UBS Group AG 6-K, filed Feb 4, 2025
UBS Group AG (UBS)
6-K
2025-02-04
For: 2024-12-31
View Original
Added on
July 04, 2026
About this 6-K
UBS Group AG filed this 6-K on February 4, 2025.
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: February 4, 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
☒
☐
This Form 6-K consists of the Fourth Quarter 2024 Report of UBS Group AG, which appears immediately following
this page.
Fourth quarter
Corporate calendar UBS Group
Publication of the Annual Report 2024: Monday, 17 March 2025
Publication of the Sustainability Report 2024: Monday, 17 March 2025
Annual General Meeting 2025: Thursday, 10 April 2025
Publication of the first quarter 2025 report: Wednesday, 30 April 2025
Publication of the second quarter 2025 report: Wednesday, 30 July 2025
Information about future publication dates is also available at
ubs.com/global/en/investor-relations/events/calendar.html
Contacts
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UBS’s Investor Relations team manages
relationships with institutional investors,
research analysts and credit rating agencies.
ubs.com/investors
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relationships with global media and
journalists.
ubs.com/media
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mediarelations@ubs.com
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sh-mediarelations-ap@ubs.com
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The Group Company Secretary handles
inquiries directed to the Chairman or to
other members of the Board of Directors.
UBS Group AG, Office of the Group
Company Secretary
PO Box, CH-8098 Zurich, Switzerland
sh-company-secretary@ubs.com
Zurich +41-44-235 6652
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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.
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sh-shareholder-services@ubs.com
Zurich +41-44-235 6652
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For global registered share-related
inquiries in the US.
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PO Box 43006
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Shareholder online inquiries:
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Imprint
Publisher: UBS Group AG, Zurich, Switzerland | ubs.com
Language: English
© UBS 2025. The key symbol and UBS are among the registered and unregistered
trademarks of UBS. All rights reserved.
1.
UBS
Group
4
8
2.
UBS business divisions
and Group Items
19
22
25
27
29
30
3.
Risk, capital, liquidity and funding,
and balance sheet
32
37
46
47
49
4.
Consolidated
financial information
51
Appendix
65
69
71
72
UBS Group fourth quarter 2024 report
Terms used in this report, unless the context requires otherwise
“UBS”, “UBS Group”, “UBS Group AG consolidated”, “Group”, “we”, “us” and “our”
UBS Group AG and its consolidated subsidiaries
“UBS AG” and “UBS AG consolidated”
UBS AG and its consolidated subsidiaries
“Credit Suisse AG”
Credit Suisse AG and its consolidated subsidiaries before the merger
with UBS AG
“Credit Suisse Group“
Pre-acquisition Credit Suisse Group
”Credit Suisse”
Credit Suisse AG and its consolidated subsidiaries before the merger
with UBS AG, Credit Suisse Services AG, and other small former
Credit Suisse Group entities now directly held by UBS Group AG
“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
“1m”
One million, i.e. 1,000,000
“1bn”
One billion, i.e. 1,000,000,000
“1trn”
One trillion, i.e. 1,000,000,000,000
In this report, unless the context requires otherwise, references to any gender shall apply to all genders.
Alternative performance measures
An alternative performance measure (an APM) is a financial measure of historical or future financial performance,
financial position or cash flows other than a financial measure defined or specified in the applicable recognized
accounting standards or in other applicable regulations. We report a number of APMs in the discussion of the
financial and operating performance of the Group, our business divisions and Group Items. We use APMs to provide
a more complete picture of our operating performance and to reflect management’s view of the fundamental
drivers of our business results. A definition of each APM, the method used to calculate it and the information
content are presented under “Alternative performance measures” in the appendix to this report. Our APMs may
qualify as non-GAAP measures as defined by US Securities and Exchange Commission (SEC) regulations. Our
underlying results are APMs and are non-GAAP financial measures.
›
Refer to the “Group performance” section of this report and to “Alternative performance measures” in the
appendix to this report for additional information about underlying results
Comparability
Comparative information in this report is presented as follows.
Profit and loss information for all quarters covered by this report and for 2024 is based entirely on consolidated
data following the acquisition of the Credit Suisse Group. Comparative information for 2023 includes seven months
(June to December 2023) of post-acquisition consolidated data and five months of UBS Group data only (January
to May 2023).
All balance sheet information presented in this report includes only post-acquisition consolidated information.
UBS Group fourth quarter 2024 report
Our key figures
As of or for the quarter ended
As of or for the year ended
USD m, except where indicated
31.12.24
30.9.24
31.12.23
1
31.12.24
31.12.23
1
Group results
Total revenues
Negative goodwill
Credit loss expense / (release)
Operating expenses
Operating profit / (loss) before tax
Net profit / (loss) attributable to shareholders
Diluted earnings per share (USD)
2
Profitability and growth
3,4
Return on equity (%)
Return on tangible equity (%)
Underlying return on tangible equity (%)
5
Return on common equity tier 1 capital (%)
Underlying return on common equity tier 1 capital (%)
5
Return on leverage ratio denominator, gross (%)
Cost / income ratio (%)
6
Underlying cost / income ratio (%)
5,6
Effective tax rate (%)
n.m.
7
Net profit growth (%)
n.m.
n.m.
n.m.
Resources
3
Total assets
Equity attributable to shareholders
Common equity tier 1 capital
8
Risk-weighted assets
8
Common equity tier 1 capital ratio (%)
8
Going concern capital ratio (%)
8
Total loss-absorbing capacity ratio (%)
8
Leverage ratio denominator
8
Common equity tier 1 leverage ratio (%)
8
Liquidity coverage ratio (%)
9
Net stable funding ratio (%)
Other
Invested assets (USD bn)
4,10
Personnel (full-time equivalents)
Market capitalization
2,11
Total book value per share (USD)
2
Tangible book value per share (USD)
2
Credit-impaired lending assets as a percentage of total lending assets, gross (%)
4
Cost of credit risk (bps)
4
1 Comparative-period information has been revised. Refer to “Note 2 Accounting for the acquisition of the Credit Suisse Group” in the “Consolidated financial statements” section of the UBS Group third quarter
2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information. 2 Refer to the “Share information and earnings per share” section of this report for more information. 3 Refer to
the “Recent developments” section of this report for more information about targets and ambitions. 4 Refer to “Alternative performance measures” in the appendix to this report for the definition and calculation
method. 5 Refer to the “Group performance” section of this report for more information about underlying results. 6 Negative goodwill is not used in the calculation as it is presented in a separate reporting line
and is not part of total revenues. 7 The effective tax rate for the fourth quarter of 2023 is not a meaningful measure, due to the distortive effect of current unbenefited tax losses at the former Credit Suisse entities.
8 Based on the Swiss systemically relevant bank framework as of 1 January 2020. Refer to the “Capital management” section of this report for more information. 9 The disclosed ratios represent quarterly averages
for the quarters presented and are calculated based on an average of 64 data points in the fourth quarter of 2024, 65 data points in the third quarter of 2024 and 63 data points in the fourth quarter of 2023. Refer
to the “Liquidity and funding management” section of this report for more information. 10 Consists of invested assets for Global Wealth Management, Asset Management (including invested assets from associates)
and Personal & Corporate Banking. Refer to “Note 32 Invested assets and net new money” in the “Consolidated financial statements” section of the UBS Group Annual Report 2023, available under “Annual
reporting” at ubs.com/investors, for more information. 11 The calculation of market capitalization reflects total shares issued multiplied by the share price at the end of the period.
UBS Group fourth quarter 2024 report |
UBS Group | Recent developments 4
UBS Group
Management report
Recent developments
Integration of Credit Suisse
We continue to make progress related to the integration of Credit Suisse, and we are on track to substantially
complete the integration by the end of 2026. Our current focus remains on client account migrations and
infrastructure decommissioning.
In the fourth quarter of 2024, we completed the migration of our Global Wealth Management client accounts in
Luxembourg, Hong Kong, Singapore and Japan to UBS platforms. We expect the Swiss business migrations to
commence in the second quarter of 2025.
Our Non-core and Legacy business division has achieved a 52% reduction in risk-weighted assets (RWA) at
31 December 2024, well ahead of our original plan. As a result, we have updated our ambition and aim to reduce
Non-core and Legacy RWA to around USD 29bn by the end of 2025 and around USD 22bn by the end of 2026.
We also expect Non-core and Legacy to incur an underlying loss before tax of around USD 2.2bn in 2025 and less
than USD 1bn by the end of 2026 (exit rate), both excluding litigation.
In the fourth quarter of 2024, we realized an additional USD 0.7bn in gross cost savings, for a total of USD 3.4bn
in 2024. Cumulative gross cost savings at the end of 2024 amounted to USD 7.5bn compared with the 2022
combined cost base of UBS and Credit Suisse. This represents around 58% of our ambition of around USD 13bn in
annualized exit rate gross cost savings by the end of 2026.
In October 2024, UBS entered into an agreement to sell to American Express Swiss Holdings GmbH (American
Express) its 50% interest in Swisscard AECS GmbH (Swisscard), a joint venture in Switzerland between UBS and
American Express, subject to certain closing conditions. Also in October 2024, UBS entered into an agreement with
Swisscard to transition the Credit Suisse-branded card portfolios to UBS. In January 2025, UBS completed the
purchase of the card portfolios, with the actual client migration expected to take place over the following quarters.
The two transactions will result in similar profit and loss effects over the course of 2025 and, therefore, on a net
basis are not expected to have a material impact for UBS. In the fourth quarter of 2024, UBS recorded an expense
of USD 41m in connection with the termination of the Swisscard joint venture.
Targets, ambitions and strategy update
We are maintaining our targets and ambitions for the Group and our businesses as announced in 2024.
We aim to deliver, by the end of 2026:
–
an underlying return on common equity tier 1 capital (RoCET1) of around 15% (exit rate);
–
an underlying cost / income ratio of less than 70% (exit rate); and
–
exit rate gross cost savings of around USD 13bn by the end of 2026 compared with the 2022 combined cost
base of UBS and Credit Suisse.
Our capital guidance remains unchanged, we aim to maintain:
–
a common equity tier 1 (CET1) capital ratio of around 14%; and
–
a CET1 leverage ratio of greater than 4.0%.
As we complete the execution of the integration, including cost and capital efficiency measures, we believe our
scale and client franchises will position us to sustainably drive higher returns. We therefore aim to deliver a reported
RoCET1 of around 18% in 2028. Our targets and ambitions are based on our Group target of around 14% CET1
capital ratio and the existing Swiss capital regime.
Our business division ambitions
–
Global Wealth Management: surpass USD 5trn of invested assets by 2028, with around USD 100bn of net new
assets in 2025, building to around USD 200bn annually by 2028, and an underlying cost / income ratio of less
than 70% by the end of 2026 (exit rate).
UBS Group fourth quarter 2024 report |
UBS Group | Recent developments 5
–
Personal & Corporate Banking: an underlying cost / income ratio of less than 50% by the end of 2026 (exit rate)
and an underlying return on attributed equity of around 19% in the medium term.
–
Asset Management: an underlying cost / income ratio of less than 70% by the end of 2026 (exit rate).
–
The Investment Bank: an underlying return on attributed equity of around 15% through the cycle, while
operating with no more than 25% of the Group’s RWA.
–
Non-core and Legacy: an underlying loss before tax of less than USD 1bn (exit rate), underlying operating
expenses of around USD 0.8bn (exit rate), both excluding litigation, and around USD 22bn RWA all by the end
of 2026.
An integral part of our growth plans is to improve profitability across our Americas wealth business, which manages
USD 2.1trn in invested assets and is a key pillar of our strategy and value proposition to clients. We are executing
on our targeted investments to enhance and build out our multi-disciplinary coverage model of the ultra high net
worth client segment and increase penetration of the high-net worth and core affluent segments to further drive
scale. These growth initiatives will be supported by investments in our banking capabilities with the aim to enhance
our offering while working towards obtaining a National Charter. We are also increasing technology investments
and transforming how we approach them by focusing on delivering new and advanced digital capabilities in a more
dynamic and modular fashion. Finally, we remain disciplined on costs and have already taken actions to streamline
our organizational structure to drive operating leverage.
Capital returns
For the 2024 financial year, the Board of Directors plans to propose a dividend to UBS Group AG shareholders of
USD 0.90 per share. Subject to approval at the Annual General Meeting, scheduled for 10 April 2025, the dividend
will be paid on 17 April 2025 to shareholders of record on 16 April 2025. The ex-dividend date will be 15 April
2025 on the SIX Swiss Exchange and 16 April 2025 on the New York Stock Exchange. We remain committed to
progressive dividends and are accruing for an increase of around 10% in the ordinary dividend per share for the
2025 financial year.
In the fourth quarter of 2024, we completed our planned USD 1bn of share repurchases. We plan to repurchase
USD 1bn of shares in the first half of 2025. We aim to repurchase up to an additional USD 2bn of shares in the
second half of 2025 and are maintaining our ambition for share repurchases in 2026 to exceed full year 2022 levels.
Our share repurchases will be consistent with maintaining our CET1 capital ratio target of around 14%, achieving
our financial targets and the absence of material and immediate changes to the current capital regime in
Switzerland.
Regulatory and legal developments
Developments related to the final Basel III implementation
In Switzerland, the amendments to the Capital Adequacy Ordinance that incorporate the final Basel III standards
into Swiss law entered into force on 1 January 2025. The adoption of the final Basel III standards led to a USD 1bn
increase in the UBS Group’s RWA, resulting in a minimal impact on the CET1 capital ratio. The USD 1bn increase
was primarily driven by a USD 7bn increase in market risk RWA and a USD 3bn increase in credit valuation
adjustments-related RWA resulting from the implementation of the Fundamental Review of the Trading Book (the
FRTB) framework, largely offset by a USD 7bn reduction in operational risk RWA and a USD 1bn reduction in credit
risk RWA. These changes do not take into account the impact of the output floor. The output floor, which is being
phased in until 2028, is currently not binding for the UBS Group.
In the EU, the final Basel III requirements became applicable as of 1 January 2025, except for the market risk capital
requirements, the implementation of which has been delayed until at least 1 January 2026. The overall impact on
UBS is limited.
In January 2025, the UK Prudential Regulatory Authority (the PRA) announced that it has postponed the
implementation of the final Basel III standards until 1 January 2027, citing the need for greater clarity on US plans.
In its announcement, the PRA left open the possibility of further postponement. The date for the full phase-in of
the output floor continues to be 1 January 2030. The overall impact on UBS is expected to be limited.
In the US, both the timing and content of a re-proposal of the July 2023 draft version of the final Basel III rules
remain uncertain. The change in administration is likely to slow publication of a re-proposal of implementing
regulation.
UBS Group fourth quarter 2024 report |
UBS Group | Recent developments 6
Swiss parliamentary investigation committee releases its report
In December 2024, the Swiss parliamentary investigation committee (
Parlamentarische Untersuchungskommission
,
the PUK) published its report that examined the authorities’ role and actions in the context of the Credit Suisse
crisis. The PUK identified a need for improvement and action at both the enforcement and legislative levels and
made recommendations regarding potential improvements to the crisis toolkit.
In the first half of 2025, the Swiss Federal Council is expected to present two packages to implement measures
aiming to further develop and strengthen the Swiss too-big-to-fail regime, which will be followed by a public
consultation period. The packages are expected to be based on the Swiss Federal Council’s report on systemically
important banks that was published in April 2024. Overall, the Swiss Federal Council agreed with the findings of
the PUK, which will also be considered when drafting the aforementioned measures. Due to the broad range of
possible outcomes, the impact of the proposals on UBS can be assessed only when the implementation details
become clearer.
FINMA publishes new circular on nature-related financial risks
In December 2024, the Swiss Financial Market Supervisory Authority (FINMA) published a new circular, applicable
to banks and insurers, on the management of climate- and other nature-related financial risks. The circular sets out
provisions for governance and institution-wide risk management, as well as provisions for risk identification,
materiality assessment and scenario analysis regarding climate- and nature-related financial risks. Implementation
will be guided by international frameworks and standards, including the Basel Committee on Banking Supervision
Principles for the effective management and supervision of climate-related financial risks. The circular will enter into
force on 1 January 2026 and will initially apply exclusively to climate-related financial risks. From 1 January 2028,
the circular will apply to all nature-related financial risks. UBS is assessing the impact of the requirements, which
will be addressed in a multi-year implementation plan.
Swiss Federal Council adopts the Climate Protection Ordinance
In November 2024, the Swiss Federal Council adopted the Climate Protection Ordinance to the Climate and
Innovation Act. The ordinance entered into force on 1 January 2025, and it introduces, among other matters,
measures to support financial flows contributing to achieving the Swiss climate targets. The main instrument to
measure progress made by the financial sector toward this goal will continue to be the voluntary climate tests
conducted by the Swiss Federal Office for the Environment. UBS participates in the bi-annual climate tests
conducted by the Swiss authorities.
Swiss Federal Council reviews the Ordinance on Climate Disclosures
In December 2024, the Swiss Federal Council launched a consultation on amending the Ordinance on Climate
Disclosures, proposing to meet the obligation to report on climate-related matters by applying an internationally
recognized standard or the sustainability reporting standard used in the EU. The draft proposal also establishes
minimum requirements for transition plans for financial flows that describe the planned path to a net-zero target
by 2050. The consultation will last until March 2025, and the amended Ordinance on Climate Disclosures is
expected to enter into force on 1 January 2026. UBS is within the scope of the new requirements, with the impact
on UBS dependent on the final ordinance.
European Commission announces an intention to streamline and simplify sustainability regulations
In November 2024, the European Commission announced an intention to streamline and simplify sustainability
regulations, including the Taxonomy Regulation, the Corporate Sustainability Reporting Directive and the Corporate
Sustainability Due Diligence Directive. The impact on UBS can be assessed only when the details have become
clearer.
UK regulators consult on changes to the remuneration rules
In November 2024, the PRA and the Financial Conduct Authority published a consultation on changes to
remuneration rules for senior management functions and material risk takers. The consultation covers changes to
several aspects of the PRA remuneration rulebook, including the reduction of the seven-year minimum deferral
period to five years for senior managers and allowing deferred remuneration awards to vest on a pro rata basis
from the time of award. UBS is reviewing the proposals.
UBS Group fourth quarter 2024 report |
UBS Group | Recent developments 7
EU revises the European Market Infrastructure Regulation
In November 2024, the EU finalized changes to the existing European Market Infrastructure Regulation (the EMIR),
with the changes entering into force in December 2024. The revised EMIR rules require relevant EU market
participants to hold active accounts at EU Central Counterparties and to clear a representative portion of certain
derivative contracts within the EU, effective June 2025. Other changes include enhanced transparency on clearing
services to clients, new clearing threshold calculation methodology and new rules on initial margin model validation.
The impact of the revised EMIR on UBS and its in-scope clients will depend on the final design of the technical
implementation standards, which are expected to be published later in 2025.
Developments related to shortening the standard settlement cycle for securities transactions
In November 2024, the European Securities and Markets Authority published a report on shortening the settlement
cycle for securities transactions from two business days (T+2) to one business day (T+1) in the EU. The transition is
recommended to occur on 11 October 2027 across all relevant instruments. The transition is largely aligned with
the UK Accelerated Settlement Taskforce’s report from March 2024, which states that a respective transition to a
T+1 settlement cycle should take place no later than 31 December 2027, in alignment with other European
jurisdictions, including the EU and Switzerland. In January 2025, the Swiss Securities Post-Trade Council
recommended that the transition to a T+1 settlement cycle for the domestic markets in Switzerland and
Liechtenstein should occur in October 2027, in alignment with the EU. In the US, a shortened T+1 settlement cycle
has applied to securities transactions since May 2024. UBS implemented the required enhancements based on the
US rules and will prepare for further implementation according to the evolving rules and market practice in other
jurisdictions.
Early adoption of SAB 122, which rescinds SAB 121
In January 2025, the US Securities and Exchange Commission (the SEC) issued Staff Accounting Bulletin (SAB) 122,
which rescinded SAB 121,
Accounting for obligations to safeguard crypto-assets an entity holds for platform users
.
UBS has early adopted SAB 122 and has applied it retrospectively as the standard requires. Amounts that would
have been recognized as liabilities, with corresponding assets, under SAB 121 were not material to UBS, and
adoption of SAB 122 also has not had a material impact.
UBS Group fourth quarter 2024 report |
UBS Group | Group performance 8
Group performance
Income statement
For the quarter ended
% change from
For the year ended
USD m
31.12.24
30.9.24
31.12.23
3Q24
4Q23
31.12.24
31.12.23
1
Net interest income
Other net income from financial instruments measured at fair value through profit or loss
Net fee and commission income
Other income
Total revenues
Negative goodwill
Credit loss expense / (release)
Personnel expenses
General and administrative expenses
Depreciation, amortization and impairment of non-financial assets
Operating expenses
Operating profit / (loss) before tax
Tax expense / (benefit)
Net profit / (loss)
Net profit / (loss) attributable to non-controlling interests
Net profit / (loss) attributable to shareholders
Comprehensive income
Total comprehensive income
Total comprehensive income attributable to non-controlling interests
Total comprehensive income attributable to shareholders
1 Comparative-period information as previously reported in the 2023 Annual Report has been revised to reflect measurement period adjustments impacting negative goodwill. Refer to “Note 2 Accounting for the
acquisition of the Credit Suisse Group” in the “Consolidated financial statements” section of the UBS Group third quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information
about the relevant adjustments.
UBS Group fourth quarter 2024 report |
UBS Group | Group performance 9
Selected financial information of the business divisions and Group Items
For the quarter ended 31.12.24
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
of which: PPA effects and other integration items
1
of which: loss related to an investment in an associate
Total revenues (underlying)
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses and PPA effects
2
of which: items related to the Swisscard transactions
3
Operating expenses (underlying)
Operating profit / (loss) before tax as reported
Operating profit / (loss) before tax (underlying)
For the quarter ended 30.9.24
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
of which: PPA effects and other integration items
1
Total revenues (underlying)
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses and PPA effects
2
Operating expenses (underlying)
Operating profit / (loss) before tax as reported
Operating profit / (loss) before tax (underlying)
For the quarter ended 31.12.23
4
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
of which: PPA effects and other integration items
1
of which: loss related to an investment in an associate
Total revenues (underlying)
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses and PPA effects
2
of which: acquisition-related costs
Operating expenses (underlying)
Operating profit / (loss) before tax as reported
Operating profit / (loss) before tax (underlying)
1 Includes accretion of PPA adjustments on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration. 2 Includes temporary, incremental operating
expenses directly related to the integration, as well as amortization of newly recognized intangibles resulting from the acquisition of the Credit Suisse Group. 3 Represents the termination fee to American Express
related to the expected sale in 2025 of our 50% holding in Swisscard. 4 Comparative-period information has been restated for changes in business division perimeters, Group Treasury allocations and Non-core and
Legacy cost allocations, resulting in decreases in Operating profit / (loss) before tax of USD 101m for Global Wealth Management, USD 187m for Personal & Corporate Banking and USD 21m for the Investment Bank
and increases in Operating profit / (loss) before tax of USD 233m for Group Items, USD 69m for Non-core and Legacy and USD 7m for Asset Management. Refer to “Note 3 Segment reporting” in the “Consolidated
financial statements” section of the UBS Group third quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant changes.
UBS Group fourth quarter 2024 report |
UBS Group | Group performance 10
Selected financial information of the business divisions and Group Items (continued)
For the year ended 31.12.24
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
Total revenues as reported
of which: PPA effects and other integration items
1
of which: loss related to an investment in an associate
Total revenues (underlying)
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses and PPA effects
2
of which: items related to the Swisscard transactions
3
Operating expenses (underlying)
Operating profit / (loss) before tax as reported
Operating profit / (loss) before tax (underlying)
For the year ended 31.12.23
4,5
USD m
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Negative
goodwill
Total
Total revenues as reported
of which: PPA effects and other integration items
1
of which: loss related to an investment in an associate
Total revenues (underlying)
Negative goodwill
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses and PPA effects
2
of which: acquisition-related costs
Operating expenses (underlying)
Operating profit / (loss) before tax as reported
Operating profit / (loss) before tax (underlying)
1 Includes accretion of PPA adjustments on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration. 2 Includes temporary, incremental operating
expenses directly related to the integration, as well as amortization of newly recognized intangibles resulting from the acquisition of the Credit Suisse Group. 3 Represents the termination fee to American Express
related to the expected sale in 2025 of our 50% holding in Swisscard. 4 Comparative-period information has been restated for changes in business division perimeters, Group Treasury allocations and Non-core and
Legacy cost allocations, resulting in decreases in Operating profit / (loss) before tax of USD 144m for Global Wealth Management, USD 337m for Personal & Corporate Banking and USD 28m for the Investment Bank
and increases in Operating profit / (loss) before tax of USD 341m for Group Items, USD 154m for Non-core and Legacy and USD 14m for Asset Management. Refer to “Note 3 Segment reporting” in the “Consolidated
financial statements” section of the UBS Group third quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant changes. 5 Comparative-period
information as previously reported in the 2023 Annual Report has been revised to reflect measurement period adjustments impacting negative goodwill. Refer to “Note 2 Accounting for the acquisition of the Credit
Suisse Group” in the “Consolidated financial statements” section of the UBS Group third quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant
adjustments.
Integration-related expenses, by business division and Group Items
For the quarter ended
For the year ended
USD m
31.12.24
30.9.24
31.12.23
1
31.12.24
31.12.23
1
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Total integration-related expenses
of which: total revenues
of which: operating expenses
of which: personnel expenses
of which: general and administrative expenses
of which: depreciation, amortization and impairment of non-financial assets
1 Comparative-period information has been restated for changes in business division perimeters, Group Treasury allocations and Non-core and Legacy cost allocations. Refer to “Note 3 Segment reporting” in the
“Consolidated financial statements” section of the UBS Group third quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant changes.
UBS Group fourth quarter 2024 report |
UBS Group | Group performance 11
Underlying results
In addition to reporting our results in accordance with IFRS Accounting Standards, we report underlying results that
exclude items of profit or loss that management believes are not representative of the underlying performance.
