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: November 4, 2025
UBS AG
(Registrant's Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
Aeschenvorstadt 1, 4051 Basel, Switzerland
(Address of principal executive offices)
Commission File Number: 1-15060
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form
40-
F.
Form 20-F
☒
Form 40-F
☐
This Form 6-K consists of the Third Quarter 2025
Report of UBS AG, which appears immediately following this
page.
UBS AG
Third quarter 2025 report
Corporate calendar UBS AG
Information about future publication dates is generally
available at
ubs.com/global/en/investor-relations/events/calendar.html
Contacts
Switchboards
For all general inquiries
ubs.com/contact
Zurich +41-44-234-1111
London +44-207-567-8000
New York +1-212-821-3000
Hong Kong SAR +852-2971-8888
Singapore +65-6495-8000
Investor Relations
UBS’s Investor Relations team
manages relationships with
institutional investors, research
analysts and credit rating agencies.
ubs.com/investors
Zurich +41-44-234-4100
New York +1-212-882-5734
Media Relations
UBS’s Media Relations team manages
relationships with global media and
journalists.
ubs.com/media
Zurich +41-44-234-8500
London +44-20-7567-4714
New York +1-212-882-5858
Hong Kong SAR +852-2971-8200
Imprint
Publisher: UBS AG, Zurich, Switzerland | ubs.com
Language: English
© UBS 2025. The key symbol and UBS are among
the registered and unregistered
trademarks of UBS. All rights reserved.
1.
Key figures
3
UBS AG consolidated key figures
2.
Recent developments
4
Recent developments
3.
UBS AG performance, business divisions
and Group Items
9
UBS AG consolidated performance
17
Global Wealth Management
19
Personal & Corporate Banking
22
Asset Management
23
Investment Bank
25
Non-core and Legacy
26
Group Items
4.
Risk and capital management
27
Risk management and control
28
Capital management
5.
Consolidated
financial statements
33
UBS AG interim consolidated financial
statements (unaudited)
6.
Comparison between UBS AG consolidated
and UBS Group AG consolidated
67
Comparison between UBS AG consolidated
and UBS Group AG consolidated
Appendix
69
Alternative performance measures
73
Abbreviations frequently used in
our financial reports
75
Information sources
76
Cautionary statement
UBS AG third quarter 2025 report
2
Terms used in this report, unless the context requires otherwise
“UBS”, “UBS Group”, “UBS Group AG consolidated”, “Group”
UBS Group AG and its consolidated subsidiaries
“UBS AG” and “UBS AG consolidated”, “we”, “us” and “our”
UBS AG and its consolidated subsidiaries
“Credit Suisse AG”
Credit Suisse AG and its consolidated subsidiaries before the merger
with UBS AG
“Credit Suisse Group” and “Credit Suisse”
Pre-acquisition Credit Suisse Group
“UBS Group AG”
UBS Group AG on a standalone basis
“Credit Suisse Group AG”
Credit Suisse Group AG on a standalone basis
“UBS Switzerland AG”
UBS Switzerland AG on a standalone basis
“1m”
One million, i.e. 1,000,000
“1bn”
One billion, i.e. 1,000,000,000
“1trn”
One trillion, i.e. 1,000,000,000,000
In this report, unless the context requires otherwise,
references to any gender shall apply to all genders.
Alternative performance measures
An alternative performance measure (an APM) is a financial measure of historical or
future financial performance,
financial position
or cash
flows other
than a
financial measure
defined or
specified in
the applicable
recognized
accounting standards or in other applicable regulations. A number of APMs are reported in UBS’s external reports
(annual, quarterly and
other reports). APMs
are used to provide
a more complete
picture of operating
performance
and to reflect
management’s view of
the fundamental
drivers of the
business results.
A definition of
each APM, the
method used to calculate
it and the information
content are presented
under “Alternative performance
measures”
in the
appendix to
this report.
These APMs
may qualify
as non-GAAP
measures as
defined by
US Securities
and
Exchange Commission (SEC) regulations.
Comparability
Comparative information in this report is
presented as follows.
Profit and loss information and other flow-based information for the third quarter of 2025, the second quarter of
2025 and the fourth quarter of
2024 is based entirely on consolidated
data following the merger of UBS AG and
Credit Suisse AG. Profit and loss information and other flow-based information for the nine-month period ending
30 September 2024 includes only four months
of post-merger UBS AG data.
Balance sheet information as at 30 September 2025, 30 June
2025 and 31 December 2024 includes post-merger
consolidated information.
Comparison between UBS AG consolidated
and UBS Group AG consolidated
This report
should be
read in
conjunction with
the UBS
Group third
quarter 2025
report that
was published
on
29 October
2025
and
is
available
under
“Quarterly
reporting”
at
ubs.com/investors
.
A
comparison
of
selected
financial and capital information of UBS AG consolidated and of
UBS Group AG consolidated is provided after the
Notes to the UBS AG interim consolidated financial
statements.
UBS AG third quarter 2025 report
3
Key figures
UBS AG consolidated key figures
UBS AG consolidated key figures
As of or for the quarter ended
As of or year-to-date
USD m, except where indicated
30.9.25
30.6.25
31.12.24
30.9.24
30.9.25
30.9.24
Results
Total revenues
12,446
11,635
11,317
11,997
36,244
31,006
Credit loss expense / (release)
113
152
241
167
388
303
Operating expenses
10,826
10,621
11,017
10,640
32,148
28,329
Operating profit / (loss) before tax
1,507
862
59
1,191
3,708
2,374
Net profit / (loss) attributable to shareholders
1,288
1,192
(257)
996
3,508
1,738
Profitability and growth
1
Return on equity (%)
5.4
5.0
(1.1)
4.2
4.9
3.1
Return on tangible equity (%)
5.9
5.4
(1.2)
4.5
5.3
3.4
Return on common equity tier 1 capital (%)
7.3
6.8
(1.3)
4.8
6.6
3.6
Revenues over leverage ratio denominator, gross (%)
3.0
2.9
2.9
3.0
3.0
3.1
Cost / income ratio (%)
87.0
91.3
97.3
88.7
88.7
91.4
Net profit growth (%)
29.3
n.m.
n.m.
6.9
101.8
(43.1)
Resources
Total assets
1,633,877
1,671,814
1,568,060
1,626,893
1,633,877
1,626,893
Equity attributable to shareholders
95,135
94,278
94,003
96,943
95,135
96,943
Common equity tier 1 capital
2
71,460
69,829
73,792
84,423
71,460
84,423
Risk-weighted assets
2
502,425
498,327
495,110
515,520
502,425
515,520
Common equity tier 1 capital ratio (%)
2
14.2
14.0
14.9
16.4
14.2
16.4
Going concern capital ratio (%)
2
18.2
17.8
18.1
19.5
18.2
19.5
Total loss-absorbing capacity ratio (%)
2
37.8
36.5
36.7
38.2
37.8
38.2
Leverage ratio denominator
2
1,642,843
1,660,097
1,523,277
1,611,151
1,642,843
1,611,151
Common equity tier 1 leverage ratio (%)
2
4.3
4.2
4.8
5.2
4.3
5.2
Liquidity coverage ratio (%)
3
179.0
179.4
186.1
196.3
179.0
196.3
Net stable funding ratio (%)
118.6
120.9
124.1
126.8
118.6
126.8
Other
Invested assets (USD bn)
1,4
6,910
6,618
6,087
6,199
6,910
6,199
Personnel (full-time equivalents)
62,636
62,958
68,982
69,185
62,636
69,185
1 Refer to “Alternative performance measures” in the appendix to this report
for the relevant definition(s) and calculation method(s).
2 Based on the Swiss systemically relevant bank framework. Refer
to the “Capital
management” section of this report for more information.
3 The disclosed ratios represent quarterly averages for the quarters presented and are calculated based on an average of 65 data points in the third quarter
of 2025, 61 data points in the second quarter
of 2025, 64 data points in the fourth quarter of
2024 and 65 data points in the third quarter of
- Refer to the “Liquidity and funding management” section
of the
UBS Group third quarter 2025 report, available under “Quarterly reporting” at ubs.com/investors,
for more information.
4 Consists of invested assets for Global Wealth Management, Asset Management (including
invested assets from associates) and
Personal & Corporate
Banking. Refer to “Note 31 Invested
assets and net new money”
in the “Consolidated financial statements”
section of the UBS AG
Annual Report 2024,
available under “Annual reporting” at ubs.com/investors,
for more information.
UBS AG third quarter 2025 report |
Recent developments
4
Recent developments
Management report
Integration of Credit Suisse
We remain on
track to substantially complete
the integration of Credit
Suisse by the end
of 2026, and
our focus
continues to be on client account migrations
and infrastructure decommissioning.
In the
third quarter of
2025, and over
the course of
October 2025, we
successfully advanced our
Swiss business
migrations, having
now migrated
over two-thirds
of the
targeted client
accounts. We
still aim
to complete
the Swiss
booking center migrations by the end of the first
quarter of 2026.
Furthermore, we have substantially completed the integration of
Asset Management,
including the final portfolio
migrations
onto UBS platforms.
Regulatory and legal developments
Developments in Switzerland aimed at strengthening
financial stability
In September 2025, the Swiss
Federal Council launched a
public consultation on proposed legislative
amendments
to
capital
requirements
related
to
foreign
subsidiaries.
The
proposed
changes
would
require
the
deduction
of
investments in foreign subsidiaries
of systemically important
banks (SIBs) from
common equity tier 1
(CET1) capital.
After the
end of
the public
consultation in
January 2026,
the Swiss
Federal Council
is expected
to submit
its proposal
to the Swiss Parliament in the first half of 2026. Subject to the Parliament’s final decision, the proposal states
that
the amendments would
enter into force in 2028,
at the earliest, starting
with a 65% deduction
requirement in the
first year
and increasing
to 100%
by 5-percentage-point
increments each
year over
seven years.
The phase-in
is
subject to adjustment should the legislation be
delayed.
A public consultation on other
proposed measures at the
ordinance level ended in
September 2025. The proposals
include
provisions to
deduct capitalized
software and
deferred
tax assets
(DTAs) on
temporary differences
from
CET1
capital,
add
stricter
requirements
for
prudent
valuation
adjustments
(PVAs)
of
assets
and
liabilities,
and
mandate the suspension of interest payments for additional tier 1 capital instruments in the event of a cumulative
loss
over
four
quarters.
The
proposals
also
introduce
measures
that
aim
to
enable
the
Swiss
Financial
Market
Supervisory Authority (FINMA) and other authorities to better assess the situation of banks in a liquidity crisis. The
entry into force of the above is expected
in January 2027, at the earliest.
A public consultation
by the Swiss
Federal Council is
expected to be
launched in the
first half of 2026
on additional
legislative measures,
including incremental
requirements for
the recovery
and resolution
plans of
SIBs, measures
aimed at
increasing
the potential
for obtaining
liquidity via
the Swiss
National Bank,
the introduction
of an
enhanced
accountability
framework in
the
form
of
a
Senior
Managers
Regime
for
banks, and
the
provision
of
additional
powers for
FINMA. We
expect the
Swiss Federal
Council’s submission
of these
legislative measures
to the
Parliament
in the first half of 2027, with the entry into force
expected in 2028 or 2029.
In addition, a public consultation
on amendments to the
Liquidity Ordinance is expected
to be launched in the
first
half
of 2026.
The
proposals are
expected to
set minimum
requirements for
maintaining borrowing
capacity for
emergency liquidity assistance.
Based on financial information
published for the
first quarter of
2025 and given UBS AG’s
target CET1 capital ratio
of
between
12.5% and
13%, UBS AG
would
be
required
to
hold
additional estimated
CET1
capital of
around
USD 24bn on
a pro-forma basis
if all
capital measures were
to be
implemented as proposed.
This would
include
around
USD 23bn
related
to
the
full
deduction
of
UBS AG’s
investments
in
foreign
subsidiaries,
of
which
approximately USD 7bn would be
required at the
start of the
proposed phase-in period.
These pro-forma figures
reflect previously announced expected capital
repatriations of around USD 5bn to
UBS AG from its subsidiaries.
UBS AG third quarter 2025 report |
Recent developments
5
The incremental
CET1 capital
of around
USD 24bn required
for UBS AG,
given our
aim to
maintain an
equity double
leverage
ratio
of
around
100%
at
UBS Group AG,
would
result
in
a
CET1
capital
ratio
at
the
UBS Group AG
(consolidated)
level
of
around
19%.
At
Group
level,
the
proposed
measures
related
to
DTAs
on
temporary
differences, capitalized
software and
PVAs would
eliminate capital
recognition for
these items,
thereby reducing
the CET1 capital ratio for
the Group from around 19% to
around 17%, underrepresenting UBS’s capital strength
compared with peers.
The additional capital of USD 24bn would be in addition to the incremental capital that UBS will have
to hold as a
result
of
the
acquisition
of
the
Credit
Suisse
Group
in
order
to
meet
existing
regulations. This
includes
around
USD 9bn to remove the regulatory concessions granted to Credit Suisse and around USD 6bn to meet the current
progressive requirements due
to the
increased leverage
ratio denominator
(LRD) and
higher market
share of
the
combined business. The estimated effect for the progressive requirements for LRD and
market share decreased to
USD 6bn, from
USD 9bn, following
FINMA’s confirmation
about the
requirements
that will
apply to
UBS. The
phase-
in of the increased capital
requirements relating to the increased LRD and
higher market share will commence on
1 January 2026 and will be completed by the
beginning of 2030, at the latest.
On this basis, UBS would be required to hold
around USD 39bn in additional CET1 capital
in total.
FINMA resolution report on UBS
In September
2025, FINMA
published its
2025 resolution
report
on UBS
related to
the 2024
fiscal year.
FINMA
concluded
that
UBS
remains
resolvable
under
UBS’s
existing
preferred
resolution
strategy,
which
includes
a
recapitalization via a bail-in at the Group holding company level. The
Swiss emergency plan of UBS is designed to
ensure the
continuity of
systemically important
functions and
critical operations
in Switzerland
in the
case of
a failed
attempt
to
restructure
the
UBS
Group.
According
to
FINMA,
this
plan
was
largely
compliant
with
the
current
regulatory requirements. However,
given the lessons learned from
the Credit Suisse crisis, FINMA has
determined
that
the
Swiss
emergency
plan
requires
further
development
to
meet
the
objective
of
maintaining
systemically
important functions while
also safeguarding financial stability
at the international
level. Moreover, FINMA assessed
that UBS’s Swiss emergency plan requires better integration into UBS’s global resolution plan.
Due to the ongoing
integration
of
Credit
Suisse
into
UBS,
FINMA
has
refrained
from
assessing
UBS’s
recovery
plan,
which
outlines
measures that aim to restore financial strength if UBS should come under severe
capital or liquidity stress.
›
Refer to “Recovery and resolution” in the “Regulation and supervision” section of the UBS AG Annual Report 2024,
available under “Annual reporting” at
ubs.com/investors
, for more information
Updated Federal Reserve Board stress capital
buffer requirements
In August
2025, the
Federal Reserve
Board reduced
the stress
capital buffer
(the SCB)
of UBS
Americas Holding
LLC, our
US-based intermediate
holding company,
to 5.2%,
from 9.3%,
applicable from
1 October 2025
under
the
Federal
Reserve
Board’s
SCB
rule,
resulting
in
a
total
CET1
capital
requirement
of
9.7%.
The
SCB
for
UBS
Americas Holding LLC is derived from the
results of the Federal Reserve
Board’s 2025 Dodd–Frank Act Stress Test
(DFAST) released in June 2025.
Earlier in 2025, the
Federal Reserve Board proposed measures to
reduce the volatility of the
SCB requirements by
averaging the
capital stress
test results
from the
past two
years, with
the aim
of making
capital planning
more
predictable for
banks. In
addition, the
Federal Reserve
Board proposed
moving the
effective date
for the
annual
SCB updates from 1 October to 1 January to allow more time to
meet the new requirements. We expect the final
rules to be published in the first half of 2026.
Changes to the UK senior management function
and material risk taker compensation schemes
In October
2025, the
Prudential Regulation Authority
and Financial
Conduct Authority adopted
changes to
their
regulations
on
the compensation
of senior
managers and
material risk
takers. The
revised
regulations
generally
reduce the
portion of
incentive compensation
subject to
mandatory deferral,
reduce the
mandatory deferral
periods
for incentive compensation to a
uniform four years, eliminate
post-vesting blocked periods and permit
awards to
accrue
interest
and
dividends.
Changes
are
generally
effective
immediately
and
companies
may
elect
to
apply
certain elements of
the revised requirements to
awards in the
current compensation year, as well as
to outstanding
deferred incentive compensation plans. UBS AG is assessing
the changes and the related impacts.
UBS AG third quarter 2025 report |
Recent developments
6
Other developments
Completion of obligations under Credit Suisse’s
residential mortgage-backed securities settlement
with the US
Department of Justice
On 1 August 2025, UBS AG entered into an agreement with the US Department of Justice (the DOJ) under which
UBS AG paid USD
300m to resolve
all remaining obligations
under Credit Suisse’s
2017 settlement agreement
with
the
DOJ
related
to
residential
mortgage-backed
securities
activities.
The
resolution
had
no
effect
on
UBS AG’s
performance in the third quarter of 2025.
Resolution of legacy French cross-border matter
In
September
2025,
UBS AG
resolved
the
legacy
matter
related
to
its
cross-border
business
activities
in
France
between 2004 and 2012. As a
result, UBS AG agreed to pay
a fine of EUR 730m and
EUR 105m in civil damages
to the French State in the third quarter of 2025 and recognized a gain of
USD 321m (USD 284m in Global Wealth
Management and
USD 37m in
Personal & Corporate
Banking) in connection
with the
release of a
related provision.
In
2023,
the
French
Supreme
Court
confirmed
the
Paris
Court
of
Appeal’s
decision
finding
UBS AG
guilty
of
unlawful client solicitation and aggravated money laundering but
referred the financial penalty and civil
damages
to be re-assessed by the lower court.
Sale of a 36.01%
stake in Credit Suisse Securities (China)
Limited
In the third quarter of 2025,
UBS AG completed the sale
of a 36.01% stake
in a subsidiary, Credit Suisse Securities
(China) Limited (CSS),
to Beijing State-Owned Assets Management Co., Ltd., as announced
on 24 June 2024, and
deconsolidated the entity. The sale resulted in a
pre-tax gain of USD 128m
in the Investment Bank.
UBS AG retains
a 14.99% shareholding in CSS and accounts for
this minority interest as an investment in an associate.
Court ruling related to the write-off of Credit
Suisse additional tier 1 capital instruments in 2023
In
proceedings
initiated
by
certain
former
holders
of
Credit
Suisse
Group AG
additional
tier 1
(AT1)
capital
instruments
against
FINMA
challenging
FINMA’s
decree
of
19 March
2023
ordering
the
write-off
of
CHF 16bn
principal amount of
Credit Suisse Group AG’s AT1 instruments, the
Swiss Federal Administrative
Court published a
partial
decision
in
October
2025.
The
court
determined
that
FINMA’s
order
lacked
a
sufficient
legal
basis
and
revoked FINMA’s decree.
FINMA has
stated it will
appeal the decision
to the Swiss
Federal Supreme Court.
UBS also
intends to appeal.
Supplementary 2024 dividend to UBS Group
AG
On 23 October 2025, the Extraordinary General Meeting of
UBS AG approved a supplementary 2024 dividend of
USD 6,500m. The dividend was paid by UBS AG
to its shareholder UBS Group AG on the same day.
Organizational changes
On
24 October
2025,
UBS AG
announced
that
Lukas
Gähwiler
will
not
stand
for
re-election
to
the
Board
of
Directors of UBS AG and
Markus Ronner will be
nominated as a new member
of the Board
of Directors and
Vice
Chairman of UBS AG, succeeding Lukas
Gähwiler.
Markus Ronner is a
Swiss citizen and has
been with UBS since
1981.
In addition, on
24 October 2025 several
changes with respect
to the responsibilities
of existing Executive
Board (EB)
members were announced and will be effective
1 January 2026.
Michelle Bereaux, UBS AG Integration Officer, will
take on the role
of UBS AG Head Compliance and
Operational
Risk Control.
Beatriz Martin, Head Non-core
and Legacy and the
EB Lead for Sustainability
and Impact, will also
become UBS AG
Chief Operating
Officer. In
addition to her
current responsibilities,
she will oversee
the finalization
of the
integration
of Credit Suisse, UBS AG
Operations, and the Internal
Consulting and Governance
teams. She will also continue
to
act as President EMEA and UK Chief Executive.
Todd
Tuckner
will
take
on
the
responsibility
for
Governmental
and
Regulatory Affairs
in
addition
to
his
role
as
UBS AG CFO.
Stefan Seiler will
take on the
responsibility for
the UBS AG
Security functions
in addition
to his role
as UBS AG
Head
of HR and Corporate Services.
Mike Dargan will focus
on capturing opportunities arising from
innovation and technological changes in addition
to his role as UBS AG Chief Technology Officer.
UBS AG third quarter 2025 report |
Recent developments
7
UBS’s tender offers for debt securities
On
30 October
2025,
UBS AG,
acting
through
its
Stamford
branch,
and
UBS
Group
AG
announced
offers
to
repurchase outstanding
notes of seven
series of
senior debt for
a maximum
purchase consideration of
USD 4bn.
The securities subject to the
offers and the terms and conditions
of the offers are set forth in the
offer documents.
The offers
are made
as part
of UBS’s
proactive management
of its
funding and
total loss-absorbing
capacity, among
other
factors,
to
optimize
interest
expense.
The
offers
are
scheduled
to
expire
on
5 November
2025,
unless
extended or
earlier terminated.
UBS AG expects
to record
a loss
on the
purchase and
early repayment
of these
high-spread securities at above book value. The amount of the loss will vary based on the total consideration that
will be paid.
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items
8
UBS AG performance,
business divisions and Group Items
Management report
Our businesses
We report
five business
divisions, each
of which
qualifies as
an operating
segment pursuant
to IFRS
Accounting
Standards: Global Wealth Management,
Personal & Corporate Banking,
Asset Management, the Investment
Bank,
and Non-core and Legacy. Non-core and Legacy consists of positions and businesses not aligned with our strategy
and policies.
Our Group
functions are
support and
control functions
that provide
services to
the Group.
Virtually all
costs incurred
by our Group functions are
allocated to the business divisions,
leaving a residual amount that
we refer to as Group
Items in our segment reporting.
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items | UBS AG consolidated performance
9
UBS AG consolidated performance
Income statement
For the quarter ended
% change from
Year-to-date
USD m
30.9.25
30.6.25
30.9.24
2Q25
3Q24
30.9.25
30.9.24
Net interest income
1,608
1,584
1,560
2
3
4,520
3,088
Other net income from financial instruments measured
at fair value through profit or loss
3,498
3,374
3,592
4
(3)
10,796
9,809
Net fee and commission income
7,097
6,526
6,334
9
12
20,253
17,084
Other income
243
150
510
62
(52)
675
1,025
Total revenues
12,446
11,635
11,997
7
4
36,244
31,006
Credit loss expense / (release)
113
152
167
(26)
(32)
388
303
Personnel expenses
5,797
5,649
5,788
3
0
17,356
14,746
General and administrative expenses
4,303
4,228
4,014
2
7
12,608
11,584
Depreciation, amortization and impairment of non-financial
assets
726
744
838
(3)
(13)
2,184
2,000
Operating expenses
10,826
10,621
10,640
2
2
32,148
28,329
Operating profit / (loss) before tax
1,507
862
1,191
75
27
3,708
2,374
Tax expense / (benefit)
213
(336)
194
10
181
587
Net profit / (loss)
1,294
1,198
997
8
30
3,527
1,787
Net profit / (loss) attributable to non-controlling interests
6
6
1
(1)
735
19
49
Net profit / (loss) attributable to shareholders
1,288
1,192
996
8
29
3,508
1,738
Comprehensive income
Total comprehensive income
846
4,231
3,623
(80)
(77)
7,735
3,724
Total comprehensive income attributable to non-controlling interests
5
18
21
(72)
(75)
46
37
Total comprehensive income attributable to shareholders
841
4,213
3,602
(80)
(77)
7,689
3,687
Net integration-related expenses, by business division and Group Items
For the quarter ended
Year-to-date
USD m
30.9.25
30.6.25
30.9.24
30.9.25
30.9.24
Global Wealth Management
539
381
416
1,275
1,022
Personal & Corporate Banking
344
213
171
723
368
Asset Management
63
63
86
199
189
Investment Bank
(15)
1
124
154
226
1
430
Non-core and Legacy
184
251
268
626
515
Group Items
2
6
21
7
30
Net integration-related expenses
1,118
1,038
1,116
3,056
2,555
of which: total revenues
(149)
1
7
35
(145)
1
45
of which: operating expenses
1,267
1,031
1,081
3,201
2,510
of which: personnel expenses
449
407
420
1,241
869
of which: general and administrative expenses
740
538
551
1,738
1,383
of which: depreciation, amortization and impairment of non-financial
assets
78
87
110
222
258
1 Includes a USD 128m gain from the sale of a stake in a subsidiary, Credit Suisse
Securities (China) Limited.
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items | UBS AG consolidated performance
10
Results: 3Q25 vs 3Q24
Operating
profit
before
tax
increased
by
USD 316m,
or
27%,
to
USD 1,507m,
reflecting
an
increase
in
total
revenues
and
a
decrease
in
net
credit
loss
expenses, partly
offset
by
higher operating
expenses. Total
revenues
increased by USD 449m, or
4%, to USD 12,446m,
which included an increase
from foreign currency effects. The
increase in total
revenues was largely due
to an increase
of USD 763m in
net fee and
commission income, partly
offset
by
decreases
of
USD 267m
in
other
income.
Operating
expenses
increased
by
USD 186m,
or
2%,
to
USD 10,826m and included
an increase
from foreign currency
effects. The overall
increase was largely
due to
an
increase
of
USD 289m
in
general
and
administrative
expenses,
partly
offset
by
a
USD 112m
decrease
in
depreciation,
amortization
and
impairment
of
non-financial
assets.
Net
credit
loss
expenses
were
USD 113m,
compared with USD 167m in the third quarter
of 2024.
Integration-related expenses
in general
and administrative
expenses primarily
included shared
services costs
charged
from other companies in
the UBS Group reporting
scope and consulting,
legal and audit fees.
Integration-related
personnel expenses were mainly due to
salaries and variable compensation and post-employment
benefit plans. In
addition,
there
was
accelerated
depreciation
of
properties
and
leasehold
improvements
in
depreciation,
amortization and impairment
of non-financial assets.
Integration items within
revenues included a
gain from the
sale of a stake in Credit Suisse Securities (China)
Limited (CSS).
Total revenues: 3Q25 vs 3Q24
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 47m to USD 5,106m.
Global Wealth
Management
revenues decreased
by USD 12m
to USD 2,077m,
mainly driven
by the
impact of
lower
central bank interest rates on
deposit revenues and by lower loan
revenues, reflecting margin contraction,
largely
offset
by
lower
liquidity
and
funding
costs,
the
effects
of
favorable
changes
in
deposit
mix,
balance
sheet
optimization measures,
and positive foreign currency effects.
Personal &
Corporate Banking
revenues decreased
by USD 50m
to USD 1,399m,
mainly driven
by lower
net interest
income, reflecting
the impact
of lower
central bank
interest rates
on deposit
revenues. This
was partly
offset by
deposit
pricing
measures
and
lower
liquidity
and
funding
costs.
These
revenues
also
included
positive
foreign
currency effects.
Investment Bank revenues increased by USD 360m
to USD 1,873m, mainly due to higher revenues in Financing in
Global Markets,
led by Prime Brokerage,
supported by higher client
balances. In addition, Global
Banking revenues
increased, driven by higher revenues in
Capital Markets.
Non-core and Legacy
revenues
were negative USD 91m
compared with positive
USD 63m
in the
third quarter of
2024, mainly due
to lower net
gains from position
exits and lower
net interest income
from the securitized
product
portfolio,
partly offset by lower markdowns.
Revenues in Group Items were negative USD
143m
compared with positive USD 14m in the
third quarter of 2024.
The
change in
revenues was
mainly driven
by lower
mark-to-market gains
from Group
hedging and
own debt,
including hedge accounting ineffectiveness.
›
Refer to the relevant business division and Group Items commentary in this section for more information about the
specific revenues of each of the business divisions and Group Items
›
Refer to “Note 4 Net interest income” in the “Consolidated financial statements” section of this report for more
information about net interest income
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items | UBS AG consolidated performance
11
Net interest income and other net income from financial instruments measured at fair value through profit or loss
For the quarter ended
% change from
Year-to-date
USD m
30.9.25
30.6.25
30.9.24
2Q25
3Q24
30.9.25
30.9.24
Net interest income from financial instruments measured
at amortized cost and fair value
through other comprehensive income
(39)
89
(485)
(92)
(215)
(486)
Net interest income from financial instruments measured
at fair value through profit or
loss and other
1,647
1,495
2,045
10
(19)
4,736
3,573
Other net income from financial instruments measured
at fair value through profit or loss
3,498
3,374
3,592
4
(3)
10,796
9,809
Total
5,106
4,958
5,153
3
(1)
15,316
12,896
Global Wealth Management
2,077
2,042
2,089
2
(1)
6,193
5,287
of which: net interest income
1,655
1,587
1,662
4
0
4,831
4,183
of which: transaction-based income from foreign exchange and other
intermediary
activity
1
422
455
427
(7)
(1)
1,362
1,104
Personal & Corporate Banking
1,399
1,357
1,449
3
(3)
4,002
3,376
of which: net interest income
1,168
1,142
1,233
2
(5)
3,369
2,868
of which: transaction-based income from foreign exchange and other
intermediary
activity
1
231
215
216
7
7
634
509
Asset Management
(9)
0
24
(15)
1
Investment Bank
1,873
1,886
1,513
(1)
24
5,815
4,577
Non-core and Legacy
(91)
(150)
63
(40)
(124)
203
Group Items
(143)
(176)
14
(19)
(556)
(548)
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 763m
to USD 7,097m.
Net
brokerage
fees
increased
by
USD 251m
to
USD 1,293m,
driven
by
increased
volumes
in
Cash
Equities
in
Execution Services
in the
Investment Bank,
led by the
Asia Pacific
region,
and higher
levels of
client activity
in Global
Wealth Management in the Asia Pacific,
EMEA and Americas regions.
Fees for portfolio management
and related services increased
by USD 190m to USD 3,301m.
These fees are largely
recurring and are driven
mainly by Global Wealth
Management.
Investment fund fees increased by
USD 188m
to
USD 1,740m. These
fees are
also largely
recurring in
nature and
are mainly
driven by
management and
performance
fees in Asset Management and asset-based
fund fees in Global Wealth Management.
The year-on-year increase in
both of
these fee
categories reflected
higher average
levels of
fee-generating assets
in Global
Wealth Management,
reflecting positive impacts from market performance and net new fee-generating asset inflows over the course of
the last
12 months.
Increases in
Asset Management reflected
growth in
Hedge Fund
Businesses, positive market
performance and foreign currency effects, partly
offset by negative impacts from continued
margin compression.
›
Refer to “Note 5 Net fee and commission income” in the “Consolidated financial statements” section of this report
for more information
Other income
Other income was
USD 243m compared with USD 510m
in the third
quarter of 2024.
The third
quarter of 2025
included
a
USD 128m
gain
from
the
sale
of
a
stake
in
CSS
and
a
USD 33m
gain
from
the
sale
of
our
wealth
management business in India. These gains were partly offset by a USD 140m loss relating to an
investment in an
associate.
The
third
quarter of
2024
also included
a USD 119m
gain related
to the
sale
of
an investment
in
an
associate and an USD 84m gain from disposals.
›
Refer to “Note 6 Other income” in the “Consolidated financial statements” section of this report for more
information
Credit loss expense / release: 3Q25 vs
3Q24
Total
net credit
loss expenses
in
the
third quarter
of 2025
were USD 113m,
reflecting net
expenses of
USD 8m
related
to
performing
positions
and
net
expenses
of
USD 105m
on
credit-impaired
positions.
Net
credit
loss
expenses were USD 167m
in the third quarter of 2024.
