36
75
of which: gain / (loss) related to an investment in an associate
9
(54)
of which: items related to the Swisscard transactions
3
58
Total revenues (underlying)
1
1,705
1,810
1,913
(6)
(11)
Credit loss expense / (release)
48
155
39
(69)
22
Operating expenses as reported
1,396
1,305
1,241
7
12
of which: integration-related expenses and PPA effects
1,4
172
185
141
(7)
22
of which: items related to the Swisscard transactions
5,6
164
37
341
Operating expenses (underlying)
1
1,060
1,083
1,100
(2)
(4)
of which: expenses for litigation, regulatory and similar matters
0
0
0
Business division operating profit / (loss) before tax as reported
545
524
859
4
(37)
Business division operating profit / (loss) before tax (underlying)
1
597
572
774
4
(23)
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
(36.5)
(2.4)
55.7
Cost / income ratio (%)
1
70.2
65.8
58.0
Average attributed equity (CHF bn)
7
18.2
18.6
19.1
(3)
(5)
Return on attributed equity (%)
1,7
12.0
11.2
18.0
Net interest margin (bps)
1
181
198
211
Loans, gross (CHF bn)
248.9
242.3
252.9
3
(2)
Customer deposits (CHF bn)
251.2
254.1
255.9
(1)
(2)
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,8
1.3
1.3
1.2
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
1
(22.9)
(18.2)
40.3
Cost / income ratio (%)
1
62.2
59.8
57.5
Return on attributed equity (%)
1,7
13.2
12.3
16.2
1 Refer to “Alternative
performance measures” in the appendix to
this report for the definition and
calculation method.
2 Includes accretion of PPA
adjustments on financial instruments and other
PPA effects, as
well as temporary and
incremental items directly related
to the integration.
3 Represents the gain
related to UBS’s
share of income recorded
by Swisscard for the
sale of the Credit
Suisse card portfolios
to UBS.
4 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of intangibles resulting from the acquisition of the
Credit Suisse Group.
5 For the first quarter of 2025
this represents the expense related to the payment to Swisscard for the sale of the Credit Suisse card portfolios to UBS.
6 For the fourth quarter of 2024 this represents the termination fee paid to American Express
related to the expected sale in 2025 of
our 50% holding in Swisscard.
7 Refer to the “Equity attribution” section
of this report for more information about
the equity attribution framework.
8 Refer to the “Risk
management and control” section of this report for more information about (credit-)impaired exposures.
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
Personal & Corporate Banking
22
Results
:
1Q25 vs 1Q24
Profit before tax decreased by CHF 314m, or
37%, to CHF 545m, mainly reflecting
higher operating expenses and
lower total revenues. Underlying profit before tax was CHF 597m, a decrease
of 23%, mainly driven by lower net
interest
income,
resulting
from
lower
market
interest
rates.
This
underlying
profit
excludes
from
total
revenues
CHF 216m of purchase price
allocation (PPA) effects and other integration items,
a gain of CHF 58m related
to the
Swisscard
transactions,
and
a
gain
of
CHF 9m
related
to
an
investment
in
an
associate;
it
also
excludes
from
operating expenses CHF 172m of
integration-related expenses and PPA
effects and a
CHF 164m expense related
to the Swisscard transactions.
Total revenues
Total
revenues decreased by
CHF 150m, or 7%,
to CHF 1,989m, mainly
due to lower
net interest
income, partly
offset by higher other income, and included a CHF 10m decrease in PPA effects and other integration items. Total
revenues in the first quarter of 2025
also included a gain of CHF 58m related
to the Swisscard transactions and a
gain of CHF 9m related
to an investment
in an associate.
Excluding CHF 216m of
PPA effects and other integration
items and the aforementioned gains, underlying total
revenues were CHF 1,705m, a decrease of 11%.
Net
interest
income
decreased
by
CHF 218m,
or
16%,
to
CHF 1,114m,
mainly
due
to
lower
deposit
revenues,
resulting
from
lower
market
interest
rates,
and
higher
liquidity
and
funding
costs,
partly
offset
by
higher
loan
revenues, including the effect from a shift of some
affluent clients from Global Wealth Management. Net interest
income also included a CHF 20m decrease in accretion of PPA adjustments
on financial instruments and other PPA
effects. Excluding PPA effects of CHF 192m,
underlying net interest income was CHF 923m,
a decrease of 18%.
Recurring net
fee income
increased by
CHF 9m, or
3%, to
CHF 357m, largely
due to
higher investment product
levels,
mainly
reflecting
net
new
inflows
and
positive
market
performance,
partly
offset
by
the
effect
from
a
reclassification
of
recurring
net
fee
income
to
transaction-based
income
as
a
result
of
aligning
Credit
Suisse
presentation to that of UBS in the second half
of 2024.
Transaction-based income was broadly stable at CHF 452m, as lower corporate client revenues were offset by the
positive impact
from the
aforementioned reclassification,
and included
an CHF 11m
increase in
accretion of
PPA
adjustments on
financial
instruments and
other PPA
effects.
Excluding CHF 25m
of PPA
effects and
other integration
items, underlying transaction-based income
was CHF 427m, a decrease of 2%.
Other income
increased by
CHF 55m to
CHF 66m, mainly
reflecting a
gain of
CHF 58m related
to the
Swisscard
transactions and
a gain of
CHF 9m related
to an investment
in an associate.
Excluding these
gains, underlying
other
income was negative CHF 2m.
Credit loss expense / release
Net credit loss expenses
were CHF 48m
and mainly reflected
net expenses on
credit-impaired positions, primarily
in
the legacy Credit Suisse corporate loan book. Net credit loss
expenses in the prior-year quarter were CHF 39m.
Operating expenses
Operating expenses increased by CHF 155m,
or 12%, to CHF 1,396m, largely
due to a CHF 164m expense
related
to
the
Swisscard
transactions,
and
included
a
CHF 30m
increase
in
integration-related
expenses.
Excluding
CHF 172m
of
integration-related
expenses
and
PPA
effects
and
the
aforementioned
expense
of
CHF 164m,
underlying operating expenses were CHF 1,060m, a decrease
of 4%, mainly driven by
lower personnel expenses,
including lower variable compensation.
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
Personal & Corporate Banking
23
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
1,239
1,362
1,508
(9)
(18)
Recurring net fee income
1
397
404
394
(2)
1
Transaction-based income
1
502
532
508
(6)
(1)
Other income
72
(53)
13
470
Total revenues
2,211
2,245
2,423
(2)
(9)
Credit loss expense / (release)
53
175
44
(69)
22
Operating expenses
1,551
1,476
1,404
5
10
Business division operating profit / (loss) before tax
607
595
975
2
(38)
Underlying results
Total revenues as reported
2,211
2,245
2,423
(2)
(9)
of which: PPA effects and other integration items
2
241
258
256
(7)
(6)
of which: PPA effects recognized in net interest income
213
237
240
(10)
(11)
of which: PPA effects and other integration items recognized in transaction-based income
27
20
16
35
70
of which: gain / (loss) related to an investment in an associate
11
(59)
of which: items related to the Swisscard transactions
3
64
Total revenues (underlying)
1
1,895
2,047
2,166
(7)
(13)
Credit loss expense / (release)
53
175
44
(69)
22
Operating expenses as reported
1,551
1,476
1,404
5
10
of which: integration-related expenses and PPA effects
1,4
192
209
160
(8)
20
of which: items related to the Swisscard transactions
5,6
180
41
340
Operating expenses (underlying)
1
1,179
1,226
1,245
(4)
(5)
of which: expenses for litigation, regulatory and similar matters
0
0
0
Business division operating profit / (loss) before tax as reported
607
595
975
2
(38)
Business division operating profit / (loss) before tax (underlying)
1
663
646
878
3
(25)
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
(37.8)
(1.0)
63.1
Cost / income ratio (%)
1
70.1
65.7
58.0
Average attributed equity (USD bn)
7
20.1
21.3
21.9
(6)
(8)
Return on attributed equity (%)
1,7
12.1
11.2
17.8
Net interest margin (bps)
1
181
196
208
Loans, gross (USD bn)
281.4
266.9
280.3
5
0
Customer deposits (USD bn)
284.0
279.9
283.6
1
0
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
1,8
1.3
1.3
1.2
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
1
(24.5)
(19.2)
46.9
Cost / income ratio (%)
1
62.2
59.9
57.5
Return on attributed equity (%)
1,7
13.2
12.1
16.0
1 Refer to “Alternative
performance measures” in the appendix to
this report for the definition and
calculation method.
2 Includes accretion of PPA
adjustments on financial instruments and other
PPA effects, as
well as temporary and
incremental items directly related
to the integration.
3 Represents the gain
related to UBS’s
share of income recorded
by Swisscard for the
sale of the Credit
Suisse card portfolios
to UBS.
4 Includes temporary, incremental operating expenses directly related to the integration, as well as amortization of intangibles resulting from the acquisition of the
Credit Suisse Group.
5 For the first quarter of 2025
this represents the expense related to the payment to Swisscard for the sale of the Credit Suisse card portfolios to UBS.
6 For the fourth quarter of 2024 this represents the termination fee paid to American Express
related to the expected sale in 2025 of
our 50% holding in Swisscard.
7 Refer to the “Equity attribution” section
of this report for more information about
the equity attribution framework.
8 Refer to the “Risk
management and control” section of this report for more information about (credit-)impaired exposures.
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
Asset Management
24
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
709
745
1
(4)
Performance fees
30
44
30
(32)
0
Net gain from disposals
(2)
13
Total revenues
741
766
776
(3)
(4)
Credit loss expense / (release)
0
0
0
Operating expenses
606
639
665
(5)
(9)
Business division operating profit / (loss) before tax
135
128
111
6
22
Underlying results
Total revenues as reported
741
766
776
(3)
(4)
Total revenues (underlying)
2
741
766
776
(3)
(4)
Credit loss expense / (release)
0
0
0
Operating expenses as reported
606
639
665
(5)
(9)
of which: integration-related expenses
2
73
96
71
(24)
2
Operating expenses (underlying)
2
533
543
594
(2)
(10)
of which: expenses for litigation, regulatory and similar matters
0
1
0
Business division operating profit / (loss) before tax as reported
135
128
111
6
22
Business division operating profit / (loss) before tax (underlying)
2
208
224
182
(7)
15
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
2
22.3
5.2
16.6
Cost / income ratio (%)
2
81.7
83.3
85.8
Average attributed equity (USD bn)
3
2.7
2.8
2.6
(4)
3
Return on attributed equity (%)
2,3
19.8
18.0
16.7
Gross margin on invested assets (bps)
2
17
17
19
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
2
14.5
20.3
91.5
Cost / income ratio (%)
2
71.9
70.8
76.6
Return on attributed equity (%)
2,3
30.5
31.5
27.5
Information by business line / asset
class
Net new money (USD bn)
2
Equities
(1.4)
30.5
3.3
Fixed Income
9.8
4.1
13.8
of which: money market
5.2
4.3
10.4
Multi-asset & Solutions
0.9
(0.5)
1.7
Hedge Fund Businesses
0.6
(2.8)
(0.2)
Real Estate & Private Markets
0.1
(0.9)
0.3
Total net new money excluding associates
10.1
30.4
18.9
of which: net new money excluding money market
4.8
26.2
8.6
Associates
4
(3.2)
3.0
2.1
Total net new money
6.8
33.4
21.0
Invested assets (USD bn)
2
Equities
753
755
683
0
10
Fixed Income
479
464
450
3
6
of which: money market
164
157
145
4
13
Multi-asset & Solutions
275
268
278
2
(1)
Hedge Fund Businesses
60
58
58
3
3
Real Estate & Private Markets
147
143
148
3
0
Total invested assets excluding associates
1,715
1,689
1,617
2
6
of which: passive strategies
823
807
750
2
10
Associates
4
81
84
74
(3)
10
Total invested assets
1,796
1,773
1,691
1
6
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
Asset Management
25
Asset Management (continued)
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
Information by region
Invested assets (USD bn)
2
Americas
447
443
424
1
5
Asia Pacific
5
222
224
214
(1)
3
EMEA (excluding Switzerland)
440
435
374
1
18
Switzerland
688
670
679
3
1
Total invested assets
1,796
1,773
1,691
1
6
Information by channel
Invested assets (USD bn)
2
Third-party institutional
1,027
1,008
960
2
7
Third-party wholesale
163
169
176
(4)
(7)
UBS’s wealth management businesses
525
512
482
2
9
Associates
4
81
84
74
(3)
10
Total invested assets
1,796
1,773
1,691
1
6
1 Net management fees include transaction
fees, fund administration revenues
(including net interest and trading
income from lending activities and
foreign-exchange hedging as part of the
fund services offering),
distribution fees, incremental fund-related
expenses, gains or losses
from seed money and co-investments,
funding costs, the negative
pass-through impact of third-party performance
fees, and other items
that are
not Asset Management’s performance fees.
2 Refer to “Alternative
performance measures” in the appendix to this
report for the definition and calculation method.
3 Refer to the “Equity attribution” section of
this report for more information about the
equity attribution framework.
4 The invested assets and net new money amounts reported for
associates are prepared in accordance with their local
regulatory requirements
and practices.
5 Includes invested assets from associates.
Results: 1Q25 vs 1Q24
Profit before
tax increased
by USD 24m,
or 22%,
to USD 135m,
mainly due
to lower
operating expenses, partly
offset by
lower total
revenues.
Underlying profit before
tax was
USD 208m, an increase
of 15%,
after excluding
integration-related expenses of USD 73m.
Total revenues
Total
revenues decreased by
USD 35m, or 4%,
to USD 741m, primarily reflecting
a decrease in
net management
fees.
Net
management
fees
decreased
by
USD 32m,
or
4%,
to
USD 713m,
largely
driven
by
margin
compression,
negative foreign
currency effects
and the
impact of
exits from
non-strategic businesses,
partly offset
by positive
market performance.
Performance fees
were stable
at USD 30m,
as increases
in Fixed Income
were offset
by decreases
in the
Hedge Fund
and Real Estate Businesses.
Operating expenses
Operating expenses decreased by USD 59m, or 9%, to USD 606m, reflecting decreases across non-personnel and
personnel expenses,
and included a
USD 2m increase in
integration-related expenses.
Excluding integration-related
expenses of
USD 73m, underlying
operating
expenses were
USD 533m, a
decrease of
10%, mainly
due to
decreases
in personnel,
consulting and
legal expenses
and the
release of
a provision for
fund-administration-related expenses,
as well as decreases across a number of other expense
lines.
Invested assets: 1Q25 vs 4Q24
Invested assets
increased by
USD 23bn to
USD 1,796bn, reflecting positive
foreign currency
effects of
USD 33bn
and positive
net new
money of
USD 7bn, partly
offset by
negative market
performance of
USD 14bn.
Excluding
money market flows and associates, net new
money was USD 5bn.
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
Investment Bank
26
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
189
(15)
17
Capital Markets
489
612
683
(20)
(28)
Global Banking
710
872
872
(19)
(19)
Execution Services
1
517
471
402
10
28
Derivatives & Solutions
1
1,291
683
934
89
38
Financing
665
723
542
(8)
23
Global Markets
2,473
1,877
1,878
32
32
of which: Equities
1,806
1,448
1,353
25
33
of which: Foreign Exchange, Rates and Credit
667
429
525
55
27
Total revenues
3,183
2,749
2,751
16
16
Credit loss expense / (release)
35
63
32
(45)
10
Operating expenses
2,427
2,207
2,164
10
12
Business division operating profit / (loss) before tax
722
479
555
51
30
Underlying results
Total revenues as reported
3,183
2,749
2,751
16
16
of which: PPA effects
2
138
202
293
(32)
(53)
of which: PPA effects recognized in Global Banking revenue line
147
197
288
(26)
(49)
Total revenues (underlying)
3
3,045
2,547
2,458
20
24
Credit loss expense / (release)
35
63
32
(45)
10
Operating expenses as reported
2,427
2,207
2,164
10
12
of which: integration-related expenses
3
112
174
143
(36)
(21)
Operating expenses (underlying)
3
2,314
2,032
2,022
14
14
of which: expenses for litigation, regulatory and similar matters
20
12
(1)
74
Business division operating profit / (loss) before tax as reported
722
479
555
51
30
Business division operating profit / (loss) before tax (underlying)
3
696
452
404
54
72
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
3
30.1
n.m.
12.7
Cost / income ratio (%)
3
76.2
80.3
78.7
Average attributed equity (USD bn)
4
17.7
17.3
17.0
2
4
Return on attributed equity (%)
3,4
16.3
11.1
13.1
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
3
72.2
n.m.
(17.8)
Cost / income ratio (%)
3
76.0
79.8
82.3
Return on attributed equity (%)
3,4
15.8
10.5
9.5
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 Includes accretion of PPA adjustments on financial
instruments and other PPA effects.
3 Refer to “Alternative performance measures”
in the appendix to this report for the definition and calculation method.
4 Refer to the “Equity attribution” section of this report for more information about the equity attribution framework.
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
Investment Bank
27
Results: 1Q25 vs 1Q24
Profit before tax increased
by USD 167m, or 30%, to
USD 722m, mainly due to
higher total revenues, partly
offset
by higher
operating expenses. Underlying
profit before
tax was
USD 696m, an
increase of
72%, after
excluding
USD 138m of purchase price allocation (PPA) effects
and USD 112m of integration-related expenses.
Total revenues
Total
revenues increased by USD 432m, or
16%, to USD 3,183m, due
to higher revenues in Global
Markets, partly
offset by lower revenues in Global Banking, and included an overall USD 155m
decrease in PPA
effects. Excluding
these effects, underlying total revenues were USD 3,045m, an increase of
24%.
Global Banking
Global Banking revenues decreased by USD 162m, or 19%, to
USD 710m, and included a USD 141m decrease in
accretion of PPA
adjustments on financial instruments and
other PPA
effects. Excluding such
accretion and other
effects, underlying Global Banking revenues were USD 564m, a decrease of
4%.
Advisory revenues
increased by
USD 32m, or
17%, to
USD 221m, mainly
due to
higher merger
and acquisition
transaction revenues.
Capital Markets revenues decreased by USD 194m, or 28%, to USD 489m, and included a USD 141m decrease in
accretion of PPA
adjustments on financial
instruments and other
PPA effects. Excluding
such accretion and
other
effects, underlying Capital
Markets revenues decreased
by USD 52m,
or 13%,
largely driven
by lower
Leveraged
Capital Markets revenues.
Global Markets
Global
Markets
revenues
increased
by
USD 595m,
or
32%,
to
USD 2,473m,
driven
by
higher
Derivatives
&
Solutions, Financing and Execution Services
revenues.
Execution Services
revenues increased
by USD 115m,
or 28%,
to USD 517m,
mainly driven
by increases
in Cash
Equities across all regions,
due to higher volumes.
Derivatives & Solutions revenues
increased by USD 357m, or
38%, to USD 1,291m, with increases
largely in Equity
Derivatives and Foreign Exchange,
due to increased volatility and higher levels
of client activity.
Financing revenues increased
by USD 123m, or
23%, to USD 665m,
mainly driven by
increases in Prime Brokerage,
supported by higher client balances.
Equities
Global Markets Equities revenues increased by USD 453m, or 33%,
to USD 1,806m, mainly driven by increases in
Equity Derivatives, Cash Equities and Prime Brokerage.
Foreign Exchange, Rates and Credit
Global
Markets
Foreign
Exchange,
Rates
and
Credit
revenues
increased
by
USD 142m,
or
27%,
to
USD 667m,
mainly driven by increases in Foreign Exchange.
Credit loss expense / release
Net credit loss expenses were
USD 35m, compared with net credit loss
expenses of USD 32m in
the first quarter of
2024.
Operating expenses
Operating expenses increased by USD
263m, or 12%, to USD 2,427m,
mainly due to higher
personnel expenses,
and
included
a
USD 31m
decrease
in
integration-related
expenses.
Excluding
integration-related
expenses
of
USD 112m, underlying operating expenses were USD
2,314m, an increase of 14%.
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
Non-core and Legacy
28
Non-core and Legacy
Non-core and Legacy
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
Total revenues
284
(58)
1,001
(72)
Credit loss expense / (release)
7
6
36
13
(80)
Operating expenses
669
858
1,011
(22)
(34)
Operating profit / (loss) before tax
(391)
(923)
(46)
(58)
759
Underlying results
Total revenues as reported
284
(58)
1,001
(72)
Total revenues (underlying)
1
284
(58)
1,001
(72)
Credit loss expense / (release)
7
6
36
13
(80)
Operating expenses as reported
669
858
1,011
(22)
(34)
of which: integration-related expenses
1
191
317
242
(40)
(21)
Operating expenses (underlying)
1
477
541
769
(12)
(38)
of which: expenses for litigation, regulatory and similar matters
7
(20)
(16)
Operating profit / (loss) before tax as reported
(391)
(923)
(46)
(58)
759
Operating profit / (loss) before tax (underlying)
1
(200)
(606)
197
(67)
Performance measures and other information
Average attributed equity (USD bn)
2
7.5
8.7
10.6
(14)
(30)
Risk-weighted assets (USD bn)
34.2
41.4
57.9
(18)
(41)
Leverage ratio denominator (USD bn)
34.9
53.5
119.9
(35)
(71)
1 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation method.