In the fourth quarter of 2024, underlying revenues exclude purchase price allocation (PPA) effects and other
integration items, as well as a loss related to an investment in an associate. PPA effects mainly consist of PPA
adjustments on financial instruments measured at amortized cost, including off-balance sheet positions, arising
from the acquisition of the Credit Suisse Group. Accretion of PPA adjustments on financial instruments is accelerated
when the related financial instrument is derecognized before its contractual maturity. No adjustment is made for
accretion of PPA on financial instruments within Non-core and Legacy, due to the nature of its business model.
In the fourth quarter of 2024, underlying expenses exclude integration-related expenses that are temporary,
incremental and directly related to the integration of Credit Suisse into UBS, including costs of internal staff and
contractors substantially dedicated to integration activities, retention awards, redundancy costs, incremental
expenses from the shortening of useful lives of property, equipment and software, and impairment charges relating
to these assets. Classification as integration-related expenses does not affect the timing of recognition and
measurement of those expenses or the presentation thereof in the income statement. Underlying operating
expenses also exclude items related to the Swisscard transactions.
Results: 4Q24 vs 4Q23
Reported operating profit before tax was USD 1,047m, compared with an operating loss before tax of USD 751m,
reflecting lower operating expenses and an increase in total revenues, partly offset by higher net credit loss
expenses. Total revenues increased by USD 780m, or 7%, to USD 11,635m, and included a decrease of USD 288m
in accretion impacts resulting from PPA adjustments on financial instruments and other PPA effects. The increase in
total revenues was driven by an USD 818m increase in net fee and commission income and a USD 235m change in
other income, partly offset by a USD 271m decrease in net interest income and other net income from financial
instruments measured at fair value through profit or loss. Operating expenses decreased by USD 1,111m, or 10%,
to USD 10,359m and included a USD 524m decrease in integration-related expenses. The decrease in operating
expenses was mainly driven by a USD 700m decrease in personnel expenses and a USD 415m decrease in
depreciation, amortization and impairment of non-financial assets, while general and administrative expenses were
broadly unchanged. Net credit loss expenses were USD 229m, compared with USD 136m in the fourth quarter of
2023.
Underlying results 4Q24 vs 4Q23
Underlying revenues for the fourth quarter of 2024 excluded PPA effects and other integration items of USD 656m,
as well as USD 80m of losses related to an investment in an associate. Underlying operating expenses excluded
USD 1,255m of integration-related expenses and PPA effects, as well as a USD 41m expense related to the Swisscard
transactions.
On an underlying basis, profit before tax increased by USD 1,176m to USD 1,768m, reflecting a USD 640m increase
in total revenues and a USD 628m decrease in operating expenses, partly offset by a USD 93m increase in net credit
loss expenses.
Total revenues: 4Q24 vs 4Q23
Net interest income and other net income from financial instruments measured at fair value through profit or loss
Total combined net interest income and other net income from financial instruments measured at fair value through
profit or loss decreased by USD 271m to USD 4,982m and included a decrease of USD 151m in accretion impacts
resulting from PPA adjustments on financial instruments and other PPA effects.
UBS Group fourth quarter 2024 report |
UBS Group | Group performance 12
Net interest income and other net income from financial instruments measured at fair value through profit or loss
For the quarter ended
% change from
For the year ended
USD m
31.12.24
30.9.24
31.12.23
1
3Q24
4Q23
31.12.24
31.12.23
1
Net interest income from financial instruments measured at amortized cost and fair
value through other comprehensive income
Net interest income from financial instruments measured at fair value through profit or
loss and other
Other net income from financial instruments measured at fair value through profit or
loss
Total
Global Wealth Management
of which: net interest income
of which: transaction-based income from foreign exchange and other intermediary
activity
2
Personal & Corporate Banking
of which: net interest income
of which: transaction-based income from foreign exchange and other intermediary
activity
2
Asset Management
Investment Bank
Non-core and Legacy
Group Items
1 Comparative-period information has been restated for changes in business division perimeters, Group Treasury allocations and Non-core and Legacy cost allocations. Refer to “Note 3 Segment reporting” in the
“Consolidated financial statements” section of the UBS Group third quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant changes. 2 Mainly
includes spread-related income in connection with client-driven transactions, foreign currency translation effects and income and expenses from precious metals, which are included in the income statement line Other
net income from financial instruments measured at fair value through profit or loss. The amounts reported on this line are one component of Transaction -based income in the management discussion and analysis in
the “Global Wealth Management” and “Personal & Corporate Banking” sections of this report.
Global Wealth Management decreased by USD 51m to USD 2,217m, which included a USD 129m decrease in
accretion of PPA adjustments on financial instruments and other PPA effects. Excluding the aforementioned effects,
net interest income increased, largely driven by improved deposit margins from repricing actions, lower effects of
liquidity and funding costs, and higher loan revenues, mainly as a result of higher loan margins. There was also an
increase in transaction-based income, mainly driven by higher levels of client activity.
Personal & Corporate Banking decreased by USD 132m to USD 1,572m, which included a USD 32m decrease in
accretion of PPA adjustments on financial instruments and other PPA effects. Excluding the aforementioned effects,
net interest income decreased, mainly due to lower deposit margins resulting from both lower reinvestment rates
and clients shifting to lower-margin deposit products.
The Investment Bank increased by USD 573m to USD 1,555m, including a USD 26m increase in accretion of PPA
adjustments on financial instruments and other PPA effects. The overall increase was mainly due to higher revenues
in Financing, with increases across all products, led by Equity Financing. In addition, there was an increase in
Derivatives & Solutions revenues, reflecting increases across all products, mostly driven by Foreign Exchange and
Equity Derivatives, as well as an increase in Global Banking, mainly from higher revenues across Public Capital
Markets, primarily driven by Leveraged Capital Markets.
Non-core and Legacy was negative USD 153m compared with negative USD 25m in the fourth quarter of 2023,
mainly due to lower net interest income as a result of portfolio reductions and also due to lower trading revenues,
mainly reflecting lower gains on disposals compared with the fourth quarter of 2023. These decreases were partly
offset by lower funding costs.
Group Items was negative USD 202m compared with positive USD 315m in the fourth quarter of 2023. This
included the income from Group hedging and own debt, including hedge accounting ineffectiveness, within Group
Treasury. Revenues in the fourth quarter of 2024 were driven by mark-to-market effects on own credit and portfolio-
level economic hedges.
›
Refer to the relevant business division commentary in the “UBS business divisions and Group Items” section of this
report for more information about business-division-specific revenues
Net fee and commission income
Net fee and commission income increased by USD 818m to USD 6,598m and included a decrease of USD 137m in
accretion of PPA adjustments on financial instruments and other PPA effects, predominantly in the Investment Bank.
Net brokerage fees increased by USD 478m to USD 1,081m, reflecting an increase across all regions in Cash Equities
in Execution Services in the Investment Bank, as well as an increase in Global Wealth Management that was due to
higher levels of client activity, particularly in the Asia Pacific and Americas regions.
UBS Group fourth quarter 2024 report |
UBS Group | Group performance 13
Fees from portfolio management and related services increased by USD 119m to USD 3,085m, predominantly due
to higher revenues in Global Wealth Management, mainly as a result of positive market performance.
Investment fund fees increased by USD 356m to USD 1,579m, largely due to higher revenues in Global Wealth
Management, reflecting positive market performance, partly offset by lower revenues in Asset Management. The
decrease in Asset Management was due to continued margin compression, the impact of exits from non-strategic
businesses and negative foreign currency effects largely offset by positive market performance.
Other income
Other income was USD 56m, compared with negative USD 179m in the fourth quarter of 2023. The increase was
mainly due to a loss of USD 80m related to an investment in an associate, compared with a loss of USD 508m
related to an investment in an associate recognized in the fourth quarter of 2023. The fourth quarter of 2024 also
included a loss of USD 40m relating to insurance and similar contracts, compared with gains of USD 41m in the
fourth quarter of 2023. The insurance and similar contracts are hedged with derivative instruments, with offsetting
gains and losses in the income statement within Other net income from financial instruments measured at fair value
through profit or loss.
Credit loss expense / release: 4Q24 vs 4Q23
Total net credit loss expenses in the fourth quarter of 2024 were USD 229m, reflecting net releases of USD 21m
related to performing positions and net expenses of USD 250m on credit-impaired positions. Credit loss expenses
were USD 136m in the fourth quarter of 2023.
Credit loss expense / (release)
Performing positions
Credit-impaired positions
USD m
Stages 1 and 2
Stage 3
Purchased
Total
For the quarter ended 31.12.24
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Total
For the quarter ended 30.9.24
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Total
For the quarter ended 31.12.23
1
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Total
1 Comparative-period information has been restated for changes in business division perimeters. Refer to “Changes to segment reporting in 2024” in the “UBS business divisions and Group Items” section of the
UBS Group first quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, and “Note 3 Segment reporting” in the “Consolidated financial statements” section of the UBS Group third quarter
2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information.
UBS Group fourth quarter 2024 report |
UBS Group | Group performance 14
Operating expenses: 4Q24 vs 4Q23
Operating expenses
For the quarter ended
% change from
For the year ended
USD m
31.12.24
30.9.24
31.12.23
3Q24
4Q23
31.12.24
31.12.23
Personnel expenses
of which: salaries and variable compensation
of which: variable compensation – financial advisors
1
General and administrative expenses
of which: net expenses for litigation, regulatory and similar matters
Depreciation, amortization and impairment of non-financial assets
Total operating expenses
1 Consists of cash and deferred compensation awards and is based on compensable revenues and firm tenure using a formulaic approach. Also includes expenses related to compensation commitments with financial
advisors entered into at the time of recruitment that are subject to vesting requirements.
Personnel expenses
Personnel expenses decreased by USD 700m to USD 6,361m. Salaries and variable compensation decreased by
USD 407m, mainly as a result of a smaller workforce, lower accruals for performance awards and lower integration-
related expenses, partly offset by a USD 224m increase in financial advisor compensation, which reflected higher
compensable revenues. In addition, post-employment benefit plans decreased by USD 248m, largely due to the
fourth quarter of 2023 including an increase in the pension plan obligation of the Swiss pension plan of Credit
Suisse following the decision to align the scheme to that of UBS. Personnel expenses included a USD 195m decrease
in integration-related expenses, which was mainly due to the aforementioned pension scheme alignment.
General and administrative expenses
General and administrative expenses increased by USD 5m to USD 3,004m, including a USD 28m increase in
integration-related expenses, which was mainly attributable to higher outsourcing and marketing costs, partly offset
by lower consulting, legal and audit fees, as well as lower real estate and logistics costs. In addition, there was a
USD 41m expense related to the Swisscard transactions. Excluding integration-related expenses and the
aforementioned expense related to the Swisscard transactions, underlying general and administrative expenses
decreased, mainly due to a USD 65m decrease in outsourcing costs and also due to the fourth quarter of 2023
including a charge of USD 60m for the special assessment by the US Federal Deposit Insurance Corporation, partly
offset by an increase of USD 92m in expenses for litigation, regulatory and similar matters.
›
Refer to “Provisions and contingent liabilities” in the “Consolidated financial information” section of this report for
more information about litigation, regulatory and similar matters
›
Refer to the “Regulatory and legal developments” and “Risk factors” sections of the UBS Group Annual Report
2023, available under “Annual reporting” at
ubs.com/investors
, for more information about litigation, regulatory
and similar matters
Depreciation, amortization and impairment of non-financial assets
Depreciation, amortization and impairment of non-financial assets decreased by USD 415m to USD 994m, primarily
due to a USD 359m decrease in integration-related expenses. The decrease was largely as a result of the fourth
quarter of 2023 including higher impairment and accelerated depreciation associated with real estate leases.
Tax: 4Q24 vs 4Q23
The Group had a net income tax expense of USD 268m in the fourth quarter of 2024, compared with a tax benefit
of USD 473m in the prior-year quarter.
The current tax expense was USD 1,015m, which included USD 354m that primarily related to the taxable profits
of UBS Switzerland AG and other entities and USD 661m that mainly related to US corporate alternative minimum
tax, with an equivalent net deferred tax benefit for deferred tax assets (DTAs) recognized in respect of tax credits
carried forward.
There was a net deferred tax benefit of USD 747m, which reflected the aforementioned net deferred tax benefit of
USD 661m and a net benefit of USD 244m related to revaluations of DTAs for certain entities in connection with
our business planning process, partly offset by a net deferred tax expense of USD 158m that primarily related to
the amortization of DTAs previously recognized in relation to tax losses carried forward and deductible temporary
differences.
UBS Group fourth quarter 2024 report |
UBS Group | Group performance 15
The Group’s effective tax rate for the quarter was 25.6%, although it would have been 48.9% without the
aforementioned deferred tax benefit from DTA revaluations. This is higher than the Group’s structural rate of 23%,
mainly because the Group’s net profit includes operating losses of certain entities, mostly reflecting integration-
related expenses, including restructuring costs, that did not result in any tax benefits because they cannot be offset
with profits of other entities in the Group and did not result in any DTA recognition. We expect that the 2025 full-
year effective tax rate for the UBS Group will be materially less than the structural rate of 23%, due to projected
tax planning benefits.
Total comprehensive income attributable to shareholders
In the fourth quarter of 2024, total comprehensive income attributable to shareholders was negative USD 1,851m,
reflecting a net profit of USD 770m and other comprehensive income (OCI), net of tax, of negative USD 2,622m.
Foreign currency translation OCI was negative USD 1,835m, mainly resulting from the strengthening of the US
dollar against the Swiss franc and the euro.
OCI related to cash flow hedges was negative USD 785m, mainly reflecting net unrealized losses on US dollar
hedging derivatives resulting from increases in the relevant US dollar long-term interest rates.
OCI related to cost of hedging was negative USD 98m, mainly driven by a widening and steepening of the US
dollar / euro cross-currency basis which resulted in mark-to-market losses on the cross-currency swaps.
OCI related to own credit on financial liabilities designated at fair value was USD 144m, primarily due to the impact
of time decay on the portfolio.
›
Refer to “Statement of comprehensive income” in the “Consolidated financial information” section of this report
for more information
›
Refer to “Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital” in
the “Capital management” section of this report for more information about the effects of OCI on common equity
tier 1 capital
›
Refer to “Note 21 Fair value measurement” in the “Consolidated financial statements” section of the UBS Group
Annual Report 2023, available under “Annual reporting” at
ubs.com/investors
, for more information about own
credit on financial liabilities designated at fair value
Sensitivity to interest rate movements
As of 31 December 2024, it is estimated that a parallel shift in yield curves by +100 basis points could lead to a
combined increase in annual net interest income from our banking book of approximately USD 1.2bn in the first
year after such a shift. Of this increase, approximately USD 0.7bn, USD 0.3bn and USD 0.1bn would result from
changes in Swiss franc, US dollar and euro interest rates, respectively.
A parallel shift in yield curves by –100 basis points could lead to a combined increase in annual net interest income
of approximately
USD 0.6bn. Of this increase, approximately USD 1.1bn would result from changes in Swiss franc
interest rates, driven by both contractual and assumed flooring benefits under negative interest rates. US dollar and
euro interest rates would lead to an offsetting decrease of USD 0.4bn and USD 0.1bn, respectively.
These estimates are based on a hypothetical scenario of an immediate change in interest rates, equal across all
currencies and relative to implied forward rates as of 31 December 2024
applied to our banking book. These
estimates further assume no change to balance sheet size and product mix, stable foreign exchange rates, and no
specific management action. These estimates do not represent net interest income forecasts.
›
Refer to the “Risk management and control” section of this report for information about interest rate risk in the
banking book
UBS Group fourth quarter 2024 report |
UBS Group | Group performance 16
Key figures and personnel
Below is an overview of selected key figures of the Group. For further information about key figures related to
capital management, refer to the “Capital management” section of this report.
Cost / income ratio: 4Q24 vs 4Q23
The cost / income ratio was 89.0%, compared with 105.7%, and on an underlying basis the cost / income ratio
was 81.9%, compared with 93.0%. Both of these decreases were a result of lower operating expenses and higher
total revenues.
Personnel: 4Q24 vs 3Q24
The number of internal and external personnel employed was 128,983 (workforce count) as of 31 December 2024,
a net decrease of 2,694 compared with 30 September 2024. The number of internal personnel employed as of
31 December 2024 was 108,648 (full-time equivalents), a net decrease of 748 compared with 30 September 2024.
The number of external staff was approximately 20,335 (workforce count) as of 31 December 2024, a net decrease
of approximately 1,946 compared with 30 September 2024.
Equity, CET1 capital and returns
As of or for the quarter ended
As of or for the year ended
USD m, except where indicated
31.12.24
30.9.24
31.12.23
1
31.12.24
31.12.23
1
Net profit
Net profit / (loss) attributable to shareholders
Equity
Equity attributable to shareholders
less: goodwill and intangible assets
Tangible equity attributable to shareholders
less: other CET1 adjustments
CET1 capital
Returns
Return on equity (%)
Return on tangible equity (%)
Underlying return on tangible equity (%)
Return on CET1 capital (%)
Underlying return on CET1 capital (%)
1 Comparative-period information has been revised. Refer to “Note 2 Accounting for the acquisition of the Credit Suisse Group” in the “Consolidated financial statements” section of the UBS Group third quarter
2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information.
Common equity tier 1 capital: 4Q24 vs 3Q24
During the fourth quarter of 2024, our common equity tier 1 (CET1) capital decreased by USD 2.8bn to
USD 71.4bn, mainly as operating profit before tax of USD 1.0bn was more than offset by foreign currency
translation losses of USD 1.8bn, current tax expenses of USD 1.0bn, dividend accruals of USD 0.9bn and a
USD 0.2bn decrease in eligible deferred tax assets on temporary differences. Share repurchases of USD 0.3bn
carried out in the fourth quarter of 2024 under our 2024 share repurchase program did not affect our CET1 capital
position, as there was an equal reduction in the capital reserve for potential share repurchases. The remaining
capital reserve for potential share repurchases was fully utilized during the fourth quarter of 2024.
Return on common equity tier 1 capital: 4Q24 vs 4Q23
The annualized return on CET1 capital was 4.2%, compared with negative 1.4%, driven by net profit attributable
to shareholders compared with a loss attributable to shareholders in the fourth quarter of 2023, as well as a
decrease in average CET1 capital. On an underlying basis the return on CET1 capital was 7.2%, compared with
4.8%, driven by an increase in net profit attributable to shareholders, as well as a decrease in average CET1 capital.
Risk-weighted assets: 4Q24 vs 3Q24
During the fourth quarter of 2024, RWA decreased by USD 20.8bn to USD 498.5bn, driven by a USD 14.6bn
decrease in currency effects, as well as a USD 6.6bn decrease resulting from asset size and other movements, partly
offset by an increase of USD 0.4bn resulting from model updates and methodology changes.
Common equity tier 1 capital ratio: 4Q24 vs 3Q24
Our CET1 capital ratio was broadly unchanged at 14.3%, as a USD 2.8bn decrease in CET1 capital was offset by
the aforementioned decrease in RWA.
UBS Group fourth quarter 2024 report |
UBS Group | Group performance 17
Leverage ratio denominator: 4Q24 vs 3Q24
The leverage ratio denominator (the LRD) decreased by USD 88.9bn to USD 1,519.5bn, driven by currency effects
of USD 68.9bn, as well as asset size and other movements of USD 20.0bn.
Common equity tier 1 leverage ratio: 4Q24 vs 3Q24
Our CET1 leverage ratio increased to 4.7% from 4.6%, reflecting the aforementioned decrease in the LRD, partly
offset by a USD 2.8bn decrease in CET1 capital.
Outlook
Investor sentiment remained positive in the fourth quarter of 2024, driving strong institutional and private client
activity supported by a constructive market backdrop that reflected an increase in investors’ risk appetite following
the results of the US presidential election.
Constructive market conditions have continued into the first quarter of 2025 sustained by the greater optimism
regarding growth prospects in the US. However, investor behavior may be affected by the clouded macroeconomic
outlook outside the US, increased uncertainties around global trade, inflation and central bank policies, as well as
geopolitics, including the upcoming elections in Germany. We see the markets as remaining particularly sensitive to
new developments, positive or negative, leading to potential spikes in volatility across all asset classes.
In the first quarter, we expect a low-to-mid single digit percentage sequential decline in net interest income (NII) in
Global Wealth Management and around a 10% sequential decline in Personal & Corporate Banking’s NII, measured
in Swiss francs. Higher asset levels are expected to support recurring fee income across our asset-gathering
businesses. As we progress our integration plans integration-related expenses are expected to be around USD 1.1bn
and accretion of PPA effects to contribute around USD 0.5bn to the Group’s total revenues.
We remain focused on supporting clients with advice and solutions and continue to execute on our priorities,
investing in people, products, and capabilities to drive sustainable long-term value for our stakeholders while
maintaining a balance sheet for all seasons.
UBS Group fourth quarter 2024 report |
UBS business divisions and Group Items 18
UBS business divisions and
Group Items
Management report
Our businesses
We report five business divisions, each of which qualifies as an operating segment pursuant to IFRS Accounting
Standards: Global Wealth Management, Personal & Corporate Banking, Asset Management, the Investment Bank,
and Non-core and Legacy. Non-core and Legacy includes positions and businesses not aligned with our strategy
and policies. Those consist of the assets and liabilities reported as part of the former Capital Release Unit (Credit
Suisse) and certain assets and liabilities of the former Investment Bank (Credit Suisse), the former Corporate Center
(Credit Suisse) and other former Credit Suisse business divisions. Non-core and Legacy also includes the remaining
assets and liabilities of UBS’s Non-core and Legacy Portfolio, previously reported in Group Functions (which has
been renamed Group Items), and smaller amounts of assets and liabilities of UBS’s business divisions that have been
assessed as not strategic in light of the acquisition of the Credit Suisse Group.
Our Group functions are support and control functions that provide services to the Group. Virtually all costs and
revenues incurred by the support and control functions are allocated to the business divisions, leaving a residual
amount, mainly related to certain Group funding and hedging items, that we refer to as Group Items in our segment
reporting.
UBS Group fourth quarter 2024 report |
UBS business divisions and Group Items | Global Wealth Management 19
Global Wealth Management
Global Wealth Management
1
As of or for the quarter ended
% change from
As of or for the year
ended
USD m, except where indicated
31.12.24
30.9.24
31.12.23
2
3Q24
4Q23
31.12.24
31.12.23
2
Results
Net interest income
Recurring net fee income
3
Transaction-based income
3
Other income
Total revenues
Credit loss expense / (release)
Operating expenses
Business division operating profit / (loss) before tax
Underlying results
Total revenues as reported
of which: PPA effects and other integration items
4
of which: PPA effects recognized in net interest income
of which: PPA effects and other integration items recognized in transaction-based income
of which: loss related to an investment in an associate
Total revenues (underlying)
3
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses and PPA effects
3,5
Operating expenses (underlying)
3
of which: expenses for litigation, regulatory and similar matters
Business division operating profit / (loss) before tax as reported
Business division operating profit / (loss) before tax (underlying)
3
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
3
Cost / income ratio (%)
3
Average attributed equity (USD bn)
6
Return on attributed equity (%)
3,6
Financial advisor compensation
7
Net new fee-generating assets (USD bn)
3
Fee-generating assets (USD bn)
3
Net new assets (USD bn)
3
Invested assets (USD bn)
3
Loans, gross (USD bn)
8
Customer deposits (USD bn)
8
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
3,9
Advisors (full-time equivalents)
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
3
Cost / income ratio (%)
3
Return on attributed equity (%)
3,6
1 Comparatives may differ due to adjustments following organizational changes, restatements due to the retrospective adoption of new accounting standards or changes in accounting policies, and events after the
reporting period. 2 Comparative figures have been restated for changes in business division perimeters, Group Treasury allocations and Non-core and Legacy cost allocations, resulting in decreases in operating profit
before tax of USD
101m for the quarter ended 31
December 2023 and USD
144m for the year ended 31
December 2023. Refer to “Note 3 Segment reporting” in the “Consolidated financial statements” section of
the UBS Group third quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant changes. Certain comparative figures have also been restated for changes
in the equity attribution framework. Refer to “Changes to segment reporting in 2024” in the “UBS business divisions and Group Items” section and the “Equity attribution” section of the UBS Group first quarter
2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant changes. 3 Refer to “Alternative performance measures” in the appendix to this report for the
definition and calculation method. We started to report fee-generating assets and net new fee-generating assets on a consolidated basis, including Credit Suisse data, from the fourth quarter of 2023 onward.
4 Includes accretion of PPA adjustments on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration. 5 Includes temporary, incremental operating
expenses directly related to the integration, as well as amortization of newly recognized intangibles resulting from the acquisition of the Credit Suisse Group. 6 Refer to the “Equity attribution” section of this report
for more information about the equity attribution framework. 7 Relates to licensed professionals with the ability to provide investment advice to clients in the Americas. Consists of cash and deferred compensation
awards and is based on compensable revenues and firm tenure using a formulaic approach. Also includes expenses related to compensation commitments with financial advisors entered into at the time of recruitment
that are subject to vesting requirements. Recruitment loans to financial advisors were USD 1,683m as of 31 December 2024. 8 Loans and Customer deposits in this table include customer brokerage receivables and
payables, respectively, which are presented in separate reporting lines on the balance sheet. 9 Refer to the “Risk management and control” section of this report for more information about (credit-)impaired
exposures. Excludes loans to financial advisors.
Results: 4Q24 vs 4Q23
Profit before tax increased by USD 587m, or 210%, to USD 867m, mainly driven by higher total revenues.
Underlying profit before tax was USD 1,147m, an increase of 84%, after excluding from operating expenses
USD 460m of integration-related expenses and purchase price allocation (PPA) effects, and also excluding from
total revenues USD 200m of PPA effects and a loss of USD 21m related to an investment in an associate.
UBS Group fourth quarter 2024 report |
UBS business divisions and Group Items | Global Wealth Management 20
Total revenues
Total revenues increased by USD 567m, or 10%, to USD 6,121m, largely driven by higher recurring net fee income,
a decrease in negative other income and higher transaction-based income. Total revenues included a USD 149m
decrease in PPA effects. It also included a loss of USD 21m related to an investment in an associate. Excluding PPA
effects of USD 200m and the aforementioned loss, underlying total revenues were USD 5,942m, an increase of
10%.
