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: August 28, 2025
UBS Group AG
(Registrant's Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
(Address of principal executive office)
Commission File Number: 1-36764
UBS AG
(Registrant's Name)
Bahnhofstrasse 45, 8001 Zurich, Switzerland
Aeschenvorstadt 1, 4051 Basel, Switzerland
(Address of principal executive offices)
Commission File Number: 1-15060
Indicate by check mark whether the registrants file or will file annual
reports under cover of Form 20-F or Form
40-
F.
Form 20-F
☒
Form 40-F
☐
This Form 6-K consists of the
30 June 2025 Pillar 3 Report
of UBS Group and significant
regulated subsidiaries and
sub-groups, which appears immediately following this page.
Pillar 3 Report
30 June 2025
UBS Group and significant regulated subsidiaries
and sub-groups
Terms used in this report, unless the context requires
otherwise
“UBS”, “UBS Group”, “UBS Group
AG consolidated”, “Group”, “the
Group”, “we”, “us” and
“our”
UBS Group AG and its consolidated subsidiaries
“UBS AG” and “UBS
AG consolidated”
UBS AG and its consolidated subsidiaries
“Credit Suisse Group“ and “Credit Suisse”
Pre-acquisition Credit Suisse Group
“UBS Group AG” and “UBS
Group AG standalone”
UBS Group AG on a standalone basis
“UBS AG standalone”
UBS AG on a standalone basis
“UBS Switzerland AG” and “UBS
Switzerland AG standalone”
UBS Switzerland AG on a standalone basis
“UBS Europe SE consolidated”
UBS Europe SE and its consolidated subsidiaries
“UBS Americas Holding LLC” and
“UBS Americas Holding LLC consolidated”
UBS Americas Holding LLC and its consolidated subsidiaries
“Credit Suisse International standalone”
Credit Suisse International 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.
Table of contents
UBS Group
2
Section 1
Introduction and basis for preparation
6
Section 2
Key metrics
8
Section 3
Overview of risk-weighted assets
14
Section 4
Credit risk
25
Section 5
Counterparty credit risk
30
Section 6
Credit valuation adjustment
31
Section 7
Securitizations
35
Section 8
Market risk
36
Section 9
Going and gone concern requirements
and eligible capital
42
Section 10
Total
loss-absorbing capacity
44
Section 11
Leverage ratio
46
Section 12
Liquidity and funding
50
Section 13
Requirements for global systemically
important banks and related indicators
Significant regulated subsidiaries and sub-groups
51
Section 1
Introduction
52
Section 2
UBS AG consolidated
56
Section 3
UBS AG standalone
60
Section 4
UBS Switzerland AG standalone
64
Section 5
UBS Europe SE consolidated
65
Section 6
UBS Americas Holding LLC consolidated
67
Section 7
Credit Suisse International standalone
Appendix
69
Abbreviations frequently used in our financial reports
71
Cautionary statement
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
mediarelations@ubs.com
London +44-20-7567-4714
ubs-media-relations@ubs.com
New York +1-212-882-5858
mediarelations@ubs.com
Hong Kong SAR +852-2971-8200
sh-mediarelations-ap@ubs.com
Office of the Group Company
Secretary
The Group Company Secretary
handles inquiries directed to the
Chairman or to other members
of the Board of Directors.
UBS Group AG, Office of the
Group Company Secretary
PO Box, CH-8098 Zurich, Switzerland
sh-company-secretary@ubs.com
Zurich +41-44-235-6652
Shareholder Services
UBS’s Shareholder Services team,
a unit of the Group Company
Secretary’s office, manages
relationships with shareholders and
the registration of UBS Group AG
registered shares.
UBS Group AG, Shareholder Services
PO Box, CH-8098 Zurich, Switzerland
sh-shareholder-services@ubs.com
Zurich +41-44-235-6652
US Transfer Agent
For global registered share-related
inquiries in the US.
Computershare Trust Company NA
PO Box 43006
Providence, RI, 02940-3006, USA
Shareholder online inquiries:
www.computershare.com/us/
investor-inquiries
Shareholder website:
computershare.com/investor
Calls from the US
+1-866-305-9566
Calls from outside the US
+1-781-575-2623
TDD for hearing impaired
+1-800-231-5469
TDD for foreign shareholders
+1-201-680-6610
Imprint
Publisher: UBS Group AG, Zurich, Switzerland | ubs.com
Language: English
© UBS 2025. The key symbol and UBS are among
the registered and
unregistered trademarks of UBS. All rights reserved.
30 June 2025 Pillar 3 Report |
UBS Group | Introduction and basis for
preparation
2
UBS Group
Introduction and basis for preparation
Scope of Basel III Pillar 3 disclosures
The
Basel
Committee
on
Banking
Supervision
(the
BCBS)
final
Basel III
capital
adequacy
framework
consists
of
three
complementary pillars. Pillar 1 provides a framework for measuring minimum capital requirements
for the credit, market
and operational risks faced by banks. Pillar 2 addresses the principles of
the supervisory review process, emphasizing the
need
for
a
qualitative
approach
to supervising
banks. Pillar
3 requires
banks to
publish a
range
of
disclosures,
mainly
covering risk, capital, leverage, liquidity and remuneration.
This
report
provides
Pillar 3
disclosures
for
the
UBS
Group
and
prudential
key
figures
and
regulatory
information
for
UBS AG consolidated and standalone,
UBS Switzerland AG standalone,
UBS Europe SE consolidated,
and UBS Americas
Holding LLC consolidated,
as well as Credit
Suisse International standalone
in the respective
sections under “Significant
regulated subsidiaries and sub-groups”.
This
Pillar 3
report
has
been
prepared
in
accordance
with
the
Swiss
Financial
Market
Supervisory
Authority
(FINMA)
Ordinance on the Disclosure Obligations of Banks
and Securities Firms (the DisO-FINMA),
the corresponding explanatory
notes, and the underlying BCBS
Basel framework disclosure requirements.
The revised Capital Adequacy
Ordinance (the
CAO) that
incorporates
the
final Basel
III standards
into
Swiss law,
and the
five
new
FINMA ordinances
(including
the
DisO-FINMA) that contain
the implementing
provisions for
the revised CAO,
entered into force
on 1 January
- The
DisO-FINMA
replaces
FINMA
Circular
2016/1
“Disclosure
–
banks”
and
incorporates
in
particular
new
and
revised
disclosure tables on risks and capital requirements.
As UBS
is a
systemically relevant
bank (an
SRB) under
Swiss banking
law,
UBS Group
AG and
UBS AG are
required
to
comply with regulations based on the final Basel
III framework as applicable to Swiss SRBs on a consolidated
basis.
Local
regulators
may
also
require
the
publication
of
Pillar 3
information
at
a
subsidiary
or
sub-group
level.
Where
applicable, these local disclosures
are provided under
“Holding company and significant
regulated subsidiaries and sub-
groups” at
ubs.com/investors
.
Changes to Pillar 3 disclosure requirements
The
DisO-FINMA
includes
new
and
revised
semi-annual
tables
as
a
result
of
the
implementation
of
the
final
Basel III
standards in
Switzerland. Certain
semi-annual tables
required under
FINMA Circular
2016/1 “Disclosure
– banks” have
been discontinued,
as they are no longer required
under the DisO-FINMA.
›
Refer to “Changes to Pillar 3 disclosure requirements” in the
“Introduction and basis for preparation” section of the 31
March
2025 Pillar 3 Report, available under “Pillar 3 disclosures”
at
ubs.com/investors
, for more information about new and revised
quarterly tables as a result of the implementation
of the final Basel III standards in Switzerland
New semi-annual tables
The following new tables have been introduced on a
semi-annual basis.
–
CMS2: Comparison of modelled and standardized RWA for
credit risk at asset class level
–
CVA2: The full basic approach for CVA (BA-CVA)
–
CVA3: The standardized approach for CVA (SA-CVA)
–
ENC: Asset encumbrance
The new
“CVA1: The
reduced
basic approach
for
CVA (BA-CVA)”
semi-annual
table
is not
applicable
to UBS,
as UBS
applies
the
full
basic
credit
valuation
adjustment
(CVA)
approach.
Furthermore,
UBS
does
not
apply
the
simplified
standardized approach for
market risk, therefore
the new
“MR3: Market risk
under the simplified
standardized approach”
semi-annual table is not applicable to UBS.
30 June 2025 Pillar 3 Report |
UBS Group | Introduction and basis for
preparation
3
Revised semi-annual tables
The DisO-FINMA
includes an
amended definition
of asset
classes, affecting
the following
semi-annual tables.
For these
revised tables UBS does not disclose comparative
information.
–
CR4: Standardized approach – credit risk exposure and credit
risk mitigation (CRM) effects
–
CR5: Standardized approach – exposures by asset classes and risk weights
–
CR5:
Exposure
amounts
and
CCFs
applied
to
off-balance
sheet
exposures,
categorised
based
on
risk
bucket
of
converted exposures
–
CR6: IRB
– Credit
risk exposures
by portfolio
and PD
range. This
table has
also been
amended to
include the
newly
introduced exposures segments which are subject to the
foundation internal ratings-based (F-IRB) approach.
–
CCR4:
IRB
–
CCR
exposures
by
portfolio
and
PD
scale.
This
table
has
also
been
amended
to
include
the
newly
introduced exposures segments which are subject to the
F-IRB approach.
›
Refer to “Amended FINMA-defined asset classes”
in this section for more information about the amended definition
of asset
classes as a result of the implementation of the final
Basel III standards in Switzerland
In addition, the DisO-FINMA includes the following revised
semi-annual table.
–
MR1: Market risk under standardized approach
Amended FINMA-defined asset classes
The DisO-FINMA includes an amended definition of asset
classes.
Asset classes under the standardized approach
–
Central governments, central banks and supranational organizations
–
Public sector entities
–
Multilateral development banks
–
Banks
–
Covered bonds
–
Corporates
–
Subordinated debt, equity exposures and other capital
instruments
–
Retail
–
Exposures secured by real estate
–
Defaulted exposures
–
Other assets
Asset classes under the advanced internal ratings-based
approach
–
Central governments and central banks and other supranational
organizations
–
Corporates: specialized lending
–
Corporates: other lending
–
Retail: exposures secured by real estate
–
Retail: qualifying revolving retail exposures (QRRE)
–
Retail: other retail
Asset classes under the foundation internal ratings-based
approach
–
Banks
–
Public sector entities (PSEs),
multilateral development banks
–
Large corporates
Discontinued semi-annual tables
The following semi-annual tables have been discontinued, as they
are no longer required under
the DisO-FINMA.
–
CR10: IRB (equities under the simple
risk-weight method). The simple risk-weight
approach is no longer applicable to
UBS. UBS applies the standardized approach for equity exposures.
–
CCR2:
Credit
valuation
adjustment
(CVA)
capital
charge.
This
disclosure
was
replaced
by
the
aforementioned
CVA
disclosures.
–
MR3: IMA values for trading portfolios. With the implementation of
the Fundamental Review of the Trading Book (the
FRTB) framework, this disclosure has been discontinued.
–
MR4: Comparison of
VaR estimates with
gains /
losses. With
the implementation of
the FRTB framework,
this disclosure
has been discontinued.
Significant regulatory developments, disclosure requirements
and other changes
Developments in Switzerland aimed at strengthening financial
stability
In June 2025,
the Swiss Federal
Council published regulatory
proposals that aim
to further
strengthen banking
stability
in
Switzerland
(the
Financial
Stability
Proposals).
Proposed
measures
to
be
submitted
to
the
Swiss
Parliament
for
enactment would
exclude from
common equity
tier 1 (CET1)
capital investments
in foreign
subsidiaries of
systemically
important banks (SIBs), include additional requirements for the recovery and resolution of SIBs, add measures to increase
the potential for
obtaining liquidity via the
Swiss National Bank
(the SNB), introduce a
Senior Managers Regime
for banks,
and provide additional powers for FINMA. Proposed
measures at the ordinance level would exclude capitalized
software
and
deferred
tax
assets
(DTAs)
on
temporary
differences
from
CET1
capital,
add
stricter
requirements
for
prudential
valuation adjustments (PVAs) of
assets and
liabilities, permit the
mandatory suspension of
interest payments for
additional
tier 1 capital instruments in the event of a cumulative loss over
four quarters, and introduce measures that aim to enable
30 June 2025 Pillar 3 Report |
UBS Group | Introduction and basis for
preparation
4
FINMA and other authorities to better assess the situation
of banks in a liquidity crisis.
The Swiss Federal Council plans to start a public consultation in the fall of
2025 on the legislative amendments to capital
requirements related to foreign subsidiaries and has indicated it expects to submit its proposal to the Swiss Parliament in
the first
half of
- Entry
into force
of these
amendments is expected
in 2028, at
the earliest,
and is expected
to be
phased in
over a
period of
at least
six to
eight years.
For the
remaining legislative
amendments, a
consultation draft
is
expected in the first half of 2026, with the Swiss Federal Council’s submission to the Parliament in the first half of 2027.
The entry into force of these amendments is expected
in 2028 or 2029.
The
measures
at
the
ordinance
level,
including
the
capital
treatment
of
capitalized
software
and
DTAs
on
temporary
differences, are in public consultation until September 2025, with the ordinances expected to enter into force in January
2027, at the
earliest. In addition,
a consultation
on amendments to
the Liquidity Ordinance
is expected to
begin in the
first half
of 2026.
The amendments to
be proposed are
expected to set
minimum requirements for
maintaining borrowing
capacity for emergency liquidity assistance.
Based on
financial information
published for
the first
quarter of
2025 and
given UBS AG’s
target CET1
capital ratio
of
between 12.5%
and 13%,
UBS AG would
be required
to hold additional
estimated CET1
capital of
around USD 24bn
on a
pro-forma
basis
if the
recommendations
were
to
be implemented
as
proposed.
This
includes
around
USD 23bn
related to
the full deduction
of UBS AG’s investments
in foreign subsidiaries.
These pro-forma
figures reflect
previously
announced expected capital repatriations of around
USD 5bn.
The
incremental
CET1
capital
of
around
USD 24bn
required
at
UBS AG
would
result
in
a
CET1
capital
ratio
at
the
UBS Group AG (consolidated) level of
around 19%. At
Group level, the
proposed measures related to DTAs on
temporary
differences,
capitalized software
and PVAs
would eliminate
capital recognition
for these
items in
a manner
misaligned
with international standards. This would reduce the CET1 capital ratio for the Group to around 17%, underrepresenting
UBS’s capital strength.
The additional capital of USD
24bn would be in addition
to the previously communicated
incremental capital of around
USD 18bn that UBS
will have to
hold as a
result of
the acquisition
of the Credit
Suisse Group
in order
to meet existing
regulations. This
includes around
USD 9bn to
remove
the regulatory
concessions
granted to
Credit Suisse
and around
USD 9bn to meet the
current progressive requirements due to the increased leverage ratio denominator (LRD)
and higher
market
share
of
the
combined
business.
The
progressive
requirements
for
LRD
and
market
share
are
subject
to
confirmation.
On this basis, UBS would be required to hold around USD 42bn
in additional CET1 capital in total.
Recent developments related to the implementation of the
final Basel III standards
In June 2025,
the European Commission proposed to
delay the implementation of
the FRTB by
another year, to 1 January
- We expect that the overall impact on
UBS will be limited.
In July 2025,
the UK
Prudential Regulatory
Authority published
for consultation
proposals to
delay the
implementation
of the FRTB internal models approach from 1 January 2027 to 1 January 2028. The FRTB regulation for standardized and
advanced standardized approaches will continue to
apply from 1 January 2027. With UBS’s entities
not being subject to
the corresponding UK regulation, we expect that the
overall impact on UBS will be limited.
In Switzerland, the
FRTB became effective
on 1 January 2025,
together with all
other requirements
of the final
Basel III
regulation.
Other developments
Simplification of Pillar 3 disclosures
Starting
with
the
30 June
2025
Pillar 3
Report,
we
have
replaced
the
“SEC2:
Securitization
exposures
in
the
trading
book” semi-annual
table with
a qualitative
statement,
based on
immateriality,
as allowed
by the
DisO-FINMA
general
principles of disclosure.
›
Refer to “Securitization exposures in the banking and
trading books” in the “Securitizations” section of
this report for more
information
30 June 2025 Pillar 3 Report |
UBS Group | Introduction and basis for
preparation
5
Capital returns and targets
On 1 July 2025, we launched a new program to repurchase up to USD 2bn of shares. As previously announced, we plan
to complete
the
repurchase
of up
to USD
2bn of
shares
in the
second
half of
2025.
We
will communicate
our
2026
capital returns
ambitions with
our fourth-quarter
and full-year
financial results
for 2025.
Our share
repurchases will
be
subject to maintaining our CET1 capital ratio target of around 14% and achieving our financial targets. The program we
launched in April
2024 was
closed in May
2025 after
completing the USD
2bn of share
repurchases as
planned. In the
first half of 2025, we repurchased a total
of USD 1bn of shares.
›
Refer to the “Share information and earnings per
share” section of the UBS Group second quarter 2025
report, available under
“Quarterly reporting” at
ubs.com/investors
, for more information
We maintain
our target of
achieving an
underlying return
on CET1
capital of
around 15%
and an
underlying cost / income
ratio of
less than
70% by
the end
of 2026
(both on
an exit
rate basis).
We will
provide an
update on
our longer-term
returns targets
when there
is more clarity
on the timing
of potential changes
and when the
likely final
outcome of the
Financial Stability Proposals becomes more visible.
Frequency and comparability of Pillar 3 disclosures
The
DisO-FINMA
specifies
the
reporting
frequency
for
each
disclosure.
In
line
with
these
FINMA-specified
disclosure
requirements,
including
with
regard
to
comparative
periods,
we
provide
quantitative
comparative
information
as
of
31 March 2025 for disclosures
required on a quarterly
basis and as of
31 December 2024, prepared
in accordance with
FINMA Circular 2016/1 “Disclosure – banks”, for disclosures required on a semi-annual basis. Where specifically required
by FINMA and / or the BCBS, we disclose comparative information
for additional reporting dates.
Where required, movement commentary
is aligned with the corresponding
disclosure frequency required by FINMA
and
always
refers
to
the
latest
comparative
period.
Throughout
this
report,
signposts
are
displayed
at
the
beginning
of
a
section, table
or chart
–
Semi-annual |
Quarterly |
– indicating
whether the
disclosure is
provided semi-annually
or quarterly.
A
triangle symbol –
– indicates the end of the signpost.
›
Refer to the 31 March 2025 Pillar 3 Report, available
under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about
previously published quarterly movement commentary
›
Refer to the 31 December 2024 Pillar 3 Report,
available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
about previously published semi-annual movement commentary
30 June 2025 Pillar 3 Report |
UBS Group | Key metrics
6
Key metrics
Key metrics for the second quarter of 2025
Quarterly |
The KM1 and
KM2 tables below
are based on
the Swiss
Financial Market Supervisory
Authority (FINMA) Ordinance
on the
Disclosure Obligations
of Banks
and Securities
Firms (DisO-FINMA)
rules. The
KM2 table
includes a
reference to
the total loss-absorbing capacity (TLAC) term sheet, published by the Financial Stability Board (the FSB). The FSB provides
this term sheet at fsb.org/2015/11/total-loss-absorbing-capacity
-tlac-principles-and-term-sheet.
Our capital ratio
was stable,
reflecting an increase
in our tier 1
capital,
offset by an
increase in risk-weighted
assets (RWA).
Our
leverage
ratio
decreased,
reflecting
an
increase
in
the
leverage
ratio
denominator
(the
LRD),
partly
offset
by
the
increase in our tier 1 capital.
Our common equity
tier 1 (CET1)
capital increased by USD 3.6bn
to USD 72.7bn, mainly driven
by operating profit
before
tax
of
USD 2.2bn,
foreign
currency
translation
gains
of
USD 2.3bn
and
an
increase
in
eligible
deferred
tax
assets
on
temporary
differences
of
USD 0.4bn,
partly
offset
by
dividend
accruals
of
USD 0.8bn
and
current
tax
expenses
of
USD 0.4bn.
Share repurchases
of USD 0.5bn made
under our 2024
share repurchase program
in the second
quarter of
2025 did not affect our CET1
capital position, as there was an
equal reduction in the capital reserve
for expected future
share repurchases. The 2024 share repurchase program was
completed on 23 May 2025.
Our tier 1 capital increased by USD 3.9bn to USD 91.7bn,
reflecting the aforementioned increase in CET1 capital and an
increase in additional
tier 1 (AT1) capital
of USD 0.3bn,
reflecting positive impacts
from interest rate
risk hedge, foreign
currency translation and other effects.
The TLAC available as of 30 June 2025 included CET1
capital, AT1 capital and non-regulatory capital elements of
TLAC.
Our available TLAC increased by USD 4.0bn to USD 191.2bn, driven by the aforementioned increase in tier 1 capital
and
an increase in non-regulatory capital elements of TLAC of USD 0.1bn.
The increase in non-regulatory capital elements of
TLAC was
mainly due to
new issuances of
TLAC-eligible senior unsecured
debt instruments totaling
USD 3.5bn equivalent
and
positive
impacts
from
interest
rate
risk
hedge,
foreign
currency
translation
and
other
effects.
These
effects
were
largely
offset
by
USD 3.9bn
TLAC-eligible
senior
unsecured
debt
instruments
ceasing
to
be
eligible
as
non-regulatory
capital elements of
TLAC, as they
entered the final
year before maturity
and the call
of USD 3.3bn equivalent
of TLAC-
eligible senior unsecured debt instruments.
During
the
second
quarter
of
2025,
RWA
increased
by
USD 21.2bn
to
USD 504.5bn,
mainly
driven
by
increases
of
USD 18.6bn from credit risk RWA and USD 1.8bn from counterparty credit risk RWA.
The remaining variance was spread
across other risk types.
The LRD increased
by USD 96.5bn to
USD 1,658.1bn, mainly
due to currency
effects of USD 88.1bn
and asset size
and
other movements of USD 8.4bn.
The quarterly
average liquidity
coverage ratio
(the LCR)
of the
UBS Group
increased 1.3 percentage
points to
182.3%,
remaining above the prudential requirement communicated by FINMA.
The movement in the quarterly average LCR was
primarily driven by an increase in high-quality liquid assets of USD 40.0bn to USD 358.8bn, mainly reflecting higher cash
available
due
to
a
decrease
in
funding
for
trading
assets
and
higher
customer
deposits,
partly
offset
by
lower
cash
available
due
to
higher
lending
assets.
The
average
net
cash
outflows
increased
by
USD 20.7bn
to
USD 196.8bn,
reflecting higher outflows from
deposits, lower net
inflows from securities financing
transactions and higher
net outflows
from derivatives.
As
of
30 June
2025,
the
net
stable
funding
ratio
of
the
UBS
Group
decreased
1.8 percentage
points
to
122.4%,
remaining above the
prudential requirement communicated by
FINMA. Available stable funding
increased by USD 43.0bn
to
USD 904.7bn,
mainly
driven
by
increases
in
both
customer
deposits
and
debt
issued
measured
at
amortized
cost,
largely driven by currency effects,
as well as higher regulatory capital.
Required stable funding increased by
USD 45.1bn
to USD 738.9bn,
primarily reflecting an increase in lending assets, which was
also largely due to currency effects.
30 June 2025 Pillar 3 Report |
UBS Group | Key metrics
7
KM1: Key metrics
USD m, except where indicated
30.6.25
31.3.25
31.12.24
30.9.24
30.6.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
72,709
69,152
71,367
74,213
76,104
2
Tier 1
91,721
87,837
87,739
91,024
91,804
3
Total capital
91,721
87,837
87,739
91,025
91,804
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
504,500
483,276
498,538
519,363
511,376
4a
Total risk-weighted assets (pre-floor)
504,500
483,276
4b
Minimum capital requirement
1
40,360
38,662
39,883
41,549
40,910
Risk-based capital ratios as a percentage of RWA
5
Common equity tier 1 ratio (%)
14.41
14.31
14.32
14.29
14.88
5b
Common equity tier 1 ratio (%) (pre-floor)
14.41
14.31
6
Tier 1 ratio (%)
18.18
18.18
17.60
17.53
17.95
6b
Tier 1 ratio (%) (pre-floor)
18.18
18.18
7
Total capital ratio (%)
18.18
18.18
17.60
17.53
17.95
7b
Total capital ratio (%) (pre-floor)
18.18
18.18
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
2.50
2.50
2.50
2.50
2.50
9
Countercyclical buffer requirement (%)
0.13
0.13
0.16
0.17
0.16
9a
Additional countercyclical buffer for Swiss mortgage loans
(%)
0.33
0.31
0.37
0.38
0.33
10
Bank G-SIB and / or D-SIB additional requirements (%)
1.50
1.50
1.00
1.00
1.00
11
Total of bank CET1 specific buffer requirements (%)
2
4.13
4.13
3.66
3.67
3.66
12
CET1 available after meeting the bank’s minimum capital requirements (%)
3
9.91
9.81
9.60
9.53
9.95
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
1,658,089
1,561,583
1,519,477
1,608,341
1,564,201
14
Basel III leverage ratio (%) (including the impact of any applicable
temporary
exemption of central bank reserves)
4
5.53
5.62
5.77
5.66
5.87
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
5.53
5.62
14c
Basel III leverage ratio (%) (including the impact of any applicable
temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
4
5.54
5.60
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
5.54
5.60
14e
Minimum capital requirements
5
49,743
46,848
Liquidity coverage ratio (LCR)
6
15
Total high-quality liquid assets (HQLA)
358,759
318,735
331,481
360,628
378,235
16
Total net cash outflow
196,846
176,190
176,008
181,051
178,452
16a
of which: cash outflows
385,105
362,013
347,761
342,952
342,383
16b
of which: cash inflows
188,259
185,823
171,753
161,901
163,931
17
LCR (%)
182.31
180.96
188.37
199.25
211.99
Net stable funding ratio (NSFR)
18
Total available stable funding
904,703
861,717
856,804
904,295
882,282
19
Total required stable funding
738,891
693,777
682,508
712,773
689,025
20
NSFR (%)
122.44
124.21
125.54
126.87
128.05
1 Calculated as 8% of total RWA,
based on total capital minimum requirements,
excluding CET1 buffer requirements.
2 Excludes non-BCBS capital buffer
requirements for risk-weighted positions that are
directly
or indirectly backed by residential
properties in Switzerland.
3 Represents the CET1 ratio
that is available to meet
buffer requirements. Calculated as the
CET1 ratio minus the BCBS CET1
capital requirement and,
where applicable, minus the BCBS tier
2 capital requirement met with CET1 capital.
4 There is currently no
temporary exemption of central
bank reserves for UBS.
5 The higher of capital
requirements based on
8% RWA or 3% LRD.
6 Calculated after the application of haircuts and inflow and
outflow rates, as well as,
where applicable, caps on Level 2 assets
and cash inflows. Calculated based on
an average of 61 data
points in the second quarter of 2025 and 62 data points in the first quarter of 2025. For the prior-quarter data points, refer to the respective Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors,
for more information.
KM2: Key metrics – TLAC requirements (at resolution group level)
1
USD m, except where indicated
30.6.25
31.3.25
31.12.24
30.9.24
30.6.24
1
Total loss-absorbing capacity (TLAC) available
191,171
187,168
185,395
194,907
197,690
2
Total RWA at the level of the resolution group
504,500
483,276
498,538
519,363
511,376
3
TLAC as a percentage of RWA (%)
37.89
38.73
37.19
37.53
38.66
4
Leverage ratio exposure measure at the level of the resolution group
1,658,089
1,561,583
1,519,477
1,608,341
1,564,201
5
TLAC as a percentage of leverage ratio exposure measure (%)
11.53
11.99
12.20
12.12
12.64
6a
Does the subordination exemption in the antepenultimate
paragraph of
Section 11 of the FSB TLAC Term Sheet apply?
No
6b
Does the subordination exemption in the penultimate paragraph of
Section 11 of the FSB TLAC Term Sheet apply?
No
6c
If the capped subordination exemption applies, the amount of funding
issued that ranks pari passu with excluded liabilities and that is
recognized as external TLAC, divided by funding issued that ranks pari
passu with excluded liabilities and that would be recognized
as external
TLAC if no cap was applied (%)
N/A – Refer to our response to 6b.
1 Resolution group level is defined as the UBS Group AG consolidated level.
30 June 2025 Pillar 3 Report |
UBS Group | Overview of risk-weighted
assets
8
Overview of risk-weighted assets
Overview of RWA and capital requirements
Quarterly |
The OV1
table below
provides an
overview of
our risk-weighted
assets (RWA)
and the
related minimum
capital
requirements by
risk type.
The table
presented is
based on
the respective
Swiss Financial
Market Supervisory
Authority
(FINMA) template and empty rows indicate current non-applicability
to UBS.
During
the
second
quarter
of
2025,
RWA
increased
by
USD 21.2bn
to
USD 504.5bn,
mainly
driven
by
increases
of
USD 18.6bn from credit risk RWA and USD
1.8bn from counterparty credit risk (CCR)
RWA. The remaining variance was
spread across other risk types.
Credit
risk
RWA
increased
by
USD 18.6bn,
mainly
driven
by
increases
of
USD 15.7bn
related
to
currency
effects
and
USD 2.9bn
related
to
asset
size
and
other
movements.
The
movement
in
RWA
attributable
to
model
updates
and
methodology changes
was broadly
neutral.
Asset size
and other
movements increased
by USD 2.9bn,
mainly driven
by
increases in loans to corporate clients and mortgage loans in Personal & Corporate Banking, higher RWA from loans and
loan commitments in Global
Wealth Management,
and higher RWA on
high-quality liquid assets,
partly offset by lower
RWA in Non-core
and Legacy, as a
result of our actions
to actively unwind
exposures, in addition
to the natural
roll-off,
and decreases in loans and loan commitments in the Investment
Bank.
CCR RWA increased
by USD 1.8bn, mainly
driven by increases
of USD 1.3bn related
to currency effects
and USD 0.4bn
related
to
model
and
methodology
changes.
Asset
size
and
other
movements
broadly
remained
unchanged.
Model
updates and methodology changes resulted
in an increase of USD 0.4bn,
primarily related to the decommissioning of
the
Credit Suisse probability of default (PD) model for banks.
RWA from
amounts below
thresholds for
deduction increased
by USD 1.4bn,
primarily due
to currency
effects and
an
increase in deferred tax assets arising from temporary
differences.