2 Refer to the “Equity attribution” section of this report for
more information about the equity
attribution framework.
Composition of Non-core and Legacy
Total assets
RWA
LRD
USD bn
31.3.25
31.12.24
31.3.25
31.12.24
31.3.25
31.12.24
Exposure category
Equities
1.4
2.6
1.0
0.9
0.9
2.0
Macro
16.9
26.3
3.6
4.4
4.1
10.2
Loans
1.8
3.2
1.8
2.8
1.8
4.0
Securitized products
3.5
7.4
2.9
5.2
3.8
8.8
Credit
0.2
0.2
0.2
0.3
0.2
0.2
High-quality liquid assets
22.9
27.2
22.9
27.2
Operational risk
24.0
27.1
Other
1.2
1.4
0.5
0.7
1.1
1.1
Total
47.9
68.3
34.2
41.4
34.9
53.5
Results: 1Q25 vs 1Q24
Loss before tax
was USD 391m,
compared with
a loss
of USD 46m.
Underlying loss
before tax was
USD 200m, after
excluding integration-related expenses of USD 191m,
compared with underlying profit before tax of USD 197m.
Total revenues
Total
revenues were
USD 284m, a
decrease of
USD 717m, mainly
reflecting lower
net gains
from position
exits,
including a
USD 45m loss
from an
exit from
longevity positions,
and lower
net interest
income from
securitized
products and credit products as a result of a
smaller portfolio. Total
revenues in the first quarter of 2025 included
a gain of USD 97m from the sale of
Select Portfolio Servicing,
the US mortgage servicing business
of Credit Suisse.
Total
revenues in
the first
quarter of
2024 included
a net
gain of
USD 272m, after
accounting for
the purchase
price allocation adjustments recorded at the closing of the acquisition of the
Credit Suisse Group, from the sale of
assets from the former Credit
Suisse securitized products
group to Apollo Management
Holdings and certain other
entities (collectively Apollo).
UBS Group first quarter 2025 report |
UBS business divisions and Group Items |
Non-core and Legacy
29
Credit loss expense / release
Net credit loss expenses were USD 7m, almost entirely reflecting
credit-impaired positions with a small number of
corporate counterparties. These compared with net
credit loss expenses of USD 36m in the first quarter
of 2024.
Operating expenses
Operating
expenses
were
USD 669m,
a
decrease
of
USD 342m,
mainly
due
to
lower
personnel
expenses,
technology expenses,
real estate
costs and
risk management
costs, and
included a
USD 51m decrease
in integration-
related
expenses.
Excluding
integration-related
expenses
of
USD 191m,
underlying
operating
expenses
were
USD 477m, a decrease of 38%.
Risk-weighted assets and leverage ratio denominator:
1Q25 vs 4Q24
The active unwinding of Non-core and Legacy assets resulted in a decrease
in risk-weighted assets (RWA) and the
leverage ratio
denominator (the LRD).
RWA decreased
by USD 7.2bn
to USD 34.2bn, mostly
due to
decreases in
the
securitized
product,
loan
and
macro
portfolios,
which
included
an
increase
in
RWA
related
to
the
implementation of the final
Basel III standards. In
addition, operational risk RWA
decreased by USD 3bn
resulting
from such implementation.
The LRD decreased by USD 18.6bn to
USD 34.9bn, mainly driven by reductions in the
macro, securitized product, high-quality liquid asset and
loan portfolios.
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
(284)
(188)
(355)
51
(20)
Credit loss expense / (release)
(1)
0
(2)
Operating expenses
15
(88)
(33)
Operating profit / (loss) before tax
(299)
(100)
(320)
200
(7)
Underlying results
Total revenues as reported
(284)
(188)
(355)
51
(20)
of which: PPA effects and other integration items
1
30
(4)
(4)
Total revenues (underlying)
2
(314)
(184)
(351)
71
(10)
Credit loss expense / (release)
(1)
0
(2)
Operating expenses as reported
15
(88)
(33)
of which: integration-related expenses
2
3
(1)
1
Operating expenses (underlying)
2
12
(88)
(34)
of which: expenses for litigation, regulatory and similar matters
72
6
0
Operating profit / (loss) before tax as reported
(299)
(100)
(320)
200
(7)
Operating profit / (loss) before tax (underlying)
2
(326)
(96)
(315)
240
3
1
Includes accretion of PPA adjustments on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration.
2 Refer to “Alternative performance measures”
in the appendix to this report for the definition and calculation method.
Results: 1Q25 vs 1Q24
Loss before tax decreased by USD 21m, or 7%, to USD 299m, mainly driven by lower mark-to-market losses from
Group hedging
and own
debt, partly
offset by
an increase
in provisions
for litigation,
regulatory and
similar matters.
In
addition,
the
first
quarter
of
2024
included
a
USD 25m
donation
expense.
Underlying
loss
before
tax
was
USD 326m, after excluding
from total revenues USD 30m
of purchase price allocation
effects and other
integration
items and also excluding
from operating expenses
USD 3m of integration-related
expenses. This compared with
an
underlying loss before tax of USD 315m in the first
quarter of 2024.
Income
from
Group
hedging
and
own
debt,
including
hedge
accounting
ineffectiveness,
was
net
negative
USD 118m, compared with net negative income of USD 191m. 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 Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet
30
Risk, capital, liquidity and
funding, and balance sheet
Management report
Table of contents
31
Risk management and control
31
Credit risk
33
Market risk
34
Country risk
35
Non-financial risk
36
Capital management
38
Total
loss-absorbing capacity
41
Risk-weighted assets
43
Leverage ratio denominator
45
Equity attribution
46
Liquidity and funding management
46
Strategy, objectives and governance
46
Liquidity coverage ratio
46
Net stable funding ratio
47
Balance sheet and off-balance sheet
47
Balance sheet assets
47
Balance sheet liabilities
48
Equity
49
Off-balance sheet
49
Share information and earnings per share
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Risk management and
control
31
Risk management and control
This
section
provides
information
about
key
developments
during
the
reporting
period
and
should
be
read
in
conjunction with
the “Risk
management and
control” section
of the
UBS Group
Annual Report
2024, available
under “Annual
reporting” at
ubs.com/investors
, and
the “Recent
developments” section of
this report
for more
information about the integration of Credit Suisse.
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 35bn compared
with 31 December 2024,
to USD 1,037bn 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 “Group performance” section and “Note
8
Expected credit loss measurement” in the “Consolidated
financial statements” section of this report for more information about credit loss expense / release
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 Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Risk management and
control
32
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
464,710
426,822
1,574
104,477
17,816
21,271
1,036,669
of which: loans and advances to customers (on-balance sheet)
295,424
281,423
10
17,676
1,195
521
596,249
of which: guarantees and irrevocable loan commitments (off-balance sheet)
20,082
44,769
11
35,088
1,345
20,755
122,049
Committed unconditionally revocable credit lines
3
78,171
65,381
0
546
4
0
144,102
Traded products exposure, gross
2,4
15,461
3,303
0
35,437
54,201
of which: over-the-counter derivatives
11,835
2,875
0
10,061
24,771
of which: securities financing transactions
18
0
0
16,107
16,126
of which: exchange-traded derivatives
3,607
428
0
9,269
13,304
Total credit-impaired exposure, gross
1
1,391
3,825
0
609
959
0
6,784
of which: stage 3
1,316
3,471
0
565
63
0
5,415
of which: PCI
75
354
0
45
896
0
1,369
Total allowances and provisions for expected credit losses
289
1,588
0
421
326
5
2,629
of which: stage 1
106
276
0
103
3
5
493
of which: stage 2
56
247
0
151
2
0
455
of which: stage 3
120
1,024
0
164
49
0
1,357
of which: PCI
6
42
0
3
273
0
324
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
452,053
424,994
1,530
72,964
33,150
17,478
1,002,169
of which: loans and advances to customers (on-balance sheet)
295,856
266,869
9
17,497
1,163
551
581,944
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
79,460
65,749
0
452
4
0
145,665
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
1,397
3,714
0
595
930
0
6,637
of which: stage 3
1,324
3,358
0
549
69
0
5,300
of which: PCI
73
356
0
46
861
0
1,337
Total allowances and provisions for expected credit losses
292
1,512
0
379
318
6
2,507
of which: stage 1
97
269
0
110
4
6
487
of which: stage 2
68
247
0
142
2
0
459
of which: stage 3
121
960
0
124
48
0
1,253
of which: PCI
7
36
0
2
264
0
309
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 at any time but expose UBS to credit risk if the client has the ability to draw the facility before UBS can take action. These commitments are subject to expected credit loss
requirements.
4 As counterparty risk for traded products is managed at the counterparty level, no further split between exposures in the
Investment Bank, Non-core and Legacy, and Group Items is provided.
Collateralization of Loans and advances to customers
1
Global Wealth Management
Personal & Corporate Banking
USD m, except where indicated
31.3.25
31.12.24
31.3.25
31.12.24
Secured by collateral
289,609
290,053
246,679
232,913
Residential real estate
101,415
106,124
196,775
184,404
Commercial / industrial real estate
9,218
9,312
37,903
36,682
Cash
28,025
28,418
2,732
2,624
Equity and debt instruments
124,274
120,223
2,598
2,778
Other collateral
2
26,677
25,977
6,671
6,424
Subject to guarantees
1,723
1,715
7,092
6,886
Uncollateralized and not subject to guarantees
4,092
4,088
27,651
27,070
Total loans and advances to customers, gross
295,424
295,856
281,423
266,869
Allowances
(212)
(221)
(1,334)
(1,271)
Total loans and advances to customers, net of allowances
295,212
295,635
280,089
265,598
Collateralized loans and advances to customers as a percentage of
total loans and advances to customers, gross (%)
98.0
98.0
87.7
87.3
1 Collateral arrangements generally incorporate a range of collateral, including
cash, equity and debt instruments, real estate, and other collateral. For the
purposes of this disclosure, UBS applies a risk-based approach
that generally prioritizes
collateral according to
its liquidity profile.
In the case
of loan facilities
with funded and
unfunded elements,
the collateral is
first allocated to
the funded element.
For legacy Credit
Suisse
infrastructure, a
risk-based approach is
applied that generally
prioritizes real estate
collateral and prioritizes
other collateral according
to its liquidity
profile. In the
case of loan
facilities with funded
and unfunded
elements, the collateral
is proportionately allocated.
2 Includes but is not limited
to life insurance contracts,
rights in respect of
subscription or capital commitments
from fund partners,
inventory, gold and
other
commodities.
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Risk management and
control
33
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
has adopted
the standardized
approach
for all
legal entities
regulated by
the Swiss
Financial Market
Supervisory Authority
(FINMA), including
the UBS
Group.
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.
The UBS
Group 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
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 Group management
VaR predominantly reflect the portfolio
in Non-core and Legacy. These
positions continue to be managed on legacy Credit
Suisse
infrastructure based on legacy Credit Suisse management VaR methodology until full migration of these positions to UBS infrastructure or the liquidation of the positions. This process is ongoing, and the management
VaR of the legacy Credit Suisse components is expected to continue decreasing over
time.
2 Statistics at individual levels may not be summed
to deduce the corresponding aggregate figures. The minima and maxima
for each level may occur on different days,
and, likewise, the VaR
for each business division or risk type,
being driven by the extreme loss tail of
the corresponding distribution of simulated profits and
losses for that
business division or risk type, may well
be driven by different days in the historical
time series, rendering invalid
the simple summation of figures to arrive
at the aggregate total.
3 The difference between the
sum
of the standalone VaR
for the business divisions and
Group Items and the total
VaR.
4 As the minima and
maxima for different business
divisions and Group Items occur
on different days, it
is not meaningful to
calculate a portfolio diversification effect.
Economic value of equity and net interest income
sensitivity
The economic value of equity
(EVE) sensitivity in the UBS
Group banking book to a
+1-basis-point parallel shift in
yield curves
was negative
USD 38.7m as
of 31 March
2025, compared
with negative
USD 37.3m 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 the UBS Group increased during the first quarter of 2025, predominantly driven by issuances
of AT1 capital instruments during the quarter.
The majority of our interest rate risk in the
banking book (IRRBB) as of 31 March 2025 was a reflection of the
net
asset duration
that we ran
to offset
our modeled
sensitivity of
net USD 30.3m
(31 December 2024: USD 29.4m)
assigned
to
our
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).
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Risk management and
control
34
In addition to
the aforementioned
sensitivity, we
calculate the
six interest
rate shock
scenarios prescribed
by FINMA.
The “Parallel up” scenario,
assuming all positions
were measured at
fair value, was
the most severe as
of 31 March
2025
and
would
have
resulted
in
a
change
in
EVE
of
negative
USD 7.1bn,
or
8.1%,
of
our
tier 1
capital
(31 December
2024:
negative
USD 6.7bn,
or
7.6%),
which
is
well
below
the
15%
threshold
as
per
the
BCBS
supervisory outlier test for high levels of IRRBB.
The immediate effect
on our tier 1
capital in the
“Parallel up” scenario
as of 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
our
banking
book
is
accrual
accounted
or
subject
to
hedge
accounting.
The
“Parallel
up”
scenario would subsequently have a positive effect
on net interest income, assuming a constant
balance sheet.
As the overall interest rate risk sensitivity shows a greater
impact from slower asset repricing compared with faster
liabilities repricing,
the “Parallel
down“ scenario
was the
most beneficial
as of
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 our tier 1 capital.
›
Refer to “Interest rate risk in the banking book” in the “Risk management and control”
section of the UBS Group
Annual Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more information about the
management of interest rate risk in the banking book
›
Refer to “Sensitivity to interest rate movements” in the “Group performance” section of this report for more
information about the effects of increases in interest rates on the net interest income of our banking book
Interest rate risk – banking book
31.3.25
USD m
Effect on EVE
1
– FINMA
Effect on EVE
1
– BCBS
Scenarios
CHF
EUR
GBP
USD
Other
Total
Additional tier 1 (AT1)
capital instruments
Total
+1 bp
(9.9)
(1.6)
(0.3)
(26.6)
(0.3)
(38.7)
7.4
(31.3)
Parallel up
2
(1,449.0)
(303.5)
(62.3)
(5,182.3)
(79.6)
(7,076.8)
1,334.4
(5,742.4)
Parallel down
2
1,541.5
335.4
74.9
5,455.0
81.1
7,487.8
(1,593.0)
5,894.7
Steepener
3
(786.0)
(21.3)
(15.2)
(1,399.0)
(20.0)
(2,241.6)
297.3
(1,944.3)
Flattener
4
519.3
(28.6)
3.3
199.5
3.2
696.8
7.9
704.6
Short-term up
5
(83.8)
(119.7)
(19.3)
(1,946.8)
(27.4)
(2,197.0)
587.6
(1,609.4)
Short-term down
6
53.7
119.1
19.2
2,048.1
28.0
2,268.1
(611.7)
1,656.4
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)
(1.4)
(0.3)
(24.6)
(0.5)
(37.3)
5.5
(31.7)
Parallel up
2
(1,509.7)
(263.7)
(65.5)
(4,758.9)
(95.6)
(6,693.4)
1,000.4
(5,693.0)
Parallel down
2
1,643.9
295.9
76.2
5,068.6
101.1
7,185.8
(1,173.0)
6,012.8
Steepener
3
(749.1)
(10.4)
(12.7)
(1,255.4)
(9.7)
(2,037.3)
168.0
(1,869.3)
Flattener
4
464.0
(33.3)
(0.2)
161.0
(10.5)
581.0
61.0
642.1
Short-term up
5
(149.4)
(112.2)
(22.8)
(1,820.7)
(46.1)
(2,151.1)
484.4
(1,666.7)
Short-term down
6
132.6
112.2
23.3
1,931.8
46.6
2,246.5
(504.4)
1,742.2
1 Economic value
of equity.
2 Rates across all
tenors move by ±150
bps for Swiss
franc, ±200 bps for
euro and US
dollar, and
±250 bps for pound
sterling.
3 Short-term rates
decrease and long-term rates
increase.
4 Short-term rates increase and long-term rates decrease.
5 Short-term rates increase more than long-term rates.
6 Short-term rates decrease more than long-term rates.
Country risk
We remain
watchful of
a range
of geopolitical
developments and
political changes
in a
number of
countries, as
well as
global trade
relations, including
policies related
to tariffs,
and international
tensions from
the Russia–Ukraine
war.
We also continue to monitor conflicts in the Middle
East. As of 31 March 2025, our direct
exposure to Israel
was less than
USD 0.5bn and our
direct exposure
to Gulf Cooperation
Council countries was less
than USD 5bn,
while our direct exposure
to Egypt and Jordan
was limited, and
there was no direct
exposure to Iran, Iraq,
Lebanon
or Syria. Our direct exposure
to Russia as of 31 March
2025 was less than USD 0.5bn, and our
direct exposure to
Belarus
and
Ukraine
remained
immaterial.
Potential
second-order
impacts,
such
as
European
energy
security,
continue to be monitored.
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Risk management and
control
35
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.
We continue to monitor ongoing trade policy
disputes, as well as economic and political
developments in addition
to those mentioned above. As of 31 March 2025, our exposure to emerging market countries was less than 10%
of our total country exposure and mainly to
certain countries in Asia.
›
Refer to the “Risk management and control” section of the UBS Group Annual Report 2024, available under
“Annual reporting” at
ubs.com/investors
, for more information
Non-financial risk
Compliance risk
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
UBS 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.
Operational risk
There is an increased risk of cyber-related operational disruption
to business activities at
our locations and those of
third-party suppliers due
to operating a
more complex set
of legal entities since
the acquisition of
Credit Suisse and
the increasingly dynamic threat environment, 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.
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Risk management and
control
36
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 Group AG
on
a
consolidated
basis
and
focus
on
key
developments during
the reporting
period and
information in
accordance with
the Basel III
framework, as
applicable
to Swiss systemically relevant banks (SRBs).
They should be read in conjunction
with “Capital management” in the
“Capital, liquidity and funding,
and balance sheet” section
of the UBS Group
Annual Report 2024, available
under
“Annual
reporting”
at
ubs.com/investors
,
which
provides
more
information
about
our
capital
management
objectives, planning and activities, as
well as the Swiss SRB total loss-absorbing capacity
(TLAC) framework.
In Switzerland, the
amendments to the Capital
Adequacy Ordinance (the CAO) that
incorporate the final Basel III
standards into
Swiss law,
including the
five new
ordinances that
contain the
implementing provisions
for the
revised
CAO, entered into force on 1 January 2025.
UBS Group AG
is
a
holding
company
and
conducts
substantially
all
of
its
operations
through
UBS AG
and
subsidiaries thereof. UBS Group AG and UBS AG contribute a significant portion of their respective capital to, and
provide substantial
liquidity to,
such subsidiaries.
Many of
these subsidiaries
are subject
to regulations
requiring
compliance with minimum capital, liquidity
and similar requirements.
›
Refer to the 31 March 2025 Pillar 3 Report, which will be available as of 8 May 2025 under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about additional regulatory disclosures for UBS Group AG on a
consolidated basis, as well as the significant regulated subsidiaries and sub-groups of UBS Group AG
›
Refer to the
UBS AG first
quarter 2025
report, which
will be available
as of 8 May
2025 under
“Quarterly
reporting” at
ubs.com/investors
, for more information
about capital
and other
regulatory
information
for UBS AG
consolidated,
in
accordance
with the Basel
III framework,
as applicable
to Swiss SRBs
›
Refer to “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 Group risk-weighted
assets (RWA) and leverage ratio denominator (LRD), refer to “Risk-weighted assets” and “Leverage ratio
denominator” in this section
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Capital management
37
We are
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 below provides
the RWA-
and LRD-based requirements
and
information as of 31 March 2025.
Effective 1 January 2025,
a Pillar 2 capital
add-on for uncollateralized
exposures to hedge
funds, private equity
and
family offices has been introduced.
This resulted in an increase of
16 basis points in the RWA-based
going concern
capital requirement as of 31 March 2025.
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
14.91
1
72,044
5.00
1
78,079
Common equity tier 1 capital
10.56
2
51,026
3.50
3
54,655
of which: minimum capital
4.50
21,747
1.50
23,424
of which: buffer capital
5.50
26,580
2.00
31,232
of which: countercyclical buffer
0.44
2,145
Maximum additional tier 1 capital
4.35
2
21,019
1.50
23,424
of which: additional tier 1 capital
3.50
16,915
1.50
23,424
of which: additional tier 1 buffer capital
0.80
3,866
Eligible going concern capital
Total going concern capital
18.18
87,837
5.62
87,837
Common equity tier 1 capital
14.31
69,152
4.43
69,152
Total loss-absorbing additional tier 1 capital
3.87
18,684
1.20
18,684
of which: high-trigger loss-absorbing additional tier 1 capital
3.87
18,684
1.20
18,684
Required gone concern capital
Total gone concern loss-absorbing capacity
4,5,6
10.73
7
51,831
3.75
7
58,559
of which: base requirement including add-ons for market share and LRD
10.73
51,831
3.75
58,559
Eligible gone concern capital
Total gone concern loss-absorbing capacity
20.55
99,331
6.36
99,331
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 senior unsecured debt
20.51
99,126
6.35
99,126
Total loss-absorbing capacity
Required total loss-absorbing capacity
25.63
123,876
8.75
136,639
Eligible total loss-absorbing capacity
38.73
187,168
11.99
187,168
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
483,276
Leverage ratio denominator
1,561,583
1 Includes applicable
add-ons of
1.60% for
risk-weighted assets
(RWA) and
0.50% for leverage
ratio denominator
(LRD), of
which 16
basis points
for RWA
reflect the 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 Our CET1 leverage
ratio requirement of
3.50% consists of
a 1.5% base
requirement, a 1.5%
base buffer capital
requirement, a 0.25% LRD
add-on requirement and
a
0.25% market share add-on requirement
based on our Swiss credit business.