Net interest income decreased by USD 22m, or 1%, to USD 1,849m and included a USD 129m decrease in accretion
of PPA adjustments on financial instruments and other PPA effects. The remaining variance was largely driven by
improved deposit margins from repricing actions, lower effects of liquidity and funding costs, and higher loan
revenues, mainly as a result of higher loan margins. Excluding accretion and other effects, underlying net interest
income was USD 1,657m, an increase of 7%.
Recurring net fee income increased by USD 362m, or 12%, to USD 3,262m, mainly driven by positive market
performance.
Transaction-based income increased by USD 86m, or 9%, to USD 1,041m, mainly driven by higher levels of client
activity, particularly in the Asia Pacific and Americas regions. Transaction-based income included a USD 20m
decrease in accretion of PPA adjustments on financial instruments and other PPA effects. Excluding accretion and
other effects, underlying transaction-based income was USD 1,034m, an increase of 12%.
Other income was negative USD 32m, compared with other income of negative USD 172m. Other income in the
fourth quarter of 2024 included a loss of USD 21m related to an investment in an associate, compared with the
loss of USD 190m recognized in the fourth quarter of 2023. Excluding the aforementioned loss, underlying other
income in the fourth quarter of 2024 was negative USD 11m.
Credit loss expense / release
Net credit loss releases were USD 14m, compared with net credit loss releases of USD 8m in the fourth quarter of
2023.
Operating expenses
Operating expenses decreased by USD 14m to USD 5,268m, and included a USD 42m decrease in integration-
related expenses. The remaining variance was mainly due to the fourth quarter of 2023 including a charge of
USD 60m for the special assessment by the US Federal Deposit Insurance Corporation (the FDIC). These decreases
were partly offset by higher underlying personnel expenses, which resulted from higher financial advisor
compensation, reflecting increases in compensable revenues, and an increase in provisions for litigation, regulatory
and similar matters. Excluding integration-related expenses and PPA effects of USD 460m, underlying operating
expenses were USD 4,808m, broadly stable year over year.
Invested assets: 4Q24 vs 3Q24
Invested assets decreased by USD 77bn to USD 4,182bn, mainly driven by negative foreign currency effects of
USD 76.0bn, negative market performance of USD 8.3bn and by reclassification of USD 8.3bn of certain Credit
Suisse client assets from invested assets to custody-only assets, partly offset by net new asset inflows of USD 17.7bn.
Loans: 4Q24 vs 3Q24
Loans decreased by USD 11.0bn to USD 300.5bn, mainly driven by negative foreign currency effects and negative
net new loans of USD 0.8bn.
Customer deposits: 4Q24 vs 3Q24
Customer deposits decreased by USD 11.8bn to USD 470.1bn, mainly driven by negative foreign currency effects,
partly offset by net new deposits of USD 2.7bn.
UBS Group fourth quarter 2024 report |
UBS business divisions and Group Items | Global Wealth Management 21
Regional breakdown of performance measures
As of or for the quarter ended 31.12.24
USD bn, except where indicated
Americas
1
Switzerland
EMEA
Asia Pacific
Global
2
Global Wealth
Management
Total revenues (USD m)
Operating profit / (loss) before tax (USD m)
Operating profit / (loss) before tax (underlying) (USD m)
3
Cost / income ratio (%)
3
Cost / income ratio (underlying) (%)
3
Loans, gross
4
Net new loans
Net new fee-generating assets
3
Fee-generating assets
3
Net new assets
3
Net new assets growth rate (%)
3
Invested assets
3
Advisors (full-time equivalents)
1 Including the following business units: United States and Canada; and Latin America. 2 Includes minor functions, which are not included in the four regions individually presented in this table, and also includes
impacts from accretion of PPA adjustments on financial instruments and other PPA effects and integration-related expenses. 3 Refer to “Alternative performance measures” in the appendix to this report for the
definition and calculation method. 4 Loans include customer brokerage receivables, which are presented in a separate reporting line on the balance sheet.
Regional comments 4Q24 vs 4Q23, except where indicated
Americas
Profit before tax increased by USD 129m to USD 214m and included an increase in provisions for litigation,
regulatory and similar matters. In addition, the fourth quarter of 2023 included the aforementioned charge of
USD 60m for the special assessment by the FDIC. Total revenues increased by USD 362m, or 14%, to USD 2,937m,
mainly driven by higher recurring net fee income and transaction-based income, partly offset by lower net interest
income. The cost / income ratio decreased to 92.4% from 96.7%. Loans increased 1% compared with the third
quarter of 2024, to USD 97.6bn, mainly reflecting positive net new loans of USD 1.1bn. Net new asset inflows were
USD 13.7bn.
Switzerland
Profit before tax increased by USD 71m to USD 375m. Total revenues increased by USD 29m, or 3%, to
USD 1,004m, mostly driven by higher transaction-based income, net interest income and recurring net fee income.
The cost / income ratio decreased to 64.0% from 69.1%. Loans decreased 8% compared with the third quarter of
2024, to USD 102.9bn, mainly reflecting negative foreign currency effects and USD 1.0bn of negative net new
loans. Net new asset inflows were USD 4.5bn.
EMEA
Profit before tax increased by USD 115m to USD 296m. Total revenues increased by USD 46m, or 4%, to
USD 1,150m, mainly driven by higher net interest income and recurring net fee income. The cost / income ratio
decreased to 75.2% from 83.8%. Loans decreased 4% compared with the third quarter of 2024, to USD 57.4bn,
mainly driven by negative foreign currency effects and USD 0.5bn of negative net new loans. Net new asset inflows
were USD 1.4bn.
Asia Pacific
Profit before tax increased by USD 211m to USD 271m. Total revenues increased by USD 107m, or 15%, to
USD 842m, mainly driven by increases in transaction-based income, net interest income and recurring net fee
income. The cost / income ratio decreased to 67.5% from 92.3%. Loans decreased 3% compared with the third
quarter of 2024, to USD 41.5bn, mainly driven by negative foreign currency effects and USD 0.2bn of negative net
new loans. Net new asset outflows were USD 1.2bn.
Global
Operating loss before tax was USD 289m, mainly including USD 460m of the aforementioned integration-related
expenses and PPA effects in operating expenses, partly offset by the aforementioned USD 200m related to PPA
effects and a loss of USD 21m related to an investment in an associate in total revenues.
UBS Group fourth quarter 2024 report |
UBS business divisions and Group Items | Personal & Corporate Banking 22
Personal & Corporate Banking
Personal & Corporate Banking – in Swiss francs
1
As of or for the quarter ended
% change from
As of or for the year
ended
CHF m, except where indicated
31.12.24
30.9.24
31.12.23
2
3Q24
4Q23
31.12.24
31.12.23
2
Results
Net interest income
Recurring net fee income
3
Transaction-based income
3
Other income
Total revenues
Credit loss expense / (release)
Operating expenses
Business division operating profit / (loss) before tax
Underlying results
Total revenues as reported
of which: PPA effects and other integration items
4
of which: PPA effects recognized in net interest income
of which: PPA effects and other integration items recognized in transaction-based income
of which: loss related to an investment in an associate
Total revenues (underlying)
3
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses and PPA effects
3,5
of which: items related to the Swisscard transactions
6
Operating expenses (underlying)
3
of which: expenses for litigation, regulatory and similar matters
Business division operating profit / (loss) before tax as reported
Business division operating profit / (loss) before tax (underlying)
3
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
3
Cost / income ratio (%)
3
Average attributed equity (CHF bn)
7
Return on attributed equity (%)
3,7
Net interest margin (bps)
3
Loans, gross (CHF bn)
Customer deposits (CHF bn)
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
3,8
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
3
Cost / income ratio (%)
3
Return on attributed equity (%)
3,7
1 Comparatives may differ due to adjustments following organizational changes, restatements due to the retrospective adoption of new accounting standards or changes in accounting policies, and events after the
reporting period. 2 Comparative figures have been restated for changes in business division perimeters, Group Treasury allocations and Non-core and Legacy cost allocations, resulting in decreases in operating profit
before tax of CHF
164m for the quarter ended 31
December 2023 and CHF
296m for the year ended 31
December 2023. Refer to “Note 3 Segment reporting” in the “Consolidated financial statements” section of
the UBS Group third quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant changes. Certain comparative figures have also been restated for changes
in the equity attribution framework. Refer to “Changes to segment reporting in 2024” in the “UBS business divisions and Group Items” section and the “Equity attribution” section of the UBS Group first quarter 2024
report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant changes. 3 Refer to “Alternative performance measures” in the appendix to this report for the definition
and calculation method. 4 Includes accretion of PPA adjustments on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration. 5 Includes temporary,
incremental operating expenses directly related to the integration, as well as amortization of newly recognized intangibles resulting from the acquisition of the Credit Suisse Group. 6 Represents the termination fee
to American Express related to the expected sale in 2025 of our 50% holding in Swisscard. 7
Refer to the “Equity attribution” section of this report for more information about the equity attribution framework.
8 Refer to the “Risk management and control” section of this report for more information about (credit-)impaired exposures.
Results
:
4Q24 vs 4Q23
Profit before tax decreased by CHF 13m, or 2%, to CHF 524m, reflecting higher operating expenses and net credit
loss expenses, partly offset by higher total revenues. Underlying profit before tax was CHF 572m, a decrease of
18%, after excluding from total revenues CHF 227m of purchase price allocation (PPA) effects and a loss of
CHF 54m related to an investment in an associate, and also excluding from operating expenses integration-related
expenses and PPA effects of CHF 185m and a CHF 37m expense related to the Swisscard transactions.
UBS Group fourth quarter 2024 report |
UBS business divisions and Group Items | Personal & Corporate Banking 23
Total revenues
Total revenues increased by CHF 151m, or 8%, to CHF 1,983m, largely reflecting a decrease in negative other
income, partly offset by lower net interest income. The change in total revenues was also due to a CHF 40m
decrease in PPA effects. Total revenues included a loss of CHF 54m related to an investment in an associate.
Excluding PPA effects of CHF 227m and the aforementioned loss, underlying total revenues were CHF 1,810m, a
decrease of 1%.
Net interest income decreased by CHF 116m, or 9%, to CHF 1,204m, and included a CHF 26m decrease in accretion
of PPA adjustments on financial instruments and other PPA effects. The remaining decrease was mainly due to lower
deposit margins, resulting from both lower reinvestment rates and clients shifting to lower-margin deposit products.
Excluding accretion and other effects, underlying net interest income was CHF 994m, a decrease of 8%.
Recurring net fee income increased by CHF 25m, or 8%, to CHF 357m, mainly due to higher investment product
levels, reflecting positive market performance and net new inflows. Recurring net fee income in the fourth quarter
of 2024 was impacted by a reclassification of recurring net fee income to transaction-based income as a result of
aligning the Credit Suisse presentation to that of UBS.
Transaction-based income increased by CHF 40m, or 9%, to CHF 471m, mainly reflecting the aforementioned
reclassification of recurring net fee income to transaction-based income, as well as higher client activity levels.
Transaction-based income also included a CHF 13m decrease of accretion of PPA adjustments on financial
instruments and other PPA effects. Excluding accretion and other effects, underlying transaction-based income was
CHF 453m, an increase of 13%.
Other income was negative CHF 49m, compared with other income of negative CHF 251m in the fourth quarter of
2023. Other income in the fourth quarter of 2024 included a loss of CHF 54m related to an investment in an
associate, compared with a loss of CHF 267m related to an investment in an associate recognized in the fourth
quarter of 2023. Excluding the aforementioned loss, underlying other income in the fourth quarter of 2024 was
CHF 5m.
Credit loss expense / release
Net credit loss expenses were CHF 155m, mainly reflecting net credit loss expenses of CHF 177m on credit-impaired
positions primarily in the legacy Credit Suisse corporate loan book, partly offset by net credit loss releases of
CHF 22m related to performing positions. These compared with net credit loss expenses of CHF 74m in the fourth
quarter of 2023.
Operating expenses
Operating expenses increased by CHF 83m, or 7%, to CHF 1,305m and included a CHF 23m increase in integration-
related expenses. Operating expenses in the fourth quarter of 2024 also included a CHF 37m expense related to
the Swisscard transactions. Excluding integration-related expenses and PPA effects of CHF 185m, as well as the
aforementioned expense of CHF 37m, underlying operating expenses were CHF 1,083m, broadly stable year over
year.
UBS Group fourth quarter 2024 report |
UBS business divisions and Group Items | Personal & Corporate Banking 24
Personal & Corporate Banking – in US dollars
1
As of or for the quarter ended
% change from
As of or for the year
ended
USD m, except where indicated
31.12.24
30.9.24
31.12.23
2
3Q24
4Q23
31.12.24
31.12.23
2
Results
Net interest income
Recurring net fee income
3
Transaction-based income
3
Other income
Total revenues
Credit loss expense / (release)
Operating expenses
Business division operating profit / (loss) before tax
Underlying results
Total revenues as reported
of which: PPA effects and other integration items
4
of which: PPA effects recognized in net interest income
of which: PPA effects and other integration items recognized in transaction-based income
of which: loss related to an investment in an associate
Total revenues (underlying)
3
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses and PPA effects
3,5
of which: items related to the Swisscard transactions
6
Operating expenses (underlying)
3
of which: expenses for litigation, regulatory and similar matters
Business division operating profit / (loss) before tax as reported
Business division operating profit / (loss) before tax (underlying)
3
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
3
Cost / income ratio (%)
3
Average attributed equity (USD bn)
7
Return on attributed equity (%)
3,7
Net interest margin (bps)
3
Loans, gross (USD bn)
Customer deposits (USD bn)
Impaired loan portfolio as a percentage of total loan portfolio, gross (%)
3,8
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
3
Cost / income ratio (%)
3
Return on attributed equity (%)
3,7
1 Comparatives may differ due to adjustments following organizational changes, restatements due to the retrospective adoption of new accounting standards or changes in accounting policies, and events after the
reporting period. 2 Comparative figures have been restated for changes in business division perimeters, Group Treasury allocations and Non-core and Legacy cost allocations, resulting in decreases in operating profit
before tax of USD
187m for the quarter ended 31
December 2023 and USD
337m for the year ended 31
December 2023. Refer to “Note 3 Segment reporting” in the “Consolidated financial statements” section of
the UBS Group third quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant changes. Certain comparative figures have also been restated for changes
in the equity attribution framework. Refer to “Changes to segment reporting in 2024” in the “UBS business divisions and Group Items” section and the “Equity attribution” section of the UBS Group first quarter 2024
report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant changes. 3 Refer to “Alternative performance measures” in the appendix to this report for the definition
and calculation method. 4 Includes accretion of PPA adjustments on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration. 5 Includes temporary,
incremental operating expenses directly related to the integration, as well as amortization of newly recognized intangibles resulting from the acquisition of the Credit Suisse Group. 6 Represents the termination fee
to American Express related to the expected sale in 2025 of our 50% holding in Swisscard. 7
Refer to the “Equity attribution” section of this report for more information about the equity attribution framework.
8 Refer to the “Risk management and control” section of this report for more information about (credit-)impaired exposures.
UBS Group fourth quarter 2024 report |
UBS business divisions and Group Items | Asset Management 25
Asset Management
Asset Management
1
As of or for the quarter ended
% change from
As of or for the year
ended
USD m, except where indicated
31.12.24
30.9.24
31.12.23
2
3Q24
4Q23
31.12.24
31.12.23
2
Results
Net management fees
3
Performance fees
Net gain from disposals
Total revenues
Credit loss expense / (release)
Operating expenses
Business division operating profit / (loss) before tax
Underlying results
Total revenues as reported
Total revenues (underlying)
4
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses
4
Operating expenses (underlying)
4
of which: expenses for litigation, regulatory and similar matters
Business division operating profit / (loss) before tax as reported
Business division operating profit / (loss) before tax (underlying)
4
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
4
Cost / income ratio (%)
4
Average attributed equity (USD bn)
5
Return on attributed equity (%)
4,5
Gross margin on invested assets (bps)
4
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
4
Cost / income ratio (%)
4
Return on attributed equity (%)
4,5
Information by business line / asset class
Net new money (USD bn)
4
Equities
Fixed Income
of which: money market
Multi-asset & Solutions
Hedge Fund Businesses
Real Estate & Private Markets
Total net new money excluding associates
of which: net new money excluding money market
Associates
6
Total net new money
Invested assets (USD bn)
4
Equities
Fixed Income
of which: money market
Multi-asset & Solutions
Hedge Fund Businesses
Real Estate & Private Markets
Total invested assets excluding associates
of which: passive strategies
Associates
6
Total invested assets
UBS Group fourth quarter 2024 report |
UBS business divisions and Group Items | Asset Management 26
Asset Management (continued)
1
As of or for the quarter ended
% change from
As of or for the year
ended
USD m, except where indicated
31.12.24
30.9.24
31.12.23
2
3Q24
4Q23
31.12.24
31.12.23
2
Information by region
Invested assets (USD bn)
4
Americas
Asia Pacific
7
EMEA (excluding Switzerland)
Switzerland
Total invested assets
Information by channel
Invested assets (USD bn)
4
Third-party institutional
Third-party wholesale
UBS’s wealth management businesses
Associates
6
Total invested assets
1 Comparatives may differ due to adjustments following organizational changes, restatements due to the retrospective adoption of new accounting standards or changes in accounting policies, and events after the
reporting period. 2 Comparative figures have been restated for changes in business division perimeters, Group Treasury allocations and Non-core and Legacy cost allocations, resulting in increases in operating profit
before tax of USD
7m for the quarter ended 31
December 2023 and USD
14m for the year ended 31
December 2023. Refer to “Note 3 Segment reporting” in the “Consolidated financial statements” section of the
UBS Group third quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant changes. Certain comparative figures have also been restated for changes in
the equity attribution framework. Refer to “Changes to segment reporting in 2024” in the “UBS business divisions and Group Items” section and the “Equity attribution” section of the UBS Group first quarter 2024
report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant changes. 3 Net management fees include transaction fees, fund administration revenues (including net
interest and trading income from lending activities and foreign-exchange hedging as part of the fund services offering), distribution fees, incremental fund-related expenses, gains or losses from seed money and co-
investments, funding costs, the negative pass-through impact of third-party performance fees, and other items that are not Asset Management’s performance fees. 4 Refer to “Alternative performance measures”
in the appendix to this report for the definition and calculation method. 5 Refer to the “Equity attribution” section of this report for more information about the equity attribution framework. 6 The invested assets
and net new money amounts reported for associates are prepared in accordance with their local regulatory requirements and practices. 7 Includes invested assets from associates.
Results: 4Q24 vs 4Q23
Profit before tax increased by USD 6m, or 5%, to USD 128m, reflecting lower operating expenses, partly offset by
a decrease in total revenues. Profit before tax in the fourth quarter of 2024 included net gains of USD 13m on the
sale of our shareholding in Credit Suisse Investment Partners, compared with net gains on sale of USD 27m in the
fourth quarter of 2023, which predominantly related to the completion of the sale of a majority stake in UBS Hana
Asset Management Co., Ltd. Underlying profit before tax was USD 224m, an increase of 20%, after excluding
integration-related expenses of USD 96m.
Total revenues
Total revenues decreased by USD 59m, or 7%, to USD 766m, mostly due to lower net management fees and lower
net gains on the aforementioned sales.
Net management fees decreased by USD 36m, or 5%, to USD 709m, with continued margin compression, the
impact of exits from non-strategic businesses and negative foreign currency effects largely offset by positive market
performance.
Performance fees decreased by USD 8m, or 15%, to USD 44m, mostly due to the fourth quarter of 2023 including
the final distribution of fees from a legacy fund. The remaining variance was due to decreases in Fixed Income and
Real Estate & Private Markets, partly offset by increases in Hedge Fund Businesses.
Operating expenses
Operating expenses decreased by USD 65m, or 9%, to USD 639m, mainly reflecting lower personnel expenses, and
included a USD 32m increase in integration-related expenses. Excluding integration-related expenses of USD 96m,
underlying operating expenses were USD 543m, a decrease of 15%.
Invested assets: 4Q24 vs 3Q24
Invested assets decreased by USD 24bn to USD 1,773bn, mainly reflecting negative foreign currency effects of
USD 72bn, partly offset by net new money of USD 33bn and positive market performance of USD 16bn. Excluding
money market flows and associates, net new money was USD 26bn, driven by a USD 39bn institutional inflow in
passive equities.
UBS Group fourth quarter 2024 report |
UBS business divisions and Group Items | Investment Bank 27
Investment Bank
Investment Bank
1
As of or for the quarter ended
% change from
As of or for the year
ended
USD m, except where indicated
31.12.24
30.9.24
31.12.23
2
3Q24
4Q23
31.12.24
31.12.23
2
Results
Advisory
Capital Markets
Global Banking
Execution Services
3
Derivatives & Solutions
3
Financing
Global Markets
of which: Equities
of which: Foreign Exchange, Rates and Credit
Total revenues
Credit loss expense / (release)
Operating expenses
Business division operating profit / (loss) before tax
Underlying results
Total revenues as reported
of which: PPA effects
4
of which: PPA effects recognized in Global Banking revenue line
Total revenues (underlying)
5
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses
5
Operating expenses (underlying)
5
of which: expenses for litigation, regulatory and similar matters
Business division operating profit / (loss) before tax as reported
Business division operating profit / (loss) before tax (underlying)
5
Performance measures and other information
Pre-tax profit growth (year-on-year, %)
5
n.m.
n.m.
n.m.
n.m.
n.m.
Cost / income ratio (%)
5
Average attributed equity (USD bn)
6
Return on attributed equity (%)
5,6
Underlying performance measures
Pre-tax profit growth (year-on-year, %)
5
n.m.
n.m.
n.m.
n.m.
Cost / income ratio (%)
5
Return on attributed equity (%)
5,6
1 Comparatives may differ due to adjustments following organizational changes, restatements due to the retrospective adoption of new accounting standards or changes in accounting policies, and events after the
reporting period. 2 Comparative figures have been restated for changes in business division perimeters, Group Treasury allocations and Non-core and Legacy cost allocations, resulting in increases in operating loss
before tax of USD
21m for the quarter ended 31
December 2023 and USD
28m for the year ended 31
December 2023. Refer to “Note 3 Segment reporting” in the “Consolidated financial statements” section of the
UBS Group third quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant changes. Certain comparative figures have also been restated for changes in
the equity attribution framework. Refer to “Changes to segment reporting in 2024” in the “UBS business divisions and Group Items” section and the “Equity attribution” section of the UBS Group first quarter 2024
report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant changes. 3 Comparative figures for the quarter ended 31 December 2023 and for the year ended
31 December 2023 have been restated as a result of the shift of the foreign exchange products that are traded over electronic platforms from Execution Services to Derivatives & Solutions. The restatement had no
effect on total Global Markets revenues. 4 Includes accretion of PPA adjustments on financial instruments and other PPA effects. 5 Refer to “Alternative performance measures” in the appendix to this report for
the definition and calculation method. 6 Refer to the “Equity attribution” section of this report for more information about the equity attribution framework.
UBS Group fourth quarter 2024 report |
UBS business divisions and Group Items | Investment Bank 28
Results: 4Q24 vs 4Q23
Profit before tax was USD 479m, compared with a loss before tax of USD 190m in the fourth quarter of 2023,
mainly due to higher total revenues and lower operating expenses. Underlying profit before tax was USD 452m,
after excluding USD 202m of purchase price allocation (PPA) effects and USD 174m of integration-related expenses.
Total revenues
Total revenues increased by USD 608m, or 28%, to USD 2,749m, due to higher Global Markets and Global Banking
revenues, and included a USD 75m decrease in PPA effects. Underlying total revenues, excluding PPA effects of
USD 202m, were USD 2,547m, an increase of 37%.
Global Banking
Global Banking revenues increased by USD 32m, or 4%, to USD 872m, despite a USD 78m decrease in accretion
of PPA adjustments on financial instruments and other PPA effects. Excluding such accretion and other effects,
underlying Global Banking revenues increased by USD 109m, or 19%.
Advisory revenues increased by USD 69m, or 36%, to USD 260m, mainly due to higher merger and acquisition
transaction revenues, which increased by USD 63m, or 41%.
Capital Markets revenues decreased by USD 37m to USD 612m, including a USD 78m decrease in accretion of PPA
adjustments on financial instruments and other PPA effects. Excluding such accretion and other effects, underlying
Capital Markets revenues increased by USD 40m, or 11%, primarily driven by Leveraged Capital Markets.
Global Markets
Global Markets revenues increased by USD 576m, or 44%, to USD 1,877m, driven by higher Financing, Derivatives
& Solutions and Execution Services revenues.
Execution Services revenues increased by USD 120m, or 34%, to USD 471m, mainly due to increases in Cash
Equities across all regions.
Derivatives & Solutions revenues increased by USD 176m, or 35%, to USD 683m, with increases across all products,
mostly driven by Foreign Exchange and Equity Derivatives.
Financing revenues increased by USD 281m, or 64%, to USD 723m, with increases across all products, led by Equity
Financing.
Equities
Global Markets Equities revenues increased by USD 442m, or 44%, to USD 1,448m, driven by increases in all
products, led by Financing and Cash Equities.
Foreign Exchange, Rates and Credit
Global Markets Foreign Exchange, Rates and Credit revenues increased by USD 134m, or 45%, to USD 429m,
driven by increases in all products, led by Foreign Exchange.
Credit loss expense / release
Net credit loss expenses increased by USD 15m to USD 63m.
Operating expenses
Operating expenses decreased by USD 76m, or 3%, to USD 2,207m, largely due to a decrease in personnel
expenses. Operating expenses included a USD 7m increase in integration-related expenses. Excluding integration-
related expenses of USD 174m, underlying operating expenses were USD 2,032m, a decrease of USD 84m, or 4%.