›
Refer to the “Introduction and basis for preparation” section
of this report for more information about the regulatory standards
applied
›
Refer to the “Capital management”
section of the UBS Group second quarter 2025 report, available
under
“
Quarterly reporting”
at
ubs.com/investors
, for more information about capital management and RWA, including details regarding movements
in RWA
during the second quarter of 2025
30 June 2025 Pillar 3 Report |
UBS Group | Overview of risk-weighted
assets
9
OV1: Overview of RWA
Section or table
reference
Minimum
capital
requirements
1
USD m, except where indicated
30.6.25
31.3.25
31.12.24
30.6.25
1
Credit risk (excluding counterparty credit risk)
258,111
239,547
235,955
CMS1, CMS2, 4
20,649
2
of which: standardized approach (SA)
61,170
57,511
51,817
CMS2, CR4
4,894
2a
of which: non-counterparty-related risk
2
16,553
15,712
15,667
1,324
3
of which: foundation internal ratings-based (F-IRB) approach
3
38,599
38,171
CR6
3,088
4
of which: supervisory slotting approach
1,638
1,632
1,745
CR10
131
5
of which: advanced internal ratings-based (A-IRB) approach
156,704
142,233
182,393
CR6
12,536
5a
of which: adjustments related to the Swiss sectoral real estate floor
for exposures secured by real
estate in Switzerland
3, 4
6
Counterparty credit risk
5
31,903
30,135
37,182
CMS1, CCR1,
CCR4, CCR8, 5
2,552
7
of which: SA for counterparty credit risk (SA-CCR)
7,708
7,155
8,315
617
8
of which: internal model method (IMM)
13,197
12,684
16,397
CCR7
1,056
8a
of which: value-at-risk (VaR)
6,544
6,358
8,107
CCR7
524
9
of which: other CCR
4,454
3,937
4,364
356
10
Credit valuation adjustment (CVA)
9,904
9,322
8,735
CMS1, 6
792
10a
of which: full basic approach (BA-CVA)
3
5,566
5,066
CVA2
445
10b
of which: standardized approach (SA-CVA)
3
4,338
4,256
CVA3
347
11
Equity positions under the simple risk weight approach during the 5-year
transitional period
6
5,544
12
Equity investments in funds – look-through approach
2,023
2,046
2,400
162
13
Equity investments in funds – mandate-based approach
1,070
1,121
789
86
14
Equity investments in funds – fallback approach
610
456
452
49
15
Settlement risk
243
343
184
19
16
Securitization exposures in banking book
6,529
6,739
7,433
CMS1, 7
522
17
of which: securitization internal ratings-based approach (SEC-IRBA)
3,022
3,550
3,547
7
242
18
of which: securitization external ratings-based approach (SEC-ERBA),
including internal assessment
approach (IAA)
801
971
977
7
64
19
of which: securitization standardized approach (SEC-SA)
2,706
2,219
2,909
7
216
20
Market risk
30,469
31,352
27,189
CMS1, 8
2,438
21
of which: standardized approach (SA)
30,469
31,352
337
MR1
2,438
22
of which: internal models approach (IMA)
26,852
23
Capital charge for switch between trading book and banking book
24
Operational risk
136,394
136,394
145,426
CMS1
10,912
25
Amounts below thresholds for deduction (250% risk weight)
7
27,243
25,820
27,249
2,179
25a
of which: deferred tax assets
18,436
17,553
18,066
1,475
26
Output floor applied (%)
3,8
60
60
27
Floor adjustment (before application of transitional cap)
3,9
28
Floor adjustment (after application of transitional cap)
10
29
Total
504,500
483,276
498,538
40,360
1 Calculated based on 8%
of RWA.
2 Non-counterparty-related risk includes
property, equipment, software
and other items.
3 Disclosure is based on
the final Basel III standards
implemented with effect as of
1 January 2025.
4 The Swiss sectoral
real estate floor is not applicable
at the level of UBS Group
AG consolidated.
5 Excludes settlement risk, which
is separately reported in line
15 “Settlement risk”. Includes
RWA with central counterparties. The
split between the sub-components of counterparty credit
risk refers to the calculation of the exposure measure.
6 The simple risk-weight approach is no
longer applicable at
UBS, and equity positions
in the banking book
are included in row 2.
The 5-year transitional
period is effective as
of 1 January 2025
but is not applicable
to UBS.
7 Includes items subject to
threshold deduction
treatment that do not exceed their respective threshold and are risk weighted at 250%. Items subject to threshold deduction treatment include significant investments
in common shares of non-consolidated financial
institutions (banking, insurance and financial entities)
and deferred tax assets arising from temporary
differences.
8 The overall output floor of
72.5% is subject to a phase-in until
1 January 2028. As of 1 January
2025, the applicable overall output floor at the level of UBS Group AG consolidated is 60%. In 2026 and 2027, the output floor will increase by 5% per year, to 65% and 70%, respectively.
9 FINMA has not opted
to implement a transitional cap that would limit the increase in
RWA to 25% of a bank’s RWA
before the application of the output floor.
10 Of our Basel finalized RWA under the standardized
approach, 60% are
below our actual Basel III finalized RWA. Therefore, the overall
output floor is not binding, and our RWA before and after the effects of the overall output floor are equal.
Comparison of modeled and standardized RWA at risk level
Quarterly |
The CMS1 table compares RWA determined
using models approved by FINMA
with RWA determined under
the
full
standardized
approach.
The
table
also
provides
the
full
standardized
approach
for
RWA
that
are
the
base
of
the
phased-in overall output floor. The
purpose of the overall output
floor is to ensure
that banks’ capital requirements based
on modeled
approaches where
permitted do
not fall
below a
certain percentage
of capital
requirements based
on the
full standardized approach, thereby reducing excessive variability
of RWA and enhancing the comparability of risk-based
capital ratios across banks. The
impact of the output
floor, if applicable, will be
disclosed in the “OV1: Overview
of RWA”
table in rows 27 and 28. The applicable threshold pursuant to the reporting date is
disclosed in row 26 of the OV1 table,
and in column e in the CMS1 table below. The output
floor, which is set at 60% during 2025, will incrementally increase
to a level of 72.5% by 2028. As of 30 June
2025, the floor is not binding at the level
of UBS Group, i.e. the total of our
actual
RWA
shown
in
column
c
in
the
CMS1
table
below
is greater
than
60%
of
the
RWA
calculated
under
the
full
standardized approach shown
in column
e, and
therefore no
adjustment is
required. UBS is
undertaking mitigating actions
with respect to RWA under the standardized approach to minimize a future
floor adjustment required as the level of the
output floor increases.
›
Refer to “Overview of RWA and capital requirements” in this section for information
about the OV1 table
The table
below provides
a summary
of the
key conceptual
differences between
the internal
model approach
and the
standardized approach.
30 June 2025 Pillar 3 Report |
UBS Group | Overview of risk-weighted
assets
10
Key differences between the internal model approach and the standardized approach
Internal model approach
Standardized approach
Key impact
Risk weighting
Reliance on internal ratings where each
counterparty / transaction receives a rating.
Reliance on external credit assessment institutions
where allowed in the regulatory framework.
Modelled approach produces RWA that is more risk
sensitive.
Granular risk-sensitive risk weights differentiation
via individual PD and loss given default (LGD) for
mortgages.
Less granular risk weights based on loan-to-value
(LTV)
bands for mortgages.
The Group’s residential mortgage portfolio is
focused on the Swiss market, and the Group has
robust review processes in place concerning
borrowers’ ability to repay. This results in the
Group’s residential mortgage portfolio having a low
average LTV and results in an average risk weight
of around 20% under the advanced IRB (A-IRB)
approach.
Modeled LGD captures transaction quality
features incl. collateralization. Under the
foundation internal ratings-based (F-IRB)
approach, the LGD values are calculated based
on the rules set by regulatory authorities. This is
applicable for banks and large corporates.
No differentiation for transaction features (except
where claim is subordinated).
Impact relevant across all asset classes.
Credit risk mitigation
Credit risk mitigation recognized via risk-sensitive
LGD or exposure at default (EAD).
Limited recognition of credit risk mitigation.
Standardized approach RWA is higher than
modeled RWA for most transaction types.
Wider variety of eligible collateral.
Restricted list of eligible collateral.
Limited recognition of collateral results in higher
RWA for Lombard lending and securities financing
transactions (SFTs).
Repo value-at-risk (VaR)
allows use of VaR
models to estimate exposure and collateral for
SFTs. Approach permits full diversification and
netting across all collateral types.
Conservative and crude regulatory haircuts with
limited risk sensitivity.
The effects
of guarantees and credit derivatives
are considered through either adjusting PD
and / or LGD estimates. UBS applies the F-IRB
approach for guarantee recognition.
In case of eligible guarantees and credit derivatives,
substitution is applied and the risk weight
applicable to the protection provider can be
assigned to the protected portion of the underlying
exposure.
CCF
A credit conversion factor (CCF) is applied to
model expected future drawdowns over the
12-month period, irrespective of the actual
maturity of a particular transaction. The CCF
includes downturn adjustments and is the result
of analysis of internal data and expert opinion.
Credit exposure equivalents are determined by
applying CCF to off-balance sheet items. The CCFs
vary based on product type, maturity and the
underlying contractual agreements.
Modeled CCFs can be more tailored and
differentiated.
EAD for derivatives
Internal model method (IMM) facilitates the use
of a Monte Carlo simulation to estimate
exposure.
SA-CCR is calculated as the replacement costs plus
regulatory add-ons that take into account potential
future market moves at predetermined fixed rates.
For large,
diversified derivatives portfolios,
standardized EAD is higher than modeled EAD.
Application of multiplier on IMM exposure
estimate.
Differentiates add-ons by five exposure types and
three maturity buckets only.
Variability in holding period applied to
collateralized transactions, reflecting liquidity
risks.
Limited netting can be recognized.
EAD for SFTs
The repo VaR approach is a model based on a
Monte Carlo simulation and historical calibration
to estimate exposure, computed as quantile
exposure.
The comprehensive approach considers the adjusted
exposure after applicable supervisory haircuts on
both the exposure and the collateral received to
take account of possible future fluctuations in the
value of either the exposure or the collateral.
For large, diversified SFT portfolios, standardized
EAD is higher than modeled EAD.
Maturity in risk weight
Regulatory RWA function considers maturity: the
longer the maturity, the higher the risk weight.
No differentiation for maturity of transactions,
except for interbank exposures.
Model approach produces lower RWA for high-
quality, short-term transactions.
Credit valuation
adjustment
Not applicable under the final Basel III standards.
UBS calculates the credit valuation adjustment
(CVA) risk capital requirement using both the
standardized approach (SA-CVA) and the basic
approach (BA-CVA) in line with the final Basel III
standards. The SA-CVA uses sensitivities to market
risk factors (e.g. interest rates and credit spreads)
and uses those sensitivities with regulatory-
prescribed risk weights and correlations to arrive at
a capital charge. The BA-CVA approach is simpler
and less risk sensitive.
Where the BA-CVA and the SA-CVA is applied
under the output floor calculation, the application
of internal ratings is not permitted.
Securitization exposures
in the banking book
The regulatory capital requirements are
calculated using a hierarchy of approaches. First,
the securitization internal ratings-based approach
(SEC-IRBA) is applied, if possible. If this approach
cannot be applied, one of the standardized
approaches is applied.
If the SEC-IRBA cannot be applied, the regulatory
capital requirements are calculated using the
following hierarchy of approaches:
the securitization
external ratings-based approach or the
securitization standardized approach (SEC-SA).
Otherwise, a 1,250% risk weight is applied as a
fallback.
30 June 2025 Pillar 3 Report |
UBS Group | Overview of risk-weighted
assets
11
Key differences between the internal model approach and the standardized approach (continued)
Internal model approach
Standardized approach
Key impact
Market risk
UBS does not apply the internal model approach
for market risk.
UBS currently applies the standardized approach of
the Fundamental Review of the Trading Book (the
FRTB)
framework, in which minimum market risk
capital requirements are computed on the basis of
three components: the sensitivities-based method
(the SBM), the default risk charge (the DRC) and
the residual risk add-on (the RRAO). The SBM
captures delta, vega and curvature risk of the
underlying trading positions, the DRC uses the
jump-to-default risk in positions subject to equity
and credit risk, and positions that may not be
adequately capitalized by the SBM and the DRC
additionally attract an RRAO charge.
Where the standardized approach is applied under
the output floor calculation, the application of
internal ratings is not permitted.
The new FRTB framework replaced the VaR-
and
stressed VaR-based Basel 2.5 market risk
framework.
Operational risk
Not applicable under the final Basel III standards.
The standardized approach is based on the business
indicator component, derived from financial
statement metrics, as well as the internal loss
multiplier, derived from average historical
operational losses. The new framework replaced the
advanced measurement approach.
As
of
30 June
2025,
the
output
floor
is
set
at
USD 450.4bn,
representing
60%
of
RWA
calculated
using
the
full
standardized
approach
effective
for
the
full
year
2025.
This
floor
remains
USD 54.1bn
below
the
actual
RWA
of
USD 504.5bn.
The
difference
of
USD 246.2bn
between
the
RWA
calculated
using
the
full
standardized
approach
of
USD 750.7bn and actual
RWA of
USD 504.5bn is primarily
driven by USD 125.3bn
from credit
risk RWA,
USD 107.1bn
from CCR RWA, USD 6.8bn
from securitization RWA and
USD 6.4bn from CVA
RWA.
During the
second quarter
of 2025,
the difference
between RWA
calculated using
the full
standardized approach
and
actual RWA
decreased by
USD 3.5bn, from
USD 249.7bn to
USD 246.2bn. This
decrease was
primarily driven
by RWA
mitigation actions undertaken
during the quarter
and a decrease
in asset size, which
contributed to a
decrease in RWA
calculated using
the full
standardized approach. These
decreases were partly
offset by
currency effects.
UBS is
undertaking
measures to minimize the impact as the output floor gradually
increases to 72.5% of standardized RWAs by 2028.
Credit risk
RWA under
the full
standardized approach
are higher
than actual
RWA. Under
the standardized
approach,
fixed
risk
weights
are
applied
to
residential
mortgage
exposures,
depending
on
the
LTV.
The
internal
model-based
approach considers
borrowers’ ability
to service
debt more
accurately, including
mortgage affordability
and calibration
based on
historic data.
The Group’s
residential mortgage
portfolio is
focused on
the Swiss
market, and
the Group
has
robust review processes
in place concerning
borrowers’ ability to
repay. This results
in the Group’s
residential mortgage
portfolio
having
a
low
average
LTV
and
results
in
an
average
risk
weight
of
around
20%
under
the
A-IRB
approach
compared
with
an average
35% risk
weight
under the
standardized
approach.
For
Lombard
lending
the
average
risk
weight using internal models is
around 10%. The risk
weight under the standardized approach is
around 100% for these
exposures, primarily due to the
differences in the treatment
of collateral. Furthermore, corporate
exposures have higher
risk weights under
the standardized approach
,
with an average
of 82%, compared
with an average
of 51% under
the
internal model approach.
CCR RWA
under the full
standardized approach are
higher than actual
RWA, primarily reflecting
higher risk weights
under
the standardized approach compared with
the IRB risk weights
mainly in the corporate asset
class, especially on managed
funds.
In
addition
to
risk
weights,
exposures
calculated
under
the
standardized
approach
are
higher,
because
the
standardized approach does not fully recognize the benefits
of netting, portfolio diversification and collateral.
CVA RWA
calculated
using
the
full standardized
approach
are
higher than
actual
RWA, as
the
application
of internal
ratings is not permitted under the standardized approach
for output floor calculations.
Securitization RWA calculated
using the full
standardized approach are
higher than actual
RWA, due to
more conservative
assumptions
and
less
granular
risk
assessments
permitted
under
the
SEC-SA
when
compared
with
the
SEC-IRBA
framework.
30 June 2025 Pillar 3 Report |
UBS Group | Overview of risk-weighted
assets
12
CMS1: Comparison of modelled and standardized RWA at risk level
a
b
c
d
e
USD m
RWA for modelled
approaches that UBS has
FINMA approval to use
RWA for portfolios
where standardized
approaches are used
Total Actual RWA
(i.e. RWA which banks
report as current
requirements)
RWA calculated using
full standardized
approach
(i.e. used in the base
of the output floor)
Output floor base
(60% of RWA
calculated using full
standardized
approach)
30.6.25
1
Credit risk (excluding counterparty credit risk)
196,941
61,170
258,111
383,454
230,072
2
Counterparty credit risk
25,025
6,878
31,903
138,977
83,386
3
Credit valuation adjustment (CVA)
9,904
9,904
16,284
9,770
4
Securitization exposures in banking book
3,022
3,507
6,529
13,325
7,995
5
Market risk
30,469
30,469
30,353
18,212
6
Operational risk
136,394
136,394
136,394
81,836
7
Residual RWA
1
2,096
29,093
31,189
31,931
19,159
8
Total
227,085
277,415
504,500
750,719
450,431
2
31.3.25
1
Credit risk (excluding counterparty credit risk)
182,036
57,511
239,547
365,925
219,555
2
Counterparty credit risk
24,141
5,994
30,135
138,962
83,377
3
Credit valuation adjustment (CVA)
9,322
9,322
15,012
9,007
4
Securitization exposures in banking book
3,550
3,189
6,739
15,211
9,126
5
Market risk
31,352
31,352
31,208
18,725
6
Operational risk
136,394
136,394
136,394
81,836
7
Residual RWA
1
2,213
27,573
29,787
30,307
18,184
8
Total
211,940
271,336
483,276
733,019
439,811
2
1 Includes settlement risk, equity investments in funds and deferred tax assets arising from temporary differences.
2 Conceptually, the output floor is applied at the total RWA level, rather than at individual risk-type
levels.
Comparison of modeled and standardized RWA for credit
risk at asset class level
Semi-annual |
In this Pillar 3 report,
we are introducing the “CMS2: Comparison of
modelled and standardized RWA for credit
risk at asset class level” table
for the first time, as part
of the final Basel III standards.
The CMS2 table elaborates on the
comparison between RWA
calculated under the
standardized and the
internally modeled approaches
(including the IRB
approach for credit
risk and the supervisory
slotting approach) by
focusing on RWA
for credit risk
at the asset class
and
sub-asset class levels.
As of 30 June 2025,
credit risk RWA
calculated using the full
standardized approach was
USD 383.5bn, compared with
actual RWA
of USD 258.1bn.
The difference
of USD 125.3bn
between the
RWA calculated
using the
full standardized
approach and actual RWA was primarily driven by the following asset classes:
USD 78.3bn from Retail, USD 31.8bn from
Corporates:
other lending and USD 16.2bn from Corporates
:
specialized lending.
RWA in
the Retail
asset class
calculated using
the full
standardized approach
were USD 78.3bn
higher than
the actual
such RWA. The largest component
of the difference is observed
primarily within Retail: exposures
secured by real estate
and Retail:
other retail, which includes Lombard lending. Under
the standardized approach, fixed risk weights are
applied
to
exposures
secured
by
real
estate,
depending
on
the
LTV.
The
internal
model-based
approach
considers
borrowers’
ability
to service
debt
more
accurately,
including calibration
based on
historic
data.
The
Group’s residential
mortgage
portfolio
is focused
on
the
Swiss market,
and the
Group
has robust
review
processes
in
place
concerning
borrowers’
ability
to
repay.
This
results
in
the
Group’s
residential
mortgage
portfolio
having
a
low
average
LTV
and
results
in
an
average risk weight
of around 20%
under the A-IRB
approach compared with an
average of 35% under
the standardized
approach. For Lombard lending the average risk weight using internal models is around
10%. The risk weight under the
standardized approach is
around 100% for
these exposures, primarily
due to
the differences in
the treatment of
collateral.
RWA in
the Corporates:
other lending asset
class calculated using
the full standardized
approach were USD 31.8bn
higher
than the actual
such RWA. The
difference is primarily
driven by exposures
to large corporate
clients, which have
higher
risk weights under
the standardized approach
,
with an average
of 87%, compared
with an average
of 48% under
the
internal model approach.
RWA in the Corporates:
specialized lending asset class calculated using the full standardized approach were USD 16.2bn
higher than the actual such RWA. The difference is primarily driven by exposures related to income producing real estate
(IPRE) and object financing. Under the standardized approach, fixed risk weights are applied to exposures related to IPRE
depending on the LTV, with an average risk
weight of 66%, compared with an
average of 43% under the internal model
approach.
Exposures
related
to
object
financing
have
higher
risk
weights
under
the
standardized
approach,
with
an
average of 100%, compared with an average of 47% under
the internal model approach.
30 June 2025 Pillar 3 Report |
UBS Group | Overview of risk-weighted
assets
13
CMS2: Comparison of modelled and standardized RWA for credit risk at asset class level
a
b
c
d
e
USD m
RWA for modelled
approaches that UBS
has FINMA approval
to use
RWA for column (a) if
re-computed using the
standardized approach
Total Actual RWA
(i.e. RWA which banks
report as current
requirements)
RWA calculated using
full standardized
approach
(i.e. used in the base
of the output floor)
Output floor base
(60% of RWA
calculated using full
standardized
approach)
1
30.6.25
1
Central governments, central banks and
supranational organizations
7,077
3,823
7,077
3,823
2,294
2
of which: Central governments, central banks and
supranational organizations (F-IRB)
3
of which: Central governments, central banks and
supranational organizations (A-IRB)
7,077
3,823
7,077
3,823
2,294
4
Banks
5,669
6,285
5,669
6,285
3,771
5
Public sector entities and multilateral development
banks
1,506
3,174
1,506
3,174
1,905
6
Corporates: specialized lending
31,857
48,060
31,857
48,060
28,836
7
of which: Corporates: specialized lending under the
supervisory slotting approach
1,638
1,599
1,638
1,599
960
8
of which: Corporates: specialized lending (F-IRB)
9
of which: Corporates: specialized lending (A-IRB)
30,219
46,460
30,219
46,460
27,876
10
Corporates: other lending
58,270
90,111
58,270
90,111
54,066
11
of which: Corporates: other lending (F-IRB)
31,424
55,774
31,424
55,774
33,465
12
of which: Corporates: other lending (A-IRB)
26,846
34,336
26,846
34,336
20,602
13
Retail
92,561
170,831
92,561
170,831
102,499
14
of which: Retail: exposures secured by real estate
61,428
107,166
61,428
107,166
64,300
15
of which: Retail: qualifying revolving retail
exposures (QRRE)
1,974
2,577
1,974
2,577
1,546
16
of which: Retail: other retail
29,160
61,088
29,160
61,088
36,653
17
Equity exposures
3,852
3,852
2,311
18
Other
57,317
57,317
34,390
19
Total
196,941
322,284
258,111
383,454
230,072
1 While output floor is intended to be
applied to total RWA, the output
floor base disclosed in the CMS2
table reflects only RWA attributable to
credit risk exposures. Refer to
the “CMS1: Comparison of modelled
and standardized RWA at risk level” table in this section for information about non-credit risk exposures.
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk
14
Credit risk
Introduction
Semi-annual
|
The
parameters
applied
under
the
internal
ratings-based
(IRB)
approach
are
generally
based
on
the
same
methodologies,
data
and
systems
we
use
for
internal
credit
risk
quantification,
except
where
certain
treatments
are
specified
by
regulatory
requirements.
These
include,
for
example,
the
application
of
regulatory
prescribed
floors
and
multipliers, and
differences with
respect to
eligibility criteria and
exposure definitions. The
exposure information presented
in
this
section
may
thus
differ
from
our
internal
management
view
disclosed
in
the
“Risk
management
and
control”
sections of
the quarterly
and annual reports.
Similarly, the
regulatory capital
prescribed measure
of credit
risk exposure
also differs from how it is defined under IFRS Accounting
Standards.
Credit quality of assets
Semi-annual |
The
CR1
table
below
provides
a
breakdown
of
defaulted
and
non-defaulted
loans,
debt
securities
and
off-
balance sheet exposures.
The table includes
a split
of expected credit
loss accounting
provisions based on
the standardized
approach and the IRB approach.
Compared
with
31 December
2024,
the
net
carrying
values
of
loans,
including
cash
and
balances
at
central
banks,
increased by
USD 78.0bn to
USD 914.1bn, mainly
reflecting currency
effects. The
net carrying
values of
debt securities
increased
by
USD 27.1bn
to
USD 115.8bn,
mainly
reflecting
purchases
of
high-quality
liquid
asset
(HQLA)
portfolio
securities and currency effects.
The
net
carrying
value
of
off-balance
sheet
exposures
increased
by
USD 6.1bn
to
USD 96.8bn,
mainly
driven
by
an
increase in loan commitments.
›
Refer to “Credit risk” in the “Risk management and
control” section of the UBS Group Annual Report 2024, available
under
”Annual reporting” at
ubs.com/investors
, for more information about the definitions of default
and credit impairment and to
“Credit risk exposure categories” in the “Credit risk” section of the
31 December 2024 Pillar 3 Report, available
under “Pillar 3
disclosures” at
ubs.com/investors
, for more information about the classification of
loans and debt securities
CR1: Credit quality of assets
Gross carrying amounts of:
Allowances /
impairments
2
Of which: ECL accounting provisions
for credit losses on SA exposures
Of which: ECL
accounting
provisions for
credit losses on
IRB exposures
Net values
USD m
Defaulted
exposures
1
Non-defaulted
exposures
Allocated in
regulatory
category of
Specific
3
Allocated in
regulatory
category of
General
3
30.6.25
1
Loans
4
6,463
910,064
(2,432)
(281)
(49)
(2,102)
914,095
2
Debt securities
12
115,749
(4)
0
(4)
0
115,757
3
Off-balance sheet exposures
5
346
96,771
(272)
(26)
(134)
(112)
96,845
4
Total
6,820
1,122,584
(2,708)
(307)
(187)
(2,214)
1,126,697
31.12.24
1
Loans
4
5,962
832,251
(2,095)
(104)
(40)
(1,950)
836,119
2
Debt securities
48
88,600
(4)
(4)
88,644
3
Off-balance sheet exposures
5
329
90,663
(250)
(2)
(4)
(244)
90,743
4
Total
6,339
1,011,515
(2,349)
(107)
(49)
(2,194)
1,015,505
1 Defaulted exposures include stage 3 and
defaulted purchased credit-impaired (PCI) assets
under IFRS 9. Refer to “Note
8 Expected credit loss measurement”
in the “Consolidated financial statements”
section of
the UBS Group second
quarter 2025 report,
available under “Quarterly
reporting” at ubs.com/investors,
for more information
about IFRS 9.
2 Expected credit loss
(ECL) allowances and
provisions amounted to
USD 2,966m as
of 30
June 2025,
as disclosed
in “Note
8 Expected
credit loss
measurement” in
the “Consolidated
financial statements”
section of
the UBS
Group second
quarter 2025
report, available
under
“Quarterly reporting” at ubs.com/investors. This
Pillar 3 table excludes ECL of USD 258m toward securitization exposures,
revocable off-balance sheet exposures, ECL on irrevocable committed
prolongation of loans
that do not give rise
to additional credit exposures
and exposures subject to
counterparty credit risk.
3 Specific provisions include
stage 3 ECL allowances
and additional ECL allowances
on defaulted PCI
assets.
General provisions include stage 1 and 2 ECL
allowances and additional ECL allowances on
non-defaulted PCI assets.
4 Loan exposure is reported in line with the
Pillar 3 definition. Refer to “Credit risk exposure
categories” in the “Credit risk“ section of the 31 December 2024 Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors,
for more information about the classification of loans and debt securities.
5 Off-balance sheet
exposures include unutilized
credit facilities,
guarantees provided
and forward
starting loan
commitments but exclude
prolongations of
loans that do
not increase
the initially committed
loan
amount. Unutilized credit facilities exclude unconditionally revocable credit facilities, as well as uncommitted credit facilities,
even if they attract RWA.
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk
15
Semi-annual
|
The
CR2
table
below
presents
changes
in
stock
of
defaulted
loans,
debt
securities
and
off-balance
sheet
exposures for the first
half of 2025. The
total amount of defaulted
loans and debt
securities was USD 6.8bn as
of 30 June
2025, an increase of USD 0.5bn compared with 31 December
2024.
CR2: Changes in stock of defaulted loans, debt securities and off-balance sheet exposures
USD m
For the half year
ended 30.6.25
1
For the half year
ended 31.12.24
1
1
Defaulted loans, debt securities and off-balance sheet exposures as of the beginning of the
half year
6,339
6,199
2
Loans, debt securities and off-balance sheet exposures that have defaulted
since the last reporting period
1,214
1,485
3
Returned to non-defaulted status
(210)
(149)
4
Amounts written off
(136)
(166)
5
Other changes
2
(387)
(1,028)
6
Defaulted loans, debt securities and off-balance sheet exposures as of the end of the half
year
6,820
6,339
1 Off-balance sheet
exposures include unutilized
credit facilities,
guarantees provided
and forward
starting loan
commitments but exclude
prolongations of
loans that do
not increase
the initially committed
loan
amount. Unutilized credit facilities exclude unconditionally revocable and uncommitted credit facilities, even if they attract
RWA.
2 Includes primarily partial or full repayments, as well as currency effects.
Credit risk mitigation
Semi-annual |
The CR3
table below
provides a
breakdown of
loans and
debt securities
into unsecured
and partially
or fully
secured exposures, with additional information about the
security type.
Compared
with
31 December
2024, the
carrying
amount
of
unsecured
loans,
including
cash
and
balances
at
central
banks, increased by USD 20.9bn to USD 303.8bn, mainly
reflecting currency effects.
The
carrying
amount
of
partially
or
fully
secured
loans
increased
by
USD 57.1bn
to
USD 610.3bn,
mainly
reflecting
currency effects.
The carrying amount of unsecured debt securities increased by USD 27.2bn to USD 114.8bn, mainly reflecting purchases
of HQLA portfolio securities and currency effects.
CR3: Credit risk mitigation techniques – overview
1
Secured portion of exposures partially or fully secured:
USD m
Exposures fully
unsecured: carrying
amount
Exposures partially
or fully secured:
carrying amount
Total: carrying
amount
Exposures secured
by collateral
Exposures secured
by financial
guarantees
Exposures secured
by credit derivatives
30.6.25
1
Loans
2
303,807
610,288
914,095
587,778
5,214
0
1a
of which: cash and balances at central
banks
235,346
0
235,346
0
0
0
2
Debt securities
114,839
918
115,757
19
0
0
3
Total
418,645
611,206
1,029,852
587,797
3
5,214
0
4
of which: defaulted
4
277
4,384
4,661
2,534
148
0
31.12.24
1
Loans
2
282,902
553,216
836,119
507,544
7,642
9
1a
of which: cash and balances at central
banks
222,422
0
222,422
0
0
0
2
Debt securities
87,656
988
88,644
19
0
0
3
Total
370,559
554,204
924,763
507,563
7,642
9
4
of which: defaulted
4
440
4,063
4,503
2,699
268
0
1 Exposures in this table represent carrying amounts in
accordance with the regulatory scope of consolidation.
2 Loan exposure is reported in line with the
Pillar 3 definition. Refer to “Credit risk exposure categories”
in the “Credit risk“ section of the 31 December 2024 Pillar 3 Report, available
under “Pillar 3 disclosures” at ubs.com/investors, for
more information about the classification of loans and debt securities.
3 Eligible
financial collateral under the IRB approach is recognized in the LGD
parameter. The
exposure secured by collateral for IRB represents the
collateral amounts received prior to any haircuts but subject to
the maximum
of the exposure carrying value.
4 Includes purchased credit-impaired assets when defaulted.
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk
16
Credit risk under the standardized approach
Introduction
The standardized
approach
is generally
applied where
using the
IRB approach
is not
feasible. Under
the standardized
approach,
we
use
where
possible
credit
ratings
from
external
credit
assessment
institutions
to
determine
the
risk
weightings applied to rated counterparties.