4 A maximum of 25% of the gone
concern requirements can be met with
instruments that have a remaining maturity
of between one
and two years. Once at least 75%
of the minimum gone concern requirement has been met with
instruments that have a remaining maturity of greater
than two years, all instruments that have a
remaining maturity
of between one and two years remain eligible to be included in the total gone concern capital.
5 From 1 January 2023, the resolvability discount on the
gone concern capital requirements for systemically important
banks (SIBs) has been replaced with reduced base gone concern capital requirements equivalent to 75% of the total going concern requirements (excluding countercyclical buffer requirements and the Pillar 2 add-on).
6 As of July
2024, the Swiss
Financial Market Supervisory
Authority (FINMA) has
the authority to impose
a surcharge of
up to 25% of
the total going
concern capital requirements (excluding
countercyclical buffer
requirements and the Pillar 2 add-on) should obstacles to an SIB’s resolvability be identified
in future resolvability assessments.
7 Includes applicable add-ons of 1.08% for RWA and 0.38% for LRD.
Additional capital requirements for
UBS Group AG consolidated under current
requirements
As a result of the acquisition of the Credit Suisse
Group in 2023, the capital add-ons for market share
and LRD for
UBS Group AG consolidated will increase commensurate with the Group’s increased market
share and higher LRD
after
the
acquisition.
We
currently
estimate
that
this
will
add
around
USD 10bn
to
the
Group’s
tier 1
capital
requirement, when
fully phased
in. The phase-in
of the
increased capital
requirements will
commence from
the end
of 2025 and will be completed by the beginning
of 2030, at the latest.
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Capital management
38
Total loss-absorbing capacity
The table below provides Swiss SRB going and gone concern information based on the Swiss SRB
framework and
requirements that are discussed under “Capital management” in the “Capital, liquidity and funding, and
balance
sheet” section of
the UBS Group
Annual Report 2024,
available under “Annual reporting”
at
ubs.com/investors
.
Changes
to
the
Swiss
SRB
framework
and
requirements
after
the
publication
of
our
Annual
Report
2024
are
described above.
Swiss SRB going and gone concern information
USD m, except where indicated
31.3.25
31.12.24
Eligible going concern capital
Total going concern capital
87,837
87,739
Total tier 1 capital
87,837
87,739
Common equity tier 1 capital
69,152
71,367
Total loss-absorbing additional tier 1 capital
18,684
16,372
of which: high-trigger loss-absorbing additional tier 1 capital
18,684
15,126
of which: low-trigger loss-absorbing additional tier 1 capital
1,245
Eligible gone concern capital
Total gone concern loss-absorbing capacity
99,331
97,655
Total tier 2 capital
205
207
of which: non-Basel III-compliant tier 2 capital
205
207
TLAC-eligible senior unsecured debt
99,126
97,449
Total loss-absorbing capacity
Total loss-absorbing capacity
187,168
185,394
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
483,276
498,538
Leverage ratio denominator
1,561,583
1,519,477
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
18.2
17.6
of which: common equity tier 1 capital ratio
14.3
14.3
Gone concern loss-absorbing capacity ratio
20.6
19.6
Total loss-absorbing capacity ratio
38.7
37.2
Leverage ratios (%)
Going concern leverage ratio
5.6
5.8
of which: common equity tier 1 leverage ratio
4.4
4.7
Gone concern leverage ratio
6.4
6.4
Total loss-absorbing capacity leverage ratio
12.0
12.2
Total loss-absorbing capacity and movement
Our TLAC increased by USD 1.8bn to USD 187.2bn
in the first quarter of 2025.
Going concern capital and movement
Our
going
concern
capital
increased
by
USD 0.1bn
to
USD 87.8bn.
Our
common
equity
tier 1
(CET1)
capital
decreased by USD 2.2bn to USD 69.2bn, mainly as operating profit before tax of USD 2.1bn and foreign currency
translation gains
of USD 0.8bn
were
more
than offset
by a
net share
repurchase
effect
of USD 3.0bn,
dividend
accruals of
USD 0.8bn, current
tax expenses
of USD 0.5bn
and a
negative effect
from compensation-
and own-
share-related capital components
of USD 0.5bn.
The net share
repurchase effect of
USD 3.0bn reflects actual
share
repurchases
of
USD 0.5bn made
under
our
2024
share
repurchase
program
in
the
first
quarter
of
2025
and
a
USD 2.5bn capital reserve for expected future share repurchases.
›
Refer to “Share information and earnings per share” in this section for more information about our share
repurchase programs
Our loss-absorbing additional
tier 1 (AT1) capital
increased by USD 2.3bn to
USD 18.7bn, 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 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.
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Capital management
39
Gone concern loss-absorbing capacity and movement
Our total gone concern loss-absorbing capacity increased by USD 1.7bn to USD 99.3bn and included
USD 99.1bn of
TLAC-eligible
senior
unsecured
debt instruments.
The increase
of USD
1.7bn
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 of capital and
senior unsecured debt instruments and about key features and terms and conditions of capital instruments
Loss-absorbing capacity and leverage ratios
Our CET1 capital
ratio was broadly
unchanged at 14.3%,
reflecting a USD 2.2bn
decrease in CET1 capital
offset by
a USD 15.3bn decrease in RWA.
Our CET1
leverage ratio
decreased to
4.4% from
4.7%, reflecting
a USD 2.2bn
decrease in
CET1 capital
and a
USD 42.1bn increase in the LRD.
Our going concern
capital ratio increased
to 18.2% from
17.6%, largely reflecting
a USD 15.3bn decrease
in RWA.
Our going concern leverage
ratio decreased to 5.6%
from 5.8%, largely reflecting
a USD 42.1bn increase
in the LRD.
Our
gone
concern
loss-absorbing
capacity
ratio
increased
to
20.6%
from
19.6%,
due
to
the
aforementioned
decrease in RWA and an increase in gone concern
loss-absorbing capacity of USD 1.7bn.
Our gone concern leverage ratio
was stable at 6.4%
as the aforementioned increase in
the LRD was offset
by an
increase in gone concern loss-absorbing capacity
of USD 1.7bn.
Swiss SRB total loss-absorbing capacity movement
USD m
Going concern capital
Swiss SRB
Common equity tier 1 capital as of 31.12.24
71,367
Operating profit / (loss) before tax
2,132
Current tax (expense) / benefit
(460)
Foreign currency translation effects, before tax
770
Share repurchase program
(506)
Capital reserve for expected future share repurchases
(2,500)
Compensation-
and own-share-related capital components
(453)
Eligible deferred tax assets on temporary differences (incl. excess
over threshold)
(196)
Other
1
(1,003)
Common equity tier 1 capital as of 31.3.25
69,152
Loss-absorbing additional tier 1 capital as of 31.12.24
16,372
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
562
Loss-absorbing additional tier 1 capital as of 31.3.25
18,684
Total going concern capital as of 31.12.24
87,739
Total going concern capital as of 31.3.25
87,837
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
97,449
Issuance of TLAC-eligible senior unsecured debt
3,046
Call of TLAC-eligible senior 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
2,510
TLAC-eligible unsecured debt as of 31.3.25
99,126
Total gone concern loss-absorbing capacity as of 31.12.24
97,655
Total gone concern loss-absorbing capacity as of 31.3.25
99,331
Total loss-absorbing capacity
Total loss-absorbing capacity as of 31.12.24
185,394
Total loss-absorbing capacity as of 31.3.25
187,168
1 Includes dividend accruals for 2025 (negative USD 0.8bn) and movements related to other items.
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Capital management
40
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
87,590
85,574
Equity attributable to non-controlling interests
(405)
(494)
Defined benefit plans, net of tax
(949)
(833)
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
(1,059)
(803)
Goodwill, net of tax
1
(5,726)
(5,702)
Intangible assets, net of tax
(697)
(702)
Compensation-related components (not recognized in net profit)
(2,656)
(2,800)
Expected losses on advanced internal ratings-based portfolio less provisions
(578)
(568)
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
895
1,178
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
(2,835)
(2,835)
Capital reserve for expected future share repurchases
(2,500)
Other
(718)
2
(25)
Total common equity tier 1 capital
69,152
71,367
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 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 2.4bn as
of 31
March 2025
(31 December
2024: USD 22bn
and USD 2.4bn,
respectively)
and
decreased
our
CET1
capital
ratio
by
14 basis
points
(31
December
2024:
14 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 2.2bn (31 December
2024: USD 20bn and
USD 2.2bn, respectively) and
increased our CET1 capital ratio by 13 basis points (31
December 2024: 14 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 13 basis points (31 December
2024: 14 basis points).
The aforementioned
sensitivities do
not consider
foreign currency
translation effects
related to
defined benefit
plans
other than those related to the currency
translation of the net equity of foreign operations.
›
Refer to “Active management of sensitivity to foreign exchange movements” under “Capital management” in the
“Capital, liquidity and funding, and balance sheet” section of the UBS Group Annual Report 2024, available under
“Annual reporting” at
ubs.com/investors
, for more information
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Capital management
41
Risk-weighted assets
During
the
first
quarter
of
2025,
RWA
decreased
by
USD 15.3bn
to
USD 483.3bn,
driven
by
an
USD 11.4bn
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 5.9bn 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
292.2
5.5
(6.1)
(1.1)
(8.2)
282.3
Non-counterparty-related risk
3
33.7
0.4
(0.8)
33.3
Market risk
27.2
6.5
(2.3)
31.4
Operational risk
145.4
(9.0)
136.4
Total
498.5
5.9
(8.6)
(1.1)
(11.4)
483.3
1 Includes the Pillar 3 categories “Asset size”, “Credit
quality of counterparties”, “Acquisitions and disposals”
and “Other”. For more information, refer to the 31 March 2025 Pillar 3 Report,
which will be available
as of 8
May 2025
under “Pillar 3
disclosures” at ubs.com/investors.
2 Includes settlement
risk, credit
valuation adjustments,
equity and investments
in funds exposures
in the
banking book, and
securitization
exposures in the banking book.
3 Non-counterparty-related risk includes deferred tax assets recognized for temporary differences,
property, equipment, software and other items.
Credit and counterparty credit risk
Credit and counterparty credit risk RWA decreased by
USD 9.9bn to USD 282.3bn as of 31 March 2025, driven by
an
USD 8.2bn
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 5.5bn 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 impact
from
the implementation
of the
final Basel III
standards on
credit
and counterparty
credit risk RWA of
USD 6.1bn 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 5.3bn,
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 0.8bn,
mainly
due
to
lower
RWA
from
derivatives,
partly
offset
by
higher RWA from loans and loan commitments.
–
Group Items RWA
decreased by USD 0.8bn,
following higher allocation
of high-quality liquid
assets (HQLA) to
business divisions.
–
Personal & Corporate Banking RWA decreased
by USD 0.5bn.
–
Asset Management RWA increased by USD 0.2bn.
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 31 March 2025 Pillar 3 Report, which will be available as of 8 May 2025 under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
›
Refer to “Credit risk” in the “Risk management and control” section of this report for more information
›
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 Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Capital management
42
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 implementation 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 “Note 14 Provisions and contingent liabilities” in the “Consolidated financial statements” 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 implementation of the final Basel III standards
Outlook
We expect RWA developments with regard to model updates and methodology changes to be broadly flat during
the second quarter of 2025.
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Capital management
43
Risk-weighted assets, by business division and Group Items
USD bn
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Manage-
ment
Investment
Bank
Non-core and
Legacy
Group
Items
Total
RWA
31.3.25
Credit and counterparty credit risk
1
96.1
115.4
6.9
53.1
6.8
3.9
282.3
Non-counterparty-related risk
2
6.5
2.9
0.7
4.2
0.8
18.0
33.3
Market risk
0.8
0.1
27.9
2.4
0.1
31.4
Operational risk
60.4
18.5
6.5
23.8
24.0
3.2
136.4
Total
163.8
137.0
14.1
109.0
34.2
25.2
483.3
31.12.24
Credit and counterparty credit risk
1
93.6
120.6
7.2
56.2
10.7
3.9
292.2
Non-counterparty-related risk
2
6.4
2.9
0.7
3.6
1.5
18.7
33.7
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
165.8
143.0
15.1
106.4
41.4
26.8
498.5
31.3.25 vs 31.12.24
Credit and counterparty credit risk
1
2.5
(5.1)
(0.3)
(3.1)
(3.8)
0.0
(9.9)
Non-counterparty-related risk
2
0.2
0.1
0.0
0.6
(0.6)
(0.7)
(0.5)
Market risk
(1.9)
(0.2)
0.0
5.8
0.3
0.1
4.2
Operational risk
(2.8)
(0.8)
(0.8)
(0.7)
(3.0)
(1.0)
(9.0)
Total
(2.0)
(6.0)
(1.0)
2.6
(7.2)
(1.5)
(15.3)
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 17.6bn; 31
December 2024: USD
18.1bn), as well
as property,
equipment, software and
other items (31 March
2025: USD 15.7bn;
31 December 2024: USD 15.7bn).
Leverage ratio denominator
During the
first quarter
of 2025,
the LRD
increased by
USD 42.1bn to
USD 1,561.6bn,
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 26.5bn,
partly offset by asset size and other movements
of USD 13.2bn.
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
1,140.6
21.2
(1.9)
23.0
1,182.9
Derivative exposures
132.0
1.5
37.5
(21.2)
149.8
Securities financing transaction exposures
177.1
2.6
(0.2)
(14.7)
164.7
Off-balance sheet items
1
69.8
1.1
(6.5)
(0.2)
64.2
Total exposures
1,519.5
26.5
28.8
(13.2)
1,561.6
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 Group
fourth quarter
2024 report,
available under
“Quarterly reporting”
at ubs.com/investors,
for more
information about previously published disclosure.
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
2025.
The
increase
was
mainly
in
derivatives,
as
a
result
of
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.
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Capital management
44
On-balance sheet exposures (excluding derivatives and securities financing transactions)
increased by USD 23.0bn,
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 21.2bn,
mainly
due
to
mark-to-market
movements
in
foreign
currency
contracts and lower trading volumes in the
Investment Bank.
Securities financing transaction 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
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
487.8
403.5
4.2
252.3
23.4
11.7
1,182.9
Derivative exposures
25.9
6.0
0.0
113.8
4.0
0.0
149.8
Securities financing transaction exposures
57.0
37.1
0.1
63.5
6.8
0.3
164.7
Off-balance sheet items
1
18.0
29.0
0.1
16.1
0.6
0.3
64.2
Total exposures
588.7
475.6
4.3
445.8
34.9
12.3
1,561.6
31.12.24
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
1
474.7
397.5
4.2
211.5
39.9
12.8
1,140.6
Derivative exposures
11.9
5.6
0.0
104.6
9.5
0.4
132.0
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
30.9
0.1
18.2
1.8
0.2
69.8
Total exposures
576.6
478.9
4.5
393.5
53.5
12.5
1,519.5
31.3.25 vs 31.12.24
On-balance sheet exposures (excluding derivatives and securities
financing transactions)
13.1
5.9
0.0
40.9
(16.5)
(1.1)
42.3
Derivative exposures
14.0
0.4
0.0
9.3
(5.5)
(0.4)
17.7
Securities financing transaction exposures
(14.6)
(7.7)
0.0
4.2
4.5
1.2
(12.3)
Off-balance sheet items
(0.4)
(1.9)
(0.1)
(2.1)
(1.2)
0.0
(5.6)
Total exposures
12.1
(3.3)
(0.1)
52.3
(18.7)
(0.2)
42.1
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 Group
fourth quarter
2024 report,
available under
“Quarterly reporting”
at ubs.com/investors,
for more
information about previously published disclosure.
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Capital management
45
Equity attribution
Under our equity attribution
framework, tangible equity
is attributed based on
equally weighted average
RWA and
average LRD, which both include resource allocations from our Group functions to the business divisions. Average
RWA and LRD are converted
to CET1 capital equivalents
using target capital ratios.
If the attributed tangible equity
calculated under the weighted-driver approach is less than
the CET1 capital equivalent of risk-based capital (RBC)
for any business division,
the CET1 capital equivalent of RBC is used as a floor for that
business division.
The floor
was applicable for Asset Management and
Non-core and Legacy in all of the periods shown
below.
In addition to
tangible equity,
we allocate equity
to the business
divisions to
support goodwill
and intangible
assets.
We
also
allocate
to
the
business
divisions
attributed
equity
related
to
CET1
capital
deduction
items
that
are
attributable to divisional activities, such as compensation-related components or expected losses on the advanced
internal ratings-based portfolio less provisions. We attribute all remaining capital deduction items to Group Items.
These primarily
include equity
related to deferred
tax assets,
accruals for shareholder
returns, and unrealized
gains /
losses from cash flow hedges.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about movements in
equity attributable to shareholders
Average attributed equity
For the quarter ended
USD bn
31.3.25
31.12.24
31.3.24
1
Global Wealth Management
33.6
33.6
33.1
Personal & Corporate Banking
20.1
21.3
21.9
Asset Management
2.7
2.8
2.6
Investment Bank
17.7
17.3
17.0
Non-core and Legacy
7.5
8.7
10.6
Group Items
2
4.6
2.3
0.0
Average equity attributed to business divisions and Group Items
86.1
86.1
85.2
1 Comparative-period information has been revised.
Refer to “Note 2 Accounting for the acquisition
of the Credit Suisse Group” in the
“Consolidated financial statements” section of
the UBS Group Annual Report
2024, available under “Annual reporting” at
ubs.com/investors, for more information about the relevant
adjustments.
2 Includes average attributed equity related to capital deduction items for deferred tax
assets,
accruals for
shareholder returns
and unrealized
gains /
losses from
cash flow
hedges. The
increase compared
with the
fourth quarter
of 2024
was mainly
driven by
the capital
reserve for
expected future
share
repurchases.
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Liquidity and funding management
46
Liquidity and funding management
Strategy, objectives and governance
This
section
provides
liquidity
and
funding
management
information
and
should
be
read
in
conjunction
with
“Liquidity and funding
management” in
the “Capital,
liquidity and funding,
and balance sheet”
section of the
UBS
Group
Annual
Report
2024,
available
under
“Annual
reporting”
at
ubs.com/investors
,
which
provides
more
information
about
the
Group’s
strategy,
objectives
and
governance
in
connection
with
liquidity
and
funding
management.
Liquidity coverage ratio
The
quarterly
average
liquidity
coverage
ratio
(the
LCR)
of
the
UBS
Group
decreased
7.4 percentage
points
to
181.0%, remaining
above the
prudential requirement
communicated by
the Swiss
Financial Market
Supervisory
Authority (FINMA). The movement in the quarterly average LCR was primarily driven
by a decrease in high-quality
liquid assets of USD 12.7bn to USD 318.7bn, 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 remained
largely unchanged at
USD 176.2bn,
as higher
outflows from debt
issued at
amortized
cost
and
customer
deposits
were
substantially
offset
by
higher
net
inflows
from
securities
financing
transactions.
›
Refer to the
31 March 2025 Pillar 3 Report, which will be available as of 8 May 2025 under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about the LCR
Liquidity coverage ratio
USD bn, except where indicated
Average 1Q25
1
Average 4Q24
1
High-quality liquid assets
318.7
331.5
Net cash outflows
2
176.2
176.0
Liquidity coverage ratio (%)
3
181.0
188.4
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 the
UBS Group decreased 1.3 percentage points
to 124.2%, remaining above the prudential
requirement communicated by FINMA.
Available stable funding
(ASF) increased by
USD 4.9bn to USD 861.7bn,
mainly driven by
a shift in
client deposit
composition resulting
in
a
more
beneficial ASF
treatment.
Required
stable
funding increased
by
USD 11.3bn to
USD 693.8bn,
primarily
reflecting
higher
lending
assets,
largely
due
to
currency
effects,
partly
offset
by
lower
derivative balances.
›
Refer to the 31 March 2025 Pillar 3 Report, which will be available as of 8 May 2025 under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about the NSFR
Net stable funding ratio
USD bn, except where indicated
31.3.25
31.12.24
Available stable funding
861.7
856.8
Required stable funding
693.8
682.5
Net stable funding ratio (%)
124.2
125.5
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Balance sheet and off-balance
sheet
47
Balance sheet and off-balance sheet
This
section
provides
balance
sheet
and
off-balance sheet
information
and
should
be
read
in
conjunction
with
“Balance sheet
and off-balance
sheet” in
the “Capital,
liquidity and
funding, and
balance sheet”
section of
the
UBS Group
Annual Report
2024, available
under “Annual reporting”
at
ubs.com/investors
, which
provides more
information about the balance sheet and off-balance
sheet positions.