UBS Group fourth quarter 2024 report |
UBS business divisions and Group Items | Non-core and Legacy 29
Non-core and Legacy
Non-core and Legacy
1
As of or for the quarter ended
% change from
As of or for the year
ended
USD m, except where indicated
31.12.24
30.9.24
31.12.23
2
3Q24
4Q23
31.12.24
31.12.23
2
Results
Total revenues
Credit loss expense / (release)
Operating expenses
Operating profit / (loss) before tax
Underlying results
Total revenues as reported
Total revenues (underlying)
3
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses
3
Operating expenses (underlying)
3
of which: expenses for litigation, regulatory and similar matters
Operating profit / (loss) before tax as reported
Operating profit / (loss) before tax (underlying)
3
Performance measures and other information
Average attributed equity (USD bn)
4
Risk-weighted assets (USD bn)
Leverage ratio denominator (USD bn)
1 Comparatives may differ due to adjustments following organizational changes, restatements due to the retrospective adoption of new accounting standards or changes in accounting policies, and events after the
reporting period. 2 Comparative figures have been restated for changes in business division perimeters, Group Treasury allocations and Non-core and Legacy cost allocations, resulting in decreases in operating loss
before tax of USD
69m for the quarter ended 31
December 2023 and USD
154m for the year ended 31
December 2023. Refer to “Note 3 Segment reporting” in the “Consolidated financial statements” section of the
UBS Group third quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant changes. Certain comparative figures have also been restated for changes in
the equity attribution framework. Refer to “Changes to segment reporting in 2024” in the “UBS business divisions and Group Items” section and the “Equity attribution” section of the UBS Group first quarter 2024
report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant changes. 3 Refer to “Alternative performance measures” in the appendix to this report for the definition
and calculation method. 4 Refer to the “Equity attribution” section of this report for more information about the equity attribution framework.
Composition of Non-core and Legacy
USD bn
RWA
Total assets
LRD
31.12.24
30.9.24
31.12.24
30.9.24
31.12.24
30.9.24
Exposure category
Equities
Macro
Loans
Securitized products
Credit
High-quality liquid assets
Operational risk
Other
Total
Results: 4Q24 vs 4Q23
Loss before tax was USD 923m, compared with a loss before tax of USD 1,657m in the fourth quarter of 2023.
Underlying loss before tax was USD 606m, a decrease of 33%, after excluding integration-related expenses of
USD 317m.
Total revenues
Total revenues were negative USD 58m, compared with total revenues of USD 145m in the fourth quarter of 2023,
mainly due to lower net interest income as a result of portfolio reductions and also due to lower trading revenues,
mainly reflecting lower gains on disposals compared with the fourth quarter of 2023. These decreases were partly
offset by lower funding costs.
UBS Group fourth quarter 2024 report |
UBS business divisions and Group Items | Non-core and Legacy 30
Credit loss expense / release
Net credit loss expenses decreased by USD 9m to USD 6m and mainly reflected net credit loss expenses on credit-
impaired positions with a small number of corporate counterparties.
Operating expenses
Operating expenses decreased by USD 929m, or 52%, to USD 858m, mainly due to a USD 433m decrease in
integration-related expenses, which included a decrease in real estate expenses, and also due to lower personnel
expenses and technology expenses. Excluding integration-related expenses of USD 317m, underlying operating
expenses in the fourth quarter of 2024 were USD 541m, a decrease of 48%.
Risk-weighted assets and leverage ratio denominator: 4Q24 vs 3Q24
Risk-weighted assets (RWA) decreased by USD 3.4bn to USD 41.4bn, and the leverage ratio denominator (the LRD)
decreased by USD 15.5bn to USD 53.5bn. The active unwinding of Non-core and Legacy assets resulted in a
decrease in RWA, mainly related to the loan and securitized product portfolios, and a decrease in the LRD, mainly
driven by the changes in the high-quality liquid asset, macro, equity and loan portfolios.
Group Items
Group Items
1
As of or for the quarter ended
% change from
As of or for the year
ended
USD m
31.12.24
30.9.24
31.12.23
2
3Q24
4Q23
31.12.24
31.12.23
2
Results
Total revenues
Credit loss expense / (release)
Operating expenses
Operating profit / (loss) before tax
Underlying results
Total revenues as reported
of which: PPA effects and other integration items
3
Total revenues (underlying)
4
Credit loss expense / (release)
Operating expenses as reported
of which: integration-related expenses
4
of which: acquisition-related costs
Operating expenses (underlying)
4
of which: expenses for litigation, regulatory and similar matters
Operating profit / (loss) before tax as reported
Operating profit / (loss) before tax (underlying)
4
1 Comparatives may differ due to adjustments following organizational changes, restatements due to the retrospective adoption of new accounting standards or changes in accounting policies, and events after the
reporting period. 2 Comparative figures have been restated for changes in business division perimeters, Group Treasury allocations and Non-core and Legacy cost allocations, resulting in an increase in operating
profit before tax of USD
233m for the quarter ended 31
December 2023 and a decrease in operating loss before tax of USD
341m for the year ended 31
December 2023. Refer to “Note 3 Segment reporting” in the
“Consolidated financial statements” section of the UBS Group third quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant changes. Certain
comparative figures have also been restated for changes in the equity attribution framework. Refer to “Changes to segment reporting in 2024” in the “UBS business divisions and Group Items” section and the “Equity
attribution” section of the UBS Group first quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant changes. 3 Includes accretion of PPA adjustments
on financial instruments and other PPA effects, as well as temporary and incremental items directly related to the integration. 4 Refer to “Alternative performance measures” in the appendix to this report for the
definition and calculation method.
Results: 4Q24 vs 4Q23
Loss before tax was USD 100m, compared with a profit before tax of USD 93m. Underlying loss before tax was
USD 96m, after excluding from total revenues negative USD 4m of purchase price allocation (PPA) effects and other
integration items and also excluding from operating expenses negative USD 1m of integration-related expenses.
This compared with an underlying profit before tax of USD 189m, after excluding from operating expenses
USD 108m of integration-related expenses and acquisition-related costs and also excluding from total revenues
USD 12m of PPA effects and other integration items.
Income from Group hedging and own debt, including hedge accounting ineffectiveness, decreased by USD 258m
to net USD 10m, compared with net income of USD 268m. The net income in the fourth quarter of 2024 was
driven by mark-to-market effects on own credit and portfolio-level economic hedges.
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet 31
Risk, capital, liquidity and
funding, and balance sheet
Management report
Table of contents
32
32
34
36
36
37
39
42
44
45
46
46
46
46
47
47
47
48
48
49
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 32
Risk management and control
This section provides information about key developments during the reporting period and should be read in
conjunction with the “Risk management and control” section of the UBS Group Annual Report 2023, available
under “Annual reporting” at
ubs.com/investors
, and the “Recent developments” section of this report for more
information about the integration of Credit Suisse.
Credit risk
Overall banking products exposure
Overall banking products exposure decreased by USD 63bn to USD 1,002bn as of 31 December 2024, primarily
reflecting currency effects and negative net new loans in Personal & Corporate Banking.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about balance sheet
movements
›
Refer to the “Group performance” section of this report for more information about credit loss expense / release
Overall traded products exposure
Overall traded products exposure increased by USD 6bn to USD 66bn as of 31 December 2024, primarily driven by
an increase in over-the-counter derivatives exposure in the Investment Bank due to new transactions and market
movements.
Loan underwriting
In the Investment Bank, mandated loan underwriting commitments on a notional basis increased by USD 0.3bn to
USD 4.6bn as of 31 December 2024, driven by new mandates, partly offset by deal syndications and cancellations.
As of 31 December 2024, USD 0.2bn of these commitments had not been distributed as originally planned. As of
31 December 2024, Non-core and Legacy had no loan underwriting commitments.
Loan underwriting exposures in the Investment Bank are classified as held for trading, with fair values reflecting the
market conditions at the end of the quarter. Credit hedges are in place to help protect against fair value movements
in the portfolio.
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 33
Banking and traded products exposure in the business divisions and Group Items
31.12.24
USD m
Global
Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core
and Legacy
Group
Items
Total
Banking products exposure, gross
1,2
of which: loans and advances to customers (on-balance sheet)
of which: guarantees and irrevocable loan commitments (off-balance sheet)
Committed unconditionally revocable credit lines
3
Traded products exposure, gross
2,4
of which: over-the-counter derivatives
of which: securities financing transactions
of which: exchange-traded derivatives
Total credit-impaired exposure, gross
of which: stage 3
of which: PCI
Total allowances and provisions for expected credit losses
of which: stage 1
of which: stage 2
of which: stage 3
of which: PCI
30.9.24
USD m
Global
Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core
and Legacy
Group
Items
Total
Banking products exposure, gross
1,2
of which: loans and advances to customers (on-balance sheet)
of which: guarantees and irrevocable loan commitments (off-balance sheet)
Committed unconditionally revocable credit lines
3
Traded products exposure, gross
2,4
of which: over-the-counter derivatives
of which: securities financing transactions
of which: exchange-traded derivatives
Total credit-impaired exposure, gross
of which: stage 3
of which: PCI
Total allowances and provisions for expected credit losses
of which: stage 1
of which: stage 2
of which: stage 3
of which: PCI
1 IFRS 9 gross exposure for banking products includes the following financial instruments in scope of expected credit loss measurement: balances at central banks, amounts due from banks, loans and advances to
customers, other financial assets at amortized cost, guarantees and irrevocable loan commitments. 2 Internal management view of credit risk, which differs in certain respects from IFRS Accounting Standards.
3 Commitments that can be canceled by UBS at any time but expose UBS to credit risk if the client has the ability to draw the facility before UBS can take action. These commitments are subject to expected credit loss
requirements. 4 As counterparty risk for traded products is managed at counterparty level, no further split between exposures in the Investment Bank, Non-core and Legacy, and Group Items is provided.
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 34
Market risk
The UBS Group excluding certain legacy Credit Suisse components continued to maintain generally low levels of
management value-at-risk (VaR). Average management VaR (1-day, 95% confidence level) decreased marginally to
USD 11m from USD 12m in the fourth quarter of 2024. There were no new negative backtesting exceptions in the
fourth quarter of 2024. The number of negative backtesting exceptions within the most recent 250-business-day
window remained at zero.
Average management VaR (1-day, 98% confidence level) of the legacy Credit Suisse components decreased to
USD 6m from USD 11m in the fourth quarter of 2024, driven by continued strategic migration of positions to UBS
and reductions in Non-core and Legacy. In the fourth quarter of 2024, the aforementioned legacy Credit Suisse
components had one new negative backtesting exception, driven by Non-core and Legacy. Of the previously
reported backtesting exceptions, one backtesting exception is no longer in the 250-business-day window, and one
backtesting exception, related to exit cost reserves, no longer counts toward the total number of negative
backtesting exceptions relevant for the capital multiplier. As a result, the number of negative backtesting exceptions
within the most recent 250-business-day window decreased to three from four.
As the number of negative backtesting exceptions for both the UBS Group excluding certain legacy Credit Suisse
components and the aforementioned legacy Credit Suisse components remained below five, the Swiss Financial
Market Supervisory Authority (FINMA) VaR multiplier derived from negative backtesting exceptions for market risk
risk-weighted assets was unchanged compared with the prior quarter, at 3.0.
Management value-at-risk (1-day, 95% confidence, 5 years of historical data) of the business divisions and Group Items
excluding certain legacy Credit Suisse components, by general market risk type
1,2
Average by risk type
USD m
Min.
Max.
Period end
Average
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Diversification effect
3,4
Total as of 31.12.24
Total as of 30.9.24
Management value-at-risk (1-day, 98% confidence, 2 years of historical data) of certain legacy Credit Suisse
components of the business divisions and Group Items, by general market risk type
1,2
Average by risk type
USD m
Min.
Max.
Period end
Average
Equity
Interest
rates
Credit
spreads
Foreign
exchange
Commodities
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
Diversification effect
3,4
Total as of 31.12.24
Total as of 30.9.24
1 Legacy Credit Suisse components not included in the UBS Group management VaR predominantly reflect the portfolio in Non-core and Legacy. These positions continue to be managed on legacy Credit Suisse
infrastructure based on legacy Credit Suisse management VaR methodology until full migration of these positions to UBS infrastructure or liquidation of the positions. This process is ongoing, and the management
VaR of the legacy Credit Suisse components is expected to continue decreasing over time. 2 Statistics at individual levels may not be summed to deduce the corresponding aggregate figures. The minima and maxima
for each level may occur on different days, and, likewise, the VaR for each business line or risk type, being driven by the extreme loss tail of the corresponding distribution of simulated profits and losses for that
business line or risk type, may well be driven by different days in the historical time series, rendering invalid the simple summation of figures to arrive at the aggregate total. 3 The difference between the sum of the
standalone VaR for the business divisions and Group Items and the total VaR. 4 As the minima and maxima for different business divisions and Group Items occur on different days, it is not meaningful to calculate
a portfolio diversification effect.
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 35
Economic value of equity and net interest income sensitivity
The economic value of equity (EVE) sensitivity in the UBS Group banking book to a +1-basis-point parallel shift in
yield curves was negative USD 37.3m as of 31 December 2024, compared with negative USD 37.2m as of
30 September 2024. This excluded the sensitivity of USD 5.5m from additional tier 1 (AT1) capital instruments (as
per specific FINMA requirements) in contrast to general Basel Committee on Banking Supervision (BCBS) guidance.
The majority of our interest rate risk in the banking book was a reflection of the net asset duration that we ran to
offset our modeled sensitivity of net USD 29.4m (30 September 2024: USD 28.0m) assigned to our equity, goodwill
and real estate, with the aim of generating a stable net interest income contribution. Of this, USD 17.1m and
USD 10.6m were attributable to the US dollar and the Swiss franc portfolios, respectively, (30 September 2024:
USD 17.2m and USD 9.0m, respectively).
In addition to the aforementioned sensitivity, we calculate the six interest rate shock scenarios prescribed by FINMA.
The “Parallel up” scenario, assuming all positions were measured at fair value, was the most severe and would have
resulted in a change in EVE of negative USD 6.7bn, or 7.6%, of our tier 1 capital (30 September 2024: negative
USD 6.8bn, or 7.5%), which is well below the 15% threshold set in the BCBS supervisory outlier test for high levels
of interest rate risk in the banking book.
The immediate effect on our tier 1 capital in the “Parallel up” scenario as of 31 December 2024 would have been
a decrease of approximately USD 0.9bn, or 1.0%, (30 September 2024: USD 0.7bn, or 0.8%), reflecting the fact
that the vast majority of our banking book is accrual accounted or subject to hedge accounting. The “Parallel up”
scenario would subsequently have a positive effect on net interest income, assuming a constant balance sheet.
As the overall interest rate risk sensitivity shows a greater impact from slower asset repricing compared with faster
liabilities repricing, the “Parallel down“ scenario was the most beneficial and would have resulted in a change in
EVE of positive USD 7.2bn (30 September 2024: positive USD 7.3bn) and a small positive immediate effect on our
tier 1 capital.
›
Refer to “Interest rate risk in the banking book” in the “Risk management and control” section of the UBS Group
Annual Report 2023, available under “Annual reporting” at
ubs.com/investors
, for more information about the
management of interest rate risk in the banking book
›
Refer to “Sensitivity to interest rate movements” in the “Group performance” section of this report for more
information about the effects of increases in interest rates on the net interest income of our banking book
Interest rate risk – banking book
31.12.24
USD m
Effect on EVE
1
Effect on EVE
1
Scenarios
CHF
EUR
GBP
USD
Other
Total
Additional tier 1 (AT1) capital
instruments
Total
+1 bp
Parallel up
2
Parallel down
2
Steepener
3
Flattener
4
Short-term up
5
Short-term down
6
30.9.24
USD m
Effect on EVE
1
Effect on EVE
1
Scenarios
CHF
EUR
GBP
USD
Other
Total
Additional tier 1 (AT1) capital
instruments
Total
+1 bp
Parallel up
2
Parallel down
2
Steepener
3
Flattener
4
Short-term up
5
Short-term down
6
1 Economic value of equity. 2 Rates across all tenors move by ±150 bps for Swiss franc, ±200 bps for euro and US dollar, and ±250 bps for pound sterling. 3 Short-term rates decrease and long-term rates
increase. 4 Short-term rates increase and long-term rates decrease. 5 Short-term rates increase more than long-term rates. 6 Short-term rates decrease more than long-term rates.
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 36
Country risk
We remain watchful of a range of geopolitical developments and political changes in a number of countries, as
well as international tensions arising from the Russia–Ukraine war and global trade relations, and we continue to
monitor conflicts in the Middle East. As of 31 December 2024, our direct exposure to Israel was less than USD 0.5bn
and our direct exposure to Gulf Cooperation Council countries was less than USD 5bn, while direct exposure to
Egypt and Jordan was limited, and there was no direct exposure to Iran, Iraq, Lebanon or Syria. Our direct exposure
to Russia as of 31 December 2024 was less than USD 0.5bn, and our direct exposure to Belarus and Ukraine
remained immaterial. Potential second-order impacts, such as European energy security, continue to be monitored.
Inflation has abated to some extent in major Western economies, although there are still concerns regarding future
developments, and central banks’ monetary policies are in the spotlight. In China, stress in the property sector and
strained local government finances continue to have an adverse impact on economic growth, raising the risk of
financial instability. This combination of factors translates into a more uncertain and volatile environment, which
increases the risk of financial market disruption.
We continue to monitor potential trade policy disputes, as well as economic and political developments in addition
to those mentioned above. As of 31 December 2024, our exposure to emerging-market countries was less than
10% of our total country exposure and mainly to certain countries in Asia.
›
Refer to the “Risk management and control” section of the UBS Group Annual Report 2024, which will be available
as of 17 March 2025 under “Annual reporting” at
ubs.com/investors
, for more information
Non-financial risk
Compliance risk
Achieving fair outcomes for our clients, upholding market integrity and cultivating the highest standards of
employee conduct are of critical importance to us, therefore we maintain a conduct risk framework across our
activities, which is designed to align our standards and conduct with these objectives and to retain momentum on
fostering a strong culture.
Suitability risk, product selection, cross-divisional service offerings, quality of advice and price transparency continue
to be areas of heightened focus for UBS and for the industry as a whole. Cross-border risk (including the risk of
unintended permanent establishment) remains an area of regulatory attention for global financial institutions,
including a focus on market access, such as third-country market access into the European Economic Area. We
maintain a series of controls designed to address these risks, and we are increasing the number of automated
controls, thereby increasing overall control coverage.
Reputational risk, regulatory fragmentation related to environmental, social and governance topics, and the
elevated risk of greenwashing arising from our service offering, disclosures and commitments remain key risks for
2025.
Financial crime risk
Financial crime, including money laundering, terrorist financing, sanctions violations, fraud, bribery and corruption,
presents a major risk, as technological innovation and geopolitical developments increase the complexity of doing
business and heightened regulatory attention continues.
An effective financial crime prevention program therefore remains essential, and we continue to focus on strategic
enhancements to our global anti-money-laundering (AML), know-your-client and sanctions programs. Money
laundering and financial fraud techniques are becoming increasingly sophisticated, and geopolitical volatility makes
the sanctions landscape more complex. The extensive and continuously evolving sanctions arising from the Russia–
Ukraine war require constant attention to prevent circumvention risks, while conflicts in the Middle East may further
increase terrorist-financing risks.
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet | Risk management and control 37
Operational risk
There is an increased risk of cyber-related operational disruption to business activities at our locations and / or those
of third-party suppliers due to the Group operating a more complex set of legal entities since the acquisition of
Credit Suisse and the increasingly dynamic threat environment, which is intensified by current geopolitical factors
and evidenced by continuing high volumes of, and the increasing sophistication of, cyberattacks against financial
institutions globally and on third-party service providers.
The increasing interest in data-driven advisory processes and the use of artificial intelligence (AI) and machine
learning are opening up new questions related to the fairness of AI algorithms, data life-cycle management, data
ethics, data privacy and security, and records management.
We remain on heightened alert to respond to and mitigate elevated cyber- and information-security threats, and
we continue to invest in improving our technology infrastructure and information-security governance to improve
our defense, detection and response capabilities against attacks. In addition, we are implementing a global
framework designed to drive enhancements in operational resilience across all business divisions and relevant
jurisdictions, as well as working with the third-party service providers that are of critical importance to our
operations to assess their operational resilience against our standards.
Legal entity integration, including that of existing Credit Suisse businesses, and the closing of legacy businesses
introduce operational complexity and the risk that businesses in wind-down are not effectively managed. These
risks continue to be carefully monitored in addition to the delivery of consolidated financial and regulatory reporting
submissions.
Capital management
The disclosures in this section are provided for UBS Group AG on a consolidated basis and focus on key
developments during the reporting period and information in accordance with the Basel III framework, as applicable
to Swiss systemically relevant banks (SRBs). They should be read in conjunction with “Capital management” in the
“Capital, liquidity and funding, and balance sheet” section of the UBS Group Annual Report 2023, available under
“Annual reporting” at
ubs.com/investors
, which provides more information about our capital management
objectives, planning and activities, as well as the Swiss SRB total loss-absorbing capacity (TLAC) framework.
UBS Group AG is a holding company and conducts substantially all of its operations through UBS AG and
subsidiaries thereof. UBS Group AG and UBS AG contribute a significant portion of their respective capital to, and
provide substantial liquidity to, such subsidiaries. Many of these subsidiaries are subject to regulations requiring
compliance with minimum capital, liquidity and similar requirements.
›
Refer to the 31 December 2024 Pillar 3 Report, which will be available as of 17 March 2025 under “Pillar 3
disclosures” at
ubs.com/investors
, for more information about additional regulatory disclosures for UBS Group AG
on a consolidated basis, as well as the significant regulated subsidiaries and sub-groups of UBS Group AG
›
Refer to the UBS AG Annual Report 2024, which will be available as of 17 March 2025 under “Annual reporting” at
ubs.com/investors
, for more information about capital and other regulatory information for UBS AG consolidated,
in accordance with the Basel III framework, as applicable to Swiss SRBs
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet | Capital management 38
We are subject to the going and gone concern requirements of the Swiss Capital Adequacy Ordinance, which
include the too-big-to-fail (TBTF) provisions applicable to Swiss SRBs. The table below provides the risk-weighted
asset (RWA)- and leverage ratio denominator (LRD)-based requirements and information as of 31 December 2024.
Swiss SRB going and gone concern requirements and information
As of 31.12.24
RWA
LRD
USD m, except where indicated
in %
in %
Required going concern capital
Total going concern capital
1
1
Common equity tier 1 capital
2
of which: minimum capital
of which: buffer capital
of which: countercyclical buffer
Maximum additional tier 1 capital
of which: additional tier 1 capital
of which: additional tier 1 buffer capital
Eligible going concern capital
Total going concern capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
3
of which: high-trigger loss-absorbing additional tier 1 capital
of which: low-trigger loss-absorbing additional tier 1 capital
Required gone concern capital
Total gone concern loss-absorbing capacity
4,5,6
7
7
of which: base requirement including add-ons for market share and LRD
Eligible gone concern capital
Total gone concern loss-absorbing capacity
Total tier 2 capital
of which: non-Basel III-compliant tier 2 capital
TLAC-eligible senior unsecured debt
Total loss-absorbing capacity
Required total loss-absorbing capacity
Eligible total loss-absorbing capacity
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
1 Includes applicable add-ons of 1.44% for risk-weighted assets (RWA) and 0.50% for leverage ratio denominator (LRD). 2 Our minimum 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. 3 Includes outstanding low-trigger loss-
absorbing additional tier 1 capital instruments, which are available under the Swiss SRB framework to meet the going concern requirements until their first call date. As of their first call date, these instruments are
eligible to meet the gone concern requirements. 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). 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 should obstacles to an SIB’s resolvability be identified in future resolvability
assessments. 7 Includes applicable add-ons of 1.08% for RWA and 0.38% for LRD.
Additional capital requirements for UBS Group AG consolidated under current requirements
As a result of the acquisition of the Credit Suisse Group in 2023, the capital add-ons for market share and LRD for
UBS Group AG consolidated will increase commensurate with the higher market share and LRD of the Group after
the acquisition. We currently estimate that this will add around USD 10bn to the Group’s tier 1 capital requirement,
when fully phased in. The phase-in of the increased capital requirements will commence from the end of 2025 and
will be completed by the beginning of 2030, at the latest.
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet | Capital management 39
Total loss-absorbing capacity
The table below provides Swiss SRB going and gone concern information based on the Swiss SRB framework and
requirements that are discussed under “Capital management” in the “Capital, liquidity and funding, and balance
sheet” section of the UBS Group Annual Report 2023, available under “Annual reporting” at
ubs.com/investors
.
Swiss SRB going and gone concern information
USD m, except where indicated
31.12.24
30.9.24
31.12.23
Eligible going concern capital
Total going concern capital
Total tier 1 capital
Common equity tier 1 capital
Total loss-absorbing additional tier 1 capital
of which: high-trigger loss-absorbing additional tier 1 capital
of which: low-trigger loss-absorbing additional tier 1 capital
Eligible gone concern capital
Total gone concern loss-absorbing capacity
Total tier 2 capital
of which: non-Basel III-compliant tier 2 capital
TLAC-eligible senior unsecured debt
Total loss-absorbing capacity
Total loss-absorbing capacity
Risk-weighted assets / leverage ratio denominator
Risk-weighted assets
Leverage ratio denominator
Capital and loss-absorbing capacity ratios (%)
Going concern capital ratio
of which: common equity tier 1 capital ratio
Gone concern loss-absorbing capacity ratio
Total loss-absorbing capacity ratio
Leverage ratios (%)
Going concern leverage ratio
of which: common equity tier 1 leverage ratio
Gone concern leverage ratio
Total loss-absorbing capacity leverage ratio
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet | Capital management 40
Total loss-absorbing capacity and movement
Our TLAC decreased by USD 9.5bn to USD 185.4bn in the fourth quarter of 2024.
Going concern capital and movement
Our going concern capital decreased by USD 3.3bn to USD 87.7bn. Our common equity tier 1 (CET1) capital
decreased by USD 2.8bn to USD 71.4bn, mainly as operating profit before tax of USD 1.0bn was more than offset
by foreign currency translation losses of USD 1.8bn, current tax expenses of USD 1.0bn, dividend accruals of
USD 0.9bn and a USD 0.2bn decrease in eligible deferred tax assets on temporary differences. Share repurchases
of USD 0.3bn carried out in the fourth quarter of 2024 under our 2024 share repurchase program did not affect
our CET1 capital position, as there was an equal reduction in the capital reserve for potential share repurchases.
The remaining capital reserve for potential share repurchases was fully utilized during the fourth quarter of 2024.