Credit risk exposure and credit risk mitigation effects
Semi-annual
|
The
CR4
table
below
illustrates
the
credit
risk
exposure
and
effect
of
credit
risk
mitigation
(CRM)
on
the
calculation of capital requirements under
the standardized approach.
With the
adoption of
the final
Basel III standards
on 1 January
2025, including
the Swiss
Financial Market
Supervisory
Authority
(FINMA)
Ordinance
on
the
Disclosure
Obligations
of
Banks
and
Securities
Firms
(the
DisO-FINMA),
new
standardized asset classes have been
introduced. Consequently, this semi-annually disclosed
table is limited to
the current
reporting period, with no comparative figures presented.
›
Refer to “Amended FINMA-defined asset classes”
in the “Introduction and basis for preparation” section
of this report for more
information about the amended definition
of asset classes as a result of the implementation
of the final Basel III standards in
Switzerland
›
Refer to the 31 December 2024 Pillar 3 Report,
available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
about previously published CR4 disclosures
As of 30 June 2025, the asset class with the largest exposure – after applying credit conversion factors
(CCF) and CRM –
was the
Corporates asset
class, mainly
through
loans and
loan commitments
within
Global Wealth
Management
and
Personal & Corporate
Banking, as well
as debt securities
managed by Group
Treasury.
Additionally, there are
significant
exposures in
the Central
governments, central
banks and
supranational organizations
asset class,
primarily comprising
cash
and
balances
at
central
banks.
Exposures
to
the
Banks
and
Public
sector
entities
asset
classes
largely
consist
of
holdings of
debt securities. Exposures
in Other
assets primarily include
non-counterparty-related items, including
property,
equipment, and software.
CR4: Standardized approach – credit risk exposure and credit risk mitigation (CRM) effects
Exposures
before CCF and CRM
Exposures
post-CCF and post-CRM
RWA and RWA density
USD m, except where indicated
On-balance
sheet
amount
Off-balance
sheet
amount
Total
On-balance
sheet
amount
Off-balance
sheet
amount
Total
RWA
RWA density
in %
30.6.25
Asset classes
1
Central governments, central banks and supranational
organizations
24,910
35
24,945
24,910
2
24,912
457
1.8
2
Public sector entities
12,126
2,558
14,684
12,127
758
12,885
3,192
24.8
3
Multilateral development banks
3
3
1
1
1
99.7
4
Banks
19,085
2,817
21,901
18,804
1,009
19,813
7,085
35.8
4a
of which: Swiss account-holding securities firms and other
financial institutions subject to equivalent prudential
standards and supervision
396
396
396
396
238
60.1
5
Covered bonds
1
6,713
6,713
6,713
6,713
671
10.0
5a
of which: Swiss covered bonds
6,713
6,713
6,713
6,713
671
10.0
6
Corporates
24,817
9,858
34,675
23,544
2,963
26,507
20,048
75.6
6a
of which: Swiss non-account-holding securities firms and
other financial institutions not subject to equivalent
prudential standards and supervision
594
594
242
242
91
37.8
6b
of which: specialized lending
7
Subordinated debt, equity exposures and other capital
instruments
1,463
1,463
1,410
1,410
3,852
273.2
8
Retail
4,983
3,846
8,829
4,945
413
5,358
5,551
103.6
9
Real estate
6,382
201
6,583
5,963
87
6,050
2,222
36.7
9a
of which: own-used RRE
4,570
149
4,718
4,255
64
4,319
1,312
30.4
9b
of which: IPRRE
1,468
37
1,505
1,366
15
1,381
635
46.0
9c
of which: own-used CRE
48
49
47
47
34
71.9
9d
of which: IPCRE
276
12
287
275
7
282
224
79.7
9e
of which: land acquisition, development and construction
20
4
24
20
1
21
17
80.2
10
Defaulted exposures
824
11
836
822
5
827
1,021
123.5
11
Other assets
17,636
205
17,840
17,636
205
17,840
17,070
95.7
12
Total
118,939
19,533
138,471
116,873
5,442
122,315
61,170
50.0
1 Covered bond exposures reported under the preferential risk weight treatment relate exclusively to Swiss covered bonds issued under the Swiss covered bonds regulation (Pfandbriefgesetz). All other covered bonds
are presented in the asset classes based on the issuer counterparty.
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk
17
Exposures by asset classes and risk weights
Semi-annual |
The CR5
table below
shows credit
risk exposures
under the
standardized
approach
by asset
classes and
risk weights
applied.
Asset
classes and,
to some
extent,
risk
weights changed with
the adoption of
the final Basel
III standards on
1 January 2025. Consequently,
this semi-annually
disclosed table is
limited to the
current reporting
period,
with no comparative figures presented.
The credit risk exposures in the CR5
table are post-CCF and post-CRM credit
risk exposures.
›
Refer to “Amended FINMA-defined asset classes”
in the “Introduction and basis for preparation” section
of this report for more information about the amended
definition of asset classes as a
result of the implementation of the final Basel III standards in Switzerland
›
Refer to the 31 December 2024 Pillar 3 Report,
available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about previously published CR5
disclosures
CR5: Standardized approach – exposures by asset classes and risk weights – excluding Real estate
USD m
Risk weight
0%
10%
15%
20%
25%
30%
35%
40%
45%
50%
65%
75%
80%
85%
100%
130%
150%
250%
400%
1,250%
Other
Total
credit
exposures
amount
30.6.25
Asset class
1
Central governments and central
banks
24,041
2
605
218
45
24,912
2
Public sector entities
11,230
1,416
238
12,885
3
Multilateral development banks
1
1
4
Banks
17,043
74
386
1
19
2,290
19,813
4a
of which: Swiss account-holding
securities firms and other non-bank
financial institutions subject to
equivalent prudential standards and
supervision
273
122
395
5
Covered bonds
6,713
6,713
5a
of which: Swiss Covered Bonds
6,713
6,713
6
Corporates
6,895
1,912
87
138
17,366
109
26,507
6a
of which: Swiss non-account-
holding securities firms and other
financial institutions not subject to
equivalent prudential standards and
supervision
188
54
242
6b
of which: specialized lending
7
Subordinated debt, equity and other
capital instruments
1,235
175
1,410
8
Retail
371
4,987
5,358
10
Defaulted exposures
438
389
827
11
Other assets
853
16,980
7
17,840
12
Total
24,894
6,713
35,171
74
4,318
459
138
40,247
2,833
1,235
175
7
116,265
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk
18
CR5: Standardized approach – exposures by asset classes and risk weights – Real estate (continued)
USD m
Risk weight
0%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
85%
90%
100%
105%
110%
115%
150%
Other
Total
credit
exposures
amount
30.6.25
Asset class
9
Real estate
1,604
1,080
590
1,730
37
515
115
216
49
4
36
3
46
12
12
6,050
9a
of which: own-used RRE
1,603
1,080
1,538
37
12
49
4,319
9b
of which: IPRRE
590
193
504
83
1
3
3
6
1,381
9c
of which: own-used CRE
33
1
13
47
9d
of which: IPCRE
216
20
46
282
9e
of which: land acquisition,
development and construction
2
7
12
21
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk
19
Semi-annual |
In this Pillar 3
report, we
are introducing
the “CR5: Exposure
amounts and CCFs
applied to off
-balance sheet
exposures, categorised based on risk
bucket of converted exposures”
table for the first time, as
part of the final Basel III
standards.
This
table
presents
on-
and
off-balance
sheet
exposures
distributed
across
regulatory
risk
weight
buckets,
including what average CCFs are applied to off
-balance sheet exposures.
CR5: Exposure amounts and CCFs applied to off-balance sheet exposures, categorised based on risk bucket of
converted exposures
USD m, except where indicated
On-balance sheet
exposure (pre-CRM)
Off-balance sheet
exposure (pre-CCF and
pre-CRM)
Weighted average CCF
in %
Exposure (post-CCF and
post-CRM)
30.6.25
Risk weight
1
Less than 40%
71,389
4,831
43
71,856
2
40-70%
4,444
1,534
24
5,202
3
75%
406
732
16
520
4
85%
117
137
18
141
5
90-100%
38,515
11,600
29
40,284
6
105-130%
48
2
34
48
7
150%
2,551
698
17
2,846
8
250%
1,235
1,235
9
400%
229
175
10
1,250%
7
7
11
Total
118,939
19,533
31
122,315
Credit risk under the internal ratings-based approach
Introduction
The
IRB approach
includes
the
advanced
IRB (A
-IRB)
approach
and,
under
the
final
Basel III
standards
from
1 January
2025
onward,
the
foundation
IRB
(F-IRB)
approach
for
exposures
to
banks,
public
sector
entities
and
multilateral
development banks, and
large corporate clients.
Under the A-IRB
approach the required capital for
credit risk is
quantified
through empirical
models that
we have
developed to estimate
the probability
of default
(PD), loss
given default
(LGD),
exposure
at
default
(EAD)
and
other
parameters,
subject
to
FINMA
approval.
Under
the
F-IRB
approach
banks
are
permitted to use their own internal estimates for the PD and EAD
but must apply regulatory-prescribed values
for LGD.
Credit risk exposures by portfolio and PD range
Semi-annual |
The
CR6 table
below
provides
information
about
credit
risk
exposures
under
the
IRB
approach,
including
a
breakdown of the main parameters used in IRB models to calculate
the capital requirements, presented
by portfolio and
PD range across FINMA-defined asset classes.
With the
adoption of
the final
Basel III standards
on 1 January
2025, including
the DisO-FINMA,
new IRB
asset classes
have been introduced,
including asset classes
subject to the
F-IRB approach,
such as ”Banks
– F-IRB” and
”Corporates:
other lending – F-IRB” reflecting large corporate clients. Consequently, this semi-annually disclosed table is limited to the
current reporting period, with no comparative figures presented.
›
Refer to “Amended FINMA-defined asset classes”
in the “Introduction and basis for preparation” section
of this report for more
information about the amended definition
of asset classes as a result of the implementation
of the final Basel III standards in
Switzerland
›
Refer to the 31 December 2024 Pillar 3 Report,
available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
about previously published CR6 disclosures
As of 30 June 2025, the asset class with the largest
exposure – after applying CCF and CRM – was
the Retail: exposures
secured by real
estate asset class,
reflecting our residential
mortgage lending activity
within Personal &
Corporate Banking
and
Global
Wealth
Management.
Furthermore,
UBS
Group
has
a
significant
portion
of
exposures
in
the
Central
governments, central banks and supranational organizations
asset class, reflecting balances with central
banks in Group
Treasury. In
addition,
there are significant
exposures in
the Retail: other
retail asset
class, representing
our Lombard lending
business in
Global Wealth
Management. The
F-IRB approach,
which UBS
has implemented
as part
of the
final Basel III
standards,
predominantly
applies
to
exposures
against
Banks
and
other
financial
institutions,
including
public
sector
entities
(PSEs),
as
well
as
large
corporate
clients
in
the
Corporates:
other
lending
asset
class
in
Personal
&
Corporate
Banking and the Investment Bank.
›
Refer to the “CR8: RWA flow statements of credit risk exposures under
IRB” table in this section for more information about the
movement of credit risk exposures under the IRB approach
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk
20
CR6: IRB – Credit risk exposures by portfolio and PD range
USD m, except where indicated
Original on-
balance sheet
gross exposure
Off-balance
sheet exposures
pre-CCF
Total
exposures
pre-CCF
Average CCF
in %
EAD post-CCF
and post-CRM
Average PD
in %
Number of
obligors (in
thousands)
1
Average LGD
in %
2
Average
maturity in
years
2
RWA
RWA density
in %
EL
Provisions
3
Central governments, central banks and supranational organizations –
A-IRB as of 30.6.25
0.00 to <0.15
279,050
27
279,077
44.2
281,053
0.0
<0.1
39.3
1.0
6,540
2.3
11
0.15 to <0.25
281
0
281
32.3
275
0.2
<0.1
55.0
1.0
85
31.0
0
0.25 to <0.50
33
0
33
10.3
18
0.4
<0.1
73.6
1.1
13
73.0
0
0.50 to <0.75
1
0
1
52.0
0
0.6
<0.1
12.0
1.0
0
24.1
0
0.75 to <2.50
307
43
350
40.0
196
1.0
<0.1
59.3
1.1
190
96.6
1
2.50 to <10.00
175
58
233
40.2
4
3.4
<0.1
53.5
1.4
5
139.7
0
10.00 to <100.00
69
0
69
40.0
26
27.9
<0.1
103.1
1.0
203
781.1
55
100.00 (default)
4
41
0
41
10.3
41
100.0
<0.1
41
100.0
0
Subtotal
279,957
128
280,085
41.0
281,613
0.0
<0.1
39.4
1.0
7,077
2.5
68
72
Corporates: specialized lending – A-IRB as of 30.6.25
0.00 to <0.15
10,997
2,559
13,556
43.0
12,639
0.1
1.2
17.2
3.0
1,874
14.8
2
0.15 to <0.25
4,735
974
5,709
33.6
5,191
0.2
0.6
18.5
2.5
1,218
23.5
2
0.25 to <0.50
11,615
6,188
17,802
25.0
12,915
0.4
1.3
23.1
2.1
4,324
33.5
10
0.50 to <0.75
7,516
3,611
11,127
23.9
8,275
0.6
0.8
22.7
2.3
3,455
41.7
12
0.75 to <2.50
20,080
5,969
26,049
32.0
22,133
1.3
1.8
26.7
2.2
14,539
65.7
80
2.50 to <10.00
3,834
683
4,517
40.9
4,122
3.5
0.4
33.2
1.8
4,241
102.9
52
10.00 to <100.00
27
0
27
0.0
27
16.9
<0.1
47.6
1.6
58
217.8
2
100.00 (default)
4
605
5
610
28.8
511
100.0
<0.1
511
100.0
109
Subtotal
59,408
19,989
79,397
30.2
65,813
1.6
6.3
23.2
2.3
30,219
45.9
268
246
Corporates: other lending – A-IRB as of 30.6.25
0.00 to <0.15
4,745
6,386
11,131
24.6
6,452
0.1
4.4
35.7
2.5
1,263
19.6
2
0.15 to <0.25
2,986
3,812
6,798
42.0
4,924
0.2
1.7
32.0
2.1
1,340
27.2
3
0.25 to <0.50
4,000
2,959
6,959
34.4
5,061
0.4
2.6
36.3
2.1
2,066
40.8
7
0.50 to <0.75
2,928
2,028
4,956
36.4
3,553
0.6
1.7
35.9
2.1
2,206
62.1
8
0.75 to <2.50
11,455
4,672
16,127
43.3
13,289
1.5
4.4
32.9
1.9
10,350
77.9
63
2.50 to <10.00
7,448
3,458
10,905
50.5
8,488
4.1
6.8
40.8
2.1
8,237
97.0
132
10.00 to <100.00
604
182
786
50.9
668
23.1
0.1
14.3
1.3
407
61.0
12
100.00 (default)
4
1,777
369
2,146
27.8
976
100.0
0.7
976
100.0
1,145
Subtotal
35,942
23,866
59,808
37.3
43,412
4.0
22.4
34.4
2.1
26,846
61.8
1,372
1,394
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk
21
CR6: IRB – Credit risk exposures by portfolio and PD range (continued)
USD m, except where indicated
Original on-
balance sheet
gross exposure
Off-balance
sheet exposures
pre-CCF
Total
exposures
pre-CCF
Average CCF
in %
EAD post-CCF
and post-CRM
Average PD
in %
Number of
obligors (in
thousands)
1
Average LGD
in %
2
Average
maturity in
years
2
RWA
RWA density
in %
EL
Provisions
3
Retail: exposures secured by real estate – A-IRB as of 30.6.25
0.00 to <0.15
132,290
2,933
135,223
41.0
135,222
0.1
186.9
16.9
6,424
4.8
20
0.15 to <0.25
54,135
1,049
55,184
34.2
55,470
0.2
51.9
20.0
6,158
11.1
20
0.25 to <0.50
64,628
1,480
66,108
44.9
66,402
0.3
64.6
21.1
11,937
18.0
48
0.50 to <0.75
21,954
690
22,644
76.0
22,528
0.6
19.0
29.1
6,381
28.3
41
0.75 to <2.50
31,481
2,627
34,107
69.8
33,388
1.3
29.9
33.1
17,458
52.3
148
2.50 to <10.00
9,406
465
9,871
68.0
9,728
4.3
9.0
33.8
9,839
101.1
140
10.00 to <100.00
1,039
20
1,059
92.1
1,058
15.4
0.8
33.2
1,827
172.7
55
100.00 (default)
4
1,400
9
1,409
24.3
1,404
100.0
1.3
1,404
100.0
1
Subtotal
316,333
9,272
325,605
53.1
325,200
0.9
363.3
21.3
61,428
18.9
474
100
Retail: qualifying revolving retail exposures (QRRE) – A-IRB as of 30.6.25
0.00 to <0.15
307
4,365
4,672
52.8
2,615
0.1
483.2
50.9
84
3.2
1
0.15 to <0.25
215
2,973
3,188
39.1
1,398
0.2
310.5
51.4
102
7.3
1
0.25 to <0.50
348
2,814
3,163
33.5
1,303
0.4
307.1
51.6
154
11.9
2
0.50 to <0.75
353
1,665
2,018
36.0
959
0.6
215.0
53.2
178
18.6
3
0.75 to <2.50
913
1,866
2,779
37.3
1,648
1.3
321.6
52.1
528
32.1
11
2.50 to <10.00
729
593
1,322
17.8
778
4.4
141.3
53.3
620
79.7
18
10.00 to <100.00
120
23
143
46.0
134
19.8
34.2
56.7
262
195.5
15
100.00 (default)
4
68
2
70
22.0
45
100.0
33.1
45
100.0
29
Subtotal
3,054
14,302
17,356
40.7
8,879
1.6
1,846.2
51.6
1,974
22.2
81
46
Retail: other retail – A-IRB as of 30.6.25
0.00 to <0.15
137,984
461,687
599,671
16.1
212,395
0.1
480.9
31.7
13,664
6.4
35
0.15 to <0.25
8,061
15,340
23,400
17.4
10,737
0.2
29.6
27.5
1,411
13.1
5
0.25 to <0.50
9,981
16,399
26,380
18.3
12,982
0.4
31.3
31.1
3,168
24.4
14
0.50 to <0.75
5,366
11,055
16,420
18.8
7,444
0.6
37.5
30.4
2,125
28.6
14
0.75 to <2.50
7,329
11,045
18,374
22.3
9,599
1.3
90.2
42.3
5,153
53.7
51
2.50 to <10.00
3,097
1,205
4,303
29.2
3,295
4.1
41.8
44.9
2,258
68.6
55
10.00 to <100.00
685
95
780
19.3
700
22.6
18.7
51.8
844
120.7
84
100.00 (default)
4
516
78
594
44.3
536
100.0
7.4
536
100.0
119
Subtotal
173,020
516,904
689,924
16.4
257,688
0.5
737.4
32.0
29,160
11.3
378
197
Total – A-IRB 30.6.25
867,715
584,460
1,452,175
18.9
982,605
0.7
2,975.6
30.3
1.4
156,704
15.9
2,640
2,055
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk
22
CR6: IRB – Credit risk exposures by portfolio and PD range (continued)
USD m, except where indicated
Original on-
balance sheet
gross exposure
Off-balance
sheet exposures
pre-CCF
Total
exposures
pre-CCF
Average CCF
in %
EAD post-CCF
and post-CRM
Average PD
in %
Number of
obligors (in
thousands)
1
Average LGD
in %
2
Average
maturity in
years
2
RWA
RWA density
in %
EL
Provisions
3
Banks – F-IRB as of 30.6.25
0.00 to <0.15
8,818
757
9,575
46.0
10,611
0.1
0.3
45.0
1.2
2,443
23.0
4
0.15 to <0.25
677
533
1,210
41.6
1,183
0.2
0.2
45.0
1.5
491
41.5
1
0.25 to <0.50
517
436
953
43.3
723
0.4
<0.1
45.0
1.1
410
56.7
1
0.50 to <0.75
18
188
206
37.7
89
0.6
<0.1
45.0
1.2
68
76.1
0
0.75 to <2.50
115
286
401
54.2
287
1.3
<0.1
44.4
1.1
284
98.8
1
2.50 to <10.00
1,097
454
1,551
35.0
1,188
5.6
0.1
45.0
1.0
1,926
162.1
30
10.00 to <100.00
88
18
105
21.3
22
11.9
<0.1
45.0
1.0
48
213.3
1
100.00 (default)
4
0
0
0
0.0
0
0.0
<0.1
0
0.0
0
Subtotal
11,329
2,671
14,000
42.9
14,105
0.6
0.9
45.0
1.2
5,669
40.2
39
5
Public sector entities, multilateral developmental banks – F-IRB
as of 30.6.25
0.00 to <0.15
2,798
2,364
5,162
20.0
3,594
0.1
0.3
51.3
1.8
772
21.5
1
0.15 to <0.25
423
742
1,165
10.9
507
0.2
0.2
34.7
2.2
156
30.8
0
0.25 to <0.50
965
398
1,363
10.6
925
0.4
0.3
31.5
2.3
365
39.4
1
0.50 to <0.75
52
47
99
38.9
74
0.6
<0.1
24.6
3.6
46
62.5
0
0.75 to <2.50
1
1
2
20.4
1
1.0
<0.1
18.0
1.7
0
40.1
0
2.50 to <10.00
350
153
503
37.5
100
3.5
<0.1
45.0
4.0
152
152.6
2
10.00 to <100.00
1
0
1
10.3
1
19.3
<0.1
45.0
5.0
4
262.2
0
100.00 (default)
4
9
0
9
0.0
10
100.0
<0.1
10
100.0
0
Subtotal
4,599
3,704
8,304
18.2
5,213
0.4
0.8
45.6
2.0
1,506
28.9
4
13
Corporates: other lending – F-IRB as of 30.6.25
0.00 to <0.15
16,539
39,607
56,146
26.0
27,880
0.1
2.2
38.2
2.5
6,139
22.0
7
0.15 to <0.25
6,781
17,740
24,521
35.0
12,535
0.2
1.0
41.3
1.7
4,428
35.3
9
0.25 to <0.50
5,550
6,813
12,364
32.9
7,756
0.4
0.6
41.3
2.1
4,247
54.8
11
0.50 to <0.75
2,730
6,334
9,064
35.3
4,918
0.6
0.4
39.2
2.0
3,134
63.7
12
0.75 to <2.50
3,495
4,607
8,101
35.7
4,732
1.2
0.4
36.3
2.1
3,563
75.3
22
2.50 to <10.00
2,956
11,997
14,953
40.9
5,666
4.5
0.6
39.4
2.9
7,396
130.5
123
10.00 to <100.00
546
1,337
1,883
46.8
994
16.0
<0.1
37.7
2.4
1,837
184.8
60
100.00 (default)
4
661
181
843
45.6
680
100.0
<0.1
680
100.0
158
Subtotal
39,258
88,617
127,874
31.9
65,160
1.9
5.4
38.8
2.2
31,424
48.2
403
199
Total – F-IRB 30.6.25
55,187
94,992
150,178
31.6
84,478
1.6
7.0
40.2
2.1
38,599
45.7
446
217
Total (all asset classes under A-IRB and F-IRB) 30.6.25
922,901
679,452
1,602,353
20.7
1,067,082
0.8
2,982.6
31.1
1.5
195,303
18.3
3,086
2,272
1 Numbers of obligors represent an aggregation of the client relationships in the UBS Group excluding Credit Suisse along with the client relationships in the Credit Suisse infrastructure. RWA calculations are based on the applicable rules and models approved by FINMA for the respective legal entities and
infrastructures.
2 Defaulted exposures disclosed in
the table are excluded
from average loss
given default (LGD) and
average maturity information
as not relevant
for risk weighting. Furthermore,
Retail asset classes are
excluded from the average
maturity, as maturity
is not relevant
for risk weighting.
3 In line with
BCBS Pillar 3
disclosure requirements, provisions are only provided for the sub-totals by asset class.
Provisions reflect IFRS Accounting Standards expected credit losses accounting provisions for credit losses on IRB exposures.
4 Includes defaulted purchased
credit-impaired assets.
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk
23
Credit derivatives used as CRM techniques
Semi-annual |
Where credit
derivatives are
used as CRM
techniques, the
PD of the
obligor is
in general
substituted with
the
PD of the hedge provider. The impact of credit derivatives used as CRM
techniques on IRB credit risk has been
immaterial
for past reporting periods and continued to be immaterial for this reporting period. Therefore, we have discontinued the
disclosure
of
the
“CR7:
IRB
–
Effect
on
RWA
of
credit
derivatives
used
as
CRM
techniques”
table
starting
with
the
31 December 2022 Pillar 3 Report,
as allowed by the FINMA Circular 2016/1 general
principles of disclosure (for periods
up to 31 December 2024) and the DisO-FINMA general
principles of disclosure (for periods from
1 January 2025).
›
Refer to the “CCR6: Credit derivatives exposures” table in the
“Counterparty credit risk” section of this report for
notional and fair
value information about credit derivatives used as
CRM techniques
RWA flow statements of credit risk exposures under the internal
ratings-based approach
Quarterly |
The CR8 table below provides a breakdown
of the credit risk RWA movements
in the second quarter of 2025 across
movement categories defined by the Basel Committee
on Banking Supervision (the BCBS).
Credit risk RWA
under the IRB
approach increased
by USD 14.9bn to
USD 196.9bn during the
second quarter of
2025.
This balance
reflects credit risk
under the
IRB approach,
including the
F-IRB approach
under the final
Basel III standards
from 1 January 2025 onward, as well as credit risk under
the supervisory slotting approach.
Movements in asset size drove a USD 0.2bn decrease in RWA, driven by decreases in loans and loan commitments in the
Investment
Bank,
as
well
as
reductions
in
Group
Items,
partly
offset
by
increases
in
loans
and
loan
commitments
in
Personal & Corporate Banking and Global Wealth Management
.
Movements in asset quality,
including changes in risk
density across the overall
portfolio, increased RWA
by USD 3.6bn,
mainly from exposure increases in Personal &
Corporate Banking carrying higher risk density than
the Group average and
risk density changes in Group Items driven by HQLA balances
with central banks.
Model updates decreased RWA by USD 0.6bn, primarily due to harmonization of models, as well as an update related to
structured margin loans and similar products in Global Wealth
Management.
Methodology and
policy changes
resulted in
an RWA
decrease of
USD 0.9bn,
stemming from
the decommissioning
of
Credit Suisse PD models for banks and international mortgages.
Currency effects, driven
by the weakening
of the US
dollar against other
major currencies, resulted
in an RWA
increase
of USD 13.0bn.
›
Refer to the “Definitions of credit risk and counterparty
credit risk RWA movement table components for CR8 and CCR7” in the
“Credit risk” section of the 31 December 2024 Pillar
3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for
definitions of credit risk RWA movement table components
CR8: RWA flow statements of credit risk exposures under IRB
USD m
For the quarter
ended 30.6.25
For the quarter
ended 31.3.25
1
RWA as of the beginning of the quarter
182,036
184,138
2
Asset size
(225)
1,840
3
Asset quality
3,589
(4,832)
4
Model updates
(558)
(468)
5
Methodology and policy
(925)
(2,499)
5a
of which: impact from the implementation of final Basel
III standards
(4,599)
5b
of which: others
(925)
2,100
6
Acquisitions and disposals
(79)
7
Foreign exchange movements
13,024
3,936
8
Other
9
RWA as of the end of the quarter
196,941
182,036
30 June 2025 Pillar 3 Report |
UBS Group | Credit risk
24
Specialized lending
Semi-annual |
The table below
provides information
about specialized
lending exposures,
subject to the
supervisory slotting
approach.
CR10: IRB – specialized lending under the slotting approach
USD m, except where indicated
On-balance sheet
amount
Off-balance sheet
amount
Risk weight
in %
Exposure amount
1
RWA
EL
30.6.25
Other than high-volatility commercial real estate
Regulatory categories and remaining maturity
Strong
Less than 2.5 years
171
52
50
193
97
0
Equal to or more than 2.5 years
701
383
70
854
598
3
Good
Less than 2.5 years
595
8
70
607
425
2
Equal to or more than 2.5 years
502
0
90
502
452
4
Satisfactory
58
0
115
58
67
2
Weak
0
0
250
0
0
0
Default
0
0
0
0
0
Total
2,027
442
2,215
1,638
11
31.12.24
Other than high-volatility commercial real estate
Regulatory categories and remaining maturity
Strong
Less than 2.5 years
116
0
50
116
61
0
Equal to or more than 2.5 years
581
66
70
614
456
2
Good
Less than 2.5 years
643
66
70
673
499
3
Equal to or more than 2.5 years
608
269
90
743
709
6
Satisfactory
17
0
115
17
20
0
Weak
0
0
250
0
0
0
Default
0
0
0
0
0
Total
1,965
402
2,162
1,745
12
1 Exposure amounts in connection with income-producing real estate.
30 June 2025 Pillar 3 Report |
UBS Group | Counterparty credit risk
25
Counterparty credit risk
Introduction
Semi-annual I
This section provides information about the exposures subject to
the final Basel III counterparty credit risk (CCR)
framework.
CCR
arises
from
over-the-counter
(OTC)
derivatives
and
exchange-traded
derivatives
(ETDs),
securities
financing
transactions
(SFTs),
and
long
settlement
transactions.
We
determine
the
regulatory
credit
exposure
on
the
majority of our
derivatives portfolio
by applying the
internal model method
(IMM). For the
remainder of
the derivatives
portfolio we
apply the standardized
approach for
counterparty credit risk
(SA-CCR). For the
majority of
SFTs we determine
the regulatory
credit exposure
using the
value-at-risk (VaR)
approach. For
the remainder
of the
SFT portfolio
we apply
the comprehensive approach for credit
risk mitigation.
Counterparty credit risk exposure
Semi-annual I
The CCR1
table below
presents the
methods used
to calculate
CCR exposure.
Compared with
31 December
2024, derivative exposures subject to the
IMM decreased by USD 9.3bn, mainly
as a result of
lower levels of client activity
in the Investment Bank. Exposure
at default (EAD) after CRM
on SFTs under the VaR
approach decreased by USD 5.3bn,
primarily driven by exposures managed by Group Treasury
,
partly offset by increases in the Investment Bank.
CCR1: Analysis of counterparty credit risk (CCR) exposure by approach
USD m, except where indicated
Replacement cost
Potential future
exposure
Effective EPE
Alpha used for
computing
regulatory EAD
EAD
post-CRM
RWA
30.6.25
1
SA-CCR (for derivatives)
9,247
10,212
1.4
27,242
7,329
2
Internal model method (for derivatives)
28,791
1.6
1
46,066
12,825
3
Simple approach for credit risk mitigation (for SFTs)
4
Comprehensive approach for credit risk mitigation (for SFTs)
6,393
3,023
5
VaR (for SFTs)
42,930
6,374
6
Total
122,630
29,551
31.12.24
1
SA-CCR (for derivatives)
8,912
9,615
1.4
25,937
7,887
2
Internal model method (for derivatives)
34,602
1.6
1
55,360
16,111
3
Simple approach for credit risk mitigation (for SFTs)
4
Comprehensive approach for credit risk mitigation (for SFTs)
8,355
2,837
5
VaR (for SFTs)
48,198
7,946
6
Total
137,849
34,780
1 A conservative treatment for the purpose of calculating exposure profiles is applied to material trades with wrong-way
risk features, along with an alpha factor of 1.0.