Balances disclosed in this
report represent quarter-end
positions, unless indicated
otherwise. Intra-quarter balances
fluctuate in the ordinary course of business
and may differ from quarter-end positions.
Balance sheet assets (31 March 2025 vs
31 December 2024)
Total assets
were USD 1,543.4bn
as of
31 March 2025,
a decrease
of USD 21.6bn
compared with
31 December
2024.
Derivatives and
cash collateral
receivables on
derivative instruments
decreased by
USD 52.5bn, 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
a USD 16.4bn 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 7.8bn,
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 7.7bn,
mainly reflecting purchases
of HQLA
portfolio securities. Trading
assets increased by
USD 6.1bn, 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
615.3
598.9
3
Securities financing transactions at amortized cost
101.8
118.3
(14)
Trading assets
165.2
159.1
4
Derivatives and cash collateral receivables on derivative instruments
177.0
229.5
(23)
Brokerage receivables
28.7
25.9
11
Other financial assets measured at amortized cost
66.5
58.8
13
Other financial assets measured at fair value
2
105.5
97.7
8
Non-financial assets
51.9
53.6
(3)
Total assets
1,543.4
1,565.0
(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.
Balance sheet liabilities (31 March 2025 vs
31 December 2024)
Total liabilities were USD 1,455.8bn as
of 31 March 2025, a decrease of
USD 23.7bn compared with 31 December
2024.
Derivatives and cash collateral payables on derivative instruments decreased by USD 42.5bn, predominantly in the
Investment
Bank,
primarily
reflecting
the
same
drivers
as
on
the
asset
side.
Customer
deposits
decreased
by
USD 0.9bn, mainly reflecting
net new deposit
outflows
of USD 13.5bn, 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.
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Balance sheet and off-balance
sheet
48
The “Liabilities,
by product
and currency”
table
in this
section provides
more information
about the
Group’s funding
sources.
›
Refer to “Bondholder information” at
ubs.com/investors
for more information about capital and senior debt
instruments
›
Refer to the “Consolidated financial statements” section of this report for more information
Liabilities and equity
As of
% change from
USD bn
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
744.9
745.8
0
Debt issued designated at fair value and long-term debt issued measured
at amortized cost
2
295.4
291.6
1
Trading liabilities
43.1
35.2
22
Derivatives and cash collateral payables on derivative instruments
173.6
216.1
(20)
Brokerage payables
59.9
49.0
22
Other financial liabilities measured at amortized cost
19.1
21.0
(9)
Other financial liabilities designated at fair value
27.2
28.7
(5)
Non-financial liabilities
19.1
23.2
(18)
Total liabilities
1,455.8
1,479.5
(2)
Share capital
0.3
0.3
0
Share premium
10.9
12.0
(9)
Treasury shares
(6.5)
(6.4)
2
Retained earnings
80.0
78.0
3
Other comprehensive income
3
2.4
1.1
122
Total equity attributable to shareholders
87.2
85.1
2
Equity attributable to non-controlling interests
0.4
0.5
(18)
Total equity
87.6
85.6
2
Total liabilities and equity
1,543.4
1,565.0
(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.
Equity (31 March 2025 vs 31 December 2024)
Equity attributable to shareholders increased
by USD 2,106m to USD 87,185m as of
31 March 2025.
The
net
increase
of
USD 2,106m
was
mainly
driven
by
positive
total
comprehensive
income
attributable
to
shareholders
of
USD 3,319m, reflecting
a
net
profit
of
USD 1,692m
and
other
comprehensive
income
(OCI)
of
USD 1,628m. OCI mainly included OCI related to foreign currency translation of USD 768m, cash flow hedge OCI
of USD 545m
and OCI
related to
own credit
on financial
liabilities designated
at fair
value of
USD 279m. In
addition,
deferred share-based
compensation awards
of USD 329m
were expensed
in the
income statement,
increasing share
premium.
These
increases
were
partly
offset
by
net
treasury
share
activity,
which
reduced
equity
by
USD 1,452m,
predominantly due to
the purchasing of
USD 997m of shares
in relation
to employee share-based
compensation
plans and the repurchasing of USD 506m
of shares under our 2024 share repurchase
program.
The payment of the 2024 dividend of USD 0.90 per
share, approved by shareholders at the 2025 Annual General
Meeting, reduced equity attributable to shareholders
by USD 2.9bn in April 2025.
›
Refer to the “Group performance” and “Consolidated financial statements” sections of this report for more
information
›
Refer to “Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital” in
the “Capital management” section of this report for more information about the effects of OCI on common equity
tier 1 capital
›
Refer to the “Share information and earnings per share”
section of this report for more information about our
share repurchase programs
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Balance sheet and off-balance
sheet
49
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
744.9
745.8
301.5
310.3
306.2
297.2
69.5
71.1
of which: demand deposits
223.6
221.8
53.8
54.0
109.6
107.8
33.2
32.8
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
291.2
299.8
172.6
179.4
45.6
46.1
32.3
34.3
Debt issued designated at fair value and long-term debt issued measured
at amortized
cost
2
295.4
291.6
165.9
165.7
42.3
41.5
64.5
62.1
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
173.6
216.1
145.5
182.9
3.3
4.4
16.2
18.0
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
19.1
21.0
9.3
11.7
5.0
3.7
2.3
2.0
Other financial liabilities designated at fair value
27.2
28.7
5.1
4.1
0.0
0.1
2.3
4.3
Non-financial liabilities
19.1
23.2
10.7
13.0
3.3
4.1
2.8
2.8
Total liabilities
1,455.8
1,479.5
732.6
770.7
373.1
362.3
188.6
188.3
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.
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
144.1
145.7
(1)
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.
Share information and earnings per share
UBS Group AG
shares
are
listed
on
the
SIX
Swiss
Exchange
(SIX).
They
are
also
listed
on
the
New
York
Stock
Exchange (the NYSE) as global registered shares. Each share has
a nominal value of USD 0.10. Shares issued were
unchanged in the first quarter of 2025 compared
with the fourth quarter of 2024.
We held 274m shares as of
31 March 2025, of which 168m shares had
been acquired under our 2022 and 2024
share repurchase programs
for cancellation purposes. The remaining 106m shares are primarily held to hedge our
share delivery obligations related to employee
share-based compensation and participation
plans.
Treasury shares
held decreased
by
13m
shares in
the first
quarter of
2025.
This mainly
reflected the
delivery of
treasury shares
under our
share-based compensation
plans,
largely offset
by the
purchasing of
29.4m shares
in
relation to employee share-based compensation
plans and 15.0m shares repurchased under our
2024 program.
Shares
acquired
under
our
2024
program
totaled
48m
as
of
31 March
2025
for
a
total
acquisition
cost
of
USD 1,506m
(CHF 1,321m). A
new,
two-year
share
repurchase
program
of
up
to
USD 3.5bn
was
approved
by
shareholders at the 2025 Annual General Meeting (the AGM). We plan to repurchase an additional USD 0.5bn of
shares in the second quarter of
2025 and USD 2bn of shares
in the second half of
- We are maintaining our
ambition for share
repurchases in 2026
to exceed full-year
2022 levels of
USD 5.6bn. Our share
repurchases will be
subject to maintaining
our common equity
tier 1 capital ratio
target of around
14%, achieving our
financial targets
and the absence of material and immediate
changes to the current capital regime
in Switzerland.
UBS Group first quarter 2025 report |
Risk, capital, liquidity and funding,
and balance sheet | Share information and earnings
per share
50
Shares
acquired
under
our
2022
program
totaled
121m
as
of
31 March
2025
for
a
total
acquisition
cost
of
USD 2,277m (CHF 2,138m). This program concluded
on 28 March 2024, and the 121m shares repurchased
under
this program were
canceled in
April 2025 by
means of
a capital reduction,
as approved
by shareholders
at the 2025
AGM.
›
Refer to the “Equity, CET1 capital and returns” table in the “Group performance” section of this report
for more
information about equity attributable to shareholders and tangible equity attributable to shareholders
Share information and earnings per share
As of or for the quarter ended
31.3.25
31.12.24
31.3.24
1
Basic and diluted earnings (USD m)
Net profit / (loss) attributable to shareholders for basic
EPS
1,692
770
1,755
less: (profit) / loss on own equity derivative contracts
0
0
0
Net profit / (loss) attributable to shareholders for diluted
EPS
1,691
770
1,755
.
Weighted average shares outstanding
Weighted average shares outstanding for basic EPS
2
3,177,005,662
3,179,446,604
3,205,234,203
Effect of dilutive potential shares resulting from notional
employee shares, in-the-money options and warrants outstanding
3
154,934,196
156,592,019
159,939,399
Weighted average shares outstanding for diluted EPS
3,331,939,858
3,336,038,623
3,365,173,602
.
Earnings per share (USD)
Basic
0.53
0.24
0.55
Diluted
0.51
0.23
0.52
.
Shares outstanding and potentially dilutive instruments
Shares issued
3,462,087,722
3,462,087,722
3,462,087,722
Treasury shares
4
274,295,444
287,262,471
255,661,512
of which: related to the 2022 share repurchase program
120,506,008
120,506,008
120,506,008
of which: related to the 2024 share repurchase program
47,977,687
32,962,298
Shares outstanding
3,187,792,278
3,174,825,251
3,206,426,210
Potentially dilutive instruments
5
23,529,297
14,127,377
11,621,246
.
Other key figures
Total book value per share (USD)
27.35
26.80
26.44
Tangible book value per share (USD)
25.18
24.63
24.14
Share price (USD)
6
30.38
30.54
30.74
Market capitalization (USD m)
7
105,173
105,719
106,440
1 Comparative-period information has been revised.
Refer to “Note 2 Accounting for the acquisition
of the Credit Suisse Group” in the
“Consolidated financial statements” section of the
UBS Group Annual Report
2024, available under “Annual
reporting” at ubs.com/investors,
for more information about the relevant
adjustments.
2 The weighted average shares
outstanding for basic earnings per share (EPS)
are calculated
by taking the number
of shares at the
beginning of the period,
adjusted by the number
of shares acquired or
issued during the
period, multiplied by
a time-weighted factor for
the period outstanding.
As a result,
balances are affected
by the timing
of acquisitions and
issuances during the
period.
3 The weighted
average number of
shares for notional
employee awards
with performance conditions
reflects all potentially
dilutive shares that are expected to vest under the terms of the awards.
4 Based on a settlement date view.
5 Reflects potential shares that could dilute basic EPS in the future but were
not dilutive for any of the
periods presented. Mainly includes equity
-based awards subject to
absolute and relative performance
conditions and equity derivative
contracts.
6 Represents the share price
as listed on the SIX
Swiss Exchange,
translated to US dollars using the closing exchange rate as of the respective date.
7 The calculation of market capitalization reflects total shares
issued multiplied by the share price at the end of the period.
Ticker symbols UBS Group AG
Security identification codes
Trading exchange
SIX / NYSE
Bloomberg
Reuters
ISIN
CH0244767585
SIX Swiss Exchange
UBSG
UBSG SW
UBSG.S
Valoren
24 476 758
New York Stock Exchange
UBS
UBS UN
UBS.N
CUSIP
CINS H42097 10 7
UBS Group first quarter 2025 report |
Consolidated financial statements
51
Consolidated financial
statements
Unaudited
Table of contents
UBS Group AG interim consolidated financial
statements (unaudited)
52
Income statement
53
Statement of comprehensive income
54
Balance sheet
55
Statement of changes in equity
56
Statement of cash flows
57
1
Basis of accounting
58
2
Segment reporting
58
3
Net interest income
59
4
Net fee and commission income
59
5
Other income
59
6
Personnel expenses
60
7
General and administrative expenses
60
8
Expected credit loss measurement
66
9
Fair value measurement
72
10
Derivative instruments
73
11
Other assets and liabilities
74
12
Debt issued designated at fair value
74
13
Debt issued measured at amortized cost
74
14
Provisions and contingent liabilities
UBS Group first quarter 2025 report |
Consolidated financial statements |
UBS Group AG interim consolidated financial
statements (unaudited)
52
UBS Group 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
3
6,981
7,829
10,078
Interest expense from financial instruments measured at
amortized cost
3
(6,948)
(7,884)
(9,724)
Net interest income from financial instruments measured
at fair value through profit or loss and other
3
1,597
1,893
1,585
Net interest income
3
1,629
1,838
1,940
Other net income from financial instruments measured
at fair value through profit or loss
3,937
3,144
4,182
Fee and commission income
4
7,426
7,269
7,080
Fee and commission expense
4
(649)
(671)
(588)
Net fee and commission income
4
6,777
6,598
6,492
Other income
5
213
56
124
Total revenues
12,557
11,635
12,739
Credit loss expense / (release)
8
100
229
106
Personnel expenses
6
7,032
6,361
6,949
General and administrative expenses
7
2,431
3,004
2,413
Depreciation, amortization and impairment of non-financial
assets
861
994
895
Operating expenses
10,324
10,359
10,257
Operating profit / (loss) before tax
2,132
1,047
2,376
Tax expense / (benefit)
430
268
612
Net profit / (loss)
1,702
779
1,764
Net profit / (loss) attributable to non-controlling interests
10
9
9
Net profit / (loss) attributable to shareholders
1,692
770
1,755
Earnings per share (USD)
Basic
0.53
0.24
0.55
Diluted
0.51
0.23
0.52
UBS Group first quarter 2025 report |
Consolidated financial statements |
UBS Group AG interim consolidated financial
statements (unaudited)
53
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)
1,692
770
1,755
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
1,318
(3,388)
(3,473)
Effective portion of changes in fair value of hedging instruments
designated as net investment hedges, before tax
(549)
1,565
2,182
Foreign currency translation differences on foreign operations reclassified to the
income statement
3
20
0
Effective portion of changes in fair value of hedging instruments
designated as net investment hedges reclassified
to the income statement
(1)
(34)
1
Income tax relating to foreign currency translations, including the effect of
net investment hedges
(2)
2
13
Subtotal foreign currency translation, net of tax
768
(1,835)
(1,277)
Financial assets measured at fair value through other comprehensive income
Net unrealized gains / (losses), before tax
(3)
(1)
0
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)
0
Cash flow hedges of interest rate risk
Effective portion of changes in fair value of derivative instruments designated
as cash flow hedges, before tax
349
(1,366)
(1,246)
Net (gains) / losses reclassified to the income statement from
equity
322
400
544
Income tax relating to cash flow hedges
(125)
181
119
Subtotal cash flow hedges, net of tax
545
(785)
(583)
Cost of hedging
Cost of hedging, before tax
31
(98)
(9)
Income tax relating to cost of hedging
0
0
0
Subtotal cost of hedging, net of tax
31
(98)
(9)
Total other comprehensive income that may be reclassified to the income statement, net
of tax
1,342
(2,719)
(1,870)
Other comprehensive income that will not be reclassified to the income
statement
Defined benefit plans
Gains / (losses) on defined benefit plans, before tax
5
(68)
(62)
Income tax relating to defined benefit plans
2
22
6
Subtotal defined benefit plans, net of tax
7
(46)
(56)
Own credit on financial liabilities designated at fair value
Gains / (losses) from own credit on financial liabilities designated
at fair value, before tax
279
145
(69)
Income tax relating to own credit on financial liabilities designated
at fair value
(1)
(2)
2
Subtotal own credit on financial liabilities designated at
fair value, net of tax
279
144
(68)
Total other comprehensive income that will not be reclassified to the income statement,
net of tax
286
98
(124)
Total other comprehensive income
1,628
(2,622)
(1,994)
Total comprehensive income attributable to shareholders
3,319
(1,851)
(240)
Comprehensive income attributable to non-controlling
interests
Net profit / (loss)
10
9
9
Total other comprehensive income that will not be reclassified to the income statement,
net of tax
15
(35)
(14)
Total comprehensive income attributable to non-controlling interests
26
(27)
(5)
Total comprehensive income
Net profit / (loss)
1,702
779
1,764
Other comprehensive income
1,643
(2,657)
(2,008)
of which: other comprehensive income that may be reclassified
to the income statement
1,342
(2,719)
(1,870)
of which: other comprehensive income that will not be reclassified
to the income statement
302
62
(138)
Total comprehensive income
3,345
(1,878)
(245)
1 Refer to the “Group performance” section of this report for more information.
UBS Group first quarter 2025 report |
Consolidated financial statements |
UBS Group AG interim consolidated financial
statements (unaudited)
54
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
21,107
18,903
Receivables from securities financing transactions measured at amortized
cost
101,784
118,301
Cash collateral receivables on derivative instruments
10
38,994
43,959
Loans and advances to customers
8
594,150
579,967
Other financial assets measured at amortized cost
11
66,513
58,835
Total financial assets measured at amortized cost
1,053,918
1,043,293
Financial assets at fair value held for trading
9
165,236
159,065
of which: assets pledged as collateral that may be sold or repledged
by counterparties
48,262
38,532
Derivative financial instruments
9, 10
138,035
185,551
Brokerage receivables
9
28,747
25,858
Financial assets at fair value not held for trading
9
102,317
95,472
Total financial assets measured at fair value through profit or loss
434,334
465,947
Financial assets measured at fair value through other comprehensive income
9
3,216
2,195
Investments in associates
2,496
2,306
Property, equipment and software
15,564
15,498
Goodwill and intangible assets
6,909
6,887
Deferred tax assets
11,090
11,134
Other non-financial assets
11
15,836
17,766
Total assets
1,543,363
1,565,028
Liabilities
Amounts due to banks
27,794
23,347
Payables from securities financing transactions measured at amortized cost
14,999
14,833
Cash collateral payables on derivative instruments
10
31,520
35,490
Customer deposits
744,866
745,777
Debt issued measured at amortized cost
13
213,880
214,219
Other financial liabilities measured at amortized cost
11
19,143
21,033
Total financial liabilities measured at amortized cost
1,052,202
1,054,698
Financial liabilities at fair value held for trading
9
43,099
35,247
Derivative financial instruments
9, 10
142,117
180,636
Brokerage payables designated at fair value
9
59,921
49,023
Debt issued designated at fair value
9, 12
112,092
107,909
Other financial liabilities designated at fair value
9, 11
27,235
28,699
Total financial liabilities measured at fair value through profit or loss
384,465
401,514
Provisions and contingent liabilities
14
8,517
8,409
Other non-financial liabilities
11
10,590
14,834
Total liabilities
1,455,773
1,479,454
Equity
Share capital
346
346
Share premium
10,908
12,012
Treasury shares
(6,509)
(6,402)
Retained earnings
80,023
78,035
Other comprehensive income recognized directly in equity, net of tax
2,418
1,088
Equity attributable to shareholders
87,185
85,079
Equity attributable to non-controlling interests
405
494
Total equity
87,590
85,574
Total liabilities and equity
1,543,363
1,565,028
UBS Group first quarter 2025 report |
Consolidated financial statements |
UBS Group AG interim consolidated financial
statements (unaudited)
55
Statement of changes in equity
USD m
Share
capital and
share
premium
Treasury
shares
Retained
earnings
OCI
recognized
directly in
equity,
net of tax
1
of which:
foreign
currency
translation
of which:
cash flow
hedges
Total equity
attributable to
shareholders
Balance as of 1 January 2025
2
12,359
(6,402)
78,035
1,088
3,830
(2,585)
85,079
Acquisition of treasury shares
(1,520)
3
(1,520)
Delivery of treasury shares under share-based compensation
plans
(1,328)
1,392
64
Other disposal of treasury shares
5
21
3
27
Share-based compensation expensed in the income statement
329
329
Tax (expense) / benefit
9
9
Equity classified as obligation to purchase own shares
(22)
(22)
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)
(98)
0
(98)
Total comprehensive income for the period
1,978
1,342
768
545
3,319
of which: net profit / (loss)
1,692
1,692
of which: OCI, net of tax
286
1,342
768
545
1,628
Balance as of 31 March 2025
2
11,254
(6,509)
80,023
2,418
4,599
(2,051)
87,185
Non-controlling interests as of 31 March 2025
405
Total equity as of 31 March 2025
87,590
Balance as of 1 January 2024
2,4
13,562
(4,796)
74,397
2,462
5,584
(3,109)
85,624
Acquisition of treasury shares
(1,008)
3
(1,008)
Delivery of treasury shares under share-based compensation
plans
(595)
627
32
Other disposal of treasury shares
1
20
3
21
Share-based compensation expensed in the income statement
334
334
Tax (expense) / benefit
5
5
Equity classified as obligation to purchase own shares
1
1
Translation effects recognized directly in retained earnings
(72)
72
72
0
Share of changes in retained earnings of associates and
joint ventures
(1)
(1)
New consolidations / (deconsolidations) and other increases
/ (decreases)
11
(3)
8
Total comprehensive income for the period
1,631
(1,870)
(1,277)
(583)
(240)
of which: net profit / (loss)
1,755
1,755
of which: OCI, net of tax
(124)
(1,870)
(1,277)
(583)
(1,994)
Balance as of 31 March 2024
2,4
13,318
(5,157)
75,952
663
4,307
(3,621)
84,777
Non-controlling interests as of 31 March 2024
506
Total equity as of 31 March 2024
4
85,283
1 Excludes other comprehensive income related to defined benefit plans and own credit that is recorded directly in Retained earnings.