Our loss-absorbing additional tier 1 (AT1) capital decreased by USD 0.4bn to USD 16.4bn, primarily reflecting
negative impacts from interest rate risk hedge, foreign currency translation and other effects.
Following the approval of a maximum amount of conversion capital by UBS Group AG’s shareholders at the 2024
Annual General Meeting, AT1 capital instruments issued from the beginning of the fourth quarter of 2023 are,
upon the occurrence of a trigger event or a viability event, subject to conversion into UBS Group AG ordinary shares
rather than a write-down. AT1 capital instruments issued prior to the fourth quarter of 2023 remain subject to a
write-down.
Gone concern loss-absorbing capacity and movement
Our total gone concern loss-absorbing capacity decreased by USD 6.2bn to USD 97.7bn and included USD 97.4bn
of TLAC-eligible senior unsecured debt instruments. The decrease of USD 6.2bn mainly reflected a USD 1.6bn
equivalent of TLAC-eligible senior unsecured debt instrument that ceased to be eligible as gone concern capital
when we issued a notice of redemption of the instrument in the fourth quarter of 2024 and a USD 0.1bn tier 2
instrument ceasing to be eligible as gone concern capital as it entered the final year before maturity, as well as
negative impacts from interest rate risk hedge, foreign currency translation and other effects. These effects were
partly offset by new issuances of TLAC-eligible senior unsecured debt instruments totaling USD 0.2bn.
›
Refer to “Bondholder information” at
for more information about the eligibility of capital and
senior unsecured debt instruments and about key features and terms and conditions of capital instruments
Loss-absorbing capacity and leverage ratios
Our CET1 capital ratio was broadly unchanged at 14.3%, as a USD 2.8bn decrease in CET1 capital was offset by a
USD 20.8bn decrease in RWA.
Our CET1 leverage ratio increased to 4.7% from 4.6%, reflecting an USD 88.9bn decrease in the LRD, partly offset
by a USD 2.8bn decrease in CET1 capital.
Our going concern capital ratio increased to 17.6% from 17.5%, reflecting the aforementioned decrease in RWA,
partly offset by a decrease in going concern capital of USD 3.3bn.
Our going concern leverage ratio increased to 5.8% from 5.7%, reflecting the aforementioned decrease in the
LRD, partly offset by a decrease in going concern capital of USD 3.3bn.
Our gone concern loss-absorbing capacity ratio decreased to 19.6% from 20.0%, due to a decrease in gone
concern loss-absorbing capacity of USD 6.2bn, partly offset by the aforementioned decrease in RWA.
Our gone concern leverage ratio decreased to 6.4% from 6.5%, due to a decrease in gone concern loss-absorbing
capacity of USD 6.2bn, partly offset by the aforementioned decrease in the LRD.
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet | Capital management 41
Swiss SRB total loss-absorbing capacity movement
USD m
Going concern capital
Swiss SRB
Common equity tier 1 capital as of 30.9.24
Operating profit / (loss) before tax
Current tax (expense) / benefit
Foreign currency translation effects, before tax
Share repurchase program
Capital reserve for potential share repurchases
Eligible deferred tax assets on temporary differences (incl. excess over threshold)
Other
1
Common equity tier 1 capital as of 31.12.24
Loss-absorbing additional tier 1 capital as of 30.9.24
Interest rate risk hedge, foreign currency translation and other effects
Loss-absorbing additional tier 1 capital as of 31.12.24
Total going concern capital as of 30.9.24
Total going concern capital as of 31.12.24
Gone concern loss-absorbing capacity
Tier 2 capital as of 30.9.24
Debt no longer eligible as gone concern loss-absorbing capacity due to residual tenor falling to below one year
Interest rate risk hedge, foreign currency translation and other effects
Tier 2 capital as of 31.12.24
TLAC-eligible unsecured debt as of 30.9.24
Issuance of TLAC-eligible senior unsecured debt
Call of TLAC-eligible senior unsecured debt
Interest rate risk hedge, foreign currency translation and other effects
TLAC-eligible unsecured debt as of 31.12.24
Total gone concern loss-absorbing capacity as of 30.9.24
Total gone concern loss-absorbing capacity as of 31.12.24
Total loss-absorbing capacity
Total loss-absorbing capacity as of 30.9.24
Total loss-absorbing capacity as of 31.12.24
1 Includes dividend accruals for 2024 (negative USD 0.9bn) and movements related to other items.
Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital
USD m
31.12.24
30.9.24
31.12.23
Total equity under IFRS Accounting Standards
Equity attributable to non-controlling interests
Defined benefit plans, net of tax
Deferred tax assets recognized for tax loss carry-forwards
Deferred tax assets for unused tax credits
Deferred tax assets on temporary differences, excess over threshold
Goodwill, net of tax
1
Intangible assets, net of tax
Compensation-related components (not recognized in net profit)
Expected losses on advanced internal ratings-based portfolio less provisions
Unrealized (gains) / losses from cash flow hedges, net of tax
Own credit related to (gains) / losses on financial liabilities measured at fair value that existed at the balance sheet date, net of tax
Own credit related to (gains) / losses on derivative financial instruments that existed at the balance sheet date
Prudential valuation adjustments
Accruals for dividends to shareholders for 2023
Capital reserve for potential share repurchases
Transitional CET1 capital PPA adjustments, net of tax
Other
2
2
Total common equity tier 1 capital
1 Includes goodwill related to significant investments in financial institutions of USD 19m as of 31 December 2024 (USD 20m as of 30 September 2024, USD 20m as of 31 December 2023) presented on the balance
sheet line Investments in associates. 2 Includes dividend accruals for 2024 and other items.
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet | Capital management 42
Additional information
Sensitivity to currency movements
Risk-weighted assets
We estimate that a 10% depreciation of the US dollar against other currencies would have increased our RWA by
USD 22bn and our CET1 capital by USD 2.4bn as of 31 December 2024 (30 September 2024: USD 24bn and
USD 2.4bn, respectively) and decreased our CET1 capital ratio by 14 basis points (30 September 2024: 18 basis
points). Conversely, a 10% appreciation of the US dollar against other currencies would have decreased our RWA
by USD 20bn and our CET1 capital by USD 2.2bn (30 September 2024: USD 21bn and USD 2.2bn, respectively)
and increased our CET1 capital ratio by 14 basis points (30 September 2024: 18 basis points).
Leverage ratio denominator
We estimate that a 10% depreciation of the US dollar against other currencies would have increased our LRD by
USD 97bn as of 31 December 2024 (30 September 2024: USD 109bn) and decreased our CET1 leverage ratio by
13 basis points (30 September 2024: 15 basis points). Conversely, a 10% appreciation of the US dollar against
other currencies would have decreased our LRD by USD 88bn (30 September 2024: USD 99bn) and increased our
CET1 leverage ratio by 14 basis points (30 September 2024: 16 basis points).
The aforementioned sensitivities do not consider foreign currency translation effects related to defined benefit plans
other than those related to the currency translation of the net equity of foreign operations.
›
Refer to “Active management of sensitivity to foreign exchange movements” under “Capital management” in the
“Capital, liquidity and funding, and balance sheet” section of the UBS Group Annual Report 2023, available under
“Annual reporting” at
ubs.com/investors
, for more information
Risk-weighted assets
During the fourth quarter of 2024, RWA decreased by USD 20.8bn to USD 498.5bn, driven by a USD 14.6bn
decrease in currency effects, as well as a USD 6.6bn decrease resulting from asset size and other movements, partly
offset by an increase of USD 0.4bn resulting from model updates and methodology changes.
Movement in risk-weighted assets, by key driver
USD bn
RWA as of
30.9.24
Currency
effects
Model updates
and
methodology
changes
Asset size and
other
1
RWA as of
31.12.24
Credit and counterparty credit risk
2
Non-counterparty-related risk
3
Market risk
Operational risk
Total
1 Includes the Pillar 3 categories “Asset size”, “Credit quality of counterparties”, “Acquisitions and disposals” and “Other”. For more information, refer to the 31 December 2024 Pillar 3 Report, which will be
available as of 17 March 2025 under “Pillar 3 disclosures” at ubs.com/investors. 2 Includes settlement risk, credit valuation adjustments, equity and investments in funds exposures in the banking book, and
securitization exposures in the banking book. 3 Non-counterparty-related risk includes deferred tax assets recognized for temporary differences, property, equipment, software and other items.
Credit and counterparty credit risk
Credit and counterparty credit risk RWA decreased by USD 21.9bn to USD 292.2bn as of 31 December 2024,
reflecting a USD 13.6bn decrease in currency effects, as well as an USD 8.6bn decrease in asset size and other
movements.
Asset size and other movements by business division and Group Items:
–
Investment Bank RWA decreased by USD 4.0bn, mainly due to lower RWA from loans and loan commitments.
–
Non-core and Legacy RWA decreased by USD 2.7bn, mainly driven by our actions to actively unwind the portfolio,
in addition to the natural roll-off.
–
Personal & Corporate Banking RWA decreased by USD 1.8bn, mainly driven by negative net new loans.
–
Group Items RWA decreased by USD 0.2bn.
–
Asset Management RWA increased by USD 0.2bn.
–
Global Wealth Management RWA were unchanged.
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet | Capital management 43
Model updates and methodology changes resulted in an RWA increase of USD 0.3bn. Increases related to a
USD 1.2bn regulatory add-on for derivatives and USD 0.8bn from the harmonization of models following the
migration of Credit Suisse portfolios to UBS models, as well as various smaller model updates amounting to
USD 0.6bn, were largely offset by USD 2.3bn resulting from the phase-out of certain multipliers following
improvements to the models.
›
Refer to the 31 December 2024 Pillar 3 Report, which will be available as of 17 March 2025 under “Pillar 3
disclosures” at
ubs.com/investors
, for more information
›
Refer to “Credit risk” in the “Risk management and control” section of this report for more information
Market risk
Market risk RWA increased by USD 2.2bn to USD 27.2bn in the fourth quarter of 2024, driven by an increase of
USD 2.1bn from asset size and other movements in the Investment Bank’s Global Markets business, partially offset
by updates from the monthly risks-not-in-VaR assessment and de-risking within Non-core and Legacy.
›
Refer to the 31 December 2024 Pillar 3 Report, which will be available as of 17 March 2025 under “Pillar 3
disclosures” at
›
Refer to “Market risk” in the “Risk management and control” section of this report for more information
Operational risk
Operational risk RWA were unchanged at USD 145.4bn.
›
Refer to “Non-financial risk” in the “Risk management and control” section of the UBS Group Annual Report 2023,
available under “Annual reporting” at
ubs.com/investors
, for information about the advanced measurement
approach (AMA) which has been used to measure Group operational risk exposure and calculate operational risk
regulatory capital
›
Refer to “Provisions and contingent liabilities” in the “Consolidated financial information” section of this report for
more information about historical loss cases considered in the AMA
Outlook
The adoption of the final Basel III standards in January 2025 led to a USD 1bn increase in the UBS Group’s RWA,
resulting in a minimal impact on the CET1 capital ratio. The USD 1bn increase was primarily driven by a USD 7bn
increase in market risk RWA and a USD 3bn increase in credit valuation adjustments-related RWA resulting from
the implementation of the Fundamental Review of the Trading Book (the FRTB) framework, largely offset by a
USD 7bn reduction in operational risk RWA and a USD 1bn reduction in credit risk RWA. These changes do not take
into account the impact of the output floor. The output floor, which is being phased in until 2028, is currently not
binding for the UBS Group.
In addition to the impact of the final Basel III standards, we expect that model updates will result in an RWA increase
of around USD 3bn in 2025, primarily as a result of the migration of Credit Suisse portfolios to UBS models. The
extent and timing of RWA changes may vary as model updates are completed and receive regulatory approval,
along with changes in the composition of the relevant portfolios.
Furthermore, we expect exposures in Non-core and Legacy to reduce as a result of maturities and active unwinding
of positions, mitigating the impact from the FRTB.
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet | Capital management 44
Risk-weighted assets, by business division and Group Items
USD bn
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Manage-
ment
Investment
Bank
Non-core and
Legacy
Group
Items
Total
RWA
31.12.24
Credit and counterparty credit risk
1
Non-counterparty-related risk
2
Market risk
Operational risk
Total
30.9.24
Credit and counterparty credit risk
1
Non-counterparty-related risk
2
Market risk
Operational risk
Total
31.12.24 vs 30.9.24
Credit and counterparty credit risk
1
Non-counterparty-related risk
2
Market risk
Operational risk
Total
1 Includes settlement risk, credit valuation adjustments, equity and investments in funds exposures in the banking book, and securitization exposures in the banking book. 2 Non-counterparty-related risk includes
deferred tax assets recognized for temporary differences (31 December 2024: USD 18.1bn; 30 September 2024: USD 18.0bn), as well as property, equipment, software and other items (31 December 2024: USD 15.7bn;
30 September 2024: USD 16.8bn).
Leverage ratio denominator
During the fourth quarter of 2024, the LRD decreased by USD 88.9bn to USD 1,519.5bn, driven by currency effects
of USD 68.9bn, as well as asset size and other movements of USD 20.0bn.
Movement in leverage ratio denominator, by key driver
USD bn
LRD as of
30.9.24
Currency
effects
Asset size and
other
LRD as of
31.12.24
On-balance sheet exposures (excluding derivatives and securities financing transactions)
1
Derivatives
1
Securities financing transactions
Off-balance sheet items
Deduction items
Total
1 Reports prior to this fourth quarter of 2024 report had included certain exposures related to derivative cash collateral in On-balance exposures. From the fourth quarter of 2024 onward, we have refined the approach
to include these exposures in derivatives, which had no bottom-line impact on total LRD. The comparative period has not been restated.
The LRD movements described below exclude currency effects.
On-balance sheet exposures (excluding derivatives and securities financing transactions) decreased by USD 34.2bn,
mainly due to decreases in cash and balances at central banks, as well as lending balances due to negative net new
loans in Personal & Corporate Banking. There were also decreases in other financial assets measured at fair value,
reflecting disposals of high-quality liquid asset portfolio securities and of trading assets due to decreases in the
inventory held in the Investment Bank to hedge client positions, as well as Non-core and Legacy unwinding activities.
Derivative exposures increased by USD 3.6bn, mainly due to market-driven movements on foreign currency
contracts in the Investment Bank, partly offset by lower trading volumes, mainly in Non-core and Legacy.
Securities financing transactions increased by USD 11.3bn, mainly reflecting higher cash reinvestment in Group
Treasury.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about balance sheet
movements
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet | Capital management 45
Outlook
The adoption of the final Basel III standards in January 2025 led to a low single-digit percentage increase in the UBS
Group’s LRD, reducing the CET1 leverage ratio by around 10 basis points.
Leverage ratio denominator, by business division and Group Items
USD bn
Global Wealth
Management
Personal &
Corporate
Banking
Asset
Management
Investment
Bank
Non-core and
Legacy
Group Items
Total
31.12.24
On-balance sheet exposures
1
Derivatives
1
Securities financing transactions
Off-balance sheet items
Items deducted from Swiss SRB tier 1 capital
Total
30.9.24
On-balance sheet exposures
1
Derivatives
1
Securities financing transactions
Off-balance sheet items
Items deducted from Swiss SRB tier 1 capital
Total
31.12.24 vs 30.9.24
On-balance sheet exposures
Derivatives
Securities financing transactions
Off-balance sheet items
Items deducted from Swiss SRB tier 1 capital
Total
1 Reports prior to this fourth quarter of 2024 report had included certain exposures related to derivative cash collateral in On-balance exposures. From the fourth quarter of 2024 onward, we have refined the approach
to include these exposures in derivatives, which had no bottom-line impact on total LRD. The comparative period has not been restated.
Equity attribution
Under our equity attribution framework, tangible equity is attributed based on equally weighted average RWA and
average LRD, which both include resource allocations from our Group functions to the business divisions. Average
RWA and LRD are converted to CET1 capital equivalents using target capital ratios. If the attributed tangible equity
calculated under the weighted-driver approach is less than the CET1 capital equivalent of risk-based capital (RBC)
for any business division, the CET1 capital equivalent of RBC is used as a floor for that business division.
In addition to tangible equity, we allocate equity to the business divisions to support goodwill and intangible assets.
We also allocate to the business divisions attributed equity related to CET1 capital deduction items that are
attributable to divisional activities, such as compensation-related components or expected losses on the advanced
internal ratings-based portfolio less provisions. We attribute all remaining capital deduction items to Group Items.
Those primarily include equity related to deferred tax assets, accruals for shareholder returns, and unrealized
gains / losses from cash flow hedges.
›
Refer to the “Balance sheet and off-balance sheet” section of this report for more information about movements in
equity attributable to shareholders
Average attributed equity
For the quarter ended
For the year ended
USD bn
31.12.24
30.9.24
31.12.23
1
31.12.24
31.12.23
1
Global Wealth Management
Personal & Corporate Banking
Asset Management
Investment Bank
Non-core and Legacy
Group Items
2
Average equity attributed to business divisions and Group Items
1 Comparative figures have been restated to reflect the changes to the equity attribution framework. Refer to the “Equity attribution” section of the UBS Group first quarter 2024 report, available under “Quarterly
reporting” at ubs.com/investors, for more information. 2 Includes average attributed equity related to capital deduction items for deferred tax assets, accruals for shareholder returns and unrealized gains / losses
from cash flow hedges.
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet | Liquidity and funding management 46
Liquidity and funding management
Strategy, objectives and governance
This section provides liquidity and funding management information and should be read in conjunction with
“Liquidity and funding management” in the “Capital, liquidity and funding, and balance sheet” section of the UBS
Group Annual Report 2023, available under “Annual reporting” at
ubs.com/investors
, which provides more
information about the Group’s strategy, objectives and governance in connection with liquidity and funding
management.
Liquidity coverage ratio
The quarterly average liquidity coverage ratio (the LCR) of the UBS Group decreased 10.8 percentage points to
188.4%, remaining above the prudential requirement communicated by the Swiss Financial Market Supervisory
Authority (FINMA). The movement in the quarterly average LCR was primarily driven by a decrease in high-quality
liquid assets (HQLA) of USD 29.1bn to USD 331.5bn, mainly reflecting lower cash available, driven by a decrease in
customer deposits, lower debt issued measured at amortized cost and lower short-term borrowings, as well as
funding of trading assets. The aforementioned decrease in HQLA was partly offset by a decrease in net cash
outflows of USD 5.0bn to USD 176.0bn, reflecting lower net outflows from derivatives and debt issued measured
at amortized cost, partly offset by higher outflows from customer deposits.
›
Refer to the
31 December 2024 Pillar 3 Report, which will be available as of 17 March 2025 under “Pillar 3
disclosures” at
ubs.com/investors
, for more information about the LCR
Liquidity coverage ratio
USD bn, except where indicated
Average 4Q24
1
Average 3Q24
1
High-quality liquid assets
Net cash outflows
2
Liquidity coverage ratio (%)
3
1 Calculated based on an average of 64 data points in the fourth quarter of 2024 and 65 data points in the third quarter of 2024. 2 Represents the net cash outflows expected over a stress period of 30 calendar
days. 3 Calculated after the application of haircuts and inflow and outflow rates, as well as, where applicable, caps on Level 2 assets and cash inflows.
Net stable funding ratio
As of 31 December 2024, the net stable funding ratio (the NSFR) of the UBS Group decreased 1.3 percentage points
to 125.5%, remaining above the prudential requirement communicated by FINMA.
Available stable funding decreased by USD 47.5bn to USD 856.8bn, mainly driven by lower customer deposits,
largely driven by currency effects, lower regulatory capital and lower debt issued.
Required stable funding decreased by USD 30.3bn to USD 682.5bn, mainly reflecting lower lending assets, which
were also largely driven by currency effects.
›
Refer to the 31 December 2024 Pillar 3 Report, which will be available as of 17 March 2025 under “Pillar 3
disclosures” at
ubs.com/investors
, for more information about the NSFR
Net stable funding ratio
USD bn, except where indicated
31.12.24
30.9.24
Available stable funding
Required stable funding
Net stable funding ratio (%)
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet | Balance sheet and off-balance sheet 47
Balance sheet and off-balance sheet
This section provides balance sheet and off-balance sheet information and should be read in conjunction with
“Balance sheet and off-balance sheet” in the “Capital, liquidity and funding, and balance sheet” section of the
UBS Group Annual Report 2023, available under “Annual reporting” at
ubs.com/investors
, which provides more
information about the balance sheet and off-balance sheet positions.
Balances disclosed in this report represent quarter-end positions, unless indicated otherwise. Intra-quarter balances
fluctuate in the ordinary course of business and may differ from quarter-end positions.
Balance sheet assets (31 December 2024 vs 30 September 2024)
Total assets were USD 1,565.0bn as of 31 December 2024, a decrease of USD 58.9bn compared with 30 September
2024, largely reflecting currency effects as a result of the appreciation of the US dollar.
Lending assets decreased by USD 38.6bn, primarily reflecting currency effects of approximately USD 31.3bn and
negative net new loans in Personal & Corporate Banking. Other financial assets measured at fair value decreased
by USD 33.9bn, mainly reflecting disposals of high-quality liquid asset (HQLA) portfolio securities. Cash and balances
at central banks decreased by USD 20.0bn, mainly due to net investment in securities financing transactions at
amortized cost, currency effects and lower brokerage payables, partly offset by inflows from the disposal of HQLA
portfolio securities. Trading assets decreased by USD 12.9bn, primarily driven by a decrease in inventory held in the
Investment Bank to hedge client positions, as well as Non-core and Legacy unwinding activities.
These decreases were partly offset by a USD 26.2bn increase in securities financing transactions at amortized cost,
mainly reflecting higher cash reinvestment in Group Treasury. Derivatives and cash collateral receivables on derivative
instruments increased by USD 23.2bn, predominantly in Derivatives & Solutions in the Investment Bank, primarily
reflecting market-driven increases in foreign currency contracts.
Assets
As of
% change from
USD bn
31.12.24
30.9.24
30.9.24
Cash and balances at central banks
Lending
1
Securities financing transactions at amortized cost
Trading assets
Derivatives and cash collateral receivables on derivative instruments
Brokerage receivables
Other financial assets measured at amortized cost
Other financial assets measured at fair value
2
Non-financial assets
Total assets
1 Consists of Loans and advances to customers and Amounts due from banks. 2 Consists of Financial assets at fair value not held for trading and Financial assets measured at fair value through other comprehensive
income.
Balance sheet liabilities (31 December 2024 vs 30 September 2024)
Total liabilities were USD 1,479.5bn as of 31 December 2024, a decrease of USD 56.9bn compared with
30 September 2024, largely reflecting currency effects as a result of the appreciation of the US dollar.
Customer deposits decreased by USD 30.2bn, predominantly driven by currency effects. Debt issued designated at
fair value and long-term debt issued measured at amortized cost decreased by USD 13.9bn, mainly driven by
currency effects and net redemptions. Short-term borrowings decreased by USD 8.0bn, mainly driven by lower
amounts due to banks as well as net maturities of commercial paper and certificates of deposit, mainly in Group
Treasury. Other financial liabilities designated at fair value decreased by USD 6.6bn, mainly driven by a decrease in
securities financing transactions.
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet | Balance sheet and off-balance sheet 48
These decreases were partly offset by an USD 8.0bn increase in Derivatives and cash collateral payables on derivative
instruments, mainly reflecting the same drivers as on the asset side.
›
Refer to “Bondholder information” at
for more information about capital and senior debt
instruments
›
Refer to the “Consolidated financial information” section of this report for more information
Liabilities and equity
As of
% change from
USD bn
31.12.24
30.9.24
30.9.24
Short-term borrowings
1,2
Securities financing transactions at amortized cost
Customer deposits
Debt issued designated at fair value and long-term debt issued measured at amortized cost
2
Trading liabilities
Derivatives and cash collateral payables on derivative instruments
Brokerage payables
Other financial liabilities measured at amortized cost
Other financial liabilities designated at fair value
Non-financial liabilities
Total liabilities
Share capital
Share premium
Treasury shares
Retained earnings
Other comprehensive income
3
Total equity attributable to shareholders
Equity attributable to non-controlling interests
Total equity
Total liabilities and equity
1 Consists of short-term debt issued measured at amortized cost and amounts due to banks, which includes amounts due to central banks. 2 The classification of debt issued measured at amortized cost into short-
term and long-term is based on original contractual maturity and therefore long-term debt also includes debt with a remaining time to maturity of less than one year. This classification does not consider any early
redemption features. 3 Excludes other comprehensive income related to defined benefit plans and own credit, which is recorded directly in Retained earnings.
Equity (31 December 2024 vs 30 September 2024)
Equity attributable to shareholders decreased by USD 1,946m to USD 85,079m as of 31 December 2024.
The net decrease of USD 1,946m was mainly driven by negative total comprehensive income attributable to
shareholders of USD 1,851m, reflecting a net profit of USD 770m and negative other comprehensive income (OCI)
of USD 2,622m. OCI mainly included negative OCI related to foreign currency translation of USD 1,835m and
negative cash flow hedge OCI of USD 785m. In addition, net treasury share activity reduced equity by USD 318m,
predominantly due to the repurchasing of USD 300m of shares under our 2024 share repurchase program.
›
Refer to the “Group performance” and “Consolidated financial information” sections of this report for more
information
›
Refer to “Reconciliation of equity under IFRS Accounting Standards to Swiss SRB common equity tier 1 capital” in
the “Capital management” section of this report for more information about the effects of OCI on common equity
tier 1 capital
›
Refer to the “Share information and earnings per share” section of this report for more information about our
share repurchase programs
Off-balance sheet (31 December 2024 vs 30 September 2024)
Committed unconditionally revocable credit lines decreased by USD 7.4bn, driven by currency effects. Forward
starting reverse repurchase and securities borrowing agreements increased by USD 8.8bn, reflecting an increase in
levels of business division activity in short-dated securities financing transactions.
Off-balance sheet
As of
% change from
USD bn
31.12.24
30.9.24
30.9.24
Guarantees
1,2
Irrevocable loan commitments
1
Committed unconditionally revocable credit lines
Forward starting reverse repurchase and securities borrowing agreements
1 Guarantees and irrevocable loan commitments are shown net of sub-participations. 2 Includes guarantees measured at fair value through profit or loss.