Semi-annual |
We
have
discontinued
the
disclosure
of
the
“CCR3:
Standardized
approach
–
CCR
exposures
by
regulatory
portfolio and risk weights” table, starting with the 31 December 2022 Pillar 3 Report, on the grounds of materiality. The
majority of our
CCR exposures are subject
to internal ratings-based
(IRB) risk weights or
disclosed separately when related
to central counterparties (CCPs).
›
Refer to the “CCR4: IRB – CCR exposures by portfolio
and PD scale” and the “CCR8: Exposures to
central counterparties” tables in
this section for more information about CCR exposures subject
to IRB risk weights and CCPs,
respectively
30 June 2025 Pillar 3 Report |
UBS Group | Counterparty credit risk
26
Semi-annual
|
The
CCR4
table
below
provides
a
breakdown
of
the
key
parameters
used
for
the
calculation
of
capital
requirements under
the IRB
approach,
including the
foundation
IRB(F-IRB) approach
under the
final Basel III
standards
from 1 January 2025 onward, across Swiss Financial Market
Supervisory Authority (FINMA)-defined asset classes.
With the adoption
of the final
Basel III standards
on 1 January
2025, including the
FINMA Ordinance
on the Disclosure
Obligations of Banks and Securities Firms
,
new IRB asset classes have been
introduced,
including asset classes subject to
the F-IRB approach,
such as “Banks
– F-IRB” and
“Corporates: other
lending – F-IRB”
reflecting large corporate
clients.
Consequently, this
semi-annually disclosed
table is
limited to
the current
reporting period,
with no
comparative figures
presented.
›
Refer to “Amended FINMA-defined asset classes”
in the “Introduction and basis for preparation” section
of this report for further
information on the amended definition of asset
classes as a result of the implementation of
the final Basel III standards in
Switzerland
›
Refer to the 31 December 2024 Pillar 3 Report,
available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information
about previously published CCR4 disclosures
As of 30 June 2025, the asset class with the largest exposure – after applying credit risk mitigation – was the Corporates
asset
class,
predominantly
reflecting
derivatives
and
securities
borrowing
and
lending
within
the
Investment
Bank.
In
addition,
UBS
Group
has
significant
exposures
in
the
Retail:
other
retail
asset
class,
representing
derivatives
in
Global
Wealth Management.
›
Refer to the “CCR7: RWA flow statements of CCR exposures under
the internal model method (IMM) and value-at-risk
(VaR)” table
in this section for more information about RWA, including details of movements
in CCR RWA
CCR4: IRB – CCR exposures by portfolio and PD scale
USD m, except where indicated
EAD post-CRM
Average PD
in %
Number of obligors
(in thousands)
1
Average LGD
in %
2
Average maturity
in years
2
RWA
RWA density
in %
Central governments, central banks and supranational organizations
– A-IRB as of 30.6.25
0.00 to <0.15
10,455
0.0
<0.1
31.4
0.1
54
0.5
0.15 to <0.25
32
0.2
<0.1
52.9
0.2
7
23.0
0.25 to <0.50
47
0.3
<0.1
87.2
0.9
38
79.7
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
37
2.6
<0.1
65.3
1.0
56
152.7
10.00 to <100.00
100.00 (default)
Subtotal
10,571
0.0
<0.1
31.8
0.1
155
1.5
Corporates – A-IRB as of 30.6.25
3
0.00 to <0.15
661
0.1
0.3
26.5
1.0
82
12.4
0.15 to <0.25
282
0.2
0.2
26.0
1.0
44
15.8
0.25 to <0.50
488
0.3
0.3
38.5
1.0
206
42.2
0.50 to <0.75
645
0.6
0.2
19.5
1.0
256
39.7
0.75 to <2.50
729
1.4
0.5
31.0
1.0
404
55.3
2.50 to <10.00
2,248
3.8
0.3
11.8
1.7
1,129
50.2
10.00 to <100.00
0
12.7
<0.1
49.0
1.0
1
183.4
100.00 (default)
6
100.0
<0.1
6
100.0
Subtotal
5,059
2.1
1.9
20.9
1.3
2,127
42.0
Retail: other retail – A-IRB as of 30.6.25
0.00 to <0.15
14,243
0.1
18.1
32.4
849
6.0
0.15 to <0.25
1,125
0.2
0.7
28.4
131
11.6
0.25 to <0.50
1,115
0.3
0.8
27.2
215
19.3
0.50 to <0.75
563
0.6
0.6
29.8
151
26.8
0.75 to <2.50
2,226
1.2
0.9
33.0
966
43.4
2.50 to <10.00
250
3.6
0.2
30.8
131
52.4
10.00 to <100.00
26
16.8
<0.1
69.8
43
167.6
100.00 (default)
1
100.0
<0.1
1
100.0
Subtotal
19,548
0.3
21.5
31.9
2,486
12.7
Total – A-IRB 30.6.25
35,178
0.5
23.4
30.3
0.5
4,768
13.6
30 June 2025 Pillar 3 Report |
UBS Group | Counterparty credit risk
27
CCR4: IRB – CCR exposures by portfolio and PD scale (continued)
USD m, except where indicated
EAD post-CRM
Average PD
in %
Number of obligors
(in thousands)
1
Average LGD
in %
2
Average maturity
in years
2
RWA
RWA density
in %
Banks – F-IRB as of 30.6.25
0.00 to <0.15
18,263
0.1
0.3
45.0
0.6
2,971
16.3
0.15 to <0.25
3,090
0.2
0.2
45.0
0.9
1,052
34.1
0.25 to <0.50
1,405
0.4
0.1
45.0
0.8
667
47.5
0.50 to <0.75
374
0.6
<0.1
45.0
0.6
226
60.4
0.75 to <2.50
464
1.3
<0.1
45.0
0.6
405
87.2
2.50 to <10.00
46
3.0
<0.1
45.0
1.0
51
111.5
10.00 to <100.00
0
10.2
<0.1
45.0
1.0
0
207.2
100.00 (default)
Subtotal
23,641
0.1
0.8
45.0
0.7
5,372
22.7
Public sector entities, multilateral developmental banks – F-IRB
as of 30.6.25
0.00 to <0.15
2,275
0.1
0.1
45.0
0.5
284
12.5
0.15 to <0.25
133
0.2
<0.1
38.2
0.9
32
24.2
0.25 to <0.50
17
0.4
<0.1
45.0
1.0
8
51.4
0.50 to <0.75
40
0.6
<0.1
45.0
1.0
23
58.9
0.75 to <2.50
0
1.2
<0.1
15.7
1.0
0
27.6
2.50 to <10.00
10.00 to <100.00
0
13.0
<0.1
45.0
1.0
0
195.0
100.00 (default)
4
100.0
<0.1
4
100.0
Subtotal
2,469
0.3
0.2
44.6
0.6
353
14.3
Corporates: other lending – F-IRB as of 30.6.25
3
0.00 to <0.15
34,768
0.1
10.0
44.9
0.7
4,739
13.6
0.15 to <0.25
8,397
0.2
3.6
44.8
0.6
2,586
30.8
0.25 to <0.50
4,385
0.4
0.6
44.6
0.7
2,028
46.2
0.50 to <0.75
2,599
0.6
0.4
44.3
0.6
1,637
63.0
0.75 to <2.50
1,939
1.3
0.5
44.8
0.7
1,734
89.5
2.50 to <10.00
297
3.0
0.2
44.3
0.8
351
118.3
10.00 to <100.00
0
13.0
<0.1
40.0
1.0
0
173.3
100.00 (default)
0
100.0
<0.1
0
100.0
Subtotal
52,385
0.2
15.3
44.8
0.7
13,076
25.0
Total – F-IRB 30.6.25
78,495
0.2
16.3
44.9
0.7
18,800
24.0
Total (all asset classes under A-IRB and F-IRB) 30.6.25
113,673
0.3
39.8
40.4
0.6
23,568
20.7
1 Numbers of obligors represent an aggregation of
the client relationships in the UBS Group
excluding Credit Suisse along with the
client relationships in the Credit Suisse infrastructure.
RWA calculations are based
on the applicable
rules and models
approved by FINMA
for the respective
legal entities and
infrastructures.
2 Defaulted exposures
disclosed in the
table are excluded
from average loss
given default (LGD)
and
average maturity information
as not relevant
for risk weighting.
Furthermore, Retail
asset classes are
excluded from the
average maturity,
as they are
not subject to
maturity treatment.
3 Includes exposures
to
managed funds.
30 June 2025 Pillar 3 Report |
UBS Group | Counterparty credit risk
28
Semi-annual |
The CCR5 table
below presents
a breakdown
of collateral
posted or received
relating to
CCR exposures
from
derivative transactions and SFTs
.
Compared
with
31 December
2024,
the
fair
value
of
collateral
received
for
SFTs
increased
by
USD 96.5bn
to
USD 822.2bn, and the fair value of posted collateral for SFTs increased by USD 68.4bn
to USD 631.4bn. The increases in
collateral received for SFTs were mainly related to equity securities, and partly from increases in sovereign debt securities,
due to an increase in client activity levels, primarily in the Investment Bank. The
increase in posted collateral for SFTs was
mainly related to increases in
equity securities. primarily in the
Investment Bank, due to an
increase in client activity levels,
and also
partly
related to
increases
in sovereign
debt securities
,
primarily
driven by
a balance
sheet increase
in
Group
Treasury.
The fair
value of
collateral received for
derivatives increased by
USD 9.2bn to USD 117.0bn,
mainly due
to higher
collateral
related to equity securities. The fair value of posted collateral
for derivatives increased by USD 1.6bn to USD 85.4bn.
CCR5: Composition of collateral for CCR exposure
1
Collateral used in derivative transactions
Collateral used in SFTs
Fair value of collateral received
Fair value of posted collateral
Fair value of
collateral received
Fair value of
posted collateral
USD m
Segregated
Unsegregated
Total
Segregated
Unsegregated
Total
30.6.25
Cash – domestic currency
2,143
27,344
29,488
4,472
19,040
23,512
37,913
74,653
Cash – other currencies
24
22,533
22,557
4,871
17,281
22,153
18,669
82,558
Sovereign debt
11,616
11,948
23,564
7,309
11,741
19,049
310,825
179,003
Other debt securities
4,119
7,059
11,178
119
3,716
3,835
74,393
52,852
Equity securities
11,243
11,376
22,619
3,331
13,267
16,598
342,548
227,387
Other collateral
2
621
6,972
7,593
128
96
224
37,870
14,991
Total
29,766
87,233
116,999
20,230
65,140
85,370
822,219
631,446
31.12.24
Cash – domestic currency
1,928
27,154
29,082
3,841
17,164
21,005
31,226
89,952
Cash – other currencies
31
22,380
22,411
5,384
17,349
22,733
15,301
75,200
Sovereign debt
12,221
15,110
27,330
8,263
12,845
21,107
299,610
152,117
Other debt securities
3,357
5,319
8,675
677
2,467
3,144
69,582
53,170
Equity securities
8,781
6,645
15,425
2,873
12,671
15,544
275,770
179,922
Other collateral
2
790
4,098
4,888
144
48
191
34,241
12,641
Total
27,106
80,705
107,811
21,182
62,544
83,725
725,730
563,002
1 This
table includes collateral
received and posted
with and without
the right of
rehypothecation but excludes
securities placed
with central
banks related to
undrawn credit
lines and for
payment, clearing and
settlement purposes for which there were no associated liabilities or contingent liabilities.
2 Includes fund investments, asset-backed securities and mortgage
-backed securities.
Semi-annual |
The CCR6 table below presents an overview of credit
risk protection bought or sold through
credit derivatives.
Compared with
31 December 2024,
notionals for
credit derivatives
for protection
bought decreased
by USD 11.4bn
to
USD 79.4bn
and
notionals
for
credit
derivatives
for
protection
sold
were
largely
unchanged
at
USD 66.1bn,
primarily
driven
by
index
credit
default
swaps
and
single-name
credit
default
swaps,
mainly
in
the
Investment
Bank,
reflecting
compression activities
and natural
roll-offs, as
well as
a decrease
in Non-Core
and Legacy
as a
result of
our actions
to
actively unwind exposures.
CCR6: Credit derivatives exposures
30.6.25
31.12.24
USD m
Protection
bought
Protection
sold
Protection
bought
Protection
sold
Notionals
1
Single-name credit default swaps
32,044
46,508
35,796
43,758
Index credit default swaps
41,676
19,490
49,917
22,178
Total return swaps
624
55
909
117
Credit options
5,027
0
4,105
0
Total notionals
79,371
66,053
90,728
66,052
Fair values
Derivative financial assets
1,225
2,020
1,135
2,001
Derivative financial liabilities
2,995
439
3,279
415
1 Includes notional amounts for client-cleared transactions.
30 June 2025 Pillar 3 Report |
UBS Group | Counterparty credit risk
29
Counterparty credit risk risk-weighted assets
Quarterly |
The CCR7 table below presents a flow
statement explaining changes in CCR RWA determined under the IMM
for
derivatives and the VaR approach
for SFTs.
CCR RWA
on
derivatives under
the IMM
increased
by USD
0.5bn to
USD 13.2bn
during the
second
quarter
of 2025.
Currency effects
and model
updates resulted
in RWA
increases of
USD 0.5bn and
USD 0.2bn, respectively.
Movements
in asset size and credit quality each resulted in RWA decrease
s
of USD 0.1bn.
CCR RWA
on SFTs
under the
VaR approach
increased by
USD 0.2bn to
USD 6.5bn during
the second
quarter of
2025.
Currency effects and asset
size movements resulted
in RWA increases of
USD 0.4bn and USD 0.1bn, respectively.
Credit
quality
movements
contributed
to
an
RWA
decrease
of
USD 0.2bn,
primarily
due
to
decreases
in
risk
density
in
the
Investment Bank and Group Treasury.
Methodology changes caused an RWA decrease of USD 0.
1bn.
›
Refer to “Definitions of credit risk and counterparty credit risk
RWA movement table components for CR8 and CCR7” in
the
“Credit risk” section of the 31 December 2024 Pillar
3 Report, available under “Pillar 3 disclosures” at
ubs.com/investors
, for
definitions of CCR RWA movement table components
CCR7: RWA flow statements of CCR exposures under the internal model method (IMM) and value-at-risk (VaR)
For the quarter ended 30.6.25
For the quarter ended 31.3.25
USD m
Derivatives
SFTs
Total
Derivatives
SFTs
Total
Subject to IMM
Subject to VaR
Subject to IMM
Subject to VaR
1
RWA as of the beginning of the quarter
12,684
6,358
19,042
16,397
8,107
24,504
2
Asset size
(95)
103
9
(2,165)
(1,346)
(3,510)
3
Credit quality of counterparties
(129)
(170)
(299)
(36)
520
484
4
Model updates
176
176
(295)
866
571
5
Methodology and policy
21
(97)
(76)
(1,492)
(1,897)
(3,389)
5a
of which: impact from the implementation of final Basel
III
standards
(1,492)
(1,897)
(3,389)
5b
of which: others
21
(97)
(76)
6
Acquisitions and disposals
7
Foreign exchange movements
540
350
890
275
108
383
8
Other
9
RWA as of the end of the quarter
13,197
6,544
19,741
12,684
6,358
19,042
Semi-annual
|
The
CCR8
table
below
presents
a
breakdown
of
exposures
to
CCPs
and
related
RWA.
Compared
with
31 December
2024,
exposures
to
qualifying
CCPs
decreased
by
USD 22.9bn
to
USD 32.9bn,
primarily
due
to
the
increased recognition of trades under the more
risk-sensitive IMM rather than the SA-CCR approach
.
CCR8: Exposures to central counterparties
30.6.25
31.12.24
USD m
EAD (post-CRM)
RWA
EAD (post-CRM)
RWA
1
Exposures to QCCPs (total)
1
32,933
1,720
55,868
1,959
2
Exposures for trades at QCCPs (excluding initial margin and
default fund contributions); of which
27,828
501
28,585
481
3
(i) OTC derivatives
3,009
60
4,623
88
4
(ii) Exchange-traded derivatives
17,675
314
15,744
229
5
(iii) Securities financing transactions
7,144
126
8,217
164
6
(iv) Netting sets where cross-product netting has been approved
7
Segregated initial margin
8
Non-segregated initial margin
2
2,227
75
24,132
95
9
Pre-funded default fund contributions
2,878
1,144
3,152
1,382
10
Unfunded default fund contributions
11
Exposures to non-QCCPs (total)
444
633
370
444
12
Exposures for trades at non-QCCPs (excluding initial margin
and default fund contributions); of which
345
345
336
336
13
(i) OTC derivatives
14
(ii) Exchange-traded derivatives
219
219
282
282
15
(iii) Securities financing transactions
125
125
53
53
16
(iv) Netting sets where cross-product netting has been approved
17
Segregated initial margin
18
Non-segregated initial margin
2
82
82
7
7
19
Pre-funded default fund contributions
9
118
23
49
20
Unfunded default fund contributions
3
7
88
4
52
1 Qualifying central counterparties (QCCPs) are entities that are licensed by regulators to operate as CCPs and that meet the requirements outlined in the FINMA Ordinance on the Credit Risks of Banks and Securities
Firms (the CreO-FINMA).
2 Exposures associated with initial margin, where the exposures
are measured under the IMM or the VaR
approach, have been included within the exposures for
trades (refer to line 2 for
QCCPs and line 12 for non-QCCPs). The exposures for non-segregated initial margin (refer to line 8 for
QCCPs and line 18 for non-QCCPs), i.e. not bankruptcy remote in accordance with the
CreO-FINMA, reflect the
replacement costs under SA-CCR multiplied by an alpha factor of 1.4. The
RWA reflect the exposure multiplied by the applied risk weight of derivatives.
Under SA-CCR, collateral posted to a segregated, bankruptcy-
remote account does not increase the value of replacement costs.
3 Excludes unfunded default fund contributions that are not subject to RWA calculations in line with regulatory
guidance.
30 June 2025 Pillar 3 Report |
UBS Group | Credit valuation adjustment
30
Credit valuation adjustment
Overview
The
credit
valuation
adjustment
(CVA)
capital
charge
covers
the
risk
of
mark-to-market
losses
associated
with
the
deterioration of counterparty credit
quality. We apply
the standardized approach for
calculating CVA capital requirements
(SA-CVA) on positions
where we generally use
the internal model method
to derive the
exposure at default
for derivatives
and the full basic approach (BA-CVA) for all other positions.
›
Refer to “Overview of RWA and capital requirements” in the “Overview
of risk-weighted assets” section of this report for the
materiality of BA-CVA and SA-CVA risk-weighted assets and capital requirements
CVA exposures under BA-CVA
Semi-annual |
In this Pillar 3
report, we are
introducing the “CVA2:
The full basic
approach for CVA
(BA-CVA)” table for
the
first time,
as part
of the
final Basel III
standards. The
CVA2 table
shows the
components used
for the
computation of
capital
requirements
under
the
full
BA-CVA
for
CVA
risk.
BA-CVA
risk-weighted
assets
(RWA)
were
USD 5.6bn
as
of
30 June
2025.
As
we
have
introduced
the
full
BA-CVA
from
1 January
2025,
no
comparative-period
information
for
31 December 2024 is available.
CVA2: The full basic approach for CVA
(BA-CVA)
USD m
Capital
requirements
under BA-CVA
RWA
30.6.25
1
K
Reduced
471
5,893
2
K
Hedged
437
5,457
3
Total
1
445
5,566
1 Total is calculated as the sum of 75% K
Hedged
plus 25% K
Reduced
.
CVA exposures under SA-CVA
Semi-annual |
In this Pillar 3
report, we
are introducing the
“CVA3: The standardized
approach for CVA
(SA-CVA)” table
for
the first time, as part of the final Basel III standards. The
CVA3 table provides the components used for the computation
of capital requirements under the
SA-CVA for CVA risk. SA-CVA
RWA were USD 4.3bn as of
30 June 2025. As we have
introduced the SA-CVA from 1 January 2025, no comparative
-period information for 31 December 2024 is available.
CVA3: The standardized approach for CVA
(SA-CVA)
USD m, except where indicated
Capital
requirements
under SA-CVA
RWA
Number of
counterparties
30.6.25
1
Interest rate risk
37
457
2
Foreign exchange risk
31
390
3
Reference credit spread risk
6
71
4
Equity risk
6
79
5
Commodity risk
1
16
6
Counterparty credit spread risk
266
3,327
7
Total
347
4,338
12,137
RWA flow statements of CVA risk exposures under
SA-CVA
Quarterly |
The CVA4 table shows the variations in RWA for CVA risk determined under the SA-CVA.
The SA-CVA RWA was
stable at USD 4.3bn during the second quarter of 2025.
CVA4: RWA
flow statements of CVA risk exposures under SA-CVA
USD m
Total RWA
1
RWA as of 31.3.25
4,256
2
RWA as of 30.6.25
4,338
30 June 2025 Pillar 3 Report |
UBS Group | Securitizations
31
Securitizations
Introduction
Semi-annual |
This section
provides
details of
traditional and
synthetic
securitization
exposures
in the
banking and
trading
books based on the Basel III securitization framework.
In a traditional securitization
a pool of loans (or
other debt obligations) is
typically transferred to structured
entities that
have been established
to own
the pool and
to issue
tranched securities
to third-party
investors referencing
this pool
of
loans. In a synthetic securitization legal ownership of securitized pools of
assets is typically retained, but associated credit
risk is
transferred
to structured
entities,
typically
through
guarantees,
credit derivatives
or credit-linked
notes.
In
both
traditional and synthetic securitizations risk is dependent on the
seniority of the retained interest and the performance of
the underlying asset
pool. UBS is active
in various roles
in relation to securitization
activity, including originator,
investor
and sponsor, mainly via its Investment Bank and Personal & Corporate Banking business divisions
and, to a lesser extent,
in Non-core and Legacy, where it continues to exit its remaining exposures
.
Regulatory capital treatment of securitization structures
For
banking
book
securitizations
the
regulatory
capital
requirements
are
calculated
using
the
following
hierarchy
of
approaches: the securitization internal ratings-based approach, the securitization external ratings-based approach
or the
securitization standardized
approach. Otherwise,
a 1,250% risk
weight is applied
as a fallback.
External ratings used in
regulatory
capital calculations
for securitization
risk exposures
in the
banking book
are
obtained from
Fitch, Moody’s,
S&P or DBRS.
For trading book securitizations, the regulatory capital requirements
are calculated under the market risk framework.
Securitization exposures in the banking and trading books
Semi-annual |
The SEC1 table
shows the balance
sheet carrying values
of securitization exposures
in the banking
book as of
30 June 2025
and 31 December
2024, respectively.
For synthetic
securitizations, the
amounts disclosed
reflect the
net
exposure at default
on retained
positions. The
securitization activity
is further broken
down by role
(originator, sponsor
or investor) and by securitization type
(traditional or synthetic). The SEC3
and SEC4 tables provide the regulatory
capital
requirements associated with the banking book securitization
exposures differentiated by our role in the securitization.
Securitization exposures in the banking book are aimed at reducing or limiting risk and commensurately releasing capital
in accordance
with the
Basel rules
by securitizing
the underlying
assets. Structures
originated by
UBS typically
provide
protection against loss related to
specific credit exposures (e.g. loans, loan
commitments or debt instruments) by creating
synthetic
securitization
tranches
on
the
underlying
reference
portfolio.
Such
transactions
usually
consist
of
first
loss
protection provided
by a
third party
and typically a
senior tranche
retained by UBS.
Structures may
additionally entail
a
mezzanine tranche.
First loss and
mezzanine tranches
may be
fully funded or
partially funded.
Significant risk
transfers
through synthetic
securitization are
subject to
separate specific
risk limits
under the
authority of
the Board
of Directors
for
the
Group
overall,
with
sub-limits
under
the
authority
of
the
Group
Chief
Risk
Officer
for
Personal
&
Corporate
Banking
and
the
Investment
Bank.
Synthetic
securitization
exposure
originated
by
UBS
in
the
banking
book
was
USD 15.9bn
at
the
end
of
the
second
quarter
of
2025,
with
the
majority
of
the
risk-weighted
assets
(RWA)
impact
reflected in the Investment Bank.
Securitization exposures in the trading book resulted in USD 0.
2bn RWA as of 30 June 2025. Due to the low materiality,
we have discontinued the disclosure of the “SEC2: Securitization exposures in the trading book” table, starting with this
30 June 2025 Pillar 3 Report,
as allowed by the
Swiss Financial Market Supervisory
Authority (FINMA) Ordinance
on the
Disclosure Obligations of Banks and Securities Firms general
principles of disclosure.
›
Refer to “Market risk under standardized approach” in the “Market
risk” section of this report for more information about
RWA
of trading book securitizations
Development of securitization exposures in the first half
of 2025
Compared
with
31 December
2024,
securitization
exposures
in
the
banking
book
increased
by
USD 0.2bn
to
USD 31.6bn, reflecting an increase in the mortgage financing business,
partly offset by the exit from synthetic structures
in Personal & Corporate Banking.
30 June 2025 Pillar 3 Report |
UBS Group | Securitizations
32
SEC1: Securitization exposures in the banking book
1
Bank acts as originator
Bank acts as sponsor
Bank acts as investor
Total
USD m
Traditional
Synthetic
Subtotal
Traditional
Synthetic
Subtotal
Traditional
Synthetic
Subtotal
30.6.25
Asset classes
1
Retail (total)
130
130
5,078
5,078
5,207
2
of which: residential mortgage
91
91
5,070
5,070
5,161
3
of which: credit card receivables
4
of which: other retail exposures
2
38
38
8
8
46
5
Wholesale (total)
557
15,792
16,349
10,027
10,027
26,376
6
of which: loans to corporates or SME
383
10,229
10,612
6,217
6,217
16,829
7
of which: commercial mortgage
4,856
4,856
1,829
1,829
6,685
8
of which: lease and receivables
9
of which: other wholesale
174
707
881
1,981
1,981
2,862
10
Re-securitization
11
Total securitization / re-securitization
(including retail and wholesale)
557
15,922
16,479
15,105
15,105
31,584
31.12.24
Asset classes
1
Retail (total)
186
127
313
6
6
4,117
4,117
4,436
2
of which: residential mortgage
83
83
6
6
3,445
3,445
3,534
3
of which: credit card receivables
4
of which: other retail exposures
2
186
45
230
673
673
903
5
Wholesale (total)
159
18,797
18,956
353
353
7,666
7,666
26,975
6
of which: loans to corporates or SME
13,288
13,288
5,274
5,274
18,562
7
of which: commercial mortgage
5,509
5,509
683
683
6,192
8
of which: lease and receivables
9
of which: other wholesale
159
159
352
352
1,709
1,709
2,220
10
Re-securitization
3
3
3
11
Total securitization / re-securitization
(including retail and wholesale)
344
18,924
19,268
359
359
11,786
11,786
31,414
1 From the
second quarter of
2025 onward, we
have refined our
disclosure approach by
reclassifying certain exposures
where the bank
acts as an
investor previously reported
under “other wholesale”
into more
granular asset classes. Comparative-period information has been restated to reflect this change.
2 Includes unsecured consumer loans, solar leases and automobile loans.
30 June 2025 Pillar 3 Report |
UBS Group | Securitizations
33
SEC3: Securitization exposures in the banking book and associated regulatory capital requirements – bank acting as originator or as sponsor
USD m
Total
exposure
values
Exposure values (by RW bands)
Exposure values (by regulatory approach)
Total
RWA
RWA (by regulatory approach)
Total capital
charge after
cap
Capital charge after cap
30.6.25
≤20% RW
>20% to
50% RW
>50% to
100% RW
>100% to
<1,250%
RW
1,250% RW
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
Asset classes
1
Total exposures
16,461
16,130
174
18
120
20
16,078
363
20
3,524
2,776
503
244
285
225
40
20
2
Traditional securitization
539
222
172
18
108
20
156
363
20
818
71
503
244
66
6
40
20
3
of which: securitization
539
222
172
18
108
20
156
363
20
818
71
503
244
66
6
40
20
4
of which: retail underlying
5
of which: wholesale
539
222
172
18
108
20
156
363
20
818
71
503
244
66
6
40
20
6
of which: re-securitization
7
of which: senior
8
of which: non-senior
9
Synthetic securitization
15,922
15,908
1
12
15,922
2,705
2,705
219
219
10
of which: securitization
15,922
15,908
1
12
15,922
2,705
2,705
219
219
11
of which: retail underlying
130
129
130
23
23
2
2
12
of which: wholesale
15,792
15,779
1
12
15,792
2,682
2,682
218
218
13
of which: re-securitization
14
of which: senior
15
of which: non-senior
31.12.24
Asset classes
1
Total exposures
19,593
18,992
249
165
161
25
19,065
364
144
20
4,661
3,547
687
174
253
367
284
52
12
20
2
Traditional securitization
669
285
40
165
154
25
141
364
144
20
1,188
73
687
174
253
90
6
52
12
20
3
of which: securitization
669
285
40
165
154
25
141
364
144
20
1,188
73
687
174
253
90
6
52
12
20
4
of which: retail underlying
191
88
23
5
49
25
27
144
20
477
51
174
252
33
12
20
5
of which: wholesale
478
197
17
160
105
141
337
710
73
637
57
6
51
6
of which: re-securitization
7
of which: senior
8
of which: non-senior
9
Synthetic securitization
18,924
18,708
209
7
18,924
3,474
3,474
277
278
10
of which: securitization
18,924
18,708
209
7
18,924
3,474
3,474
277
278
11
of which: retail underlying
127
127
0
127
23
23
2
2
12
of which: wholesale
18,797
18,580
209
7
18,797
3,450
3,450
276
276
13
of which: re-securitization
14
of which: senior
15
of which: non-senior
30 June 2025 Pillar 3 Report |
UBS Group | Securitizations
34
SEC4: Securitization exposures in the banking book and associated regulatory capital requirements – bank acting as investor
USD m
Total
exposure
values
Exposure values (by RW bands)
Exposure values (by regulatory approach)
Total
RWA
RWA (by regulatory approach)
Total capital
charge after
cap
Capital charge after cap
30.6.25
≤20% RW
>20% to
50% RW
>50% to
100% RW
>100% to
<1,250%
RW
1,250% RW
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
SEC-
IRBA
SEC-
ERBA
SEC-SA
1,250%
Asset classes
1
Total exposures
15,123
10,725
4,036
326
27
10
752
1,262
13,099
10
2,704
208
44
2,341
111
237
17
24
187
10
2
Traditional securitization
15,123
10,725
4,036
326
27
10
752
1,262
13,099
10
2,704
208
44
2,341
111
237
17
24
187
10
3
of which: securitization
15,123
10,725
4,036
326
27
10
752
1,262
13,099
10
2,704
208
44
2,341
111
237
17
24
187
10
4
of which: retail underlying
5,095
1,532
3,534
3
27
35
5,060
1,009
31
977
86
3
84
5
of which: wholesale
10,027
9,193
502
323
10
752
1,227
8,039
10
1,696
208
13
1,364
111
151
17
21
104
10
6
of which: re-securitization
7
of which: senior
8
of which: non-senior
9
Synthetic securitization
10
of which: securitization
11
of which: retail underlying
12
of which: wholesale
13
of which: re-securitization
14
of which: senior
15
of which: non-senior
31.12.24
Asset classes
1
Total exposures
11,919
9,330
2,176
265
120
29
1,039
10,851
28
2,846
331
2,164
350
227
27
172
29
2
Traditional securitization
11,919
9,330
2,176
265
120
29
1,039
10,851
28
2,846
331
2,164
350
227
27
172
29
3
of which: securitization
11,916
9,330
2,176
265
120
26
1,039
10,851
25
2,812
331
2,164
316
225
27
172
26
4
of which: retail underlying
4,196
2,682
1,503
1
10
45
4,151
818
26
792
0
66
2
64
5
of which: wholesale
7,720
6,647
674
264
110
26
995
6,700
25
1,995
306
1,372
316
159
24
109
26
6
of which: re-securitization
3
3
3
34
34
3
3
7
of which: senior
3
3
3
34
34
3
3
8
of which: non-senior
9
Synthetic securitization
10
of which: securitization
11
of which: retail underlying
12
of which: wholesale
13
of which: re-securitization
14
of which: senior
15
of which: non-senior
30 June 2025 Pillar 3 Report |
UBS Group | Market risk
35
Market risk
Overview
Semi-annual |
The final
Basel III standards
on the
minimum capital
requirements for
market risk
of the
Basel Committee
on
Banking Supervision,
known as
the Fundamental
Review of the
Trading Book
(the FRTB)
framework, entered
into force
in Switzerland on
1 January 2025.
We currently
apply the
standardized approach
of the FRTB
framework, in
which the
minimum
market
risk
capital
requirements
are
computed
on
the
basis
of
three
components:
the
sensitivities-based
method (the
SBM),
the
default risk
charge
(the
DRC) and
the
residual risk
add-on
(the
RRAO). The
SBM
captures
the
delta,
vega
and
curvature
risk
of
the
underlying
trading
positions,
and
the
DRC
captures
the
jump-to-default
risk
in
positions subject to equity
and credit risk. In addition,
positions that may not
be adequately capitalized by
the SBM and
the DRC also attract an RRAO charge. The new
FRTB framework replaced the value-at-risk (VaR)- and stressed VaR-based
Basel 2.5 market risk framework.