›
Refer to “Note 9 Expected credit loss measurement” in the “Consolidated financial statements” section of this
report for more information
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items | UBS AG consolidated performance
12
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Total
For the quarter ended 30.9.25
Global Wealth Management
(4)
11
7
Personal & Corporate Banking
2
76
78
Asset Management
0
0
0
Investment Bank
9
12
21
Non-core and Legacy
0
5
6
Group Items
0
0
0
Total
8
105
113
For the quarter ended 30.6.25
Global Wealth Management
(3)
1
(2)
Personal & Corporate Banking
22
92
114
Asset Management
0
0
0
Investment Bank
19
22
41
Non-core and Legacy
0
(1)
(1)
Group Items
0
0
0
Total
38
114
152
For the quarter ended 30.9.24
Global Wealth Management
(11)
14
3
Personal & Corporate Banking
(10)
94
84
Asset Management
0
0
0
Investment Bank
9
(4)
4
Non-core and Legacy
(2)
77
76
Group Items
0
0
0
Total
(15)
182
167
Operating expenses: 3Q25 vs 3Q24
Operating expenses
For the quarter ended
% change from
Year-to-date
USD m
30.9.25
30.6.25
30.9.24
2Q25
3Q24
30.9.25
30.9.24
Personnel expenses
5,797
5,649
5,788
3
0
17,356
14,746
of which: salaries and variable compensation
4,901
4,882
4,999
0
(2)
14,912
12,824
of which: variable compensation – financial advisors
1
1,419
1,335
1,335
6
6
4,163
3,893
General and administrative expenses
4,303
4,228
4,014
2
7
12,608
11,584
of which: net expenses / (releases) for litigation, regulatory
and similar matters
41
163
(47)
(75)
400
1,121
Depreciation, amortization and impairment of non-financial
assets
726
744
838
(3)
(13)
2,184
2,000
Total operating expenses
10,826
10,621
10,640
2
2
32,148
28,329
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 9m
to
USD 5,797m, including
a
USD 108m
increase
in
post-employment
benefit plans, predominantly related to integration-related expenses.
There were also increases in financial advisor
compensation, resulting
from higher
compensable revenues,
and in
accruals for
performance awards,
reflecting
business performance.
The increases were largely
offset by lower salary
expenses, reflecting the
impact of a
smaller
workforce.
›
Refer to “Note 7 Personnel expenses” in the “Consolidated financial statements” section of this report for more
information
General and administrative expenses
General
and
administrative
expenses
increased
by
USD 289m
to
USD 4,303m,
largely
due
to
an
increase
of
USD 340m
in
shared
services costs
charged
for
Technology,
Finance
and
Risk
by
shared
services subsidiaries
of
UBS Group AG, partly offset by a decrease of USD 87m
in real estate and logistics costs. The third quarter
of 2025
includes
net
expenses
of
USD
41m
for
provisions
for
litigation,
regulatory
and
similar
matters,
reflecting
a
USD 321m net
release related
to the
resolution of
a legacy
matter concerning
cross-border business
activities in
France, more than offset by expenses related to increases in other litigation
provisions.
›
Refer to “Note 8 General and administrative expenses” in the “Consolidated financial statements” section of this
report for more information
›
Refer to “Other developments” in the “Recent developments” section and “Note 16 Provisions and contingent
liabilities” in the “Consolidated financial statements” section of this report for more information about litigation,
regulatory and similar matters
›
Refer to the “Regulatory and legal developments” and “Risk factors” sections of the UBS AG Annual Report 2024,
available under “Annual reporting” at
ubs.com/investors
, for more information about litigation, regulatory and
similar matters on a UBS AG consolidated basis
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items | UBS AG consolidated performance
13
Depreciation, amortization and impairment of
non-financial assets
Depreciation, amortization
and impairment
of non-financial
assets decreased
by USD 112m
to USD 726m,
primarily
reflecting
an
USD 88m decrease
in
depreciation
of
leased
real
estate
as
a
result
of
higher
levels of
accelerated
depreciation
in
the
third
quarter
of
2024.
In
addition,
there
was
a
USD 54m
decrease
in
the
amortization
of
internally generated
capitalized software, reflecting
a lower cost
base of software
assets. The decreases
were partly
offset by a USD 39m
increase in impairments,
mainly related to internally generated
capitalized software.
Tax: 3Q25 vs 3Q24
UBS AG had a
net income tax
expense of USD 213m
in the third
quarter of 2025,
representing an effective
tax rate
of 14.1%, compared with USD 194m in the
third quarter of 2024 and an effective
tax rate of 16.3%.
The net current tax expense was
USD 282m, which primarily related to the taxable
profits of UBS Switzerland AG
and other entities.
There was a
net deferred
tax benefit
of USD 68m.
This reflected
a net deferred
tax expense
of USD 63m
that mainly
related
to
the
amortization
of
deferred
tax
assets
(DTAs)
previously
recognized
in
relation
to
tax
losses
carried
forward
and
deductible
temporary
differences,
more
than
offset
by
a
USD 109m
benefit
in
respect
of
the
tax
deduction for deferred compensation
awards and a USD 22m
benefit due to an
increase in DTA recognition
within
UBS AG’s US branch.
Total comprehensive income attributable
to shareholders
In the
third quarter
of 2025,
total
comprehensive
income
attributable
to shareholders
was USD
841m,
reflecting
a net
profit of
USD 1,288m
and other
comprehensive
income (OCI),
net of
tax, of negative
USD 447m.
OCI related to own credit on financial
liabilities designated at fair value was negative USD 576m, primarily due
to
a tightening of our own credit spreads.
Foreign currency
translation
OCI was
negative USD 116m,
mainly resulting
from the
US dollar
strengthening against
the Swiss franc, the euro and the pound sterling.
OCI
related
to
cash
flow
hedges
was
USD 178m,
mainly
reflecting
net
losses
on
hedging
instruments
that
were
reclassified from OCI to the income statement.
›
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
(UBS AG
vs UBS Group
AG consolidated)”
in the “Capital
management”
section of
this report
for more information
about the
effects of OCI
on common
equity tier
1 capital
›
Refer to “Note 21 Fair value measurement” in the “Consolidated financial statements” section of the UBS AG
Annual Report 2024, available under “Annual reporting” at
ubs.com/investors
, for more information about own
credit on financial liabilities designated at fair value
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items | UBS AG consolidated performance
14
Sensitivity to interest rate movements
As of 30 September
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 1.4bn in
the first
year after
such a
shift. Of
this increase,
approximately USD 0.8bn, 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 1.0bn. Of this increase, approximately USD 1.6bn would result from changes in Swiss franc
interest rates,
driven by both
contractual and
assumed flooring
benefits under
negative interest
rates. US dollar
and
euro interest rates would lead to an offsetting
decrease of USD 0.4bn and USD 0.1bn, respectively.
These estimates do not represent net interest income forecasts, as they are based
on a hypothetical scenario of an
immediate
change
in
interest
rates,
equal
across
all
currencies
and
relative
to
implied
forward
rates
as
of
30 September 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 the UBS Group third quarter 2025 report, available under
“Quarterly reporting” at
ubs.com/investors
, for information about interest rate risk in the banking book
Key figures and personnel
Below is
an overview
of selected
key figures
of UBS AG
consolidated. For
further information
about key
figures
related to capital management, refer to
the “Capital management” section of this
report.
Cost / income ratio: 3Q25 vs 3Q24
The cost / income ratio was 87.0%,
compared with 88.7%, mainly reflecting
an increase in total
revenues, partly
offset by higher operating expenses.
Personnel: 3Q25 vs 2Q25
The number
of internal
personnel employed
was 62,636
(full-time equivalents)
as of
30 September 2025,
a net
decrease of 322 compared with 30 June 2025.
Equity, CET1 capital and returns
As of or for the quarter ended
Year-to-date
USD m, except where indicated
30.9.25
30.6.25
30.9.24
30.9.25
30.9.24
Net profit
Net profit attributable to shareholders
1,288
1,192
996
3,508
1,738
Equity
Equity attributable to shareholders
95,135
94,278
96,943
95,135
96,943
less: goodwill and intangible assets
6,743
6,753
6,739
6,743
6,739
Tangible equity attributable to shareholders
88,392
87,524
90,204
88,392
90,204
less: other CET1 adjustments
16,931
17,695
5,781
16,931
5,781
CET1 capital
71,460
69,829
84,423
71,460
84,423
Returns
Return on equity (%)
5.4
5.0
4.2
4.9
3.1
Return on tangible equity (%)
5.9
5.4
4.5
5.3
3.4
Return on CET1 capital (%)
7.3
6.8
4.8
6.6
3.6
Common equity tier 1 capital: 3Q25 vs 2Q25
During the
third
quarter of
2025,
common equity
tier 1 (CET1)
capital increased
by
USD 1.6bn to
USD 71.5bn,
mainly driven by operating profit before tax of USD 1.5bn, partly offset by current tax expenses of USD 0.3bn
and
foreign currency translation losses of USD 0.1bn.
Return on common equity tier 1 capital: 3Q25
vs 3Q24
The annualized return on CET1 capital
was 7.3%, compared with 4.8%, driven
by higher net profit attributable to
shareholders and a decrease in average CET1 capital.
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items | UBS AG consolidated performance
15
Risk-weighted assets: 3Q25 vs 2Q25
During the third quarter
of 2025, risk-weighted
assets (RWA) increased by USD 4.1bn
to USD 502.4bn, driven
by a
USD 6.6bn increase resulting from
asset size and other
movements, partly offset by
a USD 1.5bn decrease driven
by model updates and methodology changes
and a USD 1.0bn decrease from currency effects.
Common equity tier 1 capital ratio: 3Q25 vs 2Q25
The CET1
capital ratio
increased to
14.2% from
14.0%, reflecting
the aforementioned
increase in
CET1 capital,
partly offset by the aforementioned increase in RWA.
Leverage ratio denominator: 3Q25 vs 2Q25
During
the
third
quarter
of
2025,
the
leverage
ratio
denominator
(the
LRD)
decreased
by
USD 17.3bn
to
USD 1,642.8bn,
mainly
driven
by
asset
size
and
other
movements
of
USD 12.1bn
and
currency
effects
of
USD 5.2bn.
Common equity tier 1 leverage ratio: 3Q25
vs 2Q25
The CET1 leverage ratio
increased to 4.3% from 4.2%, reflecting
the aforementioned increase in CET1
capital and
the aforementioned decrease in the LRD.
9M25 compared with 9M24
The legal merger
of UBS AG and
Credit Suisse AG
on 31 May
2024 has had
a significant impact
on the results
from
June 2024
onward. This
discussion and
analysis of
results compares
the first
nine months
of 2025,
which cover
nine
full months of post-merger results, with
the first nine months of
2024, which included only four months
of post-
merger results. This is a material driver in many
of the increases across both revenues
and operating expenses.
›
Refer to “Note 2 Accounting for the merger of UBS AG and Credit Suisse AG” in the “Consolidated financial
statements” section of this report for more information about the accounting for the merger of UBS AG and Credit
Suisse AG
Results 9M25 vs 9M24
Operating profit before tax increased by USD 1,334m, or 56%, to USD 3,708m, reflecting
a USD 5,238m increase
in total revenues,
which was
partly offset by
a USD 3,819m
increase in operating
expenses. Net
credit loss expenses
were USD 388m compared with USD 303m in the first
nine months of 2024.
Total combined
net interest
income and
other net
income from
financial instruments
measured at
fair value
through
profit
or
loss
increased
by
USD 2,420m
to
USD 15,316m.
Global
Wealth
Management
revenues
increased
by
USD 906m,
mainly
driven
by
the
consolidation of
Credit
Suisse AG revenues
for
the
full
period.
The
remaining
variance was
driven by
balance sheet
optimization measures,
lower liquidity
and funding
costs, positive
foreign
currency effects, and
the effects of
favorable changes in deposit
mix, partly offset by
the impact of
lower central
bank interest rates on deposit revenues and by lower loan revenues, which reflected margin contraction.
Personal
& Corporate Banking
revenues increased by
USD 626m, largely reflecting
the consolidation of
Credit Suisse AG net
interest income for the full period.
Investment Bank revenues increased
by USD 1,238m, mainly in Global
Markets,
due to
an increase
in Derivatives
& Solutions
revenues that resulted
from higher
revenues across
all products,
as
well as higher
revenues in Financing,
led by Prime
Brokerage, supported by
higher client balances.
Non-core and
Legacy revenues
were negative USD 124m,
compared with positive
USD 203m in
the first
nine months
of 2024,
mainly due to
lower net gains
from position exits
and lower net
interest income from
securitized product
and credit
portfolios and
the effect
from the
consolidation of Credit
Suisse AG revenues for
the full
period, partly
offset by
lower markdowns.
Net fee and commission
income increased by USD 3,169m to USD
20,253m. Fees for portfolio management and
related
services
increased
by
USD 1,320m
and
investment
fund
fees
increased
by
USD 772m,
which
included
increases
driven
by
the
consolidation of
Credit
Suisse AG revenues
for
the
full
period,
predominantly in
Global
Wealth Management and
Asset Management.
The year-on-year increase
in Global Wealth
Management in these
fee categories
was also
driven by
higher average
levels of
fee-generating assets
reflecting positive
impacts from
market
performance,
and
net
new
fee-generating
asset
inflows
over
the
course
of
the
last
12
months.
Net
brokerage fees
increased by
USD 761m due
to higher
levels of
client activity
across the
Asia Pacific,
EMEA and
Americas regions
in Global
Wealth Management
and also
due to
higher volumes,
across all
regions,
in Cash
Equities
in Execution Services in the Investment Bank.
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items | UBS AG consolidated performance
16
Other
income
was
USD 675m
compared
with
USD 1,025m
in
the
first
nine
months
of
2024
and
included
the
consolidation of Credit Suisse AG income for the full period. The first
nine months of 2025 included a USD 128m
gain from the sale
of a stake in
CSS, a USD 64m gain from
the Swisscard transactions and a
USD 33m gain from
the sale of our
wealth management business in India. These gains
were partly offset by a
USD 156m loss relating
to an investment in
an associate. The first
nine months of 2024
included a USD 119m gain
related to the sale
of
an investment in an associate, as well as
a USD 113m net gain from disposals.
Personnel
expenses
increased
by
USD
2,610m
to
USD
17,356m,
mainly
reflecting
the
consolidation
of
Credit Suisse AG expenses for the full period. Additionally, there were increases in financial advisor compensation,
resulting from higher
compensable revenues,
and accruals for
variable compensation,
as well as
integration-related
expenses for post-employment benefit plans.
General and
administrative
expenses increased
by USD 1,024m
to USD 12,608m,
mainly driven
by the
consolidation
of
Credit
Suisse AG expenses
for
the
full
period.
The
overall
increase
was
largely attributable
to
an
increase of
USD 1,079m related
to shared
services costs
for Technology,
Finance and
Risk charged
by shared
services subsidiaries
of the
UBS Group.
General and
administrative expenses
also included
a USD 180m
expense related
to the
Swisscard
transactions in
Personal &
Corporate Banking
and increases
of USD 103m
in technology
costs and
USD 96m in
consulting,
legal
and
audit
fees.
These
increases
were
partly
offset
by
a
USD 721m
decrease
in
expenses
for
litigation, regulatory and
similar matters,
mainly due to the
costs recognized in the
first nine months of
2024 when
UBS agreed to fund an offer
by the Credit Suisse supply
chain finance funds to redeem
all of the outstanding units
in the respective funds.
Outlook
With
valuations
elevated
across
most
asset
classes
entering
the
fourth
quarter,
investors
remain
engaged
but
increasingly focused on
hedging downside risks,
which is also
evident in periodic
headline-driven spikes
in volatility.
Against
this
backdrop,
transactional
activity
and
our
deal
pipelines
remain
healthy,
though
sentiment
can
shift
quickly as confidence
in the outlook
is tested and
seasonal effects
come into
play. Furthermore,
macro uncertainties
along
with
a
strong
Swiss
franc
and
higher
US
tariffs
are
clouding
the
outlook
for
the
Swiss
economy,
and
a
prolonged US government shutdown may delay
capital market activities.
In the fourth
quarter, we expect
net interest income
in US dollars
to remain broadly
stable in each
of Global Wealth
Management and Personal
& Corporate Banking. Credit
loss expense in Personal
& Corporate Banking is projected
at
around
CHF 80m.
Quarter-end
transactional
activity
levels
in
the
Investment
Bank
are
likely
to
normalize
compared with the
strong prior-year period
when markets were
unusually active ahead
of the
US administration
change.
We remain focused on actively engaging with our clients, helping them to navigate a
complex environment while
executing on
our growth
and integration
plans. We
are confident
in our
ability to
deliver on
our 2026
financial
targets, leveraging the power of our diversified
business model and global footprint.
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items | Global Wealth Management
17
Global Wealth Management
Global Wealth Management
As of or for the quarter ended
% change from
Year-to-date
USD m, except where indicated
30.9.25
30.6.25
30.9.24
2Q25
3Q24
30.9.25
30.9.24
Results
Net interest income
1,655
1,587
1,662
4
0
4,831
4,183
Recurring net fee income
1
3,475
3,352
3,235
4
7
10,101
8,821
Transaction-based income
1
1,271
1,225
1,143
4
11
3,919
3,088
Other income
(3)
7
16
11
74
Total revenues
6,398
6,171
6,056
4
6
18,861
16,166
Credit loss expense / (release)
7
(2)
3
121
13
10
Operating expenses
5,193
5,121
5,131
1
1
15,383
13,579
Business division operating profit / (loss) before tax
1,197
1,052
922
14
30
3,465
2,577
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
29.9
46.0
(5.4)
34.5
(21.1)
Cost / income ratio (%)
1
81.2
83.0
84.7
81.6
84.0
Financial advisor compensation
2
1,419
1,334
1,335
6
6
4,162
3,892
Invested assets (USD bn)
1
4,714
4,512
4,259
4
11
4,714
4,259
Loans, gross (USD bn)
3
323.5
319.9
313.5
1
3
323.5
313.5
Customer deposits (USD bn)
3
478.4
489.0
482.2
(2)
(1)
478.4
482.2
Credit-impaired loan portfolio as a percentage of total loan
portfolio, gross (%)
1,4
0.5
0.5
0.4
0.5
0.4
Advisors (full-time equivalents)
9,499
9,565
9,897
(1)
(4)
9,499
9,897
1 Refer to “Alternative performance
measures” in the appendix to this report for
the definition and calculation method.
2 Relates to licensed professionals with the ability to
provide investment advice to clients in
the Americas. Consists of cash compensation, determined using a formulaic approach based on production, and deferred awards. Also includes expenses related to compensation commitments with financial
advisors
entered into at the time
of recruitment that are
subject to vesting requirements.
Recruitment loans to
financial advisors were USD 1,551m
as of 30 September 2025.
3 Loans and Customer deposits
in this table
include customer brokerage receivables
and payables, respectively,
which are presented in separate
reporting lines on the balance
sheet.
4 Refer to the “Risk management
and control” section of the
UBS Group
third quarter 2025 report, available under “Quarterly reporting” at ubs.com/investors,
for more information about credit-impaired exposures. Excludes loans to financial advisors.
Results: 3Q25 vs 3Q24
Profit before tax increased by
USD 275m, or 30%, to
USD 1,197m, mainly driven by higher
total revenues, partly
offset by higher operating expenses.
Total revenues
Total revenues increased by USD 342m, or
6%, to USD
6,398m, mainly due
to higher
recurring net fee
income and
transaction-based income.
Net
interest
income
decreased
by
USD 7m
to
USD 1,655m,
largely
driven
by
the
impact
of
lower
central
bank
interest rates on
deposit revenues and
by lower loan
revenues,
reflecting margin contraction.
These decreases
were
almost entirely offset by lower liquidity and
funding costs,
the effects of favorable changes in deposit
mix, balance
sheet optimization measures,
and positive foreign currency effects.
Recurring net fee
income increased by
USD 240m, or 7%,
to USD 3,475m and
largely consisted of
fees for services
provided on an ongoing basis,
such as portfolio management
fees, asset-based investment fund
fees, custody fees
and administrative fees for accounts. The year-on-year increase was mainly driven by higher
average levels of fee-
generating assets reflecting positive
impacts from market performance
and net new
fee-generating asset inflows
over the course of the last 12 months, mainly
driven by mandate sales.
Transaction-based income
increased by
USD 128m, or
11%, to
USD 1,271m, mainly
driven by
higher levels
of client
activity in the Asia Pacific,
EMEA and Americas regions.
Other income was negative
USD 3m, compared with positive
USD 16m, and included
a loss of USD 38m
related to
an investment in an associate and a USD 33m
gain from the sale of our wealth management
business in India.
Credit loss expense / release
Net credit loss expenses were
USD 7m, compared with net credit
loss expenses of USD 3m in the
third quarter of
2024.
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items | Global Wealth Management
18
Operating expenses
Operating
expenses
increased
by
USD 62m,
or
1%,
to
USD 5,193m,
mainly
driven
by
an
increase
in
post-
employment benefit plans, predominantly
related to
integration-related expenses, and by
an increase in
financial
advisor compensation
as a
result of
higher compensable
revenues, partly
offset by
net releases
in provisions
for
litigation, regulatory and
similar matters,
primarily reflecting USD 284m
of releases
related to
the resolution
of a
legacy matter concerning cross-border business activities
in France.
›
Refer to “Other developments” in the “Recent developments” section and “Note 16 Provisions and contingent
liabilities” in the “Consolidated financial statements” section of this report for more information about litigation,
regulatory and similar matters
Invested assets: 3Q25 vs 2Q25
Invested assets increased
by USD 202bn, or
4%, to USD 4,714bn,
mainly driven by
positive market performance
of
USD 177bn and net new
asset inflows, partly offset by
negative foreign currency effects of
USD 7bn. Positive net
new assets were driven
by inflows in the
Asia Pacific region, including
flows linked to strategic
holdings and higher
levels
of
client
activity
across
the
region.
The EMEA and
Switzerland
regions
also
contributed
positive
net
new
assets.
Loans: 3Q25 vs 2Q25
Loans increased by USD 3.6bn to USD 323.5bn,
mainly driven by positive net new loans.
›
Refer to the “Risk management and control” section of the UBS Group third quarter 2025 report, available under
“Quarterly reporting” at
ubs.com/investors
, for more information
Customer deposits: 3Q25 vs 2Q25
Customer
deposits
decreased by
USD 10.6bn
to
USD 478.4bn, mainly
driven
by
net
new
deposit
outflows and
negative foreign currency effects.
Results: 9M25 vs 9M24
Profit before tax increased by USD 888m,
or 34%, to USD 3,465m, largely driven
by higher total revenues and the
positive impact from the merger of UBS AG and
Credit Suisse AG, partly offset by higher
operating expenses.
Total
revenues
increased
by
USD 2,695m,
or
17%,
to
USD 18,861m, mainly
reflecting
higher
recurring
net
fee
income, transaction-based income and net
interest income. The
remaining increase was due
to the consolidation
of Credit Suisse AG revenues for the full period.
Net interest income
increased by USD 648m,
or 15%, to USD 4,831m,
mainly driven by
the consolidation of
Credit
Suisse AG
net
interest
income
for
the
full
period.
The
remaining
variance
was
mainly
due
to
balance
sheet
optimization
measures,
lower
liquidity
and
funding
costs,
positive
foreign
currency
effects
and
the
effects
of
favorable changes in
deposit mix. These
increases
were partly offset
by the impact
of lower central
bank interest
rates on deposit revenues and by lower loan revenues,
which reflected margin contraction.
Recurring net fee
income increased
by USD 1,280m, or
15%, to USD 10,101m,
mainly due to
higher average
levels
of fee-generating
assets reflecting
positive impacts
from market
performance and
net new
fee-generating asset
inflows over the
course of the
last 12 months,
largely driven by
mandate sales. The
increase was also
due to the
consolidation of Credit Suisse AG recurring net
fee income for the full period.
Transaction-based income
increased by
USD 831m, or
27%, to
USD 3,919m, mainly
driven by
higher levels
of client
activity across
the Asia
Pacific,
EMEA and
Americas regions
and by
the consolidation
of Credit
Suisse AG transaction-
based income for the full period.
Other
income decreased
by USD 63m
to USD 11m,
mostly due
to lower
shared services
costs charged
to other
subsidiaries of UBS Group AG,
mainly related to
secondments,
and included a
net loss of
USD 42m related to an
investment in an associate, partly offset by a
USD 33m gain from the sale
of our wealth management business in
India.
Net credit
loss expenses
were USD 13m,
compared with
net credit
loss expenses
of USD 10m
in the
first nine
months
of 2024.
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items | Global Wealth Management
19
Operating expenses
increased by
USD 1,804m, or
13%, to
USD 15,383m, mainly
driven by
the consolidation
of
Credit Suisse AG operating expenses for the
full period and by
an increase in financial
advisor compensation as a
result of
higher compensable
revenues, partly
offset by
net releases
in provisions
for litigation,
regulatory and
similar
matters,
primarily reflecting USD 284m
of releases
related to
the resolution of
a legacy
matter concerning cross-
border business activities in France.
›
Refer to “Other developments” in the “Recent developments” section and “Note 16 Provisions and contingent
liabilities” in the “Consolidated financial statements” section of this report for more information about litigation,
regulatory and similar matters
Personal & Corporate Banking
Personal & Corporate Banking – in Swiss francs
As of or for the quarter ended
% change from
Year-to-date
CHF m, except where indicated
30.9.25
30.6.25
30.9.24
2Q25
3Q24
30.9.25
30.9.24
Results
Net interest income
938
929
1,059
1
(11)
2,819
2,522
Recurring net fee income
1
337
313
340
8
(1)
979
833
Transaction-based income
1
443
484
422
(8)
5
1,380
1,075
Other income
(57)
(28)
56
106
(17)
81
Total revenues
1,661
1,698
1,877
(2)
(12)
5,162
4,510
Credit loss expense / (release)
62
91
72
(32)
(14)
206
180
Operating expenses
1,281
1,224
1,244
5
3
3,878
2,864
Business division operating profit / (loss) before tax
318
383
561
(17)
(43)
1,079
1,467
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
(43.3)
(7.4)
(3.8)
(26.4)
(16.2)
Cost / income ratio (%)
1
77.1
72.1
66.3
75.1
63.5
Net interest margin (bps)
1
150
148
169
150
168
Loans, gross (CHF bn)
250.0
251.5
247.4
(1)
1
250.0
247.4
Customer deposits (CHF bn)
247.9
250.5
253.5
(1)
(2)
247.9
253.5
Credit-impaired loan portfolio as a percentage of total loan
portfolio, gross (%)
1,2
1.2
1.3
1.4
1.2
1.4
1
Refer to “Alternative performance measures”
in the appendix to this report for the definition and calculation method.
2
Refer to the “Risk management and control” section of the UBS Group third
quarter 2025
report, available under “Quarterly reporting” at ubs.com/investors, for more
information about credit-impaired exposures.
Results
:
3Q25 vs 3Q24
Profit before
tax decreased
by CHF 243m,
or 43%,
to CHF 318m,
as lower
total revenues
and higher
operating
expenses were partly offset by lower net credit loss expenses.
Total revenues
Total
revenues decreased
by CHF 216m,
or 12%,
to CHF 1,661m,
mainly due
to lower
net interest
income and
other income, and included a loss of CHF
81m related to an investment in an associate.
Net interest income decreased by CHF 121m, or 11%, to
CHF 938m, mainly reflecting the impact of lower central
bank interest rates on deposit revenues. This was partly offset by deposit pricing measures and lower liquidity and
funding costs.
Recurring net
fee income
decreased by
CHF 3m, or
1%, to
CHF 337m and
largely consisted
of fees
for services
provided on an ongoing basis, such as administrative
fees for accounts, custody fees,
asset-based investment fund
fees and
portfolio management
fees. The
year-on-year change
was negatively
affected by
lower Swisscard
revenues
and a reclassification of
recurring net fee income
to transaction-based income
as a result of
aligning Credit Suisse’s
presentation to
that of
UBS in
the second
half of
- These
effects were
partly offset
by higher
custody fees,
mainly reflecting positive market performance
and net new inflows.
Transaction-based income increased
by CHF 21m,
or 5%,
to CHF 443m,
mostly due
to higher
corporate finance
fees and the positive effect from the aforementioned
reclassification.
Other income was
negative CHF 57m, compared
with positive CHF 56m
and included a
loss of CHF 81m
related to
an investment in an associate.
Credit loss expense / release
Net credit loss expenses were CHF 62m and mainly reflected net expenses on credit-impaired positions. Net credit
loss expenses in the prior-year quarter were CHF 72m.
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items | Personal & Corporate Banking
20
Operating expenses
Operating
expenses
increased
by
CHF 37m,
or
3%,
to
CHF 1,281m
and
included
higher
integration-related
expenses,
partly offset by
lower personnel and real
estate expenses and by
CHF 29m of net releases
in provisions
for litigation,
regulatory and
similar matters related
to the
resolution of
a legacy
matter concerning cross-border
business activities in France.
›
Refer to “Other developments” in the “Recent developments” section and “Note 16 Provisions and contingent
liabilities” in the “Consolidated financial statements” section of this report for more information about litigation,
regulatory and similar matters
Results
:
9M25 vs 9M24
Profit before tax decreased
by CHF 388m, or
26%, to CHF 1,079m,
as higher total
revenues were more
than offset
by higher operating expenses and net credit
loss expenses.
Total
revenues
increased
by
CHF 652m,
or
14%,
to
CHF 5,162m,
mainly
due
to
the
consolidation
of
Credit
Suisse AG revenues for the full period, and included a
gain of CHF 58m related to the Swisscard
transactions and
a net loss of CHF 90m related to an investment
in an associate.
Net interest income
increased by CHF 297m,
or 12%, to CHF 2,819m,
largely reflecting the
consolidation of Credit
Suisse AG net interest income for the full period.
Recurring net
fee income
increased by
CHF 146m, or
18%, to
CHF 979m, mostly
due to the
consolidation of
Credit
Suisse AG recurring
net fee
income for
the full
period, as
well as
higher custody
fees, mainly
reflecting net
new
inflows and positive market performance.
Transaction-based income
increased by
CHF 305m, or
28%, to
CHF 1,380m, largely
due to
the consolidation
of
Credit Suisse AG transaction-based income
for the full period.
Other income was negative CHF 17m, compared with positive CHF 81m, and included a gain of CHF 58m related
to the Swisscard transactions and a net loss
of CHF 90m related to an investment in an associate.
Net credit loss expenses were
CHF 206m, primarily due to net
credit loss expenses on credit-impaired
positions in
the
legacy
Credit
Suisse
corporate
loan
book.
Net
credit
loss
expenses
in
the
first
nine
months
of
2024
were
CHF 180m.
Operating expenses increased by CHF 1,014m,
or 35%, to CHF 3,878m, largely due to the
consolidation of Credit
Suisse AG operating expenses for the full
period, a CHF 164m expense related to
the Swisscard transactions,
and
higher
integration-related
expenses,
partly
offset
by
lower
personnel
expenses,
including
lower
variable
compensation, and by CHF
29m of net releases in
provisions for litigation,
regulatory and similar
matters related to
the resolution of a legacy matter concerning
cross-border business activities in France.
›
Refer to “Other developments” in the “Recent developments” section and “Note 16 Provisions and contingent
liabilities” in the “Consolidated financial statements” section of this report for more information about litigation,
regulatory and similar matters
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items | Personal & Corporate Banking
21
Personal & Corporate Banking – in US dollars
As of or for the quarter ended
% change from
Year-to-date
USD m, except where indicated
30.9.25
30.6.25
30.9.24
2Q25
3Q24
30.9.25
30.9.24
Results
Net interest income
1,168
1,142
1,233
2
(5)
3,369
2,868
Recurring net fee income
1
420
385
396
9
6
1,171
946
Transaction-based income
1
551
594
492
(7)
12
1,651
1,220
Other income
(72)
(35)
64
106
(32)
93
Total revenues
2,067
2,086
2,185
(1)
(5)
6,158
5,127
Credit loss expense / (release)
78
114
84
(31)
(7)
249
203
Operating expenses
1,595
1,504
1,449
6
10
4,625
3,257
Business division operating profit / (loss) before tax
394
469
653
(16)
(40)
1,284
1,667
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
(39.6)
3.0
(0.2)
(23.0)
(13.9)
Cost / income ratio (%)
1
77.2
72.1
66.3
75.1
63.5
Net interest margin (bps)
1
148
152
172
151
169
Loans, gross (USD bn)
313.9
316.9
292.2
(1)
7
313.9
292.2
Customer deposits (USD bn)
311.3
315.5
299.4
(1)
4
311.3
299.4
Credit-impaired loan portfolio as a percentage of total loan
portfolio, gross (%)
1,2
1.2
1.3
1.4
1.2
1.4
1 Refer to “Alternative performance measures” in the
appendix to this report for the definition and calculation method.