2 Excludes non-controlling interests.
3 Includes treasury shares acquired and
disposed of by the Investment Bank in its capacity as a market
maker with regard to UBS shares and related derivatives,
and to hedge certain issued structured debt instruments.
These acquisitions and disposals are
reported based on the sum
of the net monthly
movements.
4 Comparative-period information has been
revised. Refer to “Note 2
Accounting for the acquisition
of the Credit Suisse Group”
in the “Consolidated
financial statements” section of the UBS Group Annual Report 2024, available under “Annual
reporting” at ubs.com/investors, for more information about
the relevant adjustments.
UBS Group first quarter 2025 report |
Consolidated financial statements |
UBS Group AG interim consolidated financial
statements (unaudited)
56
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)
1,702
1,764
Non-cash items included in net profit and other adjustments
Depreciation, amortization and impairment of non-financial
assets
861
895
Credit loss expense / (release)
100
106
Share of net (profit) / loss of associates and joint ventures
and impairment related to associates
(136)
(58)
Deferred tax expense / (benefit)
(30)
144
Net loss / (gain) from investing activities
(231)
12
Net loss / (gain) from financing activities
2,080
(3,460)
Other net adjustments
1
(7,494)
16,762
Net change in operating assets and liabilities
1
Amounts due from banks and amounts due to banks
4,228
1,547
Receivables from securities financing transactions measured at amortized
cost
18,364
(5,686)
Payables from securities financing transactions measured at amortized cost
668
(71)
Cash collateral on derivative instruments
1,110
(692)
Loans and advances to customers
(2,642)
6,401
Customer deposits
(13,476)
(2,545)
Financial assets and liabilities at fair value held for trading and derivative financial
instruments
14,243
(4,422)
Brokerage receivables and payables
7,897
2,577
Financial assets at fair value not held for trading and other financial assets
and liabilities
(9,392)
2,891
Provisions and other non-financial assets and liabilities
(2,237)
(4,035)
Income taxes paid, net of refunds
(237)
(585)
Net cash flow from / (used in) operating activities
2
15,377
11,544
Cash flow from / (used in) investing activities
Disposal of subsidiaries, business, associates and intangible assets
354
3
Purchase of property, equipment and software
(558)
(413)
Disposal of property, equipment and software
26
28
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)
(851)
Disposal and redemption of debt securities measured at amortized
cost
1,883
2,002
Net cash flow from / (used in) investing activities
(7,163)
1,315
Cash flow from / (used in) financing activities
Repayment of Swiss National Bank funding
(22,082)
4
Net issuance (repayment) of short-term debt measured at amortized
cost
(517)
(5,851)
Net movements in treasury shares and own equity derivative activity
(1,453)
(973)
Issuance of debt designated at fair value and long-term debt measured
at amortized cost
34,697
28,469
Repayment of debt designated at fair value and long-term debt measured
at amortized cost
(34,631)
(39,137)
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)
(2,052)
Net cash flows from other financing activities
(335)
(192)
Net cash flow from / (used in) financing activities
(2,958)
(40,818)
Total cash flow
Cash and cash equivalents at the beginning of the period
244,090
340,311
Net cash flow from / (used in) operating, investing and financing
activities
5,256
(27,959)
Effects of exchange rate differences on cash and cash equivalents
1
5,044
(12,852)
Cash and cash equivalents at the end of the period
6
254,390
299,499
of which: cash and balances at central banks
6
231,370
271,527
of which: amounts due from banks
6
19,503
20,014
of which: money market paper
6,7
3,517
7,958
Additional information
Net cash flow from / (used in) operating activities includes:
Interest received in cash
10,729
14,382
Interest paid in cash
10,514
12,123
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 and USD 7,464m
within Non-core and
Legacy for the
three-month periods ended
31 March 2025 and
31 March 2024, respectively.
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 Group
Annual Report 2024 for more
information.
4 Reflects
the repayment of
the Emergency Liquidity
Assistance facility
to the Swiss
National Bank,
which was
recognized in the
balance sheet line
Amounts due
to banks.
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 397m;
31 March 2024: USD 221m),
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 463m).
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
57
Notes to the UBS Group AG interim consolidated
financial statements (unaudited)
Note 1
Basis of accounting
Basis of preparation
The consolidated
financial statements
(the financial
statements) of
UBS Group AG and
its subsidiaries
(together,
UBS
or
the
Group)
are
prepared
in
accordance
with
IFRS
Accounting
Standards, as
issued
by
the
International
Accounting Standards
Board (the
IASB), and
are
presented in
US
dollars. These
interim
financial statements
are
prepared in accordance with IAS 34,
Interim Financial Reporting
.
In preparing
these interim financial
statements, the same
accounting policies and
methods of
computation have
been applied as in the
UBS Group AG consolidated annual
financial statements for
the period ended 31 December
- These interim
financial statements are
unaudited and should
be read
in conjunction with
UBS Group AG’s
audited consolidated financial
statements in the
UBS Group Annual Report
2024 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
the Group’s financial position, results of
operations and cash flows.
Preparation of
these interim financial
statements requires management
to make
estimates and
assumptions that
affect
the
reported
amounts
of
assets,
liabilities,
income,
expenses
and
disclosures
of
contingent
assets
and
liabilities. These estimates
and assumptions are based
on the best available
information. Actual results
in the future
could differ
from such
estimates and
differences may
be material
to the
financial statements.
Revisions to
estimates,
based on regular
reviews, are recognized
in the period
in which they
occur. For more
information about areas of
estimation
uncertainty
that
are
considered
to
require
critical
judgment,
refer
to
“Note 1a
Material
accounting
policies” in the “Consolidated financial statements”
section of the UBS Group Annual Report
2024.
Currency translation rates
The
following table
shows the
rates of
the main
currencies used
to translate
the financial
information of
UBS’s
operations with a functional currency other
than the US dollar into US dollars.
Currency translation rates
Closing exchange rate
Average rate
1
As of
For the quarter ended
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 the
Group with the
same functional
currency for each
month. Weighted
average rates
for individual business
divisions may deviate from the weighted average rates for the Group.
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
58
Note 2
Segment reporting
UBS’s business divisions
are organized globally into
five business divisions:
Global Wealth Management,
Personal &
Corporate Banking, Asset Management, the
Investment Bank,
and Non-core and Legacy. All five business
divisions
are supported by Group Items and qualify as reportable segments for the purpose of segment reporting. Together
with Group Items they reflect the management
structure of the Group.
›
Refer to the “Consolidated financial statements” section of the UBS Group Annual Report 2024 for more
information about the Group’s reporting segments
Segment reporting
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
UBS Group
For the quarter ended 31 March 2025
Net interest income
1,708
1,239
(15)
(893)
19
(429)
1,629
Non-interest income
4,714
972
756
4,076
265
144
10,927
Total revenues
6,422
2,211
741
3,183
284
(284)
12,557
Credit loss expense / (release)
6
53
0
35
7
(1)
100
Operating expenses
5,057
1,551
606
2,427
669
15
10,324
Operating profit / (loss) before tax
1,359
607
135
722
(391)
(299)
2,132
Tax expense / (benefit)
430
Net profit / (loss)
1,702
As of 31 March 2025
Total assets
556,949
443,017
22,982
456,540
47,940
15,935
1,543,363
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
UBS Group
For the quarter ended 31 March 2024
Net interest income
1,873
1,508
(16)
(862)
360
(922)
1,940
Non-interest income
4,270
915
792
3,613
642
567
10,798
Total revenues
6,143
2,423
776
2,751
1,001
(355)
12,739
Credit loss expense / (release)
(3)
44
0
32
36
(2)
106
Operating expenses
5,044
1,404
665
2,164
1,011
(33)
10,257
Operating profit / (loss) before tax
1,102
975
111
555
(46)
(320)
2,376
Tax expense / (benefit)
612
Net profit / (loss)
1,764
As of 31 December 2024
Total assets
559,601
447,068
22,702
453,422
68,260
13,975
1,565,028
Note 3
Net interest income
Net interest income
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Interest income from loans and deposits
1
6,105
6,951
9,089
Interest income from securities financing transactions measured
at amortized cost
2
839
822
1,217
Interest income from other financial instruments measured
at amortized cost
360
350
347
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)
(602)
Total interest income from financial instruments measured at amortized cost and fair
value through other comprehensive income
6,981
7,829
10,078
Interest expense on loans and deposits
3
3,698
4,253
5,439
Interest expense on securities financing transactions measured
at amortized cost
4
415
457
495
Interest expense on debt issued
2,794
3,127
3,740
Interest expense on lease liabilities
41
46
50
Total interest expense from financial instruments measured at amortized cost
6,948
7,884
9,724
Total net interest income from financial instruments measured at amortized cost and fair
value through other comprehensive
income
33
(55)
355
Net interest income from financial instruments measured at fair value through profit
or loss and other
1,597
1,893
1,585
Total net interest income
1,629
1,838
1,940
1 Consists of
interest income from
cash and balances
at central banks,
amounts due from
banks, and
cash collateral receivables
on derivative
instruments, as
well as negative
interest on amounts
due to banks,
customer deposits, and
cash collateral payables
on derivative instruments.
2 Includes interest
income on receivables
from securities financing
transactions and negative
interest, including fees,
on payables from
securities financing transactions.
3 Consists of interest expense on amounts due to
banks, cash collateral payables on derivative instruments, and customer deposits, as well as negative interest on cash and balances
at central banks, amounts due
from banks, and cash
collateral receivables on derivative
instruments.
4 Includes interest expense on payables
from securities financing transactions and
negative interest, including
fees, on receivables from securities financing transactions.
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
59
Note 4
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
187
206
194
M&A and corporate finance fees
244
277
259
Brokerage fees
1,376
1,170
1,150
Investment fund fees
1,543
1,579
1,257
Portfolio management and related services
3,104
3,085
3,051
Other
972
951
1,169
Total fee and commission income
1
7,426
7,269
7,080
of which: recurring
4,610
4,638
4,407
of which: transaction-based
2,783
2,586
2,641
of which: performance-based
33
45
32
Fee and commission expense
649
671
588
Net fee and commission income
6,777
6,598
6,492
1 Reflects third-party fee and commission
income for the first quarter of
2025 of USD 4,431m for Global
Wealth Management (fourth quarter of
2024: USD 4,190m; first quarter of 2024:
USD 3,986m), USD 730m
for Personal &
Corporate Banking (fourth
quarter of 2024:
USD 686m; first quarter
of 2024: USD 708m),
USD 939m for Asset Management
(fourth quarter of 2024:
USD 944m; first quarter
of 2024: USD 941m),
USD 1,243m for the Investment Bank (fourth
quarter of 2024: USD 1,285m; first quarter of
2024: USD 1,332m), USD 68m for Non-core and Legacy
(fourth quarter of 2024: USD 93m; first quarter
of 2024: USD 108m)
and USD 14m for Group Items (fourth quarter of 2024: USD 72m; first quarter of 2024: USD 5m).
Note 5
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
94
2
26
(1)
Net gains / (losses) from disposals of investments in associates
and joint ventures
3
3
(2)
Share of net profit / (loss) of associates and joint ventures
136
3
(34)
58
Total
233
(5)
55
Income from properties
4
3
6
14
Net gains / (losses) from properties held for sale
8
1
(1)
Other
5
(31)
54
56
Total other income
213
56
124
1 Includes foreign exchange gains / (losses) reclassified
from other comprehensive income related to the disposal
or closure of foreign operations.
2 Includes a gain of USD 97m recognized
upon completion of the
sale of Select
Portfolio Servicing,
the US mortgage
servicing business of
Credit Suisse,
which was
managed in Non-core
and Legacy.
Refer to "Note
29 Changes in
organization and acquisitions
and disposals of
subsidiaries and businesses" in the “Consolidated financial statements” section of
the UBS Group Annual Report 2024 for more information.
3 Includes a gain of USD 64m related
to UBS’s share of income recorded
by Swisscard for the sale
of the Credit Suisse card
portfolios to UBS. Refer to "Note 29
Changes in organization and acquisitions and
disposals of subsidiaries and businesses" in
the “Consolidated financial statements”
section of the UBS Group Annual Report 2024 for more information.
4 Includes rent received from third parties.
5 Includes losses of USD 36m for the first quarter of 2025 related
to the repurchase of UBS’s own
debt instruments (fourth quarter of 2024: losses USD 9m; first quarter of 2024: gains of USD 22m).
Note 6
Personnel expenses
Personnel expenses
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Salaries and variable compensation
1
5,968
5,321
5,863
of which: variable compensation – financial advisors
2
1,409
1,400
1,267
Contractors
72
76
86
Social security
405
386
409
Post-employment benefit plans
349
296
367
Other personnel expenses
237
282
225
Total personnel expenses
7,032
6,361
6,949
1 Includes role-based
allowances.
2 Financial advisor
compensation consists of
cash compensation, determined
using a formulaic
approach based on
production, and deferred
awards. It
also includes expenses
related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements.
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
60
Note 7
General and administrative expenses
General and administrative expenses
USD m
31.3.25
31.12.24
31.3.24
Outsourcing costs
378
475
423
Technology costs
573
622
588
Consulting, legal and audit fees
287
470
403
Real estate and logistics costs
239
299
289
Market data services
168
184
199
Marketing and communication
123
194
115
Travel and entertainment
74
108
72
Litigation, regulatory and similar matters
1
114
99
(5)
Other
475
2
554
330
Total general and administrative expenses
2,431
3,004
2,413
1 Reflects the net increase / (decrease) in provisions for litigation, regulatory and similar matters recognized in the income statement. The fourth and first quarters of 2024 also reflect decreases in acquired contingent
liabilities measured under IFRS 3. Refer to Note 14b for more information.
2 Includes a USD 180m expense related to the payment to Swisscard for the sale of the Credit Suisse card portfolios to UBS. Refer to "Note
29 Changes in organization and acquisitions and disposals of subsidiaries and businesses" in the “Consolidated financial statements”
section of the UBS Group Annual Report 2024 for more information.
Note 8
Expected credit loss measurement
a) Credit loss expense / release
Total net credit loss expenses in the first quarter of
2025
were USD 100m, reflecting USD 21m net releases related
to performing positions and USD 121m 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 94m, of which USD 47m was in Personal & Corporate Banking, USD 40m
in the Investment Bank and USD 7m 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
Purchased
Total
For the quarter ended 31.3.25
Global Wealth Management
(7)
13
(1)
6
Personal & Corporate Banking
(8)
61
0
53
Asset Management
0
0
0
0
Investment Bank
(5)
40
0
35
Non-core and Legacy
0
(1)
8
7
Group Items
(1)
0
0
(1)
Total
(21)
113
8
100
For the quarter ended 31.12.24
Global Wealth Management
(26)
12
0
(14)
Personal & Corporate Banking
(24)
199
0
175
Asset Management
0
0
0
0
Investment Bank
32
31
0
63
Non-core and Legacy
(2)
5
3
6
Group Items
(1)
0
0
0
Total
(21)
247
3
229
For the quarter ended 31.3.24
Global Wealth Management
(12)
7
2
(3)
Personal & Corporate Banking
(13)
64
(7)
44
Asset Management
0
0
0
0
Investment Bank
7
26
(1)
32
Non-core and Legacy
(26)
37
25
36
Group Items
(2)
0
0
(2)
Total
(45)
133
18
106
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
61
Note 8
Expected credit loss measurement (continued)
b) Changes to ECL models, scenarios and
scenario weights
Scenarios and scenario weights
The expected
credit loss
(ECL) scenarios,
along with
their related
macroeconomic factors and
market data,
were
reviewed in light of the economic
and political conditions prevailing
in the first quarter of
2025 through a series of
governance meetings,
with input
and feedback
from UBS Risk
and Finance
experts across
the business
divisions and
regions.
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 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 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 Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
62
Note 8
Expected credit loss measurement (continued)
c) ECL-relevant balance sheet and off-balance
sheet positions including ECL allowances
and provisions
The following tables
provide information
about financial
instruments and
certain non-financial
instruments that
are
subject
to
ECL
requirements.
For
amortized-cost
instruments,
the
carrying
amount
represents
the
maximum
exposure to credit risk, taking
into account the allowance for
credit losses. Financial assets measured at
fair value
through other comprehensive
income (FVOCI) are
also subject to ECL;
however, unlike amortized-cost
instruments,
the allowance
for credit
losses for
FVOCI instruments
does not
reduce the
carrying amount
of these financial
assets.
Instead, the
carrying amount
of financial
assets measured
at FVOCI
represents the
maximum exposure
to credit
risk.
In addition to recognized financial assets, certain off-balance sheet financial instruments and other credit lines are
also subject to ECL.
The maximum exposure to
credit risk for off-balance
sheet financial instruments is calculated
based on the maximum contractual amounts.
ECL-relevant balance sheet and off-balance sheet positions
USD m
31.3.25
Carrying amount
1
ECL allowances
2
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Cash and balances at central banks
231,370
231,207
18
0
145
(60)
0
(28)
0
(33)
Amounts due from banks
21,107
21,070
37
0
0
(9)
(5)
(4)
0
0
Receivables from securities financing transactions measured at
amortized cost
101,784
101,784
0
0
0
(3)
(3)
0
0
0
Cash collateral receivables on derivative instruments
38,994
38,994
0
0
0
0
0
0
0
0
Loans and advances to customers
594,150
567,285
22,470
3,582
813
(2,099)
(289)
(300)
(1,228)
(281)
of which: Private clients with mortgages
257,254
245,046
10,800
1,309
99
(133)
(39)
(50)
(36)
(8)
of which: Real estate financing
83,414
78,340
4,828
228
18
(62)
(26)
(32)
(4)
0
of which: Large corporate clients
25,097
21,923
2,115
740
320
(646)
(82)
(111)
(335)
(119)
of which: SME clients
21,787
18,381
2,287
996
122
(811)
(65)
(67)
(646)
(33)
of which: Lombard
152,821
152,732
1
32
55
(48)
(8)
0
(18)
(22)
of which: Credit cards
2,025
1,564
420
41
0
(44)
(8)
(11)
(26)
0
of which: Commodity trade finance
4,330
4,311
12
7
0
(81)
(8)
0
(73)
0
of which: Ship / aircraft financing
8,029
7,713
316
0
0
(19)
(16)
(4)
0
0
of which: Consumer financing
2,629
2,414
109
73
33
(92)
(16)
(19)
(62)
5
Other financial assets measured at amortized cost
66,513
65,766
560
176
11
(121)
(24)
(8)
(82)
(8)
of which: Loans to financial advisors
2,738
2,600
48
89
0
(40)
(3)
(1)
(36)
0
Total financial assets measured at amortized cost
1,053,918
1,026,106
23,085
3,758
969
(2,293)
(321)
(340)
(1,309)
(322)
Financial assets measured at fair value through other comprehensive
income
3,216
3,216
0
0
0
0
0
0
0
0
Total on-balance sheet financial assets in scope of ECL requirements
1,057,134
1,029,322
23,085
3,758
969
(2,293)
(321)
(340)
(1,309)
(322)
Total exposure
ECL provisions
2
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Guarantees
42,586
40,618
1,800
131
37
(60)
(12)
(20)
(27)
0
of which: Large corporate clients
7,103
6,487
530
64
23
(14)
(6)
(4)
(4)
0
of which: SME clients
2,885
2,529
316
31
8
(22)
(3)
(15)
(4)
0
of which: Financial intermediaries and hedge funds
25,139
24,249
890
0
0
(1)
(1)
0
0
0
of which: Lombard
3,591
3,561
0
30
0
(6)
(1)
0
(5)
0
of which: Commodity trade finance
2,160
2,158
1
0
0
(1)
(1)
0
0
0
Irrevocable loan commitments
79,463
75,299
3,906
217
40
(219)
(116)
(81)
(20)
(2)
of which: Large corporate clients
48,349
45,150
3,033
138
27
(160)
(84)
(59)
(16)
(2)
Forward starting reverse repurchase and securities borrowing
agreements
18,178
18,178
0
0
0
0
0
0
0
0
Unconditionally revocable loan commitments
144,102
140,458
3,442
202
0
(55)
(41)
(14)
0
0
of which: Real estate financing
7,384
7,030
354
0
0
(3)
(4)
1
0
0
of which: Large corporate clients
13,497
12,751
722
23
0
(15)
(8)
(5)
(2)
0
of which: SME clients
10,902
9,952
801
149
0
(23)
(18)
(5)
0
0
of which: Lombard
72,767
72,757
8
2
0
0
0
0
0
0
of which: Credit cards
10,285
9,815
467
3
0
(8)
(6)
(2)
0
0
Irrevocable committed prolongation of existing loans
4,129
4,126
2
2
0
(3)
(3)
0
0
0
Total off-balance sheet financial instruments and other credit lines
288,458
278,679
9,150
551
78
(337)
(172)
(115)
(47)
(2)
Total allowances and provisions
(2,629)
(493)
(455)
(1,357)
(324)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective
ECL allowances.
2 Negative balances are representative of a net improvement in
credit quality since the acquisition of the respective financial instrument, which is reflected as a negative ECL allowance.