Market risk under standardized approach
Semi-annual |
In this Pillar 3
report, we are introducing the
“MR1: Market risk under standardized
approach”
table for the first
time, as part of the final
Basel III standards. The MR1
table shows the components
of risk-weighted assets (RWA)
under
the standardized approach.
Market risk RWA under the standardized approach were USD 30.5bn as
of 30 June 2025. As
we
have
introduced
the
standardized
approach
of
the
FRTB
framework
from
1 January
2025, no
comparative-period
information for 31 December 2024 is available.
MR1: Market risk under standardized approach
RWA in standardized approach
USD m
30.6.25
1
General interest rate risk
5,220
2
Equity risk
7,399
3
Commodity risk
761
4
Foreign exchange risk
1,475
5
Credit spread risk – non-securitizations
2,903
6
Credit spread risk – securitizations (non-correlation trading portfolio)
20
7
Credit spread risk – securitizations (correlation trading portfolio)
0
8
Default risk – non-securitizations
4,353
9
Default risk – securitizations (non-correlation trading portfolio)
169
10
Default risk – securitizations (correlation trading portfolio)
0
11
Residual risk add-on
7,782
12
Internal risk transfers
1
386
13
Total
30,469
1 Internal risk transfer charge refers to the capital requirement calculated for the risk transferred between the banking book
and the trading book, typically for hedging purposes.
30 June 2025 Pillar 3 Report |
UBS Group | Going and gone concern
requirements and eligible capital
36
Going and gone concern requirements and eligible
capital
Quarterly |
The table
below provides
details of
the Swiss
systemically relevant
bank (SRB)
going and
gone concern
capital
requirements as required
by the Swiss Financial Market Supervisory Authority (FINMA
).
›
Refer to the “Capital management” section of
the UBS Group second quarter 2025 report,
available under ”Quarterly reporting”
at
ubs.com/investors
, for more information about capital management
Swiss SRB going and gone concern requirements and information
As of 30.6.25
RWA
LRD
USD m, except where indicated
in %
in %
Required going concern capital
Total going concern capital
14.94
1
75,367
5.00
1
82,904
Common equity tier 1 capital
10.59
2
53,407
3.50
3
58,033
of which: minimum capital
4.50
22,702
1.50
24,871
of which: buffer capital
5.50
27,747
2.00
33,162
of which: countercyclical buffer
0.46
2,338
Maximum additional tier 1 capital
4.35
2
21,960
1.50
24,871
of which: additional tier 1 capital
3.50
17,657
1.50
24,871
of which: additional tier 1 buffer capital
0.80
4,036
Eligible going concern capital
Total going concern capital
18.18
91,721
5.53
91,721
Common equity tier 1 capital
14.41
72,709
4.39
72,709
Total loss-absorbing additional tier 1 capital
3.77
19,012
1.15
19,012
of which: high-trigger loss-absorbing additional tier 1 capital
3.77
19,012
1.15
19,012
Required gone concern capital
Total gone concern loss-absorbing capacity
4,5,6
10.73
7
54,108
3.75
7
62,178
of which: base requirement including add-ons for market share and
LRD
10.73
54,108
3.75
62,178
Eligible gone concern capital
Total gone concern loss-absorbing capacity
19.71
99,450
6.00
99,450
Total tier 2 capital
0.04
196
0.01
196
of which: non-Basel III-compliant tier 2 capital
0.04
196
0.01
196
TLAC-eligible senior unsecured debt
19.67
99,254
5.99
99,254
Total loss-absorbing capacity
Required total loss-absorbing capacity
25.66
129,475
8.75
145,083
Eligible total loss-absorbing capacity
37.89
191,171
11.53
191,171
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
504,500
Leverage ratio denominator
1,658,089
1 Includes applicable add-ons of 1.62% for risk-weighted assets
(RWA) and 0.50% for leverage ratio
denominator (LRD), of which 18 basis points for RWA reflect
the Pillar 2 capital add-on for the residual exposure
(after collateral mitigation)
to hedge funds,
private equity and
family offices,
effective 1 January
2025.
2 Includes the
Pillar 2 add-on for
the residual exposure (after
collateral mitigation) to
hedge funds, private
equity and family offices of 0.12%
for CET1 capital and 0.05% for
AT1 capital, effective 1
January 2025. For AT1
capital, under Pillar 1 requirements,
a maximum of 4.3% of AT1
capital can be used to meet
going
concern requirements; 4.35% includes the
aforementioned Pillar 2 capital
add-on.
3 Our CET1 leverage ratio
requirement of 3.50% consists of
a 1.5% base requirement,
a 1.5% base buffer
capital requirement,
a 0.25% LRD add-on requirement and a 0.25% market share add-on requirement based on our Swiss credit business.
4 A maximum of 25% of the gone concern requirements can be met with instruments that have
a remaining maturity
of between one
and two years.
Once at least
75% of
the minimum
gone concern
requirement has been
met with
instruments that
have a remaining
maturity of greater
than two
years, all
instruments that have a remaining
maturity of between one
and two years remain
eligible to be included
in the total gone concern
capital.
5 From 1 January
2023, the resolvability discount
on the gone concern
capital requirements for systemically important
banks (SIBs) has been replaced with
reduced base gone concern capital requirements
equivalent to 75% of the total
going concern requirements (excluding countercyclical
buffer requirements and the Pillar
2 add-on).
6 As of July 2024,
the Swiss Financial Market
Supervisory Authority (FINMA) has the
authority to impose a
surcharge of up to 25%
of the total going concern
capital
requirements (excluding countercyclical buffer requirements and the Pillar 2 add-on) should obstacles to an SIB’s resolvability be identified in future resolvability assessments.
7 Includes applicable add-ons of 1.08%
for RWA and 0.38% for LRD.
30 June 2025 Pillar 3 Report |
UBS Group | Going and gone concern
requirements and eligible capital
37
Semi-annual |
The
CCyB1
table
below
provides
details
of
the
risk-weighted
assets
(RWA)
used
in
the
computation
of
the
countercyclical
capital
buffer
(the
CCyB)
requirement
applicable
to
private-sector
exposures
in
UBS Group
AG consolidated. During the
first half
of 2025
our bank-specific CCyB
requirement decreased by
3 basis points
to 13 basis
points, primarily driven by
a reduction in RWA.
Notably, CCyB rates remained
unchanged compared with their
levels on
31 December 2024.
›
Refer to the “Risk management and control” section of the
UBS Group Annual Report 2024, available under ”Annual
reporting” at
ubs.com/investors
, for more information about the methodology
of geographical allocation used
CCyB1: Geographical distribution of credit exposures used in the countercyclical capital buffer
USD m, except where indicated
30.6.25
Geographical breakdown
Countercyclical capital
buffer rate, %
Risk-weighted assets
used in the computation
of the countercyclical
capital buffer
1
Bank-specific
countercyclical capital
buffer rate, %
Countercyclical amount
Hong Kong SAR
0.50
1,717
Luxembourg
0.50
5,982
United Kingdom
2.00
11,819
Sweden
2.00
544
Australia
1.00
2,265
Germany
0.75
4,427
France
1.00
2,310
Netherlands
2.00
1,697
Belgium
1.00
593
South Korea
1.00
330
Sum
31,684
Total
313,467
0.13
656
1 Includes private-sector exposures in the
countries that are Basel Committee on
Banking Supervision (BCBS)-member jurisdictions, under the following categories:
“Credit risk”, “Counterparty credit risk”, “Settlement
risk”, “Securitization exposures in the banking book” and “Amounts
below thresholds for deduction (250% risk weight)”, as well as the corresponding trading book charges included under “Marke
t
risk”.
Explanation of the differences between the IFRS Accounting
Standards and regulatory scopes of
consolidation
Semi-annual |
As of 30 June
2025, UBS
Asset Management
Life Ltd
(total assets
on a
standalone basis
as of
30 June 2025:
USD 19,651m; total equity on a
standalone basis as of 30 June 2025:
USD 34m) represented
the most significant entity
that
was
included
in
the
IFRS
Accounting
Standards
scope
of
consolidation
but
not
in
the
regulatory
scope
of
consolidation. This
life insurance
entity accounts
for most
of the
difference
between the
“Balance sheet
in accordance
with IFRS Accounting Standards scope of consolidation”
and the “Balance sheet in accordance with regulatory
scope of
consolidation” columns
in the
CC2 table
in this
report. The
difference
is mainly
related
to financial
assets at
fair value
not held for trading and other financial liabilities
designated at fair value. Further differences
are mainly related to other
entities that
are not
active in
banking and
finance and
are, therefore,
generally not
consolidated under
the regulatory
scope of consolidation.
In
the
banking
book,
certain
equity
investments
are
not
consolidated
under
either
the
IFRS
Accounting
Standards
or
under the regulatory scopes. As of 30 June 2025, these investments mainly consisted of infrastructure holdings and joint
operations
(e.g.
settlement
and
clearing
institutions,
and
stock
and
financial
futures
exchanges)
and
included
our
participation in SIX Group. These investments are
risk weighted based on applicable threshold rules.
›
Refer to our legal entity structure, available under
“Holding company and significant regulated subsidiaries
and sub-groups” at
ubs.com/investors
, for more information about the legal structure
of the UBS Group and to “Note 1 Summary of
material
accounting policies” in the “Consolidated financial
statements” section of the UBS Group Annual Report 2024,
available under
“Annual reporting” at
ubs.com/investors
, for more information about the IFRS Accounting Standards
scope of consolidation
›
Refer to the “Linkage between financial statements
and regulatory exposures” section of the 31 December
2024 Pillar 3 Report,
available under “Pillar 3 disclosures” at
ubs.com/investors
, for more information about differences between the IFRS Accounting
Standards and regulatory scopes of consolidation
30 June 2025 Pillar 3 Report |
UBS Group | Going and gone concern
requirements and eligible capital
38
Semi-annual |
The CC2
table below
provides a
reconciliation
of the
balance sheet
under IFRS
Accounting Standards
to the
balance
sheet
according
to
the
regulatory
scope
of
consolidation
as
defined
by
the
Basel
Committee
on
Banking
Supervision (the BCBS) and FINMA. Lines in the balance sheet under the regulatory scope of consolidation are
expanded
and referenced where
relevant to display all components
that are used in the “CC1:
Composition of regulatory capital”
table.
CC2: Reconciliation of accounting balance sheet to balance sheet under the regulatory scope of consolidation
As of 30.6.25
Balance sheet in
accordance with
IFRS Accounting
Standards scope
of consolidation
Effect of
deconsolidated,
proportionally
consolidated or
additional consolidated
entities for regulatory
consolidation
Balance sheet in
accordance with
regulatory scope of
consolidation
References
1
USD m
Assets
Cash and balances at central banks
236,193
0
236,193
Amounts due from banks
21,527
(89)
21,438
Receivables from securities financing transactions measured at amortized
cost
110,161
(17)
110,145
Cash collateral receivables on derivative instruments
45,478
45,478
Loans and advances to customers
646,048
1,055
647,103
Other financial assets measured at amortized cost
72,211
(85)
72,126
Total financial assets measured at amortized cost
1,131,618
865
1,132,482
Financial assets at fair value held for trading
169,195
10
169,205
of which: assets pledged as collateral that may be sold or repledged
by counterparties
46,336
46,336
Derivative financial instruments
169,996
10
170,006
Brokerage receivables
29,068
29,068
Financial assets at fair value not held for trading
107,755
(19,562)
88,192
Total financial assets measured at fair value through profit or loss
476,014
(19,542)
456,472
Financial assets measured at fair value through other comprehensive income
6,872
(56)
6,816
Investments in associates
2,629
599
3,228
of which: goodwill
43
43
4
Property, equipment and software
16,376
(213)
16,164
Goodwill and intangible assets
7,023
(52)
6,971
of which: goodwill
6,072
6,072
4
of which: intangible assets
951
(52)
899
5
Deferred tax assets
11,631
(17)
11,614
of which: deferred tax assets recognized for tax loss carry-forwards
and unused tax credits
carried forward
3,394
(13)
3,382
6
of which: deferred tax assets on temporary differences
8,236
(4)
8,232
10
Other non-financial assets
17,829
(563)
17,265
of which: net defined benefit pension and other post-employment
assets
1,087
1,087
8
Total assets
1,669,991
(18,980)
1,651,011
30 June 2025 Pillar 3 Report |
UBS Group | Going and gone concern
requirements and eligible capital
39
CC2: Reconciliation of accounting balance sheet to balance sheet under the regulatory scope of consolidation
(continued)
As of 30.6.25
Balance sheet in
accordance with
IFRS Accounting
Standards scope
of consolidation
Effect of
deconsolidated,
proportionally
consolidated or
additional consolidated
entities for regulatory
consolidation
Balance sheet in
accordance with
regulatory scope of
consolidation
References
1
USD m
Liabilities
Amounts due to banks
31,928
113
32,041
Payables from securities financing transactions measured at amortized cost
16,314
16,314
Cash collateral payables on derivative instruments
32,980
1
32,981
Customer deposits
800,045
483
800,528
Debt issued measured at amortized cost
224,709
224,709
of which: amount eligible for high-trigger loss-absorbing additional
tier 1 capital
16,608
16,608
9
Other financial liabilities measured at amortized cost
18,358
75
18,433
Total financial liabilities measured at amortized cost
1,124,334
673
1,125,006
Financial liabilities at fair value held for trading
52,330
52,330
Derivative financial instruments
183,814
6
183,820
Brokerage payables designated at fair value
57,951
57,951
Debt issued designated at fair value
113,522
10
113,532
Other financial liabilities designated at fair value
29,410
(19,669)
9,741
Total financial liabilities measured at fair value through profit or loss
437,027
(19,653)
417,374
Provisions and contingent liabilities
7,466
(480)
6,986
Other non-financial liabilities
11,465
40
11,505
of which: amount eligible for high-trigger loss-absorbing capital
(Deferred Contingent
Capital Plan (DCCP))
2
1,602
1,602
9
of which: deferred tax liabilities related to goodwill
313
313
4
of which: deferred tax liabilities related to other intangible
assets
154
154
5
Total non-financial liabilities
18,931
(440)
18,491
Total liabilities
1,580,292
(19,420)
1,560,872
Equity
Share capital
334
334
1
Share premium
8,562
0
8,562
1
Treasury shares
(4,830)
(4,830)
3
Retained earnings
79,726
8
79,734
2
Other comprehensive income recognized directly in equity, net of tax
5,485
(8)
5,476
3
of which: unrealized gains / (losses) from cash flow hedges
(1,527)
(1,527)
7
Equity attributable to shareholders
89,277
0
89,277
Equity attributable to non-controlling interests
422
440
863
Total equity
89,699
440
90,140
Total liabilities and equity
1,669,991
(18,980)
1,651,011
1 References link the lines
of this table to the
respective reference numbers provided in the
“References” column in the “CC1: Composition of
regulatory capital” table in this section.
2 The IFRS Accounting Standards
carrying amount of total DCCP liabilities was USD 1,907m as of 30 June 2025. Refer to the “Compensation” section of the UBS Group Annual Report 2024, available
under ”Annual reporting” at ubs.com/investors,
for more information about the DCCP.
30 June 2025 Pillar 3 Report |
UBS Group | Going and gone concern
requirements and eligible capital
40
Semi-annual |
The CC1 table below provides the composition of capital
in the format prescribed by the BCBS and FINMA,
and
is based
on BCBS
Basel III
rules, unless
stated
otherwise.
Reference
is made
to
items reconciling
to the
balance
sheet
under
the
regulatory
scope
of
consolidation
as
disclosed
in
the
“CC2:
Reconciliation
of
accounting
balance
sheet
to
balance sheet under the regulatory scope of consolidation”
table in this section.
›
Refer to the documents titled “Capital and total
loss-absorbing instruments of UBS Group AG consolidated,
UBS AG consolidated
and standalone – Key features” and “UBS Group AG consolidated
capital instruments and TLAC-eligible senior
unsecured debt”,
available under “Bondholder information” at
ubs.com/investors,
for an overview of the main features of our regulatory
capital
instruments, as well as the full terms and
conditions
CC1: Composition of regulatory capital
As of 30.6.25
Amounts
References
1
USD m, except where indicated
Common Equity Tier 1 capital: instruments and reserves
1
Directly issued qualifying common share (and equivalent for non-joint stock
companies) capital plus related stock surplus
8,896
1
2
Retained earnings
79,734
2
3
Accumulated other comprehensive income (and other reserves)
647
3
5
Common share capital issued by subsidiaries and held by
third parties (amount allowed in group CET1)
6
Common Equity Tier 1 capital before regulatory adjustments
89,277
Common Equity Tier 1 capital: regulatory adjustments
7
Prudent valuation adjustments
(176)
8
Goodwill (net of related tax liability)
(5,779)
4
9
Other intangibles other than mortgage servicing rights (net of
related tax liability)
(742)
5
10
Deferred tax assets that rely on future profitability, excluding those arising
from temporary differences (net of related tax liability)
2
(3,398)
6
11
Cash flow hedge reserve
1,527
7
12
Shortfall of provisions to expected losses
(592)
13
Securitization gain on sale
14
Gains and losses due to changes in own credit risk on fair
valued liabilities
956
15
Defined benefit pension fund net assets
(1,054)
8
16
Investments in own shares (if not already subtracted from paid-in capital
on reported balance sheet)
(3,756)
3
9
17
Reciprocal cross-holdings in common equity
17a
Qualified holdings where a significant influence is exercised
with other owners (CET1 instruments)
17b
Immaterial investments (CET1 items)
18
Investments in the capital of banking, financial and insurance entities
that are outside the scope of regulatory consolidation, where
the bank
does not own more than 10% of the issued share capital (amount
above 10% threshold)
19
Significant investments in the common stock of banking, financial
and insurance entities that are outside the scope of regulatory
consolidation
(amount above 10% threshold)
20
Mortgage servicing rights (amount above 10% threshold)
21
Deferred tax assets arising from temporary differences (amount
above 10% threshold, net of related tax liability)
(1,070)
10
22
Amount exceeding the 15% threshold
23
of which: significant investments in the common stock of financials
24
of which: mortgage servicing rights
25
of which: deferred tax assets arising from temporary differences
26
National specific regulatory adjustments
26a
of which: adjustments to financial statements in accordance
with a recognized international accounting standard
26b
Other adjustments
(2,484)
4
27
Regulatory adjustments applied to Common Equity
Tier 1 due to insufficient Additional Tier 1 and Tier 2 to cover deductions
28
Total regulatory adjustments to Common Equity Tier 1
(16,568)
29
Common Equity Tier 1 capital (CET1)
72,709
30 June 2025 Pillar 3 Report |
UBS Group | Going and gone concern
requirements and eligible capital
41
CC1: Composition of regulatory capital (continued)
As of 30.6.25
Amounts
References
1
USD m, except where indicated
Additional Tier 1 capital: instruments
30
Directly issued qualifying additional Tier 1 instruments plus related stock
surplus
19,012
31
of which: classified as equity under applicable accounting
standards
32
of which: classified as liabilities under applicable accounting
standards
19,012
33
Directly issued capital instruments subject to phase-out from
additional Tier 1
34
Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued
by subsidiaries and held by third parties (amount allowed
in
group AT1)
36
Additional Tier 1 capital before regulatory adjustments
19,012
Additional Tier 1 capital: regulatory adjustments
37
Investments in own additional Tier 1 instruments
5
38
Reciprocal cross-holdings in additional Tier 1 instruments
38a
Qualified holdings where a significant influence is exercised
with other owners (AT1 instruments)
38b
Immaterial investments (AT1 instruments)
39
Investments in the capital of banking, financial and insurance entities
that are outside the scope of regulatory consolidation, where
the bank
does not own more than 10% of the issued common share capital
of the entity (amount above 10% threshold)
40
Significant investments in the capital of banking, financial
and insurance entities that are outside the scope of regulatory
consolidation
41
National specific regulatory adjustments
42
Regulatory adjustments applied to additional Tier 1 due to insufficient
Tier 2 to cover deductions
42a
Regulatory adjustments applied to CET1 capital due
to insufficient additional Tier 1 to cover deductions
43
Total regulatory adjustments to additional Tier 1 capital
44
Additional Tier 1 capital (AT1)
19,012
9
45
Tier 1 capital (T1 = CET1 + AT1)
91,721
Tier 2 capital: instruments and provisions
46
Directly issued qualifying Tier 2 instruments plus related stock surplus
48
Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 34) issued by
subsidiaries and held by third parties (amount
allowed in group Tier 2)
50
Provisions
51
Tier 2 capital before regulatory adjustments
Tier 2 capital: regulatory adjustments
52
Investments in own Tier 2 instruments
53
Reciprocal cross-holdings in Tier 2 instruments and other TLAC liabilities
53a
Qualified holdings where a significant influence is exercised
with other owners (T2 instruments and other TLAC instruments)
53b
Immaterial investments (T2 instruments and other TLAC
instruments)
54
Investments in the capital and other TLAC liabilities of banking, financial
and insurance entities that are outside the scope of regulatory
consolidation, where the bank does not own more than 10%
of the issued common share capital of the entity (amount
above 10% threshold)
55
Significant investments in the capital and other TLAC liabilities
of banking, financial and insurance entities that are outside
the scope of
regulatory consolidation (net of eligible short positions)
56
National specific regulatory adjustments
56a
Excess of the adjustments, which are allocated to the AT1 capital
57
Total regulatory adjustments to Tier 2 capital
58
Tier 2 capital (T2)
59
Total regulatory capital (TC = T1 + T2)
91,721
60
Total risk-weighted assets
504,500
Capital ratios and buffers
61
Common Equity Tier 1 (as a percentage of risk-weighted assets)
14.41
62
Tier 1 (as a percentage of risk-weighted assets)
18.18
63
Total capital (as a percentage of risk-weighted assets)
18.18
64
Institution-specific buffer requirement (capital conservation buffer
plus countercyclical buffer requirements plus higher
loss absorbency
requirement, expressed as a percentage of risk-weighted assets)
6
4.13
65
of which: capital conservation buffer requirement
2.50
66
of which: bank-specific countercyclical buffer requirement
0.13
67
of which: higher loss absorbency requirement
1.50
68
Common Equity Tier 1 (as a percentage of risk-weighted assets) available after
meeting the bank’s minimum capital requirements
9.91
Amounts below the thresholds for deduction (before risk weighting)
72
Non-significant investments in the capital and other TLAC liabilities of
other financial entities
4,106
73
Significant investments in the common stock of financial entities
3,523
74
Mortgage servicing rights (net of related tax liability)
3
75
Deferred tax assets arising from temporary differences (net of
related tax liability)
7,378
Applicable caps on the inclusion of provisions in Tier 2
76
Provisions eligible for inclusion in Tier 2 in respect of exposures subject
to standardized approach (prior to application of cap)
77
Cap on inclusion of provisions in Tier 2 under standardized approach
78
Provisions eligible for inclusion in Tier 2 in respect of exposures subject
to internal ratings-based approach (prior to application of cap)
79
Cap for inclusion of provisions in Tier 2 under internal ratings-based approach
1 References link the lines of this table to the respective reference numbers provided in
the “References” column in the “CC2: Reconciliation of accounting balance sheet
to balance sheet under the regulatory scope
of consolidation” table
in this section.
2 IFRS Accounting Standards
netting for deferred
tax assets and
liabilities is reversed
for items deducted
from CET1 capital.
3 Includes USD
2,006m capital reserves
for
expected future share
repurchases.
4 Includes USD 1,032m
in a compensation-related
charge for regulatory
capital purposes
5 Under IFRS Accounting
Standards, debt issued
and subsequently repurchased
is
treated as extinguished.
6 BCBS requirements are exceeded by UBS’s Swiss SRB requirements. Refer
to the “Capital, liquidity and funding,
and balance sheet“ section of the UBS
Group Annual Report 2024, available
under ”Annual reporting” at ubs.com/investors, for more information about the Swiss SRB
requirements.
30 June 2025 Pillar 3 Report |
UBS Group | Total loss-absorbing capacity
42
Total loss-absorbing capacity
Resolution group – composition of total loss-absorbing
capacity
Semi-annual
|
The
TLAC1
table
below
is
based
on
Basel
Committee
on
Banking
Supervision
rules
and
only
applicable
to
UBS Group AG
as
the
ultimate
parent
entity
of
the
defined
UBS
resolution
group,
to
which,
in
case
of
resolution,
resolution tools (e.g. a bail-in) are expected to be applied.
In the
first half
of 2025,
our eligible additional
tier 1 (AT1) instruments
increased by USD 2.6bn,
mainly driven by
issuances
of AT1 capital instruments equivalent to a total
of USD 3.0bn and positive impacts from
interest rate risk hedge, foreign
currency translation and other effects, partly offset by the
call of AT1 capital instruments equivalent to USD 1.3bn.
Non-regulatory capital
elements of
total loss-absorbing
capacity (TLAC)
increased by
USD 1.8bn, mainly
driven by
new
issuances of
TLAC-eligible senior
unsecured debt
instruments totaling
USD 6.6bn equivalent
and positive
impacts from
interest
rate
risk
hedge,
foreign
currency
translation
and
other
effects.
These
effects
were
partly
offset
by
the
call
of
USD 7.0bn equivalent
TLAC-eligible senior
unsecured debt
instruments and
USD 4.1bn equivalent
TLAC-eligible
senior
unsecured debt
instruments ceasing
to be eligible
as non-regulatory
capital elements
of TLAC as
they entered
the final
year before maturity.
TLAC1: TLAC composition for G-SIBs (at resolution group level)
30.6.25
31.12.24
USD m, except where indicated
Regulatory capital elements of TLAC and adjustments
1
Common Equity Tier 1 capital (CET1)
72,709
71,367
2
Additional Tier 1 capital (AT1) before TLAC adjustments
19,012
16,372
3
AT1 ineligible as TLAC as issued out of subsidiaries to third parties
4
Other adjustments
5
Total AT1 instruments eligible under the TLAC framework
19,012
16,372
6
Tier 2 capital (T2) before TLAC adjustments
1
7
Amortized portion of T2 instruments where remaining maturity
> 1 year
8
T2 capital ineligible as TLAC as issued out of subsidiaries
to third parties
9
Other adjustments
10
Total T2 instruments eligible under the TLAC framework
1
11
TLAC arising from regulatory capital
91,721
87,739
Non-regulatory capital elements of TLAC
12
External TLAC instruments issued directly by the bank and subordinated
to excluded liabilities
13
External TLAC instruments issued directly by the bank which are not
subordinated to excluded liabilities but meet all other
TLAC term sheet
requirements
99,254
97,449
14
of which: amount eligible as TLAC after application of the caps
15
External TLAC instruments issued by funding vehicles prior
to 1 January 2022
196
207
16
Eligible ex ante commitments to recapitalize a G-SIB in
resolution
17
TLAC arising from non-regulatory capital instruments before adjustments
99,450
97,655
Non-regulatory capital elements of TLAC: adjustments
18
TLAC before deductions
191,171
185,395
19
Deductions of exposures between multiple-point-of-entry
(MPE) resolution groups that correspond to items
eligible for TLAC (not applicable to
SPE G-SIBs)
20
Deduction of investments in own other TLAC liabilities
1
21
Other adjustments to TLAC
22
TLAC after deductions
191,171
185,395
Risk-weighted assets and leverage exposure measure for TLAC purposes
23
Total risk-weighted assets adjusted as permitted under the TLAC regime
504,500
498,538
24
Leverage exposure measure
1,658,089
1,519,477
TLAC ratios and buffers
25
TLAC (as a percentage of risk-weighted assets adjusted as permitted
under the TLAC regime)
37.89
37.19
26
TLAC (as a percentage of leverage exposure)
11.53
12.20
27
CET1 (as a percentage of risk-weighted assets) available after meeting
the resolution group’s minimum capital and TLAC requirements
9.91
9.60
28
Institution-specific buffer requirement (capital conservation buffer
plus countercyclical buffer requirements plus higher
loss absorbency
requirement, expressed as a percentage of risk-weighted assets)
4.13
3.66
29
of which: capital conservation buffer requirement
2.50
2.50
30
of which: bank-specific countercyclical buffer requirement
0.13
0.16
31
of which: higher loss absorbency requirement
1.50
1.00
1 Under IFRS Accounting Standards, debt issued and subsequently repurchased is treated as extinguished.
30 June 2025 Pillar 3 Report |
UBS Group | Total loss-absorbing capacity
43
Resolution entity – creditor ranking at legal entity level
Semi-annual
|
The
TLAC3
table
below
provides
an
overview
of
the
creditor
ranking
structure
of
the
resolution
entity,
UBS Group AG, on a standalone basis.