2 Refer to the “Risk management and control” section of the UBS Group third quarter
2025
report, available under “Quarterly reporting”
at ubs.com/investors, for more information about credit-impaired exposures.
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items | Asset Management
22
Asset Management
Asset Management
As of or for the quarter ended
% change from
Year-to-date
USD m, except where indicated
30.9.25
30.6.25
30.9.24
2Q25
3Q24
30.9.25
30.9.24
Results
Net management fees
1
755
733
758
3
0
2,200
1,827
Performance fees
87
39
46
125
90
156
91
Net gain from disposals
1
84
(99)
(1)
113
Total revenues
842
771
888
9
(5)
2,354
2,031
Credit loss expense / (release)
0
0
0
0
0
Operating expenses
622
622
720
0
(14)
1,848
1,691
Business division operating profit / (loss) before tax
220
149
168
48
31
506
340
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
2
30.7
22.8
95.6
49.0
25.6
Cost / income ratio (%)
2
73.9
80.7
81.1
78.5
83.3
Gross margin on invested assets (bps)
2
17
16
20
17
18
Information by business line / asset
class
Invested assets (USD bn)
2
Equities
3
873
846
747
3
17
873
747
Fixed Income
3
499
497
471
0
6
499
471
of which: money market
172
169
153
2
13
172
153
Multi-asset & Solutions
3
360
304
285
18
26
360
285
Hedge Fund Businesses
65
62
60
4
8
65
60
Real Estate & Private Markets
158
159
152
(1)
4
158
152
Total invested assets excluding associates
1,954
1,868
1,714
5
14
1,954
1,714
of which: passive strategies
992
930
806
7
23
992
806
Associates
4
89
84
83
6
7
89
83
Total invested assets
2,043
1,952
1,797
5
14
2,043
1,797
Information by region
Invested assets (USD bn)
2
Americas
486
465
438
4
11
486
438
Asia Pacific
5
249
236
229
6
9
249
229
EMEA (excluding Switzerland)
519
487
403
7
29
519
403
Switzerland
789
765
728
3
8
789
728
Total invested assets
2,043
1,952
1,797
5
14
2,043
1,797
Information by channel
Invested assets (USD bn)
2
Third-party institutional
1,169
1,129
1,010
4
16
1,169
1,010
Third-party wholesale
200
179
182
12
10
200
182
UBS’s wealth management businesses
585
559
522
4
12
585
522
Associates
4
89
84
83
6
7
89
83
Total invested assets
2,043
1,952
1,797
5
14
2,043
1,797
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 In the third quarter of 2025, certain portfolios
were reclassified from Equities and Fixed Income to Multi-asset & Solutions, as a
result of aligning Credit Suisse presentation to that of UBS. These changes were applied prospectively.
4 The invested assets amounts
reported for associates are prepared in accordance with their local regulatory requirements and practices.
5 Includes invested assets from associates.
Results: 3Q25 vs 3Q24
Profit before tax increased by USD 52m, or 31%, to USD 220m, reflecting lower operating expenses, partly offset
by lower total revenues.
Total revenues
Total
revenues decreased by USD 46m,
or 5%, to USD 842m,
mainly due to the
third quarter of 2024
including an
USD 84m net gain from disposals, partly offset by higher
performance fees. The gross margin was 17 basis
points.
Net management fees decreased by USD 3m to USD 755m, of which USD 736m was reported within net fee and
commission
income
for
UBS AG.
Positive
market
performance
and
foreign
currency
effects,
as
well
as
higher
transaction fees, were largely offset by the negative impact from continued margin compression and by USD 27m
of
negative revenues
related to
Hedge
Fund Businesses
(linked
to the
below-described increase
in
performance
fees). Net management fees were also impacted by a USD 19m revaluation in the third quarter of 2024 related to
a real-estate fund co-investment.
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items | Asset Management
23
Performance
fees
increased
by
USD 41m,
or
90%,
to
USD 87m,
all
of
which
was
reported
within
net
fee
and
commission income for UBS AG.
The increase was mainly
due to a
USD 51m increase in revenues
in Hedge Fund
Businesses
(partly
offset
by
the
aforementioned negative
revenues
in
net
management fees),
partly
offset
by
a
USD 9m decrease in Fixed Income.
Operating expenses
Operating expenses decreased by USD 98m, or
14%, to USD 622m, driven by lower
non-personnel and personnel
expenses.
Invested assets: 3Q25 vs 2Q25
Invested
assets
increased
by
USD 91bn,
or
5%,
to
USD 2,043bn,
reflecting
positive
market
performance
of
USD 78bn
and
net
new
money
of
USD 18bn,
partly
offset
by
negative
foreign
currency
effects
of
USD 4bn.
Excluding money market flows and associates,
net new money was positive USD 14bn.
Results: 9M25 vs 9M24
Profit
before
tax
increased
by
USD 166m,
or
49%,
to
USD 506m,
mainly
reflecting
the
impact
from
the
consolidation of Credit Suisse AG for the full period.
Total revenues
increased by
USD 323m, or
16%, to
USD 2,354m, primarily reflecting
the consolidation of
Credit
Suisse AG revenues for the full period and higher performance fees, partly offset by the first nine months of 2024
including USD 113m of net gains from
disposals. The gross margin was 17 basis points.
Net
management
fees
increased
by
USD 373m,
or
20%,
to
USD 2,200m,
of
which
USD 2,113m
was
reported
within
net
fee
and
commission
income
for
UBS AG.
The
increase
largely
reflected
the
consolidation
of
Credit
Suisse AG net
management fees
for the
full period,
partly offset
by USD 27m
of negative
revenues related
to Hedge
Fund Businesses
(linked to
the below-described
increase in
performance fees) and
a USD 19m
revaluation in
the
first nine months of 2024 related to a real-estate
fund co-investment.
Performance fees
increased by
USD 65m, or
71%, to
USD 156m, all
of which
was reported
within net
fee and
commission income for UBS AG.
The increase was mainly
due to a
USD 68m increase in revenues
in Hedge Fund
Businesses (partly offset by the aforementioned
negative revenues in net management
fees).
Operating expenses
increased by
USD 157m, or
9%, to
USD 1,848m, largely
due to
the consolidation
of Credit
Suisse AG operating expenses for the full period,
partly offset by lower non-personnel and
personnel expenses.
Investment Bank
Investment Bank
As of or for the quarter ended
% change from
Year-to-date
USD m, except where indicated
30.9.25
30.6.25
30.9.24
2Q25
3Q24
30.9.25
30.9.24
Results
Advisory
324
192
220
68
47
738
611
Capital Markets
639
335
339
91
89
1,323
1,087
Global Banking
963
527
558
83
73
2,061
1,698
Execution Services
560
501
440
12
27
1,578
1,243
Derivatives & Solutions
962
1,119
949
(14)
1
3,381
2,762
Financing
671
670
506
0
33
2,005
1,574
Global Markets
2,192
2,289
1,895
(4)
16
6,964
5,579
of which: Equities
1,656
1,623
1,417
2
17
5,094
4,114
of which: Foreign Exchange, Rates and Credit
536
666
477
(20)
12
1,869
1,465
Total revenues
3,156
2,816
2,453
12
29
9,024
7,277
Credit loss expense / (release)
21
41
4
(48)
377
111
35
Operating expenses
2,352
2,385
2,240
(1)
5
7,192
6,523
Business division operating profit / (loss) before tax
782
390
209
100
274
1,721
718
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
1
273.9
64.7
n.m.
139.5
36.6
Cost / income ratio (%)
1
74.5
84.7
91.3
79.7
89.6
1 Refer to “Alternative performance measures” in the appendix to this report
for the definition and calculation method.
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items | Investment Bank
24
Results: 3Q25 vs 3Q24
Profit before
tax increased
by USD 573m,
or 274%,
to USD 782m,
mainly due
to higher
total revenues,
partly offset
by higher operating expenses.
Total revenues
Total
revenues increased by
USD 703m, or 29%,
to USD 3,156m, due
to higher revenues
in Global Banking
and
Global Markets,
and included a USD 128m gain from the sale of a stake in Credit Suisse Securities (China) Limited
(CSS).
›
Refer to “Other developments” in the “Recent developments” section of this report for more information about the
sale of a stake in CSS
Global Banking
Global Banking
revenues increased
by USD 405m,
or 73%,
to USD 963m,
driven by
higher Capital
Markets and
Advisory revenues, and included the aforementioned
gain from the sale of a stake in CSS.
Advisory revenues
increased by
USD 104m, or
47%, to
USD 324m, largely
driven by
an increase
in merger
and
acquisition transaction revenues.
Capital Markets revenues
increased by USD 300m,
or 89%, to
USD 639m, driven
by the aforementioned
gain from
the sale of a
stake in CSS and by
higher revenues in Leveraged Capital Markets, Equity Capital
Markets and Debt
Capital Markets.
Global Markets
Global Markets revenues increased by USD
297m, or 16%, to USD 2,192m,
mostly driven by higher
Financing and
Execution Services revenues.
Execution Services revenues
increased by USD 120m,
or 27%, to USD 560m,
mainly driven by higher
Cash Equities
revenues, led by the Asia Pacific region, reflecting
higher volumes.
Derivatives & Solutions revenues increased
by USD 13m, or 1%, to USD 962m.
Financing revenues increased by USD 165m,
or 33%, to USD 671m,
led by Prime
Brokerage revenues, supported
by higher client
balances. The prior-year quarter included
a gain of
USD 51m
on the sale
of our investment in
an
associate.
Equities
Global
Markets
Equities
revenues
increased
by
USD 239m,
or
17%,
to
USD 1,656m,
mainly
driven
by
higher
revenues in Prime Brokerage and Cash Equities. The prior-year
quarter included a gain of USD 51m on the sale of
our investment in an associate.
Foreign Exchange, Rates and Credit
Global Markets
Foreign Exchange,
Rates and
Credit revenues increased
by USD 59m,
or 12%,
to USD 536m,
driven
by increases in Rates & Credit and Foreign Exchange revenues.
Credit loss expense / release
Net credit loss expenses were USD 21m, compared with net
credit loss expenses of USD 4m in the third quarter
of
2024.
Operating expenses
Operating expenses increased by USD 112m, or 5%,
to USD 2,352m, mainly due to higher personnel
expenses.
Results: 9M25 vs 9M24
Profit before tax increased
by USD 1,003m, or 140%,
to USD 1,721m, due to
higher total revenues, partly
offset
by higher operating expenses and net credit
loss expenses.
Total revenues increased by USD 1,747m, or 24%, to USD 9,024m, due to higher revenues in Global Markets and
Global Banking,
and included the aforementioned gain
from the sale of a stake in CSS.
Global Banking revenues increased by USD 363m, or 21%, to USD 2,061m, driven by higher revenues in Advisory
and Capital Markets, and included the aforementioned
gain from the sale of a stake in CSS.
Advisory revenues
increased by
USD 127m, or
21%, to
USD 738m, largely
driven by
an increase
in merger
and
acquisition transaction revenues.
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items | Investment Bank
25
Capital Markets revenues
increased by USD 236m,
or 22%, to
USD 1,323m, mostly driven
by higher revenues
in
Equity Capital Markets and by the aforementioned
gain from the sale of a stake in CSS.
Global
Markets
revenues
increased
by
USD 1,385m,
or
25%,
to
USD 6,964m,
driven
by
higher
Derivatives &
Solutions, Financing and Execution Services
revenues.
Execution
Services
revenues
increased
by
USD 335m,
or
27%,
to
USD 1,578m,
mainly
driven
by
higher
Cash
Equities revenues across all regions, reflecting
higher volumes.
Derivatives & Solutions revenues
increased by USD 619m, or
22%, to USD 3,381m, with higher
revenues across all
products.
Financing revenues increased by USD 431m, or 27%, to
USD 2,005m, with increases in all products, led
by Prime
Brokerage revenues, supported
by higher client balances.
The prior-year period included
a gain of USD 51m
on the
sale of our investment in an associate.
Equities
Global
Markets
Equities
revenues
increased
by
USD 980m,
or
24%,
to
USD 5,094m,
mainly
driven
by
higher
revenues
in
Prime
Brokerage,
Cash
Equities
and
Equity
Derivatives.
The
prior-year
period
included
a
gain
of
USD 51m on the sale of our investment in an
associate.
Foreign Exchange, Rates and Credit
Global Markets
Foreign Exchange,
Rates and
Credit revenues
increased by
USD 404m, or
28%, to
USD 1,869m,
mainly driven by increases in Foreign Exchange revenues.
Net
credit loss
expenses were
USD 111m, compared
with net
credit loss
expenses of
USD 35m in
the first
nine
months of 2024.
Operating expenses increased by USD 669m,
or 10%, to USD 7,192m, mainly due to
higher personnel expenses.
Non-core and Legacy
Non-core and Legacy
As of or for the quarter ended
% change from
Year-to-date
USD m
30.9.25
30.6.25
30.9.24
2Q25
3Q24
30.9.25
30.9.24
Results
Total revenues
(89)
(140)
225
(36)
(110)
411
Credit loss expense / (release)
6
(1)
76
(92)
15
53
Operating expenses
737
740
851
(1)
(13)
2,225
2,542
Operating profit / (loss) before tax
(832)
(880)
(701)
(5)
19
(2,351)
(2,184)
Results: 3Q25 vs 3Q24
Loss before tax was USD 832m, compared with
a loss before tax of USD 701m.
Total revenues
Total
revenues were negative USD 89m,
compared with total revenues
of USD 225m, mainly reflecting lower
net
gains from
position exits
and lower
net interest
income from
the securitized
product portfolio,
partly offset
by lower
markdowns. Total revenues in the third quarter of 2024 included a USD 67m gain from the sale of our investment
in an associate.
Credit loss expense / release
Net credit loss expenses were USD 6m,
compared with net credit loss expenses
of USD 76m, almost entirely driven
by higher credit-impaired positions in the third quarter of 2024.
Operating expenses
Operating expenses decreased by
USD 114m, or 13%, to USD 737m,
primarily driven by lower non-personnel
and
personnel expenses, partly
offset by net expenses
related to provisions for
litigation, regulatory and
similar matters.
UBS AG third quarter 2025 report |
UBS AG performance, business divisions
and Group Items | Non-core and Legacy
26
Results: 9M25 vs 9M24
Loss before tax was USD 2,351m, compared
with a loss before tax of USD 2,184m.
Total revenues
were negative
USD 110m, compared
with total
revenues of
USD 411m, mainly
reflecting lower
net
gains from position
exits and lower net
interest income
from securitized
product and credit
portfolios
and the effect
from
the
consolidation
of
Credit
Suisse AG
revenues
for
the
full
period,
partly
offset
by
lower
markdowns.
Total
revenues
in the first
nine months
of 2025 included
a loss of USD
11m from the
sale of Select
Portfolio
Servicing,
the
US mortgage
servicing business of Credit Suisse. Total
revenues in the first nine months
of 2024 included a USD 67m
gain from the sale of our
investment in an associate.
Net credit
loss expenses
were USD 15m,
compared with
net credit
loss expenses
of USD 53m
in the
first nine
months
of 2024.
Operating expenses
decreased by
USD 317m, or
12%, to
USD 2,225m, mainly
due to
the first
nine months
of 2024
including litigation expenses
of USD 1,074m, largely
reflecting UBS agreeing
in the second
quarter of 2024
to fund
an offer by
the Credit Suisse
supply chain finance
funds to
redeem all the
outstanding units
of the respective
funds.
This effect was partly
offset by USD 497m
of net expenses related
to provisions for
litigation, regulatory and
similar
matters
in
the
first
nine
months
of
2025
and
the
effect
from
the
consolidation
of
Credit
Suisse AG
operating
expenses for the full period.
Group Items
Group Items
As of or for the quarter ended
% change from
Year-to-date
USD m
30.9.25
30.6.25
30.9.24
2Q25
3Q24
30.9.25
30.9.24
Results
Total revenues
72
(70)
190
(62)
(44)
(6)
Credit loss expense / (release)
0
0
0
(1)
1
Operating expenses
327
249
250
31
31
875
737
Operating profit / (loss) before tax
(255)
(318)
(61)
(20)
321
(917)
(744)
Results: 3Q25 vs 3Q24
Loss before tax
was USD 255m, mainly reflecting
operating expenses and deferred
tax asset (DTA)
funding costs.
The USD 194m, or 321%,
change in the
result between quarters was
largely due to
lower mark-to-market gains
from Group hedging and own debt, including
hedge accounting ineffectiveness.
Results: 9M25 vs 9M24
Loss before
tax was
USD 917m, mainly
reflecting operating
expenses, DTA
funding costs
and mark-to-market
losses
from Group hedging and own debt, including hedge accounting ineffectiveness. The USD 173m,
or 23%, change
in loss before tax between periods was largely due to an increase
in provisions for litigation, regulatory and similar
matters, higher shared services costs charged by other subsidiaries of UBS Group AG, and losses from disposals of
properties held
for sale.
In addition,
the first
nine months
of 2025
included lower
mark-to-market losses
from Group
hedging and own debt,
including hedge accounting ineffectiveness,
compared with the first
nine months of 2024.
UBS AG third quarter 2025 report |
Risk and capital management | Risk management
and control
27
Risk and capital management
Management report
Risk management and control
This
section
provides
information
about
key
developments
during
the
reporting
period
and
should
be
read
in
conjunction with the “Risk
management and control”
section of the UBS AG Annual
Report 2024, available under
“Annual
reporting”
at
ubs.com/investors
,
and
the
“Recent
developments”
section
of
this
report
for
more
information about the integration of Credit
Suisse.
UBS AG consolidated risk profile
The risk profile
of UBS AG consolidated
does not differ
materially from that
of UBS Group AG consolidated
and the
risk information provided
in the UBS
Group third quarter 2025
report is equally
applicable to UBS
AG consolidated.
The
credit
risk
profile
of
UBS AG
consolidated
as
of
30 September
2025
differed
from
that
of
UBS Group AG
consolidated
in
relation
to
total
banking
products
exposure,
mainly
reflecting
purchase
price
allocation
effects
booked at the Group level relating to the acquisition of
the Credit Suisse Group, as well as receivables of
UBS AG
and
UBS Switzerland AG
from
UBS Group AG
and
UBS
Business
Solutions AG,
reflecting
consolidation
scope
differences.
The total banking
products exposure of
UBS AG consolidated as
of 30 September 2025
was USD 1,091.0bn, i.e.
USD 7.3bn,
or
0.7%,
higher
than
the
exposure
of
UBS Group AG
consolidated. As
of
30 June
2025,
the
total
banking products exposure
of UBS AG consolidated was
USD 1,111.9bn, i.e. USD
7.7bn, or 0.7%, higher
than the
exposure of UBS Group AG consolidated.
›
Refer to the “Risk management and control” section of the UBS Group third quarter 2025 report, available under
“Quarterly reporting” at
ubs.com/investors
, for more information
›
Refer to the “Comparison between UBS AG consolidated and UBS Group AG consolidated” section of this report for
more information about selected financial and capital information of UBS AG consolidated and UBS Group AG
consolidated
UBS AG third quarter 2025 report |
Risk and capital management | Capital management
28
Capital management
The
disclosures
in
this
section
are
provided
for
UBS AG
on
a
consolidated
basis
and
focus
on
information
in
accordance with the Basel III framework, as applicable to Swiss systemically
relevant banks (SRBs). They should be
read in conjunction with
“Capital management” in
the “Capital, liquidity
and funding, and balance
sheet” section
of the
UBS AG Annual
Report 2024,
available under
“Annual reporting”
at
ubs.com/investors
, which
provides more
information about relevant capital
management objectives, planning and activities,
as well as
the Swiss SRB
total
loss-absorbing capacity framework, on a UBS
AG consolidated basis.
In Switzerland, the
amendments to the Capital
Adequacy Ordinance (the CAO) that
incorporate the final Basel III
standards into
Swiss law,
including the
five new
ordinances that
contain the
implementing provisions
for the
revised
CAO, entered into force on 1 January 2025.
UBS AG contributes
a significant portion
of capital to,
and provides substantial
liquidity to, its
subsidiaries. Many of
these subsidiaries are subject to local
regulations requiring compliance with minimum capital, liquidity and similar
requirements.
›
Refer to the UBS Group and significant regulated subsidiaries and sub-groups 30 September 2025 Pillar 3 Report,
available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about additional regulatory
disclosures for UBS Group AG on a consolidated basis, as well as the significant regulated subsidiaries and sub-
groups of UBS Group AG
Swiss SRB going and gone concern requirements and information
As of 30.9.25
RWA
LRD
USD m, except where indicated
in %
in %
Required going concern capital
Total going concern capital
15.00
1
75,347
5.01
1
82,249
Common equity tier 1 capital
10.63
2
53,389
3.51
3
57,607
of which: minimum capital
4.50
22,609
1.50
24,643
of which: buffer capital
5.50
27,633
2.00
32,857
of which: countercyclical buffer
0.44
2,218
Maximum additional tier 1 capital
4.37
2
21,957
1.50
24,643
of which: additional tier 1 capital
3.50
17,585
1.50
24,643
of which: additional tier 1 buffer capital
0.80
4,019
Eligible going concern capital
Total going concern capital
18.20
91,425
5.57
91,425
Common equity tier 1 capital
14.22
71,460
4.35
71,460
Total loss-absorbing additional tier 1 capital
3.97
19,964
1.22
19,964
of which: high-trigger loss-absorbing additional tier 1 capital
3.97
19,964
1.22
19,964
Required gone concern capital
Total gone concern loss-absorbing capacity
4,5,6
10.73
53,885
3.75
61,607
of which: base requirement including add-ons for market share and LRD
10.73
7
53,885
3.75
7
61,607
Eligible gone concern capital
Total gone concern loss-absorbing capacity
19.60
98,452
5.99
98,452
Total tier 2 capital
0.00
0
0.00
0
of which: non-Basel III-compliant tier 2 capital
0.00
0
0.00
0
TLAC-eligible unsecured debt
19.60
98,452
5.99
98,452
Total loss-absorbing capacity
Required total loss-absorbing capacity
25.72
129,232
8.76
143,856
Eligible total loss-absorbing capacity
37.79
189,876
11.56
189,876
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
502,425
Leverage ratio denominator
1,642,843
1 Includes applicable add-ons of 1.70% for risk-weighted assets (RWA) and 0.51% for leverage
ratio denominator (LRD), of which 2 basis points for RWA and 1 basis point
for LRD reflect a Pillar 2 capital add-on of
USD 107m related to the supply chain finance funds matter at Credit Suisse. An additional 23 basis points for RWA reflect a Pillar 2 capital add-on for the residual exposure (after collateral mitigation) to hedge funds,
private equity and family
offices, effective 1
January 2025.
2 Includes the Pillar 2 add-on
for the residual exposure (after
collateral mitigation) to hedge
funds, private equity
and family offices of 0.16%
for CET1
capital and 0.07% 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; 4.37%
includes the
aforementioned Pillar 2 capital add-on.
3 Our CET1 leverage ratio requirement of 3.51% consists of
a 1.5% base requirement, a 1.5% base buffer capital requirement, a 0.25% LRD
add-on requirement, a 0.25%
market share add-on requirement based on our Swiss credit business and a 0.01% Pillar 2 capital add-on related to
the supply chain finance funds matter at Credit Suisse.
4 A maximum of 25% of the gone concern
requirements can be met with
instruments that have a remaining
maturity of between one and
two years. Once at
least 75% of the minimum
gone concern requirement has been
met with instruments that have
a
remaining maturity of greater than two years, all instruments that have a remaining
maturity of between one and two years remain eligible to be included in the total
gone concern capital.
5 From 1 January 2023,
the resolvability discount on the gone concern capital requirements for systemically
important banks (SIBs) has been replaced with reduced base gone concern capital requirements
equivalent to 75% of the total going
concern requirements (excluding countercyclical
buffer requirements and the
Pillar 2 add-ons).
6 As of July
2024, FINMA has the
authority to impose a
surcharge of up to 25%
of the total going
concern capital
requirements (excluding countercyclical buffer requirements and the Pillar
2 add-ons) should obstacles to an SIB’s resolvability be identified in
future resolvability assessments.
7 Includes applicable add-ons of 1.08%
for RWA and 0.38% for LRD.
UBS AG third quarter 2025 report |
Risk and capital management | Capital management
29
UBS AG, on a consolidated basis, is subject to
the going and gone concern requirements of the Swiss
CAO, which
include additional requirements applicable to Swiss SRBs.
The table above provides the risk-weighted asset (RWA)-
and leverage ratio denominator (LRD)-based
requirements and information as of 30 September 2025.
UBS AG and UBS Switzerland AG are subject
to going and gone concern requirements
on a standalone basis.
Effective 1 January 2025,
a Pillar 2 capital
add-on for uncollateralized
exposures to hedge
funds, private equity
and
family offices has been introduced.
This resulted in an increase of
23 basis points in the RWA-based
going concern
capital requirement as of 30 September 2025.
On a standalone basis as of 30 September 2025, UBS AG’s fully applied common equity tier 1 (CET1) capital ratio
was 13.3%.
Additional capital
information for
UBS AG standalone
is provided
in the
UBS Group
and significant
regulated subsidiaries and sub-groups 30 September 2025 Pillar 3 Report, available under “Pillar 3
disclosures” at
ubs.com/investors
.
Total loss-absorbing capacity
The table below provides Swiss SRB going and gone concern information based on the Swiss SRB
framework and
requirements that are discussed under “Capital management” in the “Capital, liquidity and funding, and
balance
sheet”
section
of
the
UBS AG
Annual
Report
2024,
available
under
“Annual
reporting”
at
ubs.com/investors
.
Changes to the Swiss SRB framework
and requirements after the publication of the
UBS AG Annual Report 2024
are described above.
Swiss SRB going and gone concern information
USD m, except where indicated
30.9.25
30.6.25
31.12.24
Eligible going concern capital
Total going concern capital
91,425
88,485
89,623
Total tier 1 capital
91,425
88,485
89,623
Common equity tier 1 capital
71,460
69,829
73,792
Total loss-absorbing additional tier 1 capital
19,964
18,656
15,830
of which: high-trigger loss-absorbing additional tier 1 capital
19,964
18,656
14,585
of which: low-trigger loss-absorbing additional tier 1 capital
1,245
Eligible gone concern capital
Total gone concern loss-absorbing capacity
98,452
93,502
92,177
Total tier 2 capital
0
196
207
of which: non-Basel III-compliant tier 2 capital
0
196
207
TLAC-eligible unsecured debt
98,452
93,306
91,970
Total loss-absorbing capacity
Total loss-absorbing capacity
189,876
181,987
181,800
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
502,425
498,327
495,110
Leverage ratio denominator
1,642,843
1,660,097
1,523,277
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
18.2
17.8
18.1
of which: common equity tier 1 capital ratio
14.2
14.0
14.9
Gone concern loss-absorbing capacity ratio
19.6
18.8
18.6
Total loss-absorbing capacity ratio
37.8
36.5
36.7
Leverage ratios (%)
Going concern leverage ratio
5.6
5.3
5.9
of which: common equity tier 1 leverage ratio
4.3
4.2
4.8
Gone concern leverage ratio
6.0
5.6
6.1
Total loss-absorbing capacity leverage ratio
11.6
11.0
11.9
UBS AG third quarter 2025 report |
Risk and capital management | Capital management
30
UBS AG vs UBS Group AG consolidated
loss-absorbing capacity and leverage information
Swiss SRB going and gone concern information (UBS AG vs UBS Group AG consolidated)
As of 30.9.25
USD m, except where indicated
UBS AG
(consolidated)
UBS Group AG
(consolidated)
Difference
Eligible going concern capital
Total going concern capital
91,425
94,950
(3,526)
Total tier 1 capital
91,425
94,950
(3,526)
Common equity tier 1 capital
71,460
74,655
(3,194)
Total loss-absorbing additional tier 1 capital
19,964
20,296
(331)
of which: high-trigger loss-absorbing additional tier 1 capital
19,964
20,296
(331)
Eligible gone concern capital
Total gone concern loss-absorbing capacity
98,452
104,379
(5,927)
Total tier 2 capital
0
0
0
of which: non-Basel III-compliant tier 2 capital
0
0
0
TLAC-eligible senior unsecured debt
98,452
104,379
(5,927)
Total loss-absorbing capacity
Total loss-absorbing capacity
189,876
199,329
(9,453)
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
502,425
504,897
(2,472)
Leverage ratio denominator
1,642,843
1,640,464
2,380
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
18.2
18.8
(0.6)
of which: common equity tier 1 capital ratio
14.2
14.8
(0.6)
Gone concern loss-absorbing capacity ratio
19.6
20.7
(1.1)
Total loss-absorbing capacity ratio
37.8
39.5
(1.7)
Leverage ratios (%)
Going concern leverage ratio
5.6
5.8
(0.2)
of which: common equity tier 1 leverage ratio
4.3
4.6
(0.2)
Gone concern leverage ratio
6.0
6.4
(0.4)
Total loss-absorbing capacity leverage ratio
11.6
12.2
(0.6)
UBS AG third quarter 2025 report |
Risk and capital management | Capital management
31
Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital (UBS AG vs UBS
Group AG consolidated)
As of 30.9.25
USD m
UBS AG
(consolidated)
UBS Group AG
(consolidated)
Difference
Total equity under IFRS Accounting Standards
95,594
90,204
5,390
Equity attributable to non-controlling interests
(459)
(305)
(154)
Defined benefit plans, net of tax
(945)
(957)
12
Deferred tax assets recognized for tax loss carry-forwards
(2,306)
(2,306)
0
Deferred tax assets for unused tax credits
(883)
(883)
Deferred tax assets on temporary differences, excess over threshold
(676)
(1,081)
404
Goodwill, net of tax
(6,290)
(5,785)
(505)
Intangible assets, net of tax
(104)
(714)
610
Compensation-related components (not recognized in net profit)
(2,298)
2,298
Expected losses on advanced internal ratings-based portfolio less provisions
(728)
(721)
(6)
Unrealized (gains) / losses from cash flow hedges, net of tax
1,349
1,349
Own credit related to (gains) / losses on financial liabilities
measured at fair value that existed at the balance sheet date,
net of tax
1,657
1,588
69
Own credit related to (gains) / losses on derivative financial instruments
that existed at the balance sheet date
(73)
(73)
Prudential valuation adjustments
(177)
(177)
Accruals for dividends to shareholders for 2024
(6,500)
1
(6,500)
Accruals for expected dividends to shareholders for 2025
(8,000)
(2,340)
(5,660)
Capital reserve for expected future share repurchases
(904)
904
Other
2
58
(56)
Total common equity tier 1 capital
71,460
74,655
(3,194)
1 Reflects the appropriation
of USD 6,500m to
a special dividend reserve
approved at the 2025
Annual General Meeting
in April 2025.
The supplementary dividend
of USD 6,500m was
paid to UBS Group
AG in
October 2025 as approved by the Extraordinary General Meeting.
The
going
concern
capital
of
UBS AG
consolidated
was
USD 3.5bn
lower
than
the
going
concern
capital
of
UBS Group AG consolidated as of 30 September
2025, reflecting CET1 capital being USD 3.2bn
lower and going
concern loss-absorbing additional tier 1 (AT1)
capital being USD 0.3bn lower.
The aforementioned difference in CET1 capital was
primarily due to a
USD 12.2bn difference in dividend accruals
between UBS AG
and UBS
Group AG, partly
offset by
UBS Group AG’s
consolidated equity
being USD 5.4bn
lower,
compensation-related regulatory
capital accruals
at the
UBS
Group AG level
of USD 2.3bn,
a
capital
reserve for
expected
future
share
repurchases
of
USD 0.9bn
and
a
USD 0.4bn
effect
from
eligible
deferred
tax
assets
on
temporary differences.
The
going
concern
loss-absorbing
AT1
capital
of
UBS AG
consolidated
was
USD 0.3bn
lower
than
that
of
UBS Group AG consolidated as
of 30 September 2025, mainly
reflecting deferred contingent capital plan
awards
granted at the Group level to eligible employees
for the 2020 to 2024 performance years.
Differences
in
capital
between
UBS AG
consolidated
and
UBS Group
AG
consolidated
related
to
employee
compensation
plans
will
reverse
to
the
extent
underlying
services
are
performed
by
employees
of,
and
are
consequently charged to, UBS AG and its subsidiaries.
Such reversal generally occurs over the service
period of the
employee compensation plan.
The
LRD
of
UBS AG
consolidated
was
USD 2.4bn
higher
than
the
LRD
of
UBS
Group AG
consolidated,
mainly
reflecting
intercompany
exposures
in
UBS AG
toward Group
entities,
as
well
as
purchase
price
allocation
(PPA)
adjustments that apply at the Group level but not at the UBS AG level, partly offset by fixed assets held outside of
the UBS AG consolidation scope.