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
63
Note 8
Expected credit loss measurement (continued)
ECL-relevant balance sheet and off-balance sheet positions
USD m
31.12.24
Carrying amount
1
ECL allowances
2
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Cash and balances at central banks
223,329
223,201
13
0
114
(47)
0
(21)
0
(25)
Amounts due from banks
18,903
18,704
198
0
0
(36)
(1)
(5)
0
(30)
Receivables from securities financing transactions measured at
amortized cost
118,301
118,301
0
0
0
(2)
(2)
0
0
0
Cash collateral receivables on derivative instruments
43,959
43,959
0
0
0
0
0
0
0
0
Loans and advances to customers
579,967
553,532
22,049
3,565
820
(1,978)
(276)
(323)
(1,134)
(244)
of which: Private clients with mortgages
249,756
239,540
8,987
1,146
84
(160)
(46)
(70)
(30)
(14)
of which: Real estate financing
82,602
78,410
3,976
195
20
(58)
(24)
(27)
(7)
0
of which: Large corporate clients
25,286
20,816
3,462
707
301
(573)
(72)
(123)
(277)
(100)
of which: SME clients
20,768
17,403
2,265
952
148
(742)
(55)
(47)
(613)
(26)
of which: Lombard
147,504
147,136
260
48
61
(42)
(6)
0
(18)
(18)
of which: Credit cards
1,978
1,533
406
39
0
(41)
(6)
(11)
(25)
0
of which: Commodity trade finance
4,203
4,089
106
8
0
(81)
(9)
0
(71)
0
of which: Ship / aircraft financing
7,848
6,974
874
0
0
(31)
(14)
(16)
0
0
of which: Consumer financing
2,820
2,480
114
159
67
(93)
(15)
(19)
(62)
4
Other financial assets measured at amortized cost
58,835
58,209
436
178
12
(125)
(25)
(7)
(84)
(8)
of which: Loans to financial advisors
2,723
2,568
59
95
0
(41)
(4)
(1)
(37)
0
Total financial assets measured at amortized cost
1,043,293
1,015,906
22,697
3,743
946
(2,187)
(304)
(357)
(1,218)
(307)
Financial assets measured at fair value through other comprehensive
income
2,195
2,195
0
0
0
0
0
0
0
0
Total on-balance sheet financial assets in scope of ECL requirements
1,045,488
1,018,102
22,697
3,743
946
(2,187)
(304)
(357)
(1,218)
(307)
Total exposure
ECL provisions
2
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 3
PCI
Guarantees
40,279
38,858
1,242
151
27
(64)
(16)
(24)
(24)
0
of which: Large corporate clients
7,817
7,096
635
78
8
(17)
(7)
(9)
(2)
0
of which: SME clients
2,524
2,074
393
41
15
(26)
(5)
(15)
(7)
0
of which: Financial intermediaries and hedge funds
21,590
21,449
141
0
0
(1)
(1)
0
0
0
of which: Lombard
3,709
3,652
24
29
4
(6)
(1)
0
(5)
0
of which: Commodity trade finance
2,678
2,676
2
0
0
(1)
(1)
0
0
0
Irrevocable loan commitments
79,579
75,158
4,178
187
56
(177)
(105)
(61)
(10)
(2)
of which: Large corporate clients
47,381
43,820
3,393
125
43
(155)
(91)
(54)
(8)
(2)
Forward starting reverse repurchase and securities borrowing
agreements
24,896
24,896
0
0
0
0
0
0
0
0
Unconditionally revocable loan commitments
145,665
143,262
2,149
250
5
(76)
(59)
(17)
0
0
of which: Real estate financing
7,674
7,329
345
0
0
(6)
(4)
(2)
0
0
of which: Large corporate clients
14,690
14,089
584
14
3
(22)
(14)
(7)
(2)
0
of which: SME clients
9,812
9,289
333
190
0
(34)
(28)
(6)
0
0
of which: Lombard
73,267
73,181
84
0
1
0
0
0
0
0
of which: Credit cards
10,074
9,604
467
3
0
(8)
(6)
(2)
0
0
Irrevocable committed prolongation of existing loans
4,608
4,602
4
2
0
(3)
(3)
0
0
0
Total off-balance sheet financial instruments and other credit lines
295,027
286,776
7,572
590
89
(320)
(183)
(102)
(34)
(2)
Total allowances and provisions
(2,507)
(487)
(459)
(1,253)
(309)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective ECL allowances.
2 Negative balances are representative of a net improvement in credit
quality since the acquisition of the respective financial instrument, which is reflected as a negative ECL allowance.
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
64
Note 8
Expected credit loss measurement (continued)
The table
below provides information
about the gross
carrying amount of
exposures subject to
ECL and
the ECL
coverage ratio for UBS’s core
loan portfolios (i.e.
Loans and advances to customers
and
Loans to financial advisors
)
and
relevant
off-balance
sheet
exposures.
Cash
and
balances
at
central
banks
,
Amounts
due
from
banks
,
Receivables from
securities
financing transactions
,
Cash collateral
receivables
on derivative
instruments
and
Financial
assets measured
at fair
value through
other comprehensive
income
are not included
in the
table below, due
to their
lower sensitivity to ECL.
ECL coverage ratios are calculated by dividing ECL
allowances and provisions by the gross carrying amount of the
related exposures.
The
overall
coverage
ratio
for
performing
positions
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
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
257,387
245,085
10,850
1,345
107
5
2
46
3
269
706
Real estate financing
83,476
78,366
4,860
232
18
7
3
65
7
187
130
Total real estate lending
340,863
323,451
15,710
1,577
125
6
2
52
4
257
622
Large corporate clients
25,744
22,004
2,225
1,075
438
251
37
497
79
3,120
2,703
SME clients
22,598
18,446
2,354
1,642
155
359
35
286
64
3,934
2,106
Total corporate lending
48,341
40,451
4,580
2,717
593
302
36
389
72
3,612
2,548
Lombard
152,869
152,740
1
50
77
3
1
31
1
3,652
2,811
Credit cards
2,069
1,572
431
66
0
214
49
255
94
3,847
0
Commodity trade finance
4,410
4,319
12
80
0
183
18
10
18
9,154
5,616
Ship / aircraft financing
8,048
7,729
319
0
0
24
20
117
24
0
0
Consumer financing
2,721
2,430
128
135
28
340
65
1,501
137
4,624
0
Other loans and advances to customers
36,927
34,883
1,590
184
270
44
6
44
8
1,452
3,907
Loans to financial advisors
2,778
2,603
49
125
0
144
13
174
16
2,870
0
Total other lending
209,822
206,275
2,530
640
376
23
4
165
6
3,778
3,258
Total
1
599,026
570,177
22,820
4,935
1,094
36
5
132
10
2,561
2,572
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
9,352
9,083
264
6
0
4
3
33
4
421
0
Real estate financing
8,225
7,851
374
0
0
8
10
0
8
0
0
Total real estate lending
17,578
16,934
638
6
0
6
6
0
6
416
0
Large corporate clients
69,056
64,495
4,286
225
49
27
15
160
24
972
313
SME clients
15,801
14,290
1,268
223
21
47
19
293
41
475
190
Total corporate lending
84,857
78,785
5,554
448
70
31
16
190
27
725
277
Lombard
79,638
79,597
8
33
0
1
1
14
1
1,602
0
Credit cards
10,285
9,815
467
3
0
8
6
37
8
0
0
Commodity trade finance
3,019
3,001
17
0
0
2
2
14
2
0
0
Ship / aircraft financing
2,520
2,486
34
0
0
0
0
0
0
0
0
Consumer financing
377
377
0
0
0
3
3
0
3
0
0
Financial intermediaries and hedge funds
29,826
28,309
1,517
0
0
1
1
3
1
0
0
Other off-balance sheet commitments
42,180
41,197
914
61
8
9
5
86
7
1,536
0
Total other lending
167,845
164,782
2,958
97
8
4
2
34
3
1,506
0
Total
2
270,279
260,501
9,150
551
78
12
7
126
11
859
228
Total on- and off-balance sheet
3
869,306
830,678
31,969
5,486
1,172
28
6
130
10
2,390
2,416
1 Includes Loans and advances
to customers and Loans
to financial advisors,
which are presented on
the balance sheet line Other
financial assets measured
at amortized cost.
2 Excludes Forward
starting reverse
repurchase and securities borrowing agreements.
3 Includes on-balance sheet exposure, gross and off-balance sheet exposure (notional) and the related
ECL coverage ratio (bps).
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
65
Note 8
Expected credit loss measurement (continued)
Coverage ratios for core loan portfolio
31.12.24
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
249,916
239,586
9,056
1,176
98
6
2
77
5
257
1,447
Real estate financing
82,660
78,434
4,003
202
20
7
3
67
6
353
2
Total real estate lending
332,576
318,020
13,059
1,378
118
7
2
74
5
271
1,203
Large corporate clients
25,859
20,888
3,585
983
402
222
35
344
80
2,814
2,500
SME clients
21,510
17,459
2,312
1,565
174
345
32
205
52
3,918
1,474
Total corporate lending
47,369
38,347
5,897
2,549
576
278
33
290
67
3,492
2,190
Lombard
147,547
147,141
260
66
79
3
0
8
0
2,719
2,317
Credit cards
2,019
1,539
416
64
0
205
39
256
85
3,857
0
Commodity trade finance
4,284
4,098
106
79
0
189
22
40
23
8,984
4,226
Ship / aircraft financing
7,879
6,988
891
0
0
39
20
184
39
0
0
Consumer financing
2,912
2,495
133
221
63
318
62
1,449
132
2,786
0
Other loans and advances to customers
37,359
35,179
1,610
342
228
42
8
57
10
917
3,909
Loans to financial advisors
2,764
2,571
60
132
0
149
14
159
17
2,785
0
Total other lending
204,764
200,012
3,477
905
370
24
4
164
7
2,691
2,804
Total
1
584,708
556,380
22,433
4,831
1,064
35
5
145
10
2,424
2,294
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
PCI
Total
Stage 1
Stage 2
Stage 1&2
Stage 3
PCI
Private clients with mortgages
8,473
8,271
176
25
1
4
4
22
4
84
0
Real estate financing
8,694
8,300
394
0
0
7
6
33
7
0
0
Total real estate lending
17,167
16,571
570
25
1
6
5
30
6
84
0
Large corporate clients
69,892
65,009
4,612
217
54
28
17
150
26
588
290
SME clients
13,944
12,788
842
287
27
53
30
324
48
281
0
Total corporate lending
83,837
77,797
5,454
504
81
32
19
177
30
413
186
Lombard
80,390
80,235
120
30
4
1
0
1
0
1,764
0
Credit cards
10,074
9,604
467
3
0
8
6
36
8
0
0
Commodity trade finance
3,487
3,464
23
0
0
3
3
51
3
0
0
Ship / aircraft financing
2,669
2,663
6
0
0
13
13
49
13
0
0
Consumer financing
134
134
0
0
0
6
6
0
6
0
0
Financial intermediaries and hedge funds
19,609
19,145
464
0
0
1
1
8
1
0
0
Other off-balance sheet commitments
52,765
52,268
468
27
2
4
2
28
2
2,903
0
Total other lending
169,127
167,512
1,549
61
6
2
1
23
2
2,171
0
Total
2
270,131
261,880
7,572
590
89
12
7
135
11
580
171
Total on- and off-balance sheet
3
854,839
818,260
30,006
5,421
1,153
27
6
142
10
2,223
2,131
1 Includes Loans and advances to
customers and Loans to financial
advisors, which are presented
on the balance sheet line
Other financial assets measured
at amortized cost.
2 Excludes Forward starting
reverse
repurchase and securities borrowing agreements.
3 Includes on-balance sheet exposure, gross and off-balance sheet exposure (notional) and the related
ECL coverage ratio (bps).
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
66
Note 9
Fair value measurement
a) Fair value hierarchy
The fair
value hierarchy
classification of
financial and
non-financial assets
and liabilities
measured at
fair value
is
summarized in the table below.
During the first 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
133,772
27,799
3,665
165,236
128,393
27,564
3,108
159,065
of which: Equity instruments
117,456
320
138
117,914
116,501
430
91
117,022
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
20,606
876
22,310
911
17,462
838
19,211
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
134,204
2,459
138,035
795
181,965
2,792
185,551
of which: Foreign exchange
570
48,895
71
49,536
472
100,328
66
100,867
of which: Interest rate
0
37,566
898
38,464
0
40,553
878
41,431
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
52,368
9,187
102,317
35,911
50,813
8,748
95,472
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
362
640
1,389
423
401
681
1,505
of which: Equity instruments
90
0
2,932
3,023
93
0
2,917
3,010
Financial assets measured at fair value through other comprehensive income on
a recurring basis
Financial assets measured at fair value through other comprehensive
income
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
184,658
245,204
15,400
445,263
172,499
288,337
14,732
475,568
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
67
Note 9
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
136,581
4,130
142,117
829
175,747
4,060
180,636
of which: Foreign exchange
553
50,511
44
51,108
506
94,035
46
94,587
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
99,373
12,719
112,092
0
94,573
13,336
107,909
Other financial liabilities designated at fair value
0
24,483
2,752
27,235
0
25,931
2,768
28,699
of which: Financial liabilities related to unit-linked investment contracts
0
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: 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
31,910
332,923
19,632
384,465
25,406
355,703
20,405
401,514
1 Bifurcated embedded derivatives are presented on the same balance sheet lines
as their host contracts and are not included in this table. The fair value of these
derivatives was not material for the periods presented.
2 Other non-financial assets primarily consist of properties and other non-current assets held for sale, which are measured at the
lower of their net carrying amount or fair value less costs to sell.
b) Valuation adjustments
The table below summarizes the changes
in deferred day-1 profit or loss reserves during the
relevant period.
Deferred day-1 profit or loss is generally released into
Other net income from financial instruments measured
at fair
value
through
profit
or
loss
when
the
pricing
of
equivalent
products
or
the
underlying
parameters
become
observable or when the transaction is closed out.
Deferred day-1 profit or loss reserves
For the quarter ended
USD m
31.3.25
31.12.24
31.3.24
Reserve balance at the beginning of the period
421
418
404
Profit / (loss) deferred on new transactions
65
57
42
(Profit) / loss recognized in the income statement
(95)
(51)
(62)
Foreign currency translation
(1)
(4)
0
Reserve balance at the end of the period
391
421
384
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
(897)
(1,165)
of which: debt issued designated at fair value
(929)
(1,188)
of which: other financial liabilities designated at fair value
32
23
Credit valuation adjustments
2
(128)
(125)
Funding and debit valuation adjustments
(69)
(96)
Other valuation adjustments
(971)
(1,207)
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 Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
68
Note 9
Fair value measurement (continued)
c) Level 3 instruments: valuation techniques
and inputs
The
table
below
presents material
Level 3
assets
and
liabilities,
together
with
the
valuation
techniques
used
to
measure fair value,
as well as
the inputs used
in a given
valuation technique that are
considered significant as of
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
the Group’s estimates and assumptions, but rather the different underlying characteristics of the relevant
assets and
liabilities held by the Group.
The significant unobservable
inputs disclosed in
the table below
are consistent with
those included in
“Note 21 Fair
value measurement” in the “Consolidated financial
statements” section of the UBS Group
Annual Report 2024.
Valuation techniques and inputs used in the fair value measurement of Level 3 assets and liabilities
Fair value
Significant unobservable
input(s)
1
Range of inputs
Assets
Liabilities
Valuation technique(s)
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
12.7
13.3
Other financial liabilities
designated at fair value
2.8
2.8
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 Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
69
Note 9
Fair value measurement (continued)
d) Level 3 instruments: sensitivity to changes
in unobservable input assumptions
The table below summarizes those financial assets and liabilities classified as Level 3 for
which a change in one or
more of
the unobservable
inputs to
reflect reasonably
possible alternative
assumptions would
change fair
value
significantly, and the estimated effect thereof.
The
sensitivity data
shown below
presents an
estimation of
valuation uncertainty
based
on
reasonably possible
alternative values for Level 3
inputs at the balance sheet
date and does not represent
the estimated effect of stress
scenarios. Typically,
these financial
assets and
liabilities are
sensitive to
a combination
of inputs
from Levels 1–3.
Although well-defined interdependencies
may exist
between Level 1 / 2 parameters
and Level 3
parameters (e.g.
between interest rates,
which are generally
Level 1 or Level 2,
and prepayments,
which are generally
Level 3), these
have not been incorporated
in the table. Furthermore,
direct interrelationships between
the Level 3 parameters are
not a significant element of the valuation uncertainty.
Sensitivity of fair value measurements to changes in unobservable input assumptions
1
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 Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
70
Note 9
Fair value measurement (continued)
Movements of Level 3 instruments
USD bn
Balance
at the
beginning
of the
period
Net gains /
losses
included in
compre-
hensive
income
1
of which:
related to
instruments
held at the
end of the
period
Purchases
Sales
Issuances
Settlements
Transfers
into
Level 3
Transfers
out of
Level 3
Foreign
currency
translation
Balance
at the
end
of the
period
For the 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
13.3
0.2
0.2
0.0
0.0
1.7
(1.2)
0.6
(2.1)
0.2
12.7
Other financial liabilities designated at
fair value
2.8
(0.0)
(0.0)
0.0
(0.0)
0.3
(0.3)
0.0
(0.0)
0.0
2.8
For the three months ended 31 March 2024
Financial assets at fair value held for
trading
22.6
(0.2)
(0.0)
0.4
(8.9)
0.9
(3.4)
1.6
(0.7)
(0.1)
12.4
of which: Equity instruments
0.3
(0.0)
0.0
0.0
(0.0)
0.0
(0.0)
0.1
(0.1)
(0.0)
0.2
of which: Corporate and municipal
bonds
1.3
(0.1)
(0.0)
0.3
(0.4)
0.0
(0.0)
0.0
(0.0)
(0.0)
1.0
of which: Loans
19.6
0.4
(0.0)
0.0
(7.8)
0.9
(3.3)
1.4
(0.5)
(0.0)
10.6
Derivative financial instruments –
assets
2.6
0.1
0.1
0.0
(0.0)
0.4
(0.4)
0.1
(0.3)
(0.0)
2.4
of which: Interest rate
0.4
0.1
0.1
0.0
(0.0)
0.1
(0.1)
0.0
(0.1)
0.0
0.4
of which: Equity / index
1.3
(0.1)
(0.1)
0.0
(0.0)
0.3
(0.2)
0.0
(0.1)
(0.0)
1.2
of which: Credit
0.5
(0.0)
0.0
0.0
(0.0)
0.0
(0.1)
0.1
(0.1)
(0.0)
0.4
Financial assets at fair value not held
for trading
8.4
(0.0)
(0.1)
0.1
(0.1)
0.4
(0.4)
0.4
(0.1)
(0.1)
8.7
of which: Loans
2.3
0.1
0.1
0.0
(0.0)
0.2
(0.3)
0.0
(0.1)
(0.0)
2.2
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
3.1
(0.0)
(0.1)
0.0
(0.0)
0.0
(0.0)
0.0
0.0
(0.1)
3.0
of which: Investment fund units
0.4
(0.0)
0.0
0.0
(0.0)
0.0
(0.0)
0.3
(0.0)
(0.0)
0.7
of which: Asset-backed securities
0.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.4
Derivative financial instruments –
liabilities
5.6
0.3
0.3
0.0
(0.2)
1.6
(1.2)
0.3
(0.6)
(0.0)
5.9
of which: Interest rate
0.2
0.1
0.1
0.0
0.0
0.0
(0.1)
0.0
(0.0)
0.0
0.3
of which: Equity / index
3.3
0.5
0.4
0.0
(0.0)
1.5
(0.8)
0.2
(0.3)
(0.0)
4.3
of which: Credit
0.6
(0.0)
(0.0)
0.0
(0.0)
0.1
(0.2)
0.1
(0.1)
(0.0)
0.5
of which: Loan commitments
measured at FVTPL
1.0
(0.1)
(0.1)
0.0
(0.2)
0.0
(0.0)
0.0
(0.2)
(0.0)
0.6
Debt issued designated at fair value
15.3
0.2
0.2
0.0
0.0
1.6
(1.4)
0.9
(2.5)
(0.1)
14.0
Other financial liabilities designated at
fair value
2.6
(0.2)
(0.1)
0.0
(0.0)
0.0
(0.3)
0.5
(0.0)
(0.0)
2.7
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 Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
71
Note 9
Fair value measurement (continued)
f) Financial instruments not measured
at fair value
The table
below reflects
the estimated
fair values
of financial
instruments not
measured at
fair value.
Valuation
principles applied
when determining fair
value estimates for
financial instruments not
measured at
fair value
are
consistent with those described in “Note 21
Fair value measurement” in the “Consolidated financial statements”
section of the UBS Group Annual Report 2024.