UBS Group AG issues loss-absorbing AT1 capital instruments and
TLAC-eligible senior unsecured debt.
UBS Group AG grants Deferred
Contingent Capital Plan
awards to UBS Group
employees,
which qualify as Basel
III AT1
capital
on
a
UBS Group
consolidated
basis
and
totaled
USD 2,405m
as
of
30 June
2025
(31 December
2024:
USD 2,044m).
The
related
liabilities
of
UBS Group AG
on
a
standalone
basis
of
USD 1,589m
(31 December
2024:
USD 1,519m) are
not included
in the
table below,
as these
do not
give rise
to any
current claims
until the
awards are
legally vested.
As
of
30 June
2025,
the
TLAC
available
on
a
UBS Group AG
consolidated
basis
amounted
to
USD 191,171m
(31 December 2024: USD 185,395m).
›
Refer to “Holding company and significant regulated
subsidiaries and sub-groups” at
ubs.com/investors
for more information
about UBS Group AG standalone for the six-month
period ended 30 June 2025
›
Refer to “Bondholder information” at
ubs.com/investors
for more information
›
Refer to the “TLAC1: TLAC composition for
G-SIBs (at resolution group level)” table in this section
for more information about
TLAC for UBS Group AG consolidated
TLAC3: Creditor ranking at legal entity level for the resolution entity,
UBS Group AG
As of 30.6.25
Creditor ranking
Total
USD m
1
2
3
1
Description of creditor ranking
Common shares
(most junior)
1
Additional Tier 1
Bail-in debt and
pari passu
liabilities
(most senior)
2
Total capital and liabilities net of credit risk mitigation
2
67,139
17,180
117,189
201,507
3
Subset of row 2 that are excluded liabilities
4
Total capital and liabilities less excluded liabilities (row 2 minus row 3)
67,139
17,180
3,4,5
117,189
6,7
201,507
5
Subset of row 4 that are potentially eligible as TLAC
67,139
16,797
5
105,352
8
189,287
6
Subset of row 5 with 1 year ≤ residual maturity < 2 years
14,792
9
14,792
7
Subset of row 5 with 2 years ≤ residual maturity < 5 years
37,024
37,024
8
Subset of row 5 with 5 years ≤ residual maturity < 10 years
39,992
39,992
9
Subset of row 5 with residual maturity ≥ 10 years, but excluding perpetual
securities
13,543
13,543
10
Subset of row 5 that is perpetual securities
67,139
16,797
83,936
1 Common shares including the associated reserves are equal to the equity of UBS Group AG standalone attributable to shareholders.
2 No credit risk mitigation is applied to capital and liabilities for UBS Group AG
standalone.
3 Includes interest expense accrued on AT1 capital instruments, which is not eligible as TLAC.
4 An AT1 instrument in the amount of USD 1.3bn was redeemed and AT1 instruments in a total amount
of USD 3bn were issued during the six
months ended 30 June 2025.
5 Includes an AT1 instrument
in the amount of USD 1.6bn, the
call of which was announced on
2 July 2025 and executed on 7
August 2025.
6 Includes interest
expense accrued
on bail-in debt,
interest-bearing liabilities
that consist of
loans from
UBS AG
and UBS Switzerland
AG, negative
replacement values,
and tax and
other liabilities
that are
not
excluded liabilities under Swiss law and that rank pari passu to bail-in debt.
7 Bail-in debt of USD 11.3bn was redeemed and bail-in debt of USD 7bn was issued during the six months ended 30 June 2025.
8 Bail-
in debt of USD 7.4bn
has residual maturity of less
than one year and is
not potentially eligible as TLAC.
9 Includes bail-in debt in
the amount of USD 1.5bn,
the call of which was
announced on 2 July 2025
and
executed on 15 July 2025.
30 June 2025 Pillar 3 Report |
UBS Group | Leverage ratio
44
Leverage ratio
Basel III leverage ratio
Quarterly |
The Basel Committee
on Banking Supervision
(the BCBS) leverage ratio,
as summarized in
the “KM1: Key
metrics“
table in
section 2
of this
report,
is calculated
by dividing
the period-end
tier 1 capital
by the
period-end leverage
ratio
denominator (the LRD).
The LRD consists of on-balance sheet assets and off-balance sheet items based on IFRS Accounting Standards. Derivative
exposures are
adjusted for
a number of
items, including
replacement values
and eligible
cash variation
margin netting,
potential future
exposure and
net notional
amounts for
written credit
derivatives. The
LRD also
includes an
additional
charge
for counterparty credit risk related to securities financing transactions
(SFTs).
On-balance
sheet
items
(excluding
derivatives
and
securities
financing
transactions
(SFTs),
but
including
collateral),
as
disclosed in the
LR2 table,
differ from IFRS
Accounting Standards
total assets
due to
adjustments to the
former for
the
application of the regulatory scope of consolidation and due to the carrying amounts for derivative financial instruments
and SFTs, which
are removed
and replaced
with exposures,
as per
the leverage
ratio rules, in
separate line
items in the
LR2 table.
Difference between the Swiss systemically relevant bank
and BCBS leverage ratio
The LRD is
the same under
Swiss systemically relevant
bank (SRB) and
BCBS rules. However,
there is a
difference in
the
capital numerator between the two frameworks. Under BCBS
rules only common equity tier 1 and additional
tier 1 (AT1)
capital are included
in the numerator.
Under Swiss SRB rules
UBS is required
to meet going and
gone concern leverage
ratio requirements.
Therefore,
depending on
the requirement,
the numerator
includes tier 1
capital instruments,
tier 2
capital instruments and / or total loss-absorbing capacity-eligible
senior unsecured debt.
The
difference
between
the total
leverage
ratio
exposures
of USD 1,658.1bn
and total
consolidated
assets
as per
the
published financial
statements of
USD 1,670.0bn was
USD 11.9bn, reflecting
the sum
of lines 2
to 12 in
the following
table.
LR1: Summary comparison of accounting assets vs leverage ratio exposure measure
1
USD m
30.6.25
31.3.25
31.12.24
1
Total consolidated assets as per published financial statements
1,669,991
1,543,363
1,565,028
2
Adjustment for investments in banking, financial, insurance or
commercial entities that are consolidated for accounting
purposes but outside the scope of regulatory consolidation
(20,348)
(18,302)
(17,750)
3
Adjustment for securitized exposures that meet the operational
requirements for the recognition of risk transference
4
Adjustments for temporary exemption of central bank reserves (if applicable)
5
Adjustment for fiduciary assets recognized on the balance
sheet pursuant to the operative accounting framework but excluded
from the leverage ratio exposure measure
6
Adjustments for regular-way purchases and sales of financial assets subject to trade date
accounting
7
Adjustments for eligible cash pooling transactions
8
Adjustments for derivative financial instruments
(58,682)
(27,249)
(97,478)
9
Adjustment for securities financing transactions (i.e. repos and similar secured
lending)
11,963
10,547
10,246
10
Adjustment for off-balance sheet items (i.e. conversion to credit equivalent amounts
of off-balance sheet exposures)
66,646
64,103
69,788
11
Adjustments for prudent valuation adjustments and specific and
general provisions which have reduced Tier 1 capital
2
(592)
(578)
12
Other adjustments
(10,888)
(10,301)
(10,356)
12a
of which: asset amounts deducted in determining Tier 1 capital
(11,981)
(11,336)
(11,586)
12b
of which: consolidated entities under the regulatory scope
of consolidation
1,093
1,035
1,230
13
Leverage ratio exposure
1,658,089
1,561,583
1,519,477
1 The comparative-period information for 31.12.2024 has been amended to reflect the LR1 disclosure
format effective from 1 January 2025 under the final Basel III standards. Refer to the 31 December 2024
Pillar 3
report, available under “Pillar
3 disclosures” at ubs.com/investors,
for more information about
previously published LR1 disclosures
.
2 Reflects the shortfall
to expected losses on
advanced internal ratings-based
portfolio less general provisions. Deduction items other than the IRB shortfall are disclosed in row
12a.
30 June 2025 Pillar 3 Report |
UBS Group | Leverage ratio
45
LR2: Leverage ratio common disclosure
1
USD m, except where indicated
30.6.25
31.3.25
31.12.24
On-balance sheet exposures
1
On-balance sheet items (excluding derivatives and securities financing
transactions (SFTs), but including collateral)
1,321,802
1,233,897
1,196,136
2
Gross-up for derivatives collateral provided where deducted from balance
sheet assets pursuant to the operative accounting
framework
3
(Deductions of receivable assets for cash variation margin provided
in derivatives transactions)
(45,478)
(38,997)
(43,952)
4
(Adjustment for securities received under securities financing
transactions that are recognised as an asset)
5
(Specific and general provisions associated with on-balance sheet exposures
that are deducted from Tier 1 capital)
(651)
(630)
6
(Asset amounts deducted in determining Tier 1 capital)
(11,981)
(11,336)
(11,586)
7
Total on-balance sheet exposures (excluding derivatives and SFTs)
1,263,692
1,182,933
1,140,598
Derivative Exposures
8
Replacement cost associated with all derivatives transactions (where
applicable net of eligible cash variation margin and/or
with bilateral netting)
59,792
55,440
48,149
9
Add-on amounts for potential future exposure associated
with all derivatives transactions
114,223
108,400
102,062
10
(Exempted qualifying central counterparty (QCCP) leg of client-cleared
trade exposures)
(18,849)
(15,524)
(19,136)
11
Adjusted effective notional amount of all written credit
derivatives
2
65,631
84,284
63,230
12
(Adjusted effective notional offsets and add-on deductions for
written credit derivatives)
3
(64,009)
(82,835)
(62,278)
13
Total derivative exposures
156,788
149,765
132,027
Securities financing transaction exposures
14
Gross SFT assets (with no recognition of netting), after adjusting
for sale accounting transactions
271,059
260,304
267,231
15
(Netted amounts of cash payables and cash receivables of gross SFT assets)
(112,117)
(106,121)
(100,411)
16
Counterparty credit risk exposure for SFT assets
11,963
10,547
10,245
17
Agent transaction exposures
18
Total securities financing transaction exposures
170,905
164,730
177,065
Other off-balance sheet exposures
19
Off-balance sheet exposure at gross notional amount
291,757
278,126
276,719
20
(Adjustments for conversion to credit equivalent amounts)
(225,112)
(214,022)
(206,931)
21
(Specific and general provisions associated with off-balance sheet
exposures deducted in determining Tier 1 capital)
59
52
22
Total off-balance sheet items
66,705
64,156
69,788
Capital and total exposures (leverage ratio denominator),
phase-in
23
Tier 1 capital
91,721
87,837
87,739
24
Total exposures (leverage ratio denominator)
1,658,089
1,561,583
1,519,477
Leverage ratio
25
Basel III leverage ratio (including the impact of any applicable temporary
exemption of central bank reserves)
4
5.53
5.62
5.77
25a
Basel III leverage ratio (excluding the impact of any applicable temporary exemption
of central bank reserves)
4
5.53
5.62
5.77
26
Leverage ratio minimum requirement
5
3.00
3.00
3.00
27
Leverage ratio buffers
5
2.00
2.00
2.00
Disclosure of mean values
28
Mean value of gross SFT assets, after adjustment for sale accounting transactions
and netted of amounts of associated cash
payables and cash receivables
155,918
159,968
29
Quarter-end value of gross SFT assets, after adjustment for sale accounting transactions and netted
of amounts of associated
cash payables and cash receivables
158,942
154,183
30
Total exposures (including the impact of any applicable temporary exemption
of central bank reserves) incorporating mean
values from row 28 of gross SFT assets (after adjustment for sale
accounting transactions and netted of amounts of associated
cash payables and cash receivables)
4
1,655,065
1,567,368
30a
Total exposures (excluding the impact of any applicable temporary exemption
of central bank reserves) incorporating mean
values from row 28 of gross SFT assets (after adjustment for sale
accounting transactions and netted of amounts of
associated cash payables and cash receivables)
4
1,655,065
1,567,368
31
Basel III leverage ratio (including the impact of any applicable temporary
exemption of central bank reserves) incorporating
mean values from row 28 of gross SFT assets (after adjustment for sale
accounting transactions and netted of amounts of
associated cash payables and cash receivables)
4
5.54
5.60
31a
Basel III leverage ratio (excluding the impact of any applicable temporary exemption
of central bank reserves) incorporating
mean values from row 28 of gross SFT assets (after adjustment for sale
accounting transactions and netted of amounts of
associated cash payables and cash receivables)
4
5.54
5.60
1 The comparative-period
information for 31.12.2024
has been amended
to reflect the
LR2 disclosure format
effective from 1
January 2025 under
the final Basel
III standards. Specifically,
collateral for derivative
positions has been included in row 1 of the LR2 table and has
been adjusted as applicable under leverage ratio
rules in the subsequent rows. Refer to the
31 December 2024 Pillar 3 report, available under “Pillar 3
disclosures” at ubs.com/investors, for more information about previously published LR2 disclosures.
2 Includes protection sold, including agency transactions.
3 Protection sold can be offset with protection bought
on the same underlying reference entity, provided that the conditions according to the Basel III leverage ratio framework and disclosure requirements are met.
4 There is currently no temporary exemption of central
bank reserves for UBS.
5 The buffer is based on Swiss SRB requirements as per the Capital Adequacy Ordinance.
These requirements are above BCBS requirements for G-SIBs.
LRD development during the second quarter of 2025
Quarterly |
During
the
second
quarter
of
2025,
the
LRD
increased
by
USD 96.5bn
to
USD 1,658.1bn.
The
increase
was
primarily driven by currency effects
of USD 88.1bn and asset size and other movements of USD 8.4bn.
On-balance sheet exposures (excluding
derivatives and securities financing
transactions) increased by USD 80.8bn, mainly
due to
currency
effects
of
USD 74.0bn
and
asset
size
and other
movements
of
USD 6.7bn.
The
asset
size
movement
mainly reflected increases
in the high-quality
liquid asset portfolio
and lending balances
in Global Wealth
Management
and Personal & Corporate Banking, partly offset by a decrease
in cash and balances at central banks in Group Treasury.
30 June 2025 Pillar 3 Report |
UBS Group | Leverage ratio
46
Derivative
exposures
increased
by
USD 7.0bn,
mainly
due
to
currency
effects
of
USD 4.1bn
and
asset
size
and
other
movements of USD 2.9bn. The asset size movement primarily reflect
ed market-driven movements.
Securities financing
transactions increased
by USD 6.2bn,
mainly due
to currency
effects of USD 6.4bn,
partly offset
by
asset size and other movements of USD 0.2bn.
Off-balance sheet items increased by USD 2.5bn, mainly due to currency effects
of USD 3.6bn, partly offset by asset size
and other movements of USD 1.1bn. The asset size movement
was mainly due to decreases in commitments.
›
Refer to “Leverage ratio denominator” in the
“Risk, capital, liquidity and funding, and balance
sheet” section of the UBS Group
second quarter 2025 report, available under “Quarterly
reporting” at
ubs.com/investors
, for more information
Liquidity and funding
Liquidity coverage ratio
Quarterly |
We monitor
the liquidity
coverage
ratio (the
LCR) in
all significant
currencies
in order
to manage
any currency
mismatch between high-quality liquid assets (HQLA) and
the net expected cash outflows in times of stress.
Pillar 3 disclosure requirement
Second quarter 2025 report section
Disclosure
Second quarter 2025 report page number
Concentration of funding sources
Balance sheet and off-balance sheet
Liabilities, by product and currency
53
High-quality liquid assets
Quarterly |
HQLA must be easily and immediately convertible into cash
at little or no loss of value, especially during a period
of stress. HQLA
are assets that
are of low
risk and
are unencumbered. Other
characteristics of HQLA
are ease and
certainty
of valuation, low correlation with risky assets, listing of the assets
on a developed and recognized exchange, existence of
an active and sizable
market for the
assets, and low volatility.
Our HQLA predominantly
consist of assets that
qualify as
Level 1 in
the LCR
framework, including
cash, central
bank reserves
and government
bonds. In
the second
quarter
of
2025, our HQLA increased
by USD 40.0bn to USD 358.8bn,
mainly reflecting higher
cash available due to a
decrease in
funding
for
trading
assets
and
higher
customer
deposits,
partly
offset
by
lower
cash
available
due
to
higher
lending
assets.
High-quality liquid assets (HQLA)
Average 2Q25
1
Average 1Q25
1
USD m
Level 1
weighted
liquidity
value
2
Level 2
weighted
liquidity
value
2
Total
weighted
liquidity
value
2
Level 1
weighted
liquidity
value
2
Level 2
weighted
liquidity
value
2
Total
weighted
liquidity
value
2
Cash balances
3
256,189
256,189
225,450
225,450
Securities (on- and off-balance sheet)
76,108
26,462
102,570
69,353
23,932
93,285
Total HQLA
4
332,297
26,462
358,759
294,803
23,932
318,735
1 Calculated based on an average of 61 data points in the
second quarter of 2025 and 62 data points in the first
quarter of 2025.
2 Calculated after the application of haircuts and, where applicable, caps on Level 2
assets.
3 Includes cash and balances with central banks and other eligible balances as prescribed by FINMA.
4 Calculated in accordance with FINMA requirements.
30 June 2025 Pillar 3 Report |
UBS Group | Liquidity and funding
47
Liquidity coverage ratio development during the second
quarter of 2025
Quarterly |
The quarterly average
LCR of the
UBS Group
increased 1.3 percentage
points to 182.3%,
remaining above
the
prudential requirement communicated
by the Swiss Financial Market Supervisory Authority (FINMA
).
The movement in the
quarterly average LCR was primarily
driven by an
increase in HQLA of
USD 40.0bn to USD 358.8bn,
mainly
reflecting
higher
cash available
due
to a
decrease
in funding
for
trading
assets
and higher
customer
deposits,
partly offset by
lower cash available
due to higher
lending assets. The
average net cash
outflows increased by
USD 20.7bn
to USD 196.8bn,
reflecting higher
outflows from
deposits, lower
net inflows from
securities financing transactions
and
higher net outflows from derivatives.
LIQ1: Liquidity coverage ratio (LCR)
Average 2Q25
1
Average 1Q25
1
USD m
Unweighted
value
Weighted
value
2
Unweighted
value
Weighted
value
2
High-quality liquid assets (HQLA)
1
Total HQLA
363,824
358,759
323,281
318,735
Cash outflows
2
Retail deposits and deposits from small business customers
378,633
43,920
350,479
40,449
3
of which: stable deposits
31,060
1,123
30,931
1,102
4
of which: less stable deposits
347,573
42,797
319,549
39,346
5
Unsecured wholesale funding
298,735
151,438
283,697
145,073
6
of which: operational deposits (all counterparties)
67,788
16,947
61,879
15,406
7
of which: non-operational deposits (all counterparties)
215,995
119,540
205,881
113,731
8
of which: unsecured debt
14,952
14,952
15,937
15,937
9
Secured wholesale funding
95,185
88,492
10
Additional requirements:
173,923
51,456
166,291
46,723
11
of which: outflows related to derivatives and other transactions
89,777
30,989
81,688
26,600
12
of which: outflows related to loss of funding on debt products
3
535
535
189
189
13
of which: committed credit and liquidity facilities
83,610
19,932
84,413
19,934
14
Other contractual funding obligations
32,429
30,004
29,370
27,495
15
Other contingent funding obligations
341,262
13,102
336,195
13,781
16
Total cash outflows
385,105
362,013
Cash inflows
17
Secured lending
313,077
116,535
294,064
114,857
18
Inflows from fully performing exposures
79,422
35,964
78,101
35,815
19
Other cash inflows
35,760
35,760
35,151
35,151
20
Total cash inflows
428,260
188,259
407,316
185,823
Average 2Q25
1
Average 1Q25
1
USD m, except where indicated
Total adjusted
value
4
Total adjusted
value
4
Liquidity coverage ratio (LCR)
21
Total HQLA
358,759
318,735
22
Net cash outflows
196,846
176,190
23
LCR (%)
182.31
180.96
1 Calculated based
on an average
of 61 data
points in the
second quarter of
2025 and 62
data points in
the first quarter
of 2025.
2 Calculated after
the application of
haircuts and inflow
and outflow rates.
3 Includes outflows related to loss of
funding on asset-backed securities,
covered bonds, other structured
financing instruments, asset-backed
commercial papers, structured entities
(conduits), securities investment
vehicles and other such financing facilities.
4 Calculated after the application of haircuts and inflow and outflow rates, as well
as, where applicable, caps on Level 2 assets and cash inflows.
30 June 2025 Pillar 3 Report |
UBS Group | Liquidity and funding
48
Net stable funding ratio
Net stable funding ratio development during the second
quarter of 2025
Semi-annual |
As of 30 June
2025, the net
stable funding ratio of
the UBS Group decreased 1.8 percentage points
to 122.4%,
remaining above the prudential requirement
communicated by FINMA.
Available stable funding increased by USD 43.0bn to USD 904.7bn, mainly driven by increases in both customer deposits
and
debt
issued
measured
at
amortized
cost,
largely
driven
by
currency
effects,
as
well
as
higher
regulatory
capital.
Required
stable
funding
increased
by
USD 45.1bn
to
USD 738.9bn,
primarily
reflecting
an
increase
in
lending
assets,
which was also largely due to currency effects.
LIQ2: Net stable funding ratio (NSFR)
30.6.25
31.3.25
Unweighted value by residual maturity
Unweighted value by residual maturity
USD m, except where indicated
No Maturity
< 6 months
6 months to
< 1 year
≥ 1 year
Weighted
Value
No Maturity
< 6 months
6 months to
< 1 year
≥ 1 year
Weighted
Value
Available stable funding (ASF) item
1
Capital:
85,712
16,209
101,921
81,071
16,660
97,731
2
Regulatory Capital
85,712
16,013
101,725
81,071
16,455
97,526
3
Other Capital Instruments
196
196
205
205
4
Retail deposits and deposits from small business
customers:
409,360
6,972
18,381
394,663
390,706
7,716
16,785
376,928
5
Stable deposits
31,609
43
9
30,078
31,187
60
11
29,696
6
Less stable deposits
377,751
6,930
18,373
364,585
359,519
7,656
16,774
347,231
7
Wholesale Funding:
524,394
67,090
217,845
402,391
484,352
55,910
216,873
380,171
8
Operational Deposits
74,537
37,270
65,782
32,893
9
Other wholesale funding
449,857
67,090
217,845
365,122
418,570
55,910
216,873
347,278
10
Liabilities with matching interdependent assets
6,935
5,884
11
Other liabilities:
54,616
148,394
6,074
5,728
46,899
144,397
1
3,888
6,887
12
NSFR derivative liabilities
2,936
1
13
All other liabilities and equity not included in the
above categories
54,616
148,394
3,138
5,728
46,899
144,397
1
3,888
6,887
14
Total ASF
904,703
861,717
Required stable funding (RSF) item
15
Total NSFR high-quality liquid assets (HQLA)
39,043
41,958
16
Deposits held at other financial institutions for
operational purposes
15,585
7,999
15,978
8,212
17
Performing loans and securities:
54,045
292,720
68,250
501,056
571,424
47,747
277,811
58,280
461,464
525,696
18
Performing loans to financial institutions secured by
Level 1 HQLA or Level 2a HQLA
44,991
1,159
8
9,204
51,752
3,112
329
11,797
19
Performing loans to financial institutions secured by
Level 2b HQLA or non-HQLA and unsecured
performing loans to financial institutions
87,675
11,171
38,811
61,152
83,975
5,927
39,001
57,728
20
Performing loans to non-financial corporate clients,
loans to retail and small business customers, and
loans to sovereigns, central banks and PSEs, of which:
976
132,844
30,860
146,618
188,713
875
117,876
24,947
139,848
177,580
21
With a risk weight of less than or equal to 35%
under Basel II standardized approach for credit risk
976
53,764
8,442
1,902
14,865
875
44,188
5,227
2,725
14,225
22
Performing residential mortgages, of which:
22,706
21,857
289,059
240,608
20,613
20,562
260,235
216,187
23
With a risk weight of less than or equal to 35%
under Basel II standardized approach for credit risk
19,170
19,268
242,807
197,159
17,455
18,331
218,323
177,011
24
Securities that are not in default and do not qualify as
HQLA, including exchange-traded equities
53,069
4,504
3,203
26,560
71,748
46,871
3,595
3,732
22,051
62,404
25
Assets with matching interdependent liabilities
6,935
5,884
26
Other assets:
46,741
67,022
716
129,149
114,928
44,270
71,598
296
121,713
112,599
27
Physical traded commodities, including gold
2,536
2,156
1,641
1,394
28
Assets posted as initial margin for derivative contracts
and contributions to default funds of CCPs
41,053
1
34,895
38,911
1
33,074
29
NSFR derivative assets
3,570
1
3,570
30
NSFR derivative liabilities before deduction of variation
margin posted
75,192
1
15,038
65,688
1
13,138
31
All other assets not included in the above categories
44,205
67,022
716
12,904
62,839
42,630
71,598
296
13,544
61,422
32
Off-balance sheet items
43,244
10,457
66,973
5,497
46,032
8,611
61,693
5,312
33
Total RSF
738,891
693,777
34
Net stable funding ratio (%)
122.44
124.21
1 The ≥ 1 year maturity bucket includes balances for which differentiation by
maturity is not required.
30 June 2025 Pillar 3 Report |
UBS Group | Liquidity and funding
49
Asset encumbrance
Semi-annual |
In this Pillar 3 report, we are introducing
the “ENC: Asset encumbrance”
table for the first time, as
part of the
final Basel III standards. The
ENC table provides a
breakdown of on-
and off-balance sheet
assets between encumbered
assets, central bank facilities and unencumbered assets.
Excluding assets positioned at central banks, assets are presented as encumbered if they have been pledged as collateral
against an
existing
liability
or are
otherwise not
available
for securing
additional
funding.
Assets pledged
as collateral
mainly include
assets pledged
for securities
financing transactions,
derivative transactions
or financial
guarantees, and
mortgage
loans,
which
serve
as collateral
against
loans
from
Swiss
mortgage
institutions
and
US Federal
Home
Loan
Banks
or
issued
covered
bonds.
Assets
otherwise
not
available
for
securing
additional
funding
mainly
include
assets
protected under
client asset
segregation rules
and assets
held in
certain jurisdictions
to comply
with explicit
minimum
local asset maintenance requirements.
Central bank
facilities represent
assets in
use or
remain available
to secure
transactions in
a central
bank facility.
These
assets are positioned
as collateral
with central banks
and mainly
secure undrawn
credit lines for
payment, clearing
and
settlement purposes, as well as undrawn contingency funding
facilities.
All other
assets are
presented
as unencumbered.
This
category
consists of
cash and
securities
readily realizable
in the
normal
course
of
business,
which
include
our HQLA and
unencumbered
positions
in
our
trading
portfolio,
and
other
realizable
assets
that
are
not
intended
for
obtaining
secured
funding
in
the
normal
course
of
business,
but
may
be
considered potential sources
of liquidity to
meet medium or
longer-term funding
needs, such as
loans and advances
to
customers and banks, as well as certain non-financial assets. Unencumbered assets that are considered to
be available to
secure funding at the legal-entity level may be subject to restrictions that limit the total amount of assets available to the
Group as
a whole.
Assets that
cannot be
pledged as
collateral represent
assets that
by their
nature are
not considered
available to secure funding or meet collateral needs.
›
Refer to the “CC2: Reconciliation of accounting
balance sheet to balance sheet under the
regulatory scope of consolidation” table
in the “Going and gone concern requirements and
eligible capital” section of this report for
more information about the
reconciliation of the balance sheet under IFRS Accounting
Standards to the balance sheet according to the regulatory scope
of
consolidation
ENC: Asset encumbrance
USD m
Encumbered assets excluding central bank
facilities
Central bank
facilities
Unencumbered assets
Total Group
of which
assets
pledged
as collateral
of which
assets
otherwise
restricted and
not available
to secure
funding
Total
encumbered
assets
of which
unencumbered
assets
of which
assets that
cannot be
pledged as
collateral
Total
unencumbered
assets
30.6.25
Balance sheet
Cash and balances at central banks
1,064
1
445
1,509
234,684
2
234,684
236,193
Amounts due from banks
3,114
3,114
18,324
18,324
21,438
Receivables from securities financing transactions measured
at amortized cost
110,145
110,145
110,145
Cash collateral receivables on derivative instruments
7,609
7,609
37,869
37,869
45,478
Loans and advances to customers
71,595
3
101
71,695
18,763
556,596
49
556,644
647,103
Other financial assets measured at amortized cost
9,500
4
5,301
5
14,801
10,718
37,377
9,230
46,607
72,126
Total financial assets measured at amortized cost
82,159
16,570
98,728
29,481
846,981
157,292
1,004,273
1,132,482
Financial assets at fair value held for trading
86,064
4
246
86,310
79
82,815
82,815
169,205
Derivative financial instruments
170,006
170,006
170,006
Brokerage receivables
29,068
29,068
29,068
Financial assets at fair value not held for trading
3,332
4
3,124
6,456
14,385
44,537
22,815
67,352
88,192
Total financial assets measured at fair value through
profit or loss
89,396
3,370
92,766
14,464
127,352
221,889
349,241
456,472
Financial assets measured at fair value through other
comprehensive income
26
1,816
1,842
103
4,871
4,871
6,816
Non-financial assets
28,902
26,339
55,241
55,241
Total balance sheet assets
171,580
21,756
193,337
44,048
1,008,106
6
405,520
1,413,626
1,651,011
Off-balance sheet
Fair value of securities accepted as collateral
465,077
9,263
474,339
10,201
162,201
162,201
646,741
1 Assets pledged to the depositor protection system in Switzerland.
2 Includes cash placed at central banks to meet local statutory minimum reserve requirements
(30 June 2025: USD 13.4bn).
3 Mortgage loans
that serve as collateral against outstanding loans from Swiss mortgage institutions, US Federal
Home Loan Banks and issued covered bonds.
4 Includes assets pledged as collateral that may be sold or repledged by
counterparties.
5 Mainly includes cash collateral provided to exchanges
and clearing houses to secure securities trad
ing activity through those counterparties.
6 Includes high-quality liquid assets (30 June 2025:
USD 359.8bn).
30 June 2025 Pillar 3 Report |
UBS Group | Requirements for global
systemically important banks and related indicators
50
Requirements for global systemically important banks
and related indicators
GSIB1: Disclosure of G-SIB indicators
Semi-annual |
The Financial Stability Board
(the FSB) has determined that
UBS is a global
systemically important bank (a G-SIB),
using an indicator-based
methodology adopted by
the Basel Committee
on Banking Supervision (the
BCBS). Banks that
qualify as G-SIBs are required
to disclose 13 high-level indicators annually
for assessing the systemic importance of
G-SIBs
as defined
by the
BCBS. These
indicators are
used for the
G-SIB score
calculation and
cover five
categories: size,
cross-
jurisdictional activity, interconnectedness, substitutability / financial
institution infrastructure, and complexity.
In November 2024, the FSB, in consultation with the BCBS
and national authorities, published the 2024 list of G-SIBs.