UBS Group fourth quarter 2024 report |
Risk, capital, liquidity and funding, and balance sheet | Share information and earnings per share 49
Share information and earnings per share
UBS Group AG shares are listed on the SIX Swiss Exchange (SIX). They are also listed on the New York Stock
Exchange (the NYSE) as global registered shares. Each share has a nominal value of USD 0.10. Shares issued were
unchanged in the fourth quarter of 2024 compared with the third quarter of 2024.
We held 287m shares as of 31 December 2024, of which 153m shares had been acquired under our 2022 and
2024 share repurchase programs for cancellation purposes. The remaining 134m shares are primarily held to hedge
our share delivery obligations related to employee share-based compensation and participation plans.
Treasury shares held increased by 11m shares in the fourth quarter of 2024. This mainly reflected 9.5m shares
repurchased under our 2024 program.
Shares acquired under our 2024 program totaled 33m as of 31 December 2024 for a total acquisition cost of
USD 1,000m (CHF 871m). We plan to repurchase USD 1bn of shares in the first half of 2025. We aim to repurchase
up to an additional USD 2bn of shares in the second half of 2025 and are maintaining our ambition for share
repurchases in 2026 to exceed full year 2022 levels. Our share repurchase levels will be subject to maintaining our
CET1 capital ratio target of around 14%, achieving our financial targets and the absence of material and immediate
changes to the current capital regime in Switzerland.
Shares acquired under our 2022 program totaled 121m as of 31 December 2024 for a total acquisition cost of
USD 2,277m (CHF 2,138m). This program concluded on 28 March 2024, and the 121m shares repurchased under
this program will be canceled by means of a capital reduction, subject to approval by the shareholders at a future
Annual General Meeting.
›
Refer to the “Equity, CET1 capital and returns” table in the “Group performance” section of this report for more
information about equity attributable to shareholders and tangible equity attributable to shareholders
As of or for the quarter ended
As of or for the year ended
31.12.24
30.9.24
31.12.23
1
31.12.24
31.12.23
1
Basic and diluted earnings (USD m)
Net profit / (loss) attributable to shareholders for basic EPS
less: (profit) / loss on own equity derivative contracts
Net profit / (loss) attributable to shareholders for diluted EPS
.
Weighted average shares outstanding
Weighted average shares outstanding for basic EPS
2
Effect of dilutive potential shares resulting from notional employee shares, in-the-money
options and warrants outstanding
3
4
Weighted average shares outstanding for diluted EPS
.
Earnings per share (USD)
Basic
Diluted
.
Shares outstanding and potentially dilutive instruments
Shares issued
Treasury shares
5
of which: related to the 2022 share repurchase program
of which: related to the 2024 share repurchase program
Shares outstanding
Potentially dilutive instruments
6
4
.
Other key figures
Total book value per share (USD)
Tangible book value per share (USD)
Share price (USD)
7
Market capitalization (USD m)
8
1 Comparative-period information has been revised. Refer to “Note 2 Accounting for the acquisition of the Credit Suisse Group” in the “Consolidated financial statements” section of the UBS Group third quarter
2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information. 2 The weighted average shares outstanding for basic earnings per share (EPS) are calculated by taking the number of
shares at the beginning of the period, adjusted by the number of shares acquired or issued during the period, multiplied by a time-weighted factor for the period outstanding. As a result, balances are affected by the
timing of acquisitions and issuances during the period. 3 The weighted average number of shares for notional employee awards with performance conditions reflects all potentially dilutive shares that are expected
to vest under the terms of the awards. 4 Due to the net loss in the fourth quarter of 2023, 155,065,831 weighted average potential shares from unvested notional share awards were not included in the calculation
of diluted EPS as they were not dilutive for the quarter ended 31 December 2023. Such shares are only taken into account for the diluted EPS calculation when their conversion to ordinary shares would decrease
earnings per share or increase the loss per share, in accordance with IAS 33, Earnings per Share. 5 Based on a settlement date view. 6 Reflects potential shares that could dilute basic EPS in the future but were
not dilutive for any of the periods presented. Mainly includes equity-based awards subject to absolute and relative performance conditions and equity derivative contracts. For the quarter ended 31 December 2023,
it also includes 155,065,831 weighted average potential shares from unvested notional share awards that were not included in the calculation of diluted EPS as they were not dilutive. 7 Represents the share price
as listed on the SIX Swiss Exchange, translated to US dollars using the closing exchange rate as of the respective date. 8 The calculation of market capitalization reflects total shares issued multiplied by the share
price at the end of the period.
Ticker symbols UBS Group AG
Security identification codes
Trading exchange
SIX / NYSE
Bloomberg
Reuters
ISIN
CH0244767585
SIX Swiss Exchange
UBSG
UBSG SW
UBSG.S
Valoren
24 476 758
New York Stock Exchange
UBS
UBS UN
UBS.N
CUSIP
CINS H42097 10 7
UBS Group fourth quarter 2024 report |
Consolidated financial information 50
Consolidated financial
information
Unaudited
Information in this section is presented for UBS Group AG and its subsidiaries (together, the Group) on a
consolidated basis unless otherwise specified and is presented in US dollars. In preparing this financial information,
the same accounting policies and methods of computation have been applied as in the UBS Group AG consolidated
annual Financial Statements for the period ended 31 December 2023, except for the changes described in “Note 1
Basis of accounting” in the “Consolidated financial statements” section of the first, second and third quarter 2024
reports. The financial information presented is unaudited and does not constitute an interim financial report
prepared in accordance with IAS 34,
Interim Financial Reporting
. The UBS Group AG Annual Report 2024, which
will be published on 17 March 2025, will incorporate the full financial statements prepared in accordance with IFRS
Accounting Standards for the 2024 financial year.
UBS Group fourth quarter 2024 report |
Consolidated financial information | UBS Group AG interim consolidated financial information (unaudited) 51
UBS Group AG interim consolidated financial
information (unaudited)
Income statement
For the quarter ended
For the year ended
USD m
31.12.24
30.9.24
31.12.23
31.12.24
31.12.23
1
Interest income from financial instruments measured at amortized cost and fair value through
other comprehensive income
Interest expense from financial instruments measured at amortized cost
Net interest income from financial instruments measured at fair value through profit or loss and other
Net interest income
Other net income from financial instruments measured at fair value through profit or loss
Fee and commission income
Fee and commission expense
Net fee and commission income
Other income
Total revenues
Negative goodwill
Credit loss expense / (release)
Personnel expenses
General and administrative expenses
Depreciation, amortization and impairment of non-financial assets
Operating expenses
Operating profit / (loss) before tax
Tax expense / (benefit)
Net profit / (loss)
Net profit / (loss) attributable to non-controlling interests
Net profit / (loss) attributable to shareholders
Earnings per share (USD)
Basic
Diluted
1 Comparative-period information as previously reported in the 2023 Annual Report has been revised to reflect measurement period adjustments impacting negative goodwill. Refer to Note 2 in the “Consolidated
financial statements” section of the UBS Group third quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant adjustments.
UBS Group fourth quarter 2024 report |
Consolidated financial information | UBS Group AG interim consolidated financial information (unaudited) 52
Statement of comprehensive income
For the quarter ended
For the year ended
USD m
31.12.24
30.9.24
31.12.23
31.12.24
31.12.23
1
Comprehensive income attributable to shareholders
2
Net profit / (loss)
Other comprehensive income that may be reclassified to the income statement
Foreign currency translation
Foreign currency translation movements related to net assets of foreign operations, before tax
Effective portion of changes in fair value of hedging instruments designated as net investment hedges, before tax
Foreign currency translation differences on foreign operations reclassified to the income statement
Effective portion of changes in fair value of hedging instruments designated as net investment hedges reclassified to
the income statement
Income tax relating to foreign currency translations, including the effect of net investment hedges
Subtotal foreign currency translation, net of tax
Financial assets measured at fair value through other comprehensive income
Net unrealized gains / (losses), before tax
Net realized (gains) / losses reclassified to the income statement from equity
Income tax relating to net unrealized gains / (losses)
Subtotal financial assets measured at fair value through other comprehensive income, net of tax
Cash flow hedges of interest rate risk
Effective portion of changes in fair value of derivative instruments designated as cash flow hedges, before tax
Net (gains) / losses reclassified to the income statement from equity
Income tax relating to cash flow hedges
Subtotal cash flow hedges, net of tax
Cost of hedging
Cost of hedging, before tax
Income tax relating to cost of hedging
Subtotal cost of hedging, net of tax
Total other comprehensive income that may be reclassified to the income statement, net of tax
Other comprehensive income that will not be reclassified to the income statement
Defined benefit plans
Gains / (losses) on defined benefit plans, before tax
Income tax relating to defined benefit plans
Subtotal defined benefit plans, net of tax
Own credit on financial liabilities designated at fair value
Gains / (losses) from own credit on financial liabilities designated at fair value, before tax
Income tax relating to own credit on financial liabilities designated at fair value
Subtotal own credit on financial liabilities designated at fair value, net of tax
Total other comprehensive income that will not be reclassified to the income statement, net of tax
Total other comprehensive income
Total comprehensive income attributable to shareholders
Comprehensive income attributable to non-controlling interests
Net profit / (loss)
Total other comprehensive income that will not be reclassified to the income statement, net of tax
Total comprehensive income attributable to non-controlling interests
Total comprehensive income
Net profit / (loss)
Other comprehensive income
of which: other comprehensive income that may be reclassified to the income statement
of which: other comprehensive income that will not be reclassified to the income statement
Total comprehensive income
1 Comparative-period information as previously reported in the 2023 Annual Report has been revised to reflect measurement period adjustments impacting negative goodwill. Refer to Note 2 in the “Consolidated
financial statements” section of the UBS Group third quarter 2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information about the relevant adjustments. 2 Refer to the “Group
performance” section of this report for more information.
UBS Group fourth quarter 2024 report |
Consolidated financial information | UBS Group AG interim consolidated financial information (unaudited) 53
Balance sheet
USD m
31.12.24
30.9.24
31.12.23
1
Assets
Cash and balances at central banks
Amounts due from banks
Receivables from securities financing transactions measured at amortized cost
Cash collateral receivables on derivative instruments
Loans and advances to customers
Other financial assets measured at amortized cost
Total financial assets measured at amortized cost
Financial assets at fair value held for trading
Derivative financial instruments
Brokerage receivables
Financial assets at fair value not held for trading
Total financial assets measured at fair value through profit or loss
Financial assets measured at fair value through other comprehensive income
Investments in associates
Property, equipment and software
Goodwill and intangible assets
Deferred tax assets
Other non-financial assets
Total assets
Liabilities
Amounts due to banks
Payables from securities financing transactions measured at amortized cost
Cash collateral payables on derivative instruments
Customer deposits
Debt issued measured at amortized cost
Other financial liabilities measured at amortized cost
Total financial liabilities measured at amortized cost
Financial liabilities at fair value held for trading
Derivative financial instruments
Brokerage payables designated at fair value
Debt issued designated at fair value
Other financial liabilities designated at fair value
Total financial liabilities measured at fair value through profit or loss
Provisions and contingent liabilities
Other non-financial liabilities
Total liabilities
Equity
Share capital
Share premium
Treasury shares
Retained earnings
Other comprehensive income recognized directly in equity, net of tax
Equity attributable to shareholders
Equity attributable to non-controlling interests
Total equity
Total liabilities and equity
1 Comparative-period information has been revised. Refer to Note 2 in the “Consolidated financial statements” section of the UBS Group third quarter 2024 report, available under “Quarterly reporting” at
ubs.com/investors, for more information.
UBS Group fourth quarter 2024 report |
Consolidated financial information | UBS Group AG interim consolidated financial information (unaudited) 54
Provisions and contingent liabilities
a) Provisions and contingent liabilities
The table below presents an overview of total provisions and contingent liabilities.
USD m
31.12.24
30.9.24
31.12.23
1
Provisions related to expected credit losses (IFRS 9,
Financial Instruments
)
Provisions related to Credit Suisse loan commitments (IFRS 3,
Business Combinations
)
Provisions related to litigation, regulatory and similar matters (IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
)
Acquisition-related contingent liabilities related to litigation, regulatory and similar matters (IFRS 3,
Business Combinations
)
Restructuring, real-estate and other provisions (IAS 37,
Provisions, Contingent Liabilities and Contingent Assets
)
Total provisions and contingent liabilities
1 Comparative-period information has been revised. Refer to Note 2 in the “Consolidated financial statements” section of the UBS Group third quarter 2024 report, available under “Quarterly reporting” at
ubs.com/investors, for more information.
The table below presents additional information for provisions under IAS 37,
Provisions, Contingent Liabilities and
Contingent Assets
.
USD m
Litigation,
regulatory and
similar matters
1
Restructuring
2
Real estate
3
Other
4
Total
Balance as of 31 December 2023
Balance as of 30 September 2024
Increase in provisions recognized in the income statement
Release of provisions recognized in the income statement
Reclassifications
5
Provisions used in conformity with designated purpose
Foreign currency translation and other movements
Balance as of 31 December 2024
1 Consists of provisions for losses resulting from legal, liability and compliance risks. 2 Includes USD 383m of provisions for onerous contracts related to real estate as of 31 December 2024 (30 September 2024:
USD 482m; 31 December 2023: USD 448m), USD 334m of personnel-related restructuring provisions as of 31 December 2024 (30 September 2024: USD 322m; 31 December 2023: USD 294m) and onerous contracts
related to technology. 3 Mainly includes provisions for reinstatement costs with respect to leased properties. 4 Mainly includes provisions related to employee benefits and operational risks. 5 Mainly includes
reclassifications from IFRS 3 contingent liabilities to IAS 37 provisions.
Information about provisions and contingent liabilities in respect of litigation, regulatory and similar matters, as a
class, is included in part b). There are no material contingent liabilities associated with the other classes of provisions.
b) Litigation, regulatory and similar matters
The Group operates in a legal and regulatory environment that exposes it to significant litigation and similar risks
arising from disputes and regulatory proceedings. As a result, UBS (which for purposes of this Note may refer to
UBS Group AG and / or one or more of its subsidiaries, as applicable) is involved in various disputes and legal
proceedings, including litigation, arbitration, and regulatory and criminal investigations.
Such matters are subject to many uncertainties, and the outcome and the timing of resolution are often difficult to
predict, particularly in the earlier stages of a case. There are also situations where the Group may enter into a
settlement agreement. This may occur in order to avoid the expense, management distraction or reputational
implications of continuing to contest liability, even for those matters for which the Group believes it should be
exonerated. The uncertainties inherent in all such matters affect the amount and timing of any potential outflows
for both matters with respect to which provisions have been established and other contingent liabilities. The Group
makes provisions for such matters brought against it when, in the opinion of management after seeking legal
advice, it is more likely than not that the Group has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be required, and the amount can be reliably estimated. Where
these factors are otherwise satisfied, a provision may be established for claims that have not yet been asserted
against the Group, but are nevertheless expected to be, based on the Group’s experience with similar asserted
claims. If any of those conditions is not met, such matters result in contingent liabilities. If the amount of an
obligation cannot be reliably estimated, a liability exists that is not recognized even if an outflow of resources is
probable. Accordingly, no provision is established even if the potential outflow of resources with respect to such
matters could be significant. Developments relating to a matter that occur after the relevant reporting period, but
prior to the issuance of financial statements, which affect management’s assessment of the provision for such
matter (because, for example, the developments provide evidence of conditions that existed at the end of the
reporting period), are adjusting events after the reporting period under IAS 10 and must be recognized in the
financial statements for the reporting period.
UBS Group fourth quarter 2024 report |
Consolidated financial information | UBS Group AG interim consolidated financial information (unaudited) 55
Provisions and contingent liabilities (continued)
Specific litigation, regulatory and other matters are described below, including all such matters that management
considers to be material and others that management believes to be of significance to the Group due to potential
financial, reputational and other effects. The amount of damages claimed, the size of a transaction or other
information is provided where available and appropriate in order to assist users in considering the magnitude of
potential exposures.
In the case of certain matters below, we state that we have established a provision, and for the other matters, we
make no such statement. When we make this statement and we expect disclosure of the amount of a provision to
prejudice seriously our position with other parties in the matter because it would reveal what UBS believes to be
the probable and reliably estimable outflow, we do not disclose that amount. In some cases we are subject to
confidentiality obligations that preclude such disclosure. With respect to the matters for which we do not state
whether we have established a provision, either: (a) we have not established a provision; or (b) we have established
a provision but expect disclosure of that fact to prejudice seriously our position with other parties in the matter
because it would reveal the fact that UBS believes an outflow of resources to be probable and reliably estimable.
With respect to certain litigation, regulatory and similar matters for which we have established provisions, we are
able to estimate the expected timing of outflows. However, the aggregate amount of the expected outflows for
those matters for which we are able to estimate expected timing is immaterial relative to our current and expected
levels of liquidity over the relevant time periods.
The aggregate amount provisioned for litigation, regulatory and similar matters as a class is disclosed in the
“Provisions” table in part a) above. UBS provides below an estimate of the aggregate liability for its litigation,
regulatory and similar matters as a class of contingent liabilities. Estimates of contingent liabilities are inherently
imprecise and uncertain as these estimates require UBS to make speculative legal assessments as to claims and
proceedings that involve unique fact patterns or novel legal theories, that have not yet been initiated or are at early
stages of adjudication, or as to which alleged damages have not been quantified by the claimants. Taking into
account these uncertainties and the other factors described herein, UBS estimates the future losses that could arise
from litigation, regulatory and similar matters disclosed below for which an estimate is possible, that are not covered
by existing provisions (including acquisition-related contingent liabilities established under IFRS 3 in connection with
the acquisition of Credit Suisse), are in the range of USD 0bn to USD 1.9bn.
Litigation, regulatory and similar matters may also result in non-monetary penalties and consequences. A guilty plea
to, or conviction of, a crime could have material consequences for UBS. Resolution of regulatory proceedings may
require UBS to obtain waivers of regulatory disqualifications to maintain certain operations, may entitle regulatory
authorities to limit, suspend or terminate licenses and regulatory authorizations, and may permit financial market
utilities to limit, suspend or terminate UBS’s participation in such utilities. Failure to obtain such waivers, or any
limitation, suspension or termination of licenses, authorizations or participations, could have material consequences
for UBS.
The amounts shown in the table below reflect the provisions recorded under IFRS Accounting Standards. In
connection with the acquisition of Credit Suisse, UBS Group AG additionally has reflected in its purchase accounting
under IFRS 3 a valuation adjustment reflecting an estimate of outflows relating to contingent liabilities for all present
obligations included in the scope of the acquisition at fair value upon closing, even if it is not probable that the
contingent liability will result in an outflow of resources, significantly decreasing the recognition threshold for
litigation liabilities beyond those that generally apply under IFRS Accounting Standards. The IFRS 3 acquisition-
related contingent liabilities of USD 2.1bn at 31 December 2024 reflect a decrease of USD 0.3bn from
30 September 2024 as a result of reclassifications to provisions under IAS 37 and releases upon resolution of the
relevant matter.
UBS Group fourth quarter 2024 report |
Consolidated financial information | UBS Group AG interim consolidated financial information (unaudited) 56
Provisions and contingent liabilities (continued)
Provisions for litigation, regulatory and similar matters, by business division and in Group Items
1
USD m
Global Wealth
Manage-
ment
Personal &
Corporate
Banking
Asset
Manage-
ment
Investment
Bank
Non-core
and Legacy
Group Items
UBS Group
Balance as of 31 December 2023
Balance as of 30 September 2024
Increase in provisions recognized in the income statement
Release of provisions recognized in the income statement
Reclassifications
2
Provisions used in conformity with designated purpose
Foreign currency translation and other movements
Balance as of 31 December 2024
1 Provisions, if any, for the matters described in items 2 and 10 of this disclosure are recorded in Global Wealth Management. Provisions, if any, for the matters described in items 5, 6, 7, 8, 9, 11 and 13 of this
disclosure are recorded in Non-core and Legacy. Provisions, if any, for the matter described in item 14 of this disclosure are recorded in Group Items. Provisions, if any, for the matters described in item 1 of this
disclosure are allocated between Global Wealth Management, Personal & Corporate Banking and Non-core and Legacy. Provisions, if any, for the matters described in item 3 of this disclosure are allocated between
the Investment Bank, Non-core and Legacy and Group Items. Provisions, if any, for the matters described in item 4 of this disclosure are allocated between Global Wealth Management and Personal & Corporate
Banking. Provisions, if any, for the matters described in item 12 of this disclosure are allocated between the Investment Bank and Non-core and Legacy. 2 Mainly includes reclassifications from IFRS 3 contingent
liabilities to IAS 37 provisions.
1. Inquiries regarding cross-border wealth management businesses
Tax and regulatory authorities in a number of countries have made inquiries, served requests for information or
examined employees located in their respective jurisdictions relating to the cross-border wealth management
services provided by UBS and other financial institutions. Credit Suisse offices in various locations, including the UK,
the Netherlands, France and Belgium, have been contacted by regulatory and law enforcement authorities seeking
records and information concerning investigations into Credit Suisse’s historical private banking services on a cross-
border basis and in part through its local branches and banks. The UK and French aspects of these issues have been
closed. UBS is continuing to cooperate with the authorities.
Since 2013, UBS (France) S.A., UBS AG and certain former employees have been under investigation in France in
relation to UBS’s cross-border business with French clients. In connection with this investigation, the investigating
judges ordered UBS AG to provide bail (“
caution
”) of EUR 1.1bn.
In 2019, the court of first instance returned a verdict finding UBS AG guilty of unlawful solicitation of clients on
French territory and aggravated laundering of the proceeds of tax fraud, and UBS (France) S.A. guilty of aiding and
abetting unlawful solicitation and of laundering the proceeds of tax fraud. The court imposed fines aggregating
EUR 3.7bn on UBS AG and UBS (France) S.A. and awarded EUR 800m of civil damages to the French state. A trial
in the Paris Court of Appeal took place in March 2021. In December 2021, the Court of Appeal found UBS AG
guilty of unlawful solicitation and aggravated laundering of the proceeds of tax fraud. The court ordered a fine of
EUR 3.75m, the confiscation of EUR 1bn, and awarded civil damages to the French state of EUR 800m. UBS
appealed the decision to the French Supreme Court. The Supreme Court rendered its judgment on 15 November
2023. It upheld the Court of Appeal’s decision regarding unlawful solicitation and aggravated laundering of the
proceeds of tax fraud, but overturned the confiscation of EUR 1bn, the penalty of EUR 3.75m and the EUR 800m
of civil damages awarded to the French state. The case has been remanded to the Court of Appeal for a retrial
regarding these overturned elements. The French state has reimbursed the EUR 800m of civil damages to UBS AG.
In May 2014, Credit Suisse entered into settlement agreements with the SEC, Federal Reserve and New York
Department of Financial Services and entered into an agreement with the US Department of Justice (DOJ) to plead
guilty to conspiring to aid and abet US taxpayers in filing false tax returns (2014 Plea Agreement). Credit Suisse
continued to report to and cooperate with US authorities in accordance with its obligations under the 2014 Plea
Agreement, including by conducting a review of cross-border services provided by Credit Suisse. In this connection,
Credit Suisse provided information to US authorities regarding potentially undeclared US assets held by clients at
Credit Suisse. UBS continues to cooperate with the ongoing investigation by the DOJ.
UBS Group fourth quarter 2024 report |
Consolidated financial information | UBS Group AG interim consolidated financial information (unaudited) 57
Provisions and contingent liabilities (continued)
Our balance sheet at 31 December 2024 reflected a provision in an amount that UBS believes to be appropriate
under the applicable accounting standard. As in the case of other matters for which we have established provisions,
the future outflow of resources in respect of such matters cannot be determined with certainty based on currently
available information and accordingly may ultimately prove to be substantially greater (or may be less) than the
provision that we have recognized.
2. Madoff
In relation to the Bernard L. Madoff Investment Securities LLC (BMIS) investment fraud, UBS AG, UBS (Luxembourg)
S.A. (now UBS Europe SE, Luxembourg branch) and certain other UBS subsidiaries have been subject to inquiries
by a number of regulators, including the Swiss Financial Market Supervisory Authority (FINMA) and the Luxembourg
Commission de Surveillance du Secteur Financier. Those inquiries concerned two third-party funds established
under Luxembourg law, substantially all assets of which were with BMIS, as well as certain funds established in
offshore jurisdictions with either direct or indirect exposure to BMIS. These funds faced severe losses, and the
Luxembourg funds are in liquidation. The documentation establishing both funds identifies UBS entities in various
roles, including custodian, administrator, manager, distributor and promoter, and indicates that UBS employees
serve as board members.
In 2009 and 2010, the liquidators of the two Luxembourg funds filed claims against UBS entities, non-UBS entities
and certain individuals, including current and former UBS employees, seeking amounts totaling approximately
EUR 2.1bn, which includes amounts that the funds may be held liable to pay the trustee for the liquidation of BMIS
(BMIS Trustee).
A large number of alleged beneficiaries have filed claims against UBS entities (and non-UBS entities) for purported
losses relating to the Madoff fraud. The majority of these cases have been filed in Luxembourg, where decisions
that the claims in eight test cases were inadmissible have been affirmed by the Luxembourg Court of Appeal, and
the Luxembourg Supreme Court has dismissed a further appeal in one of the test cases.
In the US, the BMIS Trustee filed claims against UBS entities, among others, in relation to the two Luxembourg
funds and one of the offshore funds. The total amount claimed against all defendants in these actions was not less
than USD 2bn. In 2014, the US Supreme Court rejected the BMIS Trustee’s motion for leave to appeal decisions,
dismissing all claims against UBS defendants except those for the recovery of approximately USD 125m of payments
alleged to be fraudulent conveyances and preference payments. Similar claims have been filed against Credit Suisse
entities seeking to recover redemption payments. In 2016, the bankruptcy court dismissed these claims against the
UBS entities and most of the Credit Suisse entities. In 2019, the Court of Appeals reversed the dismissal of the BMIS
Trustee’s remaining claims. The case has been remanded to the Bankruptcy Court for further proceedings.