The RWA
of UBS AG
consolidated were
USD 2.5bn lower
than the
RWA of
UBS Group AG
consolidated, mainly
reflecting
non-counterparty-related
assets
held
outside
the
UBS AG
consolidation
scope,
partly
offset
by
intercompany credit risk exposures in UBS AG
toward Group entities outside of the
UBS AG consolidation scope.
The LRD for UBS AG consolidated
exceeds that of UBS
Group AG consolidated, and
UBS AG’s RWA are lower
than
those of UBS Group AG
consolidated.
This divergence stems
mainly from certain PPA
adjustments that apply
at the
Group level but not at the UBS AG level and are
subject to low risk weights.
›
Refer to the “Capital management” section of the UBS Group third quarter 2025 report, available under “Quarterly
reporting” at
ubs.com/investors
, for information about the developments of loss-absorbing capacity, RWA
and LRD
for UBS Group AG consolidated
UBS AG third quarter 2025 report |
Consolidated financial statements
32
Consolidated financial
statements
Unaudited
Table of contents
UBS AG interim consolidated financial
statements (unaudited)
33
Income statement
34
Statement of comprehensive income
35
Balance sheet
36
Statement of changes in equity
37
Statement of cash flows
Notes to the UBS AG interim consolidated financial
statements (unaudited)
38
1
Basis of accounting
39
2
Accounting for the merger of UBS AG and Credit Suisse AG
39
3
Segment reporting
40
4
Net interest income
40
5
Net fee and commission income
41
6
Other income
41
7
Personnel expenses
41
8
General and administrative expenses
42
9
Expected credit loss measurement
50
10
Fair value measurement
56
11
Derivative instruments
57
12
Other assets and liabilities
58
13
Funding from UBS Group AG measured at amortized cost
58
14
Debt issued designated at fair value
58
15
Debt issued measured at amortized cost
59
16
Provisions and contingent liabilities
UBS AG third quarter 2025 report |
Consolidated financial statements | UBS
AG interim consolidated financial statements
(unaudited)
33
UBS AG interim consolidated
financial statements (unaudited)
Income statement
For the quarter ended
Year-to-date
USD m
Note
30.9.25
30.6.25
30.9.24
30.9.25
30.9.24
Interest income from financial instruments measured at
amortized cost and fair value through
other comprehensive income
4
6,528
6,895
8,335
20,066
21,467
Interest expense from financial instruments measured at
amortized cost
4
(6,567)
(6,805)
(8,820)
(20,281)
(21,952)
Net interest income from financial instruments measured
at fair value through profit or loss and other
4
1,647
1,495
2,045
4,736
3,573
Net interest income
4
1,608
1,584
1,560
4,520
3,088
Other net income from financial instruments measured
at fair value through profit or loss
3,498
3,374
3,592
10,796
9,809
Fee and commission income
5
7,771
7,179
6,986
22,230
18,783
Fee and commission expense
5
(674)
(653)
(652)
(1,977)
(1,699)
Net fee and commission income
5
7,097
6,526
6,334
20,253
17,084
Other income
6
243
150
510
675
1,025
Total revenues
12,446
11,635
11,997
36,244
31,006
Credit loss expense / (release)
9
113
152
167
388
303
Personnel expenses
7
5,797
5,649
5,788
17,356
14,746
General and administrative expenses
8
4,303
4,228
4,014
12,608
11,584
Depreciation, amortization and impairment of non-financial
assets
726
744
838
2,184
2,000
Operating expenses
10,826
10,621
10,640
32,148
28,329
Operating profit / (loss) before tax
1,507
862
1,191
3,708
2,374
Tax expense / (benefit)
213
(336)
194
181
587
Net profit / (loss)
1,294
1,198
997
3,527
1,787
Net profit / (loss) attributable to non-controlling interests
6
6
1
19
49
Net profit / (loss) attributable to shareholders
1,288
1,192
996
3,508
1,738
UBS AG third quarter 2025 report |
Consolidated financial statements | UBS
AG interim consolidated financial statements
(unaudited)
34
Statement of comprehensive income
For the quarter ended
Year-to-date
USD m
30.9.25
30.6.25
30.9.24
30.9.25
30.9.24
Comprehensive income attributable to shareholders
Net profit / (loss)
1,288
1,192
996
3,508
1,738
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
(257)
4,433
2,460
5,482
787
Effective portion of changes in fair value of hedging instruments
designated as net investment hedges, before tax
140
(1,819)
(1,008)
(2,190)
(123)
Foreign currency translation differences on foreign operations reclassified to the
income statement
0
(1)
2
0
4
Effective portion of changes in fair value of hedging instruments
designated as net investment hedges reclassified
to
the income statement
1
0
0
0
1
Income tax relating to foreign currency translations, including the effect of
net investment hedges
1
(3)
8
(4)
22
Subtotal foreign currency translation, net of tax
(116)
2,610
1,461
3,288
690
Financial assets measured at fair value through other comprehensive income
Net unrealized gains / (losses), before tax
16
(4)
2
9
1
Net realized (gains) / losses reclassified to the income statement
from equity
0
0
0
0
0
Income tax relating to net unrealized gains / (losses)
0
0
0
0
0
Subtotal financial assets measured at fair value through other comprehensive
income, net of tax
16
(4)
2
9
1
Cash flow hedges of interest rate risk
Effective portion of changes in fair value of derivative instruments designated
as cash flow hedges, before tax
(65)
398
1,579
681
169
Net (gains) / losses reclassified to the income statement from
equity
286
296
388
903
1,506
Income tax relating to cash flow hedges
(43)
(131)
(374)
(299)
(255)
Subtotal cash flow hedges, net of tax
178
562
1,593
1,285
1,420
Cost of hedging
Cost of hedging, before tax
39
7
(8)
66
(34)
Income tax relating to cost of hedging
0
0
0
0
0
Subtotal cost of hedging, net of tax
39
7
(8)
66
(34)
Total other comprehensive income that may be reclassified to the income statement, net
of tax
117
3,175
3,048
4,648
2,077
Other comprehensive income that will not be reclassified to the income
statement
Defined benefit plans
Gains / (losses) on defined benefit plans, before tax
34
(7)
(127)
46
(50)
Income tax relating to defined benefit plans
(22)
(9)
8
(31)
0
Subtotal defined benefit plans, net of tax
12
(16)
(119)
15
(49)
Own credit on financial liabilities designated at fair value
Gains / (losses) from own credit on financial liabilities designated
at fair value, before tax
(577)
(140)
(317)
(483)
(70)
Income tax relating to own credit on financial liabilities designated
at fair value
1
2
(6)
2
(8)
Subtotal own credit on financial liabilities designated at
fair value, net of tax
(576)
(138)
(323)
(482)
(78)
Total other comprehensive income that will not be reclassified to the income statement,
net of tax
(564)
(154)
(442)
(467)
(128)
Total other comprehensive income
(447)
3,021
2,606
4,181
1,949
Total comprehensive income attributable to shareholders
841
4,213
3,602
7,689
3,687
Comprehensive income attributable to non-controlling
interests
Net profit / (loss)
6
6
1
19
49
Total other comprehensive income that will not be reclassified to the income statement,
net of tax
(1)
13
20
27
(11)
Total comprehensive income attributable to non-controlling interests
5
18
21
46
37
Total comprehensive income
Net profit / (loss)
1,294
1,198
997
3,527
1,787
Other comprehensive income
(448)
3,034
2,626
4,208
1,937
of which: other comprehensive income that may be reclassified
to the income statement
117
3,175
3,048
4,648
2,077
of which: other comprehensive income that will not be reclassified
to the income statement
(565)
(142)
(422)
(440)
(139)
Total comprehensive income
846
4,231
3,623
7,735
3,724
UBS AG third quarter 2025 report |
Consolidated financial statements | UBS
AG interim consolidated financial statements
(unaudited)
35
Balance sheet
USD m
Note
30.9.25
30.6.25
31.12.24
Assets
Cash and balances at central banks
218,738
236,193
223,329
Amounts due from banks
18,666
20,688
18,111
Receivables from securities financing transactions measured at amortized
cost
95,343
110,161
118,302
Cash collateral receivables on derivative instruments
11
43,538
45,478
43,959
Loans and advances to customers
9
653,269
653,195
587,347
Other financial assets measured at amortized cost
12
72,904
72,546
59,279
Total financial assets measured at amortized cost
1,102,458
1,138,262
1,050,326
Financial assets at fair value held for trading
10
178,831
169,487
159,223
of which: assets pledged as collateral that may be sold or repledged
by counterparties
45,062
46,336
38,532
Derivative financial instruments
10, 11
154,712
170,622
186,435
Brokerage receivables
10
30,633
29,068
25,858
Financial assets at fair value not held for trading
10
105,566
107,503
95,203
Total financial assets measured at fair value through profit or loss
469,742
476,680
466,719
Financial assets measured at fair value through other comprehensive income
10
9,801
6,872
2,195
Investments in associates
2,260
2,628
2,306
Property, equipment and software
12,246
12,425
12,091
Goodwill and intangible assets
6,743
6,753
6,661
Deferred tax assets
11,121
11,112
10,481
Other non-financial assets
12
19,505
17,082
17,282
Total assets
1,633,877
1,671,814
1,568,060
Liabilities
Amounts due to banks
28,182
31,928
23,347
Payables from securities financing transactions measured at amortized cost
18,650
16,308
14,824
Cash collateral payables on derivative instruments
11
34,546
33,492
36,366
Customer deposits
786,323
804,705
749,476
Funding from UBS Group AG measured at amortized cost
13
117,178
113,000
107,918
Debt issued measured at amortized cost
15
99,063
107,505
101,104
Other financial liabilities measured at amortized cost
12
17,559
18,528
21,762
Total financial liabilities measured at amortized cost
1,101,501
1,125,466
1,054,796
Financial liabilities at fair value held for trading
10
53,796
52,346
35,247
Derivative financial instruments
10, 11
163,534
183,905
180,678
Brokerage payables designated at fair value
10
62,067
57,951
49,023
Debt issued designated at fair value
10, 14
105,857
108,252
102,567
Other financial liabilities designated at fair value
10, 12
37,645
35,529
34,041
Total financial liabilities measured at fair value through profit or loss
422,899
437,984
401,555
Provisions
16
4,539
5,082
5,131
Other non-financial liabilities
12
9,345
8,429
11,911
Total liabilities
1,538,283
1,576,960
1,473,394
Equity
Share capital
386
386
386
Share premium
84,721
84,705
84,777
Retained earnings
4,427
3,703
7,838
Other comprehensive income recognized directly in equity, net of tax
5,600
5,483
1,002
Equity attributable to shareholders
95,135
94,278
94,003
Equity attributable to non-controlling interests
459
576
662
Total equity
95,594
94,854
94,666
Total liabilities and equity
1,633,877
1,671,814
1,568,060
UBS AG third quarter 2025 report |
Consolidated financial statements | UBS
AG interim consolidated financial statements
(unaudited)
36
Statement of changes in equity
USD m
Share
capital and
share
premium
Retained
earnings
OCI recognized
directly in
equity,
net of tax
1
of which:
foreign
currency
translation
of which:
cash flow
hedges
Total equity
attributable to
shareholders
Balance as of 1 January 2025
2
85,163
7,838
1,002
3,686
(2,585)
94,003
Premium on shares issued and warrants exercised
(7)
3
(7)
Tax (expense) / benefit
37
37
Dividends
(6,500)
(6,500)
Translation effects recognized directly in retained earnings
50
(50)
(50)
0
Share of changes in retained earnings of associates and
joint ventures
(2)
(2)
New consolidations / (deconsolidations) and other increases
/ (decreases)
(86)
0
(86)
Total comprehensive income for the period
3,041
4,648
3,288
1,285
7,689
of which: net profit / (loss)
3,508
3,508
of which: OCI, net of tax
(467)
4,648
3,288
1,285
4,181
Balance as of 30 September 2025
2
85,107
4,427
5,600
6,974
(1,349)
95,135
Non-controlling interests as of 30 September 2025
459
Total equity as of 30 September 2025
95,594
Balance as of 1 January 2024
2
25,024
28,235
1,974
4,947
(2,961)
55,234
Equity recognized due to the merger of UBS AG and Credit Suisse
AG
4
60,571
(18,848)
(291)
(291)
41,432
Premium on shares issued and warrants exercised
0
0
Tax (expense) / benefit
8
8
Dividends
(3,000)
(3,000)
Translation effects recognized directly in retained earnings
(3)
3
3
0
Share of changes in retained earnings of associates and
joint ventures
(3)
(3)
New consolidations / (deconsolidations) and other increases
/ (decreases)
(441)
5
26
(414)
Total comprehensive income for the period
1,610
2,077
690
1,420
3,687
of which: net profit / (loss)
1,738
1,738
of which: OCI, net of tax
(128)
2,077
690
1,420
1,949
Balance as of 30 September 2024
2
85,162
8,019
3,762
5,637
(1,830)
96,943
Non-controlling interests as of 30 September 2024
879
6
Total equity as of 30 September 2024
97,822
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 decreases related to recharges
by UBS Group AG for share-based compensation awards
granted to employees of UBS AG or
its subsidiaries.
4 Refer to Note 2 for more information.
5 Mainly reflecting effects from transactions between
Credit
Suisse AG and its subsidiaries and UBS AG and its
subsidiaries prior to the merger in May 2024.
6 Includes an increase of USD 490m in
the second quarter of 2024 due to
the merger of UBS AG and Credit Suisse AG.
UBS AG third quarter 2025 report |
Consolidated financial statements | UBS
AG interim consolidated financial statements
(unaudited)
37
Statement of cash flows
Year-to-date
USD m
30.9.25
30.9.24
Cash flow from / (used in) operating activities
Net profit / (loss)
3,527
1,787
Non-cash items included in net profit and other adjustments
Depreciation, amortization and impairment of non-financial
assets
2,184
2,000
Credit loss expense / (release)
388
303
Share of net (profit) / loss of associates and joint ventures
and impairment related to associates
(97)
(107)
Deferred tax expense / (benefit)
(860)
(477)
Net loss / (gain) from investing activities
(190)
(98)
Net loss / (gain) from financing activities
15,433
5,574
Other net adjustments
1
(28,679)
(5,705)
Net change in operating assets and liabilities
1
Amounts due from banks and amounts due to banks
3,524
2,968
Receivables from securities financing transactions measured at amortized
cost
29,199
10,729
Payables from securities financing transactions measured at amortized cost
2,730
1,189
Cash collateral on derivative instruments
(977)
(11,320)
Loans and advances to customers
(8,322)
14,141
Customer deposits
(17,856)
(13,449)
Financial assets and liabilities at fair value held for trading and derivative financial
instruments
22,071
(11,213)
Brokerage receivables and payables
7,866
6,159
Financial assets at fair value not held for trading and other financial assets
and liabilities
(9,735)
(15,823)
Provisions and other non-financial assets and liabilities
(4,070)
738
Income taxes paid, net of refunds
(1,736)
(1,275)
Net cash flow from / (used in) operating activities
2
14,398
(13,879)
Cash flow from / (used in) investing activities
Cash and cash equivalents obtained due to the merger of UBS
AG and Credit Suisse AG
3
121,258
Purchase of subsidiaries, business, associates and intangible assets
(17)
Disposal of subsidiaries, business, associates and intangible assets
4
624
5
166
Purchase of property, equipment and software
(1,345)
(1,066)
Disposal of property, equipment and software
95
9
Purchase of financial assets measured at fair value
6
(11,103)
(3,951)
Disposal and redemption of financial assets measured at
fair value
6
3,652
3,978
Purchase of debt securities measured at amortized cost
(18,617)
(3,841)
Disposal and redemption of debt securities measured at amortized
cost
8,696
6,857
Net cash flow from / (used in) investing activities
(18,014)
123,412
Cash flow from / (used in) financing activities
Repayment of Swiss National Bank funding
(10,304)
7
Net issuance (repayment) of short-term debt measured at amortized
cost
(3,267)
(3,882)
Distributions paid on UBS AG shares
(6,500)
(3,000)
Issuance of debt designated at fair value and long-term debt measured
at amortized cost
8
98,329
82,921
Repayment of debt designated at fair value and long-term debt measured
at amortized cost
8
(107,926)
(98,381)
Inflows from securities financing transactions measured at amortized
cost
9
1,688
4,979
Outflows from securities financing transactions measured at amortized
cost
9
(1,561)
(1,113)
Net cash flows from other financing activities
(678)
(457)
Net cash flow from / (used in) financing activities
(19,915)
(29,238)
Total cash flow
Cash and cash equivalents at the beginning of the period
243,360
190,469
Net cash flow from / (used in) operating, investing and financing
activities
(23,531)
80,296
Effects of exchange rate differences on cash and cash equivalents
1
19,410
3,153
Cash and cash equivalents at the end of the period
10
239,238
273,918
of which: cash and balances at central banks
10
218,738
243,261
of which: amounts due from banks
10
17,199
18,540
of which: money market paper
10,11
3,301
11,915
Additional information
Net cash flow from / (used in) operating activities includes:
Interest received in cash
32,425
34,522
Interest paid in cash
29,250
30,623
Dividends on equity investments, investment funds and associates
received in cash
4
2,541
2,234
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 697m
and USD 2,980m within Non-core
and Legacy for the nine-month
periods ended 30 September 2025
and 30 September 2024, respectively.
3 Refer to
Note 2 for
more information.
4 Includes dividends received
from associates.
5 Includes cash proceeds
net of cash
and cash equivalents
disposed from the sale
of the US
mortgage servicing business of
Credit
Suisse, Select Portfolio Servicing, which was managed in Non-core and Legacy. Refer to “Note 29 Changes in organization and acquisitions and disposals of subsidiaries and
businesses” in the “Consolidated financial
statements” section of the UBS AG Annual Report 2024 for more information. Also includes cash proceeds,
net of cash and cash equivalents disposed of, from the sale of a stake
in a subsidiary in China and the sale
of a wealth management business in India.
6 Includes cash flows in relation to financial assets measured at fair value through other comprehensive income and financial assets measured at fair value through profit
or loss.
7 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.
8 Includes funding from UBS
Group AG measured at amortized
cost (recognized on the balance
sheet in Funding from UBS Group
AG measured at amortized cost)
and measured at fair value
(recognized on the balance sheet
in Other financial
liabilities designated at fair value).
9 Reflects cash flows from securities financing transactions measured at amortized
cost that use UBS AG debt instruments as the underlying.
10 Includes only balances with an
original maturity
of three
months or
less.
11 Money market
paper is
included in
the balance
sheet under
Financial assets
at fair
value not
held for
trading (30
September 2025:
USD 2,776m; 30
September
2024: USD 11,130m),
Other
financial
assets
measured
at
amortized
cost
(30
September 2025: USD 346m;
30
September 2024: USD 455m)
and
Financial
assets
at
fair
value
held
for
trading
(30 September 2025: USD 179m; 30 September 2024: USD 331m).
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
38
Notes to the UBS AG interim consolidated financial
statements (unaudited)
Note 1
Basis of accounting
Basis of preparation
The consolidated financial statements (the financial statements) of UBS AG and its subsidiaries (together, UBS AG)
are prepared in
accordance with IFRS Accounting Standards,
as issued by
the International Accounting Standards
Board (the IASB),
and are
presented in
US dollars. These
interim financial statements
are prepared in
accordance
with IAS 34,
Interim Financial Reporting
.
In preparing
these interim financial
statements, the same
accounting policies and
methods of
computation have
been applied as in the UBS AG consolidated annual
financial statements for the period ended 31 December
2024.
These interim financial statements
are unaudited and
should be read in
conjunction with: the audited
consolidated
financial
statements
in
the
UBS AG
Annual
Report
2024;
the
“Management
report”
sections
of
this
report,
specifically the
disclosures in
the “Recent
developments” section
of this
report regarding
the sale
of a
36.01% stake
in Credit Suisse Securities
(China) Limited and in
the “UBS AG performance, business divisions
and Group Items”
section of this report regarding the sale of Select Portfolio Servicing (the US mortgage servicing business of Credit
Suisse), the transactions related to Swisscard and the sale of UBS’s wealth management business in India; and the
information about significant
transactions disclosed in
the UBS AG
first quarter 2025
report and UBS AG
second
quarter
2025
report.
In
the
opinion
of
management,
all
necessary
adjustments
have
been
made
for
a
fair
presentation of UBS AG’s financial position, results
of operations and cash flows.
Preparation of
these interim financial
statements requires management
to make
estimates and
assumptions that
affect
the
reported
amounts
of
assets,
liabilities,
income,
expenses
and
disclosures
of
contingent
assets
and
liabilities. These estimates
and assumptions are based
on the best available
information. Actual results
in the future
could differ
from such
estimates and
differences may
be material
to the
financial statements.
Revisions to
estimates,
based on regular
reviews, are recognized
in the period
in which they
occur. For more
information about areas of
estimation
uncertainty
that
are
considered
to
require
critical
judgment,
refer
to
“Note 1a
Material
accounting
policies” in the “Consolidated financial statements”
section of the UBS AG Annual Report 2024.
Currency translation rates
The following table shows the rates of the
main currencies used to translate the
financial information of UBS AG’s
operations with a functional currency other
than the US dollar into US dollars.
Closing exchange rate
Average rate
1
As of
For the quarter ended
Year-to-date
30.9.25
30.6.25
31.12.24
30.9.24
30.9.25
30.6.25
30.9.24
30.9.25
30.9.24
1 CHF
1.26
1.26
1.10
1.18
1.25
1.23
1.17
1.19
1.14
1 EUR
1.17
1.18
1.04
1.11
1.16
1.15
1.10
1.12
1.09
1 GBP
1.34
1.37
1.25
1.34
1.35
1.35
1.31
1.32
1.28
100 JPY
0.68
0.69
0.63
0.69
0.67
0.70
0.69
0.68
0.66
1 Monthly income statement items of operations with a functional currency other than the US dollar are translated into US dollars using month-end rates. Disclosed average rates for a quarter represent an average of
three month-end rates, weighted according to the income and expense volumes of all operations of UBS AG with the same functional currency for each month. Weighted-average rates for individual business divisions
may deviate from the weighted-average rates for UBS AG.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
39
Note 2
Accounting for the merger of UBS AG and
Credit Suisse AG
Merger of UBS AG and Credit Suisse AG
The merger of UBS AG and Credit Suisse AG effected on 31 May 2024
with no consideration payable by UBS AG
constituted a business combination
under common control.
For details of the accounting for
the merger, including
accounting
policies
applicable
to
business
combinations
under
common
control,
refer
to
“Note 1a
Material
accounting
policies”
and
“Note 2
Accounting
for
the
merger
of
UBS AG
and
Credit
Suisse AG”
in
the
“Consolidated financial statements” section of
the UBS AG Annual Report 2024.
Comparability
The income statement and
the statement of comprehensive
income for the second and
third quarters of 2025
and
for the third quarter of 2024
are based entirely on
consolidated data following the merger of UBS AG and Credit
Suisse AG.
The
year-to-date
information
for
2025
in
the
income
statement,
the
statement
of
comprehensive
income, the statement of
changes in equity and
the statement of cash flows
is based entirely on consolidated
data
following
the
merger
of
UBS AG
and
Credit
Suisse AG.
The
year-to-date
information
for
2024
in
the
income
statement, the statement
of comprehensive income, the
statement of changes
in equity and the statement
of cash
flows
includes
four
months
of
consolidated
data
following
the
merger
of
UBS AG
and
Credit
Suisse AG
(June
through
September 2024)
and
five
months of
pre-merger
UBS AG
data only
(January
through
May 2024).
The
balance sheet information as of 30 September 2025, 30 June 2025 and
31 December 2024 includes post-merger
consolidated information.
Note 3
Segment reporting
UBS AG’s
business
divisions
are
organized
globally
into
five
business
divisions:
Global
Wealth
Management,
Personal &
Corporate Banking,
Asset Management,
the Investment
Bank, and
Non-core and
Legacy. All
five business
divisions are supported by Group Items and qualify as reportable segments for
the purpose of segment reporting.
Together with Group Items they reflect the management
structure of UBS AG.
›
Refer to the “Consolidated financial statements” section of the UBS AG Annual Report 2024 for more information
about UBS AG’s reporting segments
Segment reporting
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group
Items
UBS AG
For the nine months ended 30 September 2025
Net interest income
4,831
3,369
(54)
(2,280)
(213)
(1,132)
4,520
Non-interest income
14,030
2,790
2,409
11,304
103
1,088
31,724
Total revenues
18,861
6,158
2,354
9,024
(110)
(44)
36,244
Credit loss expense / (release)
13
249
0
111
15
(1)
388
Operating expenses
15,383
4,625
1,848
7,192
2,225
875
32,148
Operating profit / (loss) before tax
3,465
1,284
506
1,721
(2,351)
(917)
3,708
Tax expense / (benefit)
181
Net profit / (loss)
3,527
As of 30 September 2025
Total assets
579,027
480,689
25,932
497,954
32,725
17,550
1,633,877
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group
Items
UBS AG
For the nine months ended 30 September 2024
Net interest income
4,183
2,868
(38)
(2,667)
(17)
(1,243)
3,088
Non-interest income
11,982
2,259
2,069
9,944
427
1,237
27,918
Total revenues
16,166
5,127
2,031
7,277
411
(6)
31,006
Credit loss expense / (release)
10
203
0
35
53
1
303
Operating expenses
13,579
3,257
1,691
6,523
2,542
737
28,329
Operating profit / (loss) before tax
2,577
1,667
340
718
(2,184)
(744)
2,374
Tax expense / (benefit)
587
Net profit / (loss)
1,787
As of 31 December 2024
Total assets
560,194
449,224
22,291
453,078
67,696
15,577
1,568,060
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
40
Note 4
Net interest income
Net interest income
For the quarter ended
Year-to-date
USD m
30.9.25
30.6.25
30.9.24
30.9.25
30.9.24
Interest income from loans and deposits
1
5,465
5,852
7,620
17,084
19,128
Interest income from securities financing transactions measured
at amortized cost
2
850
915
898
2,604
2,894
Interest income from other financial instruments measured
at amortized cost
428
406
346
1,194
989
Interest income from debt instruments measured at fair
value through other comprehensive income
94
44
26
164
80
Interest income from derivative instruments designated as cash
flow hedges
(308)
(322)
(556)
(981)
(1,625)
Total interest income from financial instruments measured at amortized cost and fair
value through other comprehensive income
6,528
6,895
8,335
20,066
21,467
Interest expense on loans and deposits
3
3,444
3,612
4,881
10,769
12,465
Interest expense on securities financing transactions measured
at amortized cost
4
564
554
569
1,536
1,476
Interest expense on debt issued and funding from UBS Group
AG measured at amortized cost
5
2,527
2,603
3,328
7,874
7,919
Interest expense on lease liabilities
31
37
41
103
93
Total interest expense from financial instruments measured at amortized cost
6,567
6,805
8,820
20,281
21,952
Total net interest income from financial instruments measured at amortized cost and fair
value through other comprehensive
income
(39)
89
(485)
(215)
(486)
Net interest income from financial instruments measured at fair value through profit
or loss and other
1,647
1,495
2,045
4,736
3,573
Total net interest income
1,608
1,584
1,560
4,520
3,088
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.
5 Includes interest expense on
funding from UBS Group AG
measured at amortized cost, previously
presented in Interest expense on
loans and deposits.
Comparative period
information has been
revised, which resulted
in a USD
1.8bn reclassification from
Interest expense on
loans and
deposits to Interest
expense on debt
issued and funding
from UBS Group
AG
measured at amortized cost for the third quarter of 2024, and USD 4.5bn for the nine months ended 30 September 2024.
Note 5
Net fee and commission income
Net fee and commission income
For the quarter ended
Year-to-date
USD m
30.9.25
30.6.25
30.9.24
30.9.25
30.9.24
Underwriting fees
296
252
174
767
632
M&A and corporate finance fees
343
225
243
813
739
Brokerage fees
1,364
1,261
1,122
4,001
3,237
Investment fund fees
1,740
1,600
1,552
4,883
4,111
Portfolio management and related services
3,301
3,163
3,111
9,565
8,245
Other
727
677
785
2,201
1,819
Total fee and commission income
1
7,771
7,179
6,986
22,230
18,783
of which: recurring
4,965
4,760
4,693
14,332
12,437
of which: transaction-based
2,719
2,380
2,249
7,738
6,253
of which: performance-based
87
39
44
160
93
Fee and commission expense
674
653
652
1,977
1,699
of which: brokerage expense
71
72
80
240
237
Net fee and commission income
7,097
6,526
6,334
20,253
17,084
1 Reflects third-party fee and commission income for the
third quarter of 2025 of USD 4,531m for Global Wealth Management
(second quarter of 2025: USD 4,323m; third quarter of 2024: USD 4,148m), USD
781m
for Personal & Corporate Banking (second
quarter of 2025: USD 768m; third quarter
of 2024: USD 761m), USD 1,092m for
Asset Management (second quarter of
2025: USD 984m; third quarter of
2024: USD 926m),
USD 1,344m for the Investment Bank
(second quarter of 2025: USD 1,100m;
third quarter of 2024:
USD 1,041m), USD 1m for Non-core and
Legacy (second quarter of 2025:
USD 1m; third quarter of 2024:
USD 97m)
and USD 22m for Group Items (second quarter of 2025: USD 3m; third quarter of 2024: USD 13m).
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
41
Note 6
Other income
Other income
For the quarter ended
Year-to-date
USD m
30.9.25
30.6.25
30.9.24
30.9.25
30.9.24
Associates, joint ventures and subsidiaries
Net gains / (losses) from acquisitions and disposals of
subsidiaries
1
131
2
4
(2)
122
2,3
(4)
Net gains / (losses) from disposals of investments in associates
and joint ventures
0
0
116
3
116
Share of net profit / (loss) of associates and joint ventures
(60)
21
67
97
4
107
Total
72
25
182
222
219
Income from properties
5
9
8
13
19
24
Net gains / (losses) from properties held for sale
15
(35)
(16)
(13)
(17)
Income from shared services provided to UBS Group AG or its subsidiaries
158
154
169
479
552
Other
(11)
6
(1)
163
7
(34)
6
247
7
Total other income
243
150
510
675
1,025
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
128m from the
sale of a
stake in
a
subsidiary, Credit Suisse Securities (China) Limited.
3 Includes a loss of USD 11m recognized upon completion of the sale of the US mortgage servicing business of Credit Suisse, Select Portfolio Servicing, which was
managed in Non-core and Legacy. Refer to “Note 29 Changes in organization and acquisitions and disposals of subsidiaries and businesses” in the “Consolidated financial statements” section of the UBS AG Annual
Report 2024 for
more information.
4 Includes a
gain of USD 64m
related to UBS
AG’s share
of the income
recorded by Swisscard
for the sale
of the Credit
Suisse card portfolios
to UBS AG.
Refer to “Note
29
Changes in organization and acquisitions and disposals of subsidiaries and businesses” in the “Consolidated financial stateme
nts” section of the UBS AG Annual Report 2024 for more information.
5 Includes rent
received from third parties.
6 Includes a USD 33m
gain from the sale of UBS AG’s
wealth management business in India.
7 Includes an USD 84m gain
in Asset Management from the sale of
UBS AG’s Brazilian
real estate fund management business (nine-month period ended 30 September 2024: USD 113m).
Note 7
Personnel expenses
Personnel expenses
For the quarter ended
Year-to-date
USD m
30.9.25
30.6.25
30.9.24
30.9.25
30.9.24
Salaries and variable compensation
1
4,901
4,882
4,999
14,912
12,824
of which: variable compensation – financial advisors
2
1,419
1,335
1,335
4,163
3,893
Contractors
36
41
33
113
78
Social security
318
300
315
927
774
Post-employment benefit plans
350
220
242
828
587
Other personnel expenses
192
207
200
575
482
Total personnel expenses
5,797
5,649
5,788
17,356
14,746
1 Includes role-based
allowances.
2 Financial advisor
compensation consists of
cash compensation, determined
using a formulaic
approach based on
production, and deferred
awards. It
also includes expenses
related to compensation commitments with financial advisors entered into at the time of recruitment that are subject to vesting requirements.