Based
on
the
published
indicators,
G-SIBs
are
subject
to
additional
common
equity
tier 1
(CET1)
capital
buffer
requirements in
a range
from 1.0%
to 3.5%.
In November
2024, the
FSB confirmed
that, based
on the
31 December
2023 indicators,
the additional
CET1 capital
buffer requirement
for the
UBS Group
will remain
at 1.5%.
As our
Swiss
systemically
relevant
bank
(SRB)
Basel III
capital
requirements
remain
above
the
BCBS
requirements,
including
the
increased G-SIB buffer, we are not affected by these additional
G-SIB requirements.
The BCBS introduced a leverage ratio buffer for G-SIBs as a part of the finalization of the Basel III framework announced
in
December
2017.
The
leverage
ratio
buffer
is
set
at
50%
of
risk-weighted
higher-loss
absorbency
requirements.
Implementation of
the final
Basel III framework
in Switzerland
entered into
force on
1 January 2025.
As our Swiss
SRB
requirements remain above the BCBS requirements, these
changes did not increase our requirements.
Our
G-SIB
indicators
as
of
31 December
2024
were
published
in
July
2025
under
“Pillar 3
disclosures”
at
ubs.com/investors
.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups
| Introduction
51
Significant regulated subsidiaries
and sub-groups
Introduction
Scope of disclosures in this section
The sections
below include
capital and
other regulatory
information as
of 30 June 2025
for UBS AG
consolidated, UBS AG
standalone, UBS Switzerland AG
standalone, UBS Europe SE
consolidated, UBS Americas Holding LLC
consolidated and
Credit
Suisse
International
standalone.
Capital
information
in
the
following
sections
is
based
on
Pillar 1
capital
requirements. Entities may be subject to
significant additional Pillar 2 requirements, which
represent additional amounts
of capital considered necessary and are agreed with regulators based
on the risk profile of the respective entity.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups
| UBS AG consolidated
52
UBS AG consolidated
Key metrics for the second quarter of 2025
Quarterly |
The table
below is based
on the
Swiss Financial Market
Supervisory Authority
(FINMA) Ordinance on
the Disclosure
Obligations of Banks and Securities Firms (DisO-FINMA) rules
and IFRS Accounting Standards.
During the second quarter of 2025, tier 1 capital decreased by USD
0.6bn to USD 88.5bn. Common equity tier 1 (CET1)
capital decreased by USD 0.9bn to USD 69.8bn, mainly as operating profit before tax of USD 0.9bn and foreign currency
translation gains
of USD 2.5bn
were more
than offset
by dividend
accruals
of USD 3.5bn
and current
tax expenses
of
USD 0.3bn.
Additional
tier 1
(AT1)
capital
issued
by
the
Group
and
on
lent
to
UBS AG
increased
by
USD 0.3bn
to
USD 18.7bn, reflecting positive impacts from interest rate risk
hedge, foreign currency translation and other effects.
During the second quarter of 2025, risk-weighted
assets (RWA) increased by USD 16.8bn to
USD 498.3bn,
driven by an
USD 18.7bn
increase
in
currency
effects,
partly
offset
by
a
USD 1.5bn
decrease
resulting
from
asset
size
and
other
movements and a USD 0.3bn decrease resulting from model
updates and methodology changes.
During the
second quarter
of 2025,
the leverage
ratio denominator
(the LRD)
increased by
USD 94.3bn to USD 1,660.1bn,
predominantly due to USD 88.4bn from currency effects and USD 5.8bn resulting from asset size and other movements.
The asset size
movement was mainly
driven by increases
in the high-quality
liquid asset (HQLA)
portfolio, lending balances
in Global
Wealth
Management
and Personal
& Corporate
Banking
and higher
derivative
exposures, partly
offset
by a
decrease in cash and balances at central banks in Group
Treasury.
Correspondingly, the CET1 capital ratio of
UBS AG consolidated decreased to 14.0% from
14.7%, reflecting the increase
in RWA
and the decrease
in CET1
capital. The
Basel III leverage ratio
decreased to
5.3% from 5.7%,
reflecting the increase
in the LRD and the lower tier 1 capital.
The
quarterly
average
liquidity
coverage
ratio
(the
LCR)
of
UBS AG
consolidated
decreased
0.8 percentage
points
to
179.4%, remaining above the prudential requirement communicated by FINMA. The movement in the quarterly average
LCR was primarily driven by an increase in HQLA of USD 40.0bn to USD 358.9bn, mainly reflecting
higher cash available
from lower
funding for
trading assets
and higher
customer
deposits, partly
offset by
lower cash
available from
higher
lending assets. The average net
cash outflows increased by USD 23.2bn
to USD 200.1bn, reflecting higher outflows from
deposits, lower net inflows from securities financing transactions
and higher outflows from derivatives.
As of 30 June
2025, the net
stable funding ratio
of UBS AG consolidated
decreased 1.9 percentage
points to 120.9%,
remaining above the
prudential requirement communicated by
FINMA. Available stable funding
increased by USD 38.6bn
to
USD 892.4bn,
mainly
driven
by
increases
in
both
customer
deposits
and
debt
issued
measured
at
amortized
cost,
largely driven by currency effects,
as well as higher regulatory capital
.
Required stable funding increased by
USD 42.9bn
to USD 738.1bn, primarily reflecting higher lending assets, which
were also largely due to currency effects.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups
| UBS AG consolidated
53
KM1: Key metrics
USD m, except where indicated
30.6.25
31.3.25
31.12.24
30.9.24
30.6.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
69,829
70,756
73,792
84,423
83,001
2
Tier 1
88,485
89,081
89,623
100,673
98,133
3
Total capital
88,485
89,081
89,623
100,675
98,133
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
498,327
481,539
495,110
515,520
509,953
4a
Total risk-weighted assets (pre-floor)
498,327
481,539
4b
Minimum capital requirement
1
39,866
38,523
39,609
41,242
40,796
Risk-based capital ratios as a percentage of RWA
5
Common equity tier 1 ratio (%)
14.01
14.69
14.90
16.38
16.28
5b
Common equity tier 1 ratio (%) (pre-floor)
14.01
14.69
6
Tier 1 ratio (%)
17.76
18.50
18.10
19.53
19.24
6b
Tier 1 ratio (%) (pre-floor)
17.76
18.50
7
Total capital ratio (%)
17.76
18.50
18.10
19.53
19.24
7b
Total capital ratio (%) (pre-floor)
17.76
18.50
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
2.50
2.50
2.50
2.50
2.50
9
Countercyclical buffer requirement (%)
0.13
0.13
0.15
0.17
0.16
9a
Additional countercyclical buffer for Swiss mortgage loans
(%)
0.34
0.31
0.37
0.39
0.33
10
Bank G-SIB and / or D-SIB additional requirements (%)
2
11
Total of bank CET1 specific buffer requirements (%)
3
2.63
2.63
2.65
2.67
2.66
12
CET1 available after meeting the bank’s minimum capital requirements (%)
4
9.51
10.19
10.10
11.53
11.24
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
1,660,097
1,565,845
1,523,277
1,611,151
1,564,001
14
Basel III leverage ratio (%) (including the impact of any applicable
temporary
exemption of central bank reserves)
5
5.33
5.69
5.88
6.25
6.27
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
5.33
5.69
14c
Basel III leverage ratio (%) (including the impact of any applicable
temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
5
5.34
5.67
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
5.34
5.67
14e
Minimum capital requirements
6
49,803
46,975
Liquidity coverage ratio (LCR)
7
15
Total high-quality liquid assets (HQLA)
358,940
318,893
331,627
360,628
280,303
16
Total net cash outflow
200,107
176,928
178,228
183,725
143,576
16a
of which: cash outflows
390,719
366,165
352,482
347,583
298,083
16b
of which: cash inflows
190,613
189,237
174,254
163,858
154,507
17
LCR (%)
179.45
180.28
186.08
196.34
194.12
Net stable funding ratio (NSFR)
18
Total available stable funding
892,381
853,742
847,008
903,402
882,760
19
Total required stable funding
738,056
695,201
682,504
712,729
691,477
20
NSFR (%)
120.91
122.81
124.10
126.75
127.66
1 Calculated as 8% of total RWA, based
on total capital minimum requirements,
excluding CET1 buffer requirements.
2 Swiss SRB going and gone concern
requirements and information for UBS AG
consolidated
are provided below in this section.
3 Excludes non-BCBS capital buffer requirements for risk-weighted positions that are directly or indirectly backed by residential properties in Switzerland.
4 Represents the CET1
ratio that is available
to meet buffer requirements.
Calculated as the CET1 ratio
minus the BCBS CET1
capital requirement and, where
applicable, minus the
BCBS tier 2 capital requirement
met with CET1 capital.
5 There is currently no
temporary exemption of central
bank reserves for UBS.
6 The higher of capital
requirements based on 8% RWA
or 3% LRD.
7 Calculated after the application
of haircuts and inflow and
outflow rates, as well as,
where applicable, caps on Level 2
assets and cash inflows. Calculated based
on an average of 61 data points in
the second quarter of 2025 and 62 data
points in the first quarter of 2025.
For the prior-quarter data points, refer to the
respective Pillar 3 Report, available under “Pillar 3 disclosures”
at ubs.com/investors, for more information.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups
| UBS AG consolidated
54
Swiss systemically relevant bank going and gone concern
requirements and information
Quarterly |
The tables
below provide
details of
the Swiss
systemically relevant
bank RWA-
and LRD-based
going and
gone
concern requirements
and
information
as required
by FINMA
;
details
regarding
eligible
gone
concern instruments
are
also provided below.
Effective 1 January 2025, a
Pillar 2 capital add-on for
uncollateralized exposures to hedge
funds, private equity
and family
offices
has
been
introduced.
This
resulted
in
an
increase
of
18 basis
points
in
the
RWA-based
going
concern
capital
requirement as of 30 June 2025.
UBS AG’s
outstanding
non-Basel III-compliant
tier 2
capital
instruments
and
total
loss-absorbing
capacity-eligible
unsecured debt instruments are eligible to meet gone concern
requirements until one year before maturity.
More
information
about
the
going
and
gone
concern
requirements
and
information
is
provided
in
the
“Total
loss-
absorbing
capacity”
section
of
the
UBS
AG
Annual
Report
2024,
available
under
“Annual
reporting”
at
ubs.com/investors.
Swiss SRB going and gone concern requirements and information
As of 30.6.25
RWA
LRD
USD m, except where indicated
in %
in %
Required going concern capital
Total going concern capital
14.98
1
74,648
5.01
1
83,198
Common equity tier 1 capital
10.63
2
52,954
3.51
3
58,296
of which: minimum capital
4.50
22,425
1.50
24,901
of which: buffer capital
5.50
27,408
2.00
33,202
of which: countercyclical buffer
0.46
2,308
Maximum additional tier 1 capital
4.35
2
21,695
1.50
24,901
of which: additional tier 1 capital
3.50
17,441
1.50
24,901
of which: additional tier 1 buffer capital
0.80
3,987
Eligible going concern capital
Total going concern capital
17.76
88,485
5.33
88,485
Common equity tier 1 capital
14.01
69,829
4.21
69,829
Total loss-absorbing additional tier 1 capital
3.74
18,656
1.12
18,656
of which: high-trigger loss-absorbing additional tier 1 capital
3.74
18,656
1.12
18,656
Required gone concern capital
Total gone concern loss-absorbing capacity
4,5,6
10.73
53,446
3.75
62,254
of which: base requirement including add-ons for market share and LRD
10.73
7
53,446
3.75
7
62,254
Eligible gone concern capital
Total gone concern loss-absorbing capacity
18.76
93,502
5.63
93,502
Total tier 2 capital
0.04
196
0.01
196
of which: non-Basel III-compliant tier 2 capital
0.04
196
0.01
196
TLAC-eligible unsecured debt
18.72
93,306
5.62
93,306
Total loss-absorbing capacity
Required total loss-absorbing capacity
25.70
128,094
8.76
145,452
Eligible total loss-absorbing capacity
36.52
181,987
10.96
181,987
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
498,327
Leverage ratio denominator
1,660,097
1 Includes applicable add-ons of 1.66% for risk-weighted assets (RWA) and 0.51% for leverage ratio denominator (LRD), of which 4 basis points for RWA and 1 basis points for LRD reflect a Pillar 2 capital add-on of
USD 193m related to the supply chain finance funds matter at Credit Suisse. An additional 18 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 0.12%
for CET1
capital and 0.05% for
AT1 capital, effective
1 January 2025. For
AT1 capital, under
Pillar 1 requirements, a
maximum of 4.3% of AT1
capital can be used to
meet going concern requirements;
4.35% includes the
aforementioned Pillar 2 capital add-on.
3 Our CET1 leverage ratio requirement of 3.51% 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.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups
| UBS AG consolidated
55
Swiss SRB going and gone concern information
USD m, except where indicated
30.6.25
31.3.25
31.12.24
Eligible going concern capital
Total going concern capital
88,485
89,081
89,623
Total tier 1 capital
88,485
89,081
89,623
Common equity tier 1 capital
69,829
70,756
73,792
Total loss-absorbing additional tier 1 capital
18,656
18,325
15,830
of which: high-trigger loss-absorbing additional tier 1 capital
18,656
18,325
14,585
of which: low-trigger loss-absorbing additional tier 1 capital
1,245
Eligible gone concern capital
Total gone concern loss-absorbing capacity
93,502
93,705
92,177
Total tier 2 capital
196
205
207
of which: non-Basel III-compliant tier 2 capital
196
205
207
TLAC-eligible unsecured debt
93,306
93,499
91,970
Total loss-absorbing capacity
Total loss-absorbing capacity
181,987
182,786
181,800
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
498,327
481,539
495,110
Leverage ratio denominator
1,660,097
1,565,845
1,523,277
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
17.8
18.5
18.1
of which: common equity tier 1 capital ratio
14.0
14.7
14.9
Gone concern loss-absorbing capacity ratio
18.8
19.5
18.6
Total loss-absorbing capacity ratio
36.5
38.0
36.7
Leverage ratios (%)
Going concern leverage ratio
5.3
5.7
5.9
of which: common equity tier 1 leverage ratio
4.2
4.5
4.8
Gone concern leverage ratio
5.6
6.0
6.1
Total loss-absorbing capacity leverage ratio
11.0
11.7
11.9
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups
| UBS AG standalone
56
UBS AG standalone
Key metrics for the second quarter of 2025
Quarterly |
The table below
is based on
the Swiss Financial
Market Supervisory Authority
(FINMA) Ordinance on
the Disclosure
Obligations of Banks and Securities Firms (DisO-FINMA) rules
and IFRS Accounting Standards.
During the second quarter
of 2025, tier 1 capital increased
by USD 2.5bn to USD 91.8bn.
Common equity tier 1 (CET1)
capital increased by USD
2.2bn to USD 73.2bn,
mainly reflecting operating
profit before tax
of USD 5.7bn, partly offset
by additional
accruals
for capital
returns to
UBS Group AG
of USD 3.5bn.
Additional
tier 1 (AT1)
capital
issued by
the
Group and
on lent
to UBS AG
increased by
USD 0.3bn to
USD 18.7bn, mainly
reflecting positive
impacts from
interest
rate risk hedge, foreign currency translation and other effects
.
Phase-in risk-weighted
assets (RWA)
increased by
USD 1.6bn to
USD 516.5bn during
the second
quarter of
- The
second quarter included an increase
of USD 13.6bn from currency effects,
which was partly offset by
asset size and other
movements, mainly related
to RWA on investments
in subsidiaries, credit and
counterparty credit risk
RWA, and market
risk RWA.
During the second quarter of 2025, the leverage ratio denominator (the LRD) increased by USD 28.5bn to USD 964.0bn,
predominantly due to
an increase of
USD 31.7bn from currency
effects,
partly offset by
a decrease of
USD 3.2bn resulting
from asset size and other movements. The asset size movement was mainly driven by lower cash and balances at central
banks and
trading assets,
partly offset
by increases
in high-quality
liquid asset (HQLA)
portfolio securities, lending
balances
and securities financing transaction exposures.
Correspondingly, the phase-in
CET1 capital ratio
of UBS AG standalone
increased to 14.2%
from 13.8%, reflecting
the
increase in
CET1 capital,
partly offset
by the
aforementioned increase
in phase-in RWA
.
The Basel III
leverage ratio
was
stable at 9.5%, as the aforementioned increase in the LRD was
offset by the increase in tier 1 capital.
The
quarterly
average
liquidity
coverage
ratio
(the
LCR)
of
UBS AG
standalone
increased
6.3 percentage
points
to
235.5%, remaining above the prudential requirement communicated by FINMA. The movement in the quarterly average
LCR was primarily driven by an increase in HQLA of USD 26.9bn to USD 177.4bn, mainly reflecting
higher cash available
from
lower
funding
for
trading
assets,
partly
offset
by
lower
cash
available
from
higher
funding
to
subsidiaries
and
securities financing transactions. The
average net cash outflows
increased by USD 9.8bn to
USD 75.7bn, reflecting higher
net
outflows
from
derivatives
and
lower
net
inflows
from
securities
financing
transactions
and
funding
provided
to
subsidiaries, partly offset by lower outflows from undrawn loan
commitments.
As
of
30 June
2025,
the
net
stable
funding
ratio
decreased
1.3 percentage
points
to
96.7%,
remaining
above
the
prudential requirement
communicated
by FINMA.
Available stable
funding increased
by USD 10.8bn
to USD 421
.3bn,
predominantly
driven
by
higher
customer
deposits,
largely
driven
by
currency
effects,
and
higher
regulatory
capital.
Required
stable
funding
increased
by
USD 16.9bn
to
USD 435.5bn,
mainly
reflecting
higher
intercompany
funding
provided to subsidiaries and an increase in trading assets.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups
| UBS AG standalone
57
KM1: Key metrics
USD m, except where indicated
30.6.25
31.3.25
31.12.24
30.9.24
30.6.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
73,178
70,980
75,051
83,113
82,329
2
Tier 1
91,834
89,305
90,881
99,363
97,461
3
Total capital
91,834
89,305
90,882
99,365
97,461
Risk-weighted assets (amounts)
1
4
Total risk-weighted assets (RWA)
516,479
514,897
507,964
565,180
554,478
4a
Total risk-weighted assets (pre-floor)
516,479
514,897
4b
Minimum capital requirement
2
41,318
41,192
40,637
45,214
44,358
Risk-based capital ratios as a percentage of RWA
1
5
Common equity tier 1 ratio (%)
14.17
13.79
14.77
14.71
14.85
5b
Common equity tier 1 ratio (%) (pre-floor)
14.17
13.79
6
Tier 1 ratio (%)
17.78
17.34
17.89
17.58
17.58
6b
Tier 1 ratio (%) (pre-floor)
17.78
17.34
7
Total capital ratio (%)
17.78
17.34
17.89
17.58
17.58
7b
Total capital ratio (%) (pre-floor)
17.78
17.34
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
2.50
2.50
2.50
2.50
2.50
9
Countercyclical buffer requirement (%)
0.15
0.15
0.19
0.19
0.18
9a
Additional countercyclical buffer for Swiss mortgage loans
(%)
0.00
0.00
0.00
0.00
0.00
10
Bank G-SIB and / or D-SIB additional requirements (%)
3
11
Total of bank CET1 specific buffer requirements (%)
4
2.65
2.65
2.69
2.69
2.68
12
CET1 available after meeting the bank’s minimum capital requirements (%)
5
9.67
9.29
9.89
9.58
9.58
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
964,000
935,496
899,348
944,404
921,796
14
Basel III leverage ratio (%) (including the impact of any applicable
temporary
exemption of central bank reserves)
6
9.53
9.55
10.11
10.52
10.57
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
9.53
9.55
14c
Basel III leverage ratio (%) (including the impact of any applicable
temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
6
9.56
9.52
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
9.56
9.52
14e
Minimum capital requirements
7
41,318
41,192
Liquidity coverage ratio (LCR)
8
15
Total high-quality liquid assets (HQLA)
177,434
150,544
142,661
170,179
137,003
16
Total net cash outflow
75,720
65,962
58,620
60,445
50,458
16a
of which: cash outflows
248,255
238,931
231,213
228,228
197,846
16b
of which: cash inflows
172,535
172,969
172,593
167,783
147,387
17
LCR (%)
235.52
229.18
243.95
282.26
269.55
Net stable funding ratio (NSFR)
9
18
Total available stable funding
421,323
410,507
410,197
446,435
448,005
19
Total required stable funding
435,547
418,661
421,792
444,875
437,275
20
NSFR (%)
96.73
98.05
97.25
100.35
102.45
1 Based on phase-in rules for RWA. Refer to “Swiss systemically relevant bank going and gone concern requirements and information” below for more information.
2 Calculated as 8% of total RWA, based on total
capital minimum requirements, excluding CET1 buffer requirements.
3 Swiss SRB going and gone concern requirements and information for UBS AG standalone are provided below in this section.
4 Excludes non-
BCBS capital buffer requirements for risk-weighted
positions that are directly or indirectly backed
by residential properties in Switzerland.
5 Represents the CET1 ratio that is
available to meet buffer requirements.
Calculated as the
CET1 ratio minus
the BCBS CET1
capital requirement and,
where applicable, minus
the BCBS tier
2 capital requirement
met with CET1
capital.
6 There is currently
no temporary exemption
of
central bank reserves for UBS.
7 The higher of capital requirements based on
8% RWA or 3% LRD.
8 Calculated after the application of haircuts and inflow
and outflow rates, as well as,
where applicable, caps
on Level 2
assets and cash
inflows. Calculated based
on an average
of 61 data points
in the second quarter
of 2025 and
62 data points in
the first quarter of
- For
the prior-quarter
data points, refer
to the
respective Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information.
9 In accordance with Art. 17h para. 3 and 4 of the Liquidity Ordinance, UBS AG standalone is required to
maintain a minimum NSFR of at least 80% without taking into account excess funding of UBS Switzerland AG and 100% after taking into
account such excess funding.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups
| UBS AG standalone
58
Swiss systemically relevant bank going and gone concern
requirements and information
Quarterly |
The tables
below provide
details of
the Swiss
systemically relevant
bank RWA-
and LRD-based
going and
gone
concern requirements
and
information
as required
by FINMA;
details
regarding
eligible
gone
concern instruments
are
also provided below.
UBS AG standalone
is subject
to a
gone concern capital
requirement based
on the sum
of: (i) the
nominal value
of the
gone concern
instruments issued
by UBS
entities and
held by
the parent
firm; (ii) 75%
of the
capital requirements
resulting
from third-party exposure
on a standalone
basis; and (iii) a
buffer requirement equal
to 30% of
the Group’s gone
concern
capital requirement on UBS AG’s
consolidated exposure. The gone concern
capital requirement is the higher
of the RWA-
and LRD-based
requirements,
calculated
separately.
The
gone concern
capital
coverage
ratio reflects
how much
gone
concern capital is
available to meet
the gone concern
requirement. UBS AG’s outstanding
non-Basel III-compliant tier
2
capital
instruments
and
total
loss-absorbing
capacity-eligible
unsecured
debt
instruments
are
eligible
to
meet
gone
concern requirements until one year before maturity.
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 as of
30 June 2025 of 16 basis
points in the RWA
phase-in-based
going concern capital
requirement and 15 basis points
in the RWA
fully applied-based going
concern capital requirement.
More information about
the going and
gone concern requirements
is provided in
the “UBS AG
Standalone” section of
the 31 December 2024 Pillar 3 Report, available under “Pillar
3 disclosures” at
ubs.com/investors.
Swiss SRB going and gone concern requirements and information
As of 30.6.25
RWA, phase-in
RWA, fully applied as of 1.1.28
1
LRD
USD m, except where indicated
in %
in %
in %
Required going concern capital
Total going concern capital
14.65
2
75,648
14.63
2
80,853
5.02
2
48,393
Common equity tier 1 capital
10.30
3
53,197
10.29
3
56,854
3.52
33,933
of which: minimum capital
4.50
23,242
4.50
24,862
1.50
14,460
of which: buffer capital
5.50
28,406
5.50
30,387
2.00
19,280
of which: countercyclical buffer
0.15
795
0.15
850
Maximum additional tier 1 capital
4.35
3
22,450
4.34
3
23,999
1.50
14,460
of which: additional tier 1 capital
3.50
18,077
3.50
19,337
1.50
14,460
of which: additional tier 1 buffer capital
0.80
4,132
0.80
4,420
Eligible going concern capital
Total going concern capital
17.78
91,834
16.62
91,834
9.53
91,834
Common equity tier 1 capital
14.17
73,178
13.25
73,178
7.59
73,178
Total loss-absorbing additional tier 1 capital
3.61
18,656
3.38
18,656
1.94
18,656
of which: high-trigger loss-absorbing additional tier 1 capital
3.61
18,656
3.38
18,656
1.94
18,656
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
516,479
552,495
Leverage ratio denominator
964,000
Required gone concern capital
4
Higher of RWA-
or LRD-based
Total gone concern loss-absorbing capacity
79,135
Eligible gone concern capital
Total gone concern loss-absorbing capacity
93,499
Gone concern capital coverage ratio
118.15
1 Fully applied relates to participation RWA.
Direct and indirect investments including
holding of regulatory capital instruments in
Switzerland-domiciled subsidiaries and for direct and
indirect investments including
holding of
regulatory capital
instruments in
foreign-domiciled subsidiaries
are risk-weighted
at 235%
and 340%,
respectively,
for the
current year.
As per
current rules,
risk weights
will gradually
increase by
5 percentage points per
year for
Switzerland-domiciled investments
and 20
percentage points
per year
for foreign-domiciled
investments until
the fully
applied risk weights
of 250%
and 400%,
respectively,
are
applied.
2 Includes applicable add-ons
of 1.63% for risk-weighted assets
(RWA, phase-in), 1.62% for
risk-weighted assets (RWA, fully
applied) and 0.52% for
leverage ratio denominator (LRD),
of which 4 basis
points for RWA phase-in, 3 basis points for
RWA fully applied and 2 basis points for LRD reflect
a Pillar 2 capital add-on of USD 193m related to the
supply chain finance funds matter at Credit Suisse.
An additional
16 basis points for
RWA phase-in and
15 basis points
for RWA fully
applied 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.
3 Includes the Pillar 2 add-on for the residual
exposure (after collateral mitigation) to hedge
funds, private equity and family
offices of 0.11% for CET1 capital and
0.05% for AT1 capital
for RWA phase-in and 0.10% for CET1 capital and 0.04% for AT1 capital for RWA fully applied, effective 1 January 2025. For AT1 capital, under Pillar 1 requirements, a maximum of 4.3% of AT1 capital can be used
to meet going concern requirements; 4.35% for RWA phase-in and 4.34% for RWA fully applied include the aforementioned Pillar 2 capital add-on.
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.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups
| UBS AG standalone
59
Swiss SRB going and gone concern information
USD m, except where indicated
30.6.25
31.3.25
31.12.24
Eligible going concern capital
Total going concern capital
91,834
89,305
90,881
Total tier 1 capital
91,834
89,305
90,881
Common equity tier 1 capital
73,178
70,980
75,051
Total loss-absorbing additional tier 1 capital
18,656
18,325
15,830
of which: high-trigger loss-absorbing additional tier 1 capital
18,656
18,325
14,585
of which: low-trigger loss-absorbing additional tier 1 capital
1,245
Eligible gone concern capital
Total gone concern loss-absorbing capacity
93,499
93,703
92,174
Total tier 2 capital
193
204
204
of which: non-Basel III-compliant tier 2 capital
193
204
204
TLAC-eligible unsecured debt
93,306
93,499
91,970
Total loss-absorbing capacity
Total loss-absorbing capacity
185,333
183,009
183,055
Denominators for going and gone concern ratios
Risk-weighted assets, phase-in
516,479
514,897
507,964
of which: investments in Switzerland-domiciled subsidiaries
1
91,537
86,606
83,221
of which: investments in foreign-domiciled subsidiaries
1
170,979
174,830
162,098
Risk-weighted assets, fully applied as of 1.1.28
552,495
551,278
555,726
of which: investments in Switzerland-domiciled subsidiaries
1
97,379
92,134
90,458
of which: investments in foreign-domiciled subsidiaries
1
201,151
205,683
202,623
Leverage ratio denominator
964,000
935,496
899,348
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio, phase-in
17.8
17.3
17.9
of which: common equity tier 1 capital ratio, phase-in
14.2
13.8
14.8
Going concern capital ratio, fully applied as of 1.1.28
16.6
16.2
16.4
of which: common equity tier 1 capital ratio, fully applied as of 1.1.28
13.2
12.9
13.5
Leverage ratios (%)
Going concern leverage ratio
9.5
9.5
10.1
of which: common equity tier 1 leverage ratio
7.6
7.6
8.3
Capital coverage ratio (%)
Gone concern capital coverage ratio
118.2
125.1
122.3
1 Fully applied relates to participation RWA.
Direct and indirect investments including
holding of regulatory capital instruments in
Switzerland-domiciled subsidiaries and for direct and
indirect investments including
holding of
regulatory capital
instruments in
foreign-domiciled subsidiaries
are risk-weighted
at 235%
and 340%,
respectively,
for the
current year.
As per
current rules,
risk weights
will gradually
increase by
5 percentage points per
year for
Switzerland-domiciled investments
and 20
percentage points
per year
for foreign-domiciled
investments until
the fully
applied risk weights
of 250%
and 400%,
respectively,
are
applied.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups
| UBS Switzerland AG standalone
60
UBS Switzerland AG standalone
Key metrics for the second quarter of 2025
Quarterly |
The table below
is based on
the Swiss Financial
Market Supervisory Authority
(FINMA) Ordinance on
the Disclosure
Obligations of Banks and Securities Firms (DisO-FINMA) rules
and IFRS Accounting Standards.
During the second quarter of 2025, common equity tier 1 capital decreased by CHF 0.1bn to CHF 21.5bn,
mainly driven
by additional dividend accruals almost entirely offset by
operating profit.
Total risk-weighted assets (RWA) decreased by CHF 5.9bn
to CHF 168.7bn, mainly due to lower credit risk RWA.
The leverage ratio denominator
(the LRD) decreased by
CHF 2.0bn to CHF 549.7bn, mainly
due to a decrease
in securities
financing transaction exposures, partly offset by increases
in lending and cash and balances at central banks.
The
quarterly
average
liquidity
coverage
ratio
(the
LCR)
of
UBS
Switzerland AG
increased
1.0 percentage
point
to
138.1%, remaining above the prudential requirement communicated by FINMA. The movement in the quarterly average
LCR was driven by an increase in high-quality liquid assets of CHF 0.7bn to CHF 111.9bn, primarily driven by higher cash
available from
funding received
from UBS AG,
partly offset
by lower
cash available
from an
increase in
lending assets.
The average net cash outflows were stable.
As of
30 June
2025, the
net
stable
funding
ratio was
largely
unchanged
at
128.6%,
remaining
above
the
prudential
requirement
communicated
by
FINMA.