3. Foreign exchange, LIBOR and benchmark rates, and other trading practices
Foreign-exchange-related regulatory matters:
concerning possible manipulation of foreign exchange markets and precious metals prices. As a result of these
investigations, UBS entered into resolutions with Swiss, US and UK regulators and the European Commission. UBS
was granted conditional immunity by the Antitrust Division of the DOJ and by authorities in other jurisdictions in
connection with potential competition law violations relating to foreign exchange and precious metals businesses.
In December 2021, the European Commission issued a decision imposing a fine of EUR 83.3m on Credit Suisse
entities based on findings of anticompetitive practices in the foreign exchange market. Credit Suisse has appealed
the decision to the European General Court. UBS received leniency and accordingly no fine was assessed.
Foreign-exchange-related civil litigation:
in other jurisdictions against UBS, Credit Suisse and other banks on behalf of putative classes of persons who
engaged in foreign currency transactions with any of the defendant banks. UBS and Credit Suisse have resolved US
federal court class actions relating to foreign currency transactions with the defendant banks and persons who
transacted in foreign exchange futures contracts and options on such futures. Certain class members have excluded
themselves from that settlement and filed individual actions in US and English courts against UBS, Credit Suisse and
other banks, alleging violations of US and European competition laws and unjust enrichment. UBS, Credit Suisse
and the other banks have resolved those individual matters. Credit Suisse and UBS, together with other financial
institutions, were named in a consolidated putative class action in Israel, which made allegations similar to those
made in the actions pursued in other jurisdictions. In April 2022, Credit Suisse entered into an agreement to settle
all claims in this action. In February 2024, UBS entered into an agreement to settle all claims in this action. Both
settlements remain subject to court approval.
UBS Group fourth quarter 2024 report |
Consolidated financial information | UBS Group AG interim consolidated financial information (unaudited) 58
Provisions and contingent liabilities (continued)
A putative class action was filed in federal court against UBS and numerous other banks on behalf of persons and
businesses in the US who directly purchased foreign currency from the defendants and alleged co-conspirators for
their own end use. In May 2024, the Second Circuit upheld the district court’s dismissal of the case.
LIBOR and other benchmark-related regulatory matters:
regarding potential improper attempts by UBS, among others, to manipulate LIBOR and other benchmark rates at
certain times. UBS and Credit Suisse reached settlements or otherwise concluded investigations relating to
benchmark interest rates with the investigating authorities. UBS was granted conditional leniency or conditional
immunity from authorities in certain jurisdictions, including the Antitrust Division of the DOJ and the Swiss
Competition Commission (WEKO), in connection with potential antitrust or competition law violations related to
certain rates. However, UBS has not reached a final settlement with WEKO, as the Secretariat of WEKO has asserted
that UBS does not qualify for full immunity.
LIBOR and other benchmark-related civil litigation:
in the federal courts in New York against UBS and numerous other banks on behalf of parties who transacted in
certain interest rate benchmark-based derivatives. Also pending in the US and in other jurisdictions are a number
of other actions asserting losses related to various products whose interest rates were linked to LIBOR and other
benchmarks, including adjustable rate mortgages, preferred and debt securities, bonds pledged as collateral, loans,
depository accounts, investments and other interest-bearing instruments. The complaints allege manipulation,
through various means, of certain benchmark interest rates, including USD LIBOR, Yen LIBOR, EURIBOR, CHF LIBOR,
and GBP LIBOR and seek unspecified compensatory and other damages under various legal theories.
USD LIBOR class and individual actions in the US:
Beginning in 2013, putative class actions were filed in US federal
district courts (and subsequently consolidated in the US District Court for the Southern District of New York (SDNY))
by plaintiffs who engaged in over-the-counter instruments, exchange-traded Eurodollar futures and options, bonds
or loans that referenced USD LIBOR. The complaints allege violations of antitrust law and the Commodities
Exchange Act, as well breach of contract and unjust enrichment. Following various rulings by the district court and
the Second Circuit dismissing certain of the causes of action and allowing others to proceed, one class action with
respect to transactions in over-the-counter instruments and several actions brought by individual plaintiffs are
proceeding in the district court. UBS and Credit Suisse have entered into settlement agreements in respect of the
class actions relating to exchange-traded instruments, bonds and loans. These settlements have received final court
approval and the actions have been dismissed as to UBS and Credit Suisse. In addition, an individual action was
filed in the Northern District of California against UBS, Credit Suisse and numerous other banks alleging that the
defendants conspired to fix the interest rate used as the basis for loans to consumers by jointly setting the USD ICE
LIBOR rate and monopolized the market for LIBOR-based consumer loans and credit cards. The court dismissed the
initial complaint and subsequently dismissed an amended complaint with prejudice. In January 2024, plaintiffs
appealed the dismissal to the Ninth Circuit Court of Appeals, which affirmed the dismissal in November 2024.
Other benchmark class actions in the US:
The Yen LIBOR/Euroyen TIBOR, EURIBOR and GBP LIBOR actions have
been dismissed. Plaintiffs have appealed the dismissals.
In November 2022, defendants have moved to dismiss the complaint in the CHF LIBOR action. In 2023, the court
approved a settlement by Credit Suisse of the claims against it in this matter.
Government bonds:
breached European Union antitrust rules between 2007 and 2011 relating to European government bonds. The
European Commission fined UBS EUR 172m. UBS has appealed the amount of the fine.
Also in 2021, the European
Commission issued a decision finding that Credit Suisse and four other banks had breached European Union
antitrust rules relating to supra-sovereign, sovereign and agency bonds denominated in USD. The European
Commission fined Credit Suisse EUR 11.9m, which amount was confirmed on appeal.
Credit Suisse, together with other financial institutions, was named in two Canadian putative class actions, which
allege that defendants conspired to fix the prices of supranational, sub-sovereign and agency bonds sold to and
purchased from investors in the secondary market. One action was dismissed against Credit Suisse in February
2020. In October 2022, Credit Suisse entered into an agreement to settle all claims in the second action, which was
approved by the court in November 2024.
UBS Group fourth quarter 2024 report |
Consolidated financial information | UBS Group AG interim consolidated financial information (unaudited) 59
Provisions and contingent liabilities (continued)
Credit default swap auction litigation
in a putative class action complaint filed in the US District Court for the District of New Mexico alleging manipulation
of credit default swap (CDS) final auction prices. Defendants filed a motion to enforce a previous CDS class action
settlement in the SDNY. In January 2024, the SDNY ruled that, to the extent claims in the New Mexico action arise
from conduct prior to 30 June 2014, those claims are barred by the SDNY settlement. The plaintiffs have appealed
the SDNY decision.
With respect to additional matters and jurisdictions not encompassed by the settlements and orders referred to
above, UBS’s balance sheet at 31 December 2024 reflected a provision in an amount that UBS believes to be
appropriate under the applicable accounting standard. As in the case of other matters for which we have established
provisions, the future outflow of resources in respect of such matters cannot be determined with certainty based
on currently available information and accordingly may ultimately prove to be substantially greater (or may be less)
than the provision that we have recognized.
4. Swiss retrocessions
The Federal Supreme Court of Switzerland ruled in 2012, in a test case against UBS, that distribution fees paid to
a firm for distributing third-party and intra-group investment funds and structured products must be disclosed and
surrendered to clients who have entered into a discretionary mandate agreement with the firm, absent a valid
waiver. FINMA issued a supervisory note to all Swiss banks in response to the Supreme Court decision. UBS has met
the FINMA requirements and has notified all potentially affected clients.
The Supreme Court decision has resulted, and continues to result, in a number of client requests to disclose and
potentially surrender retrocessions. Client requests are assessed on a case-by-case basis. Considerations taken into
account when assessing these cases include, among other things, the existence of a discretionary mandate and
whether or not the client documentation contained a valid waiver with respect to distribution fees.
UBS’s balance sheet at 31 December 2024 reflected a provision with respect to matters described in this item 4 in
an amount that UBS believes to be appropriate under the applicable accounting standard. The ultimate exposure
will depend on client requests and the resolution thereof, factors that are difficult to predict and assess. Hence, as
in the case of other matters for which we have established provisions, the future outflow of resources in respect of
such matters cannot be determined with certainty based on currently available information and accordingly may
ultimately prove to be substantially greater (or may be less) than the provision that we have recognized.
5. Mortgage-related matters
Government and regulatory related matters
:
DOJ RMBS settlement
LLC (CSS LLC) and its current and former US subsidiaries and US affiliates reached a settlement with the US
Department of Justice (DOJ) related to its legacy Residential Mortgage-Backed Securities (RMBS) business, a business
conducted through 2007. The settlement resolved potential civil claims by the DOJ related to certain of those Credit
Suisse entities’ packaging, marketing, structuring, arrangement, underwriting, issuance and sale of RMBS. Pursuant
to the terms of the settlement a civil monetary penalty was paid to the DOJ in January 2017. The settlement also
required the Credit Suisse entities to provide certain levels of consumer relief measures, including affordable
housing payments and loan forgiveness, and the DOJ and Credit Suisse agreed to the appointment of an
independent monitor to oversee the completion of the consumer relief requirements of the settlement. UBS
continues to evaluate its approach toward satisfying the remaining consumer relief obligations. The aggregate
amount of the consumer relief obligation increased after 2021 by 5% per annum of the outstanding amount due
until these obligations are settled. The monitor publishes reports periodically on these consumer relief matters.
Civil litigation: Repurchase litigations
to their roles as issuer, sponsor, depositor, underwriter and/or servicer of RMBS transactions. These cases currently
include repurchase actions by RMBS trusts and/or trustees, in which plaintiffs generally allege breached
representations and warranties in respect of mortgage loans and failure to repurchase such mortgage loans as
required under the applicable agreements. The amounts disclosed below do not reflect actual realized plaintiff
losses to date. Unless otherwise stated, these amounts reflect the original unpaid principal balance amounts as
alleged in these actions.
UBS Group fourth quarter 2024 report |
Consolidated financial information | UBS Group AG interim consolidated financial information (unaudited) 60
Provisions and contingent liabilities (continued)
DLJ Mortgage Capital, Inc. (DLJ) is a defendant in New York State court in five actions: An action brought by Asset
Backed Securities Corporation Home Equity Loan Trust, Series 2006-HE7 alleges damages of not less than
USD 374m. In December 2023, the court granted in part DLJ’s motion to dismiss, dismissing with prejudice all
notice-based claims; the parties have appealed. An action by Home Equity Asset Trust, Series 2006-8, alleges
damages of not less than USD 436m. An action by Home Equity Asset Trust 2007-1 alleges damages of not less
than USD 420m. Following a non-jury trial, the court issued a decision in December 2024 that the plaintiff had
established breaches of representations and warranties relating to 210 of the 783 loans at issue. The court deferred
decision as to damages, which will either be agreed upon by the parties or briefed for further decision by the court.
An action by Home Equity Asset Trust 2007-2 alleges damages of not less than USD 495m. An action by CSMC
Asset-Backed Trust 2007-NC1 does not allege a damages amount.
6. ATA litigation
Since November 2014, a series of lawsuits have been filed against a number of banks, including Credit Suisse, in
the US District Court for the Eastern District of New York (EDNY) and the SDNY alleging claims under the United
States Anti-Terrorism Act (ATA) and the Justice Against Sponsors of Terrorism Act. The plaintiffs in each of these
lawsuits are, or are relatives of, victims of various terrorist attacks in Iraq and allege a conspiracy and/or aiding and
abetting based on allegations that various international financial institutions, including the defendants, agreed to
alter, falsify or omit information from payment messages that involved Iranian parties for the express purpose of
concealing the Iranian parties’ financial activities and transactions from detection by US authorities. The lawsuits
allege that this conduct has made it possible for Iran to transfer funds to Hezbollah and other terrorist organizations
actively engaged in harming US military personnel and civilians. In January 2023, the United States Court of Appeals
for the Second Circuit affirmed a September 2019 ruling by the EDNY granting defendants’ motion to dismiss the
first filed lawsuit. In October 2023, the United States Supreme Court denied plaintiffs’ petition for a writ of
certiorari. In February 2024, plaintiffs filed a motion to vacate the judgment in the first filed lawsuit. Of the other
seven cases, four are stayed, including one that was dismissed as to Credit Suisse and most of the bank defendants
prior to entry of the stay, and in three cases plaintiffs have filed amended complaints.
7. Customer account matters
Several clients have claimed that a former relationship manager in Switzerland had exceeded his investment
authority in the management of their portfolios, resulting in excessive concentrations of certain exposures and
investment losses. Credit Suisse AG has investigated the claims, as well as transactions among the clients. Credit
Suisse AG filed a criminal complaint against the former relationship manager with the Geneva Prosecutor’s Office
upon which the prosecutor initiated a criminal investigation. Several clients of the former relationship manager also
filed criminal complaints with the Geneva Prosecutor’s Office. In February 2018, the former relationship manager
was sentenced to five years in prison by the Geneva criminal court for fraud, forgery and criminal mismanagement
and ordered to pay damages of approximately USD 130m. On appeal, the Criminal Court of Appeals of Geneva
and, subsequently, the Swiss Federal Supreme Court upheld the main findings of the Geneva criminal court.
Civil lawsuits have been initiated against Credit Suisse AG and / or certain affiliates in various jurisdictions, based
on the findings established in the criminal proceedings against the former relationship manager.
In Singapore, in a civil lawsuit against Credit Suisse Trust Limited, the Singapore International Commercial Court
issued a judgment finding for the plaintiffs and, in September 2023, the court awarded damages of USD 742.73m,
excluding post-judgment interest. This figure does not exclude potential overlap with the Bermuda proceedings
against Credit Suisse Life (Bermuda) Ltd., described below, and the court ordered the parties to ensure that there
shall be no double recovery in relation to this award and the Bermuda proceedings. On appeal from this judgment,
in July 2024, the court ordered some changes to the calculation of damages and directed the parties to agree
adjustments to the award. The court ordered a revised award of USD 461m, including interest and costs, in October
2024.
UBS Group fourth quarter 2024 report |
Consolidated financial information | UBS Group AG interim consolidated financial information (unaudited) 61
Provisions and contingent liabilities (continued)
In Bermuda, in the civil lawsuit brought against Credit Suisse Life (Bermuda) Ltd., the Supreme Court of Bermuda
issued a judgment finding for the plaintiff and awarded damages of USD 607.35m to the plaintiff. Credit Suisse
Life (Bermuda) Ltd. appealed the decision and in June 2023, the Bermuda Court of Appeal confirmed the award
issued by the Supreme Court of Bermuda and the finding that Credit Suisse Life (Bermuda) Ltd. had breached its
contractual and fiduciary duties, but overturning the finding that Credit Suisse Life (Bermuda) Ltd. had made
fraudulent misrepresentations. In March 2024, the Bermuda Court of Appeal granted a motion by Credit Suisse
Life (Bermuda) Ltd. for leave to appeal the judgment to the Judicial Committee of the Privy Council and the notice
of such appeal was filed. The Court of Appeal also ordered that the current stay continue pending determination
of the appeal on the condition that the damages awarded remain within the escrow account plus interest calculated
at the Bermuda statutory rate of 3.5%. In December 2023, USD 75m was released from the escrow account and
paid to plaintiffs.
In Switzerland, civil lawsuits have been commenced against Credit Suisse AG in the Court of First Instance of
Geneva, with statements of claim served in March 2023 and March 2024.
8. Mozambique matter
Credit Suisse was subject to investigations by regulatory and enforcement authorities, as well as civil litigation,
regarding certain Credit Suisse entities’ arrangement of loan financing to Mozambique state enterprises, Proindicus
S.A. and Empresa Moçambicana de Atum S.A. (EMATUM), a distribution to private investors of loan participation
notes (LPN) related to the EMATUM financing in September 2013, and certain Credit Suisse entities’ subsequent
role in arranging the exchange of those LPNs for Eurobonds issued by the Republic of Mozambique. In 2019, three
former Credit Suisse employees pleaded guilty in the EDNY to accepting improper personal benefits in connection
with financing transactions carried out with two Mozambique state enterprises.
In October 2021, Credit Suisse reached settlements with the DOJ, the US Securities and Exchange Commission
(SEC), the UK Financial Conduct Authority (FCA) and FINMA to resolve inquiries by these agencies, including findings
that Credit Suisse failed to appropriately organize and conduct its business with due skill and care, and manage
risks. Credit Suisse Group AG entered into a three-year Deferred Prosecution Agreement (DPA) with the DOJ in
connection with the criminal information charging Credit Suisse Group AG with conspiracy to commit wire fraud
and Credit Suisse Securities (Europe) Limited (CSSEL) entered into a Plea Agreement and pleaded guilty to one count
of conspiracy to violate the US federal wire fraud statute. Under the terms of the DPA, UBS Group AG (as successor
to Credit Suisse Group AG) continued compliance enhancement and remediation efforts agreed by Credit Suisse,
and undertake additional measures as outlined in the DPA. In January 2025, as permitted under the terms of the
DPA, the DOJ elected to extend the term of the DPA by one year.
9. ETN-related litigation
XIV litigation:
Since March 2018, three class action complaints were filed in the SDNY on behalf of a putative class
of purchasers of VelocityShares Daily Inverse VIX Short-Term Exchange Traded Notes linked to the S&P 500 VIX
Short-Term Futures Index (XIV ETNs). The complaints have been consolidated and asserts claims against Credit
Suisse for violations of various anti-fraud and anti-manipulation provisions of US securities laws arising from a
decline in the value of XIV ETNs in February 2018. On appeal from an order of the SDNY dismissing all claims, the
Second Circuit issued an order that reinstated a portion of the claims. In decisions in March 2023 and March 2024,
the court denied class certification for two of the three classes proposed by plaintiffs and certified the third proposed
class.
UBS Group fourth quarter 2024 report |
Consolidated financial information | UBS Group AG interim consolidated financial information (unaudited) 62
Provisions and contingent liabilities (continued)
10. Bulgarian former clients matter
In December 2020, the Swiss Office of the Attorney General brought charges against Credit Suisse AG and other
parties concerning the diligence and controls applied to a historical relationship with Bulgarian former clients who
are alleged to have laundered funds through Credit Suisse AG accounts. In June 2022, following a trial, Credit
Suisse AG was convicted in the Swiss Federal Criminal Court of certain historical organizational inadequacies in its
anti-money-laundering framework and ordered to pay a fine of CHF 2m. In addition, the court seized certain client
assets in the amount of approximately CHF 12m and ordered Credit Suisse AG to pay a compensatory claim in the
amount of approximately CHF 19m. Credit Suisse AG appealed the decision to the Swiss Federal Court of Appeals.
Following the merger of UBS AG and Credit Suisse AG, UBS AG confirmed the appeal. In November 2024, the
court issued a judgment that acquitted UBS AG and annulled the fine and compensatory claim ordered by the first
instance court. The court of appeal’s judgment may be appealed to the Swiss Federal Supreme Court.
11. Supply chain finance funds
Credit Suisse has received requests for documents and information in connection with inquiries, investigations,
enforcement and other actions relating to the supply chain finance funds (SCFFs) matter by FINMA, the FCA and
other regulatory and governmental agencies.
In February 2023, FINMA announced the conclusion of its enforcement proceedings against Credit Suisse in
connection with the SCFFs matter. In its order, FINMA reported that Credit Suisse had seriously breached applicable
Swiss supervisory laws in this context with regard to risk management and appropriate operational structures. While
FINMA recognized that Credit Suisse had already taken extensive organizational measures to strengthen its
governance and control processes, FINMA ordered certain additional remedial measures. These include a
requirement that Credit Suisse documents the responsibilities of approximately 600 of its highest-ranking managers.
This measure has been made applicable to UBS Group. FINMA has also separately opened four enforcement
proceedings against former managers of Credit Suisse.
In May 2023, FINMA opened an enforcement proceeding against Credit Suisse in order to confirm compliance with
supervisory requirements in response to inquiries from FINMA’s enforcement division in the SCFFs matter. FINMA
has closed the enforcement proceeding, finding that Credit Suisse breached its cooperation obligations with FINMA
Enforcement. FINMA refrained from ordering any remedial measures as it did not find similar issues with UBS.
In December 2024, the Luxembourg Commission de Surveillance du Secteur Financier (CSSF) concluded its
investigation. The CSSF identified non-compliance with several obligations under Luxembourg law and imposed a
sanction of EUR 250,000.
The Attorney General of the Canton of Zurich has initiated a criminal procedure in connection with the SCFFs matter
and several fund investors have joined the procedure as interested parties. Certain former and active Credit Suisse
employees, among others, have been named as accused persons, but Credit Suisse itself was not made a party to
the proceeding.
Certain civil actions have been filed by fund investors and other parties against Credit Suisse and/or certain officers
and directors in various jurisdictions, which make allegations including mis-selling and breaches of duties of care,
diligence and other fiduciary duties. In June 2024, the Credit Suisse SCFFs made a voluntary offer to the SCFFs
investors to redeem all outstanding fund units. The offer expired on 31 July 2024, and fund units representing
around 92% of the SCFFs’ net asset value were tendered in the offer and accepted. Fund units accepted in the
offer were redeemed at 90% of the net asset value determined on 25 February 2021, net of any payments made
by the relevant fund to the fund investors since that time. Investors whose units were redeemed released any claims
they may have had against the SCFFs, Credit Suisse or UBS. The offer was funded by UBS through the purchase of
units of feeder sub-funds.
UBS Group fourth quarter 2024 report |
Consolidated financial information | UBS Group AG interim consolidated financial information (unaudited) 63
Provisions and contingent liabilities (continued)
12. Archegos
Credit Suisse and UBS have received requests for documents and information in connection with inquiries,
investigations and/or actions relating to their relationships with Archegos Capital Management (Archegos),
including from FINMA (assisted by a third party appointed by FINMA), the DOJ, the SEC, the US Federal Reserve,
the US Commodity Futures Trading Commission (CFTC), the US Senate Banking Committee, the Prudential
Regulation Authority (PRA), the FCA, the WEKO, the Hong Kong Competition Commission and other regulatory
and governmental agencies. UBS is cooperating with the authorities in these matters. In July 2023, CSI and CSSEL
entered into a settlement agreement with the PRA providing for the resolution of the PRA’s investigation. Also in
July 2023, FINMA issued a decree ordering remedial measures and the Federal Reserve Board issued an Order to
Cease and Desist. Under the terms of the order, Credit Suisse paid a civil money penalty and agreed to undertake
certain remedial measures relating to counterparty credit risk management, liquidity risk management and non-
financial risk management, as well as enhancements to board oversight and governance. UBS Group, as the legal
successor to Credit Suisse Group AG, is a party to the FINMA decree and Federal Reserve Board Cease and Desist
Order.
Civil actions relating to Credit Suisse’s relationship with Archegos have been filed against Credit Suisse and/or
certain officers and directors, including claims for breaches of fiduciary duties.
13. Credit Suisse financial disclosures
Credit Suisse Group AG and certain directors, officers and executives have been named in securities class action
complaints pending in the SDNY. These complaints, filed on behalf of purchasers of Credit Suisse shares, additional
tier 1 capital notes, and other securities in 2023, allege that defendants made misleading statements regarding:
(i) customer outflows in late 2022; (ii) the adequacy of Credit Suisse’s financial reporting controls; and (iii) the
adequacy of Credit Suisse’s risk management processes, and include allegations relating to Credit Suisse
Group AG’s merger with UBS Group AG. Many of the actions have been consolidated, and a motion to dismiss has
been filed and remains pending. One additional action, filed in October 2023, has been stayed pending a
determination on whether it should be consolidated with the earlier actions.
Credit Suisse has received requests for documents and information from regulatory and governmental agencies in
connection with inquiries, investigations and/or actions relating to these matters, as well as for other statements
regarding Credit Suisse’s financial condition, including from the SEC, the DOJ and FINMA. UBS is cooperating with
the authorities in these matters.
14. Merger-related litigation
Certain Credit Suisse Group AG affiliates and certain directors, officers and executives have been named in class
action complaints pending in the SDNY. One complaint, brought on behalf of Credit Suisse shareholders, alleges
breaches of fiduciary duty under Swiss law and civil RICO claims under US federal law. In February 2024, the court
granted defendants’ motions to dismiss the civil RICO claims and conditionally dismissed the Swiss law claims
pending defendants’ acceptance of jurisdiction in Switzerland. In March 2024, having received consents to Swiss
jurisdiction from all defendants served with the complaint, the court dismissed the Swiss law claims against those
defendants. Additional complaints, brought on behalf of holders of Credit Suisse additional tier 1 capital notes (AT1
noteholders) allege breaches of fiduciary duty under Swiss law, arising from a series of scandals and misconduct,
which led to Credit Suisse Group AG’s merger with UBS Group AG, causing losses to shareholders and AT1
noteholders. Motions to dismiss these complaints were granted in March 2024 and September 2024 on the basis
that Switzerland is the most appropriate forum for litigation. Plaintiff in one of these cases has appealed the
dismissal.
UBS Group fourth quarter 2024 report |
Consolidated financial information | UBS Group AG interim consolidated financial information (unaudited) 64
Currency translation rates
The following table shows the rates of the main currencies used to translate the financial information of UBS’s
operations with a functional currency other than the US dollar into US dollars.
Closing exchange rate
Average rate
1
As of
For the quarter ended
Year-to-date
31.12.24
30.9.24
31.12.23
31.12.24
30.9.24
31.12.23
31.12.24
31.12.23
1 CHF
1 EUR
1 GBP
100 JPY
1 Monthly income statement items of operations with a functional currency other than the US dollar are translated into US dollars using month-end rates. Disclosed average rates for a quarter or a year represent an
average of three month-end rates or an average of twelve month-end rates, respectively, weighted according to the income and expense volumes of all operations of the Group with the same functional currency for
each month. Weighted average rates for individual business divisions may deviate from the weighted averag e rates for the Group.
UBS Group fourth quarter 2024 report |
Appendix 65
Appendix
Alternative performance measures
Alternative performance measures
An alternative performance measure (an APM) is a financial measure of historical or future financial performance,
financial position or cash flows other than a financial measure defined or specified in the applicable recognized
accounting standards or in other applicable regulations. A number of APMs are reported in the discussion of the
financial and operating performance of the external reports (annual, quarterly and other reports). APMs are used
to provide a more complete picture of operating performance and to reflect management’s view of the fundamental
drivers of the business results. A definition of each APM, the method used to calculate it and the information
content are presented in alphabetical order in the table below. These APMs may qualify as non-GAAP measures as
defined by US Securities and Exchange Commission (SEC) regulations.