Note 8
General and administrative expenses
General and administrative expenses
For the quarter ended
Year-to-date
USD m
30.9.25
30.6.25
30.9.24
30.9.25
30.9.24
Outsourcing costs
192
187
255
576
567
Technology costs
229
244
257
728
625
Consulting, legal and audit fees
312
283
315
852
756
Real estate and logistics costs
180
235
267
618
587
Market data services
146
150
177
448
409
Marketing and communication
80
88
90
244
226
Travel and entertainment
73
78
60
217
186
Litigation, regulatory and similar matters
1
41
163
(47)
400
1,121
Other
3,050
2,799
2,640
8,524
2
7,106
of which: shared services costs charged by UBS Group AG or its subsidiaries
2,670
2,538
2,330
7,439
6,360
Total general and administrative expenses
4,303
4,228
4,014
12,608
11,584
1 Reflects the net increase / (decrease) in provisions for litigation, regulatory and similar matters recognized in the income statement, as well as litigation expenses relating to matters where UBS AG or its subsidiaries
do not hold the provision but
have agreed to bear all or
a portion of the expense.
2 Includes a USD 180m expense related
to the payment to Swisscard
for the sale of the Credit
Suisse card portfolios to UBS AG.
Refer to “Note 29 Changes in organization and acquisitions and disposals of subsidiaries and businesses” in the “Consolidated financial statements” section of the UBS AG Annual Report 2024 for more information.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
42
Note 9
Expected credit loss measurement
a) Credit loss expense / release
Total net credit loss
expenses in the third
quarter of 2025 were
USD 113m, reflecting USD 8m
net expenses related
to performing positions and USD 105m net
expenses on credit-impaired positions.
Net expected
credit loss
expenses on
the performing
portfolio were
primarily driven
by net
expenses in
the corporate
lending portfolios of Personal
& Corporate Banking and
the Investment Bank.
These expenses were partly
offset by
releases in the
real estate portfolios.
UBS has updated
several expected credit
loss models within
the real estate
and
corporate lending portfolios to enhance risk
differentiation and incorporate the latest
default history.
Credit loss
expenses of
USD 105m for
credit-impaired positions primarily
related to
a small
number of
corporate
counterparties in Personal & Corporate Banking
and the Investment Bank.
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Total
For the quarter ended 30.9.25
Global Wealth Management
(4)
11
7
Personal & Corporate Banking
2
76
78
Asset Management
0
0
0
Investment Bank
9
12
21
Non-core and Legacy
0
5
6
Group Items
0
0
0
Total
8
105
113
For the quarter ended 30.6.25
Global Wealth Management
(3)
1
(2)
Personal & Corporate Banking
22
92
114
Asset Management
0
0
0
Investment Bank
19
22
41
Non-core and Legacy
0
(1)
(1)
Group Items
0
0
0
Total
38
114
152
For the quarter ended 30.9.24
Global Wealth Management
(11)
14
3
Personal & Corporate Banking
(10)
94
84
Asset Management
0
0
0
Investment Bank
9
(4)
4
Non-core and Legacy
(2)
77
76
Group Items
0
0
0
Total
(15)
182
167
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
43
Note 9
Expected credit loss measurement (continued)
b) Changes to ECL models, scenarios and
scenario weights
Scenarios and scenario weights
The expected
credit loss
(ECL) scenarios,
along with
their related
macroeconomic factors and
market data,
were
reviewed in light of
the economic and political conditions prevailing
in the third quarter
of 2025 through a
series
of
governance
meetings,
with
input
and
feedback
from
UBS AG
Risk
and
Finance
experts
across
the
business
divisions and regions.
The
baseline
scenario
was
updated
with
the
latest
macroeconomic
forecasts
as
of
30 September
2025.
The
assumptions on a calendar-year basis are included in
the table below. The scenario assumes growth in Switzerland
will remain muted in 2025 and slow in the second half
of the year, reflecting a subdued outlook due to tariffs
and
the appreciation of the
Swiss franc in
the second quarter of
- For the
US, the outlook
has improved slightly,
but the
scenario still assumes
a slowdown
in the
second half of
2025, reflecting a
cooling labor
market and the
impact
of
tariffs
on
domestic
demand.
Expectations for
long-term
interest
rates
in
the
US
and
Switzerland
are
slightly lower than in the previous quarter.
At the beginning
of the first
quarter of 2025,
UBS AG replaced
the stagflationary
geopolitical crisis
scenario applied
at the end
of 2024 with
the global crisis
scenario, as
the severe downside
scenario. It targets
risks such as
sovereign
defaults, low
interest rates,
a crisis
in the
Eurozone and
significant emerging-market
stress. The
moderate stagflation
crisis scenario
replaced the
mild debt
crisis scenario
as the
mild downside
scenario. In
the moderate
stagflation crisis
scenario, interest rates
are assumed to
rise rather than
decline, as in
the previously
applied mild debt
crisis scenario.
However, the declines in gross domestic product
and equities are similar.
UBS AG kept
the scenarios
and scenario
weights in
line with
those applied
in the
UBS AG second
quarter 2025
report. All of
the scenarios, including the
asset price appreciation and
the baseline scenarios, have
been updated
based on the latest macroeconomic forecasts as of 30 September 2025. The assumptions on a calendar-year basis
are included in the table below.
Comparison of shock factors
Baseline
Key parameters
2024
2025
2026
Real GDP growth (annual percentage change)
US
2.8
1.9
1.7
Eurozone
0.8
1.1
0.9
Switzerland
1.4
0.9
1.3
Unemployment rate (%, annual average)
US
4.0
4.3
4.7
Eurozone
6.4
6.4
6.6
Switzerland
2.4
2.9
3.2
Fixed income: 10-year government bonds (%, Q4)
USD
4.6
4.2
4.3
EUR
2.4
2.7
2.9
CHF
0.3
0.2
0.4
Real estate (annual percentage change, Q4)
US
3.8
0.5
1.7
Eurozone
4.2
3.8
3.9
Switzerland
0.9
3.0
2.5
Economic scenarios and weights applied
Assigned weights in %
ECL scenario
30.9.25
30.6.25
30.9.24
Asset price appreciation
5.0
5.0
–
Baseline
50.0
50.0
60.0
Mild debt crisis
–
–
15.0
Stagflationary geopolitical crisis
–
–
25.0
Moderate stagflation crisis
30.0
30.0
–
Global crisis
15.0
15.0
–
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
44
Note 9
Expected credit loss measurement (continued)
c) ECL-relevant balance sheet and off-balance
sheet positions including ECL allowances
and provisions
The following tables
provide information
about financial
instruments and
certain non-financial
instruments that
are
subject
to
ECL
requirements.
For
amortized-cost
instruments,
the
carrying
amount
represents
the
maximum
exposure to credit risk, taking
into account the allowance for
credit losses. Financial assets measured at
fair value
through other comprehensive
income (FVOCI) are
also subject to ECL;
however, unlike amortized-cost
instruments,
the allowance
for credit
losses for
FVOCI instruments
does not
reduce the
carrying amount
of these financial
assets.
Instead, the
carrying amount
of financial
assets measured
at FVOCI
represents the
maximum exposure
to credit
risk.
No
purchased
credit-impaired
financial
assets
were
recognized
in
the
third
quarter
of
2025.
Originated
credit-
impaired financial assets were not material
and are not presented in the table below.
In addition to recognized financial assets, certain off-balance sheet financial instruments and other credit lines are
also subject to ECL.
The maximum exposure to
credit risk for off-balance
sheet financial instruments is calculated
based on the maximum contractual amounts.
ECL-relevant balance sheet and off-balance sheet positions
USD m
30.9.25
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
218,738
218,507
231
0
(259)
0
(259)
0
Amounts due from banks
18,666
18,549
117
0
(12)
(5)
(5)
(2)
Receivables from securities financing transactions measured at amortized
cost
95,343
95,343
0
0
(2)
(2)
0
0
Cash collateral receivables on derivative instruments
43,538
43,538
0
0
0
0
0
0
Loans and advances to customers
653,269
627,287
21,508
4,473
(3,225)
(347)
(283)
(2,596)
of which: Private clients with mortgages
287,703
277,638
8,794
1,271
(126)
(39)
(24)
(63)
of which: Real estate financing
93,770
89,778
3,718
274
(75)
(24)
(35)
(15)
of which: Large corporate clients
27,378
23,870
2,833
675
(970)
(110)
(98)
(762)
of which: SME clients
24,129
20,863
2,092
1,174
(1,262)
(81)
(82)
(1,099)
of which: Lombard
162,836
162,542
185
108
(123)
(9)
0
(114)
of which: Credit cards
2,326
1,784
497
45
(47)
(7)
(12)
(29)
of which: Commodity trade finance
3,894
3,183
716
(5)
(140)
(9)
(1)
(131)
of which: Ship / aircraft financing
8,562
7,212
1,232
119
(19)
(14)
(5)
0
of which: Consumer financing
2,953
2,701
133
119
(148)
(22)
(23)
(102)
Other financial assets measured at amortized cost
72,904
72,119
598
186
(119)
(24)
(9)
(86)
of which: Loans to financial advisors
2,712
2,509
105
99
(34)
(4)
(1)
(29)
Total financial assets measured at amortized cost
1,102,458
1,075,343
22,455
4,659
(3,617)
(378)
(556)
(2,684)
Financial assets measured at fair value through other comprehensive income
9,801
9,801
0
0
0
0
0
0
Total on-balance sheet financial assets in scope of ECL requirements
1,112,259
1,085,145
22,455
4,659
(3,617)
(378)
(556)
(2,684)
Total exposure
ECL provisions
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Guarantees
44,990
43,194
1,583
212
(69)
(16)
(22)
(31)
of which: Large corporate clients
7,486
6,366
1,031
89
(21)
(7)
(6)
(8)
of which: SME clients
3,062
2,730
251
82
(38)
(5)
(15)
(18)
of which: Financial intermediaries and hedge funds
27,000
26,833
167
0
(1)
(1)
0
0
of which: Lombard
3,891
3,857
1
32
(3)
0
0
(2)
of which: Commodity trade finance
2,126
2,027
99
0
(1)
(1)
0
0
Irrevocable loan commitments
79,592
74,709
4,593
290
(262)
(123)
(93)
(46)
of which: Large corporate clients
48,848
44,679
3,984
185
(206)
(95)
(82)
(30)
Forward starting reverse repurchase and securities borrowing agreements
18,463
18,463
0
0
0
0
0
0
Unconditionally revocable loan commitments
139,745
136,071
3,451
224
(68)
(52)
(16)
0
of which: Real estate financing
8,164
7,866
297
1
(3)
(5)
2
0
of which: Large corporate clients
13,349
11,922
1,419
8
(18)
(9)
(7)
(2)
of which: SME clients
12,208
11,350
691
166
(31)
(23)
(8)
0
of which: Lombard
68,793
68,710
70
12
0
0
0
0
of which: Credit cards
11,758
11,214
541
3
(10)
(8)
(2)
0
Irrevocable committed prolongation of existing loans
6,143
6,135
5
3
(4)
(3)
0
0
Total off-balance sheet financial instruments and other credit lines
288,933
278,572
9,632
729
(403)
(195)
(132)
(77)
Total allowances and provisions
(4,020)
(572)
(687)
(2,761)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective
ECL allowances.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
45
Note 9
Expected credit loss measurement (continued)
ECL-relevant balance sheet and off-balance sheet positions
USD m
30.6.25
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
236,193
236,007
186
0
(263)
0
(263)
0
Amounts due from banks
20,688
20,587
102
0
(12)
(5)
(5)
(2)
Receivables from securities financing transactions measured at amortized
cost
110,161
110,161
0
0
(3)
(3)
0
0
Cash collateral receivables on derivative instruments
45,478
45,478
0
0
0
0
0
0
Loans and advances to customers
653,195
623,137
25,571
4,486
(3,187)
(343)
(311)
(2,533)
of which: Private clients with mortgages
286,744
273,655
11,641
1,448
(147)
(43)
(49)
(55)
of which: Real estate financing
94,056
88,123
5,611
322
(117)
(25)
(36)
(56)
of which: Large corporate clients
26,866
23,058
3,118
690
(866)
(116)
(97)
(653)
of which: SME clients
25,000
21,161
2,498
1,341
(1,225)
(74)
(85)
(1,065)
of which: Lombard
161,199
160,942
147
110
(141)
(11)
0
(130)
of which: Credit cards
2,315
1,791
479
45
(48)
(7)
(12)
(29)
of which: Commodity trade finance
4,263
4,236
25
1
(134)
(8)
0
(126)
of which: Ship / aircraft financing
8,859
8,054
727
78
(20)
(15)
(5)
0
of which: Consumer financing
2,894
2,707
131
55
(149)
(19)
(23)
(108)
Other financial assets measured at amortized cost
72,546
71,751
620
176
(129)
(25)
(11)
(93)
of which: Loans to financial advisors
2,682
2,495
97
90
(39)
(3)
(1)
(35)
Total financial assets measured at amortized cost
1,138,262
1,107,120
26,479
4,662
(3,595)
(378)
(590)
(2,627)
Financial assets measured at fair value through other comprehensive income
6,872
6,872
0
0
0
0
0
0
Total on-balance sheet financial assets in scope of ECL requirements
1,145,133
1,113,992
26,479
4,662
(3,595)
(378)
(590)
(2,627)
Total exposure
ECL provisions
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Guarantees
44,446
43,444
819
184
(93)
(14)
(21)
(58)
of which: Large corporate clients
7,728
7,154
480
93
(54)
(6)
(5)
(42)
of which: SME clients
3,280
3,007
219
55
(31)
(5)
(15)
(11)
of which: Financial intermediaries and hedge funds
26,604
26,516
87
0
(1)
(1)
0
0
of which: Lombard
3,958
3,933
1
24
(3)
0
0
(2)
of which: Commodity trade finance
1,874
1,873
1
0
(1)
(1)
0
0
Irrevocable loan commitments
82,046
77,132
4,688
226
(259)
(139)
(83)
(37)
of which: Large corporate clients
49,093
44,806
4,094
193
(195)
(101)
(74)
(20)
Forward starting reverse repurchase and securities borrowing agreements
20,143
20,143
0
0
0
0
0
0
Unconditionally revocable loan commitments
153,998
151,188
2,582
227
(62)
(47)
(15)
0
of which: Real estate financing
8,237
7,929
309
0
(3)
(4)
1
0
of which: Large corporate clients
14,601
13,752
817
32
(15)
(8)
(5)
(2)
of which: SME clients
12,030
11,420
454
156
(26)
(20)
(6)
0
of which: Lombard
75,099
75,013
74
12
0
0
0
0
of which: Credit cards
11,566
11,045
518
3
(9)
(7)
(2)
0
Irrevocable committed prolongation of existing loans
5,201
5,182
19
0
(2)
(2)
0
0
Total off-balance sheet financial instruments and other credit lines
305,834
297,089
8,108
637
(415)
(202)
(118)
(95)
Total allowances and provisions
(4,010)
(580)
(708)
(2,722)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective
ECL allowances.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
46
Note 9
Expected credit loss measurement (continued)
ECL-relevant balance sheet and off-balance sheet positions
USD m
31.12.24
Carrying amount
1
ECL allowances
Financial instruments measured at amortized cost
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Cash and balances at central banks
223,329
223,201
128
0
(186)
0
(186)
0
Amounts due from banks
18,111
17,912
198
0
(42)
(1)
(5)
(36)
Receivables from securities financing transactions measured at amortized
cost
118,302
118,302
0
0
(2)
(2)
0
0
Cash collateral receivables on derivative instruments
43,959
43,959
0
0
0
0
0
0
Loans and advances to customers
587,347
560,531
22,309
4,506
(2,830)
(276)
(323)
(2,230)
of which: Private clients with mortgages
251,955
241,690
9,009
1,256
(166)
(46)
(70)
(50)
of which: Real estate financing
83,780
79,480
4,071
229
(100)
(24)
(27)
(49)
of which: Large corporate clients
25,599
21,073
3,493
1,033
(828)
(72)
(123)
(632)
of which: SME clients
21,002
17,576
2,293
1,133
(963)
(55)
(47)
(860)
of which: Lombard
147,714
147,326
266
122
(107)
(6)
0
(101)
of which: Credit cards
1,978
1,533
406
39
(41)
(6)
(11)
(25)
of which: Commodity trade finance
4,204
4,089
106
9
(122)
(9)
0
(113)
of which: Ship / aircraft financing
8,058
7,136
922
0
(31)
(14)
(16)
0
of which: Consumer financing
2,814
2,468
114
232
(137)
(15)
(19)
(102)
Other financial assets measured at amortized cost
59,279
58,645
439
194
(135)
(25)
(7)
(103)
of which: Loans to financial advisors
2,723
2,568
59
95
(41)
(4)
(1)
(37)
Total financial assets measured at amortized cost
1,050,326
1,022,550
23,074
4,701
(3,195)
(304)
(521)
(2,369)
Financial assets measured at fair value through other comprehensive income
2,195
2,195
0
0
0
0
0
0
Total on-balance sheet financial assets in scope of ECL requirements
1,052,521
1,024,746
23,074
4,701
(3,195)
(304)
(521)
(2,369)
Total exposure
ECL provisions
Off-balance sheet (in scope of ECL)
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Guarantees
40,280
38,860
1,242
178
(61)
(16)
(24)
(22)
of which: Large corporate clients
7,818
7,098
635
85
(18)
(6)
(9)
(2)
of which: SME clients
2,524
2,074
393
57
(27)
(5)
(15)
(7)
of which: Financial intermediaries and hedge funds
21,590
21,449
141
0
(1)
(1)
0
0
of which: Lombard
3,709
3,652
24
33
(4)
(1)
0
(3)
of which: Commodity trade finance
2,678
2,676
2
0
(1)
(1)
0
0
Irrevocable loan commitments
79,579
75,158
4,178
243
(192)
(105)
(61)
(26)
of which: Large corporate clients
47,381
43,820
3,393
168
(155)
(91)
(54)
(10)
Forward starting reverse repurchase and securities borrowing agreements
24,896
24,896
0
0
0
0
0
0
Unconditionally revocable loan commitments
148,900
146,496
2,149
255
(75)
(59)
(17)
0
of which: Real estate financing
7,674
7,329
345
0
(6)
(4)
(2)
0
of which: Large corporate clients
14,692
14,091
584
17
(22)
(14)
(7)
(2)
of which: SME clients
9,812
9,289
333
190
(34)
(28)
(6)
0
of which: Lombard
73,267
73,181
84
1
0
0
0
0
of which: Credit cards
10,074
9,604
467
3
(8)
(6)
(2)
0
Irrevocable committed prolongation of existing loans
4,608
4,602
4
2
(3)
(3)
0
0
Total off-balance sheet financial instruments and other credit lines
298,263
290,012
7,572
678
(332)
(183)
(102)
(48)
Total allowances and provisions
(3,527)
(487)
(623)
(2,417)
1 The carrying amount of financial assets measured at amortized cost represents the total gross exposure net of the respective
ECL allowances.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
47
Note 9
Expected credit loss measurement (continued)
The
table
below
provides
information
about
the
gross
carrying
amount
of
exposures
subject
to
ECL
and
the
ECL
coverage ratio
for UBS AG’s
core loan
portfolios (i.e.
Loans and
advances to
customers
and
Loans to
financial advisors
)
and relevant off-balance sheet exposures.
Cash and balances at central banks
,
Amounts due from banks
,
Receivables
from
securities
financing
transactions
,
Cash
collateral
receivables
on
derivative
instruments
and
Financial
assets
measured at
fair value through
other comprehensive
income
are not included
in the table below,
due to their lower
sensitivity
to ECL.
ECL coverage ratios are calculated by dividing ECL
allowances and provisions by the gross carrying amount of the
related exposures.
The overall
coverage ratio for
performing positions was
unchanged at 10
basis points as
of 30 September 2025.
Compared with
30 June 2025,
the coverage
ratio for
performing positions
related to
real estate
lending (on-balance
sheet)
decreased
by
1 basis
point
to
3 basis
points,
and
the
coverage
ratio
for
performing
positions
related
to
corporate lending (on-balance sheet) was unchanged
at 74 basis points.
Coverage ratios for core loan portfolio
30.9.25
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stages 1&2
Stage 3
Private clients with mortgages
287,828
277,677
8,817
1,334
4
1
27
2
473
Real estate financing
93,844
89,802
3,753
290
8
3
93
6
534
Total real estate lending
381,673
367,479
12,570
1,624
5
2
47
3
484
Large corporate clients
28,348
23,980
2,931
1,437
342
46
334
77
5,304
SME clients
25,391
20,944
2,174
2,272
497
39
376
71
4,834
Total corporate lending
53,738
44,925
5,104
3,709
415
43
352
74
5,016
Lombard
162,959
162,552
185
221
8
1
0
1
5,127
Credit cards
2,373
1,791
509
74
199
38
234
81
3,881
Commodity trade finance
4,034
3,191
716
126
347
27
7
23
0
Ship / aircraft financing
8,582
7,226
1,237
119
23
20
40
23
0
Consumer financing
3,101
2,723
157
222
477
81
1,482
157
4,627
Other loans and advances to customers
40,034
37,747
1,312
975
79
8
30
9
2,883
Loans to financial advisors
2,747
2,512
106
128
124
14
120
19
2,280
Total other lending
223,829
217,743
4,222
1,864
37
4
108
6
3,679
Total
1
659,240
630,146
21,897
7,197
49
6
130
10
3,648
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stages 1&2
Stage 3
Private clients with mortgages
11,414
11,183
229
2
3
3
24
3
0
Real estate financing
9,935
9,602
315
18
6
9
0
6
53
Total real estate lending
21,349
20,785
544
21
4
6
0
4
47
Large corporate clients
69,733
63,017
6,433
283
35
18
146
30
1,414
SME clients
17,056
15,701
1,022
334
55
24
291
40
817
Total corporate lending
86,789
78,718
7,455
616
39
19
166
32
1,091
Lombard
76,371
76,256
72
44
2
1
0
1
1,879
Credit cards
11,758
11,214
541
3
8
7
36
8
0
Commodity trade finance
2,195
2,093
101
0
6
5
21
6
0
Ship / aircraft financing
2,024
2,001
23
0
0
0
0
0
0
Consumer financing
258
258
0
0
3
3
0
3
0
Financial intermediaries and hedge funds
30,481
29,909
572
0
1
1
8
1
0
Other off-balance sheet commitments
39,245
38,876
325
44
7
5
235
6
321
Total other lending
162,332
160,607
1,634
92
3
2
63
3
1,056
Total
2
270,470
260,109
9,632
729
15
7
137
12
1,057
Total on- and off-balance sheet
3
929,711
890,255
31,530
7,926
39
6
132
10
3,409
1 Includes Loans and advances to customers
and Loans to financial advisors,
which are presented on the balance sheet
line Other financial assets measured at
amortized cost.
2 Excludes Forward starting
reverse
repurchase and securities borrowing agreements.
3 Includes on-balance sheet exposure, gross and off-balance sheet exposure (notional) and the related
ECL coverage ratio (bps).
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
48
Note 9
Expected credit loss measurement (continued)
Coverage ratios for core loan portfolio
30.6.25
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stages 1&2
Stage 3
Private clients with mortgages
286,891
273,698
11,691
1,503
5
2
42
3
365
Real estate financing
94,173
88,149
5,647
378
12
3
63
7
1,475
Total real estate lending
381,064
361,847
17,337
1,880
7
2
49
4
588
Large corporate clients
27,732
23,174
3,215
1,343
312
50
300
81
4,863
SME clients
26,225
21,234
2,584
2,407
467
35
331
67
4,427
Total corporate lending
53,957
44,409
5,799
3,750
388
43
314
74
4,584
Lombard
161,340
160,953
147
240
9
1
0
1
5,407
Credit cards
2,363
1,798
491
74
201
36
250
82
3,898
Commodity trade finance
4,394
4,244
25
124
305
19
0
19
0
Ship / aircraft financing
8,879
8,068
732
78
22
18
70
22
0
Consumer financing
3,043
2,727
154
163
490
70
1,466
145
6,610
Other loans and advances to customers
41,342
39,434
1,197
711
82
6
32
7
4,395
Loans to financial advisors
2,721
2,498
99
125
145
13
140
18
2,777
Total other lending
224,082
219,723
2,845
1,514
39
4
159
6
4,878
Total
1
659,104
625,978
25,981
7,144
49
6
120
10
3,594
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stages 1&2
Stage 3
Private clients with mortgages
11,178
10,950
222
6
4
3
25
4
0
Real estate financing
9,734
9,401
333
0
8
9
0
8
0
Total real estate lending
20,912
20,351
555
6
6
6
0
6
0
Large corporate clients
71,511
65,801
5,392
318
37
17
156
28
2,012
SME clients
17,371
16,346
780
244
49
22
358
37
915
Total corporate lending
88,882
82,148
6,172
562
39
18
182
30
1,536
Lombard
82,536
82,424
75
36
2
1
0
1
2,337
Credit cards
11,566
11,045
518
3
8
6
36
8
0
Commodity trade finance
2,230
2,223
6
1
3
3
46
3
0
Ship / aircraft financing
2,430
2,390
41
0
0
0
0
0
0
Consumer financing
327
327
0
0
2
2
0
2
0
Financial intermediaries and hedge funds
31,513
30,974
539
0
2
1
7
2
0
Other off-balance sheet commitments
45,295
45,064
203
29
6
5
207
6
199
Total other lending
175,897
174,448
1,381
68
3
2
47
3
1,312
Total
2
285,692
276,947
8,108
637
15
7
146
11
1,497
Total on- and off-balance sheet
3
944,795
902,925
34,089
7,781
39
6
126
10
3,423
1 Includes Loans and advances
to customers and Loans to financial
advisors, which are presented
on the balance sheet line Other
financial assets measured at amortized
cost.
2 Excludes Forward starting
reverse
repurchase and securities borrowing agreements.
3 Includes on-balance sheet exposure, gross and off-balance sheet exposure (notional) and the related
ECL coverage ratio (bps).
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
49
Note 9
Expected credit loss measurement (continued)
Coverage ratios for core loan portfolio
31.12.24
Gross carrying amount (USD m)
ECL coverage (bps)
On-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stages 1&2
Stage 3
Private clients with mortgages
252,121
241,736
9,079
1,306
7
2
77
5
386
Real estate financing
83,880
79,504
4,098
278
12
3
66
6
1,768
Total real estate lending
336,001
321,240
13,177
1,584
8
2
73
5
628
Large corporate clients
26,427
21,145
3,617
1,665
313
34
341
79
3,795
SME clients
21,966
17,631
2,341
1,993
439
31
203
52
4,316
Total corporate lending
48,393
38,776
5,958
3,659
370
33
287
67
4,079
Lombard
147,821
147,332
267
222
7
0
8
0
4,531
Credit cards
2,019
1,539
416
64
205
39
256
85
3,857
Commodity trade finance
4,327
4,098
106
122
283
22
40
23
9,258
Ship / aircraft financing
8,089
7,150
938
0
38
20
175
38
0
Consumer financing
2,951
2,484
134
334
464
62
1,447
133
3,057
Other loans and advances to customers
40,576
38,188
1,636
752
83
7
56
9
3,965
Loans to financial advisors
2,764
2,571
60
132
149
14
159
17
2,785
Total other lending
208,547
203,363
3,558
1,627
39
4
161
7
4,152
Total
1
592,941
563,379
22,693
6,869
48
5
143
10
3,301
Gross exposure (USD m)
ECL coverage (bps)
Off-balance sheet
Total
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stages 1&2
Stage 3
Private clients with mortgages
8,473
8,271
176
26
4
4
22
4
81
Real estate financing
8,694
8,300
394
0
7
6
33
7
0
Total real estate lending
17,167
16,571
570
26
6
5
30
6
81
Large corporate clients
69,896
65,013
4,612
271
28
17
151
26
528
SME clients
13,944
12,788
842
315
59
30
324
48
532
Total corporate lending
83,840
77,800
5,454
586
33
19
177
30
530
Lombard
80,390
80,235
120
35
1
0
1
0
2,330
Credit cards
10,074
9,604
467
3
8
6
36
8
0
Commodity trade finance
3,487
3,464
23
0
3
3
51
3
0
Ship / aircraft financing
2,669
2,663
6
0
13
13
49
13
0
Consumer financing
134
134
0
0
6
6
0
6
0
Financial intermediaries and hedge funds
22,842
22,378
464
0
1
1
8
1
0
Other off-balance sheet commitments
52,765
52,268
468
29
4
2
28
2
2,945
Total other lending
172,360
170,745
1,549
67
3
1
23
2
2,470
Total
2
273,367
265,117
7,572
678
12
7
135
10
704
Total on- and off-balance sheet
3
866,308
828,495
30,265
7,547
37
6
141
10
3,067
1 Includes Loans and advances
to customers and Loans to financial
advisors, which are presented
on the balance sheet line Other
financial assets measured at amortized
cost.
2 Excludes Forward starting
reverse
repurchase and securities borrowing agreements.
3 Includes on-balance-sheet exposure, gross and off-balance-sheet exposure (notional) and the related
ECL coverage ratio (bps).
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
50
Note 10
Fair value measurement
a) Fair value hierarchy
The fair
value hierarchy
classification of
financial and
non-financial assets
and liabilities
measured at
fair value
is
summarized in the table below.
During the
first nine 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
30.9.25
30.6.25
31.12.24
USD m
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial assets measured at fair value on a recurring
basis
Financial assets at fair value held for trading
143,521
31,810
3,500
178,831
134,759
31,274
3,454
169,487
128,428
27,687
3,108
159,223
of which: Equity instruments
126,424
910
157
127,491
117,036
370
155
117,562
116,536
430
91
117,056
of which: Government bills / bonds
8,178
4,401
112
12,692
8,997
3,715
139
12,851
4,443
3,261
41
7,746
of which: Investment fund units
8,499
1,278
147
9,923
7,554
874
96
8,525
6,537
987
151
7,675
of which: Corporate and municipal bonds
420
23,361
885
24,666
1,167
22,996
757
24,920
911
17,585
838
19,334
of which: Loans
0
1,658
2,070
3,728
0
3,145
2,172
5,317
0
5,200
1,799
6,998
of which: Asset-backed securities
0
202
128
330
4
168
134
306
1
219
153
373
Derivative financial instruments
1,522
150,222
2,968
154,712
1,315
166,156
3,151
170,622
795
182,849
2,792
186,435
of which: Foreign exchange
376
47,499
357
48,231
815
77,661
81
78,558
472
100,572
66
101,111
of which: Interest rate
0
35,417
1,055
36,472
0
37,667
884
38,550
0
41,193
878
42,071
of which: Equity / index
0
55,581
1,203
56,784
0
44,112
1,255
45,367
0
35,747
1,129
36,876
of which: Credit
0
3,549
348
3,897
0
2,310
928
3,238
0
2,555
581
3,136
of which: Commodities
3
8,053
4
8,060
2
4,267
2
4,272
1
2,599
17
2,617
Brokerage receivables
0
30,633
0
30,633
0
29,068
0
29,068
0
25,858
0
25,858
Financial assets at fair value not held for trading
43,739
51,705
10,122
105,566
44,849
53,393
9,261
107,503
35,910
50,545
8,747
95,203
of which: Financial assets for unit-linked
investment contracts
20,003
4
1
20,008
19,424
112
1
19,537
17,101
6
0
17,106
of which: Corporate and municipal bonds
30
18,052
95
18,178
31
19,182
91
19,303
31
14,695
133
14,859
of which: Government bills / bonds
23,152
6,761
0
29,913
24,842
6,093
0
30,935
18,264
6,204
0
24,469
of which: Loans
0
5,804
4,524
10,327
0
5,626
3,734
9,360
0
4,427
3,192
7,619
of which: Securities financing transactions
0
19,749
755
20,504
0
21,208
703
21,911
0
24,026
611
24,638
of which: Asset-backed securities
0
1,080
548
1,628
0
864
534
1,399
0
972
597
1,569
of which: Auction rate securities
0
0
191
191
0
0
191
191
0
0
191
191
of which: Investment fund units
457
94
629
1,180
433
137
626
1,196
423
133
681
1,237
of which: Equity instruments
96
2
3,112
3,210
119
0
3,064
3,183
91
0
2,916
3,008
Financial assets measured at fair value through other
comprehensive income on a recurring basis
Financial assets measured at fair value through
other comprehensive income
7,662
2,139
0
9,801
4,716
2,156
0
6,872
59
2,137
0
2,195
of which: Government bills / bonds
7,587
0
0
7,587
4,644
0
0
4,644
0
0
0
0
of which: Commercial paper and certificates of
deposit
0
1,960
0
1,960
0
1,926
0
1,926
0
1,959
0
1,959
of which: Corporate and municipal bonds
76
179
0
255
71
231
0
302
59
178
0
237
Non-financial assets measured at fair value on a recurring
basis
Precious metals and other physical commodities
10,928
0
0
10,928
9,465
0
0
9,465
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
63
63
0
0
76
76
0
0
84
84
Total assets measured at fair value
207,371
266,509
16,654
490,534
195,104
282,047
15,942
493,093
172,532
289,076
14,731
476,340
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
51
Note 10
Fair value measurement (continued)
Determination of fair values from quoted market prices or valuation techniques (continued)
1
30.9.25
30.6.25
31.12.24
USD m
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial liabilities measured at fair value on a
recurring basis
Financial liabilities at fair value held for trading
39,359
14,209
228
53,796
38,240
14,057
50
52,346
24,577
10,429
240
35,247
of which: Equity instruments
31,397
241
46
31,684
30,081
215
26
30,322
18,528
257
29
18,814
of which: Corporate and municipal bonds
3
12,099
173
12,275
0
11,953
21
11,974
5
8,771
206
8,982
of which: Government bills / bonds
6,058
1,644
0
7,702
5,614
1,629
0
7,243
4,336
1,174
0
5,510
of which: Investment fund units
1,900
151
8
2,059
2,545
169
1
2,715
1,708
162
3
1,873
Derivative financial instruments
1,579
157,499
4,457
163,534
1,294
178,463
4,148
183,905
829
175,788
4,060
180,678
of which: Foreign exchange
391
50,706
42
51,139
736
88,058
56
88,850
506
94,077
46
94,628
of which: Interest rate
0
31,209
200
31,408
0
33,261
307
33,568
0
36,313
324
36,636
of which: Equity / index
0
64,897
3,873
68,770
0
50,340
3,469
53,810
0
39,597
3,142
42,739
of which: Credit
0
4,014
297
4,311
0
3,192
241
3,433
0
3,280
414
3,694
of which: Commodities
1
6,540
13
6,554
1
3,498
11
3,510
1
2,200
15
2,216
of which: Loan commitments measured at FVTPL
0
9
31
40
0
12
30
42
0
75
62
137
Financial liabilities designated at fair value on a recurring
basis
Brokerage payables designated at fair
value
0
62,067
0
62,067
0
57,951
0
57,951
0
49,023
0
49,023
Debt issued designated at fair value
0
95,174
10,682
105,857
0
96,878
11,374
108,252
0
90,725
11,842
102,567
Other financial liabilities designated at fair value
0
33,410
4,235
37,645
0
31,749
3,780
35,529
0
29,779
4,262
34,041
of which: Financial liabilities related to unit-linked
investment contracts
0
20,143
0
20,143
0
19,669
0
19,669
0
17,203
0
17,203
of which: Securities financing transactions
0
5,330
119
5,448
0
4,580
118
4,699
0
5,798
0
5,798
of which: Funding from UBS Group AG
0
5,470
1,669
7,139
0
4,639
1,480
6,119
0
3,848
1,494
5,342
of which: Over-the-counter debt instruments
and others
0
2,467
2,447
4,915
0
2,861
2,182
5,043
0
2,930
2,768
5,698
Total liabilities measured at fair value
40,937
362,359
19,602
422,899
39,535
379,098
19,352
437,984
25,406
355,744
20,405
401,555
1 Bifurcated embedded derivatives are presented on the same balance sheet
lines as their host contracts and are not included in
this table. The fair value of these derivatives was not material for the periods
presented.