Available
stable
funding
decreased
by
CHF 0.4bn
to
CHF 354.6bn,
mainly
reflecting lower regulatory
capital, partly
offset by an
increase in customer
deposits. Required stable
funding decreased
by CHF 0.4bn to CHF 275.9bn, predominantly driven by
decreases in investments in associates
and other financial assets,
partly offset by higher lending assets.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups
| UBS Switzerland AG standalone
61
KM1: Key metrics
CHF m, except where indicated
30.6.25
31.3.25
31.12.24
30.9.24
30.6.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
21,470
21,596
21,659
22,016
12,601
2
Tier 1
29,463
29,590
29,652
30,009
17,601
3
Total capital
29,463
29,590
29,652
30,009
17,601
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
168,701
174,610
186,265
185,237
110,294
4a
Total risk-weighted assets (pre-floor)
151,470
153,743
168,033
167,384
100,623
4b
Minimum capital requirement
1
13,496
13,969
14,901
14,819
8,824
Risk-based capital ratios as a percentage of RWA
5
Common equity tier 1 ratio (%)
12.73
12.37
11.63
11.89
11.43
5b
Common equity tier 1 ratio (%) (pre-floor)
14.17
14.05
12.89
13.15
12.52
6
Tier 1 ratio (%)
17.46
16.95
15.92
16.20
15.96
6b
Tier 1 ratio (%) (pre-floor)
19.45
19.25
17.65
17.93
17.49
7
Total capital ratio (%)
17.46
16.95
15.92
16.20
15.96
7b
Total capital ratio (%) (pre-floor)
19.45
19.25
17.65
17.93
17.49
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
2.50
2.50
2.50
2.50
2.50
9
Countercyclical buffer requirement (%)
0.07
0.06
0.08
0.08
0.07
9a
Additional countercyclical buffer for Swiss mortgage loans
(%)
0.83
0.80
0.88
0.90
0.81
10
Bank G-SIB and / or D-SIB additional requirements (%)
2
11
Total of bank CET1 specific buffer requirements (%)
3
2.57
2.56
2.58
2.58
2.57
12
CET1 available after meeting the bank’s minimum capital requirements (%)
4
8.23
7.87
7.13
7.39
6.93
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
549,690
551,716
556,053
567,484
337,149
14
Basel III leverage ratio (%) (including the impact of any applicable
temporary
exemption of central bank reserves)
5
5.36
5.36
5.33
5.29
5.22
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
5.36
5.36
14c
Basel III leverage ratio (%) (including the impact of any applicable
temporary
exemption of central bank reserves) incorporating mean values for SFT
assets
5
5.34
5.34
14d
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves) incorporating mean values for
SFT assets
5.34
5.34
14e
Minimum capital requirements
6
16,491
16,551
Liquidity coverage ratio (LCR)
7
15
Total high-quality liquid assets (HQLA)
111,945
111,231
125,007
126,037
78,141
16
Total net cash outflow
81,142
81,164
87,160
85,964
53,601
16a
of which: cash outflows
110,217
110,357
116,768
114,992
74,884
16b
of which: cash inflows
29,074
29,193
29,608
29,027
21,283
17
LCR (%)
138.05
137.08
143.47
146.68
145.89
Net stable funding ratio (NSFR)
8
18
Total available stable funding
354,633
355,035
359,170
369,168
224,953
19
Total required stable funding
275,862
276,279
271,688
274,029
165,291
20
NSFR (%)
128.55
128.51
132.20
134.72
136.10
1 Calculated as 8% of total RWA, based on total capital minimum requirements, excluding CET1 buffer requirements.
2 Swiss SRB going and gone concern requirements and information for UBS Switzerland AG are
provided below.
3 Excludes non-BCBS capital
buffer requirements for
risk-weighted positions that
are directly or
indirectly backed
by residential properties
in Switzerland.
4 Represents the
CET1 ratio that
is
available to meet buffer
requirements. Calculated as
the CET1 ratio minus
the BCBS CET1 capital requirement
and, where applicable,
minus the BCBS tier
2 capital requirement met with
CET1 capital.
5 There is
currently no temporary exemption
of central bank reserves for UBS.
6 The higher of capital requirements based on 8% RWA or 3% LRD.
7 Calculated after the application of haircuts and inflow and outflow rates,
as well as, where applicable,
caps on Level 2 assets and cash
inflows. Calculated based on an
average of 61 data points in
the second quarter of 2025 and
62 data points in the first quarter
of 2025. For the prior-
quarter data points, refer to the respective Pillar 3 Report, available under “Pillar 3 disclosures” at ubs.com/investors, for more information.
8 UBS Switzerland AG is required to maintain a minimum NSFR of at least
100% on an ongoing basis, as set out in Art. 17h para. 1 of the Liquidity Ordinance.
A portion of the excess funding is used to fulfill the NSFR requirement of UBS AG standalone.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups
| UBS Switzerland AG standalone
62
Swiss systemically relevant bank going and gone concern
requirements and information
Quarterly |
The tables
below provide
details of
the Swiss
systemically relevant
bank (SRB)
RWA-
and LRD-based
going and
gone concern requirements
and information as required
by FINMA; details
regarding eligible
gone concern instruments
are also provided below.
UBS Switzerland AG is considered an
SRB under Swiss banking law
and is subject to capital regulations
on a standalone
basis. As of 30 June 2025,
the going concern capital and
leverage ratio requirements for UBS Switzerland AG standalone
were 15.20% (including a countercyclical buffer of 0.90%) and
5.00%, respectively.
The Swiss SRB
framework and
going concern requirements
applicable to
UBS Switzerland AG
standalone are
the same
as those applicable to
UBS Group AG consolidated.
The gone concern requirement
corresponds to 62% of
the Group’s
going concern
requirements, excluding
the countercyclical
buffer requirements
and Pillar 2
add-ons. Outstanding
total
loss-absorbing
capacity-eligible
unsecured
debt
instruments
are
eligible to
meet
gone concern
requirements
until one
year before maturity.
The gone concern
requirements were 8.87%
for the RWA-based
requirement and 3.10%
for the LRD-based
requirement.
›
Refer to “Capital and capital ratios of our
significant regulated subsidiaries” in the “Capital,
liquidity and funding, and balance
sheet” section of the UBS Group Annual Report 2024,
available under “Annual reporting” at
ubs.com/investors
, for more
information about the joint liability of UBS AG and
UBS Switzerland AG
Swiss SRB going and gone concern requirements and information
As of 30.6.25
RWA
LRD
CHF m, except where indicated
in %
in %
Required going concern capital
Total going concern capital
15.20
1
25,639
5.00
1
27,485
Common equity tier 1 capital
10.90
18,385
3.50
19,239
of which: minimum capital
4.50
7,592
1.50
8,245
of which: buffer capital
5.50
9,279
2.00
10,994
of which: countercyclical buffer
0.90
1,515
Maximum additional tier 1 capital
4.30
7,254
1.50
8,245
of which: additional tier 1 capital
3.50
5,905
1.50
8,245
of which: additional tier 1 buffer capital
0.80
1,350
Eligible going concern capital
Total going concern capital
17.46
29,463
5.36
29,463
Common equity tier 1 capital
12.73
21,470
3.91
21,470
Total loss-absorbing additional tier 1 capital
4.74
7,994
1.45
7,994
of which: high-trigger loss-absorbing additional tier 1 capital
4.74
7,994
1.45
7,994
Required gone concern capital
2
Total gone concern loss-absorbing capacity
8.87
14,957
3.10
17,040
of which: base requirement including add-ons for market share and
LRD
8.87
3
14,957
3.10
3
17,040
Eligible gone concern capital
Total gone concern loss-absorbing capacity
11.35
19,148
3.48
19,148
TLAC-eligible unsecured debt
11.35
19,148
3.48
19,148
Total loss-absorbing capacity
Required total loss-absorbing capacity
24.06
40,596
8.10
44,525
Eligible total loss-absorbing capacity
28.82
48,611
8.84
48,611
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
168,701
Leverage ratio denominator
549,690
1 Includes applicable add-ons of 1.44% for risk-weighted assets (RWA) and 0.50% for leverage ratio denominator (LRD).
2 A maximum of 25% of the gone concern requirements can be met with instruments that
have a remaining maturity of between one and two years. Once at least 75% of the minimum gone concern requirement has been met with instruments that have a remaining maturity of greater than
two years, all
instruments that have a remaining maturity of between one and two years remain eligible to be included in the total gone concern capital.
3 Includes applicable add-ons of 0.89% for RWA and 0.31% for LRD.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups
| UBS Switzerland AG standalone
63
Swiss SRB going and gone concern information
CHF m, except where indicated
30.6.25
31.3.25
31.12.24
Eligible going concern capital
Total going concern capital
29,463
29,590
29,652
Total tier 1 capital
29,463
29,590
29,652
Common equity tier 1 capital
21,470
21,596
21,659
Total loss-absorbing additional tier 1 capital
7,994
7,995
7,994
of which: high-trigger loss-absorbing additional tier 1 capital
7,994
7,995
7,994
Eligible gone concern capital
Total gone concern loss-absorbing capacity
19,148
19,248
19,274
TLAC-eligible unsecured debt
19,148
19,248
19,274
Total loss-absorbing capacity
Total loss-absorbing capacity
48,611
48,838
48,926
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
168,701
174,610
186,265
Leverage ratio denominator
549,690
551,716
556,053
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
17.5
16.9
15.9
of which: common equity tier 1 capital ratio
12.7
12.4
11.6
Gone concern loss-absorbing capacity ratio
11.4
11.0
10.3
Total loss-absorbing capacity ratio
28.8
28.0
26.3
Leverage ratios (%)
Going concern leverage ratio
5.4
5.4
5.3
of which: common equity tier 1 leverage ratio
3.9
3.9
3.9
Gone concern leverage ratio
3.5
3.5
3.5
Total loss-absorbing capacity leverage ratio
8.8
8.9
8.8
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups
| UBS Europe SE consolidated
64
UBS Europe SE consolidated
Key metrics for the second quarter of 2025
Quarterly |
The table below provides information about the regulatory
capital components, capital ratios, leverage ratio and
liquidity of UBS Europe SE
consolidated based on
Basel Committee on
Banking Supervision (BCBS)
Pillar 1 requirements
and in accordance with EU regulatory rules and IFRS Accounting
Standards.
During the
second quarter
of 2025,
available capital
decreased by
EUR 0.4bn to
EUR 3.6bn, primarily
due to
common
equity tier 1 (CET1) capital repatriation to UBS AG, partly offset by the
profit that is eligible as CET1 capital as a result of
the audit
of the
financial results.
Risk-weighted assets
increased by
EUR 0.2bn to
EUR 14.6bn, mainly
driven by
an increase
in
securities
financing
transactions
(SFTs)
and
a
decrease
in
cash
and
credit
valuation
adjustment.
The
leverage
ratio
exposure increased by
EUR 6.1bn to EUR 61.7bn,
primarily driven by
higher volumes in
SFTs, increased cash
balances at
central banks and growth in trading inventory.
The average
liquidity coverage
ratio (the
LCR) remained
well above
the
regulatory requirement
of 100%,
at 138.9%.
Although the
LCR high-quality
liquid asset
(HQLA)
surplus increased
by around
EUR 0.3bn, a
decrease in
the LCR
was
driven by a simultaneous increase of EUR 1.4bn in HQLA and EUR 1.1bn in total net cash outflows, mostly due to higher
UBS
Group
euro-clearing
activities.
The
net
stable
funding
ratio
remained
well
above
the
regulatory
requirements
of
100%, at 130.0%. Available stable funding decreased by EUR 0.8bn, mainly due to reduced above-1-year intercompany
funding
and
CET1
capital
repatriation
to
UBS AG.
Required
stable
funding
increased
by
EUR 0.5bn,
mainly
driven
by
higher client-driven activity levels in the Investment Bank in Asian
markets.
KM1: Key metrics
1,2
EUR m, except where indicated
30.6.25
31.3.25
3
31.12.24
30.9.24
30.6.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
2,995
3,424
3,239
2,701
2,740
2
Tier 1
3,595
4,024
3,839
3,301
3,340
3
Total capital
3,595
4,024
3,839
3,301
3,340
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
14,590
14,387
14,079
12,657
12,423
4a
Total risk-weighted assets (RWA) (pre-floor)
14,590
14,387
4b
Minimum capital requirement
4
1,167
1,151
1,126
1,013
994
Risk-based capital ratios as a percentage of RWA
5
CET1 ratio (%)
20.5
23.8
23.0
21.3
22.1
5b
CET1 ratio (%) (pre-floor)
20.5
23.8
6
Tier 1 ratio (%)
24.6
28.0
27.3
26.1
26.9
6b
Tier 1 ratio (%) (pre-floor)
24.6
28.0
7
Total capital ratio (%)
24.6
28.0
27.3
26.1
26.9
7b
Total capital ratio (%) (pre-floor)
24.6
28.0
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer requirement (%)
2.5
2.5
2.5
2.5
2.5
9
Countercyclical buffer requirement (%)
0.7
0.7
0.7
0.7
0.7
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
Total of bank CET1 specific buffer requirements (%)
3.2
3.2
3.2
3.2
3.2
12
CET1 available after meeting the bank’s minimum capital requirements (%)
5
16.0
19.3
18.5
16.8
17.6
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
61,706
55,615
55,567
50,053
50,630
14
Basel III leverage ratio (%) (including the impact of any applicable
temporary
exemption of central bank reserves)
6,7
5.8
7.2
6.9
6.6
6.6
14b
Basel III leverage ratio (%) (excluding the impact of any applicable
temporary exemption of central bank reserves)
5.8
7.2
14e
Minimum capital requirements
8
1,851
1,668
Liquidity coverage ratio (LCR)
9
15
Total high-quality liquid assets (HQLA)
20,038
18,664
17,285
16,741
17,269
16
Total net cash outflow
14,469
13,355
12,542
11,523
11,658
17
LCR (%)
138.9
140.4
138.9
145.2
148.3
Net stable funding ratio (NSFR)
18
Total available stable funding
17,830
18,580
17,134
14,409
14,846
19
Total required stable funding
13,716
13,222
13,656
11,266
11,410
20
NSFR (%)
130.0
140.5
125.5
127.9
130.1
1 Based on applicable EU regulatory rules.
2 Row 9a of the FINMA template is applicable to FINMA-regulated scope only and
rows 14c and 14d have been removed because the EU does not require the disclosure
of mean values for SFTs.
3 Comparative figures have been restated to align with the
regulatory reports as submitted to the European
Central Bank.
4 Calculated as 8% of total
RWA, based on total capital minimum
requirements, excluding CET1 buffer requirements.
5 Represents the CET1 ratio that is available
for meeting buffer requirements. Calculated as the CET1
ratio minus 4.5% and after considering, where applicable,
CET1 capital that has been used to meet tier 1 and / or total capital ratio requirements under Pillar 1.
6 On the basis of tier 1 capital.
7 There is currently no temporary exemption of central
bank reserves for UBS
Europe SE.
8 The higher of capital requirements based on 8% RWA or 3% LRD.
9 Figures are calculated based on a 12
‑
month average.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups
| UBS Americas Holding LLC consolidated
65
UBS Americas Holding LLC consolidated
Key metrics for the second quarter of 2025
Quarterly
|
The
table
below
is
based
on
Basel
Committee
on
Banking
Supervision
(BCBS)
Pillar 1
requirements
and
in
accordance with US Basel III rules and generally accepted accounting
principles in the US (US GAAP).
Effective 1 October 2024 and through 30 September 2025,
UBS Americas Holding LLC is
subject to a stress capital
buffer
(an SCB)
of 9.3%,
in addition
to the
minimum capital
requirements. The
SCB was
determined by
the Federal
Reserve
Board following
the completion
of the
2024 Comprehensive
Capital Analysis
and Review
(the CCAR)
based on
Dodd–
Frank Act Stress
Test (DFAST) results
and planned future dividends.
The SCB, which
replaces the static capital
conservation
buffer of 2.5%, is subject to change on an annual basis or
as otherwise determined by the Federal Reserve Board.
During the
second quarter
of 2025,
the common
equity tier
1 (CET1)
capital
ratio increased
0.4 percentage
points to
20.9%
and
the
tier 1
capital
ratio
increased
0.6 percentage
points
to
24.6%.
Both
CET1
capital
and
tier 1
capital
decreased by USD
0.1bn due
to an increase
in deferred
tax assets deductions
and preferred
dividends paid to
UBS AG,
which
offset
the
positive
impact
from
the
net
profit
during
the
quarter.
Risk-weighted
assets
(RWA)
decreased
by
USD 2.1bn to
USD 77.2bn,
due to
a USD 1.1bn
decrease
in market
risk RWA
and a
USD 1.0bn decrease
in credit
risk
RWA. The decrease
in market risk
RWA was due to
lower exposures in
specific risk and
value-at-risk / stressed
value-at-
risk, which
decreased by
USD 0.6bn and
USD 0.5bn, respectively.
The decrease
in credit
risk RWA
was mainly
due to
a
decrease in derivatives RWA.
Leverage ratio exposure,
calculated on an
average basis,
decreased by
USD 5.8bn to USD
199.2bn and, as
a result, the
tier 1 leverage ratio increased 0.2 percentage points to
9.5%. Similarly, the tier 1 supplementary leverage
ratio (the SLR)
increased 0.1 percentage points to 8.2%, primarily driven
by a USD 2.7bn decrease in SLR exposure.
The
average
liquidity
coverage
ratio
decreased
5 percentage
points
to
127.9%,
as
net
cash
outflows
increased
by
USD 1.4bn
and
high-quality
liquid
assets
increased
by
USD 0.8bn.
The
average
net
stable
funding
ratio
decreased
1.2 percentage points
to 132.8%.
This was
due to
a USD 3.1bn
decrease in
available stable
funding and
a USD 1.6bn
decrease in required stable funding.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups
| UBS Americas Holding LLC consolidated
66
KM1: Key metrics
1
USD m, except where indicated
30.6.25
31.3.25
31.12.24
30.9.24
30.6.24
2
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
16,152
16,236
16,123
23,303
23,036
2
Tier 1
18,974
19,053
18,941
26,121
25,846
3
Total capital
19,164
19,258
19,181
26,378
26,103
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
77,244
79,345
78,585
84,944
84,289
4b
Minimum capital requirement
3
6,180
6,348
6,287
6,795
6,743
Risk-based capital ratios as a percentage of RWA
5
CET1 ratio (%)
20.9
20.5
20.5
27.4
27.3
6
Tier 1 ratio (%)
24.6
24.0
24.1
30.8
30.7
7
Total capital ratio (%)
24.8
24.3
24.4
31.1
31.0
Additional CET1 buffer requirements as a percentage of RWA
8
BCBS capital conservation buffer requirement (%)
2.5
2.5
2.5
2.5
2.5
8a
US stress capital buffer requirement (%)
9.3
9.3
9.3
9.1
9.1
9
Countercyclical buffer requirement (%)
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
BCBS total of bank CET1 specific buffer requirements (%)
2.5
2.5
2.5
2.5
2.5
11a
US total bank specific capital buffer requirements (%)
9.3
9.3
9.3
9.1
9.1
12
CET1 available after meeting the bank’s minimum capital requirements (%)
4
16.4
16.0
16.0
22.9
22.8
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
5
199,196
204,960
197,487
197,597
205,699
6
14
Basel III leverage ratio (%)
7
9.5
9.3
9.6
13.2
12.6
14a
Total Basel III supplementary leverage ratio exposure measure
5
231,603
234,346
227,973
227,490
232,968
6
14b
Basel III supplementary leverage ratio (%)
7
8.2
8.1
8.3
11.5
11.1
Liquidity coverage ratio (LCR)
15
Total high-quality liquid assets (HQLA)
5
28,951
28,182
26,801
32,069
29,749
8
16
Total net cash outflow
5,9
22,639
21,213
20,064
24,649
20,135
8
17
LCR (%)
127.9
132.9
133.6
130.1
147.7
8
Net stable funding ratio (NSFR)
18
Total available stable funding
5
104,867
107,920
109,283
112,554
107,825
8
19
Total required stable funding
5,9
78,978
80,532
80,456
81,952
79,651
8
20
NSFR (%)
132.8
134.0
135.8
137.3
135.4
8
1 As the final Basel
III standards have not been
implemented in the US,
rows that are not applicable
have been removed from the
FINMA template.
2 Regulatory information is inclusive of
Credit Suisse Holdings
(USA), Inc.,
following the
reparenting of
this entity
under UBS
Americas Holding
LLC on
7 June
2024.
3 Calculated as
8% of
total RWA,
based on
total minimum
capital requirements,
excluding CET1
buffer
requirements.
4 Represents the CET1 ratio
that is available to meet
buffer requirements. Calculated
as the CET1 ratio
minus the BCBS CET1 capital
requirement and, where applicable,
minus the BCBS additional
tier 1 and tier
2 capital requirements met
with CET1 capital.
5 Figures are calculated
on a quarterly
average.
6 Leverage exposure for
30 June 2024
has been calculated as
if the reparenting of
Credit Suisse
Holdings (USA), Inc., occurred on the first day of
the calendar quarter.
7 On the basis of tier 1 capital.
8 The liquidity coverage ratio and
net stable funding ratio for 30 June 2024 are
calculated on a simple daily
average of the quarter,
which included the business activity of Credit
Suisse Holdings (USA), Inc. beginning on
7 June 2024.
9 Reflected at 85% of the full amount
in accordance with the Federal
Reserve tailoring
rule.
Material sub-group entity – creditor ranking at legal entity
level
Semi-annual |
The TLAC2 table below provides an overview of the creditor ranking structure of UBS Americas Holding LLC on
a standalone basis.
As of 30 June
2025, UBS Americas
Holding LLC had
a total loss-absorbing
capacity (TLAC) of
USD 26.8bn after regulatory
capital deductions and adjustments. This amount
included tier 1 capital of USD 19.0bn
and USD 7.8bn of internal long-
term debt that is eligible as internal TLAC issued to UBS AG, a wholly owned subsidiary
of the UBS Group AG resolution
entity.
TLAC2: Material sub-group entity – creditor ranking at legal entity level
As of 30.6.25
Creditor ranking
Total
USD m
1
2
3
4
1
Is the resolution entity the creditor / investor?
No
No
No
No
2
Description of creditor ranking
Common Equity
(most junior)
1
Preferred Shares
(Additional tier 1)
Subordinated
debt
Unsecured loans and
other pari passu
liabilities (most senior)
3
Total capital and liabilities net of credit risk mitigation
24,579
2,900
31,985
59,465
4
Subset of row 3 that are excluded liabilities
5
Total capital and liabilities less excluded liabilities (row 3 minus row 4)
24,579
2,900
31,985
59,465
6
Subset of row 5 that are eligible as TLAC
24,579
2,900
7,800
35,279
7
Subset of row 6 with 1 year ≤ residual maturity < 2 years
8
Subset of row 6 with 2 years ≤ residual maturity < 5 years
4,700
4,700
9
Subset of row 6 with 5 years ≤ residual maturity < 10 years
3,100
3,100
10
Subset of row 6 with residual maturity ≥ 10 years, but excluded perpetual
securities
11
Subset of row 6 that is perpetual securities
24,579
2,900
27,479
1 Equity attributable to shareholders, which includes share premium and reserves.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups
| Credit Suisse International standalone
67
Credit Suisse International standalone
Key metrics for the second quarter of 2025
Quarterly
|
The
table
below
is
based
on
Basel
Committee
on
Banking
Supervision
(BCBS)
Pillar 1
requirements
and
in
accordance with UK Prudential Regulatory Authority regulations
and IFRS Accounting Standards.
During the second quarter of 2025, the
common equity tier 1 capital of Credit Suisse International standalone decreased
by USD 0.1bn to
USD 6.7bn from USD 6.8bn,
primarily due to
losses for
the quarter. Total
capital decreased by
USD 0.1bn
to USD 6.7bn. Risk-weighted assets (RWA) decreased
by USD 2.3bn to USD 7.0bn, driven
by decreases
across market risk
RWA and credit risk RWA.
Leverage ratio exposure decreased by USD 3.6bn to
USD 19.8bn, mainly driven by a decrease
in reverse repos.
The
average
liquidity coverage
ratio
was
361.4%, compared
with 361.8%
in the
first
quarter
of 2025.
The
quarterly
variance was driven by a
decrease of USD 1.6bn in
high-quality liquid assets,
reflecting a decrease in
treasury-controlled
assets, and a USD 0.5bn reduction in net cash outflows.
The
net
stable
funding
ratio
(the
NSFR)
of
Credit
Suisse
International
standalone
remained
above
the
regulatory
requirement of 100%, at 266.1%, compared with
241.8% in the first quarter of 2025. The
movement in the NSFR was
driven
by
a
decrease
of
USD 3.0bn
in
available
stable
funding,
mainly
reflecting
decreases
in
capital
and
long-term
funding, which was offset by a decrease of USD 1.9bn in required stable funding,
mainly driven by a decrease in trading
inventory, derivative exposures and unsecured lending.
KM1: Key metrics
1
USD m, except where indicated
30.6.25
31.3.25
31.12.24
30.9.24
30.6.24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
6,734
6,816
6,883
12,945
12,814
2
Tier 1
6,734
6,816
6,883
14,145
14,014
3
Total capital
6,734
6,816
6,883
14,145
14,014
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
7,046
9,332
10,951
16,983
19,699
4b
Minimum capital requirement
2
564
747
876
1,359
1,576
Risk-based capital ratios as a percentage of RWA
5
CET1 ratio (%)
95.57
73.04
62.86
76.22
65.05
6
Tier 1 ratio (%)
95.57
73.04
62.86
83.29
71.14
7
Total capital ratio (%)
95.57
73.04
62.86
83.29
71.14
Additional CET1 buffer requirements as a percentage of RWA
8
BCBS capital conservation buffer requirement (%)
2.50
2.50
2.50
2.50
2.50
9
Countercyclical buffer requirement (%)
0.57
0.93
0.76
0.73
0.58
10
Bank G-SIB and / or D-SIB additional requirements (%)
11
BCBS total of bank CET1 specific buffer requirements (%)
3.07
3.43
3.26
3.23
3.08
12
CET1 available after meeting the bank’s minimum capital requirements (%)
3
87.57
65.04
54.86
71.72
60.55
Basel III leverage ratio
13
Total Basel III leverage ratio exposure measure
19,754
23,341
32,521
55,245
58,250
14
Basel III leverage ratio (%)
4
34.09
29.20
21.16
25.60
24.06
Liquidity coverage ratio (LCR)
5
15
Total high-quality liquid assets (HQLA)
12,427
14,008
15,031
14,984
14,578
16
Total net cash outflow
3,544
4,070
4,253
4,206
4,423
17
LCR (%)
361.40
361.77
363.29
367.15
345.26
Net stable funding ratio (NSFR)
18
Total available stable funding
10,951
13,990
17,503
21,600
23,409
19
Total required stable funding
4,214
6,145
8,693
12,935
16,461
20
NSFR (%)
266.14
241.78
214.78
182.88
150.84
1 As the final
Basel III standards
have not been implemented
in the UK, rows
that are not applicable
have been removed from
the FINMA template.
2 Calculated as 8%
of total RWA,
based on total minimum
capital requirements, excluding CET1
buffer requirements.
3 Represents the CET1 ratio
that is available to
meet buffer requirements. Calculated
as the CET1 ratio
minus the BCBS CET1 capital
requirement and,
where applicable, minus the BCBS additional tier 1 and tier 2 capital requirements met with CET1 capital.
4 On the basis of tier 1 capital.
5 Based on Pillar 1 requirements; calculated using a 12-month average.
30 June 2025 Pillar 3 Report |
Significant regulated subsidiaries and sub-groups
| Credit Suisse International standalone
68
Material sub-group entity – creditor ranking at legal entity
level
Semi-annual |
The TLAC2 table below provides an overview of the creditor ranking structure
of Credit Suisse International on
a standalone basis.
As of 30 June 2025, Credit Suisse International had a
total loss-absorbing capacity of USD 6.7bn after
regulatory capital
deductions and adjustments. This amount represents tier 1 capital
of USD 6.7bn.
TLAC2: Material sub-group entity – creditor ranking at legal entity level
As of 30.6.25
Creditor ranking
Total
USD m
1
2
3
4
1
Is the resolution entity the creditor / investor?
No
No
No
No
2
Description of creditor ranking
Common Equity
(most junior)
1
Preferred Shares
(Additional tier 1)
Subordinated
debt
Unsecured loans and
other pari passu
liabilities (most senior)
3
Total capital and liabilities net of credit risk mitigation
7,176
20,328
27,504
4
Subset of row 3 that are excluded liabilities
0
5
Total capital and liabilities less excluded liabilities (row 3 minus row 4)
7,176
20,328
27,504
6
Subset of row 5 that are eligible as TLAC
7,176
7,176
7
Subset of row 6 with 1 year ≤ residual maturity < 2 years
0
8
Subset of row 6 with 2 years ≤ residual maturity < 5 years
0
9
Subset of row 6 with 5 years ≤ residual maturity < 10 years
10
Subset of row 6 with residual maturity ≥ 10 years, but excluded perpetual
securities
11
Subset of row 6 that is perpetual securities
7,176
7,176
1 Equity attributable to shareholders, which includes share premium and reserves.
30 June 2025 Pillar 3 Report |
Appendix
69
Appendix
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
30 June 2025 Pillar 3 Report |
Appendix
70
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.
30 June 2025 Pillar 3 Report |
Appendix
71
Cautionary statement
|
This report
and the
information contained
herein are
provided solely
for information
purposes, and
are not to
be construed
as solicitation
of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating
to securities of or relating to UBS Group AG, UBS AG or their affiliates should be made on the basis of this report. Refer to UBS’s most recent annual report on
Form 20-
F,
quarterly reports and other information
furnished to or filed with
the US Securities and Exchange
Commission (the SEC) on Form
6-K, available at
ubs.com/investors
, for additional information.
Rounding |
Numbers presented throughout this report may not add up
precisely to the totals provided in the tables and text.
Percentages and percent changes
disclosed in text and tables are
calculated on the basis of unrounded
figures. Absolute changes between reporting periods disclosed in
the text, which can be
derived from numbers presented in related tables, are calculated on
a rounded basis.
Tables |
Within tables, blank fields generally indicate non-applicability or that presentation of any content would not be meaningful, or that information is not
available as of the relevant date or for the relevant period. Zero values generally indicate that the respective figure is zero on an actual or rounded basis.
Values
that are zero on a rounded basis can be either negative
or positive on an actual basis.
Websites |
In this report,
any website
addresses are provided
solely for information
and are not
intended to
be active links.
UBS does not
incorporate
the contents
of any such websites into this report.
UBS Group AG
PO Box
CH-8098 Zurich
ubs.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this
report to be signed on their behalf by the undersigned, thereunto duly
authorized.
UBS Group AG
By: _/s/ David Kelly _____________
Name:
David Kelly
Title:
Managing Director
By: _/s/ Ella Copetti-Campi _______
Name:
Ella Copetti-Campi
Title:
Executive Director
UBS AG
By: _/s/ David Kelly _____________
Name:
David Kelly
Title:
Managing Director
By: _/s/ Ella Copetti-Campi________
Name:
Ella Copetti-Campi
Title:
Executive Director
Date:
August 28, 2025