Financial instruments not measured at fair value
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
21.1
21.1
18.9
18.9
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
594.1
592.2
580.0
579.7
Other financial assets measured at amortized cost
66.5
65.1
58.8
57.0
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
31.5
31.5
35.5
35.5
Customer deposits
744.9
745.6
745.8
746.6
Debt issued measured at amortized cost
213.9
218.5
214.2
220.6
Other financial liabilities measured at amortized cost
1
14.6
14.6
16.4
16.4
1 Excludes lease liabilities.
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
72
Note 10
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
38.5
34.2
3,716
18,048
Credit derivatives
3.2
3.6
173
Foreign exchange
49.5
51.1
7,248
294
Equity / index
40.9
48.0
1,419
104
Commodities
5.0
4.2
180
19
Other
3
0.9
1.1
178
Total derivative financial instruments, based on netting under IFRS Accounting Standards
4
138.0
142.1
12,913
18,465
Further netting potential not recognized on the balance
sheet
5
(122.6)
(127.8)
of which: netting of recognized financial liabilities / assets
(100.8)
(100.8)
of which: netting with collateral received / pledged
(21.8)
(27.0)
Total derivative financial instruments, after consideration of further netting potential
15.5
14.3
As of 31.12.24, USD bn
Derivative financial instruments
Interest rate
41.4
36.6
3,644
16,844
Credit derivatives
3.1
3.7
144
Foreign exchange
100.9
94.6
7,207
269
Equity / index
36.9
42.7
1,365
93
Commodities
2.6
2.2
155
17
Other
3
0.6
0.8
87
Total derivative financial instruments, based on netting under IFRS Accounting Standards
4
185.6
180.6
12,602
17,223
Further netting potential not recognized on the balance
sheet
5
(161.7)
(166.3)
of which: netting of recognized financial liabilities / assets
(135.5)
(135.5)
of which: netting with collateral received / pledged
(26.2)
(30.8)
Total derivative financial instruments, after consideration of further netting potential
23.9
14.3
1 In cases where derivative
financial instruments are presented
on a net basis
on the balance sheet,
the respective notional
values of the netted
derivative financial instruments
are still presented on
a gross basis.
Notional amounts of client-cleared ETD and OTC transactions
through central clearing counterparties are not disclosed, as they
have a significantly different risk profile.
2 Other notional values relate to derivatives
that are cleared through either a central counterparty or an exchange and settled on a
daily basis. The fair value of these derivatives is presented on the balance sheet 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 Group 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
31.5
44.0
35.5
Further netting potential not recognized on the balance
sheet
2
(24.3)
(16.6)
(28.3)
(21.7)
of which: netting of recognized financial liabilities / assets
(22.2)
(14.5)
(25.9)
(19.3)
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 Group Annual Report 2024 for more information.
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
73
Note
11
Other assets and liabilities
a) Other financial assets measured at amortized cost
USD m
31.3.25
31.12.24
Debt securities
48,097
41,585
Loans to financial advisors
2,738
2,723
Fee- and commission-related receivables
2,506
2,242
Finance lease receivables
6,056
5,879
Settlement and clearing accounts
445
430
Accrued interest income
2,101
2,115
Other
1
4,571
3,862
Total other financial assets measured at amortized cost
66,513
58,835
1 Predominantly includes cash collateral provided to exchanges and clearing houses to secure securities trading activity through
those counterparties.
b) Other non-financial assets
USD m
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
1,867
1,679
Current tax assets
1,460
1,546
VAT,
withholding tax and other tax receivables
875
1,233
Properties and other non-current assets held for sale
189
196
Assets of disposal groups held for sale
2
1,705
Other
1,810
2,119
Total other non-financial assets
15,836
17,766
1 Refer to Note 14 for more information.
2 Refer to Note 5 for more information about the sale of Select Portfolio Servicing.
c) Other financial liabilities measured at amortized cost
USD m
31.3.25
31.12.24
Other accrued expenses
3,039
3,140
Accrued interest expenses
4,951
5,876
Settlement and clearing accounts
2,218
1,944
Lease liabilities
4,560
4,597
Other
4,375
5,476
Total other financial liabilities measured at amortized cost
19,143
21,033
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
Total other financial liabilities designated at fair value
27,235
28,699
e) Other non-financial liabilities
USD m
31.3.25
31.12.24
Compensation-related liabilities
6,716
9,592
of which: net defined benefit liability
779
763
Current tax liabilities
1,818
1,671
Deferred tax liabilities
365
340
VAT,
withholding tax and other tax payables
1,054
1,156
Deferred income
546
555
Liabilities of disposal groups held for sale
1
1,199
Other
91
320
Total other non-financial liabilities
10,590
14,834
1 Refer to Note 5 for more information about the sale of Select Portfolio Servicing.
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
74
Note
12
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
14,352
14,250
Commodity-linked
3,462
3,592
Other
7,995
7,131
of which: debt that contributes to total loss-absorbing capacity
5,263
4,934
Total debt issued designated at fair value
2
112,092
107,909
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
13
Debt issued measured at amortized cost
Debt issued measured at amortized cost
USD m
31.3.25
31.12.24
Short-term debt
1
30,572
30,509
Senior unsecured debt
130,323
133,159
of which: contributes to total loss-absorbing capacity
93,863
92,515
Covered bonds
9,044
8,762
Subordinated debt
17,038
15,030
of which: eligible as high-trigger loss-absorbing additional
tier 1 capital instruments
2
16,352
13,084
of which: eligible as low-trigger loss-absorbing additional
tier 1 capital instruments
1,245
of which: eligible as non-Basel III-compliant tier 2 capital
instruments
205
207
Debt issued through the Swiss central mortgage institutions
26,474
26,335
Other long-term debt
429
424
Long-term debt
3
183,308
183,709
Total debt issued measured at amortized cost
4,5
213,880
214,219
1 Debt with an original contractual
maturity of less than
one year,
includes mainly certificates of deposit
and commercial paper.
2 For 31 March
2025, includes USD 10.1bn (31
December 2024: USD 6.9bn)
that
are, upon the occurrence of a trigger event or a viability event, subject to conversion into ordinary UBS
shares.
3 Debt with an original contractual maturity greater than or equal to one year. The classification of debt
issued into short-term and long-term does
not consider any early redemption
features.
4 Net of bifurcated embedded derivatives,
the fair value of which
was not material for the
periods presented.
5 Except for
Covered bonds (100% secured), Debt issued through the Swiss central mortgage institutions (100% secured) and Other long-term
debt (92% secured), 100% of the balance was unsecured as of 31 March 2025.
Note 14
Provisions and contingent liabilities
a) Provisions and contingent liabilities
The table below presents an overview of total provisions
and contingent liabilities.
Overview of total provisions and contingent liabilities
USD m
31.3.25
31.12.24
Provisions related to expected credit losses (IFRS 9,
Financial Instruments
)
1
337
320
Provisions related to Credit Suisse loan commitments (IFRS
3,
Business Combinations
)
809
997
Provisions related to litigation, regulatory and similar matters
(IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
)
3,852
3,602
Acquisition-related contingent liabilities relating to litigation,
regulatory and similar matters (IFRS 3,
Business Combinations
)
2,031
2,122
Restructuring, real-estate and other provisions (IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
)
1,489
1,368
Total provisions and contingent liabilities
8,517
8,409
1 Refer to Note 8c for more information about ECL provisions recognized for off-balance sheet financial instruments and credit lines.
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
75
Note 14
Provisions and contingent liabilities
(continued)
The table below presents additional information for provisions under IAS 37,
Provisions, Contingent Liabilities and
Contingent Assets
.
Additional information for provisions under IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
USD m
Litigation,
regulatory and
similar matters
1
Restructuring
2
Real estate
3
Other
4
Total
Balance as of 31 December 2024
3,602
813
240
315
4,969
Increase in provisions recognized in the income statement
124
318
4
41
488
Release of provisions recognized in the income statement
(11)
(34)
(2)
(22)
(68)
Provisions used in conformity with designated purpose
(30)
(191)
(13)
(12)
(246)
Reclassifications
100
5
0
0
0
100
Foreign currency translation and other movements
66
15
9
7
97
Balance as of 31 March 2025
3,852
921
239
329
5,340
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 439m of personnel-related restructuring provisions as
of 31 March 2025 (31 December 2024: USD 334m), 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.
5 Includes reclassifications from IFRS 3 contingent liabilities
to IAS 37 provisions.
Information about provisions and
contingent liabilities in respect of
litigation, regulatory and similar matters,
as a
class,
is
included
in
Note 14b.
There
are
no
material
contingent
liabilities
associated
with
the
other
classes
of
provisions.
b) Litigation, regulatory and similar matters
The Group operates in
a legal and regulatory
environment that exposes it to
significant litigation and similar risks
arising from disputes
and regulatory proceedings. As
a result,
UBS (which for
purposes of this
Note may
refer to
UBS
Group
AG
and/or
one
or
more
of
its
subsidiaries,
as
applicable)
is
involved
in
various
disputes
and
legal
proceedings, including litigation, arbitration,
and regulatory and criminal investigations.
Such matters are subject
to many uncertainties,
and the outcome and the
timing of resolution are
often difficult to
predict,
particularly in
the
earlier
stages
of
a
case.
There
are
also
situations
where
the Group
may
enter into
a
settlement
agreement.
This
may
occur
in
order
to
avoid
the
expense,
management
distraction
or
reputational
implications of
continuing to
contest liability,
even
for those
matters for
which
the Group
believes it
should be
exonerated. The uncertainties inherent in all such matters affect the amount and timing of any potential outflows
for both matters
with respect to
which provisions have
been established and
other contingent liabilities.
The Group
makes
provisions
for
such
matters
brought
against
it
when,
in
the
opinion
of
management
after
seeking legal
advice, it
is more
likely than
not that
the Group
has a
present legal
or constructive obligation
as a
result of
past
events, it
is probable
that an
outflow of
resources will
be required,
and the
amount can
be reliably
estimated. Where
these factors
are
otherwise satisfied,
a
provision may
be
established for
claims that
have
not
yet been
asserted
against the
Group, but
are nevertheless
expected to
be, based
on
the Group’s
experience with
similar asserted
claims.
If
any
of
those
conditions
is
not
met,
such
matters
result
in
contingent
liabilities.
If
the
amount
of
an
obligation cannot
be reliably
estimated, a
liability exists
that is
not recognized
even if
an outflow
of resources
is
probable. Accordingly, no
provision is
established even if
the potential
outflow of resources
with respect
to such
matters could be significant. Developments relating to a matter that occur after the relevant reporting period, but
prior
to
the
issuance
of
financial
statements, which
affect
management’s assessment
of
the
provision
for
such
matter
(because,
for
example,
the
developments provide
evidence of
conditions that
existed
at
the
end
of
the
reporting
period),
are
adjusting
events
after
the
reporting period
under
IAS
10
and
must
be
recognized in
the
financial statements for the reporting period.
Specific litigation, regulatory and other matters are
described below, including all such matters that
management
considers to be material and others that management believes to be of significance to the Group due to potential
financial,
reputational
and
other
effects.
The
amount
of
damages
claimed,
the
size
of
a
transaction
or
other
information is
provided where
available and
appropriate in order
to assist
users in
considering the
magnitude of
potential exposures.
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
76
Note 14
Provisions and contingent liabilities
(continued)
In the case of certain matters below, we state that we have established a provision, and for the other matters, we
make no such statement. When we
make this statement and we expect
disclosure of the amount of a provision
to
prejudice seriously our
position with other
parties in the
matter because it
would reveal what
UBS believes to
be
the
probable
and
reliably estimable
outflow, we
do
not
disclose
that amount.
In
some
cases we
are
subject to
confidentiality obligations
that preclude
such disclosure.
With respect
to the
matters for
which we
do not
state
whether we have
established a provision,
either: (a) we
have not established
a provision; or
(b) we have
established
a provision
but expect
disclosure of
that fact
to prejudice
seriously our
position with
other parties
in the
matter
because it would reveal the fact that
UBS believes an outflow of resources to be probable
and reliably estimable.
With respect to certain litigation, regulatory
and similar matters for which we
have established provisions, we are
able to
estimate the expected
timing of outflows.
However, the aggregate
amount of the
expected outflows for
those matters for which we
are able to estimate expected
timing is immaterial relative to
our current and expected
levels of liquidity over the relevant time periods.
The
aggregate
amount
provisioned
for
litigation,
regulatory
and
similar
matters
as
a
class
is
disclosed
in
the
“Provisions” table in Note 14 a) above. UBS provides below
an estimate of the aggregate liability for its litigation,
regulatory and
similar matters
as a
class of
contingent liabilities.
Estimates of
contingent liabilities
are inherently
imprecise and
uncertain as
these
estimates require UBS
to
make speculative
legal assessments
as
to claims
and
proceedings that involve
unique fact patterns
or novel legal
theories, that have
not yet been
initiated or are
at early
stages of
adjudication, or
as to
which
alleged damages
have
not been
quantified by
the claimants.
Taking into
account these uncertainties
and the other factors
described herein, UBS
estimates the future losses
that could arise
from litigation,
regulatory and
similar matters
disclosed below
for which
an estimate
is possible,
that are
not covered
by existing
provisions (including
acquisition-related contingent
liabilities established
under IFRS
3 in connection
with
the acquisition of Credit Suisse), are in the range
of USD 0bn to USD 1.8bn.
Litigation, regulatory
and similar
matters may
also result
in non-monetary
penalties and
consequences. A
guilty plea
to, or conviction of, a crime could have material consequences for UBS. Resolution of regulatory proceedings may
require UBS to obtain waivers of regulatory disqualifications to maintain certain operations, may entitle regulatory
authorities to limit, suspend or terminate
licenses and regulatory authorizations, and may
permit financial market
utilities to
limit, suspend
or terminate
UBS’s participation
in such
utilities. Failure
to obtain
such waivers,
or any
limitation, suspension
or termination
of licenses,
authorizations or
participations, could
have material
consequences
for UBS.
The
amounts
shown
in
the
table
below
reflect
the
provisions
recorded
under
IFRS
Accounting
Standards.
In
connection with
the acquisition
of Credit
Suisse, UBS
Group AG
additionally has
reflected in
its purchase
accounting
under IFRS
3 a
valuation adjustment
reflecting an
estimate of
outflows relating
to contingent
liabilities for
all present
obligations included in
the scope
of the
acquisition at fair
value upon
closing, even
if it
is not
probable that the
contingent
liability
will
result
in
an
outflow
of
resources,
significantly
decreasing
the
recognition
threshold
for
litigation
liabilities
beyond
those
that
generally apply
under
IFRS
Accounting Standards.
The
IFRS
3
acquisition-
related contingent liabilities
of USD 2.0bn at
31 March 2025 reflect
a decrease of
USD 0.1bn from 31 December
2024 as a result of reclassifications to provisions
under IAS 37.
Provisions for litigation, regulatory and similar matters, by business division and in Group Items
1
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core
and Legacy
Group Items
UBS Group
Balance as of 31 December 2024
1,271
147
1
266
1,779
139
3,602
Increase in provisions recognized in the income statement
15
0
0
29
7
73
124
Release of provisions recognized in the income statement
(1)
0
0
(9)
0
(1)
(11)
Provisions used in conformity with designated purpose
(12)
0
0
0
(15)
(2)
(30)
Reclassifications
2
(1)
0
0
0
101
0
100
Foreign currency translation and other movements
46
6
0
7
6
0
66
Balance as of 31 March 2025
1,318
153
0
293
1,878
209
3,852
1 Provisions, if any, for
the matters described in items 2
and 9 of this Note are recorded
in Global Wealth Management. Provisions,
if any, for the matters
described in items 4, 5, 6, 7,
8, 11 and 12 of this
Note are
recorded in Non-core
and Legacy.
Provisions, if
any, for
the matters described
in item 1
of this Note
are allocated between
Global Wealth
Management, Personal
& Corporate
Banking and Non-core
and Legacy.
Provisions, if any, for the matters described in item 3 of this Note are allocated between the Investment Bank, Non-core
and Legacy and Group Items. Provisions, if any, for the matters described in item 10 of this Note
are allocated between the Investment Bank and Non-core and Legacy.
2 Includes reclassifications from IFRS 3 contingent liabilities to IAS 37 provisions.
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
77
Note 14
Provisions and contingent liabilities
(continued)
- Inquiries regarding cross-border wealth management
businesses
Tax
and regulatory
authorities in
a number
of countries
have made
inquiries, served
requests for
information or
examined
employees
located
in
their
respective
jurisdictions
relating
to
the
cross-border
wealth
management
services provided by
UBS and
other financial
institutions. Credit Suisse
offices in various
locations, including
the UK,
the Netherlands, France and
Belgium, have been contacted
by regulatory and law enforcement
authorities seeking
records and information
concerning investigations
into Credit Suisse’s
historical private
banking services
on a cross-
border basis and
in part through
its local branches
and banks.
The UK and
French aspects of
these issues have
been
closed. UBS is continuing to cooperate with
the authorities.
Since 2013, UBS
(France) S.A., UBS AG
and certain former employees
have been under investigation in
France in
relation to UBS’s cross-border business with French
clients. In connection with this investigation, the investigating
judges ordered UBS AG to provide bail (“
caution
”) of EUR 1.1bn.
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
entered
into
settlement
agreements
with
the
SEC,
Federal
Reserve
and
New
York
Department of Financial Services and entered
into an agreement with the US Department
of Justice (DOJ) to plead
guilty to
conspiring to
aid and
abet US
taxpayers in
filing false
tax returns
(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. UBS continues to cooperate with
the ongoing investigation by the DOJ.
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.
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).
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
78
Note 14
Provisions and contingent liabilities
(continued)
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.
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.
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
79
Note 14
Provisions and contingent liabilities
(continued)
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.
- 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.
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
80
Note 14
Provisions and contingent liabilities
(continued)
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.
- 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.
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
81
Note 14
Provisions and contingent liabilities
(continued)
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.
- 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.
UBS Group first
quarter 2025
report |
Consolidated
financial statements
| Notes to the
UBS Group AG
interim consolidated
financial
statements (unaudited)
82
Note 14
Provisions and contingent liabilities
(continued)
- Archegos
Credit
Suisse
and
UBS
have
received
requests
for
documents
and
information
in
connection
with
inquiries,
investigations
and/or
actions
relating
to
their
relationships
with
Archegos
Capital
Management
(Archegos),
including from FINMA
(assisted by a
third party appointed
by FINMA), the
DOJ, the SEC,
the US Federal
Reserve,
the
US
Commodity
Futures
Trading
Commission
(CFTC),
the
US
Senate
Banking
Committee,
the
Prudential
Regulation Authority (PRA),
the FCA,
the WEKO,
the Hong
Kong Competition Commission
and other
regulatory
and governmental agencies. UBS is cooperating with the authorities in these matters. In July 2023, CSI and CSSEL
entered into a settlement agreement
with the PRA providing for
the resolution of the PRA’s
investigation. Also in
July 2023, FINMA
issued a decree
ordering remedial measures
and the Federal
Reserve Board issued
an Order
to
Cease and Desist. Under the terms of the order,
Credit Suisse paid a civil money penalty and agreed to undertake
certain remedial
measures relating
to counterparty
credit risk
management, liquidity
risk management
and non-
financial risk management, as well as enhancements to board oversight and governance. UBS Group, as
the legal
successor to Credit Suisse Group AG,
is a party to the FINMA
decree and Federal Reserve Board
Cease and Desist
Order.
Civil
actions
relating
to
Credit
Suisse’s
relationship with
Archegos
have
been
filed
against
Credit
Suisse
and/or
certain officers and directors, including claims
for breaches of fiduciary duties.
- Credit Suisse financial disclosures
Credit Suisse
Group AG
and certain
directors, officers and
executives have
been named
in securities
class action
complaints pending in the SDNY and New Jersey federal court. These complaints, filed on behalf
of purchasers of
Credit Suisse shares, additional
tier 1 capital notes, and other securities in 2023 and 2024, allege that defendants
made
misleading
statements
regarding:
(i) customer
outflows
in
late
2022;
(ii) the
adequacy
of
Credit
Suisse’s
financial
reporting
controls;
and
(iii) the
adequacy
of
Credit
Suisse’s
risk
management
processes,
and
include
allegations
relating
to
Credit
Suisse
Group AG’s
merger
with
UBS
Group AG.
Many
of
the
actions
have
been
consolidated, and
a motion
to dismiss
was granted
in part
and denied
in part
in September
- For
one additional
action, filed in October 2023, a motion to dismiss
remains pending.
Credit Suisse has received requests for documents and information from regulatory and governmental agencies in
connection with inquiries,
investigations and/or actions
relating to
these matters, as
well as
for other statements
regarding Credit Suisse’s financial condition,
including from the SEC, the DOJ
and FINMA. UBS is cooperating with
the authorities in these matters.
- Merger-related litigation
Certain Credit
Suisse Group AG
affiliates and certain
directors, officers
and executives have
been named in
class
action complaints pending in
the SDNY.
One complaint, brought
on behalf of
Credit Suisse shareholders,
alleges
breaches of fiduciary duty under Swiss law and
civil RICO claims under US federal law. In February 2024, the
court
granted
defendants’
motions
to
dismiss
the
civil
RICO
claims
and
conditionally
dismissed
the
Swiss
law
claims
pending defendants’ acceptance of
jurisdiction in Switzerland. In
March 2024, having
received consents to
Swiss
jurisdiction from all defendants served with the complaint, the
court dismissed the Swiss law claims against those
defendants. Additional
complaints, brought
on behalf
of holders
of Credit
Suisse additional
tier 1 capital
notes (AT1
noteholders) allege breaches of
fiduciary duty under Swiss
law, arising
from a series
of scandals and
misconduct,
which
led
to
Credit
Suisse
Group
AG’s
merger
with
UBS
Group
AG,
causing
losses
to
shareholders
and
AT1
noteholders. Motions to dismiss these complaints were granted in March 2024 and
September 2024 on the basis
that Switzerland
is the
most appropriate
forum for
litigation. Plaintiffs
in two
of these
cases have
appealed the
dismissal.