2 Other non-financial assets primarily consist of properties and other non-current assets held for sale, which are measured at the
lower of their net carrying amount or fair value less costs to sell.
b) Valuation adjustments
The table below summarizes the changes
in deferred day-1 profit or loss reserves during the
relevant period.
Deferred day-1 profit or loss is generally released into
Other net income from financial instruments measured
at fair
value
through
profit
or
loss
when
the
pricing
of
equivalent
products
or
the
underlying
parameters
become
observable or when the transaction is closed out.
Deferred day-1 profit or loss reserves
For the quarter ended
Year-to-date
USD m
30.9.25
30.6.25
30.9.24
30.9.25
30.9.24
Reserve balance at the beginning of the period
417
391
388
421
397
Effect from merger of UBS AG and Credit Suisse AG
1
1
Profit / (loss) deferred on new transactions
94
68
85
227
187
(Profit) / loss recognized in the income statement
(72)
(41)
(54)
(207)
(164)
Foreign currency translation
(1)
(1)
(1)
(3)
(2)
Reserve balance at the end of the period
438
417
418
438
418
1 Refer to Note 2 for more information.
The table below summarizes other valuation
adjustment reserves recognized on the balance sheet.
Other valuation adjustment reserves on the balance sheet
As of
USD m
30.9.25
30.6.25
31.12.24
Own credit adjustments on financial liabilities designated at fair value
1
(1,661)
(1,100)
(1,165)
of which: debt issued designated at fair value
(966)
(774)
(780)
of which: other financial liabilities designated at fair value
(695)
(325)
(385)
Credit valuation adjustments
2
(31)
(40)
(125)
Funding and debit valuation adjustments
(78)
(87)
(96)
Other valuation adjustments
(809)
(966)
(1,206)
of which: liquidity
(548)
(586)
(746)
of which: model uncertainty
(261)
(380)
(460)
1 Own credit adjustments on financial liabilities designated at fair value includes amounts for TLAC notes.
2 Amount does not include reserves against defaulted counterparties.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
52
Note 10
Fair value measurement (continued)
c) Level 3 instruments: valuation techniques
and inputs
The
table
below
presents material
Level 3
assets
and
liabilities,
together
with
the
valuation
techniques
used
to
measure fair value,
as well as
the inputs used
in a given
valuation technique that are
considered significant as of
30 September 2025
and unobservable, and a range of values
for those unobservable inputs.
The range of values
represents the highest- and
lowest-level inputs used in the valuation
techniques. Therefore, the
range does not reflect the level of uncertainty regarding a particular input or an assessment of the reasonableness of
UBS AG’s estimates
and assumptions,
but rather
the different
underlying characteristics
of the
relevant assets
and
liabilities
held by UBS
AG.
The significant unobservable
inputs disclosed in
the table below
are consistent with
those included in
“Note 21 Fair
value measurement” in the “Consolidated financial
statements” section of the UBS AG Annual
Report 2024.
Valuation techniques and inputs used in the fair value measurement of Level 3 assets and liabilities
Fair value
Significant unobservable
input(s)
1
Range of inputs
Assets
Liabilities
Valuation technique(s)
30.9.25
31.12.24
USD bn
30.9.25
31.12.24
30.9.25
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
0.2
0.2
Relative value to
market comparable
Bond price equivalent
12
103
84
23
114
98
points
Loans at fair value (held for
trading and not held for
trading) and guarantees
3
6.7
5.2
0.0
0.0
Relative value to
market comparable
Loan price equivalent
8
100
94
1
173
84
points
Discounted expected
cash flows
Credit spread
17
255
93
16
545
195
basis
points
Market comparable
and securitization
model
Credit spread
85
1,963
261
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
7
105
80
0
112
79
points
Investment fund units
4
0.8
0.8
0.0
0.0
Relative value to
market comparable
Net asset value
Equity instruments
4
3.3
3.0
0.0
0.0
Relative value to
market comparable
Price
Debt issued designated at
fair value
3
10.7
11.8
Other financial liabilities
designated at fair value
3
4.2
4.3
Discounted expected
cash flows
Funding spread
95
166
95
201
basis
points
Derivative financial instruments
Interest rate
1.1
0.9
0.2
0.3
Option model
Volatility of interest rates
65
86
50
156
basis
points
Credit
0.3
0.6
0.3
0.4
Discounted expected
cash flows
Credit spreads
4
1,760
2
1,789
basis
points
Credit correlation
50
58
50
66
%
Recovery rates
4
100
0
100
%
Option model
Credit volatility
60
60
59
127
%
Recovery rates
0
40
%
Equity / index
1.2
1.1
3.9
3.1
Option model
Equity dividend yields
0
9
0
16
%
Volatility of equity stocks,
equity and other indices
1
130
4
126
%
Equity-to-FX correlation
(65)
70
(65)
80
%
Equity-to-equity correlation
0
100
0
100
%
Loan commitments
measured at FVTPL
0.0
0.1
Relative value to
market comparable
Loan price equivalent
79
100
60
101
points
1 The ranges of significant unobservable
inputs are represented in points, percentages and
basis points. Points are
a percentage of par (e.g. 100
points would be 100% of par).
2 Weighted averages are provided
for most non-derivative financial instruments and were calculated
by weighting inputs based on the fair values of
the respective instruments. Weighted averages
are not provided for inputs related to Other
financial
liabilities designated at fair value and Derivative financial instruments,
as this would not be meaningful.
3 Debt issued designated at fair value primarily consists of UBS AG
structured notes, which include variable
maturity notes with various
equity and foreign exchange
underlying risks, as well
as rates-linked and
credit-linked notes, all
of which have embedded derivative
parameters that are considered
to be unobservable.
The derivative instrument parameters for debt issued designated at fair value, embedded derivatives for over-the-counter
debt instruments reported under Other financial liabilities designated at fair value and funded
derivatives reported under Loans at fair value (held for trading
and not held for trading) are presented in the corresponding
derivative financial instruments lines in this table.
4 The range of inputs is not disclosed,
as there is a dispersion of values given the diverse nature of the investments.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
53
Note 10
Fair value measurement (continued)
d) Level 3 instruments: sensitivity to changes
in unobservable input assumptions
The table below summarizes those financial assets and liabilities classified as Level 3 for
which a change in one or
more of
the unobservable
inputs to
reflect reasonably
possible alternative
assumptions would
change fair
value
significantly, and the estimated effect thereof.
The
sensitivity data
shown below
presents an
estimation of
valuation uncertainty
based
on
reasonably possible
alternative values for Level 3
inputs at the balance sheet
date and does not represent
the estimated effect of stress
scenarios. Typically,
these financial
assets and
liabilities are
sensitive to
a combination
of inputs
from Levels 1–3.
Although well-defined interdependencies
may exist
between Level 1 / 2 parameters
and Level 3
parameters (e.g.
between interest rates,
which are generally
Level 1 or Level 2,
and prepayments,
which are generally
Level 3), these
have not been incorporated
in the table. Furthermore,
direct interrelationships between
the Level 3 parameters are
not a significant element of the valuation uncertainty.
Sensitivity of fair value measurements to changes in unobservable input assumptions
1
30.9.25
30.6.25
31.12.24
USD m
Favorable
changes
Unfavorable
changes
Favorable
changes
Unfavorable
changes
Favorable
changes
Unfavorable
changes
Loans at fair value (held for trading and not held for trading) and guarantees
2
87
(84)
141
(112)
185
(143)
Securities financing transactions
21
(11)
25
(14)
30
(24)
Auction rate securities
8
(6)
8
(4)
8
(6)
Asset-backed securities
18
(17)
19
(17)
32
(28)
Equity instruments
411
(399)
387
(370)
333
(308)
Investment fund units
180
(182)
178
(180)
179
(181)
Loan commitments measured at FVTPL
12
(94)
13
(41)
38
(42)
Interest rate derivatives, net
45
(17)
68
(58)
115
(70)
Credit derivatives, net
55
(86)
78
(108)
112
(117)
Foreign exchange derivatives, net
8
(9)
6
(5)
3
(2)
Equity / index derivatives, net
658
(581)
690
(577)
732
(617)
Other
219
(110)
216
(115)
289
(161)
Total
1,722
(1,595)
1,830
(1,601)
2,056
(1,700)
1 Sensitivity of issued and over-the-counter debt instruments is reported with the equivalent derivative
or Other.
2 Sensitivity of funded derivatives is reported under equivalent derivatives.
e) Level 3 instruments: movements during
the period
The table below presents additional information about material Level 3 assets and liabilities measured at fair value
on a recurring basis. Level 3 assets and liabilities
may be hedged with instruments
classified as Level 1 or Level 2 in
the fair
value hierarchy
and, as
a
result,
realized and
unrealized gains
and losses
included in
the table
may not
include the effect of related hedging
activity. Furthermore, the realized and unrealized gains and
losses presented
in the table are not
limited solely to those
arising from Level 3 inputs,
as valuations are generally
derived from both
observable and unobservable parameters.
Assets
and
liabilities
transferred
into
or
out
of
Level 3
are
presented
as
if
those
assets
or
liabilities
had
been
transferred on 1 January 2025.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
54
Note 10
Fair value measurement (continued)
Movements of Level 3 instruments
USD bn
Balance at
the
beginning
of the
period
Effect from
merger of
UBS AG
and Credit
Suisse AG
1
Net gains /
losses
included in
compre-
hensive
income
2
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 nine months ended 30 September 2025
3
Financial assets at fair value held for
trading
3.1
(0.1)
(0.2)
0.6
(1.3)
1.1
(0.4)
0.5
(0.1)
0.1
3.5
of which: Equity instruments
0.1
(0.0)
(0.0)
0.0
(0.0)
0.0
(0.0)
0.1
(0.0)
0.0
0.2
of which: Corporate and municipal
bonds
0.8
(0.1)
(0.1)
0.5
(0.4)
0.0
(0.0)
0.1
(0.1)
0.0
0.9
of which: Loans
1.8
0.1
(0.0)
0.0
(0.7)
1.1
(0.4)
0.1
(0.0)
0.0
2.1
Derivative financial instruments –
assets
2.8
(0.0)
(0.0)
0.0
(0.0)
1.1
(1.0)
0.4
(0.3)
0.0
3.0
of which: Interest rate
0.9
0.2
0.1
0.0
0.0
0.0
(0.3)
0.3
(0.1)
(0.0)
1.1
of which: Equity / index
1.1
(0.2)
(0.1)
0.0
0.0
0.7
(0.3)
0.1
(0.2)
0.0
1.2
of which: Credit
0.6
(0.1)
(0.0)
0.0
(0.0)
0.1
(0.3)
0.1
(0.0)
0.0
0.3
Financial assets at fair value not held
for trading
8.7
0.9
0.8
0.2
(0.5)
1.5
(0.8)
0.2
(0.3)
0.2
10.1
of which: Loans
3.2
0.9
0.9
0.0
(0.0)
1.2
(0.7)
0.0
(0.2)
0.1
4.5
of which: Auction rate securities
0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
of which: Equity instruments
2.9
0.1
(0.0)
0.2
(0.2)
0.0
0.0
0.0
(0.0)
0.1
3.1
of which: Investment fund units
0.7
0.0
0.0
0.0
(0.1)
0.0
(0.0)
0.0
0.0
0.0
0.6
of which: Asset-backed securities
0.6
(0.0)
(0.0)
0.0
(0.1)
0.0
0.0
0.1
(0.0)
0.0
0.5
Derivative financial instruments –
liabilities
4.1
0.4
0.5
0.0
(0.0)
1.7
(1.1)
0.0
(0.7)
0.1
4.5
of which: Interest rate
0.3
0.1
0.0
0.0
(0.0)
0.1
(0.2)
(0.0)
(0.0)
0.0
0.2
of which: Equity / index
3.1
0.4
0.5
0.0
0.0
1.5
(0.7)
0.0
(0.6)
0.0
3.9
of which: Credit
0.4
(0.1)
(0.1)
0.0
0.0
0.1
(0.1)
0.0
(0.0)
0.0
0.3
of which: Loan commitments
measured at FVTPL
0.1
0.0
(0.0)
0.0
(0.0)
0.0
(0.0)
0.0
(0.0)
0.0
0.0
Debt issued designated at fair value
11.8
0.9
0.8
0.0
0.0
3.4
(2.9)
0.6
(3.6)
0.4
10.7
Other financial liabilities designated at
fair value
4.3
0.2
0.1
0.0
(0.0)
0.6
(0.9)
0.0
0.0
0.0
4.2
For the nine months ended 30 September 2024
Financial assets at fair value held for
trading
1.8
7.8
0.2
0.1
0.4
(3.3)
1.1
(2.6)
0.1
(0.4)
0.0
5.1
of which: Equity instruments
0.1
0.1
(0.0)
(0.0)
0.0
(0.1)
0.0
(0.0)
0.0
(0.0)
0.0
0.2
of which: Corporate and municipal
bonds
0.6
0.4
(0.1)
(0.1)
0.3
(0.3)
0.0
0.0
0.0
(0.0)
0.0
0.9
of which: Loans
0.9
7.0
0.3
0.2
0.0
(2.7)
1.1
(2.6)
0.0
(0.3)
(0.0)
3.7
Derivative financial instruments –
assets
1.3
0.7
(0.1)
(0.2)
0.0
(0.1)
0.9
(0.6)
0.7
(0.1)
(0.0)
2.6
of which: Interest rate
0.3
0.0
0.1
0.0
0.0
(0.1)
0.3
(0.1)
0.2
(0.0)
(0.0)
0.6
of which: Equity / index
0.7
0.2
(0.0)
(0.0)
0.0
(0.0)
0.5
(0.3)
0.1
(0.1)
(0.0)
1.0
of which: Credit
0.3
0.1
(0.1)
(0.0)
0.0
(0.0)
0.1
(0.1)
0.3
(0.0)
(0.0)
0.6
Financial assets at fair value not held
for trading
4.1
4.1
0.1
0.1
0.4
(0.3)
1.5
(1.9)
0.4
(0.3)
0.0
8.1
of which: Loans
1.3
0.8
0.1
0.1
0.1
0.0
0.9
(0.5)
0.0
(0.1)
(0.0)
2.5
of which: Auction rate securities
1.2
0.0
0.0
(0.0)
0.0
0.0
0.0
(1.1)
0.0
0.0
0.0
0.2
of which: Equity instruments
1.1
1.8
0.0
0.0
0.1
(0.1)
0.0
0.0
0.1
0.0
0.0
3.0
of which: Investment fund units
0.2
0.4
0.0
(0.0)
0.1
(0.1)
0.0
0.0
0.0
(0.0)
(0.0)
0.6
of which: Asset-backed securities
0.0
0.5
0.0
0.0
0.0
(0.1)
0.0
0.0
0.2
(0.1)
0.0
0.6
Derivative financial instruments –
liabilities
3.2
0.9
0.8
1.0
0.0
(0.0)
1.8
(1.6)
0.6
(0.3)
(0.0)
5.4
of which: Interest rate
0.1
0.1
0.1
0.3
0.0
(0.0)
0.0
(0.1)
0.1
(0.0)
(0.0)
0.3
of which: Equity / index
2.7
0.2
0.9
0.9
0.0
(0.0)
1.6
(1.3)
0.4
(0.3)
(0.0)
4.3
of which: Credit
0.3
0.2
(0.1)
(0.1)
0.0
(0.0)
0.1
(0.1)
0.0
(0.0)
(0.0)
0.4
of which: Loan commitments
measured at FVTPL
0.0
0.4
(0.2)
(0.1)
0.0
(0.0)
0.0
(0.0)
0.0
(0.0)
0.0
0.2
Debt issued designated at fair value
7.8
4.5
0.6
0.4
0.0
(0.0)
3.2
(2.7)
1.2
(3.8)
0.0
10.9
Other financial liabilities designated at
fair value
2.3
1.9
0.0
0.0
0.0
0.0
0.9
(0.9)
0.0
(0.1)
0.0
4.2
1 Refer to Note 2 for more information.
2 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.
3 Total Level 3 assets as of
30 September 2025 were USD 16.7bn (31 December 2024: USD 14.7bn). Total Level 3 liabilities as of 30 September 2025
were USD 19.6bn (31 December 2024: USD 20.4bn).
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
55
Note 10
Fair value measurement (continued)
f) Financial instruments not measured
at fair value
The table
below reflects
the estimated
fair values
of financial
instruments not
measured at
fair value.
Valuation
principles applied
when determining fair
value estimates for
financial instruments not
measured at
fair value
are
consistent with those described in “Note 21
Fair value measurement” in the “Consolidated financial statements”
section of the UBS AG Annual Report 2024.
Financial instruments not measured at fair value
30.9.25
30.6.25
31.12.24
USD bn
Carrying
amount
Fair value
Carrying
amount
Fair value
Carrying
amount
Fair value
Assets
Cash and balances at central banks
218.7
218.7
236.2
236.2
223.3
223.3
Amounts due from banks
18.7
18.7
20.7
20.7
18.1
18.1
Receivables from securities financing transactions measured at amortized
cost
95.3
95.3
110.2
110.2
118.3
118.3
Cash collateral receivables on derivative instruments
43.5
43.5
45.5
45.5
44.0
44.0
Loans and advances to customers
653.3
647.3
653.2
649.3
587.3
582.4
Other financial assets measured at amortized cost
72.9
71.9
72.5
71.3
59.3
57.5
Liabilities
Amounts due to banks
28.2
28.2
31.9
31.9
23.3
23.4
Payables from securities financing transactions measured at amortized cost
18.7
18.7
16.3
16.3
14.8
14.8
Cash collateral payables on derivative instruments
34.5
34.5
33.5
33.5
36.4
36.4
Customer deposits
786.3
786.9
804.7
805.5
749.5
750.0
Funding from UBS Group AG measured at amortized cost
117.2
122.0
113.0
117.2
107.9
112.5
Debt issued measured at amortized cost
99.1
99.6
107.5
107.9
101.1
102.7
Other financial liabilities measured at amortized cost
1
14.0
14.0
14.9
14.9
17.9
17.9
1 Excludes lease liabilities.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
56
Note 11
Derivative instruments
a) Derivative instruments
As of 30.9.25, 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
36.5
31.4
3,311
19,689
Credit derivatives
3.9
4.3
158
Foreign exchange
48.2
51.1
8,413
428
Equity / index
56.8
68.8
2,004
107
Commodities
8.1
6.6
230
21
Other
3
1.3
1.4
182
Total derivative financial instruments, based on netting under IFRS Accounting Standards
4
154.7
163.5
14,299
20,246
Further netting potential not recognized on the balance
sheet
5
(137.1)
(145.9)
of which: netting of recognized financial liabilities / assets
(115.1)
(115.1)
of which: netting with collateral received / pledged
(22.0)
(30.8)
Total derivative financial instruments, after consideration of further netting potential
17.6
17.6
As of 30.6.25, USD bn
Derivative financial instruments
Interest rate
38.6
33.6
3,687
18,031
Credit derivatives
3.2
3.4
132
Foreign exchange
78.6
88.9
8,221
372
Equity / index
45.4
53.8
1,579
98
Commodities
4.3
3.5
174
19
Other
3
0.6
0.7
168
Total derivative financial instruments, based on netting under IFRS Accounting Standards
4
170.6
183.9
13,961
18,519
Further netting potential not recognized on the balance
sheet
5
(153.5)
(162.0)
of which: netting of recognized financial liabilities / assets
(130.5)
(130.5)
of which: netting with collateral received / pledged
(23.0)
(31.5)
Total derivative financial instruments, after consideration of further netting potential
17.1
21.9
As of 31.12.24, USD bn
Derivative financial instruments
Interest rate
42.1
36.6
3,650
16,844
Credit derivatives
3.1
3.7
144
Foreign exchange
101.1
94.6
7,216
269
Equity / index
36.9
42.7
1,365
93
Commodities
2.6
2.2
155
17
Other
3
0.6
0.8
87
Total derivative financial instruments, based on netting under IFRS Accounting Standards
4
186.4
180.7
12,617
17,223
Further netting potential not recognized on the balance
sheet
5
(162.6)
(166.4)
of which: netting of recognized financial liabilities / assets
(135.6)
(135.6)
of which: netting with collateral received / pledged
(27.1)
(30.8)
Total derivative financial instruments, after consideration of further netting potential
23.8
14.3
1 In cases where derivative
financial instruments are presented
on a net basis
on the balance sheet,
the respective notional
values of the netted
derivative financial instruments
are still presented on
a gross basis.
Notional amounts of client-cleared ETD and OTC transactions
through central clearing counterparties are not disclosed, as they
have a significantly different risk profile.
2 Other notional values relate to derivatives
that are cleared through either a central counterparty
or an exchange and settled on a daily basis.
The fair value of these derivatives is
presented on the balance sheet within Cash collateral receivables
on derivative
instruments and Cash collateral payables on derivative instruments.
3 Includes Loan commitments measured at FVTPL, as well as unsettled purchases and
sales of non-derivative financial instruments for which the
changes in the
fair value
between trade date
and settlement date
are recognized as
derivative financial
instruments.
4 Financial assets
and liabilities
are presented net
on the balance
sheet if UBS
AG 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 AG or its
counterparties, and intends
either to settle on a net basis or
to realize the asset and settle the
liability simultaneously. Refer to
“Note 22 Offsetting financial assets and
financial liabilities” in the “Consolidated financial
statements” section of
the UBS AG Annual Report 2024
for more information.
5 Reflects the netting potential in
accordance with enforceable master netting
and similar arrangements where not
all criteria for a net presentation
on the
balance sheet have been met. Refer to “Note 22 Offsetting financial assets and financial liabilities” in the “Consolidated financial statements” section
of the UBS AG Annual Report 2024 for more information.
b) Cash collateral on derivative instruments
USD bn
Receivables
30.9.25
Payables
30.9.25
Receivables
30.6.25
Payables
30.6.25
Receivables
31.12.24
Payables
31.12.24
Cash collateral on derivative instruments, based on netting under IFRS Accounting
Standards
1
43.5
34.5
45.5
33.5
44.0
36.4
Further netting potential not recognized on the balance
sheet
2
(26.7)
(15.6)
(29.2)
(17.5)
(28.3)
(22.6)
of which: netting of recognized financial liabilities / assets
(24.9)
(13.9)
(27.3)
(15.5)
(25.9)
(20.2)
of which: netting with collateral received / pledged
(1.7)
(1.7)
(2.0)
(2.0)
(2.4)
(2.4)
Cash collateral on derivative instruments, after consideration of further netting potential
16.9
18.9
16.2
16.0
15.7
13.8
1 Financial assets and liabilities are presented
net on the balance sheet if UBS
AG 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 AG or its counterparties, and intends
either to settle on a net basis or to realize the asset and settle the liability simultaneously.
2 Reflects the netting potential
in accordance with enforceable master netting
and similar arrangements where
not all criteria for a net
presentation on the balance sheet have
been met. Refer to “Note 22
Offsetting financial assets and financial
liabilities” in the “Consolidated financial statements” section of the UBS AG Annual Report 2024 for more information.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
57
Note
12
Other assets and liabilities
a) Other financial assets measured at amortized cost
USD m
30.9.25
30.6.25
31.12.24
Debt securities
53,308
52,642
41,583
Loans to financial advisors
2,712
2,682
2,723
Fee- and commission-related receivables
2,882
2,716
2,231
Finance lease receivables
6,825
6,811
5,934
Settlement and clearing accounts
374
457
430
Accrued interest income
2,171
2,195
2,196
Other
1
4,631
5,043
4,182
Total other financial assets measured at amortized cost
72,904
72,546
59,279
1 Predominantly includes cash collateral provided to exchanges and clearing houses to secure securities trading activity through
those counterparties.
b) Other non-financial assets
USD m
30.9.25
30.6.25
31.12.24
Precious metals and other physical commodities
10,928
9,465
7,341
Deposits and collateral provided in connection with litigation,
regulatory and similar matters
1
2,298
2,132
1,946
Prepaid expenses
1,261
1,271
1,194
Current tax assets
1,390
1,347
1,504
VAT,
withholding tax and other tax receivables
1,317
974
1,129
Properties and other non-current assets held for sale
371
186
195
Assets of disposal groups held for sale
2
1,823
Other
1,940
1,708
2,149
Total other non-financial assets
19,505
17,082
17,282
1 Refer to Note 16 for more information.
2 Refer to Note 6 for more information about the sale of Select Portfolio Servicing.
c) Other financial liabilities measured at amortized cost
USD m
30.9.25
30.6.25
31.12.24
Other accrued expenses
2,589
2,607
2,732
Accrued interest expenses
4,665
5,317
5,862
Settlement and clearing accounts
1,632
1,892
1,925
Lease liabilities
3,585
3,631
3,871
Other
5,087
5,081
7,372
Total other financial liabilities measured at amortized cost
17,559
18,528
21,762
d) Other financial liabilities designated at fair value
USD m
30.9.25
30.6.25
31.12.24
Financial liabilities related to unit-linked investment contracts
20,143
19,669
17,203
Securities financing transactions
5,448
4,699
5,798
Over-the-counter debt instruments and other
4,915
5,043
5,698
Funding from UBS Group AG
1
7,139
6,119
5,342
Total other financial liabilities designated at fair value
37,645
35,529
34,041
1 Funding from UBS Group
AG consists of subordinated
debt of UBS AG
and its subsidiaries toward
UBS Group AG.
Subordinated debt consists of
unsecured debt obligations that are
contractually subordinated in
right of payment to all other present and future non-subordinated obligations of the respective issuing entity.
e) Other non-financial liabilities
USD m
30.9.25
30.6.25
31.12.24
Compensation-related liabilities
6,465
5,501
6,897
of which: net defined benefit liability
673
739
691
Current tax liabilities
751
934
1,536
Deferred tax liabilities
326
322
283
VAT,
withholding tax and other tax payables
959
914
1,067
Deferred income
720
639
614
Liabilities of disposal groups held for sale
1
1,212
Other
124
119
304
Total other non-financial liabilities
9,345
8,429
11,911
1 Refer to Note 6 for more information about the sale of Select Portfolio Servicing.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
58
Note
13
Funding from UBS Group AG measured
at amortized cost
Funding from UBS Group AG measured at amortized cost
USD m
30.9.25
30.6.25
31.12.24
Debt contributing to total loss-absorbing capacity (TLAC)
92,035
87,555
87,036
Debt eligible as high-trigger loss-absorbing additional tier
1 capital instruments
1
19,964
18,656
14,585
Debt eligible as low-trigger loss-absorbing additional
tier 1 capital instruments
1,245
Other
2
5,179
6,789
5,051
Total funding from UBS Group AG measured at amortized cost
3,4
117,178
113,000
107,918
1 For 30 September 2025, includes USD 13.0bn (30 June 2025: USD 10.2bn; 31 December 2024: USD 6.9bn) that is, upon the occurrence of
a trigger event or a viability event, subject to conversion into ordinary UBS
shares.
2 Includes debt no longer eligible as TLAC having a residual maturity of less than one year and high-trigger loss-absorbing additional tier 1 capital instruments that ceased to be eligible when UBS Group AG
issued notice of redemption.
3 Consists of subordinated debt of UBS AG and its subsidiaries
toward UBS Group AG. Subordinated debt
consists of unsecured debt obligations that are contractually subordinated
in
right of payment to all
other present and future non-subordinated
obligations of the respective issuing
entity.
4 UBS AG has
also recognized funding from UBS
Group AG that is
designated at fair value.
Refer to
Note 12d for more information.
Note
14
Debt issued designated at fair value
Debt issued designated at fair value
USD m
30.9.25
30.6.25
31.12.24
Equity-linked
1
58,521
59,645
54,069
Rates-linked
23,878
23,607
23,641
Fixed-rate
13,822
15,027
14,250
Credit-linked
4,299
4,197
5,225
Commodity-linked
3,198
3,140
3,592
Other
2,140
2,636
1,789
Total debt issued designated at fair value
2
105,857
108,252
102,567
1 Includes investment fund unit-linked instruments issued.
2 As of 30 September 2025, 100% of Total debt issued designated at fair value was unsecured
(30 June 2025: 100%; 31 December 2024: 100%).
Note
15
Debt issued measured at amortized cost
Debt issued measured at amortized cost
USD m
30.9.25
30.6.25
31.12.24
Short-term debt
1
28,874
35,306
30,509
Senior unsecured debt
26,759
29,414
33,416
Covered bonds
12,632
11,479
8,814
Subordinated debt
409
673
689
of which: eligible as non-Basel III-compliant tier 2 capital
instruments
196
207
Debt issued through the Swiss central mortgage institutions
29,920
30,158
27,251
Other long-term debt
469
476
424
Long-term debt
2
70,189
72,199
70,595
Total debt issued measured at amortized cost
3,4
99,063
107,505
101,104
1 Debt with an original contractual maturity
of less than one year,
includes mainly certificates of deposit and
commercial paper.
2 Debt with an original contractual
maturity greater than or equal to one
year. The
classification of debt
issued into
short-term and
long-term does
not consider
any early redemption
features.
3 Net of
bifurcated embedded
derivatives,
the fair value
of which
was not
material for
the periods
presented.
4 Except for Covered bonds (100% secured), Debt issued through the Swiss central mortgage institutions (100% secured) and Other long
-term debt (94% secured), 100% of the balance was unsecured
as of 30 September 2025.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
59
Note 16
Provisions and contingent liabilities
a) Provisions
The table below presents an overview of total provisions.