APM label
Calculation
Information content
Cost / income ratio (%)
Calculated as operating expenses divided by total
revenues.
This measure provides information about the
efficiency of the business by comparing operating
expenses with total revenues.
Cost of credit risk (bps)
Calculated as total credit loss expense / (release)
(annualized as applicable) divided by the average
balance of lending assets for the reporting period,
expressed in basis points. Lending assets include the
gross amounts of Amounts due from banks and
Loans and advances to customers.
This measure provides information about the total
credit loss expense / (release) incurred in relation to
the average balance of gross lending assets for the
period.
Credit-impaired lending assets as a
percentage of total lending assets,
gross (%)
Calculated as credit-impaired lending assets divided
by total lending assets. Lending assets includes the
gross amounts of Amounts due from banks and
Loans and advances to customers. Credit-impaired
lending assets refers to the sum of stage 3 and
purchased credit-impaired positions.
This measure provides information about the
proportion of credit-impaired lending assets in the
overall portfolio of gross lending assets.
Fee-generating assets (USD)
– Global Wealth Management
Calculated as the sum of discretionary and
nondiscretionary wealth management portfolios
(mandate volume) and assets where generated
revenues are predominantly of a recurring nature, i.e.
mainly investment, mutual, hedge and private-market
funds where we have a distribution agreement,
including client commitments into closed-ended
private-market funds from the date that recurring
fees are charged. Assets related to our Global
Financial Intermediaries business are excluded, as are
assets of sanctioned clients.
This measure provides information about the volume
of invested assets that create a revenue stream,
whether as a result of the nature of the contractual
relationship with clients or through the fee structure
of the asset. An increase in the level of fee-generating
assets results in an increase in the associated revenue
stream. Assets of sanctioned clients are excluded from
fee-generating assets.
Gross margin on invested assets (bps)
– Asset Management
Calculated as total revenues (annualized as applicable)
divided by average invested assets.
This measure provides information about the total
revenues of the business in relation to invested assets.
Impaired loan portfolio as a percentage
of total loan portfolio, gross (%)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as impaired loan portfolio divided by total
gross loan portfolio.
This measure provides information about the
proportion of impaired loan portfolio in the total gross
loan portfolio.
Integration-related expenses (USD)
Generally include costs of internal staff and
contractors substantially dedicated to integration
activities, retention awards, redundancy costs,
incremental expenses from the shortening of useful
lives of property, equipment and software, and
impairment charges relating to these assets.
Classification as integration-related expenses does not
affect the timing of recognition and measurement of
those expenses or the presentation thereof in the
income statement. Integration-related expenses
incurred by Credit Suisse also included expenses
associated with restructuring programs that existed
prior to the acquisition.
This measure provides information about expenses
that are temporary, incremental and directly related to
the integration of Credit Suisse into UBS.
UBS Group fourth quarter 2024 report |
Appendix 66
APM label
Calculation
Information content
Invested assets (USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management
Calculated as the sum of managed fund assets,
managed institutional assets, discretionary and
advisory wealth management portfolios, fiduciary
deposits, time deposits, savings accounts, and wealth
management securities or brokerage accounts.
This measure provides information about the volume
of client assets managed by or deposited with UBS for
investment purposes.
Net interest margin (bps)
– Personal & Corporate Banking
Calculated as net interest income (annualized as
applicable) divided by average loans.
This measure provides information about the
profitability of the business by calculating the
difference between the price charged for lending and
the cost of funding, relative to loan value.
Net new assets (USD)
– Global Wealth Management
Calculated as the net amount of inflows and outflows
of invested assets (as defined in UBS policy) recorded
during a specific period, plus interest and dividends.
Excluded from the calculation are movements due to
market performance, foreign exchange translation,
fees, and the effects on invested assets of strategic
decisions by UBS to exit markets or services.
This measure provides information about the
development of invested assets during a specific
period as a result of net new asset flows, plus the
effect of interest and dividends.
Net new assets growth rate (%)
– Global Wealth Management
Calculated as the net amount of inflows and outflows
of invested assets (as defined in UBS policy) recorded
during a specific period (annualized as applicable),
plus interest and dividends, divided by total invested
assets at the beginning of the period.
This measure provides information about the growth
of invested assets during a specific period as a result
of net new asset flows.
Net new fee-generating assets (USD)
– Global Wealth Management
Calculated as the net amount of fee-generating asset
inflows and outflows, including dividend and interest
inflows into mandates and outflows from mandate
fees paid by clients during a specific period. Excluded
from the calculation are the effects on fee-generating
assets of strategic decisions by UBS to exit markets or
services.
This measure provides information about the
development of fee-generating assets during a
specific period as a result of net flows, excluding
movements due to market performance and foreign
exchange translation, as well as the effects on fee-
generating assets of strategic decisions by UBS to exit
markets or services.
Net new money (USD)
– Global Wealth Management,
Asset Management
Calculated as the net amount of inflows and outflows
of invested assets (as defined in UBS policy) recorded
during a specific period. Excluded from the calculation
are movements due to market performance, foreign
exchange translation, dividends, interest and fees, as
well as the effects on invested assets of strategic
decisions by UBS to exit markets or services. Net new
money is not measured for Personal & Corporate
Banking.
This measure provides information about the
development of invested assets during a specific
period as a result of net new money flows.
Net profit growth (%)
Calculated as the change in net profit attributable to
shareholders from continuing operations between
current and comparison periods divided by net profit
attributable to shareholders from continuing
operations of the comparison period.
This measure provides information about profit
growth since the comparison period.
Operating expenses (underlying)
(USD)
Calculated by adjusting operating expenses as
reported in accordance with IFRS Accounting
Standards for items that management believes are
not representative of the underlying performance of
the businesses.
›
Refer to the “Group performance” section of this
report for more information
This measure provides information about the amount
of operating expenses, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Operating profit / (loss) before tax
(underlying) (USD)
Calculated by adjusting operating profit / (loss) before
tax as reported in accordance with IFRS Accounting
Standards for items that management believes are
not representative of the underlying performance of
the businesses.
›
Refer to the “Group performance” section of this
report for more information
This measure provides information about the amount
of operating profit / (loss) before tax, while excluding
items that management believes are not
representative of the underlying performance of the
businesses.
Pre-tax profit growth (%)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management,
the Investment Bank
Calculated as the change in net profit before tax
attributable to shareholders from continuing
operations between current and comparison periods
divided by net profit before tax attributable to
shareholders from continuing operations of the
comparison period.
This measure provides information about pre-tax
profit growth since the comparison period.
UBS Group fourth quarter 2024 report |
Appendix 67
APM label
Calculation
Information content
Pre-tax profit growth (underlying) (%)
– Global Wealth Management,
Personal & Corporate Banking,
Asset Management,
the Investment Bank
Calculated as the change in net profit before tax
attributable to shareholders from continuing
operations between current and comparison periods
divided by net profit before tax attributable to
shareholders from continuing operations of the
comparison period. Net profit before tax attributable
to shareholders from continuing operations excludes
items that management believes are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about pre-tax
profit growth since the comparison period, while
excluding items that management believes are not
representative of the underlying performance of the
businesses.
Recurring net fee income
(USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as the total of fees for services provided on
an ongoing basis, such as portfolio management fees,
asset-based investment fund fees and custody fees,
which are generated on client assets, and
administrative fees for accounts.
This measure provides information about the amount
of recurring net fee income.
Return on attributed equity
1
Calculated as annualized business division operating
profit before tax divided by average attributed equity.
This measure provides information about the
profitability of the business divisions in relation to
attributed equity.
Return on common equity tier 1
capital
1
Calculated as annualized net profit attributable to
shareholders divided by average common equity tier 1
capital.
This measure provides information about the
profitability of the business in relation to common
equity tier 1 capital.
Return on equity
1
Calculated as annualized net profit attributable to
shareholders divided by average equity attributable to
shareholders.
This measure provides information about the
profitability of the business in relation to equity.
Return on leverage ratio denominator,
gross
1
Calculated as annualized total revenues divided by
average leverage ratio denominator.
This measure provides information about the revenues
of the business in relation to the leverage ratio
denominator.
Return on tangible equity
1
Calculated as annualized net profit attributable to
shareholders divided by average equity attributable to
shareholders less average goodwill and intangible
assets.
This measure provides information about the
profitability of the business in relation to tangible
equity.
Tangible book value per share
(USD)
Calculated as equity attributable to shareholders less
goodwill and intangible assets divided by the number
of shares outstanding.
This measure provides information about tangible net
assets on a per-share basis.
Total book value per share
(USD)
Calculated as equity attributable to shareholders
divided by the number of shares outstanding.
This measure provides information about net assets
on a per-share basis.
Total revenues (underlying)
(USD)
Calculated by adjusting total revenues as reported in
accordance with IFRS Accounting Standards for items
that management believes are not representative of
the underlying performance of the businesses.
›
Refer to the “Group performance” section of this
report for more information
This measure provides information about the amount
of total revenues, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Transaction-based income
(USD and CHF)
– Global Wealth Management,
Personal & Corporate Banking
Calculated as the total of the non-recurring portion of
net fee and commission income, mainly composed of
brokerage and transaction-based investment fund
fees, and credit card fees, as well as fees for payment
and foreign-exchange transactions, together with
other net income from financial instruments
measured at fair value through profit or loss.
This measure provides information about the amount
of the non-recurring portion of net fee and
commission income, together with other net income
from financial instruments measured at fair value
through profit or loss.
Underlying cost / income ratio (%)
Calculated as underlying operating expenses (as
defined above) divided by underlying total revenues
(as defined above).
This measure provides information about the
efficiency of the business by comparing operating
expenses with total revenues, while excluding items
that management believes are not representative of
the underlying performance of the businesses.
Underlying net profit growth (%)
Calculated as the change in net profit attributable to
shareholders from continuing operations between
current and comparison periods divided by net profit
attributable to shareholders from continuing
operations of the comparison period. Net profit
attributable to shareholders from continuing
operations excludes items that management believes
are not representative of the underlying performance
of the businesses and also excludes related tax
impact.
This measure provides information about profit
growth since the comparison period, while excluding
items that management believes are not
representative of the underlying performance of the
businesses.
UBS Group fourth quarter 2024 report |
Appendix 68
APM label
Calculation
Information content
Underlying return on attributed equity
1
(%)
Calculated as annualized underlying business division
operating profit before tax (as defined above) divided
by average attributed equity.
This measure provides information about the
profitability of the business divisions in relation to
attributed equity, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Underlying return on common equity
tier 1 capital
1
Calculated as annualized net profit attributable to
shareholders divided by average common equity tier 1
capital. Net profit attributable to shareholders
excludes items that management believes are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about the
profitability of the business in relation to common
equity tier 1 capital, while excluding items that
management believes are not representative of the
underlying performance of the businesses.
Underlying return on tangible equity
1
(%)
Calculated as annualized net profit attributable to
shareholders divided by average equity attributable to
shareholders less average goodwill and intangible
assets. Net profit attributable to shareholders excludes
items that management believes are not
representative of the underlying performance of the
businesses and also excludes related tax impact.
This measure provides information about the
profitability of the business in relation to tangible
equity, while excluding items that management
believes are not representative of the underlying
performance of the businesses.
1
Profit or loss information for each of the fourth quarter of 2024, the third quarter of 2024 and the fourth quarter of 2023 is based entirely on consolidated data following the acquisition of the Credit Suisse Group
and for the purpose of the calculation of return measures has been annualized by multiplying such by four. Profit or loss information for 2024 is based entirely on consolidated data following the acquisition of the Credit
Suisse Group. Profit or loss information for 2023 includes seven months (June to December 2023) of post -acquisition consolidated data and five months of UBS Group data only (January to May 2023).
This is a general list of the APMs used in our financial reporting. Not all of the APMs listed above may appear in
this particular report.
Information related to underlying return on common equity tier 1 (CET1) capital and underlying return on tangible
equity (%)
As of or for the quarter ended
As of or for the year ended
USD m, except where indicated
31.12.24
30.9.24
31.12.23
1
31.12.24
31.12.23
1
Underlying operating profit / (loss) before tax
Underlying tax expense / (benefit)
Net profit / (loss) attributable to non-controlling interests
Underlying net profit / (loss) attributable to shareholders
Underlying net profit / (loss) attributable to shareholders, annualized
Tangible equity
Average tangible equity
CET1 capital
Average CET1 capital
Underlying return on tangible equity (%)
Underlying return on common equity tier 1 capital (%)
1 Comparative-period information has been revised. Refer to “Note 2 Accounting for the acquisition of the Credit Suisse Group” in the “Consolidated financial statements” section of the UBS Group third quarter
2024 report, available under “Quarterly reporting” at ubs.com/investors, for more information.
UBS Group fourth quarter 2024 report |
Appendix 69
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
AIV alternative investment
vehicle
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
CEA Commodity Exchange Act
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 (credit
risk) or comprehensive risk
measure (market risk)
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
DE&I diversity, equity and
inclusion
DFAST Dodd–Frank Act Stress Test
DM discount margin
DOJ US Department of Justice
DTA deferred tax asset
DVA debit valuation adjustment
E
EAD exposure at default
EB Executive Board
EC European Commission
ECB European Central Bank
ECL expected credit loss
EGM Extraordinary General
Meeting of shareholders
EIR effective interest rate
EL expected loss
EMEA Europe, Middle East and
Africa
EOP Equity Ownership Plan
EPS earnings per share
ESG environmental, social and
governance
ESR environmental and social
risk
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
FA financial advisor
FCA UK Financial Conduct
Authority
FDIC Federal Deposit Insurance
Corporation
FINMA Swiss Financial Market
Supervisory Authority
FMIA Swiss Financial Market
Infrastructure Act
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 & 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
IAS International Accounting
Standards
IASB International Accounting
Standards Board
IBOR interbank offered rate
IFRIC International Financial
Reporting Interpretations
Committee
IFRS accounting standards
Accounting issued by the IASB
Standards
IRB internal ratings-based
IRRBB interest rate risk in the
banking book
ISDA International Swaps and
Derivatives Association
ISIN International Securities
Identification Number
UBS Group fourth quarter 2024 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
P&L profit or loss
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
SI sustainable investing or
sustainable investment
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
SRM specific risk measure
SVaR stressed value-at-risk
T
TBTF too big to fail
TCFD Task Force on Climate-
related Financial Disclosures
TIBOR Tokyo Interbank Offered
Rate
TLAC total loss-absorbing capacity
TTC through the cycle
U
USD US dollar
V
VaR value-at-risk
VAT
value added tax
This is a general list of the abbreviations frequently used in our financial reporting. Not all of the listed abbreviations
may appear in this particular report.
UBS Group fourth quarter 2024 report |
Appendix 71
Information sources
Reporting publications
Annual publications
UBS Group Annual Report
: Published in English, this report provides descriptions of: the Group strategy and
performance; the strategy and performance of the business divisions and Group Items; risk, treasury and capital
management; corporate governance; the compensation framework, including information about compensation for
the Board of Directors and the Group Executive Board members; and financial information, including the financial
statements.
“Auszug aus dem Geschäftsbericht
”: This publication provides a German translation of selected sections of the UBS
Group Annual Report.
Compensation Report
: This report discusses the compensation framework and provides information about
compensation for the Board of Directors and the Group Executive Board members. It is available in English and
German (
“Vergütungsbericht
”) and represents a component of the UBS Group Annual Report.
Sustainability Report
: Published in English, the Sustainability Report provides disclosures on environmental, social
and governance topics related to the UBS Group. It also provides certain disclosures related to diversity, equity and
inclusion.
Quarterly publications
Quarterly financial report
: This report provides an update on performance and strategy (where applicable) for the
respective quarter. It is available in English.
The annual and quarterly publications are available in .pdf and online formats at
ubs.com/investors
, under “Financial
information”. Printed copies, in any language, of the aforementioned annual publications are no longer provided.
Other information
Website
The “Investor Relations” website at
ubs.com/investors
news releases; financial information, including results-related filings with the US Securities and Exchange
Commission (the SEC); information for shareholders, including UBS dividend and share repurchase program
information, and for bondholders, including rating agencies reports; the corporate calendar; and presentations by
management for investors and financial analysts. Information is available online in English, with some information
also available in German.
Results presentations
Quarterly results presentations are webcast live. Recordings of most presentations can be downloaded from
ubs.com/presentations
.
Messaging service
Email alerts to news about UBS can be subscribed for under “UBS News Alert” at
ubs.com/global/en/investor-
relations/contact/investor-services.html
. Messages are sent in English, German, French or Italian, with an option to
select theme preferences for such alerts.
Form 20-F and other submissions to the US Securities and Exchange Commission
UBS files periodic reports with and submits other information to the SEC. Principal among these filings is the annual
report on Form 20-F, filed pursuant to the US Securities Exchange Act of 1934. The filing of Form 20-F is structured
as a wraparound document. Most sections of the filing can be satisfied by referring to the UBS Group AG Annual
Report. However, there is a small amount of additional information in Form 20-F that is not presented elsewhere
and is particularly targeted at readers in the US. Readers are encouraged to refer to this additional disclosure. Any
document that filed with the SEC is available on the SEC’s website:
sec.gov
. Refer to
ubs.com/investors
information.
UBS Group fourth quarter 2024 report |
Appendix 72
Cautionary statement regarding forward-looking statements |
not limited to management’s outlook for UBS’s financial performance, statements relating to the anticipated effect of transactions and strategic initiatives on
UBS’s business and future development and goals or intentions to achieve climate, sustainability and other social objectives. While these forward-looking
statements represent UBS’s judgments, expectations and objectives concerning the matters described, a number of risks, uncertainties and other important
factors could cause actual developments and results to differ materially from UBS’s expectations. In particular, the global economy may be negatively affected by
shifting political circumstances, including increased tension between world powers, conflicts in the Middle East, as well as the continuing Russia–Ukraine war. In
addition, the ongoing conflicts may continue to cause significant population displacement, and lead to shortages of vital commodities, including energy shortages
and food insecurity outside the areas immediately involved in armed conflict. Governmental responses to the armed conflicts, including successive sets of sanctions
on Russia and Belarus, and Russian and Belarusian entities and nationals, and the uncertainty as to whether the ongoing conflicts will further widen and intensify,
may have significant adverse effects on the market and macroeconomic conditions, including in ways that cannot be anticipated. UBS’s acquisition of the Credit
Suisse Group has materially changed its outlook and strategic direction and introduced new operational challenges. The integration of the Credit Suisse entities
into the UBS structure is expected to continue through 2026 and presents significant operational and execution risk, including the risks that UBS may be unable
to achieve the cost reductions and business benefits contemplated by the transaction, that it may incur higher costs to execute the integration of Credit Suisse
and that the acquired business may have greater risks or liabilities than expected. Following the failure of Credit Suisse, Switzerland is considering significant
changes to its capital, resolution and regulatory regime, which, if proposed and adopted, may significantly increase our capital requirements or impose other
costs on UBS. These factors create greater uncertainty about forward-looking statements. Other factors that may affect UBS’s performance and ability to achieve
its plans, outlook and other objectives also include, but are not limited to: (i) the degree to which UBS is successful in the execution of its strategic plans, including
its cost reduction and efficiency initiatives and its ability to manage its levels of risk-weighted assets (RWA) and leverage ratio denominator (LRD), liquidity
coverage ratio and other financial resources, including changes in RWA assets and liabilities arising from higher market volatility and the size of the combined
Group; (ii) the degree to which UBS is successful in implementing changes to its businesses to meet changing market, regulatory and other conditions; (iii) inflation
and interest rate volatility in major markets; (iv) developments in the macroeconomic climate and in the markets in which UBS operates or to which it is exposed,
including movements in securities prices or liquidity, credit spreads, currency exchange rates, residential and commercial real estate markets, general economic
conditions, and changes to national trade policies on the financial position or creditworthiness of UBS’s clients and counterparties, as well as on client sentiment
and levels of activity; (v) changes in the availability of capital and funding, including any adverse changes in UBS’s credit spreads and credit ratings of UBS, as
well as availability and cost of funding to meet requirements for debt eligible for total loss-absorbing capacity (TLAC); (vi) changes in central bank policies or the
implementation of financial legislation and regulation in Switzerland, the US, the UK, the EU and other financial centers that have imposed, or resulted in, or
may do so in the future, more stringent or entity-specific capital, TLAC, leverage ratio, net stable funding ratio, liquidity and funding requirements, heightened
operational resilience requirements, incremental tax requirements, additional levies, limitations on permitted activities, constraints on remuneration, constraints
on transfers of capital and liquidity and sharing of operational costs across the Group or other measures, and the effect these will or would have on UBS’s
business activities; (vii) UBS’s ability to successfully implement resolvability and related regulatory requirements and the potential need to make further changes
to the legal structure or booking model of UBS in response to legal and regulatory requirements and any additional requirements due to its acquisition of the
Credit Suisse Group, or other developments; (viii) UBS’s ability to maintain and improve its systems and controls for complying with sanctions in a timely manner
and for the detection and prevention of money laundering to meet evolving regulatory requirements and expectations, in particular in the current geopolitical
turmoil; (ix) the uncertainty arising from domestic stresses in certain major economies; (x) changes in UBS’s competitive position, including whether differences
in regulatory capital and other requirements among the major financial centers adversely affect UBS’s ability to compete in certain lines of business; (xi) changes
in the standards of conduct applicable to its businesses that may result from new regulations or new enforcement of existing standards, including measures to
impose new and enhanced duties when interacting with customers and in the execution and handling of customer transactions; (xii) the liability to which UBS
may be exposed, or possible constraints or sanctions that regulatory authorities might impose on UBS, due to litigation, contractual claims and regulatory
investigations, including the potential for disqualification from certain businesses, potentially large fines or monetary penalties, or the loss of licenses or privileges
as a result of regulatory or other governmental sanctions, as well as the effect that litigation, regulatory and similar matters have on the operational risk
component of its RWA; (xiii) UBS’s ability to retain and attract the employees necessary to generate revenues and to manage, support and control its businesses,
which may be affected by competitive factors; (xi) changes in accounting or tax standards or policies, and determinations or interpretations affecting the
recognition of gain or loss, the valuation of goodwill, the recognition of deferred tax assets and other matters; (xv) UBS’s ability to implement new technologies
and business methods, including digital services, artificial intelligence and other technologies, and ability to successfully compete with both existing and new
financial service providers, some of which may not be regulated to the same extent; (xvi) limitations on the effectiveness of UBS’s internal processes for risk
management, risk control, measurement and modeling, and of financial models generally; (xvii) the occurrence of operational failures, such as fraud, misconduct,
unauthorized trading, financial crime, cyberattacks, data leakage and systems failures, the risk of which is increased with persistently high levels of cyberattack
threats; (xviii) restrictions on the ability of UBS Group AG, UBS AG and regulated subsidiaries of UBS AG to make payments or distributions, including due to
restrictions on the ability of its subsidiaries to make loans or distributions, directly or indirectly, or, in the case of financial difficulties, due to the exercise by FINMA
or the regulators of UBS’s operations in other countries of their broad statutory powers in relation to protective measures, restructuring and liquidation
proceedings; (xix) the degree to which changes in regulation, capital or legal structure, financial results or other factors may affect UBS’s ability to maintain its
stated capital return objective; (xx) uncertainty over the scope of actions that may be required by UBS, governments and others for UBS to achieve goals relating
to climate, environmental and social matters, as well as the evolving nature of underlying science and industry and the possibility of conflict between different
governmental standards and regulatory regimes; (xxi) the ability of UBS to access capital markets; (xxii) the ability of UBS to successfully recover from a disaster
or other business continuity problem due to a hurricane, flood, earthquake, terrorist attack, war, conflict), pandemic, security breach, cyberattack, power loss,
telecommunications failure or other natural or man-made event; and (xxiii) the effect that these or other factors or unanticipated events, including media reports
and speculations, may have on its reputation and the additional consequences that this may have on its business and performance. The sequence in which the
factors above are presented is not indicative of their likelihood of occurrence or the potential magnitude of their consequences. UBS’s business and financial
performance could be affected by other factors identified in its past and future filings and reports, including those filed with the US Securities and Exchange
Commission (the SEC). More detailed information about those factors is set forth in documents furnished by UBS and filings made by UBS with the SEC, including
the UBS Group AG and UBS AG Annual Reports on Form 20-F for the year ended 31 December 2023. UBS is not under any obligation to (and expressly disclaims
any obligation to) update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
Rounding |
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 |
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 |
of any such websites into this report.
UBS Group AG
PO Box
CH-8098 Zurich
ubs.com
This Form 6-K is hereby incorporated by reference into (1) each of the registration statements on Form F-3
(Registration Numbers 333-263376 and 333-278934), and on Form S-8 (Registration Numbers 333-200634; 333-
200635; 333-200641; 333-200665; 333-215254; 333-215255; 333-228653; 333-230312; 333-249143 and 333-
272975), and into each prospectus outstanding under any of the foregoing registration statements, (2) any outstanding
offering circular or similar document issued or authorized by UBS AG that incorporates by reference any Forms 6-
K of UBS AG that are incorporated into its registration statements filed with the SEC, and (3) the base prospectus of
Corporate Asset Backed Corporation (“CABCO”) dated June 23, 2004 (Registration Number 333-111572), the Form
8-K of CABCO filed and dated June 23, 2004 (SEC File Number 001-13444), and the Prospectus Supplements
relating to the CABCO Series 2004-101 Trust dated May 10, 2004 and May 17, 2004 (Registration Number 033-
91744 and 033-91744-05).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this
report to be signed on their behalf by the undersigned, thereunto duly authorized.
UBS Group AG
By: /s/ Sergio Ermotti
___
Name: Sergio Ermotti
Title: Group Chief Executive Officer
By: /s/ Todd Tuckner
_
Name: Todd Tuckner
Title: Group Chief Financial Officer
By: /s/ Steffen Henrich
____________
Name: Steffen Henrich
Title: Group Controller
UBS AG
By: /s/ Sergio Ermotti
_
Name: Sergio Ermotti
Title: President of the Executive Board
By: /s/ Todd Tuckner
_
Name: Todd Tuckner
Title: Chief Financial Officer
By: /s/ Steffen Henrich
_____________
Name: Steffen Henrich
Title: Controller
Date: February 4, 2025