UBS Group first quarter 2025 report |
Appendix
83
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 (bps)
Calculated as total credit loss expense / (release)
(annualized for reporting periods shorter than
12 months) divided by the average balance
of lending
assets for the reporting period, expressed in basis
points. Lending assets include the gross amounts
of
Amounts due from banks and Loans and advances
to
customers.
This measure provides information about the total
credit loss expense / (release) incurred in relation to
the average balance of gross lending assets for the
period.
Credit-impaired lending assets as a
percentage of total lending assets,
gross (%)
Calculated as credit-impaired lending assets divided
by total lending assets. Lending assets includes
the
gross amounts of Amounts due from banks and
Loans and advances to customers. Credit-impaired
lending assets refers to the sum of stage 3 and
purchased credit-impaired positions.
This measure provides information about the
proportion of credit-impaired lending assets in the
overall portfolio of gross lending assets.
Fee-generating assets (USD)
– Global Wealth Management
Calculated as the sum of discretionary and
nondiscretionary wealth management portfolios
(mandate volume) and assets where generated
revenues are predominantly of a recurring nature, i.e.
mainly investment, mutual, hedge and private-market
funds where we have a distribution agreement,
including client commitments into closed-ended
private-market funds from the date that recurring
fees are charged. Assets related to our Global
Financial Intermediaries business are excluded, as
are
assets of sanctioned clients.
This measure provides information about the volume
of invested assets that create a revenue stream,
whether as a result of the nature of the contractual
relationship with clients or through the fee structure
of the asset. An increase in the level of fee-generating
assets results in an increase in the associated revenue
stream. Assets of sanctioned clients are excluded from
fee-generating assets.
Gross margin on invested assets (bps)
– Asset Management
Calculated as total revenues (annualized for reporting
periods shorter than 12 months) divided by
average
invested assets.
This measure provides information about the total
revenues of the business in relation to invested assets.
Impaired loan portfolio as a percentage
of total loan portfolio, gross (%)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as impaired loan portfolio divided by
total
gross loan portfolio.
This measure provides information about the
proportion of impaired loan portfolio in the total gross
loan portfolio.
Integration-related expenses (USD)
Generally include costs of internal staff
and
contractors substantially dedicated to integration
activities, retention awards, redundancy costs,
incremental expenses from the shortening of useful
lives of property, equipment and software, and
impairment charges relating to these assets.
Classification as integration-related expenses does
not
affect the timing of recognition and measurement of
those expenses or the presentation thereof in the
income statement. Integration-related expenses
incurred by Credit Suisse also included expenses
associated with restructuring programs that existed
prior to the acquisition.
This measure provides information about expenses
that are temporary, incremental and directly related to
the integration of Credit Suisse into UBS.
UBS Group first quarter 2025 report |
Appendix
84
APM label
Calculation
Information content
Invested assets (USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management
Calculated as the sum of managed fund
assets,
managed institutional assets, discretionary and
advisory wealth management portfolios, fiduciary
deposits, time deposits, savings accounts,
and wealth
management securities or brokerage accounts.
This measure provides information about the volume
of client assets managed by or deposited with
UBS for
investment purposes.
Net interest margin (bps)
– Personal & Corporate Banking
Calculated as net interest income (annualized for
reporting periods shorter than 12 months) divided by
average loans.
This measure provides information about the
profitability of the business by calculating the
difference between the price charged for lending and
the cost of funding, relative to loan value.
Net new assets (USD)
– Global Wealth Management
Calculated as the net amount of inflows and
outflows
of invested assets (as defined in UBS policy) recorded
during a specific period, plus interest and dividends.
Excluded from the calculation are movements due to
market performance, foreign exchange translation,
fees, and the effects on invested assets of strategic
decisions by UBS to exit markets or services.
This measure provides information about the
development of invested assets during a
specific
period as a result of net new asset flows, plus the
effect of interest and dividends.
Net new assets growth rate (%)
– Global Wealth Management
Calculated as the net amount of inflows and
outflows
of invested assets (as defined in UBS policy) recorded
during a specific period (annualized for reporting
periods shorter than 12 months), plus
interest and
dividends, divided by total invested assets
at the
beginning of the period.
This measure provides information about the growth
of invested assets during a specific period
as a result
of net new asset flows.
Net new deposits (USD)
– Global Wealth Management
Calculated as the net amount of inflows and
outflows
of deposits recorded during a specific period. Deposits
include customer deposits and customer brokerage
payables. Excluded from the calculation are
movements due to fair value measurement, foreign
exchange translation, 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.
›
Refer to the “Group performance” section of this
report for more information
This measure provides information about the amount
of operating expenses, while excluding items
that
management believes are not representative of the
underlying performance of the businesses.
UBS Group first quarter 2025 report |
Appendix
85
APM label
Calculation
Information content
Operating profit / (loss) before tax
(underlying) (USD)
Calculated by adjusting operating profit / (loss) before
tax as reported in accordance with IFRS Accounting
Standards for items that management believes
are
not representative of the underlying performance of
the businesses.
›
Refer to the “Group performance” section of this
report for more information
This measure provides information about the amount
of operating profit / (loss) before tax, while excluding
items that management believes are not
representative of the underlying performance of the
businesses.
Pre-tax profit growth (%)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management,
the Investment Bank
Calculated as the change in net profit before tax
attributable to shareholders from continuing
operations between current and comparison periods
divided by net profit before tax attributable to
shareholders from continuing operations of the
comparison period.
This measure provides information about pre-tax
profit growth since the comparison period.
Pre-tax profit growth (underlying) (%)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management,
the Investment Bank
Calculated as the change in net profit before tax
attributable to shareholders from continuing
operations between current and comparison periods
divided by net profit before tax attributable to
shareholders from continuing operations of the
comparison period. Net profit before tax attributable
to shareholders from continuing operations excludes
items that management believes are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about pre-tax
profit growth since the comparison period, while
excluding items that management believes
are not
representative of the underlying performance of the
businesses.
Recurring net fee income
(USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as the total of fees for services provided
on
an ongoing basis, such as portfolio management
fees,
asset-based investment fund fees and custody
fees,
which are generated on client assets, and
administrative fees for accounts.
This measure provides information about the amount
of recurring net fee income.
Return on attributed equity (%)
Calculated as business division operating profit before
tax (annualized for reporting periods shorter than
12 months) divided by average attributed
equity.
This measure provides information about the
profitability of the business divisions in relation to
attributed equity.
Return on common equity tier 1
capital (%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average common equity
tier 1
capital.
This measure provides information about the
profitability of the business in relation to common
equity tier 1 capital.
Return on equity (%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average equity attributable
to
shareholders.
This measure provides information about the
profitability of the business in relation to equity.
Return on leverage ratio denominator,
gross (%)
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 (%)
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.
›
Refer to the “Group performance” section of this
report for more information
This measure provides information about the amount
of total revenues, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Transaction-based income
(USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as the total of the non-recurring portion
of
net fee and commission income, mainly composed
of
brokerage and transaction-based investment fund
fees, and credit card fees, as well as fees for payment
and foreign-exchange transactions, together with
other net income from financial instruments
measured at fair value through profit or loss.
This measure provides information about the amount
of the non-recurring portion of net fee and
commission income, together with other net
income
from financial instruments measured at fair value
through profit or loss.
Underlying cost / income ratio (%)
Calculated as underlying operating expenses
(as
defined above) divided by underlying total
revenues
(as defined above).
This measure provides information about the
efficiency of the business by comparing operating
expenses with total revenues, while excluding items
that management believes are not representative of
the underlying performance of the businesses.
UBS Group first quarter 2025 report |
Appendix
86
APM label
Calculation
Information content
Underlying net profit growth (%)
Calculated as the change in net profit attributable
to
shareholders from continuing operations between
current and comparison periods divided by net profit
attributable to shareholders from continuing
operations of the comparison period.
Net profit
attributable to shareholders from continuing
operations excludes items that management
believes
are not representative of the underlying performance
of the businesses and also excludes related tax
impact.
This measure provides information about profit
growth since the comparison period, while excluding
items that management believes are not
representative of the underlying performance of the
businesses.
Underlying return on attributed equity
(%)
Calculated as underlying business division
operating
profit before tax (annualized for reporting periods
shorter than 12 months) (as defined above)
divided by
average attributed equity.
This measure provides information about the
profitability of the business divisions in relation to
attributed equity, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Underlying return on common equity
tier 1 capital (%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average common equity
tier 1
capital. Net profit attributable to shareholders
excludes items that management believes
are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about the
profitability of the business in relation to common
equity tier 1 capital, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Underlying return on tangible equity
(%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average equity attributable
to
shareholders less average goodwill and intangible
assets. Net profit attributable to shareholders excludes
items that management believes are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about the
profitability of the business in relation to tangible
equity, while excluding items that management
believes are not representative of the underlying
performance of the businesses.
This is
a general list
of the APMs
used in our
financial reporting. Not
all of
the APMs listed
above may appear
in
this particular report.
Information related to underlying return on common equity tier 1 capital (RoCET1) and underlying return on tangible
equity (%)
As of or for the quarter ended
USD m, except where indicated
31.3.25
31.12.24
31.3.24
1
Underlying operating profit / (loss) before tax
2,586
1,768
2,617
Underlying tax expense / (benefit)
2
587
456
677
Net profit / (loss) attributable to non-controlling interests
10
9
9
Underlying net profit / (loss) attributable to shareholders
2
1,989
1,303
1,932
Underlying net profit / (loss) attributable to shareholders
3
7,955
5,211
7,727
Tangible equity
80,276
78,192
77,393
Average tangible equity
79,234
79,084
77,751
CET1 capital
69,152
71,367
77,663
Average CET1 capital
70,260
72,790
77,833
Underlying return on tangible equity (%)
2
10.0
6.6
9.9
Underlying return on common equity tier 1 capital (%)
2
11.3
7.2
9.9
1 Comparative-period information has been revised. Refer to “Note 2 Accounting for the acquisition
of the Credit Suisse Group” in the “Consolidated financial statements” section of
the UBS Group Annual Report
2024, available under “Annual reporting” at ubs.com/investors,
for more information about the relevant adjustments.
2 In the second quarter of 2024, comparative-period information for the first quarter of 2024
has been restated to reflect the updated underlying tax impact.
3 Annualized for reporting periods shorter than 12 months.
UBS Group first quarter 2025 report |
Appendix
87
Abbreviations frequently used in our financial reports
A
ABS
asset-backed securities
AG
Aktiengesellschaft
AGM
Annual General Meeting of
shareholders
AI
artificial intelligence
A-IRB
advanced internal ratings-
based
ALCO
Asset and Liability
Committee
AMA
advanced measurement
approach
AML
anti-money laundering
AoA
Articles of Association
APM
alternative performance
measure
ARR
alternative reference rate
ARS
auction rate securities
ASF
available stable funding
AT1
additional tier 1
AuM
assets under management
B
BCBS
Basel Committee on
Banking Supervision
BIS
Bank for International
Settlements
BoD
Board of Directors
C
CAO
Capital Adequacy
Ordinance
CCAR
Comprehensive Capital
Analysis and Review
CCF
credit conversion factor
CCP
central counterparty
CCR
counterparty credit risk
CCRC
Corporate Culture and
Responsibility Committee
CDS
credit default swap
CEO
Chief Executive Officer
CET1
common equity tier 1
CFO
Chief Financial Officer
CGU
cash-generating unit
CHF
Swiss franc
CIO
Chief Investment Office
C&ORC
Compliance & Operational
Risk Control
CRM
credit risk mitigation
CRO
Chief Risk Officer
CST
combined stress test
CUSIP
Committee on Uniform
Security Identification
Procedures
CVA
credit valuation adjustment
D
DBO
defined benefit obligation
DCCP
Deferred Contingent
Capital Plan
DFAST
Dodd–Frank Act Stress Test
DM
discount margin
DOJ
US Department of Justice
DTA
deferred tax asset
DVA
debit valuation adjustment
E
EAD
exposure at default
EB
Executive Board
EC
European Commission
ECB
European Central Bank
ECL
expected credit loss
EGM
Extraordinary General
Meeting of shareholders
EIR
effective interest rate
EL
expected loss
EMEA
Europe, Middle East and
Africa
EOP
Equity Ownership Plan
EPS
earnings per share
ESG
environmental, social and
governance
ETD
exchange-traded derivatives
ETF
exchange-traded fund
EU
European Union
EUR
euro
EURIBOR
Euro Interbank Offered Rate
EVE
economic value of equity
EY
Ernst & Young Ltd
F
FCA
UK Financial Conduct
Authority
FDIC
Federal Deposit Insurance
Corporation
FINMA
Swiss Financial Market
Supervisory Authority
FMIA
Swiss Financial Market
Infrastructure Act
FRTB
Fundamental Review of the
Trading Book
FSB
Financial Stability Board
FTA
Swiss Federal Tax
Administration
FVA
funding valuation
adjustment
FVOCI
fair value through other
comprehensive income
FVTPL
fair value through profit or
loss
FX
foreign exchange
G
GAAP
generally accepted
accounting principles
GBP
pound sterling
GCRG
Group Compliance,
Regulatory and Governance
GDP
gross domestic product
GEB
Group Executive Board
GHG
greenhouse gas
GIA
Group Internal Audit
GRI
Global Reporting Initiative
G-SIB
global systemically
important bank
H
HQLA
high-quality liquid assets
I
IA
Internal Audit
IAS
International Accounting
Standards
IASB
International Accounting
Standards Board
IBOR
interbank offered rate
IFRIC
International Financial
Reporting Interpretations
Committee
IFRS
accounting standards
Accounting
issued by the IASB
Standards
IRB
internal ratings-based
IRRBB
interest rate risk in the
banking book
ISDA
International Swaps and
Derivatives Association
ISIN
International Securities
Identification Number
UBS Group first quarter 2025 report |
Appendix
88
Abbreviations frequently used in our financial reports (continued)
K
KRT
Key Risk Taker
L
LAS
liquidity-adjusted stress
LCR
liquidity coverage ratio
LGD
loss given default
LIBOR
London Interbank Offered
Rate
LLC
limited liability company
LoD
lines of defense
LRD
leverage ratio denominator
LTIP
Long-Term
Incentive Plan
LTV
loan-to-value
M
M&A
mergers and acquisitions
MRT
Material Risk Taker
N
NII
net interest income
NSFR
net stable funding ratio
NYSE
New York Stock Exchange
O
OCA
own credit adjustment
OCI
other comprehensive
income
OECD
Organisation for Economic
Co-operation and
Development
OTC
over-the-counter
P
PCI
purchased credit impaired
PD
probability of default
PIT
point in time
PPA
purchase price allocation
Q
QCCP
qualifying central
counterparty
R
RBC
risk-based capital
RbM
risk-based monitoring
REIT
real estate investment trust
RMBS
residential mortgage-
backed securities
RniV
risks not in VaR
RoCET1
return on CET1 capital
RoU
right-of-use
rTSR
relative total shareholder
return
RWA
risk-weighted assets
S
SA
standardized approach or
société anonyme
SA-CCR
standardized approach for
counterparty credit risk
SAR
Special Administrative
Region of the People’s
Republic of China
SDG
Sustainable Development
Goal
SEC
US Securities and Exchange
Commission
SFT
securities financing
transaction
SIBOR
Singapore Interbank
Offered Rate
SICR
significant increase in credit
risk
SIX
SIX Swiss Exchange
SME
small and medium-sized
entities
SMF
Senior Management
Function
SNB
Swiss National Bank
SOR
Singapore Swap Offer Rate
SPPI
solely payments of principal
and interest
SRB
systemically relevant bank
SVaR
stressed value-at-risk
T
TBTF
too big to fail
TCFD
Task
Force on Climate-
related Financial Disclosures
TIBOR
Tokyo
Interbank Offered
Rate
TLAC
total loss-absorbing capacity
TTC
through the cycle
U
USD
US dollar
V
VaR
value-at-risk
VAT
value added tax
This is a
general list
of the
abbreviations frequently
used in
our financial
reporting. Not
all of the
listed abbreviations
may appear in this particular report.
UBS Group first quarter 2025 report |
Appendix
89
Information sources
Reporting publications
Annual publications
UBS
Group
Annual
Report
:
Published
in
English,
this
report
provides
descriptions
of:
the
Group
strategy
and
performance; the
strategy and
performance of
the business divisions
and Group functions;
risk, treasury
and capital
management; corporate
governance;
the compensation
framework, including
information about
compensation for
the Board of Directors and the Group Executive Board members; and financial information, including the financial
statements.
“Auszug aus
dem Geschäftsbericht
”: This publication
provides a German
translation of
selected sections
of the UBS
Group Annual Report.
Compensation
Report
:
This
report
discusses
the
compensation
framework
and
provides
information
about
compensation for
the Board
of Directors
and the
Group Executive
Board members.
It is
available in
English and
German (
“Vergütungsbericht
”) and represents a component of the UBS
Group Annual Report.
Sustainability Report
: Published
in English,
the Sustainability Report
provides disclosures on
environmental, social
and governance topics related to the UBS Group.
It also provides certain disclosures related to diversity,
equity and
inclusion.
Quarterly publications
Quarterly financial report
: This report provides an
update on performance and strategy (where
applicable) for the
respective quarter. It is available in English.
The annual
and quarterly
publications
are available
in .pdf and
online formats
at
ubs.com/investors
, under
“Financial
information”.
Printed copies, in any language, of the aforementioned
annual publications are no longer provided.
Other information
Website
The “Investor
Relations” website
at
ubs.com/investors
provides the
following information
about UBS:
results-related
news
releases;
financial
information,
including
results-related
filings
with
the
US
Securities
and
Exchange
Commission
(the
SEC);
information
for
shareholders,
including
UBS
dividend
and
share
repurchase
program
information, and for bondholders, including rating agencies reports; the corporate calendar; and presentations by
management for investors and financial analysts. Information is available online in English, with some information
also available in German.
Results presentations
Quarterly
results
presentations
are
webcast
live.
Recordings
of
most
presentations
can
be
downloaded
from
ubs.com/presentations
.
Messaging service
alerts
to
news
about
UBS
can
be
subscribed
for
under
“UBS
News
Alert”
at
ubs.com/global/en/investor-
relations/contact/investor-services.html
. Messages are sent in English, German, French or Italian, with an option to
select theme preferences for such alerts.
Form 20-F and other submissions to the US
Securities and Exchange Commission
UBS files periodic
reports with
and submits
other information
to the
SEC. Principal
among these
filings is the
annual
report on Form 20-F,
filed pursuant to
the US Securities
Exchange Act of 1934.
The filing of
Form 20-F is structured
as a wraparound document. Most sections of the filing can be
satisfied by referring to the UBS Group AG Annual
Report. However, there is
a small amount
of additional information in
Form 20-F that is
not presented elsewhere
and is particularly targeted at readers in the US. Readers are encouraged to refer to this additional disclosure. Any
document that is filed with
the SEC is available on the
SEC’s website:
sec.gov
. Refer to
ubs.com/investors
for more
information.
UBS Group first quarter 2025 report |
Appendix
90
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 Group AG
PO Box
CH-8098 Zurich
ubs.com
This
Form
6-K
is
hereby
incorporated
by
reference
into
(1)
each
of
the
registration
statements
on
Form
F-3
(Registration Number
333-283672), and
on Form
S-8 (Registration
Numbers 333-200634;
333-200635; 333-200641;
333-200665;
333-215254;
333-215255;
333-228653;
333-230312;
333-249143
and
333-272975),
and
into
each
prospectus outstanding
under any
of the
foregoing registration
statements, (2)
any outstanding
offering circular
or
similar document issued
or authorized by
UBS AG that
incorporates by reference any
Forms 6-K of
UBS AG that
are incorporated into
its registration statements filed
with the SEC,
and (3) the
base prospectus of
Corporate Asset
Backed Corporation (“CABCO”)
dated June 23, 2004
(Registration Number 333-111572), the Form
8-K of CABCO
filed and
dated June
23, 2004
(SEC File
Number 001-13444),
and the
Prospectus Supplements
relating to
the CABCO
Series 2004-101 Trust dated May 10, 2004 and May 17, 2004 (Registration
Number 033-91744 and 033-91744-05).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this
report to be signed on their behalf by the undersigned, thereunto duly
authorized.
UBS Group AG
By:
/s/
Sergio Ermotti
___
Name:
Sergio Ermotti
Title:
Group Chief Executive Officer
By:
/s/ Todd Tuckner
_
Name:
Todd Tuckner
Title:
Group Chief Financial Officer
By:
/s/ Steffen Henrich
____________
Name:
Steffen Henrich
Title:
Group Controller
UBS AG
By:
/s/
Sergio Ermotti
_
Name:
Sergio Ermotti
Title:
President of the Executive Board
By:
/s/ Todd Tuckner
_
Name:
Todd Tuckner
Title:
Chief Financial Officer
By:
/s/ Steffen Henrich
_____________
Name:
Steffen Henrich
Title:
Controller
Date:
April 30, 2025