Overview of total provisions
USD m
30.9.25
30.6.25
31.12.24
Provisions other than provisions for expected credit losses
4,135
4,666
4,799
Provisions for expected credit losses
1
403
415
332
Total provisions
4,539
5,082
5,131
1 Refer to Note 9c for more information about ECL provisions recognized for off-balance sheet financial instruments and credit lines.
The table below presents additional information
for provisions other than provisions for
expected credit losses.
Additional information for provisions other than provisions for expected credit losses
USD m
Litigation,
regulatory and
similar matters
1
Restructuring
2
Real estate
3
Other
4
Total
Balance as of 31 December 2024
3,598
699
224
278
4,799
Balance as of 30 June 2025
3,446
684
240
296
4,666
Increase in provisions recognized in the income statement
376
136
7
61
581
Release of provisions recognized in the income statement
(354)
5
(43)
(1)
(16)
(414)
Provisions used in conformity with designated purpose
(462)
6
(201)
(14)
(13)
(690)
Foreign currency translation and other movements
(6)
(3)
2
(1)
(7)
Balance as of 30 September 2025
3,001
573
234
328
4,135
1 Consists of
provisions for
losses resulting
from legal,
liability and
compliance risks.
2 Includes USD
291m of
personnel-related restructuring
provisions as
of 30 September
2025 (30 June
2025: USD 363m;
31 December 2024: USD 262m), USD 233m of provisions for onerous contracts related to real estate as of 30 September 2025 (30 June 2025: USD 265m; 31 December 2024: USD 383m) and USD 49m of provisions
for onerous contracts related to technology as of 30 September 2025 (30 June 2025:
USD 55m; 31 December 2024: USD 54m).
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 Primarily includes the
release of provisions
regarding the resolution
of the legacy matter
related to UBS AG’s
cross-border
business activities in France in the
third quarter of 2025 as described in item 1
of section b) of this Note.
6 Mainly includes provisions used for the resolution reached
with the US Department of Justice in the third
quarter of 2025 as described in item 4 of section b) of this Note.
Information about provisions and contingent liabilities with respect to litigation, regulatory and similar matters, as
a class,
is included
in Note
16b. There
are no
material contingent
liabilities associated
with the
other classes
of
provisions.
b) Litigation, regulatory and similar matters
UBS operates in a legal and regulatory environment that exposes it
to significant litigation and similar risks arising
from disputes and
regulatory proceedings. As
a result, UBS
is involved in
various disputes and
legal proceedings,
including litigation, arbitration, and regulatory and criminal investigations. “UBS”, “we”
and “our”, for purposes
of this Note, refer to UBS AG and / or one or more
of its subsidiaries, as applicable.
Such matters are subject
to many uncertainties,
and the outcome and the
timing of resolution are
often difficult to
predict, particularly in the earlier stages of a case.
There are also situations where UBS may enter into
a settlement
agreement. This may occur in order to avoid
the expense, management distraction or reputational implications of
continuing
to
contest
liability,
even
for
those
matters
for
which
UBS
believes
it
should
be
exonerated.
The
uncertainties inherent in all such matters affect the amount and timing of any potential outflows for both matters
with respect to
which provisions have
been established and other
contingent liabilities. UBS makes
provisions for
such matters brought
against it when,
in the
opinion of
management after seeking
legal advice, it
is more
likely
than not
that UBS
has a
present legal
or constructive obligation
as a
result of
past events,
it is
probable that
an
outflow of resources
will be required,
and the amount
can be reliably
estimated. Where these
factors are otherwise
satisfied, a
provision may
be established
for claims
that have
not yet
been asserted
against UBS,
but are
nevertheless
expected to be, based on UBS’s experience with similar
asserted claims. If any of those conditions is not met, such
matters result in contingent liabilities. If the amount of an obligation
cannot be reliably estimated, a liability exists
that is not
recognized even if an
outflow of resources is
probable. Accordingly, no provision is
established even if
the potential
outflow of
resources with
respect to
such matters
could be
significant. Developments relating
to a
matter that occur
after the relevant reporting
period, but prior
to the issuance
of financial statements,
which affect
management’s
assessment
of
the
provision
for
such
matter
(because,
for
example,
the
developments
provide
evidence of
conditions that
existed at
the end
of the
reporting period),
are adjusting
events after
the reporting
period under IAS 10 and must be recognized in
the financial statements for the reporting
period.
Specific litigation, regulatory and other matters are
described below, including all such matters that
management
considers
to
be
material
and
others
that
management
believes
to
be
of
significance
to
UBS
due
to
potential
financial,
reputational
and
other
effects.
The
amount
of
damages
claimed,
the
size
of
a
transaction
or
other
information is
provided where
available and
appropriate in order
to assist
users in
considering the
magnitude of
potential exposures.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
60
Note 16
Provisions and contingent liabilities
(continued)
In the case of certain matters below, we state that we have established a provision, and for the other matters, we
make no such statement. When we
make this statement and we expect
disclosure of the amount of a provision
to
prejudice seriously our
position with other
parties in the
matter because it
would reveal what
UBS believes to
be
the
probable
and
reliably estimable
outflow, we
do
not
disclose
that amount.
In
some
cases we
are
subject to
confidentiality obligations
that preclude
such disclosure.
With respect
to the
matters for
which we
do not
state
whether we have
established a provision,
either: (a) we
have not established
a provision; or
(b) we have
established
a provision
but expect
disclosure of
that fact
to prejudice
seriously our
position with
other parties
in the
matter
because it would reveal the fact that
UBS believes an outflow of resources to be probable
and reliably estimable.
With respect to certain litigation, regulatory
and similar matters for which we
have established provisions, we are
able to
estimate the expected
timing of outflows.
However, the aggregate
amount of the
expected outflows for
those matters for which we
are able to estimate expected
timing is immaterial relative to
our current and expected
levels of liquidity over the relevant time periods.
The
aggregate
amount
provisioned
for
litigation,
regulatory
and
similar
matters
as
a
class
is
disclosed
in
the
“Provisions” table in
Note 16a above.
UBS provides below
an estimate of
the aggregate liability
for its
litigation,
regulatory and
similar matters
as a
class of
contingent liabilities.
Estimates of
contingent liabilities
are inherently
imprecise and
uncertain as
these estimates
require UBS
to make
speculative legal
assessments as
to claims
and
proceedings that involve
unique fact patterns
or novel legal
theories, that have
not yet been
initiated or are
at early
stages of
adjudication, or
as to
which
alleged damages
have
not been
quantified by
the claimants.
Taking into
account these uncertainties
and the other factors
described herein, UBS
estimates the future losses
that could arise
from litigation,
regulatory and
similar matters
disclosed below
for which
an estimate
is possible,
that are
not covered
by existing provisions are in the range of USD
0bn to USD 2bn.
Litigation, regulatory
and similar
matters may
also result
in non-monetary
penalties and
consequences. A
guilty plea
to, or conviction of, a crime could have material consequences for UBS. Resolution of regulatory proceedings may
require UBS to obtain waivers of regulatory disqualifications to maintain certain operations, may entitle regulatory
authorities to limit, suspend or terminate
licenses and regulatory authorizations, and may
permit financial market
utilities to
limit, suspend
or terminate
UBS’s participation
in such
utilities. Failure
to obtain
such waivers,
or any
limitation, suspension
or termination
of licenses,
authorizations or
participations, could
have material
consequences
for UBS.
Provisions for litigation, regulatory and similar matters, by business division and in Group Items
1
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-
core and
Legacy
Group Items
UBS AG
Balance as of 31 December 2024
1,271
147
1
266
1,779
135
3,598
Balance as of 30 June 2025
1,415
167
0
308
1,353
202
3,446
Increase in provisions recognized in the income statement
93
0
0
8
274
1
376
Release of provisions recognized in the income statement
(287)
2
(37)
2
0
(3)
(27)
0
(354)
Provisions used in conformity with designated purpose
(17)
0
0
(15)
(421)
3
(10)
(462)
Foreign currency translation and other movements
(4)
(1)
0
(1)
(1)
0
(6)
Balance as of 30 September 2025
1,201
129
0
298
1,179
194
3,001
1 Provisions, if any, for the matters
described in items 2 and 9 of this Note are recorded in Global Wealth
Management. Provisions, if any, for
the matters described in items 4, 5, 6, 7 and 8 of this Note
are recorded
in Non-core and Legacy. Provisions,
if any, for the matters
described in item 1 of this Note are allocated
between Global Wealth Management, Personal
& Corporate Banking and Non-core and Legacy.
Provisions, if
any, for the matters described in item 3 of this Note are allocated
between the Investment Bank, Non-core and Legacy and Group Items. Provisions, if any, for the matters described in item 10
of this Note are allocated
between the Investment Bank and Non-core and Legacy.
2 Primarily includes the release of provisions regarding
the resolution of the legacy matter related
to UBS AG’s cross-border business
activities in France in
the third quarter of 2025 as described in item 1 of this Note.
3 Mainly includes provisions used for the resolution reached with the US Department of Justice in the third quarter of 2025 as described in item 4 of this
Note.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
61
Note 16
Provisions and contingent liabilities
(continued)
- Inquiries regarding cross-border wealth management
businesses
Tax
and regulatory
authorities in
a number
of countries
have made
inquiries, served
requests for
information or
examined
employees
located
in
their
respective
jurisdictions
relating
to
the
cross-border
wealth
management
services provided by
UBS and
other financial
institutions. Credit Suisse
offices in various
locations, including
the UK,
the Netherlands, France and
Belgium, have been contacted
by regulatory and law enforcement
authorities seeking
records and information
concerning investigations
into Credit
Suisse’s historical
private banking
services on a
cross-
border basis and
in part through
its local branches
and banks.
The UK and
French aspects of
these issues have
been
closed. UBS is continuing to cooperate with
the authorities.
Since 2013, UBS
(France) S.A., UBS AG
and certain former employees
have been under investigation in
France in
relation to UBS’s cross-border business with French
clients. In connection with this investigation, the investigating
judges ordered UBS AG to provide bail (“
caution
”) of EUR 1.1bn.
In 2019,
the court of
first instance
returned a verdict
finding UBS AG
guilty of
unlawful solicitation of
clients on
French territory and aggravated
laundering of the proceeds
of tax fraud, and UBS
(France) S.A. guilty of aiding
and
abetting unlawful
solicitation and
of laundering
the proceeds
of tax
fraud. The
court imposed
fines aggregating
EUR 3.7bn on UBS AG and UBS (France) S.A. and awarded EUR 800m of civil damages to
the French state. A trial
in the
Paris Court
of Appeal
took place
in March
- In
December 2021,
the Court
of Appeal
found UBS AG
guilty of unlawful solicitation and aggravated laundering of the proceeds of tax fraud. The court ordered a fine of
EUR 3.75m,
the
confiscation
of
EUR 1bn,
and
awarded
civil
damages
to
the
French
state
of
EUR 800m.
UBS
appealed the decision to the
French Supreme Court. In November
2023, the Supreme Court 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
was
remanded
to
the
Court
of
Appeal
for
a
retrial
regarding
these
overturned
elements. In September 2025, UBS AG resolved the case and agreed to pay a fine of EUR 730m and EUR 105m in
civil damages to the French State.
In May
2014, Credit
Suisse AG
entered into
settlement agreements
with the
SEC, the
Federal Reserve,
and the
New York Department of
Financial Services and agreed
with the US Department
of Justice (the DOJ)
to plead guilty
to conspiring
to aid
and
assist US
taxpayers in
filing false
tax returns
(the 2014
Plea
Agreement). Credit
Suisse
continued to report
to and cooperate
with US authorities
in accordance with its
obligations under the
2014 Plea
Agreement, including by
conducting a review
of cross-border services
provided by Credit
Suisse. In this connection,
Credit Suisse provided
information to US
authorities regarding potentially undeclared US
assets held by
clients at
Credit Suisse
since the
2014 Plea
Agreement. In
May 2025,
Credit Suisse
Services AG
entered into
a plea
agreement
(the 2025 Plea Agreement) with
the DOJ under
which it agreed to
plead guilty to one
count of conspiracy to
aid
and assist in the preparation of false income tax returns relating to legacy Credit Suisse accounts booked
in Credit
Suisse’s Swiss
booking center,
thereby settling
the investigation
into Credit
Suisse’s implementation of
the 2014
Plea Agreement.
In addition,
Credit Suisse
Services AG
entered into
a non-prosecution
agreement with
the DOJ
(the 2025 NPA) relating to
legacy Credit Suisse accounts booked in
Credit Suisse’s Singapore booking center. The
2025
Plea
Agreement
and
the
2025
NPA
provide
for
penalties,
restitution
and
forfeiture
of
USD 511m
in
the
aggregate. The 2025
Plea Agreement
and the 2025
NPA include ongoing
obligations of
UBS to furnish
information
and cooperate with DOJ’s
investigations of legacy Credit
Suisse accounts held by US
persons in its Switzerland and
Singapore booking centers and related accounts
in other booking centers.
Our balance
sheet at
30 September 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.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
62
Note 16
Provisions and contingent liabilities
(continued)
- Madoff
In relation to
the Bernard
L. Madoff Investment
Securities LLC
(BMIS) investment
fraud, UBS AG,
UBS (Luxembourg)
S.A. (now UBS
Europe SE, Luxembourg
branch) and certain
other UBS subsidiaries have
been subject to
inquiries
by a
number of
regulators, including
the Swiss
Financial Market
Supervisory Authority
(FINMA) and
the Luxembourg
Commission
de
Surveillance
du
Secteur
Financier.
Those
inquiries
concerned
two
third-party
funds
established
under Luxembourg
law,
substantially all
assets of
which were
with BMIS,
as well
as certain
funds established
in
offshore
jurisdictions
with
either
direct
or
indirect
exposure
to
BMIS.
These
funds
faced
severe
losses,
and
the
Luxembourg funds are in liquidation. The documentation establishing both funds identifies UBS entities in various
roles,
including custodian,
administrator,
manager,
distributor and
promoter,
and indicates
that UBS
employees
serve as board members.
In 2009 and 2010, the liquidators
of the two Luxembourg funds
filed claims against UBS entities,
non-UBS entities
and
certain
individuals,
including
current
and
former
UBS
employees,
seeking
amounts
totaling
approximately
EUR 2.1bn, which includes
amounts that the
funds may be
held liable to
pay the trustee
for the liquidation
of BMIS
(BMIS Trustee).
A large number of alleged beneficiaries have filed claims
against UBS entities (and non-UBS entities) for purported
losses relating to the Madoff
fraud. The majority of these
cases have been decided in
favor of UBS or dismissed
for
want of prosecution.
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 cases were
remanded to the Bankruptcy Court for further
proceedings.
- Foreign exchange, LIBOR and benchmark rates,
and other trading practices
Foreign-exchange-related regulatory matters:
Beginning in 2013, numerous authorities commenced investigations
concerning possible
manipulation of
foreign
exchange markets
and
precious
metals prices.
As
a
result
of these
investigations, UBS entered into resolutions with Swiss, US and
UK regulators and the European Commission. UBS
was granted conditional immunity
by the Antitrust Division
of the DOJ
and by authorities
in other jurisdictions
in
connection with potential competition law violations relating to foreign exchange and precious metals businesses.
In December
2021, the
European Commission
issued a
decision imposing
a fine
of EUR 83.3m
on Credit
Suisse
entities based on findings of anticompetitive practices in the foreign
exchange market. UBS received leniency and
accordingly no fine was assessed.
Credit Suisse appealed the decision
to the European General Court and,
in July
2025, the court issued a judgment reducing the fine
to EUR 28.9m.
The judgment is now final.
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
became final in May 2025. UBS’s settlement
remains subject to court approval.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
63
Note 16
Provisions and contingent liabilities
(continued)
LIBOR and other benchmark-related regulatory
matters:
Numerous government agencies conducted investigations
regarding potential improper attempts by UBS, among others, to manipulate LIBOR and other benchmark rates at
certain
times.
UBS
and
Credit
Suisse
reached
settlements
or
otherwise
concluded
investigations
relating
to
benchmark interest
rates with
the investigating
authorities. UBS
was granted
conditional leniency
or conditional
immunity
from
authorities
in
certain
jurisdictions,
including
the
Antitrust
Division
of
the
DOJ
and
the
Swiss
Competition Commission (WEKO), in
connection with potential
antitrust or competition
law violations related
to
certain rates.
However, UBS
has not
reached a
final settlement
with WEKO,
as the
Secretariat of
WEKO has
asserted
that UBS does not qualify for full immunity.
LIBOR and
other benchmark-related
civil litigation:
A number
of putative
class actions
and other
actions are
pending
in the federal
courts in New
York against UBS
and numerous other banks
on behalf of
parties who transacted in
certain interest rate benchmark-based derivatives. Also
pending in the US
and in other jurisdictions are
a number
of other
actions asserting losses
related to
various products whose
interest rates were
linked to
LIBOR and other
benchmarks, including
adjustable rate
mortgages, preferred
and debt securities,
bonds pledged
as collateral, loans,
depository
accounts,
investments
and
other
interest-bearing
instruments.
The
complaints
allege
manipulation,
through various
means, of
certain benchmark
interest rates,
including USD LIBOR,
Yen LIBOR,
EURIBOR, CHF LIBOR,
and GBP LIBOR and seek unspecified compensatory
and other damages under various legal
theories.
USD LIBOR class and individual actions in the
US:
Beginning in 2013, putative class actions
were filed in US federal
district courts
(and subsequently
consolidated in
the US
District Court
for the Southern
District of New
York (SDNY))
by plaintiffs who
engaged in over-the-counter
instruments, exchange-traded
Eurodollar futures and
options, bonds
or
loans
that
referenced
USD LIBOR.
The
complaints
allege
violations
of
antitrust
law
and
the
Commodities
Exchange Act, as well as breach of contract
and unjust enrichment. Following various
rulings by the SDNY and the
US
Court
of
Appeals
for
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 proceeded in
the district
court. In
September 2025, the
district court
granted defendants’
motion for
summary judgment
as to all
remaining actions.
UBS and Credit
Suisse previously
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.
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
August 2025,
the Second
Circuit affirmed
in part
and
reversed in
part the
district court’s dismissal
of the
complaint in
the EURIBOR action,
returning the
action to the
district court.
In
September 2025,
the Second
Circuit affirmed
the dismissal
of the
complaint in
the GBP
LIBOR
action.
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. In
September 2025,
the court
dismissed the
complaint against the remaining defendants,
including UBS.
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 in
March 2025.
UBS has
appealed to the European Court of Justice.
Credit default
swap auction
litigation –
In June
2021, Credit
Suisse, along
with other
banks and
entities, was
named
in a
putative class action
filed in federal
court in New
Mexico alleging manipulation of
credit default swap
(CDS)
final auction prices.
Defendants filed a
motion to enforce
a previous CDS
class action settlement
in the
SDNY. In
January 2024,
the SDNY
ruled that,
to the
extent claims
in the
New
Mexico action
arise from
conduct prior
to
30 June
2014,
those claims
are
barred
by
the SDNY
settlement.
The
plaintiffs
appealed
and, in
May
2025, the
Second Circuit affirmed the SDNY decision.
With respect
to additional
matters and
jurisdictions not
encompassed by
the settlements
and orders
referred to
above,
UBS’s balance
sheet at
30
September
2025
reflected a
provision
in
an
amount
that
UBS
believes to
be
appropriate under
the applicable
accounting standard.
As in
the case
of other
matters for
which we
have established
provisions, the future outflow
of resources in respect
of such matters
cannot be determined with
certainty based
on currently available information and
accordingly may ultimately prove to be
substantially greater (or may be less)
than the provision that we have recognized.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
64
Note 16
Provisions and contingent liabilities
(continued)
- Mortgage-related matters
Government and
regulatory
related matters:
DOJ RMBS
settlement
– In January
2017, Credit Suisse
Securities (USA)
LLC (CSS
LLC) and
its current
and former
US subsidiaries
and US
affiliates reached
a settlement
with the
DOJ related
to its
legacy
Residential Mortgage-Backed
Securities (RMBS)
business, a
business conducted
through
- The
settlement resolved
potential civil claims
by the
DOJ related
to certain of
those Credit
Suisse entities’ packaging,
marketing,
structuring,
arrangement,
underwriting,
issuance
and
sale
of
RMBS.
Pursuant
to
the
terms
of
the
settlement a civil monetary penalty was
paid to the DOJ in
January 2017. The settlement also required
the Credit
Suisse entities
to provide
certain levels
of consumer
relief measures,
including affordable
housing payments and
loan forgiveness, and the DOJ
and Credit Suisse agreed to the appointment
of an independent monitor to
oversee
the completion of
the consumer relief
requirements of the
settlement. In August
2025, CSS LLC
entered into an
agreement with the DOJ to resolve all of Credit Suisse’s outstanding Consumer Relief Obligations under the 2017
settlement by paying USD 300m.
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. In August 2025, the parties agreed to a settlement to resolve
this litigation for USD 66.39m. The
settlement is subject to court approval. 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, and in September 2025
the EDNY denied
plaintiffs’
motion
to
vacate
the
judgment.
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
defendants moved to dismiss plaintiffs’ amended complaints.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
65
Note 16
Provisions and contingent liabilities
(continued)
- Customer account matters
Several
clients
have
claimed
that
a
former
relationship
manager
in
Switzerland
had
exceeded
his
investment
authority
in
the
management of
their
portfolios, resulting
in
excessive concentrations
of
certain
exposures
and
investment losses. Credit
Suisse AG has
investigated the claims,
as well as
transactions among the
clients. Credit
Suisse AG filed a criminal complaint against the former relationship manager with the Geneva Prosecutor’s Office
upon which the
prosecutor initiated
a criminal investigation.
Several clients of
the former relationship
manager also
filed criminal complaints with the
Geneva Prosecutor’s Office. In
February 2018, the former relationship manager
was sentenced to five years
in prison by the Geneva criminal
court for fraud, forgery
and criminal mismanagement
and ordered
to pay
damages of
approximately USD 130m. On
appeal, the Criminal
Court of
Appeals of
Geneva
and, subsequently, the Swiss Federal Supreme Court upheld the main findings of the
Geneva criminal court.
Civil lawsuits have
been initiated against Credit
Suisse AG and
/ or certain
affiliates in various jurisdictions,
based
on the findings established in the criminal
proceedings against the former relationship
manager.
In Singapore, in a
now-concluded civil lawsuit,
Credit Suisse Trust
Limited was ordered
to pay USD 461m,
including
interest and costs.
In Bermuda, in the civil
lawsuit brought against Credit Suisse Life
(Bermuda) Ltd., the Supreme Court of Bermuda
issued a judgment awarding damages of USD 607.35m 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,
Credit Suisse Life (Bermuda) Ltd. was granted leave to appeal the judgment to the Judicial Committee of the Privy
Council and a hearing on
the appeal was held in
June 2025. The Bermuda Court of Appeal
also ordered that the
current
stay
continue
pending
determination
of
the
appeal
on
the
condition
that
the
damages
awarded,
plus
interest calculated at the Bermuda statutory
rate of 3.5%, remain in the escrow
account.
In Switzerland, certain civil lawsuits have been commenced against Credit Suisse AG in the
Court of First Instance
of Geneva since March 2023.
- Mozambique matter
Credit
Suisse
was
subject to
investigations by
regulatory
and
enforcement
authorities, as
well as
civil
litigation,
regarding certain Credit
Suisse entities’
arrangement of
loan financing
to Mozambique
state enterprises,
Proindicus
S.A. and Empresa Moçambicana de Atum
S.A. (EMATUM), a
distribution to private investors of loan
participation
notes (LPN) related
to the EMATUM
financing in September
2013, and certain
Credit Suisse
entities’ subsequent
role in arranging the exchange
of those LPNs for
Eurobonds issued by the Republic
of Mozambique. In 2019,
three
former Credit Suisse employees pleaded guilty in the EDNY to accepting improper personal benefits in connection
with financing transactions carried out with
two Mozambique state enterprises.
In
October 2021,
Credit
Suisse reached
settlements with
the DOJ,
the US
Securities and
Exchange Commission
(SEC), the
UK Financial
Conduct Authority
(FCA) and
FINMA to
resolve inquiries
by these
agencies, including
findings
that Credit
Suisse failed
to appropriately
organize and
conduct its
business with
due skill
and care,
and manage
risks. Credit
Suisse Group
AG entered
into a
three-year Deferred
Prosecution Agreement
(DPA) with
the DOJ
in
connection with the criminal information
charging Credit Suisse Group AG
with conspiracy to commit wire
fraud
and Credit
Suisse Securities
(Europe) Limited
(CSSEL) entered
into a
Plea Agreement
and pleaded
guilty to
one count
of conspiracy to
violate the US
federal wire fraud
statute. Under the
terms of the
DPA, UBS Group
AG (as successor
to Credit Suisse Group
AG) continued compliance enhancement and remediation efforts agreed
by Credit Suisse,
and undertake additional measures as
outlined in the DPA.
In January 2025, as
permitted under the terms of
the
DPA, the DOJ elected to extend the term of
the DPA until January 2026.
UBS AG third quarter 2025 report |
Consolidated financial statements | Notes
to the UBS AG interim consolidated financial
statements (unaudited)
66
Note 16
Provisions and contingent liabilities
(continued)
- ETN-related litigation
XIV litigation:
Since March 2018, three class action complaints
were filed in the SDNY on behalf
of a putative class
of purchasers
of VelocityShares
Daily Inverse
VIX Short-Term
Exchange Traded
Notes linked
to the
S&P 500
VIX
Short-Term
Futures
Index
(XIV
ETNs).
The
complaints have
been
consolidated and
asserts
claims
against
Credit
Suisse
for
violations
of
various
anti-fraud
and
anti-manipulation provisions
of
US
securities
laws
arising
from
a
decline in the value of XIV ETNs in February 2018. On appeal from an order of the SDNY dismissing all claims, the
Second Circuit
issued an
order that
reinstated a
portion of
the claims.
In decisions
in March
2023 and
February
2025,
the
court
granted
class
certification
for
two
of
the
three
classes
proposed
by
plaintiffs
and
denied class
certification of the third proposed class.
- Bulgarian former clients matter
In December 2020, the Swiss Office
of the Attorney General brought charges against Credit
Suisse AG and other
parties concerning the diligence and controls applied to a historical relationship with Bulgarian former clients
who
are
alleged to
have laundered
funds through
Credit
Suisse AG
accounts. In
June 2022,
following a
trial, Credit
Suisse AG was convicted in the Swiss Federal Criminal Court of certain historical organizational
inadequacies in its
anti-money-laundering framework
and ordered to pay a
fine of CHF 2m. In
addition, the court seized
certain client
assets in the amount of approximately
CHF 12m and ordered Credit Suisse AG to pay
a compensatory claim in the
amount of approximately CHF 19m.
Credit Suisse AG appealed
the decision to the
Swiss Federal Court of
Appeals.
Following the
merger of
UBS AG
and Credit
Suisse AG,
UBS AG
confirmed the
appeal. In
November 2024,
the
court issued a judgment that
acquitted UBS AG and annulled
the fine and compensatory
claim ordered by the first
instance court.
In February
2025, the
court affirmed
the acquittal
of UBS
AG, and
the Office
of the
Attorney
General
has appealed
the judgment
to the
Swiss Federal
Supreme Court.
UBS has
also appealed,
limited to
the issue
whether
a successor
entity by
merger can
be criminally
liable for
acts of
the predecessor
entity. In July
2025, the
Swiss Federal
Supreme Court
granted the
appeal filed
by the
Office of
the Attorney
General and
ruled that
the Swiss
Federal
Court of
Appeals released
its judgment
without proper
reasoning. The
case was
remanded to
the Swiss
Federal
Court of Appeals to deliver a full and reasoned judgment.
- 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. In one such case, the parties
agreed
in July 2025 to
a settlement of USD 115m. Because
the action was brought by shareholders
on behalf of and
for
the benefit of
Credit Suisse, after deducting
any Court-awarded attorneys’ fees and
expenses and any applicable
taxes, the
cash recovery
for the
settlement will
go to
UBS, as
successor to
Credit Suisse,
and will
result in
a net
recovery for UBS.
UBS AG third quarter 2025 report |
Comparison between UBS AG consolidated and UBS Group
AG consolidated
67
Comparison between UBS AG
consolidated and UBS Group AG
consolidated
The table below provides
a comparison of selected
financial and capital information of
UBS AG consolidated and
of UBS Group AG consolidated.
UBS AG and
UBS Group AG both
prepare consolidated
financial statements
in accordance
with IFRS
Accounting
Standards. UBS Group AG has applied acquisition accounting as defined by IFRS 3,
Business Combinations
, to the
acquisition of the Credit Suisse Group in 2023. The merger of UBS AG and Credit Suisse AG on 31 May 2024 has
been
accounted
for
as
a
business
combination
under
common
control,
as
defined
in
IFRS 3,
using
the
historic
carrying values
of the
assets and
liabilities of
Credit Suisse AG
as at
the date
of the
transaction (31 May
2024),
determined
under
IFRS
Accounting
Standards.
Therefore,
differences
exist
between
the
accounting
treatments
applied
at
the
UBS Group AG
and
UBS AG
consolidated
levels.
There
are
also
certain
scope
and
presentation
differences, as noted below.
›
Refer to “Note 2 Accounting for the merger of UBS AG and Credit Suisse AG” in the “Consolidated financial
statements” section of the UBS AG Annual Report 2024, available under “Annual reporting” at
ubs.com/investors
,
for more information about the accounting for the merger of UBS AG and Credit Suisse AG
Assets,
liabilities,
revenues,
operating
expenses
and
tax
expenses
/
(benefits)
relating
to
UBS
Group AG and
its
directly held
subsidiaries,
including UBS
Business Solutions
AG, are
reflected in
the consolidated
financial statements
of UBS Group AG but
not in those of
UBS AG. UBS AG’s
assets, liabilities, revenues
and operating expenses
related
to transactions
with UBS
Group AG and its
directly held
subsidiaries, including
UBS Business
Solutions AG and
other
shared services subsidiaries,
are not subject to
elimination in the
UBS AG consolidated financial
statements, but are
eliminated in the UBS Group AG consolidated financial
statements.
In the
third quarter of
2025, UBS AG consolidated
recognized a net
profit of USD
1,294m, while UBS Group AG
consolidated
recognized
a
net
profit
of
USD 2,487m.
The
USD 1,193m
difference
was
mainly
due
to
certain
purchase price
allocation (PPA)
effects recognized
at the
UBS Group AG
level upon
the acquisition
of the
Credit
Suisse Group.
These resulted
in net
accretion income
at the
UBS Group AG
level, net
of tax
effects, whereas
UBS AG
has not
applied acquisition accounting
and does not
have the
PPA effects
or the
corresponding net income.
The
PPA
effects
also
resulted
in
net
releases
for
litigation,
regulatory
and
similar
matters
for
UBS Group AG
(while
UBS AG incurred net
expenses). Other differences
in net profit
mainly arise as
UBS Business Solutions
AG and other
shared services subsidiaries of UBS Group AG charge other legal entities within the UBS AG consolidation scope a
markup on costs incurred for services provided.
As of 30 September 2025,
the total assets of UBS AG
consolidated were USD 1.6bn
higher than the total assets
of
UBS Group AG consolidated.
The
difference
mainly
reflected PPA
effects
recognized at
the
UBS Group AG level
upon the acquisition
of the Credit
Suisse Group, partly
offset by consolidation
scope differences.
The total liabilities
of
UBS AG
consolidated
were
USD 3.8bn
lower
than
the
total
liabilities
of
UBS Group AG,
mainly
due
to
consolidation scope differences and PPA effects.
The equity
of UBS AG
consolidated was
USD 5.4bn higher
than the
equity of
UBS Group AG
consolidated as
of
30 September
2025.
This
difference
was
mainly
due
to
consolidation
scope
differences
of
USD 2.8bn
and
PPA
effects of USD 2.4bn recognized at
the UBS Group AG level upon
the acquisition of the
Credit Suisse Group that
did not impact UBS AG
consolidated, primarily related
to loans and loan
commitments measured at
amortized cost
and contingent liabilities recognized under IFRS 3 for litigation, partly offset
by PPA effects on real estate and debt
issued.
The
going
concern
capital
of
UBS AG
consolidated
was
USD 3.5bn
lower
than
the
going
concern
capital
of
UBS Group
AG
consolidated
as
of
30 September
2025,
reflecting
the
common
equity
tier 1
(CET1)
capital
of
UBS AG
being
lower
by
USD 3.2bn
and
going
concern
loss-absorbing
additional
tier 1
(AT1)
capital
being
USD 0.3bn lower.
UBS AG third quarter 2025 report |
Comparison between UBS AG consolidated and UBS Group
AG consolidated
68
The
USD 3.2bn
lower
CET1
capital
of
UBS AG
consolidated
was
primarily
due
to
a
USD 12.2bn
difference
in
dividend accruals between UBS AG and UBS Group AG, partly offset by UBS Group AG consolidated equity being
USD 5.4bn
lower,
compensation-related regulatory
capital
accruals
at
the
UBS Group
AG
level
of
USD 2.3bn, a
capital reserve for expected future share repurchases of
USD 0.9bn and a USD 0.4bn effect from
eligible deferred
tax assets on temporary differences.
The quarterly average liquidity coverage
ratio (the LCR) of
UBS AG consolidated was 3.2 percentage points lower
than the quarterly average
LCR of UBS Group AG
consolidated. The difference
mainly reflected the
higher net cash
outflows
of
UBS AG
consolidated
from
intercompany
deposits
and
loans
that
are
not
within
the
Group
consolidation scope but are within the UBS AG
consolidation scope.
The net stable funding ratio
(the NSFR) of UBS AG consolidated
was 1.1 percentage points lower
than the NSFR of
UBS Group
AG
consolidated.
The
difference
primarily
reflected
lower
UBS AG
consolidated
eligible
regulatory
capital as compared to UBS Group AG consolidated.
Comparison between UBS AG consolidated and UBS Group AG consolidated
As of or for the quarter ended 30.9.25
As of or for the quarter ended 30.6.25
As of or for the quarter ended 31.12.24
USD m, except where indicated
UBS AG
consolidated
UBS Group AG
consolidated
Difference
(absolute)
UBS AG
consolidated
UBS Group AG
consolidated
Difference
(absolute)
UBS AG
consolidated
UBS Group AG
consolidated
Difference
(absolute)
Income statement
Total revenues
12,446
12,760
(315)
11,635
12,112
(477)
11,317
11,635
(318)
Credit loss expense / (release)
113
102
11
152
163
(11)
241
229
12
Operating expenses
10,826
9,831
995
10,621
9,756
865
11,017
10,359
658
Operating profit / (loss) before tax
1,507
2,828
(1,320)
862
2,193
(1,331)
59
1,047
(989)
Net profit / (loss)
1,294
2,487
(1,193)
1,198
2,402
(1,205)
(254)
779
(1,034)
Balance sheet
Total assets
1,633,877
1,632,251
1,626
1,671,814
1,669,991
1,823
1,568,060
1,565,028
3,033
Total liabilities
1,538,283
1,542,047
(3,764)
1,576,960
1,580,292
(3,332)
1,473,394
1,479,454
(6,060)
Total equity
95,594
90,204
5,390
94,854
89,699
5,155
94,666
85,574
9,092
Capital, liquidity and funding information
Common equity tier 1 capital
71,460
74,655
(3,194)
69,829
72,709
(2,880)
73,792
71,367
2,425
Going concern capital
91,425
94,950
(3,526)
88,485
91,721
(3,236)
89,623
87,739
1,884
Risk-weighted assets
502,425
504,897
(2,472)
498,327
504,500
(6,172)
495,110
498,538
(3,429)
Common equity tier 1 capital ratio (%)
14.2
14.8
(0.6)
14.0
14.4
(0.4)
14.9
14.3
0.6
Going concern capital ratio (%)
18.2
18.8
(0.6)
17.8
18.2
(0.4)
18.1
17.6
0.5
Total loss-absorbing capacity ratio (%)
37.8
39.5
(1.7)
36.5
37.9
(1.4)
36.7
37.2
(0.5)
Leverage ratio denominator
1,642,843
1,640,464
2,380
1,660,097
1,658,089
2,008
1,523,277
1,519,477
3,799
Common equity tier 1 leverage ratio (%)
4.3
4.6
(0.2)
4.2
4.4
(0.2)
4.8
4.7
0.1
Liquidity coverage ratio (%)
1
179.0
182.1
(3.2)
179.4
182.3
(2.9)
186.1
188.4
(2.3)
Net stable funding ratio (%)
118.6
119.7
(1.1)
120.9
122.4
(1.5)
124.1
125.5
(1.4)
1 The disclosed ratios represent quarterly averages for the quarters presented and are calculated based on an average of 65 data
points in the third quarter of 2025, 61 data points in the second quarter of 2025 and
64 data points in the
fourth quarter of 2024.
Refer to the “Liquidity
and funding management” section
of the UBS Group third
quarter 2025 report, available
under “Quarterly reporting” at
ubs.com/investors, for
more information.
UBS AG third quarter 2025 report |
Appendix
69
Appendix
Alternative performance measures
An alternative performance measure (an APM) is a financial measure of historical or
future financial performance,
financial position
or cash
flows other
than a
financial measure
defined or
specified in
the applicable
recognized
accounting standards or in
other applicable regulations. A
number of APMs
are reported in
the discussion of
the
financial and operating performance of
the external reports (annual, quarterly
and other reports). APMs
are used
to provide
a more
complete
picture of
operating
performance and
to reflect
management’s
view of
the fundamental
drivers
of
the
business
results. A
definition
of
each
APM,
the
method
used
to
calculate
it
and
the
information
content are presented in alphabetical order
in the table below. These APMs may
qualify as non-GAAP measures as
defined by US Securities and Exchange Commission
(SEC) regulations.
APM label
Calculation
Information content
Cost / income ratio (%)
Calculated as operating expenses divided by
total
revenues.
This measure provides information about the
efficiency of the business by comparing operating
expenses with total revenues.
Cost of credit risk
1
(bps)
Calculated as total credit loss expense / (release)
(annualized for reporting periods shorter than
12 months) divided by the average balance
of lending
assets for the reporting period, expressed in basis
points. Lending assets include the gross amounts
of
Amounts due from banks and Loans and advances
to
customers.
This measure provides information about the total
credit loss expense / (release) incurred in relation to
the average balance of gross lending assets for the
period.
Credit-impaired lending assets as a
percentage of total lending assets,
gross (%)
Calculated as credit-impaired lending assets divided
by total lending assets. Lending assets includes
the
gross amounts of Amounts due from banks and
Loans and advances to customers. Credit-impaired
lending assets refers to the sum of stage 3 and
purchased credit-impaired positions.
This measure provides information about the
proportion of credit-impaired lending assets in the
overall portfolio of gross lending assets.
Credit-impaired loan portfolio as a
percentage of total loan portfolio,
gross (%)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as credit-impaired loan portfolio divided
by
total gross loan portfolio.
This measure provides information about the
proportion of the credit-impaired loan portfolio in the
total gross loan portfolio.
Fee-generating assets (USD)
– Global Wealth Management
Calculated as the sum of discretionary and
nondiscretionary wealth management portfolios
(mandate volume) and assets where generated
revenues are predominantly of a recurring nature, i.e.
mainly investment, mutual, hedge and private-market
funds where we have a distribution agreement,
including client commitments into closed-ended
private-market funds from the date that recurring
fees are charged. Assets related to our Global
Financial Intermediaries business are excluded, as
are
assets of sanctioned clients.
This measure provides information about the volume
of invested assets that create a revenue stream,
whether as a result of the nature of the contractual
relationship with clients or through the fee structure
of the asset. An increase in the level of fee-generating
assets results in an increase in the associated revenue
stream. Assets of sanctioned clients are excluded from
fee-generating assets.
Gross margin on invested assets
1
(bps)
– Asset Management
Calculated as total revenues (annualized for reporting
periods shorter than 12 months) divided by
average
invested assets.
This measure provides information about the total
revenues of the business in relation to invested assets.
Integration-related expenses (USD)
Generally include costs of internal staff
and
contractors substantially dedicated to integration
activities, retention awards, redundancy costs,
incremental expenses from the shortening of useful
lives of property, equipment and software, and
impairment charges relating to these assets.
Classification as integration-related expenses does
not
affect the timing of recognition and measurement of
those expenses or the presentation thereof in the
income statement. Integration-related expenses
incurred by Credit Suisse also included expenses
associated with restructuring programs that existed
prior to the acquisition.
This measure provides information about expenses
that are temporary, incremental and directly related to
the integration of Credit Suisse into UBS.
UBS AG third quarter 2025 report |
Appendix
70
APM label
Calculation
Information content
Invested assets (USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management
Calculated as the sum of managed fund
assets,
managed institutional assets, discretionary and
advisory wealth management portfolios, fiduciary
deposits, time deposits, savings accounts,
and wealth
management securities or brokerage accounts.
This measure provides information about the volume
of client assets managed by or deposited with
UBS for
investment purposes.
Net interest margin
1
(bps)
– Personal & Corporate Banking
Calculated as net interest income (annualized for
reporting periods shorter than 12 months) divided by
average loans.
This measure provides information about the
profitability of the business by calculating the
difference between the price charged for lending and
the cost of funding, relative to loan value.
Net new assets (USD)
– Global Wealth Management
Calculated as the net amount of inflows and
outflows
of invested assets (as defined in UBS policy) recorded
during a specific period, plus interest and dividends.
Excluded from the calculation are movements due to
market performance, foreign exchange translation,
fees, and the effects on invested assets of strategic
decisions by UBS to exit markets or services.
This measure provides information about the
development of invested assets during a
specific
period as a result of net new asset flows, plus the
effect of interest and dividends.
Net new assets growth rate (%)
– Global Wealth Management
Calculated as the net amount of inflows and
outflows
of invested assets (as defined in UBS policy) recorded
during a specific period (annualized for reporting
periods shorter than 12 months), plus
interest and
dividends, divided by total invested assets
at the
beginning of the period.
This measure provides information about the growth
of invested assets during a specific period
as a result
of net new asset flows.
Net new deposits (USD)
– Global Wealth Management
Calculated as the net amount of inflows and
outflows
of deposits recorded during a specific period. Deposits
include customer deposits and customer brokerage
payables. Excluded from the calculation are
movements due to fair value measurement, foreign
exchange translation, accrued interest and fees,
as
well as the effects on customer deposits of strategic
decisions by UBS to exit markets or services.
This measure provides information about the
development of deposits during a specific period
as a
result of net new deposit flows.
Net new fee-generating assets (USD)
– Global Wealth Management
Calculated as the net amount of fee-generating
asset
inflows and outflows, including dividend
and interest
inflows into mandates and outflows from mandate
fees paid by clients during a specific period.
Excluded
from the calculation are the effects on fee-generating
assets of strategic decisions by UBS to exit
markets or
services.
This measure provides information about the
development of fee-generating assets during
a
specific period as a result of net flows, excluding
movements due to market performance and
foreign
exchange translation, as well as the effects on fee-
generating assets of strategic decisions by UBS
to exit
markets or services.
Net new loans (USD)
– Global Wealth Management
Calculated as the net amount of originations,
drawdowns and repayments of loans recorded during
a specific period. Loans include loans and
advances to
customers and customer brokerage receivables.
Excluded from the calculation are allowances,
movements due to fair value measurement and
foreign exchange translation,
as well as the effects on
loans and advances to customers of strategic
decisions by UBS to exit markets or services.
This measure provides information about the
development of loans during a specific period
as a
result of net new loan flows.
Net new money (USD)
– Global Wealth Management,
Asset Management
Calculated as the net amount of inflows and
outflows
of invested assets (as defined in UBS policy) recorded
during a specific period. Excluded from the calculation
are movements due to market performance, foreign
exchange translation, dividends, interest and fees,
as
well as the effects on invested assets of strategic
decisions by UBS to exit markets
or services. Net new
money is not measured for Personal & Corporate
Banking.
This measure provides information about the
development of invested assets during a
specific
period as a result of net new money flows.
Net profit growth (%)
Calculated as the change in net profit attributable
to
shareholders from continuing operations between
current and comparison periods divided by net profit
attributable to shareholders from continuing
operations of the comparison period.
This measure provides information about profit
growth since the comparison period.
Operating expenses (underlying)
(USD)
Calculated by adjusting operating expenses
as
reported in accordance with IFRS Accounting
Standards for items that management believes
are
not representative of the underlying performance of
the businesses.
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.
Operating profit / (loss) before tax
(underlying) (USD)
Calculated by adjusting operating profit / (loss) before
tax as reported in accordance with IFRS Accounting
Standards for items that management believes
are
not representative of the underlying performance of
the businesses.
This measure provides information about the amount
of operating profit / (loss) before tax, while excluding
items that management believes are not
representative of the underlying performance of the
businesses.
UBS AG third quarter 2025 report |
Appendix
71
APM label
Calculation
Information content
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 underlying net
profit
before tax attributable to shareholders from
continuing operations between current and
comparison periods divided by underlying
net profit
before tax attributable to shareholders from
continuing operations of the comparison period.
Underlying net profit before tax attributable to
shareholders from continuing operations excludes
items that management believes are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about pre-tax
profit growth since the comparison period, while
excluding items that management believes
are not
representative of the underlying performance of the
businesses.
Recurring net fee income
(USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as the total of fees for services provided
on
an ongoing basis, such as portfolio management
fees,
asset-based investment fund fees and custody
fees,
which are generated on client assets, and
administrative fees for accounts.
This measure provides information about the amount
of recurring net fee income.
Return on attributed equity
1
(%)
Calculated as business division operating profit before
tax (annualized for reporting periods shorter than
12 months) divided by average attributed
equity.
This measure provides information about the
profitability of the business divisions in relation to
attributed equity.
Return on common equity tier 1
capital
1
(%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average common equity
tier 1
capital.
This measure provides information about the
profitability of the business in relation to common
equity tier 1 capital.
Return on equity
1
(%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average equity attributable
to
shareholders.
This measure provides information about the
profitability of the business in relation to equity.
Return on tangible equity
1
(%)
Calculated as net profit attributable to shareholders
(annualized for reporting periods shorter than
12 months) divided by average equity attributable
to
shareholders less average goodwill and intangible
assets.
This measure provides information about the
profitability of the business in relation to tangible
equity.
Revenues over leverage ratio
denominator, gross
1
(%)
Calculated as total revenues (annualized for reporting
periods shorter than 12 months) divided by the
average leverage ratio denominator.
This measure provides information about the revenues
of the business in relation to the leverage ratio
denominator.
Tangible book value per share
(USD)
Calculated as equity attributable to shareholders less
goodwill and intangible assets divided by the
number
of shares outstanding.
This measure provides information about tangible net
assets on a per-share basis.
Total book value per share
(USD)
Calculated as equity attributable to shareholders
divided by the number of shares outstanding.
This measure provides information about net assets
on a per-share basis.
Total revenues (underlying)
(USD)
Calculated by adjusting total revenues as reported in
accordance with IFRS
Accounting Standards for items
that management believes are not representative of
the underlying performance of the businesses.
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.
Underlying net interest income
(USD)
– Global Wealth Management,
Personal & Corporate Banking
Calculated by adjusting net interest income
as
reported in accordance with IFRS
Accounting
Standards for items that management believes
are
not representative of the underlying performance of
the businesses.
This measure provides information about the amount
of net interest income, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
UBS AG third quarter 2025 report |
Appendix
72
APM label
Calculation
Information content
Underlying net profit growth (%)
Calculated as the change in underlying net
profit
attributable to shareholders from continuing
operations between current and comparison periods
divided by underlying net profit attributable to
shareholders from continuing operations of the
comparison period. Underlying net profit attributable
to shareholders from continuing operations excludes
items that management believes are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about profit
growth since the comparison period, while excluding
items that management believes are not
representative of the underlying performance of the
businesses.
Underlying return on attributed equity
1
(%)
Calculated as underlying business division
operating
profit before tax (annualized for reporting periods
shorter than 12 months) (as defined above)
divided by
average attributed equity.
This measure provides information about the
profitability of the business divisions in relation to
attributed equity, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Underlying return on common equity
tier 1 capital
1
(%)
Calculated as underlying net profit attributable to
shareholders (annualized for reporting periods shorter
than 12 months) divided by average common
equity
tier 1 capital. Underlying net profit attributable to
shareholders excludes items that management
believes are not representative of the underlying
performance of the businesses and also excludes
related tax impact.
This measure provides information about the
profitability of the business in relation to common
equity tier 1 capital, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Underlying return on tangible equity
1
(%)
Calculated as underlying 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. Underlying net profit attributable
to
shareholders excludes items that management
believes are not representative of the underlying
performance of the businesses and also excludes
related tax impact.
This measure provides information about the
profitability of the business in relation to tangible
equity, while excluding items that management
believes are not representative of the underlying
performance of the businesses.
1
Profit or loss information for
each of the third quarter
of 2025, the second
quarter of 2025, the
fourth quarter of 2024
and the third quarter of
2024 is based entirely
on consolidated data following the
merger of
UBS AG and Credit Suisse AG and for the purpose of the calculation of return measures has
been annualized by multiplying such by four.
Profit or loss information for the first nine months of 2025 is based entirely on
consolidated data following the merger of UBS AG and
Credit Suisse AG and for the purpose of the calculation of
return measures has been annualized by dividing such
by three and then multiplying by four.
Profit or
loss information for
the first nine
months of 2024
is presented on
a consolidated basis,
including Credit Suisse AG
data for four
months
(June to September
2024), and for
the purpose of
the calculation of
return
measures has been annualized by dividing such by three and then multiplying by four.
This is a general list of the APMs used in our
financial reporting. Not all of the APMs
listed above may appear in
this particular report.
UBS AG third quarter 2025 report |
Appendix
73
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
DisO-FINMA
FINMA Ordinance on the
Disclosure Obligations of
Banks and Securities Firms
DM
discount margin
DOJ
US Department of Justice
DTA
deferred tax asset
DVA
debit valuation adjustment
E
EAD
exposure at default
EB
Executive Board
EC
European Commission
ECB
European Central Bank
ECL
expected credit loss
EGM
Extraordinary General
Meeting of shareholders
EIR
effective interest rate
EL
expected loss
EMEA
Europe, Middle East and
Africa
EOP
Equity Ownership Plan
EPS
earnings per share
ESG
environmental, social and
governance
ETD
exchange-traded derivatives
ETF
exchange-traded fund
EU
European Union
EUR
euro
EURIBOR
Euro Interbank Offered Rate
EVE
economic value of equity
EY
Ernst & Young Ltd
F
FCA
UK Financial Conduct
Authority
FDIC
Federal Deposit Insurance
Corporation
FINMA
Swiss Financial Market
Supervisory Authority
FMIA
Swiss Financial Market
Infrastructure Act
FRTB
Fundamental Review of the
Trading Book
FSB
Financial Stability Board
FTA
Swiss Federal Tax
Administration
FVA
funding valuation
adjustment
FVOCI
fair value through other
comprehensive income
FVTPL
fair value through profit or
loss
FX
foreign exchange
G
GAAP
generally accepted
accounting principles
GBP
pound sterling
GCRG
Group Compliance,
Regulatory and Governance
GDP
gross domestic product
GEB
Group Executive Board
GHG
greenhouse gas
GIA
Group Internal Audit
GRI
Global Reporting Initiative
G-SIB
global systemically
important bank
H
HQLA
high-quality liquid assets
I
IA
Internal Audit
IAS
International Accounting
Standards
IASB
International Accounting
Standards Board
IBOR
interbank offered rate
IFRIC
International Financial
Reporting Interpretations
Committee
IFRS
accounting standards
Accounting
issued by the IASB
Standards
IRB
internal ratings-based
IRRBB
interest rate risk in the
banking book
ISDA
International Swaps and
Derivatives Association
ISIN
International Securities
Identification Number
UBS AG third quarter 2025 report |
Appendix
74
Abbreviations frequently used in our financial reports (continued)
K
KRT
Key Risk Taker
L
LAS
liquidity-adjusted stress
LCR
liquidity coverage ratio
LGD
loss given default
LIBOR
London Interbank Offered
Rate
LLC
limited liability company
LoD
lines of defense
LRD
leverage ratio denominator
LTIP
Long-Term
Incentive Plan
LTV
loan-to-value
M
M&A
mergers and acquisitions
MRT
Material Risk Taker
N
NII
net interest income
NSFR
net stable funding ratio
NYSE
New York Stock Exchange
O
OCA
own credit adjustment
OCI
other comprehensive
income
OECD
Organisation for Economic
Co-operation and
Development
OTC
over-the-counter
P
PCI
purchased credit impaired
PD
probability of default
PIT
point in time
PPA
purchase price allocation
Q
QCCP
qualifying central
counterparty
R
RBC
risk-based capital
RbM
risk-based monitoring
REIT
real estate investment trust
RMBS
residential mortgage-
backed securities
RniV
risks not in VaR
RoCET1
return on CET1 capital
RoU
right-of-use
rTSR
relative total shareholder
return
RWA
risk-weighted assets
S
SA
standardized approach or
société anonyme
SA-CCR
standardized approach for
counterparty credit risk
SAR
Special Administrative
Region of the People’s
Republic of China
SDG
Sustainable Development
Goal
SEC
US Securities and Exchange
Commission
SFT
securities financing
transaction
SIBOR
Singapore Interbank
Offered Rate
SICR
significant increase in credit
risk
SIX
SIX Swiss Exchange
SME
small and medium-sized
entities
SMF
Senior Management
Function
SNB
Swiss National Bank
SOR
Singapore Swap Offer Rate
SPPI
solely payments of principal
and interest
SRB
systemically relevant bank
SVaR
stressed value-at-risk
T
TBTF
too big to fail
TCFD
Task
Force on Climate-
related Financial Disclosures
TIBOR
Tokyo
Interbank Offered
Rate
TLAC
total loss-absorbing capacity
TTC
through the cycle
U
USD
US dollar
V
VaR
value-at-risk
VAT
value added tax
This is a
general list
of the
abbreviations frequently
used in
our financial
reporting. Not
all of the
listed abbreviations
may appear in this particular report.
UBS AG third quarter 2025 report |
Appendix
75
Information sources
Reporting publications
Annual publications
UBS
AG
Annual
Report
:
Published
in
English,
this
report
provides
descriptions
of:
the
performance
of
UBS AG
(consolidated);
the
strategy
and
performance
of
the
business
divisions
and
Group
functions;
risk,
treasury
and
capital management; corporate governance;
and financial information, including
the financial statements.
Compensation
Report
:
This
report
discusses
the
compensation
framework
and
provides
information
about
compensation for
the Board
of Directors
and the
Group Executive
Board members.
It is
available in
English and
German (
“Vergütungsbericht
”) and represents a component of the UBS
Group Annual Report.
Sustainability Report
: Published
in English,
the Sustainability Report
provides disclosures on
environmental, social
and governance topics related to the UBS Group.
It also provides certain disclosures related to diversity,
equity and
inclusion.
Quarterly publications
Quarterly financial report
: This report provides an
update on performance and strategy (where
applicable) for the
respective quarter. It is available in English.
The annual
and quarterly
publications
are available
in .pdf and
online formats
at
ubs.com/investors
, under
“Financial
information”.
Printed copies, in any language, of the aforementioned
annual publications are no longer provided.
Other information
Website
The “Investor
Relations” website
at
ubs.com/investors
provides the
following information
about UBS:
results-related
news
releases;
financial
information,
including
results-related
filings
with
the
US
Securities
and
Exchange
Commission
(the
SEC);
information
for
shareholders,
including
UBS
dividend
and
share
repurchase
program
information, and for bondholders, including rating agencies reports; the corporate calendar; and presentations by
management for investors and financial analysts. Information is available online in English, with some information
also available in German.
Results presentations
Quarterly
results
presentations
are
webcast
live.
Recordings
of
most
presentations
can
be
downloaded
from
ubs.com/presentations
.
Messaging service
alerts
to
news
about
UBS
can
be
subscribed
for
under
“UBS
News
Alert”
at
ubs.com/global/en/investor-
relations/contact/investor-services.html
. Messages are sent in English, German, French or Italian, with an option to
select theme preferences for such alerts.
Form 20-F and other submissions to the US
Securities and Exchange Commission
UBS files periodic
reports with
and submits
other information
to the
SEC. Principal
among these
filings is the
annual
report on Form 20-F,
filed pursuant to
the US Securities
Exchange Act of 1934.
The filing of
Form 20-F is structured
as a wraparound document. Most
sections of the filing can be satisfied
by referring to the UBS AG Annual
Report.
However, there
is a
small amount
of additional
information in
Form 20-F
that is
not presented
elsewhere and
is
particularly
targeted
at
readers
in
the
US.
Readers
are
encouraged
to
refer
to
this
additional
disclosure.
Any
document that is filed with
the SEC is available on the
SEC’s website:
sec.gov
. Refer to
ubs.com/investors
for more
information.
UBS AG third quarter 2025 report |
Appendix
76
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.
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
evolving conditions 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,
including those related to
litigation, than expected.
Following the failure of
Credit Suisse, Switzerland is
considering significant changes to its
capital, resolution and regulatory
regime, which, if adopted,
would
significantly increase our capital requirements or impose other costs on UBS. These factors create greater uncertainty about forward-looking statements. Other
factors that may
affect UBS’s performance
and ability to
achieve its plans,
outlook and other
objectives also include,
but are not
limited to: (i) the
degree to which
UBS is successful in the execution of its
strategic plans, including its cost reduction and efficiency initiatives and
its ability to manage its levels of
risk-weighted
assets (RWA) and leverage ratio denominator (LRD), liquidity coverage ratio and other financial
resources, including changes in RWA assets and liabilities arising
from higher market volatility and the size of the combined Group; (ii) the degree to which
UBS is successful in implementing changes to its businesses to meet
changing market, regulatory and other conditions,
including any potential changes to banking examination and oversight practices
and standards as a result of
executive branch orders
or staff interpretations
of law in
the US; (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,
including as
affected by the
marketability
of a
current additional tier
one debt instrument,
to meet requirements
for debt eligible
for total loss-absorbing capacity
(TLAC); (vi) changes in
and potential
divergence between central bank
policies or the implementation
of financial legislation and regulation
in Switzerland, the US, the
UK, the EU and other financial
centers that have
imposed, or resulted
in, or may
do so in
the future, more
stringent or entity-specific
capital, TLAC, leverage ratio,
net stable funding ratio,
liquidity and
funding requirements,
heightened operational
resilience requirements,
incremental tax
requirements, additional
levies, limitations
on permitted
activities, constraints on remuneration, constraints
on transfers of capital and liquidity
and sharing of operational costs
across the Group or other measures, and
the effect these will or would have on UBS’s business activities; (vii) UBS’s
ability to successfully implement resolvability and related regulatory requirements and
the potential need
to make further
changes to the
legal structure or
booking model
of UBS in
response to legal
and regulatory requirements
including heightened
requirements and expectations
due to its
acquisition of the
Credit Suisse Group; (viii) UBS’s
ability to maintain
and improve its systems
and controls for complying
with sanctions in
a timely manner
and for
the detection and
prevention of money
laundering to meet
evolving regulatory requirements
and expectations, in
particular in
the current
geopolitical turmoil; (ix) the
uncertainty arising
from domestic
stresses in
certain major
economies; (x) changes
in UBS’s
competitive
position, including whether differences in regulatory capital
and other requirements among the major financial centers
adversely affect UBS’s ability to compete
in certain lines
of business; (xi) changes in
the standards of conduct
applicable to its
businesses that may result
from new regulations
or new enforcement of
existing standards, including measures
to impose new
and enhanced duties when
interacting with customers and
in the execution
and handling of
customer
transactions; (xii) the
liability to which
UBS may be
exposed, or possible
constraints or
sanctions that regulatory
authorities might impose
on UBS, due
to litigation,
including litigation
it has
inherited by
virtue of
the acquisition
of Credit
Suisse, contractual
claims and
regulatory investigations,
including the
potential for
disqualification from
certain businesses,
potentially large
fines or
monetary penalties,
or the
loss of
licenses or
privileges as
a
result of
regulatory or
other
governmental sanctions, as well
as the effect that litigation, regulatory
and similar matters have on
the operational risk component
of its RWA; (xiii) UBS’s ability
to retain and attract the
employees necessary to generate revenues and to manage,
support and control its businesses, which may
be affected by competitive
factors; (xiv) changes in accounting or tax standards or policies, and determinations or interpretations affecting the recognition of gain or loss, the valuation of
goodwill, the
recognition of deferred
tax assets and
other matters; (xv) UBS’s
ability to
implement new technologies
and business methods,
including digital
services, artificial intelligence and other technologies, and ability to successfully compete with both existing and new financial service providers, some of which
may not be regulated to the same extent; (xvi) limitations on the effectiveness of UBS’s internal processes for risk management, risk control, measurement and
modeling, and
of
financial models
generally; (xvii) the
occurrence of
operational failures,
such as
fraud, misconduct,
unauthorized trading,
financial crime,
cyberattacks, data leakage and systems failures, the risk of which is increased with persistently high levels of cyberattack threats;
(xviii) restrictions on the ability
of UBS Group AG, UBS AG and regulated
subsidiaries of UBS AG to make
payments or distributions, including
due to restrictions on the ability of
its subsidiaries
to make loans or distributions, directly or indirectly, or, in the case of financial difficulties, due to the exercise by FINMA or the regulators of UBS’s operations in
other countries of their broad statutory powers in relation to protective measures, restructuring and liquidation proceedings;
(xix) the degree to which changes
in regulation, capital or
legal structure, financial results
or other factors may
affect UBS’s ability
to maintain its stated
capital return objective; (xx) uncertainty
over the scope of actions that may be required by UBS, governments and others for UBS to achieve goals relating to climate, environmental and social matters,
as well as the
evolving nature of
underlying science
and industry and
the increasing divergence
among regulatory regimes;
(xxi) the ability
of UBS to
access capital
markets; (xxii) the
ability of UBS
to successfully recover
from a disaster
or other business
continuity problem due
to a hurricane,
flood, earthquake,
terrorist attack,
war, conflict, pandemic, security
breach, cyberattack, power
loss, telecommunications
failure or other
natural or man-made
event; and (xxiii) the
effect that these
or other factors or
unanticipated events, including media reports and speculations, may
have on its reputation
and the additional consequences that
this may
have on its business and performance. The sequence in which the factors
above are presented is not indicative of their likelihood of occurrence or the potential
magnitude of their
consequences. UBS’s
business and financial
performance could be
affected by other
factors identified in
its past and
future filings and
reports,
including those
filed with
the US
Securities and
Exchange Commission
(the SEC).
More detailed
information about
those factors
is set
forth in
documents
furnished by UBS
and filings made
by UBS with
the SEC, including
the UBS Group
AG and UBS
AG Annual Reports
on Form 20-F
for the year
ended 31 December
- UBS is not under any obligation to (and expressly disclaims any obligation to) update or
alter its forward-looking statements, whether as a result of new
information, future events, or otherwise.
Rounding |
Numbers presented throughout this report may not add up
precisely to the totals provided in the tables and text.
Percentages and percent changes
disclosed in text and tables are
calculated on the basis of unrounded
figures. Absolute changes between reporting periods disclosed in
the text, which can be
derived from numbers presented in related tables, are calculated on
a rounded basis.
Tables |
Within tables, blank fields generally indicate non-applicability or that presentation of any content would not be meaningful, or that information is not
available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis.
Values
that are zero on a rounded basis can be either negative
or positive on an actual basis.
Websites |
In this report, any
website addresses are provided
solely for information
and are not intended
to be active links.
UBS is not incorporating
the contents
of any such websites into this report.
UBS AG
PO Box, CH-8098 Zurich
PO Box, CH-4002 Basel
ubs.com
This
Form 6-K
is
hereby incorporated
by reference
into (1)
the
registration statements
of
UBS AG
on
Form
F-3
(Registration Number 333-283672),
and into each
prospectus outstanding
under the foregoing
registration statement,
(2)
any
outstanding
offering
circular
or
similar
document
issued
or
authorized
by
UBS
AG
that
incorporates
by
reference any Forms 6-K
of UBS AG
that are incorporated
into its registration statements
filed with the SEC,
and (3)
the base prospectus of Corporate Asset Backed Corporation (“CABCO”)
dated June 23, 2004 (Registration Number
333-111572),
the
Form
8-K
of
CABCO
filed
and
dated
June
23,
2004
(SEC
File
Number
001-13444),
and
the
Prospectus
Supplements
relating
to
the
CABCO
Series
2004-101
Trust
dated
May
10,
2004
and
May
17,
2004
(Registration Number 033-91744 and 033-91744-05).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
UBS AG
By:
/s/ Sergio Ermotti
_
Name:
Sergio Ermotti
Title:
President of the Executive Board
By:
/s/ Todd Tuckner
_
Name:
Todd Tuckner
Title:
Chief Financial Officer
By:
/s/ Steffen Henrich
______________
Name:
Steffen Henrich
Title:
Controller
Date:
November 4, 2025